[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8914 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                                H. R. 8914

  To amend the Internal Revenue Code of 1986 to impose penalties with 
 respect to civil rights violations by certain tax-exempt educational 
                             institutions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 2, 2024

 Ms. Malliotakis (for herself, Ms. Stefanik, Mr. Kustoff, Ms. Tenney, 
 Mr. Murphy, Mr. Kelly of Pennsylvania, Mr. Schweikert, Mrs. Miller of 
  West Virginia, Mrs. Fischbach, Mr. Moore of Utah, and Mr. Ferguson) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to impose penalties with 
 respect to civil rights violations by certain tax-exempt educational 
                             institutions.

    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 ``University Accountability Act''.

SEC. 2. PENALTIES WITH RESPECT TO CIVIL RIGHTS VIOLATIONS BY CERTAIN 
              TAX-EXEMPT EDUCATIONAL INSTITUTIONS.

    (a) In General.--Part I of subchapter B of chapter 68 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 6720D. CIVIL RIGHTS VIOLATIONS BY CERTAIN TAX-EXEMPT EDUCATIONAL 
              INSTITUTIONS.

    ``(a) In General.--There is hereby imposed a penalty equal to the 
applicable penalty amount on a specified tax-exempt educational 
institution with respect to each determination of civil rights 
violation with respect to such institution.
    ``(b) Timing of Liability.--
            ``(1) In general.--A specified tax-exempt educational 
        institution shall be liable for the penalty imposed under 
        subsection (a) with respect to any determination of civil 
        rights violation on the date of the judgment referred to in 
        subsection (c).
            ``(2) Reversal of determinations.--In the event that any 
        determination of civil rights violation is vacated, overturned, 
        or otherwise reversed, the Secretary shall refund any penalty 
        paid with respect to the determination of civil rights 
        violation. The preceding sentence shall not be interpreted to 
        prevent the application of this section with respect to any 
        determination of civil rights violation that is reinstated or 
        otherwise redetermined following any such reversal.
    ``(c) Determination of Civil Rights Violation.--For purposes of 
this section--
            ``(1) In general.--The term `determination of civil rights 
        violation' means, with respect to any specified tax-exempt 
        educational institution, any civil judgment of a Federal court 
        of competent jurisdiction that such institution violated any 
        provision of title VI of the Civil Rights Act of 1964.
            ``(2) Authority to treat certain judgments as a single 
        determination of civil rights violation.--If the Secretary 
        determines that two or more judgments are based on the same set 
        of facts and circumstances, such judgments shall be treated as 
        a single determination of civil rights violation for purposes 
        of this section, section 501(s), and such provisions of section 
        6033(o) as the Secretary determines appropriate.
    ``(d) Applicable Penalty Amount.--For purposes of this section--
            ``(1) In general.--The term `applicable penalty amount' 
        means, with respect to each determination of civil rights 
        violation made with respect to any specified tax-exempt 
        educational institution, the greater of--
                    ``(A) $100,000, or
                    ``(B) in the case of an institution subject to the 
                requirements of section 6033(a), 5 percent of the 
                aggregate administrative compensation paid by such 
                specified tax-exempt educational institution during the 
                taxable year in which such violation occurred.
            ``(2) Administrative compensation.--The term 
        `administrative compensation' means, with respect to any 
        specified tax-exempt educational institution, the compensation 
        and other payments described in section 6033(b)(7) made by such 
        institution.
    ``(e) Specified Tax-Exempt Educational Institution.--For purposes 
of this section, the term `specified tax-exempt educational 
institution' means any eligible educational institution (as defined in 
section 25A(f)(2)) which is described in section 501(c) or section 
511(a)(2)(B).
    ``(f) Waiver of Limitations on Assessment and Refund.--Sections 
6501 and 6511 shall not apply to any penalty imposed under subsection 
(a) or refund made under subsection (b)(2).''.
    (b) Mandatory Review of Exempt Status Upon Repeated Civil Rights 
Violations.--Section 501 of such Code is amended by adding at the end 
the following new subsection:
    ``(s) Mandatory Review of Exempt Status of Certain Educational 
Institutions With Repeated Civil Rights Violations.--Upon any 
determination of civil right violation (as defined in section 6720D(c)) 
with respect to any specified tax-exempt educational institution (as 
defined in section 6720D(e)), if such determination is not one of the 
first 2 such determinations (made after the date of the enactment of 
this subsection) with respect to such institution, the Secretary shall 
conduct a review to determine if such institution remains an 
organization described in subsection (c) which is entitled to exemption 
from tax under subsection (a). Any determination which is vacated, 
overturned, or otherwise reversed shall not be taken into account under 
the preceding sentence (unless subsequently reinstated or otherwise 
redetermined).''.
    (c) Reporting by Specified Tax-Exempt Educational Institutions of 
Determinations of Civil Rights Violation.--Section 6033 of such Code is 
amended by redesignating subsection (o) as subsection (p) and by 
inserting after subsection (n) the following new subsection:
    ``(o) Additional Provisions Relating to Specified Tax-Exempt 
Educational Institutions.--
            ``(1) In general.--Every specified tax-exempt educational 
        institution (as defined in section 6720D(c)) which is subject 
        to the requirements of subsection (a) shall, on the return 
        required under subsection (a) for the taxable year, include the 
        following:
                    ``(A) With respect to each determination of civil 
                rights violation (as defined in section 6720D(c)) made 
                with respect to such institution during such taxable 
                year:
                            ``(i) A description of such determination 
                        (including the date of such determination) and 
                        of the civil rights violation to which such 
                        determination relates.
                            ``(ii) The number of determinations of 
                        civil rights violation (determined by 
                        disregarding determinations not taken into 
                        account under the last sentence of section 
                        501(s)) made with respect to such institution 
                        before such determination (and after the date 
                        of the enactment of this subsection).
                            ``(iii) Such other information as the 
                        Secretary may require.
                    ``(B) With respect to each determination of civil 
                rights violation (as defined in section 6720D(c)) which 
                is vacated, overturned, or otherwise reversed during 
                such taxable year:
                            ``(i) A description of the order or 
                        judgment which so reversed such determination, 
                        including the date of such order or judgment.
                            ``(ii) The information described in 
                        subparagraph (A)(i) with respect to the 
                        determination so reversed.
                            ``(iii) Such other information as the 
                        Secretary may require.
            ``(2) Application to state colleges and universities.--
        Every specified tax-exempt educational institution (as defined 
        in section 6720D(c)) which is described in section 511(a)(2)(B) 
        shall, for any taxable year with respect to which there is a 
        determination of civil rights violation described in 
        subparagraph (A) or (B) of paragraph (1) with respect to such 
        institution, file an annual return that contains the 
        information described in such subparagraphs. The penalties 
        applicable to returns required under subsection (a) shall apply 
        to returns required under this paragraph.''.
    (d) Clerical Amendment.--The table of sections for part I of 
subchapter B of chapter 68 of such Code is amended by adding at the end 
the following new item:

``Sec. 6720D. Civil rights violations by certain tax-exempt educational 
                            institutions.''.
    (e) Effective Date.--The amendments made by this subsection shall 
apply with respect to determinations of civil rights violation made 
after the date of the enactment of this Act.
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