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 two years.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4405 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 4405
To amend the Higher Education Act of 1965 to require annual reporting
on assets of institutions of higher education.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 2023
Mr. Cleaver introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Education and the Workforce, 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) of the Higher
Education Act of 1965 (20 U.S.C. 1015a(i)(1)) is amended--
(A) by redesignating paragraphs (2) through (6) as
paragraphs (3) through (7); and
(B) by adding after paragraph (1) the following:
``(2) Assets.--
``(A) In general.--Not later than one year after
the date of enactment of the Endowment Transparency
Act, the Secretary shall make publicly available on the
College Navigator website, in simple and understandable
terms, the following information about each institution
of higher education that participates in programs under
title IV, for the most recent academic year for which
satisfactory data are available:
``(i) The total assets of the institution
that are managed--
``(I) by an investment adviser,
disaggregated by asset class; and
``(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
those 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.
``(B) Definitions.--In this paragraph--
``(i) the term `investment adviser' has the
meaning given the term in section 202(a) of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-
2(a));
``(ii) the term `minority' has the meaning
given the term under section 308(b) of the
Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note);
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
that--
``(I) is owned more than 50 percent
by 1 or more individuals who are women
or minorities; and
``(II) is managed by, and the daily
business operations of which are
controlled by, 1 or more individuals
who are women or minorities.''.
(2) Technical amendments.--Section 132(i) of the Higher
Education Act of 1965 (20 U.S.C. 1015a(i)(4)) is amended--
(A) in paragraph (3), as redesignated by paragraph
(1), by striking ``paragraph (1)'' and inserting
``paragraphs (1) and (2)'';
(B) in paragraph (4), as redesignated by paragraph
(1), by striking ``paragraph (1)'' and inserting
``paragraphs (1) and (2)''; and
(C) in paragraph (6)(A), as redesignated by
paragraph (1)--
(i) in clause (iii) by striking ``paragraph
(6)'' and inserting ``paragraph (7)'' each
place the term appears; and
(ii) in clause (vi) by striking ``paragraph
(1)'' and inserting ``paragraphs (1) and (2)''.
(3) Data collection.--Paragraph (5) of section 132(i) of
the Higher Education Act of 1965 (20 U.S.C. 1015a(i)(4)), as
redesignated by paragraph (1), 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 (2)(A), 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.''.
(4) Rule of construction.--Nothing in the amendments made
by this section may be construed to limit the authority of the
Secretary of Education to collect additional diversity
information not specifically described in the amendments made
by this section.
(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
section 132(i)(2) of the Higher Education Act of 1965 (as added
by subsection (a)), 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
paragraph (2); 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) Definitions.--In this subsection, the terms
``investment advisor'', ``minority'' and ``minority- or women-
owned'' have the meaning give those terms in section 132(i)(2)
of the Higher Education Act of 1965 (as added by subsection
(a)).
SEC. 3. MBDA CONFERENCE.
(a) In General.--The Under Secretary of Commerce for Minority
Business Development shall, in consultation with the Secretary of
Education, every 2 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) Definitions.--In this section, the terms ``investment
advisor'', ``minority'' and ``minority- or women-owned'' have the
meaning give those terms in section 132(i)(2) of the Higher Education
Act of 1965 (as added by section 2(a)).
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Under Secretary of Commerce for Minority Business
Development $3,000,000 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 the Workforce, 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 the Workforce, 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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