I 117th CONGRESS 2d Session H. R. 9226 IN THE HOUSE OF REPRESENTATIVES October 25, 2022 Mr. Cleaver introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committee on Education and Labor , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Higher Education Act of 1965 to require annual reporting on assets of institutions of higher education.

1. Short title This Act may be cited as the Endowment Transparency Act . 2. Reporting on assets of institutions of higher education (a) Consumer information (1) Asset reporting Section 132(i)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1015a(i)(1) ) is amended by adding at the end the following: (AA) (i) The total assets of the institution that are managed— (I) by an investment adviser, disaggregated by asset class; or (II) by a minority- or women-owned investment adviser, disaggregated by asset class and race of the investment adviser. (ii) With respect to investment advisers employed by the institution, the number of such investment advisers, disaggregated by gender and race. (iii) The percent of bond issuances by the institution that are underwritten by minority- or women-owned asset management firms. (iv) In this subparagraph— (I) the term investment adviser has the meaning given that term under section 202(a) of the Investment Advisers Act of 1940; (II) the term minority has the meaning given that term under section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989; and (III) the term minority- or women-owned , when used with respect to an investment adviser or an asset management firm, means an investment adviser or an asset management firm which— (aa) is owned more than 50 percent by one or more individuals who are women or minorities; and (bb) is managed by, and the daily business operations of which are controlled by, one or more individuals who are women or minorities. . (2) Data collection Section 132(i)(4) of the Higher Education Act of 1965 ( 20 U.S.C. 1015a(i)(4) ) is amended— (A) by striking The Commissioner and inserting the following: (A) In general The Commissioner ; and (B) by adding at the end the following: (B) Rules for asset reporting With respect to the information described in clauses (i), (ii), and (iii) of paragraph (1)(AA), the Secretary of Education (acting through the Commissioner for Education Statistics), the Securities and Exchange Commission, and the Under Secretary of Commerce for Minority Business Development shall, jointly, issue rules to establish a standardized form and manner for collecting and reporting such information. . (b) Analysis and report by the Minority Business Development Agency (1) In general After the end of the 1-year period beginning on the date that information is first reported under subparagraph (AA) of section 132(i)(1) of the Higher Education Act of 1965, the Under Secretary of Commerce for Minority Business Development shall, in consultation with representatives from industry (including minority- or women-owned investment advisers and minority- or women-owned asset management firms)— (A) analyze all information reported under that subparagraph (AA); and (B) issue a report to the Congress, and make such report available to the public, containing— (i) any recommended best practices the Under Secretary may have for substantially increasing the use of minority- or women-owned investment advisers and minority- or women-owned asset management firms in the investment and bond transactions of institutions of higher education; and (ii) any recommendations the Under Secretary may have for regulatory or legislative changes to increase the use of such advisers and firms. (2) Updated reports The Under Secretary of Commerce for Minority Business Development shall update the report required under paragraph (1)(B) every 2 years. 3. MBDA Conference (a) In general The Under Secretary of Commerce for Minority Business Development shall, every 5 years, convene a conference of institutions of higher education, minority- or women-owned investment advisers, minority- or women-owned asset management firms, and investment consultants to help those institutions, advisers, and firms to share best practices for investment and bond transactions, including increasing opportunities for such advisers and asset management firms, and learn about the benefits of using such advisers and firms for investment and bond transactions. (b) Authorization of appropriations There is authorized to be appropriated to the Under Secretary of Commerce for Minority Business Development $1,000,000 to carry out this section.