Texas 2025 - 89th Regular

Texas House Bill HB4195 Compare Versions

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1	1	89R5628 CXP-D
2	2	By: Leo Wilson H.B. No. 4195
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to contracts with and the acceptance of money from certain
10	10	foreign sources by public schools and public institutions of higher
11	11	education; providing administrative penalties.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter D, Chapter 11, Education Code, is
14	14	amended by adding Sections 11.1561 and 11.1562 to read as follows:
15	15	Sec. 11.1561. PROHIBITION ON CONTRACTS WITH OR ACCEPTANCE
16	16	OF MONEY FROM FOREIGN ADVERSARIES. (a) In this section:
17	17	(1) "Contract" includes:
18	18	(A) an agreement involving the exchange of
19	19	faculty, staff, or students through any form of collaboration,
20	20	including a research partnership, joint academic program, faculty
21	21	or staff exchange, study abroad program, or student exchange
22	22	program; and
23	23	(B) an arrangement involving the transfer or
24	24	sharing of intellectual property or proprietary information.
25	25	(2) "Foreign adversary" means:
26	26	(A) the People's Republic of China;
27	27	(B) the Islamic Republic of Iran;
28	28	(C) the Democratic People's Republic of Korea;
29	29	(D) the State of Qatar;
30	30	(E) the Russian Federation; or
31	31	(F) any other country designated as a country of
32	32	particular concern in the United States secretary of state's most
33	33	recent designations under the International Religious Freedom Act
34	34	of 1998 (22 U.S.C. Section 6401 et seq.).
35	35	(b) Notwithstanding any other law, a school district may not
36	36	enter into a contract with or solicit or accept a gift or donation
37	37	made by or on behalf of:
38	38	(1) a foreign adversary;
39	39	(2) a company or other entity that is:
40	40	(A) organized under the laws of a foreign
41	41	adversary or that has its principal place of business in the
42	42	territory of or controlled by a foreign adversary; or
43	43	(B) owned by or the majority of stock or other
44	44	ownership interest of which is held or controlled by a foreign
45	45	adversary or individuals who are citizens of a foreign adversary;
46	46	(3) a company or other entity that is owned by or the
47	47	majority of stock or other ownership interest of which is held or
48	48	controlled by a company or other entity, including a governmental
49	49	entity, described by Subdivision (2); or
50	50	(4) a charitable organization that is:
51	51	(A) organized under the laws of a foreign
52	52	adversary or that has its principal place of business in the
53	53	territory of or controlled by a foreign adversary;
54	54	(B) owned or controlled by individuals who are
55	55	citizens of a foreign adversary; or
56	56	(C) directly controlled by the government of a
57	57	foreign adversary.
58	58	(c) If a school district violates Subsection (b), in
59	59	addition to any other penalties authorized by law, the State Board
60	60	of Education shall assess an administrative penalty against the
61	61	district in an amount not to exceed 150 percent of the value of the
62	62	contract, gift, or donation subject to the violation. A penalty
63	63	collected under this subsection shall be deposited to the credit of
64	64	the foundation school fund.
65	65	Sec. 11.1562. REPORT ON CONTRACTS ENTERED INTO WITH AND
66	66	MONEY RECEIVED FROM FOREIGN SOURCES. (a) In this section:
67	67	(1) "Contract" and "foreign adversary" have the
68	68	meanings assigned by Section 11.1561.
69	69	(2) "Foreign government" means the government or an
70	70	agent of any country, nation, or group of nations, or any province
71	71	or other political subdivision of a country or nation, other than
72	72	the United States government.
73	73	(3) "Foreign source" means:
74	74	(A) a foreign government or agency of a foreign
75	75	government;
76	76	(B) a legal entity created solely under the laws
77	77	of a foreign nation or having its principal place of business in a
78	78	foreign adversary;
79	79	(C) an individual who is not a citizen or a
80	80	national of the United States, including a territory or
81	81	protectorate of the United States;
82	82	(D) an agent acting on behalf of an individual or
83	83	entity described by Paragraph (A), (B), or (C); or
84	84	(E) a political party or member of a political
85	85	party of a foreign nation.
86	86	(b) Not later than September 1 of each year, a school
87	87	district shall submit to the chair of the State Board of Education a
88	88	report disclosing each contract entered into with and gift or
89	89	donation received by or on behalf of:
90	90	(1) a foreign source;
91	91	(2) a company or other entity that is:
92	92	(A) organized under the laws of a foreign nation
93	93	or that has its principal place of business in a foreign nation; or
94	94	(B) owned by or the majority of stock or other
95	95	ownership interest of which is held or controlled by a foreign
96	96	nation or individuals who are citizens of a foreign nation;
97	97	(3) a company or other entity that is owned by or the
98	98	majority of stock or other ownership interest of which is held or
99	99	controlled by a company or other entity, including a governmental
100	100	entity, described by Subdivision (2); or
101	101	(4) a charitable organization that is:
102	102	(A) organized under the laws of a foreign nation
103	103	or that has its principal place of business in a foreign nation;
104	104	(B) owned or controlled by citizens of a foreign
105	105	nation; or
106	106	(C) directly controlled by a foreign nation.
107	107	(c) For each contract, gift, or donation required to be
108	108	reported under this section, a school district must include in the
109	109	report the following information, unless the disclosure of that
110	110	information is prohibited or the information is confidential under
111	111	federal or state law:
112	112	(1) the date the district entered into the contract or
113	113	received the gift or donation;
114	114	(2) the value of the contract, gift, or donation;
115	115	(3) the purpose of the contract, gift, or donation;
116	116	(4) the persons the contract, gift, or donation is
117	117	explicitly intended to benefit;
118	118	(5) any applicable condition, requirement,
119	119	restriction, or term made a part of the contract, gift, or donation;
120	120	(6) the foreign source's name and country of residence
121	121	or domicile;
122	122	(7) the name and mailing address of the person making
123	123	the disclosure; and
124	124	(8) the date of termination of the contract, gift, or
125	125	donation, if applicable.
126	126	(d) The chair of the State Board of Education shall provide
127	127	to the agency a copy of each report submitted under this section.
128	128	The agency shall post on the agency's Internet website each of those
129	129	reports.
130	130	(e) If a school district fails to disclose a contract, gift,
131	131	or donation as required by this section, the State Board of
132	132	Education shall assess an administrative penalty against the
133	133	district in an amount not to exceed 100 percent of the value of each
134	134	undisclosed contract, gift, or donation. A penalty collected under
135	135	this subsection shall be deposited to the credit of the foundation
136	136	school fund.
137	137	SECTION 2. Section 12.013(b), Education Code, is amended to
138	138	read as follows:
139	139	(b) A home-rule school district is subject to:
140	140	(1) a provision of this title establishing a criminal
141	141	offense;
142	142	(2) a provision of this title relating to limitations
143	143	on liability; and
144	144	(3) a prohibition, restriction, or requirement, as
145	145	applicable, imposed by this title or a rule adopted under this
146	146	title, relating to:
147	147	(A) the Public Education Information Management
148	148	System (PEIMS) to the extent necessary to monitor compliance with
149	149	this subchapter as determined by the commissioner;
150	150	(B) educator certification under Chapter 21 and
151	151	educator rights under Sections 21.407, 21.408, and 22.001;
152	152	(C) criminal history records under Subchapter C,
153	153	Chapter 22;
154	154	(D) student admissions under Section 25.001;
155	155	(E) school attendance under Sections 25.085,
156	156	25.086, and 25.087;
157	157	(F) inter-district or inter-county transfers of
158	158	students under Subchapter B, Chapter 25;
159	159	(G) elementary class size limits under Section
160	160	25.112, in the case of any campus in the district that fails to
161	161	satisfy any standard under Section 39.054(e);
162	162	(H) high school graduation under Section 28.025;
163	163	(I) special education programs under Subchapter
164	164	A, Chapter 29;
165	165	(J) bilingual education under Subchapter B,
166	166	Chapter 29;
167	167	(K) prekindergarten programs under Subchapter E,
168	168	Chapter 29;
169	169	(L) safety provisions relating to the
170	170	transportation of students under Sections 34.002, 34.003, 34.004,
171	171	and 34.008;
172	172	(M) computation and distribution of state aid
173	173	under Chapters 31, 43, and 48;
174	174	(N) extracurricular activities under Section
175	175	33.081;
176	176	(O) health and safety under Chapter 38;
177	177	(P) the provisions of Subchapter A, Chapter 39;
178	178	(Q) public school accountability and special
179	179	investigations under Subchapters A, B, C, D, and J, Chapter 39, and
180	180	Chapter 39A;
181	181	(R) options for local revenue levels in excess of
182	182	entitlement under Chapter 49;
183	183	(S) a bond or other obligation or tax rate under
184	184	Chapters 43, 45, and 48;
185	185	(T) purchasing under Chapter 44; [and]
186	186	(U) parental options to retain a student under
187	187	Section 28.02124; and
188	188	(V) contracting and the acceptance of money from
189	189	foreign sources and the reporting of those acts under Sections
190	190	11.1561 and 11.1562.
191	191	SECTION 3. Section 12.056(b), Education Code, is amended to
192	192	read as follows:
193	193	(b) A campus or program for which a charter is granted under
194	194	this subchapter is subject to:
195	195	(1) a provision of this title establishing a criminal
196	196	offense; and
197	197	(2) a prohibition, restriction, or requirement, as
198	198	applicable, imposed by this title or a rule adopted under this
199	199	title, relating to:
200	200	(A) the Public Education Information Management
201	201	System (PEIMS) to the extent necessary to monitor compliance with
202	202	this subchapter as determined by the commissioner;
203	203	(B) criminal history records under Subchapter C,
204	204	Chapter 22;
205	205	(C) high school graduation under Section 28.025;
206	206	(D) special education programs under Subchapter
207	207	A, Chapter 29;
208	208	(E) bilingual education under Subchapter B,
209	209	Chapter 29;
210	210	(F) prekindergarten programs under Subchapter E,
211	211	Chapter 29, except class size limits for prekindergarten classes
212	212	imposed under Section 25.112, which do not apply;
213	213	(G) extracurricular activities under Section
214	214	33.081;
215	215	(H) health and safety under Chapter 38;
216	216	(I) the provisions of Subchapter A, Chapter 39;
217	217	(J) public school accountability and special
218	218	investigations under Subchapters A, B, C, D, F, and J, Chapter 39,
219	219	and Chapter 39A;
220	220	(K) the duty to discharge or refuse to hire
221	221	certain employees or applicants for employment under Section
222	222	12.1059; [and]
223	223	(L) parental options to retain a student under
224	224	Section 28.02124; and
225	225	(M) contracting and the acceptance of money from
226	226	foreign sources and the reporting of those acts under Sections
227	227	11.1561 and 11.1562.
228	228	SECTION 4. Section 12.104(b), Education Code, is amended to
229	229	read as follows:
230	230	(b) An open-enrollment charter school is subject to:
231	231	(1) a provision of this title establishing a criminal
232	232	offense;
233	233	(2) the provisions in Chapter 554, Government Code;
234	234	and
235	235	(3) a prohibition, restriction, or requirement, as
236	236	applicable, imposed by this title or a rule adopted under this
237	237	title, relating to:
238	238	(A) the Public Education Information Management
239	239	System (PEIMS) to the extent necessary to monitor compliance with
240	240	this subchapter as determined by the commissioner;
241	241	(B) criminal history records under Subchapter C,
242	242	Chapter 22;
243	243	(C) reading instruments and accelerated reading
244	244	instruction programs under Section 28.006;
245	245	(D) accelerated instruction under Section
246	246	28.0211;
247	247	(E) high school graduation requirements under
248	248	Section 28.025;
249	249	(F) special education programs under Subchapter
250	250	A, Chapter 29;
251	251	(G) bilingual education under Subchapter B,
252	252	Chapter 29;
253	253	(H) prekindergarten programs under Subchapter E
254	254	or E-1, Chapter 29, except class size limits for prekindergarten
255	255	classes imposed under Section 25.112, which do not apply;
256	256	(I) extracurricular activities under Section
257	257	33.081;
258	258	(J) discipline management practices or behavior
259	259	management techniques under Section 37.0021;
260	260	(K) health and safety under Chapter 38;
261	261	(L) the provisions of Subchapter A, Chapter 39;
262	262	(M) public school accountability and special
263	263	investigations under Subchapters A, B, C, D, F, G, and J, Chapter
264	264	39, and Chapter 39A;
265	265	(N) the requirement under Section 21.006 to
266	266	report an educator's misconduct;
267	267	(O) intensive programs of instruction under
268	268	Section 28.0213;
269	269	(P) the right of a school employee to report a
270	270	crime, as provided by Section 37.148;
271	271	(Q) bullying prevention policies and procedures
272	272	under Section 37.0832;
273	273	(R) the right of a school under Section 37.0052
274	274	to place a student who has engaged in certain bullying behavior in a
275	275	disciplinary alternative education program or to expel the student;
276	276	(S) the right under Section 37.0151 to report to
277	277	local law enforcement certain conduct constituting assault or
278	278	harassment;
279	279	(T) a parent's right to information regarding the
280	280	provision of assistance for learning difficulties to the parent's
281	281	child as provided by Sections 26.004(b)(11) and 26.0081(c) and (d);
282	282	(U) establishment of residency under Section
283	283	25.001;
284	284	(V) school safety requirements under Sections
285	285	37.0814, 37.108, 37.1081, 37.1082, 37.1083, 37.1084, 37.1085,
286	286	37.1086, 37.109, 37.113, 37.114, 37.1141, 37.115, 37.207, and
287	287	37.2071 and Subchapter J, Chapter 37;
288	288	(W) the early childhood literacy and mathematics
289	289	proficiency plans under Section 11.185;
290	290	(X) the college, career, and military readiness
291	291	plans under Section 11.186; [and]
292	292	(Y) parental options to retain a student under
293	293	Section 28.02124; and
294	294	(Z) contracting and the acceptance of money from
295	295	foreign sources and the reporting of those acts under Sections
296	296	11.1561 and 11.1562.
297	297	SECTION 5. Subchapter Z, Chapter 51, Education Code, is
298	298	amended by adding Sections 51.985 and 51.986 to read as follows:
299	299	Sec. 51.985. PROHIBITION ON CONTRACTS WITH OR ACCEPTANCE OF
300	300	MONEY FROM FOREIGN ADVERSARIES. (a) In this section:
301	301	(1) "Affiliate organization" means an entity under the
302	302	control of or established for the benefit of an institution of
303	303	higher education, including a direct-support organization.
304	304	(2) "Board" and "institution of higher education" have
305	305	the meanings assigned by Section 61.003.
306	306	(3) "Contract" and "foreign adversary" have the
307	307	meanings assigned by Section 11.1561.
308	308	(b) Notwithstanding any other law, an institution of higher
309	309	education or an affiliate organization may not enter into a
310	310	contract with or solicit or accept a gift or donation made by or on
311	311	behalf of:
312	312	(1) a foreign adversary;
313	313	(2) a company or other entity that is:
314	314	(A) organized under the laws of a foreign
315	315	adversary or that has its principal place of business in the
316	316	territory of or controlled by a foreign adversary; or
317	317	(B) owned by or the majority of stock or other
318	318	ownership interest of which is held or controlled by a foreign
319	319	adversary or individuals who are citizens of a foreign adversary;
320	320	(3) a company or other entity that is owned by or the
321	321	majority of stock or other ownership interest of which is held or
322	322	controlled by a company or other entity, including a governmental
323	323	entity, described by Subdivision (2); or
324	324	(4) a charitable organization that is:
325	325	(A) organized under the laws of a foreign
326	326	adversary or that has its principal place of business in the
327	327	territory of or controlled by a foreign adversary;
328	328	(B) owned or controlled by citizens of a foreign
329	329	adversary; or
330	330	(C) directly controlled by the government of a
331	331	foreign adversary.
332	332	(c) If an institution of higher education violates
333	333	Subsection (b), in addition to any other penalties authorized by
334	334	law, the board shall assess an administrative penalty against the
335	335	institution in an amount not to exceed 150 percent of the value of
336	336	the contract, gift, or donation subject to the violation. A penalty
337	337	collected under this subsection shall be deposited:
338	338	(1) one-half to the credit of the permanent university
339	339	fund; and
340	340	(2) one-half to the credit of the higher education
341	341	fund.
342	342	Sec. 51.986. REPORT ON CONTRACTS ENTERED INTO WITH AND
343	343	MONEY RECEIVED FROM FOREIGN NATIONS. (a) In this section:
344	344	(1) "Affiliate organization" and "contract" have the
345	345	meanings assigned by Section 51.985.
346	346	(2) "Board" and "institution of higher education" have
347	347	the meanings assigned by Section 61.003.
348	348	(3) "Foreign source" has the meaning assigned by
349	349	Section 11.1562.
350	350	(b) Not later than September 1 of each year, an institution
351	351	of higher education and an affiliate organization shall submit to
352	352	the board a report disclosing each contract entered into with and
353	353	gift or donation made by or on behalf of:
354	354	(1) the government of a foreign nation;
355	355	(2) a representative of the government of a foreign
356	356	nation;
357	357	(3) a company or other entity that is:
358	358	(A) organized under the laws of a foreign nation
359	359	or that has its principal place of business in a foreign nation; or
360	360	(B) owned by or the majority of stock or other
361	361	ownership interest of which is held or controlled by the government
362	362	of a foreign nation or individuals who are citizens of a foreign
363	363	nation;
364	364	(4) a company or other entity that is owned by or the
365	365	majority of stock or other ownership interest of which is held or
366	366	controlled by a company or other entity, including a governmental
367	367	entity, described by Subdivision (3); or
368	368	(5) a charitable organization that is:
369	369	(A) organized under the laws of a foreign nation
370	370	or that has its principal place of business in a foreign nation;
371	371	(B) owned or controlled by citizens of a foreign
372	372	nation; or
373	373	(C) directly controlled by the government of a
374	374	foreign nation.
375	375	(c) For each contract, gift, or donation required to be
376	376	reported under this section, an institution of higher education and
377	377	an affiliate organization must include in the report the following
378	378	information, unless the disclosure of that information is
379	379	prohibited or the information is confidential under federal or
380	380	state law:
381	381	(1) the date the institution entered into the contract
382	382	or received the gift or donation;
383	383	(2) the value of the contract, gift, or donation;
384	384	(3) the purpose of the contract, gift, or donation;
385	385	(4) the persons the contract, gift, or donation is
386	386	explicitly intended to benefit;
387	387	(5) any applicable condition, requirement,
388	388	restriction, or term made a part of the contract, gift, or donation;
389	389	(6) the foreign source's name and country of residence
390	390	or domicile;
391	391	(7) the name and mailing address of the person making
392	392	the disclosure; and
393	393	(8) the date of termination of the contract, gift, or
394	394	donation, if applicable.
395	395	(d) The board shall post on the board's Internet website
396	396	each report submitted under this section.
397	397	(e) If an institution of higher education or an affiliate
398	398	organization fails to disclose a contract, gift, or donation as
399	399	required by this section, the board shall assess an administrative
400	400	penalty against the institution in an amount not to exceed 100
401	401	percent of the value of each undisclosed contract, gift, or
402	402	donation. A penalty collected under this subsection shall be
403	403	deposited:
404	404	(1) one-half to the credit of the permanent university
405	405	fund; and
406	406	(2) one-half to the credit of the higher education
407	407	fund.
408	408	SECTION 6. Sections 11.1561 and 51.985, Education Code, as
409	409	added by this Act, apply only to a contract entered into on or after
410	410	the effective date of this Act. A contract entered into before that
411	411	date is governed by the law in effect on the date the contract was
412	412	entered into, and the former law is continued in effect for that
413	413	purpose.
414	414	SECTION 7. This Act takes effect September 1, 2025.