[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1087 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 1087
To require certain nonprofit and not-for-profit social welfare
organizations to submit disclosure reports on foreign funding to the
Attorney General, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 30, 2023
Mr. Grassley introduced the following bill; which was read twice and
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To require certain nonprofit and not-for-profit social welfare
organizations to submit disclosure reports on foreign funding to the
Attorney General, 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 ``Think Tank Transparency Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Conduct intending to directly or indirectly influence
public policy or public opinion.--The term ``conduct intending
to directly or indirectly to influence public policy or public
opinion'' means, with respect to a covered entity, any activity
that the covered entity engaging in believes will, or that the
covered entity intends to, in any way influence any agency or
official of the Government of the United States, or any section
of the public within the United States, with respect to--
(A) formulating, adopting, or changing the domestic
or foreign policies of the United States; or
(B) the political or public interests, policies, or
relations of a government of a foreign country or a
foreign political party.
(2) Contract.--The term ``contract'' means any agreement
for the acquisition by purchase, lease, or barter of property
or services by the foreign principal, for the direct benefit or
use of either of the parties.
(3) Country of citizenship.--The term ``country of
citizenship'', with respect to a foreign principal, includes--
(A) the principal residence for a foreign principal
who is a natural person; or
(B) the country of incorporation or the principal
place of business for a foreign principal which is a
legal entity.
(4) Covered entity.--The term ``covered entity''--
(A) means a nonprofit organization or a not-for-
profit social welfare organization that--
(i) spends more than 20 percent of the
resources of the organization within any given
calendar year on conduct intending to directly
or indirectly influence public policy or public
opinion; or
(ii) is affiliated with, or is a subunit,
of an institution, as defined in section 117 of
the Higher Education Act of 1965 (20 U.S.C.
1011f), that is subject to that section and
that--
(I) engages in or publishes
substantial policy-related research or
scholarship; or
(II) hosts, sponsors, or otherwise
promotes annual, or on a more frequent
basis, events featuring reporters,
journalists, or United States or
foreign government officials; and
(B) excludes--
(i) an ``institution'', as defined in
section 117 of the Higher Education Act of 1965
(20 U.S.C. 1011f), that is subject to that
section; and
(ii) an entity organized and operated
exclusively for religious purposes.
(5) Foreign principal.--The term ``foreign principal''
includes--
(A) a government of a foreign country or a foreign
political party;
(B) a person outside of the United States, unless
it is established that--
(i) the person is an individual and a
citizen of the United States; or
(ii) the person--
(I) is not an individual and is
organized under or created by the laws
of the United States or of any State or
other place subject to the jurisdiction
of the United States; and
(II) has its principal place of
business within the United States; and
(C) a partnership, association, corporation,
organization, or other combination of persons organized
under the laws of or having its principal place of
business in a foreign country.
(6) Gift, donation, or contribution.--The term ``gift,
donation, or contribution'' means any gift of money, property,
or in-kind contribution given directly or indirectly to a
covered entity by a foreign principal.
(7) Not-for-profit social welfare organization.--The term
``not-for-profit social welfare organization'' means an
organization described in section 501(c)(4) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a)
of such Code.
(8) Nonprofit organization.--The term ``nonprofit
organization'' means an organization described in section
501(c)(3) of the Internal Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code.
(9) Restricted or conditional gift or contract.--The term
``restricted or conditional gift or contract'' means any
endowment, gift, grant, contract, award, present, or property
of any kind that includes provisions regarding--
(A) the employment, assignment, compensation, or
termination of researchers, scholars, or experts;
(B) the earmarking of funds for departments,
centers, research or lecture programs, or new positions
for researchers, scholars, or experts;
(C) the subject matter, nature, or contents of
research, analysis or any information published or
disseminated to officials of the United States Federal
Government, the media, or the public; or
(D) any other condition or expectation regarding
either the ability of the foreign principal to review
in advance, approve, veto, or modify budgets, programs,
events, or presentations, or the contents of
information or materials to be published or
disseminated.
SEC. 3. FINDINGS.
Congress finds the following:
(1) Think tanks have provided Congress and the executive
branch with a wealth of research and scholarship that largely
has benefitted the public in the United States by improving the
drafting, enactment, and enforcement of policy in the United
States.
(2) There is broad bipartisan agreement that think tanks
possess enormous influence on the passage and enforcement of
policies, particularly those that relate to foreign policy.
(3) In recent years, foreign funding of think tanks has
increased substantially.
(4) Congress, the executive branch, and especially the
people of the United States have a right to--
(A) know which think tanks receive foreign funds;
and
(B) assess for themselves the extent that foreign
influence should be considered when analyzing the
credibility and value of research and scholarship
produced by such think tanks that receive foreign
funds.
(5) The United States House of Representatives has
recognized the national security issues inherent in undue
foreign influence of entities with covert sources of foreign
funding that testify before Congress. Since 2015,
representatives of entities who testify before the United
States House of Representatives have been required to disclose
relevant foreign funding sources directed to them or their
employers in Truth-in-Testimony disclosure forms required under
clause 2(g)(5) of rule XI of the Rules of the House of
Representatives.
(6) Almost 30 years ago, Congress enacted section 117 of
the Higher Education Act of 1965 (20 U.S.C. 1011f) (hereinafter
referred to as ``section 117'') in light of concerns about the
growing financial relationship between universities in the
United States and foreign sources. In enacting that
legislation, Congress balanced academic freedom and national
security by mandating financial transparency through required
reporting of contracts with, and gifts from, any foreign
source.
(7) Section 117 does not prohibit institutions of higher
education from taking foreign money, but rather mandates
accurate and transparent disclosures of sources and amounts
received by those institutions to the Department of Education.
In 2019, the Department of Education took concrete steps to
enforce section 117 by ensuring the integrity of reporting
requirements, confirming the correct reporting and
categorization of donations, and prohibiting the use of
domestic conduits and intermediaries to avoid the disclosures
of foreign gifts.
(8) Between 2011 and 2021, the Russian Federation
(hereinafter referred to as ``Russia'') gave not less than
$160,000,000 to universities in the United States. The People's
Republic of China (hereinafter referred to as ``China'') alone
gave not less than $2,700,000,000 to universities during the
United States during the same time frame.
(9) Russia and China each have repressive and deeply
troubling records relating to human rights, and both have
engaged in cyber espionage targeting individuals in the United
States.
(10) Russia and China pose grave threats to the national
security interests of the United States, yet those countries
have successfully lavished billions of dollars to cultivate
strong ties with institutions of higher education and research
across the United States.
(11) Although the Center for International Policy conducted
a study in 2020 that concluded that think tanks focused on
Federal policy received not less than $174,000,000 in funding
from foreign governmental entities between 2014 and 2018, there
is currently no means to determine the actual level or extent
of foreign influence on those think tanks.
(12) What is clear is the vast amount of foreign funding
that United States-based think tanks receive, and that such
foreign funding affects the direction of their policy
recommendations.
(13) There is significant concern in Congress about
potential contractual stipulations tied to foreign funding that
could be leveraged by foreign powers to exert even greater
influence over the research and policy recommendations of think
tanks that the Federal Government and the public in the United
States would otherwise believe to be independent.
(14) There is broad bipartisan agreement that undue foreign
influence obscured through the use of proxies--or hidden by the
powerful brand of a highly respected think tank--threatens the
national security interests of the United States. There is also
broad agreement that transparency is the most important and
effective tool for reducing the harm of foreign influence
targeting United States public policy or public opinion.
(15) As such, this bill aims to provide critical
transparency regarding the foreign funding provided to, and the
related contractual agreements with, think tanks whose work
includes influencing United States policies or public opinion.
SEC. 4. CONTEMPORANEOUS DISCLOSURE REPORTS.
(a) Reporting Conditions.--
(1) Gifts, donations, or contributions.--
(A) In general.--Except as provided in section 7, a
covered entity that receives a gift, donation, or
contribution from a foreign principal during a calendar
year in an aggregate amount of $10,000 or greater shall
file a disclosure report with the Attorney General in
accordance with subsection (b) not later than 90 days
after each disclosure date.
(B) Disclosure date defined.--In this paragraph,
the term ``disclosure date'' means--
(i) the first date during any calendar year
by which a covered entity has received a gift,
donation, or contribution from a foreign
principal in an aggregate amount of $10,000 or
greater; and
(ii) any other date during such calendar
year by which a covered entity has received a
gift, donation, or contribution from a foreign
principal in an aggregate amount of $10,000 or
greater since the most recent disclosure date
for such calendar year.
(2) Contract, memorandum of understanding, or agreement.--
Except as provided in section 7, a covered entity that enters
into or modifies a contract, memorandum of understanding, or
agreement with a foreign principal shall file a disclosure
report with the Attorney General in accordance with subsection
(b) within 90 days of the entering into or modification of such
contract, memorandum, or agreement.
(b) Contents of Contemporaneous Disclosure Report.--
(1) Gifts, donations, or contributions only.--The report
required under subsection (a)(1) shall detail the following:
(A) The identities of the foreign principal and the
primary point of contact of the foreign principal for
engaging with the covered entity, including the name
and title of such point of contact.
(B) The date on which the foreign principal
provided a gift, donation, or contribution to the
covered entity.
(C) The aggregate dollar amount of such gift,
donation, or contribution attributable to a particular
foreign principal.
(D) A description of any conditions or restrictions
regarding any of the disclosed gifts, donations, or
contributions.
(E) The aggregate amount of such gifts, donations,
or contributions received from each foreign principal.
(F) A description of any decisions made because of
the foreign principal to the structure of the
organization or to the research, programs, or content
intended to be or actually published, disseminated, or
promoted by the covered entity.
(2) Contract, memorandum of understanding, or agreement
only.--The report required under subsection (a)(2) shall detail
the following:
(A) The identities of the foreign principal and the
primary point of contact of the foreign principal for
engaging with the covered entity, including the name
and title of such point of contact.
(B) The date on which the covered entity entered
into or modified a contract, memorandum of
understanding, or agreement with a foreign principal.
(C) Copies of all written contracts, agreements, or
memoranda of understanding the covered entity entered
into or modified with any foreign principal.
(D) Copies of all internal and external documents,
research materials, and publications produced as a
result of the contract, memorandum of understanding, or
agreement.
(E) A description of any decisions made because of
the foreign principal to the structure of the
organization or to the research, programs, or content
intended to be or actually published, disseminated, or
promoted by the covered entity.
SEC. 5. INITIAL DISCLOSURE REPORTS.
(a) In General.--A covered entity shall file an initial disclosure
report, in accordance with subsection (b) or (c), with the Attorney
General not later than 180 days after the date of enactment of this Act
if, during the period beginning on January 1 of the most recent
calendar year that ended before the date of enactment of this Act and
ending on the effective date of this Act--
(1) the covered entity received a gift, donation, or
contribution from a foreign principal in an aggregate amount of
$10,000 or greater;
(2) the covered entity entered into or modified a contract,
memorandum of understanding, or agreement with a foreign
principal; or
(3) the covered entity had previously entered into a
contract, agreement, or memorandum of understanding with a
foreign principal that was still valid or enforceable on or
after January 1 of the most recent calendar year that ended
before the date of enactment of this Act.
(b) Prior Gifts, Donations, or Contributions.--The report required
under subsection (a)(1) shall detail the following:
(1) The name of the foreign principal.
(2) The country of citizenship of the foreign principal.
(3) The amount and date of such gifts, donations, or
contributions.
(4) The description of any conditions or restrictions
attached to, or placed on, the gifts, donations, or
contributions.
(5) A description of any decisions made because of the
foreign principal to the structure of the organization or to
the research, programs, or content intended to be or actually
published, disseminated, or promoted by the covered entity.
(c) Contract, Memorandum of Understanding, or Agreement.--The
report required under subsection (a)(2) shall detail the following:
(1) The name of the foreign principal.
(2) The country of citizenship of the foreign principal.
(3) Copies of each written contract, memorandum of
understanding, or agreement.
(4) Any modification of each such written contract,
memorandum, or agreement.
(5) The terms and conditions of each oral agreement.
(6) Any modification of each such oral agreement.
(7) A comprehensive statement of--
(A) the nature and method of performance of each
item described in paragraphs (3) through (6); and
(B) the actions taken by the covered entity at the
request or suggestion of each such foreign principal.
(8) A description of any decisions made because of the
foreign principal to the structure of the organization or to
the research, programs, or content intended to be or actually
published, disseminated, or promoted by the covered entity.
SEC. 6. BRIEFINGS, TESTIMONY, OR SIMILAR FORMS OF PRESENTATION OF
RESEARCH.
(a) Labeling of Written Materials.--If a covered entity provides a
briefing, testimony, or similar form of presentation of research to a
member or employee of Congress, or to an executive branch official, the
covered entity shall identify prominently on any written materials
provided to the member or employee of Congress, or to the executive
branch official, the name of the relevant foreign principal and the
country of citizenship, if the foreign principal is not a government,
who provided funding for such briefing, testimony, or similar form of
presentation of research.
(b) Addendum to Briefing, Testimony, Presentation.--In the event
that no written materials are provided in a briefing, testimony, or
similar form of presentation of research described in subsection (a),
the covered entity shall convey the information required under
subsection (a) in writing to the member or employee of Congress, or
executive branch official, before or not later than 10 days after the
date of the briefing, testimony, or presentation.
SEC. 7. RELATION TO OTHER REPORTING REQUIREMENTS.
(a) State Reports.--
(1) Requirements of a covered entity.--If a covered entity
has its headquarters in a State that has enacted requirements
for public disclosure of gifts, donations, or contributions
from, or contracts or agreements with, a foreign principal that
are substantially similar to the requirements of this Act, a
copy of the disclosure report filed with that State may be
filed with the Attorney General in lieu of a report required
under this Act.
(2) Requirements of the state.--The State in which a
covered entity has its headquarters shall provide to the
Attorney General such assurances as the Attorney General may
require to establish that the covered entity has met the
requirements for public disclosure under State law if the
State-mandated disclosure report is filed.
(b) Federal Reports.--If a covered entity receives a gift,
donation, or contribution from, or enters into a contract or agreement
with, a foreign principal, and if any other department, agency, or
bureau of the executive branch requires a report containing
requirements substantially similar to those required under this Act, a
copy of the report may be filed with the Attorney General in lieu of a
report required under this Act.
SEC. 8. ADMINISTRATION AND ENFORCEMENT.
(a) Books and Records.--
(1) Retention period.--For a period of not less than 5
years, a covered entity shall retain the necessary materials
required to comply with the requirements of this Act, including
books of account, all communications with any foreign
principal, and other records regarding the activities of the
covered entity related to any contracts, memorandum of
understandings, or agreements with, or gifts, donations, or
contributions from, a foreign principal.
(2) Inspection.--
(A) Attorney general.--Upon request of the Attorney
General, each covered entity shall furnish to the
Attorney General all information and records in the
possession of the covered entity that the Attorney
General may determine to be necessary to comply with
the requirements under this Act.
(B) Congress.--Upon request of Congress or a
committee of Congress, a covered entity shall furnish
to Congress or the relevant committee of Congress such
information and records as Congress or the relevant
committee of Congress may request to determine the
extent to which the covered entity is in compliance
with the requirements of this Act.
(3) Publication.--Any information or records furnished
pursuant to paragraph (2)(A) shall be made available in the
database required under subsection (b).
(4) Prohibition.--It shall be unlawful for any person
willfully to conceal, destroy, obliterate, mutilate, or
falsify, or to attempt to conceal, destroy, obliterate,
mutilate, or falsify, or to cause to be concealed, destroyed,
obliterated, mutilated, or falsified, any books or records
required to be kept under the provisions of this section.
(b) Publication.--All disclosure reports required by this Act and
the information and records required to be furnished pursuant to
subsection (a)(2)(A) shall be made available to the public through a
database maintained on the official website of the Department of
Justice.
(c) Civil Monetary Penalty.--Any covered entity that fails to
comply with the requirements of this Act, including any rule or
regulation promulgated thereunder, shall be subject, in addition to any
other penalties that may be prescribed by law, to a civil money penalty
of not less than $1,000 for each day of the failure described by this
Act--during which the covered entity is in violation of this Act.
(d) Civil Action.--
(1) Court orders.--Whenever it appears that a covered
entity has failed to comply with the requirements of this Act,
including any rule or regulation promulgated under this Act, a
civil action may be brought by the Attorney General 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 requirements of this
Act.
(2) Costs.--For knowing or willful failure to comply with
the requirements of this Act, including any rule or regulation
promulgated thereunder, a covered entity shall pay to the
Treasury of the United States the full costs to the United
States of obtaining compliance, including all associated costs
of investigation and enforcement.
(e) Regulations.--The Attorney General may promulgate such
regulations as the Attorney General considers necessary to implement
the requirements of this Act.
SEC. 9. EFFECTIVE DATE.
This Act shall take effect on the date that is 120 days after the
date of enactment of this Act.
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