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A BILL TO BE ENTITLED
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AN ACT
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relating to identification of and sanctions against certain foreign |
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nationals. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 405, Government Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. TRACKING AND SANCTIONING CERTAIN FOREIGN NATIONALS |
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Sec. 405.051. ANNUAL REPORT. (a) Not later than September |
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1 of each year, the secretary of state shall post on the secretary |
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of state's Internet website a report that identifies each foreign |
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national the secretary determines to have knowingly engaged in |
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actions that undermine the security and sovereignty of this state, |
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or in significant corruption or obstruction of investigations into |
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acts of corruption in the foreign national's home country, |
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including: |
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(1) corruption related to government contracts; |
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(2) bribery and extortion; |
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(3) the transfer or facilitation of the transfer of |
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proceeds of corruption, including through money laundering; |
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(4) acts of violence, harassment, or intimidation |
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directed at governmental and nongovernmental corruption |
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investigators; |
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(5) engaging in or aiding and abetting criminal |
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activity, including human trafficking, across the Texas-Mexico |
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border; and |
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(6) facilitating the illegal entry of migrants into |
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this state from the United Mexican States. |
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(b) The secretary of state may notify a person of the |
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secretary's intent to identify the person in the annual report and |
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the possible ramifications. |
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(c) The secretary of state shall adopt rules necessary to |
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administer this section, including rules establishing: |
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(1) standards for making a determination under |
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Subsection (a); and |
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(2) a procedure by which a person identified in an |
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annual report may seek expungement of the person's name from the |
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report. |
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Sec. 405.052. IMPOSITION OF SANCTIONS. The secretary of |
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state shall impose one or more of the following sanctions with |
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respect to each foreign national identified in a report required by |
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Section 405.051(a): |
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(1) notifying the comptroller of the identified person |
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and any business or other entity affiliated with the person and |
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requesting that the comptroller bar the person and any business or |
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other entity affiliated with the person from participation in state |
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contracts under Section 2155.077; |
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(2) revoking or seeking revocation of the registration |
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by court action of any foreign entity affiliated with the |
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identified person seeking to transact business in this state and |
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imposing an appropriate civil penalty as provided by Chapter 9, |
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Business Organizations Code; and |
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(3) notifying the governing board of an institution of |
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higher education, as defined by Section 61.003, Education Code, of |
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any identified person known to be enrolled at the institution and |
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requesting that the institution's governing board immediately |
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expel the person. |
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SECTION 2. Section 9.101(b), Business Organizations Code, |
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is amended to read as follows: |
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(b) The secretary of state may revoke a foreign filing |
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entity's registration if the secretary of state finds that: |
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(1) the entity has failed to, and, before the 91st day |
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after the date notice was mailed, has not corrected the entity's |
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failure to: |
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(A) file a report within the period required by |
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law or pay a fee or penalty prescribed by law when due and payable; |
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(B) maintain a registered agent or registered |
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office in this state as required by law; or |
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(C) amend its registration when required by law; |
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[or] |
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(2) the entity has failed to, and, before the 16th day |
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after the date notice was mailed, has not corrected the entity's |
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failure to pay a fee required in connection with the application for |
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registration, or payment of the fee was dishonored when presented |
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by the state for payment; or |
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(3) a high managerial agent of the entity is a foreign |
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national identified in the secretary of state's annual report of |
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corrupt actors published under Subchapter D, Chapter 405, |
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Government Code. |
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SECTION 3. Section 9.151(a), Business Organizations Code, |
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is amended to read as follows: |
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(a) A court may revoke the registration of a foreign filing |
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entity if, as a result of an action brought under Section 9.153, the |
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court finds that one or more of the following problems exist: |
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(1) the entity did not comply with a condition |
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precedent to the issuance of the entity's registration or an |
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amendment to the registration; |
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(2) the entity's registration or any amendment to the |
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entity's registration was fraudulently filed; |
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(3) a misrepresentation of a material matter was made |
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in an application, report, affidavit, or other document the entity |
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submitted under this code; |
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(4) the entity has continued to transact business |
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beyond the scope of the purpose or purposes expressed in the |
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entity's registration; [or] |
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(5) public interest requires revocation because: |
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(A) the entity has been convicted of a felony or a |
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high managerial agent of the entity has been convicted of a felony |
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committed in the conduct of the entity's affairs; |
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(B) the entity or the high managerial agent has |
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engaged in a persistent course of felonious conduct; and |
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(C) revocation is necessary to prevent future |
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felonious conduct of the same character; or |
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(6) a high managerial agent of the entity is a foreign |
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national identified in the secretary of state's annual report of |
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corrupt actors published under Subchapter D, Chapter 405, |
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Government Code. |
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SECTION 4. Subchapter U, Chapter 51, Education Code, is |
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amended by adding Section 51.811 to read as follows: |
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Sec. 51.811. PROHIBITION ON ADMISSION OF CERTAIN FOREIGN |
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NATIONALS. Notwithstanding any other provision of this subchapter, |
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Subchapter W, or other law, the governing board of an institution of |
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higher education, as defined by Section 61.003, may not offer |
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admission to an applicant for admission to the institution or for |
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admission to any certificate or degree program, including a |
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graduate, postgraduate, or professional degree program, offered by |
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the institution, if the applicant is identified in the secretary of |
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state's annual report published under Subchapter D, Chapter 405, |
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Government Code. |
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SECTION 5. Subchapter Z, Chapter 51, Education Code, is |
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amended by adding Section 51.9092 to read as follows: |
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Sec. 51.9092. EXPULSION OF CERTAIN FOREIGN NATIONALS. The |
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governing board of an institution of higher education, as defined |
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by Section 61.003, shall immediately expel any student who is |
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identified in the secretary of state's annual report published |
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under Subchapter D, Chapter 405, Government Code. |
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SECTION 6. Not later than September 1, 2024, the secretary |
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of state shall post on the secretary of state's Internet website the |
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initial report required under Section 405.051, Government Code, as |
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added by this Act. |
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SECTION 7. This Act takes effect September 1, 2023. |