[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1048 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1048
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 HOUSE OF REPRESENTATIVES
February 6, 2025
Mr. Baumgartner (for himself, Mr. Messmer, Mr. Owens, Mr. Allen, Mr.
Kiley of California, Mr. Walberg, Mr. Wilson of South Carolina, Mr.
Rulli, Ms. Foxx, and Mr. Grothman) introduced the following bill; which
was referred to the Committee on Education and Workforce
_______________________________________________________________________
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 undetermined;
or
``(B) the institution--
``(i) receives a gift from a foreign
country of concern or foreign entity of
concern; 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 gift or
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 contain the following:
``(A) With respect to a gift received from, or a
contract entered into with, any foreign source--
``(i) the terms of such gift or contract,
including--
``(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) the foreign source's
intended purpose of such gift or
contract, or, in the absence of such a
purpose, the manner in which the
institution intends to use such gift or
contract; and
``(III) in the case of a restricted
or conditional gift or contract, a
description of the restrictions or
conditions of such gift or contract;
``(ii) with respect to 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;
``(iii) with respect to 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) as applicable, the date on
which such contract terminates; 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
117D(a)(1), produce such an
unredacted copy of the
contract; and
``(iv) an assurance that in a case in which
information is required to be disclosed under
this section with respect to a gift or contract
that is not in English, such information is
translated into English in accordance with
subsection (c).
``(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) the legal name of the foreign source,
or, if such name is not available, a statement
certified by the compliance officer in
accordance with section 117D(c) that the
institution has reasonably attempted to obtain
such name;
``(ii) in the case of a foreign source that
is a natural person, the country of citizenship
of such person, or, if such country is not
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 the
compliance officer in accordance with section
117D(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 text 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).
``(2) Foreign source ownership or control.--Each report to
the Secretary required under subsection (a)(2) shall contain--
``(A) the legal name and address of the foreign
source that owns or controls the institution;
``(B) the date on which the foreign source assumed
ownership or control; and
``(C) any changes in program or structure resulting
from the change in ownership or control.
``(c) Translation Requirements.--Any information required to be
disclosed under this section with respect to a gift or contract that is
not in English shall be translated, for purposes of such disclosure, by
a person that is not an affiliated entity or agent of the foreign
source involved with such gift or contract.
``(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 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) 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 (other than a foreign source
that is a natural person);
``(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) Name and address of foreign source.--The Secretary
shall not disclose the name or address of a foreign source that
is a natural person (other than the attributable country of
such foreign source) included in a disclosure report--
``(A) as part of the public record of such
disclosure report described in paragraph (1); or
``(B) in response to a request under section 552 of
title 5, United States Code (commonly known as the
`Freedom of Information Act'), pursuant to subsection
(b)(3) of such section.
``(e) Interagency Information Sharing.--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 (that includes 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, including a foundation
of the institution or a related entity (such as any
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 (as applicable) 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 or
services by the foreign source;
``(ii) 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
``(iii) any agreement for the acquisition
by purchase, lease, or barter, of property or
services from a foreign source (other than an
arms-length agreement for such acquisition from
a foreign source that is not a foreign country
of concern or a foreign entity of concern); and
``(B) does not include an agreement made between an
institution and a