Relating to prohibiting certain activities by contractors and vendors of state agencies; providing administrative penalties.
HB 5061 creates the Texas Integrity in State Contracting and Privacy Protection Act and adds a new subchapter to Chapter 2261 of the Government Code governing contractors and vendors that do business with state agencies. The bill prohibits covered contractors, subcontractors, and vendors from engaging in surveillance of legislators, legislative staff, state agency employees, complainants, or their family members; from using intimidation, coercion, extortion, undue influence, or similar conduct to influence or retaliate against those persons; and from using private or confidential information to manipulate state contracting decisions or proceedings.
The bill establishes a complaint, investigation, and enforcement framework centered in the State Auditor’s Office, with coordination from the Texas Ethics Commission and criminal investigation by the Texas Rangers when needed. It requires a confidential hotline and online portal, sets a 90-day investigation deadline, and authorizes contract termination, administrative penalties, and long-term or permanent debarment from state contracting for violations. It also creates a whistleblower-style civil cause of action for employees and others who are retaliated against for reporting violations or participating in investigations, with damages, injunctive relief, and attorney’s fees available.
HB 5061 would expand state procurement compliance rules by imposing new conduct restrictions on entities seeking or holding state contracts, including affiliated companies, agents, and related business entities. It gives the State Auditor’s Office formal oversight and enforcement authority, requires state agencies to review violation notices before awarding contracts, and creates reporting obligations to state leaders. The bill also affects contractors’ employees and service recipients by protecting them from retaliation and allowing civil suits in district court.
The bill appears to have had strong bipartisan support and little visible opposition in the available record. It passed the House 122-0 after an earlier House vote of 143-0 on an amended version, and it passed the Senate 31-0. The lack of recorded dissent suggests broad agreement with the bill’s anti-retaliation, privacy, and procurement-integrity goals.
No committee transcript was provided, and the voting record shows no recorded opposition, so there is no clear evidence of major controversy in the available materials. The most notable policy issues embedded in the bill are the breadth of the surveillance prohibition, the inclusion of family members and affiliated entities, the large administrative penalties and lengthy debarment periods, and the use of the State Auditor’s Office and Texas Rangers for enforcement. Those features could raise concerns about scope and enforcement discretion, but no specific objections are documented in the supplied context.