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.

HB127 enacts a sweeping national security framework for Texas higher education that imposes immediate downstream liability on private sector vendors, EdTech providers, and research partners. The law creates a new "Foreign Adversary" vetting regime for state contracts and escalates the criminal penalty for theft of trade secrets to a Second-Degree Felony if foreign agents are involved.

HB127 was authored by Texas Representative Terry Wilson during the Regular Session.

HB127 was signed into law by Governor Greg Abbott on June 20, 2025.

HB127 is enforced by Department of Public Safety (Consultation on background checks), Higher Education Research Security Council (New Entity), Office of the Attorney General (Civil enforcement against vendors), State Auditor's Office (Compliance audits) and Texas Higher Education Coordinating Board (THECB).

The regulatory priority for HB127 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

The cost impact of HB127 is estimated as "high". This may vary based on industry and implementation requirements.

HB127 addresses topics including education, education--higher, education--higher--general, education--higher--institutions & programs and intergovernmental relations.

Key dates for HB127: Effective date is 2025-06-20. Rulemaking: Must hold initial meeting; subsequent duties include developing model research security policies, accreditation processes, and vetting standards for foreign gifts. (2026-01-01); Must adopt rules to implement Chapter 51B, determine 'de minimis' value for foreign gifts, and publish a list of prohibited foreign adversary education softwar

HB127 establishes the following penalties: civil penalty of Greater of 2x the contract amount or $250,000 for Vendors submitting false certification regarding status as a 'Foreign Adversary Company' or 'Federally Banned Company' when bidding on higher education contracts.; administrative penalty of Debarment from state contracting for 5 years for Vendors found to have submitted false certifications regarding foreign adversary status.; criminal penalty of Felony of the Second Degree (previously Third Degree) for Theft of trade secrets if the offense is intended to benefit a foreign agent, foreign government, or foreign instrumentality.. Consult with legal counsel for specific applicability to your situation.

HB127 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.