89R4522 CXP-F
By: Wilson H.B. No. 127
A BILL TO BE ENTITLED
AN ACT
relating to measures to protect public institutions of higher
education from foreign adversaries and to the prosecution of the
criminal offense of theft of trade secrets; providing civil and
administrative penalties; increasing a criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 3, Education Code, is amended
by adding Chapter 51B to read as follows:
CHAPTER 51B. HIGHER EDUCATION RESEARCH AND PROTECTION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 51B.001. DEFINITIONS. In this chapter:
(1) "Affiliate organization" means an entity under the
control of or established for the benefit of an organization. The
term includes a direct-support organization that is organized and
operated to receive, hold, invest, and administer property and make
expenditures to or for the benefit of an institution of higher
education or for the benefit of a research and development park or
authority affiliated with an institution of higher education.
(2) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(3) "Foreign adversary" means:
(A) any country designated as a foreign adversary
by the United States secretary of commerce under 15 C.F.R. Section
791.4; and
(B) the State of Qatar.
(4) "Foreign government" means the government or an
agent of a country, nation, or group of nations, or a province or
other political subdivision of a country or nation, other than the
United States government.
(5) "Foreign source" means:
(A) a foreign government or agency of a foreign
government;
(B) a legal entity created solely under the laws
of a foreign government;
(C) an individual who is not a citizen or a
national of the United States, including a territory or
protectorate of the United States;
(D) a partnership, association, organization, or
other combination of persons, or a subsidiary of such an entity,
organized under the laws of or having its principal place of
business in a foreign adversary;
(E) a political party or member of a political
party of a foreign adversary; or
(F) an agent acting on behalf of an individual or
entity described by Paragraph (A), (B), (C), (D), or (E).
(6) "Gift" means a gift, grant, endowment, award, or
donation of money or property of any kind, including a conditional
or unconditional pledge of the gift, grant, endowment, award, or
donation.
(7) "Institution of higher education" has the meaning
assigned by Section 61.003.
(8) "Interest" when referring to an entity means any
direct or indirect:
(A) investment in or loan extended to the entity
that is valued at five percent or more of the entity's net worth; or
(B) control over the entity at a level exerting
similar or greater influence on the governance of the entity as an
investment described by Paragraph (A).
(9) "Political party" means an organization or
combination of individuals whose aim or purpose is, or who is
engaged in an activity devoted to, the establishment, control, or
acquisition of administration or control of a government, or the
furtherance or influencing of the political or public interest,
policies, or relations of a government.
Sec. 51B.002. RULES. The coordinating board shall adopt
rules as necessary to implement this chapter.
SUBCHAPTER B. REQUIREMENTS FOR GIFTS FROM AND CONTRACTS WITH
FOREIGN ADVERSARIES
Sec. 51B.051. GIFT FROM FOREIGN ADVERSARY. (a) Each
institution of higher education may not accept a gift the
institution is directly or indirectly offered from a foreign source
of a foreign adversary unless the gift is approved by the
coordinating board.
(b) An institution of higher education shall promptly
submit to the coordinating board a report on any gift the
institution is directly or indirectly offered from a foreign source
of a foreign adversary.
(b-1) Not later than November 1, 2025, each institution of
higher education shall submit to the coordinating board a report on
each gift the institution received directly or indirectly from a
foreign source of a foreign adversary from December 31, 2015, to
September 1, 2025. This subsection expires January 1, 2026.
(c) For each gift required to be reported under this
section, an institution of higher education must include in the
report the following information, unless the disclosure of that
information is prohibited or the information is confidential under
federal or state law:
(1) the date the institution received the offer of the
gift;
(2) the value of the gift;
(3) the purpose of the gift;
(4) an identification of the persons the gift is
explicitly intended to benefit;
(5) any applicable condition, requirement,
restriction, or term made a part of the gift;
(6) the foreign source's name and country of residence
or domicile;
(7) the name and mailing address of the person making
the disclosure; and
(8) the date the gift terminates, if applicable.
(d) Not later than the 30th day after the date the
coordinating board receives a report under Subsection (b), the
coordinating board shall determine whether and under what
conditions the institution may accept the gift.
(e) The coordinating board shall adopt:
(1) forms for an institution of higher education to
use in reporting the offering of a gift described by Subsection (b);
and
(2) rules and procedures for deciding whether to allow
an institution of higher education to accept a gift described by
Subsection (b).
(f) The coordinating board shall maintain a public Internet
portal disclosing each gift reported under this section and the
coordinating board's decision whether to allow the institution of
higher education to accept the gift.
(g) For purposes of this section, a gift offered through an
intermediary or affiliate organization is considered an indirect
gift and subject to reporting.
(h) On the request of the governor, the lieutenant governor,
or the speaker of the house of representatives, the coordinating
board shall inspect or audit a gift reported under this section.
(i) Information required to be reported under this section
is not confidential except as otherwise provided by state law or
unless protected as a trade secret by federal or state law.
Sec. 51B.052. CONTRACT OR CULTURAL AGREEMENT WITH FOREIGN
ADVERSARY. (a) Each institution of higher education may not enter
into a contract or cultural agreement with a foreign source of a
foreign adversary unless the contract or agreement is approved by
the coordinating board.
(b) An institution of higher education shall promptly
submit to the coordinating board a report on any contract or
cultural agreement the institution is directly or indirectly
offered from a foreign source of a foreign adversary.
(b-1) Not later than November 1, 2025, each institution of
higher education shall submit to the coordinating board a report on
each contract or cultural agreement the institution directly or
indirectly entered into with a foreign source of a foreign
adversary from December 31, 2013, to September 1, 2025. This
subsection expires January 1, 2026.
(c) For each contract or cultural agreement required to be
reported under this section, an institution of higher education
must include in the report, unless the disclosure of that
information is prohibited or the information is confidential under
federal or state law:
(1) the information described by Section 51B.051(c)
with respect to the contract or agreement; and
(2) a copy of the contract or agreement.
(d) Not later than the 30th day after the date the
coordinating board receives a report under Subsection (b), the
coordinating board shall determine whether and under what
conditions the institution may enter into the contract or cultural
agreement.
(e) The coordinating board shall adopt:
(1) forms for an institution of higher education to
use in reporting the offering of a contract or cultural agreement
described by Subsection (b); and
(2) rules and procedures for deciding whether to allow
an institution of higher education to enter into a contract or
cultural agreement described by Subsection (b).
(f) The coordinating board shall maintain a public Internet
portal disclosing each contract and cultural agreement reported
under this section and the coordinating board's decision whether to
allow the institution of higher education to enter into the
contract or agreement.
(g) For purposes of this section, a contract or cultural
agreement entered into through an intermediary or affiliate
organization is considered an indirect contract or cultural
agreement and subject to reporting.
(h) On the request of the governor, the lieutenant governor,
or the speaker of the house of representatives, the coordinating
board shall inspect or audit a contract or cultural agreement
reported under this section.
Sec. 51B.053. INVESTIGATION. (a) The coordinating board
shall investigate an alleged violation of this subchapter if the
coordinating board receives:
(1) a complaint from a compliance officer of a state
agency or institution of higher education; or
(2) a sworn complaint based on substantive information
and reasonable belief.
(b) The coordinating board may request from any person
records relevant to a reasonable suspicion of a violation of this
subchapter. A person who receives a request under this subsection
shall produce the records not later than the 10th day after the date
the person receives the request, unless the coordinating board and
the person agree to a later date.
Sec. 51B.054. ENFORCEMENT; PENALTIES FOR VIOLATION. (a) A
person who fails to submit a report required under this subchapter,
obtain coordinating board approval for a gift, contract, or
cultural agreement as required under this subchapter, or provide a
record requested under Section 51B.053 is liable to this state for a
civil penalty in the amount of $10,000 for the first violation and
$20,000 for each subsequent violation.
(b) A final order finding a failure to submit a report
required under this subchapter or to obtain coordinating board
approval for a gift, contract, or cultural agreement as required
under this subchapter must:
(1) identify the state officer or employee responsible
for accepting or entering into the unreported or unapproved gift,
contract, or cultural agreement; and
(2) refer the violation to, as applicable:
(A) the governor to consider removing a state
officer identified under Subdivision (1) from office; or
(B) the employing institution of higher
education to consider terminating the employment of an employee
identified under Subdivision (1).
(c) The attorney general may sue to collect the civil
penalty under Subsection (a). A suit under this subsection may be
filed in a district court in Travis County.
(d) If the coordinating board determines that an
institution of higher education negligently failed to report
information required by this subchapter or obtain coordinating
board approval for a gift, contract, or cultural agreement as
required under this subchapter, the coordinating board may assess
an administrative penalty against the institution in an amount
equal to 105 percent of the value of each unreported or unapproved
gift, contract, or agreement.
(e) An institution of higher education may not pay a civil
penalty imposed under Subsection (a) or an administrative penalty
assessed under Subsection (d) using state or federal money.
(f) A person who reports a violation described by Subsection
(a) may also report the violation to the attorney general and retain
protection under Chapter 554, Government Code. The person is
entitled to receive a reward in the amount of 25 percent of any
penalty recovered under this section.
SUBCHAPTER C. INTERNATIONAL CULTURAL EXCHANGE AGREEMENTS AND
PARTNERSHIPS AND STUDENT ASSOCIATIONS
Sec. 51B.101. DEFINITIONS. In this subchapter:
(1) "Cultural exchange agreement" means a written or
spoken statement of mutual interest in cultural exchange or
academic or research collaboration.
(2) "Cultural exchange partnership" means a faculty or
student exchange program, study abroad program, matriculation
program, recruiting program, or dual degree program.
Sec. 51B.102. CERTAIN INTERNATIONAL CULTURAL AGREEMENTS
PROHIBITED. (a) An institution of higher education may not
participate in a cultural exchange agreement with a foreign source
of a foreign adversary, or an entity controlled by a foreign
adversary, that:
(1) constrains the institution's freedom of contract;
(2) allows the institution's curriculum or values to
be directed, controlled, or influenced by the foreign adversary; or
(3) promotes an agenda detrimental to the safety or
security of this state, the residents of this state, or the United
States.
(b) Before entering into a cultural exchange agreement with
a foreign source of a foreign adversary, an institution of higher
education shall share the substance of the agreement with the
coordinating board and federal agencies responsible for national
security or the enforcement of trade sanctions, embargoes, or other
trade restrictions. If the coordinating board or a federal agency
consulted under this subsection determines that the agreement
violates the prohibition under Subsection (a), the institution may
not participate in the agreement.
Sec. 51B.103. PROHIBITIONS ON STUDENT ASSOCIATIONS. (a) A
student or scholars association affiliated with an institution of
higher education may not:
(1) accept a gift from a foreign source of a foreign
adversary; or
(2) enter into a contract or agreement with a foreign
source of a foreign adversary.
(b) An institution of higher education shall terminate an
affiliation with a student or scholars association if the
institution determines that the association has violated this
section.
(c) For purposes of this section, member dues or fees are
not considered a gift from a foreign source of a foreign adversary.
Sec. 51B.104. ANNUAL REPORT. (a) Not later than December 1
of each year, the coordinating board shall submit a written report
to the governor, the lieutenant governor, and the speaker of the
house of representatives on the grant programs, cultural exchange
agreements, cultural exchange partnerships, and contracts between
an institution of higher education and a foreign adversary or a
foreign source of a foreign adversary.
(b) The report must include the following information for
the preceding fiscal year:
(1) data regarding each grant program, cultural
exchange agreement, cultural exchange partnership, or contract
between an institution of higher education and an educational
institution or other institution that is based in or controlled by a
foreign adversary;
(2) a list of each office, campus, or physical
location used or maintained by an institution of higher education
in a foreign adversary; and
(3) the date on which each grant program, agreement,
partnership, or contract described by Subdivision (1) is expected
to terminate.
(c) Not later than July 1 of each year, each institution of
higher education shall submit to the coordinating board the
information described by Subsection (b).
SUBCHAPTER D. SCREENING OF FOREIGN RESEARCHERS
Sec. 51B.151. APPLICABILITY. This subchapter applies only
to an institution of higher education that has an annual research
budget of $10 million or more.
Sec. 51B.152. SCREENING OF FOREIGN RESEARCHERS REQUIRED.
(a) Before interviewing or offering an applicant employment for a
research or research-related support position at the institution or
granting an applicant access to research data or activities or
other sensitive data of the institution, an institution of higher
education must screen the applicant as provided by this subchapter
if the applicant:
(1) is a citizen of a foreign country and is not a
permanent resident of the United States; or
(2) is affiliated with an institution or program, or
has at least one year of employment or training, in a foreign
adversary, other than employment or training by an agency of the
United States.
(b) An institution of higher education may screen
additional applicants as provided by this subchapter for a position
described by Subsection (a) at the institution's discretion.
Sec. 51B.153. APPLICATION: REQUIRED MATERIALS. (a) An
institution of higher education must require an applicant subject
to screening under Section 51B.152 to submit to the institution:
(1) if the applicant is a citizen of a foreign country,
a copy of the applicant's passport and nonimmigrant visa
application most recently submitted to the United States Department
of State; and
(2) a resume and curriculum vitae that includes:
(A) a list of each postsecondary educational
institution in which the applicant has been enrolled;
(B) a list of all places of employment since the
applicant's 18th birthday;
(C) a list of all published materials for which
the applicant received credit as an author, a researcher, or
otherwise or to which the applicant contributed significant
research, writing, or editorial support;
(D) a list of the applicant's current and pending
research funding from any source, including the source of funding,
the amount of funding, the applicant's role on the project, and a
brief description of the research; and
(E) a full disclosure of the applicant's
professional activities outside of higher education, including any
affiliation with an institution or program in a foreign adversary.
(b) Notwithstanding Subsection (a)(2)(B), an applicant who
has been continuously employed or enrolled in a postsecondary
educational institution in the United States for the preceding 20
years may include in the applicant's resume only the applicant's
employment history for the preceding 20 years.
(c) An institution of higher education may destroy or return
to an applicant the copy of the applicant's nonimmigrant visa
application submitted under Subsection (a)(1) after extracting all
information relevant to the requirements of this subchapter.
Sec. 51B.154. RESEARCH INTEGRITY OFFICE. (a) The chief
administrative officer of an institution of higher education shall
establish a research integrity office to:
(1) review the materials submitted to the institution
by an applicant under Section 51B.153; and
(2) take reasonable steps to verify the information in
the application, including by:
(A) searching public databases for research
publications and presentations and public conflict of interest
records to identify any research publication or presentation that
may have been omitted from the application;
(B) contacting each of the applicant's employers
during the preceding 10 years to verify employment;
(C) contacting each postsecondary educational
institution the applicant attended to verify enrollment and
educational progress;
(D) searching public listings of persons subject
to sanctions or restrictions under federal law;
(E) submitting the applicant's name and other
identifying information to the Federal Bureau of Investigation or
another federal agency for screening related to national security
or counterespionage; and
(F) taking any other action the office considers
appropriate.
(b) An institution of higher education may direct the
research integrity office to approve applicants for hire using a
risk-based determination that considers the nature of the research
and the applicant's background and ongoing affiliations.
(c) An institution of higher education must complete the
requirements of this subchapter before:
(1) interviewing or offering a position to an
applicant described by Section 51B.152(a) in a research or
research-related support position; or
(2) granting the applicant access to research data or
activities or other sensitive data.
(d) An institution of higher education may not employ an
applicant subject to screening under Section 51B.152(a) in a
research or research-related support position if the applicant
fails to disclose in the application a substantial educational,
employment, or research-related activity or publication or
presentation unless the applicable department head or the
department head's designee certifies in writing the substance of
the failure to disclosure and the reasons for disregarding that
failure. A copy of the certification must be kept in the
investigative file of the research integrity office and must be
submitted to the nearest Federal Bureau of Investigation field
office.
(e) The research integrity office shall report to the
nearest Federal Bureau of Investigation field office, and to any
law enforcement agency designated by the governor or the
institution of higher education's governing board, the identity of
an applicant who is rejected for employment based on the screening
required by this subchapter or other risk-based screening.
Sec. 51B.155. OPERATIONAL AUDIT. Not later than March 31,
2026, the coordinating board shall conduct an operational audit
regarding the implementation of this subchapter. This section
expires September 1, 2026.
SUBCHAPTER E. FOREIGN TRAVEL: RESEARCH INSTITUTIONS
Sec. 51B.201. APPLICABILITY. This subchapter applies only
to an institution of higher education that has an annual research
budget of $10 million or more.
Sec. 51B.202. FOREIGN TRAVEL: RESEARCH INSTITUTIONS. (a)
Each institution of higher education shall establish an
international travel approval and monitoring program.
(b) The program must require, in addition to any other
travel approval process required by the institution of higher
education, preapproval from the institution's research integrity
office established under Section 51B.154 for any
employment-related foreign travel or activities by a faculty
member, researcher, or research department staff member of the
institution.
(c) A research integrity office may preapprove travel or
activities under the program only if the applicant:
(1) reviews and acknowledges guidance published by the
institution of higher education that relates to foreign adversaries
or countries under sanctions or other restrictions by this state or
the United States government, including:
(A) federal license requirements;
(B) customs rules;
(C) export controls;
(D) restrictions on taking institution of higher
education property, including intellectual property, abroad;
(E) restrictions on presentations, teaching, and
interactions with foreign colleagues; and
(F) other subjects important to the research and
academic integrity of the institution of higher education; and
(2) agrees to comply with the institution of higher
education's limitations on travel and activities abroad and all
applicable federal laws.
Sec. 51B.203. MAINTENANCE OF RECORDS AND REPORT. (a) An
institution of higher education shall maintain for at least three
years, or any longer period of time required by applicable federal
or state law, records relating to foreign travel and activities by a
faculty member, researcher, or research department staff member of
the institution, including:
(1) each foreign travel request and approval;
(2) expenses reimbursed by the institution for foreign
travel, including for travel, food, and lodging;
(3) payments and honoraria received during foreign
travel and activities, including for travel, food, and lodging;
(4) a statement of the purpose of each foreign travel;
and
(5) any record related to the foreign activity review.
(b) Each institution of higher education shall annually
submit to the institution's governing board a report on foreign
travel by a faculty member, researcher, or research department
staff member of the institution to a foreign adversary. The report
must list each traveler, foreign location visited, and foreign
institution visited.
Sec. 51B.204. OPERATIONAL AUDIT. Not later than March 31,
2026, the coordinating board shall conduct an operational audit
regarding the implementation of this subchapter. This section
expires September 1, 2026.
SUBCHAPTER F. ACADEMIC PARTNERSHIPS
Sec. 51B.251. APPROVAL OF CERTAIN ACADEMIC PARTNERSHIPS
REQUIRED. (a) Subject to approval by the coordinating board, an
institution of higher education may enter into or renew an academic
partnership with an educational or research institution located in
a foreign adversary only if the institution of higher education
maintains sufficient structural safeguards to protect the
institution's intellectual property, the security of this state,
and the national security interests of the United States.
(b) The coordinating board may approve an academic
partnership described by Subsection (a) only if the coordinating
board, in consultation with the attorney general's office,
determines that the partnership includes the following safeguards:
(1) compliance with all federal requirements,
including requirements of:
(A) federal research sponsors and federal export
control agencies, including regulations regarding international
traffic in arms and export administration regulations; and
(B) economic and trade sanctions administered by
the Office of Foreign Assets Control of the United States
Department of the Treasury;
(2) annual formal institution-level training programs
for faculty on conflicts of interest and conflicts of commitment;
and
(3) a formalized foreign visitor process and uniform
visiting scholar agreement.
(c) The coordinating board, in consultation with the
attorney general's office, may reject or terminate an academic
partnership described by Subsection (a) at any time and for any
reason.
SUBCHAPTER G. FOREIGN ADVERSARY SOFTWARE AND EDUCATION SERVICES
Sec. 51B.301. REVIEW OF EDUCATION SOFTWARE. (a) The
coordinating board shall:
(1) conduct a thorough review of the use by
institutions of higher education of testing, tutoring, or other
education software owned or controlled by a foreign adversary or a
company domiciled or headquartered in a foreign adversary; and
(2) develop a plan to eliminate the use of education
software described by Subdivision (1).
(b) An institution of higher education may not enter into or
renew a contract to provide testing, tutoring, or other education
software with a foreign adversary or a company domiciled or
headquartered in a foreign adversary.
SECTION 2. Section 31.05(a), Penal Code, is amended by
adding Subdivisions (2-a), (2-b), and (2-c) to read as follows:
(2-a) "Foreign agent" means an officer, employee,
proxy, servant, delegate, or representative of a foreign
government.
(2-b) "Foreign government" has the meaning assigned by
Section 51B.001, Education Code.
(2-c) "Foreign instrumentality" means an agency,
bureau, ministry, component, institution, association, or legal,
commercial, or business organization, corporation, firm, or entity
that is substantially owned, controlled, sponsored, commanded,
managed, or dominated by a foreign government.
SECTION 3. Section 31.05(c), Penal Code, is amended to read
as follows:
(c) An offense under this section is a felony of the third
degree, except that the offense is a felony of the second degree if
it is shown on the trial of the offense that the person who
committed the offense intended to benefit a foreign agent, foreign
government, or foreign instrumentality.
SECTION 4. Not later than March 31, 2026, each public
institution of higher education shall establish an international
travel approval and monitoring program required by Section 51B.202,
Education Code, as added by this Act.
SECTION 5. Not later than December 1, 2026, the Texas Higher
Education Coordinating Board shall prepare and submit the initial
report required by Section 51B.104, Education Code, as added by
this Act.
SECTION 6. The changes in law made by this Act apply only to
a contract entered into or renewed on or after the effective date of
this Act. A contract entered into or renewed before the effective
date of this Act is governed by the law in effect on the date the
contract was entered into or renewed, and the former law is
continued in effect for that purpose.
SECTION 7. The changes in law made by this Act apply only to
an offense committed on or after the effective date of this Act. An
offense committed before the effective date of this Act is governed
by the law in effect on the date the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this section, an offense was committed before the effective date of
this Act if any element of the offense occurred before that date.
SECTION 8. This Act takes effect September 1, 2025.