By: Parker, et al. S.B. No. 1741

(In the Senate - Filed February 27, 2025; March 13, 2025, read first time and referred to Committee on Education K-16; March 26, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 11, Nays 0; March 26, 2025, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1741 By: Creighton

A BILL TO BE ENTITLED

AN ACT

relating to measures to prevent foreign influence, foreign interference, and intellectual property theft at public institutions of higher education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 51, Education Code, is amended by adding Subchapter J to read as follows:

SUBCHAPTER J. FOREIGN INFLUENCE, FOREIGN INTERFERENCE, AND

INTELLECTUAL PROPERTY THEFT PREVENTION

Sec. 51.501. DEFINITIONS. In this subchapter:

(1) "Coordinating board" means the Texas Higher Education Coordinating Board.

(2) "Foreign adversary" means any country designated as a foreign adversary by the United States secretary of commerce under 15 C.F.R. Section 791.4.

(3) "Foreign government" means the government or an agent of a country, nation, or group of nations, or a province or other political subdivision of a country or nation, other than the United States government.

(4) "Gift" means a gift, grant, endowment, award, or donation of money or property of any kind, including a conditional or unconditional pledge of the gift, grant, endowment, award, or donation.

(5) "Institution of higher education" has the meaning assigned by Section 61.003.

Sec. 51.502. DISCLOSURE OF FOREIGN GIFTS AND CONTRACTS. Each institution of higher education that submits reporting on foreign gift and contract disclosures to the United States Department of Education required under Section 117, Higher Education Act of 1965 (20 U.S.C. Section 1001 et seq.), shall submit that reporting to the coordinating board at an interval determined by coordinating board rule.

Sec. 51.503. PROHIBITION ON ACCEPTING GIFTS, GRANTS, OR DONATIONS FROM CERTAIN FOREIGN GOVERNMENTS. An institution of higher education may not accept a gift, grant, or donation from a foreign government of a foreign adversary.

Sec. 51.504. TRAINING ON FOREIGN INFLUENCE, FOREIGN INTERFERENCE, AND INTELLECTUAL PROPERTY THEFT PREVENTION. (a) Each institution of higher education shall require each researcher, faculty member, staff member, or student employee at the institution who has access to sensitive, proprietary, or export-controlled research or information to complete training on the prevention of foreign influence, foreign interference, and intellectual property theft.

(b) The training must include instruction on:

(1) an understanding of the current national security risks related to foreign influence, foreign interference, and intellectual property theft;

(2) the methods used in foreign influence, foreign interference, and intellectual property theft;

(3) the signs of foreign influence, foreign interference, and intellectual property theft;

(4) measures to protect sensitive information and intellectual property; and

(5) procedures for reporting suspected incidents of foreign influence, foreign interference, or intellectual property theft.

(c) To the extent practicable, the training must be provided in conjunction with any other training required for employees at the institution of higher education and be consistent with any other training on information security, export controls, or compliance matters required by the institution.

(d) Each institution of higher education shall maintain a record of each person who completes training required under this section.

(e) An institution of higher education shall prohibit a person who has not completed training required under this section to have unsupervised access to sensitive, proprietary, or export-controlled research or information until the person completes the training.

Sec. 51.505. REPORTING SYSTEM. Each institution of higher education shall establish a reporting system for students, faculty, and staff to report to the institution suspicious activity that may be related to foreign influence, foreign interference, or intellectual property theft.

Sec. 51.506. RULES. The coordinating board shall adopt rules necessary to implement this subchapter.

SECTION 2. Not later than September 1, 2026, each public institution of higher education shall:

(1) submit the reports required under Section 51.502, Education Code, as added by this Act; and

(2) ensure that each applicable person at the institution has completed the training required by Section 51.504, Education Code, as added by this Act.

SECTION 3. This Act takes effect September 1, 2025.

* * * * *