Bill > HR2686

This bill establishes new penalties and reporting requirements for tax-exempt educational institutions found to have violated civil rights. Specifically, the bill imposes a financial penalty of either $100,000 or 5% of the institution's administrative compensation for each civil rights violation determined by a federal court under Title VI of the Civil Rights Act of 1964. After two civil rights violation determinations, the Internal Revenue Service (IRS) will be required to review the institution's tax-exempt status to determine if they should remain exempt from taxes. Educational institutions will also be mandated to report these civil rights violations on their annual tax returns, including details about the violation, the date of determination, and the number of previous violations. The bill applies to both private tax-exempt educational institutions and state colleges/universities. If a civil rights violation determination is later vacated or overturned, the institution can receive a refund of the penalty, though the review of tax-exempt status may still proceed if the determination is subsequently reinstated. The provisions of this bill would take effect for civil rights violation determinations made after the date of the bill's enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2686/all-info