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A BILL TO BE ENTITLED
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AN ACT
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relating to contracts with and the acceptance of money from certain |
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foreign sources by public schools and public institutions of higher |
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education; providing civil penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 11, Education Code, is |
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amended by adding Sections 11.1561 and 11.1562 to read as follows: |
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Sec. 11.1561. PROHIBITION ON CONTRACTS WITH OR ACCEPTANCE |
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OF MONEY FROM FOREIGN ADVERSARIES. (a) In this section: |
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(1) "Contract" includes: |
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(A) an agreement involving the exchange of |
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faculty, staff, or students through any form of collaboration, |
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including a research partnership, joint academic program, faculty |
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or staff exchange, study abroad program, or student exchange |
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program; and |
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(B) an arrangement involving the transfer or |
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sharing of intellectual property or proprietary information. |
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(2) "Foreign adversary" means: |
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(A) the People's Republic of China; |
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(B) the Islamic Republic of Iran; |
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(C) the Democratic People's Republic of Korea; |
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(D) the Russian Federation; or |
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(E) any other country designated as a country of |
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particular concern in the United States secretary of state's most |
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recent designations under the International Religious Freedom Act |
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of 1998 (22 U.S.C. Section 6401 et seq.). |
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(b) Notwithstanding any other law, a school district may not |
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enter into a contract with or solicit or accept a gift or donation |
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made by or on behalf of: |
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(1) a foreign adversary; |
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(2) a company or other entity that is: |
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(A) organized under the laws of a foreign |
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adversary or that has its principal place of business in the |
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territory of or controlled by a foreign adversary; or |
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(B) owned by or the majority of stock or other |
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ownership interest of which is held or controlled by a foreign |
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adversary or individuals who are citizens of a foreign adversary; |
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(3) a company or other entity that is owned by or the |
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majority of stock or other ownership interest of which is held or |
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controlled by a company or other entity, including a governmental |
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entity, described by Subdivision (2); or |
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(4) a charitable organization that is: |
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(A) organized under the laws of a foreign |
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adversary or that has its principal place of business in the |
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territory of or controlled by a foreign adversary; |
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(B) owned or controlled by individuals who are |
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citizens of a foreign adversary; or |
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(C) directly controlled by the government of a |
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foreign adversary. |
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(c) A school district that violates this section is liable |
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for a civil penalty in an amount of: |
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(1) for a first violation, at least 5 percent and not |
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more than 10 percent of the total amount of money appropriated to |
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the district for the most recent state fiscal year; and |
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(2) for a second or subsequent violation, at least 20 |
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percent of the total amount of money appropriated to the district |
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for the most recent state fiscal year. |
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(d) The attorney general may sue to collect the civil |
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penalty under Subsection (c). A suit under this subsection may be |
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filed in a district court in Travis County. |
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(e) A school district may not pay a civil penalty imposed |
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under Subsection (c) using state or federal money. |
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Sec. 11.1562. REPORT ON CONTRACTS ENTERED INTO WITH AND |
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MONEY RECEIVED FROM FOREIGN SOURCES. (a) In this section: |
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(1) "Contract" has the meaning assigned by Section |
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11.1561. |
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(2) "Foreign government" means the government or an |
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agent of any country, nation, or group of nations, or any province |
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or other political subdivision of a country or nation, other than |
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the United States government. |
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(3) "Foreign source" means: |
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(A) a foreign government or agency of a foreign |
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government; |
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(B) a legal entity created solely under the laws |
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of a foreign nation or having its principal place of business in a |
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foreign nation; |
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(C) an individual who is not a citizen or a |
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national of the United States, including a territory or |
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protectorate of the United States; |
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(D) an agent acting on behalf of an individual or |
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entity described by Paragraph (A), (B), or (C); or |
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(E) a political party or member of a political |
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party of a foreign nation. |
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(b) Not later than September 1 of each year, a school |
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district shall submit to the chair of the State Board of Education a |
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report disclosing each contract with a value of at least $50,000 |
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entered into with and each gift or donation with a value of at least |
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$50,000 received by or on behalf of: |
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(1) a foreign source; |
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(2) a company or other entity that is: |
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(A) organized under the laws of a foreign nation |
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or that has its principal place of business in a foreign nation; or |
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(B) owned by or the majority of stock or other |
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ownership interest of which is held or controlled by a foreign |
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nation or individuals who are citizens of a foreign nation; |
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(3) a company or other entity that is owned by or the |
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majority of stock or other ownership interest of which is held or |
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controlled by a company or other entity, including a governmental |
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entity, described by Subdivision (2); or |
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(4) a charitable organization that is: |
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(A) organized under the laws of a foreign nation |
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or that has its principal place of business in a foreign nation; |
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(B) owned or controlled by citizens of a foreign |
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nation; or |
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(C) directly controlled by a foreign nation. |
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(c) If an entity described by Subsection (b) enters into |
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more than one contract with or provides more than one gift or |
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donation to a school district in a calendar year and the total value |
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of the contracts, gifts, or donations is at least $50,000, the |
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district shall report the contracts, gifts, or donations under |
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Subsection (b). |
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(d) For each contract, gift, or donation required to be |
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reported under this section, a school district must include in the |
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report the following information, unless the disclosure of that |
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information is prohibited or the information is confidential under |
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federal or state law: |
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(1) the date the district entered into the contract or |
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received the gift or donation; |
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(2) the value of the contract, gift, or donation; |
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(3) the purpose of the contract, gift, or donation; |
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(4) the persons the contract, gift, or donation is |
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explicitly intended to benefit; |
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(5) any applicable condition, requirement, |
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restriction, or term made a part of the contract, gift, or donation; |
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(6) the foreign source's name and country of residence |
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or domicile; |
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(7) the name and mailing address of the person making |
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the disclosure; and |
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(8) the date of termination of the contract, gift, or |
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donation, if applicable. |
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(e) The chair of the State Board of Education shall provide |
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to the agency a copy of each report submitted under this section. |
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The agency shall post on the agency's Internet website each of those |
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reports. |
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(f) A school district that violates this section is liable |
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for a civil penalty in an amount equal to the sum of the cost to the |
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state of obtaining the district's compliance with this section, |
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including costs associated with investigation and enforcement, |
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and: |
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(1) for a first violation, the greater of $50,000 or |
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the value of the unreported contract, gift, or donation; and |
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(2) for a second or subsequent violation, the greater |
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of $100,000 or twice the value of the unreported contract, gift, or |
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donation. |
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(g) The attorney general may sue to collect the civil |
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penalty under Subsection (f). A suit under this subsection may be |
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filed in a district court in Travis County. |
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(h) A school district may not pay a civil penalty imposed |
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under Subsection (f) using state or federal money. |
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SECTION 2. Section 12.013(b), Education Code, is amended to |
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read as follows: |
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(b) A home-rule school district is subject to: |
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(1) a provision of this title establishing a criminal |
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offense; |
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(2) a provision of this title relating to limitations |
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on liability; and |
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(3) a prohibition, restriction, or requirement, as |
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applicable, imposed by this title or a rule adopted under this |
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title, relating to: |
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(A) the Public Education Information Management |
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System (PEIMS) to the extent necessary to monitor compliance with |
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this subchapter as determined by the commissioner; |
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(B) educator certification under Chapter 21 and |
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educator rights under Sections 21.407, 21.408, and 22.001; |
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(C) criminal history records under Subchapter C, |
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Chapter 22; |
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(D) student admissions under Section 25.001; |
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(E) school attendance under Sections 25.085, |
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25.086, and 25.087; |
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(F) inter-district or inter-county transfers of |
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students under Subchapter B, Chapter 25; |
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(G) elementary class size limits under Section |
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25.112, in the case of any campus in the district that fails to |
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satisfy any standard under Section 39.054(e); |
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(H) high school graduation under Section 28.025; |
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(I) special education programs under Subchapter |
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A, Chapter 29; |
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(J) bilingual education under Subchapter B, |
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Chapter 29; |
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(K) prekindergarten programs under Subchapter E, |
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Chapter 29; |
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(L) safety provisions relating to the |
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transportation of students under Sections 34.002, 34.003, 34.004, |
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and 34.008; |
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(M) computation and distribution of state aid |
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under Chapters 31, 43, and 48; |
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(N) extracurricular activities under Section |
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33.081; |
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(O) health and safety under Chapter 38; |
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(P) the provisions of Subchapter A, Chapter 39; |
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(Q) public school accountability and special |
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investigations under Subchapters A, B, C, D, and J, Chapter 39, and |
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Chapter 39A; |
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(R) options for local revenue levels in excess of |
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entitlement under Chapter 49; |
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(S) a bond or other obligation or tax rate under |
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Chapters 43, 45, and 48; |
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(T) purchasing under Chapter 44; [and] |
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(U) parental options to retain a student under |
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Section 28.02124; and |
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(V) contracting and the acceptance of money from |
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foreign sources and the reporting of those acts under Sections |
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11.1561 and 11.1562. |
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SECTION 3. Section 12.056(b), Education Code, is amended to |
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read as follows: |
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(b) A campus or program for which a charter is granted under |
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this subchapter is subject to: |
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(1) a provision of this title establishing a criminal |
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offense; and |
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(2) a prohibition, restriction, or requirement, as |
|
|
applicable, imposed by this title or a rule adopted under this |
|
|
title, relating to: |
|
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(A) the Public Education Information Management |
|
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System (PEIMS) to the extent necessary to monitor compliance with |
|
|
this subchapter as determined by the commissioner; |
|
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(B) criminal history records under Subchapter C, |
|
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Chapter 22; |
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(C) high school graduation under Section 28.025; |
|
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(D) special education programs under Subchapter |
|
|
A, Chapter 29; |
|
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(E) bilingual education under Subchapter B, |
|
|
Chapter 29; |
|
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(F) prekindergarten programs under Subchapter E, |
|
|
Chapter 29, except class size limits for prekindergarten classes |
|
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imposed under Section 25.112, which do not apply; |
|
|
(G) extracurricular activities under Section |
|
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33.081; |
|
|
(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, |
|
|
and Chapter 39A; |
|
|
(K) the duty to discharge or refuse to hire |
|
|
certain employees or applicants for employment under Section |
|
|
12.1059; [and] |
|
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(L) parental options to retain a student under |
|
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Section 28.02124; and |
|
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(M) contracting and the acceptance of money from |
|
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foreign sources and the reporting of those acts under Sections |
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11.1561 and 11.1562. |
|
|
SECTION 4. Section 12.104(b), Education Code, is amended to |
|
|
read as follows: |
|
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(b) An open-enrollment charter school is subject to: |
|
|
(1) a provision of this title establishing a criminal |
|
|
offense; |
|
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(2) the provisions in Chapter 554, Government Code; |
|
|
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) criminal history records under Subchapter C, |
|
|
Chapter 22; |
|
|
(C) reading instruments and accelerated reading |
|
|
instruction programs under Section 28.006; |
|
|
(D) accelerated instruction under Section |
|
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28.0211; |
|
|
(E) high school graduation requirements under |
|
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Section 28.025; |
|
|
(F) special education programs under Subchapter |
|
|
A, Chapter 29; |
|
|
(G) bilingual education under Subchapter B, |
|
|
Chapter 29; |
|
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(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 |
|
|
33.081; |
|
|
(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 |
|
|
39, and Chapter 39A; |
|
|
(N) the requirement under Section 21.006 to |
|
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report an educator's misconduct; |
|
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(O) intensive programs of instruction under |
|
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Section 28.0213; |
|
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(P) the right of a school employee to report a |
|
|
crime, as provided by Section 37.148; |
|
|
(Q) bullying prevention policies and procedures |
|
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under Section 37.0832; |
|
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(R) the right of a school under Section 37.0052 |
|
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to place a student who has engaged in certain bullying behavior in a |
|
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disciplinary alternative education program or to expel the student; |
|
|
(S) the right under Section 37.0151 to report to |
|
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local law enforcement certain conduct constituting assault or |
|
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harassment; |
|
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(T) a parent's right to information regarding the |
|
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provision of assistance for learning difficulties to the parent's |
|
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child as provided by Sections 26.004(b)(11) and 26.0081(c) and (d); |
|
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(U) establishment of residency under Section |
|
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25.001; |
|
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(V) school safety requirements under Sections |
|
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37.0814, 37.108, 37.1081, 37.1082, 37.1083, 37.1084, 37.1085, |
|
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37.1086, 37.109, 37.113, 37.114, 37.1141, 37.115, 37.207, and |
|
|
37.2071 and Subchapter J, Chapter 37; |
|
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(W) the early childhood literacy and mathematics |
|
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proficiency plans under Section 11.185; |
|
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(X) the college, career, and military readiness |
|
|
plans under Section 11.186; [and] |
|
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(Y) parental options to retain a student under |
|
|
Section 28.02124; and |
|
|
(Z) contracting and the acceptance of money from |
|
|
foreign sources and the reporting of those acts under Sections |
|
|
11.1561 and 11.1562. |
|
|
SECTION 5. Subchapter Z, Chapter 51, Education Code, is |
|
|
amended by adding Sections 51.985 and 51.986 to read as follows: |
|
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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 |
|
|
assigned by Section 61.003. |
|
|
(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 |
|
|
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 citizens of a foreign |
|
|
adversary; or |
|
|
(C) directly controlled by the government of a |
|
|
foreign adversary. |
|
|
(c) An institution of higher education or affiliate |
|
|
organization 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 institution or organization 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 |
|
|
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 |
|
|
Section 11.1562. |
|
|
(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 |
|
|
nation; |
|
|
(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 |
|
|
nation; |
|
|
(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 |
|
|
nation; or |
|
|
(C) directly controlled by the government of 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 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 |
|
|
under Subsection (b). |
|
|
(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 |
|
|
state law: |
|
|
(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 |
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|
or domicile; |
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|
(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. |
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|
(e) The board shall post on the board's Internet website |
|
|
each report submitted under this section. |
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|
(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 |
|
|
enforcement, 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 |
|
|
donation. |
|
|
(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 |
|
|
purpose. |
|
|
SECTION 7. This Act takes effect September 1, 2025. |