Texas 2025 89th Regular

Texas Senate Bill SB1067 Analysis / Analysis

Filed 04/02/2025

                    BILL ANALYSIS        Senate Research Center   C.S.S.B. 1067     89R21273 CXP-D   By: Middleton         Education K-16         3/21/2025         Committee Report (Substituted)          AUTHOR'S / SPONSOR'S STATEMENT OF INTENT    Concerns have been raised about the influence of foreign entities on public institutions of higher education in Texas. Some foreign governments, political parties, and corporations have been identified as potential national security risks. Without clear prohibitions, Texas institutions may inadvertently accept funding from sources that could compromise academic integrity, research security, or national interests.  (Original Author's/Sponsor's Statement of Intent) Here are the changes that are expected in the substitute:             The original bill relied on the Director of National Intelligence's annual threat assessments. The updated version adopts the U.S. Department of Commerce's foreign adversaries list (15 C.F.R. Section 791.4)a move that aligns the bill with Governor Abbott's Executive Order GA-48, creating consistency across state policy.            The original list included China, Iran, North Korea, and Russia; the committee substitute adds Venezuela and Cuba.            The substitute introduces a provision to update the foreign adversaries list annually, ensuring institutions can anticipate changes and stay compliant. This mirrors the DNI's annual report schedule.            Added language clarifying that institutions shall incorporate the funding prohibition from designated countries as a condition of employment in university contracts also applying to the employee's spouse    C.S.S.B. 1067 amends current law relating to prohibiting public institutions of higher education and employees of public institutions of higher education and their spouses from soliciting or accepting gifts, grants, donations, or investments from certain foreign entities.   RULEMAKING AUTHORITY   Rulemaking authority is expressly granted to the Texas Higher Education Coordinating Board in SECTION 1 (Section 51.984, Education Code) of this bill.   SECTION BY SECTION ANALYSIS   SECTION 1. Amends Subchapter Z, Chapter 51, Education Code, by adding Section 51.984, as follows:   Sec. 51.984. PROHIBITION ON SOLICITING OR ACCEPTING GIFTS, GRANTS, DONATIONS, OR INVESTMENTS FROM CERTAIN FOREIGN ENTITIES. (a) Defines "designated country" and "institution of higher education."   (b) Prohibits an institution of higher education or an employee or spouse of an employee of an institution of higher education in the employee's or spouse's official or private capacity, notwithstanding any other law, from soliciting or accepting a gift, grant, donation, or investment from a governmental entity of a designated country; a political party of a designated country, including private money from any party member; or a company that is headquartered in a designated country and in which a governmental entity of a designated country holds an ownership interest.   (c) Requires an institution of higher education to include in any employee contract entered into between the institution and an employee a prohibition against the conduct described by Subsection (b) by the employee or spouse of the employee.    (d) Requires an institution of higher education or an employee or spouse of an employee of an institution of higher education to return any money or other thing of value received in violation of this section during the preceding state fiscal biennium to the entity or entities that provided the money or other thing of value to the institution, employee, or spouse of the employee.   (e) Authorizes the Texas Higher Education Coordinating Board to adopt rules as necessary to implement this section.   SECTION 2. Makes application of Section 51.984(c), Education Code, as added by this Act, prospective.    SECTION 3. Effective date: September 1, 2025. 

BILL ANALYSIS

 

 

Senate Research Center C.S.S.B. 1067
89R21273 CXP-D By: Middleton
 Education K-16
 3/21/2025
 Committee Report (Substituted)

Senate Research Center

C.S.S.B. 1067

89R21273 CXP-D

By: Middleton

 

Education K-16

 

3/21/2025

 

Committee Report (Substituted)

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

   Concerns have been raised about the influence of foreign entities on public institutions of higher education in Texas. Some foreign governments, political parties, and corporations have been identified as potential national security risks. Without clear prohibitions, Texas institutions may inadvertently accept funding from sources that could compromise academic integrity, research security, or national interests.  (Original Author's/Sponsor's Statement of Intent) Here are the changes that are expected in the substitute:             The original bill relied on the Director of National Intelligence's annual threat assessments. The updated version adopts the U.S. Department of Commerce's foreign adversaries list (15 C.F.R. Section 791.4)a move that aligns the bill with Governor Abbott's Executive Order GA-48, creating consistency across state policy.            The original list included China, Iran, North Korea, and Russia; the committee substitute adds Venezuela and Cuba.            The substitute introduces a provision to update the foreign adversaries list annually, ensuring institutions can anticipate changes and stay compliant. This mirrors the DNI's annual report schedule.            Added language clarifying that institutions shall incorporate the funding prohibition from designated countries as a condition of employment in university contracts also applying to the employee's spouse 

 

Concerns have been raised about the influence of foreign entities on public institutions of higher education in Texas. Some foreign governments, political parties, and corporations have been identified as potential national security risks. Without clear prohibitions, Texas institutions may inadvertently accept funding from sources that could compromise academic integrity, research security, or national interests. 

(Original Author's/Sponsor's Statement of Intent)

Here are the changes that are expected in the substitute: 

 

         The original bill relied on the Director of National Intelligence's annual threat assessments. The updated version adopts the U.S. Department of Commerce's foreign adversaries list (15 C.F.R. Section 791.4)a move that aligns the bill with Governor Abbott's Executive Order GA-48, creating consistency across state policy.

 

         The original list included China, Iran, North Korea, and Russia; the committee substitute adds Venezuela and Cuba.

 

         The substitute introduces a provision to update the foreign adversaries list annually, ensuring institutions can anticipate changes and stay compliant. This mirrors the DNI's annual report schedule.

 

         Added language clarifying that institutions shall incorporate the funding prohibition from designated countries as a condition of employment in university contracts also applying to the employee's spouse

 

C.S.S.B. 1067 amends current law relating to prohibiting public institutions of higher education and employees of public institutions of higher education and their spouses from soliciting or accepting gifts, grants, donations, or investments from certain foreign entities.

 

RULEMAKING AUTHORITY

 

Rulemaking authority is expressly granted to the Texas Higher Education Coordinating Board in SECTION 1 (Section 51.984, Education Code) of this bill.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Subchapter Z, Chapter 51, Education Code, by adding Section 51.984, as follows:

 

Sec. 51.984. PROHIBITION ON SOLICITING OR ACCEPTING GIFTS, GRANTS, DONATIONS, OR INVESTMENTS FROM CERTAIN FOREIGN ENTITIES. (a) Defines "designated country" and "institution of higher education."

 

(b) Prohibits an institution of higher education or an employee or spouse of an employee of an institution of higher education in the employee's or spouse's official or private capacity, notwithstanding any other law, from soliciting or accepting a gift, grant, donation, or investment from a governmental entity of a designated country; a political party of a designated country, including private money from any party member; or a company that is headquartered in a designated country and in which a governmental entity of a designated country holds an ownership interest.

 

(c) Requires an institution of higher education to include in any employee contract entered into between the institution and an employee a prohibition against the conduct described by Subsection (b) by the employee or spouse of the employee. 

 

(d) Requires an institution of higher education or an employee or spouse of an employee of an institution of higher education to return any money or other thing of value received in violation of this section during the preceding state fiscal biennium to the entity or entities that provided the money or other thing of value to the institution, employee, or spouse of the employee.

 

(e) Authorizes the Texas Higher Education Coordinating Board to adopt rules as necessary to implement this section.

 

SECTION 2. Makes application of Section 51.984(c), Education Code, as added by this Act, prospective. 

 

SECTION 3. Effective date: September 1, 2025.