Overview
Title
An Act To amend the Higher Education Act of 1965 to strengthen disclosure requirements relating to foreign gifts and con- tracts, to prohibit contracts between institutions of high- er education and certain foreign entities and countries of concern, and for other purposes.
ELI5 AI
H.R. 1048 is a rule that says universities must tell the government about gifts and deals they get from other countries, especially from places that might not be friendly, to keep everyone safe and fair. Schools can't make deals with some countries unless they get special permission, and if they don't follow the rules, they might have to pay a big fine.
Summary AI
H.R. 1048 aims to enhance the rules under the Higher Education Act of 1965 by requiring universities to report foreign gifts and contracts, particularly those involving countries or entities of concern, to prevent potential conflicts of interest or security threats. The bill prohibits universities from entering into contracts with certain foreign countries and entities unless they receive a special waiver. It also requires institutions to maintain and publicly share databases of foreign gifts and contracts, implement measures to prevent foreign espionage, and comply with new enforcement procedures, which include fines for non-compliance. Institutions receiving over $50 million in federal research funding must also ensure their staff reports any foreign gifts or contracts.
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AnalysisAI
The proposed legislation, known as the "Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act" (DETERRENT Act), seeks to amend the Higher Education Act of 1965. Its primary aim is to enhance transparency and accountability among higher education institutions that engage in financial transactions, notably gifts or contracts, with foreign sources. This includes stringent disclosure requirements and a prohibition on contracts with certain foreign entities unless specific waivers are obtained.
General Summary of the Bill
The bill mandates educational institutions to disclose any foreign gifts or contracts valued at $50,000 or more to the Secretary of Education. It also provides for robust reporting systems to identify substantial foreign influence or control. Furthermore, the legislation prohibits these institutions from entering contracts with countries or entities deemed concerning unless a waiver is granted, justifying that such contracts benefit both the institution and U.S. interests. Institutions receiving significant federal funds must implement policies to manage conflicts of interest from foreign interactions and establish an accessible online database to maintain transparency.
Summary of Significant Issues
One of the significant issues with the proposed legislation is the broad and ambiguous definition of "foreign source," which may lead to confusion over which entities require disclosure. Another concern involves the requirement for institutions to maintain unredacted copies of contracts, which raises privacy and legal issues, potentially conflicting with existing privacy laws. Additionally, exempting certain reports from federal privacy laws might invite legal challenges concerning privacy protections.
The process for obtaining waivers is perceived as vague and subjective, potentially impacting institutional stability. The fine structure for violations, potentially punitive in nature, might lead to significant financial burdens on institutions, which could discourage compliance. The requirement for searchable and sortable databases could incur notable administrative costs, especially for institutions with limited resources.
Impact on the Public and Stakeholders
The proposed bill aims to safeguard national interests by curbing undue foreign influence on American educational institutions. For the broader public, especially those concerned with national security and foreign interference, the bill may provide reassurance of increased scrutiny and transparency in educational settings. However, these measures could also result in potential privacy violations if sensitive data is mishandled or inadequately protected, sparking public concern.
Specific stakeholders, particularly educational institutions, may face increased administrative and financial burdens in complying with the bill's requirements. Smaller institutions, in particular, could struggle with the logistical aspects of establishing and maintaining comprehensive databases. Conversely, the enhanced transparency could bolster public trust in academia by ensuring that foreign engagements are openly scrutinized and aligned with national interests.
In conclusion, while the DETERRENT Act has commendable objectives in enhancing transparency and safeguarding against adverse foreign influences, its implementation may present substantial challenges. Careful consideration and potential revisions could help balance transparency objectives with privacy protections and practical compliance mechanisms for educational institutions.
Financial Assessment
The bill, H.R. 1048, makes significant references to financial matters, particularly concerning disclosures of foreign gifts and contracts and the potential fines for non-compliance. The bill's financial provisions have implications for institutions, especially those receiving federal funding for research and development.
Financial Obligations and Disclosures
The bill requires institutions to maintain a rigorous reporting system for foreign gifts and contracts. An institution must file a disclosure report if it receives a gift or enters into a contract with a foreign source when the value reaches or exceeds $50,000 or if the value is indeterminate. In cases involving foreign countries or entities of concern, the requirement applies regardless of the gift or contract's value.
These obligations create significant administrative burdens, especially for institutions that routinely engage with foreign entities. The need for detailed and public reporting increases transparency but might also lead to operational challenges, as highlighted in the issues.
Fines and Financial Penalties
For non-compliance, the bill establishes a structured system of fines that are potentially severe. Institutions that fail to comply with the reporting requirements can face fines as high as $50,000 for first-time violations or the value of the unreported gift or contract, whichever is greater. Subsequent violations could see fines increase to $100,000 or twice the gift or contract's value.
These fines are significant and could impose financial hardships on institutions. By potentially discouraging non-compliance, the structure of these fines aims to promote adherence to the new regulations. However, as noted in the issues, there is a concern that these punitive fines could disincentivize institutions from engaging in beneficial international collaborations, impacting their financial stability.
Institutional Financial Criteria
The bill also targets "specified institutions," defined as those holding assets greater than $6 billion and investments of concern over $250 million. This focus ensures that larger institutions, which typically have more international exposure and financial capability, are rigorously monitored. The definitions within this context aim to capture significant financial engagements that could carry national security implications. However, there is a risk of overlooking smaller transactions, potentially reducing effective oversight of critical yet less financially substantial activities.
Administrative Costs and Privacy Concerns
Implementing these requirements might lead to increased administrative expenses as institutions need to manage new reporting obligations. The call for public and searchable databases can lead to significant resource allocation without specified funding sources, exacerbating financial strain, particularly as related to Section 117B.
Additionally, the comprehensive nature of the reporting could clash with existing privacy laws, raising legal concerns not only for the institutions but also for involved foreign parties whose sensitive financial information would be disclosed.
Conclusion
H.R. 1048 addresses important financial transparency concerns associated with international engagements by educational institutions. The financial implications are extensive, covering obligatory disclosures, potential fines for non-compliance, and administrative requirements for compliance maintenance. While these measures aim to safeguard against undue foreign influence, they also present significant challenges that institutions must navigate to balance compliance with operational and financial stability.
Issues
The broad and non-specific definition of 'foreign source' in Section 2 might lead to confusion about what entities must be disclosed, potentially affecting the clarity and effectiveness of the legislation.
The requirement for institutions to maintain and provide unredacted copies of contracts as detailed in Section 2 could pose privacy risks or conflict with existing privacy laws, raising ethical and legal concerns.
The exemption of certain reports from federal privacy laws as mentioned in Sections 2 and 3 might conflict with privacy protections and regulations, potentially leading to legal challenges.
The language on the criteria for issuing waivers under Section 117A is vague and subjective, which might result in inconsistent applications and affect institutional stability and security objectives.
The fine structure for violations in Section 5 is potentially punitive, imposing significant financial burdens that could impact the stability of institutions and possibly disincentivize compliance.
Section 117B's requirement for institutions to maintain searchable and sortable databases might lead to significant administrative costs and resource allocation issues, especially without clear guidance on funding sources.
Privacy concerns arise from the requirement for detailed disclosures of contracts and gifts from foreign sources, which might conflict with privacy rights or the protection of proprietary information as indicated in Sections 2 and 3.
Translation requirements in multiple sections are complex and might complicate compliance efforts, potentially leading to administrative burdens without ensuring accuracy.
The terminology regarding 'investment of concern' and the thresholds for 'specified institutions' in Section 117C might lead to ambiguity and possible oversight of smaller yet impactful investments, raising financial and transparency issues.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this bill specifies its short title, which is the “Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act” or simply the “DETERRENT Act.”
2. Disclosures of foreign gifts Read Opens in new tab
Summary AI
The section outlines provisions amending the Higher Education Act of 1965 to require that institutions receiving gifts or entering contracts exceeding $50,000 with foreign sources disclose such interactions to the Secretary of Education. The goal is to ensure transparency about foreign influence or control over educational institutions by requiring regular reporting, detailing ownership or control by foreign entities, and imposing conditions on contracts with foreign countries or entities of concern.
Money References
- “(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 indeterminate; or “(B) the institution— “(i) receives a gift from a foreign country of concern or foreign entity of concern, without regard to the value of such gift; 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 contract.
- “(b) Contents of report.— “(1) GIFTS AND CONTRACTS.—Each report to the Secretary required under subsection (a)(1) shall include the following: “(A) With respect to a gift received from, or a contract entered into with, any foreign source— “(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) any intended purpose of the gift or contract communicated to the institution by the foreign source, and, as of the date of filing such report, the manner in which the institution intends to use such gift or contract; “(iii) in the case of a restricted or conditional gift or contract, a description of each restriction or condition that meets the definition of the term ‘restricted or conditional gift or contract’ in subsection (f); “(iv) with respect to such 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; “(v) with respect to such 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) if the contract has a termination date, such termination date; 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.
117. Disclosures of foreign gifts Read Opens in new tab
Summary AI
The section outlines the requirements for institutions to report foreign gifts and contracts to the Secretary of Education. It specifies what information must be included in these reports, such as the nature and value of gifts or contracts, and mandates the maintenance of records. Additionally, it provides guidelines for public access to these reports and establishes protocols for interagency information sharing.
Money References
- (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 indeterminate; or (B) the institution— (i) receives a gift from a foreign country of concern or foreign entity of concern, without regard to the value of such gift; 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 contract.
- (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 include the following: (A) With respect to a gift received from, or a contract entered into with, any foreign source— (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) any intended purpose of the gift or contract communicated to the institution by the foreign source, and, as of the date of filing such report, the manner in which the institution intends to use such gift or contract; (iii) in the case of a restricted or conditional gift or contract, a description of each restriction or condition that meets the definition of the term “restricted or conditional gift or contract” in subsection (f); (iv) with respect to such 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; (v) with respect to such 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) if the contract has a termination date, such termination date; 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. (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.
117A. Prohibition on contracts with certain foreign entities and countries Read Opens in new tab
Summary AI
An institution is prohibited from entering into contracts with countries or entities of concern unless a waiver is granted for up to one year, provided the contract benefits the institution and the United States. Waivers can be requested or renewed, but contracts must be terminated if the entities are newly designated as concerning, or if renewals are not granted after the waiver period ends.
3. Policy regarding conflicts of interest from foreign gifts and contracts Read Opens in new tab
Summary AI
The proposed amendment to the Higher Education Act of 1965 requires institutions that receive significant federal funding to create a policy and database for reporting foreign gifts and contracts that covered individuals, such as faculty and staff, receive. Institutions must ensure their disclosures are transparent and publicly accessible, except for certain privacy protections, and they must have a plan to manage potential risks related to foreign sources gathering information through espionage.
Money References
- “(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 at the institution and covered individuals at affiliated entities of the institution to disclose in a report to such institution by 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 indeterminate 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 indeterminate 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 indeterminate 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) if the contract has a termination date, such termination date; 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 information prohibited from public disclosure pursuant to subsection (c)) that— “(A) makes available the information disclosed under paragraph (1) (other than the information prohibited from public disclosure pursuant to subsection (c)) 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; “(ii) the date on which a contract referred to in subparagraph (B), (C) or (D) of paragraph (1) terminates; or “(iii) the last day of any period that applicable State law requires a copy of such contract to be maintained; 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)(I) if the covered individual at an institution is making the disclosure, by the most specific division of the institution (such as the department, school, or college) that the covered individual is at; and “(II) if the covered individual at the affiliated entity of the institution is making the disclosure, by the name of such affiliated entity; “(v) by the name of the foreign source; 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), a record of the name of each individual who makes a disclosure under paragraph (1) and each report disclosed under such paragraph.
- “(b) Institutions.—An institution shall be subject to the requirements of this section if such institution— “(1) 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 “(2) receives funds under title VI.
117B. Institutional policy regarding foreign gifts and contracts to faculty and staff Read Opens in new tab
Summary AI
The section requires certain institutions receiving significant federal funding to establish a policy and maintain a database for disclosing foreign gifts and contracts involving faculty and staff. This policy aims to track gifts and contracts of specific values, ensuring that sensitive information is protected under privacy laws, and creating plans to manage possible information gathering by foreign entities through such engagements.
Money References
- (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 at the institution and covered individuals at affiliated entities of the institution to disclose in a report to such institution by 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 indeterminate 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 indeterminate 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 indeterminate 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) if the contract has a termination date, such termination date; 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 information prohibited from public disclosure pursuant to subsection (c)) that— (A) makes available the information disclosed under paragraph (1) (other than the information prohibited from public disclosure pursuant to subsection (c)) 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; (ii) the date on which a contract referred to in subparagraph (B), (C) or (D) of paragraph (1) terminates; or (iii) the last day of any period that applicable State law requires a copy of such contract to be maintained; 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)(I) if the covered individual at an institution is making the disclosure, by the most specific division of the institution (such as the department, school, or college) that the covered individual is at; and (II) if the covered individual at the affiliated entity of the institution is making the disclosure, by the name of such affiliated entity; (v) by the name of the foreign source; 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), a record of the name of each individual who makes a disclosure under paragraph (1) and each report disclosed under such paragraph. (b) Institutions.—An institution shall be subject to the requirements of this section if such institution— (1) 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 (2) receives funds under title VI. (c) Application of Federal privacy law; protections for natural persons.— (1) APPLICATION OF FEDERAL PRIVACY LAW.—Except as provided in paragraph (2), a disclosure made pursuant to this section is not subject to Federal privacy law. (2) PROTECTIONS FOR NATURAL PERSONS.— (A) IN GENERAL.—Except as provided in subparagraph (B), with respect to a disclosure made pursuant to this section, the following may not be publicly disclosed: (i) The name or address (other than the attributable country) of a foreign source that is a natural person.
4. Investment disclosure report Read Opens in new tab
Summary AI
The bill section outlines requirements for certain large non-public institutions to report their investments in entities of concern, such as foreign countries or entities, to the Secretary of Education annually. It specifies the details to be included in the report, including the values of such investments, provides guidelines for investments made through pooled funds, establishes a public database for these reports, and defines key terms used throughout the section.
Money References
- “(2) SPECIFIED INSTITUTION.— “(A) IN GENERAL.—The term ‘specified institution’, as determined with respect to any calendar year, means an institution that— “(i) is not a public institution; and “(ii) at the close of such calendar year, holds— “(I) assets (other than those assets which are used directly in carrying out the institution’s exempt purpose) the aggregate fair market value of which is in excess of $6,000,000,000; and “(II) investments of concern the aggregate fair market value of which is in excess of $250,000,000.
117C. Investment disclosure report Read Opens in new tab
Summary AI
The section requires certain large institutions to file an annual investment disclosure report with the Secretary by July 31 if they purchase, sell, or hold investments related to certain foreign concerns. The report must detail the investments, their fair market value, sales values, and any capital gains, and certain pooled investments also need to be reported unless certified otherwise.
Money References
- (2) SPECIFIED INSTITUTION.— (A) IN GENERAL.—The term “specified institution”, as determined with respect to any calendar year, means an institution that— (i) is not a public institution; and (ii) at the close of such calendar year, holds— (I) assets (other than those assets which are used directly in carrying out the institution’s exempt purpose) the aggregate fair market value of which is in excess of $6,000,000,000; and (II) investments of concern the aggregate fair market value of which is in excess of $250,000,000.
5. Enforcement and other general provisions Read Opens in new tab
Summary AI
This section of the bill establishes rules for enforcing certain parts of the Higher Education Act related to foreign gifts and contracts at higher education institutions. It outlines the investigation process, penalties for violations, and requires institutions to have compliance officers. Additionally, it defines "foreign countries of concern" and "foreign entities of concern," and mandates a study to improve coordination and enforcement of these provisions.
Money References
- 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.
- 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.
- “(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.
117D. Enforcement; single point-of-contact; institutional requirements Read Opens in new tab
Summary AI
The section outlines the enforcement of compliance requirements for educational institutions under specific laws, detailing how violations will be investigated and penalized, including possible fines and legal actions. It also describes the responsibilities of institutions to appoint compliance officers, establish institutional policies, and maintain transparency through reporting, as well as the government's role in supporting these processes through a single point-of-contact and database improvements.
Money References
- 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.
- 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.
- (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.