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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1999 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1999
To amend the Higher Education Act of 1965 to require staff and faculty
to report foreign gifts and contracts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 10, 2025
Mr. James (for himself and Ms. Foxx) 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 require staff and faculty
to report foreign gifts and contracts, 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 ``Disclose Getting Involved in Foreign
Transactions Act'' or the ``Disclose GIFT Act''.
SEC. 2. POLICY REGARDING CONFLICTS OF INTEREST FROM FOREIGN GIFTS AND
CONTRACTS.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is
amended by inserting after section 117 the following:
``SEC. 117A. 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 Disclose GIFT
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) if the contract has a termination
date, such termination date; 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
117B(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 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.
``(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).
``(4) 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) 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;
``(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).''.
SEC. 3. 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 117A the following:
``SEC. 117B. 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 section 117A and subsection (c) of
this section by institutions and, whenever it appears that an
institution has knowingly or willfully failed to comply with a
requirement of any of such provisions (including any rule or
regulation promulgated under any such provision), 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 provisions listed in paragraph (1)
(including any rule or regulation promulgated under any such
provision) 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 provision that has been violated.
``(3) Costs and other fines.--An institution that is
compelled to comply with a requirement of a provision 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 provision, including all
associated costs of investigation and enforcement; and
``(B) if applicable, 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 section 117A pursuant to paragraph (2) as
follows:
``(A) 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 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.
``(B) 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 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.
``(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 section 117A and subsection (c) of
this section;
``(2) provide, every 90 days after the date of enactment of
the 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;
``(3) 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
``(4) not later than 7 days after making an update to the
list maintained under paragraph (3)(A), notify each institution
required to comply with the section listed in paragraph (1) of
such update.
``(c) Institutional Requirements for Compliance Officers and
Institutional Policy Requirements.--
``(1) In general.--An institution that is subject to the
requirements of section 117A shall, not later than the date on
which the institution first fulfills the requirements of such
section--
``(A) establish an institutional policy that the
institution shall follow in meeting the requirements of
such section; and
``(B) designate and maintain at least one, but not
more than three, current employees or legally
authorized agents of such institution to serve as
compliance officers to carry out the requirements
listed in paragraph (2).
``(2) Duties of compliance officers.--A compliance officer
designated by an institution under paragraph (1)(B) shall
certify, whenever the institution is subject to the
requirements of section 117A, that the institution--
``(A) is in compliance with the requirements of
such section; and
``(B) followed the institutional policy established
under paragraph (1)(A).
``(d) Definitions.--For purposes of section 117A 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 section 117A 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 117A and 117B(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 has been subject to 3 separate civil actions
described in section 117B(a)(2) that have each resulted in the
institution being compelled to comply with one or more
requirements of section 117A or 117B(c).''.
(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 117A and 117B(c) of the Higher
Education Act of 1965 (20 U.S.C. 1011f), as 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>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Workforce.
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