Bettencourt Bill’s Foreign Money Ban Sweeps In Study Abroad Agreements

The text as introduced · 3,411 words

89R12736 CXP-D

By: Bettencourt
S.B. No. 2821

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 civil 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 Russian Federation; or

(E) 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) A school district that violates this section is liable

for a civil penalty in an amount of:

(1) for a first violation, at least 5 percent and not

more than 10 percent of the total amount of money appropriated to

the district for the most recent state fiscal year; and

(2) for a second or subsequent violation, at least 20

percent of the total amount of money appropriated to the district

for the most recent state fiscal year.

(d) The attorney general may sue to collect the civil

penalty under Subsection (c). A suit under this subsection may be

filed in a district court in Travis County.

(e) A school district may not pay a civil penalty imposed

under Subsection (c) using state or federal money.

Sec. 11.1562. REPORT ON CONTRACTS ENTERED INTO WITH AND

MONEY RECEIVED FROM FOREIGN SOURCES. (a) In this section:

(1) "Contract" has the meaning 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 nation;

(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 with a value of at least $50,000

entered into with and each gift or donation with a value of at least

$50,000 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) If an entity described by Subsection (b) enters into

more than one contract with or provides more than one gift or

donation to a school district in a calendar year and the total value

of the contracts, gifts, or donations is at least $50,000, the

district shall report the contracts, gifts, or donations under

Subsection (b).

(d) 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.

(e) 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.

(f) A school district that violates this section is liable

for a civil penalty in an amount equal to the sum of the cost to the

state of obtaining the district's compliance with this section,

including costs associated with investigation and enforcement,

and:

(1) for a first violation, the greater of $50,000 or

the value of the unreported contract, gift, or donation; and

(2) for a second or subsequent violation, the greater

of $100,000 or twice the value of the unreported contract, gift, or

donation.

(g) The attorney general may sue to collect the civil

penalty under Subsection (f). A suit under this subsection may be

filed in a district court in Travis County.

(h) A school district may not pay a civil penalty imposed

under Subsection (f) using state or federal money.

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) "Contract" and "foreign adversary" have the

meanings assigned by Section 11.1561.

(3) "Institution of higher education" has the meaning

assigned by Section 61.003.

(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) An institution of higher education or affiliate

organization that violates this section is liable for a civil

penalty in an amount of:

(1) for a first violation, at least 5 percent and not

more than 10 percent of the total amount of money appropriated to

the institution or organization for the most recent state fiscal

year; and

(2) for a second or subsequent violation, at least 20

percent of the total amount of money appropriated to the

institution or organization for the most recent state fiscal year.

(d) The attorney general may sue to collect the civil

penalty under Subsection (c). A suit under this subsection may be

filed in a district court in Travis County.

(e) An institution of higher education or affiliate

organization may not pay a civil penalty imposed under Subsection

(c) using state or federal money.

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 with a value of at least

$50,000 entered into with and each gift or donation with a value of

at least $50,000 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) If an entity described by Subsection (b) enters into

more than one contract with or provides more than one gift or

donation to an institution of higher education or an affiliate

organization in a calendar year and the total value of the

contracts, gifts, or donations is at least $50,000, the institution

or organization shall report the contracts, gifts, or donations

under Subsection (b).

(d) 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 or organization 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.

(e) The board shall post on the board's Internet website

each report submitted under this section.

(f) An institution of higher education or affiliate

organization that violates this section is liable for a civil

penalty in an amount equal to the sum of the cost to the state of

obtaining the institution's or organization's compliance with this

section, including costs associated with investigation and

enforcement, and:

(1) for a first violation, the greater of $50,000 or

the value of the unreported contract, gift, or donation; and

(2) for a second or subsequent violation, the greater

of $100,000 or twice the value of the unreported contract, gift, or

donation.

(g) The attorney general may sue to collect the civil

penalty under Subsection (f). A suit under this subsection may be

filed in a district court in Travis County.

(h) An institution of higher education or affiliate

organization may not pay a civil penalty imposed under Subsection

(f) using state or federal money.

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.