The proposed bill aims to regulate the interactions between state institutions of higher education and foreign actors, particularly those from designated "foreign countries of concern," which include nations such as China, Russia, and Iran. It prohibits these institutions from entering into agreements or accepting grants that could compromise their autonomy or promote agendas harmful to U.S. safety and security. Additionally, the bill mandates that any gifts received from foreign sources must be accompanied by a formal gift agreement detailing the purpose, conditions, and beneficiaries of the gift, ensuring transparency and accountability.

To enhance oversight, the bill establishes reporting requirements for state institutions, necessitating biannual disclosures of gifts valued at $50,000 or more. It also empowers the attorney general to enforce compliance, with civil penalties for institutions that fail to disclose required information. The bill includes provisions for annual inspections of gift agreements by governing boards and allows for inspections upon request by state leaders. Furthermore, it repeals previous legislation related to this matter, streamlining the regulatory framework surrounding foreign influence in higher education.