Texas 2025 - 89th Regular

Texas House Bill HB5061 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R12233 CXP-D
2	2	By: Leach H.B. No. 5061
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to prohibiting certain activities by contractors and
10	10	vendors of state agencies; providing administrative penalties.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 2261, Government Code, is amended by
13	13	adding Subchapter G to read as follows:
14	14	SUBCHAPTER G. CERTAIN PROHIBITED ACTIVITIES BY CONTRACTORS AND
15	15	VENDORS
16	16	Sec. 2261.301. DEFINITIONS. In this subchapter:
17	17	(1) "State agency employee" includes an independent
18	18	contractor who contracts with a state agency to perform work or
19	19	provide a service.
20	20	(2) "Surveillance" means monitoring, investigating,
21	21	tracking, or collecting information about an individual without the
22	22	individual's express authorization, including physical
23	23	surveillance, electronic tracking, data mining, and social media
24	24	monitoring.
25	25	(3) "Undue influence" means an improper use of power,
26	26	position, or information to manipulate a decision-making process,
27	27	including the use of private or confidential information for
28	28	personal or organizational gain.
29	29	Sec. 2261.3015. APPLICABILITY. Notwithstanding Sections
30	30	2261.001(a) and (d), this subchapter applies to each procurement of
31	31	goods or services made by a state agency, including a procurement
32	32	made:
33	33	(1) by the comptroller;
34	34	(2) under purchasing authority delegated to the agency
35	35	by or under Section 51.9335 or 73.115, Education Code, or Section
36	36	2155.131 or 2155.132 of this code; or
37	37	(3) by the Texas Department of Transportation or a
38	38	procurement paid for by local or institutional funds of an
39	39	institution of higher education.
40	40	Sec. 2261.302. PROHIBITED ACTIVITIES. A contractor or
41	41	subcontractor of a state agency or a vendor responding to a contract
42	42	solicitation may not directly or indirectly through a third party:
43	43	(1) engage in surveillance targeting:
44	44	(A) a member of the state legislature or a person
45	45	employed to support the state legislature in any capacity;
46	46	(B) a state agency employee; or
47	47	(C) an individual making a complaint or raising
48	48	concerns regarding state agency operations or contracting;
49	49	(2) engage in an act of intimidation, coercion,
50	50	extortion, undue influence, or other similar conduct intended to
51	51	influence, silence, or retaliate against a person described by
52	52	Subdivision (1)(A), (B), or (C); or
53	53	(3) use private or confidential information to
54	54	manipulate or influence a state contracting decision or proceeding.
55	55	Sec. 2261.303. OVERSIGHT AND ENFORCEMENT. (a) The state
56	56	auditor's office shall oversee and enforce this subchapter.
57	57	(b) The state auditor's office may collaborate with the
58	58	Texas Ethics Commission to ensure compliance with this subchapter
59	59	and transparency of oversight and enforcement actions.
60	60	(c) The Texas Rangers division of the Department of Public
61	61	Safety shall investigate any alleged criminal offense related to a
62	62	violation of this subchapter.
63	63	Sec. 2261.304. COMPLAINT PROCESS. (a) A person who
64	64	believes that the person was the target of prohibited activity
65	65	under Section 2261.302 may file a complaint with the state
66	66	auditor's office.
67	67	(b) The state auditor's office shall establish and maintain
68	68	a confidential reporting hotline and an online portal for
69	69	submitting a complaint under Subsection (a).
70	70	Sec. 2261.305. INVESTIGATION. (a) The state auditor's
71	71	office shall investigate a complaint submitted under Section
72	72	2261.304 and determine whether a violation of this subchapter
73	73	occurred not later than the 90th day after the date the office
74	74	receives the complaint.
75	75	(b) If during an investigation of a complaint the state
76	76	auditor's office suspects that a criminal offense has been
77	77	committed, the office shall refer the matter to the Texas Rangers
78	78	division of the Department of Public Safety for a comprehensive
79	79	criminal investigation. The Texas Rangers division of the
80	80	Department of Public Safety shall investigate the complaint and, if
81	81	appropriate, refer the matter to the attorney general's office for
82	82	prosecution.
83	83	Sec. 2261.306. ENFORCEMENT: CONTRACT TERMINATION; BARRING
84	84	FROM STATE CONTRACTS; ADMINISTRATIVE PENALTIES. (a) On a final
85	85	determination by the state auditor's office that a person violated
86	86	this subchapter, the person is:
87	87	(1) for a first violation:
88	88	(A) subject to immediate termination of any state
89	89	contracts without further obligation;
90	90	(B) liable for an administrative penalty in an
91	91	amount not to exceed:
92	92	(i) $500,000; or
93	93	(ii) $2 million if the violation involved
94	94	undue influence or the misuse of private or confidential
95	95	information; and
96	96	(C) barred from responding to a solicitation for
97	97	or being awarded a state contract until:
98	98	(i) the tenth anniversary of the date the
99	99	person receives the final determination; or
100	100	(ii) the fifteenth anniversary of the date
101	101	the person receives the final determination if the violation
102	102	involved undue influence or the misuse of private or confidential
103	103	information; and
104	104	(2) for a second or subsequent violation:
105	105	(A) subject to immediate termination of all state
106	106	contracts without further obligation;
107	107	(B) liable for an administrative penalty in an
108	108	amount not to exceed:
109	109	(i) $1 million; or
110	110	(ii) $2 million if the violation involved
111	111	undue influence or the misuse of private or confidential
112	112	information; and
113	113	(C) barred permanently from responding to a
114	114	solicitation for or being awarded a state contract.
115	115	(b) An individual who authorizes or directs an entity to
116	116	violate this subchapter may be subject to a penalty under this
117	117	section in the same manner as an entity that is determined to have
118	118	violated this subchapter.
119	119	Sec. 2261.307. RETALIATION AGAINST EMPLOYEES PROHIBITED.
120	120	(a) In this section, "employee" means a person who is an employee
121	121	of a:
122	122	(1) contractor or subcontractor of a state agency; or
123	123	(2) vendor responding to a contract solicitation by a
124	124	state agency.
125	125	(b) An employee has a cause of action against an employer
126	126	who suspends or terminates the employment of the employee or
127	127	otherwise disciplines or discriminates or retaliates against the
128	128	employee for:
129	129	(1) reporting to the employee's supervisor, a state
130	130	regulatory agency, or a law enforcement agency a violation of this
131	131	subchapter; or
132	132	(2) initiating or cooperating in any investigation by
133	133	or proceeding of a governmental entity relating to a state
134	134	contract.
135	135	(c) The petitioner may recover:
136	136	(1) actual damages and damages for lost wages if the
137	137	petitioner's employment was suspended or terminated;
138	138	(2) exemplary damages;
139	139	(3) court costs; and
140	140	(4) reasonable attorney's fees.
141	141	(d) In addition to the amounts that may be recovered under
142	142	Subsection (c), a person whose employment is suspended or
143	143	terminated is entitled to appropriate injunctive relief,
144	144	including, if applicable:
145	145	(1) reinstatement in the person's former position; and
146	146	(2) reinstatement of lost fringe benefits or seniority
147	147	rights.
148	148	(e) The petitioner, not later than the 90th day after the
149	149	date on which the person's employment is suspended or terminated,
150	150	must bring suit or notify the Texas Workforce Commission of the
151	151	petitioner's intent to sue under this section. A petitioner who
152	152	notifies the Texas Workforce Commission under this subsection must
153	153	bring suit not later than the 90th day after the date of the
154	154	delivery of the notice to the commission. On receipt of the notice,
155	155	the commission shall notify the employer of the petitioner's intent
156	156	to bring suit under this section.
157	157	(f) The petitioner has the burden of proof, except that
158	158	there is a rebuttable presumption that the person's employment was
159	159	suspended or terminated for reporting abuse, neglect, or
160	160	exploitation if the person is suspended or terminated within 60
161	161	days after the date the person:
162	162	(1) reported the violation; or
163	163	(2) initiated or cooperated in an investigation or
164	164	proceeding.
165	165	(g) A suit under this section may be brought in the district
166	166	court of the county in which:
167	167	(1) the plaintiff resides;
168	168	(2) the plaintiff was employed by the defendant; or
169	169	(3) the defendant conducts business.
170	170	(h) The state auditor's office shall provide legal
171	171	assistance to a petitioner who brings suit under this section.
172	172	Sec. 2261.308. ANNUAL REPORT. Not later than September 1 of
173	173	each year, the state auditor's office and the Texas Rangers
174	174	division of the Department of Public Safety jointly shall submit to
175	175	the governor, the lieutenant governor, the speaker of the house of
176	176	representatives, and each member of the legislature a written
177	177	report on the:
178	178	(1) number and nature of complaints filed alleging a
179	179	violation of this subchapter;
180	180	(2) outcome of each complaint investigated by the
181	181	state auditor's office and, if applicable, the Texas Rangers
182	182	division of the Department of Public Safety; and
183	183	(3) penalties imposed under this subchapter.
184	184	SECTION 2. Not later than September 1, 2026, the state
185	185	auditor's office and the Texas Rangers division of the Department
186	186	of Public Safety jointly shall submit the first report required by
187	187	Section 2261.308, Government Code, as added by this Act.
188	188	SECTION 3. This Act takes effect September 1, 2025.