Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act or the DETERRENT Act
This bill expands oversight and disclosure requirements related to foreign sources and institutions of higher education (IHEs).
Specifically, the bill requires an IHE to annually disclose to the Department of Education (ED) any year in which the IHE
Additionally, the bill
The bill requires ED to investigate possible violations of this bill and outlines the various penalties for each violation. Penalties may include losing eligibility for federal student financial aid.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1048 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1048
To amend the Higher Education Act of 1965 to strengthen disclosure
requirements relating to foreign gifts and contracts, to prohibit
contracts between institutions of higher education and certain foreign
entities and countries of concern, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2025
Mr. Baumgartner (for himself, Mr. Messmer, Mr. Owens, Mr. Allen, Mr.
Kiley of California, Mr. Walberg, Mr. Wilson of South Carolina, Mr.
Rulli, Ms. Foxx, and Mr. Grothman) introduced the following bill; which
was referred to the Committee on Education and Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to strengthen disclosure
requirements relating to foreign gifts and contracts, to prohibit
contracts between institutions of higher education and certain foreign
entities and countries of concern, and for other purposes.
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 ``Defending Education Transparency and
Ending Rogue Regimes Engaging in Nefarious Transactions Act'' or the
``DETERRENT Act''.
SEC. 2. DISCLOSURES OF FOREIGN GIFTS.
(a) In General.--Section 117 of the Higher Education Act of 1965
(20 U.S.C. 1011f) is amended to read as follows:
``SEC. 117. DISCLOSURES OF FOREIGN GIFTS.
``(a) Disclosure Reports.--
``(1) Aggregate gifts and contract disclosures.--An
institution shall file with the Secretary, in accordance with
subsection (b)(1), a disclosure report on July 31 of the
calendar year immediately following any calendar year in
which--
``(A) the institution receives a gift from, or
enters into a contract with, a foreign source (other
than a foreign country of concern or foreign entity of
concern)--
``(i) the value of which is $50,000 or
more, considered alone or in combination with
all other gifts from, or contracts with, that
foreign source within the calendar year; or
``(ii) the value of which is undetermined;
or
``(B) the institution--
``(i) receives a gift from a foreign
country of concern or foreign entity of
concern; or
``(ii) upon receiving a waiver under
section 117A to enter into a contract with such
a country or entity, enters into such contract,
without regard to the value of such gift or
contract.
``(2) Foreign source ownership or control disclosures.--
Notwithstanding paragraph (1), in the case of an institution
that is substantially controlled (as described in section
668.174(c)(3) of title 34, Code of Federal Regulations) (or
successor regulations)) by a foreign source, the institution
shall file with the Secretary, in accordance with subsection
(b)(2), a disclosure report on July 31 of each year.
``(3) Treatment of affiliated entities.--For purposes of
this section, any gift to, or contract with, an affiliated
entity of an institution shall be considered a gift to, or
contract with, respectively, such institution.
``(b) Contents of Report.--
``(1) Gifts and contracts.--Each report to the Secretary
required under subsection (a)(1) shall contain the following:
``(A) With respect to a gift received from, or a
contract entered into with, any foreign source--
``(i) the terms of such gift or contract,
including--
``(I) the name of the individual,
department, or other entity at the
institution receiving the gift or
carrying out the contract on behalf of
the institution;
``(II) the foreign source's
intended purpose of such gift or
contract, or, in the absence of such a
purpose, the manner in which the
institution intends to use such gift or
contract; and
``(III) in the case of a restricted
or conditional gift or contract, a
description of the restrictions or
conditions of such gift or contract;
``(ii) with respect to a gift--
``(I) the total fair market dollar
amount or dollar value of the gift, as
of the date of submission of such
report; and
``(II) the date on which the
institution received such gift;
``(iii) with respect to a contract--
``(I) the total fair market dollar
amount or dollar value of the contract,
as of the date of submission of such
report;
``(II) the date on which the
institution enters into such contract;
``(III) the date on which such
contract first takes effect;
``(IV) as applicable, the date on
which such contract terminates; and
``(V) an assurance that the
institution will--
``(aa) maintain an
unredacted copy of the contract
until the latest of--
``(AA) the date
that is 5 years after
the date on which such
contract first takes
effect;
``(BB) the date on
which the contract
terminates; or
``(CC) the last day
of any period that
applicable State law
requires a copy of such
contract to be
maintained; and
``(bb) upon request of the
Secretary during an
investigation under section
117D(a)(1), produce such an
unredacted copy of the
contract; and
``(iv) an assurance that in a case in which
information is required to be disclosed under
this section with respect to a gift or contract
that is not in English, such information is
translated into English in accordance with
subsection (c).
``(B) With respect to a gift received from, or a
contract entered into with, a foreign source that is a
foreign government (other than the government of a
foreign country of concern)--
``(i) the name of such foreign government;
``(ii) the department, agency, office, or
division of such foreign government that
approved such gift or contract, as applicable;
and
``(iii) the physical mailing address of
such department, agency, office, or division.
``(C) With respect to a gift received from, or
contract entered into with, a foreign source (other
than a foreign government subject to the requirements
of subparagraph (B))--
``(i) the legal name of the foreign source,
or, if such name is not available, a statement
certified by the compliance officer in
accordance with section 117D(c) that the
institution has reasonably attempted to obtain
such name;
``(ii) in the case of a foreign source that
is a natural person, the country of citizenship
of such person, or, if such country is not
known, the principal country of residence of
such person;
``(iii) in the case of a foreign source
that is a legal entity, the country in which
such entity is incorporated, or, if such
information is not available, the principal
place of business of such entity;
``(iv) the physical mailing address of such
foreign source, or, if such address is not
available, a statement certified by the
compliance officer in accordance with section
117D(c) that the institution has reasonably
attempted to obtain such address; and
``(v) any affiliation of the foreign source
to an organization that is designated as a
foreign terrorist organization pursuant to
section 219 of the Immigration and Nationality
Act (8 U.S.C. 1189).
``(D) With respect to a contract entered into with
a foreign source that is a foreign country of concern
or a foreign entity of concern--
``(i) a complete and unredacted text of the
original contract, and if such original
contract is not in English, a translated copy
in accordance with subsection (c);
``(ii) a copy of the waiver received under
section 117A for such contract; and
``(iii) the statement submitted by the
institution for purposes of receiving such a
waiver under section 117A(b)(2).
``(2) Foreign source ownership or control.--Each report to
the Secretary required under subsection (a)(2) shall contain--
``(A) the legal name and address of the foreign
source that owns or controls the institution;
``(B) the date on which the foreign source assumed
ownership or control; and
``(C) any changes in program or structure resulting
from the change in ownership or control.
``(c) Translation Requirements.--Any information required to be
disclosed under this section with respect to a gift or contract that is
not in English shall be translated, for purposes of such disclosure, by
a person that is not an affiliated entity or agent of the foreign
source involved with such gift or contract.
``(d) Public Inspection.--
``(1) Database requirement.--Beginning not later than May
31 of the calendar year following the date of enactment of the
DETERRENT Act, the Secretary shall--
``(A) establish and maintain a searchable database
on a website of the Department, under which all reports
submitted under this section (including any report
submitted under this section before the date of
enactment of the DETERRENT Act)--
``(i) are made publicly available (in
electronic and downloadable format), including
any information provided in such reports (other
than the information prohibited from being
publicly disclosed pursuant to paragraph (2));
``(ii) can be individually identified and
compared; and
``(iii) are searchable and sortable--
``(I) by the institution that filed
such report;
``(II) by the date on which the
institution filed such report;
``(III) by the date on which the
institution received the gift which is
the subject of the report;
``(IV) by the date on which the
institution enters into the contract
which is the subject of the report;
``(V) by the date on which such
contract first takes effect;
``(VI) by the attributable country
of such gift or contract;
``(VII) by the name of the foreign
source (other than a foreign source
that is a natural person);
``(VIII) by the information
described in subparagraph (C)(i); and
``(IX) by the information described
in subparagraph (C)(ii);
``(B) not later than 30 days after receipt of a
disclosure report under this section, include such
report in such database;
``(C) indicate, as part of the public record of a
report included in such database, whether the report is
with respect to a gift received from, or a contract
entered into with--
``(i) a foreign source that is a foreign
government; or
``(ii) a foreign source that is not a
foreign government; and
``(D) with respect to a disclosure report that does
not include the name or address of a foreign source,
indicate, as part of the public record of such report
included in such database, that such report did not
include such information.
``(2) Name and address of foreign source.--The Secretary
shall not disclose the name or address of a foreign source that
is a natural person (other than the attributable country of
such foreign source) included in a disclosure report--
``(A) as part of the public record of such
disclosure report described in paragraph (1); or
``(B) in response to a request under section 552 of
title 5, United States Code (commonly known as the
`Freedom of Information Act'), pursuant to subsection
(b)(3) of such section.
``(e) Interagency Information Sharing.--Not later than 30 days
after receiving a disclosure report from an institution in compliance
with this section, the Secretary shall transmit an unredacted copy of
such report (that includes the name and address of a foreign source
disclosed in such report) to the Director of the Federal Bureau of
Investigation, the Director of National Intelligence, the Director of
the Central Intelligence Agency, the Secretary of State, the Secretary
of Defense, the Attorney General, the Secretary of Commerce, the
Secretary of Homeland Security, the Secretary of Energy, the Director
of the National Science Foundation, and the Director of the National
Institutes of Health.
``(f) Definitions.--In this section:
``(1) Affiliated entity.--The term `affiliated entity',
when used with respect to an institution, means an entity or
organization that operates primarily for the benefit of, or
under the auspices of, such institution, including a foundation
of the institution or a related entity (such as any
educational, cultural, or language entity).
``(2) Attributable country.--The term `attributable
country' means--
``(A) the country of citizenship of a foreign
source who is a natural person, or, if such country is
unknown, the principal residence (as applicable) of
such foreign source; or
``(B) the country of incorporation of a foreign
source that is a legal entity, or, if such country is
unknown, the principal place of business (as
applicable) of such foreign source.
``(3) Contract.--The term `contract'--
``(A) means--
``(i) any agreement for the acquisition by
purchase, lease, or barter of property or
services by the foreign source;
``(ii) any affiliation, agreement, or
similar transaction with a foreign source that
involves the use or exchange of an
institution's name, likeness, time, services,
or resources; and
``(iii) any agreement for the acquisition
by purchase, lease, or barter, of property or
services from a foreign source (other than an
arms-length agreement for such acquisition from
a foreign source that is not a foreign country
of concern or a foreign entity of concern); and
``(B) does not include an agreement made between an
institution and a foreign source regarding any payment
of one or more elements of a student's cost of
attendance (as such term is defined in section 472),
unless such an agreement is made for more than 15
students or is made under a restricted or conditional
contract.
``(4) Foreign source.--The term `foreign source' means--
``(A) a foreign government, including an agency of
a foreign government;
``(B) a legal entity, governmental or otherwise,
created under the laws of a foreign state or states;
``(C) a legal entity, governmental or otherwise,
substantially controlled (as described in section
668.174(c)(3) of title 34, Code of Federal Regulations)
(or successor regulations)) by a foreign source;
``(D) a natural person who is not a citizen or a
national of the United States or a trust territory or
protectorate thereof;
``(E) an agent of a foreign source, including--
``(i) a subsidiary or affiliate of a
foreign legal entity, acting on behalf of a
foreign source;
``(ii) a person that operates primarily for
the benefit of, or under the auspices of, a
foreign source, including a foundation or a
related entity (such as any educational,
cultural, or language entity); and
``(iii) a person who is an agent of a
foreign principal (as such term is defined in
section 1 of the Foreign Agents Registration
Act of 1938 (22 U.S.C. 611); and
``(F) an international organization (as such term
is defined in the International Organizations
Immunities Act (22 U.S.C. 288)).
``(5) Gift.--The term `gift'--
``(A) means any gift of money, property, resources,
staff, or services; and
``(B) does not include--
``(i) any payment of one or more elements
of a student's cost of attendance (as such term
is defined in section 472) to an institution
by, or scholarship from, a foreign source who
is a natural person, acting in their individual
capacity and not as an agent for, at the
request or direction of, or on behalf of, any
person or entity (except the student), made for
not more than 15 students, and that is not made
under a restricted or conditional contract with
such foreign source; or
``(ii) assignment or license of registered
industrial and intellectual property rights,
such as patents, utility models, trademarks, or
copyrights, or technical assistance, that are
not associated with a category listed in the
Commerce Control List maintained by the Bureau
of Industry and Security of the Department of
Commerce and set forth in Supplement No. 1 to
part 774 of title 15, Code of Federal
Regulations (or successor regulations); or
``(iii) decorations (as such term is
defined in section 7342(a) of title 5, United
States Code).
``(6) 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, or termination of
faculty;
``(B) the establishment of departments, centers,
institutes, instructional programs, research or lecture
programs, or new faculty positions;
``(C) the selection, admission, or education of
students;
``(D) the award of grants, loans, scholarships,
fellowships, or other forms of financial aid restricted
to students of a specified country, religion, sex,
ethnic origin, or political opinion; or
``(E) any other restriction on the use of a gift or
contract.''.
(b) Prohibition on Contracts With Certain Foreign Entities and
Countries.--Part B of title I of the Higher Education Act of 1965 (20
U.S.C. 1011 et seq.) is amended by inserting after section 117 the
following:
``SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN ENTITIES AND
COUNTRIES.
``(a) In General.--An institution shall not enter into a contract
with a foreign country of concern or a foreign entity of concern.
``(b) Waivers.--
``(1) In general.--A waiver issued under this section to an
institution with respect to a contract shall only--
``(A) waive the prohibition under subsection (a)
for a 1-year period; and
``(B) apply to the terms and conditions of the
proposed contract submitted as part of the request for
such waiver.
``(2) Submission.--
``(A) First waiver requests.--
``(i) In general.--An institution that
desires to enter into a contract with a foreign
entity of concern or a foreign country of
concern may submit to the Secretary, not later
than 120 days before the institution enters
into such a contract, a request to waive the
prohibition under subsection (a) with respect
to such contract.
``(ii) Contents of waiver request.--A
waiver request submitted by an institution
under clause (i) shall include--
``(I) the complete and unredacted
text of the proposed contract for which
the waiver is being requested, and if
such original contract is not in
English, a translated copy of the text
into English (in a manner that complies
with section 117(c)); and
``(II) a statement that--
``(aa) is certified by the
compliance officer of the
institution designated in
accordance with section
117D(c); and
``(bb) includes information
that demonstrates that such
contract--
``(AA) is for the
benefit of the
institution's mission
and students; and
``(BB) will promote
the security,
stability, and economic
vitality of the United
States.
``(B) Renewal waiver requests.--
``(i) In general.--An institution that,
pursuant to a waiver issued under this section,
has entered into a contract, the term of which
is longer than the 1-year waiver period and the
terms and conditions of which remain the same
as the proposed contract submitted as part of
the request for such waiver may submit, not
later than 120 days before the expiration of
such waiver period, a request for a renewal of
such waiver for an additional 1-year period
(which shall include any information requested
by the Secretary).
``(ii) Termination.--If the institution
fails to submit a request under clause (i) or
is not granted a renewal under such clause,
such institution shall terminate such contract
on the last day of the original 1-year waiver
period.
``(3) Waiver issuance.--The Secretary--
``(A) not later than 60 days before an institution
enters into a contract pursuant to a waiver request
under paragraph (2)(A), or before a contract described
in paragraph (2)(B)(i) is renewed pursuant to a renewal
request under such paragraph, shall notify the
institution--
``(i) if the waiver or renewal will be
issued by the Secretary; and
``(ii) in a case in which the waiver or
renewal will be issued, the date on which the
1-year waiver period starts; and
``(B) may only issue a waiver under this section to
an institution if the Secretary determines, in
consultation with each individual listed in section
117(e), that the contract for which the waiver is being
requested--
``(i) is for the benefit of the
institution's mission and students; and
``(ii) will promote the security,
stability, and economic vitality of the United
States.
``(4) Disclosure.--Not less than 2 weeks prior to issuing a
waiver under paragraph (2), the Secretary shall notify the
authorizing committees of the intent to issue the waiver,
including a justification for the waiver.
``(c) Designation During Contract Term.--In the case of an
institution that enters into a contract with a foreign source that is
not a foreign country of concern or a foreign entity of concern but
which, during the term of such contract, is designated as a foreign
country of concern or foreign entity of concern, such institution shall
terminate such contract not later than 60 days after the Secretary
notifies the institution of such designation.
``(d) Contracts Prior to Date of Enactment.--
``(1) In general.--In the case of an institution that has
entered into a contract with a foreign country of concern or
foreign entity of concern prior to the date of enactment of the
DETERRENT Act--
``(A) the institution shall as soon as practicable,
but not later than 30 days after such date of
enactment, submit to the Secretary a waiver request in
accordance with clause (ii) of subsection (b)(2)(A);
and
``(B) the Secretary shall, upon receipt of the
request submitted under such clause, issue a waiver to
the institution for a period beginning on the date on
which the waiver is issued and ending on the sooner
of--
``(i) the date that is 1 year after the
date of enactment of the DETERRENT Act; or
``(ii) the date on which the contract
terminates.
``(2) Renewal.--An institution that has entered into a
contract described in paragraph (1), the term of which is
longer than the waiver period described in subparagraph (B) of
such paragraph and the terms and conditions of which remain the
same as the contract submitted as part of the request required
under subparagraph (A) of such paragraph, may submit a request
for renewal of the waiver issued under such paragraph in
accordance with subsection (b)(2)(B).
``(e) Contract Defined.--The term `contract' has the meaning given
such term in section 117(f).''.
(c) Interagency Information Sharing.--Not later than 90 days after
the date of enactment of this Act, the Secretary of Education shall
transmit to each individual listed in section 117(e) of the Higher
Education Act of 1965, as amended by this Act--
(1) any report received by the Department of Education
under section 117 of the Higher Education Act of 1965 (20
U.S.C. 1011f) prior to the date of enactment of this Act; and
(2) any report, document, or other record generated by the
Department of Education in the course of an investigation--
(A) of an institution with respect to the
compliance of such institution with such section; and
(B) initiated prior to the date of enactment of
this Act.
SEC. 3. POLICY REGARDING CONFLICTS OF INTEREST FROM FOREIGN GIFTS AND
CONTRACTS.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as
amended by the preceding section, is further amended by inserting after
section 117A the following:
``SEC. 117B. INSTITUTIONAL POLICY REGARDING FOREIGN GIFTS AND CONTRACTS
TO FACULTY AND STAFF.
``(a) Requirement To Maintain Policy and Database.--Beginning not
later than 90 days after the date of enactment of the DETERRENT Act,
each institution described in subsection (b) shall maintain--
``(1) a policy requiring covered individuals employed at
the institution to disclose in a report to such institution on
July 31 of each calendar year that begins after the year in
which such enactment date occurs--
``(A) any gift received from a foreign source in
the previous calendar year, the value of which is
greater than the minimal value (as such term is defined
in section 7342(a) of title 5, United States Code) or
is of undetermined value, and including the date on
which the gift was received;
``(B) any contract with a foreign source (other
than a foreign country of concern or foreign entity of
concern) entered into or in effect during the previous
calendar year, the value of which is $5,000 or more,
considered alone or in combination with all other
contracts with that foreign source within the calendar
year, and including the date on which such contract is
entered into, the date on which the contract first
takes effect, and, as applicable, the date on which
such contract terminates;
``(C) any contract with a foreign source (other
than a foreign country of concern or foreign entity of
concern) entered into or in effect during the previous
calendar year that has an undetermined monetary value,
and including the date on which such contract is
entered into, the date on which the contract first
takes effect, and, as applicable, the date on which
such contract terminates; and
``(D) any contract entered into or in effect with a
foreign country of concern or foreign entity of concern
during the previous calendar year, the value of which
is $0 or more or which has an undetermined monetary
value, and including--
``(i) the date on which such contract is
entered into;
``(ii) the date on which the contract first
takes effect;
``(iii) as applicable, the date on which
such contract terminates; and
``(iv) the full text of such contract and
any addenda;
``(2) a publicly available and searchable database (in
electronic and downloadable format), on a website of the
institution, of the information required to be disclosed under
paragraph (1) (other than the name or any other personally
identifiable information of a covered individual) that--
``(A) makes available the information disclosed
under paragraph (1) (other than the name or any other
personally identifiable information of a covered
individual) beginning on the date that is 30 days after
receipt of the report under such paragraph containing
such information and until the latest of--
``(i) the date that is 5 years after the
date on which--
``(I) a gift referred to in
paragraph (1)(A) is received; or
``(II) a contract referred to in
subparagraph (B), (C) or (D) of
paragraph (1) first takes effect; or
``(ii) the date on which a contract
referred to in subparagraph (B), (C) or (D) of
paragraph (1) terminates; and
``(B) is searchable and sortable--
``(i) if the subject of the disclosure is a
gift, by the date on which the gift is
received;
``(ii) if the subject of the disclosure is
a contract--
``(I) by the date on which such
contract is entered into; and
``(II) by the date on which such
contract first takes effect;
``(iii) by the attributable country with
respect to which information is being
disclosed;
``(iv) by the narrowest of the department,
school, or college of the institution, as
applicable, for which the individual making the
disclosure works; and
``(v) by the name of the foreign source
(other than a foreign source who is a natural
person); and
``(3) an effective plan to identify and manage potential
information gathering by foreign sources through espionage
targeting covered individuals that may arise from gifts
received from, or contracts entered into with, a foreign
source, including through the use of--
``(A) periodic communications;
``(B) accurate reporting under paragraph (2) of the
information required to be disclosed under paragraph
(1); and
``(C) enforcement of the policy described in
paragraph (1); and
``(4) for purposes of investigations under section
117D(a)(1) or responses to requests under section 552 of title
5, United States Code (commonly known as the `Freedom of
Information Act'), a record of the names of the individuals
making disclosures under paragraph (1).
``(b) Institutions.--An institution shall be subject to the
requirements of this section if such institution--
``(1) is an eligible institution for the purposes of any
program authorized under title IV; and
``(2)(A) received more than $50,000,000 in Federal funds in
any of the previous five calendar years to support (in whole or
in part) research and development (as determined by the
institution and measured by the Higher Education Research and
Development Survey of the National Center for Science and
Engineering Statistics); or
``(B) receives funds under title VI.
``(c) Definitions.--In this section--
``(1) the terms `attributable country', `foreign source',
and `gift' have the meanings given such terms in section
117(f);
``(2) the term `contract' means--
``(A) any agreement for the acquisition by
purchase, lease, or barter of property or services by
the foreign source;
``(B) any affiliation, agreement, or similar
transaction with a foreign source that involves the use
or exchange of an institution's name, likeness, time,
services, or resources; and
``(C) any agreement for the acquisition by
purchase, lease, or barter, of property or services
from a foreign source (other than an arms-length
agreement for such acquisition from a foreign source
that is not a foreign country of concern or a foreign
entity of concern); and
``(3) the term `covered individual'--
``(A) has the meaning given such term in section
223(d) of the William M. (Mac) Thornberry National
Defense Authorization Act for Fiscal Year 2021 (42
U.S.C. 6605); and
``(B) shall be interpreted in accordance with the
Guidance for Implementing National Security
Presidential Memorandum 33 (NSPM-33) on National
Security Strategy for United States Government-
Supported Research and Development published by the
Subcommittee on Research Security and the Joint
Committee on the Research Environment in January 2022
(or any successor guidance).''.
SEC. 4. INVESTMENT DISCLOSURE REPORT.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as
amended by this Act, is further amended by inserting after section 117B
the following:
``SEC. 117C. INVESTMENT DISCLOSURE REPORT.
``(a) Investment Disclosure Report.--A specified institution shall
file a disclosure report in accordance with subsection (b) with the
Secretary on each July 31 immediately following any calendar year in
which the specified institution purchases, sells, or holds (directly or
indirectly through any chain of ownership) one or more investments of
concern.
``(b) Contents of Report.--Each report to the Secretary required by
subsection (a) shall contain, with respect to the calendar year
preceding the calendar year in which such report is filed, the
following information:
``(1) A list of the investments of concern purchased, sold,
or held during such calendar year.
``(2) The aggregate fair market value of all investments of
concern held as of the close of such calendar year.
``(3) The combined value of all investments of concern sold
over the course of such calendar year, as measured by the fair
market value of such investments at the time of the sale.
``(4) The combined value of all capital gains from such
sales of investments of concern.
``(c) Treatment of Certain Pooled Investments.--
``(1) Pooled investment classification.--
``(A) In general.--For purposes of this section,
except as provided in subparagraph (B), a specified
interest acquired by a specified institution in a
regulated investment company, exchange traded fund, or
any other pooled investment that holds an investment of
concern shall be treated as an investment of concern
and shall be reported pursuant to paragraph (2)(A).
``(B) Certification of pooled investment.--
Notwithstanding subparagraph (A), such specified
interest shall not be subject to subparagraph (A) if
the Secretary certifies, pursuant to paragraph (2)(B),
that such pooled investment is not holding an
investment of concern.
``(2) Procedures.--The Secretary, after consultation with
the Secretary of the Treasury and the Securities and Exchange
Commission, shall establish procedures under which a pooled
investment described in paragraph (1)--
``(A) shall be reported in accordance with the
requirements of subsection (b); and
``(B) may be certified under paragraph (1)(B) as
not holding an investment of concern.
``(d) Treatment of Related Organizations.--For purposes of this
section, assets held by any related organization (as defined in section
4968(d)(2) of the Internal Revenue Code of 1986) with respect to a
specified institution shall be treated as held by such specified
institution, except that--
``(1) such assets shall not be taken into account with
respect to more than 1 specified institution; and
``(2) unless such organization is controlled by such
institution or is described in section 509(a)(3) of the
Internal Revenue Code of 1986 with respect to such institution,
assets which are not intended or available for the use or
benefit of such specified institution shall not be taken into
account.
``(e) Valuation of Debt.--For purposes of this section, the fair
market value of any debt shall be the principal amount of such debt.
``(f) Regulations.--The Secretary, after consultation with the
Secretary of the Treasury and the Securities and Exchange Commission,
may issue such regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section, including
regulations or other guidance providing for the proper application of
this section with respect to certain regulated investment companies,
exchange traded funds, and pooled investments.
``(g) Database Requirement.--Beginning not later than May 31 of the
calendar year following the date of enactment of the DETERRENT Act, the
Secretary shall--
``(1) establish and maintain a searchable database on a
website of the Department, under which all reports submitted
under this section--
``(A) are made publicly available (in electronic
and downloadable format), including any information
provided in such reports;
``(B) can be individually identified and compared;
and
``(C) are searchable and sortable; and
``(2) not later than 30 days after receipt of a disclosure
report under this section, include such report in such
database.
``(h) Definitions.--In this section:
``(1) Investment of concern.--
``(A) In general.--The term `investment of concern'
means any specified interest with respect to any of the
following:
``(i) A foreign country of concern.
``(ii) A foreign entity of concern.
``(B) Specified interest.--The term `specified
interest' means, with respect to any entity--
``(i) stock or any other equity or profits
interest of such entity;
``(ii) debt issued by such entity; and
``(iii) any contract or derivative with
respect to any property described in clause (i)
or (ii).
``(2) Specified institution.--
``(A) In general.--The term `specified
institution', as determined with respect to any
calendar year, means an institution if--
``(i) such institution is not a public
institution; and
``(ii) the aggregate fair market value of--
``(I) the assets held by such
institution at the end of such calendar
year (other than those assets which are
used directly in carrying out the
institution's exempt purpose) is in
excess of $6,000,000,000; or
``(II) the investments of concern
held by such institution at the end of
such calendar year is in excess of
$250,000,000.
``(B) References to certain terms.--For the purpose
of applying the definition under subparagraph (A), the
terms `aggregate fair market value' and `assets which
are used directly in carrying out the institution's
exempt purpose' shall be applied in the same manner as
such terms are applied for the purposes of section
4968(b)(1)(D) of the Internal Revenue Code of 1986.''.
SEC. 5. ENFORCEMENT AND OTHER GENERAL PROVISIONS.
(a) Enforcement and Other General Provisions.--The Higher Education
Act of 1965 (20 U.S.C. 1001 et seq.), as amended by this Act, is
further amended by inserting after section 117C the following:
``SEC. 117D. ENFORCEMENT; SINGLE POINT-OF-CONTACT; INSTITUTIONAL
REQUIREMENTS.
``(a) Enforcement.--
``(1) Investigation.--The Secretary (acting through the
General Counsel of the Department) shall conduct investigations
of possible violations of sections 117, 117A, 117B, 117C, and
subsection (c) by institutions and, whenever it appears that an
institution has knowingly or willfully failed to comply with a
requirement of any of such sections (including any rule or
regulation promulgated under any such section), shall request
that the Attorney General bring a civil action in accordance
with paragraph (2).
``(2) Civil action.--Whenever it appears that an
institution has knowingly or willfully failed to comply with a
requirement of any of the sections listed in paragraph (1)
(including any rule or regulation promulgated under any such
section) based on an investigation under such paragraph, a
civil action shall be brought by the Attorney General, at the
request of the Secretary, 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 requirement of the section that has been violated.
``(3) Costs and other fines.--An institution that is
compelled to comply with a requirement of a section listed in
paragraph (1) pursuant to paragraph (2) shall--
``(A) pay to the Treasury of the United States the
full costs to the United States of obtaining compliance
with the requirement of such section, including all
associated costs of investigation and enforcement; and
``(B) be subject to the applicable fines described
in paragraph (4).
``(4) Fines for violations.--The Secretary shall impose a
fine on an institution that is compelled to comply with a
requirement of a section listed in paragraph (1) pursuant to
paragraph (2) as follows:
``(A) Section 117.--
``(i) First-time violations.--In the case
of an institution that is compelled to comply
with a requirement of section 117 pursuant to a
civil action described in paragraph (2), and
that has not previously been compelled to
comply with any such requirement pursuant to
such a civil action, the Secretary shall impose
a fine on the institution for such violation as
follows:
``(I) In the case of an institution
that knowingly or willfully fails to
comply with a reporting requirement
under subsection (a)(1) of section 117,
such fine shall be in an amount that
is--
``(aa) for each gift or
contract with determinable
value that is the subject of
such a failure to comply, the
greater of--
``(AA) $50,000; or
``(BB) the monetary
value of such gift or
contract; or
``(bb) for each gift or
contract of no value or of
indeterminable value, not less
than 1 percent and not more
than 10 percent of the total
amount of Federal funds
received by the institution
under this Act for the most
recent fiscal year.
``(II) In the case of an
institution that knowingly or willfully
fails to comply with the reporting
requirement under subsection (a)(2) of
section 117, such fine shall be in an
amount that is not less than 10 percent
of the total amount of Federal funds
received by the institution under this
Act for the most recent fiscal year.
``(ii) Subsequent violations.--In the case
of an institution that has previously been
compelled to comply with a requirement of
section 117 pursuant to a civil action
described in paragraph (2), and is subsequently
compelled to comply with such a requirement
pursuant to a subsequent civil action described
in paragraph (2), the Secretary shall impose a
fine on the institution as follows:
``(I) In the case of an institution
that knowingly or willfully fails to
comply with a reporting requirement
under subsection (a)(1) of section 117,
such fine shall be in an amount that
is--
``(aa) for each gift or
contract with determinable
value that is the subject of
such a failure to comply, the
greater of--
``(AA) $100,000; or
``(BB) twice the
monetary value of such
gift or contract; or
``(bb) for each gift or
contract of no value or of
indeterminable value, not less
than 5 percent and not more
than 10 percent of the total
amount of Federal funds
received by the institution
under this Act for the most
recent fiscal year.
``(II) In the case of an
institution that knowingly or willfully
fails to comply with a reporting
requirement under subsection (a)(2) of
section 117, such fine shall be in an
amount that is not less than 20 percent
of the total amount of Federal funds
received by the institution under this
Act for the most recent fiscal year.
``(B) Section 117a.--
``(i) First-time violations.--In the case
of an institution that is compelled to comply
with a requirement of section 117A pursuant to
a civil action described in paragraph (2), and
that has not previously been compelled to
comply with any such requirement pursuant to
such a civil action, the Secretary shall impose
a fine on the institution in an amount that is
not less than 5 percent and not more than 10
percent of the total amount of Federal funds
received by the institution under this Act for
the most recent fiscal year.
``(ii) Subsequent violations.--In the case
of an institution that has previously been
compelled to comply with a requirement of
section 117A pursuant to a civil action
described in paragraph (2), and is subsequently
compelled to comply with such a requirement
pursuant to a subsequent civil action described
in paragraph (2), the Secretary shall impose a
fine on the institution in an amount that is
not less than 20 percent of the total amount of
Federal funds received by the institution under
this Act for the most recent fiscal year.
``(C) Section 117b.--
``(i) First-time violations.--In the case
of an institution that is compelled to comply
with a requirement of section 117B pursuant to
a civil action described in paragraph (2), and
that has not previously been compelled to
comply with any such requirement pursuant to
such a civil action, the Secretary shall impose
a fine on the institution for such violation in
an amount that is the greater of--
``(I) $250,000; or
``(II) the total amount of gifts or
contracts that the institution is
compelled to report pursuant to such
civil action.
``(ii) Subsequent violations.--In the case
of an institution that has previously been
compelled to comply with a requirement of
section 117B pursuant to a civil action
described in paragraph (2), and is subsequently
compelled to comply with such a requirement
pursuant to a subsequent civil action described
in paragraph (2), the Secretary shall impose a
fine on the institution in an amount that is
the greater of--
``(I) $500,000; or
``(II) twice the total amount of
gifts or contracts that the institution
is compelled to report pursuant to such
civil action.
``(D) Section 117c.--
``(i) First-time violations.--In the case
of an institution that is compelled to comply
with a requirement of section 117C pursuant to
a civil action described in paragraph (2), and
that has not previously been compelled to
comply with any such requirement pursuant to
such a civil action, the Secretary shall impose
a fine on the institution in an amount that is
not less than 50 percent and not more than 100
percent of the sum of--
``(I) the aggregate fair market
value of all investments of concern
held by such institution as of the
close of the final calendar year for
which the institution is compelled to
comply with such requirement pursuant
to such civil action; and
``(II) the combined value of all
investments of concern sold over the
course of all the calendar years for
which the institution is compelled to
comply with such requirement pursuant
to such civil action, as measured by
the fair market value of such
investments at the time of the sale.
``(ii) Subsequent violations.--In the case
of an institution that has previously been
compelled to comply with a requirement of
section 117C pursuant to a civil action
described in paragraph (2), and is subsequently
compelled to comply with such a requirement
pursuant to a subsequent civil action described
in paragraph (2), the Secretary shall impose a
fine on the institution in an amount that is
not less than 100 percent and not more than 200
percent of the sum of--
``(I) the aggregate fair market
value of all investments of concern
held by such institution as of the
close of the final calendar year for
which the institution is compelled to
comply with such requirement pursuant
to such subsequent civil action; and
``(II) the combined value of all
investments of concern over the course
of all the calendar years for which the
institution is compelled to comply with
such requirement pursuant to such
subsequent civil action, as measured by
the fair market value of such
investments at the time of the sale.
``(E) Ineligibilty for waiver.--In the case of an
institution that is fined pursuant to subparagraph
(A)(ii), (B)(ii), (C)(ii), or (D)(ii), the Secretary
shall prohibit the institution from obtaining a waiver,
or a renewal of a waiver, under section 117A.
``(b) Single Point-of-Contact at the Department.--The Secretary
shall maintain a single point-of-contact at the Department to--
``(1) receive and respond to inquiries and requests for
technical assistance from institutions regarding compliance
with the requirements of sections 117, 117A, 117B, 117C, and
subsection (c) of this section;
``(2) coordinate and implement technical improvements to
the database described in section 117(d)(1), including--
``(A) improving upload functionality by allowing
for batch reporting, including by allowing institutions
to upload one file with all required information into
the database;
``(B) publishing and maintaining a database users
guide annually, including information on how to edit an
entry and how to report errors;
``(C) creating a standing user group (to which
chapter 10 of title 5, United States Code, shall not
apply) to discuss possible database improvements, which
group shall--
``(i) include at least--
``(I) 3 members representing public
institutions with high or very high
levels of research activity (as defined
by the National Center for Education
Statistics);
``(II) 2 members representing
private, nonprofit institutions with
high or very high levels of research
activity (as so defined);
``(III) 2 members representing
proprietary institutions of higher
education (as defined in section
102(b)); and
``(IV) 2 members representing area
career and technical education schools
(as defined in subparagraph (C) or (D)
of section 3(3) of the Carl D. Perkins
Career and Technical Education Act of
2006 (20 U.S.C. 2302(3)); and
``(ii) meet at least twice a year with
officials from the Department to discuss
possible database improvements;
``(D) publishing, on a publicly available website,
recommended database improvements following each
meeting described in subparagraph (C)(ii); and
``(E) responding, on a publicly available website,
to each recommendation published under subparagraph (D)
as to whether or not the Department will implement the
recommendation, including the rationale for either
approving or rejecting the recommendation;
``(3) provide, every 90 days after the date of enactment of
the DETERRENT Act, status updates on any pending or completed
investigations and civil actions under subsection (a)(1) to--
``(A) the authorizing committees; and
``(B) any institution that is the subject of such
investigation or action;
``(4) maintain, on a publicly accessible website--
``(A) a full comprehensive list of all foreign
countries of concern and foreign entities of concern;
and
``(B) the date on which the last update was made to
such list; and
``(5) not later than 7 days after making an update to the
list maintained under paragraph (4)(A), notify each institution
required to comply with the sections listed in paragraph (1) of
such update.
``(c) Institutional Requirements for Compliance Officer and
Established Policy for Filing Reports.--
``(1) In general.--An institution that is required to file
a report under section 117 or 117C, that is seeking a waiver
under section 117A, or that is subject to the requirements of
section 117B, shall, not later than the earlier of the date on
which the institution files the first report under such a
section, requests the institution's first waiver under section
117A, or first fulfills the requirements of section 117C--
``(A) establish an institutional policy that the
institution shall follow in meeting the requirements of
section 117, 117A, 117B, and 117C; and
``(B) designate and maintain a current employee or
legally authorized agent of such institution to serve
as a compliance officer to carry out the requirements
listed in paragraph (2).
``(2) Duties of compliance officers.--A compliance officer
designated under paragraph (1) shall certify--
``(A) whenever the institution is required to file
a report under section 117 or 117C--
``(i) the institution's accurate compliance
with the reporting requirements under such
section;
``(ii) that the institution, in filing such
report--
``(I) followed the institutional
policy established under paragraph
(1)(A); and
``(II) conducted good faith efforts
and reasonable due diligence to ensure
that accurate information is provided
in such report, including with respect
to the valuations of any assets that
are disclosed in a report submitted
under section 117C; and
``(iii) in the case of a report under
section 117, any statements by the institution
required to be certified by such officer under
clause (i) or (iv) of section 117(b)(1)(C); and
``(B) whenever the institution requests a waiver
under section 117A, the statement by the institution
required to be certified by such officer under section
117A(b)(2)(A)(ii)(II); and
``(C) in the case of an institution subject to the
requirements of section 117B, that the institution is
in compliance with such requirements.
``(d) Definitions.--For purposes of sections 117, 117A, 117B, 117C,
and this section:
``(1) Foreign country of concern.--The term `foreign
country of concern' means the following:
``(A) Any covered nation defined in section 4872 of
title 10, United States Code.
``(B) Any country the Secretary, in consultation
with the Secretary of Defense, the Secretary of State,
and the Director of National Intelligence, determines,
for purposes of sections 117, 117A, 117B, 117C, or this
section, to be engaged in conduct that is detrimental
to the national security or foreign policy of the
United States.
``(2) Foreign entity of concern.--The term `foreign entity
of concern' has the meaning given such term in section 10612(a)
of the Research and Development, Competition, and Innovation
Act (42 U.S.C. 19221(a)) and includes a foreign entity that is
identified on the list published under section 1286(c)(8)(A) of
the John S. McCain National Defense Authorization Act for
Fiscal Year 2019 (10 U.S.C. 22 4001 note; Public Law 115-232).
``(3) Institution.--The term `institution' means an
institution of higher education (as such term is defined in
section 102, other than an institution described in subsection
(a)(1)(c) of such section).''.
(b) Program Participation Agreement.--Section 487(a) of the Higher
Education Act of 1965 (20 U.S.C. 1094) is amended by adding at the end
the following:
``(30)(A) An institution will comply with the requirements
of sections 117, 117A, 117B, 117C, and 117D(c).
``(B) In the case of an institution described in
subparagraph (C), the institution will--
``(i) be ineligible to participate in the programs
authorized by this title for a period of not less than
2 institutional fiscal years; and
``(ii) in order to regain eligibility to
participate in such programs, demonstrate compliance
with all requirements of each such section for not less
than 2 institutional fiscal years after the
institutional fiscal year in which such institution
became ineligible.
``(C) An institution described in this subparagraph is an
institution that--
``(i) has been subject to 3 separate civil actions
described in section 117D(a)(2) that have each resulted
in the institution being compelled to comply with one
or more requirements of section 117, 117A, 117B, 117C,
or 117D(c); and
``(ii) pursuant to section 117D(a)(4)(E), is
prohibited from obtaining a waiver, or a renewal of a
waiver, under section 117A.''.
(c) GAO Study and Report.--
(1) Study.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General of the United
States shall initiate a study to identify ways to improve
intergovernmental agency coordination regarding implementation
and enforcement of sections 117, 117A, 117B, 117C, and 117D(c)
of the Higher Education Act of 1965 (20 U.S.C. 1011f), as
amended or added by this Act, including increasing information
sharing, increasing compliance rates, and establishing
processes for enforcement.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress, and make public, a report
containing the results of the study described in paragraph (1).
<all>
DEBATE - Pursuant to the provisions of H. Res. 242, the Committee of the Whole proceeded with 10 minutes of debate on the Scott (VA) amendment No. 3.
POSTPONED PROCEEDINGS - At the conclusion of debate on the Scott (VA) amendment No. 3, the Chair put the question on agreeing to the amendment and by voice vote, announced that the noes had prevailed. Mr. Scott (VA) demanded a recorded vote and the Chair postponed further proceedings until a time to be announced.
DEBATE - Pursuant to the provisions of H. Res. 242, the Committee of the Whole proceeded with 10 minutes of debate on the Self amendment No. 4.
POSTPONED PROCEEDINGS - At the conclusion of debate on the Self amendment No. 4, the Chair put the question on agreeing to the amendment and by voice vote, announced that the ayes had prevailed. Mr. Scott (VA) demanded a recorded vote and the Chair postponed further proceedings until a time to be announced.
DEBATE - Pursuant to the provisions of H. Res. 242, the Committee of the Whole proceeded with 10 minutes of debate on the Tlaib amendment No. 5.
POSTPONED PROCEEDINGS - At the conclusion of debate on the Tlaib amendment No. 5, the Chair put the question on agreeing to the amendment and by voice vote, announced that the noes had prevailed. Ms. Tlaib demanded a recorded vote and the Chair postponed further proceedings until a time to be announced.
DEBATE - Pursuant to the provisions of H. Res. 242, the Committee of the Whole proceeded with 10 minutes of debate on the Tlaib amendment No. 6.
POSTPONED PROCEEDINGS - At the conclusion of debate on the Tlaib amendment No. 6, the Chair put the question on agreeing to the amendment and by voice vote, announced that the noes had prevailed. Ms. Tlaib demanded a recorded vote and the Chair postponed further proceedings until a time to be announced.
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Mr. Walberg moved that the committee rise.
On motion that the committee rise Agreed to by voice vote.
Committee of the Whole House on the state of the Union rises leaving H.R. 1048 as unfinished business.
Considered as unfinished business. (consideration: CR H1312-1316)
The House resolved into Committee of the Whole House on the state of the Union for further consideration.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1048.
The previous question was ordered pursuant to the rule.
The House adopted the amendments en gros as agreed to by the Committee of the Whole House on the state of the Union.
Passed/agreed to in House: On passage Passed by the Yeas and Nays: 241 - 169 (Roll no. 83).
Roll Call #83 (House)On passage Passed by the Yeas and Nays: 241 - 169 (Roll no. 83).
Roll Call #83 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.