HB4195 - Relating to contracts with and the acceptance of money from certain foreign sources by public schools and public institutions of higher education; providing administrative penalties.

  89R5628 CXP-D     By: Leo Wilson H.B. No. 4195       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 administrative 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 State of Qatar;                       (E)  the Russian Federation; or                       (F)     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)     If a school district violates Subsection (b), in   addition to any other penalties authorized by law, the State Board   of Education shall assess an administrative penalty against the   district in an amount not to exceed 150 percent of the value of the   contract, gift, or donation subject to the violation. A penalty   collected under this subsection shall be deposited to the credit of   the foundation school fund.           Sec.   11.1562.     REPORT ON CONTRACTS ENTERED INTO WITH AND   MONEY RECEIVED FROM FOREIGN SOURCES. (a) In this section:                 (1)     "Contract" and "foreign adversary" have the   meanings 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 adversary;                       (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 entered into with and gift or   donation 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)     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.           (d)     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.           (e)     If a school district fails to disclose a contract, gift,   or donation as required by this section, the State Board of   Education shall assess an administrative penalty against the   district in an amount not to exceed 100 percent of the value of each   undisclosed contract, gift, or donation. A penalty collected under   this subsection shall be deposited to the credit of the foundation   school fund.          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;      & [Text truncated for display. 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