SB 1741

relating to measures to prevent espionage and intellectual property
theft at public institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 51, Education Code, is amended by adding
Subchapter J to read as follows:
SUBCHAPTER J.  ESPIONAGE AND INTELLECTUAL PROPERTY THEFT PREVENTION
Sec. 51.501.  DEFINITIONS.  In this subchapter:
(1)  "Coordinating board" means the Texas Higher
(2)  "Institution of higher education" has the meaning
Sec. 51.502.  DISCLOSURE OF FOREIGN FUNDING.  Not later than
September 1 of each year, each institution of higher education
shall submit to the coordinating board a report on the funding
received by the institution from a foreign entity during the
Sec. 51.503.  PROHIBITION ON ACCEPTING GIFTS, GRANTS, OR
DONATIONS FROM CERTAIN FOREIGN ENTITIES.  An institution of higher
education may not accept a gift, grant, or donation from the
government of China or a company or other entity directly or
indirectly controlled by the government of China.
Sec. 51.504.  TRAINING ON ESPIONAGE AND INTELLECTUAL
PROPERTY THEFT PREVENTION.  (a)  Each institution of higher
education shall require each researcher at the institution to
complete training on the prevention of espionage and intellectual
(b)  The training must include instruction on:
(1)  an understanding of the current national security
risks related to espionage and intellectual property theft;
(2)  the methods used in espionage and intellectual
(3)  the signs of espionage and intellectual property
(4)  measures to protect sensitive information and
(5)  procedures for reporting suspected incidents of
espionage or intellectual property theft.
(c)  The training must be provided in conjunction with any
other training required for researchers at the institution of
higher education provided by the institution's information
Sec. 51.505.  REPORTING SYSTEM.  Each institution of higher
education shall establish a reporting system for students, faculty,
and staff to report to the institution suspicious activity that may
be related to espionage or intellectual property theft.
Sec. 51.506.  RULES.  The coordinating board shall adopt
rules necessary to implement this subchapter.
SECTION 2.  Not later than September 1, 2024, each public
institution of higher education shall:
(1)  submit the initial report required under Section
51.502, Education Code, as added by this Act; and
(2)  ensure that each researcher at the institution has
completed the training required by Section 51.504, Education Code,
SECTION 3.  This Act takes effect September 1, 2023.