I 
118TH CONGRESS 
2D SESSION 
H. R. 8914 
To amend the Internal Revenue Code of 1986 to impose penalties with 
respect to civil rights violations by certain tax-exempt educational institutions. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 2, 2024 
Ms. MALLIOTAKIS (for herself, Ms. STEFANIK, Mr. KUSTOFF, Ms. TENNEY, 
Mr. MURPHY, Mr. KELLY of Pennsylvania, Mr. SCHWEIKERT, Mrs. MIL-
LER of West Virginia, Mrs. FISCHBACH, Mr. MOORE of Utah, and Mr. 
FERGUSON) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
penalties with respect to civil rights violations by certain 
tax-exempt educational institutions. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘University Account-
ability Act’’. 
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SEC. 2. PENALTIES WITH RESPECT TO CIVIL RIGHTS VIOLA-
TIONS 
BY 
CERTAIN 
TAX-EXEMPT 
EDU-
CATIONAL INSTITUTIONS. 
(a) IN GENERAL.—Part I of subchapter B of chapter 
68 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 6720D. CIVIL RIGHTS VIOLATIONS BY CERTAIN TAX- 
EXEMPT EDUCATIONAL INSTITUTIONS. 
‘‘(a) IN GENERAL.—There is hereby imposed a pen-
alty equal to the applicable penalty amount on a specified 
tax-exempt educational institution with respect to each de-
termination of civil rights violation with respect to such 
institution. 
‘‘(b) TIMING OF LIABILITY.— 
‘‘(1) IN GENERAL.—A specified tax-exempt edu-
cational institution shall be liable for the penalty im-
posed under subsection (a) with respect to any de-
termination of civil rights violation on the date of 
the judgment referred to in subsection (c). 
‘‘(2) REVERSAL OF DETERMINATIONS.—In the 
event that any determination of civil rights violation 
is vacated, overturned, or otherwise reversed, the 
Secretary shall refund any penalty paid with respect 
to the determination of civil rights violation. The 
preceding sentence shall not be interpreted to pre-
vent the application of this section with respect to 
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any determination of civil rights violation that is re-
instated or otherwise redetermined following any 
such reversal. 
‘‘(c) DETERMINATION
OF CIVIL RIGHTS VIOLA-
TION.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘determination of 
civil rights violation’ means, with respect to any 
specified tax-exempt educational institution, any civil 
judgment of a Federal court of competent jurisdic-
tion that such institution violated any provision of 
title VI of the Civil Rights Act of 1964. 
‘‘(2) AUTHORITY
TO
TREAT
CERTAIN
JUDG-
MENTS
AS
A
SINGLE
DETERMINATION
OF
CIVIL 
RIGHTS
VIOLATION.—If the Secretary determines 
that two or more judgments are based on the same 
set of facts and circumstances, such judgments shall 
be treated as a single determination of civil rights 
violation for purposes of this section, section 501(s), 
and such provisions of section 6033(o) as the Sec-
retary determines appropriate. 
‘‘(d) APPLICABLE PENALTY AMOUNT.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘applicable pen-
alty amount’ means, with respect to each determina-
tion of civil rights violation made with respect to any 
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specified tax-exempt educational institution, the 
greater of— 
‘‘(A) $100,000, or 
‘‘(B) in the case of an institution subject 
to the requirements of section 6033(a), 5 per-
cent of the aggregate administrative compensa-
tion paid by such specified tax-exempt edu-
cational institution during the taxable year in 
which such violation occurred. 
‘‘(2) ADMINISTRATIVE
COMPENSATION.—The 
term ‘administrative compensation’ means, with re-
spect to any specified tax-exempt educational institu-
tion, the compensation and other payments de-
scribed in section 6033(b)(7) made by such institu-
tion. 
‘‘(e) SPECIFIED TAX-EXEMPT EDUCATIONAL INSTI-
TUTION.—For purposes of this section, the term ‘specified 
tax-exempt educational institution’ means any eligible edu-
cational institution (as defined in section 25A(f)(2)) which 
is described in section 501(c) or section 511(a)(2)(B). 
‘‘(f) WAIVER OF LIMITATIONS ON ASSESSMENT AND 
REFUND.—Sections 6501 and 6511 shall not apply to any 
penalty imposed under subsection (a) or refund made 
under subsection (b)(2).’’. 
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(b) MANDATORY REVIEW OF EXEMPT STATUS UPON 
REPEATED CIVIL RIGHTS VIOLATIONS.—Section 501 of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(s) MANDATORY REVIEW OF EXEMPT STATUS OF 
CERTAIN EDUCATIONAL INSTITUTIONS WITH REPEATED 
CIVIL RIGHTS VIOLATIONS.—Upon any determination of 
civil right violation (as defined in section 6720D(c)) with 
respect to any specified tax-exempt educational institution 
(as defined in section 6720D(e)), if such determination is 
not one of the first 2 such determinations (made after the 
date of the enactment of this subsection) with respect to 
such institution, the Secretary shall conduct a review to 
determine if such institution remains an organization de-
scribed in subsection (c) which is entitled to exemption 
from tax under subsection (a). Any determination which 
is vacated, overturned, or otherwise reversed shall not be 
taken into account under the preceding sentence (unless 
subsequently reinstated or otherwise redetermined).’’. 
(c) REPORTING BY SPECIFIED TAX-EXEMPT EDU-
CATIONAL INSTITUTIONS OF DETERMINATIONS OF CIVIL 
RIGHTS VIOLATION.—Section 6033 of such Code is 
amended by redesignating subsection (o) as subsection (p) 
and by inserting after subsection (n) the following new 
subsection: 
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‘‘(o) ADDITIONAL PROVISIONS RELATING TO SPECI-
FIED TAX-EXEMPT EDUCATIONAL INSTITUTIONS.— 
‘‘(1) IN GENERAL.—Every specified tax-exempt 
educational institution (as defined in section 
6720D(c)) which is subject to the requirements of 
subsection (a) shall, on the return required under 
subsection (a) for the taxable year, include the fol-
lowing: 
‘‘(A) With respect to each determination of 
civil rights violation (as defined in section 
6720D(c)) made with respect to such institu-
tion during such taxable year: 
‘‘(i) A description of such determina-
tion (including the date of such determina-
tion) and of the civil rights violation to 
which such determination relates. 
‘‘(ii) The number of determinations of 
civil rights violation (determined by dis-
regarding determinations not taken into 
account under the last sentence of section 
501(s)) made with respect to such institu-
tion before such determination (and after 
the date of the enactment of this sub-
section). 
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‘‘(iii) Such other information as the 
Secretary may require. 
‘‘(B) With respect to each determination of 
civil rights violation (as defined in section 
6720D(c)) which is vacated, overturned, or oth-
erwise reversed during such taxable year: 
‘‘(i) A description of the order or 
judgment which so reversed such deter-
mination, including the date of such order 
or judgment. 
‘‘(ii) The information described in 
subparagraph (A)(i) with respect to the de-
termination so reversed. 
‘‘(iii) Such other information as the 
Secretary may require. 
‘‘(2) APPLICATION TO STATE COLLEGES AND 
UNIVERSITIES.—Every specified tax-exempt edu-
cational institution (as defined in section 6720D(c)) 
which is described in section 511(a)(2)(B) shall, for 
any taxable year with respect to which there is a de-
termination of civil rights violation described in sub-
paragraph (A) or (B) of paragraph (1) with respect 
to such institution, file an annual return that con-
tains the information described in such subpara-
graphs. The penalties applicable to returns required 
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under subsection (a) shall apply to returns required 
under this paragraph.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for part I of subchapter B of chapter 68 of such Code 
is amended by adding at the end the following new item: 
‘‘Sec. 6720D. Civil rights violations by certain tax-exempt educational institu-
tions.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply with respect to determinations 
of civil rights violation made after the date of the enact-
ment of this Act. 
Æ 
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