A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "FOREIGN INFLUENCE OPERATIONS OUT OF AMERICAN EDUCATION ACT" BY ADDING SECTION 59-101-425 SO AS TO PROHIBIT PUBLIC INSTITUTIONS OF HIGHER LEARNING FROM SOLICITING OR ACCEPTING CERTAIN GIFTS OR TRAVEL FROM FOREIGN ADVERSARY NATIONS, FOREIGN PRINCIPALS, OR FOREIGN TERRORIST ORGANIZATIONS, TO RESTRICT FOREIGN INFLUENCE ON HIRING, CURRICULUM, AND CAMPUS ORGANIZATIONS, AND TO REQUIRE DISCLOSURE OF GIFTS AND CONTRACTS FROM FOREIGN COUNTRIES AND FOREIGN PRINCIPALS TO THE OFFICE OF THE STATE TREASURER.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  This act may be cited as the "Foreign Influence Operations Out of American Education Act."

 

SECTION 2.  Article 1, Chapter 101, Title 59 of the S.C. Code is amended by adding:

 

    Section 59-101-425.  (A) For purposes of this section:

       (1) "Public institution of higher learning" means:

           (a) a state-supported college or university enumerated in Section 59-101-10; and

           (b) a state-supported technical institution under the jurisdiction of the State Board for Technical and Comprehensive Education.

       (2) "Affiliate organization" means an entity established for the benefit of a public institution of higher learning, including:

           (a) a foundation, including an institutional foundation organized pursuant to Section 501(c)(3) of the Internal Revenue Code;

           (b) a research institute;

           (c) a direct-support organization; or

           (d) a contracting entity.

       (3) "Foreign adversary nation" means:

           (a) the government of one or more countries, one or more nations, one or more provinces, or a political subdivision of them; and

           (b) an agency, instrumentality, or other person acting on behalf of a government described in subitem (a), including a foreign government designated as a foreign adversary by the United States Department of Commerce pursuant to 15 C.F.R. section 791.4.

       (4) "Foreign nations funding American public schools" means countries that, individually or collectively, have provided one billion dollars or more in gifts, grants, or contracts, including funds transmitted through offshore accounts, to institutions of higher learning in the United States, as identified in the Section 117 Foreign Gift and Contract Disclosure Dashboard maintained by the United States Department of Education pursuant to 20 U.S.C. Section 1011f, Section 117 of the Higher Education Act of 1965, as in effect on January first of each year.

       (5) "Foreign principal" means:

           (a) an individual or entity domiciled in, organized under the laws of, or having its principal place of business in a foreign country; or

           (b) an individual or entity acting, directly or indirectly, for or on behalf of a foreign country or an entity described in subitem (a), including through a subsidiary, nonprofit organization, or other intermediary.

       (6) "Foreign terrorist organization" means an organization:

           (a) designated as such by the United States Secretary of State pursuant to Section 219 of the Immigration and Nationality Act, 8 U.S.C. Section 1189; or

           (b) designated as a Specially Designated Global Terrorist by the United States Department of the Treasury pursuant to Executive Order No. 13224, 50 U.S.C. Section 1701 note.

       (7) "Gift" means a transfer of money or property of any kind, including a gift, grant, contract, research sponsorship, endowment, award, program agreement, formal partnership, or donation, whether direct or indirect, and whether conditional or unconditional. The term includes a pledge of the transfer described in this section. For purposes of this item, "pledge" means a promise, agreement, or expressed intention to make a transfer described in this section.

    (B)(1) A public institution of higher learning, or its personnel or affiliate organization, may not solicit or accept a gift from, or engage in professional travel to, a foreign adversary nation, a foreign principal of that nation, or a foreign terrorist organization.

       (2) The prohibition in item (1) applies to gifts or travel received directly or indirectly, including through a United States intermediary.

       (3) Funds received in violation of this section must be returned to the donor or otherwise surrendered to the State.

       (4) A public institution of higher learning is prohibited from entering into cultural exchange agreements with a foreign adversary nation or a foreign principal of that nation.

       (5) A student or scholar association affiliated with or operating at a public institution of higher learning may not coordinate activities with a foreign adversary nation, a foreign principal of that nation, or a foreign terrorist organization. A public institution of higher learning immediately shall terminate its affiliation with any association that coordinates activities in violation of this section. Member dues or fees may not be considered gifts for purposes of this section.

       (6) No public institution of higher learning may permit a foreign adversary nation, a foreign principal of that nation, or an agent thereof to participate in hiring staff, defining curriculum or educational content, establishing school policies, or restricting the free expression of students or faculty.

    (C)(1) A public institution of higher learning shall comply with 20 U.S.C. Section 1011f, Section 117 of the Higher Education Act of 1965.

       (2) A public institution of higher learning shall report and disclose to the Office of the State Treasurer a gift or contract from a foreign country or foreign principal that is:

           (a) valued at ten thousand dollars or more; or

           (b) aggregating fifty thousand dollars or more within a twelve-month period.

       (3) A public institution of higher learning must identify in its report the donor or entity, the country of origin, including the original source of funding if the gift or contract is routed through bank accounts in another country, the total value, the date received, the purpose of the gift or terms of the contract, and the outcome of a due diligence review.

       (4) A public institution of higher learning must identify in its report stipulations regarding the use of funding, including:

           (a) required nondisclosure agreements;

           (b) hiring requirements, including requirements to hire specific individuals or personnel of particular types, nationalities, or religions, or to consult with the donor or foreign principal before making hiring decisions;

           (c) requirements to admit specific students, or students from specific countries or religions;

           (d) restrictions on positive or negative discussion of the foreign country;

           (e) required actions by the institution regarding the foreign country or issues related to the foreign country;

           (f) requirements that certain student organizations or activities be permitted on campus or receive institutional funding or support.

       (5) A report must include a copy of a gift or contract agreement between the foreign source and the public institution of higher learning.

       (6) A report must be submitted within one month of receiving the gift or executing the contract and must be submitted in a digital format that is searchable and sortable.

       (7) The Office of the State Treasurer shall maintain a public transparency database containing the information required under this section and shall make the database accessible online.

    (D)(1) The Office of the State Treasurer shall provide a report to the Speaker of the House of Representatives, the President of the Senate, the Inspector General, and the Attorney General by October first of each year summarizing the information received from public institutions of higher learning.

       (2) This section does not create a private right or benefit, substantive or procedural, enforceable at law or in equity by a party against the State, its departments, agencies, or entities, its officers, employees, or agents, or another person.

       (3) The Inspector General may investigate and address or enforce an alleged violation of this section and shall develop a process and platform for filing complaints regarding potential violations. An individual who makes a report pursuant to this section is protected under the provisions of Chapter 27, Title 8.

       (4) The Attorney General may enforce the provisions of this section and may bring an action for injunctive or declaratory relief in a court of competent jurisdiction.

       (5) The Office of the State Treasurer shall annually inspect or audit a random sample of at least ten percent of institutions of higher learning, including any institution that did not submit a report under this section, to determine compliance with the requirements of this section.

    (E) No executive agency, commission, university board, or committee may waive a provision of this section.

    (F)(1) There is established the Committee to Review Foreign Contributions. Membership shall consist of nine members appointed as follows:

            (a) three by the House of Representatives, with one each appointed by the Speaker, the Chair of the Ways and Means Committee, and the Chair of the Education and Public Works Committee;

            (b) three by the Senate, with one each appointed by the President, the Chair of Senate Finance, and the Chair of the Senate Education Committee; and

            (c) three appointed by the Governor, one of whom shall serve as chair of the committee.

        (2) Members shall serve conterminously with the appointing official. A vacancy must be filled in the manner of appointment.

        (3) Members may be reimbursed for per diem and travel expenses as provided for commissions and boards.

        (4) Prior to July 1, 2027, the committee shall establish criteria to be used for the designations outlined in this section. By July 31, 2027, and annually by July thirty-first thereafter, the committee shall report to the General Assembly the names any foreign nations, or foreign principals of said nations, that are funding any public institution of higher learning in this State as being prohibited entities for purposes of this section and make recommendations regarding additions to the list of entities prohibited from funding public institutions of higher learning.

        (5) A public institution of higher learning may apply to the committee for a waiver to accept a gift from a country or foreign principal of a foreign nation funding American public schools. The waiver request must explain the terms of the proposed donation and how the institution of public education will ensure the gift does not enable any foreign influence. Any waivers granted must be included in the annual report to the General Assembly.

 

SECTION 3.  If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

 

SECTION 4.  This act takes effect on July 1, 2027, and shall apply to all funding relationships entered on or after that date.

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