I 

118TH CONGRESS 

2D SESSION H. R. 8914 

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 

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. 

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’’. 


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1 SEC. 2. PENALTIES WITH RESPECT TO CIVIL RIGHTS VIOLA2 TIONS BY CERTAIN TAX-EXEMPT EDU3 CATIONAL INSTITUTIONS. 

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

5 68 of the Internal Revenue Code of 1986 is amended by 

6 adding at the end the following new section: 

7 ‘‘SEC. 6720D. CIVIL RIGHTS VIOLATIONS BY CERTAIN TAX8 EXEMPT EDUCATIONAL INSTITUTIONS. 

9 ‘‘(a) IN GENERAL.—There is hereby imposed a pen10 alty equal to the applicable penalty amount on a specified 

11 tax-exempt educational institution with respect to each de12 termination of civil rights violation with respect to such 

13 institution. 

14 ‘‘(b) TIMING OF LIABILITY.— 

15 ‘‘(1) IN GENERAL.—A specified tax-exempt edu16 cational institution shall be liable for the penalty im17 posed under subsection (a) with respect to any de18 termination of civil rights violation on the date of 

19 the judgment referred to in subsection (c). 

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

21 event that any determination of civil rights violation 

22 is vacated, overturned, or otherwise reversed, the 

23 Secretary shall refund any penalty paid with respect 

24 to the determination of civil rights violation. The 

25 preceding sentence shall not be interpreted to pre26 vent the application of this section with respect to 


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1 any determination of civil rights violation that is re2 instated or otherwise redetermined following any 

3 such reversal. 

4 ‘‘(c) DETERMINATION OF CIVIL RIGHTS VIOLA5 TION.—For purposes of this section— 

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

7 civil rights violation’ means, with respect to any 

8 specified tax-exempt educational institution, any civil 

9 judgment of a Federal court of competent jurisdic10 tion that such institution violated any provision of 

11 title VI of the Civil Rights Act of 1964. 

12 ‘‘(2) AUTHORITY TO TREAT CERTAIN JUDG13 MENTS AS A SINGLE DETERMINATION OF CIVIL

14 RIGHTS VIOLATION.—If the Secretary determines 

15 that two or more judgments are based on the same 

16 set of facts and circumstances, such judgments shall 

17 be treated as a single determination of civil rights 

18 violation for purposes of this section, section 501(s), 

19 and such provisions of section 6033(o) as the Sec20 retary determines appropriate. 

21 ‘‘(d) APPLICABLE PENALTY AMOUNT.—For purposes 

22 of this section— 

23 ‘‘(1) IN GENERAL.—The term ‘applicable pen24 alty amount’ means, with respect to each determina25 tion of civil rights violation made with respect to any 


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1 specified tax-exempt educational institution, the 

2 greater of— 

3 ‘‘(A) $100,000, or 

4 ‘‘(B) in the case of an institution subject 

5 to the requirements of section 6033(a), 5 per6 cent of the aggregate administrative compensa7 tion paid by such specified tax-exempt edu8 cational institution during the taxable year in 

9 which such violation occurred. 

10 ‘‘(2) ADMINISTRATIVE COMPENSATION.—The 

11 term ‘administrative compensation’ means, with re12 spect to any specified tax-exempt educational institu13 tion, the compensation and other payments de14 scribed in section 6033(b)(7) made by such institu15 tion. 

16 ‘‘(e) SPECIFIED TAX-EXEMPT EDUCATIONAL INSTI17 TUTION.—For purposes of this section, the term ‘specified 

18 tax-exempt educational institution’ means any eligible edu19 cational institution (as defined in section 25A(f)(2)) which 

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

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

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

23 penalty imposed under subsection (a) or refund made 

24 under subsection (b)(2).’’. 


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1 (b) MANDATORY REVIEW OF EXEMPT STATUS UPON

2 REPEATED CIVIL RIGHTS VIOLATIONS.—Section 501 of 

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

4 new subsection: 

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

6 CERTAIN EDUCATIONAL INSTITUTIONS WITH REPEATED

7 CIVIL RIGHTS VIOLATIONS.—Upon any determination of 

8 civil right violation (as defined in section 6720D(c)) with 

9 respect to any specified tax-exempt educational institution 

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

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

12 date of the enactment of this subsection) with respect to 

13 such institution, the Secretary shall conduct a review to 

14 determine if such institution remains an organization de15 scribed in subsection (c) which is entitled to exemption 

16 from tax under subsection (a). Any determination which 

17 is vacated, overturned, or otherwise reversed shall not be 

18 taken into account under the preceding sentence (unless 

19 subsequently reinstated or otherwise redetermined).’’. 

20 (c) REPORTING BY SPECIFIED TAX-EXEMPT EDU21 CATIONAL INSTITUTIONS OF DETERMINATIONS OF CIVIL

22 RIGHTS VIOLATION.—Section 6033 of such Code is 

23 amended by redesignating subsection (o) as subsection (p) 

24 and by inserting after subsection (n) the following new 

25 subsection: 


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1 ‘‘(o) ADDITIONAL PROVISIONS RELATING TO SPECI2 FIED TAX-EXEMPT EDUCATIONAL INSTITUTIONS.— 

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

4 educational institution (as defined in section 

5 6720D(c)) which is subject to the requirements of 

6 subsection (a) shall, on the return required under 

7 subsection (a) for the taxable year, include the fol8 lowing: 

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

10 civil rights violation (as defined in section 

11 6720D(c)) made with respect to such institu12 tion during such taxable year: 

13 ‘‘(i) A description of such determina14 tion (including the date of such determina15 tion) and of the civil rights violation to 

16 which such determination relates. 

17 ‘‘(ii) The number of determinations of 

18 civil rights violation (determined by dis19 regarding determinations not taken into 

20 account under the last sentence of section 

21 501(s)) made with respect to such institu22 tion before such determination (and after 

23 the date of the enactment of this sub24 section). 


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1 ‘‘(iii) Such other information as the 

2 Secretary may require. 

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

4 civil rights violation (as defined in section 

5 6720D(c)) which is vacated, overturned, or oth6 erwise reversed during such taxable year: 

7 ‘‘(i) A description of the order or 

8 judgment which so reversed such deter9 mination, including the date of such order 

10 or judgment. 

11 ‘‘(ii) The information described in 

12 subparagraph (A)(i) with respect to the de13 termination so reversed. 

14 ‘‘(iii) Such other information as the 

15 Secretary may require. 

16 ‘‘(2) APPLICATION TO STATE COLLEGES AND

17 UNIVERSITIES.—Every specified tax-exempt edu18 cational institution (as defined in section 6720D(c)) 

19 which is described in section 511(a)(2)(B) shall, for 

20 any taxable year with respect to which there is a de21 termination of civil rights violation described in sub22 paragraph (A) or (B) of paragraph (1) with respect 

23 to such institution, file an annual return that con24 tains the information described in such subpara25 graphs. The penalties applicable to returns required 


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1 under subsection (a) shall apply to returns required 

2 under this paragraph.’’. 

3 (d) CLERICAL AMENDMENT.—The table of sections 

4 for part I of subchapter B of chapter 68 of such Code 

5 is amended by adding at the end the following new item: 

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

6 (e) EFFECTIVE DATE.—The amendments made by 

7 this subsection shall apply with respect to determinations 

8 of civil rights violation made after the date of the enact9 ment of this Act. 

Æ 


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