House Bill No. 5061 aims to enhance oversight and accountability for contractors and vendors working with state agencies in Texas by prohibiting specific activities that could undermine the integrity of state operations. The bill introduces a new Subchapter G to Chapter 2261 of the Government Code, which defines key terms such as "state agency employee," "surveillance," and "undue influence." It explicitly prohibits contractors and vendors from engaging in surveillance of state legislators, agency employees, or individuals raising concerns about state operations, as well as from using intimidation or confidential information to influence state contracting decisions.

The bill establishes a framework for enforcement, including the oversight of the state auditor's office, which is tasked with investigating complaints and determining violations. It outlines administrative penalties for violations, including contract termination and financial penalties that can reach up to $2 million for severe infractions. Additionally, the bill protects employees of contractors and vendors from retaliation for reporting violations, allowing them to seek damages and legal assistance. An annual report on the implementation and outcomes of this subchapter will be submitted to state leadership, ensuring transparency and accountability in the enforcement of these new regulations. The act is set to take effect on September 1, 2025.

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