H.B. No. 127 is a legislative bill designed to enhance the protection of Texas public institutions of higher education from foreign adversaries and to strengthen the prosecution of trade secret theft. The bill introduces a new Chapter 51B in the Education Code, which outlines definitions and provisions regarding foreign adversaries and foreign sources. It prohibits institutions from accepting gifts or entering contracts with foreign adversaries without prior approval from the Texas Higher Education Coordinating Board and mandates reporting of such gifts or contracts, including detailed information about their nature and purpose. Non-compliance will result in civil penalties, with fines escalating for repeated violations, and the Coordinating Board is tasked with maintaining a public portal for transparency.

Additionally, the bill establishes a framework for screening foreign researchers, creating a research integrity office within each institution to oversee this process. It requires institutions to implement an international travel approval program for faculty and research staff traveling abroad, ensuring compliance with federal laws and guidelines related to foreign adversaries. The bill also introduces definitions related to foreign agents and governments in the Penal Code, classifying offenses benefiting these entities as second-degree felonies. An operational audit of the new regulations is mandated by March 31, 2026, with an initial report on foreign travel due by December 1, 2026. The provisions will take effect on September 1, 2025, and will apply only to contracts and offenses occurring after that date.

Statutes affected:
Introduced: Penal Code 31.05 (Penal Code 31)