Overview
Title
An Act To amend the Higher Education Act of 1965 to require additional information in disclosures of foreign gifts and contracts from foreign sources, restrict contracts with certain foreign entities and foreign countries of concern, require certain staff and faculty to report foreign gifts and contracts, and require disclosure of certain foreign investments within endowments.
ELI5 AI
H. R. 5933 is a special rule that helps keep track of all the money and gifts that schools in the U.S. get from other countries, making sure they don't take anything from bad guys. Schools have to share details about any big presents they get and be extra careful about who they make deals with, but some people worry this might make things harder for the schools.
Summary AI
H. R. 5933 aims to amend the Higher Education Act of 1965 by increasing transparency and regulation related to foreign gifts and contracts in higher education institutions. It mandates institutions to disclose detailed information about foreign gifts and contracts, prohibits contracts with certain foreign entities without a waiver, and establishes requirements for investment disclosures within endowments. The bill also introduces penalties for non-compliance and demands institutions maintain policies to manage conflicts of interest arising from foreign gifts and contracts. Additionally, it sets up a publicly accessible database for transparency and enforces a policy on conflicts of interest to protect U.S. educational integrity.
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AnalysisAI
General Summary of the Bill
The bill, referred to as the "DETERRENT Act," seeks to amend the Higher Education Act of 1965. Its main focus is to enhance transparency in higher education institutions concerning foreign gifts and contracts. It calls for institutions to disclose comprehensive information relating to significant foreign gifts and contracts, especially those linked to certain foreign entities and countries deemed concerning by the U.S. government. The bill establishes a requirement for these institutions to implement detailed reporting processes, ensure public transparency through online databases, and maintain compliance through designated officers. Furthermore, it seeks to regulate and restrict contracts with entities associated with countries considered detrimental to U.S. interests, regulating investments tied to these entities and introducing substantial penalties for non-compliance.
Summary of Significant Issues
One major issue with the bill is the broad definition of what constitutes a "foreign country of concern" or "foreign entity of concern." This vagueness could lead to inconsistency in enforcement and potentially bias in application. Additionally, the requirement for institutions to disclose unredacted contract details and gifts raises privacy and security concerns, as it exposes potentially sensitive data to numerous federal agencies.
Another concern is the significant financial penalties outlined for non-compliance, which may disproportionately affect smaller institutions. The fines could threaten their operational viability and increase their financial burdens. The waiver process for contracting with specific foreign entities is cumbersome and might deter beneficial collaborations, impacting academic freedom.
The bill's requirement for public disclosure of contracts and gifts in a searchable database poses risks of exposing sensitive details of institutional dealings. The translation requirements for non-English contractual information could be financially burdensome, demanding specialized services that increase administrative costs. This is especially concerning given the substantial administrative workload institutions must bear under the compliance officer mandates, which could lead to inefficient use of resources.
Impact on the Public Broadly
For the general public, the bill aims to foster greater transparency and accountability among higher education institutions regarding their foreign interactions. The increased scrutiny and mandatory disclosures are intended to safeguard national interests, ensuring that foreign influences do not compromise educational integrity. However, this heightened transparency could also lead to public misinterpretation or concern over benign foreign affiliations, potentially impacting the institution's reputation.
Impact on Specific Stakeholders
Higher Education Institutions: The increased administrative requirements and potential penalties could place a considerable burden on universities, especially smaller ones with limited administrative capacity. The need for compliance officers and specialized translation services could divert resources away from educational and research initiatives. Conversely, the bill might also encourage institutions to be more diligent about assessing and managing their international collaborations.
Faculty and Staff: Faculty and staff members may experience heightened scrutiny of their professional activities, including their engagement with foreign entities. This emphasis on disclosure could inhibit academic collaboration and intellectual exchange if institutions become overly cautious in their foreign interactions.
Federal Agencies: The bill increases coordination responsibilities among various federal agencies, potentially equipping them with the tools to more effectively monitor foreign influences in education. However, it might also strain resources and operational capacities, particularly if there are significant variations in agency interpretations of the bill's provisions.
Foreign Partners: For international academic partners, this bill may serve as a deterrent, discouraging potential collaborations due to perceived complexities and risks of involvement with U.S. institutions. This could result in a decline in diverse academic partnerships, potentially limiting the global reach and educational opportunities for American students.
Overall, while the bill seeks to mitigate foreign influences deemed harmful, it introduces a complex array of regulations that may prompt both intended and unintended consequences across the higher education landscape.
Financial Assessment
The bill H. R. 5933 introduces several financial considerations and implications pivotal to understanding its potential impact on higher education institutions. Below is an analysis focusing on the financial references within the bill and their relation to identified issues.
Financial Disclosures and Reporting Requirements
The bill requires institutions to report foreign gifts and contracts. Specifically, it mandates disclosure of any foreign gift or contract valued at $50,000 or more, or with an undetermined value. Furthermore, institutions must report gifts and contracts with certain foreign countries and entities of concern, regardless of value. This extensive reporting is aimed at increasing transparency but could impose significant administrative and financial burdens on institutions, particularly smaller ones, which may lack the resources to manage these requirements effectively.
Fines and Penalties
The bill outlines various penalties for non-compliance, with fines potentially reaching significant amounts. For a first-time violation, fines could range from not less than $50,000, scaling up to a percentage of federal funds received if the value of the gift or contract is indeterminable. Subsequent violations lead to even higher fines, starting at $100,000.
These provisions could severely impact smaller institutions that may already be operating on tight budgets, compounding issues related to the financial strain highlighted in the issues section. The financial penalties are designed as a deterrent; however, they raise concerns about disproportionate effects on smaller institutions less equipped to absorb such costs.
Institutional Investment Reporting
Institutions holding significant foreign investments are required to disclose assets valued at over $6 billion or investments of concern over $250 million. Such requirements necessitate substantial financial oversight and could lead to considerable compliance costs, especially for large institutions with sprawling investment portfolios. The bill's lack of clear criteria for what constitutes an "investment of concern" introduces uncertainties that could complicate compliance efforts.
Administrative and Compliance Costs
The legislation mandates the appointment of compliance officers at each institution, responsible for certifying the accuracy of reported information. This role is crucial to the enforcement of the bill’s provisions but also presents additional administrative costs that may redirect funds away from educational improvements towards bureaucratic maintenance.
Moreover, Section 117D emphasizes that institutions bear the costs of complying with investigations, including any associated fines. This could lead to substantial financial outlays beyond fines themselves, adding layers of financial pressure.
Impact on Operational Capabilities
There's concern that extensive financial and administrative commitments may impact institutions' abilities to prioritize academic goals, as funds may be diverted to fulfill compliance demands.
In conclusion, while the bill aims to amplify transparency regarding foreign influence in education, it introduces significant financial considerations that could disproportionately affect smaller institutions. The financial burdens associated with compliance, reporting, and penalties may redirect resources, impacting the core educational missions of these institutions.
Issues
The broad definition of 'foreign country of concern' and 'foreign entity of concern' in Sections 2 and 5 could lead to ambiguity and inconsistency in enforcement, raising concerns about bias and uneven application of regulations.
The requirement for institutions to disclose unredacted copies of contracts and gifts (Section 2) and the sharing of this information with multiple federal agencies raises privacy and security concerns, potentially exposing sensitive data.
The fines and penalties outlined in Section 5 are significant and could disproportionately impact smaller institutions, creating financial strain and affecting their operational capabilities.
The lack of clear criteria for determining what constitutes an 'investment of concern' in Section 4 introduces uncertainty and potential noncompliance issues for institutions attempting to meet reporting requirements.
Section 117A outlines an onerous waiver process for contracts with certain foreign entities and countries, potentially stifling beneficial collaborations and academic freedom.
The requirement for public disclosure of contracts and gifts in a searchable database (Sections 2 and 3) might lead to unintentional exposure of sensitive institutional dealings and affiliations, despite attempts to anonymize names.
Section 2 includes a broad requirement for translation of contractual information into English, which may pose significant financial burdens on institutions needing specialized translation services.
The imposition of significant administrative burdens and potential duplication of efforts outlined in Sections 2 and 117, particularly around disclosure and compliance officer requirements, may lead to wasteful spending on compliance rather than educational improvements.
The responsibilities of the single point-of-contact in Section 117D are extensive and could require significant resources to manage effectively, potentially detracting from institutional priorities and leading to inefficiency.
There is no clear mechanism for institutions to contest or appeal decisions made by the Secretary regarding designations or penalties, which could raise due process concerns (Sections 115, 117A, and 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 provided text describes amendments to the Higher Education Act of 1965, focusing on requirements for educational institutions to disclose gifts and contracts involving foreign entities. It outlines detailed rules for reporting foreign gifts and contracts, establishes a database for public access to these reports, and places restrictions on contracts with certain foreign countries or entities labeled as a concern, including how to request waivers for such contracts.
Money References
- “(a) Disclosure reports.— “(1) AGGREGATE GIFTS AND CONTRACT DISCLOSURES.—An institution shall file a disclosure report in accordance with subsection (b)(1) with the Secretary on July 31 of the calendar year immediately following any calendar year in which— “(A) the institution receives a gift from, or enters into a contract with, a foreign source (other than a foreign country of concern or foreign entity of concern)— “(i) the value of which is $50,000 or more, considered alone or in combination with all other gifts from, or contracts with, that foreign source within the calendar year; or “(ii) the value of which is undetermined; or “(B) the institution receives a gift from a foreign country of concern or foreign entity of concern, or, upon receiving a waiver under section 117A to enter into a contract with such a country or entity, enters into such contract, without regard to the value of such gift or contract.
- “(b) Contents of report.— “(1) GIFTS AND CONTRACTS.—Each report to the Secretary required under subsection (a)(1) shall contain the following: “(A) With respect to a gift received from, or a contract entered into with, any foreign source— “(i) the terms of such gift or contract, including— “(I) the name of the individual, department, or benefactor at the institution receiving the gift or carrying out the contract; “(II) the intended purpose of such gift or contract, as provided to the institution by such foreign source, or if no such purpose is provided by such foreign source, the intended use of such gift or contract, as provided by the institution; and “(III) in the case of a restricted or conditional gift or contract, a description of the restrictions or conditions of such gift or contract; “(ii) with respect to a gift— “(I) the total fair market dollar amount or dollar value of the gift, as of the date of submission of such report; and “(II) the date on which the institution received such gift; “(iii) with respect to a contract— “(I) the date on which such contract commences; “(II) as applicable, the date on which such contract terminates; and “(III) an assurance that the institution will— “(aa) maintain an unredacted copy of the contract until the latest of— “(AA) the date that is 5 years after the date on which the contract commences; “(BB) the date on which the contract terminates; or “(CC) the last day of any period that applicable State law requires a copy of such contract to be maintained; and “(bb) upon request of the Secretary during an investigation under subsection section 117D(a)(1), produce such an unredacted copy of the contract; and “(iv) an assurance that in a case in which information is required to be disclosed under this section with respect to a gift or contract that is not in English, such information is translated into English in compliance with the requirements of subsection (c)(1).
117. Disclosures of foreign gifts Read Opens in new tab
Summary AI
Institutions must report to the Secretary by July 31 each year if they receive gifts from or enter into contracts with foreign sources that are valued at $50,000 or more. These reports must include detailed information about the gift or contract, such as the source, value, and intended use, and if not in English, a translated version. Additionally, the Secretary will maintain a public database of these reports, although they will not include the names or addresses of foreign individuals.
Money References
- (a) Disclosure reports.— (1) AGGREGATE GIFTS AND CONTRACT DISCLOSURES.—An institution shall file a disclosure report in accordance with subsection (b)(1) with the Secretary on July 31 of the calendar year immediately following any calendar year in which— (A) the institution receives a gift from, or enters into a contract with, a foreign source (other than a foreign country of concern or foreign entity of concern)— (i) the value of which is $50,000 or more, considered alone or in combination with all other gifts from, or contracts with, that foreign source within the calendar year; or (ii) the value of which is undetermined; or (B) the institution receives a gift from a foreign country of concern or foreign entity of concern, or, upon receiving a waiver under section 117A to enter into a contract with such a country or entity, enters into such contract, without regard to the value of such gift or contract.
- a contract entered into with, any foreign source— (i) the terms of such gift or contract, including— (I) the name of the individual, department, or benefactor at the institution receiving the gift or carrying out the contract; (II) the intended purpose of such gift or contract, as provided to the institution by such foreign source, or if no such purpose is provided by such foreign source, the intended use of such gift or contract, as provided by the institution; and (III) in the case of a restricted or conditional gift or contract, a description of the restrictions or conditions of such gift or contract; (ii) with respect to a gift— (I) the total fair market dollar amount or dollar value of the gift, as of the date of submission of such report; and (II) the date on which the institution received such gift; (iii) with respect to a contract— (I) the date on which such contract commences; (II) as applicable, the date on which such contract terminates; and (III) an assurance that the institution will— (aa) maintain an unredacted copy of the contract until the latest of— (AA) the date that is 5 years after the date on which the contract commences; (BB) the date on which the contract terminates; or (CC) the last day of any period that applicable State law requires a copy of such contract to be maintained; and (bb) upon request of the Secretary during an investigation under subsection section 117D(a)(1), produce such an unredacted copy of the contract; and (iv) an assurance that in a case in which information is required to be disclosed under this section with respect to a gift or contract that is not in English, such information is translated into English in compliance with the requirements of subsection (c)(1).
117A. Prohibition on contracts with certain foreign entities and countries Read Opens in new tab
Summary AI
The section outlines rules preventing institutions from making contracts with countries or entities deemed concerning by the U.S. The section allows exceptions if waivers are requested and approved, requiring proof that the contract benefits the institution and the U.S., along with specific steps for renewal and disclosure to Congress.
3. Policy regarding conflicts of interest from foreign gifts and contracts Read Opens in new tab
Summary AI
The text describes a new requirement under the Higher Education Act that mandates certain institutions to implement policies for reporting foreign gifts and contracts received by their faculty and staff. These institutions must maintain a public database of these disclosures, have plans to protect against potential espionage related to foreign interactions, and are obligated to cooperate with investigations and information requests.
Money References
- “(a) Requirement to maintain policy and database.—Beginning not later than 90 days after the date of the 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 entered into with a foreign source in the previous calendar year, the value of which is $5,000 or more, considered alone or in combination with all other contracts with that foreign source within the calendar year, and including the date on which such contract commences and, as applicable, the date on which such contract terminates; “(C) any contract with a foreign source in force during the previous calendar year that has an undetermined monetary value, and including the date on which such contract commences and, as applicable, the date on which such contract terminates; and “(D) any contract entered into with a foreign country of concern or foreign entity of concern in the previous calendar year, the value of which is $0 or more, and including the beginning and ending dates of such contract and the full text of such contract and any addenda; “(2) a publicly available and searchable database (in electronic and downloadable format), on a website of the institution, of the information required to be disclosed under paragraph (1) (other than the name or any other personally identifiable information of a covered individual) that— “(A) makes available the information disclosed under paragraph (1) (other than the name or any other personally identifiable information of a covered individual) beginning on the date that is 30 days after receipt of the report under such paragraph containing such information and until the latest of— “(i) the date that is 5 years after the date on which— “(I) a gift referred to in paragraph (1)(A) is received; or “(II) a contract referred to in subparagraph (B), (C) or (D) of paragraph (1) begins; or “(ii) the date on which a contract referred to in subparagraph (B), (C) or (D) of paragraph (1) terminates; and “(B) is searchable and sortable by— “(i) the date received (if a gift) or the date commenced (if a contract); “(ii) the attributable country with respect to which information is being disclosed; “(iii) the narrowest of the department, school, or college of the institution, as applicable, for which the individual making the disclosure works; and “(iv) the name of the foreign source (other than a foreign source who is a natural person); 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’), 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
The section requires certain institutions to have a policy and database for reporting foreign gifts and contracts received by their staff. These institutions mustpublicly share this information, except for personal details of the staff, in an online database that is searchable and sortable by various criteria, and they must also implement a plan to manage potential espionage risks from these foreign interactions.
Money References
- (a) Requirement to maintain policy and database.—Beginning not later than 90 days after the date of the 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 entered into with a foreign source in the previous calendar year, the value of which is $5,000 or more, considered alone or in combination with all other contracts with that foreign source within the calendar year, and including the date on which such contract commences and, as applicable, the date on which such contract terminates; (C) any contract with a foreign source in force during the previous calendar year that has an undetermined monetary value, and including the date on which such contract commences and, as applicable, the date on which such contract terminates; and (D) any contract entered into with a foreign country of concern or foreign entity of concern in the previous calendar year, the value of which is $0 or more, and including the beginning and ending dates of such contract and the full text of such contract and any addenda; (2) a publicly available and searchable database (in electronic and downloadable format), on a website of the institution, of the information required to be disclosed under paragraph (1) (other than the name or any other personally identifiable information of a covered individual) that— (A) makes available the information disclosed under paragraph (1) (other than the name or any other personally identifiable information of a covered individual) beginning on the date that is 30 days after receipt of the report under such paragraph containing such information and until the latest of— (i) the date that is 5 years after the date on which— (I) a gift referred to in paragraph (1)(A) is received; or (II) a contract referred to in subparagraph (B), (C) or (D) of paragraph (1) begins; or (ii) the date on which a contract referred to in subparagraph (B), (C) or (D) of paragraph (1) terminates; and (B) is searchable and sortable by— (i) the date received (if a gift) or the date commenced (if a contract); (ii) the attributable country with respect to which information is being disclosed; (iii) the narrowest of the department, school, or college of the institution, as applicable, for which the individual making the disclosure works; and (iv) the name of the foreign source (other than a foreign source who is a natural person); 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”), 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 “foreign source” and “gift” have the meanings given such terms in section 117(g); (2) the term “contract”— (A) means any— (i) agreement for the acquisition, by purchase, lease, or barter, of property or services by a foreign source; (ii) affiliation, agreement, or similar transaction with a foreign source involving the use or exchange of the name, likeness, time, services, or resources of covered individuals employed at an institution described in subsection (b); or (iii) purchase, lease, or barter of property or services from a foreign source that is a foreign country of concern or a foreign entity of concern; and (B) does not include any fair-market, arms-length agreement made by covered individuals for the acquisition, by purchase, lease, or barter of property or services from a foreign source other than such a foreign source that is a foreign country of concern or a foreign entity of concern; and (3) the term “covered individual”— (A) has the meaning given such term in section 223(d) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (42 U.S.C. 6605); and (B) shall be interpreted in accordance with the Guidance for Implementing National Security Presidential Memorandum 33 (NSPM–33) on National Security Strategy for United States Government-supported Research and Development published by the Subcommittee on Research Security and the Joint Committee on the Research Environment in January 2022. ---
4. Investment disclosure report Read Opens in new tab
Summary AI
The section requires certain non-public institutions with large financial assets or investments tied to foreign countries or entities of concern to file an annual investment disclosure report with the Secretary. The report must contain detailed information about these investments, and the Secretary will make the reports publicly accessible through a searchable database.
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 “(B) REFERENCES TO CERTAIN TERMS.—For
117C. Investment disclosure report Read Opens in new tab
Summary AI
A specified institution needs to file a yearly report if it deals with investments in or related to countries or entities of concern. This report, which must be submitted to the Secretary by July 31, should include details like the list and value of such investments and sales. The section also outlines definitions, database requirements, and specifics on related organizations and obligations of a compliance officer to ensure accurate reporting.
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 (B) REFERENCES TO CERTAIN TERMS.—For
5. Enforcement and other general provisions Read Opens in new tab
Summary AI
The text describes amendments to the Higher Education Act, setting out rules for investigations, penalties, and fines for institutions that don’t comply with specific reporting requirements about foreign gifts and contracts, and specifying certain enforcement and compliance procedures, including actions by the Secretary and the Attorney General. It also establishes a single point-of-contact at the Department to aid institutions with compliance and database management, and mandates a study by the GAO to improve enforcement and coordination among agencies.
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) not less than $50,000 but not more than the monetary value of the gift from, or contract with, the foreign source; or “(bb) in the case of a 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 with respect to an additional calendar year, such fine shall be in an amount that is— “(aa) not less than $100,000 but not more than twice the monetary value of the gift from, or contract with, the foreign source; or “(bb) in the case of a gift or contract of no value or of indeterminable value, not less than 1 percent, but not more than 10 percent, of the total amount of Federal funds received by the institution under this Act for the most recent fiscal year.
- “(C) SECTION 117B.— “(i) FIRST-TIME VIOLATIONS.—In the case of an institution that knowingly or willfully fails to comply with a requirement of section 117B with respect to a calendar year, and that has not previously knowingly or willfully failed to comply with such a requirement, the Secretary shall impose a fine on the institution of not less than $250,000, but not more than the total amount of gifts or contracts reported by such institution in the database required under section 117B(a)(2).
- “(ii) SUBSEQUENT VIOLATIONS.—In the case of an institution that has been fined pursuant to clause (i) with respect to a calendar year, and that knowingly or willfully fails to comply with a requirement of section 117B with respect to any additional calendar year, the Secretary shall impose a fine on the institution with respect to any such additional calendar year in an amount that is not less than $500,000, but not more than twice the total amount of gifts or contracts reported by such institution in the database required under section 117B(a)(2).
117D. Enforcement; single point-of-contact Read Opens in new tab
Summary AI
The text outlines the enforcement process for educational institutions that violate specific compliance sections, detailing investigation procedures, civil actions, and the range of fines based on the nature and frequency of violations. It also describes the creation of a single point of contact within the Department to assist institutions, improve database functionality, and maintain communication regarding investigations and updates on foreign countries or entities of concern.
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) not less than $50,000 but not more than the monetary value of the gift from, or contract with, the foreign source; or (bb) in the case of a 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 with respect to an additional calendar year, such fine shall be in an amount that is— (aa) not less than $100,000 but not more than twice the monetary value of the gift from, or contract with, the foreign source; or (bb) in the case of a gift or contract of no value or of indeterminable value, not less than 1 percent, but not more than 10 percent, of the total amount of Federal funds received by the institution under this Act for the most recent fiscal year.
- (C) SECTION 117B.— (i) FIRST-TIME VIOLATIONS.—In the case of an institution that knowingly or willfully fails to comply with a requirement of section 117B with respect to a calendar year, and that has not previously knowingly or willfully failed to comply with such a requirement, the Secretary shall impose a fine on the institution of not less than $250,000, but not more than the total amount of gifts or contracts reported by such institution in the database required under section 117B(a)(2).
- (ii) SUBSEQUENT VIOLATIONS.—In the case of an institution that has been fined pursuant to clause (i) with respect to a calendar year, and that knowingly or willfully fails to comply with a requirement of section 117B with respect to any additional calendar year, the Secretary shall impose a fine on the institution with respect to any such additional calendar year in an amount that is not less than $500,000, but not more than twice the total amount of gifts or contracts reported by such institution in the database required under section 117B(a)(2).