Relating to the homeland security activities of certain entities, including the establishment and operations of the Homeland Security Division in the Department of Public Safety.

Contracts

• Non-Disclosure Agreements (NDAs): Standard government NDAs are no longer sufficient. You must update agreements to specifically cite Texas Gov't Code Sec. 411.563 to trigger protection from Open Records requests.
• Supply Chain Representations: Insert warranties requiring vendors to certify they are not on federal restricted lists (Supplement No. 4 to 15 C.F.R. Part 744 or Section 1260H of the NDAA for FY2021), as the HSD is mandated to enforce foreign adversary restrictions.
• Employment Agreements: If an employee serves as a volunteer "Infrastructure Liaison Officer," execute an addendum clarifying that this role is voluntary, distinct from their corporate duties, and defining the scope of their authority to share company data.

Hiring/Training

• Designated Point of Contact: Appoint a single liaison to interface with the HSD to ensure consistent messaging regarding facility vulnerabilities.
• Vendor Vetting: Update "Know-Your-Vendor" (KYV) protocols to screen against the specific federal "Chinese military company" lists cited in the statute.

Reporting & Record-Keeping

• Mandatory Confidentiality Notice: The law requires written notification at the time of submission for data to be considered confidential.
• *Requirement:* Create a standard digital watermark or cover sheet for all DPS/HSD correspondence stating: *"CONFIDENTIAL: Highly sensitive/proprietary information pursuant to Texas Gov't Code Sec. 411.563."*
• Volunteer Documentation: Maintain logs of hours and activities for employees participating in the Infrastructure Liaison Officer Program to distinguish state volunteer work from compensable corporate hours.

Fees & Costs

• Direct Fees: None.
• Indirect Costs: Legal counsel hours for contract updates; potential administrative costs to update vendor screening software.