119THCONGRESS
1
STSESSION H. R. 1048
AN ACT
To amend the Higher Education Act of 1965 to strengthen
disclosure requirements relating to foreign gifts and con-
tracts, to prohibit contracts between institutions of high-
er education and certain foreign entities and countries
of concern, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2 2
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SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘Defending Education 2
Transparency and Ending Rogue Regimes Engaging in 3
Nefarious Transactions Act’’ or the ‘‘DETERRENT 4
Act’’. 5
SEC. 2. DISCLOSURES OF FOREIGN GIFTS. 6
(a) I
NGENERAL.—Section 117 of the Higher Edu-7
cation Act of 1965 (20 U.S.C. 1011f) is amended to read 8
as follows: 9
‘‘SEC. 117. DISCLOSURES OF FOREIGN GIFTS. 10
‘‘(a) D
ISCLOSUREREPORTS.— 11
‘‘(1) A
GGREGATE GIFTS AND CONTRACT DIS -12
CLOSURES.—An institution shall file with the Sec-13
retary, in accordance with subsection (b)(1), a dis-14
closure report on July 31 of the calendar year imme-15
diately following any calendar year in which— 16
‘‘(A) the institution receives a gift from, or 17
enters into a contract with, a foreign source 18
(other than a foreign country of concern or for-19
eign entity of concern)— 20
‘‘(i) the value of which is $50,000 or 21
more, considered alone or in combination 22
with all other gifts from, or contracts with, 23
that foreign source within the calendar 24
year; or 25 3
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‘‘(ii) the value of which is indetermi-1
nate; or 2
‘‘(B) the institution— 3
‘‘(i) receives a gift from a foreign 4
country of concern or foreign entity of con-5
cern, without regard to the value of such 6
gift; or 7
‘‘(ii) upon receiving a waiver under 8
section 117A to enter into a contract with 9
such a country or entity, enters into such 10
contract, without regard to the value of 11
such contract. 12
‘‘(2) F
OREIGN SOURCE OWNERSHIP OR CON -13
TROL DISCLOSURES .—Notwithstanding paragraph 14
(1), in the case of an institution that is substantially 15
controlled (as described in section 668.174(c)(3) of 16
title 34, Code of Federal Regulations) (or successor 17
regulations)) by a foreign source, the institution 18
shall file with the Secretary, in accordance with sub-19
section (b)(2), a disclosure report on July 31 of each 20
year. 21
‘‘(3) T
REATMENT OF AFFILIATED ENTITIES .— 22
For purposes of this section, any gift to, or contract 23
with, an affiliated entity of an institution shall be 24 4
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considered a gift to, or contract with, respectively, 1
such institution. 2
‘‘(b) C
ONTENTS OFREPORT.— 3
‘‘(1) G
IFTS AND CONTRACTS .—Each report to 4
the Secretary required under subsection (a)(1) shall 5
include the following: 6
‘‘(A) With respect to a gift received from, 7
or a contract entered into with, any foreign 8
source— 9
‘‘(i) the name of the individual, de-10
partment, or other entity at the institution 11
receiving the gift or carrying out the con-12
tract on behalf of the institution; 13
‘‘(ii) any intended purpose of the gift 14
or contract communicated to the institu-15
tion by the foreign source, and, as of the 16
date of filing such report, the manner in 17
which the institution intends to use such 18
gift or contract; 19
‘‘(iii) in the case of a restricted or 20
conditional gift or contract, a description 21
of each restriction or condition that meets 22
the definition of the term ‘restricted or 23
conditional gift or contract’ in subsection 24
(f); 25 5
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‘‘(iv) with respect to such a gift— 1
‘‘(I) the total fair market dollar 2
amount or dollar value of the gift, as 3
of the date of submission of such re-4
port; and 5
‘‘(II) the date on which the insti-6
tution received such gift; 7
‘‘(v) with respect to such a contract— 8
‘‘(I) the total fair market dollar 9
amount or dollar value of the con-10
tract, as of the date of submission of 11
such report; 12
‘‘(II) the date on which the insti-13
tution enters into such contract; 14
‘‘(III) the date on which such 15
contract first takes effect; 16
‘‘(IV) if the contract has a termi-17
nation date, such termination date; 18
and 19
‘‘(V) an assurance that the insti-20
tution will— 21
‘‘(aa) maintain an 22
unredacted copy of the contract 23
until the latest of— 24 6
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‘‘(AA) the date that is 1
5 years after the date on 2
which such contract first 3
takes effect; 4
‘‘(BB) the date on 5
which the contract termi-6
nates; or 7
‘‘(CC) the last day of 8
any period that applicable 9
State law requires a copy of 10
such contract to be main-11
tained; and 12
‘‘(bb) upon request of the 13
Secretary during an investigation 14
under section 117D(a)(1), 15
produce such an unredacted copy 16
of the contract. 17
‘‘(B) With respect to a gift received from, 18
or a contract entered into with, a foreign source 19
that is a foreign government (other than the 20
government of a foreign country of concern)— 21
‘‘(i) the name of such foreign govern-22
ment; 23
‘‘(ii) the department, agency, office, 24
or division of such foreign government that 25 7
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approved such gift or contract, as applica-1
ble; and 2
‘‘(iii) the physical mailing address of 3
such department, agency, office, or divi-4
sion. 5
‘‘(C) With respect to a gift received from, 6
or contract entered into with, a foreign source 7
other than a foreign government subject to the 8
requirements of subparagraph (B)— 9
‘‘(i)(I) the legal name of the foreign 10
source; or 11
‘‘(II) in the case of a gift received 12
from a foreign source that awarded such 13
gift to the institution as an agent de-14
scribed in subsection (f)(4)(G) on behalf of 15
another foreign source— 16
‘‘(aa) the legal name of the for-17
eign source that awarded such gift; 18
and 19
‘‘(bb) the legal name of the for-20
eign source on whose behalf the gift 21
was awarded, or a statement certified 22
by a compliance officer in accordance 23
with section 117D(c) that the institu-24 8
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tion has reasonably attempted to ob-1
tain such name; 2
‘‘(ii) in the case of a foreign source 3
that is a natural person, each country of 4
citizenship of such person, or, if no such 5
country is known, the principal country of 6
residence of such person; 7
‘‘(iii) in the case of a foreign source 8
that is a legal entity, the country in which 9
such entity is incorporated, or, if such in-10
formation is not available, the principal 11
place of business of such entity; 12
‘‘(iv) the physical mailing address of 13
such foreign source, or, if such address is 14
not available, a statement certified by a 15
compliance officer in accordance with sec-16
tion 117D(c) that the institution has rea-17
sonably attempted to obtain such address; 18
and 19
‘‘(v) any affiliation of the foreign 20
source to an organization that is des-21
ignated as a foreign terrorist organization 22
pursuant to section 219 of the Immigra-23
tion and Nationality Act (8 U.S.C. 1189). 24 9
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‘‘(D) With respect to a contract entered 1
into with a foreign source that is a foreign 2
country of concern or a foreign entity of con-3
cern— 4
‘‘(i) a complete and unredacted copy 5
of the original contract, and if such origi-6
nal contract is not in English, a translated 7
copy in accordance with subsection (c); 8
‘‘(ii) a copy of the waiver received 9
under section 117A for such contract; and 10
‘‘(iii) the statement submitted by the 11
institution for purposes of receiving such a 12
waiver under section 117A(b)(2). 13
‘‘(E) With respect to a gift received from 14
a foreign source that is a foreign country of 15
concern or a foreign entity of concern, an as-16
surance that the institution will— 17
‘‘(i) in a case in which the institution 18
received documentation relating to such 19
gift, maintain such documentation until 20
the latest of— 21
‘‘(I) the date that is 5 years after 22
the date such gift was received by the 23
institution; or 24 10
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‘‘(II) the last day of any period 1
that applicable State law requires a 2
copy of such documentation to be 3
maintained; and 4
‘‘(ii) upon request of the Secretary 5
during an investigation under section 6
117D(a)(1), produce such documentation; 7
‘‘(2) F
OREIGN SOURCE OWNERSHIP OR CON -8
TROL.—Each report to the Secretary required under 9
subsection (a)(2) shall contain— 10
‘‘(A) the information required under para-11
graph (1) of this subsection; 12
‘‘(B) the legal name and the mailing ad-13
dress of the foreign source that substantially 14
controls the institution as described in such 15
subsection; 16
‘‘(C) the date on which the foreign source 17
assumed such substantial control; and 18
‘‘(D) any changes in program or structure 19
of the institution of higher education resulting 20
from such substantial control. 21
‘‘(c) T
RANSLATIONREQUIREMENTS.—Any informa-22
tion required to be disclosed under this section, or re-23
quested by the Secretary pursuant to an investigation 24
under section 117D(a)(1), with respect to a gift or con-25 11
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tract that is not in English shall be translated into 1
English, for purposes of such disclosure or such investiga-2
tion, by a person that is not— 3
‘‘(1) a foreign source that awarded such gift or 4
entered into such contract; or 5
‘‘(2) any other foreign source from an attrib-6
utable country of a foreign source referred to in 7
paragraph (1). 8
‘‘(d) P
UBLICINSPECTION.— 9
‘‘(1) D
ATABASE REQUIREMENT .—Beginning not 10
later than May 31 of the calendar year following the 11
date of enactment of the DETERRENT Act, the 12
Secretary shall— 13
‘‘(A) establish and maintain a searchable 14
database on a website of the Department, under 15
which all reports submitted under this section 16
(including, to the extent practicable, any report 17
submitted under this section before the date of 18
enactment of the DETERRENT Act)— 19
‘‘(i) are made publicly available (in 20
electronic and downloadable format), in-21
cluding any information provided in such 22
reports (other than the information prohib-23
ited from being publicly disclosed pursuant 24
to paragraph (2)); 25 12
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‘‘(ii) can be individually identified and 1
compared; and 2
‘‘(iii) to the extent practicable, are 3
searchable and sortable— 4
‘‘(I) by the institution that filed 5
such report; 6
‘‘(II) by the date on which the in-7
stitution filed such report; 8
‘‘(III) by the date on which the 9
institution received the gift which is 10
the subject of the report; 11
‘‘(IV) by the date on which the 12
institution enters into the contract 13
which is the subject of the report; 14
‘‘(V) by the date on which such 15
contract first takes effect; 16
‘‘(VI) by the attributable country 17
of such gift or contract; 18
‘‘(VII) by the name of the foreign 19
source; 20
‘‘(VIII) by the information de-21
scribed in subparagraph (C)(i); and 22
‘‘(IX) by the information de-23
scribed in subparagraph (C)(ii); 24 13
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‘‘(B) not later than 30 days after receipt 1
of a disclosure report under this section, include 2
such report in such database; 3
‘‘(C) indicate, as part of the public record 4
of a report included in such database, whether 5
the report is with respect to a gift received 6
from, or a contract entered into with— 7
‘‘(i) a foreign source that is a foreign 8
government; or 9
‘‘(ii) a foreign source that is not a for-10
eign government; and 11
‘‘(D) with respect to a disclosure report 12
that does not include the name or address of a 13
foreign source, indicate, as part of the public 14
record of such report included in such database, 15
that such report did not include such informa-16
tion. 17
‘‘(2) A
PPLICATION OF FEDERAL PRIVACY LAW ; 18
PROTECTIONS FOR NATURAL PERSONS .— 19
‘‘(A) A
PPLICATION OF FEDERAL PRIVACY 20
LAW.—Except as provided in subparagraph (B), 21
a disclosure report filed pursuant to this section 22
is not subject to Federal privacy law (including 23
any exemption from disclosure described in sec-24
tion 552(b) of title 5, United States Code)). 25 14
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‘‘(B) PROTECTIONS FOR NATURAL PER -1
SONS.— 2
‘‘(i) I
N GENERAL.—Except as pro-3
vided in clause (ii), with respect to a dis-4
closure report filed under this section, the 5
name or address (other than the attrib-6
utable country) of a foreign source that is 7
a natural person— 8
‘‘(I) may not be publicly dis-9
closed; and 10
‘‘(II) is exempt from disclosure 11
under subsection (b)(3) of section 552 12
of title 5, United States Code (com-13
monly referred to as the Freedom of 14
Information Act). 15
‘‘(ii) E
XCEPTIONS FOR CONTRACTS 16
WITH A FOREIGN COUNTRY OF CONCERN 17
OR FOREIGN ENTITY OF CONCERN .— 18
Clause (i) shall not apply to a disclosure 19
report filed pursuant to this section that 20
contains information with respect to a con-21
tract described in subsection (a)(1)(B)(ii) 22
entered into with a foreign country of con-23
cern or foreign entity of concern. 24 15
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‘‘(e) INTERAGENCY INFORMATION SHARING.—Not-1
withstanding any other provision of law, not later than 2
30 days after receiving a disclosure report from an institu-3
tion in compliance with this section, the Secretary shall 4
transmit an unredacted copy of such report (including the 5
name and address of a foreign source disclosed in such 6
report) to the Director of the Federal Bureau of Investiga-7
tion, the Director of National Intelligence, the Director 8
of the Central Intelligence Agency, the Secretary of State, 9
the Secretary of Defense, the Attorney General, the Sec-10
retary of Commerce, the Secretary of Homeland Security, 11
the Secretary of Energy, the Director of the National 12
Science Foundation, and the Director of the National In-13
stitutes of Health. 14
‘‘(f) D
EFINITIONS.—In this section: 15
‘‘(1) A
FFILIATED ENTITY.—The term ‘affiliated 16
entity’, when used with respect to an institution, 17
means an entity or organization that operates pri-18
marily for the benefit of, or under the auspices of, 19
such institution, such as a foundation of the institu-20
tion, or an educational, cultural, or language entity. 21
‘‘(2) A
TTRIBUTABLE COUNTRY .—The term ‘at-22
tributable country’ means— 23
‘‘(A) the country of citizenship of a foreign 24
source who is a natural person, or, if such 25 16
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country is unknown, the principal residence of 1
such foreign source; or 2
‘‘(B) the country of incorporation of a for-3
eign source that is a legal entity, or, if such 4
country is unknown, the principal place of busi-5
ness (as applicable) of such foreign source. 6
‘‘(3) C
ONTRACT.—The term ‘contract’— 7
‘‘(A) means— 8
‘‘(i) any agreement for the acquisition 9
by purchase, lease, or barter of property 10
(including intellectual property) or services 11
by the foreign source; 12
‘‘(ii) except as provided in subpara-13
graph (B)(ii), any agreement for the acqui-14
sition by purchase, lease, or barter of prop-15
erty (including intellectual property) or 16
services from a foreign source; and 17
‘‘(iii) any affiliation, agreement, or 18
similar transaction with a foreign source 19
that involves the use or exchange of an in-20
stitution’s name, likeness, time, services, or 21
resources; and 22
‘‘(B) does not include— 23
‘‘(i) an agreement made between an 24
institution and a foreign source regarding 25 17
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any payment of one or more elements of a 1
student’s cost of attendance (as such term 2
is defined in section 472), unless such an 3
agreement is made for more than 15 stu-4
dents or is made under a restricted or con-5
ditional contract; 6
‘‘(ii) an arms-length agreement for 7
the acquisition by purchase, lease, or bar-8
ter of property (including intellectual prop-9
erty) or services from a foreign source that 10
is not a foreign country of concern or a 11
foreign entity of concern; or 12
‘‘(iii) any assignment or license of a 13
granted intellectual property right (includ-14
ing a patent, trademark, or copyright) that 15
is not associated with a category listed in 16
the Commerce Control List maintained by 17
the Bureau of Industry and Security of the 18
Department of Commerce and set forth in 19
Supplement No. 1 to part 774 of title 15, 20
Code of Federal Regulations (or successor 21
regulations). 22
‘‘(4) F
OREIGN SOURCE.—The term ‘foreign 23
source’ means— 24 18
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‘‘(A) a foreign government, including an 1
agency of a foreign government; 2
‘‘(B) a legal entity, governmental or other-3
wise, created under the laws of a foreign state 4
or states; 5
‘‘(C) a legal entity, governmental or other-6
wise, substantially controlled (as described in 7
section 668.174(c)(3) of title 34, Code of Fed-8
eral Regulations) (or successor regulations)) by 9
a foreign source; 10
‘‘(D) a natural person who is not a citizen 11
or a national of the United States or a trust 12
territory or protectorate thereof; 13
‘‘(E) an international organization (as 14
such term is defined in the International Orga-15
nizations Immunities Act (22 U.S.C. 288)); 16
‘‘(F) a person who is an agent of a foreign 17
principal (as such term is defined in section 1 18
of the Foreign Agents Registration Act of 1938 19
(22 U.S.C. 611)); and 20
‘‘(G) an agent of any of the entities de-21
scribed in subparagraphs (A) through (F), in-22
cluding— 23 19
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‘‘(i) a subsidiary or affiliate of a for-1
eign legal entity, acting on behalf of such 2
an entity; and 3
‘‘(ii) a person that operates primarily 4
for the benefit of, or under the auspices of, 5
such an entity, such as a foundation of 6
such entity, or an educational, cultural, or 7
language entity. 8
‘‘(5) G
IFT.—The term ‘gift’— 9
‘‘(A) means any gift of money, property 10
(including intellectual property), resources, 11
staff, or services; and 12
‘‘(B) does not include— 13
‘‘(i) any payment of one or more ele-14
ments of a student’s cost of attendance (as 15
such term is defined in section 472) to an 16
institution by, or scholarship from, a for-17
eign source who is a natural person, acting 18
in their individual capacity and not as an 19
agent for, at the request or direction of, or 20
on behalf of, any person or entity (except 21
the student), made for not more than 15 22
students, and that is not made under a re-23
stricted or conditional contract with such 24
foreign source; 25 20
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‘‘(ii) any assignment or license of a 1
granted intellectual property right (includ-2
ing a patent, trademark, or copyright) that 3
is not associated with a category listed in 4
the Commerce Control List maintained by 5
the Bureau of Industry and Security of the 6
Department of Commerce and set forth in 7
Supplement No. 1 to part 774 of title 15, 8
Code of Federal Regulations (or successor 9
regulations); or 10
‘‘(iii) decorations (as such term is de-11
fined in section 7342(a) of title 5, United 12
States Code). 13
‘‘(6) R
ESTRICTED OR CONDITIONAL GIFT OR 14
CONTRACT.—The term ‘restricted or conditional gift 15
or contract’ means any endowment, gift, grant, con-16
tract, award, present, or property (including intellec-17
tual property) of any kind which includes provisions 18
regarding— 19
‘‘(A) the employment, assignment, or ter-20
mination of faculty; 21
‘‘(B) the establishment of, or the provision 22
of funding for, departments, centers, institutes, 23
instructional programs, research or lecture pro-24
grams, or new faculty positions; 25 21
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‘‘(C) the selection, admission, or education 1
of students; or 2
‘‘(D) the award of grants, loans, scholar-3
ships, fellowships, or other forms of financial 4
aid restricted to students of a specified country, 5
religion, sex, ethnic origin, or political opin-6
ion.’’. 7
(b) P
ROHIBITION ON CONTRACTSWITHCERTAIN 8
F
OREIGNENTITIES ANDCOUNTRIES.—Part B of title I 9
of the Higher Education Act of 1965 (20 U.S.C. 1011 10
et seq.) is amended by inserting after section 117 the fol-11
lowing: 12
‘‘SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN 13
FOREIGN ENTITIES AND COUNTRIES. 14
‘‘(a) I
NGENERAL.—An institution shall not enter 15
into a contract with a foreign country of concern or a for-16
eign entity of concern. 17
‘‘(b) W
AIVERS.— 18
‘‘(1) I
N GENERAL.—A waiver issued under this 19
section to an institution with respect to a contract 20
shall only— 21
‘‘(A) waive the prohibition under sub-22
section (a) for a 1-year period; and 23 22
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‘‘(B) apply to the terms and conditions of 1
the proposed contract submitted as part of the 2
request for such waiver. 3
‘‘(2) S
UBMISSION.— 4
‘‘(A) F
IRST WAIVER REQUESTS.— 5
‘‘(i) I
N GENERAL.—An institution 6
that desires to enter into a contract with 7
a foreign entity of concern or a foreign 8
country of concern may submit to the Sec-9
retary, not later than 120 days before the 10
institution enters into such a contract, a 11
request to waive the prohibition under sub-12
section (a) with respect to such contract. 13
‘‘(ii) C
ONTENTS OF WAIVER RE -14
QUEST.—A waiver request submitted by an 15
institution under clause (i) shall include— 16
‘‘(I) the complete and unredacted 17
text of the proposed contract for 18
which the waiver is being requested, 19
and if such original contract is not in 20
English, a translated copy of the text 21
into English (in a manner that com-22
plies with section 117(c)); and 23
‘‘(II) a statement that— 24 23
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‘‘(aa) is certified by a com-1
pliance officer of the institution 2
designated in accordance with 3
section 117D(c); and 4
‘‘(bb) includes information 5
that demonstrates that such con-6
tract— 7
‘‘(AA) is for the benefit 8
of the institution’s mission 9
and students; and 10
‘‘(BB) will promote the 11
security, stability, and eco-12
nomic vitality of the United 13
States. 14
‘‘(B) R
ENEWAL WAIVER REQUESTS .— 15
‘‘(i) I
N GENERAL.—An institution 16
that, pursuant to a waiver issued under 17
this section, has entered into a contract, 18
the term of which is longer than the 1-year 19
waiver period and the terms and conditions 20
of which remain the same as the proposed 21
contract submitted as part of the request 22
for such waiver may submit, not later than 23
120 days before the expiration of such 24
waiver period, a request for a renewal of 25 24
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such waiver for an additional 1-year period 1
(which shall include any information re-2
quested by the Secretary). 3
‘‘(ii) T
ERMINATION.—If the institu-4
tion fails to submit a request under clause 5
(i) or is not granted a renewal under such 6
clause, such institution shall terminate 7
such contract on the last day of the origi-8
nal 1-year waiver period. 9
‘‘(3) W
AIVER ISSUANCE.—The Secretary— 10
‘‘(A) not later than 60 days before an in-11
stitution enters into a contract pursuant to a 12
waiver request under paragraph (2)(A), or be-13
fore a contract described in paragraph (2)(B)(i) 14
is renewed pursuant to a renewal request under 15
such paragraph, shall notify the institution— 16
‘‘(i) if the waiver or renewal will be 17
issued by the Secretary; and 18
‘‘(ii) in a case in which the waiver or 19
renewal will be issued, the date on which 20
the 1-year waiver period starts; and 21
‘‘(B) may only issue a waiver under this 22
section to an institution if the Secretary deter-23
mines, in consultation with each individual list-24 25
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ed in section 117(e), that the contract for which 1
the waiver is being requested— 2
‘‘(i) is for the benefit of the institu-3
tion’s mission and students; and 4
‘‘(ii) will promote the security, sta-5
bility, and economic vitality of the United 6
States. 7
‘‘(4) D
ISCLOSURE.—Not less than 2 weeks 8
prior to issuing a waiver under paragraph (2), the 9
Secretary shall notify the authorizing committees of 10
the intent to issue the waiver, including a justifica-11
tion for the waiver. 12
‘‘(c) D
ESIGNATIONDURINGCONTRACTTERM.—In 13
the case of an institution that enters into a contract with 14
a foreign source that is not a foreign country of concern 15
or a foreign entity of concern but which, during the term 16
of such contract, is designated as a foreign country of con-17
cern or foreign entity of concern, such institution shall ter-18
minate such contract not later than 60 days after the Sec-19
retary notifies the institution of such designation. 20
‘‘(d) C
ONTRACTSPRIOR TODATE OFENACTMENT.— 21
‘‘(1) I
N GENERAL.—In the case of an institu-22
tion that has entered into a contract with a foreign 23
country of concern or foreign entity of concern prior 24 26
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to the date of enactment of the DETERRENT 1
Act— 2
‘‘(A) the institution shall as soon as prac-3
ticable, but not later than 30 days after such 4
date of enactment, submit to the Secretary a 5
waiver request in accordance with clause (ii) of 6
subsection (b)(2)(A); and 7
‘‘(B) the Secretary shall, upon receipt of 8
the request submitted under such clause, issue 9
a waiver to the institution for a period begin-10
ning on the date on which the waiver is issued 11
and ending on the sooner of— 12
‘‘(i) the date that is 1 year after the 13
date of enactment of the DETERRENT 14
Act; or 15
‘‘(ii) the date on which the contract 16
terminates. 17
‘‘(2) R
ENEWAL.—An institution that has en-18
tered into a contract described in paragraph (1), the 19
term of which is longer than the waiver period de-20
scribed in subparagraph (B) of such paragraph and 21
the terms and conditions of which remain the same 22
as the contract submitted as part of the request re-23
quired under subparagraph (A) of such paragraph, 24
may submit a request for renewal of the waiver 25 27
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issued under such paragraph in accordance with 1
subsection (b)(2)(B). 2
‘‘(e) C
ONTRACTDEFINED.—The term ‘contract’ has 3
the meaning given such term in section 117(f).’’. 4
(c) I
NTERAGENCY INFORMATION SHARING.—Not-5
withstanding any other provision of law, not later than 6
90 days after the date of enactment of this Act, the Sec-7
retary of Education shall transmit to each individual listed 8
in section 117(e) of the Higher Education Act of 1965, 9
as amended by this Act— 10
(1) an unredacted copy of each report (includ-11
ing the name and address of a foreign source dis-12
closed in such report) received by the Department of 13
Education under section 117 of the Higher Edu-14
cation Act of 1965 (20 U.S.C. 1011f) prior to the 15
date of enactment of this Act); and 16
(2) any report, document, or other record gen-17
erated by the Department of Education in the 18
course of an investigation— 19
(A) of an institution with respect to the 20
compliance of such institution with such sec-21
tion; and 22
(B) initiated prior to the date of enactment 23
of this Act. 24 28
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SEC. 3. POLICY REGARDING CONFLICTS OF INTEREST 1
FROM FOREIGN GIFTS AND CONTRACTS. 2
The Higher Education Act of 1965 (20 U.S.C. 1001 3
et seq.), as amended by the preceding section, is further 4
amended by inserting after section 117A the following: 5
‘‘SEC. 117B. INSTITUTIONAL POLICY REGARDING FOREIGN 6
GIFTS AND CONTRACTS TO FACULTY AND 7
STAFF. 8
‘‘(a) R
EQUIREMENT TO MAINTAINPOLICY AND 9
D
ATABASE.—Beginning not later than 90 days after the 10
date of enactment of the DETERRENT Act, each institu-11
tion described in subsection (b) shall maintain— 12
‘‘(1) a policy requiring covered individuals at 13
the institution and covered individuals at affiliated 14
entities of the institution to disclose in a report to 15
such institution by July 31 of each calendar year 16
that begins after the year in which such enactment 17
date occurs— 18
‘‘(A) any gift received from a foreign 19
source in the previous calendar year, the value 20
of which is greater than the minimal value (as 21
such term is defined in section 7342(a) of title 22
5, United States Code) or is of indeterminate 23
value, and including the date on which the gift 24
was received; 25 29
•HR 1048 EH
‘‘(B) any contract with a foreign source 1
(other than a foreign country of concern or for-2
eign entity of concern) entered into or in effect 3
during the previous calendar year, the value of 4
which is $5,000 or more, considered alone or in 5
combination with all other contracts with that 6
foreign source within the calendar year, and in-7
cluding the date on which such contract is en-8
tered into, the date on which the contract first 9
takes effect, and, as applicable, the date on 10
which such contract terminates; 11
‘‘(C) any contract with a foreign source 12
(other than a foreign country of concern or for-13
eign entity of concern) entered into or in effect 14
during the previous calendar year that has an 15
indeterminate monetary value, and including 16
the date on which such contract is entered into, 17
the date on which the contract first takes ef-18
fect, and, as applicable, the date on which such 19
contract terminates; and 20
‘‘(D) any contract entered into or in effect 21
with a foreign country of concern or foreign en-22
tity of concern during the previous calendar 23
year, the value of which is $0 or more or which 24 30
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has an indeterminate monetary value, and in-1
cluding— 2
‘‘(i) the date on which such contract 3
is entered into; 4
‘‘(ii) the date on which the contract 5
first takes effect; 6
‘‘(iii) if the contract has a termination 7
date, such termination date; and 8
‘‘(iv) the full text of such contract and 9
any addenda; 10
‘‘(2) a publicly available and searchable data-11
base (in electronic and downloadable format), on a 12
website of the institution, of the information re-13
quired to be disclosed under paragraph (1) (other 14
than the information prohibited from public disclo-15
sure pursuant to subsection (c)) that— 16
‘‘(A) makes available the information dis-17
closed under paragraph (1) (other than the in-18
formation prohibited from public disclosure pur-19
suant to subsection (c)) beginning on the date 20
that is 30 days after receipt of the report under 21
such paragraph containing such information 22
and until the latest of— 23
‘‘(i) the date that is 5 years after the 24
date on which— 25 31
•HR 1048 EH
‘‘(I) a gift referred to in para-1
graph (1)(A) is received; or 2
‘‘(II) a contract referred to in 3
subparagraph (B), (C) or (D) of para-4
graph (1) first takes effect; 5
‘‘(ii) the date on which a contract re-6
ferred to in subparagraph (B), (C) or (D) 7
of paragraph (1) terminates; or 8
‘‘(iii) the last day of any period that 9
applicable State law requires a copy of 10
such contract to be maintained; and 11
‘‘(B) is searchable and sortable— 12
‘‘(i) if the subject of the disclosure is 13
a gift, by the date on which the gift is re-14
ceived; 15
‘‘(ii) if the subject of the disclosure is 16
a contract— 17
‘‘(I) by the date on which such 18
contract is entered into; and 19
‘‘(II) by the date on which such 20
contract first takes effect; 21
‘‘(iii) by the attributable country with 22
respect to which information is being dis-23
closed; 24 32
•HR 1048 EH
‘‘(iv)(I) if the covered individual at an 1
institution is making the disclosure, by the 2
most specific division of the institution 3
(such as the department, school, or college) 4
that the covered individual is at; and 5
‘‘(II) if the covered individual at the 6
affiliated entity of the institution is making 7
the disclosure, by the name of such affili-8
ated entity; 9
‘‘(v) by the name of the foreign 10
source; and 11
‘‘(3) an effective plan to identify and manage 12
potential information gathering by foreign sources 13
through espionage targeting covered individuals that 14
may arise from gifts received from, or contracts en-15
tered into with, a foreign source, including through 16
the use of— 17
‘‘(A) periodic communications; 18
‘‘(B) accurate reporting under paragraph 19
(2) of the information required to be disclosed 20
under paragraph (1); and 21
‘‘(C) enforcement of the policy described in 22
paragraph (1); and 23
‘‘(4) for purposes of investigations under sec-24
tion 117D(a)(1), a record of the name of each indi-25 33
•HR 1048 EH
vidual who makes a disclosure under paragraph (1) 1
and each report disclosed under such paragraph. 2
‘‘(b) I
NSTITUTIONS.—An institution shall be subject 3
to the requirements of this section if such institution— 4
‘‘(1) received more than $50,000,000 in Fed-5
eral funds in any of the previous five calendar years 6
to support (in whole or in part) research and devel-7
opment (as determined by the institution and meas-8
ured by the Higher Education Research and Devel-9
opment Survey of the National Center for Science 10
and Engineering Statistics); or 11
‘‘(2) receives funds under title VI. 12
‘‘(c) A
PPLICATION OFFEDERALPRIVACYLAW; PRO-13
TECTIONS FORNATURALPERSONS.— 14
‘‘(1) A
PPLICATION OF FEDERAL PRIVACY 15
LAW.—Except as provided in paragraph (2), a dis-16
closure made pursuant to this section is not subject 17
to Federal privacy law. 18
‘‘(2) P
ROTECTIONS FOR NATURAL PERSONS .— 19
‘‘(A) I
N GENERAL.—Except as provided in 20
subparagraph (B), with respect to a disclosure 21
made pursuant to this section, the following 22
may not be publicly disclosed: 23 34
•HR 1048 EH
‘‘(i) The name or address (other than 1
the attributable country) of a foreign 2
source that is a natural person. 3
‘‘(ii) The name or any other person-4
ally identifiable information of a covered 5
individual making such disclosure. 6
‘‘(B) E
XCEPTIONS FOR CONTRACTS WITH 7
A FOREIGN COUNTRY OF CONCERN OR FOREIGN 8
ENTITY OF CONCERN .—Subparagraph (A) shall 9
not apply to a disclosure made pursuant to this 10
section that contains information with respect 11
to a contract entered into with a foreign coun-12
try of concern or foreign entity of concern. 13
‘‘(d) D
EFINITIONS.—In this section— 14
‘‘(1) the terms ‘affiliated entity’, ‘attributable 15
country’, ‘foreign source’, and ‘gift’ have the mean-16
ings given such terms in section 117(f); 17
‘‘(2) the term ‘contract’— 18
‘‘(A) means— 19
‘‘(i) any agreement for the acquisition 20
by purchase, lease, or barter of property 21
(including intellectual property) or services 22
by the foreign source; 23
‘‘(ii) except as provided in subpara-24
graph (B), any agreement for the acquisi-25 35
•HR 1048 EH
tion by purchase, lease, or barter of prop-1
erty (including intellectual property) or 2
services from a foreign source; and 3
‘‘(iii) any affiliation, agreement, or 4
similar transaction with a foreign source 5
that involves the use or exchange of a cov-6
ered individual’s name, likeness, time, serv-7
ices, or resources; and 8
‘‘(B) does not include— 9
‘‘(i) an arms-length agreement for the 10
acquisition by purchase, lease, or barter of 11
property (including intellectual property) 12
or services from a foreign source that is 13
not a foreign country of concern or a for-14
eign entity of concern; and 15
‘‘(ii) any assignment or license of a 16
granted intellectual property right (includ-17
ing a patent, trademark, or copyright) that 18
is not associated with a category listed in 19
the Commerce Control List maintained by 20
the Bureau of Industry and Security of the 21
Department of Commerce and set forth in 22
Supplement No. 1 to part 774 of title 15, 23
Code of Federal Regulations (or successor 24
regulations); and 25 36
•HR 1048 EH
‘‘(3) the term ‘covered individual’— 1
‘‘(A) has the meaning given such term in 2
section 223(d) of the William M. (Mac) Thorn-3
berry National Defense Authorization Act for 4
Fiscal Year 2021 (42 U.S.C. 6605); and 5
‘‘(B) shall be interpreted in accordance 6
with the Guidance for Implementing National 7
Security Presidential Memorandum 33 (NSPM– 8
33) on National Security Strategy for United 9
States Government-Supported Research and 10
Development published by the Subcommittee on 11
Research Security and the Joint Committee on 12
the Research Environment in January 2022 (or 13
any successor guidance).’’. 14
SEC. 4. INVESTMENT DISCLOSURE REPORT. 15
The Higher Education Act of 1965 (20 U.S.C. 1001 16
et seq.), as amended by this Act, is further amended by 17
inserting after section 117B the following: 18
‘‘SEC. 117C. INVESTMENT DISCLOSURE REPORT. 19
‘‘(a) I
NVESTMENTDISCLOSUREREPORT.—A speci-20
fied institution shall file a disclosure report in accordance 21
with subsection (b) with the Secretary on each July 31 22
immediately following any calendar year in which the spec-23
ified institution purchases, sells, or holds (directly or indi-24 37
•HR 1048 EH
rectly through any chain of ownership) one or more invest-1
ments of concern. 2
‘‘(b) C
ONTENTS OF REPORT.—Each report to the 3
Secretary required by subsection (a) shall contain, with 4
respect to the calendar year preceding the calendar year 5
in which such report is filed, the following information: 6
‘‘(1) A list of the investments of concern pur-7
chased, sold, or held during such calendar year. 8
‘‘(2) The aggregate fair market value of all in-9
vestments of concern held as of the close of such cal-10
endar year. 11
‘‘(3) The combined value of all investments of 12
concern sold over the course of such calendar year, 13
as measured by the fair market value of such invest-14
ments at the time of the sale. 15
‘‘(4) The combined value of all capital gains 16
from such sales of investments of concern. 17
‘‘(c) T
REATMENT OF CERTAINPOOLEDINVEST-18
MENTS.— 19
‘‘(1) P
OOLED INVESTMENT CLASSIFICATION .— 20
‘‘(A) I
N GENERAL.—For purposes of this 21
section, except as provided in subparagraph 22
(B), a specified interest acquired by a specified 23
institution in a regulated investment company, 24
exchange traded fund, or any other pooled in-25 38
•HR 1048 EH
vestment that holds an investment of concern 1
shall be treated as an investment of concern 2
and shall be reported pursuant to paragraph 3
(2)(A). 4
‘‘(B) C
ERTIFICATION OF POOLED INVEST -5
MENT.—Notwithstanding subparagraph (A), 6
such specified interest shall not be subject to 7
subparagraph (A) if the Secretary certifies, pur-8
suant to paragraph (2)(B), that such pooled in-9
vestment is not holding an investment of con-10
cern. 11
‘‘(2) P
ROCEDURES.—The Secretary, after con-12
sultation with the Secretary of the Treasury and the 13
Securities and Exchange Commission, shall establish 14
procedures under which a pooled investment de-15
scribed in paragraph (1)— 16
‘‘(A) shall be reported in accordance with 17
the requirements of subsection (b); and 18
‘‘(B) may be certified under paragraph 19
(1)(B) as not holding an investment of concern. 20
‘‘(d) T
REATMENT OF RELATEDORGANIZATIONS.— 21
For purposes of this section, assets held by any related 22
organization (as defined in section 4968(d)(2) of the In-23
ternal Revenue Code of 1986) with respect to a specified 24 39
•HR 1048 EH
institution shall be treated as held by such specified insti-1
tution, except that— 2
‘‘(1) such assets shall not be taken into account 3
with respect to more than 1 specified institution; 4
and 5
‘‘(2) unless such organization is controlled by 6
such institution or is described in section 509(a)(3) 7
of the Internal Revenue Code of 1986 with respect 8
to such institution, assets which are not intended or 9
available for the use or benefit of such specified in-10
stitution shall not be taken into account. 11
‘‘(e) V
ALUATION OFDEBT.—For purposes of this 12
section, the fair market value of any debt shall be the out-13
standing principal amount of such debt. 14
‘‘(f) R
EGULATIONS.—The Secretary, after consulta-15
tion with the Secretary of the Treasury and the Securities 16
and Exchange Commission, may issue such regulations or 17
other guidance as may be necessary or appropriate to 18
carry out the purposes of this section, including regula-19
tions or other guidance providing for the proper applica-20
tion of this section with respect to certain regulated invest-21
ment companies, exchange traded funds, and pooled in-22
vestments. 23
‘‘(g) D
ATABASEREQUIREMENT.—Beginning not 24
later than May 31 of the calendar year following the date 25 40
•HR 1048 EH
of enactment of the DETERRENT Act, the Secretary 1
shall— 2
‘‘(1) establish and maintain a searchable data-3
base on a website of the Department, under which 4
all reports submitted under this section— 5
‘‘(A) are made publicly available (in elec-6
tronic and downloadable format), including any 7
information provided in such reports; 8
‘‘(B) can be individually identified and 9
compared; and 10
‘‘(C) are searchable and sortable; and 11
‘‘(2) not later than 30 days after receipt of a 12
disclosure report under this section, include such re-13
port in such database. 14
‘‘(h) D
EFINITIONS.—In this section: 15
‘‘(1) I
NVESTMENT OF CONCERN .— 16
‘‘(A) I
N GENERAL.—The term ‘investment 17
of concern’ means any specified interest with 18
respect to any of the following: 19
‘‘(i) A foreign country of concern. 20
‘‘(ii) A foreign entity of concern. 21
‘‘(B) S
PECIFIED INTEREST .—The term 22
‘specified interest’ means, with respect to any 23
entity— 24 41
•HR 1048 EH
‘‘(i) stock or any other equity or prof-1
its interest of such entity; 2
‘‘(ii) debt issued by such entity; and 3
‘‘(iii) any contract or derivative with 4
respect to any property described in clause 5
(i) or (ii). 6
‘‘(2) S
PECIFIED INSTITUTION.— 7
‘‘(A) I
N GENERAL.—The term ‘specified 8
institution’, as determined with respect to any 9
calendar year, means an institution that— 10
‘‘(i) is not a public institution; and 11
‘‘(ii) at the close of such calendar 12
year, holds— 13
‘‘(I) assets (other than those as-14
sets which are used directly in car-15
rying out the institution’s exempt pur-16
pose) the aggregate fair market value 17
of which is in excess of 18
$6,000,000,000; and 19
‘‘(II) investments of concern the 20
aggregate fair market value of which 21
is in excess of $250,000,000. 22
‘‘(B) R
EFERENCES TO CERTAIN TERMS .— 23
For the purpose of applying the definition 24
under subparagraph (A), the terms ‘aggregate 25 42
•HR 1048 EH
fair market value’ and ‘assets which are used 1
directly in carrying out the institution’s exempt 2
purpose’ shall be applied in the same manner as 3
such terms are applied for the purposes of sec-4
tion 4968(b)(1)(D) of the Internal Revenue 5
Code of 1986.’’. 6
SEC. 5. ENFORCEMENT AND OTHER GENERAL PROVISIONS. 7
(a) E
NFORCEMENT AND OTHERGENERALPROVI-8
SIONS.—The Higher Education Act of 1965 (20 U.S.C. 9
1001 et seq.), as amended by this Act, is further amended 10
by inserting after section 117C the following: 11
‘‘SEC. 117D. ENFORCEMENT; SINGLE POINT-OF-CONTACT; 12
INSTITUTIONAL REQUIREMENTS. 13
‘‘(a) E
NFORCEMENT.— 14
‘‘(1) I
NVESTIGATION.—The Secretary (acting 15
through the General Counsel of the Department) 16
shall conduct investigations of possible violations of 17
sections 117, 117A, 117B, 117C, and subsection (c) 18
of this section by institutions and, whenever it ap-19
pears that an institution has knowingly or willfully 20
failed to comply with a requirement of any of such 21
provisions (including any rule or regulation promul-22
gated under any such provision), shall request that 23
the Attorney General bring a civil action in accord-24
ance with paragraph (2). 25 43
•HR 1048 EH
‘‘(2) CIVIL ACTION.—Whenever it appears that 1
an institution has knowingly or willfully failed to 2
comply with a requirement of any of the provisions 3
listed in paragraph (1) (including any rule or regula-4
tion promulgated under any such provision) based 5
on an investigation under such paragraph, a civil ac-6
tion shall be brought by the Attorney General, at the 7
request of the Secretary, in an appropriate district 8
court of the United States, or the appropriate 9
United States court of any territory or other place 10
subject to the jurisdiction of the United States, to 11
request such court to compel compliance with the re-12
quirement of the provision that has been violated. 13
‘‘(3) C
OSTS AND OTHER FINES .—An institution 14
that is compelled to comply with a requirement of a 15
provision listed in paragraph (1) pursuant to para-16
graph (2) shall— 17
‘‘(A) pay to the Treasury of the United 18
States the full costs to the United States of ob-19
taining compliance with the requirement of such 20
provision, including all associated costs of inves-21
tigation and enforcement; and 22
‘‘(B) if applicable, be subject to the appli-23
cable fines described in paragraph (4). 24 44
•HR 1048 EH
‘‘(4) FINES FOR VIOLATIONS .—The Secretary 1
shall impose a fine on an institution that is com-2
pelled to comply with a requirement of a section list-3
ed in paragraph (1) pursuant to paragraph (2) as 4
follows: 5
‘‘(A) S
ECTION 117.— 6
‘‘(i) F
IRST-TIME VIOLATIONS.—In the 7
case of an institution that is compelled to 8
comply with a requirement of section 117 9
pursuant to a civil action described in 10
paragraph (2), and that has not previously 11
been compelled to comply with any such 12
requirement pursuant to such a civil ac-13
tion, the Secretary shall impose a fine on 14
the institution for such violation as follows: 15
‘‘(I) In the case of an institution 16
that knowingly or willfully fails to 17
comply with a reporting requirement 18
under subsection (a)(1) of section 19
117, such fine shall be in an amount 20
that is— 21
‘‘(aa) for each gift or con-22
tract with determinable value 23
that is the subject of such a fail-24
ure to comply, the greater of— 25 45
•HR 1048 EH
‘‘(AA) $50,000; or 1
‘‘(BB) the monetary 2
value of such gift or con-3
tract; or 4
‘‘(bb) for each gift or con-5
tract of no value or of indeter-6
minable value, not less than 1 7
percent and not more than 10 8
percent of the total amount of 9
Federal funds received by the in-10
stitution under this Act for the 11
most recent fiscal year. 12
‘‘(II) In the case of an institution 13
that knowingly or willfully fails to 14
comply with the reporting requirement 15
under subsection (a)(2) of section 16
117, such fine shall be in an amount 17
that is not less than 10 percent of the 18
total amount of Federal funds re-19
ceived by the institution under this 20
Act for the most recent fiscal year. 21
‘‘(ii) S
UBSEQUENT VIOLATIONS .—In 22
the case of an institution that has pre-23
viously been compelled to comply with a re-24
quirement of section 117 pursuant to a 25 46
•HR 1048 EH
civil action described in paragraph (2), and 1
is subsequently compelled to comply with 2
such a requirement pursuant to a subse-3
quent civil action described in paragraph 4
(2), the Secretary shall impose a fine on 5
the institution as follows: 6
‘‘(I) In the case of an institution 7
that knowingly or willfully fails to 8
comply with a reporting requirement 9
under subsection (a)(1) of section 10
117, such fine shall be in an amount 11
that is— 12
‘‘(aa) for each gift or con-13
tract with determinable value 14
that is the subject of such a fail-15
ure to comply, the greater of— 16
‘‘(AA) $100,000; or 17
‘‘(BB) twice the mone-18
tary value of such gift or 19
contract; or 20
‘‘(bb) for each gift or con-21
tract of no value or of indeter-22
minable value, not less than 5 23
percent and not more than 10 24
percent of the total amount of 25 47
•HR 1048 EH
Federal funds received by the in-1
stitution under this Act for the 2
most recent fiscal year. 3
‘‘(II) In the case of an institution 4
that knowingly or willfully fails to 5
comply with a reporting requirement 6
under subsection (a)(2) of section 7
117, such fine shall be in an amount 8
that is not less than 20 percent of the 9
total amount of Federal funds re-10
ceived by the institution under this 11
Act for the most recent fiscal year. 12
‘‘(B) S
ECTION 117A.— 13
‘‘(i) F
IRST-TIME VIOLATIONS.—In the 14
case of an institution that is compelled to 15
comply with a requirement of section 117A 16
pursuant to a civil action described in 17
paragraph (2), and that has not previously 18
been compelled to comply with any such 19
requirement pursuant to such a civil ac-20
tion, the Secretary shall impose a fine on 21
the institution in an amount that is not 22
less than 5 percent and not more than 10 23
percent of the total amount of Federal 24 48
•HR 1048 EH
funds received by the institution under this 1
Act for the most recent fiscal year. 2
‘‘(ii) S
UBSEQUENT VIOLATIONS .—In 3
the case of an institution that has pre-4
viously been compelled to comply with a re-5
quirement of section 117A pursuant to a 6
civil action described in paragraph (2), and 7
is subsequently compelled to comply with 8
such a requirement pursuant to a subse-9
quent civil action described in paragraph 10
(2), the Secretary shall impose a fine on 11
the institution in an amount that is not 12
less than 20 percent of the total amount of 13
Federal funds received by the institution 14
under this Act for the most recent fiscal 15
year. 16
‘‘(C) S
ECTION 117B.— 17
‘‘(i) F
IRST-TIME VIOLATIONS.—In the 18
case of an institution that is compelled to 19
comply with a requirement of section 117B 20
pursuant to a civil action described in 21
paragraph (2), and that has not previously 22
been compelled to comply with any such 23
requirement pursuant to such a civil ac-24
tion, the Secretary shall impose a fine on 25 49
•HR 1048 EH
the institution for such violation in an 1
amount that is the greater of— 2
‘‘(I) $250,000; or 3
‘‘(II) the total amount of gifts or 4
contracts that the institution is com-5
pelled to report pursuant to such civil 6
action. 7
‘‘(ii) S
UBSEQUENT VIOLATIONS .—In 8
the case of an institution that has pre-9
viously been compelled to comply with a re-10
quirement of section 117B pursuant to a 11
civil action described in paragraph (2), and 12
is subsequently compelled to comply with 13
such a requirement pursuant to a subse-14
quent civil action described in paragraph 15
(2), the Secretary shall impose a fine on 16
the institution in an amount that is the 17
greater of— 18
‘‘(I) $500,000; or 19
‘‘(II) twice the total amount of 20
gifts or contracts that the institution 21
is compelled to report pursuant to 22
such civil action. 23
‘‘(D) S
ECTION 117C.— 24 50
•HR 1048 EH
‘‘(i) FIRST-TIME VIOLATIONS.—In the 1
case of an institution that is compelled to 2
comply with a requirement of section 117C 3
pursuant to a civil action described in 4
paragraph (2), and that has not previously 5
been compelled to comply with any such 6
requirement pursuant to such a civil ac-7
tion, the Secretary shall impose a fine on 8
the institution in an amount that is not 9
less than 50 percent and not more than 10
100 percent of the sum of— 11
‘‘(I) the aggregate fair market 12
value of all investments of concern 13
held by such institution as of the close 14
of the final calendar year for which 15
the institution is compelled to comply 16
with such requirement pursuant to 17
such civil action; and 18
‘‘(II) the combined value of all 19
investments of concern sold over the 20
course of all the calendar years for 21
which the institution is compelled to 22
comply with such requirement pursu-23
ant to such civil action, as measured 24 51
•HR 1048 EH
by the fair market value of such in-1
vestments at the time of the sale. 2
‘‘(ii) S
UBSEQUENT VIOLATIONS .—In 3
the case of an institution that has pre-4
viously been compelled to comply with a re-5
quirement of section 117C pursuant to a 6
civil action described in paragraph (2), and 7
is subsequently compelled to comply with 8
such a requirement pursuant to a subse-9
quent civil action described in paragraph 10
(2), the Secretary shall impose a fine on 11
the institution in an amount that is not 12
less than 100 percent and not more than 13
200 percent of the sum of— 14
‘‘(I) the aggregate fair market 15
value of all investments of concern 16
held by such institution as of the close 17
of the final calendar year for which 18
the institution is compelled to comply 19
with such requirement pursuant to 20
such subsequent civil action; and 21
‘‘(II) the combined value of all 22
investments of concern over the course 23
of all the calendar years for which the 24
institution is compelled to comply with 25 52
•HR 1048 EH
such requirement pursuant to such 1
subsequent civil action, as measured 2
by the fair market value of such in-3
vestments at the time of the sale. 4
‘‘(E) I
NELIGIBILITY FOR WAIVER .—In the 5
case of an institution that is fined pursuant to 6
subparagraph (A)(ii), (B)(ii), (C)(ii), or (D)(ii), 7
the Secretary shall prohibit the institution from 8
obtaining a waiver, or a renewal of a waiver, 9
under section 117A. 10
‘‘(b) S
INGLEPOINT-OF-CONTACT AT THE DEPART-11
MENT.—The Secretary shall maintain a single point-of- 12
contact at the Department to— 13
‘‘(1) receive and respond to inquiries and re-14
quests for technical assistance from institutions re-15
garding compliance with the requirements of sec-16
tions 117, 117A, 117B, 117C, and subsection (c) of 17
this section; 18
‘‘(2) coordinate and implement technical im-19
provements to the database described in section 20
117(d)(1), including— 21
‘‘(A) improving upload functionality by al-22
lowing for batch reporting, including by allow-23
ing institutions to upload one file with all re-24
quired information into the database; 25 53
•HR 1048 EH
‘‘(B) publishing and maintaining a data-1
base users guide, which shall be reviewed and 2
updated as practicable but not less than annu-3
ally, including information on how to edit an 4
entry and how to report errors; 5
‘‘(C) creating a standing user group (to 6
which chapter 10 of title 5, United States Code, 7
shall not apply) to discuss possible database im-8
provements, which group shall— 9
‘‘(i) include at least— 10
‘‘(I) 3 members representing 11
public institutions with high or very 12
high levels of research activity (as de-13
fined by the National Center for Edu-14
cation Statistics); 15
‘‘(II) 2 members representing 16
private, nonprofit institutions with 17
high or very high levels of research 18
activity (as so defined); 19
‘‘(III) 2 members representing 20
proprietary institutions of higher edu-21
cation (as defined in section 102(b)); 22
and 23
‘‘(IV) 2 members representing 24
area career and technical education 25 54
•HR 1048 EH
schools (as defined in subparagraph 1
(C) or (D) of section 3(3) of the Carl 2
D. Perkins Career and Technical 3
Education Act of 2006 (20 U.S.C. 4
2302(3))); and 5
‘‘(ii) meet at least twice a year with 6
officials from the Department to discuss 7
possible database improvements; 8
‘‘(D) publishing, on a publicly available 9
website, recommended database improvements 10
following each meeting described in subpara-11
graph (C)(ii); and 12
‘‘(E) responding, on a publicly available 13
website, to each recommendation published 14
under subparagraph (D) as to whether or not 15
the Department will implement the rec-16
ommendation, including the rationale for either 17
approving or rejecting the recommendation; 18
‘‘(3) provide, every 90 days after the date of en-19
actment of the DETERRENT Act, status updates 20
on any pending or completed investigations and civil 21
actions under subsection (a)(1) to— 22
‘‘(A) the authorizing committees; and 23
‘‘(B) any institution that is the subject of 24
such investigation or action; 25 55
•HR 1048 EH
‘‘(4) maintain, on a publicly accessible 1
website— 2
‘‘(A) a full comprehensive list of all foreign 3
countries of concern and foreign entities of con-4
cern; and 5
‘‘(B) the date on which the last update was 6
made to such list; and 7
‘‘(5) not later than 7 days after making an up-8
date to the list maintained under paragraph (4)(A), 9
notify each institution required to comply with the 10
sections listed in paragraph (1) of such update. 11
‘‘(c) I
NSTITUTIONALREQUIREMENTS FOR COMPLI-12
ANCEOFFICERS ANDINSTITUTIONALPOLICYREQUIRE-13
MENTS.— 14
‘‘(1) I
N GENERAL.—An institution that is re-15
quired to file a report under section 117 or 117C, 16
that is seeking a waiver under section 117A, or that 17
is subject to the requirements of section 117B, shall, 18
not later than the earlier of the date on which the 19
institution files the first report under section 117 or 20
117C, requests the institution’s first waiver under 21
section 117A, or first fulfills the requirements of 22
section 117B— 23
‘‘(A) establish an institutional policy that 24
the institution shall follow in meeting the re-25 56
•HR 1048 EH
quirements of sections 117, 117A, 117B, and 1
117C; and 2
‘‘(B) designate and maintain at least one, 3
but not more than three, current employees or 4
legally authorized agents of such institution to 5
serve as compliance officers to carry out the re-6
quirements listed in paragraph (2). 7
‘‘(2) D
UTIES OF COMPLIANCE OFFICERS .—A 8
compliance officer designated by an institution under 9
paragraph (1)(B) shall certify— 10
‘‘(A) whenever the institution is required 11
to file a report under section 117 or 117C— 12
‘‘(i) the institution’s accurate compli-13
ance with the reporting requirements 14
under such section; 15
‘‘(ii) that the institution, in filing such 16
report under section 117 or 117C— 17
‘‘(I) followed the institutional 18
policy established under paragraph 19
(1)(A) applicable to such section; and 20
‘‘(II) conducted good faith efforts 21
and reasonable due diligence to ensure 22
that accurate information is provided 23
in such report, including with respect 24
to the valuations of any assets that 25 57
•HR 1048 EH
are disclosed in a report submitted 1
under section 117C; and 2
‘‘(iii) in the case of a report under 3
section 117, any statements by the institu-4
tion required to be certified by such an of-5
ficer under clause (i) or (iv) of section 6
117(b)(1)(C); and 7
‘‘(B) whenever the institution requests a 8
waiver under section 117A— 9
‘‘(i) that the institution— 10
‘‘(I) is in compliance with the re-11
quirements of such section; and 12
‘‘(II) followed the institutional 13
policy established under paragraph 14
(1)(A) applicable to such section; and 15
‘‘(ii) the statement by the institution 16
required to be certified by such an officer 17
under section 117A(b)(2)(A)(ii)(II); and 18
‘‘(C) whenever the institution is subject to 19
the requirements of section 117B, that the in-20
stitution— 21
‘‘(i) is in compliance with the require-22
ments of such section; and 23 58
•HR 1048 EH
‘‘(ii) followed the institutional policy 1
established under paragraph (1)(A) appli-2
cable to such section. 3
‘‘(d) D
EFINITIONS.—For purposes of sections 117, 4
117A, 117B, 117C, and this section: 5
‘‘(1) F
OREIGN COUNTRY OF CONCERN .—The 6
term ‘foreign country of concern’ means the fol-7
lowing: 8
‘‘(A) Any covered nation defined in section 9
4872 of title 10, United States Code, including 10
any special administrative region within such a 11
covered nation or any other territory that the 12
United States recognizes as being under the 13
control of such a covered nation on or after the 14
date of the enactment of this subsection. 15
‘‘(B) Any country the Secretary, in con-16
sultation with the Secretary of Defense, the 17
Secretary of State, and the Director of National 18
Intelligence, determines, for purposes of sec-19
tions 117, 117A, 117B, 117C, or this section, 20
to be engaged in conduct that is detrimental to 21
the national security or foreign policy of the 22
United States. 23
‘‘(2) F
OREIGN ENTITY OF CONCERN .—The 24
term ‘foreign entity of concern’ has the meaning 25 59
•HR 1048 EH
given such term in section 10612(a) of the Research 1
and Development, Competition, and Innovation Act 2
(42 U.S.C. 19221(a)) and includes— 3
‘‘(A) a foreign entity that is identified on 4
the list published under section 1286(c)(9)(A) 5
of the John S. McCain National Defense Au-6
thorization Act for Fiscal Year 2019 (10 U.S.C. 7
4001 note; Public Law 115–232); and 8
‘‘(B) a Chinese military company that is 9
identified on the list required by section 1260H 10
of the William M. (Mac) Thornberry National 11
Defense Authorization Act for Fiscal Year 2021 12
(10 U.S.C. 113 note; Public Law 116–283). 13
‘‘(3) I
NSTITUTION.—The term ‘institution’ 14
means an institution of higher education (as such 15
term is defined in section 102, other than an institu-16
tion described in subsection (a)(1)(C) of such sec-17
tion) with a program participation agreement under 18
section 487.’’. 19
(b) P
ROGRAMPARTICIPATIONAGREEMENT.—Section 20
487(a) of the Higher Education Act of 1965 (20 U.S.C. 21
1094) is amended by adding at the end the following: 22
‘‘(30)(A) An institution will comply with the re-23
quirements of sections 117, 117A, 117B, 117C, and 24
117D(c). 25 60
•HR 1048 EH
‘‘(B) In the case of an institution described in 1
subparagraph (C), the institution will— 2
‘‘(i) be ineligible to participate in the pro-3
grams authorized by this title for a period of 4
not less than 2 institutional fiscal years; and 5
‘‘(ii) in order to regain eligibility to partici-6
pate in such programs, demonstrate compliance 7
with all requirements of each such section for 8
not less than 2 institutional fiscal years after 9
the institutional fiscal year in which such insti-10
tution became ineligible. 11
‘‘(C) An institution described in this subpara-12
graph is an institution— 13
‘‘(i) against which judgment has been 14
granted in 3 separate civil actions described in 15
section 117D(a)(2) that have each resulted in 16
the institution being compelled to comply with 17
one or more requirements of section 117, 117A, 18
117B, 117C, or 117D(c); and 19
‘‘(ii) that pursuant to section 20
117D(a)(4)(E), is prohibited from obtaining a 21
waiver, or a renewal of a waiver, under section 22
117A.’’. 23
(c) GAO S
TUDY ANDREPORT.— 24 61
•HR 1048 EH
(1) STUDY.—Not later than January 31 of the 1
second calendar year that begins after the date of 2
enactment of this Act, the Comptroller General of 3
the United States shall initiate a study to identify 4
ways to improve intergovernmental agency coordina-5
tion regarding implementation and enforcement of 6
sections 117, 117A, 117B, 117C, and 117D(c) of 7
the Higher Education Act of 1965 (20 U.S.C. 8
1011f), as amended or added by this Act, including 9
increasing information sharing, increasing compli-10
ance rates, and establishing processes for enforce-11
ment. 12
(2) R
EPORT.—Not later than 3 years after the 13
date of the initiation of the study under paragraph 14
(1), the Comptroller General of the United States 15
shall submit to Congress, and make public, a report 16
containing the results of the study described in para-17
graph (1). 18
Passed the House of Representatives March 27,
2025.
Attest:
Clerk. 119
TH
CONGRESS
1
ST
S
ESSION
H. R. 1048
AN ACT
To amend the Higher Education Act of 1965 to
strengthen disclosure requirements relating to
foreign gifts and con- tracts, to prohibit con-
tracts between institutions of high- er education
and certain foreign entities and countries of con-
cern, and for other purposes.