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HB3372

Regular Session

Relating to prohibiting certain personal services performed by school district administrators; providing a civil penalty.

Critical
Low Cost
Effective:2025-06-22
Enforcing Agencies

Texas Attorney General (Civil Liability to the State) • Texas Education Agency (TEA)

HB3372
Relating to prohibiting certain personal services performed by school district administrators; providing a civil penalty.
Critical Urgency
Passed with Opposition
House Vote141 - 1
YEA
99% in favor142 voting
Senate Vote30 - 1
YEA
97% in favor31 voting
2
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-22
Enforcing Agencies
Texas Attorney GeneralTEA
Primary Author: Rep. William Metcalf
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 22, 2025 (The law is currently in effect).
  • Compliance Deadline: Immediate. There is no grandfather clause. You must suspend non-compliant payments to existing contractors immediately to avoid penalties.
  • Agency Rulemaking: While the statute is self-executing, the Texas Education Agency (TEA) may issue guidance clarifying the definition of "significant administrative duties." Do not wait for rulemaking to strictly interpret this definition.

Immediate Action Plan

  • Audit 1099 Roster: Immediately cross-reference your contractor list against Texas school district staff directories.
  • Purge Prohibited Roles: Terminate all consulting arrangements with Superintendents and Assistant Superintendents immediately.
  • Freeze & Cure: Suspend payments to all other school administrators until they provide proof of a School Board vote approving your contract.
  • Sanitize Contracts: Review all consulting agreements intended for School Board review to ensure no trade secrets are inadvertently disclosed to the public.

Operational Changes Required

Contracts

  • Immediate Termination: You must terminate consulting agreements with any sitting Superintendent or Assistant Superintendent if you do business (or seek to do business) with their district.
  • Conditional Amendments: For other administrators, amend contracts to make validity and payment strictly contingent upon receipt of a certified Board Resolution approving the arrangement.
  • Disclosure Clauses: Update Master Services Agreements (MSAs) to require contractors to disclose any employment with a Texas school district.

Hiring/Training

  • "Stop-Check-Verify": Implement a protocol for Accounts Payable. Before paying a 1099 contractor, verify they are not a school administrator.
  • Vendor Onboarding: Update vendor intake forms to include a mandatory checkbox: *"Are you currently employed by a Texas School District in an administrative capacity?"*

Reporting & Record-Keeping

  • Board Resolutions: You must obtain and retain a copy of the School Board minutes or resolution approving the contract for any non-superintendent administrator you hire.
  • Public Information Act: The contract you submit to the School Board becomes public record. Strip all proprietary trade secrets and confidential pricing from these agreements before submission, or they will be accessible to your competitors.

Fees & Costs

  • Penalties: There are no new filing fees, but the law imposes a $10,000 civil penalty per violation.
  • Liability: The penalty technically attaches to the administrator, but businesses face contract voidability and reputational damage.

Strategic Ambiguities & Considerations

  • Definition of "Administrator": The law applies to those with "significant administrative duties." It is currently unclear if this captures roles like Athletic Directors, Department Chairs, or Lead Counselors. Guidance: If the individual evaluates staff or manages a budget, treat them as an administrator.
  • "Solicits Business": The prohibition applies if you merely *solicit* business (e.g., submit a bid or RFP response), even if you are not currently a vendor. You cannot hire a district's administrators while trying to win a contract with that district.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 26, 2025
Passed House
May 15, 2025
Passed Senate
May 27, 2025
Signed
Jun 22, 2025
TopicsBusiness & CommerceBusiness & Commerce--generalEducationEducation--primary & SecondaryEducation--primary & Secondary--generalEducation--primary & Secondary--other School PersonnelEducation--school DistrictsCivil Remedies & Liabilities
03

House Authors

Rep. William MetcalfRepublican · Primary Author
Joint Authors

Senate Sponsors

Sen. Mayes MiddletonRepublican · Primary Sponsor
Cosponsors (3)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about HB3372

Q

What does Texas HB3372 do?

Effective June 22, 2025, Texas law strictly prohibits businesses from paying School Superintendents or Assistant Superintendents for consulting or personal services if the business solicits or contracts with the district. For all other school administrators (Principals, Directors), such work is now banned unless the School Board formally votes to approve the specific contract. Implementation Timeline Effective Date: June 22, 2025 (The law is currently in effect).

Q

Who authored HB3372?

HB3372 was authored by Texas Representative William Metcalf during the Regular Session.

Q

When was HB3372 signed into law?

HB3372 was signed into law by Governor Greg Abbott on June 22, 2025.

Q

Which agencies enforce HB3372?

HB3372 is enforced by Texas Attorney General (Civil Liability to the State) and Texas Education Agency (TEA).

Q

How urgent is compliance with HB3372?

The compliance urgency for HB3372 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB3372?

The cost impact of HB3372 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB3372 address?

HB3372 addresses topics including business & commerce, business & commerce--general, education, education--primary & secondary and education--primary & secondary--general.

Legislative data provided by LegiScanLast updated: November 25, 2025

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