Think Tank Transparency Act

Subjects: International Affairs


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1087 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1087

    To require certain nonprofit and not-for-profit social welfare 
 organizations to submit disclosure reports on foreign funding to the 
               Attorney General, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 30, 2023

 Mr. Grassley introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
    To require certain nonprofit and not-for-profit social welfare 
 organizations to submit disclosure reports on foreign funding to the 
               Attorney General, and for other purposes.

    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 ``Think Tank Transparency Act''.

SEC. 2. DEFINITIONS.

     In this Act:
            (1) Conduct intending to directly or indirectly influence 
        public policy or public opinion.--The term ``conduct intending 
        to directly or indirectly to influence public policy or public 
        opinion'' means, with respect to a covered entity, any activity 
        that the covered entity engaging in believes will, or that the 
        covered entity intends to, in any way influence any agency or 
        official of the Government of the United States, or any section 
        of the public within the United States, with respect to--
                    (A) formulating, adopting, or changing the domestic 
                or foreign policies of the United States; or
                    (B) the political or public interests, policies, or 
                relations of a government of a foreign country or a 
                foreign political party.
            (2) Contract.--The term ``contract'' means any agreement 
        for the acquisition by purchase, lease, or barter of property 
        or services by the foreign principal, for the direct benefit or 
        use of either of the parties.
            (3) Country of citizenship.--The term ``country of 
        citizenship'', with respect to a foreign principal, includes--
                    (A) the principal residence for a foreign principal 
                who is a natural person; or
                    (B) the country of incorporation or the principal 
                place of business for a foreign principal which is a 
                legal entity.
            (4) Covered entity.--The term ``covered entity''--
                    (A) means a nonprofit organization or a not-for-
                profit social welfare organization that--
                            (i) spends more than 20 percent of the 
                        resources of the organization within any given 
                        calendar year on conduct intending to directly 
                        or indirectly influence public policy or public 
                        opinion; or
                            (ii) is affiliated with, or is a subunit, 
                        of an institution, as defined in section 117 of 
                        the Higher Education Act of 1965 (20 U.S.C. 
                        1011f), that is subject to that section and 
                        that--
                                    (I) engages in or publishes 
                                substantial policy-related research or 
                                scholarship; or
                                    (II) hosts, sponsors, or otherwise 
                                promotes annual, or on a more frequent 
                                basis, events featuring reporters, 
                                journalists, or United States or 
                                foreign government officials; and
                    (B) excludes--
                            (i) an ``institution'', as defined in 
                        section 117 of the Higher Education Act of 1965 
                        (20 U.S.C. 1011f), that is subject to that 
                        section; and
                            (ii) an entity organized and operated 
                        exclusively for religious purposes.
            (5) Foreign principal.--The term ``foreign principal'' 
        includes--
                    (A) a government of a foreign country or a foreign 
                political party;
                    (B) a person outside of the United States, unless 
                it is established that--
                            (i) the person is an individual and a 
                        citizen of the United States; or
                            (ii) the person--
                                    (I) is not an individual and is 
                                organized under or created by the laws 
                                of the United States or of any State or 
                                other place subject to the jurisdiction 
                                of the United States; and
                                    (II) has its principal place of 
                                business within the United States; and
                    (C) a partnership, association, corporation, 
                organization, or other combination of persons organized 
                under the laws of or having its principal place of 
                business in a foreign country.
            (6) Gift, donation, or contribution.--The term ``gift, 
        donation, or contribution'' means any gift of money, property, 
        or in-kind contribution given directly or indirectly to a 
        covered entity by a foreign principal.
            (7) Not-for-profit social welfare organization.--The term 
        ``not-for-profit social welfare organization'' means an 
        organization described in section 501(c)(4) of the Internal 
        Revenue Code of 1986 and exempt from tax under section 501(a) 
        of such Code.
            (8) Nonprofit organization.--The term ``nonprofit 
        organization'' means an organization described in section 
        501(c)(3) of the Internal Revenue Code of 1986 and exempt from 
        tax under section 501(a) of such Code.
            (9) 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 that includes provisions regarding--
                    (A) the employment, assignment, compensation, or 
                termination of researchers, scholars, or experts;
                    (B) the earmarking of funds for departments, 
                centers, research or lecture programs, or new positions 
                for researchers, scholars, or experts;
                    (C) the subject matter, nature, or contents of 
                research, analysis or any information published or 
                disseminated to officials of the United States Federal 
                Government, the media, or the public; or
                    (D) any other condition or expectation regarding 
                either the ability of the foreign principal to review 
                in advance, approve, veto, or modify budgets, programs, 
                events, or presentations, or the contents of 
                information or materials to be published or 
                disseminated.

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) Think tanks have provided Congress and the executive 
        branch with a wealth of research and scholarship that largely 
        has benefitted the public in the United States by improving the 
        drafting, enactment, and enforcement of policy in the United 
        States.
            (2) There is broad bipartisan agreement that think tanks 
        possess enormous influence on the passage and enforcement of 
        policies, particularly those that relate to foreign policy.
            (3) In recent years, foreign funding of think tanks has 
        increased substantially.
            (4) Congress, the executive branch, and especially the 
        people of the United States have a right to--
                    (A) know which think tanks receive foreign funds; 
                and
                    (B) assess for themselves the extent that foreign 
                influence should be considered when analyzing the 
                credibility and value of research and scholarship 
                produced by such think tanks that receive foreign 
                funds.
            (5) The United States House of Representatives has 
        recognized the national security issues inherent in undue 
        foreign influence of entities with covert sources of foreign 
        funding that testify before Congress. Since 2015, 
        representatives of entities who testify before the United 
        States House of Representatives have been required to disclose 
        relevant foreign funding sources directed to them or their 
        employers in Truth-in-Testimony disclosure forms required under 
        clause 2(g)(5) of rule XI of the Rules of the House of 
        Representatives.
            (6) Almost 30 years ago, Congress enacted section 117 of 
        the Higher Education Act of 1965 (20 U.S.C. 1011f) (hereinafter 
        referred to as ``section 117'') in light of concerns about the 
        growing financial relationship between universities in the 
        United States and foreign sources. In enacting that 
        legislation, Congress balanced academic freedom and national 
        security by mandating financial transparency through required 
        reporting of contracts with, and gifts from, any foreign 
        source.
            (7) Section 117 does not prohibit institutions of higher 
        education from taking foreign money, but rather mandates 
        accurate and transparent disclosures of sources and amounts 
        received by those institutions to the Department of Education. 
        In 2019, the Department of Education took concrete steps to 
        enforce section 117 by ensuring the integrity of reporting 
        requirements, confirming the correct reporting and 
        categorization of donations, and prohibiting the use of 
        domestic conduits and intermediaries to avoid the disclosures 
        of foreign gifts.
            (8) Between 2011 and 2021, the Russian Federation 
        (hereinafter referred to as ``Russia'') gave not less than 
        $160,000,000 to universities in the United States. The People's 
        Republic of China (hereinafter referred to as ``China'') alone 
        gave not less than $2,700,000,000 to universities during the 
        United States during the same time frame.
            (9) Russia and China each have repressive and deeply 
        troubling records relating to human rights, and both have 
        engaged in cyber espionage targeting individuals in the United 
        States.
            (10) Russia and China pose grave threats to the national 
        security interests of the United States, yet those countries 
        have successfully lavished billions of dollars to cultivate 
        strong ties with institutions of higher education and research 
        across the United States.
            (11) Although the Center for International Policy conducted 
        a study in 2020 that concluded that think tanks focused on 
        Federal policy received not less than $174,000,000 in funding 
        from foreign governmental entities between 2014 and 2018, there 
        is currently no means to determine the actual level or extent 
        of foreign influence on those think tanks.
            (12) What is clear is the vast amount of foreign funding 
        that United States-based think tanks receive, and that such 
        foreign funding affects the direction of their policy 
        recommendations.
            (13) There is significant concern in Congress about 
        potential contractual stipulations tied to foreign funding that 
        could be leveraged by foreign powers to exert even greater 
        influence over the research and policy recommendations of think 
        tanks that the Federal Government and the public in the United 
        States would otherwise believe to be independent.
            (14) There is broad bipartisan agreement that undue foreign 
        influence obscured through the use of proxies--or hidden by the 
        powerful brand of a highly respected think tank--threatens the 
        national security interests of the United States. There is also 
        broad agreement that transparency is the most important and 
        effective tool for reducing the harm of foreign influence 
        targeting United States public policy or public opinion.
            (15) As such, this bill aims to provide critical 
        transparency regarding the foreign funding provided to, and the 
        related contractual agreements with, think tanks whose work 
        includes influencing United States policies or public opinion.

SEC. 4. CONTEMPORANEOUS DISCLOSURE REPORTS.

    (a) Reporting Conditions.--
            (1) Gifts, donations, or contributions.--
                    (A) In general.--Except as provided in section 7, a 
                covered entity that receives a gift, donation, or 
                contribution from a foreign principal during a calendar 
                year in an aggregate amount of $10,000 or greater shall 
                file a disclosure report with the Attorney General in 
                accordance with subsection (b) not later than 90 days 
                after each disclosure date.
                    (B) Disclosure date defined.--In this paragraph, 
                the term ``disclosure date'' means--
                            (i) the first date during any calendar year 
                        by which a covered entity has received a gift, 
                        donation, or contribution from a foreign 
                        principal in an aggregate amount of $10,000 or 
                        greater; and
                            (ii) any other date during such calendar 
                        year by which a covered entity has received a 
                        gift, donation, or contribution from a foreign 
                        principal in an aggregate amount of $10,000 or 
                        greater since the most recent disclosure date 
                        for such calendar year.
            (2) Contract, memorandum of understanding, or agreement.--
        Except as provided in section 7, a covered entity that enters 
        into or modifies a contract, memorandum of understanding, or 
        agreement with a foreign principal shall file a disclosure 
        report with the Attorney General in accordance with subsection 
        (b) within 90 days of the entering into or modification of such 
        contract, memorandum, or agreement.
    (b) Contents of Contemporaneous Disclosure Report.--
            (1) Gifts, donations, or contributions only.--The report 
        required under subsection (a)(1) shall detail the following:
                    (A) The identities of the foreign principal and the 
                primary point of contact of the foreign principal for 
                engaging with the covered entity, including the name 
                and title of such point of contact.
                    (B) The date on which the foreign principal 
                provided a gift, donation, or contribution to the 
                covered entity.
                    (C) The aggregate dollar amount of such gift, 
                donation, or contribution attributable to a particular 
                foreign principal.
                    (D) A description of any conditions or restrictions 
                regarding any of the disclosed gifts, donations, or 
                contributions.
                    (E) The aggregate amount of such gifts, donations, 
                or contributions received from each foreign principal.
                    (F) A description of any decisions made because of 
                the foreign principal to the structure of the 
                organization or to the research, programs, or content 
                intended to be or actually published, disseminated, or 
                promoted by the covered entity.
            (2) Contract, memorandum of understanding, or agreement 
        only.--The report required under subsection (a)(2) shall detail 
        the following:
                    (A) The identities of the foreign principal and the 
                primary point of contact of the foreign principal for 
                engaging with the covered entity, including the name 
                and title of such point of contact.
                    (B) The date on which the covered entity entered 
                into or modified a contract, memorandum of 
                understanding, or agreement with a foreign principal.
                    (C) Copies of all written contracts, agreements, or 
                memoranda of understanding the covered entity entered 
                into or modified with any foreign principal.
                    (D) Copies of all internal and external documents, 
                research materials, and publications produced as a 
                result of the contract, memorandum of understanding, or 
                agreement.
                    (E) A description of any decisions made because of 
                the foreign principal to the structure of the 
                organization or to the research, programs, or content 
                intended to be or actually published, disseminated, or 
                promoted by the covered entity.

SEC. 5. INITIAL DISCLOSURE REPORTS.

    (a) In General.--A covered entity shall file an initial disclosure 
report, in accordance with subsection (b) or (c), with the Attorney 
General not later than 180 days after the date of enactment of this Act 
if, during the period beginning on January 1 of the most recent 
calendar year that ended before the date of enactment of this Act and 
ending on the effective date of this Act--
            (1) the covered entity received a gift, donation, or 
        contribution from a foreign principal in an aggregate amount of 
        $10,000 or greater;
            (2) the covered entity entered into or modified a contract, 
        memorandum of understanding, or agreement with a foreign 
        principal; or
            (3) the covered entity had previously entered into a 
        contract, agreement, or memorandum of understanding with a 
        foreign principal that was still valid or enforceable on or 
        after January 1 of the most recent calendar year that ended 
        before the date of enactment of this Act.
    (b) Prior Gifts, Donations, or Contributions.--The report required 
under subsection (a)(1) shall detail the following:
            (1) The name of the foreign principal.
            (2) The country of citizenship of the foreign principal.
            (3) The amount and date of such gifts, donations, or 
        contributions.
            (4) The description of any conditions or restrictions 
        attached to, or placed on, the gifts, donations, or 
        contributions.
            (5) A description of any decisions made because of the 
        foreign principal to the structure of the organization or to 
        the research, programs, or content intended to be or actually 
        published, disseminated, or promoted by the covered entity.
    (c) Contract, Memorandum of Understanding, or Agreement.--The 
report required under subsection (a)(2) shall detail the following:
            (1) The name of the foreign principal.
            (2) The country of citizenship of the foreign principal.
            (3) Copies of each written contract, memorandum of 
        understanding, or agreement.
            (4) Any modification of each such written contract, 
        memorandum, or agreement.
            (5) The terms and conditions of each oral agreement.
            (6) Any modification of each such oral agreement.
            (7) A comprehensive statement of--
                    (A) the nature and method of performance of each 
                item described in paragraphs (3) through (6); and
                    (B) the actions taken by the covered entity at the 
                request or suggestion of each such foreign principal.
            (8) A description of any decisions made because of the 
        foreign principal to the structure of the organization or to 
        the research, programs, or content intended to be or actually 
        published, disseminated, or promoted by the covered entity.

SEC. 6. BRIEFINGS, TESTIMONY, OR SIMILAR FORMS OF PRESENTATION OF 
              RESEARCH.

    (a) Labeling of Written Materials.--If a covered entity provides a 
briefing, testimony, or similar form of presentation of research to a 
member or employee of Congress, or to an executive branch official, the 
covered entity shall identify prominently on any written materials 
provided to the member or employee of Congress, or to the executive 
branch official, the name of the relevant foreign principal and the 
country of citizenship, if the foreign principal is not a government, 
who provided funding for such briefing, testimony, or similar form of 
presentation of research.
    (b) Addendum to Briefing, Testimony, Presentation.--In the event 
that no written materials are provided in a briefing, testimony, or 
similar form of presentation of research described in subsection (a), 
the covered entity shall convey the information required under 
subsection (a) in writing to the member or employee of Congress, or 
executive branch official, before or not later than 10 days after the 
date of the briefing, testimony, or presentation.

SEC. 7. RELATION TO OTHER REPORTING REQUIREMENTS.

    (a) State Reports.--
            (1) Requirements of a covered entity.--If a covered entity 
        has its headquarters in a State that has enacted requirements 
        for public disclosure of gifts, donations, or contributions 
        from, or contracts or agreements with, a foreign principal that 
        are substantially similar to the requirements of this Act, a 
        copy of the disclosure report filed with that State may be 
        filed with the Attorney General in lieu of a report required 
        under this Act.
            (2) Requirements of the state.--The State in which a 
        covered entity has its headquarters shall provide to the 
        Attorney General such assurances as the Attorney General may 
        require to establish that the covered entity has met the 
        requirements for public disclosure under State law if the 
        State-mandated disclosure report is filed.
    (b) Federal Reports.--If a covered entity receives a gift, 
donation, or contribution from, or enters into a contract or agreement 
with, a foreign principal, and if any other department, agency, or 
bureau of the executive branch requires a report containing 
requirements substantially similar to those required under this Act, a 
copy of the report may be filed with the Attorney General in lieu of a 
report required under this Act.

SEC. 8. ADMINISTRATION AND ENFORCEMENT.

    (a) Books and Records.--
            (1) Retention period.--For a period of not less than 5 
        years, a covered entity shall retain the necessary materials 
        required to comply with the requirements of this Act, including 
        books of account, all communications with any foreign 
        principal, and other records regarding the activities of the 
        covered entity related to any contracts, memorandum of 
        understandings, or agreements with, or gifts, donations, or 
        contributions from, a foreign principal.
            (2) Inspection.--
                    (A) Attorney general.--Upon request of the Attorney 
                General, each covered entity shall furnish to the 
                Attorney General all information and records in the 
                possession of the covered entity that the Attorney 
                General may determine to be necessary to comply with 
                the requirements under this Act.
                    (B) Congress.--Upon request of Congress or a 
                committee of Congress, a covered entity shall furnish 
                to Congress or the relevant committee of Congress such 
                information and records as Congress or the relevant 
                committee of Congress may request to determine the 
                extent to which the covered entity is in compliance 
                with the requirements of this Act.
            (3) Publication.--Any information or records furnished 
        pursuant to paragraph (2)(A) shall be made available in the 
        database required under subsection (b).
            (4) Prohibition.--It shall be unlawful for any person 
        willfully to conceal, destroy, obliterate, mutilate, or 
        falsify, or to attempt to conceal, destroy, obliterate, 
        mutilate, or falsify, or to cause to be concealed, destroyed, 
        obliterated, mutilated, or falsified, any books or records 
        required to be kept under the provisions of this section.
    (b) Publication.--All disclosure reports required by this Act and 
the information and records required to be furnished pursuant to 
subsection (a)(2)(A) shall be made available to the public through a 
database maintained on the official website of the Department of 
Justice.
    (c) Civil Monetary Penalty.--Any covered entity that fails to 
comply with the requirements of this Act, including any rule or 
regulation promulgated thereunder, shall be subject, in addition to any 
other penalties that may be prescribed by law, to a civil money penalty 
of not less than $1,000 for each day of the failure described by this 
Act--during which the covered entity is in violation of this Act.
    (d) Civil Action.--
            (1) Court orders.--Whenever it appears that a covered 
        entity has failed to comply with the requirements of this Act, 
        including any rule or regulation promulgated under this Act, a 
        civil action may be brought by the Attorney General 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 requirements of this 
        Act.
            (2) Costs.--For knowing or willful failure to comply with 
        the requirements of this Act, including any rule or regulation 
        promulgated thereunder, a covered entity shall pay to the 
        Treasury of the United States the full costs to the United 
        States of obtaining compliance, including all associated costs 
        of investigation and enforcement.
    (e) Regulations.--The Attorney General may promulgate such 
regulations as the Attorney General considers necessary to implement 
the requirements of this Act.

SEC. 9. EFFECTIVE DATE.

    This Act shall take effect on the date that is 120 days after the 
date of enactment of this Act.
                                 &lt;all&gt;
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