,i #aaith ,,congress #ast ,session ,h4 ,r4 #ich ,,in ,,the ,,house ,,of ,,representatives ,february #d1 #bjbe,mr4 ,harris of ,north ,carolina 7for himself and ,mr4 ,owens7 introduced the following bill2 which was referred to the ,committee on ,education and ,workforce ,a ,,bill ,to amend the ,higher ,education ,act of #aife to restrict contracts with foreign countries of concern and foreign entities of concern4 #a4 ,short title ,this ,act may be cited as the ,no ,contracts with ,foreign ,adversaries ,act4 #b4 ,prohibition on contracts with certain foreign entities and countries 7a7 ,in general ,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 ,in general ,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 7#b7 ,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 by a person that is not an affiliated entity or agent of the foreign source involved with such contract2 and 7,,ii7 a statement that-- 7aa7 is certified by the compliance officer of the institution designated in accordance with subsection 7e72 and 7bb7 includes information that demonstrates that such contract-- 7,,aa7 is for the benefit of the institution's mission and students2 and 7,,bb7 will promote the security1 stability1 and economic vitality of the ,united ,states4 7,b7 ,renewal waiver requests 7i7 ,in general ,an institution that1 pursuant to a waiver issued under this section1 has entered into a contract1 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#c7 ,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#b77;,a71 or before a contract described in paragraph 7#b77;,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 ,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 ,health1 that the contract for which the waiver is being requested-- 7i7 is for the benefit of the institution's mission and students2 and 7ii7 will promote the security1 stability1 and economic vitality of the ,united ,states4 7#d7 ,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 ,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 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 enactment of the ,no ,contracts with ,foreign ,adversaries ,act-- 7,a7 the institution shall as soon as practicable1 but not later than #cj days after such date of enactment1 submit to the ,secretary a waiver request in accordance with clause 7ii7 of subsection 7b77#b77;,a72 and 7,b7 the ,secretary shall1 upon receipt of the request submitted under such clause1 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 enactment of the ,no ,contracts with ,foreign ,adversaries ,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#b77;,b74 7e7 ,compliance officer ,any institution that submits a waiver under this section shall designate1 before the submission of such waiver1 and maintain1 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 waiver requirements under this section4 7f7 ,enforcement 7#a7 ,investigation ,the ,secretary 7acting through the ,general ,counsel of the ,department7 shall conduct investigations of possible violations of this section by institutions and1 whenever it appears that an institution has knowingly or willfully failed to comply with a requirement of this section 7including any rule or regulation promulgated under this 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 this section 7including any rule or regulation promulgated under this section7 based on an investigation under such paragraph1 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 this section that has been violated4 7#c7 ,costs and other fines ,an institution that is compelled to comply with a requirement of this section 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 such requirement1 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 is compelled to comply with a requirement of this section pursuant to paragraph 7#b7 as follows3 7,a7 ,first-time violations ,in the case of an institution that knowingly or willfully fails to comply with a requirement of this section for the first time1 the ,secretary shall impose a fine on the institution in an amount that is not less than #e percent 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,b7 ,subsequent violations ,in the case of an institution that has been fined pursuant to subparagraph 7,a71 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 this section 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 ,ineligibilty for waiver ,in the case of an institution that has been fined pursuant to subparagraph 7,a7 with respect to a calendar year1 and that knowingly or willfully fails to comply with a requirement of this section 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 this section4 7g7 ,definitions ,in this section3 7#a7 ,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#b7 ,foreign country of concern ,the term foreign country of concern means the following3 7,a7 ,any covered nation defined in section #dhgb of title #aj1 ,united ,states ,code4 7,b7 ,any country the ,secretary1 in consultation with the ,secretary of ,defense1 the ,secretary of ,state1 and the ,director of ,national ,intelligence1 determines1 for purposes of section #aag or this section1 to be engaged in conduct that is detrimental to the national security or foreign policy of the ,united ,states4 7#c7 ,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#d7 ,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 section #aag;,a4 7,b7 ,an institution that1 for #c consecutive institutional fiscal years1 violates any requirement of section #aag;,a 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