IB 
Union Calendar No. 729 
118TH CONGRESS 
2D SESSION 
H. R. 8914 
[Report No. 118–894] 
To amend the Internal Revenue Code of 1986 to impose penalties with 
respect to civil rights violations by certain tax-exempt educational institutions. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 2, 2024 
Ms. MALLIOTAKIS (for herself, Ms. STEFANIK, Mr. KUSTOFF, Ms. TENNEY, 
Mr. MURPHY, Mr. KELLY of Pennsylvania, Mr. SCHWEIKERT, Mrs. 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 
DECEMBER 17, 2024 
Additional sponsors: Mr. SMITH of Nebraska, Mrs. HOUCHIN, and Mr. 
D’ESPOSITO 
DECEMBER 17, 2024 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 2, 2024] 
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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. 
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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’’. 
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 penalty 
equal to the applicable penalty amount on a specified tax- 
exempt educational institution with respect to each deter-
mination of civil rights violation with respect to such insti-
tution. 
‘‘(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 deter-
mination of civil rights violation on the date of the 
judgment referred to in subsection (c). 
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‘‘(2) REVERSAL
OF
DETERMINATIONS.—In the 
event that any determination of civil rights violation 
is vacated, overturned, or otherwise reversed, the Sec-
retary shall refund any penalty paid with respect to 
the determination of civil rights violation. The pre-
ceding sentence shall not be interpreted to prevent the 
application of this section with respect to any deter-
mination of civil rights violation that is reinstated or 
otherwise redetermined following any such reversal. 
‘‘(c) DETERMINATION OF CIVIL RIGHTS VIOLATION.— 
For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘determination of 
civil rights violation’ means, with respect to any spec-
ified tax-exempt educational institution, any civil 
judgment of a Federal court of competent jurisdiction 
that such institution violated any provision of title VI 
of the Civil Rights Act of 1964. 
‘‘(2) AUTHORITY TO TREAT CERTAIN JUDGMENTS 
AS A SINGLE DETERMINATION OF CIVIL RIGHTS VIOLA-
TION.—If the Secretary determines that two or more 
judgments are based on the same set of facts and cir-
cumstances, such judgments shall be treated as a sin-
gle determination of civil rights violation for purposes 
of this section, section 501(s), and such provisions of 
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section 6033(o) as the Secretary determines appro-
priate. 
‘‘(d) APPLICABLE PENALTY AMOUNT.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘applicable penalty 
amount’ means, with respect to each determination of 
civil rights violation made with respect to any speci-
fied 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 percent of 
the aggregate administrative compensation paid 
by such specified tax-exempt educational institu-
tion during the taxable year in which such viola-
tion 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 described 
in section 6033(b)(7) made by such institution. 
‘‘(e) SPECIFIED TAX-EXEMPT EDUCATIONAL INSTITU-
TION.—For purposes of this section, the term ‘specified tax- 
exempt educational institution’ means any eligible edu-
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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).’’. 
(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 rights 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 deter-
mine if such institution remains an organization described 
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 ac-
count under the preceding sentence (unless subsequently re-
instated or otherwise redetermined).’’. 
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(c) REPORTING
BY SPECIFIED TAX-EXEMPT EDU-
CATIONAL INSTITUTIONS OF DETERMINATIONS OF CIVIL 
RIGHTS VIOLATION.—Section 6033 of such Code is amend-
ed by redesignating subsection (o) as subsection (p) and by 
inserting after subsection (n) the following new subsection: 
‘‘(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 sub-
section (a) shall, on the return required under sub-
section (a) for the taxable year, include the following: 
‘‘(A) With respect to each determination of 
civil rights violation (as defined in section 
6720D(c)) made with respect to such institution 
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 ac-
count under the last sentence of section 
501(s)) made with respect to such institu-
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tion before such determination (and after 
the date of the enactment of this subsection). 
‘‘(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 other-
wise reversed during such taxable year: 
‘‘(i) A description of the order or judg-
ment which so reversed such determination, 
including the date of such order or judg-
ment. 
‘‘(ii) The information described in sub-
paragraph (A)(i) with respect to the deter-
mination so reversed. 
‘‘(iii) Such other information as the 
Secretary may require. 
‘‘(2) APPLICATION TO STATE COLLEGES AND UNI-
VERSITIES.—Every specified tax-exempt educational 
institution (as defined in section 6720D(c)) which is 
described in section 511(a)(2)(B) shall, for any tax-
able year with respect to which there is a determina-
tion of civil rights violation described in subpara-
graph (A) or (B) of paragraph (1) with respect to 
such institution, file an annual return that contains 
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