,,ii #aahth ,,congress #ast ,session ,h4 ,r4 #eicc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #g1 #bjbc,received ,,an ,,act ,to amend the ,higher ,education ,act of #aife to require additional information in disclosures of foreign gifts and contracts from foreign sources1 restrict contracts with certain foreign entities and foreign countries of concern1 require certain staff and faculty to report foreign gifts and contracts1 and require disclosure of certain foreign investments within endowments4 #a4 ,short title ,this ,act may be cited as the ,defending ,education ,transparency and ,ending ,rogue ,regimes ,engaging in ,nefarious ,transactions ,act or the ,,deterrent ,act4 #b4 ,disclosures of foreign gifts 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 7a7 ,disclosure reports 7#a7 ,aggregate gifts and contract disclosures ,an institution shall file a disclosure report in accordance with subsection 7b77#a7 with the ,secretary on ,july #ca of the calendar year immediately following any calendar year in which-- 7,a7 the institution receives a gift from1 or enters into a contract with1 a foreign source 7other than a foreign country of concern or foreign entity of concern7-- 7i7 the value of which is #ej1jjj or more1 considered alone or in combination with all other gifts from1 or contracts with1 that foreign source within the calendar year2 or 7ii7 the value of which is undetermined2 or 7,b7 the institution receives a gift from a foreign country of concern or foreign entity of concern1 or1 upon receiving a waiver under section #aag;,a to enter into a contract with such a country or entity1 enters into such contract1 without regard to the value of such gift or contract4 7#b7 ,foreign source ownership or control disclosures ,in the case of an institution that is substantially controlled 7as described in section #ffh4agd7;c77#c7 of title #cd1 ,code of ,federal ,regulations7 7or successor regulations77 by a foreign source1 the institution shall file a disclosure report in accordance with subsection 7b77#b7 with the ,secretary on ,july #ca of each year4 7#c7 ,treatment of affiliated entities ,for purposes of this section1 any gift to1 or contract with1 an affiliated entity of an institution shall be considered a gift to or contract with1 respectively1 such institution4 7b7 ,contents of report 7#a7 ,gifts and contracts ,each report to the ,secretary required under subsection 7a77#a7 shall contain the following3 7,a7 ,with respect to a gift received from1 or a contract entered into with1 any foreign source-- 7i7 the terms of such gift or contract1 including-- 7,i7 the name of the individual1 department1 or benefactor at the institution receiving the gift or carrying out the contract2 7,,ii7 the intended purpose of such gift or contract1 as provided to the institution by such foreign source1 or if no such purpose is provided by such foreign source1 the intended use of such gift or contract1 as provided by the institution2 and 7,,iii7 in the case of a restricted or conditional gift or contract1 a description of the restrictions or conditions of such gift or contract2 7ii7 with respect to a gift-- 7,i7 the total fair market dollar amount or dollar value of the gift1 as of the date of submission of such report2 and 7,,ii7 the date on which the institution received such gift2 7iii7 with respect to a contract-- 7,i7 the date on which such contract commences2 7,,ii7 as applicable1 the date on which such contract terminates2 and 7,,iii7 an assurance that the institution will-- 7aa7 maintain an unredacted copy of the contract until the latest of-- 7,,aa7 the date that is #e years after the date on which the contract commences2 7,,bb7 the date on which the contract terminates2 or 7,,cc7 the last day of any period that applicable ,state law requires a copy of such contract to be maintained2 and 7bb7 upon request of the ,secretary during an investigation under subsection section #aag;,d7a77#a71 produce such an unredacted copy of the contract2 and 7iv7 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 ,english1 such information is translated into ,english in compliance with the requirements of subsection 7c77#a74 7,b7 ,with respect to a gift received from1 or a contract entered into with1 a foreign source that is a foreign government 7other than the government of a foreign country of concern7-- 7i7 the name of such foreign government2 7ii7 the department1 agency1 office1 or division of such foreign government that approved such gift or contract1 as applicable2 and 7iii7 the physical mailing address of such department1 agency1 office1 or division4 7,c7 ,with respect to a gift received from1 or contract entered into with1 a foreign source 7other than a foreign government subject to the requirements of subparagraph 7,b77-- 7i7 the legal name of the foreign source1 or1 if such name is not available1 a statement certified by the compliance officer in accordance with subsection 7f77#b7 that the institution has reasonably attempted to obtain such name2 7ii7 in the case of a foreign source that is a natural person1 the country of citizenship of such person1 or1 if such country is not known1 the principal country of residence of such person2 7iii7 in the case of a foreign source that is a legal entity1 the country in which such entity is incorporated1 or if such information is not available1 the principal place of business of such entity2 7iv7 the physical mailing address of such foreign source1 or if such address is not available1 a statement certified by the compliance officer in accordance with subsection 7f77#b7 that the institution has reasonably attempted to obtain such address2 and 7v7 any affiliation of the foreign source to an organization that is designated as a foreign terrorist organization pursuant to section #bai of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi74 7,d7 ,with respect to a contract entered into with a foreign source that is a foreign country of concern or a foreign entity of concern-- 7i7 a complete and unredacted text of the original contract1 and if such original contract is not in ,english1 a translated copy of the text into ,english2 7ii7 a copy of the waiver received under section #aag;,a for such contract2 and 7iii7 the statement submitted by the institution for purposes of receiving such a waiver under section #aag;,a7b77#a74 7#b7 ,foreign source ownership or control ,each report to the ,secretary required under subsection 7a77#b7 shall contain-- 7,a7 the legal name and address of the foreign source that owns or controls the institution2 7,b7 the date on which the foreign source assumed ownership or control2 and 7,c7 any changes in program or structure resulting from the change in ownership or control4 7c7 ,translation requirements ,any information required to be disclosed under this section with respect to a gift or contract that is not in ,english shall be translated1 for purposes of such disclosure1 by a person that is not an affiliated entity or agent of the foreign source involved with such gift or contract4 7d7 ,public inspection 7#a7 ,database requirement ,beginning not later than #fj days before the ,july #ca immediately following the date of the enactment of the ,,deterrent ,act1 the ,secretary shall-- 7,a7 establish and maintain a searchable database on a website of the ,department1 under which all reports submitted under this section 7including any report submitted under this section before the date of the enactment of the ,,deterrent ,act7-- 7i7 are made publicly available 7in electronic and downloadable format71 including any information provided in such reports 7other than the information prohibited from being publicly disclosed pursuant to paragraph 7#b772 7ii7 can be individually identified and compared2 and 7iii7 are searchable and sortable by-- 7,i7 the date the institution filed such report2 7,,ii7 the date on which the institution received the gift1 or entered into the contract1 which is the subject of the report2 7,,iii7 the attributable country of such gift or contract2 and 7,,iv7 the name of the foreign source 7other than a foreign source that is a natural person72 7,b7 not later than #cj days after receipt of a disclosure report under this section1 include such report in such database2 7,c7 indicate1 as part of the public record of a report included in such database1 whether the report is with respect to a gift received from1 or a contract entered into with-- 7i7 a foreign source that is a foreign government2 or 7ii7 a foreign source that is not a foreign government2 and 7,d7 with respect to a disclosure report that does not include the name or address of a foreign source1 indicate1 as part of the public record of such report included in such database1 that such report did not include such information4 7#b7 ,name and address of foreign source ,the ,secretary shall not disclose the name or address of a foreign source that is a natural person 7other than the attributable country of such foreign source7 included in a disclosure report-- 7,a7 as part of the public record of such disclosure report described in paragraph 7#a72 or 7,b7 in response to a request under section #eeb of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act71 pursuant to subsection 7b77#c7 of such section4 7e7 ,interagency information sharing ,not later than #cj days after receiving a disclosure report from an institution in compliance with this section1 the ,secretary shall transmit an unredacted copy of such report 7that includes the name and address of a foreign source disclosed in such report7 to the ,director of the ,federal ,bureau of ,investigation1 the ,director of ,national ,intelligence1 the ,director of the ,central ,intelligence ,agency1 the ,secretary of ,state1 the ,secretary of ,defense1 the ,attorney ,general1 the ,secretary of ,commerce1 the ,secretary of ,homeland ,security1 the ,secretary of ,energy1 the ,director of the ,national ,science ,foundation1 and the ,director of the ,national ,institutes of ,health4 7f7 ,compliance officer ,any institution that is required to file a disclosure report under subsection 7a7 shall designate1 before the filing deadline for such report1 and maintain a compliance officer1 who shall-- 7#a7 be a current employee or legally authorized agent of such institution2 and 7#b7 be responsible1 on behalf of the institution1 for personally certifying accurate compliance with the foreign gift reporting requirement under this section4 7g7 ,definitions ,in this section3 7#a7 ,affiliated entity ,the term affiliated entity1 when used with respect to an institution1 means an entity or organization that operates primarily for the benefit of1 or under the auspices of1 such institution1 including a foundation of the institution or a related entity 7such as any educational1 cultural1 or language entity74 7#b7 ,attributable country ,the term attributable country means-- 7,a7 the country of citizenship of a foreign source who is a natural person1 or1 if such country is unknown1 the principal residence 7as applicable7 of such foreign source2 or 7,b7 the country of incorporation of a foreign source that is a legal entity1 or1 if such country is unknown1 the principal place of business 7as applicable7 of such foreign source4 7#c7 ,contract ,the term contract-- 7,a7 means-- 7i7 any agreement for the acquisition by purchase1 lease1 or barter of property or services by the foreign source2 7ii7 any affiliation1 agreement1 or similar transaction with a foreign source that involves the use or exchange of an institution's name1 likeness1 time1 services1 or resources2 and 7iii7 any agreement for the acquisition by purchase1 lease1 or barter1 of property or services from a foreign source 7other 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 concern72 and 7,b7 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 7as such term is defined in section #dgb71 unless such an agreement is made for more than #ae students or is made under a restricted or conditional contract4 7#d7 ,foreign source ,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 under the laws of a foreign state or states2 7,c7 a legal entity1 governmental or otherwise1 substantially controlled 7as described in section #ffh4agd7;c77#c7 of title #cd1 ,code of ,federal ,regulations7 7or successor regulations77 by a foreign source2 7,d7 a natural person who is not a citizen or a national of the ,united ,states or a trust territory or protectorate thereof2 7,e7 an agent of a foreign source1 including-- 7i7 a subsidiary or affiliate of a foreign legal entity1 acting on behalf of a foreign source2 7ii7 a person that operates primarily for the benefit of1 or under the auspices of1 a foreign source1 including a foundation or a related entity 7such as any educational1 cultural1 or language entity72 and 7iii7 a person who is an agent of a foreign principal 7as such term is defined in section #a of the ,foreign ,agents ,registration ,act of #aich 7#bb ,u4,s4,c4 #faa72 and 7,f7 an international organization 7as such term is defined in the ,international ,organizations ,immunities ,act 7#bb ,u4,s4,c4 #bhh774 7#e7 ,gift ,the term gift-- 7,a7 means any gift of money1 property1 resources1 staff1 or services2 and 7,b7 does not include-- 7i7 any payment of one or more elements of a student's cost of attendance 7as such term is defined in section #dgb7 to an institution by1 or scholarship from1 a foreign source who is a natural person1 acting in their individual capacity and not as an agent for1 at the request or direction of1 or on behalf of1 any person or entity 7except the student71 made for not more than #ae students1 and that is not made under a restricted or conditional contract with such foreign source2 or 7ii7 assignment or license of registered industrial and intellectual property rights1 such as patents1 utility models1 trademarks1 or copyrights1 or technical assistance1 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 ,no4 #a to part #ggd of title #ae1 ,code of ,federal ,regulations2 or 7iii7 decorations 7as such term is defined in section #gcdb7;a7 of title #e1 ,united ,states ,code74 7#f7 ,restricted or conditional gift or contract ,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 institutes1 instructional programs1 research or lecture programs1 or new faculty positions2 7,c7 the selection1 admission1 or education of students2 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 opinion2 or 7,e7 any other restriction on the use of a gift or contract4 4 7b7 ,prohibition on contracts with certain foreign entities and countries ,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 ,prohibition on contracts with certain foreign entities and countries 7a7 ,in general ,an institution shall not enter into a contract with a foreign country of concern or a foreign entity of concern4 7b7 ,waivers 7#a7 ,submission 7,a7 ,first waiver requests 7i7 ,in general ,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 ,secretary1 not later than #abj days before the institution enters into such a contract1 a request to waive the prohibition under subsection 7a7 with respect to such contract4 7ii7 ,contents of waiver request ,a waiver request submitted by an institution under clause 7i7 shall include-- 7,i7 the complete and unredacted text of the proposed contract for which the waiver is being requested1 and if such original contract is not in ,english1 a translated copy of the text into ,english 7in a manner that complies with section #aag7;c772 and 7,,ii7 a statement that-- 7aa7 is signed by the compliance officer of the institution designated in accordance with section #aag7;f72 and 7bb7 includes information that demonstrates that such contract is for the benefit of the institution's mission and students and will promote the security1 stability1 and economic vitality of the ,united ,states4 7,b7 ,renewal waiver requests 7i7 ,in general ,an institution that has entered into a contract pursuant to a waiver issued under this section1 the term of which is longer than the #a-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 submit1 not later than #abj days before the expiration of such waiver period1 a request for a renewal of such waiver for an additional #a-year period 7which shall include any information requested by the ,secretary74 7ii7 ,termination ,if the institution fails to submit a request under clause 7i7 or is not granted a renewal under such clause1 such institution shall terminate such contract on the last day of the original #a-year waiver period4 7#b7 ,waiver issuance ,the ,secretary-- 7,a7 not later than #fj days before an institution enters into a contract pursuant to a waiver request under paragraph 7#a77;,a71 or before a contract described in paragraph 7#a77;,b77i7 is renewed pursuant to a renewal request under such paragraph1 shall notify the institution-- 7i7 if the waiver or renewal will be issued by the ,secretary2 and 7ii7 in a case in which the waiver or renewal will be issued1 the date on which the #a-year waiver period starts2 and 7,b7 may only issue a waiver under this section to an institution if the ,secretary determines1 in consultation with the heads of each agency and department listed in section #aag7;e71 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 security1 stability1 and economic vitality of the ,united ,states4 7#c7 ,disclosure ,not less than #b weeks prior to issuing a waiver under paragraph 7#b71 the ,secretary shall notify the-- 7,a7 the ,committee on ,education and the ,workforce of the ,house of ,representatives2 and 7,b7 the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate1 of the intent to issue the waiver1 including a justification for the waiver4 7#d7 ,application of waivers ,a waiver issued under this section to an institution with respect to a contract shall only-- 7,a7 waive the prohibition under subsection 7a7 for a #a-year period2 and 7,b7 apply to the terms and conditions of the proposed contract submitted as part of the request for such waiver4 7c7 ,designation during contract term ,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 which1 during the term of such contract1 is designated as a foreign country of concern or foreign entity of concern1 such institution shall terminate such contract not later than #fj days after the ,secretary notifies the institution of such designation4 7d7 ,contracts prior to date of enactment 7#a7 ,in general ,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 the enactment of the ,,deterrent ,act-- 7,a7 the institution shall immediately submit to the ,secretary a waiver request in accordance with subsection 7b77#a77;,a77ii72 and 7,b7 the ,secretary shall1 upon receipt of the request submitted under paragraph 7#a71 immediately 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-- 7i7 the date that is #a year after the date of the enactment of the ,,deterrent ,act2 or 7ii7 the date on which the contract terminates4 7#b7 ,renewal ,an institution that has entered into a contract described in paragraph 7#a71 the term of which is longer than the waiver period described in subparagraph 7,b7 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 7,a7 of such paragraph1 may submit a request for renewal of the waiver issued under such paragraph in accordance with subsection 7b77#a77;,b74 7e7 ,contract defined ,the term contract has the meaning given such term in section #aag7;g74 4 7c7 ,interagency information sharing ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of ,education shall transmit to the heads of each agency and department listed in section #aag7;e7 of the ,higher ,education ,act of #aife1 as amended by this ,act-- 7#a7 any report received by the ,department of ,education under section #aag of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f7 prior to the date of the enactment of this ,act2 and 7#b7 any report1 document1 or other record generated by the ,department of ,education in the course of an investigation-- 7,a7 of an institution with respect to the compliance of such institution with such section2 and 7,b7 initiated prior to the date of the enactment of this ,act4 #c4 ,policy regarding conflicts of interest from foreign gifts and contracts ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq471 as amended by section #b of this ,act1 is further amended by inserting after section #aag;,a the following3 #aag;,b4 ,institutional policy regarding foreign gifts and contracts to faculty and staff 7a7 ,requirement to maintain policy and database ,beginning not later than #ij days after the date of the enactment of the ,,deterrent ,act1 each institution described in subsection 7b7 shall maintain-- 7#a7 a policy requiring covered individuals employed at the institution to disclose in a report to such institution on ,july #ca of each calendar year that begins after the year in which such enactment date occurs-- 7,a7 any gift received from a foreign source in the previous calendar year1 the value of which is greater than the minimal value 7as such term is defined in section #gcdb7;a7 of title #e1 ,united ,states ,code7 or is of undetermined value1 and including the date on which the gift was received2 7,b7 any contract entered into with a foreign source in the previous calendar year1 the value of which is #e1jjj or more1 considered alone or in combination with all other contracts with that foreign source within the calendar year1 and including the date on which such contract commences and1 as applicable1 the date on which such contract terminates2 7,c7 any contract with a foreign source in force during the previous calendar year that has an undetermined monetary value1 and including the date on which such contract commences and1 as applicable1 the date on which such contract terminates2 and 7,d7 any contract entered into with a foreign country of concern or foreign entity of concern in the previous calendar year1 the value of which is #j or more1 and including the beginning and ending dates of such contract and the full text of such contract and any addenda2 7#b7 a publicly available and searchable database 7in electronic and downloadable format71 on a website of the institution1 of the information required to be disclosed under paragraph 7#a7 7other than the name or any other personally identifiable information of a covered individual7 that-- 7,a7 makes available the information disclosed under paragraph 7#a7 7other than the name or any other personally identifiable information of a covered individual7 beginning on the date that is #cj days after receipt of the report under such paragraph containing such information and until the latest of-- 7i7 the date that is #e years after the date on which-- 7,i7 a gift referred to in paragraph 7#a77;,a7 is received2 or 7,,ii7 a contract referred to in subparagraph 7,b71 7,c7 or 7,d7 of paragraph 7#a7 begins2 or 7ii7 the date on which a contract referred to in subparagraph 7,b71 7,c7 or 7,d7 of paragraph 7#a7 terminates2 and 7,b7 is searchable and sortable by-- 7i7 the date received 7if a gift7 or the date commenced 7if a contract72 7ii7 the attributable country with respect to which information is being disclosed2 7iii7 the narrowest of the department1 school1 or college of the institution1 as applicable1 for which the individual making the disclosure works2 and 7iv7 the name of the foreign source 7other than a foreign source who is a natural person72 and 7#c7 an effective plan to identify and manage potential information gathering by foreign sources through espionage targeting covered individuals that may arise from gifts received from1 or contracts entered into with1 a foreign source1 including through the use of-- 7,a7 periodic communications2 7,b7 accurate reporting under paragraph 7#b7 of the information required to be disclosed under paragraph 7#a72 and 7,c7 enforcement of the policy described in paragraph 7#a72 and 7#d7 for purposes of investigations under section #aag;,d7a77#a7 or responses to requests under section #eeb of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act71 the names of the individuals making disclosures under paragraph 7#a74 7b7 ,institutions ,an institution shall be subject to the requirements of this section if such institution-- 7#a7 is an eligible institution for the purposes of any program authorized under title ,,iv2 and 7#b7 7,a7 received more than #ej1jjj1jjj in ,federal funds in any of the previous five calendar years to support 7in whole or in part7 research and development 7as determined by the institution and measured by the ,higher ,education ,research and ,development ,survey of the ,national ,center for ,science and ,engineering ,statistics72 or 7,b7 receives funds under title ,,vi4 7c7 ,definitions ,in this section-- 7#a7 the terms foreign source and gift have the meanings given such terms in section #aag7;g72 7#b7 the term contract-- 7,a7 means any-- 7i7 agreement for the acquisition1 by purchase1 lease1 or barter1 of property or services by a foreign source2 7ii7 affiliation1 agreement1 or similar transaction with a foreign source involving the use or exchange of the name1 likeness1 time1 services1 or resources of covered individuals employed at an institution described in subsection 7b72 or 7iii7 purchase1 lease1 or barter of property or services from a foreign source that is a foreign country of concern or a foreign entity of concern2 and 7,b7 does not include any fair-market1 arms-length agreement made by covered individuals for the acquisition1 by purchase1 lease1 or barter of property or services from a foreign source other than such a foreign source that is a foreign country of concern or a foreign entity of concern2 and 7#c7 the term covered individual-- 7,a7 has the meaning given such term in section #bbc7;d7 of the ,william ,m4 7,mac7 ,thornberry ,national ,defense ,authorization ,act for ,fiscal ,year #bjba 7#db ,u4,s4,c4 #ffje72 and 7,b7 shall be interpreted in accordance with the ,guidance for ,implementing ,national ,security ,presidential ,memorandum #cc 7,,nspm-#cc7 on ,national ,security ,strategy for ,united ,states ,government-supported ,research and ,development published by the ,subcommittee on ,research ,security and the ,joint ,committee on the ,research ,environment in ,january #bjbb4 4 #d4 ,investment disclosure report ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq471 as amended by section #c of this ,act1 is further amended by inserting after section #aag;,b the following3 #aag;,c4 ,investment disclosure report 7a7 ,investment disclosure report ,a specified institution shall file a disclosure report in accordance with subsection 7b7 with the ,secretary on ,july #ca immediately following any calendar year in which the specified institution purchases1 sells1 or holds 7directly or indirectly through any chain of ownership7 one or more investments of concern4 7b7 ,contents of report ,each report to the ,secretary required by subsection 7a7 with respect to any calendar year shall contain the following3 7#a7 ,a list of the investments of concern purchased1 sold1 or held during such calendar year4 7#b7 ,the aggregate fair market value of all investments of concern held as of the close of such calendar year4 7#c7 ,the combined value of all investments of concern sold over the course of such calendar year1 as measured by the fair market value of such investments at the time of the sale4 7#d7 ,the combined value of all capital gains from such sales of investments of concern4 7c7 ,inclusion of certain pooled funds 7#a7 ,in general ,an investment of concern acquired through a regulated investment company1 exchange traded fund1 or any other pooled investment shall be treated as acquired through a chain of ownership referred to in subsection 7a71 unless such pooled investment is certified by the ,secretary as not holding any listed investments in accordance with subparagraph 7,b7 of paragraph 7#b74 7#b7 ,certifications of pooled funds ,the ,secretary1 after consultation with the ,secretary of the ,treasury1 shall establish procedures under which certain regulated investment companies1 exchange traded funds1 and other pooled investments-- 7,a7 shall be reported in accordance with the requirements under subsection 7b72 and 7,b7 may be certified by the ,secretary as not holding any listed investments4 7d7 ,treatment of related organizations ,for purposes of this section1 assets held by any related organization 7as defined in section #difh7;d77#b7 of the ,internal ,revenue ,code of #aihf7 with respect to a specified institution shall be treated as held by such specified institution1 except that-- 7#a7 such assets shall not be taken into account with respect to more than #a specified institution2 and 7#b7 unless such organization is controlled by such institution or is described in section #eji7;a77#c7 of the ,internal ,revenue ,code of #aihf with respect to such institution1 assets which are not intended or available for the use or benefit of such specified institution shall not be taken into account4 7e7 ,valuation of debt ,for purposes of this section1 the fair market value of any debt shall be the principal amount of such debt4 7f7 ,regulations ,the ,secretary1 after consultation with the ,secretary of the ,treasury1 may issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including regulations or other guidance providing for the proper application of this section with respect to certain regulated investment companies1 exchange traded funds1 and pooled investments4 7g7 ,compliance officer ,any specified institution that is required to submit a report under subsection 7a7 shall designate1 before the submission of such report1 and maintain a compliance officer1 who shall-- 7#a7 be a current employee or legally authorized agent of such institution2 7#b7 be responsible1 on behalf of the institution1 for personally certifying accurate compliance with the reporting requirements under this section2 and 7#c7 certify the institution has1 for purposes of filing such report under subsection 7a71 followed an established institutional policy and conducted good faith efforts and reasonable due diligence to determine the accuracy and valuations of the assets reported4 7h7 ,database requirement ,beginning not later than #fj days before the ,july #ca immediately following the date of the enactment of the ,,deterrent ,act1 the ,secretary shall-- 7#a7 establish and maintain a searchable database on a website of the ,department1 under which all reports submitted under this section-- 7,a7 are made publicly available 7in electronic and downloadable format71 including any information provided in such reports2 7,b7 can be individually identified and compared2 and 7,c7 are searchable and sortable2 and 7#b7 not later than #cj days after receipt of a disclosure report under this section1 include such report in such database4 7i7 ,definitions ,in this section3 7#a7 ,investment of concern 7,a7 ,in general ,the term investment of concern means any specified interest with respect to any of the following3 7i7 ,a foreign country of concern4 7ii7 ,a foreign entity of concern4 7,b7 ,specified interest ,the term specified interest means1 with respect to any entity-- 7i7 stock or any other equity or profits interest of such entity2 7ii7 debt issued by such entity2 and 7iii7 any contract or derivative with respect to any property described in clause 7i7 or 7ii74 7#b7 ,specified institution 7,a7 ,in general ,the term specified institution1 as determined with respect to any calendar year1 means an institution if-- 7i7 such institution is not a public institution2 and 7ii7 the aggregate fair market value of-- 7,i7 the assets held by such institution at the end of such calendar year 7other than those assets which are used directly in carrying out the institution's exempt purpose7 is in excess of #f1jjj1jjj1jjj2 or 7,,ii7 the investments of concern held by such institution at the end of such calendar year is in excess of #bej1jjj1jjj 7,b7 ,references to certain terms ,for the purpose of applying the definition under subparagraph 7,a71 the terms aggregate fair market value and assets which are used directly in carrying out the institution's exempt purpose shall be applied in the same manner as such terms are applied for the purposes of section #difh7;b77#a77;,d7 of the ,internal ,revenue ,code of #aihf4 4 #e4 ,enforcement and other general provisions 7a7 ,enforcement and other general provisions ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq471 as amended by section #d of this ,act1 is further amended by inserting after section #aag;,c the following3 #aag;,d4 ,enforcement2 single point-of-contact 7a7 ,enforcement 7#a7 ,investigation ,the ,secretary 7acting through the ,general ,counsel of the ,department7 shall conduct investigations of possible violations of sections #aag1 #aag;,a1 #aag;,b1 and #aag;,c by institutions and1 whenever it appears that an institution has knowingly or willfully failed to comply with a requirement of any of such sections 7including any rule or regulation promulgated under any such section71 shall request that the ,attorney ,general bring a civil action in accordance with paragraph 7#b74 7#b7 ,civil action ,whenever it appears that an institution has knowingly or willfully failed to comply with a requirement of any of the sections listed in paragraph 7#a7 7including any rule or regulation promulgated under any such section7 based on such an investigation1 a civil action shall 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 requirement of the section that has been violated4 7#c7 ,costs and other fines ,an institution that is compelled to comply with a requirement of a section listed in paragraph 7#a7 pursuant to paragraph 7#b7 shall-- 7,a7 pay to the ,treasury of the ,united ,states the full costs to the ,united ,states of obtaining compliance with the requirement of such section1 including all associated costs of investigation and enforcement2 and 7,b7 be subject to the applicable fines described in paragraph 7#d74 7#d7 ,fines for violations ,the ,secretary shall impose a fine on an institution that knowingly or willfully fails to comply with a requirement of a section listed in paragraph 7#a7 as follows3 7,a7 ,section #aag 7i7 ,first-time violations ,in the case of an institution that knowingly or willfully fails to comply with a requirement of section #aag with respect to a calendar year1 and that has not previously knowingly or willfully failed to comply with such a requirement1 the ,secretary shall impose a fine on the institution for such violation as follows3 7,i7 ,in the case of an institution that knowingly or willfully fails to comply with a reporting requirement under subsection 7a77#a7 of section #aag1 such fine shall be in an amount that is-- 7aa7 not less than #ej1jjj but not more than the monetary value of the gift from1 or contract with1 the foreign source2 or 7bb7 in the case of a gift or contract of no value or of indeterminable value1 not less than #a percent1 and not more than #aj percent of the total amount of ,federal funds received by the institution under this ,act for the most recent fiscal year4 7,,ii7 ,in the case of an institution that knowingly or willfully fails to comply with the reporting requirement under subsection 7a77#b7 of section #aag1 such fine shall be in an amount that is not less than #aj percent of the total amount of ,federal funds received by the institution under this ,act for the most recent fiscal year4 7ii7 ,subsequent violations ,in the case of an institution that has been fined pursuant to clause 7i7 with respect to a calendar year1 and that knowingly or willfully fails to comply with a requirement of section #aag with respect to any additional calendar year1 the ,secretary shall impose a fine on the institution with respect to any such additional calendar year as follows3 7,i7 ,in the case of an institution that knowingly or willfully fails to comply with a reporting requirement under subsection 7a77#a7 of section #aag with respect to an additional calendar year1 such fine shall be in an amount that is-- 7aa7 not less than #ajj1jjj but not more than twice the monetary value of the gift from1 or contract with1 the foreign source2 or 7bb7 in the case of a gift or contract of no value or of indeterminable value1 not less than #a percent1 but not more than #aj percent1 of the total amount of ,federal funds received by the institution under this ,act for the most recent fiscal year4 7,,ii7 ,in the case of an institution that knowingly or willfully fails to comply with a reporting requirement under subsection 7a77#b7 of section #aag with respect to an additional calendar year1 such fine shall be in an amount that is not less than #bj percent of the total amount of ,federal funds received by the institution under this ,act for the most recent fiscal year4 7,b7 ,section #aag;,a 7i7 ,first-time violations ,in the case of an institution that knowingly or willfully fails to comply with a requirement of section #aag;,a for the first time1 the ,secretary shall impose a fine on the institution in an amount that is not less than #e percent1 but not more than #aj percent1 of the total amount of ,federal funds received by the institution under this ,act for the most recent fiscal year4 7ii7 ,subsequent violations ,in the case of an institution that has been fined pursuant to clause 7i71 the ,secretary shall impose a fine on the institution for each subsequent time the institution knowingly or willfully fails to comply with a requirement of section #aag;,a in an amount that is not less than #bj percent of the total amount of ,federal funds received by the institution under this ,act for the most recent fiscal year4 7,c7 ,section #aag;,b 7i7 ,first-time violations ,in the case of an institution that knowingly or willfully fails to comply with a requirement of section #aag;,b with respect to a calendar year1 and that has not previously knowingly or willfully failed to comply with such a requirement1 the ,secretary shall impose a fine on the institution of not less than #bej1jjj1 but not more than the total amount of gifts or contracts reported by such institution in the database required under section #aag;,b7a77#b74 7ii7 ,subsequent violations ,in the case of an institution that has been fined pursuant to clause 7i7 with respect to a calendar year1 and that knowingly or willfully fails to comply with a requirement of section #aag;,b with respect to any additional calendar year1 the ,secretary shall impose a fine on the institution with respect to any such additional calendar year in an amount that is not less than #ejj1jjj1 but not more than twice the total amount of gifts or contracts reported by such institution in the database required under section #aag;,b7a77#b74 7,d7 ,section #aag;,c 7i7 ,first-time violations ,in the case of a specified institution that knowingly or willfully fails to comply with a requirement of section #aag;,c with respect to a calendar year1 and that has not previously knowingly or willfully failed to comply with such a requirement1 the ,secretary shall impose a fine on the institution in an amount that is not less than #ej percent and not more than #ajj percent of the sum of-- 7,i7 the aggregate fair market value of all investments of concern held by such institution as of the close of such calendar year2 and 7,,ii7 the combined value of all investments of concern sold over the course of such calendar year1 as measured by the fair market value of such investments at the time of the sale4 7ii7 ,subsequent violations ,in the case of a specified institution that has been fined pursuant to clause 7i7 with respect to a calendar year1 and that knowingly or willfully fails to comply with a requirement of section #aag;,c with respect to any additional calendar year1 the ,secretary shall impose a fine on the institution with respect to any such additional calendar year in an amount that is not less than #ajj percent and not more than #bjj percent of the sum of-- 7,i7 the aggregate fair market value of all investments of concern held by such institution as of the close of such additional calendar year2 and 7,,ii7 the combined value of all investments of concern sold over the course of such additional calendar year1 as measured by the fair market value of such investments at the time of the sale4 7,e7 ,ineligibilty for waiver --,in the case of an institution that has been fined pursuant to subparagraph 7,a77i71 7,b77i7 7,c77i71 or 7,d77i7 with respect to a calendar year1 and that knowingly or willfully fails to comply with a requirement of section #aag1 #aag;,a1 #aag;,b1 or #aag;,c with respect to any #b additional calendar years1 the ,secretary shall prohibit the institution from obtaining a waiver1 or a renewal of a waiver1 under section #aag;,a4 7b7 ,single point-of-contact at the ,department ,the ,secretary shall maintain a single point-of-contact at the ,department to-- 7#a7 receive and respond to inquiries and requests for technical assistance from institutions regarding compliance with the requirements of sections #aag1 #aag;,a1 #aag;,b1 and #aag;,c2 7#b7 coordinate and implement technical improvements to the database described in section #aag7;d77#a71 including-- 7,a7 improving upload functionality by allowing for batch reporting1 including by allowing institutions to upload one file with all required information into the database2 7,b7 publishing and maintaining a database users guide annually1 including information on how to edit an entry and how to report errors2 7,c7 creating a standing user group 7to which chapter #aj of title #e1 ,united ,states ,code1 shall not apply7 to discuss possible database improvements1 which group shall-- 7i7 include at least-- 7,i7 #c members representing public institutions with high or very high levels of research activity 7as defined by the ,national ,center for ,education ,statistics72 7,,ii7 #b members representing private1 nonprofit institutions with high or very high levels of research activity 7as so defined72 7,,iii7 #b members representing proprietary institutions of higher education 7as defined in section #ajb7;b772 and 7,,iv7 #b members representing area career and technical education schools 7as defined in subparagraph 7,c7 or 7,d7 of section #c7c7 of the ,carl ,d4 ,perkins ,career and ,technical ,education ,act of #bjjf 7#bj ,u4,s4,c4 #bcjb7c772 and 7ii7 meet at least twice a year with officials from the ,department to discuss possible database improvements2 7,d7 publishing1 on a publicly available website1 recommended database improvements following each meeting described in subparagraph 7,c77ii72 and 7,e7 responding1 on a publicly available website1 to each recommendation published under subparagraph 7,d7 as to whether or not the ,department will implement the recommendation1 including the rationale for either approving or rejecting the recommendation2 7#c7 provide1 every #ij days after the date of enactment of the ,,deterrent ,act1 status updates on any pending or completed investigations and civil actions under subsection 7a77#a7 to-- 7,a7 the authorizing committees2 and 7,b7 any institution that is the subject of such investigation or action2 7#d7 maintain1 on a publicly accessible website-- 7,a7 a full comprehensive list of all foreign countries of concern and foreign entities of concern2 and 7,b7 the date on which the last update was made to such list2 and 7#e7 not later than #g days after making an update to the list maintained in paragraph 7#d77;,a71 notify each institution required to comply with the sections listed in paragraph 7#a7 of such update4 7c7 ,definitions ,for purposes of sections #aag1 #aag;,a1 #aag;,b1 #aag;,c1 and this section3 7#a7 ,foreign country of concern ,the term foreign country of concern includes the following3 7,a7 ,a country that is a covered nation 7as defined in section #dhgb7;d7 of title #aj1 ,united ,states ,code74 7,b7 ,any country that the ,secretary1 in consultation with the ,secretary of ,defense1 the ,secretary of ,state1 and the ,director of ,national ,intelligence1 determines to be engaged in conduct that is detrimental to the national security or foreign policy of the ,united ,states4 7#b7 ,foreign entity of concern ,the term foreign entity of concern has the meaning given such term in section #ajfab7;a7 of the ,research and ,development1 ,competition1 and ,innovation ,act 7#db ,u4,s4,c4 #aibba7;a77 and includes a foreign entity that is identified on the list published under section #abhf7;c77#h77;,a7 of the ,john ,s4 ,mc,cain ,national ,defense ,authorization ,act for ,fiscal ,year #bjai 7#aj ,u4,s4,c4 #bb #djja note2 ,public ,law #aae-bcb74 7#c7 ,institution ,the term institution means an institution of higher education 7as such term is defined in section #ajb1 other than an institution described in subsection 7a77#a77;c7 of such section74 4 7b7 ,program participation agreement ,section #dhg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7 is amended by adding at the end the following3 7#cj7 7,a7 ,an institution will comply with the requirements of sections #aag1 #aag;,a1 #aag;,b1 and #aag;,c4 7,b7 ,an institution that1 for #c consecutive institutional fiscal years1 violates any requirement of any of the sections listed in subparagraph 7,a71 shall-- 7i7 be ineligible to participate in the programs authorized by this title for a period of not less than #b institutional fiscal years2 and 7ii7 in order to regain eligibility to participate in such programs1 demonstrate compliance with all requirements of each such section for not less than #b institutional fiscal years after the institutional fiscal year in which such institution became ineligible4 4 7c7 ,,gao ,study and ,report 7#a7 ,study ,not later than #ahj days after the date of enactment of this ,act1 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 #aag1 #aag;,a1 #aag;,b1 and #aag;,c of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajaa;f71 as amended or added by this ,act1 including increasing information sharing1 increasing compliance rates1 and establishing processes for enforcement4 7#b7 ,report ,not later than #c years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress1 and make public1 a report containing the results of the study described in paragraph 7#a74 ,passed the ,house of ,representatives ,december #f1 #bjbc4,kevin ,f4 ,mc,cumber1,clerk4