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Bill

HB 5331

Relating to the enforceability of certain state agency and local government contract language regarding required security incident notifications.

89th Legislature (2025) Introduced by Jay Dean

Texas law now enforces government contract requirements that vendors notify state agencies and municipalities of security incidents affecting government systems or data.

Effective immediately
#citygovernment--general(i0060) #countygovernment--general(i0096) #electronicinformationsystems(i0311) #insurance--general(i0445) #purchasing--local(i0644) #purchasing--state(i0643) #stateagencies #boards&commissions(i0749)
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WeVote Research Nonpartisan
Bill Summary · HB 5331

Legislative bill overview

HB 5331 makes enforceable certain contract language that state agencies and local governments can include to require vendors and contractors to notify them of security incidents. The bill clarifies the legal authority for government entities to mandate breach notification requirements in their procurement contracts and establishes what types of notification obligations contractors must honor.

Why is this important

As government agencies increasingly rely on private contractors for IT services and data management, this bill ensures they can contractually require timely notification of security breaches affecting government systems or data. This directly impacts cybersecurity response times and the protection of sensitive government information and citizen data held by third-party vendors.

Potential points of contention

  • Business burden: Contractors may argue the notification requirements add compliance costs and liability exposure, potentially increasing bid prices for government contracts
  • Definition ambiguity: The bill's effectiveness depends on clear definitions of what constitutes a "security incident" requiring notification—overly broad definitions could create excessive reporting obligations while narrow ones might miss critical breaches
  • Liability and remedies: Unclear whether contractors face penalties, contract termination, or other consequences for notification failures, and whether governments can pursue damages against vendors who fail to report incidents timely

Compiled from official sources — confirm details with the bill’s official record.

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