Sec. 5. Enforcement and other general provisions

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The Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq. ), as amended by section 4 of this Act, is further amended by inserting after section 117C the following: The Secretary (acting through the General Counsel of the Department) may conduct investigations of possible violations of sections 117, 117A, 117B, and 117C by institutions. Whenever it appears that an institution has knowingly or willfully failed to comply with a requirement of any of the sections listed in paragraph

(1)(including any rule or regulation promulgated under any such section) based on such an investigation, a civil action may be brought by the Attorney General, at the request of the Secretary, in an appropriate district court of the United States, or the appropriate United States court of any territory or other place subject to the jurisdiction of the United States, to request such court to compel compliance with the requirement of the section that has been violated. An institution that is compelled to comply with a requirement of a section listed in paragraph

(1)pursuant to paragraph

(2)shall— pay to the Treasury of the United States the full costs to the United States of obtaining compliance with the requirement of such section, including all associated costs of investigation and enforcement; and be subject to the applicable fines described in paragraph (4). The Secretary shall impose a fine on an institution that knowingly or willfully fails to comply with a requirement of a section listed in paragraph

(1)as follows: In the case of an institution that knowingly or willfully fails to comply with a requirement of section 117 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 for such violation as follows: 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— not less than $50,000 but not more than the monetary value of the gift from, or contract with, the foreign source; or 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 the reporting requirement under subsection (a)(2) of section 117, such fine shall be in an amount that is not less 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 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 117 with respect to any additional calendar year, the Secretary shall impose a fine on the institution with respect to any such additional calendar year as follows: 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— not less than $100,000 but not more than twice the monetary value of the gift from, or contract with, the foreign source; or 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. In the case of an institution that knowingly or willfully fails to comply with a reporting requirement under subsection (a)(2) of section 117 with respect to an additional calendar year, such fine shall be in an amount that is not less than 20 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 requirement of section 117A for the first time, the Secretary shall impose a fine on the institution in an amount that is not less than 5 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. In the case of an institution that has been fined pursuant to clause (i), the Secretary shall impose a fine on the institution for each subsequent time the institution knowingly or willfully fails to comply with a requirement of section 117A in an amount that is not less than 20 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 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). 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). In the case of a specified institution that knowingly or willfully fails to comply with a requirement of section 117C 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 in an amount that is not less than 50 percent and not more than 100 percent of the sum of— the aggregate fair market value of all investments of concern held by such institution as of the close of such calendar year; and the combined value of all investments of concern sold over the course of such calendar year, as measured by the fair market value of such investments at the time of the sale. In the case of a specified 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 117C 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 100 percent and not more than 200 percent of the sum of— the aggregate fair market value of all investments of concern held by such institution as of the close of such additional calendar year; and the combined value of all investments of concern sold over the course of such additional calendar year, as measured by the fair market value of such investments at the time of the sale. The Secretary shall maintain a single point-of-contact at the Department to— receive and respond to inquiries and requests for technical assistance from institutions regarding compliance with the requirements of sections 117, 117A, 117B, and 117C; coordinate and implement technical improvements to the database described in section 117(d)(1), including— improving upload functionality by allowing for batch reporting; publishing and maintaining a database users guide annually, including areas such as how to edit an entry and how to report errors; and creating a user group (to which chapter 10 of title 5, United States Code, shall not apply) to discuss possible database improvements; provide, every 90 days after the date of enactment of the DETERRENT Act , status updates on any pending or completed investigations and civil actions under subsection (a)(1) to— the authorizing committees; and any institution that is the subject of such investigation or action; maintain, on a publicly accessible website— a full comprehensive list of all foreign countries of concern and foreign entities of concern; and the date on which the last update was made to such list; and not later than 7 days after making an update to the list maintained in paragraph (4)(A), notify each institution required to comply with the sections listed in paragraph

(1)of such update. For purposes of sections 117, 117A, 117B, 117C, and this section: The term foreign country of concern includes the following: A country that is a covered nation (as defined in section 4872(d) of title 10, United States Code). Any country that the Secretary, in consultation with the Secretary of Defense, the Secretary of State, and the Director of National Intelligence, determines to be engaged in conduct that is detrimental to the national security or foreign policy of the United States. The term foreign entity of concern has the meaning given such term in section 10612(a) of the Research and Development, Competition, and Innovation Act ( 42 U.S.C. 19221(a) ) and includes a foreign entity that is identified on the list published under section 1286(c)(8)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (10 U.S.C. 22 4001 note; Public Law 115–232 ). The term institution means an institution of higher education (as such term is defined in section 102, other than an institution described in subsection (a)(1)(c) of such section). . Section 487(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1094 ) is amended by adding at the end the following: An institution will comply with the requirements of sections 117, 117A, 117B, and 117C. An institution that, for 3 consecutive institutional fiscal years, violates any requirement of any of the sections listed in subparagraph (A), shall— be ineligible to participate in the programs authorized by this title for a period of not less than 2 institutional fiscal years; and in order to regain eligibility to participate in such programs, demonstrate compliance with all requirements of each such section for not less than 2 institutional fiscal years after the institutional fiscal year in which such institution became ineligible. . Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States— shall conduct a study to identify ways to improve intergovernmental agency coordination regarding implementation and enforcement of sections 117, 117A, 117B, and 117C of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ), as amended or added by this Act, including increasing information sharing and establishing processes for enforcement; and shall submit to the Congress, and make public, a report containing the results of such study.

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