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 this Act, is further amended by inserting after section 117C the following: The Secretary (acting through the General Counsel of the Department) shall conduct investigations of possible violations of sections 117, 117A, 117B, 117C, and subsection

(c)of this section by institutions and, whenever it appears that an institution has knowingly or willfully failed to comply with a requirement of any of such provisions (including any rule or regulation promulgated under any such provision), shall request that the Attorney General bring a civil action in accordance with paragraph (2). Whenever it appears that an institution has knowingly or willfully failed to comply with a requirement of any of the provisions listed in paragraph

(1)(including any rule or regulation promulgated under any such provision) based on an investigation under such paragraph, a civil action shall 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 provision that has been violated. An institution that is compelled to comply with a requirement of a provision 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 provision, including all associated costs of investigation and enforcement; and if applicable, be subject to the applicable fines described in paragraph (4). The Secretary shall impose a fine on an institution that is compelled to comply with a requirement of a section listed in paragraph

(1)pursuant to paragraph

(2)as follows: In the case of an institution that is compelled to comply with a requirement of section 117 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 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— for each gift or contract with determinable value that is the subject of such a failure to comply, the greater of— $50,000; or the monetary value of such gift or contract; or 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 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 previously been compelled to comply with a requirement of section 117 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 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— for each gift or contract with determinable value that is the subject of such a failure to comply, the greater of— $100,000; or twice the monetary value of such gift or contract; or 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. In the case of an institution that knowingly or willfully fails to comply with a reporting requirement under subsection (a)(2) of section 117, 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 is compelled to comply with a requirement of section 117A 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 in an amount that is 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. In the case of an institution that has previously been compelled to comply with a requirement of section 117A 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 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 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— $250,000; or the total amount of gifts or contracts that the institution is compelled to report pursuant to such civil action. 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— $500,000; or twice the total amount of gifts or contracts that the institution is compelled to report pursuant to such civil action. In the case of an institution that is compelled to comply with a requirement of section 117C 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 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 the final calendar year for which the institution is compelled to comply with such requirement pursuant to such civil action; and the combined value of all investments of concern sold over the course of all the calendar years for which the institution is compelled to comply with such requirement pursuant to such civil action, as measured by the fair market value of such investments at the time of the sale. In the case of an institution that has previously been compelled to comply with a requirement of section 117C 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 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 the final calendar year for which the institution is compelled to comply with such requirement pursuant to such subsequent civil action; and the combined value of all investments of concern over the course of all the calendar years for which the institution is compelled to comply with such requirement pursuant to such subsequent civil action, as measured by the fair market value of such investments at the time of the sale. In the case of an institution that is fined pursuant to subparagraph (A)(ii), (B)(ii), (C)(ii), or (D)(ii), the Secretary shall prohibit the institution from obtaining a waiver, or a renewal of a waiver, under section 117A. 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, 117C, and subsection

(c)of this section; coordinate and implement technical improvements to the database described in section 117(d)(1), including— improving upload functionality by allowing for batch reporting, including by allowing institutions to upload one file with all required information into the database; publishing and maintaining a database users guide annually, including information on how to edit an entry and how to report errors; creating a standing user group (to which chapter 10 of title 5, United States Code, shall not apply) to discuss possible database improvements, which group shall— include at least— 3 members representing public institutions with high or very high levels of research activity (as defined by the National Center for Education Statistics); 2 members representing private, nonprofit institutions with high or very high levels of research activity (as so defined); 2 members representing proprietary institutions of higher education (as defined in section 102(b)); and 2 members representing area career and technical education schools (as defined in subparagraph

(C)or

(D)of section 3(3) of the Carl D. Perkins Career and Technical Education Act of 2006 ( 20 U.S.C. 2302(3) )); and meet at least twice a year with officials from the Department to discuss possible database improvements; publishing, on a publicly available website, recommended database improvements following each meeting described in subparagraph (C)(ii); and responding, on a publicly available website, to each recommendation published under subparagraph

(D)as to whether or not the Department will implement the recommendation, including the rationale for either approving or rejecting the recommendation; 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 under paragraph (4)(A), notify each institution required to comply with the sections listed in paragraph

(1)of such update. An institution that is required to file a report under section 117 or 117C, that is seeking a waiver under section 117A, or that is subject to the requirements of section 117B, shall, not later than the earlier of the date on which the institution files the first report under such a section, requests the institution’s first waiver under section 117A, or first fulfills the requirements of section 117C— establish an institutional policy that the institution shall follow in meeting the requirements of sections 117, 117A, 117B, and 117C; and designate and maintain at least one, but not more than three, current employees or legally authorized agents of such institution to serve as compliance officers to carry out the requirements listed in paragraph (2). A compliance officer designated by an institution under paragraph (1)(B) shall certify— whenever the institution is required to file a report under section 117 or 117C— the institution’s accurate compliance with the reporting requirements under such section; that the institution, in filing such report under section 117 or 117C— followed the institutional policy established under paragraph (1)(A) applicable to such section; and conducted good faith efforts and reasonable due diligence to ensure that accurate information is provided in such report, including with respect to the valuations of any assets that are disclosed in a report submitted under section 117C; and in the case of a report under section 117, any statements by the institution required to be certified by such an officer under clause

(i)or

(iv)of section 117(b)(1)(C); and whenever the institution requests a waiver under section 117A— that the institution— is in compliance with the requirements of such section; and followed the institutional policy established under paragraph (1)(A) applicable to such section; and the statement by the institution required to be certified by such an officer under section 117A(b)(2)(A)(ii)(II); and whenever the institution is subject to the requirements of section 117B, that the institution— is in compliance with the requirements of such section; and followed the institutional policy established under paragraph (1)(A) applicable to such section. For purposes of sections 117, 117A, 117B, 117C, and this section: The term foreign country of concern means the following: Any covered nation defined in section 4872 of title 10, United States Code. Any country the Secretary, in consultation with the Secretary of Defense, the Secretary of State, and the Director of National Intelligence, determines, for purposes of sections 117, 117A, 117B, 117C, or this section, 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, 117C, and 117D(c). In the case of an institution described in subparagraph (C), the institution will— 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. An institution described in this subparagraph is an institution that— has been subject to 3 separate civil actions described in section 117D(a)(2) that have each resulted in the institution being compelled to comply with one or more requirements of section 117, 117A, 117B, 117C, or 117D(c); and pursuant to section 117D(a)(4)(E), is prohibited from obtaining a waiver, or a renewal of a waiver, under section 117A. . Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall initiate a study to identify ways to improve intergovernmental agency coordination regarding implementation and enforcement of sections 117, 117A, 117B, 117C, and 117D(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ), as amended or added by this Act, including increasing information sharing, increasing compliance rates, and establishing processes for enforcement. Not later than 3 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress, and make public, a report containing the results of the study described in paragraph

(1).

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