HB127 - Relating to measures to protect institutions of higher education from foreign adversaries and to the prosecution of the criminal offense of theft of trade secrets; increasing a criminal penalty.

      H.B. No. 127         AN ACT   relating to measures to protect institutions of higher education   from foreign adversaries and to the prosecution of the criminal   offense of theft of trade secrets; increasing a criminal penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter Z, Chapter 51, Education Code, is   amended by adding Section 51.957 to read as follows:           Sec.   51.957.     HIGHER EDUCATION RESEARCH SECURITY COUNCIL.   (a)   In this section:                 (1)     "Council" means the Higher Education Research   Security Council established under this section.                 (2)     "Governing board,"   "institution of higher   education,"   "private or independent institution of higher   education,"   "public junior college,"   "public technical institute,"     and "university system"   have the meanings assigned by Section   61.003.                 (3)     "Postsecondary educational institution" means an   institution of higher education, other than a public junior college   or public technical institute, or a private or independent tier one   research institution.                 (4)     "Private or independent tier one research   institution" means a private or independent institution of higher   education designated as R1: very high spending and doctorate   production in the 2025 Carnegie Classification of Institutions of   Higher Education published by the Indiana University Center for   Postsecondary Research.           (b)     The Higher Education Research Security Council is   established to promote secure academic research at postsecondary   educational institutions while mitigating the risk of foreign   espionage and interference.           (c)  The council is composed of the following members:                 (1)     one research security officer appointed by the   governing board of each university system;                 (2)     one additional research security officer   appointed by each governing board of a university system that   oversees one or more medical schools, as defined by Section 61.501,   if the governing board elects to make that additional appointment;                 (3)     one research security officer appointed by the   governing board of Texas Southern University; and                 (4)     one research security officer appointed by each   private or independent tier one research institution that elects to   participate in the council.           (d)     A council member appointed under Subsection (c)(2) or   (4) serves as a nonvoting member.           (e)     A council member serves at the will of the person who   appointed the member.           (f)     A vacancy on the council shall be filled in the same   manner as the original appointment.           (g)     The council member appointed under Subsection (c)(1)   for The Texas A&M University System shall serve as the initial   presiding officer of the council.           (h)  The council shall:                 (1)     identify best practices for a postsecondary   educational institution to:                       (A)     conduct research securely while mitigating   the threat of foreign espionage and interference; and                       (B)     vet and approve any gift to a postsecondary   educational institution from an individual who is a citizen of a   foreign adversary, as defined by Section 51B.001;                 (2)     develop a model research security policy that a   postsecondary educational institution may adopt to improve   research security;                 (3)     establish an accreditation process under which the   council may award a postsecondary educational institution an   accreditation for security excellence;                 (4)     promote attendance at the annual academic security   and counter exploitation program seminar offered by The Texas A&M   University System; and                 (5)     develop and offer an annual training program for   postsecondary educational institution research security officers   that includes:                       (A)     background and academic history checks of   researchers; and                       (B)     research security and integrity tools and   software that must be used to prevent the loss of intellectual   capital.           (i)     The Texas Higher Education Coordinating Board shall   provide administrative support to the council at the council's   request.           (j)  The council shall meet at least once each quarter.           (k)     A meeting conducted under Subsection (j) must be in   person or by video conference call, as determined by the presiding   officer.           (l)     Not later than December 1 of each even-numbered year,   the council shall prepare and submit to the governor, the attorney   general's office, and the presiding officer of each legislative   committee with primary jurisdiction over higher education a report   on the status of research security at postsecondary educational   institutions and any associated recommendations.           (m)     Unless otherwise approved by the council for   dissemination to postsecondary educational institutions,   information produced by the council under Subsection (h) is   confidential and is not subject to disclosure under Chapter 552,   Government Code.   A report submitted under Subsection (l) is   confidential and is not subject to disclosure under Chapter 552,   Government Code.           (n)     The council may solicit and accept gifts, grants, and   donations for purposes of this section but may not solicit or accept   a gift, grant, or donation from an entity or country:                 (1)     prohibited from participating in federal   contracts under Section 889, John S. McCain National Defense   Authorization Act for Fiscal Year 2019 (Pub. L. No. 115-232);                 (2)     identified as a Chinese military company by the   United States Department of Defense in accordance with Section   1260H, William M. (Mac) Thornberry National Defense Authorization   Act for Fiscal Year 2021 (Pub. L. No. 116-283);                 (3)     owned by the government of a country designated as   a foreign adversary by the United States secretary of commerce   under 15 C.F.R. Section 791.4; or                 (4)     controlled by a governing or regulatory body   located in a country described by Subdivision (3).          SECTION 2.  Subtitle A, Title 3, Education Code, is amended   by adding Chapter 51B to read as follows:   CHAPTER 51B.   HIGHER EDUCATION RESEARCH AND PROTECTION   SUBCHAPTER A.   GENERAL PROVISIONS           Sec. 51B.001.  DEFINITIONS. In this chapter:                 (1)     "Company" has the meaning assigned by Section   117.001, Business & Commerce Code.                 (2)     "Coordinating board" means the Texas Higher   Education Coordinating Board.                 (3)     "Council" means the Higher Education Research   Security Council established under Section 51.957.                 (4)  "Foreign adversary" means a country:                       (A)     identified by the United States Director of   National Intelligence as a country that poses a risk to the national   security of the United States in at least one of the three most   recent Annual Threat Assessments of the U.S. Intelligence Community   issued pursuant to Section 108B, National Security Act of 1947 (50   U.S.C. Section 3043b); or                       (B)     designated by the governor after   consultation with the director of the Department of Public Safety.                 (5)     "Foreign government" means the government or an   agent of a country, nation, or group of nations, or a province or   other political subdivision of a country or nation, other than the   United States government.                 (6)  "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 adversary and having its principal place of business in   a foreign adversary;                       (C)     a partnership, association, organization, or   other combination of persons, or a subsidiary of such an entity,   organized under the laws of and having its principal place of   business in a foreign adversary;                       (D)  a political party of a foreign adversary; or                       (E)     an agent acting on behalf of an entity   described by Paragraph (A), (B), (C), or (D).                 (7)  "Gift" means any gift of money or property.                 (8)     "Institution of higher education" has the meaning   assigned by Section 61.003, except that the term does not include a   public junior college or public technical institute as defined by   that section.                 (9)     "Political party" means an organization or   combination of individuals whose aim or purpose is, or who are   engaged in an activity devoted to, the establishment, control, or   acquisition of administration or control of a government, or the   furtherance or influencing of the political or public interest,   policies, or relations of a government.           Sec.   51B.002.     RULES. The coordinating board shall adopt   rules necessary to implement this chapter.   SUBCHAPTER B. REQUIREMENTS FOR GIFTS FROM AND CONTRACTS WITH   FOREIGN ADVERSARIES AND CERTAIN COMPANIES           Sec.   51B.051.     GIFT FROM FOREIGN ADVERSARY. (a) Except as   provided by Subsection (c), an institution of higher education or   employee of an institution of higher education may not accept a gift   the institution or employee knows is directly or indirectly offered   from a foreign source of a foreign adversary unless the gift is of   de minimis value, as determined by coordinating board rule in   consultation with the council.           (b)  An institution of higher education shall:       &#x [Text truncated for display. Full text available on Congress.gov.]