By: Dean (Senate Sponsor - King) H.B. No. 5331

(In the Senate - Received from the House May 8, 2025; May 9, 2025, read first time and referred to Committee on Business & Commerce; May 22, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 11, Nays 0; May 22, 2025, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR H.B. No. 5331 By: Nichols

A BILL TO BE ENTITLED

AN ACT

relating to the enforceability of certain state agency and local government contract language regarding required security incident notifications.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2054.603, Government Code, is amended by adding Subsection (e) to read as follows:

(e) Contract language in a cybersecurity insurance contract or other contract for goods or services prohibiting or restricting a state agency's or local government's compliance with this section or otherwise circumventing the requirements of this section is void and unenforceable.

SECTION 2. Section 2054.603(e), Government Code, as added by this Act, is intended to clarify rather than change existing law.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.

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