[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1296 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1296
To amend the Higher Education Act of 1965 to strengthen disclosure
requirements relating to foreign gifts and contracts, to prohibit
contracts between institutions of higher education and certain foreign
entities and countries of concern, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 3, 2025
Mr. Tillis (for himself, Mr. Cassidy, Mrs. Blackburn, Mrs. Capito, Mr.
Cornyn, Ms. Ernst, Mr. Grassley, Mr. Scott of Florida, Mr. Ricketts,
Mr. Schmitt, Ms. Lummis, and Mr. Risch) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to strengthen disclosure
requirements relating to foreign gifts and contracts, to prohibit
contracts between institutions of higher education and certain foreign
entities and countries of concern, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Defending Education Transparency and
Ending Rogue Regimes Engaging in Nefarious Transactions Act'' or the
``DETERRENT Act''.
SEC. 2. DISCLOSURES OF FOREIGN GIFTS.
(a) In General.--Section 117 of the Higher Education Act of 1965
(20 U.S.C. 1011f) is amended to read as follows:
``SEC. 117. DISCLOSURES OF FOREIGN GIFTS.
``(a) Disclosure Reports.--
``(1) Aggregate gifts and contract disclosures.--An
institution shall file with the Secretary, in accordance with
subsection (b)(1), a disclosure report on July 31 of the
calendar year immediately following any calendar year in
which--
``(A) the institution receives a gift from, or
enters into a contract with, a foreign source (other
than a foreign country of concern or foreign entity of
concern)--
``(i) the value of which is $50,000 or
more, considered alone or in combination with
all other gifts from, or contracts with, that
foreign source within the calendar year; or
``(ii) the value of which is indeterminate;
or
``(B) the institution--
``(i) receives a gift from a foreign
country of concern or foreign entity of
concern, without regard to the value of such
gift; or
``(ii) upon receiving a waiver under
section 117A to enter into a contract with such
a country or entity, enters into such contract,
without regard to the value of such contract.
``(2) Foreign source ownership or control disclosures.--
Notwithstanding paragraph (1), in the case of an institution
that is substantially controlled (as described in section
668.174(c)(3) of title 34, Code of Federal Regulations) (or
successor regulations) by a foreign source, the institution
shall file with the Secretary, in accordance with subsection
(b)(2), a disclosure report on July 31 of each year.
``(3) Treatment of affiliated entities.--For purposes of
this section, any gift to, or contract with, an affiliated
entity of an institution shall be considered a gift to, or
contract with, respectively, such institution.
``(b) Contents of Report.--
``(1) Gifts and contracts.--Each report to the Secretary
required under subsection (a)(1) shall include the following:
``(A) With respect to a gift received from, or a
contract entered into with, any foreign source--
``(i) the name of the individual,
department, or other entity at the institution
receiving the gift or carrying out the contract
on behalf of the institution;
``(ii) any intended purpose of the gift or
contract communicated to the institution by the
foreign source, and, as of the date of filing
such report, the manner in which the
institution intends to use such gift or
contract;
``(iii) in the case of a restricted or
conditional gift or contract, a description of
each restriction or condition that meets the
definition of the term `restricted or
conditional gift or contract' in subsection
(f);
``(iv) with respect to such a gift--
``(I) the total fair market dollar
amount or dollar value of the gift, as
of the date of submission of such
report; and
``(II) the date on which the
institution received such gift;
``(v) with respect to such a contract--
``(I) the total fair market dollar
amount or dollar value of the contract,
as of the date of submission of such
report;
``(II) the date on which the
institution enters into such contract;
``(III) the date on which such
contract first takes effect;
``(IV) if the contract has a
termination date, such termination
date; and
``(V) an assurance that the
institution will--
``(aa) maintain an
unredacted copy of the contract
until the latest of--
``(AA) the date
that is 5 years after
the date on which such
contract first takes
effect;
``(BB) the date on
which the contract
terminates; or
``(CC) the last day
of any period that
applicable State law
requires a copy of such
contract to be
maintained; and
``(bb) upon request of the
Secretary during an
investigation under section
117C(a)(1), produce such an
unredacted copy of the
contract.
``(B) With respect to a gift received from, or a
contract entered into with, a foreign source that is a
foreign government (other than the government of a
foreign country of concern)--
``(i) the name of such foreign government;
``(ii) the department, agency, office, or
division of such foreign government that
approved such gift or contract, as applicable;
and
``(iii) the physical mailing address of
such department, agency, office, or division.
``(C) With respect to a gift received from, or
contract entered into with, a foreign source other than
a foreign government subject to the requirements of
subparagraph (B)--
``(i)(I) the legal name of the foreign
source; or
``(II) in the case of a gift received from
a foreign source that awarded such gift to the
institution as an agent described in subsection
(f)(4)(G) on behalf of another foreign source--
``(aa) the legal name of the
foreign source that awarded such gift;
and
``(bb) the legal name of the
foreign source on whose behalf the gift
was awarded, or a statement certified
by a compliance officer in accordance
with section 117C(c) that the
institution has reasonably attempted to
obtain such name;
``(ii) in the case of a foreign source that
is a natural person, each country of
citizenship of such person, or, if no such
country is known, the principal country of
residence of such person;
``(iii) in the case of a foreign source
that is a legal entity, the country in which
such entity is incorporated, or, if such
information is not available, the principal
place of business of such entity;
``(iv) the physical mailing address of such
foreign source, or, if such address is not
available, a statement certified by a
compliance officer in accordance with section
117C(c) that the institution has reasonably
attempted to obtain such address; and
``(v) any affiliation of the foreign source
to an organization that is designated as a
foreign terrorist organization pursuant to
section 219 of the Immigration and Nationality
Act (8 U.S.C. 1189).
``(D) With respect to a contract entered into with
a foreign source that is a foreign country of concern
or a foreign entity of concern--
``(i) a complete and unredacted copy of the
original contract, and if such original
contract is not in English, a translated copy
in accordance with subsection (c);
``(ii) a copy of the waiver received under
section 117A for such contract; and
``(iii) the statement submitted by the
institution for purposes of receiving such a
waiver under section 117A(b)(2).
``(E) With respect to a gift received from a
foreign source that is a foreign country of concern or
a foreign entity of concern, an assurance that the
institution will--
``(i) in a case in which the institution
received documentation relating to such gift,
maintain such documentation until the later
of--
``(I) the date that is 5 years
after the date such gift was received
by the institution; or
``(II) the last day of any period
that applicable State law requires a
copy of such documentation to be
maintained; and
``(ii) upon request of the Secretary during
an investigation under section 117C(a)(1),
produce such documentation.
``(2) Foreign source ownership or control.--Each report to
the Secretary required under subsection (a)(2) shall contain--
``(A) the information required under paragraph (1);
``(B) the legal name and the mailing address of the
foreign source that substantially controls the
institution as described in such subsection;
``(C) the date on which the foreign source assumed
such substantial control; and
``(D) any changes in program or structure of the
institution of higher education resulting from such
substantial control.
``(c) Translation Requirements.--Any information required to be
disclosed under this section, or requested by the Secretary pursuant to
an investigation under section 117C(a)(1), with respect to a gift or
contract that is not in English shall be translated into English, for
purposes of such disclosure or such investigation, by a person that is
not--
``(1) a foreign source that awarded such gift or entered
into such contract; or
``(2) any other foreign source from an attributable country
of a foreign source referred to in paragraph (1).
``(d) Public Inspection.--
``(1) Database requirement.--Beginning not later than May
31 of the calendar year following the date of enactment of the
DETERRENT Act, the Secretary shall--
``(A) establish and maintain a searchable database
on a website of the Department, under which all reports
submitted under this section (including, to the extent
practicable, any report submitted under this section
before the date of enactment of the DETERRENT Act)--
``(i) are made publicly available (in
electronic and downloadable format), including
any information provided in such reports (other
than the information prohibited from being
publicly disclosed pursuant to paragraph (2));
``(ii) can be individually identified and
compared; and
``(iii) to the extent practicable, are
searchable and sortable--
``(I) by the institution that filed
such report;
``(II) by the date on which the
institution filed such report;
``(III) by the date on which the
institution received the gift which is
the subject of the report;
``(IV) by the date on which the
institution enters into the contract
which is the subject of the report;
``(V) by the date on which such
contract first takes effect;
``(VI) by the attributable country
of such gift or contract;
``(VII) by the name of the foreign
source;
``(VIII) by the information
described in subparagraph (C)(i); and
``(IX) by the information described
in subparagraph (C)(ii);
``(B) not later than 30 days after receipt of a
disclosure report under this section, include such
report in such database;
``(C) indicate, as part of the public record of a
report included in such database, whether the report is
with respect to a gift received from, or a contract
entered into with--
``(i) a foreign source that is a foreign
government; or
``(ii) a foreign source that is not a
foreign government; and
``(D) with respect to a disclosure report that does
not include the name or address of a foreign source,
indicate, as part of the public record of such report
included in such database, that such report did not
include such information.
``(2) Application of federal privacy law; protections for
natural persons.--
``(A) Application of federal privacy law.--Except
as provided in subparagraph (B), a disclosure report
filed pursuant to this section is not subject to
Federal privacy law (including any exemption from
disclosure described in section 552(b) of title 5,
United States Code).
``(B) Protections for natural persons.--
``(i) In general.--Except as provided in
clause (ii), with respect to a disclosure
report filed under this section, the name or
address (other than the attributable country)
of a foreign source that is a natural person--
``(I) may not be publicly
disclosed; and
``(II) is exempt from disclosure
under subsection (b)(3) of section 552
of title 5, United States Code
(commonly referred to as the Freedom of
Information Act).
``(ii) Exceptions for contracts with a
foreign country of concern or foreign entity of
concern.--Clause (i) shall not apply to a
disclosure report filed pursuant to this
section that contains information with respect
to a contract described in subsection
(a)(1)(B)(ii) entered into with a foreign
country of concern or foreign entity of
concern.
``(e) Interagency Information Sharing.--Notwithstanding any other
provision of law, not later than 30 days after receiving a disclosure
report from an institution in compliance with this section, the
Secretary shall transmit an unredacted copy of such report (including
the name and address of a foreign source disclosed in such report) to
the Director of the Federal Bureau of Investigation, the Director of
National Intelligence, the Director of the Central Intelligence Agency,
the Secretary of State, the Secretary of Defense, the Attorney General,
the Secretary of Commerce, the Secretary of Homeland Security, the
Secretary of Energy, the Director of the National Science Foundation,
and the Director of the National Institutes of Health.
``(f) Definitions.--In this section:
``(1) Affiliated entity.--The term `affiliated entity',
when used with respect to an institution, means an entity or
organization that operates primarily for the benefit of, or
under the auspices of, such institution, such as a foundation
of the institution, or an educational, cultural, or language
entity.
``(2) Attributable country.--The term `attributable
country' means--
``(A) the country of citizenship of a foreign
source who is a natural person, or, if such country is
unknown, the principal residence of such foreign
source; or
``(B) the country of incorporation of a foreign
source that is a legal entity, or, if such country is
unknown, the principal place of business (as
applicable) of such foreign source.
``(3) Contract.--The term `contract'--
``(A) means--
``(i) any agreement for the acquisition by
purchase, lease, or barter of property
(including intellectual property) or services
by the foreign source;
``(ii) except as provided in subparagraph
(B)(ii), any agreement for the acquisition by
purchase, lease, or barter of property
(including intellectual property) or services
from a foreign source; and
``(iii) any affiliation, agreement, or
similar transaction with a foreign source that
involves the use or exchange of an
institution's name, likeness, time, services,
or resources; and
``(B) does not include--
``(i) 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 (as such term is defined in
section 472), unless such an agreement is made
for more than 15 students or is made under a
restricted or conditional contract;
``(ii) an arms-length agreement for the
acquisition by purchase, lease, or barter of
property (including intellectual property) or
services from a foreign source that is not a
foreign country of concern or a foreign entity
of concern; or
``(iii) any assignment or license of a
granted intellectual property right (including
a patent, trademark, or copyright) that is 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 No. 1 to
part 774 of title 15, Code of Federal
Regulations (or successor regulations).
``(4) Foreign source.--The term `foreign source' means--
``(A) a foreign government, including an agency of
a foreign government;
``(B) a legal entity, governmental or otherwise,
created under the laws of a foreign state or states;
``(C) a legal entity, governmental or otherwise,
substantially controlled (as described in section
668.174(c)(3) of title 34, Code of Federal Regulations)
(or successor regulations) by a foreign source;
``(D) a natural person who is not a citizen or a
national of the United States or a trust territory or
protectorate thereof;
``(E) an international organization (as such term
is defined in the International Organizations
Immunities Act (22 U.S.C. 288));
``(F) a person who is an agent of a foreign
principal (as such term is defined in section 1 of the
Foreign Agents Registration Act of 1938 (22 U.S.C.
611)); or
``(G) an agent of any of the entities described in
subparagraphs (A) through (F), including--
``(i) a subsidiary or affiliate of a
foreign legal entity, acting on behalf of such
an entity; and
``(ii) a person that operates primarily for
the benefit of, or under the auspices of, such
an entity, such as a foundation of such entity,
or an educational, cultural, or language
entity.
``(5) Gift.--The term `gift'--
``(A) means any gift of money, property (including
intellectual property), resources, staff, or services;
and
``(B) does not include--
``(i) any payment of one or more elements
of a student's cost of attendance (as such term
is defined in section 472) to an institution
by, or scholarship from, a foreign source who
is a natural person, acting in their individual
capacity and not as an agent for, at the
request or direction of, or on behalf of, any
person or entity (except the student), made for
not more than 15 students, and that is not made
under a restricted or conditional contract with
such foreign source;
``(ii) any assignment or license of a
granted intellectual property right (including
a patent, trademark, or copyright) that is 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 No. 1 to
part 774 of title 15, Code of Federal
Regulations (or successor regulations); or
``(iii) decorations (as such term is
defined in section 7342(a) of title 5, United
States Code).
``(6) Restricted or conditional gift or contract.--The term
`restricted or conditional gift or contract' means any
endowment, gift, grant, contract, award, present, or property
(including intellectual property) of any kind which includes
provisions regarding--
``(A) the employment, assignment, or termination of
faculty;
``(B) the establishment of, or the provision of
funding for, departments, centers, institutes,
instructional programs, research or lecture programs,
or new faculty positions;
``(C) the selection, admission, or education of
students; or
``(D) the award of grants, loans, scholarships,
fellowships, or other forms of financial aid restricted
to students of a specified country, religion, sex,
ethnic origin, or political opinion.''.
(b) Prohibition on Contracts With Certain Foreign Entities and
Countries.--Part B of title I of the Higher Education Act of 1965 (20
U.S.C. 1011 et seq.) is amended by inserting after section 117 the
following:
``SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN ENTITIES AND
COUNTRIES.
``(a) In General.--An institution shall not enter into a contract
with a foreign country of concern or a foreign entity of concern.
``(b) Waivers.--
``(1) In general.--A waiver issued under this section to an
institution with respect to a contract shall only--
``(A) waive the prohibition under subsection (a)
for a 1-year period; and
``(B) apply to the terms and conditions of the
proposed contract submitted as part of the request for
such waiver.
``(2) Submission.--
``(A) First waiver requests.--
``(i) 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 Secretary, not later
than 120 days before the institution enters
into such a contract, a request to waive the
prohibition under subsection (a) with respect
to such contract.
``(ii) Contents of waiver request.--A
waiver request submitted by an institution
under clause (i) shall include--
``(I) the complete and unredacted
text of the proposed contract for which
the waiver is being requested, and if
such original contract is not in
English, a translated copy of the text
into English (in a manner that complies
with section 117(c)); and
``(II) a statement that--
``(aa) is certified by a
compliance officer of the
institution designated in
accordance with section
117C(c); and
``(bb) includes information
that demonstrates that such
contract--
``(AA) is for the
benefit of the
institution's mission
and students; and
``(BB) will promote
the security,
stability, and economic
vitality of the United
States.
``(B) Renewal waiver requests.--
``(i) In general.--An institution that,
pursuant to a waiver issued under this section,
has entered into a contract, the term of which
is longer than the 1-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 submit, not
later than 120 days before the expiration of
such waiver period, a request for a renewal of
such waiver for an additional 1-year period
(which shall include any information requested
by the Secretary).
``(ii) Termination.--If the institution
fails to submit a request under clause (i) or
is not granted a renewal under such clause,
such institution shall terminate such contract
on the last day of the original 1-year waiver
period.
``(3) Waiver issuance.--The Secretary--
``(A) not later than 60 days before an institution
enters into a contract pursuant to a waiver request
under paragraph (2)(A), or before a contract described
in paragraph (2)(B)(i) is renewed pursuant to a renewal
request under such paragraph, shall notify the
institution--
``(i) if the waiver or renewal will be
issued by the Secretary; and
``(ii) in a case in which the waiver or
renewal will be issued, the date on which the
1-year waiver period starts; and
``(B) may only issue a waiver under this section to
an institution if the Secretary determines, in
consultation with each individual listed in section
117(e), that the contract for which the waiver is being
requested--
``(i) is for the benefit of the
institution's mission and students; and
``(ii) will promote the security,
stability, and economic vitality of the United
States.
``(4) Disclosure.--Not less than 2 weeks prior to issuing a
waiver under paragraph (2), the Secretary shall notify the
authorizing committees of the intent to issue the waiver,
including a justification for the waiver.
``(c) 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
which, during the term of such contract, is designated as a foreign
country of concern or foreign entity of concern, such institution shall
terminate such contract not later than 60 days after the Secretary
notifies the institution of such designation.
``(d) Contracts Prior to Date of Enactment.--
``(1) 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
DETERRENT Act--
``(A) the institution shall as soon as practicable,
but not later than 30 days after such date of
enactment, submit to the Secretary a waiver request in
accordance with clause (ii) of subsection (b)(2)(A);
and
``(B) the Secretary shall, upon receipt of the
request submitted under such clause, 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--
``(i) the date that is 1 year after the
date of enactment of the DETERRENT Act; or
``(ii) the date on which the contract
terminates.
``(2) Renewal.--An institution that has entered into a
contract described in paragraph (1), the term of which is
longer than the waiver period described in subparagraph (B) 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 (A) of such paragraph, may submit a request
for renewal of the waiver issued under such paragraph in
accordance with subsection (b)(2)(B).
``(e) Contract Defined.--The term `contract' has the meaning given
such term in section 117(f).''.
(c) Interagency Information Sharing.--Notwithstanding any other
provision of law, not later than 90 days after the date of enactment of
this Act, the Secretary of Education shall transmit to each individual
listed in section 117(e) of the Higher Education Act of 1965, as
amended by this Act--
(1) an unredacted copy of each report (including the name
and address of a foreign source disclosed in such report)
received by the Department of Education under section 117 of
the Higher Education Act of 1965 (20 U.S.C. 1011f) prior to the
date of enactment of this Act; and
(2) any report, document, or other record generated by the
Department of Education in the course of an investigation--
(A) of an institution with respect to the
compliance of such institution with such section; and
(B) initiated prior to the date of enactment of
this Act.
SEC. 3. POLICY REGARDING CONFLICTS OF INTEREST FROM FOREIGN GIFTS AND
CONTRACTS.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as
amended by the preceding section, is further amended by inserting after
section 117A the following:
``SEC. 117B. INSTITUTIONAL POLICY REGARDING FOREIGN GIFTS AND CONTRACTS
TO FACULTY AND STAFF.
``(a) Requirement To Maintain Policy and Database.--Beginning not
later than 90 days after the date of enactment of the DETERRENT Act,
each institution described in subsection (b) shall maintain--
``(1) a policy requiring covered individuals at the
institution and covered individuals at affiliated entities of
the institution to disclose in a report to such institution by
July 31 of each calendar year that begins after the year in
which such enactment date occurs--
``(A) any gift received from a foreign source in
the previous calendar year, the value of which is
greater than the minimal value (as such term is defined
in section 7342(a) of title 5, United States Code) or
is of indeterminate value, and including the date on
which the gift was received;
``(B) any contract with a foreign source (other
than a foreign country of concern or foreign entity of
concern) entered into or in effect during the previous
calendar year, the value of which is $5,000 or more,
considered alone or in combination with all other
contracts with that foreign source within the calendar
year, and including the date on which such contract is
entered into, the date on which the contract first
takes effect, and, as applicable, the date on which
such contract terminates;
``(C) any contract with a foreign source (other
than a foreign country of concern or foreign entity of
concern) entered into or in effect during the previous
calendar year that has an indeterminate monetary value,
and including the date on which such contract is
entered into, the date on which the contract first
takes effect, and, as applicable, the date on which
such contract terminates; and
``(D) any contract entered into or in effect with a
foreign country of concern or foreign entity of concern
during the previous calendar year, the value of which
is $0 or more or which has an indeterminate monetary
value, and including--
``(i) the date on which such contract is
entered into;
``(ii) the date on which the contract first
takes effect;
``(iii) if the contract has a termination
date, such termination date; and
``(iv) the full text of such contract and
any addenda;
``(2) a publicly available and searchable database (in
electronic and downloadable format), on a website of the
institution, of the information required to be disclosed under
paragraph (1) (other than the information prohibited from
public disclosure pursuant to subsection (c)) that--
``(A) makes available the information disclosed
under paragraph (1) (other than the information
prohibited from public disclosure pursuant to
subsection (c)) beginning on the date that is 30 days
after receipt of the report under such paragraph
containing such information and until the latest of--
``(i) the date that is 5 years after the
date on which--
``(I) a gift referred to in
paragraph (1)(A) is received; or
``(II) a contract referred to in
subparagraph (B), (C), or (D) of
paragraph (1) first takes effect;
``(ii) the date on which a contract
referred to in subparagraph (B), (C), or (D) of
paragraph (1) terminates; or
``(iii) the last day of any period that
applicable State law requires a copy of such
contract to be maintained; and
``(B) is searchable and sortable--
``(i) if the subject of the disclosure is a
gift, by the date on which the gift is
received;
``(ii) if the subject of the disclosure is
a contract--
``(I) by the date on which such
contract is entered into; and
``(II) by the date on which such
contract first takes effect;
``(iii) by the attributable country with
respect to which information is being
disclosed;
``(iv)(I) if the covered individual at an
institution is making the disclosure, by the
most specific division of the institution (such
as the department, school, or college) that the
covered individual is in; and
``(II) if the covered individual at the
affiliated entity of the institution is making
the disclosure, by the name of such affiliated
entity;
``(v) by the name of the foreign source;
and
``(3) an effective plan to identify and manage potential
information gathering by foreign sources through espionage
targeting covered individuals that may arise from gifts
received from, or contracts entered into with, a foreign
source, including through the use of--
``(A) periodic communications;
``(B) accurate reporting under paragraph (2) of the
information required to be disclosed under paragraph
(1); and
``(C) enforcement of the policy described in
paragraph (1); and
``(4) for purposes of investigations under section
117C(a)(1), a record of the name of each individual who makes a
disclosure under paragraph (1) and each report disclosed under
such paragraph.
``(b) Institutions.--An institution shall be subject to the
requirements of this section if such institution--
``(1) received more than $50,000,000 in Federal funds in
any of the previous five calendar years to support (in whole or
in part) research and development (as determined by the
institution and measured by the Higher Education Research and
Development Survey of the National Center for Science and
Engineering Statistics); or
``(2) receives funds under title VI.
``(c) Application of Federal Privacy Law; Protections for Natural
Persons.--
``(1) Application of federal privacy law.--Except as
provided in paragraph (2), a disclosure made pursuant to this
section is not subject to Federal privacy law.
``(2) Protections for natural persons.--
``(A) In general.--Except as provided in
subparagraph (B), with respect to a disclosure made
pursuant to this section, the following may not be
publicly disclosed:
``(i) The name or address (other than the
attributable country) of a foreign source that
is a natural person.
``(ii) The name or any other personally
identifiable information of a covered
individual making such disclosure.
``(B) Exceptions for contracts with a foreign
country of concern or foreign entity of concern.--
Subparagraph (A) shall not apply to a disclosure made
pursuant to this section that contains information with
respect to a contract entered into with a foreign
country of concern or foreign entity of concern.
``(d) Definitions.--In this section--
``(1) the terms `affiliated entity', `attributable
country', `foreign source', and `gift' have the meanings given
such terms in section 117(f);
``(2) the term `contract'--
``(A) means--
``(i) any agreement for the acquisition by
purchase, lease, or barter of property
(including intellectual property) or services
by the foreign source;
``(ii) except as provided in subparagraph
(B), any agreement for the acquisition by
purchase, lease, or barter of property
(including intellectual property) or services
from a foreign source; and
``(iii) any affiliation, agreement, or
similar transaction with a foreign source that
involves the use or exchange of a covered
individual's name, likeness, time, services, or
resources; and
``(B) does not include--
``(i) an arms-length agreement for the
acquisition by purchase, lease, or barter of
property (including intellectual property) or
services from a foreign source that is not a
foreign country of concern or a foreign entity
of concern; and
``(ii) any assignment or license of a
granted intellectual property right (including
a patent, trademark, or copyright) that is 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 No. 1 to
part 774 of title 15, Code of Federal
Regulations (or successor regulations); and
``(3) the term `covered individual'--
``(A) has the meaning given such term in section
223(d) of the William M. (Mac) Thornberry National
Defense Authorization Act for Fiscal Year 2021 (42
U.S.C. 6605); and
``(B) shall be interpreted in accordance with the
Guidance for Implementing National Security
Presidential Memorandum 33 (NSPM-33) 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 2022
(or any successor guidance).''.
SEC. 4. ENFORCEMENT AND OTHER GENERAL PROVISIONS.
(a) Enforcement and Other General Provisions.--The Higher Education
Act of 1965 (20 U.S.C. 1001 et seq.), as amended by this Act, is
further amended by inserting after section 117B the following:
``SEC. 117C. ENFORCEMENT; SINGLE POINT-OF-CONTACT; INSTITUTIONAL
REQUIREMENTS.
``(a) Enforcement.--
``(1) Investigation.--The Secretary (acting through the
General Counsel of the Department) shall conduct investigations
of possible violations of sections 117, 117A, 117B, and
subsection (c) of this section by institutions and, whenever it
appears that an institution has knowingly or willfully failed
to comply with a requirement of any of such provisions
(including any rule or regulation promulgated under any such
provision), shall request that the Attorney General bring a
civil action in accordance with paragraph (2).
``(2) Civil action.--Whenever it appears that an
institution has knowingly or willfully failed to comply with a
requirement of any of the provisions listed in paragraph (1)
(including any rule or regulation promulgated under any such
provision) based on an investigation under such paragraph, a
civil action shall be brought by the Attorney General, at the
request of the Secretary, in an appropriate district court of
the United States, or the appropriate United States court of
any territory or other place subject to the jurisdiction of the
United States, to request such court to compel compliance with
the requirement of the provision that has been violated.
``(3) Costs and other fines.--An institution that is
compelled to comply with a requirement of a provision listed in
paragraph (1) pursuant to paragraph (2) shall--
``(A) pay to the Treasury of the United States the
full costs to the United States of obtaining compliance
with the requirement of such provision, including all
associated costs of investigation and enforcement; and
``(B) if applicable, be subject to the applicable
fines described in paragraph (4).
``(4) Fines for violations.--The Secretary shall impose a
fine on an institution that is compelled to comply with a
requirement of a section listed in paragraph (1) pursuant to
paragraph (2) as follows:
``(A) Section 117.--
``(i) First-time violations.--In the case
of an institution that is compelled to comply
with a requirement of section 117 pursuant to a
civil action described in paragraph (2), and
that has not previously been compelled to
comply with any such requirement pursuant to
such a civil action, the Secretary shall impose
a fine on the institution for such violation as
follows:
``(I) In the case of an institution
that knowingly or willfully fails to
comply with a reporting requirement
under subsection (a)(1) of section 117,
such fine shall be in an amount that
is--
``(aa) for each gift or
contract with determinable
value that is the subject of
such a failure to comply, the
greater of--
``(AA) $50,000; or
``(BB) the monetary
value of such gift or
contract; or
``(bb) for each gift or
contract of no value or of
indeterminable value, not less
than 1 percent and not more
than 10 percent of the total
amount of Federal funds
received by the institution
under this Act for the most
recent fiscal year.
``(II) In the case of an
institution that knowingly or willfully
fails to comply with the reporting
requirement under subsection (a)(2) of
section 117, such fine shall be in an
amount that is not less than 10 percent
of the total amount of Federal funds
received by the institution under this
Act for the most recent fiscal year.
``(ii) Subsequent violations.--In the case
of an institution that has previously been
compelled to comply with a requirement of
section 117 pursuant to a civil action
described in paragraph (2), and is subsequently
compelled to comply with such a requirement
pursuant to a subsequent civil action described
in paragraph (2), the Secretary shall impose a
fine on the institution as follows:
``(I) In the case of an institution
that knowingly or willfully fails to
comply with a reporting requirement
under subsection (a)(1) of section 117,
such fine shall be in an amount that
is--
``(aa) for each gift or
contract with determinable
value that is the subject of
such a failure to comply, the
greater of--
``(AA) $100,000; or
``(BB) twice the
monetary value of such
gift or contract; or
``(bb) for each gift or
contract of no value or of
indeterminable value, not less
than 5 percent and not more
than 10 percent of the total
amount of Federal funds
received by the institution
under this Act for the most
recent fiscal year.
``(II) In the case of an
institution that knowingly or willfully
fails to comply with a reporting
requirement under subsection (a)(2) of
section 117, such fine shall be in an
amount that is not less than 20 percent
of the total amount of Federal funds
received by the institution under this
Act for the most recent fiscal year.
``(B) Section 117a.--
``(i) First-time violations.--In the case
of an institution that is compelled to comply
with a requirement of section 117A pursuant to
a civil action described in paragraph (2), and
that has not previously been compelled to
comply with any such requirement pursuant to
such a civil action, the Secretary shall impose
a fine on the institution in an amount that is
not less than 5 percent and not more than 10
percent of the total amount of Federal funds
received by the institution under this Act for
the most recent fiscal year.
``(ii) Subsequent violations.--In the case
of an institution that has previously been
compelled to comply with a requirement of
section 117A pursuant to a civil action
described in paragraph (2), and is subsequently
compelled to comply with such a requirement
pursuant to a subsequent civil action described
in paragraph (2), the Secretary shall impose a
fine on the institution in an amount that is
not less than 20 percent of the total amount of
Federal funds received by the institution under
this Act for the most recent fiscal year.
``(C) Section 117b.--
``(i) First-time violations.--In the case
of an institution that is compelled to comply
with a requirement of section 117B pursuant to
a civil action described in paragraph (2), and
that has not previously been compelled to
comply with any such requirement pursuant to
such a civil action, the Secretary shall impose
a fine on the institution for such violation in
an amount that is the greater of--
``(I) $250,000; or
``(II) the total amount of gifts or
contracts that the institution is
compelled to report pursuant to such
civil action.
``(ii) Subsequent violations.--In the case
of an institution that has previously been
compelled to comply with a requirement of
section 117B pursuant to a civil action
described in paragraph (2), and is subsequently
compelled to comply with such a requirement
pursuant to a subsequent civil action described
in paragraph (2), the Secretary shall impose a
fine on the institution in an amount that is
the greater of--
``(I) $500,000; or
``(II) twice the total amount of
gifts or contracts that the institution
is compelled to report pursuant to such
civil action.
``(D) Ineligibility for waiver.--In the case of an
institution that is fined pursuant to subparagraph
(A)(ii), (B)(ii), or (C)(ii), the Secretary shall
prohibit the institution from obtaining a waiver, or a
renewal of a waiver, under section 117A.
``(b) Single Point-of-Contact at the Department.--The Secretary
shall maintain a single point-of-contact at the Department to--
``(1) receive and respond to inquiries and requests for
technical assistance from institutions regarding compliance
with the requirements of sections 117, 117A, 117B, and
subsection (c) of this section;
``(2) coordinate and implement technical improvements to
the database described in section 117(d)(1), including--
``(A) improving upload functionality by allowing
for batch reporting, including by allowing institutions
to upload one file with all required information into
the database;
``(B) publishing and maintaining a database users
guide, which shall be reviewed and updated as
practicable but not less than annually, including
information on how to edit an entry and how to report
errors;
``(C) creating a standing user group (to which
chapter 10 of title 5, United States Code, shall not
apply) to discuss possible database improvements, which
group shall--
``(i) include at least--
``(I) 3 members representing public
institutions with high or very high
levels of research activity (as defined
by the National Center for Education
Statistics);
``(II) 2 members representing
private, nonprofit institutions with
high or very high levels of research
activity (as so defined);
``(III) 2 members representing
proprietary institutions of higher
education (as defined in section
102(b)); and
``(IV) 2 members representing area
career and technical education schools
(as defined in subparagraph (C) or (D)
of section 3(3) of the Carl D. Perkins
Career and Technical Education Act of
2006 (20 U.S.C. 2302(3))); and
``(ii) meet at least twice a year with
officials from the Department to discuss
possible database improvements;
``(D) publishing, on a publicly available website,
recommended database improvements following each
meeting described in subparagraph (C)(ii); and
``(E) responding, on a publicly available website,
to each recommendation published under subparagraph (D)
as to whether or not the Department will implement the
recommendation, including the rationale for either
approving or rejecting the recommendation;
``(3) provide, every 90 days after the date of enactment of
the DETERRENT Act, status updates on any pending or completed
investigations and civil actions under subsection (a)(1) to--
``(A) the authorizing committees; and
``(B) any institution that is the subject of such
investigation or action;
``(4) maintain, on a publicly accessible website--
``(A) a full comprehensive list of all foreign
countries of concern and foreign entities of concern;
and
``(B) the date on which the last update was made to
such list; and
``(5) not later than 7 days after making an update to the
list maintained under paragraph (4)(A), notify each institution
required to comply with the sections listed in paragraph (1) of
such update.
``(c) Institutional Requirements for Compliance Officers and
Institutional Policy Requirements.--
``(1) In general.--An institution that is required to file
a report under section 117, that is seeking a waiver under
section 117A, or that is subject to the requirements of section
117B, shall, not later than the earlier of the date on which
the institution files the first report under section 117,
requests the institution's first waiver under section 117A, or
first fulfills the requirements of section 117B--
``(A) establish an institutional policy that the
institution shall follow in meeting the requirements of
sections 117, 117A, and 117B; and
``(B) designate and maintain at least one, but not
more than three, current employees or legally
authorized agents of such institution to serve as
compliance officers to carry out the requirements
listed in paragraph (2).
``(2) Duties of compliance officers.--A compliance officer
designated by an institution under paragraph (1)(B) shall
certify--
``(A) whenever the institution is required to file
a report under section 117--
``(i) the institution's accurate compliance
with the reporting requirements under such
section;
``(ii) that the institution, in filing such
report under section 117--
``(I) followed the institutional
policy established under paragraph
(1)(A) applicable to such section; and
``(II) conducted good faith efforts
and reasonable due diligence to ensure
that accurate information is provided
in such report; and
``(iii) in the case of a report under
section 117, any statements by the institution
required to be certified by such an officer
under clause (i) or (iv) of section
117(b)(1)(C); and
``(B) whenever the institution requests a waiver
under section 117A--
``(i) that the institution--
``(I) is in compliance with the
requirements of such section; and
``(II) followed the institutional
policy established under paragraph
(1)(A) applicable to such section; and
``(ii) the statement by the institution
required to be certified by such an officer
under section 117A(b)(2)(A)(ii)(II); and
``(C) whenever the institution is subject to the
requirements of section 117B, that the institution--
``(i) is in compliance with the
requirements of such section; and
``(ii) followed the institutional policy
established under paragraph (1)(A) applicable
to such section.
``(d) Definitions.--For purposes of sections 117, 117A, 117B, and
this section:
``(1) Foreign country of concern.--The term `foreign
country of concern' means the following:
``(A) Any covered nation defined in section 4872 of
title 10, United States Code.
``(B) Any country the Secretary, in consultation
with the Secretary of Defense, the Secretary of State,
and the Director of National Intelligence, determines,
for purposes of sections 117, 117A, 117B, or this
section, to be engaged in conduct that is detrimental
to the national security or foreign policy of the
United States.
``(2) Foreign entity of concern.--The term `foreign entity
of concern' has the meaning given such term in section 10612(a)
of the Research and Development, Competition, and Innovation
Act (42 U.S.C. 19221(a)) and includes a foreign entity that is
identified on the list published under section 1286(c)(9)(A) of
the John S. McCain National Defense Authorization Act for
Fiscal Year 2019 (10 U.S.C. 4001 note; Public Law 115-232).
``(3) Institution.--The term `institution' means an
institution of higher education (as such term is defined in
section 102, other than an institution described in subsection
(a)(1)(C) of such section) with a program participation
agreement under section 487.''.
(b) Program Participation Agreement.--Section 487(a) of the Higher
Education Act of 1965 (20 U.S.C. 1094) is amended by adding at the end
the following:
``(30)(A) An institution will comply with the requirements
of sections 117, 117A, 117B, and 117C(c).
``(B) In the case of an institution described in
subparagraph (C), the institution will--
``(i) be ineligible to participate in the programs
authorized by this title for a period of not less than
2 institutional fiscal years; and
``(ii) in order to regain eligibility to
participate in such programs, demonstrate compliance
with all requirements of each such section for not less
than 2 institutional fiscal years after the
institutional fiscal year in which such institution
became ineligible.
``(C) An institution described in this subparagraph is an
institution--
``(i) against which judgment has been granted in 3
separate civil actions described in section 117C(a)(2)
that have each resulted in the institution being
compelled to comply with one or more requirements of
section 117, 117A, 117B, or 117C(c); and
``(ii) that pursuant to section 117C(a)(4)(E), is
prohibited from obtaining a waiver, or a renewal of a
waiver, under section 117A.''.
(c) GAO Study and Report.--
(1) Study.--Not later than January 31 of the second
calendar year that begins after the date of enactment of this
Act, the Comptroller General of the United States shall
initiate a study to identify ways to improve intergovernmental
agency coordination regarding implementation and enforcement of
sections 117, 117A, 117B, and 117C(c) of the Higher Education
Act of 1965 (20 U.S.C. 1011f), as amended or added by this Act,
including increasing information sharing, increasing compliance
rates, and establishing processes for enforcement.
(2) Report.--Not later than 3 years after the date of the
initiation of the study under paragraph (1), the Comptroller
General of the United States shall submit to Congress, and make
public, a report containing the results of the study described
in paragraph (1).
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