119-hr1999

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1999 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1999

To amend the Higher Education Act of 1965 to require staff and faculty 
 to report foreign gifts and contracts, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 10, 2025

 Mr. James (for himself and Ms. Foxx) 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 require staff and faculty 
 to report foreign gifts and contracts, 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 ``Disclose Getting Involved in Foreign 
Transactions Act'' or the ``Disclose GIFT Act''.

SEC. 2. POLICY REGARDING CONFLICTS OF INTEREST FROM FOREIGN GIFTS AND 
 CONTRACTS.

 The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
amended by inserting after 

section 117 the following:

``

SEC. 117A. INSTITUTIONAL POLICY REGARDING FOREIGN GIFTS AND CONTRACTS 
 TO FACULTY AND STAFF.

 ``

    (a) Requirement To Maintain Policy and Database.--Beginning not 
later than 90 days after the date of enactment of the Disclose GIFT 
Act, each institution described in subsection

    (b) shall maintain--
 ``

    (1) a policy requiring covered individuals employed at 
 the institution to disclose in a report to such institution on 
 July 31 of each calendar year that begins after the year in 
 which such enactment date occurs--
 ``
        (A) any gift received from a foreign source in 
 the previous calendar year, the value of which is 
 greater than the minimal value (as such term is defined 
 in 

section 7342

    (a) of title 5, United States Code) or 
 is of undetermined value, and including the date on 
 which the gift was received;
 ``
        (B) any contract with a foreign source (other 
 than a foreign country of concern or foreign entity of 
 concern) entered into or in effect during the previous 
 calendar year, the value of which is $5,000 or more, 
 considered alone or in combination with all other 
 contracts with that foreign source within the calendar 
 year, and including the date on which such contract is 
 entered into, the date on which the contract first 
 takes effect, and, as applicable, the date on which 
 such contract terminates;
 ``
            (C) any contract with a foreign source (other 
 than a foreign country of concern or foreign entity of 
 concern) entered into or in effect during the previous 
 calendar year that has an undetermined monetary value, 
 and including the date on which such contract is 
 entered into, the date on which the contract first 
 takes effect, and, as applicable, the date on which 
 such contract terminates; and
 ``
            (D) any contract entered into or in effect with a 
 foreign country of concern or foreign entity of concern 
 during the previous calendar year, the value of which 
 is $0 or more or which has an undetermined monetary 
 value, and including--
 ``
            (i) the date on which such contract is 
 entered into;
 ``
            (ii) the date on which the contract first 
 takes effect;
 ``
            (iii) if the contract has a termination 
 date, such termination date; and
 ``
            (iv) the full text of such contract and 
 any addenda;
 ``

    (2) a publicly available and searchable database (in 
 electronic and downloadable format), on a website of the 
 institution, of the information required to be disclosed under 
 paragraph

    (1) (other than the name or any other personally 
 identifiable information of a covered individual) that--
 ``
        (A) makes available the information disclosed 
 under paragraph

    (1) (other than the name or any other 
 personally identifiable information of a covered 
 individual) beginning on the date that is 30 days after 
 receipt of the report under such paragraph containing 
 such information and until the latest of--
 ``
            (i) the date that is 5 years after the 
 date on which--
 ``
            (I) a gift referred to in 
 paragraph

    (1)
        (A) is received; or
 ``
            (II) a contract referred to in 
 subparagraph
        (B) ,
            (C) or
            (D) of 
 paragraph

    (1) first takes effect; or
 ``
            (ii) the date on which a contract 
 referred to in subparagraph
        (B) ,
            (C) or
            (D) of 
 paragraph

    (1) terminates; and
 ``
        (B) is searchable and sortable--
 ``
            (i) if the subject of the disclosure is a 
 gift, by the date on which the gift is 
 received;
 ``
            (ii) if the subject of the disclosure is 
 a contract--
 ``
            (I) by the date on which such 
 contract is entered into; and
 ``
            (II) by the date on which such 
 contract first takes effect;
 ``
            (iii) by the attributable country with 
 respect to which information is being 
 disclosed;
 ``
            (iv) by the narrowest of the department, 
 school, or college of the institution, as 
 applicable, for which the individual making the 
 disclosure works; and
 ``
            (v) by the name of the foreign source 
 (other than a foreign source who is a natural 
 person); and
 ``

    (3) an effective plan to identify and manage potential 
 information gathering by foreign sources through espionage 
 targeting covered individuals that may arise from gifts 
 received from, or contracts entered into with, a foreign 
 source, including through the use of--
 ``
        (A) periodic communications;
 ``
        (B) accurate reporting under paragraph

    (2) of the 
 information required to be disclosed under paragraph

    (1) ; and
 ``
            (C) enforcement of the policy described in 
 paragraph

    (1) ; and
 ``

    (4) for purposes of investigations under 

section 117B

    (a)

    (1) or responses to requests under 

section 552 of title 
 5, United States Code (commonly known as the `Freedom of 
 Information Act'), a record of the names of the individuals 
 making disclosures under paragraph

    (1) .
 ``

    (b) Institutions.--An institution shall be subject to the 
requirements of this section if such institution--
 ``

    (1) is an eligible institution for the purposes of any 
 program authorized under title IV; and
 ``

    (2)
        (A) received more than $50,000,000 in Federal funds in 
 any of the previous five calendar years to support (in whole or 
 in part) research and development (as determined by the 
 institution and measured by the Higher Education Research and 
 Development Survey of the National Center for Science and 
 Engineering Statistics); or
 ``
        (B) receives funds under title VI.
 ``
            (c) === Definitions. ===
-In this section--
 ``

    (1) 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.
 ``

    (2) the term `contract' means--
 ``
        (A) any agreement for the acquisition by 
 purchase, lease, or barter of property or services by 
 the foreign source;
 ``
        (B) 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
 ``
            (C) 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
 ``

    (3) the term `covered individual'--
 ``
        (A) has the meaning given such term in 

section 223
            (d) of the William M.

    (Mac) Thornberry National 
 Defense Authorization Act for Fiscal Year 2021 (42 
 U.S.C. 6605); and
 ``
        (B) shall be interpreted in accordance with the 
 Guidance for Implementing National Security 
 Presidential Memorandum 33 (NSPM-33) on National 
 Security Strategy for United States Government-
 Supported Research and Development published by the 
 Subcommittee on Research Security and the Joint 
 Committee on the Research Environment in January 2022 
 (or any successor guidance).
 ``

    (4) the term `foreign source' means--
 ``
        (A) a foreign government, including an agency of 
 a foreign government;
 ``
        (B) a legal entity, governmental or otherwise, 
 created under the laws of a foreign state or states;
 ``
            (C) a legal entity, governmental or otherwise, 
 substantially controlled (as described in 

section 668.174
            (c) (3) of title 34, Code of Federal Regulations) 
 (or successor regulations)) by a foreign source;
 ``
            (D) a natural person who is not a citizen or a 
 national of the United States or a trust territory or 
 protectorate thereof;
 ``
        (E) an agent of a foreign source, including--
 ``
            (i) a subsidiary or affiliate of a 
 foreign legal entity, acting on behalf of a 
 foreign source;
 ``
            (ii) a person that operates primarily for 
 the benefit of, or under the auspices of, a 
 foreign source, including a foundation or a 
 related entity (such as any educational, 
 cultural, or language entity); and
 ``
            (iii) a person who is an agent of a 
 foreign principal (as such term is defined in 
 

section 1 of the Foreign Agents Registration 
 Act of 1938 (22 U.S.C. 611); and
 ``
        (F) an international organization (as such term 
 is defined in the International Organizations 
 Immunities Act (22 U.S.C. 288)).
 ``

    (5) the term `gift'--
 ``
        (A) means any gift of money, property, resources, 
 staff, or services; and
 ``
        (B) does not include--
 ``
            (i) any payment of one or more elements 
 of a student's cost of attendance (as such term 
 is defined in 

section 472) to an institution 
 by, or scholarship from, a foreign source who 
 is a natural person, acting in their individual 
 capacity and not as an agent for, at the 
 request or direction of, or on behalf of, any 
 person or entity (except the student), made for 
 not more than 15 students, and that is not made 
 under a restricted or conditional contract with 
 such foreign source;
 ``
            (ii) assignment or license of registered 
 industrial and intellectual property rights, 
 such as patents, utility models, trademarks, or 
 copyrights, or technical assistance, that are 
 not associated with a category listed in the 
 Commerce Control List maintained by the Bureau 
 of Industry and Security of the Department of 
 Commerce and set forth in Supplement No. 1 to 
 part 774 of title 15, Code of Federal 
 Regulations (or successor regulations); or
 ``
            (iii) decorations (as such term is 
 defined in 

section 7342

    (a) of title 5, United 
 States Code).''.

SEC. 3. ENFORCEMENT AND OTHER GENERAL PROVISIONS.

    (a) Enforcement and Other General Provisions.--The Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.), as amended by this Act, is 
further amended by inserting after 

section 117A the following:

``

SEC. 117B. ENFORCEMENT; SINGLE POINT-OF-CONTACT; INSTITUTIONAL 
 REQUIREMENTS.

 ``

    (a) Enforcement.--
 ``

    (1) Investigation.--The Secretary (acting through the 
 General Counsel of the Department) shall conduct investigations 
 of possible violations of 

section 117A and subsection
            (c) of 
 this section by institutions and, whenever it appears that an 
 institution has knowingly or willfully failed to comply with a 
 requirement of any of such provisions (including any rule or 
 regulation promulgated under any such provision), shall request 
 that the Attorney General bring a civil action in accordance 
 with paragraph

    (2) .
 ``

    (2) Civil action.--Whenever it appears that an 
 institution has knowingly or willfully failed to comply with a 
 requirement of any of the provisions listed in paragraph

    (1) (including any rule or regulation promulgated under any such 
 provision) based on an investigation under such paragraph, a 
 civil action shall be brought by the Attorney General, at the 
 request of the Secretary, in an appropriate district court of 
 the United States, or the appropriate United States court of 
 any territory or other place subject to the jurisdiction of the 
 United States, to request such court to compel compliance with 
 the requirement of the provision that has been violated.
 ``

    (3) Costs and other fines.--An institution that is 
 compelled to comply with a requirement of a provision listed in 
 paragraph

    (1) pursuant to paragraph

    (2) shall--
 ``
        (A) pay to the Treasury of the United States the 
 full costs to the United States of obtaining compliance 
 with the requirement of such provision, including all 
 associated costs of investigation and enforcement; and
 ``
        (B) if applicable, be subject to the applicable 
 fines described in paragraph

    (4) .
 ``

    (4) Fines for violations.--The Secretary shall impose a 
 fine on an institution that is compelled to comply with a 
 requirement of 

section 117A pursuant to paragraph

    (2) as 
 follows:
 ``
        (A) First-time violations.--In the case of an 
 institution that is compelled to comply with a 
 requirement of 

section 117A pursuant to a civil action 
 described in paragraph

    (2) , and that has not previously 
 been compelled to comply with any such requirement 
 pursuant to such a civil action, the Secretary shall 
 impose a fine on the institution for such violation in 
 an amount that is the greater of--
 ``
            (i) $250,000; or
 ``
            (ii) the total amount of gifts or 
 contracts that the institution is compelled to 
 report pursuant to such civil action.
 ``
        (B) Subsequent violations.--In the case of an 
 institution that has previously been compelled to 
 comply with a requirement of 

section 117A pursuant to a 
 civil action described in paragraph

    (2) , and is 
 subsequently compelled to comply with such a 
 requirement pursuant to a subsequent civil action 
 described in paragraph

    (2) , the Secretary shall impose 
 a fine on the institution in an amount that is the 
 greater of--
 ``
            (i) $500,000; or
 ``
            (ii) twice the total amount of gifts or 
 contracts that the institution is compelled to 
 report pursuant to such civil action.
 ``

    (b) Single Point-of-Contact at the Department.--The Secretary 
shall maintain a single point-of-contact at the Department to--
 ``

    (1) receive and respond to inquiries and requests for 
 technical assistance from institutions regarding compliance 
 with the requirements of 

section 117A and subsection
            (c) of 
 this section;
 ``

    (2) provide, every 90 days after the date of enactment of 
 the status updates on any pending or completed investigations 
 and civil actions under subsection

    (a)

    (1) to--
 ``
        (A) the authorizing committees; and
 ``
        (B) any institution that is the subject of such 
 investigation or action;
 ``

    (3) maintain, on a publicly accessible website--
 ``
        (A) a full comprehensive list of all foreign 
 countries of concern and foreign entities of concern; 
 and
 ``
        (B) the date on which the last update was made to 
 such list; and
 ``

    (4) not later than 7 days after making an update to the 
 list maintained under paragraph

    (3)
        (A) , notify each institution 
 required to comply with the section listed in paragraph

    (1) of 
 such update.
 ``
            (c) Institutional Requirements for Compliance Officers and 
Institutional Policy Requirements.--
 ``

    (1) In general.--An institution that is subject to the 
 requirements of 

section 117A shall, not later than the date on 
 which the institution first fulfills the requirements of such 
 section--
 ``
        (A) establish an institutional policy that the 
 institution shall follow in meeting the requirements of 
 such section; and
 ``
        (B) designate and maintain at least one, but not 
 more than three, current employees or legally 
 authorized agents of such institution to serve as 
 compliance officers to carry out the requirements 
 listed in paragraph

    (2) .
 ``

    (2) Duties of compliance officers.--A compliance officer 
 designated by an institution under paragraph

    (1)
        (B) shall 
 certify, whenever the institution is subject to the 
 requirements of 

section 117A, that the institution--
 ``
        (A) is in compliance with the requirements of 
 such section; and
 ``
        (B) followed the institutional policy established 
 under paragraph

    (1)
        (A) .
 ``
            (d) === Definitions. ===
-For purposes of 

section 117A and this section:
 ``

    (1) Foreign country of concern.--The term `foreign 
 country of concern' means the following:
 ``
        (A) Any covered nation defined in 

section 4872 of 
 title 10, United States Code.
 ``
        (B) Any country the Secretary, in consultation 
 with the Secretary of Defense, the Secretary of State, 
 and the Director of National Intelligence, determines, 
 for purposes of 

section 117A or this section, to be 
 engaged in conduct that is detrimental to the national 
 security or foreign policy of the United States.
 ``

    (2) Foreign entity of concern.--The term `foreign entity 
 of concern' has the meaning given such term in 

section 10612

    (a) of the Research and Development, Competition, and Innovation 
 Act (42 U.S.C. 19221

    (a) ) and includes a foreign entity that is 
 identified on the list published under 

section 1286
            (c) (8)
        (A) of 
 the John S. McCain National Defense Authorization Act for 
 Fiscal Year 2019 (10 U.S.C. 22 4001 note; Public Law 115-232).
 ``

    (3) Institution.--The term `institution' means an 
 institution of higher education (as such term is defined in 
 

section 102, other than an institution described in subsection

    (a)

    (1)
            (C) of such section).''.

    (b) Program Participation Agreement.--

Section 487

    (a) of the Higher 
Education Act of 1965 (20 U.S.C. 1094) is amended by adding at the end 
the following:
 ``

    (30)
        (A) An institution will comply with the requirements 
 of sections 117A and 117B
            (c) .
 ``
        (B) In the case of an institution described in 
 subparagraph
            (C) , the institution will--
 ``
            (i) be ineligible to participate in the programs 
 authorized by this title for a period of not less than 
 2 institutional fiscal years; and
 ``
            (ii) in order to regain eligibility to 
 participate in such programs, demonstrate compliance 
 with all requirements of each such section for not less 
 than 2 institutional fiscal years after the 
 institutional fiscal year in which such institution 
 became ineligible.
 ``
            (C) An institution described in this subparagraph is an 
 institution that has been subject to 3 separate civil actions 
 described in 

section 117B

    (a)

    (2) that have each resulted in the 
 institution being compelled to comply with one or more 
 requirements of 

section 117A or 117B
            (c) .''.
            (c) GAO Study and Report.--

    (1) Study.--Not later than 180 days after the date of 
 enactment of this Act, the Comptroller General of the United 
 States shall initiate a study to identify ways to improve 
 intergovernmental agency coordination regarding implementation 
 and enforcement of sections 117A and 117B
            (c) of the Higher 
 Education Act of 1965 (20 U.S.C. 1011f), as added by this Act, 
 including increasing information sharing, increasing compliance 
 rates, and establishing processes for enforcement.

    (2) Report.--Not later than 3 years after the date of 
 enactment of this Act, the Comptroller General of the United 
 States shall submit to Congress, and make public, a report 
 containing the results of the study described in paragraph

    (1) .
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