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TexasHB 12789th Legislature Regular SessionHouseWALLET

Relating to measures to protect institutions of higher education from foreign adversaries and to the prosecution of the criminal offense of theft of trade secrets; increasing a criminal penalty.

Sponsored By: Cole Hefner, Donna Howard, Bryan Hughes (Republican), Stan Lambert, Matt Shaheen, Terry M. Wilson

Signed by Governor

Civil Remedies & LiabilitiesCrimes--MiscellaneousEducation--Higher--GeneralEducation--Higher--Health InstitutionsEducation--Higher--Institutions & ProgramsEthicsIntergovernmental RelationsState Agencies, Boards & Commissions--Newly ProposedAUDITS & AUDITORSGIFTS & DONATIONSINTERNATIONAL RELATIONSRECORDS MANAGEMENTRESEARCH & DEVELOPMENTTRAVELTEXAS A&M UNIVERSITYTEXAS A&M UNIVERSITY SYSTEMTEXAS SOUTHERN UNIVERSITYAUDITOR, STATEHIGHER EDUCATION COORDINATING BOARD, TEXASHIGHER EDUCATION RESEARCH SECURITY COUNCIL

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 0 benefits, 8 costs, 1 mixed.

New screening rules for college researchers

Texas colleges must screen covered people before offering research or research-support jobs, or access to research and sensitive data. Screening includes background checks. It covers foreign citizens who are not U.S. permanent residents and people with specified foreign-adversary affiliations. It also covers at least one year of employment or training in a foreign adversary, excluding U.S. government work. Covered foreign citizens must provide passport copies, their latest nonimmigrant visa applications, and council-required information. Colleges may waive screening for people with active federal security clearances. Missing substantial required activity disclosures bars employment unless a department head or designee provides the required written certification. Screening and applicant-document rules start in the academic year after the council adopts standards.

Student groups lose some foreign funding

Starting in the 2025–26 academic year, Texas college student groups cannot accept gifts or contracted financial support from foreign adversaries or their agents. Member dues and fees remain allowed. Groups must certify compliance each year. When a college finds a violation, it must end the group's recognition or registration and stop providing benefits.

College funding depends on security compliance

Beginning with the state fiscal year starting September 1, 2026, college boards must certify the prior year's security compliance. Colleges cannot spend that fiscal year's state appropriations until boards submit certification to state leaders, the coordinating board, and council. Boards or their designees must also testify at public legislative hearings between regular sessions. The state auditor must audit each college at least once every four years. Colleges have 180 days to fix audit findings that state money was spent in violation of the chapter. Unfixed violations block formula funding increases, institutional enhancements, and exceptional items in the biennium immediately after the finding's biennium.

College workers face foreign travel checks

Texas colleges must use a risk-based program to approve and monitor work-related foreign travel. Research security offices must preapprove travel flagged by that program. Employees must acknowledge guidance and follow college travel limits and federal law. Colleges must keep travel purposes, reimbursements, foreign payments, honoraria, and related records for at least three years, or longer if required. Annual governing-board reports must identify covered faculty, researchers, and research staff traveling to foreign adversaries, including locations and institutions visited.

Higher penalties for foreign-linked secret theft

Beginning September 1, 2025, trade-secret theft is generally a third-degree felony. It becomes a second-degree felony when prosecutors prove intent to benefit a foreign agent, government, or government-linked entity at trial. Covered entities include those substantially owned, controlled, sponsored, managed, or dominated by a foreign government.

Colleges face tighter foreign gift rules

Texas colleges generally cannot accept gifts from foreign adversaries, except gifts of very small value. Gifts from individual citizens of foreign adversaries require colleges to follow council best practices. Covered gifts worth more than $25,000 require chief executive approval and disclosure to the council on its schedule. Those gift details are generally exempt from Texas public-records disclosure. Colleges must also send federally required foreign gift and contract reports to the Texas Higher Education Coordinating Board when due. Those reports are public unless another law, including trade-secret law, protects them; the board reports annually by December 1. Gift bans start in the academic year after the council adopts standards.

New security oversight for Texas colleges

Effective September 1, 2025, the law creates a statewide research security council and requires college or system research security offices. The council develops security standards, training, accreditation, and guidance; the coordinating board provides support and adopts implementation rules. Council members must be designated by October 1, 2025, with the first meeting by January 1, 2026. The council must meet at least quarterly. Its materials are confidential unless approved for release, and confidential status reports are due December 1 of each even-numbered year. It cannot accept funding from entities or countries on specified federal prohibited lists. Colleges must investigate complaints from compliance officers or sworn complaints supported by substantive information and a reasonable belief of a violation. With reasonable suspicion, colleges may request relevant records from anyone. Recipients must respond within 10 business days unless both sides agree to a later date.

Colleges cannot buy banned education software

The research security council and coordinating board must review education software tied to foreign adversaries and publish a banned list. The review covers foreign-adversary ownership or control and companies based or headquartered in foreign adversaries. Texas colleges cannot start or renew contracts for testing, tutoring, or other education software on that list.

Colleges face limits on foreign partnerships

Texas colleges cannot join foreign-adversary partnerships that limit their freedom to make contracts. The ban also covers partnerships giving adversaries influence over teaching or college values, or promoting agendas harmful to safety or security. These limits protect college independence while restricting partnership choices. Colleges must annually certify compliance or noncompliance with council best practices. Certification starts in the academic year after the council adopts standards. By December 1 each year, the council reports which colleges did not certify compliance during the previous 12 months.

Sponsors & Cosponsors

Sponsors

  • Cole Hefner

    House

  • Donna Howard

    House

  • Bryan Hughes

    Republican • Senate

  • Stan Lambert

    House

  • Matt Shaheen

    House

  • Terry M. Wilson

    House

Cosponsors

  • Jeff Barry

    House

  • Keith Bell

    House

  • Paul Bettencourt

    Republican • Senate

  • Greg Bonnen

    House

  • Brad Buckley

    House

  • Benjamin Bumgarner

    House

  • Angie Chen Button

    House

  • Donna Campbell

    Republican • Senate

  • Giovanni Capriglione

    House

  • David Cook

    House

  • Pat Curry

    House

  • Mano DeAyala

    House

  • Paul Dyson

    House

  • Stan Gerdes

    House

  • Sam Harless

    House

  • Cody Harris

    House

  • Adam Hinojosa

    Republican • Senate

  • Janis Holt

    House

  • Todd Hunter

    House

  • Carrie Isaac

    House

  • Stan Kitzman

    House

  • Lois Kolkhorst

    Republican • Senate

  • Marc LaHood

    House

  • Brooks Landgraf

    House

  • Terri Leo Wilson

    House

  • Janie Lopez

    House

  • David Lowe

    House

  • John McQueeney

    House

  • Will Metcalf

    House

  • Mayes Middleton

    Republican • Senate

  • Angelia Orr

    House

  • Tan Parker

    Republican • Senate

  • Jared Patterson

    House

  • Angela Paxton

    Republican • Senate

  • Katrina Pierson

    House

  • Carl H. Tepper

    House

  • Ellen Troxclair

    House

  • Denise Villalobos

    House

Roll Call Votes

All Roll Calls

Yes: 379 • No: 39

House vote • 5/30/2025

Record vote

Yes: 130 • No: 4

Senate vote • 5/29/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/29/2025

Record vote

Yes: 0 • No: 0

House vote • 5/15/2025

Record vote

Yes: 131 • No: 8

House vote • 5/14/2025

Record vote

Yes: 99 • No: 27

Senate vote • Unknown

Committee vote: Education K-16

Yes: 9 • No: 0

House vote • Unknown

Committee vote: Homeland Security, Public Safety & Veterans' Affairs

Yes: 10 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House

  2. Signed by the Governor

    6/20/2025House

  3. Sent to the Governor

    6/2/2025House

  4. Signed in the Senate

    6/1/2025Senate

  5. Signed in the House

    6/1/2025House

  6. Reported enrolled

    5/31/2025House

  7. House concurs in Senate amendment(s)-reported

    5/30/2025Senate

  8. Text of Senate Amendment(s)

    5/30/2025House

  9. Statement(s) of vote recorded in Journal

    5/30/2025House

  10. Record vote (RV#4094)

    5/30/2025House

  11. House concurs in Senate amendment(s)

    5/30/2025House

  12. Senate Amendments Analysis distributed

    5/29/2025House

  13. Senate Amendments distributed

    5/29/2025House

  14. Senate passage as amended reported

    5/29/2025House

  15. Record vote

    5/29/2025Senate

  16. Passed

    5/29/2025Senate

  17. Read 3rd time

    5/29/2025Senate

  18. Record vote

    5/29/2025Senate

  19. Three day rule suspended

    5/29/2025Senate

  20. Vote recorded in Journal

    5/29/2025Senate

  21. Passed to 3rd reading as amended

    5/29/2025Senate

  22. Vote recorded in Journal

    5/29/2025Senate

  23. Amended

    5/29/2025Senate

  24. Amendment(s) offered (FA1 Hughes)

    5/29/2025Senate

  25. Read 2nd time

    5/29/2025Senate

Bill Text

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