Sec. 4713. Requirements for accrediting agency recognition
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Not later than 1 year after the date of enactment of the Act, the Secretary of Education shall establish a technical review panel comprised of individuals specified in subparagraph (B), to establish a list of measures (and a definition for each such measure)— that, for purposes of section 496(a)(5)(A) of the Higher Education Act of 1965 ( 20 U.S.C. 1099b(a)(5)(A) )— accrediting agencies or associations shall use to assess each of the outcomes described in subparagraph (C); and provides accrediting agencies or associations with enough flexibility for adequate assessment of such outcomes; that may include measures (and definitions for such measures) set forth under the Integrated Postsecondary Education Data Survey, the postsecondary data system established under section 132(l), or a successor system; to which future technical review panels which meet the requirements of this paragraph may add additional measures; and that the Secretary of Education shall not have the authority to approve.
The technical review panel established under subparagraph
(A)shall be of sufficient size to ensure that a full range of relevant accrediting agencies and institutions are represented on the panel and shall include, at a minimum, the following members: Representatives of national, regional, and specialized accrediting agencies and associations that shall be nominated for inclusion on the panel by such representatives. Representatives of diverse postsecondary institutions, which shall include representation between 2-year and 4-year institutions of higher education, and from public, nonprofit, and proprietary institutions of higher education, including minority-serving institutions. The Commissioner of the National Center for Education Statistics or the Commissioner’s representative. Student advocate representatives familiar with the accreditation process. The outcomes described in this subparagraph are as follows: Completion (which may include measures such as graduation rates and rates of transfer). Progress toward completion (which may include measures such as retention rates and credit accumulation). Workforce participation (which may include measures such as rates of licensure and job placement). Not later than 1 year after the date of enactment of this Act, the Secretary of Education shall initiate a negotiated rule-making— to develop procedures for identifying the representative member institutions an accrediting agency or association shall use to demonstrate to the Secretary, for purposes of the Secretary’s review and evaluation of the performance of such agency or association under section 496(n)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1099b(n)(1) ), as amended by this section, that such accrediting agency or association— consistently applies and enforces standards; and effectively evaluates the quality of education or training offered by the institutions of higher education accredited by such agency or association; and for purposes of section 496 of the Higher Education Act of 1965 ( 20 U.S.C. 1099b ), as amended by this section, to— establish definitions for the terms related to sanctions, adverse actions, and any other action that an accrediting agency or association may take with respect to an institution of higher education under such section (including monitoring, notice, warning, probation, show cause, denial, withdrawal, suspension, revocation, accreditation, and preaccreditation); and in a case in which any action defined in clause
(i)is taken by an accrediting agency or association with respect to an institution of higher education, establish notice and disclosure requirements for such agency or association and institution of higher education with respect to the public (including students), as long as such requirements are consistent with the requirements of subsections (a)(7) and (c)(7) of section 496 of the Higher Education Act of 1965 ( 20 U.S.C. 1099b ). Section 496 of the Higher Education Act of 1965 ( 20 U.S.C. 1099b ) is further amended— in subsection (a)— in paragraph (3)(A), by inserting before the semicolon at the end the following: , and any institution described in clauses
(i)through
(v)of subsection (b)(1)(B) ; in paragraph (5), by striking subparagraphs
(A)through
(J)and inserting the following: success with respect to student achievement in relation to the institution’s mission (except that the agencies and associations described in paragraph (2)(A)(ii) shall not be subject to this subparagraph), which— shall be assessed using at least 1 measure selected by the agency or association from the list of measures established and defined under section 4713(a)(1) of the College Affordability Act for each of the following outcomes— completion; progress toward completion; and workforce participation; may be assessed using different measures selected under clause
(i)for different institutions; for each measure selected under clause (i), shall be assessed using a single performance benchmark established by the agency or association, except that an accrediting agency or association may establish a different performance benchmark for such a measure for each category of educational programs (as defined in section 435(a)(9)(E)); and in the case of an institution defined in section 101(a), may include consideration of— the historical significance of the institution; and whether the institution is one of the only physical locations at which postsecondary education is provided in the geographic area; student achievement outcomes, disaggregated by the elements required in the postsecondary student data system under subclauses
(I)through
(XV)of section 132(l)(2)(C)(ii) to facilitate institutional improvement and yield statistically reliable information that does not reveal personally identifiable information about an individual student; credentials, including consideration of the non-monetary value accruing to students pursuing such credentials; curricula, including— other than for the agencies and associations described in paragraph (2)(A)(ii), program length; course sequencing; and objectives related to credentialing; faculty; student support services; recruiting and admissions practices, academic calendars, catalogues, publications, and grading; and fiscal and administrative capacity (which shall include the institution’s governance) as appropriate to the specified scale of operations; ; by redesignating paragraphs
(6)through
(8)as paragraphs
(7)through (9), respectively; and by inserting after paragraph
(5)the following: such agency or association shall make available on a publicly accessible website, up-to-date information on— the institutions that are subject to the jurisdiction of such agency or association; the performance benchmark established for each measure selected by the agency or association under paragraph (5)(A), the rationale for the establishment of such performance benchmark, and how such benchmarks are factored into the accreditation process; the process such agency or association follows when an institution subject to the jurisdiction of such agency or association does not meet an accreditation standard under section 496(a)(5); any sanction or adverse action taken with respect to an institution and the reason for such sanction or adverse action; and ; in paragraph (8), as so redesignated, by striking 30 days and inserting 10 days ; amend paragraph (9), as so redesignated, to read as follows: such agency or association shall— make available on its public website, and to the Secretary, and the State licensing or authorizing agency, a summary (including the decision and rationale for such decision) of any review resulting in a final accrediting decision involving denial, termination, or suspension of accreditation, together with the comments of the affected institution; and ensure that each institution that is the subject of a final accrediting decision described in subparagraph
(A)makes available on its public website the summary described in subparagraph
(A)(including the decision and rationale for such decision) with respect to such institution and the institution’s comments; and . by adding at the end the following: such agency or association shall— ensure that any substantive change to the educational mission or a program of an institution after the agency or association has accredited or preaccredited the institution does not adversely affect the capacity of the institution to continue to meet the standards of such agency or association; require such an institution to obtain the approval of such agency or association with respect to such substantive change before the agency or association includes the change in the scope of accreditation or preaccreditation previously granted to the institution by such agency or association; and make public and report to the Secretary any decision made under subparagraph
(B)and the rationale of such decision. ; by striking subsection
(b)and inserting the following: For the purpose of subsection (a)(3), the term separate and independent means that— the members of the postsecondary education governing body and any other decision-making body of the accrediting agency or association are not— elected or selected by the board or chief executive officer of any related, associated, or affiliated trade association or membership organization; or individuals (such as executives and owners of an institution) who exercise substantial control over an institution— that is required to provide the Secretary with satisfactory evidence of its financial responsibility in accordance with paragraph (3)(A) of section 498(c) because the institution fails to meet criteria under paragraphs
(1)and
(2)of such section, except that this clause shall not be applicable to an institution until the Secretary has completed the rulemaking required under section 4721(b) of the College Affordability Act; that is on a reimbursement payment method pursuant to section 487(c)(1)(B); against which the Secretary is initiating or carrying out an emergency action in accordance with section 487(c)(1)(G); against which the Secretary is limiting, suspending, or terminating the institution’s participation in any program under this title in accordance with section 487(c)(1)(F); or that is on probation or show cause, or that is not accredited by an accrediting agency or association; among the membership of the board of the accrediting agency or association there shall be 1 public member for each 4 members of the board, with a minimum of 1 such public member, and guidelines are established for such members to avoid conflicts of interest, including guidelines ensuring that each such public member— is selected to serve on such board in the same manner that other board members are selected for such service; has not served on such board as a non-public member in the preceding 10 years; is not (or has not been in the preceding 5-year period) a full-time employee of, or a member of the governing board, an owner, or shareholder of, or consultant to, an institution or program that— is accredited or preaccredited by the agency or association; or has applied for accreditation or preaccreditation from such agency or association; is not a member of any trade association or membership organization related to, affiliated with, or associated with the agency or association or an institution that is accredited by such agency or association; and is not a spouse, parent, child, or sibling of an individual identified in subparagraph
(C)or (D); dues to the accrediting agency or association are paid separately from any dues paid to any related, associated, or affiliated trade association or membership organization; and the budget of the accrediting agency or association is developed and determined by the accrediting agency or association without review or resort to consultation with any other entity or organization. ; in subsection (c)— in paragraph (1), strike those regarding distance education and inserting regarding distance education and the history and mission of the institutions reviewed ; in paragraph (2)— by inserting and decline after the growth ; and by inserting before the semicolon at the end the following: or decline ; and by amending paragraph
(3)to read as follows: requires an institution to submit for approval to the accrediting agency or association a teach-out plan (as defined in section 487(f)(2)) and which shall meet the requirements of such agency or association) upon the occurrence of any of the following events: the Secretary notifies the agency or association that the Secretary has determined under section 498(c) that the institution does not have the financial responsibility required by this title, except that this subparagraph shall not be applicable to an institution until the Secretary has completed the rulemaking required under section 4721(b) of the College Affordability Act; the Secretary notifies the agency of a determination by the institution’s independent auditor expressing doubt with the institution’s ability to operate as a going concern or indicating an adverse opinion or finding of material weakness related to financial stability, except that this subparagraph shall not apply with respect to a public institution; the agency or association acts to place an institution on probation, show cause, or equivalent status; or the Secretary notifies the agency that the institution is participating in title IV under a provisional program participation agreement; ; by amending paragraph
(6)to read as follows: requires that teach-out agreements among institutions are subject to approval by the accrediting agency or association consistent with standards promulgated by such agency or association, and that such an agreement shall be required and subject to such approval upon the occurrence of any of the following events: the Secretary notifies the agency or association that— the Secretary has placed the institution on the reimbursement payment method pursuant to section 487(c)(1)(B); and the institution fails to meet criteria prescribed by the Secretary regarding ratios that demonstrate financial responsibility as described in section 498(c)(2); the Secretary notifies the accrediting agency or association that the Secretary has initiated— an emergency action against the institution pursuant to section 487(c)(1)(G); or an action under section 487(c)(1)(F) to limit, suspend, or terminate the participation of the institution in any program under this title; the accrediting agency or association acts to withdraw, terminate, or suspend the accreditation of the institution; the institution notifies the accrediting agency or association that the institution intends to cease operations; the institution notifies the accrediting agency or association that the institution intends to close a location that provides one hundred percent of at least one program; or pursuant to section 495, the State notifies the accrediting agency or association that an institution’s license or legal authorization to operate within the State has been or will be revoked; ; in paragraph (7), by inserting not later than 10 days after taking an action described in this paragraph, before makes available ; in paragraph (9), by striking the period at the end and inserting “; and”; and by adding at the end the following: responds to complaints received with respect to an institution during the period which the accrediting agency or association accredits such institution not later than 30 days after receiving the complaint (including complaints shared with the agency or association by the Secretary or a State agency under section 495), monitors and assesses an institution’s record of student complaints during such period, and submits the complaints relevant to the Secretary and to the State agency involved. ; in subsection (m), by adding at the end the following: Nothing in this section shall prohibit the Secretary from implementing a process of recognition under this section which differs for the accrediting agencies or associations described in subsection (a)(2)(A)(ii) for the purposes of participation in programs (other than the programs under this Act) administered by the Department or other Federal agencies if such differentiation would be beneficial to taxpayers and the performance of such agencies or associations. ; and in subsection (n)— in paragraph (1)— in the second sentence of the matter preceding subparagraph (A), by inserting before the period the following: , which shall include information on at least one institution of higher education representing each of the sectors (including public, nonprofit, and proprietary) of the representative member institutions ; and in subparagraph (A), by inserting before the semicolon the following: , and for purposes of facilitating such third-party information, the Secretary shall make publicly available the application of the accrediting agency or association seeking recognition by the Secretary upon publishing in the Federal Register the solicitation for such third-party information ; and by adding at the end the following: In the case in which an official of the Department (other than the Secretary) makes a decision on the recognition of an accrediting agency or association that differs from the recommendation made by the National Advisory Committee on Institutional Quality and Integrity on such recognition, without regard to whether any appeals process with respect to such decision has been concluded, the official shall submit to the authorizing committees the rationale and evidence for such decision. During the first 90-day period of each fiscal year, the Secretary shall submit to the authorizing committees the following information with respect to the preceding fiscal year— information about each accrediting agency that the Secretary reviews and evaluates under this subsection; the recommendation of the National Advisory Committee on Institutional Quality and Integrity about whether to recognize such accrediting agency or association and the rationale for such recommendation; in the case in which an official of the Department (other than the Secretary) makes a decision on the recognition of such accrediting agency or association (without regard to whether any appeals process with respect to such decision has been concluded), such decision and the rationale for such decision; and the final decision of the Secretary on the recognition of such accrediting agency or association and the rationale for such final decision. ; and by adding at the end the following: The Secretary shall direct the National Advisory Committee on Institutional Quality and Integrity to— regularly evaluate the effectiveness of the measures selected and the performance benchmarks established by accrediting agencies and associations under subsection (a)(5)(A); and compare similarly situated accrediting agencies or associations, whose similarity may not be determined solely by the educational sector to which the institutions being evaluated belong, based on the measures and performance benchmarks used in subsection (a)(5)(A) by such agencies and associations. The Secretary may require an accrediting agency or association to review and revise a performance benchmark established by such agency or association if the Secretary determines that such performance benchmark is too low for the measure for which such benchmark is established. Not later than 180 days after the date of the enactment of the College Affordability Act, and annually thereafter, the Secretary shall publish a report that includes with respect to each accrediting agency or association recognized under this section by the Secretary, the following: The number of institutions of higher education evaluated by such accrediting agency or association in each educational sector. The number of locations of such institutions of higher education. The number of students enrolled at such institutions of higher education. The number of students receiving a Federal Pell Grant at such institutions of higher education in the preceding year. The total amount of Federal student aid received by students enrolled at such institutions of higher education in the preceding year. The graduation rates of such institutions of higher education. The median earnings of students 10 years after enrollment. The number of institutions placed on a reimbursement payment method pursuant to section 487(c)(1)(B). .
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Sec. 4713
Requirements for accrediting agency recognition
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