Sec. 2. Disclosures of foreign gifts
3,190 words·~15 min read·
/bill/119/hr/1048/rh/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 undetermined; or 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.
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 contain the following: With respect to a gift received from, or a contract entered into with, any foreign source— the terms of such gift or contract, including— 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; the foreign source’s intended purpose of such gift or contract, or, in the absence of such a purpose, the manner in which the institution intends to use such gift or contract; and in the case of a restricted or conditional gift or contract, a description of the restrictions or conditions of such gift or contract; with respect to 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 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; and 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 accordance with subsection (c).
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, if such name 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 name; in the case of a foreign source that is a natural person, the country of citizenship of such person, or, if such country is not 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 text 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). Each report to the Secretary required under subsection (a)(2) shall contain— the legal name and address of the foreign source that owns or controls the institution; the date on which the foreign source assumed ownership or control; and any changes in program or structure resulting from the change in ownership or control.
Any information required to be disclosed under this section with respect to a gift or contract that is not in English shall be translated, for purposes of such disclosure, by a person that is not an affiliated entity or agent of the foreign source involved with such gift or contract. 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 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 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 (other than a foreign source that is a natural person); 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.
The Secretary shall not disclose the name or address of a foreign source that is a natural person (other than the attributable country of such foreign source) included in a disclosure report— as part of the public record of such disclosure report described in paragraph (1); or in response to a request under section 552 of title 5, United States Code (commonly known as the Freedom of Information Act ), pursuant to subsection (b)(3) of such section. 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 (that includes 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, including a foundation of the institution or a related entity (such as any 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 (as applicable) 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 or services by the foreign source; 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 any agreement for the acquisition by purchase, lease, or barter, of property or services from a foreign source (other than an arms-length agreement for such acquisition from a foreign source that is not a foreign country of concern or a foreign entity of concern); 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.
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 agent of a foreign source, including— a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source; a person that operates primarily for the benefit of, or under the auspices of, a foreign source, including a foundation or a related entity (such as any educational, cultural, or language entity); and 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 international organization (as such term is defined in the International Organizations Immunities Act ( 22 U.S.C. 288 )).
The term gift — means any gift of money, 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; or assignment or license of registered industrial and intellectual property rights, such as patents, utility models, trademarks, or copyrights, or technical assistance, that are 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 of any kind which includes provisions regarding— the employment, assignment, or termination of faculty; the establishment of departments, centers, institutes, instructional programs, research or lecture programs, or new faculty positions; the selection, admission, or education of students; 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; or any other restriction on the use of a gift or contract. .
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). . 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— any 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.
Connectionstraces to 5
Citation graph
cites case law
Cites 5Cited by 0 across 0 sources