HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 679 Agreements of Educational Entities and Foreign Entities
SPONSOR(S): Education & Employment Committee, Postsecondary Education & Workforce Subcommittee,
Education & Employment Committee, Postsecondary Education & Workforce Subcommittee, Canady and
others
TIED BILLS: None. IDEN./SIM. BILLS: SB 846
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Postsecondary Education & Workforce 17 Y, 0 N, As CS Dixon Kiner
Subcommittee
2) Higher Education Appropriations Subcommittee 13 Y, 0 N Smith Smith
3) Education & Employment Committee 18 Y, 0 N, As CS Dixon Hassell
SUMMARY ANALYSIS
Beginning July 1, 2023, the bill prohibits a state university or state college, including their direct support
organizations (DSOs), from accepting any grant from or participating in any agreement with any college,
university, or entity that is based in a foreign country of concern or any foreign principal, unless the state
university or state college has received approval from the Board of Governors (BOG) or the State Board of
Education (SBE), respectively. The grant or agreement must otherwise be legal and deemed by the BOG or
SBE, as applicable, to be valuable to students, the state university or state college, and not detrimental to the
safety or security of the United States or United States residents. Beginning December 1, 2023, the bill applies
the same prohibition and exceptions to partnerships between a state university, state college, their DSO’s, and
any college, university or entity that is based in a foreign country of concern or any foreign principal.
The bill also prohibits a state university, state college, or any employee or representative of such entities, from
soliciting or accepting a gift in their official capacity – regardless of value – from a college or university based in
a foreign country of concern or a foreign principal. Pursuant to current law, these and other institutions of
higher education must disclose foreign gifts and contracts from non-foreign countries of concern that are
valued at $50,000 or more.
Florida law identifies foreign countries of concern to include: People's Republic of China, the Russian
Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the
Venezuelan regime of Nicolás Maduro, and the Syrian Arab Republic. The bill also provides a definition for the
term, ‘foreign principal.’
The bill contains penalties for non-compliance. Beginning December, 1, 2024, the bill contains reporting
requirements.
The bill disqualifies a private school owned or operated by a person or entity domiciled in, owned by, or in any
way controlled by a foreign country of concern or foreign principal from participating in an educational
scholarship program. The bill specifies that such ownership or control constitutes an imminent threat to the
health, safety, and welfare of the school’s students and the public sufficient to justify immediate suspension of
payment of scholarship funds as well as denial, suspension, or revocation of a school’s participation in a
scholarship program
The bill has no direct or immediate fiscal impact, however if an institution fails to comply with the bill’s
provisions, there could be a significant fiscal impact. See Fiscal Comments.
The bill has an effective date of July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
According to a United States Senate Committee report, American taxpayers contribute over $150 billion
each year to scientific research in the United States through entities such as the National Science
Foundation, the National Institutes of Health, and the Department of Energy. 1 In addition, Florida and
other states contribute millions in state tax dollars to support scientific discovery. As a result, the United
States of America has some of the most robust and scientifically advanced research institutions in the
world. These institutions, their talented researchers, and a culture of openness and collaboration attract
researchers and build collaborative networks across the world.
Board of Governors
The Board of Governors (BOG) of the State University System (SUS) oversees the performance of
state university boards of trustees in the enforcement of laws, rules, and regulations. The BOG is also
responsible for operating, regulating, controlling and being fully responsible for the management of the
SUS. However, pursuant to Florida’s Constitution, the BOG’s management is subject to the powers of
the Legislature to appropriate for the expenditure of funds. 2 The state university presidents are
responsible for the accuracy of the information and data reported to the BOG. 3 In addition, like other
state agencies, the BOG has an Office of Inspector General (IG) charged with promoting accountability,
financial integrity and efficiency required by law. The BOG IG is also charged with detecting fraud and
abuse within state universities.
For state university boards of trustees that are in noncompliance with any law, BOG regulation or audit
recommendation, the BOG may initiate any of the following actions: 4
 Withhold state funds, discretionary grant funds, discretionary lottery funds, or other funds
appropriated to the BOG for disbursement to the university, until compliance is met.
 Declare the state university ineligible for competitive grants disbursed by the BOG.
 Require monthly or periodic reporting on the noncompliance situation until it is remedied.
 Report to the Legislature that the state university is unwilling or unable to comply with the law or
BOG’s rule or regulation and recommend action to be taken by the Legislature.
State Board of Education
The State Board of Education (SBE) oversees the performance of early learning coalitions, district
school boards, and Florida College System institution boards of trustees in enforcement of all laws and
rules. The SBE has the authority to request and receive information, data, and reports from early
learning coalitions, school districts, and Florida College System institutions. For Florida College System
institutions, the president of the institution is responsible for the accuracy of the information and data
reported to the state board.5
With respect to allegations of non-compliance with law or SBE rule, the Commissioner of Education
(Commissioner) may investigate, determine probable cause, and report findings to the SBE. In addition,
1 United States Senate Permanent Subcommittee on Investigations, Committee on Homeland Security and Governmental Affairs,
Threats to the U.S. Research Enterprise: China’s Talent Recruitment Plans, Staff Report, United States Senate (2019), available at
https://www.hsgac.senate.gov/wp-content/uploads/imo/media/doc/2019-11-18%20PSI%20Staff%20Report%20-
%20China's%20Talent%20Recruit ment%20Plans%20Updated2.pdf
2 FLA. CONST., Art. IX, s. 7(d).
3 Section 1008.322(1) and (2), F.S.
4 Section 1008.322(5)(a) – (d), F.S.
5 Section 1008.32(1), F.S.
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 the Commissioner must report to the SBE any finding by the Auditor General that an institution is acting
without statutory authority or contrary to general law.6
Relationships with Foreign Entities
Florida’s state universities 7 and state colleges 8 facilitate open and publicly accessible research and
scholarly activities, both domestically and internationally. These research endeavors can be externally
funded by taxpayers through various entities, including granting agencies, or governments, as well as
industry agreements, or private foundations. Additional concerns arise when those involved in federal
or state funded research projects fail to disclose outside activities or financial interest, which may
adversely affect the integrity of the research and research institution.
Recently, it was discovered that researchers at state research institutions had undisclosed relationships
with foreign research institutions from a foreign country of concern. 9 The undisclosed relationships
resulted in an investigation conducted by the Florida House of Representatives in 2020. During the
investigation, the investigating committee ascertained that Florida state research grants often lacked
requirements deemed reasonably necessary to ensure research integrity. As a result, the Legislature
required greater disclosure of foreign gifts, contracts, and support for public entities; scrutiny of grant
applicants and vendors of goods and services with certain foreign connections; and thorough scrutiny
of foreign applicants for research positions, and foreign travel and activities of employees of major
research institutions.10
Present Situation
Reporting Foreign Gifts and Contracts with Institutions of Higher Education
Federal and State Requirements
The Higher Education Act of 1965 requires institutions of postsecondary education to report on January
31 and July 31, each year, all foreign gifts and grants received from or contracts entered into with a
value of $250,000 or more.11 Between 2018 and 2021, the U.S. Department of Education (USDOE)
carefully scrutinized the reporting program.12 The USDOE discovered billions of dollars of unreported
foreign gifts from many of the best-funded institutions.13
In recognition of USDOE’s discovery, the Florida Legislature passed legislation to require institutions of
higher education14 to semiannually report, each January 31 and July 31, all foreign gifts 15 or
6 Section 1008.32(2), F.S.
7 Section 288.860(1)(f), F.S. defines “state university” to mean any state university under the supervision of the Board of Governors,
including any entity under the control of or established for the benefit of a state un iversity.
8 Section 288.860(1)(e), F.S. defines “state college” to mean any postsecondary education institution under the supervision of the State
Board of Education, including any entity under the control of or established for the benefit of a state colle ge.
9 Section 288.860(1)(a), F.S. defines “foreign country of concern” to mean the People’s Republic of China, the Russian Federation,
the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás
Maduro, or the Syrian Arab Republic, including any agency of or any other entity under significant control of such foreign co untry of
concern.
10 Sections 288.860, F.S. and 1010.25, F.S.
11 See 20 U.S.C. § 1011f.
12 Institutional Compliance with Section 117 of the Higher Education Act of 1965, USDOE Office of General Counsel (Oct. 2020),
available at https://www2.ed.gov/policy/highered/leg/institutional-compliance-section-117.pdf.
13 Id.
14 Section 1010.25(1)(g), F.S., defines “institution of higher education” to mean a state university, an entity listed in subpart B of part
II of chapter 1004 that has its own governing board, a Florida College System institution, an independent nonprofit college or
university that is located in and chartered by the state and grants baccalaureate or higher degrees, any other institution th at has a
physical presence in the state and is required to report foreign gifts or contracts pursuant to 20 U.S.C. s. 1011f, or an affiliate
organization of an institution of higher education.
15 Section 1010.25(1)(f), F.S., defines “gifts” to mean any contract, gift, grant, endowment, award, or donation of money or property
of any kind, or any combination thereof, including a conditional or an unconditional pledge of such contract, gift, grant, en dowment,
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 contracts,16 valued at $50,000 or more, received directly or indirectly17 from the same foreign source,18
including its subsidiaries and affiliates, alone or collectively in the fiscal year. The institution of higher
education may consolidate its report with all of its affiliate organizations.19
State universities must disclose reportable foreign gifts and contracts to the BOG.20 All other institutions
of higher education must disclose their reportable foreign gifts and contracts to the SBE. 21
For each gift subject to the reporting requirement, the disclosure to the BOG or SBE must include: 22
 The amount of the gift and the date it was received.
 If the gift is a contract, the contract start and end date.
 The name of the foreign source and, if not a foreign government, the country of citizenship, if
known, and the country of principal residence or domicile of the foreign source.
 A copy of a gift agreement between the foreign source and the institution of higher education,
signed by the foreign source and the chief administrative officer of the institution of higher
education, or their respective designees.
o The agreement must include: a detailed description of the purpose for which the gift will
be used by the institution of higher education; the identification of the persons for whom
the gift is explicitly intended to benefit; and any applicable conditions, requirements,
restrictions, or terms made a part of the gift regarding the control of curricula, faculty,
student admissions, student fees, or contingencies placed upon the institution of higher
education to take a specific public position or to award an honorary degree.
o If an agreement includes certain information protected from disclosure, 23 then an
abstract and redacted copy providing all required information may be submitted in lieu of
a copy of the agreement.
The Inspector General of the BOG or the Inspector General of the Florida Department of Education
(DOE), is required to randomly inspect or audit at least five percent of the total number of gifts
disclosed by, or gift agreements received from, institutions of higher education during the previous year
for the purpose of determining an institution’s compliance with the reporting requirements.24
In 2022, the BOG Office of Inspector General and Director of Compliance conducted the required
compliance review of foreign gifts. The review consisted of 689 foreign gift disclosures received from
eight SUS institutions 25 for Fiscal Year (FY) 2021-2022. 26
award, or donation. For purposes of s. 1010.25(f), F.S., the term “pledge” means a promise, an agreement, or an expressed intention to
give a gift.
16 Section 1010.25(1)(b), F.S. defines “contract” to mean any agreement for the acquisition by purchase, lease, or barter or property or
services by the foreign source, for the direct benefit or use of either of th e parties, and any purchase, lease, or barter of property or
services from a foreign country of concern.
17 For the purpose of s. 1010.25(1), F.S., the term “indirectly” a gift received from a foreign source through an intermediary shall be
considered an indirect gift to the institution of higher education.
18 Section 1010.25(1)(e), F.S. defines “foreign source” to mean a foreign government or an agency of a foreign government; a legal
entity, governmental or otherwise, created solely under the laws of a foreign state or states; an individual who is not a citizen or a
national of the United States or a territory or protectorate of the United States; or an agent, including a subsidiary or an affiliate of a
foreign legal entity, acting on behalf of a foreign source.
19 Section 1010.25(1)(a), F.S. defines “affiliated organization” to mean any entity under the control of or established for the benefit of
an organization required to report under this section, including a direct -support organization.
20 Section 1010.25(2)(a), F.S. and Subpart B, Part II, ch. 1004, F.S.
21 Section 1010.25(2)(b), F.S. and Subpart B, Part III, ch. 1004, F.S.
22 Section 1010.25(3), information reporting is required unless otherwise deemed confidential under federal law having no exempt ion
applicable to reporting.
23 Section 1004.22, F.S.
24 Section 1010.25(3)(d)2., F.S.
25 The eight institutions included Florida Agricultural and Mechanical University (FAMU), Florida Atlantic University (FAU), Flo rida
International University (FIU), Florida State University (FSU), Moffitt, University of Central Florida (UCF), University of Florida
(UF), and University of South Florida (USF).
26 State University System of Florida, Board of Governors, Compliance Review: Foreign Gifts Inspections, Office of Inspector
General and Director of Compliance, Project No. 23-002, (Dec. 15, 2022).
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 The review found that the total amount of foreign gifts reported for FY 2021-2022 equaled
approximately $116.6 million. The foreign gifts reported included contracts for goods, services, or
clinical research trials; awards, pledges, or donations of money or property; and student sponsorships.