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
The "DETERRENT Act" is a plan to make sure colleges tell everyone when they get big gifts or deals, especially from places we should be careful about, and if they don't play by the rules, they could get fined a lot of money.
Summary AI
H.R. 1048, also known as the "DETERRENT Act," aims to amend the Higher Education Act of 1965 by strengthening disclosure requirements for foreign gifts and contracts to U.S. higher education institutions. It requires colleges and universities to report any substantial gifts or contracts from foreign sources, especially if these are from countries or entities of concern. The bill prohibits contracts with certain foreign entities and mandates institutions to maintain policies managing conflicts of interest. It also enforces penalties for non-compliance, including potential fines and the chance of losing eligibility for federal funding.
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AnalysisAI
General Summary of the Bill
The "Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act," or the "DETERRENT Act," aims to address and regulate foreign influences on U.S. higher education institutions. The bill proposes amendments to the Higher Education Act of 1965, requiring disclosure of gifts and contracts from foreign sources above a certain threshold. It sets out to prohibit contracts between educational institutions and certain foreign entities designated as "countries of concern" unless waivers are granted. Additionally, the bill introduces detailed reporting requirements for investments related to foreign concerns and enforces compliance through significant penalties and fines.
Summary of Significant Issues
One of the bill's most critical issues is the threshold for the mandatory disclosure of foreign gifts, set at $50,000. This might exempt smaller gifts that could still pose potential conflicts of interest or influence educational agendas. The bill uses complex, subjective criteria for what constitutes "substantial control" by foreign entities, possibly leading to inconsistent compliance across institutions.
Privacy concerns are significant. Requiring detailed public records of foreign engagements and financial data might inadvertently violate privacy laws or expose sensitive information. The enforcement mechanisms, with punitive fines for non-compliance, particularly for first-time violators, could impose financial strains on institutions. Additionally, the definitions of "investment of concern" and "foreign entities of concern" may lack clear criteria, further complicating compliance.
Impact on the Public
Broadly, the public might view the bill as a means to safeguard national interests and maintain transparency in how foreign entities interact with U.S. educational institutions. Heightened scrutiny could reduce undue foreign influence on educational content and institutional decision-making. However, the intricate requirements and potential administrative burdens might lead to increased operational costs for educational institutions, possibly affecting tuition rates or institutional focus.
Impact on Specific Stakeholders
For larger institutions with significant foreign engagements or investments, the bill could represent a shift towards greater accountability, albeit at the cost of increased administrative overhead. Smaller institutions might struggle to comply, as the cost and complexity of meeting the bill's requirements could disproportionately strain their resources.
Foreign donors and investors, as well as international partners, may perceive the legislation as a barrier, potentially deterring beneficial collaborations. However, it could also result in more strategic and transparent engagements, fostering healthier cross-border academic collaborations.
Overall, while the bill aims to bring transparency and safeguard educational integrity, its practical implementation may require careful balancing between regulatory compliance and the operational realities faced by higher education institutions.
Financial Assessment
The DETERRENT Act introduces several financial stipulations as part of its framework to regulate foreign gifts and contracts received by U.S. institutions of higher education. Here's a detailed exploration of these financial aspects and their implications:
Disclosure Thresholds
The bill specifies that institutions must report any gift or contract from a foreign source if the value is $50,000 or more. This threshold is significant as it sets the baseline for obligatory transparency. However, there is a concern that this figure may exclude smaller contributions which, despite their lower monetary value, could still pose conflicts of interest or influence institutional decisions.
Reporting and Compliance Costs
Institutions are required to maintain a searchable database publicly disclosing these financial transactions. This obligation, while enhancing transparency, imposes a financial burden on institutions to establish and sustain this infrastructure. Smaller institutions with limited resources might struggle more with these costs, highlighting an imbalance in the implementation's feasibility and effectiveness.
Penalties and Fines Structure
The act outlines specific fines for institutions that fail to comply with its requirements. For instance, if an institution does not fulfill a disclosure requirement for a gift or contract with determinable value, it faces penalties of at least $50,000 or the monetary value of the gift or contract, whichever is greater. For repeat offenses, this minimum fine doubles to $100,000 or twice the gift’s value. Additionally, fines for non-compliance on broader contractual regulations can range from 5% to 10% of the federal funds received by the institution. These penalties are formulated to enforce strict adherence but could be deemed excessive, especially for first-time offenses, potentially discouraging institutions from compliance due to the risk of substantial financial loss.
Institutional Support and Research Funding
Institutions receiving more than $50,000,000 in federal funds for research in the past five years, or receiving funds under title VI, are specifically obligated to comply with this act's requirements. This inclusion emphasizes the act's focus on institutions deeply embedded in national research and development infrastructure, potentially impacting their funding usage due to added compliance costs.
Investments and Asset Management
The act defines "investment of concern" and mandates disclosure from specified institutions which have assets exceeding $6,000,000,000 and investments over $250,000,000. This clause targets large institutions with significant financial portfolios, demanding that they manage international investments meticulously to ensure they are not unduly influenced by foreign entities of concern.
In conclusion, the financial references within the DETERRENT Act are designed to promote transparency and safeguard against potential foreign influences in higher education. However, these financial allocations and stipulations could impose significant burdens, particularly on smaller institutions, due to the hefty fines and costs associated with compliance and transparency initiatives. The threshold decisions and penalty structures may need refinement to balance rigorous oversight with feasible institutional compliance.
Issues
The threshold of $50,000 for disclosing foreign gifts might exclude smaller yet potentially influential gifts or contracts that could pose significant conflicts of interest. (Section 117)
The complex language and subjective criteria for compliance and waivers may hinder effective implementation and lead to inconsistent application across institutions, potentially favoring those with more resources. This includes the ambiguity of what constitutes 'substantial control' by a foreign source. (Section 2, Section 117A)
The privacy risks associated with maintaining and publicly disclosing detailed records of foreign gifts and contracts, especially concerning potential privacy law conflicts and the exclusion of personal data protections, might lead to significant ethical concerns. (Section 117, Section 117B)
The mandatory public disclosure of financial information via a searchable database raises concerns about the potential exposure of sensitive or proprietary financial data, impacting privacy and security. (Section 2, Section 117C)
The enforcement mechanisms and punitive fines structure, particularly for first-time violators, may be excessively harsh, potentially discouraging compliance and imposing undue financial burdens on institutions. (Section 117D)
The definition of 'investment of concern' and the lack of clear criteria for 'foreign country of concern' and 'foreign entity of concern' could lead to ambiguity and difficulty in determining compliance, impacting institutions' clarity and security. (Section 4, Section 117C)
The administrative burden of compliance, including translation requirements and unredacted record maintenance, may disproportionately impact smaller institutions, affecting their operational efficiency. (Section 117, Section 117A)
The requirement for institutions to shoulder the full costs of compliance, especially regarding establishing and maintaining publicly accessible databases, could impose significant financial strain, particularly on smaller institutions. (Section 3, Section 117B)
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.