INFLUENCE Act

I 117TH CONGRESS 1ST SESSION H. R. 1160 To amend the Higher Education Act of 1965 to improve protections against foreign influence at institutions of higher education, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 18, 2021 Mr. MURPHY of North Carolina (for himself, Mr. RICE of South Carolina, Mr. TIFFANY, and Mr. BUDD) introduced the following bill; which was re- ferred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to improve protections against foreign influence at institutions of higher education, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Intelligence on Nefar- 4 ious Foreign Leaders Using Education Networks for Cor- 5 rupt Enrichment Act’’ or the ‘‘INFLUENCE Act’’. 6 SEC. 2. FINDINGS. 7 Congress finds the following: 8 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 1160 IH (1) Schools in the United States, especially in- 1 stitutions of higher education overseeing either sen- 2 sitive research or critical military technology sys- 3 tems, have provided a level of access to the Chinese 4 government that the Chinese government has re- 5 fused to provide to the United States. 6 (2) China’s control over the flow of information 7 means the American people have an incomplete pic- 8 ture of Chinese government actions and policies that 9 run counter to the interest of the United States at 10 home and abroad. 11 (3) In the last 15 years, the Chinese govern- 12 ment has opened over 100 Confucius Institutes on 13 college and university campuses in the United States 14 to increase their cultural standing in popular cul- 15 ture. While there are currently more than 500 Con- 16 fucius Institutes worldwide, the United States has 17 more Confucius Institutes than any other country. 18 (4) Federal Government officials have expressed 19 concerns about Confucius Institutes. Christopher 20 Wray, Director of the Federal Bureau of Investiga- 21 tion, testified that the FBI is ‘‘watching warily’’ 22 Confucius Institutes and ‘‘in certain instances have 23 developed appropriate investigative steps’’. 24 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 1160 IH (5) The Department of Education has not con- 1 ducted regular oversight of the compliance of institu- 2 tions of higher education with foreign gift reporting 3 requirements and, until recently, has failed to ade- 4 quately enforce the requirements of section 117 of 5 the Higher Education Act of 1965 (relating to dis- 6 closures of foreign gifts). The Department of Edu- 7 cation maintains a database detailing the reporting 8 of foreign gifts received by institutions, but relies 9 solely on the institutions to self-report gifts. 10 (6) The Department of Education is updating 11 the reporting requirements applicable to institutions 12 of higher education. Previously, the Department of 13 Education had not issued guidance on foreign gift 14 reporting by institutions of higher education since 15 2004. As a result, institution’s informed Congress 16 that the reporting requirements were unclear and 17 confusing. Institutions also informed Congress that 18 the Department of Education website used to report 19 foreign gifts was dated and difficult to use. 20 (7) Absent full transparency regarding how 21 Confucius Institutes operate and full reciprocity for 22 the cultural outreach efforts of the United States on 23 college campuses in China, Confucius Institutes 24 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 1160 IH should not continue in the United States unchecked 1 or unsupervised. 2 SEC. 3. ENHANCED DISCLOSURE OF CERTAIN FOREIGN 3 GIFTS AND CONTRACTS. 4 Section 117 of the Higher Education Act of 1965 (20 5 U.S.C. 1011f) is amended— 6 (1) by amending subsection (a) to read as fol- 7 lows: 8 ‘‘(a) DISCLOSURE REPORT.—An institution shall file 9 a disclosure report with the Secretary on January 31 or 10 July 31, whichever is sooner, whenever one or more of the 11 following occurs: 12 ‘‘(1) The institution is owned or controlled by 13 a foreign source. 14 ‘‘(2) The institution receives a gift from or en- 15 ters into a contract with a foreign source determined 16 by the Secretary to be acting directly or indirectly 17 on behalf of a foreign government that is adversarial 18 to the United States, regardless of the value of the 19 gift or contract. 20 ‘‘(3) The institution receives a gift from or en- 21 ters into a contract with a foreign source not de- 22 scribed in paragraph (2), the value of which is— 23 ‘‘(A) $50,000 considered alone; or 24 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 1160 IH ‘‘(B) $100,000 or more in combination 1 with all other gifts from or contracts with that 2 foreign source within a calendar year.’’; 3 (2) by amending subsection (e) to read as fol- 4 lows: 5 ‘‘(e) PUBLIC AVAILABILITY OF INFORMATION.— 6 ‘‘(1) PUBLIC INSPECTION.—Subject to para- 7 graph (4), all disclosure reports required by this sec- 8 tion shall be public records open to inspection and 9 copying during business hours. 10 ‘‘(2) PUBLICATION BY DEPARTMENT OF EDU- 11 CATION.—Not later than 180 days after the date of 12 enactment of the INFLUENCE Act, and on an an- 13 nual basis thereafter, the Secretary of Education 14 shall make available, on a publicly accessible website 15 of the Department of Education, a database of the 16 information disclosed to the Secretary under this 17 section during the preceding year. 18 ‘‘(3) PUBLICATION BY INSTITUTIONS.—Not 19 later than 180 days after the date of enactment of 20 the INFLUENCE Act, and on an annual basis 21 thereafter, each institution that receives a gift or en- 22 ters into a contract described in subsection (a) shall 23 make available, on a publicly accessible website of 24 the institution— 25 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 1160 IH ‘‘(A) in the case of a gift described in such 1 subsection, a detailed explanation of the gift, 2 including the amount of the gift, identification 3 of the source of the gift, and any conditions or 4 restrictions on the gift; and 5 ‘‘(B) in the case of a contract described in 6 such subsection, a complete and accurate copy 7 of the contract. 8 ‘‘(4) RESTRICTION ON PUBLICATION OF SEN- 9 SITIVE INFORMATION.— 10 ‘‘(A) IN GENERAL.—Information made 11 publicly available under this section shall not 12 include information that is determined by an in- 13 stitution to be confidential, proprietary, or oth- 14 erwise prohibited from disclosure by law. 15 ‘‘(B) ENFORCEMENT AUTHORITY.—If the 16 Secretary determines that an institution of 17 higher education willfully or negligently dis- 18 closed information that is confidential, propri- 19 etary, or otherwise prohibited from disclosure 20 by law in violation of subparagraph (A), the 21 Secretary may declare such institution ineligible 22 to participate in programs authorized under 23 title IV of this Act.’’; and 24 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 1160 IH (3) in subsection (f)(2), by inserting before the 1 period at the end the following: ‘‘, in addition to any 2 other amounts as determined appropriate by the 3 Secretary of Education’’. 4 SEC. 4. FOREIGN INVOLVEMENT IN SENSITIVE PROJECTS. 5 The Higher Education Act of 1965 (20 U.S.C. 1001 6 et seq.) is further amended by inserting after section 117 7 the following: 8 ‘‘SEC. 117a. REQUIREMENTS FOR CERTAIN FOREIGN CON- 9 TRACTS. 10 ‘‘(a) FOREIGN INVOLVEMENT IN SENSITIVE 11 PROJECTS.— 12 ‘‘(1) IN GENERAL.—In a case in which an insti- 13 tution enters into a contract with a foreign indi- 14 vidual under which the individual will participate in 15 a sensitive project— 16 ‘‘(A) the institution shall disclose to the 17 Secretary— 18 ‘‘(i) the date on which individual is 19 expected to return to their home country; 20 and 21 ‘‘(ii) and the name of the country to 22 which the individual is expected to return; 23 and 24 ‘‘(B) such contract shall provide— 25 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 1160 IH ‘‘(i) that the individual may not dis- 1 close information derived from such project 2 to a foreign government or any other for- 3 eign entity; and 4 ‘‘(ii) that the penalties for disclosure 5 of such information shall be the cancella- 6 tion of the contract and a requirement to 7 reimburse the Federal Government as de- 8 scribed in paragraph (2). 9 ‘‘(2) LIABILITY FOR DISCLOSURE.—A foreign 10 individual who knowingly or willfully discloses infor- 11 mation in violation of a contract under paragraph 12 (1) shall be required to reimburse the Federal Gov- 13 ernment for the full costs of any investigation or ad- 14 ministrative action resulting from such violation, in 15 addition to any other amounts as determined appro- 16 priate by the Secretary. 17 ‘‘(b) CHINA-AFFILIATED CULTURAL OR LANGUAGE 18 PROGRAM.—In a case in which an institution enters into 19 a contract with an individual or entity under which a 20 China-affiliated cultural or language program will be al- 21 lowed to operate at the institution, such contract— 22 ‘‘(1) shall include a provision protecting aca- 23 demic freedom at the institution; and 24 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 1160 IH ‘‘(2) shall not include any provision that would 1 limit the rights of an individual under the Constitu- 2 tion of the United States. 3 ‘‘(c) DEFINITIONS.—In this section: 4 ‘‘(1) The term ‘China-affiliated cultural or lan- 5 guage program’ means any project, program, or 6 other activity that— 7 ‘‘(A) seeks to familiarize students with 8 Chinese language or culture; and 9 ‘‘(B) is directly or indirectly funded by the 10 Government of the People’s Republic of China. 11 ‘‘(2) The term ‘sensitive project’ means any 12 project, program, or other activity carried out by an 13 institution— 14 ‘‘(A) that is funded, in whole or in part, by 15 Federal funds; and 16 ‘‘(B) for which a security clearance is re- 17 quired as a condition of participation.’’. 18 SEC. 5. INTERAGENCY COORDINATION ON ENFORCEMENT 19 OF FOREIGN GIFT AND CONTRACT REQUIRE- 20 MENTS. 21 The Higher Education Act of 1965 (20 U.S.C. 1001 22 et seq.) is further amended by inserting after section 117a 23 (as added by section 4) the following: 24 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 1160 IH ‘‘SEC. 117b. INTERAGENCY COORDINATION ON ENFORCE- 1 MENT OF FOREIGN GIFT AND CONTRACT RE- 2 QUIREMENTS. 3 ‘‘(a) NOTIFICATION OF VIOLATIONS.—The Secretary 4 of Education shall establish a process to notify appro- 5 priate Federal agencies of any violation of section 117 or 6 section 117a. 7 ‘‘(b) CONSIDERATION OF ENFORCEMENT ACTION.— 8 After receiving notice of a violation under subsection (a), 9 the head of the Federal agency that received such notice 10 shall determine— 11 ‘‘(1) whether such violation constitutes a viola- 12 tion of a provision of law over which the agency has 13 enforcement authority; and 14 ‘‘(2) if such a violation occurred, whether to 15 pursue an enforcement action against the individual 16 or entity responsible for the violation.’’. 17 SEC. 6. REPORTS. 18 Section 636 of the Higher Education Act of 1965 (20 19 U.S.C. 1132–5) is amended to read as follows: 20 ‘‘SEC. 636. REPORT ON FOREIGN AND NATIONAL SECURITY 21 ISSUES AFFECTING INSTITUTIONS OF HIGH- 22 ER EDUCATION. 23 ‘‘(a) REPORT REQUIRED.—On an annual basis, the 24 Secretary of Education, in consultation and collaboration 25 with the Secretary of State, the Secretary of Defense, the 26 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 1160 IH Director of National Intelligence, the Attorney General, 1 and the heads of other relevant Federal agencies, shall 2 submit to the authorizing committees a report on foreign 3 and national security issues affecting institutions of higher 4 education. 5 ‘‘(b) ELEMENTS.—Each report under subsection (a) 6 shall include— 7 ‘‘(1) identification of areas of national need in 8 foreign language, area, and international studies as 9 such studies relate to government, education, busi- 10 ness, and nonprofit needs and a plan to address 11 those needs; 12 ‘‘(2) a description of any risks associated with 13 allowing foreign students and other foreign individ- 14 uals at institutions of higher education to access 15 classified information, protected intellectual prop- 16 erty, research and development information, and 17 military technology critical to the national security 18 of the United States; 19 ‘‘(3) best practices that may be implemented by 20 the Department of Education, the Department of 21 Defense, and other Federal agencies with respon- 22 sibilities relating to national security to strengthen 23 the secrecy of grants, projects, and contracts that 24 involve providing foreign individuals at institutions 25 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1160.IH H1160 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 1160 IH of higher education with access to classified or sen- 1 sitive information, including recommended enforce- 2 ment actions to respond to the misuse of such infor- 3 mation; 4 ‘‘(4) a description of the ongoing efforts of Fed- 5 eral law enforcement organizations, including the 6 Federal Bureau of Investigation, to address the theft 7 of sensitive information by adversarial foreign ac- 8 tors; and 9 ‘‘(5) a summary of any information from na- 10 tional security-related projects at institutions of 11 higher education that was stolen, misused, or wrong- 12 fully disclosed during the period covered by the re- 13 port and any actions taken to remedy the theft, mis- 14 use, or disclosure of such information. 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