[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Pages S5138-S5143]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2916. Mr. TILLIS submitted an amendment intended to be proposed by
him to the bill S. 4638, to authorize appropriations for fiscal year
2025 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the end of title X, add the following:
Subtitle __--Deterrent Act
SEC. ___. SHORT TITLE.
This subtitle may be cited as the ``Defending Education
Transparency and Ending Rogue Regimes Engaging in Nefarious
Transactions Act'' or the ``DETERRENT Act''.
SEC. ___. DISCLOSURES OF FOREIGN GIFTS.
(a) In General.--Section 117 of the Higher Education Act of
1965 (20 U.S.C. 1011f) is amended to read as follows:
``SEC. 117. DISCLOSURES OF FOREIGN GIFTS.
``(a) Disclosure Reports.--
``(1) Aggregate gifts and contract disclosures.--An
institution shall file a disclosure report, in accordance
with subsection (b)(1), with the Secretary on July 31 of the
calendar year immediately following any calendar year in
which--
``(A) the institution receives a gift from, or enters into
a contract with, a foreign source (other than a foreign
country of concern or foreign entity of concern)--
``(i) the value of which is $50,000 or more, considered
alone or in combination with all other gifts from, or
contracts with, that foreign source within the calendar year;
or
``(ii) the value of which is undetermined; or
``(B) the institution receives a gift from a foreign
country of concern or foreign entity of concern, or, upon
receiving a waiver under section 117A to enter into a
contract with such a country or entity, enters into such
contract, without regard to the value of such gift or
contract.
``(2) Foreign-source ownership or control disclosures.--In
the case of an institution that is substantially controlled
(as described in section 668.174(c)(3) of title 34,
[[Page S5139]]
Code of Federal Regulations) (or successor regulations)) by a
foreign source, the institution shall file a disclosure
report, in accordance with subsection (b)(2), with the
Secretary on July 31 of each year.
``(3) Treatment of affiliated entities.--For purposes of
this section, any gift to, or contract with, an affiliated
entity of an institution shall be considered a gift to or
contract with, respectively, such institution.
``(b) Contents of Report.--
``(1) Gifts and contracts.--Each report to the Secretary
required under subsection (a)(1) shall contain the following:
``(A) With respect to a gift received from, or a contract
entered into with, any foreign source--
``(i) the terms of such gift or contract, including--
``(I) the name of the individual, department, or benefactor
at the institution receiving the gift or carrying out the
contract on behalf of the institution;
``(II) the intended purpose of such gift or contract, as
provided to the institution by such foreign source, or if no
such purpose is provided by such foreign source, the intended
use of such gift or contract, as provided by the institution;
and
``(III) in the case of a restricted or conditional gift or
contract, a description of the restrictions or conditions of
such gift or contract;
``(ii) with respect to a gift--
``(I) the total fair market dollar amount or dollar value
of the gift, as of the date of submission of such report; and
``(II) the date on which the institution received such
gift;
``(iii) with respect to a contract--
``(I) the total fair market dollar amount or dollar value
of the contract, as of the date of submission of such report;
``(II) the date on which such contract commences;
``(III) as applicable, the date on which such contract
terminates; and
``(IV) an assurance that the institution will--
``(aa) maintain an unredacted copy of the contract until
the latest of--
``(AA) the date that is 5 years after the date on which the
contract commences;
``(BB) the date on which the contract terminates; or
``(CC) the last day of any period that applicable State law
requires a copy of such contract to be maintained; and
``(bb) upon request of the Secretary during an
investigation under section 117D(a)(1), produce such an
unredacted copy of the contract; and
``(iv) an assurance that in a case in which information is
required to be disclosed under this section with respect to a
gift or contract that is not in English, such information is
translated into English in compliance with the requirements
of subsection (c).
``(B) With respect to a gift received from, or a contract
entered into with, a foreign source that is a foreign
government (other than the government of a foreign country of
concern)--
``(i) the name of such foreign government;
``(ii) the department, agency, office, or division of such
foreign government that approved such gift or contract, as
applicable; and
``(iii) the physical mailing address of such department,
agency, office, or division.
``(C) With respect to a gift received from, or contract
entered into with, a foreign source (other than a foreign
government subject to the requirements of subparagraph (B))--
``(i) the legal name of the foreign source, or, if such
name is not available, a statement certified by the
compliance officer, in accordance with subsection (f)(2),
that the institution has reasonably attempted to obtain such
name;
``(ii) in the case of a foreign source that is a natural
person, the country of citizenship of such person, or, if
such country is not known, the principal country of residence
of such person;
``(iii) in the case of a foreign source that is a legal
entity, the country in which such entity is incorporated, or
if such information is not available, the principal place of
business of such entity;
``(iv) the physical mailing address of such foreign source,
or if such address is not available, a statement certified by
the compliance officer, in accordance with subsection (f)(2),
that the institution has reasonably attempted to obtain such
address; and
``(v) any affiliation of the foreign source to an
organization that is designated as a foreign terrorist
organization pursuant to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189).
``(D) With respect to a contract entered into with a
foreign source that is a foreign country of concern or a
foreign entity of concern--
``(i) a complete and unredacted text of the original
contract, and if such original contract is not in English, a
translated copy of the text into English in compliance with
the requirements of subsection (c);
``(ii) a copy of the waiver received under section 117A for
such contract; and
``(iii) the statement submitted by the institution for
purposes of receiving such a waiver under section 117A(b)(1).
``(2) Foreign source ownership or control.--Each report to
the Secretary required under subsection (a)(2) shall
contain--
``(A) the legal name and address of the foreign source that
owns or controls the institution;
``(B) the date on which the foreign source assumed
ownership or control; and
``(C) any changes in program or structure resulting from
the change in ownership or control.
``(c) Translation Requirements.--Any information required
to be disclosed under this section with respect to a gift or
contract that is not in English shall be translated, for
purposes of such disclosure, by a person that is not an
affiliated entity or agent of the foreign source involved
with such gift or contract.
``(d) Public Inspection.--
``(1) Database requirement.--Beginning not later than 60
days before the July 31 immediately following the date of the
enactment of the DETERRENT Act, the Secretary shall--
``(A) establish and maintain a searchable database on a
website of the Department, under which all reports submitted
under this section (including any report submitted under this
section before the date of the enactment of the DETERRENT
Act)--
``(i) are made publicly available (in electronic and
downloadable format), including any information provided in
such reports (other than the information prohibited from
being publicly disclosed pursuant to paragraph (2));
``(ii) can be individually identified and compared; and
``(iii) are searchable and sortable by--
``(I) the date the institution filed such report;
``(II) the date on which the institution received the gift,
or entered into the contract, which is the subject of the
report;
``(III) the attributable country of such gift or contract;
and
``(IV) the name of the foreign source (other than a foreign
source that is a natural person);
``(B) not later than 30 days after receipt of a disclosure
report under this section, include such report in such
database;
``(C) indicate, as part of the public record of a report
included in such database, whether the report is with respect
to a gift received from, or a contract entered into with--
``(i) a foreign source that is a foreign government; or
``(ii) a foreign source that is not a foreign government;
and
``(D) with respect to a disclosure report that does not
include the name or address of a foreign source, indicate, as
part of the public record of such report included in such
database, that such report did not include such information.
``(2) Name and address of foreign source.--The Secretary
shall not disclose the name or address of a foreign source
that is a natural person (other than the attributable country
of such foreign source) included in a disclosure report--
``(A) as part of the public record of such disclosure
report described in paragraph (1); or
``(B) in response to a request under section 552 of title
5, United States Code (commonly known as the `Freedom of
Information Act'), pursuant to subsection (b)(3) of such
section.
``(e) Interagency Information Sharing.--Not later than 30
days after receiving a disclosure report from an institution
in compliance with this section, the Secretary shall transmit
an unredacted copy of such report (that includes the name and
address of a foreign source disclosed in such report) to the
Director of the Federal Bureau of Investigation, the Director
of National Intelligence, the Director of the Central
Intelligence Agency, the Secretary of State, the Secretary of
Defense, the Attorney General, the Secretary of Commerce, the
Secretary of Homeland Security, the Secretary of Energy, the
Director of the National Science Foundation, and the Director
of the National Institutes of Health.
``(f) Compliance Officer.--Any institution that is required
to file a disclosure report under subsection (a) shall
designate, before the filing deadline for such report, and
maintain a compliance officer, who shall--
``(1) be a current employee or legally authorized agent of
such institution; and
``(2) be responsible, on behalf of the institution, for
personally certifying accurate compliance with the foreign
gift reporting requirement under this section.
``(g) Definitions.--In this section:
``(1) Affiliated entity.--The term `affiliated entity',
when used with respect to an institution, means an entity or
organization that operates primarily for the benefit of, or
under the auspices of, such institution, including a
foundation of the institution or a related entity (such as
any educational, cultural, or language entity).
``(2) Attributable country.--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.
``(3) Contract.--The term `contract'--
``(A) means--
``(i) any agreement for the acquisition by purchase, lease,
or barter of property or services by the foreign source;
[[Page S5140]]
``(ii) 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
``(iii) 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
``(B) does not include an agreement made between an
institution and a foreign source regarding any payment of one
or more elements of a student's cost of attendance (as such
term is defined in section 472), unless such an agreement is
made for more than 15 students or is made under a restricted
or conditional contract.
``(4) Foreign source.--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); or
``(F) an international organization (as such term is
defined in the International Organizations Immunities Act (22
U.S.C. 288)).
``(5) Gift.--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;
or
``(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
``(iii) decorations (as such term is defined in section
7342(a) of title 5, United States Code).
``(6) Restricted or conditional gift or contract.--The term
`restricted or conditional gift or contract' means any
endowment, gift, grant, contract, award, present, or property
of any kind which includes provisions regarding--
``(A) the employment, assignment, or termination of
faculty;
``(B) the establishment of departments, centers,
institutes, instructional programs, research or lecture
programs, or new faculty positions;
``(C) the selection, admission, or education of students;
``(D) the award of grants, loans, scholarships,
fellowships, or other forms of financial aid restricted to
students of a specified country, religion, sex, ethnic
origin, or political opinion; or
``(E) any other restriction on the use of a gift or
contract.''.
(b) Prohibition on Contracts With Certain Foreign Entities
and Countries.--Part B of title I of the Higher Education Act
of 1965 (20 U.S.C. 1011 et seq.) is amended by inserting
after section 117 the following:
``SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN
ENTITIES AND COUNTRIES.
``(a) In General.--An institution shall not enter into a
contract with a foreign country of concern or a foreign
entity of concern.
``(b) Waivers.--
``(1) Submission.--
``(A) First waiver requests.--
``(i) In general.--An institution that desires to enter
into a contract with a foreign entity of concern or a foreign
country of concern may submit to the Secretary, not later
than 120 days before the institution enters into such a
contract, a request to waive the prohibition under subsection
(a) with respect to such contract.
``(ii) Contents of waiver request.--A waiver request
submitted by an institution under clause (i) shall include--
``(I) the complete and unredacted text of the proposed
contract for which the waiver is being requested, and if such
original contract is not in English, a translated copy of the
text into English (in a manner that complies with section
117(c)); and
``(II) a statement that--
``(aa) is signed by the compliance officer of the
institution designated in accordance with section 117(f); and
``(bb) includes information that demonstrates that such
contract is for the benefit of the institution's mission and
students and will promote the security, stability, and
economic vitality of the United States.
``(B) Renewal waiver requests.--
``(i) In general.--An institution that has entered into a
contract pursuant to a waiver issued under this section, the
term of which is longer than the 1-year waiver period and the
terms and conditions of which remain the same as the proposed
contract submitted as part of the request for such waiver may
submit, not later than 120 days before the expiration of such
waiver period, a request for a renewal of such waiver for an
additional 1-year period (which shall include any information
requested by the Secretary).
``(ii) Termination.--If the institution fails to submit a
request under clause (i) or is not granted a renewal under
such clause, such institution shall terminate such contract
on the last day of the original 1-year waiver period.
``(2) Waiver issuance.--The Secretary--
``(A) not later than 60 days before an institution enters
into a contract pursuant to a waiver request under paragraph
(1)(A), or before a contract described in paragraph (1)(B)(i)
is renewed pursuant to a renewal request under such
paragraph, shall notify the institution--
``(i) if the waiver or renewal will be issued by the
Secretary; and
``(ii) in a case in which the waiver or renewal will be
issued, the date on which the 1-year waiver period starts;
and
``(B) may only issue a waiver under this section to an
institution if the Secretary determines, in consultation with
the heads of each agency and department listed in section
117(e), that the contract for which the waiver is being
requested is for the benefit of the institution's mission and
students and will promote the security, stability, and
economic vitality of the United States.
``(3) Disclosure.--Not less than 2 weeks prior to issuing a
waiver under paragraph (2), the Secretary shall notify the--
``(A) the Committee on Health, Education, Labor, and
Pensions of the Senate, of the intent to issue the waiver,
including a justification for the waiver; and
``(B) the Committee on Education and the Workforce of the
House of Representatives.
``(4) Application of waivers.--A waiver issued under this
section to an institution with respect to a contract shall
only--
``(A) waive the prohibition under subsection (a) for a 1-
year period; and
``(B) apply to the terms and conditions of the proposed
contract submitted as part of the request for such waiver.
``(c) Designation During Contract Term.--In the case of an
institution that enters into a contract with a foreign source
that is not a foreign country of concern or a foreign entity
of concern, but which, during the term of such contract, is
designated as a foreign country of concern or foreign entity
of concern, such institution shall terminate such contract
not later than 60 days after the Secretary notifies the
institution of such designation.
``(d) Contracts Prior to Date of Enactment.--
``(1) In general.--In the case of an institution that has
entered into a contract with a foreign country of concern or
foreign entity of concern prior to the date of the enactment
of the DETERRENT Act--
``(A) the institution shall immediately submit to the
Secretary a waiver request, in accordance with subsection
(b)(1)(A)(ii); and
``(B) the Secretary shall, upon receipt of the request
submitted under subparagraph (A), immediately issue a waiver
to the institution for a period beginning on the date on
which the waiver is issued and ending on the earlier of--
``(i) the date that is 1 year after the date of the
enactment of the DETERRENT Act; or
``(ii) the date on which the contract terminates.
``(2) Renewal.--An institution that has entered into a
contract described in paragraph (1), the term of which is
longer than the waiver period described in subparagraph (B)
of such paragraph and the terms and conditions of which
remain the same as the contract submitted as part of the
request required under subparagraph (A) of such paragraph,
may submit a request for renewal of the waiver issued under
such paragraph in accordance with subsection (b)(1)(B).
``(e) Contract Defined.--The term `contract' has the
meaning given such term in section 117(g).''.
(c) Interagency Information Sharing.--Not later than 90
days after the date of enactment of this Act, the Secretary
of Education shall transmit to the heads of each agency and
department listed in section 117(e) of the Higher Education
Act of 1965, as amended by this subtitle--
(1) any report received by the Department of Education
under section 117 of the Higher Education Act of 1965 (20
U.S.C. 1011f) prior to the date of the enactment of this Act;
and
(2) any report, document, or other record generated by the
Department of Education in the course of an investigation--
(A) of an institution with respect to the compliance of
such institution with such section; and
(B) initiated prior to the date of the enactment of this
Act.
[[Page S5141]]
SEC. ___. POLICY REGARDING CONFLICTS OF INTEREST FROM FOREIGN
GIFTS AND CONTRACTS.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.),
as amended by this subtitle, is further amended by inserting
after section 117A the following:
``SEC. 117B. 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 DETERRENT 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 date of enactment 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 entered into with a foreign source in
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 commences and,
as applicable, the date on which such contract terminates;
``(C) any contract with a foreign source in force during
the previous calendar year that has an undetermined monetary
value, and including the date on which such contract
commences and, as applicable, the date on which such contract
terminates; and
``(D) any contract entered into with a foreign country of
concern or foreign entity of concern in the previous calendar
year, the value of which is $0 or more, and including the
beginning and ending dates of such contract and 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) begins; 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 by--
``(i) the date received (if a gift) or the date commenced
(if a contract);
``(ii) the attributable country with respect to which
information is being disclosed;
``(iii) the narrowest of the department, school, or college
of the institution, as applicable, for which the individual
making the disclosure works; and
``(iv) the name of the foreign source (other than a foreign
source who is a natural person);
``(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
117D(a)(1) or responses to requests under section 552 of
title 5, United States Code (commonly known as the `Freedom
of Information Act'), 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 5 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 terms `foreign source' and `gift' have the
meanings given such terms in section 117(g);
``(2) the term `contract'--
``(A) means any--
``(i) agreement for the acquisition, by purchase, lease, or
barter of property or services by a foreign source;
``(ii) affiliation, agreement, or similar transaction with
a foreign source involving the use or exchange of the name,
likeness, time, services, or resources of covered individuals
employed at an institution described in subsection (b); or
``(iii) purchase, lease, or barter of property or services
from a foreign source that is a foreign country of concern or
a foreign entity of concern; and
``(B) does not include any fair-market, arms-length
agreement made by covered individuals for the acquisition, by
purchase, lease, or barter of property or services from a
foreign source other than such a foreign source that is 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.''.
SEC. ___. INVESTMENT DISCLOSURE REPORT.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.),
as amended by this subtitle, is further amended by inserting
after section 117B the following:
``SEC. 117C. INVESTMENT DISCLOSURE REPORT.
``(a) Investment Disclosure Report.--A specified
institution shall file a disclosure report in accordance with
subsection (b) with the Secretary on July 31 immediately
following any calendar year in which the specified
institution purchases, sells, or holds (directly or
indirectly through any chain of ownership) one or more
investments of concern.
``(b) Contents of Report.--Each report to the Secretary
required by subsection (a) with respect to any calendar year
shall contain the following:
``(1) A list of the investments of concern purchased, sold,
or held during such calendar year.
``(2) The aggregate fair market value of all investments of
concern held as of the close of such calendar year.
``(3) The combined value of all investments of concern sold
over the course of such calendar year, as measured by the
fair market value of such investments at the time of the
sale.
``(4) The combined value of all capital gains from such
sales of investments of concern.
``(c) Inclusion of Certain Pooled Funds.--
``(1) In general.--An investment of concern acquired
through a regulated investment company, exchange traded fund,
or any other pooled investment shall be treated as acquired
through a chain of ownership referred to in subsection (a),
unless such pooled investment is certified by the Secretary
as not holding any listed investments in accordance with
subparagraph (B) of paragraph (2).
``(2) Certifications of pooled funds.--The Secretary, after
consultation with the Secretary of the Treasury, shall
establish procedures under which certain regulated investment
companies, exchange traded funds, and other pooled
investments--
``(A) shall be reported in accordance with the requirements
under subsection (b); and
``(B) may be certified by the Secretary as not holding any
listed investments.
``(d) Treatment of Related Organizations.--For purposes of
this section, assets held by any related organization (as
defined in section 4968(d)(2) of the Internal Revenue Code of
1986) with respect to a specified institution shall be
treated as held by such specified institution, except that--
``(1) such assets shall not be taken into account with
respect to more than 1 specified institution; and
``(2) unless such organization is controlled by such
institution or is described in section 509(a)(3) of the
Internal Revenue Code of 1986 with respect to such
institution, assets which are not intended or available for
the use or benefit of such specified institution shall not be
taken into account.
``(e) Valuation of Debt.--For purposes of this section, the
fair market value of any debt shall be the principal amount
of such debt.
``(f) Regulations.--The Secretary, after consultation with
the Secretary of the Treasury, may issue such regulations or
other guidance as may be necessary or appropriate to carry
out the purposes of this section, including regulations or
other guidance providing for the proper application of this
section with respect to certain regulated investment
companies, exchange traded funds, and pooled investments.
``(g) Compliance Officer.--Any specified institution that
is required to submit a report under subsection (a) shall
designate, before the submission of such report, and maintain
a compliance officer, who shall--
``(1) be a current employee or legally authorized agent of
such institution;
``(2) be responsible, on behalf of the institution, for
personally certifying accurate compliance with the reporting
requirements under this section; and
``(3) certify the institution has, for purposes of filing
such report under subsection (a), followed an established
institutional policy and conducted good faith efforts and
reasonable due diligence to determine the accuracy and
valuations of the assets reported.
[[Page S5142]]
``(h) Database Requirement.--Beginning not later than 60
days before the July 31 immediately following the date of the
enactment of the DETERRENT Act, the Secretary shall--
``(1) establish and maintain a searchable database on a
website of the Department, under which all reports submitted
under this section--
``(A) are made publicly available (in electronic and
downloadable format), including any information provided in
such reports;
``(B) can be individually identified and compared; and
``(C) are searchable and sortable; and
``(2) not later than 30 days after receipt of a disclosure
report under this section, include such report in such
database.
``(i) Definitions.--In this section:
``(1) Investment of concern.--
``(A) In general.--The term `investment of concern' means
any specified interest with respect to any of the following:
``(i) A foreign country of concern.
``(ii) A foreign entity of concern.
``(B) Specified interest.--The term `specified interest'
means, with respect to any entity--
``(i) stock or any other equity or profits interest of such
entity;
``(ii) debt issued by such entity; and
``(iii) any contract or derivative with respect to any
property described in clause (i) or (ii).
``(2) Specified institution.--
``(A) In general.--The term `specified institution', as
determined with respect to any calendar year, means an
institution if--
``(i) such institution is not a public institution; and
``(ii) the aggregate fair market value of--
``(I) the assets held by such institution at the end of
such calendar year (other than those assets which are used
directly in carrying out the institution's exempt purpose) is
in excess of $6,000,000,000; or
``(II) the investments of concern held by such institution
at the end of such calendar year is in excess of
$250,000,000.
``(B) References to certain terms.--For the purpose of
applying the definition under subparagraph (A), the terms
`aggregate fair market value' and `assets which are used
directly in carrying out the institution's exempt purpose'
shall be applied in the same manner as such terms are applied
for the purposes of section 4968(b)(1)(D) of the Internal
Revenue Code of 1986.''.
SEC. ___. 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 subtitle, is further amended by inserting after section
117C the following:
``SEC. 117D. ENFORCEMENT; SINGLE POINT-OF-CONTACT.
``(a) Enforcement.--
``(1) Investigation.--The Secretary (acting through the
General Counsel of the Department) shall conduct
investigations of possible violations of sections 117, 117A,
117B, and 117C by institutions and, whenever it appears that
an institution has knowingly or willfully failed to comply
with a requirement of any of such sections (including any
rule or regulation promulgated under any such section), 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 sections listed in paragraph (1)
(including any rule or regulation promulgated under any such
section) based on such an investigation, 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 section that has been violated.
``(3) Costs and other fines.--An institution that is
compelled to comply with a requirement of a section 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 section, including all associated costs
of investigation and enforcement; and
``(B) be subject to the applicable fines described in
paragraph (4).
``(4) Fines for violations.--The Secretary shall impose a
fine on an institution that knowingly or willfully fails to
comply with a requirement of a section listed in paragraph
(1) as follows:
``(A) Section 117.--
``(i) First-time violations.--In the case of an institution
that knowingly or willfully fails to comply with a
requirement of section 117 with respect to a calendar year,
and that has not previously knowingly or willfully failed to
comply with such a requirement, the Secretary shall impose a
fine on the institution for such violation as follows:
``(I) In the case of an institution that knowingly or
willfully fails to comply with a reporting requirement under
subsection (a)(1) of section 117, such fine shall be in an
amount that is--
``(aa) for each gift or contract with determinable value
that is the subject of such a failure to comply, the greater
of--
``(AA) $50,000; or
``(BB) the monetary value of such gift or contract; or
``(bb) for each gift or contract of no value or of
indeterminable value, not less than 1 percent, and not more
than 10 percent of the total amount of Federal funds received
by the institution under this Act for the most recent fiscal
year.
``(II) In the case of an institution that knowingly or
willfully fails to comply with the reporting requirement
under subsection (a)(2) of section 117, such fine shall be in
an amount that is not less than 10 percent of the total
amount of Federal funds received by the institution under
this Act for the most recent fiscal year.
``(ii) Subsequent violations.--In the case of an
institution that has been fined pursuant to clause (i) with
respect to a calendar year, and that knowingly or willfully
fails to comply with a requirement of section 117 with
respect to any additional calendar year, the Secretary shall
impose a fine on the institution with respect to any such
additional calendar year as follows:
``(I) In the case of an institution that knowingly or
willfully fails to comply with a reporting requirement under
subsection (a)(1) of section 117 with respect to an
additional calendar year, such fine shall be in an amount
that is--
``(aa) for each gift or contract with determinable value
that is the subject of such a failure to comply, the greater
of--
``(AA) $100,000; or
``(BB) twice the monetary value of such gift or contract;
or
``(bb) for each gift or contract of no value or of
indeterminable value, not less than 1 percent, but not more
than 10 percent, of the total amount of Federal funds
received by the institution under this Act for the most
recent fiscal year.
``(II) In the case of an institution that knowingly or
willfully fails to comply with a reporting requirement under
subsection (a)(2) of section 117 with respect to an
additional calendar year, such fine shall be in an amount
that is not less than 20 percent of the total amount of
Federal funds received by the institution under this Act for
the most recent fiscal year.
``(B) Section 117a.--
``(i) First-time violations.--In the case of an institution
that knowingly or willfully fails to comply with a
requirement of section 117A for the first time, the Secretary
shall impose a fine on the institution in an amount that is
not less than 5 percent, but not more than 10 percent, of the
total amount of Federal funds received by the institution
under this Act for the most recent fiscal year.
``(ii) Subsequent violations.--In the case of an
institution that has been fined pursuant to clause (i), the
Secretary shall impose a fine on the institution for each
subsequent time the institution knowingly or willfully fails
to comply with a requirement of section 117A in an amount
that is not less than 20 percent of the total amount of
Federal funds received by the institution under this Act for
the most recent fiscal year.
``(C) Section 117b.--
``(i) First-time violations.--In the case of an institution
that knowingly or willfully fails to comply with a
requirement of section 117B with respect to a calendar year,
and that has not previously knowingly or willfully failed to
comply with such a requirement, the Secretary shall impose a
fine on the institution in an amount that is the greater of--
``(I) $250,000; or
``(II) the total amount of gifts or contracts reported by
such institution in the database required under section
117B(a)(2).
``(ii) Subsequent violations.--In the case of an
institution that has been fined pursuant to clause (i) with
respect to a calendar year, and that knowingly or willfully
fails to comply with a requirement of section 117B with
respect to any additional calendar year, the Secretary shall
impose a fine on the institution with respect to any such
additional calendar year in an amount that is the greater
of--
``(I) $500,000; or
``(II) twice the total amount of gifts or contracts
reported by such institution in the database required under
section 117B(a)(2).
``(D) Section 117c.--
``(i) First-time violations.--In the case of a specified
institution that knowingly or willfully fails to comply with
a requirement of section 117C with respect to a calendar
year, and that has not previously knowingly or willfully
failed to comply with such a requirement, the Secretary shall
impose a fine on the institution in an amount that is not
less than 50 percent and not more than 100 percent of the sum
of--
``(I) the aggregate fair market value of all investments of
concern held by such institution as of the close of such
calendar year; and
``(II) the combined value of all investments of concern
sold over the course of such calendar year, as measured by
the fair market value of such investments at the time of the
sale.
``(ii) Subsequent violations.--In the case of a specified
institution that has been fined pursuant to clause (i) with
respect to a calendar year, and that knowingly or willfully
fails to comply with a requirement of section 117C with
respect to any additional calendar year, the Secretary shall
impose a fine on the institution with respect to any such
additional calendar year in an amount that is not less than
100 percent and not more than 200 percent of the sum of--
[[Page S5143]]
``(I) the aggregate fair market value of all investments of
concern held by such institution as of the close of such
additional calendar year; and
``(II) the combined value of all investments of concern
sold over the course of such additional calendar year, as
measured by the fair market value of such investments at the
time of the sale.
``(E) Ineligibility for waiver.--In the case of an
institution that has been fined pursuant to subparagraph
(A)(i), (B)(i) (C)(i), or (D)(i) with respect to a calendar
year, and that knowingly or willfully fails to comply with a
requirement of section 117, 117A, 117B, or 117C with respect
to any 2 additional calendar years, the Secretary shall
prohibit the institution from obtaining a waiver, or a
renewal of a waiver, under section 117A.
``(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 sections 117, 117A, 117B, and 117C;
``(2) coordinate and implement technical improvements to
the database described in section 117(d)(1), including--
``(A) improving upload functionality by allowing for batch
reporting, including by allowing institutions to upload one
file with all required information into the database;
``(B) publishing and maintaining a database users guide
annually, including information on how to edit an entry and
how to report errors;
``(C) creating a standing user group (to which chapter 10
of title 5, United States Code, shall not apply) to discuss
possible database improvements, which group shall--
``(i) include at least--
``(I) 3 members representing public institutions with high
or very high levels of research activity (as defined by the
National Center for Education Statistics);
``(II) 2 members representing private, nonprofit
institutions with high or very high levels of research
activity (as so defined);
``(III) 2 members representing proprietary institutions of
higher education (as defined in section 102(b)); and
``(IV) 2 members representing area career and technical
education schools (as defined in subparagraph (C) or (D) of
section 3(3) of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302(3)); and
``(ii) meet at least twice a year with officials from the
Department to discuss possible database improvements;
``(D) publishing, on a publicly available website,
recommended database improvements following each meeting
described in subparagraph (C)(ii); and
``(E) responding, on a publicly available website, to each
recommendation published under subparagraph (D) as to whether
or not the Department will implement the recommendation,
including the rationale for either approving or rejecting the
recommendation;
``(3) provide, every 90 days after the date of enactment of
the DETERRENT Act, 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;
``(4) 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
``(5) not later than 7 days after making an update to the
list maintained in paragraph (4)(A), notify each institution
required to comply with the sections listed in paragraph (1)
of such update.
``(c) Definitions.--For purposes of sections 117, 117A,
117B, 117C, and this section:
``(1) Foreign country of concern.--The term `foreign
country of concern' includes the following:
``(A) A country that is a covered nation (as defined in
section 4872(d) of title 10, United States Code).
``(B) Any country that the Secretary, in consultation with
the Secretary of Defense, the Secretary of State, and the
Director of National Intelligence, determines 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 117, 117A, 117B, and 117C.
``(B) An institution that, for 3 consecutive institutional
fiscal years, violates any requirement of any of the sections
listed in subparagraph (A), shall--
``(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) 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 117, 117A, 117B,
and 117C of the Higher Education Act of 1965 (20 U.S.C.
1011f), as amended or added by this title, 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).
______