New law could affect administrators’ additional employment

Along with a number of other laws passed by the 89th Texas Legislature, HB 3372 went into effect Sept. 1, amending the Texas Education Code by adding Section 11.006, which creates a new statewide prohibition on certain types of financial relationships involving public school district administrators.

The new law prohibits school district administrators, either campus based or central, from receiving financial compensation for personal services from businesses that do business with their district, education-related businesses, or other public education entities without approval from the Board of Trustees. 

The law aims to eliminate conflicts of interest, increase transparency, reinforce ethical standards, and thereby uphold public trust in school governance. Outside employment with a current vendor of the district was already a conflict of interest and unallowable under Dallas ISD Board Policy DBD(LOCAL).

Under the new law, administrators, including principals, assistant principals, and central managers and above, who want to receive a financial benefit for concurrent employment outside of the district for an “education business,” which is one that provides services regarding the curriculum or administration of any school district must seek Personal Services Exception Request. This includes organizations that could do future business with the district.  

Concurrent employment at an institute of higher education (community college, state universities, or private universities) is not interpreted to fall within the requirements of HB3372. Teachers and other campus-based employees are not required to submit a PSER and have no outside employment restrictions not currently defined in DBD-Local. 

Approval by the Board of Trustees to perform personal services is required for the following:

• Any education business that provides services regarding the curriculum or administration of any school district, including those that could do future business with Dallas ISD; or
• Any other school district, open-enrollment charter school, or regional education center.

Under the new law, administrators who fail to seek board approval would be subject to a personal civil penalty of $10,000 per violation, payable to the state.

To ensure compliance with HB3372/TEC 11.006 Human Capital Management has collaborated with Legal Services to establish the Personal Services Exception Request process:

1. Employees submit a Personal Services Exception Request form along with a copy of the contract or work agreement that outlines personal services performed to their respective executive director via email. The PSER is available here and linked on the HCM Policy and Compliance website. 
2. Executive directors will conduct an initial review of the contract to ensure the work is (1) performed entirely on an employee’s personal time, (2) does no harm to the district, and (3) does not present a conflict of interest.
3. Executive directors submit the PSER and supporting documents to HCM at HCMcompliance@dallasisd.org.
4. HCM submits the PSER to the Board of Trustees for review in closed session. The Board reviews PSER items and approves as appropriate.

Administrators who have questions about current work for an education business that will require a PSER that has not been submitted to the board for approval are encouraged to seek outside legal advice regarding their outside employment’s potential conflict with HB3372.