,,ii #aagth ,,congress #ast ,session ,s4 #bjfj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ae1 #bjba,mr4 ,cotton introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend disclosure requirements of foreign gifts and contracts under the ,higher ,education ,act of #aife4 #a4 ,short title ,this ,act may be cited as the ,foreign ,funding ,accountability ,act of #bjba4 #b4 ,amendments to disclosures of foreign gifts and contracts ,section #aag of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f7 is amended-- 7#a7 by striking subsections 7a7 and 7b7 and inserting the following3 7a7 ,disclosure report 7#a7 ,filing ,an institution shall file a disclosure report with the ,department of ,education on ,january #ca or ,july #ca1 whichever is sooner1 if the institution-- 7,a7 is owned or controlled by a foreign source2 or 7,b7 receives a gift or enters into a contract with a foreign source1 the value of which is #be1jjj or more 7including in-kind gifts1 gifts to institution foundations1 and gifts to any other legal entities that operate substantially for the benefit or under the auspieces of the institution71 considered alone or in combination with all other gifts from or contracts with that foreign source within a calendar year4 7#b7 ,tuition ,a tuition payment to an institution on behalf of an enrolled student by a foreign government or foundation shall be considered a gift from or contract with a foreign source under this subsection4 7#c7 ,designated individual ,each institution that is required to file a disclosure report under this section shall designate an officer at the institution who shall be responsible for ensuring the veracity of the disclosure report4 7b7 ,contents of disclosure report 7#a7 ,owned or controlled by a foreign source ,an institution that is required to file a disclosure report under subsection 7a77#a77;,a7 shall include in the report3 7,a7 ,the identity of the foreign source4 7,b7 ,the date on which the foreign source assumed ownership or control4 7,c7 ,any changes in program or structure resulting from the change in ownership or control4 7#b7 ,gifts or contracts ,an institution that is required to file a disclosure report under subsection 7a77#a77;,b7 shall include in the report3 7,a7 ,the amount of the gift or contract4 7,b7 ,the country of origin of the gift or contract4 7,c7 ,a statement from the foreign source providing the gift or entering into the contract1 including1 in the case of a foreign source that is-- 7i7 an individual1 the individual's-- 7,i7 name2 7,,ii7 nationality 7,,iii7 principal business address2 and 7,,iv7 all business and residential addresses in the ,united ,states or elsewhere2 7ii7 a partnership-- 7,i7 the information described in subclause 7,i7 through 7,,iv7 of clause 7i7 with respect to each member of the partnership2 and 7,,ii7 a true and complete copy of its articles of copartnership2 or 7iii7 an association1 corporation1 organization1 or any other combination of individuals-- 7,i7 the information described in subclauses 7,i7 through 7,,iv7 of clause 7i7 with respect to each director1 officer1 and each individual performing the functions of a director or officer for that entity2 and 7,,ii7 a statement of the entity's ownership and control1 and the publicly listed name of the entity4 7,d7 ,the explicit and intended purpose and function of the gift or contract1 including-- 7i7 the name 7and position if applicable7 of the recipient individual1 department1 or benefactor at the institution receiving the gift or contract2 7ii7 any terms or conditions of the gift or contract2 7iii7 copies of each written agreement and the terms and conditions of each oral agreement1 including all modifications of such agreements1 relating to the gift or contract2 or 7iv7 where no written or oral agreement exists1 a full statement of all the circumstances relating to the gift or contract4 7#c7 ,attestation ,each disclosure report under this section shall include a written statement from the individual designated under subsection 7a77#c7 attesting that the disclosure report is true and complete4 2 7#b7 by striking subsections 7c7 and 7d72 7#c7 by redesignating subsections 7e7 through 7h7 as subsections 7c7 through 7f71 respectively2 7#d7 in subsection 7c71 as redesignated by paragraph 7#c71 by adding at the end the following3 ,all disclosure reports required by this section1 including copies of agreements required under subsection 7b77#b77;,d77iii71 shall be publicly available1 including by electronic means42 7#e7 by striking subsection 7d71 as redesignated by paragraph 7#c71 and inserting the following3 7d7 ,enforcement 7#a7 ,civil penalties ,upon determination1 after reasonable notice and opportunity for a hearing1 that an institution-- 7,a7 has violated or failed to carry out any provision of this section or any regulation prescribed under this section 7including by submitting a disclosure report with a material misstatement or omission71 the ,secretary may impose a civil penalty upon such institution of not to exceed1 the greater of-- 7i7 #bej1jjj for an initial violation or failure2 or 7ii7 the value of the unreported gift or contract for an initial violation or failure2 7,b7 commits a second violation or failure as described in subparagraph 7,a71 the ,secretary may impose a civil penalty upon such institution of not to exceed1 the greater of-- 7i7 #gej1jjj2 or 7ii7 the value of the unreported gift or contract2 7,c7 commits #c or more violations or failures as described in subparagraph 7,a7-- 7i7 the ,secretary may impose a civil penalty upon such institution of not to exceed1 the greater of-- 7,i7 #a1jjj1jjj2 or 7,,ii7 the value of the unreported gift or contract2 and 7ii7 the institution may be subject to penalties relating to the ,student and ,exchange ,visitor ,program and the institution's tax exempt status1 as described in sections #d and #e of the ,foreign ,funding ,accountability ,act of #bjba2 or 7,d7 commits #c or more violations or failures as described in subparagraph 7,a7 and has demonstrated a pattern of willful violations1 the ,secretary may determine that the institution is no longer eligible to receive funds under this ,act4 7#b7 ,court orders ,whenever it appears that an institution has failed to comply with the requirements of this section1 including any rule or regulation promulgated under this section1 a civil action may be brought by the ,attorney ,general1 at the request of the ,secretary1 in an appropriate district court of the ,united ,states1 or the appropriate ,united ,states court of any territory or other place subject to the jurisdiction of the ,united ,states1 to request such court to compel compliance with the requirements of this section 7including for the collection of civil penalties under this subsection74 ,in case of contumacy by1 or refusal to obey a subpoena issued to1 any person1 the ,secretary may request the ,attorney ,general to invoke the aid of any court of the ,united ,states where such person resides or transacts business for a court order for the enforcement of this section4 7#c7 ,costs ,for knowing or willful failure to comply with the requirements of this section1 including any rule or regulation promulgated thereunder1 an institution shall pay to the ,treasury of the ,united ,states the full costs to the ,united ,states of obtaining compliance1 including all associated costs of investigation and enforcement4 7#d7 ,investigation2 ,subpoena authority ,the ,secretary shall establish an investigative process to identify gifts or contracts with respect to which a disclosure report under this section is required and has not been submitted4 ,to assist the ,secretary in the conduct of investigations of possible violations of this section1 the ,secretary is authorized to require by subpoena the production of information1 documents1 reports1 answers1 records1 accounts1 papers1 and other documentary evidence pertaining to this section4 ,the production of any such records may be required from any place in a ,state4 2 7#f7 in subsection 7f77#b71 as redesignated by paragraph 7#c7-- 7,a7 in subparagraph 7,c71 by striking and after the semicolon2 7,b7 in subparagraph 7,d71 by adding and after the semicolon2 and 7,c7 by adding at the end the following3 7,e7 any person registered under the ,foreign ,agents ,registration ,act of #aich 7#bb ,u4,s4,c4 #faa et seq47 4 #c4 ,report on past years required 7a7 ,in ,general ,not later than #a year after the date of enactment of this ,act1 each institution shall prepare and submit to the ,secretary of ,education a disclosure report containing the information described in subsection 7b7 of section #aag of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f7b77 7as amended by section #b of this ,act7 as required under subsection 7a7 of such section #aag 7as amended by section #b of this ,act7 for every qualifying event that has occurred on or after the date of enactment of the ,higher ,education ,amendments of #aiih 7,public ,law #aje-bdd7 and before the date of enactment of this ,act4 7b7 ,institutions unable ,to comply ,in the case of an institution that is unable to comply with the requirements of subsection 7a7 with respect to a qualifying event1 that institution shall submit a statement to the ,secretary of ,education1 for each such qualifying event1 describing in detail in detail why the institution cannot comply with respect to that qualifying event4 7c7 ,waiver ,an institution may request1 and the ,secretary of ,education may grant1 a waiver with respect to the report required under this section if the institution demonstrates good cause for requiring such a waiver4 7d7 ,enforcement 7#a7 ,in ,general ,upon determination1 after reasonable notice and opportunity for a hearing1 that an institution has violated or failed to carry out any provision of this section or any regulation prescribed under this section 7including by submitting a disclosure report with a material misstatement or omission71 the ,secretary of ,education may impose a civil penalty upon such institution not to exceed #be1jjj for each qualifying event that the institution has failed to report in accordance with this section4 7#b7 ,court orders ,whenever it appears that an institution has failed to comply with the requirements of this section1 including any rule or regulation promulgated under this section1 a civil action may be brought by the ,attorney ,general1 at the request of the ,secretary of ,education1 in an appropriate district court of the ,united ,states1 or the appropriate ,united ,states court of any territory or other place subject to the jurisdiction of the ,united ,states1 to request such court to compel compliance with the requirements of this section 7including for the collection of civil penalties under this subsection74 7#c7 ,costs ,for knowing or willful failure to comply with the requirements of this section1 including any rule or regulation promulgated thereunder1 an institution shall pay to the ,treasury of the ,united ,states the full costs to the ,united ,states of obtaining compliance1 including all associated costs of investigation and enforcement4 7#d7 ,investigation2 ,subpoena authority ,the ,secretary of ,education shall establish an investigative process to identify gifts or contracts with respect to which a disclosure under this section is required and has not been submitted4 ,the ,secretary of ,education may use administrative subpoena authority as authorized under law to conduct such investigations4 7e7 ,definitions ,in this section3 7#a7 ,institution ,the term institution has the meaning given that term in section #aag of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f74 7#b7 ,qualifying event ,in this section the term qualifying event means an institution-- 7,a7 being owned or controlled by a foreign source2 or 7,b7 receiving a gift or entering into a contract with a foreign source1 the value of which is #be1jjj or more 7including in-kind gifts1 or gifts to university or college foundations71 considered alone or in combination with all other gifts from or contracts with that foreign source within a calendar year4 #d4 ,disqualification from the ,student and ,exchange ,visitor ,program ,any institution of higher education that is found to have violated the disclosure requirements set forth in section #aag of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f7 on #c or more occasions shall be ineligible to enroll foreign students under the ,student and ,exchange ,visitor ,program4 #e4 ,loss of tax-exempt status ,section #eja of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7s7 ,loss of exempt status for certain institutions of higher education ,an organization which is described in section #eja7;c77#c7 and which is an institution 7as defined in section #aag of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f77 shall not be exempt from taxation under section #eja7;a7 if there has been a determination under section #aag7;d7 of the ,higher ,education ,act of #aife that such institution has committed1 after the date of the enactment of this section1 #c or more violations or failures described in section #aag7;d7 of the ,higher ,education ,act of #aife4 4