Think Tank Transparency Act

Bill: 118-hr-1438
Sponsor: full_name: Rep. Bergman, Jack [R-MI-1]
Introduced: 2023-03-08
Policy area: International Affairs
Latest action: action_date: 2023-03-08
text: Referred to the House Committee on the Judiciary.

Summaries:
action_date: 2023-03-08
action_desc: Introduced in House
text: <p class="MsoNormal"><b>Think Tank Transparency Act</b> </p> <p class="MsoNormal">This bill requires certain nonprofit organizations to file a disclosure report with the Department of Justice (DOJ) after (1) receiving a gift, donation, or contribution of $10,000 or more in a calendar year from foreign governments, entities, or individuals; or (2) entering into or modifying a contract or agreement with such foreign sources. These disclosure reports shall be available to the public on the DOJ website.</p> <p class="MsoNormal">Generally, these requirements shall apply to certain nonprofit organizations that (1) seek to influence U.S. public policy or public opinion; (2) engage in or publish substantial policy-related research or scholarship; or (3) regularly promote events featuring reporters, journalists, or government officials.</p> <p class="MsoNormal">Furthermore, if such a nonprofit organization presents research (e.g., briefings or testimony) that was funded by a foreign source to Members of Congress, congressional employees, or executive branch officials, that foreign source must be prominently identified on any presented written materials.<br> <br> The bill permits the DOJ to bring a civil action against an organization to compel compliance. </p>

tv_txt: I 118th CONGRESS 1st Session H. R. 1438 IN THE HOUSE OF REPRESENTATIVES March 8, 2023 Mr. Bergman introduced the following bill; which was 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.

1. Short title This Act may be cited as the Think Tank Transparency Act . 2. Findings Congress finds the following: (1) Think tanks have provided Congress and the Administration with a wealth of research and scholarship that largely has benefitted the American public by improving the drafting, enactment, and enforcement of U.S. policy. (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 Administration, and especially the American people have a right to know which think tanks receive foreign funds and to assess for themselves the extent that foreign influence should be considered when analyzing the credibility and value of research and scholarship produced by such organizations that receive foreign funds. (5) The House has already recognized the national security issues inherent in undue foreign influence of entities with covert sources of foreign funding who testify before Congress. Since 2015, individuals who testify before the U.S. House of Representatives have been required to disclose relevant foreign funding sources directed to them or their employers in Truth in Testimony disclosure forms. (The original looser requirement was enacted in 1997). (6) Over 30 years ago, Congress enacted section 117 of the Higher Education Act of 1965 (HEA) in light of concerns about the growing financial relationship between U.S. universities and foreign sources. Congress balanced academic freedom and national security by mandating financial transparency through required reporting of contracts with and gifts from a foreign source. (7) Section 117 does not prohibit institutions from taking foreign money; it mandates accurate and transparent disclosures of sources and amounts to the Department of Education. In 2019, the Department 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, Russia has given at least $160 million to U.S. universities. China alone has given at least $2.7 billion during the same time frame. And during that span, the State of Qatar has given at least $5 billion to U.S. universities. (9) Each of these nations has a repressive and deeply troubling record on human rights, and all three have engaged in cyber espionage targeting Americans. (10) Russia, China, and Qatar all pose grave threats to U.S. national security interests, yet they have successfully lavished billions of dollars to cultivate strong ties with institutions of higher education and research across the United States. (11) There is also evidence suggesting that Qatar encouraged and potentially facilitated U.S. universities receiving its largess to flout U.S. disclosure requirements under section 117 of the Higher Education Act. (12) Although the Center for International Policy conducted a study in 2020 that concluded that think tanks focused on Federal policy received at least $174 million 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 such think tanks. (13) While the exact amount of foreign funding that U.S. based think tanks receive is unknown, it is clear that the foreign sources would not provide that level of funding unless it impacted think tanks' policy recommendations. (14) One prominent think tank, the East West Institute, received substantial funding from China’s People’s Liberation Army, which conducts cyber espionage attacks, including against Americans. After the East West Institute was dissolved in 2021, the Stimson Center took over several of the think tank's key programs involving China. (15) The Stimson Center worked to significantly alter the Homeland and Cyber Threat Act (H.R. 1607, introduced into the 117th Congress on March 8, 2021). The HACT Act, which would provide an exception to the Foreign Sovereign Immunities Act of 1976 (FSIA) to allow U.S. persons harmed by foreign-government sponsored cyberattacks to bring civil claims for damages, passed in the last Congress with broad bipartisan support. The changes advocated by the Stimson Center would gut the bill and render it completely ineffective in holding foreign nations and their agents responsible for cyberattacks on and in the United States. (16) One of the main sources of the Stimson Center’s funding is the State of Qatar, a major sponsor of terrorism worldwide and one of the most notorious sponsors of cyberattacks against U.S. entities. In 2019 alone, the Stimson Center took over $600,000 in contributions from the Government of Qatar. (17) The Brookings Institution has received at least $22 million from the State of Qatar from 2013 through 2021, but the exact amount has not been disclosed publicly. (18) There is also 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 American public would otherwise believe to be independent. (19) In a 2007 “Establishment Agreement” between the Brookings Institution and Qatar’s Ministry of Foreign Affairs—which appears to have been in place in its original form through the end of 2021—the Doha “branch” of the Brookings Institution, called Brookings Doha Center, was effectively owned and controlled by the Emir of Qatar. Under the terms of the contract, the Brookings Institution’s role in the Doha Center was limited to that of a “Promoter”. (20) As only revealed publicly in June 2022, the Brookings Doha Center was a separate and distinct legal entity, specifically a Private Foundation for the Public Benefit, the same incorporation status as the State of Qatar’s propaganda arm, Al Jazeera. (21) Pursuant to the 2007 Establishment Agreement, the Director of the Brookings Doha Center was required to report directly to Qatar’s Ministry of Foreign Affairs, including to “engage in regular consultation … regarding the development and ongoing operations” and for prior approval of “programs that will be developed by the [Brookings Doha] Center”. (22) The Brookings Doha Center was renamed the Middle East Council on Global Affairs, and evidence indicates that it is now entirely under the control of the Qatari Government. According to a January 2022 “Amendment” to the 2007 Articles of Incorporation, the Brookings Institution ceded the “Promoter” role for Brookings Doha Center to a senior employee of Qatar’s Ministry of Foreign Affairs, Majed Al-Ansari. This Amendment also called on the Middle East Council to assume control of intellectual property rights that had been under the “Brookings” brand, including the content from and followers of the “@BrookingsDoha” Twitter account. (23) Congress currently is unable to determine what other agreements that the Brookings Institution or other influential think tanks have with foreign governmental entities, a void which has already been exploited by at least the State of Qatar in obtaining prior approval of budgets and research projects conducted under the branding of the Brookings Institution and the Brookings Doha Center in the aforementioned 2007 contract, or the transference of valuable intellectual property to the Qatari Government pursuant to the 2022 amendment. (24) 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 U.S. public policy or public opinion. (25) 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 U.S. policies or public opinion. 3. Contemporaneous disclosure reports (a) Reporting conditions (1) Gifts, donations, or contributions (A) In general Except as provided in section 6, 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 6, 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 formation 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. 4. Initial disclosure reports (a) In general A covered entity shall file an initial disclosure report, in accordance with subsections (b) or (c), with the Attorney General within 180 days of the date of enactment of this Act if, during the period beginning on January 1st of the most recent calendar year which ended before the date of enactment of this Act and ending on the effective date of this Act— (1) such covered entity received a gift, donation, or contribution from a foreign principal in an aggregate amount of $10,000 or greater; (2) such covered entity entered into or modified a contract, memorandum of understanding, or agreement with a foreign principal; or (3) such 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 which 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. 5. 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 an executive branch official, such covered entity shall identify prominently on any written materials 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, 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 within 10 days after the briefing, testimony, or presentation. 6. Relation to Other Reporting Requirements (a) State reports (1) Requirements of a covered entity If a covered entity is within a State which 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 the 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 the covered entity is located 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 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, if any other department, agency, or bureau of the executive branch requires a report containing requirements substantially similar to those required under this section, a copy of the report may be filed with the Attorney General in lieu of a report required under this Act. 7. 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 the foreign principal, and other records regarding its activities 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 its possession which 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 committee such information and records as Congress or the committee 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 (a). (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 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 no less than $1,000 for each day of the failure described by 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 regulations to carry out this Act. 8. 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 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 reference to formulating, adopting, or changing the domestic or foreign policies of the United States or with reference to 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 its resources 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 sub-unit of an institution subject to section 117 of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ) 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 U.S. or foreign government officials; and (B) excludes— (i) an institution subject to section 117 of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ); 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 and a foreign political party; (B) a person outside of the United States, unless it is established that such person is an individual and a citizen of the United States, or that such person 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 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 which 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 U.S. government officials, the media, or the public; or (D) any other condition or expectation regarding either the foreign principal’s ability 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. 9. Effective date This Act shall take effect on the date that is 120 days following the date of enactment.