DETERRENT Act
Officially: “DETERRENT Act” Read the full text
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Sec. 1Short title
This section gives the Act a short title: the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act, or the DETERRENT Act.
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1. Short title This Act may be cited as the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act or the DETERRENT Act .
Sec. 2Disclosures of foreign gifts
This section would rewrite the law that requires colleges and universities to disclose gifts and contracts from foreign sources, and would add a new, separate rule banning certain contracts with foreign countries and entities the government treats as concerns.
Reporting requirement: A college would have to file a disclosure report with the Secretary of Education by July 31 of the year after any calendar year in which it (1) receives a gift from, or signs a contract with, a foreign source other than a foreign country of concern or foreign entity of concern, and that gift or contract is worth $50,000 or more (alone or combined with everything else from that same source that year) or has an undetermined value, or (2) receives a gift from a foreign country of concern or foreign entity of concern, or (after getting a waiver) signs a contract with one, no matter the dollar amount. Separately, a college that is substantially controlled by a foreign source would have to file a report every July 31, regardless of gifts or contracts. A gift to, or contract with, an organization affiliated with the college (such as its foundation) would count as a gift to, or contract with, the college itself.
What the report must contain: For every reportable gift or contract, the college would have to disclose who at the college received the gift or is carrying out the contract, the foreign source's stated purpose for it (or, if none was stated, how the college plans to use it), and any restrictions or conditions attached. For gifts, the college would disclose the dollar value and the date received; for contracts, the dollar value and the dates the contract is signed, takes effect, and (if applicable) ends, plus a promise to keep an unredacted copy of the contract until the latest of five years after it takes effect, its termination date, or as long as state law requires, and to hand over that unredacted copy if the Department investigates. If the gift or contract documents are not in English, the college would have to certify that they were translated into English by someone unaffiliated with the foreign source. If the foreign source is a foreign government (other than a country of concern), the college would also disclose the government's name and the name and mailing address of the government office that approved the gift or contract. If the foreign source is not a government, the college would disclose the source's legal name (or a certified statement that it tried in good faith to find the name), the source's country of citizenship or incorporation (or principal residence or place of business if that is not known), its mailing address (or a certified good-faith statement), and any ties to a designated foreign terrorist organization. For a contract with a foreign country of concern or foreign entity of concern, the college would have to submit the complete, unredacted contract text (translated if needed), a copy of the waiver it received to sign the contract, and the statement it submitted to get that waiver. A college reporting foreign ownership or control would disclose the controlling foreign source's legal name and address, the date control began, and any resulting changes to the college's programs or structure.
Public database: By May 31 of the year after enactment, the Secretary would have to build a public, searchable, downloadable database containing every report filed under this law, including reports filed before enactment, adding each new report within 30 days of receiving it. The database would let the public search and sort reports by the filing college, filing date, gift or contract dates, the country tied to the gift or contract, and the foreign source's name (except for sources who are individuals), and would flag whether each report involves a foreign government or a non-government source, and whether a report is missing the foreign source's name or address. The Secretary could not publish the name or address of a foreign source who is an individual, whether in the public database or in response to a Freedom of Information Act request, though the source's country would still be shown.
Sharing with other agencies: Within 30 days of receiving a disclosure report, the Secretary would have to send an unredacted copy, including the foreign source's name and address, to the FBI Director, the Director of National Intelligence, the CIA Director, and the Secretaries of State, Defense, Commerce, Homeland Security, and Energy, plus the Attorney General and the Directors of the National Science Foundation and the National Institutes of Health.
Key definitions: A reportable gift would include money, property, resources, staff, or services, but would exclude cost-of-attendance payments or scholarships from an individual foreign person acting on their own (not as anyone's agent) covering 15 or fewer students and not tied to a restricted or conditional contract, and would exclude non-controlled intellectual-property licensing and certain federal decorations. A reportable contract would include agreements to buy, lease, or barter property or services with a foreign source, and agreements to use or exchange the college's name, likeness, time, services, or resources, but would exclude ordinary arm's-length purchases from foreign sources that are not countries or entities of concern, and would exclude student cost-of-attendance payment arrangements covering 15 or fewer students unless restricted or conditional. A foreign source would include foreign governments and their agencies, entities created under foreign law, entities substantially controlled by a foreign source, non-U.S. citizens, agents acting for a foreign source (including subsidiaries, affiliated foundations, and registered foreign agents), and certain international organizations. A restricted or conditional gift or contract would be one with strings attached covering faculty hiring or firing, creating academic departments or programs, admitting or educating students, awarding financial aid limited to students of a particular country, religion, sex, ethnicity, or political opinion, or any other restriction on how the money is used.
Ban on contracts with countries and entities of concern: This section would also bar colleges from entering into any contract with a foreign country of concern or foreign entity of concern unless the Secretary of Education grants a one-year waiver covering that specific contract's terms. To get a waiver, a college would have to apply at least 120 days before signing the contract, submitting the complete, unredacted (and translated, if needed) contract text along with a statement, certified by its compliance officer, showing the contract benefits the college's mission and students and promotes the security, stability, and economic vitality of the United States. The Secretary could grant the waiver only after finding, in consultation with the officials listed above (FBI, DNI, CIA, State, Defense, Commerce, Homeland Security, Energy, DOJ, NSF, NIH), that the contract meets that same mission-and-security standard, and would have to tell the college at least 60 days beforehand whether the waiver will be granted and, if so, when the one-year period starts. At least two weeks before issuing any waiver, the Secretary would have to notify the relevant congressional committees of the plan to issue it, along with the reasons. If the underlying contract runs longer than one year and its terms have not changed, the college could apply for a one-year renewal at least 120 days before the current waiver expires; if it does not apply, or the renewal is denied, the college would have to end the contract on the last day of the original waiver period. If a college's existing contract partner is later designated a country or entity of concern during the contract's term, the college would have to end the contract within 60 days of being notified of that designation. Colleges that already have contracts with a country or entity of concern when this Act becomes law would have to request a waiver within 30 days of enactment, and the Secretary would have to grant one covering the period until the earlier of one year after enactment or the contract's end date, with the same renewal option available if the contract runs longer.
One-time records handoff: Within 90 days of enactment, the Secretary of Education would have to send the same group of federal officials (FBI, DNI, CIA, State, Defense, Justice, Commerce, Homeland Security, Energy, NSF, NIH) copies of every foreign-gift disclosure report the Department received before this Act became law, plus any records generated by investigations into a college's compliance with the disclosure law that began before enactment.
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2. 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: 117. Disclosures of foreign gifts (a) Disclosure reports (1) Aggregate gifts and contract disclosures An institution shall file with the Secretary, in accordance with subsection (b)(1), a disclosure report 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— (i) receives a gift from a foreign country of concern or foreign entity of concern; or (ii) 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 Notwithstanding paragraph (1), in the case of an institution that is substantially controlled (as described in section 668.174(c)(3) of title 34, Code of Federal Regulations) (or successor regulations)) by a foreign source, the institution shall file with the Secretary, in accordance with subsection (b)(2), a disclosure report 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 other entity at the institution receiving the gift or carrying out the contract on behalf of the institution; (II) the foreign source’s intended purpose of such gift or contract, or, in the absence of such a purpose, the manner in which the institution intends to use such gift or contract; 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 the institution enters into such contract; (III) the date on which such contract first takes effect; (IV) as applicable, the date on which such contract terminates; and (V) 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 such contract first takes effect; (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 accordance with 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 section 117D(c) 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 section 117D(c) 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 in accordance with 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)(2). (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 May 31 of the calendar year following the date of 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 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— (I) by the institution that filed such report; (II) by the date on which the institution filed such report; (III) by the date on which the institution received the gift which is the subject of the report; (IV) by the date on which the institution enters into the contract which is the subject of the report; (V) by the date on which such contract first takes effect; (VI) by the attributable country of such gift or contract; (VII) by the name of the foreign source (other than a foreign source that is a natural person); (VIII) by the information described in subparagraph (C)(i); and (IX) by the information described in subparagraph (C)(ii); (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) 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; (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 ); and (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 successor 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: 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) In general 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. (2) 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 certified by the compliance officer of the institution designated in accordance with section 117D(c); and (bb) includes information that demonstrates that such contract— (AA) is for the benefit of the institution’s mission and students; and (BB) will promote the security, stability, and economic vitality of the United States. (B) Renewal waiver requests (i) In general An institution that, pursuant to a waiver issued under this section, has entered into a contract, 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. (3) Waiver issuance The Secretary— (A) not later than 60 days before an institution enters into a contract pursuant to a waiver request under paragraph (2)(A), or before a contract described in paragraph (2)(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 each individual listed in section 117(e), that the contract for which the waiver is being requested— (i) is for the benefit of the institution’s mission and students; and (ii) will promote the security, stability, and economic vitality of the United States. (4) Disclosure Not less than 2 weeks prior to issuing a waiver under paragraph (2), the Secretary shall notify the authorizing committees of the intent to issue the waiver, including a justification for the 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 enactment of the DETERRENT Act — (A) the institution shall as soon as practicable, but not later than 30 days after such date of enactment, submit to the Secretary a waiver request in accordance with clause (ii) of subsection (b)(2)(A); and (B) the Secretary shall, upon receipt of the request submitted under such clause, issue a waiver to the institution for a period beginning on the date on which the waiver is issued and ending on the sooner of— (i) the date that is 1 year after the date of 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)(2)(B). (e) Contract defined The term contract has the meaning given such term in section 117(f). . (c) Interagency information sharing Not later than 90 days after the date of enactment of this Act, the Secretary of Education shall transmit to each individual listed in section 117(e) of the Higher Education Act of 1965, as amended by this Act— (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 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 enactment of this Act.
Sec. 3Policy regarding conflicts of interest from foreign gifts and contracts
This section would require certain colleges to police gifts and contracts that foreign sources give directly to their faculty and staff, separate from the college-level disclosures in the previous section.
Starting 90 days after enactment, a covered college (defined below) would have to maintain a policy requiring its covered individuals (employees covered by an existing federal research-security definition and related government guidance) to report to the college, every July 31 starting the year after enactment, the following about the prior calendar year: any gift from a foreign source worth more than the government's minimal-value threshold or of undetermined value, with the date received; any contract with a foreign source (other than a country or entity of concern) worth $5,000 or more (alone or combined with other contracts from that source that year) that was active during the year, with the dates it was signed, took effect, and (if applicable) ended; any such contract of undetermined value that was active during the year, with the same dates; and any contract with a foreign country of concern or foreign entity of concern that was active during the year, whatever its value (including zero or undetermined), with the same dates plus the full text of the contract and any addenda.
The college would also have to maintain a public, searchable, downloadable database of this information (leaving out the employee's name and other personal details), publishing each disclosure within 30 days of receiving it and keeping it public until the later of five years after the gift or contract takes effect, or the contract's end date, searchable by relevant dates, the country tied to the gift or contract, the employee's department, school, or college, and the foreign source's name (except for individual sources). The college would also need an effective plan to spot and manage possible foreign espionage aimed at these employees through such gifts or contracts, using periodic communication with employees, accurate reporting, and enforcement of the disclosure policy, and would have to keep a private (non-public) record of which employees made disclosures, for use in investigations or Freedom of Information Act requests.
This requirement would apply to a college only if it is eligible for federal student aid programs under Title IV, and either received more than $50,000,000 in federal research and development funding in any of the past five years (as measured by the Higher Education Research and Development Survey), or receives funding under Title VI (international and foreign language education programs).
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3. 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 the preceding section, is further amended by inserting after section 117A the following: 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 enactment date 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 with a foreign source (other than a foreign country of concern or foreign entity of concern) entered into or in effect during 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 is entered into, the date on which the contract first takes effect, and, as applicable, the date on which such contract terminates; (C) any contract with a foreign source (other than a foreign country of concern or foreign entity of concern) entered into or in effect during the previous calendar year that has an undetermined monetary value, and including the date on which such contract is entered into, the date on which the contract first takes effect, and, as applicable, the date on which such contract terminates; and (D) any contract entered into or in effect with a foreign country of concern or foreign entity of concern during the previous calendar year, the value of which is $0 or more or which has an undetermined monetary value, and including— (i) the date on which such contract is entered into; (ii) the date on which the contract first takes effect; (iii) as applicable, the date on which such contract terminates; and (iv) 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) first takes effect; 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— (i) if the subject of the disclosure is a gift, by the date on which the gift is received; (ii) if the subject of the disclosure is a contract— (I) by the date on which such contract is entered into; and (II) by the date on which such contract first takes effect; (iii) by the attributable country with respect to which information is being disclosed; (iv) by the narrowest of the department, school, or college of the institution, as applicable, for which the individual making the disclosure works; and (v) by the name of the foreign source (other than a foreign source who is a natural person); and (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 ), a record of 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 five 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 attributable country , foreign source , and gift have the meanings given such terms in section 117(f); (2) the term contract means— (A) any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source; (B) 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 (C) 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 (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 (or any successor guidance). .
Sec. 4Investment disclosure report
This section would create a separate annual disclosure requirement for a college's financial investments tied to foreign countries or entities of concern, applying only to large, non-public institutions.
A covered specified institution would have to file a report with the Secretary of Education each July 31 following any calendar year in which it bought, sold, or held, directly or indirectly, one or more investments of concern, meaning stock or other equity or profit interests, debt, or contracts or derivatives tied to those, in a foreign country of concern or foreign entity of concern. The report would have to list every such investment bought, sold, or held that year, the total fair market value of all such investments held at year-end, the combined value of all such investments sold that year (measured at the time of sale), and the combined capital gains from those sales.
An interest in a mutual fund, exchange-traded fund, or other pooled investment that itself holds an investment of concern would count as an investment of concern and would have to be reported, unless the Secretary certifies that the pooled investment does not hold one; the Secretary, after consulting the Treasury Department and the Securities and Exchange Commission, would have to set up the procedures for that reporting and certification process, and could issue further regulations or guidance as needed. Assets held by a related organization of the institution (as defined in existing tax law) would count as the institution's own assets for this purpose, except that the same assets could not be counted for more than one institution, and, if the related organization is not controlled by the institution and is not one of its supporting organizations under tax law, any of that organization's assets that are not intended or available for the institution's use or benefit would not count. For valuing debt, fair market value would mean the debt's principal amount.
By May 31 of the year after enactment, the Secretary would have to build a public, searchable, downloadable database of all reports filed under this section, adding each within 30 days of receipt.
This requirement would apply only to a specified institution, meaning a non-public college whose year-end assets (other than assets used directly for its tax-exempt purpose) exceed $6,000,000,000, or whose investments of concern exceed $250,000,000 at year-end, using the same asset-value definitions used elsewhere in tax law for college endowment taxes.
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4. Investment disclosure report The Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq. ), as amended by this Act, is further amended by inserting after section 117B the following: 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 each 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) shall contain, with respect to the calendar year preceding the calendar year in which such report is filed, the following information: (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) Treatment of certain pooled investments (1) Pooled investment classification (A) In general For purposes of this section, except as provided in subparagraph (B), a specified interest acquired by a specified institution in a regulated investment company, exchange traded fund, or any other pooled investment that holds an investment of concern shall be treated as an investment of concern and shall be reported pursuant to paragraph (2)(A). (B) Certification of pooled investment Notwithstanding subparagraph (A), such specified interest shall not be subject to subparagraph (A) if the Secretary certifies, pursuant to paragraph (2)(B), that such pooled investment is not holding an investment of concern. (2) Procedures The Secretary, after consultation with the Secretary of the Treasury and the Securities and Exchange Commission, shall establish procedures under which a pooled investment described in paragraph (1)— (A) shall be reported in accordance with the requirements of subsection (b); and (B) may be certified under paragraph (1)(B) as not holding an investment of concern. (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 and the Securities and Exchange Commission, 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) Database requirement Beginning not later than May 31 of the calendar year following the date of 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. (h) 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. 5Enforcement and other general provisions
This section would set up enforcement for the disclosure and contract rules created by the previous three sections, create a single Department of Education contact point for colleges, and require colleges to designate a compliance officer.
Enforcement: The Secretary of Education, acting through the Department's General Counsel, would have to investigate possible violations of the gift and contract disclosure rules, the contract ban, the faculty and staff disclosure rules, the investment disclosure rule, and this section's own requirement (described below) that institutions maintain a compliance policy and a designated compliance officer. Whenever an institution appears to have knowingly or willfully failed to comply with any of those requirements, the Secretary would have to ask the Attorney General to sue. The Attorney General, at the Secretary's request, would then bring a civil action in the appropriate U.S. district court (or territorial court) asking the court to order the institution to comply. If the court compels compliance, the institution would have to pay the U.S. Treasury the government's full costs of investigating and enforcing the matter, and the Secretary (not the court) would have to impose a fine.
The fines would vary by which requirement was violated and whether it is a first-time or repeat violation. For a first-time gift or contract reporting violation, the fine per gift or contract with a known value would be the greater of $50,000 or that gift or contract's value; for gifts or contracts of no or unknown value, the fine would be 1 to 10 percent of the institution's federal funding under this Act for the most recent year. Failing the separate foreign-ownership-or-control report would draw a fine of at least 10 percent of that federal funding. Repeat violations would roughly double these penalties: the greater of $100,000 or twice the gift or contract's value, 5 to 10 percent of federal funding for unknown-value items, and at least 20 percent of federal funding for ownership-or-control failures. Violating the ban on contracts with countries or entities of concern would draw a fine of 5 to 10 percent of federal funding for a first violation and at least 20 percent for a repeat violation. Violating the faculty and staff disclosure rule would draw a fine of the greater of $250,000 or the total value of the gifts or contracts the institution is ordered to report, for a first violation, or the greater of $500,000 or twice that total, for a repeat violation. Violating the investment disclosure rule would draw a fine of 50 to 100 percent of the combined value of the investments of concern held and sold during the relevant years, for a first violation, or 100 to 200 percent of that combined value, for a repeat violation. An institution fined for a repeat violation of the gift and contract disclosure rules, the contract ban, the faculty and staff disclosure rules, or the investment disclosure rule would be barred by the Secretary from getting, or renewing, a waiver to contract with a country or entity of concern; the bill does not say how long this bar would last.
Single point of contact: The Secretary would have to designate one Department contact to answer college questions about complying with these requirements; to improve the public gift-and-contract database, including adding batch file uploads, publishing an annual user guide, and creating a standing user group of research institutions, private nonprofit institutions, proprietary schools, and career and technical schools that meets with the Department at least twice a year, with the group's suggestions and the Department's public yes-or-no responses posted online; to give Congress's authorizing committees, and any institution under investigation, a status update on pending and completed investigations and lawsuits every 90 days; and to keep a public, dated list of every foreign country and entity of concern, notifying affected institutions within 7 days of any update to that list.
Compliance officer: Any institution that must file a gift, contract, or investment report, seeks a waiver to contract with a country or entity of concern, or is subject to the faculty and staff disclosure rule would have to adopt a written policy for meeting these requirements and designate an employee or authorized agent as its compliance officer by the time it first files, requests a waiver, or must comply. That compliance officer would have to personally certify the institution's accurate compliance with its reporting duties, that the institution followed its own policy and made good-faith, reasonably diligent efforts (including on investment valuations), and other specific statements those rules require the officer to certify, including the mission-and-security statement submitted with a contract waiver request.
This section also defines foreign country of concern as a country already covered under an existing defense-law definition, or any country the Secretary, after consulting the Secretaries of Defense and State and the Director of National Intelligence, determines is acting against U.S. national security or foreign policy; foreign entity of concern using an existing federal research-security law definition, including entities on a specific Defense Department list; and institution as a college covered by the Higher Education Act's general definition, with one carve-out from that definition excluded.
Program participation agreements: Every college's agreement to participate in federal student aid programs would have to include a promise to comply with the gift and contract disclosure rules, the contract ban, the faculty and staff disclosure rule, and the investment disclosure rule (and the compliance officer requirement). A college that has been hit with three separate court-ordered compliance actions under these rules, and as a result is barred from getting a waiver to contract with a country or entity of concern, would become ineligible to participate in federal student aid programs for at least two of its fiscal years, and could only regain eligibility by demonstrating full compliance with all these requirements for at least two fiscal years after the year it lost eligibility.
GAO study: Within 180 days of enactment, the Comptroller General would have to start a study on how federal agencies could better coordinate on implementing and enforcing these disclosure, contract-ban, and compliance rules, including improving information sharing, raising compliance rates, and setting up enforcement processes. Within 3 years of enactment, the Comptroller General would have to submit a public report to Congress on the results of that study.
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5. 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 Act, is further amended by inserting after section 117C the following: 117D. Enforcement; single point-of-contact; institutional requirements (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, 117C, and subsection (c) 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 an investigation under such paragraph, 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 is compelled to comply with a requirement of a section listed in paragraph (1) pursuant to paragraph (2) as follows: (A) Section 117 (i) First-time violations In the case of an institution that is compelled to comply with a requirement of section 117 pursuant to a civil action described in paragraph (2), and that has not previously been compelled to comply with any such requirement pursuant to such a civil action, 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 previously been compelled to comply with a requirement of section 117 pursuant to a civil action described in paragraph (2), and is subsequently compelled to comply with such a requirement pursuant to a subsequent civil action described in paragraph (2), the Secretary shall impose a fine on the institution 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) $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 5 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 a reporting requirement under subsection (a)(2) of section 117, 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 is compelled to comply with a requirement of section 117A pursuant to a civil action described in paragraph (2), and that has not previously been compelled to comply with any such requirement pursuant to such a civil action, the Secretary shall impose a fine on the institution in an amount that is not less than 5 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) Subsequent violations In the case of an institution that has previously been compelled to comply with a requirement of section 117A pursuant to a civil action described in paragraph (2), and is subsequently compelled to comply with such a requirement pursuant to a subsequent civil action described in paragraph (2), the Secretary shall impose a fine on the institution 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 is compelled to comply with a requirement of section 117B pursuant to a civil action described in paragraph (2), and that has not previously been compelled to comply with any such requirement pursuant to such a civil action, the Secretary shall impose a fine on the institution for such violation in an amount that is the greater of— (I) $250,000; or (II) the total amount of gifts or contracts that the institution is compelled to report pursuant to such civil action. (ii) Subsequent violations In the case of an institution that has previously been compelled to comply with a requirement of section 117B pursuant to a civil action described in paragraph (2), and is subsequently compelled to comply with such a requirement pursuant to a subsequent civil action described in paragraph (2), the Secretary shall impose a fine on the institution in an amount that is the greater of— (I) $500,000; or (II) twice the total amount of gifts or contracts that the institution is compelled to report pursuant to such civil action. (D) Section 117C (i) First-time violations In the case of an institution that is compelled to comply with a requirement of section 117C pursuant to a civil action described in paragraph (2), and that has not previously been compelled to comply with any such requirement pursuant to such a civil action, 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 the final calendar year for which the institution is compelled to comply with such requirement pursuant to such civil action; and (II) the combined value of all investments of concern sold over the course of all the calendar years for which the institution is compelled to comply with such requirement pursuant to such civil action, as measured by the fair market value of such investments at the time of the sale. (ii) Subsequent violations In the case of an institution that has previously been compelled to comply with a requirement of section 117C pursuant to a civil action described in paragraph (2), and is subsequently compelled to comply with such a requirement pursuant to a subsequent civil action described in paragraph (2), the Secretary shall impose a fine on the institution in an amount that is not less than 100 percent and not more than 200 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 the final calendar year for which the institution is compelled to comply with such requirement pursuant to such subsequent civil action; and (II) the combined value of all investments of concern over the course of all the calendar years for which the institution is compelled to comply with such requirement pursuant to such subsequent civil action, as measured by the fair market value of such investments at the time of the sale. (E) Ineligibilty for waiver In the case of an institution that is fined pursuant to subparagraph (A)(ii), (B)(ii), (C)(ii), or (D)(ii), 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, 117C, and subsection (c) of this section; (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 under paragraph (4)(A), notify each institution required to comply with the sections listed in paragraph (1) of such update. (c) Institutional requirements for compliance officer and established policy for filing reports (1) In general An institution that is required to file a report under section 117 or 117C, that is seeking a waiver under section 117A, or that is subject to the requirements of section 117B, shall, not later than the earlier of the date on which the institution files the first report under such a section, requests the institution’s first waiver under section 117A, or first fulfills the requirements of section 117C— (A) establish an institutional policy that the institution shall follow in meeting the requirements of section 117, 117A, 117B, and 117C; and (B) designate and maintain a current employee or legally authorized agent of such institution to serve as a compliance officer to carry out the requirements listed in paragraph (2). (2) Duties of compliance officers A compliance officer designated under paragraph (1) shall certify— (A) whenever the institution is required to file a report under section 117 or 117C— (i) the institution’s accurate compliance with the reporting requirements under such section; (ii) that the institution, in filing such report— (I) followed the institutional policy established under paragraph (1)(A); and (II) conducted good faith efforts and reasonable due diligence to ensure that accurate information is provided in such report, including with respect to the valuations of any assets that are disclosed in a report submitted under section 117C; and (iii) in the case of a report under section 117, any statements by the institution required to be certified by such officer under clause (i) or (iv) of section 117(b)(1)(C); and (B) whenever the institution requests a waiver under section 117A, the statement by the institution required to be certified by such officer under section 117A(b)(2)(A)(ii)(II); and (C) in the case of an institution subject to the requirements of section 117B, that the institution is in compliance with such requirements. (d) Definitions For purposes of sections 117, 117A, 117B, 117C, and this section: (1) Foreign country of concern The term foreign country of concern means the following: (A) Any covered nation defined in section 4872 of title 10, United States Code. (B) Any country the Secretary, in consultation with the Secretary of Defense, the Secretary of State, and the Director of National Intelligence, determines, for purposes of sections 117, 117A, 117B, 117C, or this section, 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, 117C, and 117D(c). (B) In the case of an institution described in subparagraph (C), the institution will— (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) An institution described in this subparagraph is an institution that— (i) has been subject to 3 separate civil actions described in section 117D(a)(2) that have each resulted in the institution being compelled to comply with one or more requirements of section 117, 117A, 117B, 117C, or 117D(c); and (ii) pursuant to section 117D(a)(4)(E), is prohibited from obtaining a waiver, or a renewal of a waiver, under section 117A. . (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, 117C, and 117D(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ), as amended or added by this Act, 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) .
Where it is
In the House.