Overview
Title
To amend the Higher Education Act of 1965 to strengthen disclosure requirements relating to foreign gifts and contracts, to prohibit contracts between institutions of higher education and certain foreign entities and countries of concern, and for other purposes.
ELI5 AI
H.R. 1048 is a bill that wants schools to be more honest about money or gifts they get from other countries, especially if they're from places we might worry about. It also says schools can't make deals with certain countries unless they get special permission.
Summary AI
The bill, H.R. 1048, proposes changes to the Higher Education Act of 1965. It aims to enhance the transparency of foreign gifts and contracts received by U.S. institutions of higher education, particularly concerning foreign countries and entities deemed concerning. The bill also proposes prohibiting contracts between these institutions and certain foreign entities or countries but allows for waivers under strict conditions. It introduces new reporting requirements, sets penalties for violations, facilitates inter-agency information sharing, and requires institutions to have policies in place to manage potential risks associated with foreign influence.
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AnalysisAI
The Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act, or the DETERRENT Act, is a proposed piece of legislation aimed at tightening regulations around foreign gifts and contracts received by institutions of higher education in the United States. By amending the Higher Education Act of 1965, the bill seeks to increase transparency and oversight over financial interactions between these institutions and foreign entities, especially those deemed concerning to U.S. national security. The bill sets forth requirements for the disclosure of significant gifts and contracts from foreign sources, bans contracts with entities from specific countries of concern, and mandates the establishment of disclosure policies and databases. It also implements stringent enforcement mechanisms, including fines for non-compliance and the provision of detailed reporting procedures.
Significant Issues
One of the principal concerns is the complexity and potentially burdensome nature of the disclosure requirements. Institutions must navigate rigorous regulations detailing the reporting of foreign gifts and contracts valued at $50,000 or more, which could impose significant administrative costs. The bill's broad definitions of "foreign entities and countries of concern" could lead to inconsistent interpretations and enforcement, raising issues over fairness and possible discrimination.
The punitive fines and penalties for non-compliance are another point of contention. Smaller institutions, in particular, could face disproportionate impacts, potentially threatening their financial stability. Additionally, the process for obtaining waivers to enter contracts with foreign entities is criticized as cumbersome, leading to delays and possible unintended economic consequences for the institutions involved.
There are also privacy concerns tied to the requirement for institutions to maintain and publicly share a searchable database of gift and contract disclosures. This could risk the exposure of sensitive information, although certain privacy measures, such as withholding individual names and addresses, are in place. Moreover, the bill grants various governmental agencies significant power over the information-sharing process, without clear guidelines for the protection of sensitive data, which might lead to conflicts of interest and privacy violations.
Broader Public Impact
The bill's overall impact on the public and educational institutions could be multifaceted. On a broad level, ensuring transparency in foreign relations with educational institutions could bolster national security efforts, potentially preventing foreign influences from undermining U.S. interests. The intention to protect national interests by regulating foreign interactions is commendable, aiming to reduce avenues for foreign interference.
However, the administrative burden placed on institutions could be substantial, particularly for smaller colleges and universities with fewer resources. This might hinder their capacity to engage in legitimate and potentially beneficial international exchanges or partnerships, potentially impacting academic collaboration and innovation.
Impact on Specific Stakeholders
For educational institutions, the bill could mean a reevaluation of international partnerships and funding sources. Larger institutions with considerable foreign interactions might need to invest in compliance infrastructure, while smaller institutions might struggle with implementing the required administrative changes without additional resources.
Students and faculty could see both positive and negative effects. The increased transparency might provide reassurance regarding the ethical and financial integrity of their institutions. On the downside, research opportunities, scholarships, or collaborative projects with international entities might be curtailed due to the restrictive nature of the bill's provisions.
Foreign partners could experience reluctance from U.S. institutions in entering contracts, especially with those from countries of concern as designated by the bill. This could lead to tension in international academic relationships and a possible reduction in cultural and intellectual exchanges.
In conclusion, while the DETERRENT Act aims to safeguard U.S. national interests, its implementation could pose several challenges for educational institutions, potentially affecting their financial practices and international collaborations. Balancing national security concerns with the real-world workings of academic institutions will be crucial for the bill's success and acceptance.
Financial Assessment
The bill, H.R. 1048, addresses the transparency and handling of foreign gifts and contracts by U.S. higher education institutions. It introduces several financial references that need to be examined in the context of its legislative proposals and the issues identified.
Financial Disclosure Requirements
The bill mandates that institutions report any foreign gift or contract valued at $50,000 or more. This includes gifts from foreign entities and contracts with them, specifically highlighting the need for disclosure if the foreign party is from a country of concern. Moreover, these disclosures must be maintained in a database which institutions must manage and keep searchable. This requirement aims to ensure transparency but poses a risk of significant administrative burden and potential privacy issues, as identified in the bill’s issues.
Penalties and Fines
For non-compliance, the bill imposes fines that are tied to the monetary value of the gifts or contracts. Fines for first-time violations related to undisclosed gifts or contracts can range from $50,000 to the actual monetary value of the gift or contract. In cases where the value is not determined, fines range from 1% to 10% of the total federal funds received by the institution for the most recent fiscal year. For repeated violations, fines can increase to $100,000 or twice the gift's value, and percentages rise up to 5% to 10% of federal funds. These punitive measures connect directly to the issues raised, particularly around how they might financially destabilize smaller institutions that rely heavily on federal funding.
Administrative Costs and Burdens
The requirement for institutions to establish a compliance officer and a policy for managing disclosures introduces financial strain due to potentially high administrative costs. These tasks demand significant resources, especially for smaller institutions that may not have the budget to support such roles and systems. This aligns with the identified issue regarding the hefty administrative burden placed on institutions without corresponding resources to fulfill these mandates.
Investment Disclosures
The bill also requires certain institutions to report when they hold investments exceeding $250,000,000 in foreign entities of concern, or if their total assets beyond their academic mission exceed $6,000,000,000. This financial threshold intends to monitor significant financial ties with foreign entities, ensuring that potentially risky investments are made transparent. However, the terms for identifying these "investments of concern" are vague and can lead to an overextension of administrative scrutiny, adding to the already established financial and operational burdens on educational institutions.
In summary, the financial elements of the bill emphasize transparency and national security by stipulating stringent reporting requirements and imposing hefty fines for non-compliance. However, these measures could lead to unintended financial consequences for smaller institutions and may require careful consideration and possible adjustments to avoid overly burdensome fiscal impacts.
Issues
The complex and potentially burdensome disclosure requirements placed on institutions regarding foreign gifts and contracts could lead to significant administrative costs and potentially stifle legitimate collaborations. (Sections 2, 117, 117A, 117B, 117C)
The broad definition of 'foreign entities and countries of concern' without explicit criteria may lead to inconsistent interpretations and enforcement, raising concerns about fairness and discrimination. (Sections 117, 117B, 117D)
The punitive fines and penalties for non-compliance, which are based on percentages of federal funds, might disproportionately affect smaller institutions, potentially threatening their financial stability. (Sections 5, 117D)
The process for obtaining waivers to engage in contracts with foreign entities or countries of concern appears to be cumbersome and could lead to delays and unintended economic impacts on institutions. (Sections 117A, 117D)
Privacy concerns arise from the requirement for institutions to maintain and make publicly available a searchable database of disclosed information, potentially risking exposure of sensitive information. (Sections 117, 117B, 117C)
There are potential conflicts of interest and privacy issues with the wide-ranging power given to various governmental agencies in information sharing without clear guidelines on the protection of sensitive information. (Sections 2, 117, 3, 117B, 117D)
The lack of specified standards for translation of non-English documents could lead to inconsistent implementations and hinder communication clarity across different institutions. (Section 2, 117)
The criteria for what constitutes 'investments of concern' in relation to foreign countries and entities are not clearly defined, which might lead to an overreach in enforcement and unnecessary administrative burden on institutions. (Sections 4, 117C)
The emphasis on establishing a compliance officer and the significant administrative requirements without providing adequate resources could impose a heavy burden on institutions, especially smaller ones. (Sections 5, 117D)
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 amended Section 117 of the Higher Education Act of 1965 requires institutions to report foreign gifts or contracts of $50,000 or more, or any amount from certain concerning foreign entities, to the Secretary of Education. Institutions must also disclose any foreign ownership or control and maintain these records for public access, though individual names and addresses of foreign sources are protected from disclosure.
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 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.
- “(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).
117. Disclosures of foreign gifts Read Opens in new tab
Summary AI
The section requires institutions to report to the Secretary of Education if they receive gifts or enter into contracts with foreign sources. These reports should include details about the terms, amounts, and restrictions of such gifts or contracts, and must be filed annually. The names and addresses of foreign individuals are kept confidential, and the reports are made available in a public database.
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 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.
- (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.
117A. Prohibition on contracts with certain foreign entities and countries Read Opens in new tab
Summary AI
Institutions are banned from making contracts with certain foreign countries or entities, but they can request a one-year waiver from this prohibition. If granted, these waivers allow contracts if they benefit the institution and promote U.S. security. Existing contracts must be terminated or renewed under special waivers if they become problematic due to new designations.
3. Policy regarding conflicts of interest from foreign gifts and contracts Read Opens in new tab
Summary AI
The Higher Education Act has been updated to require certain universities to create a policy and database for faculty and staff to disclose foreign gifts and contracts. These institutions must report this information annually, make it publicly available online, and have measures to prevent foreign information gathering.
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 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.
117B. Institutional policy regarding foreign gifts and contracts to faculty and staff Read Opens in new tab
Summary AI
This section requires certain institutions to create a policy and maintain a database for faculty and staff to report any gifts or contracts from foreign sources. This ensures the information is made publicly accessible and includes measures to prevent information gathering by foreign entities, while also allowing for tracking of funds and resources used in research and development.
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 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).
4. Investment disclosure report Read Opens in new tab
Summary AI
The section outlines requirements for certain non-public institutions to file an annual investment disclosure report with the Secretary if they hold significant investments in foreign entities or countries of concern. The report should include details about these investments, and the Secretary is responsible for maintaining a public, searchable database of the reports.
Money References
- “(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.
117C. Investment disclosure report Read Opens in new tab
Summary AI
A specified institution is required to submit an investment disclosure report to the Secretary by July 31 following any year they deal with investments of concern, detailing transactions and values of such investments. The report must also include investments in certain pooled funds unless the Secretary certifies otherwise, and related organizations' assets are included under certain conditions. Additionally, the Secretary is tasked with creating a publicly accessible database of these reports, and the term "investment of concern" generally refers to interests connected to specific foreign entities or countries.
Money References
- (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.
5. Enforcement and other general provisions Read Opens in new tab
Summary AI
Enforcement provisions for the Higher Education Act of 1965 are amended to include investigations and civil actions against institutions that violate specific reporting requirements. Institutions are subject to fines and can face further penalties for repeated violations, with procedures outlined for compliance, institutional requirements, and improved government coordination.
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 enforcement procedures for institutions that violate specific compliance requirements, including possible investigations by the Secretary and civil actions by the Attorney General. It also mandates that institutions pay costs and fines for non-compliance, establishes the role of a compliance officer at these institutions, and defines certain terms like "foreign country of concern" and "institution."
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.