Sec. 3. Prohibitions relating to higher education
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An institution of higher education, including any member of the faculty or staff of an institution of higher education, that receives Federal funds— shall not enter into or maintain a covered relationship with a covered person; and shall establish and maintain a policy to— prohibit faculty and staff of the institution from entering into or maintaining covered relationships with covered persons; require faculty and staff to report to the institution covered relationships with foreign sources; and provide guidance to faculty and staff to help faculty and staff— take preventative actions regarding covered relationships with covered persons; and identify existing covered relationships with covered persons.
Upon determination, after reasonable notice and opportunity for a hearing, that an institution of higher education has knowingly violated subparagraph
(A)of paragraph (1), including by failing to exercise reasonable oversight over its faculty and staff with respect to preventing a violation of subparagraph
(A)of paragraph (1)— the Secretary may suspend or terminate the eligibility status for any or all Federal funding (including funding under the Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq. )) of any otherwise eligible institution, in accordance with procedures specified in such Act as applicable, until the Secretary finds that such practices have been corrected; or the Secretary may impose a civil penalty upon such institution. Subject to paragraph (2), an institution of higher education shall not be eligible to receive Federal funds if that institution is owned, operated, or controlled by a covered person. Notwithstanding any other provision of law, and on a case-by-case basis, the Secretary may allow an institution that is owned, operated, or controlled by a covered person as of the date of enactment of this Act a transition period of not more than 4 years from the date of enactment of this Act, during which time the institution may continue to receive Federal funding. Notwithstanding any other provision of law, and on a case-by-case basis, the Secretary may allow an institution with respect to which the status of being owned, operated, or controlled by a covered person came into effect after the date of enactment of this Act a transition period of not more than 1 year from the date on which that institution is found to be owned, operated, or controlled by a covered person, during which time the institution may continue to receive Federal funding. Not later than 1 year after the date of enactment of this Act, the Secretary shall identify institutions that are owned, operated, or controlled by a covered person and notify such institutions about the prohibition under this subsection. Each institution of higher education shall annually submit a report to each Federal agency from which that institution receives Federal funding, containing information about— the extent to which the institution (including faculty and staff of the institution) has, or has had, covered relationships with covered persons; the extent to which covered entities have undermined or undermine academic integrity, influence academic and extra-curricular activities, and stifle free speech, at the institution of higher education; preventative actions that the institution of higher education took or plans to take regarding covered relationships with covered persons; enforcement actions that the institution of higher education took or plans to take regarding covered relationships with covered persons; and any ways in which the Federal agency could help the institution of higher education— take preventative actions regarding covered relationships with covered persons; and identify existing covered relationships with covered persons of which the institution of higher education is not aware. The Secretary of Education, in consultation with every other Federal agency that provides funding to institutions of higher education, shall provide an annual report to Congress that shall include, at minimum— information about the extent to which institutions of higher education have had or have relationships with foreign sources, particularly covered persons; the extent to which covered persons have undermined or undermine academic integrity, influence academic and extra-curricular activities, and stifle free speech, at institutions of higher education; preventative actions that the Federal agencies took or plan to take regarding covered relationships with covered persons; enforcement actions that the Federal agencies took or plan to take regarding covered relationships with covered persons; and any technical assistance that the Secretary or any other Federal agency has carried out to help institutions of higher education— take preventative actions regarding covered relationships with covered persons; and identify existing covered relationships with covered persons of which the institution of higher education is not aware.
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Sec. 3
Prohibitions relating to higher education
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