H.B. No. 5061, known as the Texas Integrity in State Contracting and Privacy Protection Act, introduces significant regulations to prevent misconduct by contractors and vendors associated with state agencies. The bill amends Chapter 2261 of the Government Code by adding Subchapter G, which defines important terms such as "state agency employee," "surveillance," and "undue influence." It explicitly prohibits contractors and subcontractors from surveilling state legislators, their families, state agency employees, or individuals who raise concerns about state agency operations. Additionally, the bill forbids intimidation, coercion, or the misuse of private information to influence state contracting decisions.

To ensure compliance and accountability, the bill establishes a framework for oversight, assigning the state auditor's office the responsibility to investigate complaints and enforce penalties for violations. It introduces administrative penalties for both first and subsequent violations, including potential contract termination and financial penalties of up to $2 million for serious offenses. The bill also protects whistleblowers from retaliation, allowing them to seek damages and legal assistance. Furthermore, it mandates an annual report from the state auditor's office and the Texas Rangers division of the Department of Public Safety, detailing complaints and outcomes related to the new regulations, with the first report due by September 1, 2026. The bill is set to take effect on September 1, 2025, following unanimous support in both legislative chambers.

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