89R10651 CXP-F By: Cain H.B. No. 2595 A BILL TO BE ENTITLED AN ACT relating to prohibiting certain dealings with foreign adversaries by public schools and public institutions of higher education; providing civil penalties; creating criminal offenses. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 11, Education Code, is amended by adding Section 11.1561 to read as follows: Sec. 11.1561. PROHIBITIONS ON CERTAIN DEALINGS WITH FOREIGN ADVERSARIES; OFFENSE. (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, including the Hong Kong and Macau special administrative regions but not including Taiwan; (B) the Islamic Republic of Iran; (C) the Democratic People's Republic of Korea; (D) the Russian Federation; or (E) an agent, instrumentality, or entity owned, operated, or directed by a country described by Paragraph (A), (B), (C), or (D). (b) Notwithstanding any other law: (1) a school district may not: (A) enter into a contract with a foreign adversary for the adversary to directly or indirectly operate, direct, or organize any academic program, including through the selection of teachers or educational resources; (B) use in any medium an educational material produced or sold by a foreign adversary, unless the material has been reviewed and approved by the agency; or (C) carry an insurance policy that covers a violation of this section; and (2) a school district employee may not provide material support for an academic or nonacademic program operated by a foreign adversary. (c) The agency shall make available to the public on the agency's Internet website each educational material produced or sold by a foreign adversary that the agency has reviewed and approved under Subsection (b)(1)(B). If a technical or legal constraint prevents publication of an educational material on the agency's Internet website, the agency shall make a copy of the material available for inspection at a reasonable time on request. (d) This section, except Subsection (b)(1)(B), does not apply to a noninstructional sports, games, music, or fine arts competition. (e) A school district that violates this section is liable to this state for a civil penalty in the amount of $50,000 for each violation. (f) The attorney general may sue to collect the civil penalty under Subsection (e). A suit under this subsection may be filed in a district court in Travis County. (g) A person commits an offense if the person knowingly violates this section. An offense under this subsection is a felony of the first degree. (h) Sovereign, governmental, or official immunity, as applicable, and any qualified immunity are waived and abolished to the extent of liability created by this section. 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; (G) elementary class size limits under Section 25.112, in the case of any campus in the district that fails to satisfy any standard under Section 39.054(e); (H) high school graduation under Section 28.025; (I) special education programs under Subchapter A, Chapter 29; (J) bilingual education under Subchapter B, Chapter 29; (K) prekindergarten programs under Subchapter E, Chapter 29; (L) safety provisions relating to the transportation of students under Sections 34.002, 34.003, 34.004, and 34.008; (M) computation and distribution of state aid under Chapters 31, 43, and 48; (N) extracurricular activities under Section 33.081; (O) health and safety under Chapter 38; (P) the provisions of Subchapter A, Chapter 39; (Q) public school accountability and special investigations under Subchapters A, B, C, D, and J, Chapter 39, and Chapter 39A; (R) options for local revenue levels in excess of entitlement under Chapter 49; (S) a bond or other obligation or tax rate under Chapters 43, 45, and 48; (T) purchasing under Chapter 44; [and] (U) parental options to retain a student under Section 28.02124; and (V) certain dealings with foreign adversaries under Section 11.1561. SECTION 3. Section 12.056(b), Education Code, is amended to read as follows: (b) A campus or program for which a charter is granted under this subchapter is subject to: (1) a provision of this title establishing a criminal offense; and (2) 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) high school graduation under Section 28.025; (D) special education programs under Subchapter A, Chapter 29; (E) bilingual education under Subchapter B, Chapter 29; (F) prekindergarten programs under Subchapter E, Chapter 29, except class size limits for prekindergarten classes imposed under Section 25.112, which do not apply; (G) extracurricular activities under Section 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] (L) parental options to retain a student under Section 28.02124; and (M) certain dealings with foreign adversaries under Section 11.1561. SECTION 4. Section 12.104(b), Education Code, is amended to read as follows: (b) An open-enrollment charter school is subject to: (1) a provision of this title establishing a criminal offense; (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 28.0211; (E) high school graduation requirements under Section 28.025; (F) special education programs under Subchapter A, Chapter 29; (G) bilingual education under Subchapter B, Chapter 29; (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 report an educator's misconduct; (O) intensive programs of instruction under Section 28.0213; (P) the right of a school employee to report a crime, as provided by Section 37.148; (Q) bullying prevention policies and procedures under Section 37.0832; (R) the right of a school under Section 37.0052 to place a student who has engaged in certain bullying behavior in a disciplinary alternative education program or to expel the student; (S) the right under Section 37.0151 to report to local law enforcement certain conduct constituting assault or harassment; (T) a parent's right to information regarding the provision of assistance for learning difficulties to the parent's child as provided by Sections 26.004(b)(11) and 26.0081(c) and (d); (U) establishment of residency under Section 25.001; (V) school safety requirements under Sections 37.0814, 37.108, 37.1081, 37.1082, 37.1083, 37.1084, 37.1085, 37.1086, 37.109, 37.113, 37.114, 37.1141, 37.115, 37.207, and 37.2071 and Subchapter J, Chapter 37; (W) the early childhood literacy and mathematics proficiency plans under Section 11.185; (X) the college, career, and military readiness plans under Section 11.186; [and] (Y) parental options to retain a student under Section 28.02124; and (Z) certain dealings with foreign adversaries under Section 11.1561. SECTION 5. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.985 to read as follows: Sec. 51.985. PROHIBITIONS ON CERTAIN DEALINGS WITH FOREIGN ADVERSARIES; OFFENSE. (a) In this section: (1) "Board" and "institution of higher education" have the meanings assigned by Section 61.003. (2) "Contract" and "foreign adversary" have the meanings assigned by Section 11.1561. (b) Notwithstanding any other law: (1) an institution of higher education may not: (A) enter into a contract with a foreign adversary for the adversary to directly or indirectly operate, direct, or organize any academic program, including through the selection of faculty members or educational resources; (B) use in any medium an educational material produced or sold by a foreign adversary, unless the material has been reviewed and approved by the board; or (C) carry an insurance policy that covers a violation of this section; and (2) an employee of an institution of higher education may not provide material support for an academic or nonacademic program operated by a foreign adversary. (c) The board shall make available to the public on the board's Internet website each educational material produced or sold by a foreign adversary that the board has reviewed and approved under Subsection (b)(1)(B). If a technical or legal constraint prevents publication of an educational material on the board's Internet website, the board shall make a copy of the material available for inspection at a reasonable time on request. (d) This section, except Subsection (b)(1)(B), does not apply to a noninstructional sports, games, music, or fine arts competition. (e) An institution of higher education that violates this section is liable to this state for a civil penalty in the amount of $50,000 for each violation. (f) The attorney general may sue to collect the civil penalty under Subsection (e). A suit under this subsection may be filed in a district court in Travis County. (g) A person commits an offense if the person knowingly violates this section. An offense under this subsection is a felony of the first degree. (h) Sovereign, governmental, or official immunity, as applicable, and any qualified immunity are waived and abolished to the extent of liability created by this section. 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.