IB 

Union Calendar No. 729 

118TH CONGRESS 

2D SESSION H. R. 8914 

[Report No. 118–894] 

To amend the Internal Revenue Code of 1986 to impose penalties with 

respect to civil rights violations by certain tax-exempt educational institutions. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 2, 2024 

Ms. MALLIOTAKIS (for herself, Ms. STEFANIK, Mr. KUSTOFF, Ms. TENNEY, 

Mr. MURPHY, Mr. KELLY of Pennsylvania, Mr. SCHWEIKERT, Mrs. MILLER of West Virginia, Mrs. FISCHBACH, Mr. MOORE of Utah, and Mr. 

FERGUSON) introduced the following bill; which was referred to the Committee on Ways and Means 

DECEMBER 17, 2024 

Additional sponsors: Mr. SMITH of Nebraska, Mrs. HOUCHIN, and Mr. 

D’ESPOSITO

DECEMBER 17, 2024 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on July 2, 2024] 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
2 

•HR 8914 RH

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

penalties with respect to civil rights violations by certain 

tax-exempt educational institutions. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
3 

•HR 8914 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘University Account5 ability Act’’. 

6 SEC. 2. PENALTIES WITH RESPECT TO CIVIL RIGHTS VIOLA7 TIONS BY CERTAIN TAX-EXEMPT EDU8 CATIONAL INSTITUTIONS. 

9 (a) IN GENERAL.—Part I of subchapter B of chapter 

10 68 of the Internal Revenue Code of 1986 is amended by 

11 adding at the end the following new section: 

12 ‘‘SEC. 6720D. CIVIL RIGHTS VIOLATIONS BY CERTAIN TAX13 EXEMPT EDUCATIONAL INSTITUTIONS. 

14 ‘‘(a) IN GENERAL.—There is hereby imposed a penalty 

15 equal to the applicable penalty amount on a specified tax16 exempt educational institution with respect to each deter17 mination of civil rights violation with respect to such insti18 tution. 

19 ‘‘(b) TIMING OF LIABILITY.— 

20 ‘‘(1) IN GENERAL.—A specified tax-exempt edu21 cational institution shall be liable for the penalty im22 posed under subsection (a) with respect to any deter23 mination of civil rights violation on the date of the 

24 judgment referred to in subsection (c). 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
4 

•HR 8914 RH

1 ‘‘(2) REVERSAL OF DETERMINATIONS.—In the 

2 event that any determination of civil rights violation 

3 is vacated, overturned, or otherwise reversed, the Sec4 retary shall refund any penalty paid with respect to 

5 the determination of civil rights violation. The pre6 ceding sentence shall not be interpreted to prevent the 

7 application of this section with respect to any deter8 mination of civil rights violation that is reinstated or 

9 otherwise redetermined following any such reversal. 

10 ‘‘(c) DETERMINATION OF CIVIL RIGHTS VIOLATION.— 

11 For purposes of this section— 

12 ‘‘(1) IN GENERAL.—The term ‘determination of 

13 civil rights violation’ means, with respect to any spec14 ified tax-exempt educational institution, any civil 

15 judgment of a Federal court of competent jurisdiction 

16 that such institution violated any provision of title VI 

17 of the Civil Rights Act of 1964. 

18 ‘‘(2) AUTHORITY TO TREAT CERTAIN JUDGMENTS

19 AS A SINGLE DETERMINATION OF CIVIL RIGHTS VIOLA20 TION.—If the Secretary determines that two or more 

21 judgments are based on the same set of facts and cir22 cumstances, such judgments shall be treated as a sin23 gle determination of civil rights violation for purposes 

24 of this section, section 501(s), and such provisions of 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
5 

•HR 8914 RH

1 section 6033(o) as the Secretary determines appro2 priate. 

3 ‘‘(d) APPLICABLE PENALTY AMOUNT.—For purposes of 

4 this section— 

5 ‘‘(1) IN GENERAL.—The term ‘applicable penalty 

6 amount’ means, with respect to each determination of 

7 civil rights violation made with respect to any speci8 fied tax-exempt educational institution, the greater 

9 of— 

10 ‘‘(A) $100,000, or 

11 ‘‘(B) in the case of an institution subject to 

12 the requirements of section 6033(a), 5 percent of 

13 the aggregate administrative compensation paid 

14 by such specified tax-exempt educational institu15 tion during the taxable year in which such viola16 tion occurred. 

17 ‘‘(2) ADMINISTRATIVE COMPENSATION.—The 

18 term ‘administrative compensation’ means, with re19 spect to any specified tax-exempt educational institu20 tion, the compensation and other payments described 

21 in section 6033(b)(7) made by such institution. 

22 ‘‘(e) SPECIFIED TAX-EXEMPT EDUCATIONAL INSTITU23 TION.—For purposes of this section, the term ‘specified tax24 exempt educational institution’ means any eligible eduVerDate Sep 11 2014 08:31 Dec 18, 2024 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H8914.RH H8914

kjohnson on DSK7ZCZBW3PROD with $$_JOB
6 

•HR 8914 RH

1 cational institution (as defined in section 25A(f)(2)) which 

2 is described in section 501(c) or section 511(a)(2)(B). 

3 ‘‘(f) WAIVER OF LIMITATIONS ON ASSESSMENT AND

4 REFUND.—Sections 6501 and 6511 shall not apply to any 

5 penalty imposed under subsection (a) or refund made under 

6 subsection (b)(2).’’. 

7 (b) MANDATORY REVIEW OF EXEMPT STATUS UPON

8 REPEATED CIVIL RIGHTS VIOLATIONS.—Section 501 of 

9 such Code is amended by adding at the end the following 

10 new subsection: 

11 ‘‘(s) MANDATORY REVIEW OF EXEMPT STATUS OF

12 CERTAIN EDUCATIONAL INSTITUTIONS WITH REPEATED

13 CIVIL RIGHTS VIOLATIONS.—Upon any determination of 

14 civil rights violation (as defined in section 6720D(c)) with 

15 respect to any specified tax-exempt educational institution 

16 (as defined in section 6720D(e)), if such determination is 

17 not one of the first 2 such determinations (made after the 

18 date of the enactment of this subsection) with respect to such 

19 institution, the Secretary shall conduct a review to deter20 mine if such institution remains an organization described 

21 in subsection (c) which is entitled to exemption from tax 

22 under subsection (a). Any determination which is vacated, 

23 overturned, or otherwise reversed shall not be taken into ac24 count under the preceding sentence (unless subsequently re25 instated or otherwise redetermined).’’. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
7 

•HR 8914 RH

1 (c) REPORTING BY SPECIFIED TAX-EXEMPT EDU2 CATIONAL INSTITUTIONS OF DETERMINATIONS OF CIVIL

3 RIGHTS VIOLATION.—Section 6033 of such Code is amend4 ed by redesignating subsection (o) as subsection (p) and by 

5 inserting after subsection (n) the following new subsection: 

6 ‘‘(o) ADDITIONAL PROVISIONS RELATING TO SPECI7 FIED TAX-EXEMPT EDUCATIONAL INSTITUTIONS.— 

8 ‘‘(1) IN GENERAL.—Every specified tax-exempt 

9 educational institution (as defined in section 

10 6720D(c)) which is subject to the requirements of sub11 section (a) shall, on the return required under sub12 section (a) for the taxable year, include the following: 

13 ‘‘(A) With respect to each determination of 

14 civil rights violation (as defined in section 

15 6720D(c)) made with respect to such institution 

16 during such taxable year: 

17 ‘‘(i) A description of such determina18 tion (including the date of such determina19 tion) and of the civil rights violation to 

20 which such determination relates. 

21 ‘‘(ii) The number of determinations of 

22 civil rights violation (determined by dis23 regarding determinations not taken into ac24 count under the last sentence of section 

25 501(s)) made with respect to such instituVerDate Sep 11 2014 08:31 Dec 18, 2024 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H8914.RH H8914

kjohnson on DSK7ZCZBW3PROD with $$_JOB
8 

•HR 8914 RH

1 tion before such determination (and after 

2 the date of the enactment of this subsection). 

3 ‘‘(iii) Such other information as the 

4 Secretary may require. 

5 ‘‘(B) With respect to each determination of 

6 civil rights violation (as defined in section 

7 6720D(c)) which is vacated, overturned, or other8 wise reversed during such taxable year: 

9 ‘‘(i) A description of the order or judg10 ment which so reversed such determination, 

11 including the date of such order or judg12 ment. 

13 ‘‘(ii) The information described in sub14 paragraph (A)(i) with respect to the deter15 mination so reversed. 

16 ‘‘(iii) Such other information as the 

17 Secretary may require. 

18 ‘‘(2) APPLICATION TO STATE COLLEGES AND UNI19 VERSITIES.—Every specified tax-exempt educational 

20 institution (as defined in section 6720D(c)) which is 

21 described in section 511(a)(2)(B) shall, for any tax22 able year with respect to which there is a determina23 tion of civil rights violation described in subpara24 graph (A) or (B) of paragraph (1) with respect to 

25 such institution, file an annual return that contains 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
9 

•HR 8914 RH

1 the information described in such subparagraphs. The 

2 penalties applicable to returns required under sub3 section (a) shall apply to returns required under this 

4 paragraph.’’. 

5 (d) CLERICAL AMENDMENT.—The table of sections for 

6 part I of subchapter B of chapter 68 of such Code is amend7 ed by adding at the end the following new item: 

‘‘Sec. 6720D. Civil rights violations by certain tax-exempt educational institutions.’’. 

8 (e) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply with respect to determinations of civil 

10 rights violation made after the date of the enactment of this 

11 Act. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
Union Calendar No. 729 

118TH CONGRESS 

2D SESSION H. R. 8914 

[Report No. 118–894] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

tions. tions by certain tax-exempt educational instituimpose penalties with respect to civil rights violaDECEMBER 17, 2024 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


kjohnson on DSK7ZCZBW3PROD with $$_JOB