Relating to certain sister-city agreements between governmental entities and foreign countries and communities.
CriticalImmediate action required
Low Cost
Effective:2025-06-20
Enforcing Agencies
State Agencies (Self-Compliance) • Political Subdivisions (Cities, Counties, School Districts)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Law is currently in effect).
Compliance Deadline:October 1, 2025. Entities must formally execute withdrawal from prohibited agreements by this date.
Agency Rulemaking: No state-level rulemaking is required; however, local City Councils and School Boards must pass resolutions during their August or September 2025 legislative cycles to meet the statutory deadline.
Immediate Action Plan
Audit Portfolio: Immediately review all municipal contracts for nexus with China, Iran, North Korea, or Russia.
Freeze Spend: Suspend all financial outlays for future events, travel, or delegations involving these jurisdictions immediately.
Amend Contracts: Submit contract amendment requests to municipal clients to carve out prohibited regions while preserving domestic or friendly-nation scopes of work.
Verify Withdrawal: Secure written confirmation from municipal legal departments regarding their withdrawal timeline to align your internal resource allocation.
Operational Changes Required
Contracts
Master Services Agreements (MSAs) with municipalities involving international relations, trade missions, or cultural exchanges must be amended immediately to exclude prohibited nations. Expect "Impossibility of Performance" termination notices for any active contracts supporting delegations to these regions. You must proactively carve out these deliverables to preserve the remainder of your municipal contracts.
Hiring/Training
Compliance officers must update vendor and partner screening protocols. Cross-reference the Chapter 2275 Foreign Adversary list against all potential municipal partnership opportunities. Staff managing international logistics must be retrained to flag and block bookings involving designated adversaries when public funds are involved.
Reporting & Record-Keeping
Governmental entities must execute and archive formal Board Resolutions authorizing withdrawal. Private partners acting as intermediaries (e.g., Economic Development Corporations) must retain certified copies of these resolutions and proof of delivery of the withdrawal notice to the foreign entity to protect against *ultra vires* (unauthorized acts) liability.
Fees & Costs
There are no statutory filing fees. However, businesses should anticipate unrecoverable costs for cancelled events or travel bookings. Municipalities will likely claim statutory compulsion to avoid paying cancellation penalties or damages for breach of contract.
Strategic Ambiguities & Considerations
The statute defines a "sister-city agreement" partially by recognition from the "Sister Cities International" non-profit. It is legally ambiguous whether independent "Friendship Pacts" or MOUs outside this organization's purview are strictly covered. Guidance: Do not rely on this technicality. Treat *all* bilateral agreements with foreign adversaries as prohibited to avoid reputational risk and contract voidance. Additionally, the list of "Foreign Adversaries" is dynamic; the ban automatically extends to any future additions to the Chapter 2275 list.
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Homeland Security, Public Safety & Veterans' Affairs
Committee Report (Unamended)
BACKGROUND AND PURPOSE
According to the July 2022 memo from the Office of the Director of National Intelligence titled "Protecting Government and Business Leaders at the U.S., State, and Local Level from People's Republic of China (PRC) Influence Operations," the Chinese People's Association for Friendship with Foreign Countries (CPAFFC) is entrusted with cultivating and overseeing "sister" relationships between China and localities in the United States, including localities in Texas. The U.S. State Department describes the CPAFFC, a part of China's united front bureaucratic structure which carries out espionage and political warfare on behalf of the Chinese Communist Party, as a "Beijing-based organization tasked with coopting subnational governments" that "has sought to directly and malignly influence state and local leaders to promote the PRC's global agenda." H.B. 128 seeks to address this issue by prohibiting sister‑city agreements between state governmental entities and foreign adversary countries so that those entities do not unwittingly fall victim to the influence campaigns of the Chinese Communist Party and other foreign adversaries, while still encouraging such agreements with allies of the United States.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 128 amends the Government Code to establish that it is the policy of the state to encourage sister-city agreements between governmental entities and countries that are allies of the United States, including countries designated as major non-NATO allies under federal law and the Republic of China, commonly known as Taiwan, and communities located in those countries. The bill prohibits a governmental entity from establishing, maintaining, or renewing a sister‑city agreement with a country that is a foreign adversary or a community located in such a country.
H.B. 128 requires a governmental entity that is a party to a prohibited sister-city agreement on September 1, 2025, to withdraw from the agreement not later than October 1, 2025. This provision expires January 1, 2027.
H.B. 128 defines the following terms:
·"foreign adversary" as:
oChina, Iran, North Korea, or Russia; or
oa country that is a designated country for purposes of statutory provisions relating to the prohibition on contracts with certain foreign-owned companies in connection with critical infrastructure;
·"governmental entity" as a state agency or a political subdivision of the state;
·"sister-city agreement" as an agreement that:
ois between a governmental entity and a country other than the United States or a community located in a country other than the United States;
ois recognized by a 501(c)(3) tax-exempt organization that serves as the national membership organization for individual sister cities, counties, and states across the United States; and
oreflects a commitment to foster and strengthen opportunities for cultural and educational exchange programs and tourism and to encourage other types of bilateral cooperation between the parties to the agreement; and
·"state agency" by reference as a state board, commission, department, institution, or officer having statewide jurisdiction, including a state college or university.
HB128 mandates the immediate termination of all sister-city agreements between Texas governmental entities and designated foreign adversaries (China, Iran, North Korea, Russia). While directed at municipalities, this law effectively voids related private-sector contracts for cultural exchange, trade consulting, and delegation logistics by October 1, 2025. Implementation Timeline Effective Date: June 20, 2025 (Law is currently in effect).
Q
Who authored HB128?
HB128 was authored by Texas Representative Angelia Orr during the Regular Session.
Q
When was HB128 signed into law?
HB128 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB128?
HB128 is enforced by State Agencies (Self-Compliance) and Political Subdivisions (Cities, Counties, School Districts).
Q
How urgent is compliance with HB128?
The compliance urgency for HB128 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB128?
The cost impact of HB128 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB128 address?
HB128 addresses topics including city government, city government--general, intergovernmental relations, political subdivisions and state agencies, boards & commissions.
Legislative data provided by LegiScanLast updated: November 25, 2025
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