[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3130-S3132]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1596. Mr. COTTON submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Schumer to the bill S. 1260, to 
establish a new Directorate for Technology and Innovation in the 
National Science Foundation, to establish a regional technology hub 
program, to require a strategy and report on economic security, 
science, research, innovation, manufacturing, and job creation, to 
establish a critical supply chain resiliency program, and for other 
purposes; which was ordered to lie on the table; as follows:

        Strike section 6124 and insert the following:

     SEC. 6124. FOREIGN FUNDING ACCOUNTABILITY.

       (a) Short Title.--This section may be cited as the 
     ``Foreign Funding Accountability Act of 2021''.
       (b) Amendments to Disclosures of Foreign Gifts and 
     Contracts.--Section 117 of the Higher Education Act of 1965 
     (20 U.S.C. 1011f) is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Disclosure Report.--
       ``(1) Filing.--An institution shall file a disclosure 
     report with the Department of Education on January 31 or July 
     31, whichever is sooner, if the institution--
       ``(A) is owned or controlled by a foreign source; or
       ``(B) receives a gift or enters into a contract with a 
     foreign source, the value of which is $25,000 or more 
     (including in-kind gifts, gifts to institution foundations, 
     and gifts to any other legal entities that operate 
     substantially for the benefit or under the auspieces of the 
     institution), considered

[[Page S3131]]

     alone or in combination with all other gifts from or 
     contracts with that foreign source within a calendar year.
       ``(2) Tuition.--A tuition payment to an institution on 
     behalf of an enrolled student by a foreign government or 
     foundation shall be considered a gift from or contract with a 
     foreign source under this subsection.
       ``(3) Designated individual.--Each institution that is 
     required to file a disclosure report under this section shall 
     designate an officer at the institution who shall be 
     responsible for ensuring the veracity of the disclosure 
     report.
       ``(b) Contents of Disclosure Report.--
       ``(1) Owned or controlled by a foreign source.--An 
     institution that is required to file a disclosure report 
     under subsection (a)(1)(A) shall include in the report:
       ``(A) The identity of the foreign source.
       ``(B) The date on which the foreign source assumed 
     ownership or control.
       ``(C) Any changes in program or structure resulting from 
     the change in ownership or control.
       ``(2) Gifts or contracts.--An institution that is required 
     to file a disclosure report under subsection (a)(1)(B) shall 
     include in the report:
       ``(A) The amount of the gift or contract.
       ``(B) The country of origin of the gift or contract.
       ``(C) A statement from the foreign source providing the 
     gift or entering into the contract, including, in the case of 
     a foreign source that is--
       ``(i) an individual, the individual's--

       ``(I) name;
       ``(II) nationality
       ``(III) principal business address; and
       ``(IV) all business and residential addresses in the United 
     States or elsewhere;

       ``(ii) a partnership--

       ``(I) the information described in subclause (I) through 
     (IV) of clause (i) with respect to each member of the 
     partnership; and
       ``(II) a true and complete copy of its articles of 
     copartnership; or

       ``(iii) an association, corporation, organization, or any 
     other combination of individuals--

       ``(I) the information described in subclauses (I) through 
     (IV) of clause (i) with respect to each director, officer, 
     and each individual performing the functions of a director or 
     officer for that entity; and
       ``(II) a statement of the entity's ownership and control, 
     and the publicly listed name of the entity.

       ``(D) The explicit and intended purpose and function of the 
     gift or contract, including--
       ``(i) the name (and position if applicable) of the 
     recipient individual, department, or benefactor at the 
     institution receiving the gift or contract;
       ``(ii) any terms or conditions of the gift or contract;
       ``(iii) copies of each written agreement and the terms and 
     conditions of each oral agreement, including all 
     modifications of such agreements, relating to the gift or 
     contract; or
       ``(iv) where no written or oral agreement exists, a full 
     statement of all the circumstances relating to the gift or 
     contract.
       ``(3) Attestation.--Each disclosure report under this 
     section shall include a written statement from the individual 
     designated under subsection (a)(3) attesting that the 
     disclosure report is true and complete.'';
       (2) by striking subsections (c) and (d);
       (3) by redesignating subsections (e) through (h) as 
     subsections (c) through (f), respectively;
       (4) in subsection (c), as redesignated by paragraph (3), by 
     adding at the end the following: ``All disclosure reports 
     required by this section, including copies of agreements 
     required under subsection (b)(2)(D)(iii), shall be publicly 
     available, including by electronic means.'';
       (5) by striking subsection (d), as redesignated by 
     paragraph (3), and inserting the following:
       ``(d) Enforcement.--
       ``(1) Civil penalties.--Upon determination, after 
     reasonable notice and opportunity for a hearing, that an 
     institution--
       ``(A) has violated or failed to carry out any provision of 
     this section or any regulation prescribed under this section 
     (including by submitting a disclosure report with a material 
     misstatement or omission), the Secretary may impose a civil 
     penalty upon such institution of not to exceed, the greater 
     of--
       ``(i) $250,000 for an initial violation or failure; or
       ``(ii) the value of the unreported gift or contract for an 
     initial violation or failure;
       ``(B) commits a second violation or failure as described in 
     subparagraph (A), the Secretary may impose a civil penalty 
     upon such institution of not to exceed, the greater of--
       ``(i) $750,000; or
       ``(ii) the value of the unreported gift or contract;
       ``(C) commits 3 or more violations or failures as described 
     in subparagraph (A)--
       ``(i) the Secretary may impose a civil penalty upon such 
     institution of not to exceed, the greater of--

       ``(I) $1,000,000; or
       ``(II) the value of the unreported gift or contract; and

       ``(ii) the institution may be subject to penalties relating 
     to the Student and Exchange Visitor Program and the 
     institution's tax exempt status, as described in sections 4 
     and 5 of the Foreign Funding Accountability Act of 2021; or
       ``(D) commits 3 or more violations or failures as described 
     in subparagraph (A) and has demonstrated a pattern of willful 
     violations, the Secretary may determine that the institution 
     is no longer eligible to receive funds under this Act.
       ``(2) Court orders.--Whenever it appears that an 
     institution has failed to comply with the requirements of 
     this section, including any rule or regulation promulgated 
     under this section, a civil action may 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 requirements 
     of this section (including for the collection of civil 
     penalties under this subsection). In case of contumacy by, or 
     refusal to obey a subpoena issued to, any person, the 
     Secretary may request the Attorney General to invoke the aid 
     of any court of the United States where such person resides 
     or transacts business for a court order for the enforcement 
     of this section.
       ``(3) Costs.--For knowing or willful failure to comply with 
     the requirements of this section, including any rule or 
     regulation promulgated thereunder, an institution shall pay 
     to the Treasury of the United States the full costs to the 
     United States of obtaining compliance, including all 
     associated costs of investigation and enforcement.
       ``(4) Investigation; subpoena authority.--The Secretary 
     shall establish an investigative process to identify gifts or 
     contracts with respect to which a disclosure report under 
     this section is required and has not been submitted. To 
     assist the Secretary in the conduct of investigations of 
     possible violations of this section, the Secretary is 
     authorized to require by subpoena the production of 
     information, documents, reports, answers, records, accounts, 
     papers, and other documentary evidence pertaining to this 
     section. The production of any such records may be required 
     from any place in a State.'';
       (6) in subsection (f)(2), as redesignated by paragraph 
     (3)--
       (A) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (D), by adding ``and'' after the 
     semicolon; and
       (C) by adding at the end the following:
       ``(E) any person registered under the Foreign Agents 
     Registration Act of 1938 (22 U.S.C. 611 et seq.)''.
       (c) Report on Past Years Required.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, each institution shall prepare and 
     submit to the Secretary of Education a disclosure report 
     containing the information described in subsection (b) of 
     section 117 of the Higher Education Act of 1965 (20 U.S.C. 
     1011f(b)) (as amended by subsection (b) of this section) as 
     required under subsection (a) of such section 117 (as amended 
     by subsection (b) of this section) for every qualifying event 
     that has occurred on or after the date of enactment of the 
     Higher Education Amendments of 1998 (Public Law 105-244) and 
     before the date of enactment of this Act.
       (2) Institutions unable to comply.--In the case of an 
     institution that is unable to comply with the requirements of 
     paragraph (1) with respect to a qualifying event, that 
     institution shall submit a statement to the Secretary of 
     Education, for each such qualifying event, describing in 
     detail in detail why the institution cannot comply with 
     respect to that qualifying event.
       (3) Waiver.--An institution may request, and the Secretary 
     of Education may grant, a waiver with respect to the report 
     required under this subsection if the institution 
     demonstrates good cause for requiring such a waiver.
       (4) Enforcement.--
       (A) In general.--Upon determination, after reasonable 
     notice and opportunity for a hearing, that an institution has 
     violated or failed to carry out any provision of this 
     subsection or any regulation prescribed under this subsection 
     (including by submitting a disclosure report with a material 
     misstatement or omission), the Secretary of Education may 
     impose a civil penalty upon such institution not to exceed 
     $25,000 for each qualifying event that the institution has 
     failed to report in accordance with this subsection.
       (B) Court orders.--Whenever it appears that an institution 
     has failed to comply with the requirements of this 
     subsection, including any rule or regulation promulgated 
     under this subsection, a civil action may be brought by the 
     Attorney General, at the request of the Secretary of 
     Education, 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 requirements of this subsection (including for the 
     collection of civil penalties under this subsection).
       (C) Costs.--For knowing or willful failure to comply with 
     the requirements of this subsection, including any rule or 
     regulation promulgated thereunder, an institution shall pay 
     to the Treasury of the United States the full costs to the 
     United States of obtaining compliance, including all 
     associated costs of investigation and enforcement.
       (D) Investigation; subpoena authority.--The Secretary of 
     Education shall establish an investigative process to 
     identify gifts or contracts with respect to which a 
     disclosure under this subsection is required and has not been 
     submitted. The Secretary of Education may use administrative 
     subpoena authority

[[Page S3132]]

     as authorized under law to conduct such investigations.
       (5) Definitions.--In this subsection:
       (A) Institution.--The term ``institution'' has the meaning 
     given that term in section 117 of the Higher Education Act of 
     1965 (20 U.S.C. 1011f).
       (B) Qualifying event.--In this section the term 
     ``qualifying event'' means an institution--
       (i) being owned or controlled by a foreign source; or
       (ii) receiving a gift or entering into a contract with a 
     foreign source, the value of which is $25,000 or more 
     (including in-kind gifts, or gifts to university or college 
     foundations), considered alone or in combination with all 
     other gifts from or contracts with that foreign source within 
     a calendar year.
       (d) Disqualification From the Student and Exchange Visitor 
     Program.--Any institution of higher education that is found 
     to have violated the disclosure requirements set forth in 
     section 117 of the Higher Education Act of 1965 (20 U.S.C. 
     1011f) on 3 or more occasions shall be ineligible to enroll 
     foreign students under the Student and Exchange Visitor 
     Program.
                                 ______