89R12233 CXP-D
By: Leach H.B. No. 5061
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting certain activities by contractors and
vendors of state agencies; providing administrative penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2261, Government Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. CERTAIN PROHIBITED ACTIVITIES BY CONTRACTORS AND
VENDORS
Sec. 2261.301. DEFINITIONS. In this subchapter:
(1) "State agency employee" includes an independent
contractor who contracts with a state agency to perform work or
provide a service.
(2) "Surveillance" means monitoring, investigating,
tracking, or collecting information about an individual without the
individual's express authorization, including physical
surveillance, electronic tracking, data mining, and social media
monitoring.
(3) "Undue influence" means an improper use of power,
position, or information to manipulate a decision-making process,
including the use of private or confidential information for
personal or organizational gain.
Sec. 2261.3015. APPLICABILITY. Notwithstanding Sections
2261.001(a) and (d), this subchapter applies to each procurement of
goods or services made by a state agency, including a procurement
made:
(1) by the comptroller;
(2) under purchasing authority delegated to the agency
by or under Section 51.9335 or 73.115, Education Code, or Section
2155.131 or 2155.132 of this code; or
(3) by the Texas Department of Transportation or a
procurement paid for by local or institutional funds of an
institution of higher education.
Sec. 2261.302. PROHIBITED ACTIVITIES. A contractor or
subcontractor of a state agency or a vendor responding to a contract
solicitation may not directly or indirectly through a third party:
(1) engage in surveillance targeting:
(A) a member of the state legislature or a person
employed to support the state legislature in any capacity;
(B) a state agency employee; or
(C) an individual making a complaint or raising
concerns regarding state agency operations or contracting;
(2) engage in an act of intimidation, coercion,
extortion, undue influence, or other similar conduct intended to
influence, silence, or retaliate against a person described by
Subdivision (1)(A), (B), or (C); or
(3) use private or confidential information to
manipulate or influence a state contracting decision or proceeding.
Sec. 2261.303. OVERSIGHT AND ENFORCEMENT. (a) The state
auditor's office shall oversee and enforce this subchapter.
(b) The state auditor's office may collaborate with the
Texas Ethics Commission to ensure compliance with this subchapter
and transparency of oversight and enforcement actions.
(c) The Texas Rangers division of the Department of Public
Safety shall investigate any alleged criminal offense related to a
violation of this subchapter.
Sec. 2261.304. COMPLAINT PROCESS. (a) A person who
believes that the person was the target of prohibited activity
under Section 2261.302 may file a complaint with the state
auditor's office.
(b) The state auditor's office shall establish and maintain
a confidential reporting hotline and an online portal for
submitting a complaint under Subsection (a).
Sec. 2261.305. INVESTIGATION. (a) The state auditor's
office shall investigate a complaint submitted under Section
2261.304 and determine whether a violation of this subchapter
occurred not later than the 90th day after the date the office
receives the complaint.
(b) If during an investigation of a complaint the state
auditor's office suspects that a criminal offense has been
committed, the office shall refer the matter to the Texas Rangers
division of the Department of Public Safety for a comprehensive
criminal investigation. The Texas Rangers division of the
Department of Public Safety shall investigate the complaint and, if
appropriate, refer the matter to the attorney general's office for
prosecution.
Sec. 2261.306. ENFORCEMENT: CONTRACT TERMINATION; BARRING
FROM STATE CONTRACTS; ADMINISTRATIVE PENALTIES. (a) On a final
determination by the state auditor's office that a person violated
this subchapter, the person is:
(1) for a first violation:
(A) subject to immediate termination of any state
contracts without further obligation;
(B) liable for an administrative penalty in an
amount not to exceed:
(i) $500,000; or
(ii) $2 million if the violation involved
undue influence or the misuse of private or confidential
information; and
(C) barred from responding to a solicitation for
or being awarded a state contract until:
(i) the tenth anniversary of the date the
person receives the final determination; or
(ii) the fifteenth anniversary of the date
the person receives the final determination if the violation
involved undue influence or the misuse of private or confidential
information; and
(2) for a second or subsequent violation:
(A) subject to immediate termination of all state
contracts without further obligation;
(B) liable for an administrative penalty in an
amount not to exceed:
(i) $1 million; or
(ii) $2 million if the violation involved
undue influence or the misuse of private or confidential
information; and
(C) barred permanently from responding to a
solicitation for or being awarded a state contract.
(b) An individual who authorizes or directs an entity to
violate this subchapter may be subject to a penalty under this
section in the same manner as an entity that is determined to have
violated this subchapter.
Sec. 2261.307. RETALIATION AGAINST EMPLOYEES PROHIBITED.
(a) In this section, "employee" means a person who is an employee
of a:
(1) contractor or subcontractor of a state agency; or
(2) vendor responding to a contract solicitation by a
state agency.
(b) An employee has a cause of action against an employer
who suspends or terminates the employment of the employee or
otherwise disciplines or discriminates or retaliates against the
employee for:
(1) reporting to the employee's supervisor, a state
regulatory agency, or a law enforcement agency a violation of this
subchapter; or
(2) initiating or cooperating in any investigation by
or proceeding of a governmental entity relating to a state
contract.
(c) The petitioner may recover:
(1) actual damages and damages for lost wages if the
petitioner's employment was suspended or terminated;
(2) exemplary damages;
(3) court costs; and
(4) reasonable attorney's fees.
(d) In addition to the amounts that may be recovered under
Subsection (c), a person whose employment is suspended or
terminated is entitled to appropriate injunctive relief,
including, if applicable:
(1) reinstatement in the person's former position; and
(2) reinstatement of lost fringe benefits or seniority
rights.
(e) The petitioner, not later than the 90th day after the
date on which the person's employment is suspended or terminated,
must bring suit or notify the Texas Workforce Commission of the
petitioner's intent to sue under this section. A petitioner who
notifies the Texas Workforce Commission under this subsection must
bring suit not later than the 90th day after the date of the
delivery of the notice to the commission. On receipt of the notice,
the commission shall notify the employer of the petitioner's intent
to bring suit under this section.
(f) The petitioner has the burden of proof, except that
there is a rebuttable presumption that the person's employment was
suspended or terminated for reporting abuse, neglect, or
exploitation if the person is suspended or terminated within 60
days after the date the person:
(1) reported the violation; or
(2) initiated or cooperated in an investigation or
proceeding.
(g) A suit under this section may be brought in the district
court of the county in which:
(1) the plaintiff resides;
(2) the plaintiff was employed by the defendant; or
(3) the defendant conducts business.
(h) The state auditor's office shall provide legal
assistance to a petitioner who brings suit under this section.
Sec. 2261.308. ANNUAL REPORT. Not later than September 1 of
each year, the state auditor's office and the Texas Rangers
division of the Department of Public Safety jointly shall submit to
the governor, the lieutenant governor, the speaker of the house of
representatives, and each member of the legislature a written
report on the:
(1) number and nature of complaints filed alleging a
violation of this subchapter;
(2) outcome of each complaint investigated by the
state auditor's office and, if applicable, the Texas Rangers
division of the Department of Public Safety; and
(3) penalties imposed under this subchapter.
SECTION 2. Not later than September 1, 2026, the state
auditor's office and the Texas Rangers division of the Department
of Public Safety jointly shall submit the first report required by
Section 2261.308, Government Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2025.