,i #aagth ,,congress #b;d ,session ,h4 ,r4 #gaej ,,in ,,the ,,house ,,of ,,representatives ,march #ah1 #bjbb,mr4 ,banks introduced the following bill2 which was referred to the ,committee on ,education and ,labor1 and in addition to the ,committees on ,financial ,services1 ,foreign ,affairs1 and ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,higher ,education ,act of #aife to strengthen oversight and disclosures relating to foreign support for institutions of higher education1 and for other purposes4 #a4 ,disclosures of foreign gifts and contracts 7a7 ,in general ,section #aag of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f7 is amended to read as follows3 #aag4 ,disclosures of foreign gifts and contracts 7a7 ,disclosures 7#a7 ,aggregate gifts and contracts 7,a7 ,disclosure required ,except as provided in subsection 7b71 whenever an institution receives a gift from or enters into a contract with a foreign source1 the value of which is #ej1jjj or more1 considered alone or in combination with all other gifts from or contracts with that foreign source within a calendar year the institution shall file a disclosure report with the ,office for ,foreign ,gifts and ,contracts ,oversight on ,january #ca or ,july #ca1 whichever is sooner4 7,b7 ,contents of disclosure ,each report under subparagraph 7,a7 shall include the following3 7i7 ,for gifts received from or contracts entered into with a foreign government1 the aggregate amount of such gifts and contracts received from each foreign government1 including the content of each such contract4 7ii7 ,for gifts received from or contracts entered into with a foreign source other than a foreign government1 the aggregate dollar amount of such gifts and contracts attributable to a particular country1 the legal or formal name of the foreign sources1 and the content of each such contract4 7,c7 ,attribution ,for purposes of subparagraph 7,b77ii71 the country to which a gift or contract is attributable is-- 7i7 in the case of a gift from or contract entered into with a foreign source who is a natural person1 that person's country of citizenship1 or if unknown1 that person's principal country residence2 or 7ii7 in the case of a gift from or contract entered into with a foreign source which is a legal entity1 the entity's principal place of business or1 if unknown1 the entity's country of incorporation4 7#b7 ,gifts or contracts with undetermined monetary value 7,a7 ,disclosure required ,except as provided in subsection 7b71 whenever an institution receives a gift from or enters into a contract with a foreign source the value of which is not readily ascertainable1 the institution shall file a disclosure report with the ,office for ,foreign ,gifts and ,contracts ,oversight on ,january #ca or ,july #ca1 whichever is sooner4 7,b7 ,contents of disclosure ,each report under subparagraph 7,a7 shall include the information described in paragraph 7#a77;,b74 7#c7 ,ownership or control by foreign source 7,a7 ,disclosure required ,whenever an institution is owned or controlled by a foreign source the institution shall file a disclosure report with the ,office for ,foreign ,gifts and ,contracts ,oversight on ,january #ca or ,july #ca1 whichever is sooner4 7,b7 ,contents of disclosure ,each report under subparagraph 7,a7 shall include the following3 7i7 the information described in paragraph 7#a77;,b7 7without regard to any gift or contract threshold described in paragraph 7#a77;,a772 7ii7 the identity of the foreign source that owns or controls the institution2 7iii7 the date on which the foreign source assumed ownership or control2 and 7iv7 any changes in the programs or organizational structure of the institution resulting from the change in ownership or control4 7#d7 ,restricted and conditional gifts 7,a7 ,disclosure required ,except as provided in subsection 7b71 whenever any institution receives a restricted or conditional gift from or enters into a restricted or conditional contract with a foreign source 7regardless of the value of such gift or contract7 the institution shall file a disclosure report with the ,office for ,foreign ,gifts and ,contracts ,oversight on ,january #ca or ,july #ca1 whichever is sooner4 7,b7 ,contents of disclosure ,each report under subparagraph 7,a7 shall include the following3 7i7 ,nongovernmental sources ,for gifts received from or contracts entered into with a foreign source other than a foreign government1 the amount1 the date1 and a description of such conditions or restrictions4 ,the report shall also disclose the country of citizenship1 or if unknown1 the principal residence for a foreign source who is a natural person1 and the country of incorporation1 or if unknown1 the principal place of business for a foreign source which is a legal entity4 7ii7 ,governmental sources ,for gifts received from or contracts entered into with a foreign government1 the amount1 the date1 a description of such conditions or restrictions1 and the name of the foreign government4 7b7 ,limitation on acceptance of certain gifts and contracts 7#a7 ,approval required ,an institution may not accept a gift or enter into a contract described in paragraph 7#c7 unless-- 7,a7 the institution files a disclosure report with the ,office for ,foreign ,gifts and ,contracts ,oversight that includes-- 7i7 the dollar amount of the intended gift or contract2 7ii7 all terms and conditions of the intended gift or contract2 and 7iii7 the legal or formal name of the foreign source or associate of a foreign adversary that intends to make the gift or enter into the contract and-- 7,i7 in the case of a foreign source or associate of a foreign adversary who is a natural person1 that person's country of citizenship1 or if unknown1 that person's principal country of residence2 or 7,,ii7 in the case of a foreign source or associate of a foreign adversary which is a legal entity1 the entity's principal place of business1 if unknown1 the entity's country of incorporation2 7,b7 an authorized official of the institution certifies to the ,secretary that acceptance of the gift or contract-- 7i7 will not pose risks to the national security interests of the ,united ,states2 7ii7 will not compromise the competitiveness of the ,united ,states in the field to which the gift or contract pertains2 and 7iii7 will not result in any restrictions on academic freedom or discourse1 including by influencing the hiring of faculty1 the acceptance of students1 or the content of instruction in a manner favorable to the interests of the foreign source or associate of a foreign adversary that intends to make the gift or enter into the contract2 and 7,c7 the ,secretary1 acting through the ,office for ,foreign ,gifts and ,contracts ,oversight-- 7i7 thoroughly reviews and verifies the information submitted by the institution under subparagraphs 7,a7 and 7,b72 7ii7 makes a determination1 in writing1 to approve the gift or contract2 and 7iii7 transmits such approval to the institution4 7#b7 ,notice of disapproval ,if the ,secretary disapproves a gift or contract under paragraph 7#a77;,c7 the ,secretary shall transmit notice of such disapproval to the institution4 7#c7 ,gifts and contracts described ,the gifts and contracts described in this paragraph are the following3 7,a7 ,any gift from or contract with an associate of a foreign adversary the value of which is #aj1jjj or more1 considered alone or in combination with all other gifts from or contracts with such person or entity4 7,b7 ,any gift from or contract with a foreign source 7regardless of the value of such gift or contract7 that relates to the research1 development1 or production of critical technologies and1 in consideration for which1 a foreign source would be granted access to material nonpublic technical information held by an institution4 7#d7 ,criteria for heightened scrutiny ,in making a determination whether to approve or disapprove a gift or contract under paragraph 7#a77;,c71 the ,secretary shall apply a heightened standard of scrutiny to any gift or contract that relates to one or more of the following3 7,a7 ,critical technologies4 7,b7 ,biotechnology4 7,c7 ,pharmaceuticals4 7,d7 ,artificial intelligence4 7,e7 ,quantum computing4 7,f7 ,machine learning4 7,g7 ,technologies with military applications4 7,h7 ,any other area of science1 technology1 engineering1 or mathematics4 7d7 ,availability of documentation ,as part of each disclosure required under this section1 an institution shall provide to the ,secretary an assurance that the institution will1 upon request of the ,secretary1 produce true copies of any documentation relating to any gift1 contract1 or change in ownership or control subject to such disclosure requirements4 7e7 ,translations ,each report required to be submitted under this section and any documentation made available under subsection 7d7 shall be provided in the ,english language4 ,if any part of such report or documentation requires translation from another language into ,english for purposes of meeting the requirements of this subsection1 the institution shall ensure that the translation is performed by a third party unaffiliated with institution or the foreign source concerned4 7f7 ,relation to other reporting requirements 7#a7 ,state requirements ,if an institution subject to the disclosure requirements of subsection 7a7 is within a ,state which has enacted requirements for public disclosure of gifts from or contracts with a foreign source that are substantially similar to the requirements of this section1 a copy of the disclosure report filed with the ,state may be filed with the ,secretary in lieu of a report required under such subsection4 ,the ,state in which the institution is located shall provide to the ,secretary such assurances as the ,secretary may require to establish that the institution has met the requirements for public disclosure under ,state law if the ,state report is filed4 7#b7 ,use of other ,federal reports ,if an institution receives a gift from1 or enters into a contract with1 a foreign source1 where any other department1 agency1 or bureau of the executive branch requires a report containing requirements substantially similar to those required under this section1 a copy of the report may be filed with the ,secretary in lieu of a report required under subsection 7a74 7g7 ,public ,disclosure and ,modification of ,reports 7#a7 ,in general ,not later than #cj days after receiving a disclosure report under this section1 the ,secretary shall make the full text of the report publicly available on the database established under paragraph 7#b74 7#b7 ,database ,the ,secretary of ,education shall establish a database of the reports submitted to the ,secretary under this section4 ,the database shall be hosted on a publicly accessible website of the ,department of ,education and the reports posted to the database shall be made available in an electronic format that-- 7,a7 includes the full text of each report and any supporting documentation relating to the report2 7,b7 is downloadable1 searchable1 and sortable2 and 7,c7 allows a user of the database to compare institutions based on the types and amounts of foreign support received by such institutions4 7h7 ,modifications ,the ,secretary shall establish a process to enable institutions to revise and update previously filed disclosure reports under this section to ensure accuracy1 compliance1 and ability to cure4 7i7 ,sanctions for ,noncompliance 7#a7 ,in general ,as a sanction for noncompliance with the requirements of this section1 the ,secretary of ,education shall impose a fine on an institution that1 in any year1 knowingly or willfully violates this section1 that is-- 7,a7 in an amount equal to at least #aj percent of the value of the gift or contract but not more than the total amount of the gift or contract with the foreign source in the case of-- 7i7 a failure to disclose a gift or contract with a foreign source as required under this section2 or 7ii7 a failure to comply with subsection 7d7 or 7e7 with respect to such gift or contract2 7,b7 in an amount that is not more than #be percent of the total amount of funding received by the institution under this ,act1 as described in paragraph 7#c71 for the year in which the violation occurred in the case of-- 7i7 a failure to disclose ownership or control by a foreign source in violation of the requirements of subsection 7a77#c72 or 7ii7 a failure to comply with subsection 7d7 or 7e7 with respect to such disclosure2 or 7,c7 in the case of a failure to comply with subsection 7b7-- 7i7 in an amount equal to the value of the gift or contract2 or 7ii7 not less than #ej1jjj if the gift or contract is of undetermined monetary value4 7#b7 ,repeated failures 7,a7 ,knowing and willful failures ,in addition to a fine for a violation in any year in accordance with paragraph 7#a71 the ,secretary of ,education shall impose a fine on an institution that knowingly and willfully fails in two consecutive years to comply with the requirements of this section1 that is-- 7i7 in an amount that is not less than #ajj1jjj but not more than twice the amount of the gift or contract with the foreign source1 in the case of-- 7,i7 a failure to disclose a gift or contract with a foreign source as required under this section2 or 7,,ii7 a failure to comply with subsection 7d7 or 7e7 with respect to such gift or contract2 or 7ii7 in an amount that is not more than #be percent of the total amount of funding received by the institution under this ,act for the year in which the violation occurred in the case of-- 7,i7 a failure to disclose ownership or control by a foreign source in violation of the requirements of subsection 7a77#c72 or 7,,ii7 a failure to comply with subsection 7d7 or 7e7 with respect to such disclosure4 7,b7 ,sanction for repeated violation of gift and contract acceptance rules ,if an institution knowingly and willfully violates a provision of subsection 7b7 more than once in a period of two consecutive years1 as determined by the ,secretary1 the ,secretary shall declare the institution to be ineligible to receive funds and participate in programs under this ,act for a period of up to five years4 7#c7 ,calculation of penalty ,for purposes of paragraphs 7#a77;,b7 and 7#b77;,a77ii71 the total amount of funding received by an institution under this ,act does not include any amounts received by the institution from or on behalf of an individual student that are derived from a grant or student loan made under this ,act4 7j7 ,authority ,to terminate or modify transactions ,as a condition of receiving a gift from or entering into a contract with a foreign source or an associate of a foreign adversary1 an institution and any other party to such gift or contract shall agree that the ,office for ,foreign ,gifts and ,contracts ,oversight shall have the authority-- 7#a7 to review such gift or contract at any time2 and 7#b7 if the ,office determines that such gift or contract poses a risk to the national security interests of the ,united ,states1 the ,office may-- 7,a7 terminate or modify such gift or contract2 or 7,b7 require the institution to pay to the ,secretary an amount equal to the value of such gift or contract4 7k7 ,rule of construction ,nothing in this section shall be construed to require the disclosure or approval by the ,department of ,education of a tuition agreement or other agreement entered into between an institution and an individual student in the regular course of the student's enrollment at the institution4 7l7 ,definitions ,in this section3 7#a7 ,the term associate of a foreign adversary means-- 7,a7 a natural person 7regardless of the person's citizenship1 nationality1 or principal place of residence7 who derives a substantial amount of income from business activities with a foreign adversary2 and 7,b7 a legal entity 7regardless of entity's country of incorporation or principal place of business7 that derives a substantial amount of revenue or income from business activities with a foreign adversary4 7#b7 ,the term contract means any legally binding agreement1 including any agreement for the acquisition by purchase1 lease1 or barter of property or services by the foreign source1 for the direct benefit or use of either of the parties4 7#c7 ,the term critical technologies has the meaning given that term section #hja4bjd of title #ca1 ,code of ,federal ,regulations 7or any successor to such regulation74 7#d7 ,the term foreign adversary means-- 7,a7 ,cuba2 7,b7 the ,democratic ,people's ,republic of ,north ,korea2 7,c7 the ,islamic ,republic of ,iran2 7,d7 the ,people's ,republic of ,china 7including the ,hong ,kong ,special ,administrative ,region and the ,macau ,special ,administrative ,region72 7,e7 the ,russian ,federation2 and 7,f7 any other nation designated as a foreign adversary by the ,department of ,commerce for purposes of the implementation of ,executive ,order #achgc 7#hd ,fed4 ,reg4 #bbfhi71 titled ,securing the ,information and ,communications ,technology and ,services ,supply ,chain1 and dated ,may #ae1 #bjai4 7#e7 ,the term foreign source means-- 7,a7 a foreign government1 including an agency of a foreign government2 7,b7 a legal entity1 governmental or otherwise1 created solely under the laws of a foreign state or states2 7,c7 an individual who is not a citizen or a national of the ,united ,states or a trust territory or protectorate thereof2 7,d7 an agent1 including a subsidiary or affiliate of a foreign legal entity1 acting on behalf of a foreign source2 or 7,e7 any individual or legal entity that1 in the period of one year preceding the date on which the individual or entity made a gift to or entered into a contract with an institution-- 7i7 received a total of #ajj1jjj or more in funds or subsidies from a foreign government2 or 7ii7 generated at least #dj percent of the individual or entity's income or revenue in a foreign country and the principal place of residence or business of such individual or entity is in that foreign country2 7#f7 the term gift means any gift of money1 property1 or services2 7#g7 the term institution means-- 7,a7 any institution1 public or private1 or1 if a multicampus institution1 any single campus of such institution1 in any ,state1 that-- 7i7 is legally authorized within such ,state to provide a program of education beyond secondary school2 7ii7 provides a program for which the institution awards a bachelor's degree 7or provides not less than a #b-year program which is acceptable for full credit toward such a degree7 or more advanced degrees2 and 7iii7 is accredited by a nationally recognized accrediting agency or association and to which institution ,federal financial assistance is extended 7directly or indirectly through another entity or person71 or which institution receives support from the extension of ,federal financial assistance to any of the institution's subunits2 and 7,b7 any organization associated with or otherwise connected to an institution described in subparagraph 7,a71 including a university foundation 7as described in section #eji7;a77#c7 of the ,internal ,revenue ,code of #aihf7 or a nonprofit organization 7as described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf72 7#h7 the term restricted or conditional gift or contract means any endowment1 gift1 grant1 contract1 award1 present1 or property of any kind which includes provisions regarding-- 7,a7 the employment1 assignment1 or termination of faculty2 7,b7 the establishment of departments1 centers1 research or lecture programs1 or new faculty positions2 7,c7 the selection or admission of students2 or 7,d7 the award of grants1 loans1 scholarships1 fellowships1 or other forms of financial aid restricted to students of a specified country1 religion1 sex1 ethnic origin1 or political opinion4 4 7b7 ,effective date and applicability ,the amendments made by subsection 7a7 shall take effect #ij days after the date of enactment of this ,act and shall apply with respect to gifts1 contracts1 and changes in the ownership or control of an institution occurring on or after such effective date4 7c7 ,regulations ,not later than the effective date specified in subsection 7b71 the ,president shall promulgate regulations implementing section #aag of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f71 as amended by subsection 7a74 #b4 ,office for ,foreign ,gifts and ,contracts ,oversight 7a7 ,establishment ,part ,b of title ,i of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa et seq47 is amended by inserting after section #aag the following3 #aag;a4 ,office for ,foreign ,gifts and ,contracts ,oversight 7a7 ,establishment ,there is established within the ,office of the ,secretary of ,education an ,office for ,foreign ,gifts and ,contracts ,oversight 7referred to in this section as the ,office74 7b7 ,head of ,office ,the head of the ,office shall be the designee of the ,secretary4 7c7 ,responsibilities ,the responsibilities of the ,office shall be-- 7#a7 to monitor the compliance of institutions with section #aag2 7#b7 to enforce the requirements of such section with respect to such institutions2 7#c7 to represent the ,department of ,education on the ,committee on ,foreign ,investment in the ,united ,states2 and 7#d7 to carry out such other duties and responsibilities relating to foreign influence over institutions as the ,secretary determines appropriate4 7d7 ,staff ,the ,secretary shall ensure that the ,office is staffed by individuals with sufficient expertise to carry out the responsibilities specified in subsection 7c74 4 7b7 ,effective date and applicability ,the amendments made by subsection 7a7 shall take effect #ij days after the date of enactment of this ,act4 7c7 ,regulations ,not later than the effective date specified in subsection 7b71 the ,president shall promulgate regulations implementing section #aag;a of the ,higher ,education ,act of #aife1 as added by subsection 7a74 #c4 ,inclusion of ,office for ,foreign ,gifts and ,contracts ,oversight in the ,committee on ,foreign ,investment in the ,united ,states 7a7 ,membership of the ,committee on ,foreign ,investment in the ,united ,states ,section #gba7k77#b7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7k77#b77 is amended-- 7#a7 by redesignating subparagraph 7,j7 as subparagraph 7,k72 and 7#b7 by inserting after subparagraph 7,i7 the following new subparagraph3 7,j7 ,the head of the ,office for ,foreign ,gifts and ,contracts ,oversight of the ,department of ,education 7as described in section #aag;a of the ,higher ,education ,act of #aife74 4 7b7 ,covered transactions and lead agency 7#a7 ,covered transactions ,section #gba7;a77#d7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;a77#d77 is amended-- 7,a7 in subparagraph 7,a77i71 by striking subparagraph 7,b77i7 and inserting clauses 7i7 or 7vi7 of subparagraph 7,b72 and 7,b7 in subparagraph 7,b71 by inserting after clause 7v7 the following new clause3 7vi7 ,any gift or contract described in section #aag7;a77#a77;,a7 of the ,higher ,education ,act of #aife4 4 7#b7 ,lead agency ,section #gba7k77#e7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7k77#e77 is amended-- 7,a7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 7,b7 by striking ,the ,secretary and inserting the following3 7,a7 ,in general ,the ,secretary 2 and 7,c7 by adding at the end the following new subparagraph3 7,b7 ,certain gifts and contracts ,with respect to a covered transaction described in subsection 7a77#d77;,b77v71 the ,secretary of the ,treasury shall designate the head of the ,office for ,foreign ,gifts and ,contracts ,oversight of the ,department of ,education 7as described in section #aag;a of the ,higher ,education ,act of #aife7 as the lead agency on behalf of the ,committee4 4 7#c7 ,applicability ,this subsection and the amendments made by this subsection shall apply with respect to any covered transaction described in clause 7v7 of section #gba7;a77#d77;,b7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;a77#d77;,b771 the review or investigation of which is initiated under section #gba of such ,act on or after the date of the enactment of this section4