Texas 2025 - 89th Regular

Texas House Bill HB4865 Compare Versions

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1	1		By: Hefner H.B. No. 4865
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to identification of and sanctions against certain foreign
7	9		actors.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Title 7, Government Code, is amended by adding
10	12		Chapter 795 to read as follows:
11	13		CHAPTER 795. TRACKING AND SANCTIONING CORRUPT FOREIGN ACTORS
12	14		Sec. 795.001. ANNUAL REPORT. (a) Not later than September
13	15		1 of each year, the secretary of state shall prepare a report that
14	16		identifies each foreign actor the secretary determines to have
15	17		knowingly engaged in actions that undermine the security and
16	18		sovereignty of this state, or in significant corruption or
17	19		obstruction of investigations into acts of corruption in the
18	20		foreign actor's home country, including:
19	21		(1) corruption related to government contracts;
20	22		(2) bribery and extortion;
21	23		(3) the transfer or facilitation of the transfer of
22	24		proceeds of corruption, including through money laundering;
23	25		(4) acts of violence, harassment, or intimidation
24	26		directed at governmental and nongovernmental corruption
25	27		investigators;
26	28		(5) engaging in or aiding and abetting drug
27	29		trafficking, human trafficking, or corruption across the
28	30		Texas-Mexico border; and
29	31		(6) facilitating the illegal entry of migrants into
30	32		this state from the United Mexican States.
31	33		(b) The secretary of state may obtain information necessary
32	34		to prepare a report required by Subsection (a) from:
33	35		(1) the Office of Foreign Assets Control within the
34	36		United States Department of the Treasury;
35	37		(2) the office of the attorney general;
36	38		(3) the Department of Public Safety;
37	39		(4) the comptroller; or
38	40		(5) any other state or federal agency having
39	41		information the secretary believes necessary to prepare the report.
40	42		(c) The secretary of state may notify an individual of the
41	43		secretary's intent to identify the individual in the annual report
42	44		and the possible ramifications of that identification.
43	45		(d) The secretary of state shall adopt rules necessary to
44	46		administer this section, including rules establishing a procedure
45	47		by which an individual identified in an annual report may seek
46	48		expungement of the individual's name from the report.
47	49		(e) The secretary of state shall publish the annual report
48	50		required by Subsection (a) on the secretary of state's public
49	51		Internet website.
50	52		Sec. 795.002. IMPOSITION OF SANCTIONS. With respect to
51	53		each foreign actor identified in a report required by Section
52	54		795.001(a):
53	55		(1) the comptroller shall prohibit the identified
54	56		individual and any business or other entity affiliated with the
55	57		individual from entering into contracts with any state agency or
56	58		political subdivision of this state;
57	59		(2) the secretary of state shall deny the application
58	60		for registration or seek revocation of the registration of any
59	61		foreign entity affiliated with the identified individual seeking to
60	62		transact business in this state and impose an appropriate civil
61	63		penalty as provided by Chapter 9, Business Organizations Code; and
62	64		(3) the governing board of an institution of higher
63	65		education, as defined by Section 61.003, Education Code, shall deny
64	66		admission to the foreign actor as provided by Section 51.811,
65	67		Education Code, or expel the foreign actor as provided by Section
66	68		51.9092, Education Code.
67	69		SECTION 2. Section 9.151(a), Business Organizations Code,
68	70		is amended to read as follows:
69	71		(a) A court may revoke the registration of a foreign filing
70	72		entity if, as a result of an action brought under Section 9.153, the
71	73		court finds that one or more of the following problems exist:
72	74		(1) the entity did not comply with a condition
73	75		precedent to the issuance of the entity's registration or an
74	76		amendment to the registration;
75	77		(2) the entity's registration or any amendment to the
76	78		entity's registration was fraudulently filed;
77	79		(3) a misrepresentation of a material matter was made
78	80		in an application, report, affidavit, or other document the entity
79	81		submitted under this code;
80	82		(4) the entity has continued to transact business
81	83		beyond the scope of the purpose or purposes expressed in the
82	84		entity's registration; [or]
83	85		(5) public interest requires revocation because:
84	86		(A) the entity has been convicted of a felony or a
85	87		high managerial agent of the entity has been convicted of a felony
86	88		committed in the conduct of the entity's affairs;
87	89		(B) the entity or the high managerial agent has
88	90		engaged in a persistent course of felonious conduct; and
89	91		(C) revocation is necessary to prevent future
90	92		felonious conduct of the same character; or
91	93		(6) a high managerial agent of the entity is a foreign
92	94		actor identified in the secretary of state's annual report of
93	95		corrupt foreign actors published under Chapter 795, Government
94	96		Code.
95	97		SECTION 3. Subchapter U, Chapter 51, Education Code, is
96	98		amended by adding Section 51.811 to read as follows:
97	99		Sec. 51.811. PROHIBITION ON ADMISSION OF CERTAIN
98	100		PROSPECTIVE STUDENTS CONNECTED WITH CORRUPT FOREIGN ACTIVITIES.
99	101		Notwithstanding any other provision of this subchapter, Subchapter
100	102		W, or other law, the governing board of an institution of higher
101	103		education, as defined by Section 61.003, may not offer admission to
102	104		an applicant for admission to the institution or for admission to
103	105		any certificate or degree program, including a graduate,
104	106		postgraduate, or professional degree program, offered by the
105	107		institution, if the applicant is identified in the secretary of
106	108		state's annual report of corrupt foreign actors published under
107	109		Chapter 795, Government Code.
108	110		SECTION 4. Subchapter Z, Chapter 51, Education Code, is
109	111		amended by adding Section 51.9092 to read as follows:
110	112		Sec. 51.9092. EXPULSION OF CERTAIN STUDENTS CONNECTED WITH
111	113		CORRUPT FOREIGN ACTIVITIES. The governing board of an institution
112	114		of higher education, as defined by Section 61.003, shall, at least
113	115		twice each year, consult the secretary of state's annual report of
114	116		corrupt foreign actors published under Chapter 795, Government
115	117		Code, and immediately expel any student who is identified in the
116	118		report.
117	119		SECTION 5. This Act takes effect September 1, 2025.