89R5628 CXP-D
By: Leo Wilson H.B. No. 4195
A BILL TO BE ENTITLED
AN ACT
relating to contracts with and the acceptance of money from certain
foreign sources by public schools and public institutions of higher
education; providing administrative penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 11, Education Code, is
amended by adding Sections 11.1561 and 11.1562 to read as follows:
Sec. 11.1561. PROHIBITION ON CONTRACTS WITH OR ACCEPTANCE
OF MONEY FROM FOREIGN ADVERSARIES. (a) In this section:
(1) "Contract" includes:
(A) an agreement involving the exchange of
faculty, staff, or students through any form of collaboration,
including a research partnership, joint academic program, faculty
or staff exchange, study abroad program, or student exchange
program; and
(B) an arrangement involving the transfer or
sharing of intellectual property or proprietary information.
(2) "Foreign adversary" means:
(A) the People's Republic of China;
(B) the Islamic Republic of Iran;
(C) the Democratic People's Republic of Korea;
(D) the State of Qatar;
(E) the Russian Federation; or
(F) any other country designated as a country of
particular concern in the United States secretary of state's most
recent designations under the International Religious Freedom Act
of 1998 (22 U.S.C. Section 6401 et seq.).
(b) Notwithstanding any other law, a school district may not
enter into a contract with or solicit or accept a gift or donation
made by or on behalf of:
(1) a foreign adversary;
(2) a company or other entity that is:
(A) organized under the laws of a foreign
adversary or that has its principal place of business in the
territory of or controlled by a foreign adversary; or
(B) owned by or the majority of stock or other
ownership interest of which is held or controlled by a foreign
adversary or individuals who are citizens of a foreign adversary;
(3) a company or other entity that is owned by or the
majority of stock or other ownership interest of which is held or
controlled by a company or other entity, including a governmental
entity, described by Subdivision (2); or
(4) a charitable organization that is:
(A) organized under the laws of a foreign
adversary or that has its principal place of business in the
territory of or controlled by a foreign adversary;
(B) owned or controlled by individuals who are
citizens of a foreign adversary; or
(C) directly controlled by the government of a
foreign adversary.
(c) If a school district violates Subsection (b), in
addition to any other penalties authorized by law, the State Board
of Education shall assess an administrative penalty against the
district in an amount not to exceed 150 percent of the value of the
contract, gift, or donation subject to the violation. A penalty
collected under this subsection shall be deposited to the credit of
the foundation school fund.
Sec. 11.1562. REPORT ON CONTRACTS ENTERED INTO WITH AND
MONEY RECEIVED FROM FOREIGN SOURCES. (a) In this section:
(1) "Contract" and "foreign adversary" have the
meanings assigned by Section 11.1561.
(2) "Foreign government" means the government or an
agent of any country, nation, or group of nations, or any province
or other political subdivision of a country or nation, other than
the United States government.
(3) "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 nation or having its principal place of business in a
foreign adversary;
(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) an agent acting on behalf of an individual or
entity described by Paragraph (A), (B), or (C); or
(E) a political party or member of a political
party of a foreign nation.
(b) Not later than September 1 of each year, a school
district shall submit to the chair of the State Board of Education a
report disclosing each contract entered into with and gift or
donation received by or on behalf of:
(1) a foreign source;
(2) a company or other entity that is:
(A) organized under the laws of a foreign nation
or that has its principal place of business in a foreign nation; or
(B) owned by or the majority of stock or other
ownership interest of which is held or controlled by a foreign
nation or individuals who are citizens of a foreign nation;
(3) a company or other entity that is owned by or the
majority of stock or other ownership interest of which is held or
controlled by a company or other entity, including a governmental
entity, described by Subdivision (2); or
(4) a charitable organization that is:
(A) organized under the laws of a foreign nation
or that has its principal place of business in a foreign nation;
(B) owned or controlled by citizens of a foreign
nation; or
(C) directly controlled by a foreign nation.
(c) For each contract, gift, or donation required to be
reported under this section, a school district 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 district entered into the contract or
received the gift or donation;
(2) the value of the contract, gift, or donation;
(3) the purpose of the contract, gift, or donation;
(4) the persons the contract, gift, or donation is
explicitly intended to benefit;
(5) any applicable condition, requirement,
restriction, or term made a part of the contract, gift, or donation;
(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 of termination of the contract, gift, or
donation, if applicable.
(d) The chair of the State Board of Education shall provide
to the agency a copy of each report submitted under this section.
The agency shall post on the agency's Internet website each of those
reports.
(e) If a school district fails to disclose a contract, gift,
or donation as required by this section, the State Board of
Education shall assess an administrative penalty against the
district in an amount not to exceed 100 percent of the value of each
undisclosed contract, gift, or donation. A penalty collected under
this subsection shall be deposited to the credit of the foundation
school fund.
SECTION 2. Section 12.013(b), Education Code, is amended to
read as follows:
(b) A home-rule school district is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) a provision of this title relating to limitations
on liability; and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) educator certification under Chapter 21 and
educator rights under Sections 21.407, 21.408, and 22.001;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) student admissions under Section 25.001;
(E) school attendance under Sections 25.085,
25.086, and 25.087;
(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
(G) elementary class size limits under Section
25.112, in the case of any campus in the district that fails to
satisfy any standard under Section 39.054(e);
(H) high school graduation under Section 28.025;
(I) special education programs under Subchapter
A, Chapter 29;
(J) bilingual education under Subchapter B,
Chapter 29;
(K) prekindergarten programs under Subchapter E,
Chapter 29;
(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
(M) computation and distribution of state aid
under Chapters 31, 43, and 48;
(N) extracurricular activities under Section
33.081;
(O) health and safety under Chapter 38;
(P) the provisions of Subchapter A, Chapter 39;
(Q) public school accountability and special
investigations under Subchapters A, B, C, D, and J, Chapter 39, and
Chapter 39A;
(R) options for local revenue levels in excess of
entitlement under Chapter 49;
(S) a bond or other obligation or tax rate under
Chapters 43, 45, and 48;
(T) purchasing under Chapter 44; [and]
(U) parental options to retain a student under
Section 28.02124; and
(V) contracting and the acceptance of money from
foreign sources and the reporting of those acts under Sections
11.1561 and 11.1562.
SECTION 3. Section 12.056(b), Education Code, is amended to
read as follows:
(b) A campus or program for which a charter is granted under
this subchapter is subject to:
(1) a provision of this title establishing a criminal
offense; and
(2) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) criminal history records under Subchapter C,
Chapter 22;
(C) high school graduation under Section 28.025;
(D) special education programs under Subchapter
A, Chapter 29;
(E) bilingual education under Subchapter B,
Chapter 29;
(F) prekindergarten programs under Subchapter E,
Chapter 29, except class size limits for prekindergarten classes
imposed under Section 25.112, which do not apply;
(G) extracurricular activities under Section
33.081;
(H) health and safety under Chapter 38;
(I) the provisions of Subchapter A, Chapter 39;
(J) public school accountability and special
investigations under Subchapters A, B, C, D, F, and J, Chapter 39,
and Chapter 39A;
(K) the duty to discharge or refuse to hire
certain employees or applicants for employment under Section
12.1059; [and]
(L) parental options to retain a student under
Section 28.02124; and
(M) contracting and the acceptance of money from
foreign sources and the reporting of those acts under Sections
11.1561 and 11.1562.
SECTION 4. Section 12.104(b), Education Code, is amended to
read as follows:
(b) An open-enrollment charter school is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) the provisions in Chapter 554, Government Code;
and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) criminal history records under Subchapter C,
Chapter 22;
(C) reading instruments and accelerated reading
instruction programs under Section 28.006;
(D) accelerated instruction under Section
28.0211;
(E) high school graduation requirements under
Section 28.025;
(F) special education programs under Subchapter
A, Chapter 29;
(G) bilingual education under Subchapter B,
Chapter 29;
(H) prekindergarten programs under Subchapter E
or E-1, Chapter 29, except class size limits for prekindergarten
classes imposed under Section 25.112, which do not apply;
(I) extracurricular activities under Section
33.081;
(J) discipline management practices or behavior
management techniques under Section 37.0021;
(K) health and safety under Chapter 38;
(L) the provisions of Subchapter A, Chapter 39;
(M) public school accountability and special
investigations under Subchapters A, B, C, D, F, G, and J, Chapter
39, and Chapter 39A;
(N) the requirement under Section 21.006 to
report an educator's misconduct;
(O) intensive programs of instruction under
Section 28.0213;
(P) the right of a school employee to report a
crime, as provided by Section 37.148;
(Q) bullying prevention policies and procedures
under Section 37.0832;
(R) the right of a school under Section 37.0052
to place a student who has engaged in certain bullying behavior in a
disciplinary alternative education program or to expel the student;
(S) the right under Section 37.0151 to report to
local law enforcement certain conduct constituting assault or
harassment;
(T) a parent's right to information regarding the
provision of assistance for learning difficulties to the parent's
child as provided by Sections 26.004(b)(11) and 26.0081(c) and (d);
(U) establishment of residency under Section
25.001;
(V) school safety requirements under Sections
37.0814, 37.108, 37.1081, 37.1082, 37.1083, 37.1084, 37.1085,
37.1086, 37.109, 37.113, 37.114, 37.1141, 37.115, 37.207, and
37.2071 and Subchapter J, Chapter 37;
(W) the early childhood literacy and mathematics
proficiency plans under Section 11.185;
(X) the college, career, and military readiness
plans under Section 11.186; [and]
(Y) parental options to retain a student under
Section 28.02124; and
(Z) contracting and the acceptance of money from
foreign sources and the reporting of those acts under Sections
11.1561 and 11.1562.
SECTION 5. Subchapter Z, Chapter 51, Education Code, is
amended by adding Sections 51.985 and 51.986 to read as follows:
Sec. 51.985. PROHIBITION ON CONTRACTS WITH OR ACCEPTANCE OF
MONEY FROM FOREIGN ADVERSARIES. (a) In this section:
(1) "Affiliate organization" means an entity under the
control of or established for the benefit of an institution of
higher education, including a direct-support organization.
(2) "Board" and "institution of higher education" have
the meanings assigned by Section 61.003.
(3) "Contract" and "foreign adversary" have the
meanings assigned by Section 11.1561.
(b) Notwithstanding any other law, an institution of higher
education or an affiliate organization may not enter into a
contract with or solicit or accept a gift or donation made by or on
behalf of:
(1) a foreign adversary;
(2) a company or other entity that is:
(A) organized under the laws of a foreign
adversary or that has its principal place of business in the
territory of or controlled by a foreign adversary; or
(B) owned by or the majority of stock or other
ownership interest of which is held or controlled by a foreign
adversary or individuals who are citizens of a foreign adversary;
(3) a company or other entity that is owned by or the
majority of stock or other ownership interest of which is held or
controlled by a company or other entity, including a governmental
entity, described by Subdivision (2); or
(4) a charitable organization that is:
(A) organized under the laws of a foreign
adversary or that has its principal place of business in the
territory of or controlled by a foreign adversary;
(B) owned or controlled by citizens of a foreign
adversary; or
(C) directly controlled by the government of a
foreign adversary.
(c) If an institution of higher education violates
Subsection (b), in addition to any other penalties authorized by
law, the board shall assess an administrative penalty against the
institution in an amount not to exceed 150 percent of the value of
the contract, gift, or donation subject to the violation. A penalty
collected under this subsection shall be deposited:
(1) one-half to the credit of the permanent university
fund; and
(2) one-half to the credit of the higher education
fund.
Sec. 51.986. REPORT ON CONTRACTS ENTERED INTO WITH AND
MONEY RECEIVED FROM FOREIGN NATIONS. (a) In this section:
(1) "Affiliate organization" and "contract" have the
meanings assigned by Section 51.985.
(2) "Board" and "institution of higher education" have
the meanings assigned by Section 61.003.
(3) "Foreign source" has the meaning assigned by
Section 11.1562.
(b) Not later than September 1 of each year, an institution
of higher education and an affiliate organization shall submit to
the board a report disclosing each contract entered into with and
gift or donation made by or on behalf of:
(1) the government of a foreign nation;
(2) a representative of the government of a foreign
nation;
(3) a company or other entity that is:
(A) organized under the laws of a foreign nation
or that has its principal place of business in a foreign nation; or
(B) owned by or the majority of stock or other
ownership interest of which is held or controlled by the government
of a foreign nation or individuals who are citizens of a foreign
nation;
(4) a company or other entity that is owned by or the
majority of stock or other ownership interest of which is held or
controlled by a company or other entity, including a governmental
entity, described by Subdivision (3); or
(5) a charitable organization that is:
(A) organized under the laws of a foreign nation
or that has its principal place of business in a foreign nation;
(B) owned or controlled by citizens of a foreign
nation; or
(C) directly controlled by the government of a
foreign nation.
(c) For each contract, gift, or donation required to be
reported under this section, an institution of higher education and
an affiliate organization 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 entered into the contract
or received the gift or donation;
(2) the value of the contract, gift, or donation;
(3) the purpose of the contract, gift, or donation;
(4) the persons the contract, gift, or donation is
explicitly intended to benefit;
(5) any applicable condition, requirement,
restriction, or term made a part of the contract, gift, or donation;
(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 of termination of the contract, gift, or
donation, if applicable.
(d) The board shall post on the board's Internet website
each report submitted under this section.
(e) If an institution of higher education or an affiliate
organization fails to disclose a contract, gift, or donation as
required by this section, the board shall assess an administrative
penalty against the institution in an amount not to exceed 100
percent of the value of each undisclosed contract, gift, or
donation. A penalty collected under this subsection shall be
deposited:
(1) one-half to the credit of the permanent university
fund; and
(2) one-half to the credit of the higher education
fund.
SECTION 6. Sections 11.1561 and 51.985, Education Code, as
added by this Act, apply only to a contract entered into on or after
the effective date of this Act. A contract entered into before that
date is governed by the law in effect on the date the contract was
entered into, and the former law is continued in effect for that
purpose.
SECTION 7. This Act takes effect September 1, 2025.