SB 2821

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:
(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
(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
(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
(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
(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
(A)  a foreign government or agency of a foreign
(B)  a legal entity created solely under the laws
of a foreign nation or having its principal place of business in a
(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
(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:
(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
(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
(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
(1)  the date the district entered into the contract or
(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
(7)  the name and mailing address of the person making
(8)  the date of termination of the contract, gift, or
(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
(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,
(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
(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
(b)  A home-rule school district is subject to:
(1)  a provision of this title establishing a criminal
(2)  a provision of this title relating to limitations
(3)  a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
(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,
(D)  student admissions under Section 25.001;
(E)  school attendance under Sections 25.085,
(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
(J)  bilingual education under Subchapter B,
(K)  prekindergarten programs under Subchapter E,
(L)  safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
(M)  computation and distribution of state aid
(N)  extracurricular activities under Section
(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
(R)  options for local revenue levels in excess of
(S)  a bond or other obligation or tax rate under
(T)  purchasing under Chapter 44; [and]
(U)  parental options to retain a student under
(V)  contracting and the acceptance of money from
foreign sources and the reporting of those acts under Sections
SECTION 3.  Section 12.056(b), Education Code, is amended to
(b)  A campus or program for which a charter is granted under
(1)  a provision of this title establishing a criminal
(2)  a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
(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,
(C)  high school graduation under Section 28.025;
(D)  special education programs under Subchapter
(E)  bilingual education under Subchapter B,
(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
(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,
(K)  the duty to discharge or refuse to hire
certain employees or applicants for employment under Section
(L)  parental options to retain a student under
(M)  contracting and the acceptance of money from
foreign sources and the reporting of those acts under Sections
SECTION 4.  Section 12.104(b), Education Code, is amended to
(b)  An open-enrollment charter school is subject to:
(1)  a provision of this title establishing a criminal
(2)  the provisions in Chapter 554, Government Code;
(3)  a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
(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,
(C)  reading instruments and accelerated reading
instruction programs under Section 28.006;
(D)  accelerated instruction under Section
(E)  high school graduation requirements under
(F)  special education programs under Subchapter
(G)  bilingual education under Subchapter B,
(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
(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
(N)  the requirement under Section 21.006 to
report an educator's misconduct;
(O)  intensive programs of instruction under
(P)  the right of a school employee to report a
crime, as provided by Section 37.148;
(Q)  bullying prevention policies and procedures
(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
(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
(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
(Z)  contracting and the acceptance of money from
foreign sources and the reporting of those acts under Sections
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
(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
(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
(C)  directly controlled by the government of a
(c)  An institution of higher education or affiliate
organization that violates this section is liable for a civil
(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
(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
(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
(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
(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
(C)  directly controlled by the government of a
(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
(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
(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
(7)  the name and mailing address of the person making
(8)  the date of termination of the contract, gift, or
(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
(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
(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
SECTION 7.  This Act takes effect September 1, 2025.