Relating to the penalty for the crime of election fraud; increasing a criminal penalty.

Contracts

• Vendor Indemnification: Review Master Services Agreements (MSAs) with political consultants, canvassing firms, and logistics vendors. Require certification of HB5115 compliance.
• Termination Clauses: Update employment and vendor contracts to define "indictment under the Texas Election Code" as immediate grounds for termination for cause to mitigate organizational reputational risk.
• Elected Official Carve-outs: If you employ individuals who serve on local boards (school, city, county), amend their contracts to strictly separate their public duties from corporate resources to avoid First Degree Felony exposure.

Hiring/Training

• Mandatory Scripting: Staff at long-term care facilities or HR departments running voter drives must use rigid, pre-approved scripts when assisting with mail-in ballot applications. Improvisation is now a liability.
• Segregation of Duties: Implement a "two-person rule" for handling any election materials. One person collects, a different person verifies. This creates an operational defense against claims of "knowing" fraud.
• Training Logs: You must document that all relevant employees have been trained on the new felony standards. This documentation is your primary defense against organizational negligence claims.

Reporting & Record-Keeping

• Chain of Custody: Establish a logged chain of custody for any physical ballot applications handled by your organization.
• Incident Reporting: Create a distinct internal channel for reporting election irregularities. Reports must be escalated immediately to Legal Counsel, not HR.

Fees & Costs

• Insurance Gaps: Critical Financial Risk. Review D&O and E&O policies immediately. Most policies exclude coverage for criminal acts. Since these violations are now felonies, defense costs may not be covered once an indictment is issued.
• Litigation Reserves: Organizations heavily involved in political activity should increase legal reserves for potential criminal defense retainers, which are significantly higher for felonies than misdemeanors.