H.R. 1999: Disclose Getting Involved in Foreign Transactions Act

This bill, known as the Disclose Getting Involved in Foreign Transactions Act, aims to amend the Higher Education Act of 1965 to establish new requirements for higher education institutions regarding foreign gifts and contracts. The main provisions of the bill include:

Reporting Requirements

Institutions of higher education are required to maintain a policy that mandates staff and faculty to report certain foreign gifts and contracts annually. Specifically, they must report:

• Gifts from foreign sources exceeding a specified minimal value.
• Contracts with foreign sources valued at $5,000 or more, or those with undetermined value.
• Any contract with a foreign country or entity of concern, regardless of value.

Database Maintenance

Institutions must also create a publicly accessible, searchable database on their websites that documents the reported information, excluding any personally identifiable information. This database must be updated within 30 days of receiving reports and must remain accessible for a specified period following the contract or gift.

Policy for Managing Information Gathering Risks

The bill requires institutions to have a plan to identify and manage risks associated with foreign information gathering that could occur through the receipt of gifts or the signing of contracts. This includes regular communication and enforcement of the reporting policy.

Institutional Compliance and Enforcement

The Secretary of Education will investigate potential violations of these new requirements. Institutions that fail to comply may face civil actions, which could lead to enforced compliance through the courts. Institutions failing to comply may also incur fines based on the nature of their violations:

• First-time violations may attract a fine of $250,000 or the total value of the undisclosed contracts/gifts.
• Subsequent violations will incur higher fines, starting at $500,000 or double the total value of undisclosed contracts/gifts.

Compliance Officers

Institutions are required to designate compliance officers who will oversee adherence to the new requirements and certify compliance status regularly.

Study and Reporting Requirement

Within 180 days of enactment, the Comptroller General must begin a study on enhancing coordination among governmental agencies regarding compliance and enforcement of the new requirements, with findings to be reported to Congress three years after the bill's enactment.

Definitions and Scope

The bill provides clear definitions of terms such as "foreign source," "gift," "contract," and "foreign entities of concern," establishing a framework for what constitutes a reportable action.

Impact on Institutions

Only institutions that receive significant federal funding or exceed specified research funding thresholds will be required to comply with these new regulations.

Relevant Companies

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