[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
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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
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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.
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