SB2821 - 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.

  89R12736 CXP-D     By: Bettencourt S.B. No. 2821       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 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:                 (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 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   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)     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   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 nation;                       (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 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:                 (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)     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   Subsection (b).           (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   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.           (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   reports.           (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,   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)     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   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 [Text truncated for display. Full text available on LegiScan.]