; or (B) the Secretary may impose a civil penalty upon such institution. (b) Prohibition of ownership, operation, or control (1) In General Subject to paragraph (2), an institution of higher education shall not be eligible to receive Federal funds if that institution is owned, operated, or controlled by a covered person. (2) Transition period (A) Institutions that are noncompliant as of the date of enactment Notwithstanding any other provision of law, and on a case-by-case basis, the Secretary may allow an institution that is owned, operated, or controlled by a covered person as of the date of enactment of this Act a transition period of not more than 4 years from the date of enactment of this Act, during which time the institution may continue to receive Federal funding. (B) Institutions that are noncompliant after the date of enactment Notwithstanding any other provision of law, and on a case-by-case basis, the Secretary may allow an institution with respect to which the status of being owned, operated, or controlled by a covered person came into effect after the date of enactment of this Act a transition period of not more than 1 year from the date on which that institution is found to be owned, operated, or controlled by a covered person, during which time the institution may continue to receive Federal funding. (3) Identification of noncompliant institutions Not later than 1 year after the date of enactment of this Act, the Secretary shall identify institutions that are owned, operated, or controlled by a covered person and notify such institutions about the prohibition under this subsection. (c) Reports by IHEs Each institution of higher education shall annually submit a report to each Federal agency from which that institution receives Federal funding, containing information about— (1) the extent to which the institution (including faculty and staff of the institution) has, or has had, covered relationships with covered persons