HB4865 - Relating to identification of and sanctions against certain foreign actors.

      By: Hefner H.B. No. 4865       A BILL TO BE ENTITLED   AN ACT   relating to identification of and sanctions against certain foreign   actors.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 7, Government Code, is amended by adding   Chapter 795 to read as follows:   CHAPTER 795. TRACKING AND SANCTIONING CORRUPT FOREIGN ACTORS           Sec.   795.001.     ANNUAL REPORT. (a) Not later than September   1 of each year, the secretary of state shall prepare a report that   identifies each foreign actor the secretary determines to have   knowingly engaged in actions that undermine the security and   sovereignty of this state, or in significant corruption or   obstruction of investigations into acts of corruption in the   foreign actor's home country, including:                 (1)  corruption related to government contracts;                 (2)  bribery and extortion;                 (3)     the transfer or facilitation of the transfer of   proceeds of corruption, including through money laundering;                 (4)     acts of violence, harassment, or intimidation   directed at governmental and nongovernmental corruption   investigators;                 (5)     engaging in or aiding and abetting drug   trafficking, human trafficking, or corruption across the   Texas-Mexico border; and                 (6)     facilitating the illegal entry of migrants into   this state from the United Mexican States.           (b)     The secretary of state may obtain information necessary   to prepare a report required by Subsection (a) from:                 (1)     the Office of Foreign Assets Control within the   United States Department of the Treasury;                 (2)  the office of the attorney general;                 (3)  the Department of Public Safety;                 (4)  the comptroller; or                 (5)     any other state or federal agency having   information the secretary believes necessary to prepare the report.           (c)     The secretary of state may notify an individual of the   secretary's intent to identify the individual in the annual report   and the possible ramifications of that identification.           (d)     The secretary of state shall adopt rules necessary to   administer this section, including rules establishing a procedure   by which an individual identified in an annual report may seek   expungement of the individual's name from the report.           (e)     The secretary of state shall publish the annual report   required by Subsection (a) on the secretary of state's public   Internet website.           Sec.   795.002.     IMPOSITION OF SANCTIONS. With respect to   each foreign actor identified in a report required by Section   795.001(a):                 (1)     the comptroller shall prohibit the identified   individual and any business or other entity affiliated with the   individual from entering into contracts with any state agency or   political subdivision of this state;                 (2)     the secretary of state shall deny the application   for registration or seek revocation of the registration of any   foreign entity affiliated with the identified individual seeking to   transact business in this state and impose an appropriate civil   penalty as provided by Chapter 9, Business Organizations Code; and                 (3)     the governing board of an institution of higher   education, as defined by Section 61.003, Education Code, shall deny   admission to the foreign actor as provided by Section 51.811,   Education Code, or expel the foreign actor as provided by Section   51.9092, Education Code.          SECTION 2.  Section 9.151(a), Business Organizations Code,   is amended to read as follows:          (a)  A court may revoke the registration of a foreign filing   entity if, as a result of an action brought under Section 9.153, the   court finds that one or more of the following problems exist:                (1)  the entity did not comply with a condition   precedent to the issuance of the entity's registration or an   amendment to the registration;                (2)  the entity's registration or any amendment to the   entity's registration was fraudulently filed;                (3)  a misrepresentation of a material matter was made   in an application, report, affidavit, or other document the entity   submitted under this code;                (4)  the entity has continued to transact business   beyond the scope of the purpose or purposes expressed in the   entity's registration; [ or ]                (5)  public interest requires revocation because:                      (A)  the entity has been convicted of a felony or a   high managerial agent of the entity has been convicted of a felony   committed in the conduct of the entity's affairs;                      (B)  the entity or the high managerial agent has   engaged in a persistent course of felonious conduct; and                      (C)  revocation is necessary to prevent future   felonious conduct of the same character ; or                 (6)     a high managerial agent of the entity is a foreign   actor identified in the secretary of state's annual report of   corrupt foreign actors published under Chapter 795, Government   Code .          SECTION 3.  Subchapter U, Chapter 51, Education Code, is   amended by adding Section 51.811 to read as follows:           Sec.   51.811.     PROHIBITION ON ADMISSION OF CERTAIN   PROSPECTIVE STUDENTS CONNECTED WITH CORRUPT FOREIGN ACTIVITIES.   Notwithstanding any other provision of this subchapter, Subchapter   W, or other law, the governing board of an institution of higher   education, as defined by Section 61.003, may not offer admission to   an applicant for admission to the institution or for admission to   any certificate or degree program, including a graduate,   postgraduate, or professional degree program, offered by the   institution, if the applicant is identified in the secretary of   state's annual report of corrupt foreign actors published under   Chapter 795, Government Code.          SECTION 4.  Subchapter Z, Chapter 51, Education Code, is   amended by adding Section 51.9092 to read as follows:           Sec.   51.9092.     EXPULSION OF CERTAIN STUDENTS CONNECTED WITH   CORRUPT FOREIGN ACTIVITIES. The governing board of an institution   of higher education, as defined by Section 61.003, shall, at least   twice each year, consult the secretary of state's annual report of   corrupt foreign actors published under Chapter 795, Government   Code, and immediately expel any student who is identified in the   report.          SECTION 5.  This Act takes effect September 1, 2025.