1. (a) In this section, "employee" means a person who is an employee of a:

   1. (1) contractor or subcontractor of a state agency;
   2. (2) vendor responding to a contract solicitation by a state agency; or
   3. (3) provider or recipient of state services.

2. (b) An employee or other person with knowledge of a violation of this subchapter has a cause of action against an employer or entity who suspends or terminates services, contracts, or employment of or otherwise disciplines or discriminates or retaliates against the employee or other person in any manner for:

   1. (1) reporting to a supervisor, state regulatory agency, or law enforcement agency a violation of this subchapter; or
   2. (2) initiating or cooperating in any investigation by or proceeding of a governmental entity relating to a state contract, including by providing information or testimony in the proceeding.

3. (c) The petitioner may recover:

   1. (1) actual damages and damages for lost wages or services if the petitioner's employment was suspended or terminated;
   2. (2) exemplary damages;
   3. (3) court costs; and
   4. (4) reasonable attorney's fees.

4. (d) In addition to the amounts that may be recovered under Subsection (c), a person whose employment is suspended or terminated is entitled to appropriate injunctive relief, including, if applicable:

   1. (1) reinstatement in the person's former position; and
   2. (2) reinstatement of lost fringe benefits or seniority rights.
5. (e) The petitioner, not later than the 90th day after the date on which the person's employment is suspended or terminated, must bring suit or notify the Texas Workforce Commission of the petitioner's intent to sue under this section. A petitioner who notifies the Texas Workforce Commission under this subsection must bring suit not later than the 90th day after the date of the delivery of the notice to the commission. On receipt of the notice, the commission shall notify the employer of the petitioner's intent to bring suit under this section.

6. (f) The petitioner has the burden of proof, except that there is a rebuttable presumption that the person's employment was suspended or terminated for reporting abuse, neglect, or exploitation if the person is suspended or terminated within 120 days after the date the person:

   1. (1) reported the violation; or
   2. (2) initiated or cooperated in an investigation or proceeding.

7. (g) A suit under this section may be brought in the district court of the county in which:

   1. (1) the plaintiff resides;
   2. (2) the plaintiff was employed by the defendant; or
   3. (3) the defendant conducts business.
8. (h) The state auditor's office shall provide legal assistance to a petitioner who brings suit under this section.
9. (i) For purposes of this section, retaliation includes harassment, blacklisting, changes or impact to a contract or state services an individual may be receiving, and any other adverse action that affects an individual's livelihood, employment, or access to services.

Added by Acts 2025, 89th Leg., R.S., Ch. 241 (H.B. 5061), Sec. 2, eff. September 1, 2025.