To amend the Internal Revenue Code of 1986 to impose penalties with respect to civil rights violations by certain tax-exempt educational institutions.
Sponsors
Legislative Progress
IntroducedMs. Malliotakis (for herself, Ms. Stefanik, and Ms. Tenney) introduced …
Summary
What This Bill Does
The University Accountability Act imposes financial penalties on tax-exempt colleges and universities that are found by a federal court to have violated Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, or national origin in programs receiving federal funding. The bill aims to create stronger financial consequences for educational institutions that engage in civil rights violations.
Who Benefits and How
Individuals who have experienced civil rights discrimination at educational institutions would benefit from stronger enforcement mechanisms, as institutions face significant financial penalties for violations. Civil rights advocacy groups would gain a new tool for accountability. The federal government would receive penalty revenue from violating institutions.
Who Bears the Burden and How
Tax-exempt educational institutions, including private colleges, universities, and state schools, bear the primary burden. They face penalties of at least $100,000 or 5% of their administrative compensation (whichever is greater) for each federal court judgment finding a civil rights violation. Institutions with three or more violations face mandatory IRS review of their tax-exempt status. Schools must also file additional disclosure reports detailing any civil rights violation determinations.
Key Provisions
- Creates a new penalty in the Internal Revenue Code (Section 6720D) specifically targeting civil rights violations by educational institutions
- Sets the penalty at the greater of $100,000 or 5% of the institution's aggregate administrative compensation for the year of violation
- Requires mandatory IRS review of an institution's tax-exempt status after the third civil rights violation
- Mandates new annual reporting requirements for institutions with civil rights violation determinations
- Applies to both private tax-exempt colleges and state colleges and universities
- Provides for penalty refunds if court judgments are overturned on appeal
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
The bill aims to impose penalties on tax-exempt educational institutions found in violation of civil rights, specifically targeting institutions that repeatedly violate Title VI of the Civil Rights Act of 1964.
Policy Domains
Key Definitions
Terms defined in this bill
Imposes a penalty on tax-exempt educational institutions found in violation of Title VI of the Civil Rights Act.
The University Accountability Act
Specifies penalties and procedures for institutions found in violation of civil rights.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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