[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4405 Introduced in House (IH)]

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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.
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