[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).
                                 ______