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 adds Subchapter G to Chapter 2261 of the Government Code, defining 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, it bans intimidation, coercion, extortion, and the misuse of private information to influence state contracting decisions.

To ensure oversight and enforcement, the bill assigns the state auditor's office the responsibility of investigating complaints in collaboration with the Texas Ethics Commission. It outlines penalties for violations, including contract termination, administrative fines of up to $2 million for severe infractions, and disqualification from future state contracts. The legislation also protects whistleblowers from retaliation, allowing them to seek damages and reinstatement if they face adverse actions for reporting violations. Furthermore, a new section mandates the state auditor's office and the Texas Rangers division of the Department of Public Safety to submit an annual report detailing complaints and investigation outcomes, 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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