Sec. 2. Disclosures of foreign gifts
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Section 117 of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ) is amended to read as follows: 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— 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)— 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 the value of which is indeterminate; or the institution— receives a gift from a foreign country of concern or foreign entity of concern, without regard to the value of such gift; 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 contract.
Notwithstanding paragraph (1), in the case of an institution that is substantially controlled (as described in section 668.174(c)(3) of title 34, Code of Federal Regulations) (or successor regulations)) by a foreign source, the institution shall file with the Secretary, in accordance with subsection (b)(2), a disclosure report on July 31 of each year. 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.
Each report to the Secretary required under subsection (a)(1) shall include the following: With respect to a gift received from, or a contract entered into with, any foreign source— 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; 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; 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); with respect to such a gift— the total fair market dollar amount or dollar value of the gift, as of the date of submission of such report; and the date on which the institution received such gift; with respect to such a contract— the total fair market dollar amount or dollar value of the contract, as of the date of submission of such report; the date on which the institution enters into such contract; the date on which such contract first takes effect; if the contract has a termination date, such termination date; and an assurance that the institution will— maintain an unredacted copy of the contract until the latest of— the date that is 5 years after the date on which such contract first takes effect; the date on which the contract terminates; or the last day of any period that applicable State law requires a copy of such contract to be maintained; and upon request of the Secretary during an investigation under section 117D(a)(1), produce such an unredacted copy of the contract.
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)— the name of such foreign government; the department, agency, office, or division of such foreign government that approved such gift or contract, as applicable; and the physical mailing address of such department, agency, office, or division. With respect to a gift received from, or contract entered into with, a foreign source other than a foreign government subject to the requirements of subparagraph (B)— the legal name of the foreign source; or in the case of a gift received from a foreign source that awarded such gift to the institution as an agent described in subsection (f)(4)(G) on behalf of another foreign source— the legal name of the foreign source that awarded such gift; and the legal name of the foreign source on whose behalf the gift was awarded, or a statement certified by a compliance officer in accordance with section 117D(c) that the institution has reasonably attempted to obtain such name; in the case of a foreign source that is a natural person, each country of citizenship of such person, or, if no such country is known, the principal country of residence of such person; in the case of a foreign source that is a legal entity, the country in which such entity is incorporated, or, if such information is not available, the principal place of business of such entity; the physical mailing address of such foreign source, or, if such address is not available, a statement certified by a compliance officer in accordance with section 117D(c) that the institution has reasonably attempted to obtain such address; and any affiliation of the foreign source to an organization that is designated as a foreign terrorist organization pursuant to section 219 of the Immigration and Nationality Act ( 8 U.S.C. 1189 ).
With respect to a contract entered into with a foreign source that is a foreign country of concern or a foreign entity of concern— a complete and unredacted copy of the original contract, and if such original contract is not in English, a translated copy in accordance with subsection (c); a copy of the waiver received under section 117A for such contract; and the statement submitted by the institution for purposes of receiving such a waiver under section 117A(b)(2). With respect to a gift received from a foreign source that is a foreign country of concern or a foreign entity of concern, an assurance that the institution will— in a case in which the institution received documentation relating to such gift, maintain such documentation until the latest of— the date that is 5 years after the date such gift was received by the institution; or the last day of any period that applicable State law requires a copy of such documentation to be maintained; and upon request of the Secretary during an investigation under section 117D(a)(1), produce such documentation;
Each report to the Secretary required under subsection (a)(2) shall contain— the information required under paragraph
(1)of this subsection; the legal name and the mailing address of the foreign source that substantially controls the institution as described in such subsection; the date on which the foreign source assumed such substantial control; and any changes in program or structure of the institution of higher education resulting from such substantial control. Any information required to be disclosed under this section, or requested by the Secretary pursuant to an investigation under section 117D(a)(1), with respect to a gift or contract that is not in English shall be translated into English, for purposes of such disclosure or such investigation, by a person that is not— a foreign source that awarded such gift or entered into such contract; or any other foreign source from an attributable country of a foreign source referred to in paragraph (1). Beginning not later than May 31 of the calendar year following the date of enactment of the DETERRENT Act , the Secretary shall— establish and maintain a searchable database on a website of the Department, under which all reports submitted under this section (including, to the extent practicable, any report submitted under this section before the date of enactment of the DETERRENT Act )— are made publicly available (in electronic and downloadable format), including any information provided in such reports (other than the information prohibited from being publicly disclosed pursuant to paragraph (2)); can be individually identified and compared; and to the extent practicable, are searchable and sortable— by the institution that filed such report; by the date on which the institution filed such report; by the date on which the institution received the gift which is the subject of the report; by the date on which the institution enters into the contract which is the subject of the report; by the date on which such contract first takes effect; by the attributable country of such gift or contract; by the name of the foreign source; by the information described in subparagraph (C)(i); and by the information described in subparagraph (C)(ii); not later than 30 days after receipt of a disclosure report under this section, include such report in such database; indicate, as part of the public record of a report included in such database, whether the report is with respect to a gift received from, or a contract entered into with— a foreign source that is a foreign government; or a foreign source that is not a foreign government; and with respect to a disclosure report that does not include the name or address of a foreign source, indicate, as part of the public record of such report included in such database, that such report did not include such information. Except as provided in subparagraph (B), a disclosure report filed pursuant to this section is not subject to Federal privacy law (including any exemption from disclosure described in section 552(b) of title 5, United States Code)). Except as provided in clause (ii), with respect to a disclosure report filed under this section, the name or address (other than the attributable country) of a foreign source that is a natural person— may not be publicly disclosed; and is exempt from disclosure under subsection (b)(3) of section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act). Clause
(i)shall not apply to a disclosure report filed pursuant to this section that contains information with respect to a contract described in subsection (a)(1)(B)(ii) entered into with a foreign country of concern or foreign entity of concern. Notwithstanding any other provision of law, not later than 30 days after receiving a disclosure report from an institution in compliance with this section, the Secretary shall transmit an unredacted copy of such report (including the name and address of a foreign source disclosed in such report) to the Director of the Federal Bureau of Investigation, the Director of National Intelligence, the Director of the Central Intelligence Agency, the Secretary of State, the Secretary of Defense, the Attorney General, the Secretary of Commerce, the Secretary of Homeland Security, the Secretary of Energy, the Director of the National Science Foundation, and the Director of the National Institutes of Health. In this section: The term affiliated entity , when used with respect to an institution, means an entity or organization that operates primarily for the benefit of, or under the auspices of, such institution, such as a foundation of the institution, or an educational, cultural, or language entity. The term attributable country means— the country of citizenship of a foreign source who is a natural person, or, if such country is unknown, the principal residence of such foreign source; or the country of incorporation of a foreign source that is a legal entity, or, if such country is unknown, the principal place of business (as applicable) of such foreign source. The term contract — means— any agreement for the acquisition by purchase, lease, or barter of property (including intellectual property) or services by the foreign source; except as provided in subparagraph (B)(ii), any agreement for the acquisition by purchase, lease, or barter of property (including intellectual property) or services from a foreign source; and any affiliation, agreement, or similar transaction with a foreign source that involves the use or exchange of an institution’s name, likeness, time, services, or resources; and does not include— an agreement made between an institution and a foreign source regarding any payment of one or more elements of a student’s cost of attendance (as such term is defined in section 472), unless such an agreement is made for more than 15 students or is made under a restricted or conditional contract; an arms-length agreement for the acquisition by purchase, lease, or barter of property (including intellectual property) or services from a foreign source that is not a foreign country of concern or a foreign entity of concern; or any assignment or license of a granted intellectual property right (including a patent, trademark, or copyright) that is not associated with a category listed in the Commerce Control List maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 1 to part 774 of title 15, Code of Federal Regulations (or successor regulations). The term foreign source means— a foreign government, including an agency of a foreign government; a legal entity, governmental or otherwise, created under the laws of a foreign state or states; a legal entity, governmental or otherwise, substantially controlled (as described in section 668.174(c)(3) of title 34, Code of Federal Regulations) (or successor regulations)) by a foreign source; a natural person who is not a citizen or a national of the United States or a trust territory or protectorate thereof; an international organization (as such term is defined in the International Organizations Immunities Act ( 22 U.S.C. 288 )); a person who is an agent of a foreign principal (as such term is defined in section 1 of the Foreign Agents Registration Act of 1938 ( 22 U.S.C. 611 )); and an agent of any of the entities described in subparagraphs
(A)through (F), including— a subsidiary or affiliate of a foreign legal entity, acting on behalf of such an entity; and a person that operates primarily for the benefit of, or under the auspices of, such an entity, such as a foundation of such entity, or an educational, cultural, or language entity. The term gift — means any gift of money, property (including intellectual property), resources, staff, or services; and does not include— any payment of one or more elements of a student’s cost of attendance (as such term is defined in section 472) to an institution by, or scholarship from, a foreign source who is a natural person, acting in their individual capacity and not as an agent for, at the request or direction of, or on behalf of, any person or entity (except the student), made for not more than 15 students, and that is not made under a restricted or conditional contract with such foreign source; any assignment or license of a granted intellectual property right (including a patent, trademark, or copyright) that is not associated with a category listed in the Commerce Control List maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 1 to part 774 of title 15, Code of Federal Regulations (or successor regulations); or decorations (as such term is defined in section 7342(a) of title 5, United States Code). The term restricted or conditional gift or contract means any endowment, gift, grant, contract, award, present, or property (including intellectual property) of any kind which includes provisions regarding— the employment, assignment, or termination of faculty; the establishment of, or the provision of funding for, departments, centers, institutes, instructional programs, research or lecture programs, or new faculty positions; the selection, admission, or education of students; or the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion. . Part B of title I of the Higher Education Act of 1965 ( 20 U.S.C. 1011 et seq. ) is amended by inserting after section 117 the following: An institution shall not enter into a contract with a foreign country of concern or a foreign entity of concern. A waiver issued under this section to an institution with respect to a contract shall only— waive the prohibition under subsection
(a)for a 1-year period; and apply to the terms and conditions of the proposed contract submitted as part of the request for such waiver. An institution that desires to enter into a contract with a foreign entity of concern or a foreign country of concern may submit to the Secretary, not later than 120 days before the institution enters into such a contract, a request to waive the prohibition under subsection
(a)with respect to such contract. A waiver request submitted by an institution under clause
(i)shall include— the complete and unredacted text of the proposed contract for which the waiver is being requested, and if such original contract is not in English, a translated copy of the text into English (in a manner that complies with section 117(c)); and a statement that— is certified by a compliance officer of the institution designated in accordance with section 117D(c); and includes information that demonstrates that such contract— is for the benefit of the institution’s mission and students; and will promote the security, stability, and economic vitality of the United States. An institution that, pursuant to a waiver issued under this section, has entered into a contract, the term of which is longer than the 1-year waiver period and the terms and conditions of which remain the same as the proposed contract submitted as part of the request for such waiver may submit, not later than 120 days before the expiration of such waiver period, a request for a renewal of such waiver for an additional 1-year period (which shall include any information requested by the Secretary). If the institution fails to submit a request under clause
(i)or is not granted a renewal under such clause, such institution shall terminate such contract on the last day of the original 1-year waiver period. The Secretary— not later than 60 days before an institution enters into a contract pursuant to a waiver request under paragraph (2)(A), or before a contract described in paragraph (2)(B)(i) is renewed pursuant to a renewal request under such paragraph, shall notify the institution— if the waiver or renewal will be issued by the Secretary; and in a case in which the waiver or renewal will be issued, the date on which the 1-year waiver period starts; and may only issue a waiver under this section to an institution if the Secretary determines, in consultation with each individual listed in section 117(e), that the contract for which the waiver is being requested— is for the benefit of the institution’s mission and students; and will promote the security, stability, and economic vitality of the United States. Not less than 2 weeks prior to issuing a waiver under paragraph (2), the Secretary shall notify the authorizing committees of the intent to issue the waiver, including a justification for the waiver. In the case of an institution that enters into a contract with a foreign source that is not a foreign country of concern or a foreign entity of concern but which, during the term of such contract, is designated as a foreign country of concern or foreign entity of concern, such institution shall terminate such contract not later than 60 days after the Secretary notifies the institution of such designation. In the case of an institution that has entered into a contract with a foreign country of concern or foreign entity of concern prior to the date of enactment of the DETERRENT Act — the institution shall as soon as practicable, but not later than 30 days after such date of enactment, submit to the Secretary a waiver request in accordance with clause
(ii)of subsection (b)(2)(A); and the Secretary shall, upon receipt of the request submitted under such clause, issue a waiver to the institution for a period beginning on the date on which the waiver is issued and ending on the sooner of— the date that is 1 year after the date of enactment of the DETERRENT Act ; or the date on which the contract terminates. An institution that has entered into a contract described in paragraph (1), the term of which is longer than the waiver period described in subparagraph
(B)of such paragraph and the terms and conditions of which remain the same as the contract submitted as part of the request required under subparagraph
(A)of such paragraph, may submit a request for renewal of the waiver issued under such paragraph in accordance with subsection (b)(2)(B). The term contract has the meaning given such term in section 117(f). . Notwithstanding any other provision of law, not later than 90 days after the date of enactment of this Act, the Secretary of Education shall transmit to each individual listed in section 117(e) of the Higher Education Act of 1965, as amended by this Act— an unredacted copy of each report (including the name and address of a foreign source disclosed in such report) received by the Department of Education under section 117 of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ) prior to the date of enactment of this Act); and any report, document, or other record generated by the Department of Education in the course of an investigation— of an institution with respect to the compliance of such institution with such section; and initiated prior to the date of enactment of this Act.
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