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
S. 1296 is a bill that wants colleges to tell more about money and contracts they get from other countries. It also wants to make sure they avoid deals with certain tricky countries, with rules on what happens if they don't follow these rules.
Summary AI
S. 1296 aims to amend the Higher Education Act of 1965 to enhance disclosure requirements for foreign gifts and contracts received by U.S. higher education institutions. The bill introduces stricter rules on reporting gifts and contractual agreements with foreign sources, particularly those involving countries or entities of concern. It also prohibits these institutions from entering into certain contracts with these countries and entities without specific waivers and establishes penalties for non-compliance. Additionally, the bill mandates institutions to have policies for managing potential conflicts of interest arising from foreign affiliations and requires regular investigation and enforcement of these rules.
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AnalysisAI
General Summary of the Bill
The proposed bill, known as the "Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act" or the "DETERRENT Act," seeks to amend the Higher Education Act of 1965. The bill aims to enhance disclosure requirements for foreign gifts and contracts received by U.S. educational institutions. It also seeks to prohibit contracts between these institutions and certain foreign entities and countries deemed of concern. The legislation proposes the creation of a public, searchable database for these disclosures and outlines the enforcement measures for non-compliance.
Significant Issues
Several concerns have been raised regarding this bill:
Ambiguity in Definitions: The terms "foreign country of concern" and "foreign entity of concern" are not clearly defined, which could lead to inconsistent application and confusion among educational institutions about compliance requirements.
Data Privacy and Security Risks: Requirements for maintaining unredacted copies of contracts and establishing public databases raise notable data privacy concerns. There is a risk that sensitive personal information could be exposed or misused, especially regarding individuals who are foreign nationals.
Administrative and Financial Burden: The bill's detailed requirements may impose a significant administrative burden, particularly on smaller educational institutions. These requirements could result in increased compliance costs, potentially diverting resources away from educational purposes.
Excessive Fines and Penalties: The fines and penalties outlined in the bill could be disproportionately punitive, particularly for first-time offenders. Smaller institutions might face financial instability if penalized heavily.
Lack of Clear Penalty Appeal Process: There is no structured process for appealing fines or penalties, which may raise due process concerns for institutions facing enforcement actions.
Interagency Information Sharing: The mandated sharing of information with multiple agencies might conflict with existing privacy laws and could lead to over-dissemination of sensitive data.
Espionage Prevention Requirements: Institutions are tasked with developing plans to identify and manage potential espionage risks, a responsibility that might be beyond their expertise and resources.
Impact on the Public
Broadly, the bill aims to increase transparency in foreign financial interactions with educational institutions, reflecting a heightened concern over foreign influence. For the public, this transparency may foster trust that higher education institutions are not unduly influenced by foreign powers with potentially adversarial interests.
However, the handling of personal data and privacy remains a contentious issue. With heightened data collection and sharing, there is potential for misuse or unintended exposure of sensitive information, impacting individuals' privacy rights.
Impact on Specific Stakeholders
Educational Institutions
Positive Impacts: Increased disclosure might protect institutions from foreign influence that could undermine academic integrity or national security. The transparency measures could improve the public perception of institutions as active participants in safeguarding national interests.
Negative Impacts: Smaller institutions, in particular, may struggle with the resources needed to comply with detailed disclosure requirements and potential fines. This could disproportionately impact their operating budgets and hinder their educational mandates.
Government and Regulatory Bodies
The bill empowers government bodies to maintain close oversight over educational institutions' foreign interactions, potentially allowing for better alignment with national security and foreign policy objectives. However, the burden of enforcing compliance, managing data, and handling potential legal challenges may place significant demands on these agencies.
Foreign Partners and Collaborators
Foreign entities engaging with U.S. institutions might face increased scrutiny, possibly affecting collaborations and partnerships. The broad definitions and potential ambiguity in implementing the bill's provisions might deter beneficial foreign investments and collaborations.
In summary, while the DETERRENT Act addresses valid concerns over foreign influence in U.S. higher education, its implementation might pose significant challenges in terms of privacy, administrative burden, and enforcement fairness. The success of the bill will hinge on its ability to balance national security with the operational realities of educational institutions and their stakeholders.
Financial Assessment
The proposed legislation to amend the Higher Education Act of 1965, known as the "Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act" or the "DETERRENT Act," involves several financial elements that bear scrutiny. This commentary provides an overview of the financial aspects within the bill, alongside an examination of how these allocations relate to the identified issues.
Financial Penalties and Fines
The bill imposes financial penalties on institutions that fail to comply with its revised disclosure requirements concerning foreign gifts and contracts. Notably:
For first-time violations concerning the disclosure of gifts or contracts, an institution may face fines that are the greater of $50,000 or the monetary value of the gift or contract itself. If the value of the gift or contract is indeterminate, the fines could range from 1% to 10% of the total Federal funds received by the institution for the most recent fiscal year.
For subsequent violations, the fines increase significantly. Institutions may be fined the greater of $100,000 or twice the monetary value of the non-compliant gift or contract. For gifts or contracts of indeterminate value, fines could be between 5% to 10% of the Federal funds received by the institution.
Section 117B states that institutions compelled to comply due to violations may be fined $250,000 for first-time violations, or the total amount of gifts or contracts not reported, whichever is greater. For subsequent violations, the amount doubles to $500,000 or twice the total amount involved.
These penalties relate directly to one of the issues identified: the potential excessive nature of the fines, especially for first-time offenses. They raise concerns about the financial burden on smaller institutions, which might not have the same monetary flexibility as larger universities, potentially threatening their financial stability.
Compliance Costs and Administrative Burden
The bill mandates detailed reporting, database maintenance, and disclosure requirements that could lead to significant compliance costs for educational institutions. These administrative burdens represent not just a potential diversion of resources from educational activities but also financial implications. Smaller institutions, in particular, might find the costs associated with hiring additional compliance staff or restructuring their administrative processes to be particularly burdensome. This concern ties in with the identified issue of significant compliance costs potentially diverting resources from core educational missions.
Financial Resources for Investigation and Enforcement
The legislation also requires institutions that fail to comply to pay the full costs of obtaining compliance. This may include all associated costs of investigation and enforcement actions brought by the Attorney General. This provision adds an additional financial burden to non-compliant institutions but could serve as a deterrent, encouraging institutions to adhere to the new regulations from the outset, despite the intricate requirements.
Eligibility Impact on Federal Funds
Furthermore, repeated non-compliance may result in institutions becoming ineligible for Federal funds for a period, further exacerbating financial pressures. This potential loss of financial resources underscores the severity of financial repercussions intended by the Act to enforce compliance.
Conclusion
In summary, the DETERRENT Act incorporates multiple financial safeguards intended to ensure compliance with its provisions on foreign gift and contract disclosures. However, the financial penalties and compliance costs raise substantial concerns about their potential impact on educational institutions, particularly smaller entities. Balancing security and transparency with financial viability remains a critical consideration in the application and interpretation of this legislation.
Issues
The broad and vague definition of 'foreign country of concern' and 'foreign entity of concern' in Sections 2, 117, 117A, 117B, and 117C might lead to ambiguity and inconsistent application across institutions, potentially resulting in confusion or misinterpretation when determining compliance requirements.
Data privacy concerns arise from the requirement to maintain unredacted contract copies and related documents, and the establishment of public and interagency databases in Sections 2, 3, and 117B, which may lead to security risks, especially concerning personal information of natural persons associated with foreign sources.
The complexity and potential administrative burden on institutions, especially smaller ones, due to the detailed disclosure requirements, waiver processes, and searchable database maintenance in Sections 2, 3, 117A, 117B, and 117C could result in significant compliance costs, diverting resources from educational activities.
The fines and penalties described in Section 117C are potentially excessive, especially for first-time violations, which could disproportionately affect smaller institutions financially, impacting their operational stability.
The lack of clear penalties for non-compliance or the criteria to appeal fines or penalties in Sections 117A, 117B, and 117C could lead to due process concerns for affected institutions, as well as enforcement challenges.
The requirement for institutions to engage in interagency information sharing in Section 2(e) may result in privacy risks and over-dissemination of sensitive information, potentially conflicting with privacy laws and expectations.
The requirement for institutions to manage potential information gathering through espionage in Section 3 might be seen as an overreach, as it imposes quasi-intelligence responsibilities on educational institutions, which may lack the resources or expertise to implement such measures effectively.
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 text outlines specific requirements for colleges and universities to disclose information regarding substantial gifts and contracts from foreign sources to the U.S. Department of Education. These institutions must report details such as the purpose, value, and conditions of such gifts and contracts, while also showing how they benefit the institution and align with U.S. interests. Certain privacy protections apply, particularly for individuals involved, and there are restrictions and procedures for dealing with certain foreign entities, including seeking waivers for contracts in connection with 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 117C(a)(1), produce such an unredacted copy of the contract.
117. Disclosures of foreign gifts Read Opens in new tab
Summary AI
This bill section requires institutions to disclose gifts and contracts they receive from foreign sources, especially those from countries or entities of concern, to the Secretary of Education. These reports, highlighting the value and purpose of such gifts or contracts, must be filed annually and will be included in a public database, with certain privacy protections provided for individuals involved.
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 117C(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
Institutions cannot make contracts with foreign countries or entities of concern unless they get a 1-year waiver from the Secretary, who will only grant it if the contract benefits the institution and the United States. If a contract becomes a concern during its term, the institution must terminate it within 60 days of being notified, and for contracts made before the law was enacted, a waiver must be obtained quickly or the contract must end.
3. Policy regarding conflicts of interest from foreign gifts and contracts Read Opens in new tab
Summary AI
Institutions receiving significant federal funding must create a policy and database for reporting gifts and contracts from foreign sources, requiring disclosures from faculty and staff, and ensuring compliance with privacy laws. The policy aims to track financial interactions with foreign entities and prevent potential espionage, with details available in a searchable database.
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 in; 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 117C(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
Each institution with significant federal funding must create a policy and publicly accessible database to disclose gifts and contracts involving foreign sources. They must track and manage the details of these agreements to prevent possible foreign espionage, while protecting the personal information of involved individuals.
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 in; 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 117C(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. Enforcement and other general provisions Read Opens in new tab
Summary AI
The text outlines amendments to the Higher Education Act of 1965, focusing on enforcing compliance among educational institutions regarding foreign gifts and contracts. It details investigation procedures for violations, civil actions, fines for non-compliance, and mandates institutions to have compliance officers and policies in place. The Secretary of Education is also tasked with maintaining a point of contact to assist institutions and improve compliance-related processes.
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.
117C. Enforcement; single point-of-contact; institutional requirements Read Opens in new tab
Summary AI
The section establishes enforcement procedures and penalties for institutions that fail to comply with specific reporting requirements, involving investigations, civil actions, and fines. It also mandates institutions to designate compliance officers and establish institutional policies, creates a central contact point at the Department for assistance and database improvements, and defines key terms such as "foreign country of concern" and "foreign entity 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) 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.