Endowment Transparency Act
This bill requires certain actions regarding institutions of higher education (IHEs) and the management of their assets.
Specifically, the bill requires the Department of Education to annually update the College Navigator website with information on the assets of IHEs, including information about investments with minority- or women-owned firms.
The bill also requires the Minority Business Development Agency to (1) report on recommended changes for substantially increasing the use of minority- or women-owned firms in the investment and bond transactions of IHEs, and (2) convene a conference every five years.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9226 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9226
To amend the Higher Education Act of 1965 to require annual reporting
on assets of institutions of higher education.
_______________________________________________________________________
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.
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 ``Endowment Transparency Act''.
SEC. 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.
SEC. 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.
<all>
Introduced in House
Introduced in House
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.
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.
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