```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5933 Engrossed in House (EH)]

<DOC>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
118th CONGRESS
  1st Session
                                H. R. 5933

_______________________________________________________________________

                                 AN ACT

 
    To amend the Higher Education Act of 1965 to require additional 
information in disclosures of foreign gifts and contracts from foreign 
 sources, restrict contracts with certain foreign entities and foreign 
   countries of concern, require certain staff and faculty to report 
foreign gifts and contracts, and require disclosure of certain foreign 
                     investments within endowments.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defending Education Transparency and 
Ending Rogue Regimes Engaging in Nefarious Transactions Act'' or the 
``DETERRENT Act''.

SEC. 2. DISCLOSURES OF FOREIGN GIFTS.

    (a) In General.--Section 117 of the Higher Education Act of 1965 
(20 U.S.C. 1011f) is amended to read as follows:

``SEC. 117. DISCLOSURES OF FOREIGN GIFTS.

    ``(a) Disclosure Reports.--
            ``(1) Aggregate gifts and contract disclosures.--An 
        institution shall file a disclosure report in accordance with 
        subsection (b)(1) with the Secretary on July 31 of the calendar 
        year immediately following any calendar year in which--
                    ``(A) the institution receives a gift from, or 
                enters into a contract with, a foreign source (other 
                than a foreign country of concern or foreign entity of 
                concern)--
                            ``(i) the value of which is $50,000 or 
                        more, considered alone or in combination with 
                        all other gifts from, or contracts with, that 
                        foreign source within the calendar year; or
                            ``(ii) the value of which is undetermined; 
                        or
                    ``(B) the institution receives a gift from a 
                foreign country of concern or foreign entity of 
                concern, or, upon receiving a waiver under section 117A 
                to enter into a contract with such a country or entity, 
                enters into such contract, without regard to the value 
                of such gift or contract.
            ``(2) Foreign source ownership or control disclosures.--In 
        the case of an institution that is substantially controlled (as 
        described in section 668.174(c)(3) of title 34, Code of Federal 
        Regulations) (or successor regulations)) by a foreign source, 
        the institution shall file a disclosure report in accordance 
        with subsection (b)(2) with the Secretary on July 31 of each 
        year.
            ``(3) Treatment of affiliated entities.--For purposes of 
        this section, any gift to, or contract with, an affiliated 
        entity of an institution shall be considered a gift to or 
        contract with, respectively, such institution.
    ``(b) Contents of Report.--
            ``(1) Gifts and contracts.--Each report to the Secretary 
        required under subsection (a)(1) shall contain the following:
                    ``(A) With respect to a gift received from, or a 
                contract entered into with, any foreign source--
                            ``(i) the terms of such gift or contract, 
                        including--
                                    ``(I) the name of the individual, 
                                department, or benefactor at the 
                                institution receiving the gift or 
                                carrying out the contract;
                                    ``(II) the intended purpose of such 
                                gift or contract, as provided to the 
                                institution by such foreign source, or 
                                if no such purpose is provided by such 
                                foreign source, the intended use of 
                                such gift or contract, as provided by 
                                the institution; and
                                    ``(III) in the case of a restricted 
                                or conditional gift or contract, a 
                                description of the restrictions or 
                                conditions of such gift or contract;
                            ``(ii) with respect to a gift--
                                    ``(I) the total fair market dollar 
                                amount or dollar value of the gift, as 
                                of the date of submission of such 
                                report; and
                                    ``(II) the date on which the 
                                institution received such gift;
                            ``(iii) with respect to a contract--
                                    ``(I) the date on which such 
                                contract commences;
                                    ``(II) as applicable, the date on 
                                which such contract terminates; and
                                    ``(III) an assurance that the 
                                institution will--
                                            ``(aa) maintain an 
                                        unredacted copy of the contract 
                                        until the latest of--

                                                    ``(AA) the date 
                                                that is 5 years after 
                                                the date on which the 
                                                contract commences;

                                                    ``(BB) the date on 
                                                which the contract 
                                                terminates; or

                                                    ``(CC) the last day 
                                                of any period that 
                                                applicable State law 
                                                requires a copy of such 
                                                contract to be 
                                                maintained; and

                                            ``(bb) upon request of the 
                                        Secretary during an 
                                        investigation under subsection 
                                        section 117D(a)(1), produce 
                                        such an unredacted copy of the 
                                        contract; and
                            ``(iv) an assurance that in a case in which 
                        information is required to be disclosed under 
                        this section with respect to a gift or contract 
                        that is not in English, such information is 
                        translated into English in compliance with the 
                        requirements of subsection (c)(1).
                    ``(B) With respect to a gift received from, or a 
                contract entered into with, a foreign source that is a 
                foreign government (other than the government of a 
                foreign country of concern)--
                            ``(i) the name of such foreign government;
                            ``(ii) the department, agency, office, or 
                        division of such foreign government that 
                        approved such gift or contract, as applicable; 
                        and
                            ``(iii) the physical mailing address of 
                        such department, agency, office, or division.
                    ``(C) With respect to a gift received from, or 
                contract entered into with, a foreign source (other 
                than a foreign government subject to the requirements 
                of subparagraph (B))--
                            ``(i) the legal name of the foreign source, 
                        or, if such name is not available, a statement 
                        certified by the compliance officer in 
                        accordance with subsection (f)(2) that the 
                        institution has reasonably attempted to obtain 
                        such name;
                            ``(ii) in the case of a foreign source that 
                        is a natural person, the country of citizenship 
                        of such person, or, if such country is not 
                        known, the principal country of residence of 
                        such person;
                            ``(iii) in the case of a foreign source 
                        that is a legal entity, the country in which 
                        such entity is incorporated, or if such 
                        information is not available, the principal 
                        place of business of such entity;
                            ``(iv) the physical mailing address of such 
                        foreign source, or if such address is not 
                        available, a statement certified by the 
                        compliance officer in accordance with 
                        subsection (f)(2) that the institution has 
                        reasonably attempted to obtain such address; 
                        and
                            ``(v) any affiliation of the foreign source 
                        to an organization that is designated as a 
                        foreign terrorist organization pursuant to 
                        section 219 of the Immigration and Nationality 
                        Act (8 U.S.C. 1189).
                    ``(D) With respect to a contract entered into with 
                a foreign source that is a foreign country of concern 
                or a foreign entity of concern--
                            ``(i) a complete and unredacted text of the 
                        original contract, and if such original 
                        contract is not in English, a translated copy 
                        of the text into English;
                            ``(ii) a copy of the waiver received under 
                        section 117A for such contract; and
                            ``(iii) the statement submitted by the 
                        institution for purposes of receiving such a 
                        waiver under section 117A(b)(1).
            ``(2) Foreign source ownership or control.--Each report to 
        the Secretary required under subsection (a)(2) shall contain--
                    ``(A) the legal name and address of the foreign 
                source that owns or controls the institution;
                    ``(B) the date on which the foreign source assumed 
                ownership or control; and
                    ``(C) any changes in program or structure resulting 
                from the change in ownership or control.
    ``(c)  Translation Requirements.--Any information required to be 
disclosed under this section with respect to a gift or contract that is 
not in English shall be translated, for purposes of such disclosure, by 
a person that is not an affiliated entity or agent of the foreign 
source involved with such gift or contract.
    ``(d) Public Inspection.--
            ``(1) Database requirement.--Beginning not later than 60 
        days before the July 31 immediately following the date of the 
        enactment of the DETERRENT Act, the Secretary shall--
                    ``(A) establish and maintain a searchable database 
                on a website of the Department, under which all reports 
                submitted under this section (including any report 
                submitted under this section before the date of the 
                enactment of the DETERRENT Act)--
                            ``(i) are made publicly available (in 
                        electronic and downloadable format), including 
                        any information provided in such reports (other 
                        than the information prohibited from being 
                        publicly disclosed pursuant to paragraph (2));
                            ``(ii) can be individually identified and 
                        compared; and
                            ``(iii) are searchable and sortable by--
                                    ``(I) the date the institution 
                                filed such report;
                                    ``(II) the date on which the 
                                institution received the gift, or 
                                entered into the contract, which is the 
                                subject of the report;
                                    ``(III) the attributable country of 
                                such gift or contract; and
                                    ``(IV) the name of the foreign 
                                source (other than a foreign source 
                                that is a natural person);
                    ``(B) not later than 30 days after receipt of a 
                disclosure report under this section, include such 
                report in such database;
                    ``(C) indicate, as part of the public record of a 
                report included in such database, whether the report is 
                with respect to a gift received from, or a contract 
                entered into with--
                            ``(i) a foreign source that is a foreign 
                        government; or
                            ``(ii) a foreign source that is not a 
                        foreign government; and
                    ``(D) with respect to a disclosure report that does 
                not include the name or address of a foreign source, 
                indicate, as part of the public record of such report 
                included in such database, that such report did not 
                include such information.
            ``(2) Name and address of foreign source.--The Secretary 
        shall not disclose the name or address of a foreign source that 
        is a natural person (other than the attributable country of 
        such foreign source) included in a disclosure report--
                    ``(A) as part of the public record of such 
                disclosure report described in paragraph (1); or
                    ``(B) in response to a request under section 552 of 
                title 5, United States Code (commonly known as the 
                `Freedom of Information Act'), pursuant to subsection 
                (b)(3) of such section.
    ``(e) Interagency Information Sharing.--Not later than 30 days 
after receiving a disclosure report from an institution in compliance 
with this section, the Secretary shall transmit an unredacted copy of 
such report (that includes the name and address of a foreign source 
disclosed in such report) to the Director of the Federal Bureau of 
Investigation, the Director of National Intelligence, the Director of 
the Central Intelligence Agency, the Secretary of State, the Secretary 
of Defense, the Attorney General, the Secretary of Commerce, the 
Secretary of Homeland Security, the Secretary of Energy, the Director 
of the National Science Foundation, and the Director of the National 
Institutes of Health.
    ``(f) Compliance Officer.--Any institution that is required to file 
a disclosure report under subsection (a) shall designate, before the 
filing deadline for such report, and maintain a compliance officer, who 
shall--
            ``(1) be a current employee or legally authorized agent of 
        such institution; and
            ``(2) be responsible, on behalf of the institution, for 
        personally certifying accurate compliance with the foreign gift 
        reporting requirement under this section.
    ``(g) Definitions.--In this section:
            ``(1) Affiliated entity.--The term `affiliated entity', 
        when used with respect to an institution, means an entity or 
        organization that operates primarily for the benefit of, or 
        under the auspices of, such institution, including a foundation 
        of the institution or a related entity (such as any 
        educational, cultural, or language entity).
            ``(2) Attributable country.--The term `attributable 
        country' means--
                    ``(A) the country of citizenship of a foreign 
                source who is a natural person, or, if such country is 
                unknown, the principal residence (as applicable) of 
                such foreign source; or
                    ``(B) the country of incorporation of a foreign 
                source that is a legal entity, or, if such country is 
                unknown, the principal place of business (as 
                applicable) of such foreign source.
            ``(3) Contract.--The term `contract'--
                    ``(A) means--
                            ``(i) any agreement for the acquisition by 
                        purchase, lease, or barter of property or 
                        services by the foreign source;
                            ``(ii) any affiliation, agreement, or 
                        similar transaction with a foreign source that 
                        involves the use or exchange of an 
                        institution's name, likeness, time, services, 
                        or resources; and
                            ``(iii) any agreement for the acquisition 
                        by purchase, lease, or barter, of property or 
                        services from a foreign source (other than an 
                        arms-length agreement for such acquisition from 
                        a foreign source that is not a foreign country 
                        of concern or a foreign entity of concern); and
                    ``(B) does not include an agreement made between an 
                institution and a foreign source regarding any payment 
                of one or more elements of a student's cost of 
                attendance (as such term is defined in section 472), 
                unless such an agreement is made for more than 15 
                students or is made under a restricted or conditional 
                contract.
            ``(4) Foreign source.--The term `foreign source' means--
                    ``(A) a foreign government, including an agency of 
                a foreign government;
                    ``(B) a legal entity, governmental or otherwise, 
                created under the laws of a foreign state or states;
                    ``(C) a legal entity, governmental or otherwise, 
                substantially controlled (as described in section 
                668.174(c)(3) of title 34, Code of Federal Regulations) 
                (or successor regulations)) by a foreign source;
                    ``(D) a natural person who is not a citizen or a 
                national of the United States or a trust territory or 
                protectorate thereof;
                    ``(E) an agent of a foreign source, including--
                            ``(i) a subsidiary or affiliate of a 
                        foreign legal entity, acting on behalf of a 
                        foreign source;
                            ``(ii) a person that operates primarily for 
                        the benefit of, or under the auspices of, a 
                        foreign source, including a foundation or a 
                        related entity (such as any educational, 
                        cultural, or language entity); and
                            ``(iii) a person who is an agent of a 
                        foreign principal (as such term is defined in 
                        section 1 of the Foreign Agents Registration 
                        Act of 1938 (22 U.S.C. 611); and
                    ``(F) an international organization (as such term 
                is defined in the International Organizations 
                Immunities Act (22 U.S.C. 288)).
            ``(5) Gift.--The term `gift'--
                    ``(A) means any gift of money, property, resources, 
                staff, or services; and
                    ``(B) does not include--
                            ``(i) any payment of one or more elements 
                        of a student's cost of attendance (as such term 
                        is defined in section 472) to an institution 
                        by, or scholarship from, a foreign source who 
                        is a natural person, acting in their individual 
                        capacity and not as an agent for, at the 
                        request or direction of, or on behalf of, any 
                        person or entity (except the student), made for 
                        not more than 15 students, and that is not made 
                        under a restricted or conditional contract with 
                        such foreign source; or
                            ``(ii) assignment or license of registered 
                        industrial and intellectual property rights, 
                        such as patents, utility models, trademarks, or 
                        copyrights, or technical assistance, that are 
                        not associated with a category listed in the 
                        Commerce Control List maintained by the Bureau 
                        of Industry and Security of the Department of 
                        Commerce and set forth in Supplement No. 1 to 
                        part 774 of title 15, Code of Federal 
                        Regulations; or
                            ``(iii) decorations (as such term is 
                        defined in section 7342(a) of title 5, United 
                        States Code).
            ``(6) Restricted or conditional gift or contract.--The term 
        `restricted or conditional gift or contract' means any 
        endowment, gift, grant, contract, award, present, or property 
        of any kind which includes provisions regarding--
                    ``(A) the employment, assignment, or termination of 
                faculty;
                    ``(B) the establishment of departments, centers, 
                institutes, instructional programs, research or lecture 
                programs, or new faculty positions;
                    ``(C) the selection, admission, or education of 
                students;
                    ``(D) the award of grants, loans, scholarships, 
                fellowships, or other forms of financial aid restricted 
                to students of a specified country, religion, sex, 
                ethnic origin, or political opinion; or
                    ``(E) any other restriction on the use of a gift or 
                contract.''.
    (b) Prohibition on Contracts With Certain Foreign Entities and 
Countries.--Part B of title I of the Higher Education Act of 1965 (20 
U.S.C. 1011 et seq.) is amended by inserting after section 117 the 
following:

``SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN ENTITIES AND 
              COUNTRIES.

    ``(a) In General.--An institution shall not enter into a contract 
with a foreign country of concern or a foreign entity of concern.
    ``(b) Waivers.--
            ``(1) Submission.--
                    ``(A) First waiver requests.--
                            ``(i) In general.--An institution that 
                        desires to enter into a contract with a foreign 
                        entity of concern or a foreign country of 
                        concern may submit to the Secretary, not later 
                        than 120 days before the institution enters 
                        into such a contract, a request to waive the 
                        prohibition under subsection (a) with respect 
                        to such contract.
                            ``(ii) Contents of waiver request.--A 
                        waiver request submitted by an institution 
                        under clause (i) shall include--
                                    ``(I) the complete and unredacted 
                                text of the proposed contract for which 
                                the waiver is being requested, and if 
                                such original contract is not in 
                                English, a translated copy of the text 
                                into English (in a manner that complies 
                                with section 117(c)); and
                                    ``(II) a statement that--
                                            ``(aa) is signed by the 
                                        compliance officer of the 
                                        institution designated in 
                                        accordance with section 117(f); 
                                        and
                                            ``(bb) includes information 
                                        that demonstrates that such 
                                        contract is for the benefit of 
                                        the institution's mission and 
                                        students and will promote the 
                                        security, stability, and 
                                        economic vitality of the United 
                                        States.
                    ``(B) Renewal waiver requests.--
                            ``(i) In general.--An institution that has 
                        entered into a contract pursuant to a waiver 
                        issued under this section, the term of which is 
                        longer than the 1-year waiver period and the 
                        terms and conditions of which remain the same 
                        as the proposed contract submitted as part of 
                        the request for such waiver may submit, not 
                        later than 120 days before the expiration of 
                        such waiver period, a request for a renewal of 
                        such waiver for an additional 1-year period 
                        (which shall include any information requested 
                        by the Secretary).
                            ``(ii) Termination.--If the institution 
                        fails to submit a request under clause (i) or 
                        is not granted a renewal under such clause, 
                        such institution shall terminate such contract 
                        on the last day of the original 1-year waiver 
                        period.
            ``(2) Waiver issuance.--The Secretary--
                    ``(A) not later than 60 days before an institution 
                enters into a contract pursuant to a waiver request 
                under paragraph (1)(A), or before a contract described 
                in paragraph (1)(B)(i) is renewed pursuant to a renewal 
                request under such paragraph, shall notify the 
                institution--
                            ``(i) if the waiver or renewal will be 
                        issued by the Secretary; and
                            ``(ii) in a case in which the waiver or 
                        renewal will be issued, the date on which the 
                        1-year waiver period starts; and
                    ``(B) may only issue a waiver under this section to 
                an institution if the Secretary determines, in 
                consultation with the heads of each agency and 
                department listed in section 117(e), that the contract 
                for which the waiver is being requested is for the 
                benefit of the institution's mission and students and 
                will promote the security, stability, and economic 
                vitality of the United States.
            ``(3) Disclosure.--Not less than 2 weeks prior to issuing a 
        waiver under paragraph (2), the Secretary shall notify the--
                    ``(A) the Committee on Education and the Workforce 
                of the House of Representatives; and
                    ``(B) the Committee on Health, Education, Labor, 
                and Pensions of the Senate,
        of the intent to issue the waiver, including a justification 
        for the waiver.
            ``(4) Application of waivers.--A waiver issued under this 
        section to an institution with respect to a contract shall 
        only--
                    ``(A) waive the prohibition under subsection (a) 
                for a 1-year period; and
                    ``(B) apply to the terms and conditions of the 
                proposed contract submitted as part of the request for 
                such waiver.
    ``(c) Designation During Contract Term.--In the case of an 
institution that enters into a contract with a foreign source that is 
not a foreign country of concern or a foreign entity of concern but 
which, during the term of such contract, is designated as a foreign 
country of concern or foreign entity of concern, such institution shall 
terminate such contract not later than 60 days after the Secretary 
notifies the institution of such designation.
    ``(d) Contracts Prior to Date of Enactment.--
            ``(1) In general.--In the case of an institution that has 
        entered into a contract with a foreign country of concern or 
        foreign entity of concern prior to the date of the enactment of 
        the DETERRENT Act--
                    ``(A) the institution shall immediately submit to 
                the Secretary a waiver request in accordance with 
                subsection (b)(1)(A)(ii); and
                    ``(B) the Secretary shall, upon receipt of the 
                request submitted under paragraph (1), immediately 
                issue a waiver to the institution for a period 
                beginning on the date on which the waiver is issued and 
                ending on the sooner of--
                            ``(i) the date that is 1 year after the 
                        date of the enactment of the DETERRENT Act; or
                            ``(ii) the date on which the contract 
                        terminates.
            ``(2) Renewal.--An institution that has entered into a 
        contract described in paragraph (1), the term of which is 
        longer than the waiver period described in subparagraph (B) of 
        such paragraph and the terms and conditions of which remain the 
        same as the contract submitted as part of the request required 
        under subparagraph (A) of such paragraph, may submit a request 
        for renewal of the waiver issued under such paragraph in 
        accordance with subsection (b)(1)(B).
    ``(e) Contract Defined.--The term `contract' has the meaning given 
such term in section 117(g).''.
    (c) Interagency Information Sharing.--Not later than 90 days after 
the date of the enactment of this Act, the Secretary of Education shall 
transmit to the heads of each agency and department listed in section 
117(e) of the Higher Education Act of 1965, as amended by this Act--
            (1) any report received by the Department of Education 
        under section 117 of the Higher Education Act of 1965 (20 
        U.S.C. 1011f) prior to the date of the enactment of this Act; 
        and
            (2) any report, document, or other record generated by the 
        Department of Education in the course of an investigation--
                    (A) of an institution with respect to the 
                compliance of such institution with such section; and
                    (B) initiated prior to the date of the enactment of 
                this Act.

SEC. 3. POLICY REGARDING CONFLICTS OF INTEREST FROM FOREIGN GIFTS AND 
              CONTRACTS.

    The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as 
amended by section 2 of this Act, is further amended by inserting after 
section 117A the following:

``SEC. 117B. INSTITUTIONAL POLICY REGARDING FOREIGN GIFTS AND CONTRACTS 
              TO FACULTY AND STAFF.

    ``(a) Requirement to Maintain Policy and Database.--Beginning not 
later than 90 days after the date of the enactment of the DETERRENT 
Act, each institution described in subsection (b) shall maintain--
            ``(1) a policy requiring covered individuals employed at 
        the institution to disclose in a report to such institution on 
        July 31 of each calendar year that begins after the year in 
        which such enactment date occurs--
                    ``(A) any gift received from a foreign source in 
                the previous calendar year, the value of which is 
                greater than the minimal value (as such term is defined 
                in section 7342(a) of title 5, United States Code) or 
                is of undetermined value, and including the date on 
                which the gift was received;
                    ``(B) any contract entered into with a foreign 
                source in the previous calendar year, the value of 
                which is $5,000 or more, considered alone or in 
                combination with all other contracts with that foreign 
                source within the calendar year, and including the date 
                on which such contract commences and, as applicable, 
                the date on which such contract terminates;
                    ``(C) any contract with a foreign source in force 
                during the previous calendar year that has an 
                undetermined monetary value, and including the date on 
                which such contract commences and, as applicable, the 
                date on which such contract terminates; and
                    ``(D) any contract entered into with a foreign 
                country of concern or foreign entity of concern in the 
                previous calendar year, the value of which is $0 or 
                more, and including the beginning and ending dates of 
                such contract and the full text of such contract and 
                any addenda;
            ``(2) a publicly available and searchable database (in 
        electronic and downloadable format), on a website of the 
        institution, of the information required to be disclosed under 
        paragraph (1) (other than the name or any other personally 
        identifiable information of a covered individual) that--
                    ``(A) makes available the information disclosed 
                under paragraph (1) (other than the name or any other 
                personally identifiable information of a covered 
                individual) beginning on the date that is 30 days after 
                receipt of the report under such paragraph containing 
                such information and until the latest of--
                            ``(i) the date that is 5 years after the 
                        date on which--
                                    ``(I) a gift referred to in 
                                paragraph (1)(A) is received; or
                                    ``(II) a contract referred to in 
                                subparagraph (B), (C) or (D) of 
                                paragraph (1) begins; or
                            ``(ii) the date on which a contract 
                        referred to in subparagraph (B), (C) or (D) of 
                        paragraph (1) terminates; and
                    ``(B) is searchable and sortable by--
                            ``(i) the date received (if a gift) or the 
                        date commenced (if a contract);
                            ``(ii) the attributable country with 
                        respect to which information is being 
                        disclosed;
                            ``(iii) the narrowest of the department, 
                        school, or college of the institution, as 
                        applicable, for which the individual making the 
                        disclosure works; and
                            ``(iv) the name of the foreign source 
                        (other than a foreign source who is a natural 
                        person); and
            ``(3) an effective plan to identify and manage potential 
        information gathering by foreign sources through espionage 
        targeting covered individuals that may arise from gifts 
        received from, or contracts entered into with, a foreign 
        source, including through the use of--
                    ``(A) periodic communications;
                    ``(B) accurate reporting under paragraph (2) of the 
                information required to be disclosed under paragraph 
                (1); and
                    ``(C) enforcement of the policy described in 
                paragraph (1); and
            ``(4) for purposes of investigations under section 
        117D(a)(1) or responses to requests under section 552 of title 
        5, United States Code (commonly known as the `Freedom of 
        Information Act'), the names of the individuals making 
        disclosures under paragraph (1).
    ``(b) Institutions.--An institution shall be subject to the 
requirements of this section if such institution--
            ``(1) is an eligible institution for the purposes of any 
        program authorized under title IV; and
            ``(2)(A) received more than $50,000,000 in Federal funds in 
        any of the previous five calendar years to support (in whole or 
        in part) research and development (as determined by the 
        institution and measured by the Higher Education Research and 
        Development Survey of the National Center for Science and 
        Engineering Statistics); or
            ``(B) receives funds under title VI.
    ``(c) Definitions.--In this section--
            ``(1) the terms `foreign source' and `gift' have the 
        meanings given such terms in section 117(g);
            ``(2) the term `contract'--
                    ``(A) means any--
                            ``(i) agreement for the acquisition, by 
                        purchase, lease, or barter, of property or 
                        services by a foreign source;
                            ``(ii) affiliation, agreement, or similar 
                        transaction with a foreign source involving the 
                        use or exchange of the name, likeness, time, 
                        services, or resources of covered individuals 
                        employed at an institution described in 
                        subsection (b); or
                            ``(iii) purchase, lease, or barter of 
                        property or services from a foreign source that 
                        is a foreign country of concern or a foreign 
                        entity of concern; and
                    ``(B) does not include any fair-market, arms-length 
                agreement made by covered individuals for the 
                acquisition, by purchase, lease, or barter of property 
                or services from a foreign source other than such a 
                foreign source that is a foreign country of concern or 
                a foreign entity of concern; and
            ``(3) the term `covered individual'--
                    ``(A) has the meaning given such term in section 
                223(d) of the William M. (Mac) Thornberry National 
                Defense Authorization Act for Fiscal Year 2021 (42 
                U.S.C. 6605); and
                    ``(B) shall be interpreted in accordance with the 
                Guidance for Implementing National Security 
                Presidential Memorandum 33 (NSPM-33) on National 
                Security Strategy for United States Government-
                supported Research and Development published by the 
                Subcommittee on Research Security and the Joint 
                Committee on the Research Environment in January 
                2022.''.

SEC. 4. INVESTMENT DISCLOSURE REPORT.

    The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as 
amended by section 3 of this Act, is further amended by inserting after 
section 117B the following:

``SEC. 117C. INVESTMENT DISCLOSURE REPORT.

    ``(a) Investment Disclosure Report.--A specified institution shall 
file a disclosure report in accordance with subsection (b) with the 
Secretary on July 31 immediately following any calendar year in which 
the specified institution purchases, sells, or holds (directly or 
indirectly through any chain of ownership) one or more investments of 
concern.
    ``(b) Contents of Report.--Each report to the Secretary required by 
subsection (a) with respect to any calendar year shall contain the 
following:
            ``(1) A list of the investments of concern purchased, sold, 
        or held during such calendar year.
            ``(2) The aggregate fair market value of all investments of 
        concern held as of the close of such calendar year.
            ``(3) The combined value of all investments of concern sold 
        over the course of such calendar year, as measured by the fair 
        market value of such investments at the time of the sale.
            ``(4) The combined value of all capital gains from such 
        sales of investments of concern.
    ``(c) Inclusion of Certain Pooled Funds.--
            ``(1) In general.--An investment of concern acquired 
        through a regulated investment company, exchange traded fund, 
        or any other pooled investment shall be treated as acquired 
        through a chain of ownership referred to in subsection (a), 
        unless such pooled investment is certified by the Secretary as 
        not holding any listed investments in accordance with 
        subparagraph (B) of paragraph (2).
            ``(2) Certifications of pooled funds.--The Secretary, after 
        consultation with the Secretary of the Treasury, shall 
        establish procedures under which certain regulated investment 
        companies, exchange traded funds, and other pooled 
        investments--
                    ``(A) shall be reported in accordance with the 
                requirements under subsection (b); and
                    ``(B) may be certified by the Secretary as not 
                holding any listed investments.
    ``(d) Treatment of Related Organizations.--For purposes of this 
section, assets held by any related organization (as defined in section 
4968(d)(2) of the Internal Revenue Code of 1986) with respect to a 
specified institution shall be treated as held by such specified 
institution, except that--
            ``(1) such assets shall not be taken into account with 
        respect to more than 1 specified institution; and
            ``(2) unless such organization is controlled by such 
        institution or is described in section 509(a)(3) of the 
        Internal Revenue Code of 1986 with respect to such institution, 
        assets which are not intended or available for the use or 
        benefit of such specified institution shall not be taken into 
        account.
    ``(e) Valuation of Debt.--For purposes of this section, the fair 
market value of any debt shall be the principal amount of such debt.
    ``(f) Regulations.--The Secretary, after consultation with the 
Secretary of the Treasury, may issue such regulations or other guidance 
as may be necessary or appropriate to carry out the purposes of this 
section, including regulations or other guidance providing for the 
proper application of this section with respect to certain regulated 
investment companies, exchange traded funds, and pooled investments.
    ``(g) Compliance Officer.--Any specified institution that is 
required to submit a report under subsection (a) shall designate, 
before the submission of such report, and maintain a compliance 
officer, who shall--
            ``(1) be a current employee or legally authorized agent of 
        such institution;
            ``(2) be responsible, on behalf of the institution, for 
        personally certifying accurate compliance with the reporting 
        requirements under this section; and
            ``(3) certify the institution has, for purposes of filing 
        such report under subsection (a), followed an established 
        institutional policy and conducted good faith efforts and 
        reasonable due diligence to determine the accuracy and 
        valuations of the assets reported.
    ``(h) Database Requirement.--Beginning not later than 60 days 
before the July 31 immediately following the date of the enactment of 
the DETERRENT Act, the Secretary shall--
            ``(1) establish and maintain a searchable database on a 
        website of the Department, under which all reports submitted 
        under this section--
                    ``(A) are made publicly available (in electronic 
                and downloadable format), including any information 
                provided in such reports;
                    ``(B) can be individually identified and compared; 
                and
                    ``(C) are searchable and sortable; and
            ``(2) not later than 30 days after receipt of a disclosure 
        report under this section, include such report in such 
        database.
    ``(i) Definitions.--In this section:
            ``(1) Investment of concern.--
                    ``(A) In general.--The term `investment of concern' 
                means any specified interest with respect to any of the 
                following:
                            ``(i) A foreign country of concern.
                            ``(ii) A foreign entity of concern.
                    ``(B) Specified interest.--The term `specified 
                interest' means, with respect to any entity--
                            ``(i) stock or any other equity or profits 
                        interest of such entity;
                            ``(ii) debt issued by such entity; and
                            ``(iii) any contract or derivative with 
                        respect to any property described in clause (i) 
                        or (ii).
            ``(2) Specified institution.--
                    ``(A) In general.--The term `specified 
                institution', as determined with respect to any 
                calendar year, means an institution if--
                            ``(i) such institution is not a public 
                        institution; and
                            ``(ii) the aggregate fair market value of--
                                    ``(I) the assets held by such 
                                institution at the end of such calendar 
                                year (other than those assets which are 
                                used directly in carrying out the 
                                institution's exempt purpose) is in 
                                excess of $6,000,000,000; or
                                    ``(II) the investments of concern 
                                held by such institution at the end of 
                                such calendar year is in excess of 
                                $250,000,000
                    ``(B) References to certain terms.--For the purpose 
                of applying the definition under subparagraph (A), the 
                terms `aggregate fair market value' and `assets which 
                are used directly in carrying out the institution's 
                exempt purpose' shall be applied in the same manner as 
                such terms are applied for the purposes of section 
                4968(b)(1)(D) of the Internal Revenue Code of 1986.''.

SEC. 5. ENFORCEMENT AND OTHER GENERAL PROVISIONS.

    (a) Enforcement and Other General Provisions.--The Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.), as amended by section 4 of this 
Act, is further amended by inserting after section 117C the following:

``SEC. 117D. ENFORCEMENT; SINGLE POINT-OF-CONTACT.

    ``(a) Enforcement.--
            ``(1) Investigation.--The Secretary (acting through the 
        General Counsel of the Department) shall conduct investigations 
        of possible violations of sections 117, 117A, 117B, and 117C by 
        institutions and, whenever it appears that an institution has 
        knowingly or willfully failed to comply with a requirement of 
        any of such sections (including any rule or regulation 
        promulgated under any such section), shall request that the 
        Attorney General bring a civil action in accordance with 
        paragraph (2).
            ``(2) Civil action.--Whenever it appears that an 
        institution has knowingly or willfully failed to comply with a 
        requirement of any of the sections listed in paragraph (1) 
        (including any rule or regulation promulgated under any such 
        section) based on such an investigation, a civil action shall 
        be brought by the Attorney General, at the request of the 
        Secretary, in an appropriate district court of the United 
        States, or the appropriate United States court of any territory 
        or other place subject to the jurisdiction of the United 
        States, to request such court to compel compliance with the 
        requirement of the section that has been violated.
            ``(3) Costs and other fines.--An institution that is 
        compelled to comply with a requirement of a section listed in 
        paragraph (1) pursuant to paragraph (2) shall--
                    ``(A) pay to the Treasury of the United States the 
                full costs to the United States of obtaining compliance 
                with the requirement of such section, including all 
                associated costs of investigation and enforcement; and
                    ``(B) be subject to the applicable fines described 
                in paragraph (4).
            ``(4) Fines for violations.--The Secretary shall impose a 
        fine on an institution that knowingly or willfully fails to 
        comply with a requirement of a section listed in paragraph (1) 
        as follows:
                    ``(A) Section 117.--
                            ``(i) First-time violations.--In the case 
                        of an institution that knowingly or willfully 
                        fails to comply with a requirement of section 
                        117 with respect to a calendar year, and that 
                        has not previously knowingly or willfully 
                        failed to comply with such a requirement, the 
                        Secretary shall impose a fine on the 
                        institution for such violation as follows:
                                    ``(I) In the case of an institution 
                                that knowingly or willfully fails to 
                                comply with a reporting requirement 
                                under subsection (a)(1) of section 117, 
                                such fine shall be in an amount that 
                                is--
                                            ``(aa) not less than 
                                        $50,000 but not more than the 
                                        monetary value of the gift 
                                        from, or contract with, the 
                                        foreign source; or
                                            ``(bb) in the case of a 
                                        gift or contract of no value or 
                                        of indeterminable value, not 
                                        less than 1 percent, and not 
                                        more than 10 percent of the 
                                        total amount of Federal funds 
                                        received by the institution 
                                        under this Act for the most 
                                        recent fiscal year.
                                    ``(II) In the case of an 
                                institution that knowingly or willfully 
                                fails to comply with the reporting 
                                requirement under subsection (a)(2) of 
                                section 117, such fine shall be in an 
                                amount that is not less than 10 percent 
                                of the total amount of Federal funds 
                                received by the institution under this 
                                Act for the most recent fiscal year.
                            ``(ii) Subsequent violations.--In the case 
                        of an institution that has been fined pursuant 
                        to clause (i) with respect to a calendar year, 
                        and that knowingly or willfully fails to comply 
                        with a requirement of section 117 with respect 
                        to any additional calendar year, the Secretary 
                        shall impose a fine on the institution with 
                        respect to any such additional calendar year as 
                        follows:
                                    ``(I) In the case of an institution 
                                that knowingly or willfully fails to 
                                comply with a reporting requirement 
                                under subsection (a)(1) of section 117 
                                with respect to an additional calendar 
                                year, such fine shall be in an amount 
                                that is--
                                            ``(aa) not less than 
                                        $100,000 but not more than 
                                        twice the monetary value of the 
                                        gift from, or contract with, 
                                        the foreign source; or
                                            ``(bb) in the case of a 
                                        gift or contract of no value or 
                                        of indeterminable value, not 
                                        less than 1 percent, but not 
                                        more than 10 percent, of the 
                                        total amount of Federal funds 
                                        received by the institution 
                                        under this Act for the most 
                                        recent fiscal year.
                                    ``(II) In the case of an 
                                institution that knowingly or willfully 
                                fails to comply with a reporting 
                                requirement under subsection (a)(2) of 
                                section 117 with respect to an 
                                additional calendar year, such fine 
                                shall be in an amount that is not less 
                                than 20 percent of the total amount of 
                                Federal funds received by the 
                                institution under this Act for the most 
                                recent fiscal year.
                    ``(B) Section 117a.--
                            ``(i) First-time violations.--In the case 
                        of an institution that knowingly or willfully 
                        fails to comply with a requirement of section 
                        117A for the first time, the Secretary shall 
                        impose a fine on the institution in an amount 
                        that is not less than 5 percent, but not more 
                        than 10 percent, of the total amount of Federal 
                        funds received by the institution under this 
                        Act for the most recent fiscal year.
                            ``(ii) Subsequent violations.--In the case 
                        of an institution that has been fined pursuant 
                        to clause (i), the Secretary shall impose a 
                        fine on the institution for each subsequent 
                        time the institution knowingly or willfully 
                        fails to comply with a requirement of section 
                        117A in an amount that is not less than 20 
                        percent of the total amount of Federal funds 
                        received by the institution under this Act for 
                        the most recent fiscal year.
                    ``(C) Section 117b.--
                            ``(i) First-time violations.--In the case 
                        of an institution that knowingly or willfully 
                        fails to comply with a requirement of section 
                        117B with respect to a calendar year, and that 
                        has not previously knowingly or willfully 
                        failed to comply with such a requirement, the 
                        Secretary shall impose a fine on the 
                        institution of not less than $250,000, but not 
                        more than the total amount of gifts or 
                        contracts reported by such institution in the 
                        database required under section 117B(a)(2).
                            ``(ii) Subsequent violations.--In the case 
                        of an institution that has been fined pursuant 
                        to clause (i) with respect to a calendar year, 
                        and that knowingly or willfully fails to comply 
                        with a requirement of section 117B with respect 
                        to any additional calendar year, the Secretary 
                        shall impose a fine on the institution with 
                        respect to any such additional calendar year in 
                        an amount that is not less than $500,000, but 
                        not more than twice the total amount of gifts 
                        or contracts reported by such institution in 
                        the database required under section 117B(a)(2).
                    ``(D) Section 117c.--
                            ``(i) First-time violations.--In the case 
                        of a specified institution that knowingly or 
                        willfully fails to comply with a requirement of 
                        section 117C with respect to a calendar year, 
                        and that has not previously knowingly or 
                        willfully failed to comply with such a 
                        requirement, the Secretary shall impose a fine 
                        on the institution in an amount that is not 
                        less than 50 percent and not more than 100 
                        percent of the sum of--
                                    ``(I) the aggregate fair market 
                                value of all investments of concern 
                                held by such institution as of the 
                                close of such calendar year; and
                                    ``(II) the combined value of all 
                                investments of concern sold over the 
                                course of such calendar year, as 
                                measured by the fair market value of 
                                such investments at the time of the 
                                sale.
                            ``(ii) Subsequent violations.--In the case 
                        of a specified institution that has been fined 
                        pursuant to clause (i) with respect to a 
                        calendar year, and that knowingly or willfully 
                        fails to comply with a requirement of section 
                        117C with respect to any additional calendar 
                        year, the Secretary shall impose a fine on the 
                        institution with respect to any such additional 
                        calendar year in an amount that is not less 
                        than 100 percent and not more than 200 percent 
                        of the sum of--
                                    ``(I) the aggregate fair market 
                                value of all investments of concern 
                                held by such institution as of the 
                                close of such additional calendar year; 
                                and
                                    ``(II) the combined value of all 
                                investments of concern sold over the 
                                course of such additional calendar 
                                year, as measured by the fair market 
                                value of such investments at the time 
                                of the sale.
                    ``(E) Ineligibilty for waiver.----In the case of an 
                institution that has been fined pursuant to 
                subparagraph (A)(i), (B)(i) (C)(i), or (D)(i) with 
                respect to a calendar year, and that knowingly or 
                willfully fails to comply with a requirement of section 
                117, 117A, 117B, or 117C with respect to any 2 
                additional calendar years, the Secretary shall prohibit 
                the institution from obtaining a waiver, or a renewal 
                of a waiver, under section 117A.
    ``(b) Single Point-of-contact at the Department.--The Secretary 
shall maintain a single point-of-contact at the Department to--
            ``(1) receive and respond to inquiries and requests for 
        technical assistance from institutions regarding compliance 
        with the requirements of sections 117, 117A, 117B, and 117C;
            ``(2) coordinate and implement technical improvements to 
        the database described in section 117(d)(1), including--
                    ``(A) improving upload functionality by allowing 
                for batch reporting, including by allowing institutions 
                to upload one file with all required information into 
                the database;
                    ``(B) publishing and maintaining a database users 
                guide annually, including information on how to edit an 
                entry and how to report errors;
                    ``(C) creating a standing user group (to which 
                chapter 10 of title 5, United States Code, shall not 
                apply) to discuss possible database improvements, which 
                group shall--
                            ``(i) include at least--
                                    ``(I) 3 members representing public 
                                institutions with high or very high 
                                levels of research activity (as defined 
                                by the National Center for Education 
                                Statistics);
                                    ``(II) 2 members representing 
                                private, nonprofit institutions with 
                                high or very high levels of research 
                                activity (as so defined);
                                    ``(III) 2 members representing 
                                proprietary institutions of higher 
                                education (as defined in section 
                                102(b)); and
                                    ``(IV) 2 members representing area 
                                career and technical education schools 
                                (as defined in subparagraph (C) or (D) 
                                of section 3(3) of the Carl D. Perkins 
                                Career and Technical Education Act of 
                                2006 (20 U.S.C. 2302(3)); and
                            ``(ii) meet at least twice a year with 
                        officials from the Department to discuss 
                        possible database improvements;
                    ``(D) publishing, on a publicly available website, 
                recommended database improvements following each 
                meeting described in subparagraph (C)(ii); and
                    ``(E) responding, on a publicly available website, 
                to each recommendation published under subparagraph (D) 
                as to whether or not the Department will implement the 
                recommendation, including the rationale for either 
                approving or rejecting the recommendation;
            ``(3) provide, every 90 days after the date of enactment of 
        the DETERRENT Act, status updates on any pending or completed 
        investigations and civil actions under subsection (a)(1) to--
                    ``(A) the authorizing committees; and
                    ``(B) any institution that is the subject of such 
                investigation or action;
            ``(4) maintain, on a publicly accessible website--
                    ``(A) a full comprehensive list of all foreign 
                countries of concern and foreign entities of concern; 
                and
                    ``(B) the date on which the last update was made to 
                such list; and
            ``(5) not later than 7 days after making an update to the 
        list maintained in paragraph (4)(A), notify each institution 
        required to comply with the sections listed in paragraph (1) of 
        such update.
    ``(c) Definitions.--For purposes of sections 117, 117A, 117B, 117C, 
and this section:
            ``(1) Foreign country of concern.--The term `foreign 
        country of concern' includes the following:
                    ``(A) A country that is a covered nation (as 
                defined in section 4872(d) of title 10, United States 
                Code).
                    ``(B) Any country that the Secretary, in 
                consultation with the Secretary of Defense, the 
                Secretary of State, and the Director of National 
                Intelligence, determines to be engaged in conduct that 
                is detrimental to the national security or foreign 
                policy of the United States.
            ``(2) Foreign entity of concern.--The term `foreign entity 
        of concern' has the meaning given such term in section 10612(a) 
        of the Research and Development, Competition, and Innovation 
        Act (42 U.S.C. 19221(a)) and includes a foreign entity that is 
        identified on the list published under section 1286(c)(8)(A) of 
        the John S. McCain National Defense Authorization Act for 
        Fiscal Year 2019 (10 U.S.C. 22 4001 note; Public Law 115-232).
            ``(3) Institution.--The term `institution' means an 
        institution of higher education (as such term is defined in 
        section 102, other than an institution described in subsection 
        (a)(1)(c) of such section).''.
    (b) Program Participation Agreement.--Section 487(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1094) is amended by adding at the end 
the following:
            ``(30)(A) An institution will comply with the requirements 
        of sections 117, 117A, 117B, and 117C.
            ``(B) An institution that, for 3 consecutive institutional 
        fiscal years, violates any requirement of any of the sections 
        listed in subparagraph (A), shall--
                    ``(i) be ineligible to participate in the programs 
                authorized by this title for a period of not less than 
                2 institutional fiscal years; and
                    ``(ii) in order to regain eligibility to 
                participate in such programs, demonstrate compliance 
                with all requirements of each such section for not less 
                than 2 institutional fiscal years after the 
                institutional fiscal year in which such institution 
                became ineligible.''.
    (c) GAO Study and Report.--
            (1) Study.--Not later than 180 days after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall initiate a study to identify ways to improve 
        intergovernmental agency coordination regarding implementation 
        and enforcement of sections 117, 117A, 117B, and 117C of the 
        Higher Education Act of 1965 (20 U.S.C. 1011f), as amended or 
        added by this Act, including increasing information sharing, 
        increasing compliance rates, and establishing processes for 
        enforcement.
            (2) Report.--Not later than 3 years after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to Congress, and make public, a report 
        containing the results of the study described in paragraph (1).

            Passed the House of Representatives December 6, 2023.

            Attest:

                                                                 Clerk.
118th CONGRESS

  1st Session

                               H. R. 5933

_______________________________________________________________________

                                 AN ACT

    To amend the Higher Education Act of 1965 to require additional 
information in disclosures of foreign gifts and contracts from foreign 
 sources, restrict contracts with certain foreign entities and foreign 
   countries of concern, require certain staff and faculty to report 
foreign gifts and contracts, and require disclosure of certain foreign 
                     investments within endowments.
```