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Bill
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Title V — Matters Related to Education

H.R. 4792 · 117th Congress · Jul 29, 2021 · Lineage

V Matters Related to Education

A Restrictions relating to foreign funding of educational institutions

Sec. 501 Restrictions on institutions partnering with the People’s Republic of China

(a)
Funding restricted— An institution of higher education or other post-secondary educational institution shall not be eligible to receive Federal funds (except funds under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) or other Department of Education funds that are provided directly to students) if such institution:
(1)
has a contractual partnership in effect with an entity that is owned or controlled, directly or indirectly, by the Government of the People’s Republic of China;
(2)
has a contractual partnership in effect with an entity that is organized under the laws of the People’s Republic of China; or
(3)
employs a CCP-funded instructor.
(b)
Restoring eligibility— An institution ineligible to receive Federal funds under subsection (a) may reestablish eligibility by—
(1)
in the case of a contractual partnership with an entity described in subsection (a)(1) or (a)(2):
(A)
disclosing to the Secretary of Education all contractual partnerships with the applicable entity from the previous 10 years; and
(B)
providing to the Secretary of Education sufficient evidence that such partnerships have been terminated; or
(2)
in the case of the employment of a CCP-funded instructor as described in subsection (a)(3), by demonstrating, to the satisfaction of the Secretary of Education, that the institution no longer employs a CCP-funded instructor.
(c)
CCP-Funded instructor defined— In this section, the term “CCP-funded instructor” means a professor, teacher, or any other individual who—
(1)
provides instruction directly to the students of an institution of higher education; and
(2)
received funds, directly or indirectly, from the Chinese Communist Party while employed by such institution.
(d)
Effective date— The restrictions under this section shall take effect 180 days after the date of the enactment of this Act.

Sec. 502 Limiting exemption from foreign agent registration requirement for persons engaging in activities in furtherance of certain pursuits to activities not promoting political agenda of foreign governments

(a)
Limitation on exemption— Section 3(e) of the Foreign Agents Registration Act of 1938 (22 U.S.C. 613(e)) is amended by striking the semicolon at the end and inserting the following: “, but only if the activities do not promote the political agenda of a government of a foreign country;”.
(b)
Effective date— The amendment made by subsection (a) shall apply with respect to activities carried out on or after the date of the enactment of this Act.

Sec. 503 Reporting exchange visitor change in field of study

With respect to a principal nonimmigrant exchange visitor admitted into the United States in the J–1 classification under section 101(a)(15)(J) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(J)) in order to study, the Secretary of State shall take such action as may be necessary to ensure that the applicable program sponsor is required to use the Student and Exchange Visitor Information System to report any change to the nonimmigrant’s primary field of study. In carrying out this section, the Secretary of State shall take into account the record keeping and reporting requirements of the Secretary of Homeland Security with regard to nonimmigrants admitted into the United States in the F–1 and M–1 classifications under subparagraphs (F) and (M) of section 101(a)(15) of such Act (8 U.S.C. 1101(a)(15)).

Sec. 504 Reporting certain research program participation

(a)
In general— With respect to a principal nonimmigrant admitted into the United States in the J–1 classification under section 101(a)(15)(J) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(J)), in the F–1 classification under section 101(a)(15)(F) of such Act, or in the M–1 classification under section 101(a)(15)(M) of such Act, the Secretary of State and the Secretary of Homeland Security shall take such action as may be necessary to ensure that the applicable program sponsor or academic or nonacademic institution is required to use the Student and Exchange Visitor Information System to report when the nonimmigrant is participating in a research program funded in whole or in part through a grant, contract, or other similar form of support provided by the Federal Government, as well as program identification information.
(b)
Notifications—
(1)
Secretary— In the case of a nonimmigrant described in subsection (a), the Secretary of Homeland Security shall notify the appropriate program manager at an Executive agency (as defined in section 105 of title 5, United States Code) if and when the Secretary obtains information that the nonimmigrant is participating in a research program funded in whole or in part through a grant, contract, or other similar form of support provided by such agency prior to the commencement of that nonimmigrant’s participation and not later than 21 days after authorizing such participation.
(2)
Sponsor or institution— In the case of a nonimmigrant described in subsection (a), the applicable program sponsor or academic or nonacademic institution shall notify the appropriate program manager at an Executive agency (as defined in section 105 of title 5, United States Code) if and when the sponsor or institution obtains information that the nonimmigrant is participating in a research program funded in whole or in part through a grant, contract, or other similar form of support provided by such agency prior to the commencement of that nonimmigrant’s participation and not later than 21 days after authorizing such participation.

Sec. 505 Review and revocation of certain nonimmigrant visas

(a)
In general— The Secretary of Homeland Security shall have the authority to review and revoke a nonimmigrant visa granted under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) if, in consultation with the Attorney General, the Secretary finds that—
(1)
the visa holder has misrepresented his or her intention to pursue a certain program or field of study;
(2)
following a change to the nonimmigrant’s primary field of study as described under section 504, that the new primary field of study would have triggered a higher level of scrutiny during the visa application process, and that the visa holder poses a risk to the homeland security of the United States, the national security of the United States, or research integrity at their applicable program sponsor or institution;
(3)
the visa holder’s enrollment in a research program funded in whole or in part through a grant, contract, or other similar form of support provided by the Federal Government poses a risk to the homeland security of the United States, the national security of the United States, or research integrity at their applicable program sponsor or institution; or
(4)
the visa was granted to an alien who is a citizen of the People’s Republic of China if the Secretary of State determines that the alien seeks to enter the United States to participate in graduate-level or post-graduate-level coursework or academic research in a field of science, technology, engineering, or mathematics at an institution of higher education.
(b)
Notice— Thirty days before the commencement of a review under subsection (a), the Secretary of Homeland Security shall provide the applicable program sponsor or institution with a notice containing the specific basis of the forthcoming review. During this 30-day period, the program sponsor or institution may take corrective action to alleviate any concerns raised by the Secretary. At the conclusion of the 30-day period, the Secretary shall determine whether the program sponsor or institution has satisfactorily addressed the concerns or a review remains necessary.
(c)
Administrative and judicial review—
(1)
In general— There shall be no administrative or judicial review of a determination to revoke a visa under this section except in accordance with this subsection.
(2)
Administrative review—
(A)
Single level of administrative appellate review— The Secretary of Homeland Security shall establish an appellate authority to provide for a single level of administrative appellate review of such a determination.
(B)
Standard for review— Such administrative appellate review shall be based solely upon the administrative record established at the time of the determination and upon such additional or newly discovered evidence as may not have been available at the time of the determination.
(3)
Judicial review—
(A)
Limitation to review of removal— There shall be judicial review of a determination to revoke a visa under this section only in the judicial review of an order of removal under section 242 of the Immigration and Nationality Act (8 U.S.C. 1252).
(B)
Standard for judicial review— Such judicial review shall be based solely upon the administrative record established at the time of the review by the appellate authority and the findings of fact and determinations contained in such record shall be conclusive unless the applicant can establish abuse of discretion or that the findings are directly contrary to clear and convincing facts contained in the record considered as a whole.

Sec. 506 Annual report

(a)
In general— The Secretary of Homeland Security shall require the Academic Institutions Subcommittee of the Homeland Security Advisory Council of the Department of Homeland Security to provide an annual report to the Committee on the Judiciary, the Committee on Homeland Security, and the Committee on Foreign Affairs of the House of Representatives, and the Committee on the Judiciary, the Committee on Homeland Security and Governmental Affairs, and the Committee on Foreign Relations of the Senate, on—
(1)
the implementation and execution of any visa reviews and revocations undertaken under section 506;
(2)
the number of alien students enrolled at academic or nonacademic institutions in the United States, disaggregated by—
(A)
program of study;
(B)
previous and current nationality; and
(C)
participation in a research program (which may or may not be classified) funded in whole or in part through a grant, contract, or other similar form of support provided by the Federal Government, differentiated by agency, sub-agency, and program; and
(3)
the number of alien students who have changed their field of study, including their original and subsequent field of study, disaggregated by the information described in subparagraphs (A), (B), and (C) of paragraph (2).
(b)
Appendix— Each report under subsection (a) shall include an appendix containing any feedback provided on a voluntary basis by any program sponsor or institution affected by a visa review or revocation undertaken under section 506.

B Protecting Our Universities Act

Sec. 511 Sensitive research project list

(a)
Sensitive research project list— The Office of the Director of National Intelligence shall, in consultation with the National Security Advisor shall actively maintain a list of sensitive research projects. Such list shall—
(1)
be referred to as the Sensitive Research Projects List; and
(2)
for each project included on the list, indicate—
(A)
the qualified funding agency that is funding the project;
(B)
whether the project is open to student participation; and
(C)
whether the project is related to—
(i)
an item listed on the Commerce Control List (CCL) maintained by the Department of Commerce;
(ii)
an item listed on the United States Munitions List maintained by the Department of State; or
(iii)
technology designated by the Secretary of Defense as having a technology readiness level of 1, 2, or 3.
(b)
Report to Congress— Not later than one year after the date of enactment of this Act, and every six months thereafter, the interagency working group described in section 1746 of the National Defense Authorization Act for Fiscal Year 2020 (42 U.S.C. 6601 note) shall provide a report to the Committee on Education and Labor, the Committee on Armed Services, and the Permanent Select Committee on Intelligence of the House of Representatives, and to the Committee on Health, Education, Labor, and Pensions, the Committee on Armed Services, and the Select Committee on Intelligence of the Senate, regarding the threat of espionage at institutions of higher education. In each such briefing, the interagency working group shall identify actions that may be taken to reduce espionage carried out through student participation in sensitive research projects. The interagency working group shall also include in this report an assessment of whether the current licensing regulations relating to the International Traffic in Arms Regulations and the Export Administration Regulations are sufficient to protect the security of the projects listed on the Sensitive Research Project List.

Sec. 512 Foreign student participation in sensitive research projects

(a)
Approval of foreign student participation required— Beginning on the date that is one year after the date of enactment of this Act, for each project on the Sensitive Research Project List that is open to student participation, the head of such project at the institution of higher education at which the project is being carried out shall ensure that each student participating in such project shall be required to provide proof of citizenship before the student is permitted to participate in such project. A student who is a citizen of a country identified in subsection (b) shall be permitted to participate in such a project only if—
(1)
the student applies for, and receives approval from, the Director of National Intelligence to participate in such project, based on a background check and any other information the Director determines to be appropriate; and
(2)
in the case of such a project that is related to an item or technology described in subparagraph (C) of section 3(c)(2), the student applies for, and receives approval from, the head of the qualified funding agency, to participate in such project.
(b)
List of citizenship requiring approval— Approval under subsection (a) shall be required for any student who is a citizen of a country that is one of the following:
(1)
The People’s Republic of China.
(2)
The Democratic People’s Republic of Korea.
(3)
The Russian Federation.
(4)
The Islamic Republic of Iran.
(5)
Any country identified by the head of the qualified funding agency as requiring approval for the purposes of this section.

Sec. 513 Foreign entities

(a)
List of foreign entities that pose an intelligence threat— Not later than one year after the date of the enactment of this Act, the Director of National Intelligence shall identify foreign entities, including governments, corporations, non-profit and for-profit organizations, and any subsidiary or affiliate of such an entity, that the Director determines pose a threat of espionage with respect to sensitive research projects, and shall develop and maintain a list of such entities. The Director may add or remove entities from such list at any time. The initial list developed by the Director shall include the following entities (including any subsidiary or affiliate):
(1)
Huawei Technologies Company.
(2)
ZTE Corporation.
(3)
Hytera Communications Corporation.
(4)
Hangzhou Hikvision Digital Technology Company.
(5)
Dahua Technology Company.
(6)
Kaspersky Lab.
(7)
Any entity that is owned or controlled by, or otherwise has demonstrated financial ties to, the government of a country identified under section 4(b).
(b)
Notice to institutions of higher education— The Director of National Intelligence shall make the initial list required under subsection (a), and any changes to such list, available to the Secretary of Education, the interagency working group, and the head of each qualified funding agency as soon as practicable. The Secretary of Education shall provide such initial list and subsequent amendments to each institution of higher education at which a project on the Sensitive Research Project List is being carried out.
(c)
Prohibition on use of certain technologies— Beginning on the date that is one year after the date of the enactment of this Act, the head of each sensitive research project shall, as a condition of receipt of funds from a qualified funding agency, provide an assurance to such qualified funding agency that, beginning on the date that is two years after the date of the enactment of this Act, any technology developed by an entity included on the list maintained under subsection (a) shall not be utilized in carrying out the sensitive research project.

Sec. 514 Enforcement

The head of each qualified funding agency shall take such steps as may be necessary to enforce the provisions of sections 510 and 511 of this Act. Upon determination that the head of a sensitive research project has failed to meet the requirements of either section 510 or section 511, the head of a qualified funding agency may determine the appropriate enforcement action, including—
(1)
imposing a probationary period, not to exceed 6 months, on the head of such project, or on the project;
(2)
reducing or otherwise limiting the funding for such project until the violation has been remedied;
(3)
permanently cancelling the funding for such project; or
(4)
any other action the head of the qualified funding agency determines to be appropriate.

Sec. 515 Definitions

In this subtitle:
(1)
Citizen of a country— The term “citizen of a country”, with respect to a student, includes all countries in which the student has held or holds citizenship or holds permanent residency.
(2)
Institution of higher education— The term “institution of higher education” means an institution described in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002) that receives Federal funds in any amount and for any purpose.
(3)
Intelligence community— The term “intelligence community” has the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 3003).
(4)
Qualified funding agency— The term “qualified funding agency”, with respect to a sensitive research project, means—
(A)
the Department of Defense, if the sensitive research project is funded in whole or in part by the Department of Defense;
(B)
the Department of Energy, if the sensitive research project is funded in whole or in part by the Department of Energy; or
(C)
an element of the intelligence community, if the sensitive research project is funded in whole or in part by the element of the intelligence community.
(5)
Sensitive research project— The term “sensitive research project” means a research project at an institution of higher education that is funded by a qualified funding agency, except that such term shall not include any research project that is classified or that requires the participants in such project to obtain a security clearance.
(6)
Student participation— The term “student participation” shall not include student activity in—
(A)
a research project that is required for completion of a course in which the student is enrolled at an institution of higher education; or
(B)
a research project for which the student is conducting unpaid research.

C Other matters

Sec. 521 Report on China benefitting from United States taxpayer-funded research

(a)
In general— Not later than one year after the date of enactment of the Act, the Attorney General, in consultation with the Secretary of the Treasury, the Secretary of Commerce, the Secretary of State, and the Director of National Intelligence, shall submit to the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate a report on the extent to which China has benefitted from United States taxpayer-funded research.
(b)
Elements— The report under subsection (a) shall include the following:
(1)
The extent to which United States taxpayer-funded research has benefitted China, including a list of United States Government-funded entities, such as research institutions, laboratories, and institutions of higher education, which have hired Chinese nationals or allowed Chinese nationals to conduct research, including an estimate in the number of nationals hired or involved in research projects.
(2)
A list of United States Government programs, grants, and other forms of research funding in the fields of science, technology, engineering, and math (STEM) fields that have directly or indirectly cooperated or affiliated with research institutions in China or Chinese Communist Party entities.
(3)
The extent to which China’s funding of United States taxpayer-funded research institutions has benefitted China.
(4)
How the Government of China and the Chinese Communist Party have used United States taxpayer-funded research, including as part of China’s efforts to support “civil-military fusion” and human rights abuses.
(c)
Definition— In this section, the term “United States taypayer-funded research” means research—
(1)
funded by a grant from the Federal Government or a State government; or
(2)
conducted at an institution that receives funding from the Federal Government or a State government.

Sec. 522 Conditions on Federal research grants

As a condition of receiving a Federal research and development grant in a field of science, technology, engineering, or mathematics, a grant recipient shall certify that the recipient—
(1)
is not—
(A)
a citizen of the People’s Republic of China; or
(B)
a participant in a foreign talent recruitment program of the People’s Republic of China listed by the Secretary of State in accordance with section 521; and
(2)
will not knowingly employ to carry out activities funded by the Federal research and development grant—
(A)
a citizen of the People’s Republic of China; or
(B)
a participant in a foreign talent recruitment program of the People’s Republic of China listed by the Secretary of State in accordance with section 521.

Sec. 523 Protecting institutions, laboratories, and research institutes

(a)
In general— Notwithstanding any other provision of law, the head of each Federal agency shall ensure that any institution of higher education, laboratory, or research institute receiving Federal assistance agrees, as a condition of such assistance, to not knowingly employ any individual who is a participant in a foreign talent recruitment program of the People’s Republic of China.
(b)
Program participation agreements— Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the end the following:

“(30) The institution will not knowingly employ any individual who is a participant in a foreign talent recruitment program of the People’s Republic of China listed by the Secretary of State in accordance with section 7 of the SECURE CAMPUS Act of 2021.”

Sec. 524 Registration of participants in foreign talent recruitment programs of the People’s Republic of China as agents of the Government of the People’s Republic of China

Notwithstanding section 3 of the Foreign Agents Registration Act of 1938 (22 U.S.C. 613), any individual in the United States who is associated with a foreign talent recruitment program of the People’s Republic of China, either as a recruiter or as a recruit—
(1)
shall be deemed to be an agent of a foreign principal (as defined in section 1(c) of such Act (22 U.S.C. 611(c)); and
(2)
shall comply with the registration requirements set forth in section 2 of such Act (22 U.S.C. 612) not later than 30 days after the later of—
(A)
the date of the enactment of this Act; or
(B)
the date on which the individual entered the United States.

Sec. 525 Economic espionage

Section 1839(1) of title 18, United States Code, is amended—
(1)
by inserting “education, research,” after “commercial,”; and
(2)
by inserting “or otherwise incorporated or substantially located in or composed of citizens of countries subject to compulsory political or governmental representation within corporate leadership” after “foreign government”.

Sec. 526 Department of state list of foreign talent recruitment programs of the People’s Republic of China

(a)
In general— Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in consultation with the Attorney General, the Secretary of Defense, and the Director of National Intelligence, shall compile and publish in the Federal Register a list of foreign talent recruitment programs of the People’s Republic of China.
(b)
Annual review and revision— Not less frequently than annually, the Secretary of State shall—
(1)
review and revise the list compiled under subsection (a); and
(2)
publish the revised list in the Federal Register.

Sec. 527 Definitions

For purposes of sections 521 through 526:
(1)
Foreign talent recruitment program of the People’s Republic of China— The term “foreign talent recruitment program of the People’s Republic of China” means any effort organized, managed, funded, or otherwise controlled by the Government of the People’s Republic of China or the Chinese Communist Party to employ, contract, or otherwise compensate 1 or more individuals to conduct research, development, testing, or any other science or technology activity for the direct or indirect benefit of the People’s Republic of China.
(2)
Institution of higher education— The term “institution of higher education” has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).

Sec. 528 Disclosure on certain visa applications

(a)
Disclosure requirement for f and m visas— Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall update Form I–20, or a successor form with respect to eligibility for nonimmigrant student status, to require an alien submitting such form to report—
(1)
whether the alien has received or plans to receive certain funds;
(2)
the amount of any certain funds received by the alien; and
(3)
a description of the entity providing any certain funds to the alien.
(b)
Disclosure requirement for J visas— Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall update Form DS–2019, or a successor form with respect to eligibility for a exchange visitor status, to require an alien submitting such form to report—
(1)
whether the alien has received or plans to receive certain funds;
(2)
the amount of any certain funds received by the alien; and
(3)
a description of the entity providing any certain funds to the alien.
(c)
Updated disclosure requirement—
(1)
In general— An alien who receives certain funds after receiving a visa under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) shall report to the Secretary of Homeland Security and the Secretary of State the receipt of such funds not more than 90 days after the date on which such funds are received.
(2)
Provisional revocation based on failure to comply with disclosure requirement— An alien who receives certain funds and does not report such receipt pursuant to paragraph (1) is subject to revocation of any visa or other entry documentation regardless of when the visa or other entry documentation was issued.
(d)
Disclosure for alien spouse and minor children— The disclosure requirements under subsections (a) through (c) shall apply to an alien spouse or any minor children applying for or receiving a visa under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)).
(e)
Applicability— Not later than 180 days after the date of the enactment of this Act, an alien, alien spouse, or any minor children who have a valid visa under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) on the date of the enactment of this Act, shall report to the Secretary of Homeland Security—
(1)
whether such alien has received or plans to receive certain funds;
(2)
the amount of any certain funds received by the alien; and
(3)
a description of the entity providing any certain funds to the alien.
(f)
Certain funds defined— In this section, the term “certain funds” includes any amount of money provided to an alien from—
(1)
the Government of the People’s Republic of China;
(2)
the Chinese Communist Party; or
(3)
any entity owned or controlled by the Government of the People’s Republic of China or the Chinese Communist Party.

Sec. 529 Review by Committee on Foreign Investment in the United States of certain foreign gifts to and contracts with institutions of higher education

(a)
Amendments to Defense Production Act of 1950—
(1)
Definition of covered transaction— Subsection (a)(4) of section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) is amended—
(A)
in subparagraph (A)—
(i)
in clause (i), by striking “; and” and inserting a semicolon;
(ii)
in clause (ii), by striking the period at the end and inserting “; and”; and
(iii)
by adding at the end the following:

“(iii) any transaction described in subparagraph (B)(vi) proposed or pending after the date of the enactment of the China Strategic Competition Act of 2021.”

(B)
in subparagraph (B), by adding at the end the following:

“(vi) Any gift to an institution of higher education from a foreign person, or the entry into a contract by such an institution with a foreign person, if—

“(I)

“(aa) the value of the gift or contract equals or exceeds $1,000,000; or

“(bb) the institution receives, directly or indirectly, more than one gift from or enters into more than one contract, directly or indirectly, with the same foreign person for the same purpose the aggregate value of which, during the period of 2 consecutive calendar years, equals or exceeds $1,000,000; and

“(II) the gift or contract—

“(aa) relates to research, development, or production of critical technologies and provides the foreign person potential access to any material nonpublic technical information (as defined in subparagraph (D)(ii)) in the possession of the institution; or

“(bb) is a restricted or conditional gift or contract (as defined in section 117(h) of the Higher Education Act of (20 U.S.C. 1011f(h))) that establishes control.”

(C)
by adding at the end the following:

“(G) Foreign gifts to and contracts with institutions of higher education—For purposes of subparagraph (B)(vi):

“(i) Contract—The term “contract” means any agreement for the acquisition by purchase, lease, or barter of property or services by a foreign person, for the direct benefit or use of either of the parties.

“(ii) Gift—The term “gift” means any gift of money or property.

“(iii) Institution of higher education—The term “institution of higher education” means any institution, public or private, or, if a multicampus institution, any single campus of such institution, in any State—

“(I) that is legally authorized within such State to provide a program of education beyond secondary school;

“(II) that provides a program for which the institution awards a bachelor’s degree (or provides not less than a 2-year program which is acceptable for full credit toward such a degree) or a more advanced degree;

“(III) that is accredited by a nationally recognized accrediting agency or association; and

“(IV) to which the Federal Government extends Federal financial assistance (directly or indirectly through another entity or person), or that receives support from the extension of Federal financial assistance to any of the institution’s subunits.”

(2)
Mandatory declarations— Subsection (b)(1)(C)(v)(IV)(aa) of such section is amended by adding at the end the following: “Such regulations shall require a declaration under this subclause with respect to a covered transaction described in subsection (a)(4)(B)(vi)(II)(aa).”.
(3)
Factors to be considered— Subsection (f) of such section is amended—
(A)
in paragraph (10), by striking “; and” and inserting a semicolon;
(B)
by redesignating paragraph (11) as paragraph (12); and
(C)
by inserting after paragraph (10) the following:

“(11) as appropriate, and particularly with respect to covered transactions described in subsection (a)(4)(B)(vi), the importance of academic freedom at institutions of higher education in the United States; and”

(4)
Membership of cfius— Subsection (k) of such section is amended—
(A)
in paragraph (2)—
(i)
by redesignating subparagraphs (H), (I), and (J) as subparagraphs (I), (J), and (K), respectively; and
(ii)
by inserting after subparagraph (G) the following:

“(H) In the case of a covered transaction involving an institution of higher education (as defined in subsection (a)(4)(G)), the Secretary of Education.”

(B)
by adding at the end the following:

“(8) Inclusion of other agencies on committee—In considering including on the Committee under paragraph (2)(K) the heads of other executive departments, agencies, or offices, the President shall give due consideration to the heads of relevant research and science agencies, departments, and offices, including the Secretary of Health and Human Services, the Director of the National Institutes of Health, and the Director of the National Science Foundation.”

(5)
Contents of annual report relating to critical technologies— Subsection (m)(3) of such section is amended—
(A)
in subparagraph (B), by striking “; and” and inserting a semicolon;
(B)
in subparagraph (C), by striking the period at the end and inserting a semicolon; and
(C)
by adding at the end the following:

“(D) an evaluation of whether there are foreign malign influence or espionage activities directed or directly assisted by foreign governments against institutions of higher education (as defined in subsection (a)(4)(G)) aimed at obtaining research and development methods or secrets related to critical technologies; and

“(E) an evaluation of, and recommendation for any changes to, reviews conducted under this section that relate to institutions of higher education, based on an analysis of disclosure reports submitted to the chairperson under section 117(a) of the Higher Education Act of 1965 (20 U.S.C. 1011f(a)).”

(b)
Effective date; applicability— The amendments made by subsection (a) shall—
(1)
take effect on the date of the enactment of this Act, subject to the requirements of subsections (d) and (e); and
(2)
apply with respect to any covered transaction the review or investigation of which is initiated under section 721 of the Defense Production Act of 1950 on or after the date that is 30 days after the publication in the Federal Register of the notice required under subsection (e)(2).
(c)
Regulations—
(1)
In general— The Committee on Foreign Investment in the United States (in this section referred to as the “Committee”), which shall include the Secretary of Education for purposes of this subsection, shall prescribe regulations as necessary and appropriate to implement the amendments made by subsection (a).
(2)
Elements— The regulations prescribed under paragraph (1) shall include—
(A)
regulations accounting for the burden on institutions of higher education likely to result from compliance with the amendments made by subsection (a), including structuring penalties and filing fees to reduce such burdens, shortening timelines for reviews and investigations, allowing for simplified and streamlined declaration and notice requirements, and implementing any procedures necessary to protect academic freedom; and
(B)
guidance with respect to—
(i)
which gifts and contracts described in described in clause (vi)(II)(aa) of subsection (a)(4)(B) of section 721 of the Defense Production Act of 1950, as added by subsection (a)(1), would be subject to filing mandatory declarations under subsection (b)(1)(C)(v)(IV) of that section; and
(ii)
the meaning of “control”, as defined in subsection (a) of that section, as that term applies to covered transactions described in clause (vi) of paragraph (4)(B) of that section, as added by subsection (a)(1).
(3)
Issuance of final rule— The Committee shall issue a final rule to carry out the amendments made by subsection (a) after assessing the findings of the pilot program required by subsection (e).
(d)
Pilot program—
(1)
In general— Beginning on the date that is 30 days after the publication in the Federal Register of the matter required by paragraph (2) and ending on the date that is 570 days thereafter, the Committee shall conduct a pilot program to assess methods for implementing the review of covered transactions described in clause (vi) of section 721(a)(4)(B) of the Defense Production Act of 1950, as added by subsection (a)(1).
(2)
Proposed determination— Not later than 270 days after the date of the enactment of this Act, the Committee shall, in consultation with the Secretary of Education, publish in the Federal Register—
(A)
a proposed determination of the scope of and procedures for the pilot program required by paragraph (1);
(B)
an assessment of the burden on institutions of higher education likely to result from compliance with the pilot program;
(C)
recommendations for addressing any such burdens, including shortening timelines for reviews and investigations, structuring penalties and filing fees, and simplifying and streamlining declaration and notice requirements to reduce such burdens; and
(D)
any procedures necessary to ensure that the pilot program does not infringe upon academic freedom.
(3)
Report on findings— Upon conclusion of the pilot program required by paragraph (1), the Committee shall submit to Congress a report on the findings of that pilot program that includes—
(A)
a summary of the reviews conducted by the Committee under the pilot program and the outcome of such reviews;
(B)
an assessment of any additional resources required by the Committee to carry out this section or the amendments made by subsection (a);
(C)
findings regarding the additional burden on institutions of higher education likely to result from compliance with the amendments made by subsection (a) and any additional recommended steps to reduce those burdens; and
(D)
any recommendations for Congress to consider regarding the scope or procedures described in this section or the amendments made by subsection (a).

Sec. 530 Disclosures of foreign gifts and contracts at institutions of higher education

(a)
Disclosures of foreign gifts— Section 117 of the Higher Education Act of 1965 (20 U.S.C. 1011f) is amended to read as follows:

“117. Disclosures of foreign gifts and agreements

“(a) Disclosure reports

“(1) Aggregate gifts and contract disclosures—An institution shall file a disclosure report described in subsection (b) with the Secretary and the Secretary of the Treasury (in the capacity of the Secretary as the chairperson of the Committee on Foreign Investment in the United States under section 721(k)(3) of the Defense Production Act of 1950 (50 U.S.C. 4565(k)(3))) not later than March 31 immediately following any calendar year in which the institution receives a gift from, or enters into a contract with, a foreign source, 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.

“(2) Disclosure of contracts with undetermined monetary value—An institution shall file a disclosure report described in subsection (b) with the Secretary and the Secretary of the Treasury (in the capacity of the Secretary as the chairperson of the Committee on Foreign Investment in the United States under section 721(k)(3) of the Defense Production Act of 1950 (50 U.S.C. 4565(k)(3))) not later than March 31 immediately following any calendar year in which the institution enters into a contract with a foreign source that has an undetermined monetary value.

“(3) Foreign source ownership or control disclosures—In the case of an institution that is owned or controlled by a foreign source, the institution shall file a disclosure report described in subsection (b) with the Secretary and the Secretary of the Treasury (in the capacity of the Secretary as the chairperson of the Committee on Foreign Investment in the United States under section 721(k)(3) of the Defense Production Act of 1950 (50 U.S.C. 4565(k)(3))) not later than March 31 of every year.

“(b) Contents of report—Each report to the Secretary required by subsection (a) shall contain the following:

“(1)

“(A) In the case of an institution required to file a report under paragraph (1) or (2) of subsection (a)—

“(i) for gifts received from or contracts entered into with a foreign government, the aggregate amount of such gifts and contracts received from each foreign government, including the content of each such contract; and

“(ii) for gifts received from or contracts entered into with a foreign source other than a foreign government, the aggregate dollar amount of such gifts and contracts attributable to a particular country and the legal or formal name of the foreign source, and the content of each such contract.

“(B) For purposes of this paragraph, the country to which a gift is attributable is—

“(i) the country of citizenship, or if unknown, the principal residence, for a foreign source who is a natural person; or

“(ii) the country of incorporation, or if unknown, the principal place of business, for a foreign source which is a legal entity.

“(2) In the case of an institution required to file a report under subsection (a)(3)—

“(A) the information described in paragraph (1)(A) (without regard to any gift or contract threshold described in subsection (a)(1));

“(B) the identity of the foreign source that owns or controls the institution;

“(C) the date on which the foreign source assumed ownership or control; and

“(D) any changes in program or structure resulting from the change in ownership or control.

“(3) An assurance that the institution will maintain a true copy of each gift or contract agreement subject to the disclosure requirements under this section, until the latest of—

“(A) the date that is 4 years after the date of the agreement;

“(B) the date on which the agreement terminates; or

“(C) the last day of any period that applicable State public record law requires a true copy of such agreement to be maintained.

“(4) An assurance that the institution will produce true copies of gift and contract agreements subject to the disclosure requirements under this section upon request of the Secretary during a compliance audit or other institutional investigation and shall ensure all gifts and contracts from the foreign source are translated into English by a third party unaffiliated with the foreign source or institution for this purpose.

“(c) Additional disclosures for restricted and conditional gifts and contracts—Notwithstanding the provisions of subsection (b), whenever any institution receives a restricted or conditional gift or contract from a foreign source, the institution shall disclose the following to the Department translated into English by a third party unaffiliated with the foreign source or institution:

“(1) For such gifts received from or contracts entered into with a foreign source other than a foreign government, the amount, the date, and a description of such conditions or restrictions. The report shall also disclose the country of citizenship, or if unknown, the principal residence for a foreign source which is a natural person, and the country of incorporation, or if unknown, the principal place of business for a foreign source which is a legal entity.

“(2) For gifts received from or contracts entered into with a foreign government, the amount, the date, a description of such conditions or restrictions, and the name of the foreign government.

“(d) Relation to other reporting requirements

“(1) State requirements—If an institution that is required to file a disclosure report under subsection (a) is within a State which has enacted requirements for public disclosure of gifts from or contracts with a foreign source that includes all information required under this section for the same or an equivalent time period, a copy of the disclosure report filed with the State may be filed with the Secretary and the Secretary of the Treasury in lieu of the report required under such subsection. The State in which the institution is located shall provide to the Secretaries such assurances as the Secretaries may require to establish that the institution has met the requirements for public disclosure under State law if the State report is filed.

“(2) Use of other federal reports—If an institution receives a gift from, or enters into a contract with, a foreign source, where any other department, agency, or bureau of the executive branch requires a report containing all the information required under this section for the same or an equivalent time period, a copy of the report may be filed with the Secretary and the Secretary of the Treasury in lieu of a report required under subsection (a).

“(e) Confucius Institute agreements

“(1) Defined term—In this subsection, the term “Confucius Institute” means a cultural institute directly or indirectly funded by the Government of the People’s Republic of China.

“(2) Disclosure requirement—Any institution that has entered into an agreement with a Confucius Institute shall immediately make the full text of such agreement available—

“(A) on the publicly accessible website of the institution;

“(B) to the Department of Education;

“(C) to the Committee on Health, Education, Labor, and Pensions of the Senate; and

“(D) to the Committee on Education and Labor of the House of Representatives.

“(3) In subsection (i), as redesignated—

“(A) in paragraph (2), by amending subparagraph (A) to read as follows:

“(B) in paragraph (3), by inserting before the semicolon at the end the following: “, or the fair market value of an in-kind gift”.

“(f) Public disclosure and modification of reports

“(1) In general—Not later than 30 days after receiving a disclosure report under this section, the Secretary shall make such report electronically available to the public for downloading on a searchable database under which institutions can be individually identified and compared.

“(2) Modifications—The Secretary shall incorporate a process permitting institutions to revise and update previously filed disclosure reports under this section to ensure accuracy, compliance, and ability to cure.

“(g) Sanctions for noncompliance

“(1) In general—As a sanction for noncompliance with the requirements under this section, the Secretary may impose a fine on an institution that in any year knowingly or willfully violates this section, that is—

“(A) in the case of a failure to disclose a gift or contract with a foreign source as required under this section or to comply with the requirements of subsection (b)(4), in an amount that is not less than $250 but not more than the amount of the gift or contract with the foreign source; or

“(B) in the case of any violation of the requirements of subsection (a)(3), in an amount that is not more than 25 percent of the total amount of funding received by the institution under this Act.

“(2) Repeated failures

“(A) Knowing and willful failures—In addition to a fine for a violation in any year in accordance with paragraph (1) and subject to subsection (e)(2), the Secretary shall impose a fine on an institution that knowingly and willfully fails in 3 consecutive years to comply with the requirements of this section, that is—

“(i) in the case of a failure to disclose a gift or contract with a foreign source as required under this section or to comply with the requirements of subsection (b)(4), in an amount that is not less than $100,000 but not more than twice the amount of the gift or contract with the foreign source; or

“(ii) in the case of any violation of the requirements of subsection (a)(3), in an amount that is not more than 25 percent of the total amount of funding received by the institution under this Act.

“(B) Administrative failures—The Secretary shall impose a fine on an institution that fails to comply with the requirements of this section in 3 consecutive years, in an amount that is not less than $250 but not more than the amount of the gift or contract with the foreign source.

“(C) Compliance plan requirement—An institution that fails to file a disclosure report for a receipt of a gift from or contract with a foreign source in 2 consecutive years, shall be required to submit a compliance plan to Secretary.

“(h) Compliance officer—Any institution that is required to report a gift or contract under this section shall designate and maintain a compliance officer who—

“(1) shall be a current employee or legally authorized agent of such institution; and

“(2) shall be responsible, on behalf of the institution, for compliance with the foreign gift reporting requirement under this section and section 124, if applicable.

“(i) Single point of contact—The Secretary shall maintain a single point of contact to—

“(1) receive and respond to inquiries and requests for technical assistance from institutions of higher education regarding compliance with the requirements of this section; and

“(2) coordinate the disclosure of information on the searchable database, and process for modifications of disclosures and ability to cure, as described in subsection (e).

“(j) Treatment of certain payments and gifts

“(1) Exclusions—The following shall not be considered a gift from a foreign source under this section:

“(A) Any payment of one or more elements of a student’s cost of attendance (as 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 on behalf of no more than 15 students that is not made under contract with such foreign source, except for the agreement between the institution and such student covering one or more elements of such student’s cost of attendance.

“(B) Assignment or license of registered industrial and intellectual property rights, such as patents, utility models, trademarks, or copyrights, or technical assistance, that are not identified as being associated with a national security risk or concern by the Federal Research Security Council as described under section 7902 of title 31, United States Code, as added by section 4493 of the Securing America’s Future Act.

“(2) Inclusions—Any gift to, or contract with, an entity or organization, such as a research foundation, that operates substantially for the benefit or under the auspices of an institution shall be considered a gift to or with respectively, such institution.

“(k) Definitions—In this section—

“(1) the term “contract”—

“(A) means any—

“(i) agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties, except as provided in subparagraph (B); or

“(ii) affiliation, agreement, or similar transaction with a foreign source and is based on the use or exchange of an institution’s name, likeness, time, services, or resources, except as provided in subparagraph (B); and

“(B) does not include any agreement made by an institution located in the United States for the acquisition, by purchase, lease, or barter, of property or services from a foreign source;

“(2) 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) an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and

“(D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source;

“(3) the term “gift” means any gift of money, property, resources, staff, or services;

“(4) the term “institution” means an institution of higher education, as defined in section 102, or, if a multicampus institution, any single campus of such institution, in any State; and

“(5) the term “restricted or conditional gift or contract” means any endowment, gift, grant, contract, award, present, or property of any kind which includes provisions regarding—

“(A) the employment, assignment, or termination of faculty;

“(B) the establishment of departments, centers, institutes, instructional programs, research or lecture programs, or new faculty positions;

“(C) the selection or admission of students; or

“(D) the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion.”

(b)
Policy regarding conflicts of interest from foreign gifts and contracts— Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is amended by adding at the end the following:

“124. Institutional policy regarding foreign gifts and contracts to faculty and staff

“(a) Requirement To maintain policy and database—Each institution of higher education described in subsection (b) shall—

“(1) maintain a policy requiring faculty, professional staff, and other staff engaged in research and development (as determined by the institution) employed at such institution to disclose to such institution any gifts received from, or contracts entered into with, a foreign source;

“(2) maintain a searchable database of information disclosed in paragraph (1) for the previous five years, except an institution shall not be required to include in the database gifts or contracts received or entered into before the date of enactment of the Securing America’s Future Act; and

“(3) maintain a plan to effectively identify and manage potential information gathering by foreign sources through espionage targeting faculty, professional staff, and other staff engaged in research and development (as determined by the institution) that may arise from gifts received from, or contracts entered into with, a foreign source, including through the use of periodic communications and enforcement of the policy described in paragraph (1).

“(b) Institutions—An institution of higher education shall be subject to the requirements of this section if such institution—

“(1) is an institution of higher education as defined under section 102; and

“(2) had more than $5,000,000 in research and development expenditures in any of the previous five years.

“(c) Sanctions for noncompliance

“(1) In general—As a sanction for noncompliance with the requirements under this section, the Secretary may impose a fine on an institution that in any year knowingly or willfully violates this section, in an amount that is not less than $250 but not more than $1,000.

“(2) Second failure—In addition to a fine for a violation in accordance with paragraph (1), the Secretary shall impose a fine on an institution that knowingly, willfully, and repeatedly fails to comply with the requirements of this section in a second consecutive year in an amount that is not less than $1,000 but not more than $25,000.

“(3) Third and additional failures—In addition to a fine for a violation in accordance with paragraph (1) or (2), the Secretary shall impose a fine on an institution that knowingly, willfully, and repeatedly fails to comply with the requirements of this section in a third consecutive year, or any consecutive year thereafter, in an amount that is not less than $25,000 but not more than $50,000.

“(4) Administrative failures—The Secretary shall impose a fine on an institution that fails in 3 consecutive years to comply with the requirements of this section in an amount that is not less than $250 but not more than $25,000.

“(5) Compliance plan requirement—An institution that fails to comply with the requirements under this section for 2 consecutive years shall be required to submit a compliance plan to the Secretary.

“(d) Definitions—In this section—

“(1) the terms “foreign source” and “gift” have the meaning given the terms in section 117;

“(2) the term “contract” means any—

“(A) agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties; or

“(B) affiliation, agreement, or similar transaction with a foreign source based on the use or exchange of the name, likeness, time, services, or resources of faculty, professional staff, and other staff engaged in research and development (as determined by the institution); and

“(3) the term “professional staff” means professional employees, as defined in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203).”

(c)
Regulations—
(1)
In general— Not later than 1 year after the date of enactment of this Act, the Secretary of Education shall begin the negotiated rulemaking process under section 492 of the Higher Education Act of 1965 (20 U.S.C. 1098a) to carry out the amendments made by subsections (a) and (b).
(2)
Issues— Regulations issued pursuant to paragraph (1) to carry out the amendment made by subsection (a) shall, at a minimum, address the following issues:
(A)
Instructions on reporting structured gifts and contracts.
(B)
The inclusion in institutional reports of gifts received from, and contracts entered into with, foreign sources by entities and organizations, such as research foundations, that operate substantially for the benefit or under the auspices of the institution.
(C)
Procedures to protect confidential or proprietary information included in gifts and contracts.
(D)
The alignment of such regulations with the reporting and disclosure of foreign gifts or contracts required by other Federal agencies.
(E)
The treatment of foreign gifts or contracts involving research or technologies identified as being associated with a national security risk or concern by the Federal Research Security Council as described under section 7902 of title 31, United States Code, as added by section 4493 of this Act.
(3)
Effective date— The amendments made by subsections (a) and (b) shall take effect on the date on which the regulations issued under paragraph (1) take effect.