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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
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.

Government Affairs & Regulatory Compliance Analysis

HB2001: Government Affairs Overview

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.

Rep. Morgan Meyer·House Bill·Regular Session

Critical
Low Cost
Effective:2025-06-20
Enforcing Agencies

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

Business Impact

Who HB2001 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.

🏦

Banking & Finance

Affected business types:

  • Banks
  • Credit unions
  • Financial services firms
  • Insurance companies
View all banking & finance legislation

Key Operational Considerations

  • 1Employment 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.
  • 2Teaming Agreements: Require joint venture partners to certify the "Source of Origin" for all data contributed to a shared bid or proposal.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB2001
Relating to increasing the criminal penalties for certain misuse of official information, including misuse of official information that results in cer...
Critical Urgency
Passed with Opposition
House Vote145 - 0
YEA
100% in favor145 voting
Senate Vote30 - 1
YEA
97% in favor31 voting
1
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Public Integrity UnitsTexas Attorney GeneralTexas District Attorneys
Primary Author: Rep. Morgan Meyer
89th Texas Legislature
jdkey.com
01

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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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 22, 2025
Passed House
May 8, 2025
Passed Senate
May 23, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsCrimesCrimes--miscellaneousEthicsFinancialFinancial--generalState Officers
03

House Authors

Rep. Morgan MeyerRepublican · Primary Author
Joint Authors
Coauthors (2)

Senate Sponsors

Sen. Paul BettencourtRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Morgan Meyer

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Related by Topic

View more Crimes legislation
Quick Reference

Frequently Asked Questions

Common questions about HB2001

Q

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.

Q

Who authored HB2001?

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

Q

When was HB2001 signed into law?

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

Q

Which agencies enforce HB2001?

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

Q

How significant are the changes in HB2001?

The regulatory priority for HB2001 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

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.

Q

What topics does HB2001 address?

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

Q

What are the key dates for HB2001?

Key dates for HB2001: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB2001?

HB2001 establishes the following penalties: criminal penalty of 3rd Degree Felony (2-10 years prison) for Misuse of official information resulting in net pecuniary gain of less than $150,000; criminal penalty of 2nd Degree Felony (2-20 years prison) for Misuse of official information resulting in net pecuniary gain of $150,000 or more but less than $300,000; criminal penalty of 1st Degree Felony (5-99 years or life prison) for Misuse of official information resulting in net pecuniary gain of $300,000 or more. Consult with legal counsel for specific applicability to your situation.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026