S.B. No. 1067 is a legislative bill aimed at prohibiting public institutions of higher education, as well as their employees and spouses, from soliciting or accepting gifts, grants, donations, or investments from certain foreign entities deemed a risk to U.S. national security. The bill introduces a new section, 51.984, to the Education Code, which defines "designated country" as those identified by the U.S. director of national intelligence in recent Annual Threat Assessments or designated by the governor after consultation with the Department of Public Safety. The bill specifies that institutions and their employees cannot accept contributions from governmental entities, political parties, or companies headquartered in these designated countries.

Additionally, the bill mandates that institutions of higher education include a prohibition against such conduct in employment contracts and requires the return of any funds received in violation of this section during the preceding state fiscal biennium. The Texas Higher Education Coordinating Board is authorized to adopt necessary rules for implementation. The provisions of this bill will apply to contracts entered into or renewed on or after its effective date of September 1, 2025, while contracts made prior to this date will be governed by the existing law.

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