TexasHB 506189th Legislature Regular SessionHouse

Relating to prohibiting certain activities by contractors and vendors of state agencies; providing administrative penalties.

Sponsored By: Carrie Isaac, Jeff Leach, Charles Schwertner (Republican)

Became Law

Crimes--Against Persons--GeneralLegislaturePurchasing--StateState EmployeesTEXAS INTEGRITY IN STATE CONTRACTING & PRIVACY PROTECTION ACTCONTRACTORS & SUBCONTRACTORSWHISTLEBLOWERSAUDITOR, STATEPUBLIC SAFETY, DEPARTMENT OFRANGERS, TEXAS

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Legal help for contract abuse whistleblowers

Workers and other covered people can sue over retaliation for reporting state contract violations or helping related government investigations. Coverage includes state employees, contractors, subcontractors, vendors seeking state contracts, and people providing or receiving state services. Protected reports go to a supervisor, state regulator, or law enforcement agency. Retaliation includes firing, suspension, discipline, harassment, blacklisting, and harmful changes to contracts or services. Successful claims can bring actual damages, lost wages or services, punitive damages, court costs, and reasonable lawyer fees. Suspended or fired workers can also seek reinstatement and restoration of benefits or seniority. The State Auditor's Office must provide legal help. A person must sue within 90 days after suspension or termination, or notify the Texas Workforce Commission within that period. With timely notice, the person can sue within 90 days after the notice is delivered; the commission must notify the employer. Suspension or termination within 120 days after reporting abuse, neglect, or exploitation, or participating in an investigation or proceeding, is presumed retaliatory. The defendant can rebut that presumption with evidence. Suits can be filed in district court where the person lives, works, or where the defendant conducts business.

State contractors face bans and fines

Texas state contractors, subcontractors, and vendors seeking contracts cannot conduct banned surveillance, directly or through third parties. Targets include legislators, legislative staff, their families, agency employees, and people raising concerns about agency work or contracts. Agency employees include independent contractors doing agency work. Surveillance means monitoring, tracking, investigating, or collecting personal information without express or contractual permission. Public information and information available through subscription services are excluded. Contractors also cannot intimidate, coerce, extort, improperly influence, or retaliate against these people. They cannot use private or confidential information to manipulate state contract decisions or proceedings. The rules cover specified state purchases, including comptroller and transportation purchases, delegated purchasing, and public colleges' local or institutional funds. After a final State Auditor determination, a first violation requires immediate contract termination, a fine up to $500,000, and a 10-year contracting ban. For a first violation involving improper influence or misuse of private or confidential information, the cap is $2 million. That first-violation ban lasts 15 years instead; first-violation bans run from receipt of the final determination. Repeat violations require immediate termination of all state contracts and a permanent contracting ban. Repeat fines reach $1 million, or $2 million for improper influence or misuse of private or confidential information. Bans cover both responding to state solicitations and receiving contracts. Enforcement can also reach people who direct violations and connected businesses, including parents, subsidiaries, affiliates, subcontractors, agents, and joint ventures. Covered employee actions and shared control or financial interests can also trigger this reach. Anyone can complain through the State Auditor's confidential hotline or online portal. The auditor must investigate and decide within 90 days after receiving a complaint. Suspected crimes go to the Texas Rangers, with appropriate cases referred to the Attorney General. The auditor shares final findings with the comptroller, which alerts agencies; agencies must avoid awards to barred parties.

Sponsors & Cosponsors

Sponsors

  • Carrie Isaac

    House

  • Jeff Leach

    House

  • Charles Schwertner

    Republican • Senate

Cosponsors

  • Lulu Flores

    House

  • Terri Leo Wilson

    House

  • Penny Morales Shaw

    House

  • Ellen Troxclair

    House

Roll Call Votes

All Roll Calls

Yes: 287 • No: 0

Senate vote • 5/16/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/16/2025

Record vote

Yes: 0 • No: 0

House vote • 5/2/2025

Record vote

Yes: 122 • No: 0

House vote • 5/1/2025

Record vote

Yes: 143 • No: 0

House vote • Unknown

Committee vote: Delivery of Government Efficiency

Yes: 11 • No: 0

Senate vote • Unknown

Committee vote: Business & Commerce

Yes: 11 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    5/29/2025House
  2. Filed without the Governor's signature

    5/29/2025House
  3. Sent to the Governor

    5/20/2025House
  4. Signed in the Senate

    5/19/2025Senate
  5. Signed in the House

    5/19/2025House
  6. Reported enrolled

    5/19/2025House
  7. Senate passage reported

    5/16/2025House
  8. Record vote

    5/16/2025Senate
  9. Passed

    5/16/2025Senate
  10. Read 3rd time

    5/16/2025Senate
  11. Record vote

    5/16/2025Senate
  12. Three day rule suspended

    5/16/2025Senate
  13. Vote recorded in Journal

    5/16/2025Senate
  14. Read 2nd time & passed to 3rd reading

    5/16/2025Senate
  15. Rules suspended-Regular order of business

    5/16/2025Senate
  16. Placed on intent calendar

    5/15/2025Senate
  17. Committee report printed and distributed

    5/13/2025Senate
  18. Recommended for local & uncontested calendar

    5/13/2025Senate
  19. Reported favorably w/o amendments

    5/13/2025Senate
  20. Vote taken in committee

    5/13/2025Senate
  21. Considered in public hearing

    5/13/2025Senate
  22. Left pending in committee

    5/8/2025Senate
  23. Considered in public hearing

    5/8/2025Senate
  24. Scheduled for public hearing on . . .

    5/8/2025Senate
  25. Referred to Business & Commerce

    5/5/2025Senate

Bill Text

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