Texas 2025 - 89th Regular

Texas House Bill HB127 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R4522 CXP-F
2	2	By: Wilson H.B. No. 127
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to measures to protect public institutions of higher
10	10	education from foreign adversaries and to the prosecution of the
11	11	criminal offense of theft of trade secrets; providing civil and
12	12	administrative penalties; increasing a criminal penalty.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subtitle A, Title 3, Education Code, is amended
15	15	by adding Chapter 51B to read as follows:
16	16	CHAPTER 51B. HIGHER EDUCATION RESEARCH AND PROTECTION
17	17	SUBCHAPTER A. GENERAL PROVISIONS
18	18	Sec. 51B.001. DEFINITIONS. In this chapter:
19	19	(1) "Affiliate organization" means an entity under the
20	20	control of or established for the benefit of an organization. The
21	21	term includes a direct-support organization that is organized and
22	22	operated to receive, hold, invest, and administer property and make
23	23	expenditures to or for the benefit of an institution of higher
24	24	education or for the benefit of a research and development park or
25	25	authority affiliated with an institution of higher education.
26	26	(2) "Coordinating board" means the Texas Higher
27	27	Education Coordinating Board.
28	28	(3) "Foreign adversary" means:
29	29	(A) any country designated as a foreign adversary
30	30	by the United States secretary of commerce under 15 C.F.R. Section
31	31	791.4; and
32	32	(B) the State of Qatar.
33	33	(4) "Foreign government" means the government or an
34	34	agent of a country, nation, or group of nations, or a province or
35	35	other political subdivision of a country or nation, other than the
36	36	United States government.
37	37	(5) "Foreign source" means:
38	38	(A) a foreign government or agency of a foreign
39	39	government;
40	40	(B) a legal entity created solely under the laws
41	41	of a foreign government;
42	42	(C) an individual who is not a citizen or a
43	43	national of the United States, including a territory or
44	44	protectorate of the United States;
45	45	(D) a partnership, association, organization, or
46	46	other combination of persons, or a subsidiary of such an entity,
47	47	organized under the laws of or having its principal place of
48	48	business in a foreign adversary;
49	49	(E) a political party or member of a political
50	50	party of a foreign adversary; or
51	51	(F) an agent acting on behalf of an individual or
52	52	entity described by Paragraph (A), (B), (C), (D), or (E).
53	53	(6) "Gift" means a gift, grant, endowment, award, or
54	54	donation of money or property of any kind, including a conditional
55	55	or unconditional pledge of the gift, grant, endowment, award, or
56	56	donation.
57	57	(7) "Institution of higher education" has the meaning
58	58	assigned by Section 61.003.
59	59	(8) "Interest" when referring to an entity means any
60	60	direct or indirect:
61	61	(A) investment in or loan extended to the entity
62	62	that is valued at five percent or more of the entity's net worth; or
63	63	(B) control over the entity at a level exerting
64	64	similar or greater influence on the governance of the entity as an
65	65	investment described by Paragraph (A).
66	66	(9) "Political party" means an organization or
67	67	combination of individuals whose aim or purpose is, or who is
68	68	engaged in an activity devoted to, the establishment, control, or
69	69	acquisition of administration or control of a government, or the
70	70	furtherance or influencing of the political or public interest,
71	71	policies, or relations of a government.
72	72	Sec. 51B.002. RULES. The coordinating board shall adopt
73	73	rules as necessary to implement this chapter.
74	74	SUBCHAPTER B. REQUIREMENTS FOR GIFTS FROM AND CONTRACTS WITH
75	75	FOREIGN ADVERSARIES
76	76	Sec. 51B.051. GIFT FROM FOREIGN ADVERSARY. (a) Each
77	77	institution of higher education may not accept a gift the
78	78	institution is directly or indirectly offered from a foreign source
79	79	of a foreign adversary unless the gift is approved by the
80	80	coordinating board.
81	81	(b) An institution of higher education shall promptly
82	82	submit to the coordinating board a report on any gift the
83	83	institution is directly or indirectly offered from a foreign source
84	84	of a foreign adversary.
85	85	(b-1) Not later than November 1, 2025, each institution of
86	86	higher education shall submit to the coordinating board a report on
87	87	each gift the institution received directly or indirectly from a
88	88	foreign source of a foreign adversary from December 31, 2015, to
89	89	September 1, 2025. This subsection expires January 1, 2026.
90	90	(c) For each gift required to be reported under this
91	91	section, an institution of higher education must include in the
92	92	report the following information, unless the disclosure of that
93	93	information is prohibited or the information is confidential under
94	94	federal or state law:
95	95	(1) the date the institution received the offer of the
96	96	gift;
97	97	(2) the value of the gift;
98	98	(3) the purpose of the gift;
99	99	(4) an identification of the persons the gift is
100	100	explicitly intended to benefit;
101	101	(5) any applicable condition, requirement,
102	102	restriction, or term made a part of the gift;
103	103	(6) the foreign source's name and country of residence
104	104	or domicile;
105	105	(7) the name and mailing address of the person making
106	106	the disclosure; and
107	107	(8) the date the gift terminates, if applicable.
108	108	(d) Not later than the 30th day after the date the
109	109	coordinating board receives a report under Subsection (b), the
110	110	coordinating board shall determine whether and under what
111	111	conditions the institution may accept the gift.
112	112	(e) The coordinating board shall adopt:
113	113	(1) forms for an institution of higher education to
114	114	use in reporting the offering of a gift described by Subsection (b);
115	115	and
116	116	(2) rules and procedures for deciding whether to allow
117	117	an institution of higher education to accept a gift described by
118	118	Subsection (b).
119	119	(f) The coordinating board shall maintain a public Internet
120	120	portal disclosing each gift reported under this section and the
121	121	coordinating board's decision whether to allow the institution of
122	122	higher education to accept the gift.
123	123	(g) For purposes of this section, a gift offered through an
124	124	intermediary or affiliate organization is considered an indirect
125	125	gift and subject to reporting.
126	126	(h) On the request of the governor, the lieutenant governor,
127	127	or the speaker of the house of representatives, the coordinating
128	128	board shall inspect or audit a gift reported under this section.
129	129	(i) Information required to be reported under this section
130	130	is not confidential except as otherwise provided by state law or
131	131	unless protected as a trade secret by federal or state law.
132	132	Sec. 51B.052. CONTRACT OR CULTURAL AGREEMENT WITH FOREIGN
133	133	ADVERSARY. (a) Each institution of higher education may not enter
134	134	into a contract or cultural agreement with a foreign source of a
135	135	foreign adversary unless the contract or agreement is approved by
136	136	the coordinating board.
137	137	(b) An institution of higher education shall promptly
138	138	submit to the coordinating board a report on any contract or
139	139	cultural agreement the institution is directly or indirectly
140	140	offered from a foreign source of a foreign adversary.
141	141	(b-1) Not later than November 1, 2025, each institution of
142	142	higher education shall submit to the coordinating board a report on
143	143	each contract or cultural agreement the institution directly or
144	144	indirectly entered into with a foreign source of a foreign
145	145	adversary from December 31, 2013, to September 1, 2025. This
146	146	subsection expires January 1, 2026.
147	147	(c) For each contract or cultural agreement required to be
148	148	reported under this section, an institution of higher education
149	149	must include in the report, unless the disclosure of that
150	150	information is prohibited or the information is confidential under
151	151	federal or state law:
152	152	(1) the information described by Section 51B.051(c)
153	153	with respect to the contract or agreement; and
154	154	(2) a copy of the contract or agreement.
155	155	(d) Not later than the 30th day after the date the
156	156	coordinating board receives a report under Subsection (b), the
157	157	coordinating board shall determine whether and under what
158	158	conditions the institution may enter into the contract or cultural
159	159	agreement.
160	160	(e) The coordinating board shall adopt:
161	161	(1) forms for an institution of higher education to
162	162	use in reporting the offering of a contract or cultural agreement
163	163	described by Subsection (b); and
164	164	(2) rules and procedures for deciding whether to allow
165	165	an institution of higher education to enter into a contract or
166	166	cultural agreement described by Subsection (b).
167	167	(f) The coordinating board shall maintain a public Internet
168	168	portal disclosing each contract and cultural agreement reported
169	169	under this section and the coordinating board's decision whether to
170	170	allow the institution of higher education to enter into the
171	171	contract or agreement.
172	172	(g) For purposes of this section, a contract or cultural
173	173	agreement entered into through an intermediary or affiliate
174	174	organization is considered an indirect contract or cultural
175	175	agreement and subject to reporting.
176	176	(h) On the request of the governor, the lieutenant governor,
177	177	or the speaker of the house of representatives, the coordinating
178	178	board shall inspect or audit a contract or cultural agreement
179	179	reported under this section.
180	180	Sec. 51B.053. INVESTIGATION. (a) The coordinating board
181	181	shall investigate an alleged violation of this subchapter if the
182	182	coordinating board receives:
183	183	(1) a complaint from a compliance officer of a state
184	184	agency or institution of higher education; or
185	185	(2) a sworn complaint based on substantive information
186	186	and reasonable belief.
187	187	(b) The coordinating board may request from any person
188	188	records relevant to a reasonable suspicion of a violation of this
189	189	subchapter. A person who receives a request under this subsection
190	190	shall produce the records not later than the 10th day after the date
191	191	the person receives the request, unless the coordinating board and
192	192	the person agree to a later date.
193	193	Sec. 51B.054. ENFORCEMENT; PENALTIES FOR VIOLATION. (a) A
194	194	person who fails to submit a report required under this subchapter,
195	195	obtain coordinating board approval for a gift, contract, or
196	196	cultural agreement as required under this subchapter, or provide a
197	197	record requested under Section 51B.053 is liable to this state for a
198	198	civil penalty in the amount of $10,000 for the first violation and
199	199	$20,000 for each subsequent violation.
200	200	(b) A final order finding a failure to submit a report
201	201	required under this subchapter or to obtain coordinating board
202	202	approval for a gift, contract, or cultural agreement as required
203	203	under this subchapter must:
204	204	(1) identify the state officer or employee responsible
205	205	for accepting or entering into the unreported or unapproved gift,
206	206	contract, or cultural agreement; and
207	207	(2) refer the violation to, as applicable:
208	208	(A) the governor to consider removing a state
209	209	officer identified under Subdivision (1) from office; or
210	210	(B) the employing institution of higher
211	211	education to consider terminating the employment of an employee
212	212	identified under Subdivision (1).
213	213	(c) The attorney general may sue to collect the civil
214	214	penalty under Subsection (a). A suit under this subsection may be
215	215	filed in a district court in Travis County.
216	216	(d) If the coordinating board determines that an
217	217	institution of higher education negligently failed to report
218	218	information required by this subchapter or obtain coordinating
219	219	board approval for a gift, contract, or cultural agreement as
220	220	required under this subchapter, the coordinating board may assess
221	221	an administrative penalty against the institution in an amount
222	222	equal to 105 percent of the value of each unreported or unapproved
223	223	gift, contract, or agreement.
224	224	(e) An institution of higher education may not pay a civil
225	225	penalty imposed under Subsection (a) or an administrative penalty
226	226	assessed under Subsection (d) using state or federal money.
227	227	(f) A person who reports a violation described by Subsection
228	228	(a) may also report the violation to the attorney general and retain
229	229	protection under Chapter 554, Government Code. The person is
230	230	entitled to receive a reward in the amount of 25 percent of any
231	231	penalty recovered under this section.
232	232	SUBCHAPTER C. INTERNATIONAL CULTURAL EXCHANGE AGREEMENTS AND
233	233	PARTNERSHIPS AND STUDENT ASSOCIATIONS
234	234	Sec. 51B.101. DEFINITIONS. In this subchapter:
235	235	(1) "Cultural exchange agreement" means a written or
236	236	spoken statement of mutual interest in cultural exchange or
237	237	academic or research collaboration.
238	238	(2) "Cultural exchange partnership" means a faculty or
239	239	student exchange program, study abroad program, matriculation
240	240	program, recruiting program, or dual degree program.
241	241	Sec. 51B.102. CERTAIN INTERNATIONAL CULTURAL AGREEMENTS
242	242	PROHIBITED. (a) An institution of higher education may not
243	243	participate in a cultural exchange agreement with a foreign source
244	244	of a foreign adversary, or an entity controlled by a foreign
245	245	adversary, that:
246	246	(1) constrains the institution's freedom of contract;
247	247	(2) allows the institution's curriculum or values to
248	248	be directed, controlled, or influenced by the foreign adversary; or
249	249	(3) promotes an agenda detrimental to the safety or
250	250	security of this state, the residents of this state, or the United
251	251	States.
252	252	(b) Before entering into a cultural exchange agreement with
253	253	a foreign source of a foreign adversary, an institution of higher
254	254	education shall share the substance of the agreement with the
255	255	coordinating board and federal agencies responsible for national
256	256	security or the enforcement of trade sanctions, embargoes, or other
257	257	trade restrictions. If the coordinating board or a federal agency
258	258	consulted under this subsection determines that the agreement
259	259	violates the prohibition under Subsection (a), the institution may
260	260	not participate in the agreement.
261	261	Sec. 51B.103. PROHIBITIONS ON STUDENT ASSOCIATIONS. (a) A
262	262	student or scholars association affiliated with an institution of
263	263	higher education may not:
264	264	(1) accept a gift from a foreign source of a foreign
265	265	adversary; or
266	266	(2) enter into a contract or agreement with a foreign
267	267	source of a foreign adversary.
268	268	(b) An institution of higher education shall terminate an
269	269	affiliation with a student or scholars association if the
270	270	institution determines that the association has violated this
271	271	section.
272	272	(c) For purposes of this section, member dues or fees are
273	273	not considered a gift from a foreign source of a foreign adversary.
274	274	Sec. 51B.104. ANNUAL REPORT. (a) Not later than December 1
275	275	of each year, the coordinating board shall submit a written report
276	276	to the governor, the lieutenant governor, and the speaker of the
277	277	house of representatives on the grant programs, cultural exchange
278	278	agreements, cultural exchange partnerships, and contracts between
279	279	an institution of higher education and a foreign adversary or a
280	280	foreign source of a foreign adversary.
281	281	(b) The report must include the following information for
282	282	the preceding fiscal year:
283	283	(1) data regarding each grant program, cultural
284	284	exchange agreement, cultural exchange partnership, or contract
285	285	between an institution of higher education and an educational
286	286	institution or other institution that is based in or controlled by a
287	287	foreign adversary;
288	288	(2) a list of each office, campus, or physical
289	289	location used or maintained by an institution of higher education
290	290	in a foreign adversary; and
291	291	(3) the date on which each grant program, agreement,
292	292	partnership, or contract described by Subdivision (1) is expected
293	293	to terminate.
294	294	(c) Not later than July 1 of each year, each institution of
295	295	higher education shall submit to the coordinating board the
296	296	information described by Subsection (b).
297	297	SUBCHAPTER D. SCREENING OF FOREIGN RESEARCHERS
298	298	Sec. 51B.151. APPLICABILITY. This subchapter applies only
299	299	to an institution of higher education that has an annual research
300	300	budget of $10 million or more.
301	301	Sec. 51B.152. SCREENING OF FOREIGN RESEARCHERS REQUIRED.
302	302	(a) Before interviewing or offering an applicant employment for a
303	303	research or research-related support position at the institution or
304	304	granting an applicant access to research data or activities or
305	305	other sensitive data of the institution, an institution of higher
306	306	education must screen the applicant as provided by this subchapter
307	307	if the applicant:
308	308	(1) is a citizen of a foreign country and is not a
309	309	permanent resident of the United States; or
310	310	(2) is affiliated with an institution or program, or
311	311	has at least one year of employment or training, in a foreign
312	312	adversary, other than employment or training by an agency of the
313	313	United States.
314	314	(b) An institution of higher education may screen
315	315	additional applicants as provided by this subchapter for a position
316	316	described by Subsection (a) at the institution's discretion.
317	317	Sec. 51B.153. APPLICATION: REQUIRED MATERIALS. (a) An
318	318	institution of higher education must require an applicant subject
319	319	to screening under Section 51B.152 to submit to the institution:
320	320	(1) if the applicant is a citizen of a foreign country,
321	321	a copy of the applicant's passport and nonimmigrant visa
322	322	application most recently submitted to the United States Department
323	323	of State; and
324	324	(2) a resume and curriculum vitae that includes:
325	325	(A) a list of each postsecondary educational
326	326	institution in which the applicant has been enrolled;
327	327	(B) a list of all places of employment since the
328	328	applicant's 18th birthday;
329	329	(C) a list of all published materials for which
330	330	the applicant received credit as an author, a researcher, or
331	331	otherwise or to which the applicant contributed significant
332	332	research, writing, or editorial support;
333	333	(D) a list of the applicant's current and pending
334	334	research funding from any source, including the source of funding,
335	335	the amount of funding, the applicant's role on the project, and a
336	336	brief description of the research; and
337	337	(E) a full disclosure of the applicant's
338	338	professional activities outside of higher education, including any
339	339	affiliation with an institution or program in a foreign adversary.
340	340	(b) Notwithstanding Subsection (a)(2)(B), an applicant who
341	341	has been continuously employed or enrolled in a postsecondary
342	342	educational institution in the United States for the preceding 20
343	343	years may include in the applicant's resume only the applicant's
344	344	employment history for the preceding 20 years.
345	345	(c) An institution of higher education may destroy or return
346	346	to an applicant the copy of the applicant's nonimmigrant visa
347	347	application submitted under Subsection (a)(1) after extracting all
348	348	information relevant to the requirements of this subchapter.
349	349	Sec. 51B.154. RESEARCH INTEGRITY OFFICE. (a) The chief
350	350	administrative officer of an institution of higher education shall
351	351	establish a research integrity office to:
352	352	(1) review the materials submitted to the institution
353	353	by an applicant under Section 51B.153; and
354	354	(2) take reasonable steps to verify the information in
355	355	the application, including by:
356	356	(A) searching public databases for research
357	357	publications and presentations and public conflict of interest
358	358	records to identify any research publication or presentation that
359	359	may have been omitted from the application;
360	360	(B) contacting each of the applicant's employers
361	361	during the preceding 10 years to verify employment;
362	362	(C) contacting each postsecondary educational
363	363	institution the applicant attended to verify enrollment and
364	364	educational progress;
365	365	(D) searching public listings of persons subject
366	366	to sanctions or restrictions under federal law;
367	367	(E) submitting the applicant's name and other
368	368	identifying information to the Federal Bureau of Investigation or
369	369	another federal agency for screening related to national security
370	370	or counterespionage; and
371	371	(F) taking any other action the office considers
372	372	appropriate.
373	373	(b) An institution of higher education may direct the
374	374	research integrity office to approve applicants for hire using a
375	375	risk-based determination that considers the nature of the research
376	376	and the applicant's background and ongoing affiliations.
377	377	(c) An institution of higher education must complete the
378	378	requirements of this subchapter before:
379	379	(1) interviewing or offering a position to an
380	380	applicant described by Section 51B.152(a) in a research or
381	381	research-related support position; or
382	382	(2) granting the applicant access to research data or
383	383	activities or other sensitive data.
384	384	(d) An institution of higher education may not employ an
385	385	applicant subject to screening under Section 51B.152(a) in a
386	386	research or research-related support position if the applicant
387	387	fails to disclose in the application a substantial educational,
388	388	employment, or research-related activity or publication or
389	389	presentation unless the applicable department head or the
390	390	department head's designee certifies in writing the substance of
391	391	the failure to disclosure and the reasons for disregarding that
392	392	failure. A copy of the certification must be kept in the
393	393	investigative file of the research integrity office and must be
394	394	submitted to the nearest Federal Bureau of Investigation field
395	395	office.
396	396	(e) The research integrity office shall report to the
397	397	nearest Federal Bureau of Investigation field office, and to any
398	398	law enforcement agency designated by the governor or the
399	399	institution of higher education's governing board, the identity of
400	400	an applicant who is rejected for employment based on the screening
401	401	required by this subchapter or other risk-based screening.
402	402	Sec. 51B.155. OPERATIONAL AUDIT. Not later than March 31,
403	403	2026, the coordinating board shall conduct an operational audit
404	404	regarding the implementation of this subchapter. This section
405	405	expires September 1, 2026.
406	406	SUBCHAPTER E. FOREIGN TRAVEL: RESEARCH INSTITUTIONS
407	407	Sec. 51B.201. APPLICABILITY. This subchapter applies only
408	408	to an institution of higher education that has an annual research
409	409	budget of $10 million or more.
410	410	Sec. 51B.202. FOREIGN TRAVEL: RESEARCH INSTITUTIONS. (a)
411	411	Each institution of higher education shall establish an
412	412	international travel approval and monitoring program.
413	413	(b) The program must require, in addition to any other
414	414	travel approval process required by the institution of higher
415	415	education, preapproval from the institution's research integrity
416	416	office established under Section 51B.154 for any
417	417	employment-related foreign travel or activities by a faculty
418	418	member, researcher, or research department staff member of the
419	419	institution.
420	420	(c) A research integrity office may preapprove travel or
421	421	activities under the program only if the applicant:
422	422	(1) reviews and acknowledges guidance published by the
423	423	institution of higher education that relates to foreign adversaries
424	424	or countries under sanctions or other restrictions by this state or
425	425	the United States government, including:
426	426	(A) federal license requirements;
427	427	(B) customs rules;
428	428	(C) export controls;
429	429	(D) restrictions on taking institution of higher
430	430	education property, including intellectual property, abroad;
431	431	(E) restrictions on presentations, teaching, and
432	432	interactions with foreign colleagues; and
433	433	(F) other subjects important to the research and
434	434	academic integrity of the institution of higher education; and
435	435	(2) agrees to comply with the institution of higher
436	436	education's limitations on travel and activities abroad and all
437	437	applicable federal laws.
438	438	Sec. 51B.203. MAINTENANCE OF RECORDS AND REPORT. (a) An
439	439	institution of higher education shall maintain for at least three
440	440	years, or any longer period of time required by applicable federal
441	441	or state law, records relating to foreign travel and activities by a
442	442	faculty member, researcher, or research department staff member of
443	443	the institution, including:
444	444	(1) each foreign travel request and approval;
445	445	(2) expenses reimbursed by the institution for foreign
446	446	travel, including for travel, food, and lodging;
447	447	(3) payments and honoraria received during foreign
448	448	travel and activities, including for travel, food, and lodging;
449	449	(4) a statement of the purpose of each foreign travel;
450	450	and
451	451	(5) any record related to the foreign activity review.
452	452	(b) Each institution of higher education shall annually
453	453	submit to the institution's governing board a report on foreign
454	454	travel by a faculty member, researcher, or research department
455	455	staff member of the institution to a foreign adversary. The report
456	456	must list each traveler, foreign location visited, and foreign
457	457	institution visited.
458	458	Sec. 51B.204. OPERATIONAL AUDIT. Not later than March 31,
459	459	2026, the coordinating board shall conduct an operational audit
460	460	regarding the implementation of this subchapter. This section
461	461	expires September 1, 2026.
462	462	SUBCHAPTER F. ACADEMIC PARTNERSHIPS
463	463	Sec. 51B.251. APPROVAL OF CERTAIN ACADEMIC PARTNERSHIPS
464	464	REQUIRED. (a) Subject to approval by the coordinating board, an
465	465	institution of higher education may enter into or renew an academic
466	466	partnership with an educational or research institution located in
467	467	a foreign adversary only if the institution of higher education
468	468	maintains sufficient structural safeguards to protect the
469	469	institution's intellectual property, the security of this state,
470	470	and the national security interests of the United States.
471	471	(b) The coordinating board may approve an academic
472	472	partnership described by Subsection (a) only if the coordinating
473	473	board, in consultation with the attorney general's office,
474	474	determines that the partnership includes the following safeguards:
475	475	(1) compliance with all federal requirements,
476	476	including requirements of:
477	477	(A) federal research sponsors and federal export
478	478	control agencies, including regulations regarding international
479	479	traffic in arms and export administration regulations; and
480	480	(B) economic and trade sanctions administered by
481	481	the Office of Foreign Assets Control of the United States
482	482	Department of the Treasury;
483	483	(2) annual formal institution-level training programs
484	484	for faculty on conflicts of interest and conflicts of commitment;
485	485	and
486	486	(3) a formalized foreign visitor process and uniform
487	487	visiting scholar agreement.
488	488	(c) The coordinating board, in consultation with the
489	489	attorney general's office, may reject or terminate an academic
490	490	partnership described by Subsection (a) at any time and for any
491	491	reason.
492	492	SUBCHAPTER G. FOREIGN ADVERSARY SOFTWARE AND EDUCATION SERVICES
493	493	Sec. 51B.301. REVIEW OF EDUCATION SOFTWARE. (a) The
494	494	coordinating board shall:
495	495	(1) conduct a thorough review of the use by
496	496	institutions of higher education of testing, tutoring, or other
497	497	education software owned or controlled by a foreign adversary or a
498	498	company domiciled or headquartered in a foreign adversary; and
499	499	(2) develop a plan to eliminate the use of education
500	500	software described by Subdivision (1).
501	501	(b) An institution of higher education may not enter into or
502	502	renew a contract to provide testing, tutoring, or other education
503	503	software with a foreign adversary or a company domiciled or
504	504	headquartered in a foreign adversary.
505	505	SECTION 2. Section 31.05(a), Penal Code, is amended by
506	506	adding Subdivisions (2-a), (2-b), and (2-c) to read as follows:
507	507	(2-a) "Foreign agent" means an officer, employee,
508	508	proxy, servant, delegate, or representative of a foreign
509	509	government.
510	510	(2-b) "Foreign government" has the meaning assigned by
511	511	Section 51B.001, Education Code.
512	512	(2-c) "Foreign instrumentality" means an agency,
513	513	bureau, ministry, component, institution, association, or legal,
514	514	commercial, or business organization, corporation, firm, or entity
515	515	that is substantially owned, controlled, sponsored, commanded,
516	516	managed, or dominated by a foreign government.
517	517	SECTION 3. Section 31.05(c), Penal Code, is amended to read
518	518	as follows:
519	519	(c) An offense under this section is a felony of the third
520	520	degree, except that the offense is a felony of the second degree if
521	521	it is shown on the trial of the offense that the person who
522	522	committed the offense intended to benefit a foreign agent, foreign
523	523	government, or foreign instrumentality.
524	524	SECTION 4. Not later than March 31, 2026, each public
525	525	institution of higher education shall establish an international
526	526	travel approval and monitoring program required by Section 51B.202,
527	527	Education Code, as added by this Act.
528	528	SECTION 5. Not later than December 1, 2026, the Texas Higher
529	529	Education Coordinating Board shall prepare and submit the initial
530	530	report required by Section 51B.104, Education Code, as added by
531	531	this Act.
532	532	SECTION 6. The changes in law made by this Act apply only to
533	533	a contract entered into or renewed on or after the effective date of
534	534	this Act. A contract entered into or renewed before the effective
535	535	date of this Act is governed by the law in effect on the date the
536	536	contract was entered into or renewed, and the former law is
537	537	continued in effect for that purpose.
538	538	SECTION 7. The changes in law made by this Act apply only to
539	539	an offense committed on or after the effective date of this Act. An
540	540	offense committed before the effective date of this Act is governed
541	541	by the law in effect on the date the offense was committed, and the
542	542	former law is continued in effect for that purpose. For purposes of
543	543	this section, an offense was committed before the effective date of
544	544	this Act if any element of the offense occurred before that date.
545	545	SECTION 8. This Act takes effect September 1, 2025.