BILL ANALYSIS Senate Research Center C.S.S.B. 2514 89R24634 CJD-D By: Hughes State Affairs 4/16/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 2514 addresses the issue of foreign adversary political warfare and influence operations within Texas. The Office of the Director of National Intelligence (ODNI) has identified American state and local governments as targets of influence operations conducted by foreign adversaries such as the Chinese Communist Party (CCP). In the 2022 memo "Protecting Government and Business Leaders at the U.S. State and Local Level from People's Republic of China Influence Operations," the ODNI explains that such influence operations seek to collect data, target and cultivate officials, exploit partnerships, create dependencies, and shape policy through the business community. Foreign adversaries conduct these influence operations at the subnational level to exploit the gap in national security focus between the U.S. federal and subnational governments. Thus, adversaries seek to "use the local to surround the central" by aligning U.S. subnational governments with the foreign policy priorities of foreign adversaries like the CCP. Research from 2019 from the Jamestown Foundation found that such subnational influence operations accelerated when the CCP failed to achieve its policy goals at the federal level. S.B. 2514 creates a range of protections to counter foreign adversary influence operations. This bill creates a Hostile Foreign Organizations Unit within the Department of Public Safety to develop a strategy to identify, investigate, and track foreign influence operations. This bill provides for developing and sharing information about hostile foreign organizations that operate within Texas. In addition, this bill creates a training program under the Texas Ethics Commission on foreign influence operations within Texas. This bill prohibits any employee or volunteer of a state agency or political subdivision from accepting gifts and travel from a foreign adversary, and creates reporting requirements for interactions with people representing foreign adversaries. (Original Author's/Sponsor's Statement of Intent) C.S.S.B. 2514 amends current law relating to establishing the hostile foreign adversaries unit at the Department of Public Safety and training, prohibitions, and reporting requirements designed to combat foreign influence and creates a criminal offense. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Public Safety Commission in SECTION 1 (Section 411.558, Government Code) of this bill. Rulemaking authority is expressly granted to the Department of Information Resources in SECTION 5 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 411, Government Code, by adding Subchapter S, as follows: SUBCHAPTER S. HOSTILE FOREIGN ADVERSARIES UNIT Sec. 411.551. DEFINITIONS. Defines "foreign adversary operation" and "unit." Sec. 411.552. HOSTILE FOREIGN ADVERSARIES UNIT. Provides that the hostile foreign adversaries unit (unit) is established in the Department of Public Safety of the State of Texas (DPS) to support DPS's duty to prevent the harassment and coercion of this state's residents from foreign adversary operations, strengthen state agencies against foreign adversary operations, and protect this state's critical infrastructure against threats foreign adversary operations pose. Sec. 411.553. UNIT EMPLOYEES. Authorizes the public safety director (director) to appoint unit employees as necessary to perform unit functions. Sec. 411.554. BIENNIAL REPORT. (a) Requires the unit, not later than December 1 of each even-numbered year, to submit to the governor and the legislature a written report that assesses the threat foreign adversary operations posed to this state, including to this state's residents and governmental units, during the preceding two years. Requires that the report include: (1) an assessment of the incidence of foreign adversary operations conducted in this state, including operations intended to influence political sentiment or public discourse; and (2) strategies that have proven effective to combat the operation described by Subdivision (1). (b) Requires a state agency or a local law enforcement agency, on request by the unit, to provide to the unit information relating to any foreign adversary operation that the agency has researched or investigated or otherwise holds relevant information on. Sec. 411.555. ADDITIONAL DUTIES. (a) Requires the unit to collaborate with local governments and federal agencies to operate the Texas Fusion Center. (b) Requires the unit to refer for prosecution to the appropriate prosecuting attorney cases in which individuals or organizations have engaged in or assisted in foreign adversary operations in this state. Sec. 411.556. SECURE STORAGE OF SENSITIVE INFORMATION. (a) Requires the unit to provide for the secure storage of sensitive information obtained or produced as part of the report developed under Section 411.554. (b) Provides that information determined as sensitive under Subsection (a) is not subject to disclosure under Chapter 552 (Public Information). Sec. 411.557. INFORMATION SHARING. Authorizes the unit, with the approval of the director, to share information determined sensitive under Section 411.556(a) with another federal, state, or local law enforcement agency. Provides that the disclosure of information under this section is not a voluntary disclosure under Section 552.007 (Voluntary Disclosure of Certain Information When Disclosure Not Required). Sec. 511.558. RULES. Authorizes the Public Safety Commission to adopt rules to implement this subchapter. SECTION 2. Amends Subchapter C, Chapter 572, Government Code, by adding Section 572.070, as follows: Sec. 572.070. PROHIBITIONS AND REPORTING REQUIREMENTS RELATED TO FOREIGN INFLUENCE; CRIMINAL OFFENSE. (a) Defines "foreign adversary." (b) Prohibits an employee or volunteer of a state agency or a political subdivision of this state from accepting transportation to or lodging in a country that is a foreign adversary and that is paid for by the foreign adversary because of the employee's or volunteer's position with the state or political subdivision or accepting a gift or item of value from a person representing a foreign adversary for any purpose, including to pay for travel expenses or as reimbursement for the costs of attending a conference or other event in a country that is a foreign adversary or that is hosted on behalf of a foreign adversary or a principal of a foreign adversary. (c) Requires an employee or volunteer of a state agency or a political subdivision of this state to report to the Texas Ethics Commission (TEC), in the form and manner TEC requires, each interaction, communication, or meeting the employee or volunteer has with a person acting on behalf of a foreign adversary not later than the 30th day after the date of the interaction, communication, or meeting. Requires TEC to make available a report under this subsection to the attorney general and DPS on request. (d) Provides that a person commits an offense if the person violates this section. Provides that an offense under this subsection is a state jail felony. SECTION 3. Amends Section 2054.519, Government Code, by adding Subsections (f) and (g), as follows: (f) Requires that a cybersecurity training program, in addition to the requirements for certification under Subsection (b) (relating to requiring that a cybersecurity training program meet certain criteria), include education on certain subjects. (g) Defines "foreign adversary." SECTION 4. Makes application of Section 572.070(c), Government Code, as added by this Act, prospective to March 1, 2025. Requires a person required to report an interaction, communication, or meeting under that section that occurred before the effective date of this Act to make that report not later than the 30th day after the effective date of this Act. SECTION 5. (a) Requires the Department of Information Resources, not later than December 1, 2025, to adopt rules implementing the certification requirements of Section 2054.519(f), Government Code, as added by this Act. (b) Makes application of Section 2054.519(f), Government Code, as added by this Act, prospective to January 1, 2026. SECTION 6. Effective date: September 1, 2025. BILL ANALYSIS Senate Research Center C.S.S.B. 2514 89R24634 CJD-D By: Hughes State Affairs 4/16/2025 Committee Report (Substituted) Senate Research Center C.S.S.B. 2514 89R24634 CJD-D By: Hughes State Affairs 4/16/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 2514 addresses the issue of foreign adversary political warfare and influence operations within Texas. The Office of the Director of National Intelligence (ODNI) has identified American state and local governments as targets of influence operations conducted by foreign adversaries such as the Chinese Communist Party (CCP). In the 2022 memo "Protecting Government and Business Leaders at the U.S. State and Local Level from People's Republic of China Influence Operations," the ODNI explains that such influence operations seek to collect data, target and cultivate officials, exploit partnerships, create dependencies, and shape policy through the business community. Foreign adversaries conduct these influence operations at the subnational level to exploit the gap in national security focus between the U.S. federal and subnational governments. Thus, adversaries seek to "use the local to surround the central" by aligning U.S. subnational governments with the foreign policy priorities of foreign adversaries like the CCP. Research from 2019 from the Jamestown Foundation found that such subnational influence operations accelerated when the CCP failed to achieve its policy goals at the federal level. S.B. 2514 creates a range of protections to counter foreign adversary influence operations. This bill creates a Hostile Foreign Organizations Unit within the Department of Public Safety to develop a strategy to identify, investigate, and track foreign influence operations. This bill provides for developing and sharing information about hostile foreign organizations that operate within Texas. In addition, this bill creates a training program under the Texas Ethics Commission on foreign influence operations within Texas. This bill prohibits any employee or volunteer of a state agency or political subdivision from accepting gifts and travel from a foreign adversary, and creates reporting requirements for interactions with people representing foreign adversaries. (Original Author's/Sponsor's Statement of Intent) C.S.S.B. 2514 amends current law relating to establishing the hostile foreign adversaries unit at the Department of Public Safety and training, prohibitions, and reporting requirements designed to combat foreign influence and creates a criminal offense. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Public Safety Commission in SECTION 1 (Section 411.558, Government Code) of this bill. Rulemaking authority is expressly granted to the Department of Information Resources in SECTION 5 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 411, Government Code, by adding Subchapter S, as follows: SUBCHAPTER S. HOSTILE FOREIGN ADVERSARIES UNIT Sec. 411.551. DEFINITIONS. Defines "foreign adversary operation" and "unit." Sec. 411.552. HOSTILE FOREIGN ADVERSARIES UNIT. Provides that the hostile foreign adversaries unit (unit) is established in the Department of Public Safety of the State of Texas (DPS) to support DPS's duty to prevent the harassment and coercion of this state's residents from foreign adversary operations, strengthen state agencies against foreign adversary operations, and protect this state's critical infrastructure against threats foreign adversary operations pose. Sec. 411.553. UNIT EMPLOYEES. Authorizes the public safety director (director) to appoint unit employees as necessary to perform unit functions. Sec. 411.554. BIENNIAL REPORT. (a) Requires the unit, not later than December 1 of each even-numbered year, to submit to the governor and the legislature a written report that assesses the threat foreign adversary operations posed to this state, including to this state's residents and governmental units, during the preceding two years. Requires that the report include: (1) an assessment of the incidence of foreign adversary operations conducted in this state, including operations intended to influence political sentiment or public discourse; and (2) strategies that have proven effective to combat the operation described by Subdivision (1). (b) Requires a state agency or a local law enforcement agency, on request by the unit, to provide to the unit information relating to any foreign adversary operation that the agency has researched or investigated or otherwise holds relevant information on. Sec. 411.555. ADDITIONAL DUTIES. (a) Requires the unit to collaborate with local governments and federal agencies to operate the Texas Fusion Center. (b) Requires the unit to refer for prosecution to the appropriate prosecuting attorney cases in which individuals or organizations have engaged in or assisted in foreign adversary operations in this state. Sec. 411.556. SECURE STORAGE OF SENSITIVE INFORMATION. (a) Requires the unit to provide for the secure storage of sensitive information obtained or produced as part of the report developed under Section 411.554. (b) Provides that information determined as sensitive under Subsection (a) is not subject to disclosure under Chapter 552 (Public Information). Sec. 411.557. INFORMATION SHARING. Authorizes the unit, with the approval of the director, to share information determined sensitive under Section 411.556(a) with another federal, state, or local law enforcement agency. Provides that the disclosure of information under this section is not a voluntary disclosure under Section 552.007 (Voluntary Disclosure of Certain Information When Disclosure Not Required). Sec. 511.558. RULES. Authorizes the Public Safety Commission to adopt rules to implement this subchapter. SECTION 2. Amends Subchapter C, Chapter 572, Government Code, by adding Section 572.070, as follows: Sec. 572.070. PROHIBITIONS AND REPORTING REQUIREMENTS RELATED TO FOREIGN INFLUENCE; CRIMINAL OFFENSE. (a) Defines "foreign adversary." (b) Prohibits an employee or volunteer of a state agency or a political subdivision of this state from accepting transportation to or lodging in a country that is a foreign adversary and that is paid for by the foreign adversary because of the employee's or volunteer's position with the state or political subdivision or accepting a gift or item of value from a person representing a foreign adversary for any purpose, including to pay for travel expenses or as reimbursement for the costs of attending a conference or other event in a country that is a foreign adversary or that is hosted on behalf of a foreign adversary or a principal of a foreign adversary. (c) Requires an employee or volunteer of a state agency or a political subdivision of this state to report to the Texas Ethics Commission (TEC), in the form and manner TEC requires, each interaction, communication, or meeting the employee or volunteer has with a person acting on behalf of a foreign adversary not later than the 30th day after the date of the interaction, communication, or meeting. Requires TEC to make available a report under this subsection to the attorney general and DPS on request. (d) Provides that a person commits an offense if the person violates this section. Provides that an offense under this subsection is a state jail felony. SECTION 3. Amends Section 2054.519, Government Code, by adding Subsections (f) and (g), as follows: (f) Requires that a cybersecurity training program, in addition to the requirements for certification under Subsection (b) (relating to requiring that a cybersecurity training program meet certain criteria), include education on certain subjects. (g) Defines "foreign adversary." SECTION 4. Makes application of Section 572.070(c), Government Code, as added by this Act, prospective to March 1, 2025. Requires a person required to report an interaction, communication, or meeting under that section that occurred before the effective date of this Act to make that report not later than the 30th day after the effective date of this Act. SECTION 5. (a) Requires the Department of Information Resources, not later than December 1, 2025, to adopt rules implementing the certification requirements of Section 2054.519(f), Government Code, as added by this Act. (b) Makes application of Section 2054.519(f), Government Code, as added by this Act, prospective to January 1, 2026. SECTION 6. Effective date: September 1, 2025.