Relating to access to and use of criminal history record information by the Public Utility Commission of Texas.
ModeratePlan for compliance
Low Cost
Effective:2025-09-01
Enforcing Agencies
Public Utility Commission of Texas (PUC)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025. (Expect immediate enforcement on new contract awards; retroactive screening for existing staff is likely).
Agency Rulemaking: The PUC must establish internal procedures to process FBI data. Monitor the Texas Register in Q1/Q2 2025 for rules defining disqualifying offenses and clearance protocols.
Immediate Action Plan
1.Audit Workforce: Immediately review the criminal history of all staff currently deployed on PUC contracts; identify those with out-of-state records that FBI checks will reveal.
2.Update MSAs: Draft contract amendments regarding "no-fault substitution" and cost allocation for presentation to the PUC legal division prior to Q3 2025.
3.Budget Adjustment: Factor fingerprinting fees and administrative downtime into your 2025 rate cards and bid proposals.
4.Monitor Rulemaking: Assign compliance staff to track PUC open meetings for the release of draft rules regarding the "may contract" definition.
Operational Changes Required
Contracts
Existing Master Services Agreements (MSAs) with the PUC must be amended to address:
Personnel Substitution: Insert "no-fault" substitution clauses. If the PUC disqualifies an employee based on new FBI data, you must be able to swap personnel without triggering a breach of contract.
Indemnification: Limit your liability regarding the PUC's handling of sensitive biometric and federal criminal data.
Cost Allocation: Explicitly state whether the costs of FBI fingerprinting and processing are pass-through expenses to the PUC or overhead absorbed by the vendor.
Hiring/Training
Biometric Logistics: Operationalize a workflow for employees to visit "FAST" (Fingerprint Applicant Services of Texas) locations. Name-based checks are no longer sufficient.
Lead Times: FBI checks take longer to adjudicate than DPS checks. Adjust project deployment timelines to account for this delay.
Pre-Screening: Audit current staff assigned to PUC projects. Individuals with criminal records that passed state checks may fail federal checks; identify these risks before the PUC does.
Reporting & Record-Keeping
Clearance Certification: Because the law requires the PUC to destroy criminal records after use (changing "may" to "shall"), you will not receive the background report. You must establish a protocol to receive a formal "Pass/Fail" certification from the PUC for your internal compliance files.
Fees & Costs
Per-Head Increase: Anticipate an unrecoverable cost of approximately $40–$50 per employee for FBI fingerprinting and processing, as the Fiscal Note indicates the State will not absorb these costs.
Strategic Ambiguities & Considerations
"May Contract" Scope: The statute applies to persons who "contract or *may* contract." This is dangerously vague. The PUC could interpret this to require background checks for *all* personnel listed in a bid proposal, rather than just the winning vendor. We must advocate for a narrow interpretation during rulemaking.
Disqualification Criteria: The bill grants access to records but does not define which crimes disqualify a vendor. The lack of a "nexus to duty" standard means the PUC currently has broad discretion to reject personnel for unrelated or minor offenses.
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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.
In 2023, the Texas Legislature authorized the Public Utility Commission of Texas (PUC) to obtain criminal history record information of prospective employees. However, the bill author has informed the committee that the legislation did not explicitly authorize the PUC to obtain this information regarding certain individuals who are already employed by the PUC or who are already contracted with the PUC, as state agencies require explicit statutory authorization to conduct background checks on state employees. H.B. 4344 seeks to address this issue by entitling the PUC to obtain criminal history record information that relates to certain employees and those who are contracted with the PUC.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change 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. 4344 amends the Government Code to expand the entitlement of the Public Utility Commission of Texas (PUC) to obtain from the Department of Public Safety (DPS) criminal history record information maintained by DPS that relates to an applicant for employment with the PUC in the following ways:
·includes the following among the individuals for which the PUC is entitled to obtain criminal history record information from DPS:
oa PUC employee who is granted access to ERCOT records or to critical infrastructure information that is confidential under state or federal law; or
oa person who enters into a contract with the PUC and is granted under that contract access to information in PUC records that is confidential under state or federal law; and
·expands the sources from which the PUC may obtain criminal history record information by also entitling the PUC to do the following:
oobtain through the FBI criminal history record information maintained or indexed by the FBI that pertains to an applicable person; and
oobtain from any other criminal justice agency in Texas criminal history record information maintained by that agency that relates to an applicable person.
The bill clarifies that the PUC's obtainment of the information is subject to statutory provisions relating to access to criminal history record information maintained by the FBI or a local criminal justice agency and must be consistent with state public policy.
H.B. 4344 prohibits the PUC from releasing or disclosing to any person criminal history record information obtained from the FBI under the bill's provisions. The bill maintains the existing prohibition against the release or disclosure of criminal history record information obtained by the PUC from DPS to any person or agency except on court order or with the consent of the person who is the subject of the information, and the bill extends that prohibition to criminal history record information obtained by the PUC from any other criminal justice agency in Texas. The bill replaces an authorization for the PUC to destroy the criminal history record information after the information is used for the authorized purpose with a requirement for the PUC to do so.
HB4344 mandates a shift from state-level to federal (FBI) background checks for all vendors, contractors, and employees servicing the Public Utility Commission of Texas (PUC). This creates a stricter screening standard requiring biometric fingerprinting for deployed personnel and imposes mandatory data destruction protocols on the Commission, altering how vendor clearance is documented. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025.
Q
Who authored HB4344?
HB4344 was authored by Texas Representative Ana Hernandez during the Regular Session.
Q
When was HB4344 signed into law?
HB4344 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB4344?
HB4344 is enforced by Public Utility Commission of Texas (PUC).
Q
How urgent is compliance with HB4344?
The compliance urgency for HB4344 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB4344?
The cost impact of HB4344 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB4344 address?
HB4344 addresses topics including labor, labor--general, utilities, utilities--general and criminal records.
Legislative data provided by LegiScanLast updated: November 25, 2025
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