Texas 2025 - 89th Regular

Texas Senate Bill SB2821 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R12736 CXP-D
2	2	By: Bettencourt S.B. No. 2821
3	3
4	4
5	5
6	6
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 civil 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 Russian Federation; or
30	30	(E) any other country designated as a country of
31	31	particular concern in the United States secretary of state's most
32	32	recent designations under the International Religious Freedom Act
33	33	of 1998 (22 U.S.C. Section 6401 et seq.).
34	34	(b) Notwithstanding any other law, a school district may not
35	35	enter into a contract with or solicit or accept a gift or donation
36	36	made by or on behalf of:
37	37	(1) a foreign adversary;
38	38	(2) a company or other entity that is:
39	39	(A) organized under the laws of a foreign
40	40	adversary or that has its principal place of business in the
41	41	territory of or controlled by a foreign adversary; or
42	42	(B) owned by or the majority of stock or other
43	43	ownership interest of which is held or controlled by a foreign
44	44	adversary or individuals who are citizens of a foreign adversary;
45	45	(3) a company or other entity that is owned by or the
46	46	majority of stock or other ownership interest of which is held or
47	47	controlled by a company or other entity, including a governmental
48	48	entity, described by Subdivision (2); or
49	49	(4) a charitable organization that is:
50	50	(A) organized under the laws of a foreign
51	51	adversary or that has its principal place of business in the
52	52	territory of or controlled by a foreign adversary;
53	53	(B) owned or controlled by individuals who are
54	54	citizens of a foreign adversary; or
55	55	(C) directly controlled by the government of a
56	56	foreign adversary.
57	57	(c) A school district that violates this section is liable
58	58	for a civil penalty in an amount of:
59	59	(1) for a first violation, at least 5 percent and not
60	60	more than 10 percent of the total amount of money appropriated to
61	61	the district for the most recent state fiscal year; and
62	62	(2) for a second or subsequent violation, at least 20
63	63	percent of the total amount of money appropriated to the district
64	64	for the most recent state fiscal year.
65	65	(d) The attorney general may sue to collect the civil
66	66	penalty under Subsection (c). A suit under this subsection may be
67	67	filed in a district court in Travis County.
68	68	(e) A school district may not pay a civil penalty imposed
69	69	under Subsection (c) using state or federal money.
70	70	Sec. 11.1562. REPORT ON CONTRACTS ENTERED INTO WITH AND
71	71	MONEY RECEIVED FROM FOREIGN SOURCES. (a) In this section:
72	72	(1) "Contract" has the meaning assigned by Section
73	73	11.1561.
74	74	(2) "Foreign government" means the government or an
75	75	agent of any country, nation, or group of nations, or any province
76	76	or other political subdivision of a country or nation, other than
77	77	the United States government.
78	78	(3) "Foreign source" means:
79	79	(A) a foreign government or agency of a foreign
80	80	government;
81	81	(B) a legal entity created solely under the laws
82	82	of a foreign nation or having its principal place of business in a
83	83	foreign nation;
84	84	(C) an individual who is not a citizen or a
85	85	national of the United States, including a territory or
86	86	protectorate of the United States;
87	87	(D) an agent acting on behalf of an individual or
88	88	entity described by Paragraph (A), (B), or (C); or
89	89	(E) a political party or member of a political
90	90	party of a foreign nation.
91	91	(b) Not later than September 1 of each year, a school
92	92	district shall submit to the chair of the State Board of Education a
93	93	report disclosing each contract with a value of at least $50,000
94	94	entered into with and each gift or donation with a value of at least
95	95	$50,000 received by or on behalf of:
96	96	(1) a foreign source;
97	97	(2) a company or other entity that is:
98	98	(A) organized under the laws of a foreign nation
99	99	or that has its principal place of business in a foreign nation; or
100	100	(B) owned by or the majority of stock or other
101	101	ownership interest of which is held or controlled by a foreign
102	102	nation or individuals who are citizens of a foreign nation;
103	103	(3) a company or other entity that is owned by or the
104	104	majority of stock or other ownership interest of which is held or
105	105	controlled by a company or other entity, including a governmental
106	106	entity, described by Subdivision (2); or
107	107	(4) a charitable organization that is:
108	108	(A) organized under the laws of a foreign nation
109	109	or that has its principal place of business in a foreign nation;
110	110	(B) owned or controlled by citizens of a foreign
111	111	nation; or
112	112	(C) directly controlled by a foreign nation.
113	113	(c) If an entity described by Subsection (b) enters into
114	114	more than one contract with or provides more than one gift or
115	115	donation to a school district in a calendar year and the total value
116	116	of the contracts, gifts, or donations is at least $50,000, the
117	117	district shall report the contracts, gifts, or donations under
118	118	Subsection (b).
119	119	(d) For each contract, gift, or donation required to be
120	120	reported under this section, a school district must include in the
121	121	report the following information, unless the disclosure of that
122	122	information is prohibited or the information is confidential under
123	123	federal or state law:
124	124	(1) the date the district entered into the contract or
125	125	received the gift or donation;
126	126	(2) the value of the contract, gift, or donation;
127	127	(3) the purpose of the contract, gift, or donation;
128	128	(4) the persons the contract, gift, or donation is
129	129	explicitly intended to benefit;
130	130	(5) any applicable condition, requirement,
131	131	restriction, or term made a part of the contract, gift, or donation;
132	132	(6) the foreign source's name and country of residence
133	133	or domicile;
134	134	(7) the name and mailing address of the person making
135	135	the disclosure; and
136	136	(8) the date of termination of the contract, gift, or
137	137	donation, if applicable.
138	138	(e) The chair of the State Board of Education shall provide
139	139	to the agency a copy of each report submitted under this section.
140	140	The agency shall post on the agency's Internet website each of those
141	141	reports.
142	142	(f) A school district that violates this section is liable
143	143	for a civil penalty in an amount equal to the sum of the cost to the
144	144	state of obtaining the district's compliance with this section,
145	145	including costs associated with investigation and enforcement,
146	146	and:
147	147	(1) for a first violation, the greater of $50,000 or
148	148	the value of the unreported contract, gift, or donation; and
149	149	(2) for a second or subsequent violation, the greater
150	150	of $100,000 or twice the value of the unreported contract, gift, or
151	151	donation.
152	152	(g) The attorney general may sue to collect the civil
153	153	penalty under Subsection (f). A suit under this subsection may be
154	154	filed in a district court in Travis County.
155	155	(h) A school district may not pay a civil penalty imposed
156	156	under Subsection (f) using state or federal money.
157	157	SECTION 2. Section 12.013(b), Education Code, is amended to
158	158	read as follows:
159	159	(b) A home-rule school district is subject to:
160	160	(1) a provision of this title establishing a criminal
161	161	offense;
162	162	(2) a provision of this title relating to limitations
163	163	on liability; and
164	164	(3) a prohibition, restriction, or requirement, as
165	165	applicable, imposed by this title or a rule adopted under this
166	166	title, relating to:
167	167	(A) the Public Education Information Management
168	168	System (PEIMS) to the extent necessary to monitor compliance with
169	169	this subchapter as determined by the commissioner;
170	170	(B) educator certification under Chapter 21 and
171	171	educator rights under Sections 21.407, 21.408, and 22.001;
172	172	(C) criminal history records under Subchapter C,
173	173	Chapter 22;
174	174	(D) student admissions under Section 25.001;
175	175	(E) school attendance under Sections 25.085,
176	176	25.086, and 25.087;
177	177	(F) inter-district or inter-county transfers of
178	178	students under Subchapter B, Chapter 25;
179	179	(G) elementary class size limits under Section
180	180	25.112, in the case of any campus in the district that fails to
181	181	satisfy any standard under Section 39.054(e);
182	182	(H) high school graduation under Section 28.025;
183	183	(I) special education programs under Subchapter
184	184	A, Chapter 29;
185	185	(J) bilingual education under Subchapter B,
186	186	Chapter 29;
187	187	(K) prekindergarten programs under Subchapter E,
188	188	Chapter 29;
189	189	(L) safety provisions relating to the
190	190	transportation of students under Sections 34.002, 34.003, 34.004,
191	191	and 34.008;
192	192	(M) computation and distribution of state aid
193	193	under Chapters 31, 43, and 48;
194	194	(N) extracurricular activities under Section
195	195	33.081;
196	196	(O) health and safety under Chapter 38;
197	197	(P) the provisions of Subchapter A, Chapter 39;
198	198	(Q) public school accountability and special
199	199	investigations under Subchapters A, B, C, D, and J, Chapter 39, and
200	200	Chapter 39A;
201	201	(R) options for local revenue levels in excess of
202	202	entitlement under Chapter 49;
203	203	(S) a bond or other obligation or tax rate under
204	204	Chapters 43, 45, and 48;
205	205	(T) purchasing under Chapter 44; [and]
206	206	(U) parental options to retain a student under
207	207	Section 28.02124; and
208	208	(V) contracting and the acceptance of money from
209	209	foreign sources and the reporting of those acts under Sections
210	210	11.1561 and 11.1562.
211	211	SECTION 3. Section 12.056(b), Education Code, is amended to
212	212	read as follows:
213	213	(b) A campus or program for which a charter is granted under
214	214	this subchapter is subject to:
215	215	(1) a provision of this title establishing a criminal
216	216	offense; and
217	217	(2) a prohibition, restriction, or requirement, as
218	218	applicable, imposed by this title or a rule adopted under this
219	219	title, relating to:
220	220	(A) the Public Education Information Management
221	221	System (PEIMS) to the extent necessary to monitor compliance with
222	222	this subchapter as determined by the commissioner;
223	223	(B) criminal history records under Subchapter C,
224	224	Chapter 22;
225	225	(C) high school graduation under Section 28.025;
226	226	(D) special education programs under Subchapter
227	227	A, Chapter 29;
228	228	(E) bilingual education under Subchapter B,
229	229	Chapter 29;
230	230	(F) prekindergarten programs under Subchapter E,
231	231	Chapter 29, except class size limits for prekindergarten classes
232	232	imposed under Section 25.112, which do not apply;
233	233	(G) extracurricular activities under Section
234	234	33.081;
235	235	(H) health and safety under Chapter 38;
236	236	(I) the provisions of Subchapter A, Chapter 39;
237	237	(J) public school accountability and special
238	238	investigations under Subchapters A, B, C, D, F, and J, Chapter 39,
239	239	and Chapter 39A;
240	240	(K) the duty to discharge or refuse to hire
241	241	certain employees or applicants for employment under Section
242	242	12.1059; [and]
243	243	(L) parental options to retain a student under
244	244	Section 28.02124; and
245	245	(M) contracting and the acceptance of money from
246	246	foreign sources and the reporting of those acts under Sections
247	247	11.1561 and 11.1562.
248	248	SECTION 4. Section 12.104(b), Education Code, is amended to
249	249	read as follows:
250	250	(b) An open-enrollment charter school is subject to:
251	251	(1) a provision of this title establishing a criminal
252	252	offense;
253	253	(2) the provisions in Chapter 554, Government Code;
254	254	and
255	255	(3) a prohibition, restriction, or requirement, as
256	256	applicable, imposed by this title or a rule adopted under this
257	257	title, relating to:
258	258	(A) the Public Education Information Management
259	259	System (PEIMS) to the extent necessary to monitor compliance with
260	260	this subchapter as determined by the commissioner;
261	261	(B) criminal history records under Subchapter C,
262	262	Chapter 22;
263	263	(C) reading instruments and accelerated reading
264	264	instruction programs under Section 28.006;
265	265	(D) accelerated instruction under Section
266	266	28.0211;
267	267	(E) high school graduation requirements under
268	268	Section 28.025;
269	269	(F) special education programs under Subchapter
270	270	A, Chapter 29;
271	271	(G) bilingual education under Subchapter B,
272	272	Chapter 29;
273	273	(H) prekindergarten programs under Subchapter E
274	274	or E-1, Chapter 29, except class size limits for prekindergarten
275	275	classes imposed under Section 25.112, which do not apply;
276	276	(I) extracurricular activities under Section
277	277	33.081;
278	278	(J) discipline management practices or behavior
279	279	management techniques under Section 37.0021;
280	280	(K) health and safety under Chapter 38;
281	281	(L) the provisions of Subchapter A, Chapter 39;
282	282	(M) public school accountability and special
283	283	investigations under Subchapters A, B, C, D, F, G, and J, Chapter
284	284	39, and Chapter 39A;
285	285	(N) the requirement under Section 21.006 to
286	286	report an educator's misconduct;
287	287	(O) intensive programs of instruction under
288	288	Section 28.0213;
289	289	(P) the right of a school employee to report a
290	290	crime, as provided by Section 37.148;
291	291	(Q) bullying prevention policies and procedures
292	292	under Section 37.0832;
293	293	(R) the right of a school under Section 37.0052
294	294	to place a student who has engaged in certain bullying behavior in a
295	295	disciplinary alternative education program or to expel the student;
296	296	(S) the right under Section 37.0151 to report to
297	297	local law enforcement certain conduct constituting assault or
298	298	harassment;
299	299	(T) a parent's right to information regarding the
300	300	provision of assistance for learning difficulties to the parent's
301	301	child as provided by Sections 26.004(b)(11) and 26.0081(c) and (d);
302	302	(U) establishment of residency under Section
303	303	25.001;
304	304	(V) school safety requirements under Sections
305	305	37.0814, 37.108, 37.1081, 37.1082, 37.1083, 37.1084, 37.1085,
306	306	37.1086, 37.109, 37.113, 37.114, 37.1141, 37.115, 37.207, and
307	307	37.2071 and Subchapter J, Chapter 37;
308	308	(W) the early childhood literacy and mathematics
309	309	proficiency plans under Section 11.185;
310	310	(X) the college, career, and military readiness
311	311	plans under Section 11.186; [and]
312	312	(Y) parental options to retain a student under
313	313	Section 28.02124; and
314	314	(Z) contracting and the acceptance of money from
315	315	foreign sources and the reporting of those acts under Sections
316	316	11.1561 and 11.1562.
317	317	SECTION 5. Subchapter Z, Chapter 51, Education Code, is
318	318	amended by adding Sections 51.985 and 51.986 to read as follows:
319	319	Sec. 51.985. PROHIBITION ON CONTRACTS WITH OR ACCEPTANCE OF
320	320	MONEY FROM FOREIGN ADVERSARIES. (a) In this section:
321	321	(1) "Affiliate organization" means an entity under the
322	322	control of or established for the benefit of an institution of
323	323	higher education, including a direct-support organization.
324	324	(2) "Contract" and "foreign adversary" have the
325	325	meanings assigned by Section 11.1561.
326	326	(3) "Institution of higher education" has the meaning
327	327	assigned by Section 61.003.
328	328	(b) Notwithstanding any other law, an institution of higher
329	329	education or an affiliate organization may not enter into a
330	330	contract with or solicit or accept a gift or donation made by or on
331	331	behalf of:
332	332	(1) a foreign adversary;
333	333	(2) a company or other entity that is:
334	334	(A) organized under the laws of a foreign
335	335	adversary or that has its principal place of business in the
336	336	territory of or controlled by a foreign adversary; or
337	337	(B) owned by or the majority of stock or other
338	338	ownership interest of which is held or controlled by a foreign
339	339	adversary or individuals who are citizens of a foreign adversary;
340	340	(3) a company or other entity that is owned by or the
341	341	majority of stock or other ownership interest of which is held or
342	342	controlled by a company or other entity, including a governmental
343	343	entity, described by Subdivision (2); or
344	344	(4) a charitable organization that is:
345	345	(A) organized under the laws of a foreign
346	346	adversary or that has its principal place of business in the
347	347	territory of or controlled by a foreign adversary;
348	348	(B) owned or controlled by citizens of a foreign
349	349	adversary; or
350	350	(C) directly controlled by the government of a
351	351	foreign adversary.
352	352	(c) An institution of higher education or affiliate
353	353	organization that violates this section is liable for a civil
354	354	penalty in an amount of:
355	355	(1) for a first violation, at least 5 percent and not
356	356	more than 10 percent of the total amount of money appropriated to
357	357	the institution or organization for the most recent state fiscal
358	358	year; and
359	359	(2) for a second or subsequent violation, at least 20
360	360	percent of the total amount of money appropriated to the
361	361	institution or organization for the most recent state fiscal year.
362	362	(d) The attorney general may sue to collect the civil
363	363	penalty under Subsection (c). A suit under this subsection may be
364	364	filed in a district court in Travis County.
365	365	(e) An institution of higher education or affiliate
366	366	organization may not pay a civil penalty imposed under Subsection
367	367	(c) using state or federal money.
368	368	Sec. 51.986. REPORT ON CONTRACTS ENTERED INTO WITH AND
369	369	MONEY RECEIVED FROM FOREIGN NATIONS. (a) In this section:
370	370	(1) "Affiliate organization" and "contract" have the
371	371	meanings assigned by Section 51.985.
372	372	(2) "Board" and "institution of higher education" have
373	373	the meanings assigned by Section 61.003.
374	374	(3) "Foreign source" has the meaning assigned by
375	375	Section 11.1562.
376	376	(b) Not later than September 1 of each year, an institution
377	377	of higher education and an affiliate organization shall submit to
378	378	the board a report disclosing each contract with a value of at least
379	379	$50,000 entered into with and each gift or donation with a value of
380	380	at least $50,000 made by or on behalf of:
381	381	(1) the government of a foreign nation;
382	382	(2) a representative of the government of a foreign
383	383	nation;
384	384	(3) a company or other entity that is:
385	385	(A) organized under the laws of a foreign nation
386	386	or that has its principal place of business in a foreign nation; or
387	387	(B) owned by or the majority of stock or other
388	388	ownership interest of which is held or controlled by the government
389	389	of a foreign nation or individuals who are citizens of a foreign
390	390	nation;
391	391	(4) a company or other entity that is owned by or the
392	392	majority of stock or other ownership interest of which is held or
393	393	controlled by a company or other entity, including a governmental
394	394	entity, described by Subdivision (3); or
395	395	(5) a charitable organization that is:
396	396	(A) organized under the laws of a foreign nation
397	397	or that has its principal place of business in a foreign nation;
398	398	(B) owned or controlled by citizens of a foreign
399	399	nation; or
400	400	(C) directly controlled by the government of a
401	401	foreign nation.
402	402	(c) If an entity described by Subsection (b) enters into
403	403	more than one contract with or provides more than one gift or
404	404	donation to an institution of higher education or an affiliate
405	405	organization in a calendar year and the total value of the
406	406	contracts, gifts, or donations is at least $50,000, the institution
407	407	or organization shall report the contracts, gifts, or donations
408	408	under Subsection (b).
409	409	(d) For each contract, gift, or donation required to be
410	410	reported under this section, an institution of higher education and
411	411	an affiliate organization must include in the report the following
412	412	information, unless the disclosure of that information is
413	413	prohibited or the information is confidential under federal or
414	414	state law:
415	415	(1) the date the institution or organization entered
416	416	into the contract or received the gift or donation;
417	417	(2) the value of the contract, gift, or donation;
418	418	(3) the purpose of the contract, gift, or donation;
419	419	(4) the persons the contract, gift, or donation is
420	420	explicitly intended to benefit;
421	421	(5) any applicable condition, requirement,
422	422	restriction, or term made a part of the contract, gift, or donation;
423	423	(6) the foreign source's name and country of residence
424	424	or domicile;
425	425	(7) the name and mailing address of the person making
426	426	the disclosure; and
427	427	(8) the date of termination of the contract, gift, or
428	428	donation, if applicable.
429	429	(e) The board shall post on the board's Internet website
430	430	each report submitted under this section.
431	431	(f) An institution of higher education or affiliate
432	432	organization that violates this section is liable for a civil
433	433	penalty in an amount equal to the sum of the cost to the state of
434	434	obtaining the institution's or organization's compliance with this
435	435	section, including costs associated with investigation and
436	436	enforcement, and:
437	437	(1) for a first violation, the greater of $50,000 or
438	438	the value of the unreported contract, gift, or donation; and
439	439	(2) for a second or subsequent violation, the greater
440	440	of $100,000 or twice the value of the unreported contract, gift, or
441	441	donation.
442	442	(g) The attorney general may sue to collect the civil
443	443	penalty under Subsection (f). A suit under this subsection may be
444	444	filed in a district court in Travis County.
445	445	(h) An institution of higher education or affiliate
446	446	organization may not pay a civil penalty imposed under Subsection
447	447	(f) using state or federal money.
448	448	SECTION 6. Sections 11.1561 and 51.985, Education Code, as
449	449	added by this Act, apply only to a contract entered into on or after
450	450	the effective date of this Act. A contract entered into before that
451	451	date is governed by the law in effect on the date the contract was
452	452	entered into, and the former law is continued in effect for that
453	453	purpose.
454	454	SECTION 7. This Act takes effect September 1, 2025.