HB2001

Regular Session

Relating to increasing the criminal penalties for certain misuse of official information, including misuse of official information that results in certain net pecuniary gains.

CriticalImmediate action required

Low Cost

Effective:2025-06-20

Enforcing Agencies

Texas District Attorneys • Public Integrity Units • Texas Attorney General (limited jurisdiction)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025 (Note: While the bill text indicates September 1, the "element of offense" provision means any conduct occurring now that contributes to a future gain could be prosecutable. Treat the law as active.)
Compliance Deadline: August 15, 2025 (All internal protocols and contract updates must be finalized prior to the statutory effective date.)
Agency Rulemaking: None. This is a Penal Code amendment enforced by District Attorneys, not a regulatory agency. There will be no "grace period" or clarifying administrative rules; clarification will only come through criminal indictments and case law.

Immediate Action Plan

1. Brief Leadership: Schedule a mandatory risk briefing for C-Suite and Sales leadership within 14 days.
2. Audit Active Bids: Review all pending government solicitations for any data points that cannot be traced to a public source; pull bids if "poisoned" data is found.
3. Update D&O Coverage: Consult with insurance brokers regarding coverage gaps for criminal investigations under TPC § 39.06.
4. Implement Logging: Roll out "Source of Origin" documentation requirements for all pricing and proposal teams effective immediately.

Operational Changes Required

Contracts

Employment Agreements: Amend "Termination for Cause" clauses for C-Suite and Government Affairs staff to trigger upon indictment (not conviction) under Texas Penal Code § 39.06.
Vendor & Lobbying Agreements: Insert strict indemnification clauses requiring external consultants to warrant they will not utilize non-public information. Explicitly shift liability for criminal defense costs to the vendor.
Teaming Agreements: Require joint venture partners to certify the "Source of Origin" for all data contributed to a shared bid or proposal.

Hiring/Training

"Stop Work" Protocols: Train Sales and Government Affairs teams on immediate cessation protocols. If a public official shares non-public data, the employee must terminate the interaction and document the breach immediately.
Information Quarantine: Establish a firewall between Government Affairs (who may inadvertently hear info) and Bid/Proposal teams (who act on it).

Reporting & Record-Keeping

Source of Origin Logs: For all government contracts valued over $150,000, maintain a mandatory log citing the specific public source (URL, RFI response, meeting minutes) for every material data point used in pricing models.
Meeting Minutes: Mandate formal agendas and minutes for every interaction with state officers to prove no illicit information was exchanged.

Fees & Costs

Insurance Review: Conduct an immediate review of Directors & Officers (D&O) liability policies. Confirm if "Criminal Acts" exclusions are triggered by an investigation/indictment or only final adjudication. Expect potential premium increases for coverage involving government contracting.

Strategic Ambiguities & Considerations

Definition of "Net Pecuniary Gain": The statute fails to define whether "gain" means *Net Profit* (Revenue minus Expenses) or *Gross Revenue*. In a $50M construction contract with a $2M margin, prosecutors may argue the "gain" is the full contract value to trigger First Degree Felony enhancements.
Causation ("Resulting In"): The law punishes misuse "resulting in" gain. It is unclear if the prosecution must prove the information was the *sole* cause of the contract award. Businesses must be prepared to prove they would have won the contract regardless of the information.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsCrimes Crimes--miscellaneous Ethics Financial Financial--general State Officers

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 2001

By: Meyer

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law sets the penalty for a misuse of official information by a public servant as a third degree felony. However, current law does not consider the amount a perpetrator financially gains from the unlawful acts. H.B. 2001 seeks to address this issue by creating a tiered system of punishment for this offense that is based on the amount of financial gain to the actor.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill expressly does one or more of the following: creates a criminal offense, increases the punishment for an existing criminal offense or category of offenses, or changes the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2001 amends the Penal Code to establish a range of penalties for a misuse of official information offense resulting in a net pecuniary gain to the actor that is based on the amount gained. An offense involving a net pecuniary gain of less than $150,000 remains a third degree felony, while the penalty is enhanced as follows:

·to a second degree felony if the net pecuniary gain is $150,000 or more but less than $300,000; and

·to a first degree felony if the net pecuniary gain is $300,000 or more.

The bill repeals the reduced Class C misdemeanor penalty for a misuse of official information offense involving a public servant, including a school administrator, who, relying on information that has not been made public to which the public servant has access by virtue of their office or employment, coerces another into suppressing or failing to report that information to a law enforcement agency.

H.B. 2001 applies only to an offense committed on or after the bill's effective date. An offense committed before the bill's effective date is governed by the law in effect on the date the offense was committed, and the former law is continued in effect for that purpose. For these purposes, an offense was committed before the bill's effective date if any element of the offense occurred before that date.

H.B. 2001 repeals Section 39.06(f), Penal Code.

EFFECTIVE DATE

September 1, 2025.

House Authors

Rep. Morgan MeyerRepublican · Primary Author

Joint Authors

Coauthors (2)

Senate Sponsors

Sen. Paul BettencourtRepublican · Primary Sponsor

Cosponsors (1)

Royce West (D)

Bill Text(with markup)

H.B. No. 2001

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to increasing the criminal penalties for certain misuse of
	official information, including misuse of official information
	that results in certain net pecuniary gains.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 39.06, Penal Code, is amended by
	amending Subsection (e) and adding Subsection (g) to read as
	follows:
	(e) Except as provided by Subsection (g) [~~(f)~~], an offense
	under this section is a felony of the third degree.
	(g) If the commission of an offense under this section
	results in a net pecuniary gain to the person committing the
	offense, the offense is:
	(1) a felony of the third degree if the net pecuniary
	gain is less than $150,000;
	(2) a felony of the second degree if the net pecuniary
	gain is $150,000 or more but less than $300,000; or
	(3) a felony of the first degree if the net pecuniary
	gain is $300,000 or more.
	SECTION 2. Section 39.06(f), Penal Code, is repealed.
	SECTION 3. The change in law made by this Act applies only
	to an offense committed on or after the effective date of this Act.
	An offense committed before the effective date of this Act is
	governed by the law in effect on the date the offense was committed,
	and the former law is continued in effect for that purpose. For
	purposes of this section, an offense was committed before the
	effective date of this Act if any element of the offense occurred
	before that date.
	SECTION 4. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 25, 2025

TO:	Honorable Ken King, Chair, House Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB2001 by Meyer (Relating to increasing the criminal penalties for insider trading and other misuse of official information.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would provide for punishment of the offense of misuse of official information as a third degree felony if the net pecuniary gain was less than $150,000, as a second degree felony if the net pecuniary gain was $150,000 or more but less than $300,000, or as a first degree felony if the net pecuniary gain was $300,000 or more. It is assumed that any fiscal impact and any impact on state correctional populations or on the demand for state correctional resources would not be significant.

Local Government Impact

It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant.

Source Agencies:

212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts

LBB Staff:

JMc, WP, DGI, QH

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Frequently Asked Questions

Common questions about HB2001

What does Texas HB2001 do?

HB2001 fundamentally alters the risk profile for government contracting by converting the misuse of official information from a static offense into a tiered felony structure based on "net pecuniary gain. " Effective immediately for planning purposes, private sector executives and entities face First Degree Felony liability (5 to 99 years) if non-public government data is utilized to secure profits exceeding $300,000. This legislation targets government contractors, real estate developers, and financial firms, effectively piercing the corporate veil to attach severe criminal penalties to individual decision-makers.

Who authored HB2001?

HB2001 was authored by Texas Representative Morgan Meyer during the Regular Session.

When was HB2001 signed into law?

HB2001 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB2001?

HB2001 is enforced by Texas District Attorneys, Public Integrity Units and Texas Attorney General (limited jurisdiction).

How urgent is compliance with HB2001?

The compliance urgency for HB2001 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB2001?

The cost impact of HB2001 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB2001 address?

HB2001 addresses topics including crimes, crimes--miscellaneous, ethics, financial and financial--general.

Legislative data provided by LegiScanLast updated: November 25, 2025

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