[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1296 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1296
To amend the Higher Education Act of 1965 to strengthen disclosure
requirements relating to foreign gifts and contracts, to prohibit
contracts between institutions of higher education and certain foreign
entities and countries of concern, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 3, 2025
Mr. Tillis (for himself, Mr. Cassidy, Mrs. Blackburn, Mrs. Capito, Mr.
Cornyn, Ms. Ernst, Mr. Grassley, Mr. Scott of Florida, Mr. Ricketts,
Mr. Schmitt, Ms. Lummis, and Mr. Risch) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to strengthen disclosure
requirements relating to foreign gifts and contracts, to prohibit
contracts between institutions of higher education and certain foreign
entities and countries of concern, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Defending Education Transparency and
Ending Rogue Regimes Engaging in Nefarious Transactions Act'' or the
``DETERRENT Act''.
SEC. 2. DISCLOSURES OF FOREIGN GIFTS.
(a) In General.--Section 117 of the Higher Education Act of 1965
(20 U.S.C. 1011f) is amended to read as follows:
``SEC. 117. DISCLOSURES OF FOREIGN GIFTS.
``(a) Disclosure Reports.--
``(1) Aggregate gifts and contract disclosures.--An
institution shall file with the Secretary, in accordance with
subsection (b)(1), a disclosure report on July 31 of the
calendar year immediately following any calendar year in
which--
``(A) the institution receives a gift from, or
enters into a contract with, a foreign source (other
than a foreign country of concern or foreign entity of
concern)--
``(i) the value of which is $50,000 or
more, considered alone or in combination with
all other gifts from, or contracts with, that
foreign source within the calendar year; or
``(ii) the value of which is indeterminate;
or
``(B) the institution--
``(i) receives a gift from a foreign
country of concern or foreign entity of
concern, without regard to the value of such
gift; or
``(ii) upon receiving a waiver under
section 117A to enter into a contract with such
a country or entity, enters into such contract,
without regard to the value of such contract.
``(2) Foreign source ownership or control disclosures.--
Notwithstanding paragraph (1), in the case of an institution
that is substantially controlled (as described in section
668.174(c)(3) of title 34, Code of Federal Regulations) (or
successor regulations) by a foreign source, the institution
shall file with the Secretary, in accordance with subsection
(b)(2), a disclosure report on July 31 of each year.
``(3) Treatment of affiliated entities.--For purposes of
this section, any gift to, or contract with, an affiliated
entity of an institution shall be considered a gift to, or
contract with, respectively, such institution.
``(b) Contents of Report.--
``(1) Gifts and contracts.--Each report to the Secretary
required under subsection (a)(1) shall include the following:
``(A) With respect to a gift received from, or a
contract entered into with, any foreign source--
``(i) the name of the individual,
department, or other entity at the institution
receiving the gift or carrying out the contract
on behalf of the institution;
``(ii) any intended purpose of the gift or
contract communicated to the institution by the
foreign source, and, as of the date of filing
such report, the manner in which the
institution intends to use such gift or
contract;
``(iii) in the case of a restricted or
conditional gift or contract, a description of
each restriction or condition that meets the
definition of the term `restricted or
conditional gift or contract' in subsection
(f);
``(iv) with respect to such a gift--
``(I) the total fair market dollar
amount or dollar value of the gift, as
of the date of submission of such
report; and
``(II) the date on which the
institution received such gift;
``(v) with respect to such a contract--
``(I) the total fair market dollar
amount or dollar value of the contract,
as of the date of submission of such
report;
``(II) the date on which the
institution enters into such contract;
``(III) the date on which such
contract first takes effect;
``(IV) if the contract has a
termination date, such termination
date; and
``(V) an assurance that the
institution will--
``(aa) maintain an
unredacted copy of the contract
until the latest of--
``(AA) the date
that is 5 years after
the date on which such
contract first takes
effect;
``(BB) the date on
which the contract
terminates; or
``(CC) the last day
of any period that
applicable State law
requires a copy of such
contract to be
maintained; and
``(bb) upon request of the
Secretary during an
investigation under section
117C(a)(1), produce such an
unredacted copy of the
contract.
``(B) With respect to a gift received from, or a
contract entered into with, a foreign source that is a
foreign government (other than the government of a
foreign country of concern)--
``(i) the name of such foreign government;
``(ii) the department, agency, office, or
division of such foreign government that
approved such gift or contract, as applicable;
and
``(iii) the physical mailing address of
such department, agency, office, or division.
``(C) With respect to a gift received from, or
contract entered into with, a foreign source other than
a foreign government subject to the requirements of
subparagraph (B)--
``(i)(I) the legal name of the foreign
source; or
``(II) in the case of a gift received from
a foreign source that awarded such gift to the
institution as an agent described in subsection
(f)(4)(G) on behalf of another foreign source--
``(aa) the legal name of the
foreign source that awarded such gift;
and
``(bb) the legal name of the
foreign source on whose behalf the gift
was awarded, or a statement certified
by a compliance officer in accordance
with section 117C(c) that the
institution has reasonably attempted to
obtain such name;
``(ii) in the case of a foreign source that
is a natural person, each country of
citizenship of such person, or, if no such
country is known, the principal country of
residence of such person;
``(iii) in the case of a foreign source
that is a legal entity, the country in which
such entity is incorporated, or, if such
information is not available, the principal
place of business of such entity;
``(iv) the physical mailing address of such
foreign source, or, if such address is not
available, a statement certified by a
compliance officer in accordance with section
117C(c) that the institution has reasonably
attempted to obtain such address; and
``(v) any affiliation of the foreign source
to an organization that is designated as a
foreign terrorist organization pursuant to
section 219 of the Immigration and Nationality
Act (8 U.S.C. 1189).
``(D) With respect to a contract entered into with
a foreign source that is a foreign country of concern
or a foreign entity of concern--
``(i) a complete and unredacted copy of the
original contract, and if such original
contract is not in English, a translated copy
in accordance with subsection (c);
``(ii) a copy of the waiver received under
section 117A for such contract; and
``(iii) the statement submitted by the
institution for purposes of receiving such a
waiver under section 117A(b)(2).
``(E) With respect to a gift received from a
foreign source that is a foreign country of concern or
a foreign entity of concern, an assurance that the
institution will--
``(i) in a case in which the institution
received documentation relating to such gift,
maintain such documentation until the later
of--
``(I) the date that is 5 years
after the date such gift was received
by the institution; or
``(II) the last day of any period
that applicable State law requires a
copy of such documentation to be
maintained; and
``(ii) upon request of the Secretary during
an investigation under section 117C(a)(1),
produce such documentation.
``(2) Foreign source ownership or control.--Each report to
the Secretary required under subsection (a)(2) shall contain--
``(A) the information required under paragraph (1);
``(B) the legal name and the mailing address of the
foreign source that substantially controls the
institution as described in such subsection;
``(C) the date on which the foreign source assumed
such substantial control; and
``(D) any changes in program or structure of the
institution of higher education resulting from such
substantial control.
``(c) Translation Requirements.--Any information required to be
disclosed under this section, or requested by the Secretary pursuant to
an investigation under section 117C(a)(1), with respect to a gift or
contract that is not in English shall be translated into English, for
purposes of such disclosure or such investigation, by a person that is
not--
``(1) a foreign source that awarded such gift or entered
into such contract; or
``(2) any other foreign source from an attributable country
of a foreign source referred to in paragraph (1).
``(d) Public Inspection.--
``(1) Database requirement.--Beginning not later than May
31 of the calendar year following the date of enactment of the
DETERRENT Act, the Secretary shall--
``(A) establish and maintain a searchable database
on a website of the Department, under which all reports
submitted under this section (including, to the extent
practicable, any report submitted under this section
before the date of enactment of the DETERRENT Act)--
``(i) are made publicly available (in
electronic and downloadable format), including
any information provided in such reports (other
than the information prohibited from being
publicly disclosed pursuant to paragraph (2));
``(ii) can be individually identified and
compared; and
``(iii) to the extent practicable, are
searchable and sortable--
``(I) by the institution that filed
such report;
``(II) by the date on which the
institution filed such report;
``(III) by the date on which the
institution received the gift which is
the subject of the report;
``(IV) by the date on which the
institution enters into the contract
which is the subject of the report;
``(V) by the date on which such
contract first takes effect;
``(VI) by the attributable country
of such gift or contract;
``(VII) by the name of the foreign
source;
``(VIII) by the information
described in subparagraph (C)(i); and
``(IX) by the information described
in subparagraph (C)(ii);
``(B) not later than 30 days after receipt of a
disclosure report under this section, include such
report in such database;
``(C) indicate, as part of the public record of a
report included in such database, whether the report is
with respect to a gift received from, or a contract
entered into with--
``(i) a foreign source that is a foreign
government; or
``(ii) a foreign source that is not a
foreign government; and
``(D) with respect to a disclosure report that does
not include the name or address of a foreign source,
indicate, as part of the public record of such report
included in such database, that such report did not
include such information.
``(2) Application of federal privacy law; protections for
natural persons.--
``(A) Application of federal privacy law.--Except
as provided in subparagraph (B), a disclosure report
filed pursuant to this section is not subject to
Federal privacy law (including any exemption from
disclosure described in section 552(b) of title 5,
United States Code).
``(B) Protections for natural persons.--
``(i) In general.--Except as provided in
clause (ii), with respect to a disclosure
report filed under this section, the name or
address (other than the attributable country)
of a foreign source that is a natural person--
``(I) may not be publicly
disclosed; and
``(II) is exempt from disclosure
under subsection (b)(3) of section 552
of title 5, United States Code
(commonly referred to as the Freedom of
Information Act).
``(ii) Exceptions for contracts with a
foreign country of concern or foreign entity of
concern.--Clause (i) shall not apply to a
disclosure report filed pursuant to this
section that contains information with respect