**Issue #1:** Due Process

**Regulatory Cite:** §602.3, §602.25, §602.20, §602.28

**Tentative Agreement:** Reached at session 3 (April 24-26, 2007)

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+----------------------+
| **Language proposed   | **Draft regulatory    | **Summary of         |
| by the Department of  | language as of April  | Change**             |
| Education\            | 26, 2007**            |                      |
| during the March      |                       |                      |
| 26-28, 2007 session** |                       |                      |
+-----------------------+-----------------------+----------------------+
| [§602.3 What          | [§602.3 What          | -   Changes the word |
| definitions apply to  | definitions apply to  |     "action" to      |
| this                  | this                  |     "decision" where |
| part?]{.underline}    | part?]{.underline}    |     necessary for    |
|                       |                       |     the sake of      |
| \* \* \* \* \*        | \* \* \* \* \*        |     consistency.     |
|                       |                       |                      |
| ~~Adverse accrediting | ~~Adverse accrediting |                      |
| action or adverse     | action or adverse     |                      |
| action~~ **Adverse    | action~~ **Adverse    |                      |
| accrediting           | accrediting           |                      |
| decision** means      | decision** means      |                      |
| ~~the denial,         | ~~the denial,         |                      |
| withdrawal,           | withdrawal,           |                      |
| suspension,           | suspension,           |                      |
| revocation, or        | revocation, or        |                      |
| termination~~ **a     | termination~~ **a     |                      |
| decision to deny,     | decision to deny,     |                      |
| withdraw, suspend,    | withdraw, suspend,    |                      |
| revoke, or            | revoke, or            |                      |
| terminate** ~~of~~    | terminate** ~~of~~    |                      |
| accreditation or      | accreditation or      |                      |
| preaccreditation, or  | preaccreditation, or  |                      |
| any comparable        | any comparable        |                      |
| accrediting action an | accrediting           |                      |
| agency may take       | [~~action~~           |                      |
| against an            | **decision**]{.mark}  |                      |
| institution or        | an agency may         |                      |
| program~~.~~**, that  | [~~take~~             |                      |
| will become final     | **make**]{.mark}      |                      |
| unless appealed.**    | against an            |                      |
|                       | institution or        |                      |
|                       | program~~.~~**, that  |                      |
|                       | will become final     |                      |
|                       | unless appealed.**    |                      |
+-----------------------+-----------------------+----------------------+
| [§602.25 Due          | [§602.25 Due          | -   Clarifies that   |
| process.]{.underline} | process.]{.underline} |     procedures an    |
|                       |                       |     agency must      |
| The agency must       | The agency must       |     follow in        |
| demonstrate that the  | demonstrate that the  |     arriving at an   |
| procedures it uses    | procedures it uses    |     adverse          |
| throughout the        | throughout the        |     accrediting      |
| accrediting process   | accrediting process   |     decision         |
| satisfy due process.  | satisfy due process.  |     including        |
| The agency meets this | The agency meets this |     permitting an    |
| requirement if the    | requirement if the    |     institution or   |
| agency does the       | agency does the       |     program to       |
| following:            | following:            |     provide written  |
|                       |                       |     testimony and    |
| \(a\) The agency uses | \(a\) The agency uses |     giving the       |
| procedures that       | procedures that       |     agency the       |
| afford an institution | afford an institution |     option of        |
| or program a          | or program a          |     allowing oral    |
| reasonable period of  | reasonable period of  |     testimony.       |
| time to comply with   | time to comply with   |                      |
| the agency's requests | the agency's requests | -   Modifies         |
| for information and   | for information and   |     language such    |
| documents.            | documents.            |     that agency      |
|                       |                       |     representatives  |
| \(b\) In arriving at  | \(b\) In arriving at  |     involved in both |
| an adverse            | an adverse            |     the initial      |
| accrediting decision, | accrediting decision, |     decision and in  |
| the agency applies    | the agency applies    |     the appeal       |
| procedures that\--    | procedures that\--    |     should be        |
|                       |                       |     objective and    |
| **(1) Require written | **(1) Require written |     free of          |
| notice of the         | notice of the         |     conflicts of     |
| deficiencies the      | deficiencies the      |     interest.        |
| institution or        | institution or        |                      |
| program is believed   | program is believed   | -   Modifies         |
| to have under the     | to have under the     |     language to      |
| agency's standards    | agency's standards    |     accommodate the  |
| and policies;**       | and policies;**       |     use of appeal    |
|                       |                       |     panels that are  |
| **(2) Provide a       | **(2) Provide a       |     not              |
| reasonable period of  | reasonable period of  |     decision-making  |
| time for the          | time for the          |     bodies.          |
| institution or        | institution or        |                      |
| program to prepare    | program to prepare    |                      |
| its response to the   | its response to the   |                      |
| deficiencies          | deficiencies          |                      |
| identified;**         | identified;**         |                      |
|                       |                       |                      |
| **(3) Permit the      | **(3) Permit the      |                      |
| institution or        | institution or        |                      |
| program to present    | program to present    |                      |
| oral and written      | ~~[oral]{.mark} [and  |                      |
| information to the    | written]{.mark}~~     |                      |
| agency's decision     | information [---      |                      |
| makers in its         | written and, if       |                      |
| response; and**       | deemed necessary by   |                      |
|                       | the agency, oral      |                      |
| \(4\) Ensure that the | \--]{.mark} to the    |                      |
| agency's decision     | agency[~~'s decision  |                      |
| makers are impartial  | makers~~]{.mark} in   |                      |
| and free of conflicts | its response; and**   |                      |
| of interest.          |                       |                      |
|                       | \(4\) Ensure that the |                      |
| (**c**~~b~~) The      | agency's decision     |                      |
| agency notifies the   | makers are            |                      |
| institution or        | [                     |                      |
| program in writing of | ~~impartial~~]{.mark} |                      |
| any adverse           | [objective]{.mark}    |                      |
| accrediting           | and free of conflicts |                      |
| ~~action~~            | of interest.          |                      |
| **decision** or an    |                       |                      |
| action to place the   | (**c**~~b~~) The      |                      |
| institution or        | agency notifies the   |                      |
| program on probation  | institution or        |                      |
| or show cause. The    | program in writing of |                      |
| notice describes the  | any adverse           |                      |
| basis for the action. | accrediting           |                      |
|                       | ~~action~~            |                      |
| (**d**~~c~~) The      | **decision** or an    |                      |
| agency permits the    | action to place the   |                      |
| institution or        | institution or        |                      |
| program the           | program on probation  |                      |
| opportunity to appeal | or show cause. The    |                      |
| an adverse            | notice describes the  |                      |
| **accrediting         | basis for the         |                      |
| decision. The appeal  | **[decision           |                      |
| procedures            | or]{.mark}** action.  |                      |
| include\--**          |                       |                      |
|                       | (**d**~~c~~) The      |                      |
| **(1)** ~~action and  | agency permits the    |                      |
| t~~**T**he right to   | institution or        |                      |
| be represented by     | program the           |                      |
| counsel during        | opportunity to appeal |                      |
| ~~the~~ **that**      | an adverse            |                      |
| appeal~~.~~**;**      | **accrediting         |                      |
|                       | decision. The appeal  |                      |
| **(2) The right to    | procedures            |                      |
| decision makers who   | include\--**          |                      |
| are impartial and     |                       |                      |
| free of conflicts of  | **(1)** ~~action and  |                      |
| interest; and**       | t~~**T**he right to   |                      |
|                       | be represented by     |                      |
| **(3)** If the agency | counsel during        |                      |
| allows institutions   | ~~the~~ **that**      |                      |
| or programs the right | appeal~~.~~**;**      |                      |
| to appeal other types |                       |                      |
| of actions, the       | **(2) The right to    |                      |
| agency has the        | [~~decision makers~~  |                      |
| discretion to limit   | have                  |                      |
| the appeal to a       | individuals]{.mark}   |                      |
| written appeal.       | who are               |                      |
|                       | [~~impartial~~        |                      |
| (**e**~~d~~) The      | objective]{.mark} and |                      |
| agency notifies the   | free of conflicts of  |                      |
| institution or        | interest [hear and    |                      |
| program in writing of | make the decision or  |                      |
| the result of its     | the recommended       |                      |
| appeal and the basis  | decision on the       |                      |
| for that result.      | appeal]{.mark}; and** |                      |
|                       |                       |                      |
|                       | **(3)** If the agency |                      |
|                       | allows institutions   |                      |
|                       | or programs the right |                      |
|                       | to appeal other types |                      |
|                       | of actions, the       |                      |
|                       | agency has the        |                      |
|                       | discretion to limit   |                      |
|                       | the appeal to a       |                      |
|                       | written appeal.       |                      |
|                       |                       |                      |
|                       | (**e**~~d~~) The      |                      |
|                       | agency notifies the   |                      |
|                       | institution or        |                      |
|                       | program in writing of |                      |
|                       | the result of its     |                      |
|                       | appeal and the basis  |                      |
|                       | for that result.      |                      |
+-----------------------+-----------------------+----------------------+
| [§602.20 Enforcement  | [§602.20 Enforcement  |                      |
| of                    | of                    |                      |
| st                    | st                    |                      |
| andards.]{.underline} | andards.]{.underline} |                      |
|                       |                       |                      |
| \(a\) If the agency's | \(a\) If the agency's |                      |
| review of an          | review of an          |                      |
| institution or        | institution or        |                      |
| program under any     | program under any     |                      |
| standard indicates    | standard indicates    |                      |
| that the institution  | that the institution  |                      |
| or program is not in  | or program is not in  |                      |
| compliance with that  | compliance with that  |                      |
| standard, the agency  | standard, the agency  |                      |
| must\--               | must\--               |                      |
|                       |                       |                      |
| \(1\) Immediately     | \(1\) Immediately     |                      |
| initiate **an action  | initiate **an action  |                      |
| to deny, withdraw,    | to deny, withdraw,    |                      |
| suspend, revoke, or   | suspend, revoke, or   |                      |
| terminate             | terminate             |                      |
| accreditation or      | accreditation or      |                      |
| preaccreditation, or  | preaccreditation, or  |                      |
| take comparable       | take comparable       |                      |
| action against,**     | action against,**     |                      |
| ~~adverse action      | ~~adverse action      |                      |
| against~~ the         | against~~ the         |                      |
| institution or        | institution or        |                      |
| program; or           | program; or           |                      |
|                       |                       |                      |
| \(2\) \* \* \*        | \(2\) \* \* \*        |                      |
|                       |                       |                      |
| \* \* \* \* \*        | \* \* \* \* \*        |                      |
|                       |                       |                      |
| \(b\) If the          | \(b\) If the          |                      |
| institution or        | institution or        |                      |
| program does not      | program does not      |                      |
| bring itself into     | bring itself into     |                      |
| compliance within the | compliance within the |                      |
| specified period, the | specified period, the |                      |
| agency must take      | agency must take      |                      |
| **an** immediate      | **an** immediate      |                      |
| ~~adverse~~ action    | ~~adverse~~ action    |                      |
| **to deny, withdraw,  | **to deny, withdraw,  |                      |
| suspend, revoke, or   | suspend, revoke, or   |                      |
| terminate             | terminate             |                      |
| accreditation or      | accreditation or      |                      |
| preaccreditation, or  | preaccreditation, or  |                      |
| take comparable       | take comparable       |                      |
| action against the    | action against the    |                      |
| institution or        | institution or        |                      |
| program** unless the  | program** unless the  |                      |
| agency, for good      | agency, for good      |                      |
| cause, extends the    | cause, extends the    |                      |
| period for achieving  | period for achieving  |                      |
| compliance.           | compliance.           |                      |
+-----------------------+-----------------------+----------------------+
| §602.28 Regard for    | §602.28 Regard for    |                      |
| decisions of States   | decisions of States   |                      |
| and other accrediting | and other accrediting |                      |
| agencies.             | agencies.             |                      |
|                       |                       |                      |
| \* \* \* \* \*        | \* \* \* \* \*        |                      |
|                       |                       |                      |
| \(d\) If the agency   | \(d\) If the agency   |                      |
| learns that an        | learns that an        |                      |
| institution it        | institution it        |                      |
| accredits or          | accredits or          |                      |
| preaccredits, or an   | preaccredits, or an   |                      |
| institution that      | institution that      |                      |
| offers a program it   | offers a program it   |                      |
| accredits or          | accredits or          |                      |
| preaccredits, is the  | preaccredits, is the  |                      |
| subject of an         | subject of an         |                      |
| ~~adverse~~ action    | ~~adverse~~ action    |                      |
| **to deny, withdraw,  | **to deny, withdraw,  |                      |
| suspend, revoke, or   | suspend, revoke, or   |                      |
| terminate             | terminate             |                      |
| accreditation or      | accreditation or      |                      |
| preaccreditation, or  | preaccreditation, or  |                      |
| take comparable       | take comparable       |                      |
| action against the    | action against the    |                      |
| institution or        | institution or        |                      |
| program** by another  | program** by another  |                      |
| recognized            | recognized            |                      |
| accrediting agency or | accrediting agency or |                      |
| has been placed on    | has been placed on    |                      |
| probation or an       | probation or an       |                      |
| equivalent status by  | equivalent status by  |                      |
| another recognized    | another recognized    |                      |
| agency, the agency    | agency, the agency    |                      |
| must promptly review  | must promptly review  |                      |
| its accreditation or  | its accreditation or  |                      |
| preaccreditation of   | preaccreditation of   |                      |
| the institution or    | the institution or    |                      |
| program to determine  | program to determine  |                      |
| if it should also     | if it should also     |                      |
| take **such**         | take **such**         |                      |
| ~~adverse~~ action or | ~~adverse~~ action or |                      |
| place the institution | place the institution |                      |
| or program on         | or program on         |                      |
| probation or show     | probation or show     |                      |
| cause.                | cause.                |                      |
|                       |                       |                      |
| \(e\) The agency      | \(e\) The agency      |                      |
| must, upon request,   | must, upon request,   |                      |
| share with other      | share with other      |                      |
| appropriate           | appropriate           |                      |
| recognized            | recognized            |                      |
| accrediting agencies  | accrediting agencies  |                      |
| and recognized State  | and recognized State  |                      |
| approval agencies     | approval agencies     |                      |
| information about the | information about the |                      |
| accreditation or      | accreditation or      |                      |
| preaccreditation      | preaccreditation      |                      |
| status of an          | status of an          |                      |
| institution or        | institution or        |                      |
| program and any       | program and any       |                      |
| ~~adverse~~ action it | ~~adverse~~ action it |                      |
| has taken **to deny,  | has taken **to deny,  |                      |
| withdraw, suspend,    | withdraw, suspend,    |                      |
| revoke, or terminate  | revoke, or terminate  |                      |
| accreditation or      | accreditation or      |                      |
| preaccreditation, or  | preaccreditation, or  |                      |
| take comparable       | take comparable       |                      |
| action** against an   | action** against an   |                      |
| accredited or         | accredited or         |                      |
| preaccredited         | preaccredited         |                      |
| institution or        | institution or        |                      |
| program.              | program.              |                      |
+-----------------------+-----------------------+----------------------+

**Issue #2:** Substantive Change

**Regulatory Cite:** §602.22

**Tentative Agreement:** Reached at session 2 (March 26-28, 2007)

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+-----------------------+
| **Language proposed   | **Draft regulatory    | ## Summary of Change  |
| by the Department of  | language as of April  |                       |
| Education\            | 26, 2007**            |                       |
| during the March      |                       |                       |
| 26-28, 2007 session** |                       |                       |
+-----------------------+-----------------------+-----------------------+
| [§602.22 Substantive  | [§602.22 Substantive  | -   Clarifies that    |
| change.]{.underline}  | change.]{.underline}  |     substantive       |
|                       |                       |     change includes   |
| \* \* \* \* \*        | \* \* \* \* \*        |     the addition of   |
|                       |                       |     courses or        |
| (a)(2) The agency's   | (a)(2) The agency's   |     programs that     |
| definition of a       | definition of a       |     represent a       |
| substantive change    | substantive change    |     significant       |
| includes at least the | includes at least the |     departure from an |
| following types of    | following types of    |     institution or    |
| change:               | change:               |     program's scope   |
|                       |                       |     of existing       |
| \(i\) Any change in   | \(i\) Any change in   |     offerings.        |
| the established       | the established       |                       |
| mission or objectives | mission or objectives | -   Eliminates the    |
| of the institution.   | of the institution.   |     proposed          |
|                       |                       |     requirement that  |
| \(ii\) Any change in  | \(ii\) Any change in  |     a school applying |
| the legal status,     | the legal status,     |     to an agency for  |
| form of control, or   | form of control, or   |     approval to add   |
| ownership of the      | ownership of the      |     locations without |
| institution.          | institution.          |     getting           |
|                       |                       |     individual prior  |
| \(iii\) The addition  | \(iii\) The addition  |     approval submit a |
| of courses or         | of courses or         |     management plan   |
| programs that         | programs that         |     and, instead,     |
| represent a           | represent a           |     requires that the |
| significant           | significant           |     institution       |
| departure, in         | departure~~, in       |     demonstrate that  |
| ~~either~~ content**, | either                |     it has a system   |
| academic subject      | [c                    |     in place to       |
| matter,** or method   | ontent**,**]{.mark}~~ |     ensure quality    |
| of delivery, from     | [~~**academic subject |     across a          |
| those that were       | matter,**~~ **from    |     distributed       |
| offered when the      | the scope of existing |     enterprise.       |
| agency last evaluated | offerings of          |                       |
| the institution.      | educational           | -   Changes the       |
|                       | pr                    |     period of time    |
| \(iv\) The addition   | ograms**]{.mark}**,** |     for which an      |
| of courses or         | or method of          |     agency can grant  |
| programs at a degree  | delivery, from those  |     prior approval    |
| or credential level   | that were offered     |     for the addition  |
| ~~above~~ **different | when the agency last  |     of multiple       |
| from** that which is  | evaluated the         |     locations from    |
| included in the       | institution.          |     four years to     |
| institution's current |                       |     five years and    |
| accreditation or      | \(iv\) The addition   |     clarifies that    |
| preaccreditation.     | of courses or         |     the approval may  |
|                       | programs at a degree  |     not remain in     |
| \(v\) A change from   | or credential level   |     force if an       |
| clock hours to credit | ~~above~~ **different |     institution       |
| hours.                | from** that which is  |     undergoes a       |
|                       | included in the       |     change in         |
| \(vi\) A substantial  | institution's current |     ownership         |
| increase in the       | accreditation or      |     resulting in a    |
| number of clock or    | preaccreditation.     |     change in         |
| credit hours awarded  |                       |     control.          |
| for successful        | \(v\) A change from   |                       |
| completion of a       | clock hours to credit | -   Clarifies that    |
| program.              | hours.                |     agencies would do |
|                       |                       |     a new             |
| **(vii) If the        | \(vi\) A substantial  |     comprehensive     |
| agency's              | increase in the       |     evaluation of     |
| accreditation of an   | number of clock or    |     institutions      |
| institution enables   | credit hours awarded  |     where changes are |
| the institution to    | for successful        |     extensive, rather |
| seek eligibility to   | completion of a       |     than specifying   |
| participate in Title  | program.              |     that an agency    |
| IV, HEA programs, the |                       |     must require an   |
| entering into a       | **(vii) If the        |     application for   |
| contract under which  | agency's              |     initial           |
| an institution or     | accreditation of an   |     accreditation in  |
| organization not      | institution enables   |     such cases.       |
| certified to          | the institution to    |                       |
| participate in those  | seek eligibility to   | -   Allows an agency  |
| programs offers more  | participate in Title  |     evaluating a      |
| than 25 percent of    | IV, HEA programs, the |     change in         |
| one or more of the    | entering into a       |     ownership to      |
| accredited            | contract under which  |     designate the     |
| institution's         | an institution or     |     date of the       |
| educational           | organization not      |     change as the     |
| programs.**           | certified to          |     effective date    |
|                       | participate in those  |     for its approval  |
| ~~(vii)~~**(viii) If  | programs offers more  |     as long as the    |
| the agency's          | than 25 percent of    |     decision is made  |
| accreditation of an   | one or more of the    |     within 30 days of |
| institution enables   | accredited            |     the change.       |
| the institution to    | institution's         |                       |
| seek eligibility to   | educational           |                       |
| participate in Title  | programs.**           |                       |
| IV, HEA programs,     |                       |                       |
| the** establishment   | ~~(vii)~~**(viii) If  |                       |
| of an additional      | the agency's          |                       |
| location              | accreditation of an   |                       |
| geographically apart  | institution enables   |                       |
| from the main campus  | the institution to    |                       |
| at which the          | seek eligibility to   |                       |
| institution offers at | participate in Title  |                       |
| least 50 percent of   | IV, HEA programs,     |                       |
| an educational        | the** establishment   |                       |
| program. **An         | of an additional      |                       |
| addition of such a    | location              |                       |
| location must be      | geographically apart  |                       |
| approved by the       | from the main campus  |                       |
| agency in accordance  | at which the          |                       |
| with paragraph (c) of | institution offers at |                       |
| this section unless   | least 50 percent of   |                       |
| the accrediting       | an educational        |                       |
| agency determines,    | program. **An         |                       |
| and issues a written  | addition of such a    |                       |
| determination         | location must be      |                       |
| stating, that the     | approved by the       |                       |
| institution has been  | agency in accordance  |                       |
| accredited for at     | with paragraph (c) of |                       |
| least ten years, has  | this section unless   |                       |
| at least three        | the accrediting       |                       |
| additional locations  | agency determines,    |                       |
| that the agency has   | and issues a written  |                       |
| approved, and has met | determination         |                       |
| criteria established  | stating, that the     |                       |
| by the agency         | institution ~~has     |                       |
| indicating sufficient | been accredited for   |                       |
| maturity to add       | at least ten years    |                       |
| additional locations  | ~~****[has            |                       |
| without individual    | successfully          |                       |
| prior approvals,      | completed at least    |                       |
| including, at a       | one cycle of          |                       |
| minimum, a management | accreditation of      |                       |
| plan that provides    | maximum length        |                       |
| satisfactory evidence | offered by the agency |                       |
| of---**               | and one renewal or    |                       |
|                       | has been accredited   |                       |
| **(A) A system to     | for at least ten      |                       |
| ensure quality across | years]{.mark}, has at |                       |
| a distributed         | least three           |                       |
| enterprise;**         | additional locations  |                       |
|                       | that the agency has   |                       |
| **(B) Centralized     | approved, and has met |                       |
| academic control;**   | criteria established  |                       |
|                       | by the agency         |                       |
| **(C) Centralized and | indicating sufficient |                       |
| regular evaluation of | [~~maturity~~]{.mark} |                       |
| the locations;**      | [capacity]{.mark} to  |                       |
|                       | add additional        |                       |
| **(D) Adequate        | locations without     |                       |
| faculty, facilities,  | individual prior      |                       |
| resources, and        | approvals, including, |                       |
| academic and student  | at a minimum, [~~a    |                       |
| support systems;**    | management plan that  |                       |
|                       | provides satisfactory |                       |
| **(E) Financial       | evidence of---~~      |                       |
| stability; and**      | satisfactory evidence |                       |
|                       | of a system to ensure |                       |
| **(F) Long-range      | quality across a      |                       |
| planning for          | distributed           |                       |
| expansion.**          | enterprise that       |                       |
|                       | includes]{.mark}---** |                       |
| **The agency's        |                       |                       |
| procedures must       | **~~(A) A system to   |                       |
| require timely        | ensure quality across |                       |
| reporting to the      | a distributed         |                       |
| agency of every       | enterprise;~~**       |                       |
| additional location   |                       |                       |
| established under     | **~~(B) Centralized   |                       |
| this approval. Each   | academic control;~~** |                       |
| agency determination  |                       |                       |
| or redetermination to | **~~(C) Centralized   |                       |
| preapprove the        | and regular           |                       |
| addition of multiple  | evaluation of the     |                       |
| locations under this  | locations;~~**        |                       |
| paragraph must be of  |                       |                       |
| limited duration, and | **~~(D) Adequate      |                       |
| may not exceed four   | faculty, facilities,  |                       |
| years. The approval   | resources, and        |                       |
| may not remain in     | academic and student  |                       |
| force after an        | support systems;~~**  |                       |
| institution undergoes |                       |                       |
| a change in           | **~~(E) Financial     |                       |
| ownership.**          | stability; and~~**    |                       |
|                       |                       |                       |
| **(3) The agency's    | **~~(F) Long-range    |                       |
| substantive change    | planning for          |                       |
| policy defines when   | expansion.~~**        |                       |
| the changes made or   |                       |                       |
| proposed are or would | **[(A) Clearly        |                       |
| be sufficiently       | identified academic   |                       |
| extensive to require  | control;]{.mark}**    |                       |
| the agency to process |                       |                       |
| the application as a  | []{.mark}             |                       |
| request for initial   |                       |                       |
| accreditation or      | **[(B) Regular        |                       |
| preaccreditation of a | evaluation of the     |                       |
| new institution or    | locations;]{.mark}**  |                       |
| program.**            |                       |                       |
|                       | []{.mark}             |                       |
| \(b\) The agency may  |                       |                       |
| determine the         | **[(C) Adequate       |                       |
| procedures it uses to | faculty, facilities,  |                       |
| grant prior approval  | resources, and        |                       |
| of the substantive    | academic and student  |                       |
| change. However,      | support               |                       |
| **the procedures must | systems;]{.mark}**    |                       |
| specify an effective  |                       |                       |
| date, not             | []{.mark}             |                       |
| retroactive, on which |                       |                       |
| the change is         | **[(D) Financial      |                       |
| included in the       | stability;            |                       |
| program's or          | and]{.mark}**         |                       |
| institution's         |                       |                       |
| accreditation.**      | []{.mark}             |                       |
| Except as provided in |                       |                       |
| paragraph (c) of this | **[(E) Long-range     |                       |
| section, these may,   | planning for          |                       |
| but need not, require | expansion.]{.mark}**  |                       |
| a visit by the        |                       |                       |
| agency.               | **The agency's        |                       |
|                       | procedures must       |                       |
| \(c\) If the agency's | require timely        |                       |
| accreditation of an   | reporting to the      |                       |
| institution enables   | agency of every       |                       |
| the institution to    | additional location   |                       |
| seek eligibility to   | established under     |                       |
| participate in Title  | this approval. Each   |                       |
| IV, HEA programs, the | agency determination  |                       |
| agency's procedures   | or redetermination to |                       |
| for the approval of   | preapprove the        |                       |
| an additional         | addition of multiple  |                       |
| location described in | locations under this  |                       |
| paragraph             | paragraph must be of  |                       |
| (a)(2)(vii**i**) of   | limited duration, and |                       |
| this section must     | may not exceed five   |                       |
| determine if the      | years. ~~The approval |                       |
| institution has the   | may not remain in     |                       |
| fiscal and            | force after an        |                       |
| administrative        | institution undergoes |                       |
| capacity to operate   | a change in           |                       |
| the additional        | ownership.~~ [The     |                       |
| location. In          | agency may no longer  |                       |
| addition, the         | preapprove an         |                       |
| agency's procedures   | institution's         |                       |
| must include---       | addition of multiple  |                       |
|                       | locations under this  |                       |
| \(1\) A visit, within | paragraph after the   |                       |
| six months, to each   | institution undergoes |                       |
| additional location   | a change of ownership |                       |
| the institution       | resulting in a change |                       |
| establishes, if the   | in control as defined |                       |
| institution\--        | in 34 C.F.R. §600.31  |                       |
|                       | until the institution |                       |
| \(i\) Has a total of  | demonstrates that it  |                       |
| three or fewer        | meets the conditions  |                       |
| additional locations; | for the agency to     |                       |
|                       | preapprove multiple   |                       |
| \(ii\) Has not        | locations set forth   |                       |
| demonstrated, to the  | in this               |                       |
| agency's              | paragraph.]{.mark}**  |                       |
| satisfaction, that it |                       |                       |
| has a proven record   | **(3) The agency's    |                       |
| of effective          | substantive change    |                       |
| educational oversight | policy [must]{.mark}  |                       |
| of additional         | define[~~s~~]{.mark}  |                       |
| locations; or         | when the changes made |                       |
|                       | or proposed are or    |                       |
| \(iii\) Has been      | would be sufficiently |                       |
| placed on warning,    | extensive to require  |                       |
| probation or show     | the agency to         |                       |
| cause by the agency   | ~~process the         |                       |
| or is subject to some | application as a      |                       |
| limitation by the     | request for initial   |                       |
| agency on its         | accreditation or      |                       |
| accreditation or      | preaccreditation of a |                       |
| preaccreditation      | new institution or    |                       |
| status;               | program~~ [do a new   |                       |
|                       | comprehensive         |                       |
| \(2\) An effective    | evaluation of the     |                       |
| mechanism for         | i                     |                       |
| conducting, at        | nstitution]{.mark}.** |                       |
| reasonable intervals  |                       |                       |
| **throughout the      | \(b\) The agency may  |                       |
| accreditation         | determine the         |                       |
| cycle,** visits to    | procedures it uses to |                       |
| **a representative    | grant prior approval  |                       |
| sample of**           | of the substantive    |                       |
| additional locations  | change. **However,**  |                       |
| of institutions that  | **the procedures must |                       |
| operate more than     | specify an effective  |                       |
| three additional      | date, not             |                       |
| locations; and        | retroactive, on which |                       |
|                       | the change is         |                       |
| \(3\) An effective    | included in the       |                       |
| mechanism, which may, | program's or          |                       |
| at the agency's       | institution's         |                       |
| discretion, include   | accreditation.**      |                       |
| visits to additional  | **[An agency may      |                       |
| locations, for        | designate the date of |                       |
| ensuring that         | a change of ownership |                       |
| accredited and        | as the effective date |                       |
| preaccredited         | of its approval of    |                       |
| institutions that     | that substantive      |                       |
| experience rapid      | change if the         |                       |
| growth in the number  | accreditation         |                       |
| of additional         | decision is made      |                       |
| locations maintain    | within 30 days of the |                       |
| educational quality.  | change of             |                       |
|                       | ownership.]{.mark}**  |                       |
| \(d\) The purpose of  | Except as provided in |                       |
| the visits described  | paragraph (c) of this |                       |
| in paragraph (c) of   | section, [**the       |                       |
| this section is to    | agency's approval     |                       |
| verify that the       | policies** ~~these~~  |                       |
| additional location   | **for additional      |                       |
| has the personnel,    | locations**]{.mark}   |                       |
| facilities, and       | may, but need not,    |                       |
| resources it claimed  | require a visit by    |                       |
| to have in its        | the agency.           |                       |
| application to the    |                       |                       |
| agency for approval   | \(c\) If the agency's |                       |
| of the additional     | accreditation of an   |                       |
| location.             | institution enables   |                       |
|                       | the institution to    |                       |
|                       | seek eligibility to   |                       |
|                       | participate in Title  |                       |
|                       | IV, HEA programs, the |                       |
|                       | agency's procedures   |                       |
|                       | for the approval of   |                       |
|                       | an additional         |                       |
|                       | location described in |                       |
|                       | paragraph             |                       |
|                       | (a)(2)(vii**i**) of   |                       |
|                       | this section must     |                       |
|                       | determine if the      |                       |
|                       | institution has the   |                       |
|                       | fiscal and            |                       |
|                       | administrative        |                       |
|                       | capacity to operate   |                       |
|                       | the additional        |                       |
|                       | location. In          |                       |
|                       | addition, the         |                       |
|                       | agency's procedures   |                       |
|                       | must include---       |                       |
|                       |                       |                       |
|                       | \(1\) A visit, within |                       |
|                       | six months, to each   |                       |
|                       | additional location   |                       |
|                       | the institution       |                       |
|                       | establishes, if the   |                       |
|                       | institution\--        |                       |
|                       |                       |                       |
|                       | \(i\) Has a total of  |                       |
|                       | three or fewer        |                       |
|                       | additional locations; |                       |
|                       |                       |                       |
|                       | \(ii\) Has not        |                       |
|                       | demonstrated, to the  |                       |
|                       | agency's              |                       |
|                       | satisfaction, that it |                       |
|                       | has a proven record   |                       |
|                       | of effective          |                       |
|                       | educational oversight |                       |
|                       | of additional         |                       |
|                       | locations; or         |                       |
|                       |                       |                       |
|                       | \(iii\) Has been      |                       |
|                       | placed on warning,    |                       |
|                       | probation or show     |                       |
|                       | cause by the agency   |                       |
|                       | or is subject to some |                       |
|                       | limitation by the     |                       |
|                       | agency on its         |                       |
|                       | accreditation or      |                       |
|                       | preaccreditation      |                       |
|                       | status;               |                       |
|                       |                       |                       |
|                       | \(2\) An effective    |                       |
|                       | mechanism for         |                       |
|                       | conducting, at        |                       |
|                       | reasonable intervals  |                       |
|                       | **throughout the      |                       |
|                       | accreditation         |                       |
|                       | cycle,** visits to    |                       |
|                       | **a representative    |                       |
|                       | sample of**           |                       |
|                       | additional locations  |                       |
|                       | of institutions that  |                       |
|                       | operate more than     |                       |
|                       | three additional      |                       |
|                       | locations; and        |                       |
|                       |                       |                       |
|                       | \(3\) An effective    |                       |
|                       | mechanism, which may, |                       |
|                       | at the agency's       |                       |
|                       | discretion, include   |                       |
|                       | visits to additional  |                       |
|                       | locations, for        |                       |
|                       | ensuring that         |                       |
|                       | accredited and        |                       |
|                       | preaccredited         |                       |
|                       | institutions that     |                       |
|                       | experience rapid      |                       |
|                       | growth in the number  |                       |
|                       | of additional         |                       |
|                       | locations maintain    |                       |
|                       | educational quality.  |                       |
|                       |                       |                       |
|                       | \(d\) The purpose of  |                       |
|                       | the visits described  |                       |
|                       | in paragraph (c) of   |                       |
|                       | this section is to    |                       |
|                       | verify that the       |                       |
|                       | additional location   |                       |
|                       | has the personnel,    |                       |
|                       | facilities, and       |                       |
|                       | resources it claimed  |                       |
|                       | to have in its        |                       |
|                       | application to the    |                       |
|                       | agency for approval   |                       |
|                       | of the additional     |                       |
|                       | location.             |                       |
+-----------------------+-----------------------+-----------------------+

**Issue #3:** Monitoring of institutions

**Regulatory Cite:** §602.19

**Tentative Agreement:**

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+---+-----------------------+---+----------------------+
| **Language proposed   |   | **Draft regulatory    |   | **Summary of         |
| by the Department of  |   | language as of April  |   | Change**             |
| Education\            |   | 26, 2007**            |   |                      |
| during the March      |   |                       |   |                      |
| 26-28, 2007 session** |   |                       |   |                      |
+-----------------------+---+-----------------------+---+----------------------+
| [§602.19 Monitoring   | [ |                       | - |                      |
| and reevaluation of   | § |                       |   |                      |
| accredited            | 6 |                       |   |                      |
| institutions and      | 0 |                       |   |                      |
| p                     | 2 |                       | A |                      |
| rograms.]{.underline} | . |                       | d |                      |
|                       | 1 |                       | d |                      |
| \(a\) The agency must | 9 |                       | s |                      |
| reevaluate, at        | M |                       |   |                      |
| regularly established | o |                       |   |                      |
| intervals, the        | n |                       |   |                      |
| institutions or       | i |                       |   |                      |
| programs it has       | t |                       | p |                      |
| accredited or         | o |                       | e |                      |
| preaccredited.        | r |                       | r |                      |
|                       | i |                       | i |                      |
| \(b\) The agency must | n |                       | o |                      |
| monitor institutions  | g |                       | d |                      |
| or programs           | a |                       | i |                      |
| throughout their      | n |                       | c |                      |
| accreditation or      | d |                       |   |                      |
| preaccreditation      | r |                       |   |                      |
| period, including     | e |                       |   |                      |
| conducting special    | e |                       |   |                      |
| evaluations or site   | v |                       | r |                      |
| visits, as necessary, | a |                       | e |                      |
| to ensure that the    | l |                       | p |                      |
| institution or        | u |                       | o |                      |
| program\--            | a |                       | r |                      |
|                       | t |                       | t |                      |
| \(1\) Resolves        | i |                       | s |                      |
| identified problems   | o |                       |   |                      |
| related to compliance | n |                       |   |                      |
| with agency           | o |                       |   |                      |
| standards; and        | f |                       |   |                      |
|                       | a |                       | t |                      |
| \(2\) Implements      | c |                       | o |                      |
| concrete and          | c |                       |   |                      |
| reasonable steps to   | r |                       |   |                      |
| improve the           | e |                       |   |                      |
| institution's or      | d |                       |   |                      |
| program's performance | i |                       | t |                      |
| in relation to the    | t |                       | h |                      |
| institution's         | e |                       | e |                      |
| educational mission.  | d |                       |   |                      |
|                       | i |                       |   |                      |
| \(c\) The agency must | n |                       |   |                      |
| regularly collect and | s |                       |   |                      |
| analyze information   | t |                       | l |                      |
| on key performance    | i |                       | i |                      |
| indicators, such as   | t |                       | s |                      |
| enrollments,          | u |                       | t |                      |
| financial audits,     | t |                       |   |                      |
| retention and         | i |                       |   |                      |
| completion rates, and | o |                       |   |                      |
| other measures of     | n |                       |   |                      |
| student achievement   | s |                       | o |                      |
| identified by the     | a |                       | f |                      |
| agency, to signal the | n |                       |   |                      |
| need for              | d |                       |   |                      |
| intervention.         | p |                       |   |                      |
|                       | r |                       |   |                      |
| \(d\) The agency must | o |                       | w |                      |
| provide a rationale   | g |                       | a |                      |
| acceptable to the     | r |                       | y |                      |
| Secretary, which may  | a |                       | s |                      |
| include consideration | m |                       |   |                      |
| of the length of      | s |                       |   |                      |
| educational           | . |                       |   |                      |
| offerings, for the    | ] |                       |   |                      |
| intervals between     | { |                       | a |                      |
| evaluations and       | . |                       | g |                      |
| institutional         | u |                       | e |                      |
| reporting that takes  | n |                       | n |                      |
| into consideration    | d |                       | c |                      |
| the length of the     | e |                       | i |                      |
| accreditation period. | r |                       | e |                      |
|                       | l |                       | s |                      |
|                       | i |                       |   |                      |
|                       | n |                       |   |                      |
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|                       | u |                       |   |                      |
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|                       | d |                       |   |                      |
|                       | c |                       |   |                      |
|                       | o |                       |   |                      |
|                       | m |                       |   |                      |
|                       | p |                       |   |                      |
|                       | l |                       |   |                      |
|                       | i |                       |   |                      |
|                       | a |                       |   |                      |
|                       | n |                       |   |                      |
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|                       | e |                       |   |                      |
|                       | w |                       |   |                      |
|                       | i |                       |   |                      |
|                       | t |                       |   |                      |
|                       | h |                       |   |                      |
|                       | a |                       |   |                      |
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|                       | e |                       |   |                      |
|                       | n |                       |   |                      |
|                       | c |                       |   |                      |
|                       | y |                       |   |                      |
|                       | s |                       |   |                      |
|                       | t |                       |   |                      |
|                       | a |                       |   |                      |
|                       | n |                       |   |                      |
|                       | d |                       |   |                      |
|                       | a |                       |   |                      |
|                       | r |                       |   |                      |
|                       | d |                       |   |                      |
|                       | s |                       |   |                      |
|                       | a |                       |   |                      |
|                       | n |                       |   |                      |
|                       | d |                       |   |                      |
|                       | t |                       |   |                      |
|                       | h |                       |   |                      |
|                       | a |                       |   |                      |
|                       | t |                       |   |                      |
|                       | t |                       |   |                      |
|                       | a |                       |   |                      |
|                       | k |                       |   |                      |
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|                       | i |                       |   |                      |
|                       | n |                       |   |                      |
|                       | t |                       |   |                      |
|                       | o |                       |   |                      |
|                       | a |                       |   |                      |
|                       | c |                       |   |                      |
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|                       | o |                       |   |                      |
|                       | u |                       |   |                      |
|                       | n |                       |   |                      |
|                       | t |                       |   |                      |
|                       | i |                       |   |                      |
|                       | n |                       |   |                      |
|                       | s |                       |   |                      |
|                       | t |                       |   |                      |
|                       | i |                       |   |                      |
|                       | t |                       |   |                      |
|                       | u |                       |   |                      |
|                       | t |                       |   |                      |
|                       | i |                       |   |                      |
|                       | o |                       |   |                      |
|                       | n |                       |   |                      |
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|                       | l |                       |   |                      |
|                       | o |                       |   |                      |
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|                       | r |                       |   |                      |
|                       | o |                       |   |                      |
|                       | g |                       |   |                      |
|                       | r |                       |   |                      |
|                       | a |                       |   |                      |
|                       | m |                       |   |                      |
|                       | s |                       |   |                      |
|                       | t |                       |   |                      |
|                       | r |                       |   |                      |
|                       | e |                       |   |                      |
|                       | n |                       |   |                      |
|                       | g |                       |   |                      |
|                       | t |                       |   |                      |
|                       | h |                       |   |                      |
|                       | s |                       |   |                      |
|                       | a |                       |   |                      |
|                       | n |                       |   |                      |
|                       | d |                       |   |                      |
|                       | s |                       |   |                      |
|                       | t |                       |   |                      |
|                       | a |                       |   |                      |
|                       | b |                       |   |                      |
|                       | i |                       |   |                      |
|                       | l |                       |   |                      |
|                       | i |                       |   |                      |
|                       | t |                       |   |                      |
|                       | y |                       |   |                      |
|                       | . |                       |   |                      |
|                       | ] |                       |   |                      |
|                       | { |                       |   |                      |
|                       | . |                       |   |                      |
|                       | m |                       |   |                      |
|                       | a |                       |   |                      |
|                       | r |                       |   |                      |
|                       | k |                       |   |                      |
|                       | } |                       |   |                      |
|                       | * |                       |   |                      |
|                       | * |                       |   |                      |
+-----------------------+---+-----------------------+---+----------------------+

Issue #4: Relationship of input and resource standards to student

> achievement

**Regulatory Cite:** §602.16

Summary of draft regulatory language as of April 26, 2007:

This issue was dropped by the Department in response to input from
negotiators.

**Issue #5:** Standard definitions of terms related to student
achievement

**Regulatory Cite:** §602.16

Summary of draft regulatory language as of April 26, 2007:

This issue was dropped by the Department in response to input from
negotiators.

**Issue #6:** Quantitative standards for programs leading to gainful
employment

**Issue #7:** Institutional success with respect to student achievement

**Regulatory Cite:** §602.16

Tentative agreement: Not reached -- Two dissentions

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+-----------------------+
| **Language proposed   | **Draft regulatory    | **Summary of Change** |
| by the Department of  | language as of April  |                       |
| Education\            | 26, 2007**            |                       |
| during the March      |                       |                       |
| 26-28, 2007 session** |                       |                       |
+-----------------------+-----------------------+-----------------------+
| §602.16 Accreditation | §602.16 Accreditation | -   Incorporates      |
| and preaccreditation  | and preaccreditation  |     language provided |
| standards.            | standards.            |     by non-federal    |
|                       |                       |     negotiators to    |
| \(a\) The agency must | \(a\) The agency must |     clarify the role  |
| demonstrate that it   | demonstrate that it   |     of institutions   |
| has standards for     | has standards for     |     in specifying     |
| accreditation and     | accreditation and**,  |     goals for student |
| preaccreditation, if  | [if                   |     achievement,      |
| offered, that are     | offered]{.mark},**    |     establishing      |
| sufficiently rigorous | preaccreditation~~,   |     expected levels   |
| to ensure that the    | if offered,~~ that    |     of performance,   |
| agency is a reliable  | are sufficiently      |     determining       |
| authority regarding   | rigorous to ensure    |     performance       |
| the quality of the    | that the agency is a  |     measures, and     |
| education or training | reliable authority    |     providing         |
| provided by the       | regarding the quality |     qualitative and   |
| institutions or       | of the education or   |     quantitative      |
| programs it           | training provided by  |     evidence of that  |
| accredits. The agency | the institutions or   |     performance.      |
| meets this            | programs it           |                       |
| requirement if\--     | accredits. The agency | -   Incorporates      |
|                       | meets this            |     language provided |
| \(1\) The agency's    | requirement if\--     |     by non-federal    |
| accreditation         |                       |     negotiators to    |
| standards effectively | \(1\) The agency's    |     clarify the role  |
| address the quality   | accreditation         |     of accrediting    |
| of the institution or | standards effectively |     agencies in       |
| program in the        | address the quality   |     establishing      |
| following areas:      | of the institution or |     expected levels   |
|                       | program in the        |     of performance if |
| \(i\) Success with    | following areas:      |     they are not      |
| respect to student    |                       |     established by    |
| achievement in        | \(i\) Success with    |     the institution   |
| relation to the       | respect to student    |     and demonstrating |
| institution's         | achievement in        |     that its          |
| mission~~, including  | relation to the       |     standards and     |
| as appropriate,       | institution's         |     processes allow   |
| consideration of      | mission, **[which may |     it to evaluate    |
| course completion,    | include different     |     whether the       |
| State licensing       | standards for         |     evidence provided |
| examinations, and job | different types of    |     by the            |
| placement rates~~**.  | institutions or       |     institution or    |
| For standards under   | programs.]{.mark}**   |     program is        |
| paragraph (a)(1)(i)   | ~~, including as      |     acceptable.       |
| of this section, the  | appropriate,          |                       |
| agency must---**      | consideration of      | -   Incorporates      |
|                       | course completion,    |     language provided |
| **(A) For any         | State licensing       |     by non-federal    |
| prebaccalaureate      | examinations, and job |     negotiators       |
| vocational or         | placement rates~~**[. |     addressing        |
| occupational          | ~~For standards under |     completion rates, |
| education program to  | paragraph (a)(1)(i)   |     job placement     |
| be included in the    | of this section, the  |     rates, and as     |
| institution's         | agency~~]{.mark}      |     applicable, pass  |
| accreditation,        | [Standards satisfying |     rates on State    |
| establish minimum     | this criterion must   |     licensing         |
| levels of expected    | include expected      |     examinations or   |
| student performance   | levels of performance |     other appropriate |
| using quantitative    | that are either       |     measures of       |
| measures, including a | established by the    |     occupational      |
| prescribed method of  | agency, or            |     competency for    |
| computation, for\--** | established by the    |     prebaccalaureate  |
|                       | institution or        |     vocational        |
| ***(1)* Completion    | program under         |     programs and      |
| rates;**              | subparagraphs (A) and |     degree programs   |
|                       | (B). In               |     leading to        |
| ***(2)* Job placement | addition\--]{.mark}** |     initial           |
| rates; and**          |                       |     professional      |
|                       | **[~~(A) For any      |     licensure or      |
| ***(3)* Pass rates on | prebaccalaureate      |     certification.    |
| State licensing       | vocational or         |                       |
| examinations or other | occupational          | -   Incorporates      |
| appropriate measures  | education program to  |     language provided |
| of occupational       | be included in the    |     by non-federal    |
| competency.**         | institution's         |     negotiators       |
|                       | accreditation,        |     providing         |
| **(B) For any         | establish minimum     |     flexibility for   |
| baccalaureate or      | levels of expected    |     institutional     |
| professional degree   | student performance   |     accrediting       |
| program that is to be | using quantitative    |     agencies to       |
| accredited or         | measures, including a |     consider          |
| included in an        | prescribed method of  |     information at    |
| institution's         | computation,          |     either the        |
| accreditation, and    | for\--~~]{.mark}**    |     program level,    |
| that has as its       |                       |     the aggregate     |
| objective the         | []{.mark}             |     level, or both in |
| preparation of        |                       |     making the        |
| students for          | [**~~*(1)* Completion |     institutional     |
| employment in an      | rates;~~**]{.mark}    |     accreditation     |
| occupation or         |                       |     decision.         |
| profession that       | []{.mark}             |                       |
| requires successful   |                       |                       |
| performance on a      | [**~~*(2)* Job        |                       |
| certification or      | placement rates;      |                       |
| licensing exam,       | and~~**]{.mark}       |                       |
| establish minimum     |                       |                       |
| expected levels of    | []{.mark}             |                       |
| student performance   |                       |                       |
| using quantitative    | [**~~*(3)* Pass rates |                       |
| measures, including a | on State licensing    |                       |
| prescribed method for | examinations or other |                       |
| computation, for---** | appropriate measures  |                       |
|                       | of occupational       |                       |
| ***(1)* Completion    | co                    |                       |
| rates;**              | mpetency.~~**]{.mark} |                       |
|                       |                       |                       |
| ***(2)* Job placement | []{.mark}             |                       |
| rates; and**          |                       |                       |
|                       | **[~~(B) For any      |                       |
| ***(3)* Pass rates on | baccalaureate or      |                       |
| State licensing       | professional degree   |                       |
| examinations or other | program that is to be |                       |
| appropriate measures  | accredited or         |                       |
| of occupational or    | included in an        |                       |
| professional          | institution's         |                       |
| competency.**         | accreditation, and    |                       |
|                       | that has as its       |                       |
| **(C) Measure         | objective the         |                       |
| institutional success | preparation of        |                       |
| with respect to       | students for          |                       |
| student achievement   | employment in an      |                       |
| by---**               | occupation or         |                       |
|                       | profession that       |                       |
| ***(1)* Determining   | requires successful   |                       |
| whether the programs  | performance on a      |                       |
| offered by an         | certification or      |                       |
| institution, or the   | licensing exam,       |                       |
| institution's         | establish minimum     |                       |
| programs in each      | expected levels of    |                       |
| subject area, meet an | student performance   |                       |
| expected level of     | using quantitative    |                       |
| performance with      | measures, including a |                       |
| respect to student    | prescribed method for |                       |
| achievement on        | computation,          |                       |
| quantitative and      | for---~~]{.mark}**    |                       |
| qualitative measures  |                       |                       |
| established by the    | []{.mark}             |                       |
| agency for all        |                       |                       |
| institutions it       | [**~~*(1)* Completion |                       |
| accredits; or**       | rates;~~**]{.mark}    |                       |
|                       |                       |                       |
| ***(2)* Developing    | []{.mark}             |                       |
| and ensuring          |                       |                       |
| compliance with a set | [**~~*(2)* Job        |                       |
| of evaluative         | placement rates;      |                       |
| rubrics, applicable   | and~~**]{.mark}       |                       |
| to multiple           |                       |                       |
| institutions with     | []{.mark}             |                       |
| similar missions,     |                       |                       |
| that include a        | [**~~*(3)* Pass rates |                       |
| variety of            | on State licensing    |                       |
| quantitative and      | examinations or other |                       |
| qualitative measures  | appropriate measures  |                       |
| related to student    | of occupational or    |                       |
| achievement and, for  | professional          |                       |
| each institution,     | co                    |                       |
| weighting the         | mpetency.~~**]{.mark} |                       |
| components of each    |                       |                       |
| rubric in accordance  | []{.mark}             |                       |
| with the particular   |                       |                       |
| characteristics of    | **[~~(C) Measure      |                       |
| the institution and   | institutional success |                       |
| specifying an         | with respect to       |                       |
| expected level of     | student achievement   |                       |
| performance; or**     | by---~~]{.mark}**     |                       |
|                       |                       |                       |
| ***(3)* For each      | []{.mark}             |                       |
| program the           |                       |                       |
| institution offers,   | [**~~*(1)*            |                       |
| requiring the         | Determining whether   |                       |
| institution to:       | the programs offered  |                       |
| specify the           | by an institution, or |                       |
| educational           | the institution's     |                       |
| objective(s) of the   | programs in each      |                       |
| program; using        | subject area, meet    |                       |
| quantitative and      | an~~**]{.mark}        |                       |
| qualitative measures  | **[~~expected level   |                       |
| \-- which must        | of performance with   |                       |
| include those         | respect to student    |                       |
| developed under       | achievement on        |                       |
| paragraphs            | quantitative and      |                       |
| (a)(1)(i)(A) and (B)  | qualitative measures  |                       |
| of this section, when | established by the    |                       |
| applicable \--        | agency for all        |                       |
| establish expected    | institutions it       |                       |
| levels of             | accredits;            |                       |
| performance,          | or~~]{.mark}**        |                       |
| acceptable to the     |                       |                       |
| agency, with respect  | []{.mark}             |                       |
| to student            |                       |                       |
| achievement           | [**~~*(2)* Developing |                       |
| consistent with the   | and ensuring          |                       |
| program's             | compliance with a set |                       |
| objective(s) and the  | of evaluative         |                       |
| institution's         | rubrics, applicable   |                       |
| mission; make a       | to multiple           |                       |
| showing satisfactory  | institutions with     |                       |
| to the agency that    | similar missions,     |                       |
| the program has met   | that include a        |                       |
| the expected levels   | variety of            |                       |
| of performance it has | quantitative and      |                       |
| established; and      | qualitative measures  |                       |
| demonstrate to the    | related to student    |                       |
| satisfaction of the   | achievement and, for  |                       |
| agency that it makes  | each institution,     |                       |
| available to the      | weighting the         |                       |
| public and to each    | components of each    |                       |
| prospective student   | rubric in accordance  |                       |
| the institution's     | with the particular   |                       |
| mission as well as    | characteristics of    |                       |
| the program's         | the institution and   |                       |
| objective(s),         | specifying an         |                       |
| expected levels of    | expected level of     |                       |
| performance on        | performance;          |                       |
| qualitative and       | or~~**]{.mark}        |                       |
| quantitative          |                       |                       |
| measures, and the     | []{.mark}             |                       |
| actual performance on |                       |                       |
| these measures.**     | [**~~*(3)* For each   |                       |
|                       | program the           |                       |
|                       | institution offers,   |                       |
|                       | requiring the         |                       |
|                       | institution to:       |                       |
|                       | specify the           |                       |
|                       | educational           |                       |
|                       | objective(s) of the   |                       |
|                       | program; using        |                       |
|                       | quantitative and      |                       |
|                       | qualitative measures  |                       |
|                       | \-- which must        |                       |
|                       | include those         |                       |
|                       | developed under       |                       |
|                       | paragraphs            |                       |
|                       | (a)(1)(i)(A) and (B)  |                       |
|                       | of this section, when |                       |
|                       | applicable \--        |                       |
|                       | establish expected    |                       |
|                       | levels of             |                       |
|                       | performance,          |                       |
|                       | acceptable to the     |                       |
|                       | agency, with respect  |                       |
|                       | to student            |                       |
|                       | achievement           |                       |
|                       | consistent with the   |                       |
|                       | program's             |                       |
|                       | objective(s) and the  |                       |
|                       | institution's         |                       |
|                       | mission; make a       |                       |
|                       | showing satisfactory  |                       |
|                       | to the agency that    |                       |
|                       | the program has met   |                       |
|                       | the expected levels   |                       |
|                       | of performance it has |                       |
|                       | established; and      |                       |
|                       | demonstrate to the    |                       |
|                       | satisfaction of the   |                       |
|                       | agency that it makes  |                       |
|                       | available to the      |                       |
|                       | public and to each    |                       |
|                       | prospective student   |                       |
|                       | the institution's     |                       |
|                       | mission as well as    |                       |
|                       | the program's         |                       |
|                       | objective(s),         |                       |
|                       | expected levels of    |                       |
|                       | performance on        |                       |
|                       | qualitative and       |                       |
|                       | quantitative          |                       |
|                       | measures, and the     |                       |
|                       | actual performance on |                       |
|                       | these                 |                       |
|                       | measures.~~**]{.mark} |                       |
|                       |                       |                       |
|                       | **[(A) If the agency  |                       |
|                       | does not establish    |                       |
|                       | the expected levels   |                       |
|                       | of performance with   |                       |
|                       | respect to student    |                       |
|                       | achievement, the      |                       |
|                       | institution or        |                       |
|                       | program, at the       |                       |
|                       | institution or        |                       |
|                       | program level         |                       |
|                       | respectively,         |                       |
|                       | must\--]{.mark}**     |                       |
|                       |                       |                       |
|                       | []{.mark}             |                       |
|                       |                       |                       |
|                       | **[*(1)* Specify its  |                       |
|                       | goals for student     |                       |
|                       | a                     |                       |
|                       | chievement;]{.mark}** |                       |
|                       |                       |                       |
|                       | []{.mark}             |                       |
|                       |                       |                       |
|                       | **[*(2)* Establish    |                       |
|                       | the expected level of |                       |
|                       | performance;          |                       |
|                       | and]{.mark}**         |                       |
|                       |                       |                       |
|                       | []{.mark}             |                       |
|                       |                       |                       |
|                       | **[*(3)* Demonstrate  |                       |
|                       | its performance       |                       |
|                       | against those         |                       |
|                       | expected levels of    |                       |
|                       | performance using     |                       |
|                       | quantitative and      |                       |
|                       | qualitative evidence, |                       |
|                       | including, as         |                       |
|                       | appropriate, external |                       |
|                       | indicators.]{.mark}** |                       |
|                       |                       |                       |
|                       | []{.mark}             |                       |
|                       |                       |                       |
|                       | **[(B) For            |                       |
|                       | prebaccalaureate      |                       |
|                       | vocational programs   |                       |
|                       | and degree programs   |                       |
|                       | leading to initial    |                       |
|                       | professional          |                       |
|                       | licensure or          |                       |
|                       | certification,        |                       |
|                       | expected levels of    |                       |
|                       | performance must      |                       |
|                       | include completion    |                       |
|                       | rates, job placement  |                       |
|                       | rates, and, as        |                       |
|                       | applicable, pass      |                       |
|                       | rates on State        |                       |
|                       | licensing             |                       |
|                       | examinations or other |                       |
|                       | appropriate measures  |                       |
|                       | of occupational       |                       |
|                       | competency.]{.mark}** |                       |
|                       |                       |                       |
|                       | []{.mark}             |                       |
|                       |                       |                       |
|                       | **[(C) Every agency   |                       |
|                       | must demonstrate that |                       |
|                       | its standards and     |                       |
|                       | processes allow it to |                       |
|                       | evaluate whether the  |                       |
|                       | evidence provided by  |                       |
|                       | the institution or    |                       |
|                       | program shows that    |                       |
|                       | the institution's or  |                       |
|                       | program's performance |                       |
|                       | is acceptable. In any |                       |
|                       | instances when the    |                       |
|                       | institution or        |                       |
|                       | program establishes   |                       |
|                       | the expected levels   |                       |
|                       | of performance, the   |                       |
|                       | agency must also      |                       |
|                       | demonstrate that its  |                       |
|                       | standards and         |                       |
|                       | processes allow it to |                       |
|                       | evaluate the          |                       |
|                       | institution's or      |                       |
|                       | program's expected    |                       |
|                       | levels of             |                       |
|                       | performance. The      |                       |
|                       | agency will take into |                       |
|                       | account the           |                       |
|                       | institution's or      |                       |
|                       | program's use of      |                       |
|                       | other externally-set  |                       |
|                       | performance measures  |                       |
|                       | or                    |                       |
|                       | criteria.]{.mark}**   |                       |
|                       |                       |                       |
|                       | []{.mark}             |                       |
|                       |                       |                       |
|                       | **[(D) Institutional  |                       |
|                       | accreditors will      |                       |
|                       | consider information  |                       |
|                       | provided by the       |                       |
|                       | institution about     |                       |
|                       | program level         |                       |
|                       | performance either in |                       |
|                       | the aggregate, or at  |                       |
|                       | both the program      |                       |
|                       | level and in the      |                       |
|                       | aggregate, in making  |                       |
|                       | the institutional     |                       |
|                       | accreditation         |                       |
|                       | decision.]{.mark}**   |                       |
|                       |                       |                       |
|                       | []{.mark}             |                       |
+-----------------------+-----------------------+-----------------------+

Issue #8: Consideration of mission in application of standards

Regulatory Cite: §602.17

Tentative Agreement: Reached at session 2 (March 26-28, 2007)

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+----------------------+
| ## L                  | **Draft regulatory    | **Summary of         |
| anguage proposed by t | language as of April  | Change**             |
| he Department of Educ | 26, 2007**            |                      |
| ation during the Marc |                       |                      |
| h 26-28, 2007 session |                       |                      |
+-----------------------+-----------------------+----------------------+
| [§602.17 Application  | [§602.17 Application  | -   Requires         |
| of standards in       | of standards in       |     accrediting      |
| reaching an           | reaching an           |     agencies to not  |
| accrediting           | accrediting           |     undermine the    |
| d                     | d                     |     religious        |
| ecision.]{.underline} | ecision.]{.underline} |     mission of an    |
|                       |                       |     institution when |
| The agency must have  | The agency must have  |     applying their   |
| effective mechanisms  | effective mechanisms  |     standards.       |
| for evaluating an     | for evaluating an     |                      |
| institution's or      | institution's or      |                      |
| program's compliance  | program's compliance  |                      |
| with the agency's     | with the agency's     |                      |
| standards before      | standards before      |                      |
| reaching a decision   | reaching a decision   |                      |
| to accredit or        | to accredit or        |                      |
| preaccredit the       | preaccredit the       |                      |
| institution or        | institution or        |                      |
| program. The agency   | program. The agency   |                      |
| meets this            | meets this            |                      |
| requirement if the    | requirement if the    |                      |
| agency demonstrates   | agency demonstrates   |                      |
| that it---            | that it---            |                      |
|                       |                       |                      |
| \(a\) Shows due       | ~~(a) Shows due       |                      |
| regard for            | regard for            |                      |
| institutional mission | institutional mission |                      |
| in applying agency    | in applying agency    |                      |
| standards and         | standards and         |                      |
| policies that are     | policies that are     |                      |
| unrelated to          | unrelated to          |                      |
| educational quality;  | educational           |                      |
|                       | quality;~~            |                      |
| (~~a~~b) Evaluates    |                       |                      |
| whether an            | [(g) Applies its      |                      |
| institution or        | accreditation         |                      |
| program---            | standards in a manner |                      |
|                       | that does not         |                      |
| (Renumber as          | undermine the stated  |                      |
| necessary)            | religious mission of  |                      |
|                       | any institution of    |                      |
|                       | higher                |                      |
|                       | education.]{.mark}    |                      |
+-----------------------+-----------------------+----------------------+

Issue #9: Transfer of credit and acceptance of credentials

Regulatory Cite: §602.16(a)(1)(vii)

Tentative Agreement: Not reached -- One dissention

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+----------------------+
| ##  L                 | **Draft regulatory    | **Summary of         |
| anguage proposed by t | language as of April  | Change**             |
| he Department of Educ | 26, 2007**            |                      |
| ation during the Marc |                       |                      |
| h 26-28, 2007 session |                       |                      |
+-----------------------+-----------------------+----------------------+
| §602.16 Accreditation | §602.16 Accreditation | -   Clarifies that   |
| and preaccreditation  | and preaccreditation  |     the regulation   |
| standards.            | standards.            |     would not        |
|                       |                       |     require an audit |
| \(a\) The agency must | \(a\) The agency must |     of practice.     |
| demonstrate that it   | demonstrate that it   |                      |
| has standards for     | has standards for     |                      |
| accreditation and,    | accreditation and,    |                      |
| **if offered,**       | **if offered,**       |                      |
| preaccreditation,     | preaccreditation,     |                      |
| ~~if offered,~~ that  | ~~if offered,~~ that  |                      |
| are sufficiently      | are sufficiently      |                      |
| rigorous to ensure    | rigorous to ensure    |                      |
| that the agency is a  | that the agency is a  |                      |
| reliable authority    | reliable authority    |                      |
| regarding the quality | regarding the quality |                      |
| of the education or   | of the education or   |                      |
| training provided by  | training provided by  |                      |
| the institutions or   | the institutions or   |                      |
| programs it           | programs it           |                      |
| accredits. The agency | accredits. The agency |                      |
| meets this            | meets this            |                      |
| requirement if \--    | requirement if \--    |                      |
|                       |                       |                      |
| \(1\) The agency's    | \(1\) The agency's    |                      |
| accreditation         | accreditation         |                      |
| standards effectively | standards effectively |                      |
| address the quality   | address the quality   |                      |
| of the institution or | of the institution or |                      |
| program in the        | program in the        |                      |
| following areas:      | following areas:      |                      |
|                       |                       |                      |
| \* \* \*              | \* \* \*              |                      |
|                       |                       |                      |
| \(vii\) Recruiting    | \(vii\) Recruiting    |                      |
| and admissions        | and admissions        |                      |
| practices,            | practices,            |                      |
| **including those     | **[~~including those  |                      |
| related to transfer   | related to transfer   |                      |
| of credit and         | of credit and         |                      |
| acceptance of         | acceptance of         |                      |
| credentials,**        | cre                   |                      |
| academic calendars,   | dentials,~~]{.mark}** |                      |
| catalogs,             | academic calendars,   |                      |
| publications,         | catalogs,             |                      |
| grading, and          | publications,         |                      |
| advertising.          | grading, and          |                      |
|                       | advertising.          |                      |
| **(A) The agency must |                       |                      |
| ensure that decisions | **(A) [~~The agency   |                      |
| about transfer of     | must ensure~~ Agency  |                      |
| credit and acceptance | standards on          |                      |
| of credentials are    | admissions must       |                      |
| not made solely on    | provide]{.mark} that  |                      |
| the source of         | decisions about       |                      |
| accreditation of a    | transfer of credit    |                      |
| sending institution   | and acceptance of     |                      |
| or program, as long   | credentials are not   |                      |
| as the accreditation  | made solely on the    |                      |
| in question is from a | source of             |                      |
| recognized            | accreditation of a    |                      |
| accrediting agency    | sending institution   |                      |
| and within that       | or program, as long   |                      |
| agency's scope, and   | as the accreditation  |                      |
| must also ensure that | in question is from a |                      |
| the institutions or   | recognized            |                      |
| programs it accredits | accrediting agency    |                      |
| provide a complete    | and within that       |                      |
| description to        | agency's scope, and   |                      |
| prospective students  | must also ensure that |                      |
| of their policies     | the institutions or   |                      |
| concerning transfer   | programs ~~[it        |                      |
| of credit and         | accredits]{.mark}     |                      |
| acceptance of         | [provide a complete   |                      |
| credentials.**        | description]{.mark}~~ |                      |
|                       | [disclose]{.mark} to  |                      |
|                       | prospective students  |                      |
|                       | [~~of~~]{.mark} their |                      |
|                       | policies concerning   |                      |
|                       | transfer of credit    |                      |
|                       | and acceptance of     |                      |
|                       | credentials.**        |                      |
+-----------------------+-----------------------+----------------------+

**Issue #10:** Direct assessment programs

Regulatory Cite: §602.3, §602.18

Tentative Agreement: Reached at session 3 (April 24-26, 2007)

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+----------------------+
| **Language proposed   | **Draft regulatory    | **Summary of         |
| by the Department of  | language as of April  | Change**             |
| Education\            | 26, 2007**            |                      |
| during the March      |                       |                      |
| 26-28, 2007 session** |                       |                      |
+-----------------------+-----------------------+----------------------+
| [§602.3 What          | [§602.3 What          | -   The definition   |
| definitions apply to  | definitions apply to  |     of "direct       |
| this                  | this                  |     assessment of    |
| part?]{.underline}    | part?]{.underline}    |     student          |
|                       |                       |     learning" has    |
| \* \* \* \* \*        | \* \* \* \* \*        |     been removed.    |
|                       |                       |     Agencies will be |
| *Direct assessment    | *Direct assessment    |     regarded as      |
| program* means an     | program* means an     |     recognized for   |
| instructional program | instructional program |     their            |
| that, in lieu of      | that, in lieu of      |     accreditation of |
| credit hours or clock | credit hours or clock |     direct           |
| hours as a measure of | hours as a measure of |     assessment       |
| student learning,     | student learning,     |     programs only to |
| utilizes direct       | utilizes direct       |     the extent the   |
| assessment of student | assessment of student |     direct           |
| learning, or          | learning, or          |     assessment       |
| recognizes the direct | recognizes the direct |     programs they    |
| assessment of student | assessment of student |     accredit are     |
| learning by others.   | learning by others.   |     approved by the  |
|                       |                       |     Secretary for    |
| *Direct assessment of | [~~*Direct assessment |     Title IV         |
| student learning*     | of student learning*  |     purposes under   |
| means a measure by    | means a measure by    |     §668.10.         |
| the institution of    | the institution of    |                      |
| what a student knows  | what a student knows  |                      |
| and can do in terms   | and can do in terms   |                      |
| of the body of        | of the body of        |                      |
| knowledge making up   | knowledge making up   |                      |
| the education         | the education         |                      |
| program. Examples of  | program. Examples of  |                      |
| direct measures       | direct measures       |                      |
| include projects,     | include projects,     |                      |
| papers, examinations, | papers, examinations, |                      |
| presentations,        | presentations,        |                      |
| performances, and     | performances, and     |                      |
| portfolios.           | portfolios.~~]{.mark} |                      |
|                       |                       |                      |
| \* \* \*              | \* \* \*              |                      |
|                       |                       |                      |
| *Scope of             | *Scope of             |                      |
| recognition* or       | recognition* or       |                      |
| *scope* means the     | *scope* means the     |                      |
| range of accrediting  | range of accrediting  |                      |
| activities for which  | activities for which  |                      |
| the Secretary         | the Secretary         |                      |
| recognizes an agency. | recognizes an agency. |                      |
| The Secretary may     | The Secretary may     |                      |
| place a limitation on | place a limitation on |                      |
| the scope of an       | the scope of an       |                      |
| agency's recognition  | agency's recognition  |                      |
| for Title IV, HEA     | for Title IV, HEA     |                      |
| purposes. The         | purposes. [Except     |                      |
| Secretary's           | with respect to       |                      |
| designation of scope  | programs approved by  |                      |
| defines the           | the Secretary under   |                      |
| recognition granted   | 34 C.F.R. §668.10,    |                      |
| according to---       | scope does not        |                      |
|                       | include accreditation |                      |
| \* \* \*              | or preaccreditation   |                      |
|                       | granted to or         |                      |
| \(4\) Types of        | comprising any        |                      |
| preaccreditation      | program offered in    |                      |
| status covered, if    | whole or in part as a |                      |
| any; ~~and~~          | direct assessment     |                      |
|                       | program.]{.mark} The  |                      |
| \(5\) Coverage of     | Secretary's           |                      |
| accrediting           | designation of scope  |                      |
| activities related to | defines the           |                      |
| distance education,   | recognition granted   |                      |
| if any; and           | according to---       |                      |
|                       |                       |                      |
| \(6\) Coverage of     | \* \* \*              |                      |
| accrediting           |                       |                      |
| activities related to | [~~(4) Types of       |                      |
| direct assessment     | preaccreditation      |                      |
| programs, if any.     | status covered, if    |                      |
|                       | any; and~~]{.mark}    |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | [~~(5) Coverage of    |                      |
|                       | accrediting           |                      |
|                       | activities related to |                      |
|                       | distance education,   |                      |
|                       | if any; and~~]{.mark} |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | [~~(6) Coverage of    |                      |
|                       | accrediting           |                      |
|                       | activities related to |                      |
|                       | direct assessment     |                      |
|                       | programs, if          |                      |
|                       | any.~~]{.mark}        |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
+-----------------------+-----------------------+----------------------+
| [§602.18 Ensuring     | [~~[§602.18 Ensuring  |                      |
| consistency in        | consistency in        |                      |
| decision              | decision-making.]{    |                      |
| -making.]{.underline} | .underline}~~]{.mark} |                      |
|                       |                       |                      |
| The agency must       | []{.mark}             |                      |
| consistently apply    |                       |                      |
| and enforce its       | [~~The agency must    |                      |
| standards to ensure   | consistently apply    |                      |
| that the education or | and enforce its       |                      |
| training offered by   | standards to ensure   |                      |
| an institution or     | that the education or |                      |
| program, including    | training offered by   |                      |
| any offered through   | an institution or     |                      |
| distance              | program, including    |                      |
| education~~,~~ and    | any offered through   |                      |
| any utilizing direct  | distance education,   |                      |
| assessment of student | and any utilizing     |                      |
| learning in lieu of   | direct assessment of  |                      |
| credit or clock       | student learning in   |                      |
| hours, is of          | lieu of credit or     |                      |
| sufficient quality to | clock hours, is of    |                      |
| achieve its stated    | sufficient quality to |                      |
| objective for the     | achieve its stated    |                      |
| duration of any       | objective for the     |                      |
| accreditation or      | duration of any       |                      |
| preaccreditation      | accreditation or      |                      |
| period granted by the | preaccreditation      |                      |
| agency. The agency    | period granted by the |                      |
| meets this            | agency. The agency    |                      |
| requirement if the    | meets this            |                      |
| agency---             | requirement if the    |                      |
|                       | agency---~~]{.mark}   |                      |
| \* \* \*              |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | > [~~\* \*~~]{.mark}  |                      |
+-----------------------+-----------------------+----------------------+

Issue #11: Scope of Recognition

**Regulatory Cite:** §602.2(a), §602.3, §602.12(b), §602.15,
§602.22(a)(1),

> §602.27(d)(1), §602.30(a)(1), §602.32(a)(1)(ii) and (iii)

Summary of draft regulatory language as of April 26, 2007:

This issue was dropped by the Department in response to input from
negotiators.

Issue #12: Recognition procedures

Issue #13: Decision-making authority

**Regulatory Cite:** §602.3; Part 602, Subparts C and D

**Tentative Agreement:**

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+----------------------+
| ## L                  | **Draft regulatory    | **Summary of         |
| anguage proposed by t | language as of April  | Change**             |
| he Department of Educ | 26, 2007**            |                      |
| ation during the Marc |                       |                      |
| h 26-28, 2007 session |                       |                      |
+-----------------------+-----------------------+----------------------+
| §602.3 What           | §602.3 What           | -   **NOTE:          |
| definitions apply to  | definitions apply to  |     Non-federal      |
| this part?            | this part?            |     negotiators are  |
|                       |                       |     currently        |
| \* \* \*              | \* \* \*              |     developing       |
|                       |                       |     alternative      |
| ***Recognition* means | ***Recognition* means |     language for     |
| an unappealed         | an unappealed         |     issues #12/#13   |
| determination by the  | determination by the  |     and will present |
| senior Department     | senior Department     |     it at the June   |
| official under 34     | official under 34     |     1, 2007          |
| C.F.R. §602.34, or a  | C.F.R. §602.34, or a  |     negotiation      |
| determination by the  | determination by the  |     session.**       |
| Secretary on appeal   | Secretary on appeal   |                      |
| under 34 C.F.R.       | under 34 C.F.R.       | -   A new definition |
| §602.36, that an      | §602.36, that an      |     of "Recognition" |
| accrediting agency    | accrediting agency    |     clarifies that   |
| complies with the     | complies with the     |     recognition is   |
| criteria for          | criteria for          |     conditional and  |
| recognition listed in | recognition listed in |     may be revoked   |
| Subpart B of this     | subpart B of this     |     at any time      |
| part and that the     | part and that the     |     during the       |
| agency is effective   | agency is effective   |     agency's period  |
| in its performance    | in its performance    |     of recognition   |
| with respect to those | with respect to those |     if the agency is |
| criteria. Recognition | criteria. Recognition |     found to be out  |
| is conditional and    | is conditional and    |     of compliance    |
| may be revoked at any | may be revoked at any |     with the         |
| time prior to its     | time prior to its     |     criteria for     |
| expiration upon a     | expiration upon a     |     recognition or   |
| determination made in | determination made in |     is no longer     |
| accordance with 34    | accordance with 34    |     effective in its |
| C.F.R. §602.34 or 34  | C.F.R. §602.34 or 34  |     performance.     |
| C.F.R. §602.36, as    | C.F.R. §602.36, as    |                      |
| applicable, that the  | applicable, that the  | -   A change in      |
| agency no longer      | agency no longer      |     §602.31(b)(1)    |
| complies with the     | complies with the     |     clarifies that   |
| Subpart B criteria or | subpart B criteria or |     as part of       |
| that it has become    | that it has become    |     Department staff |
| ineffective in its    | ineffective in its    |     analysis of an   |
| performance with      | performance with      |     agency's         |
| respect to those      | respect to those      |     application, a   |
| criteria.**           | criteria.**           |     site visit to    |
|                       |                       |     the agency       |
|                       |                       |     and/or           |
|                       |                       |     institutions or  |
|                       |                       |     programs the     |
|                       |                       |     agency accredits |
|                       |                       |     is required. The |
|                       |                       |     senior           |
|                       |                       |     Department       |
|                       |                       |     official, rather |
|                       |                       |     than the         |
|                       |                       |     Secretary, will  |
|                       |                       |     receive and act  |
|                       |                       |     upon NACIQI's    |
|                       |                       |     recommendations. |
|                       |                       |     The Secretary    |
|                       |                       |     will be the      |
|                       |                       |     decision-making  |
|                       |                       |     authority for    |
|                       |                       |     appeals. The     |
|                       |                       |     appeal           |
|                       |                       |     procedures are   |
|                       |                       |     detailed in a    |
|                       |                       |     new §602.35.     |
|                       |                       |                      |
|                       |                       | -   A new §602.32    |
|                       |                       |     details the      |
|                       |                       |     procedures for   |
|                       |                       |     conducting an    |
|                       |                       |     investigation    |
|                       |                       |     into the         |
|                       |                       |     compliance of a  |
|                       |                       |     recognized       |
|                       |                       |     agency with the  |
|                       |                       |     criteria for     |
|                       |                       |     recognition in   |
|                       |                       |     the midst of the |
|                       |                       |     recognition      |
|                       |                       |     period, for      |
|                       |                       |     soliciting       |
|                       |                       |     information from |
|                       |                       |     the agency, and  |
|                       |                       |     for bringing the |
|                       |                       |     agency before    |
|                       |                       |     NACIQI.          |
|                       |                       |                      |
|                       |                       | -   Two procedural   |
|                       |                       |     subparts, one    |
|                       |                       |     for the          |
|                       |                       |     recognition      |
|                       |                       |     process and the  |
|                       |                       |     other for the    |
|                       |                       |     limitation,      |
|                       |                       |     suspension or    |
|                       |                       |     termination of   |
|                       |                       |     recognition, are |
|                       |                       |     combined.        |
+-----------------------+-----------------------+----------------------+
| Subpart C -- The      | Subpart C -- The      |                      |
| Recognition Process   | Recognition Process   |                      |
|                       |                       |                      |
| §602.31 How does      | §602.31 How does      |                      |
| Department staff      | Department staff      |                      |
| review an agency's    | review an agency's    |                      |
| application?          | application?          |                      |
|                       |                       |                      |
| \* \* \*              | \* \* \*              |                      |
|                       |                       |                      |
| \(b\) Department      | \(b\) Department      |                      |
| staff analyzes the    | staff analyzes the    |                      |
| agency's application  | agency's application  |                      |
| to determine whether  | to determine whether  |                      |
| the agency satisfies  | the agency satisfies  |                      |
| the criteria for      | the criteria for      |                      |
| recognition, taking   | recognition, taking   |                      |
| into account all      | into account all      |                      |
| available relevant    | available relevant    |                      |
| information           | information           |                      |
| concerning the        | concerning the        |                      |
| compliance of the     | compliance of the     |                      |
| agency with those     | agency with those     |                      |
| criteria and any      | criteria and any      |                      |
| deficiencies in the   | deficiencies in the   |                      |
| agency's performance  | agency's performance  |                      |
| with respect to the   | with respect to the   |                      |
| criteria. The         | criteria. The         |                      |
| analysis includes---  | analysis includes---  |                      |
|                       |                       |                      |
| \(1\) **At the        | \(1\) [~~**At the     |                      |
| Secretary's           | Secretary's           |                      |
| discretion,**         | discretion,**         |                      |
| ~~S~~**s**ite visits, | S~~S]{.mark}ite       |                      |
| on an announced or    | visits, on an         |                      |
| unannounced basis, to | announced or          |                      |
| the agency and~~, at  | unannounced basis, to |                      |
| the Secretary's       | the agency or to some |                      |
| discretion,~~ to some | of the institutions   |                      |
| of the institutions   | or programs it        |                      |
| or programs it        | accredits or          |                      |
| accredits or          | preaccredits.         |                      |
| preaccredits.         |                       |                      |
|                       | \* \* \*              |                      |
| \* \* \*              |                       |                      |
+-----------------------+-----------------------+----------------------+
| **§602.32 What other  | [**§602.32 What       |                      |
| type of review may    | ~~other type of       |                      |
| Department staff      | review may Department |                      |
| conduct?**            | staff conduct?~~**    |                      |
|                       | **procedures will the |                      |
| **(a) Department      | Department staff      |                      |
| staff may conduct an  | follow in             |                      |
| investigation into    | investigating         |                      |
| the compliance of a   | recognized            |                      |
| recognized agency     | agencies?**]{.mark}   |                      |
| with the criteria for |                       |                      |
| recognition at any    | **(a) Department      |                      |
| time, on its own      | staff may conduct an  |                      |
| initiative, at the    | investigation into    |                      |
| request of the        | the compliance of a   |                      |
| Advisory Committee,   | recognized agency     |                      |
| or in response to a   | with the criteria for |                      |
| third party           | recognition at any    |                      |
| complaint. The        | time, on its own      |                      |
| investigation may     | initiative, at the    |                      |
| include, but need not | request of the        |                      |
| be limited to, any of | Advisory Committee,   |                      |
| the activities        | ~~or in response to a |                      |
| described in 34       | third party           |                      |
| C.F.R. §602.31(b)(1), | complaint~~ [or based |                      |
| (b)(2), (b)(3), and   | on any other relevant |                      |
| (c).**                | information received, |                      |
|                       | including any third   |                      |
| **(b) If, in the      | party complaint that  |                      |
| course of the         | appears credible and  |                      |
| investigation,        | raises issues         |                      |
| Department staff      | relevant to           |                      |
| identifies one or     | recognition.]{.mark}  |                      |
| more areas of         | The investigation may |                      |
| apparent              | include, but need not |                      |
| non-compliance with   | be limited to, any of |                      |
| the criteria for      | the activities        |                      |
| recognition, it\--**  | described in 34       |                      |
|                       | C.F.R. §602.31(b)(1), |                      |
| **(1) May request     | (b)(2), (b)(3), and   |                      |
| that an agency file a | (c).**                |                      |
| report (including     |                       |                      |
| documentation)        | **(b) If, in the      |                      |
| addressing the        | course of the         |                      |
| criteria with which   | investigation,        |                      |
| the agency's          | Department staff      |                      |
| continued compliance  | ~~identifies~~        |                      |
| is in question;**     | [concludes            |                      |
|                       | that]{.mark} one or   |                      |
| **(2) Establishes a   | more [~~areas of      |                      |
| schedule for the      | apparent              |                      |
| review of the issues  | non-~~material        |                      |
| by the National       | deficiencies may      |                      |
| Advisory Committee on | exist in the          |                      |
| Institutional Quality | agency's]{.mark}      |                      |
| and Integrity;**      | compliance with the   |                      |
|                       | criteria for          |                      |
| **(3) Publishes a     | recognition, it\--**  |                      |
| notice in the Federal |                       |                      |
| Register inviting the | **[~~(1) May request  |                      |
| public to comment on  | that an agency file a |                      |
| the agency's          | report (including     |                      |
| compliance with the   | documentation)        |                      |
| criteria in question  | addressing the        |                      |
| and establishing a    | criteria with which   |                      |
| deadline for receipt  | the agency's          |                      |
| of public comment;**  | continued compliance  |                      |
|                       | is in                 |                      |
| **(4) Provides State  | question;~~]{.mark}** |                      |
| licensing or          |                       |                      |
| authorizing agencies, | []{.mark}             |                      |
| all currently         |                       |                      |
| recognized            | **[~~(2) Establishes  |                      |
| accrediting agencies, | a schedule for the    |                      |
| and other appropriate | review of the issues  |                      |
| organizations with    | by the National       |                      |
| copies of the Federal | Advisory Committee on |                      |
| Register notice;      | Institutional Quality |                      |
| and**                 | and                   |                      |
|                       | I                     |                      |
| **(5) Prepares a      | ntegrity;~~]{.mark}** |                      |
| written analysis of   |                       |                      |
| the agency's          | []{.mark}             |                      |
| compliance with the   |                       |                      |
| criteria identified   | **[~~(3) Publishes a  |                      |
| that reflects the     | notice in the Federal |                      |
| results of the        | Register inviting the |                      |
| investigation, and    | public to comment on  |                      |
| that includes a       | the agency's          |                      |
| recommendation        | compliance with the   |                      |
| regarding what action | criteria in question  |                      |
| to take with respect  | and establishing a    |                      |
| to recognition.       | deadline for receipt  |                      |
| Possible              | of public             |                      |
| recommendations       | comment;~~]{.mark}**  |                      |
| include, but are not  |                       |                      |
| limited to, limiting, | []{.mark}             |                      |
| suspending, or        |                       |                      |
| terminating           | **[~~(4) Provides     |                      |
| recognition.**        | State licensing or    |                      |
|                       | authorizing agencies, |                      |
| **(c) The Department  | all currently         |                      |
| staff sends its       | recognized            |                      |
| analysis and all      | accrediting agencies, |                      |
| supporting            | and other appropriate |                      |
| documentation to the  | organizations with    |                      |
| agency for response,  | copies of the Federal |                      |
| and, if necessary,    | Register notice;      |                      |
| prepares an addendum, | and~~]{.mark}**       |                      |
| all in accordance     |                       |                      |
| with**                | []{.mark}             |                      |
|                       |                       |                      |
| §**602.31(e)(2),      | **[~~(5) Prepares a   |                      |
| (e)(3), (f), and      | written analysis of   |                      |
| (g).**                | the agency's          |                      |
|                       | compliance with the   |                      |
| **(d) Before the      | criteria identified   |                      |
| Advisory Committee    | that reflects the     |                      |
| meeting, Department   | results of the        |                      |
| staff provides the    | investigation, and    |                      |
| Advisory Committee    | that includes a       |                      |
| with any materials    | recommendation        |                      |
| generated or obtained | regarding what action |                      |
| under this section,   | to take with respect  |                      |
| along with any other  | to recognition.       |                      |
| information           | Possible              |                      |
| Department staff      | recommendations       |                      |
| relied on in          | include, but are not  |                      |
| developing its        | limited to, limiting, |                      |
| analysis.**           | suspending, or        |                      |
|                       | terminating           |                      |
| **(e) At least 30     | rec                   |                      |
| days before the       | ognition.~~]{.mark}** |                      |
| Advisory Committee    |                       |                      |
| meeting, the          | []{.mark}             |                      |
| Department publishes  |                       |                      |
| a notice of the       | **[~~(c) The          |                      |
| meeting in the        | Department staff      |                      |
| Federal Register      | sends its analysis    |                      |
| inviting interested   | and all supporting    |                      |
| parties, including    | documentation to the  |                      |
| those who submitted   | agency for response,  |                      |
| third-party comments  | and, if necessary,    |                      |
| concerning the        | prepares an addendum, |                      |
| agency's compliance   | all in accordance     |                      |
| with the criteria for | with~~]{.mark}**      |                      |
| recognition, to make  |                       |                      |
| oral presentations    | [~~§**602.31(e)(2),   |                      |
| before the Advisory   | (e)(3), (f), and      |                      |
| Committee.**          | (g).**~~]{.mark}      |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[~~(d) Before the   |                      |
|                       | Advisory Committee    |                      |
|                       | meeting, Department   |                      |
|                       | staff provides the    |                      |
|                       | Advisory Committee    |                      |
|                       | with any materials    |                      |
|                       | generated or obtained |                      |
|                       | under this section,   |                      |
|                       | along with any other  |                      |
|                       | information           |                      |
|                       | Department staff      |                      |
|                       | relied on in          |                      |
|                       | developing its        |                      |
|                       | analysis.~~]{.mark}** |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[~~(e) At least 30  |                      |
|                       | days before the       |                      |
|                       | Advisory Committee    |                      |
|                       | meeting, the          |                      |
|                       | Department publishes  |                      |
|                       | a notice of the       |                      |
|                       | meeting in the        |                      |
|                       | Federal Register      |                      |
|                       | inviting interested   |                      |
|                       | parties, including    |                      |
|                       | those who submitted   |                      |
|                       | third-party comments  |                      |
|                       | concerning the        |                      |
|                       | agency's compliance   |                      |
|                       | with the criteria for |                      |
|                       | recognition, to make  |                      |
|                       | oral presentations    |                      |
|                       | before the Advisory   |                      |
|                       | C                     |                      |
|                       | ommittee.~~]{.mark}** |                      |
|                       |                       |                      |
|                       | [**(1) Must notify    |                      |
|                       | the agency in writing |                      |
|                       | of the criteria and   |                      |
|                       | issues of concern and |                      |
|                       | discuss the matter    |                      |
|                       | with agency           |                      |
|                       | repre                 |                      |
|                       | sentatives**;]{.mark} |                      |
|                       |                       |                      |
|                       | **[(2) If not         |                      |
|                       | satisfied with the    |                      |
|                       | agency's explanation, |                      |
|                       | establishes a time    |                      |
|                       | period, not to exceed |                      |
|                       | three months from the |                      |
|                       | date of the notice    |                      |
|                       | provided under        |                      |
|                       | paragraph (1), during |                      |
|                       | which the agency must |                      |
|                       | file a written report |                      |
|                       | (including            |                      |
|                       | documentation)        |                      |
|                       | demonstrating         |                      |
|                       | compliance with the   |                      |
|                       | criteria cited by the |                      |
|                       | staff and resolving   |                      |
|                       | all issues the staff  |                      |
|                       | has raised;]{.mark}** |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(3) Reviews any    |                      |
|                       | report submitted by   |                      |
|                       | an agency under       |                      |
|                       | paragraph (2) and, if |                      |
|                       | still                 |                      |
|                       | diss                  |                      |
|                       | atisfied---]{.mark}** |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(i) Establishes a  |                      |
|                       | schedule for the      |                      |
|                       | review of the issues  |                      |
|                       | by the Advisory       |                      |
|                       | Committee;]{.mark}**  |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(ii) Publishes a   |                      |
|                       | notice in the Federal |                      |
|                       | Register inviting the |                      |
|                       | public to comments on |                      |
|                       | the agency's          |                      |
|                       | compliance with the   |                      |
|                       | criteria in question  |                      |
|                       | and establishing a    |                      |
|                       | deadline for receipt  |                      |
|                       | of public             |                      |
|                       | comment;]{.mark}**    |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(iii) Provides     |                      |
|                       | State licensing or    |                      |
|                       | authorizing agencies, |                      |
|                       | all currently         |                      |
|                       | recognized            |                      |
|                       | accrediting agencies, |                      |
|                       | and other appropriate |                      |
|                       | organizations with    |                      |
|                       | copies of the Federal |                      |
|                       | Register              |                      |
|                       | notice;]{.mark}**     |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(iv) Prepares a    |                      |
|                       | written analysis of   |                      |
|                       | the agency's          |                      |
|                       | compliance with the   |                      |
|                       | criteria identified   |                      |
|                       | that reflects the     |                      |
|                       | results of the        |                      |
|                       | investigation, and    |                      |
|                       | that includes a       |                      |
|                       | recommendation        |                      |
|                       | regarding what action |                      |
|                       | to take with respect  |                      |
|                       | to recognition.       |                      |
|                       | Possible              |                      |
|                       | recommendations       |                      |
|                       | include, but are not  |                      |
|                       | limited to, limiting, |                      |
|                       | suspending, or        |                      |
|                       | terminating           |                      |
|                       | r                     |                      |
|                       | ecognition;]{.mark}** |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(v) Sends its      |                      |
|                       | analysis and all      |                      |
|                       | supporting            |                      |
|                       | documentation to the  |                      |
|                       | agency for response   |                      |
|                       | and, if necessary,    |                      |
|                       | prepares an addendum, |                      |
|                       | all in accordance     |                      |
|                       | with §602.31(e)(2),   |                      |
|                       | (e)(3), (f), and      |                      |
|                       | (g);]{.mark}**        |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(vi) Before the    |                      |
|                       | Advisory Committee    |                      |
|                       | hearing, provides the |                      |
|                       | Advisory Committee    |                      |
|                       | with any materials    |                      |
|                       | generated or obtained |                      |
|                       | under this section,   |                      |
|                       | along with any other  |                      |
|                       | information           |                      |
|                       | Department staff      |                      |
|                       | relied on in          |                      |
|                       | developing its        |                      |
|                       | analysis;             |                      |
|                       | and]{.mark}**         |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | [**(vii) At least 30  |                      |
|                       | days before the       |                      |
|                       | Advisory Committee    |                      |
|                       | meets to conduct      |                      |
|                       | hearings for review   |                      |
|                       | of agencies,          |                      |
|                       | publishes a notice of |                      |
|                       | the meeting in the    |                      |
|                       | Federal Register      |                      |
|                       | inviting interested   |                      |
|                       | parties, including    |                      |
|                       | those who submitted   |                      |
|                       | third-party comments  |                      |
|                       | concerning the        |                      |
|                       | agency's compliance   |                      |
|                       | with the criteria for |                      |
|                       | recognition, to make  |                      |
|                       | oral presentations    |                      |
|                       | before the Advisory   |                      |
|                       | Committee.**]{.mark}  |                      |
+-----------------------+-----------------------+----------------------+
| [§602.3~~2~~**3**     | [§602.3~~2~~**3**     |                      |
| What is the role of   | ~~What is the role of |                      |
| the Advisory          | the Advisory          |                      |
| Committee ~~and the   | Committee and the     |                      |
| senior Department     | senior Department     |                      |
| official~~ in the     | official in the       |                      |
| review of an agency's | review of an agency's |                      |
| appl                  | application?~~ **[How |                      |
| ication?]{.underline} | are Advisory          |                      |
|                       | Committee hearings    |                      |
| \(a\) The Advisory    | for review of         |                      |
| Committee considers   | agencies              |                      |
| an agency's           | conducted?]{          |                      |
| application for       | .mark}**]{.underline} |                      |
| recognition**, or a   |                       |                      |
| staff analysis        | \(a\) The Advisory    |                      |
| prepared under        | Committee considers   |                      |
| §602.32 together with | an agency's           |                      |
| the associated agency | application for       |                      |
| report, if any,** at  | recognition [**and    |                      |
| a public meeting and  | staff analysis        |                      |
| invites Department    | prepared under**      |                      |
| staff, the agency,    | §                     |                      |
| and other interested  | **602.31**]{.mark}**, |                      |
| parties to make oral  | or a staff analysis   |                      |
| presentations at the  | prepared under        |                      |
| meeting. A transcript | §602.32 together with |                      |
| is made of each       | the associated agency |                      |
| Advisory Committee    | report~~, if any,~~   |                      |
| meeting.              | [and                  |                      |
|                       | response]{.mark}**,   |                      |
| \(b\) When it         | ~~at~~                |                      |
| concludes its review, | **[in]{.mark}** a     |                      |
| the Advisory          | public ~~meeting~~    |                      |
| Committee             | **[hearing]{.mark}**  |                      |
| ~~recommends that~~   | and invites           |                      |
| **makes such          | Department staff, the |                      |
| recommendations to**  | agency, and other     |                      |
| the **senior          | interested parties to |                      |
| Department official   | make oral             |                      |
| as the Committee      | presentations ~~at~~  |                      |
| deems appropriate,    | **[during]{.mark}**   |                      |
| including, but not    | the ~~meeting~~       |                      |
| limited to, a         | **[hearing]{.mark}**. |                      |
| recommendation to**   | A transcript is made  |                      |
| ~~either~~ approve,   | of ~~each~~           |                      |
| ~~or~~ deny**, limit, | **[all]{.mark}**      |                      |
| suspend, or           | Advisory Committee    |                      |
| terminate**           | ~~meeting~~           |                      |
| recognition, or       | [                     |                      |
| ~~that the            | **hearings**]{.mark}. |                      |
| Secretary~~ **to**    |                       |                      |
| defer a decision on   | \(b\) When it         |                      |
| the agency's          | concludes its review, |                      |
| application for       | the Advisory          |                      |
| recognition.          | Committee             |                      |
|                       | ~~recommends that~~   |                      |
| (1)(i) The Advisory   | **makes such          |                      |
| Committee recommends  | recommendations to**  |                      |
| approval of           | the **senior          |                      |
| recognition if the    | Department official   |                      |
| agency complies with  | as the Committee      |                      |
| the criteria for      | deems appropriate,    |                      |
| recognition listed in | including, but not    |                      |
| subpart B of this     | limited to, a         |                      |
| part and if the       | recommendation to**   |                      |
| agency is effective   | ~~either~~ approve,   |                      |
| in its performance    | ~~or~~ deny**, limit, |                      |
| with respect to those | suspend, or           |                      |
| criteria.             | terminate**           |                      |
|                       | recognition, or       |                      |
| \(ii\) If the         | ~~that the            |                      |
| Advisory Committee    | Secretary~~ **to**    |                      |
| recommends approval,  | defer a decision on   |                      |
| the Advisory          | the agency's          |                      |
| Committee also        | application for       |                      |
| recommends a          | recognition.          |                      |
| recognition period    |                       |                      |
| and a scope of        | (1)(i) The Advisory   |                      |
| recognition.          | Committee recommends  |                      |
|                       | approval of           |                      |
| \(iii\) If the        | recognition if the    |                      |
| recommended scope or  | agency complies with  |                      |
| period of recognition | the criteria for      |                      |
| is less than that     | recognition listed in |                      |
| requested by the      | subpart B of this     |                      |
| agency, the Advisory  | part and if the       |                      |
| Committee explains    | agency is effective   |                      |
| its reasons for       | in its performance    |                      |
| recommending the      | with respect to those |                      |
| lesser scope or       | criteria.             |                      |
| recognition period.   |                       |                      |
|                       | \(ii\) If the         |                      |
| (2)(i) If the agency  | Advisory Committee    |                      |
| fails to comply with  | recommends approval,  |                      |
| the criteria for      | the Advisory          |                      |
| recognition ~~in      | Committee also        |                      |
| subpart B of this     | recommends a          |                      |
| part~~ **cited in the | recognition period    |                      |
| Department staff      | and a scope of        |                      |
| analysis,** or if the | recognition.          |                      |
| agency is not         |                       |                      |
| effective in its      | \(iii\) If the        |                      |
| performance with      | recommended scope or  |                      |
| respect to those      | period of recognition |                      |
| criteria, the         | is less than that     |                      |
| Advisory Committee    | requested by the      |                      |
| recommends denial**,  | agency, the Advisory  |                      |
| limitation,           | Committee explains    |                      |
| suspension, or        | its reasons for       |                      |
| termination** of      | recommending the      |                      |
| recognition, unless   | lesser scope or       |                      |
| the Advisory          | recognition period.   |                      |
| Committee concludes   |                       |                      |
| that a deferral **by  | (2)(i) If **[the      |                      |
| the senior Department | Advisory Committee    |                      |
| official** under      | determines that       |                      |
| paragraph (b)(3) of   | the]{.mark}** agency  |                      |
| this section is       | fails to comply with  |                      |
| warranted.            | the criteria for      |                      |
|                       | recognition ~~in      |                      |
| \(ii\) If the         | subpart B of this     |                      |
| Advisory Committee    | part~~ **cited in the |                      |
| recommends denial**,  | Department staff      |                      |
| limitation,           | analysis**, or if     |                      |
| suspension, or        | **[it determines      |                      |
| termination of        | that]{.mark}** the    |                      |
| recognition,** the    | agency is not         |                      |
| Advisory Committee    | effective in its      |                      |
| specifies the reasons | performance with      |                      |
| for its               | respect to those      |                      |
| recommendation,       | criteria, the         |                      |
| including all         | Advisory Committee    |                      |
| criteria the agency   | recommends denial,    |                      |
| fails to meet and all | **limitation,         |                      |
| areas in which the    | suspension, or        |                      |
| agency fails to       | termination** of      |                      |
| perform effectively.  | recognition, unless   |                      |
|                       | the Advisory          |                      |
| \(iii\) If the        | Committee concludes   |                      |
| Advisory Committee    | that a deferral **by  |                      |
| identifies areas of   | the senior Department |                      |
| noncompliance with    | official** under      |                      |
| the criteria for      | paragraph (b)(3) of   |                      |
| recognition (or in    | this section is       |                      |
| the effectiveness of  | warranted.            |                      |
| agency performance    |                       |                      |
| with respect to those | \(ii\) If the         |                      |
| criteria) that are    | Advisory Committee    |                      |
| not identified in the | recommends denial,    |                      |
| Department staff      | **limitation,         |                      |
| analysis before the   | suspension, or        |                      |
| Advisory Committee,   | termination of        |                      |
| the Advisory          | recognition,** the    |                      |
| Committee postpones   | Advisory Committee    |                      |
| further consideration | specifies the reasons |                      |
| of the agency until   | for its               |                      |
| its next meeting and  | recommendation,       |                      |
| recommends that the   | including all         |                      |
| Department staff      | criteria the agency   |                      |
| conduct an            | fails to meet and all |                      |
| investigation under   | areas in which the    |                      |
| 34 C.F.R. §602.32.    | agency fails to       |                      |
|                       | perform effectively.  |                      |
| \* \* \*              |                       |                      |
|                       | \(iii\) If the        |                      |
| \(c\) At the          | Advisory Committee    |                      |
| conclusion of its     | identifies areas of   |                      |
| meeting, the Advisory | noncompliance with    |                      |
| Committee forwards    | the criteria for      |                      |
| its recommendations   | recognition (or in    |                      |
| to ~~the Secretary    | the effectiveness of  |                      |
| through~~ the senior  | agency performance    |                      |
| Department official,  | with respect to those |                      |
| except as provided in | criteria) that are    |                      |
| ~~sub~~paragraph      | not identified in the |                      |
| (b)(2)(iii) of this   | Department staff      |                      |
| section.              | analysis before the   |                      |
|                       | Advisory Committee,   |                      |
| ~~(D) For any         | the Advisory          |                      |
| Advisory Committee    | Committee postpones   |                      |
| recommendation not    | further consideration |                      |
| appealed under §      | of the agency         |                      |
| 602.33, the senior    | [~~until its next     |                      |
| Department official   | meeting~~]{.mark},    |                      |
| includes with the     | and [~~recommends     |                      |
| Advisory Committee    | that the~~]{.mark}    |                      |
| materials forwarded   | Department staff      |                      |
| to the Secretary a    | conduct[s]{.mark} an  |                      |
| memorandum containing | investigation under   |                      |
| the senior Department | 34 C.F.R. §602.32 [of |                      |
| official's            | the new issues raised |                      |
| recommendations       | by the Advisory       |                      |
| regarding the actions | Committee]{.mark}.    |                      |
| proposed by the       |                       |                      |
| Advisory Committee.~~ | \* \* \*              |                      |
|                       |                       |                      |
|                       | \(c\) At the          |                      |
|                       | conclusion of its     |                      |
|                       | ~~meeting~~           |                      |
|                       | **[hearings for       |                      |
|                       | review of             |                      |
|                       | agencies]{.mark}**,   |                      |
|                       | the Advisory          |                      |
|                       | Committee forwards    |                      |
|                       | its recommendations   |                      |
|                       | to ~~the Secretary    |                      |
|                       | through~~ the senior  |                      |
|                       | Department official,  |                      |
|                       | except as provided in |                      |
|                       | paragraph (b)(2)(iii) |                      |
|                       | of this section.      |                      |
|                       |                       |                      |
|                       | ~~(D) For any         |                      |
|                       | Advisory Committee    |                      |
|                       | recommendation not    |                      |
|                       | appealed under §      |                      |
|                       | 602.33, the senior    |                      |
|                       | Department official   |                      |
|                       | includes with the     |                      |
|                       | Advisory Committee    |                      |
|                       | materials forwarded   |                      |
|                       | to the Secretary a    |                      |
|                       | memorandum containing |                      |
|                       | the senior Department |                      |
|                       | official's            |                      |
|                       | recommendations       |                      |
|                       | regarding the actions |                      |
|                       | proposed by the       |                      |
|                       | Advisory Committee.~~ |                      |
+-----------------------+-----------------------+----------------------+
| ~~§602.33 How may an  | ~~§602.33 How may an  |                      |
| agency appeal a       | agency appeal a       |                      |
| recommendation of the | recommendation of the |                      |
| Advisory Committee?~~ | Advisory Committee?~~ |                      |
|                       |                       |                      |
| ~~(a) Either the      | ~~(a) Either the      |                      |
| agency or the senior  | agency or the senior  |                      |
| Department official   | Department official   |                      |
| may appeal the        | may appeal the        |                      |
| Advisory Committee's  | Advisory Committee's  |                      |
| recommendation. If a  | recommendation. If a  |                      |
| party wishes to       | party wishes to       |                      |
| appeal that party     | appeal that party     |                      |
| must \--~~            | must \--~~            |                      |
|                       |                       |                      |
| ~~(1) Notify the      | ~~(1) Notify the      |                      |
| Secretary and the     | Secretary and the     |                      |
| other party in        | other party in        |                      |
| writing of its intent | writing of its intent |                      |
| to appeal the         | to appeal the         |                      |
| recommendation no     | recommendation no     |                      |
| later than 10 days    | later than 10 days    |                      |
| after the Advisory    | after the Advisory    |                      |
| Committee meeting;~~  | Committee meeting;~~  |                      |
|                       |                       |                      |
| ~~(2) Submit its      | ~~(2) Submit its      |                      |
| appeal in writing to  | appeal in writing to  |                      |
| the Secretary no      | the Secretary no      |                      |
| later than 30 days    | later than 30 days    |                      |
| after the Advisory    | after the Advisory    |                      |
| Committee meeting;    | Committee meeting;    |                      |
| and~~                 | and~~                 |                      |
|                       |                       |                      |
| ~~(3) Provide the     | ~~(3) Provide the     |                      |
| other party with a    | other party with a    |                      |
| copy of the appeal at | copy of the appeal at |                      |
| the same time it      | the same time it      |                      |
| submits the appeal to | submits the appeal to |                      |
| the Secretary.~~      | the Secretary.~~      |                      |
|                       |                       |                      |
| ~~(b) The             | ~~(b) The             |                      |
| non-appealing party   | non-appealing party   |                      |
| must file a written   | must file a written   |                      |
| response to the       | response to the       |                      |
| appeal. If that party | appeal. If that party |                      |
| wishes to do so, it   | wishes to do so, it   |                      |
| must --~~             | must --~~             |                      |
|                       |                       |                      |
| ~~(1) Submit its      | ~~(1) Submit its      |                      |
| response to the       | response to the       |                      |
| Secretary no later    | Secretary no later    |                      |
| than 30 days after    | than 30 days after    |                      |
| receiving its copy of | receiving its copy of |                      |
| the appeal; and~~     | the appeal; and~~     |                      |
|                       |                       |                      |
| ~~(2) Provide the     | ~~(2) Provide the     |                      |
| appealing party with  | appealing party with  |                      |
| a copy of its         | a copy of its         |                      |
| response at the same  | response at the same  |                      |
| time it submits its   | time it submits its   |                      |
| response to the       | response to the       |                      |
| Secretary.~~          | Secretary.~~          |                      |
|                       |                       |                      |
| ~~(c) Neither the     | ~~(c) Neither the     |                      |
| agency nor the senior | agency nor the senior |                      |
| Department official   | Department official   |                      |
| may include any new   | may include any new   |                      |
| evidence in its       | evidence in its       |                      |
| submission; i.e.,     | submission; i.e.,     |                      |
| evidence it did not   | evidence it did not   |                      |
| previously submit to  | previously submit to  |                      |
| the Advisory          | the Advisory          |                      |
| Committee.~~          | Committee.~~          |                      |
+-----------------------+-----------------------+----------------------+
| [§602.34 What does    | [§602.34 What does    |                      |
| the ~~Secretary~~     | the ~~Secretary~~     |                      |
| **senior Department   | **senior Department   |                      |
| official** consider   | official** consider   |                      |
| when making a         | when making a         |                      |
| recognition           | recognition           |                      |
| d                     | d                     |                      |
| ecision?]{.underline} | ecision?]{.underline} |                      |
|                       |                       |                      |
| The ~~Secretary~~     | The ~~Secretary~~     |                      |
| **senior Department   | **senior Department   |                      |
| official** makes a    | official** makes a    |                      |
| decision regarding    | decision regarding    |                      |
| recognition of an     | recognition of an     |                      |
| agency based on the   | agency based on the   |                      |
| entire record of the  | entire record of the  |                      |
| agency's application, | agency's application, |                      |
| including the         | including the         |                      |
| following:            | following:            |                      |
|                       |                       |                      |
| \(a\) The Advisory    | \(a\) The Advisory    |                      |
| Committee's           | Committee's           |                      |
| recommendation.       | recommendation.       |                      |
|                       |                       |                      |
| ~~(b) The senior      | \(b\) The senior      |                      |
| Department official's | Department official's |                      |
| recommendation, if    | recommendation, if    |                      |
| any.~~                | any.                  |                      |
|                       |                       |                      |
| (~~c~~**b**) The      | [~~(c**b**) The       |                      |
| agency's application  | agency's application  |                      |
| and supporting        | and supporting        |                      |
| documentation.        | doc                   |                      |
|                       | umentation.~~]{.mark} |                      |
| (~~d~~**c**) The      |                       |                      |
| Department staff      | []{.mark}             |                      |
| analysis of the       |                       |                      |
| agency.               | [~~(d**c**) The       |                      |
|                       | Department staff      |                      |
| (~~e~~**d**) All      | analysis of the       |                      |
| written third-party   | agency.~~]{.mark}     |                      |
| comments forwarded by |                       |                      |
| Department staff to   | []{.mark}             |                      |
| the Advisory          |                       |                      |
| Committee for         | [~~(e**d**) All       |                      |
| consideration at the  | written third-party   |                      |
| meeting.              | comments forwarded by |                      |
|                       | Department staff to   |                      |
| (~~f~~**e**) Any      | the Advisory          |                      |
| agency response to    | Committee for         |                      |
| the Department staff  | consideration at the  |                      |
| analysis and          | meeting.~~]{.mark}    |                      |
| third-party comments. |                       |                      |
|                       | []{.mark}             |                      |
| (~~g~~**f**) Any      |                       |                      |
| addendum to the       | [~~(f**e**) Any       |                      |
| Department staff      | agency response to    |                      |
| analysis.             | the Department staff  |                      |
|                       | analysis and          |                      |
| (~~h~~**g**) All oral | third-party           |                      |
| presentations at the  | comments.~~]{.mark}   |                      |
| Advisory Committee    |                       |                      |
| meetings.             | []{.mark}             |                      |
|                       |                       |                      |
| ~~(i) Any materials   | [~~(g**f**) Any       |                      |
| submitted by the      | addendum to the       |                      |
| parties, within the   | Department staff      |                      |
| established           | analysis.~~]{.mark}   |                      |
| timeframes, in an     |                       |                      |
| appeal taken in       | []{.mark}             |                      |
| accordance with       |                       |                      |
| §602.33.~~            | [~~(h**g**) All oral  |                      |
|                       | presentations at the  |                      |
|                       | Advisory Committee    |                      |
|                       | meetings.~~]{.mark}   |                      |
|                       |                       |                      |
|                       | **[(b) The Department |                      |
|                       | staff analysis of the |                      |
|                       | agency.]{.mark}**     |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(c) Any addendum   |                      |
|                       | to the Department     |                      |
|                       | staff                 |                      |
|                       | analysis.]{.mark}**   |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(d) Any agency     |                      |
|                       | response to the       |                      |
|                       | Department staff      |                      |
|                       | analysis and          |                      |
|                       | third-party           |                      |
|                       | comments.]{.mark}**   |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(e) The agency's   |                      |
|                       | application submitted |                      |
|                       | under 34 C.F.R.       |                      |
|                       | §602.31, or its       |                      |
|                       | report submitted      |                      |
|                       | under 34 C.F.R.       |                      |
|                       | §602.32, and          |                      |
|                       | supporting            |                      |
|                       | doc                   |                      |
|                       | umentation.]{.mark}** |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(f) All written    |                      |
|                       | third-party comments  |                      |
|                       | forwarded by          |                      |
|                       | Department staff to   |                      |
|                       | the Advisory          |                      |
|                       | Committee for         |                      |
|                       | consideration ~~at    |                      |
|                       | the~~ made during the |                      |
|                       | Advisory Committee    |                      |
|                       | ~~meeting~~           |                      |
|                       | hearing.]{.mark}**    |                      |
|                       |                       |                      |
|                       | []{.mark}             |                      |
|                       |                       |                      |
|                       | **[(g) All oral       |                      |
|                       | presentations ~~at~~  |                      |
|                       | made during the       |                      |
|                       | Advisory Committee    |                      |
|                       | ~~meeting~~           |                      |
|                       | hearing.]{.mark}**    |                      |
+-----------------------+-----------------------+----------------------+
| [§602.35 What         | [§602.35 What         |                      |
| information does the  | information does the  |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official's**          | official's**          |                      |
| recognition decision  | recognition decision  |                      |
| include?]{.underline} | include?]{.underline} |                      |
|                       |                       |                      |
| \(a\) The             | \(a\) The             |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** notifies   | official** notifies   |                      |
| the agency in writing | the agency in writing |                      |
| of the                | of the                |                      |
| ~~Secretary's~~       | ~~Secretary's~~       |                      |
| **senior Department   | **senior Department   |                      |
| official's** decision | official's** decision |                      |
| regarding the         | regarding the         |                      |
| agency's              | agency's              |                      |
| ~~application for~~   | ~~application for~~   |                      |
| recognition.          | recognition.          |                      |
|                       |                       |                      |
| \(b\) The             | \(b\) The             |                      |
| **decision**          | **decision**          |                      |
| ~~Secretary~~ **the   | ~~Secretary~~ **the   |                      |
| senior Department     | senior Department     |                      |
| official may make     | official may make     |                      |
| includes, but is not  | includes, but is not  |                      |
| limited to,           | limited to,           |                      |
| approving, denying,   | approving, denying,   |                      |
| limiting, suspending, | limiting, suspending, |                      |
| or terminating        | or terminating        |                      |
| recognition,**        | recognition,**        |                      |
| ~~either approves or  | ~~either approves or  |                      |
| denies recognition~~  | denies recognition~~  |                      |
| or ~~defers~~         | or ~~defers~~         |                      |
| **deferring** a       | **deferring** a       |                      |
| decision on the       | decision on the       |                      |
| agency's              | agency's              |                      |
| ~~application for~~   | ~~application for~~   |                      |
| recognition.          | recognition.          |                      |
|                       |                       |                      |
| (1)(i) The            | (1)(i) The            |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** approves   | official** approves   |                      |
| recognition if the    | recognition if the    |                      |
| agency complies with  | agency complies with  |                      |
| the criteria for      | the criteria for      |                      |
| recognition listed in | recognition listed in |                      |
| Subpart B of this     | Subpart B of this     |                      |
| part and if the       | part and if the       |                      |
| agency is effective   | agency is effective   |                      |
| in its performance    | in its performance    |                      |
| with respect to those | with respect to those |                      |
| criteria.             | criteria.             |                      |
|                       |                       |                      |
| \(ii\) If the         | \(ii\) If the         |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** approves   | official** approves   |                      |
| recognition, the      | recognition, the      |                      |
| ~~Secretary's~~       | ~~Secretary's~~       |                      |
| recognition decision  | recognition decision  |                      |
| defines the scope of  | defines the scope of  |                      |
| recognition and the   | recognition and the   |                      |
| recognition period.   | recognition period.   |                      |
|                       |                       |                      |
| \(iii\) If the scope  | \(iii\) If the scope  |                      |
| or period of          | or period of          |                      |
| recognition is less   | recognition is less   |                      |
| than that requested   | than that requested   |                      |
| by the agency, the    | by the agency, the    |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** explains   | official** explains   |                      |
| the reasons for       | the reasons for       |                      |
| approving a lesser    | approving a lesser    |                      |
| scope or recognition  | scope or recognition  |                      |
| period.               | period.               |                      |
|                       |                       |                      |
| (2)(i) If the agency  | (2)(i) If the agency  |                      |
| fails to comply with  | fails to comply with  |                      |
| the criteria for      | the criteria for      |                      |
| recognition in        | recognition in        |                      |
| subpart B of this     | subpart B of this     |                      |
| part, or if the       | part, or if the       |                      |
| agency is not         | agency is not         |                      |
| effective in its      | effective in its      |                      |
| performance with      | performance with      |                      |
| respect to those      | respect to those      |                      |
| criteria, the         | criteria, the         |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** denies**,  | official** denies**,  |                      |
| limits, suspends, or  | limits, suspends, or  |                      |
| terminates**          | terminates**          |                      |
| recognition, unless   | recognition, unless   |                      |
| the ~~Secretary~~     | the ~~Secretary~~     |                      |
| **senior Department   | **senior Department   |                      |
| official** concludes  | official** concludes  |                      |
| that a deferral under | that a deferral under |                      |
| paragraph (b)(3) of   | paragraph (b)(3) of   |                      |
| this section is       | this section is       |                      |
| warranted.            | warranted.            |                      |
|                       |                       |                      |
| \(ii\) If the         | \(ii\) If the         |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** denies,    | official** denies,    |                      |
| **limits, suspends,   | **limits, suspends,   |                      |
| or terminates**       | or terminates**       |                      |
| recognition, the      | recognition, the      |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** specifies  | official** specifies  |                      |
| the reasons for this  | the reasons for this  |                      |
| decision, including   | decision, including   |                      |
| all criteria the      | all criteria the      |                      |
| agency fails to meet  | agency fails to meet  |                      |
| and all areas in      | and all areas in      |                      |
| which the agency      | which the agency      |                      |
| fails to perform      | fails to perform      |                      |
| effectively **with    | effectively **with    |                      |
| respect to the        | respect to the        |                      |
| criteria**.           | criteria**.           |                      |
|                       |                       |                      |
| (3)(i) The            | (3)(i) The            |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** may defer  | official** may defer  |                      |
| a decision on         | a decision on         |                      |
| recognition if the    | recognition if the    |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** concludes  | official** concludes  |                      |
| that the agency's     | that the agency's     |                      |
| deficiencies do not   | deficiencies do not   |                      |
| warrant immediate     | warrant immediate     |                      |
| ~~loss~~ **denial,    | ~~loss~~ **denial,    |                      |
| limitation,           | limitation,           |                      |
| suspension, or        | suspension, or        |                      |
| termination** of      | termination** of      |                      |
| recognition and if    | recognition and if    |                      |
| the ~~Secretary~~     | the ~~Secretary~~     |                      |
| **senior Department   | **senior Department   |                      |
| official** concludes  | official** concludes  |                      |
| that the agency will  | that the agency will  |                      |
| demonstrate or        | demonstrate or        |                      |
| achieve compliance    | achieve compliance    |                      |
| with the criteria for | with the criteria for |                      |
| recognition and       | recognition and       |                      |
| effective performance | effective performance |                      |
| with respect to those | with respect to those |                      |
| criteria before the   | criteria before the   |                      |
| expiration of the     | expiration of the     |                      |
| deferral period.      | deferral period.      |                      |
|                       |                       |                      |
| \(ii\) In the         | \(ii\) In the         |                      |
| deferral decision,    | deferral decision,    |                      |
| the ~~Secretary~~     | the ~~Secretary~~     |                      |
| **senior Department   | **senior Department   |                      |
| official** states the | official** states the |                      |
| bases for the         | bases for the         |                      |
| ~~Secretary's~~       | ~~Secretary's~~       |                      |
| **senior Department   | **senior Department   |                      |
| official's**          | official's**          |                      |
| conclusions,          | conclusions,          |                      |
| specifies any         | specifies any         |                      |
| criteria for          | criteria for          |                      |
| recognition the       | recognition the       |                      |
| agency fails to meet, | agency fails to meet, |                      |
| and identifies any    | and identifies any    |                      |
| areas in which the    | areas in which the    |                      |
| agency fails to       | agency fails to       |                      |
| perform effectively   | perform effectively   |                      |
| with respect to the   | with respect to the   |                      |
| criteria.             | criteria.             |                      |
|                       |                       |                      |
| \(iii\) The           | \(iii\) The           |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** also       | official** also       |                      |
| establishes a         | establishes a         |                      |
| deferral period,      | deferral period,      |                      |
| which begins on the   | which begins on the   |                      |
| date of the           | date of the           |                      |
| ~~Secretary's~~       | ~~Secretary's~~       |                      |
| **senior Department   | **senior Department   |                      |
| official's            | official's            |                      |
| decision**.           | decision**.           |                      |
|                       |                       |                      |
| \(iv\) The deferral   | \(iv\) The deferral   |                      |
| period may not exceed | period may not exceed |                      |
| 12 months, either as  | 12 months, either as  |                      |
| a single deferral     | a single deferral     |                      |
| period or in          | period or in          |                      |
| combination with any  | combination with any  |                      |
| expiring deferral     | expiring deferral     |                      |
| period in which       | period in which       |                      |
| similar deficiencies  | similar deficiencies  |                      |
| in compliance or      | in compliance or      |                      |
| performance were      | performance were      |                      |
| cited by the          | cited by the          |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official**, except    | official**, except    |                      |
| that the              | that the              |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** may grant  | official** may grant  |                      |
| an extension of an    | an extension of an    |                      |
| expiring deferral     | expiring deferral     |                      |
| period at the request | period at the request |                      |
| of the agency for     | of the agency for     |                      |
| good cause shown.     | good cause shown.     |                      |
|                       |                       |                      |
| \(c\) ~~The~~ **No**  | \(c\) ~~The~~ **No**  |                      |
| recognition period    | recognition period    |                      |
| may ~~not~~ exceed    | may ~~not~~ exceed    |                      |
| five years. **Prior   | five years. **Prior   |                      |
| to the expiration of  | to the expiration of  |                      |
| a period of           | a period of           |                      |
| recognition, an       | recognition, an       |                      |
| agency desiring       | agency desiring       |                      |
| renewal must apply    | renewal must apply    |                      |
| under 34 C.F.R.       | under 34 C.F.R.       |                      |
| §602.31.**            | §602.31.**            |                      |
|                       |                       |                      |
| \(d\) If the          | \(d\) If the          |                      |
| ~~Secretary~~         | ~~Secretary~~         |                      |
| **senior Department   | **senior Department   |                      |
| official** does not   | official** does not   |                      |
| reach a final         | reach a final         |                      |
| decision to approve,  | decision to approve,  |                      |
| ~~or~~ **deny, limit, | ~~or~~ **deny, limit, |                      |
| suspend, or           | suspend, or           |                      |
| terminate** an        | terminate** an        |                      |
| agency's              | agency's              |                      |
| ~~application for     | ~~application for     |                      |
| continued~~           | continued~~           |                      |
| recognition before    | recognition before    |                      |
| the expiration of its | the expiration of its |                      |
| recognition period,   | recognition period,   |                      |
| the ~~Secretary~~     | the ~~Secretary~~     |                      |
| **senior Department   | **senior Department   |                      |
| official**            | official**            |                      |
| automatically extends | automatically extends |                      |
| the recognition       | the recognition       |                      |
| period until the      | period until the      |                      |
| final decision is     | final decision is     |                      |
| reached.              | reached.              |                      |
|                       |                       |                      |
| **(e) Unless appealed | **(e) Unless appealed |                      |
| in accordance with 34 | in accordance with 34 |                      |
| C.F.R. §602.36, the   | C.F.R. §602.36, the   |                      |
| senior Department     | senior Department     |                      |
| official's decision   | official's decision   |                      |
| is the final decision | is the final decision |                      |
| of the Secretary.**   | of the Secretary.**   |                      |
+-----------------------+-----------------------+----------------------+
| **§602.36 How may an  | **§602.36 How may an  |                      |
| agency appeal the     | agency appeal the     |                      |
| senior Department     | senior Department     |                      |
| official's            | official's            |                      |
| decision?**           | decision?**           |                      |
|                       |                       |                      |
| **(a) The agency may  | **(a) The agency may  |                      |
| appeal the senior     | appeal the senior     |                      |
| Department official's | Department official's |                      |
| decision to the       | decision to the       |                      |
| Secretary. If an      | Secretary. If an      |                      |
| agency wishes to      | agency wishes to      |                      |
| appeal, the agency    | appeal, the agency    |                      |
| must\--**             | must\--**             |                      |
|                       |                       |                      |
| **(1) Notify the      | **(1) Notify the      |                      |
| Secretary and the     | Secretary and the     |                      |
| senior Department     | senior Department     |                      |
| official in writing   | official in writing   |                      |
| of its intent to      | of its intent to      |                      |
| appeal the decision   | appeal the decision   |                      |
| no later than 10 days | no later than 10 days |                      |
| after receipt of the  | after receipt of the  |                      |
| decision;**           | decision;**           |                      |
|                       |                       |                      |
| **(2) Submit its      | **(2) Submit its      |                      |
| appeal to the         | appeal to the         |                      |
| Secretary in writing  | Secretary in writing  |                      |
| no later than 30 days | no later than 30 days |                      |
| after receipt of the  | after receipt of the  |                      |
| decision; and**       | decision; and**       |                      |
|                       |                       |                      |
| **(3) Provide the     | **(3) Provide the     |                      |
| senior Department     | senior Department     |                      |
| official with a copy  | official with a copy  |                      |
| of the appeal at the  | of the appeal at the  |                      |
| same time it submits  | same time it submits  |                      |
| the appeal to the     | the appeal to the     |                      |
| Secretary.**          | Secretary.**          |                      |
|                       |                       |                      |
| **(b) The senior      | **(b) The senior      |                      |
| Department official   | Department official   |                      |
| may file a written    | may file a written    |                      |
| response to the       | response to the       |                      |
| appeal. To do so, the | appeal. To do so, the |                      |
| senior Department     | senior Department     |                      |
| official must---**    | official must---**    |                      |
|                       |                       |                      |
| **(1) Submit a        | **(1) Submit a        |                      |
| response to the       | response to the       |                      |
| Secretary no later    | Secretary no later    |                      |
| than 30 days after    | than 30 days after    |                      |
| receipt of a copy of  | receipt of a copy of  |                      |
| the appeal; and**     | the appeal; and**     |                      |
|                       |                       |                      |
| **(2) Provide the     | **(2) Provide the     |                      |
| agency with a copy of | agency with a copy of |                      |
| the senior Department | the senior Department |                      |
| official's response   | official's response   |                      |
| at the same time it   | at the same time it   |                      |
| is submitted to the   | is submitted to the   |                      |
| Secretary.**          | Secretary.**          |                      |
|                       |                       |                      |
| **(c) Neither the     | **(c) Neither the     |                      |
| agency nor the senior | agency nor the senior |                      |
| Department official   | Department official   |                      |
| may include any new   | may include any new   |                      |
| evidence in its       | evidence in its       |                      |
| submission, i.e.,     | submission, i.e.,     |                      |
| evidence it did not   | evidence it did not   |                      |
| previously submit to  | previously submit to  |                      |
| the Advisory          | the Advisory          |                      |
| Committee.**          | Committee.**          |                      |
|                       |                       |                      |
| **(d) On appeal, the  | **(d) On appeal, the  |                      |
| Secretary makes a     | Secretary makes a     |                      |
| recognition decision  | recognition decision  |                      |
| in accordance with 34 | in accordance with 34 |                      |
| C.F.R. §602.34,       | C.F.R. §602.34,       |                      |
| rendering a final     | rendering a final     |                      |
| decision after taking | decision after taking |                      |
| into account the      | into account the      |                      |
| senior Department     | senior Department     |                      |
| official's decision   | official's decision   |                      |
| and the parties'      | and the parties'      |                      |
| written submissions   | written submissions   |                      |
| on appeal, as well as | on appeal, as well as |                      |
| the entire record     | the entire record     |                      |
| before the Advisory   | before the Advisory   |                      |
| Committee and the     | Committee and the     |                      |
| Advisory Committee's  | Advisory Committee's  |                      |
| opinion. The          | opinion. The          |                      |
| Secretary notifies    | Secretary notifies    |                      |
| the agency in writing | the agency in writing |                      |
| of the Secretary's    | of the Secretary's    |                      |
| decision regarding    | decision regarding    |                      |
| the agency's          | the agency's          |                      |
| recognition.**        | recognition.**        |                      |
+-----------------------+-----------------------+----------------------+
| §602.3~~6~~**7** May  | §602.3~~6~~**7** May  |                      |
| an agency appeal the  | an agency appeal the  |                      |
| Secretary's final     | Secretary's final     |                      |
| ~~recognition~~       | ~~recognition~~       |                      |
| decision **to deny,   | decision **to deny,   |                      |
| limit, suspend, or    | limit, suspend, or    |                      |
| terminate its         | terminate its         |                      |
| recognition?**        | recognition?**        |                      |
|                       |                       |                      |
| An agency may appeal  | An agency may appeal  |                      |
| the Secretary's       | the Secretary's       |                      |
| decision under this   | decision under this   |                      |
| part in the Federal   | part in the Federal   |                      |
| courts as a final     | courts as a final     |                      |
| decision in           | decision in           |                      |
| accordance with       | accordance with       |                      |
| applicable Federal    | applicable Federal    |                      |
| law.                  | law.                  |                      |
+-----------------------+-----------------------+----------------------+
| ~~Subpart D --        | ~~Subpart D --        |                      |
| Limitation,           | Limitation,           |                      |
| Suspension, or        | Suspension, or        |                      |
| Termination of        | Termination of        |                      |
| Recognition~~         | Recognition~~         |                      |
|                       |                       |                      |
| ~~Limitation,         | ~~Limitation,         |                      |
| Suspension, and       | Suspension, and       |                      |
| Termination           | Termination           |                      |
| Procedures~~          | Procedures~~          |                      |
|                       |                       |                      |
| ~~[§602.40 How may    | ~~[§602.40 How may    |                      |
| the Secretary limit,  | the Secretary limit,  |                      |
| suspend, or terminate | suspend, or terminate |                      |
| an agency's           | an agency's           |                      |
| recogn                | recogn                |                      |
| ition?]{.underline}~~ | ition?]{.underline}~~ |                      |
|                       |                       |                      |
| ~~(a) If the          | ~~(a) If the          |                      |
| Secretary determines, | Secretary determines, |                      |
| after notice and an   | after notice and an   |                      |
| opportunity for a     | opportunity for a     |                      |
| hearing, that a       | hearing, that a       |                      |
| recognized agency     | recognized agency     |                      |
| does not comply with  | does not comply with  |                      |
| the criteria for      | the criteria for      |                      |
| recognition in        | recognition in        |                      |
| subpart B of this     | subpart B of this     |                      |
| part, or that the     | part, or that the     |                      |
| agency is not         | agency is not         |                      |
| effective in its      | effective in its      |                      |
| performance with      | performance with      |                      |
| respect to those      | respect to those      |                      |
| criteria, the         | criteria, the         |                      |
| Secretary\--~~        | Secretary\--~~        |                      |
|                       |                       |                      |
| ~~(1) Limits,         | ~~(1) Limits,         |                      |
| suspends, or          | suspends, or          |                      |
| terminates the        | terminates the        |                      |
| agency's recognition; | agency's recognition; |                      |
| or~~                  | or~~                  |                      |
|                       |                       |                      |
| ~~(2) Requires the    | ~~(2) Requires the    |                      |
| agency to take        | agency to take        |                      |
| appropriate action to | appropriate action to |                      |
| bring itself into     | bring itself into     |                      |
| compliance with the   | compliance with the   |                      |
| criteria and achieve  | criteria and achieve  |                      |
| effectiveness within  | effectiveness within  |                      |
| a timeframe that may  | a timeframe that may  |                      |
| not exceed 12         | not exceed 12         |                      |
| months.~~             | months.~~             |                      |
|                       |                       |                      |
| ~~(b) If, at the      | ~~(b) If, at the      |                      |
| conclusion of the     | conclusion of the     |                      |
| timeframe specified   | timeframe specified   |                      |
| in paragraph (a)(2)   | in paragraph (a)(2)   |                      |
| of this section, the  | of this section, the  |                      |
| Secretary determines, | Secretary determines, |                      |
| after notice and an   | after notice and an   |                      |
| opportunity for a     | opportunity for a     |                      |
| hearing, that the     | hearing, that the     |                      |
| agency has failed to  | agency has failed to  |                      |
| bring itself into     | bring itself into     |                      |
| compliance or has     | compliance or has     |                      |
| failed to achieve     | failed to achieve     |                      |
| effectiveness, the    | effectiveness, the    |                      |
| Secretary limits,     | Secretary limits,     |                      |
| suspends, or          | suspends, or          |                      |
| terminates            | terminates            |                      |
| recognition, unless   | recognition, unless   |                      |
| the Secretary extends | the Secretary extends |                      |
| the timeframe, on     | the timeframe, on     |                      |
| request by the agency | request by the agency |                      |
| for good cause        | for good cause        |                      |
| shown.~~              | shown.~~              |                      |
+-----------------------+-----------------------+----------------------+
| ~~[§602.41 What are   | ~~[§602.41 What are   |                      |
| the notice            | the notice            |                      |
| proce                 | proce                 |                      |
| dures?]{.underline}~~ | dures?]{.underline}~~ |                      |
|                       |                       |                      |
| ~~(a) Department      | ~~(a) Department      |                      |
| staff initiates an    | staff initiates an    |                      |
| action to limit,      | action to limit,      |                      |
| suspend, or terminate | suspend, or terminate |                      |
| an agency's           | an agency's           |                      |
| recognition by        | recognition by        |                      |
| notifying the agency  | notifying the agency  |                      |
| in writing of the     | in writing of the     |                      |
| Secretary's intent to | Secretary's intent to |                      |
| limit, suspend, or    | limit, suspend, or    |                      |
| terminate             | terminate             |                      |
| recognition. The      | recognition. The      |                      |
| notice \--~~          | notice \--~~          |                      |
|                       |                       |                      |
| ~~(1) Describes the   | ~~(1) Describes the   |                      |
| specific action the   | specific action the   |                      |
| Secretary seeks to    | Secretary seeks to    |                      |
| take against the      | take against the      |                      |
| agency and the        | agency and the        |                      |
| reasons for that      | reasons for that      |                      |
| action, including the | action, including the |                      |
| criteria with which   | criteria with which   |                      |
| the agency has failed | the agency has failed |                      |
| to comply;~~          | to comply;~~          |                      |
|                       |                       |                      |
| ~~(2) Specifies the   | ~~(2) Specifies the   |                      |
| effective date of the | effective date of the |                      |
| action; and~~         | action; and~~         |                      |
|                       |                       |                      |
| ~~(3) Informs the     | ~~(3) Informs the     |                      |
| agency of its right   | agency of its right   |                      |
| to respond to the     | to respond to the     |                      |
| notice and request a  | notice and request a  |                      |
| hearing.~~            | hearing.~~            |                      |
|                       |                       |                      |
| ~~(b) Department      | ~~(b) Department      |                      |
| staff may send the    | staff may send the    |                      |
| notice described in   | notice described in   |                      |
| paragraph (a) of this | paragraph (a) of this |                      |
| section at any time   | section at any time   |                      |
| the staff concludes   | the staff concludes   |                      |
| that the agency fails | that the agency fails |                      |
| to comply with the    | to comply with the    |                      |
| criteria for          | criteria for          |                      |
| recognition in        | recognition in        |                      |
| subpart B of this     | subpart B of this     |                      |
| part or is not        | part or is not        |                      |
| effective in its      | effective in its      |                      |
| performance with      | performance with      |                      |
| respect to those      | respect to those      |                      |
| criteria.~~           | criteria.~~           |                      |
+-----------------------+-----------------------+----------------------+
| ~~[§602.42 What are   | ~~[§602.42 What are   |                      |
| the response and      | the response and      |                      |
| hearing               | hearing               |                      |
| proce                 | proce                 |                      |
| dures?]{.underline}~~ | dures?]{.underline}~~ |                      |
|                       |                       |                      |
| ~~(a) If the agency   | ~~(a) If the agency   |                      |
| wishes either to      | wishes either to      |                      |
| respond to the notice | respond to the notice |                      |
| or request a hearing, | or request a hearing, |                      |
| or both, it must do   | or both, it must do   |                      |
| so in writing no      | so in writing no      |                      |
| later than 30 days    | later than 30 days    |                      |
| after it received the | after it received the |                      |
| notice of the         | notice of the         |                      |
| Secretary's intent to | Secretary's intent to |                      |
| limit, suspend, or    | limit, suspend, or    |                      |
| terminate             | terminate             |                      |
| recognition.~~        | recognition.~~        |                      |
|                       |                       |                      |
| ~~(1) The agency's    | ~~(1) The agency's    |                      |
| submission must       | submission must       |                      |
| identify the issues   | identify the issues   |                      |
| and facts in dispute  | and facts in dispute  |                      |
| and the agency's      | and the agency's      |                      |
| position on them.~~   | position on them.~~   |                      |
|                       |                       |                      |
| ~~(2) If neither a    | ~~(2) If neither a    |                      |
| response nor a        | response nor a        |                      |
| request for a hearing | request for a hearing |                      |
| is filed by the       | is filed by the       |                      |
| deadline, the notice  | deadline, the notice  |                      |
| of intent becomes a   | of intent becomes a   |                      |
| final decision by the | final decision by the |                      |
| Secretary.~~          | Secretary.~~          |                      |
|                       |                       |                      |
| ~~(b)(1) After        | ~~(b)(1) After        |                      |
| receiving the         | receiving the         |                      |
| agency's response and | agency's response and |                      |
| hearing request, if   | hearing request, if   |                      |
| any, the Secretary    | any, the Secretary    |                      |
| chooses a             | chooses a             |                      |
| subcommittee composed | subcommittee composed |                      |
| of five members of    | of five members of    |                      |
| the Advisory          | the Advisory          |                      |
| Committee to          | Committee to          |                      |
| adjudicate the matter | adjudicate the matter |                      |
| and notifies the      | and notifies the      |                      |
| agency of the         | agency of the         |                      |
| subcommittee's        | subcommittee's        |                      |
| membership.~~         | membership.~~         |                      |
|                       |                       |                      |
| ~~(2) The agency may  | ~~(2) The agency may  |                      |
| challenge membership  | challenge membership  |                      |
| of the subcommittee   | of the subcommittee   |                      |
| on grounds of         | on grounds of         |                      |
| conflict of interest  | conflict of interest  |                      |
| on the part of one or | on the part of one or |                      |
| more members and, if  | more members and, if  |                      |
| the agency's          | the agency's          |                      |
| challenge is          | challenge is          |                      |
| successful, the       | successful, the       |                      |
| Secretary will        | Secretary will        |                      |
| replace the member or | replace the member or |                      |
| members challenged.~~ | members challenged.~~ |                      |
|                       |                       |                      |
| ~~(c) After the       | ~~(c) After the       |                      |
| subcommittee has been | subcommittee has been |                      |
| selected, Department  | selected, Department  |                      |
| staff sends the       | staff sends the       |                      |
| members of the        | members of the        |                      |
| subcommittee copies   | subcommittee copies   |                      |
| of the notice to      | of the notice to      |                      |
| limit, suspend, or    | limit, suspend, or    |                      |
| terminate             | terminate             |                      |
| recognition, along    | recognition, along    |                      |
| with the agency's     | with the agency's     |                      |
| response, if any.~~   | response, if any.~~   |                      |
|                       |                       |                      |
| ~~(d)(1) If a hearing | ~~(d)(1) If a hearing |                      |
| is requested, it is   | is requested, it is   |                      |
| held in Washington,   | held in Washington,   |                      |
| DC, at a date and     | DC, at a date and     |                      |
| time set by           | time set by           |                      |
| Department staff.~~   | Department staff.~~   |                      |
|                       |                       |                      |
| ~~(2) A transcript is | ~~(2) A transcript is |                      |
| made of the           | made of the           |                      |
| hearing.~~            | hearing.~~            |                      |
|                       |                       |                      |
| ~~(3) Except as       | ~~(3) Except as       |                      |
| provided in paragraph | provided in paragraph |                      |
| (e) of this section,  | (e) of this section,  |                      |
| the subcommittee      | the subcommittee      |                      |
| allows Department     | allows Department     |                      |
| staff, the agency,    | staff, the agency,    |                      |
| and any interested    | and any interested    |                      |
| party to make an oral | party to make an oral |                      |
| or written            | or written            |                      |
| presentation, which   | presentation, which   |                      |
| may include the       | may include the       |                      |
| introduction of       | introduction of       |                      |
| written and oral      | written and oral      |                      |
| evidence.~~           | evidence.~~           |                      |
|                       |                       |                      |
| ~~(e) On agreement by | ~~(e) On agreement by |                      |
| Department staff and  | Department staff and  |                      |
| the agency, the       | the agency, the       |                      |
| subcommittee review   | subcommittee review   |                      |
| may be based solely   | may be based solely   |                      |
| on the written        | on the written        |                      |
| materials.            | materials.            |                      |
| Submitted.~~          | Submitted.~~          |                      |
+-----------------------+-----------------------+----------------------+
| ~~[§602.43 How is a   | ~~[§602.43 How is a   |                      |
| decision on           | decision on           |                      |
| limitation,           | limitation,           |                      |
| suspension, or        | suspension, or        |                      |
| termination of        | termination of        |                      |
| recognition           | recognition           |                      |
| re                    | re                    |                      |
| ached?]{.underline}~~ | ached?]{.underline}~~ |                      |
|                       |                       |                      |
| ~~(a) After           | ~~(a) After           |                      |
| consideration of the  | consideration of the  |                      |
| notice of intent to   | notice of intent to   |                      |
| limit, suspend, or    | limit, suspend, or    |                      |
| terminate             | terminate             |                      |
| recognition, the      | recognition, the      |                      |
| agency's response, if | agency's response, if |                      |
| any, and all          | any, and all          |                      |
| submissions and       | submissions and       |                      |
| presentations made at | presentations made at |                      |
| the hearing, if any,  | the hearing, if any,  |                      |
| the subcommittee      | the subcommittee      |                      |
| issues a written      | issues a written      |                      |
| opinion and sends it  | opinion and sends it  |                      |
| to the Secretary,     | to the Secretary,     |                      |
| with copies to the    | with copies to the    |                      |
| agency and the senior | agency and the senior |                      |
| Department official.  | Department official.  |                      |
| The opinion           | The opinion           |                      |
| includes\--~~         | includes\--~~         |                      |
|                       |                       |                      |
| ~~(1) Findings of     | ~~(1) Findings of     |                      |
| fact, based on        | fact, based on        |                      |
| consideration of all  | consideration of all  |                      |
| the evidence,         | the evidence,         |                      |
| presentations, and    | presentations, and    |                      |
| submissions before    | submissions before    |                      |
| the subcommittee;~~   | the subcommittee;~~   |                      |
|                       |                       |                      |
| ~~(2) A               | ~~(2) A               |                      |
| recommendation as to  | recommendation as to  |                      |
| whether a limitation, | whether a limitation, |                      |
| suspension, or        | suspension, or        |                      |
| termination of the    | termination of the    |                      |
| agency's recognition  | agency's recognition  |                      |
| is warranted; and~~   | is warranted; and~~   |                      |
|                       |                       |                      |
| ~~(3) The reasons     | ~~(3) The reasons     |                      |
| supporting the        | supporting the        |                      |
| subcommittee's        | subcommittee's        |                      |
| recommendation.~~     | recommendation.~~     |                      |
|                       |                       |                      |
| ~~(b) Unless the      | ~~(b) Unless the      |                      |
| subcommittee's        | subcommittee's        |                      |
| recommendation is     | recommendation is     |                      |
| appealed under §      | appealed under §      |                      |
| 602.44, the Secretary | 602.44, the Secretary |                      |
| issues a final        | issues a final        |                      |
| decision on whether   | decision on whether   |                      |
| to limit, suspend, or | to limit, suspend, or |                      |
| terminate the         | terminate the         |                      |
| agency's recognition. | agency's recognition. |                      |
| The Secretary bases   | The Secretary bases   |                      |
| the decision on       | the decision on       |                      |
| consideration of the  | consideration of the  |                      |
| full record before    | full record before    |                      |
| the subcommittee and  | the subcommittee and  |                      |
| the subcommittee's    | the subcommittee's    |                      |
| opinion.~~            | opinion.~~            |                      |
+-----------------------+-----------------------+----------------------+
| ~~[§602.44 How may an | ~~[§602.44 How may an |                      |
| agency appeal the     | agency appeal the     |                      |
| subcommittee's        | subcommittee's        |                      |
| recommend             | recommend             |                      |
| ation?]{.underline}~~ | ation?]{.underline}~~ |                      |
|                       |                       |                      |
| ~~(a) Either the      | ~~(a) Either the      |                      |
| agency or the senior  | agency or the senior  |                      |
| Department official   | Department official   |                      |
| may appeal the        | may appeal the        |                      |
| subcommittee's        | subcommittee's        |                      |
| recommendation. If a  | recommendation. If a  |                      |
| party wishes to       | party wishes to       |                      |
| appeal, that party    | appeal, that party    |                      |
| must \--~~            | must \--~~            |                      |
|                       |                       |                      |
| ~~(1) Notify the      | ~~(1) Notify the      |                      |
| Secretary and the     | Secretary and the     |                      |
| other party in        | other party in        |                      |
| writing of its intent | writing of its intent |                      |
| to appeal the         | to appeal the         |                      |
| recommendation no     | recommendation no     |                      |
| later than 10 days    | later than 10 days    |                      |
| after receipt of the  | after receipt of the  |                      |
| recommendation;~~     | recommendation;~~     |                      |
|                       |                       |                      |
| ~~(2) Submit its      | ~~(2) Submit its      |                      |
| appeal to the         | appeal to the         |                      |
| Secretary in writing  | Secretary in writing  |                      |
| no later than 30 days | no later than 30 days |                      |
| after receipt of the  | after receipt of the  |                      |
| recommendation; and~~ | recommendation; and~~ |                      |
|                       |                       |                      |
| ~~(3) Provide the     | ~~(3) Provide the     |                      |
| other party with a    | other party with a    |                      |
| copy of the appeal at | copy of the appeal at |                      |
| the same time it      | the same time it      |                      |
| submits the appeal to | submits the appeal to |                      |
| the Secretary.~~      | the Secretary.~~      |                      |
|                       |                       |                      |
| ~~(b) The             | ~~(b) The             |                      |
| non-appealing party   | non-appealing party   |                      |
| may file a written    | may file a written    |                      |
| response to the       | response to the       |                      |
| appeal. If that party | appeal. If that party |                      |
| wishes to do so, it   | wishes to do so, it   |                      |
| must --~~             | must --~~             |                      |
|                       |                       |                      |
| ~~(1) Submit its      | ~~(1) Submit its      |                      |
| response to the       | response to the       |                      |
| Secretary no later    | Secretary no later    |                      |
| than 30 days after    | than 30 days after    |                      |
| receiving its copy of | receiving its copy of |                      |
| the appeal; and~~     | the appeal; and~~     |                      |
|                       |                       |                      |
| ~~(2) Provide the     | ~~(2) Provide the     |                      |
| appealing party with  | appealing party with  |                      |
| a copy of its         | a copy of its         |                      |
| response at the same  | response at the same  |                      |
| time it submits its   | time it submits its   |                      |
| response to the       | response to the       |                      |
| Secretary.~~          | Secretary.~~          |                      |
|                       |                       |                      |
| ~~(c) Neither the     | ~~(c) Neither the     |                      |
| agency not the senior | agency not the senior |                      |
| Department official   | Department official   |                      |
| may include any new   | may include any new   |                      |
| evidence in its       | evidence in its       |                      |
| submission, i.e.,     | submission, i.e.,     |                      |
| evidence it did not   | evidence it did not   |                      |
| previously submit to  | previously submit to  |                      |
| the subcommittee.~~   | the subcommittee.~~   |                      |
|                       |                       |                      |
| ~~(d) If the          | ~~(d) If the          |                      |
| subcommittee's        | subcommittee's        |                      |
| recommendation is     | recommendation is     |                      |
| appealed, the         | appealed, the         |                      |
| Secretary renders a   | Secretary renders a   |                      |
| final decision after  | final decision after  |                      |
| taking into account   | taking into account   |                      |
| that recommendation   | that recommendation   |                      |
| and the parties'      | and the parties'      |                      |
| written submissions   | written submissions   |                      |
| on appeal, as well as | on appeal, as well as |                      |
| the entire record     | the entire record     |                      |
| before the            | before the            |                      |
| subcommittee and the  | subcommittee and the  |                      |
| subcommittee's        | subcommittee's        |                      |
| opinion.~~            | opinion.~~            |                      |
+-----------------------+-----------------------+----------------------+
| ~~[§602.45 May an     | ~~[§602.45 May an     |                      |
| agency appeal the     | agency appeal the     |                      |
| Secretary's final     | Secretary's final     |                      |
| decision to limit,    | decision to limit,    |                      |
| suspend, or terminate | suspend, or terminate |                      |
| its                   | its                   |                      |
| recogn                | recogn                |                      |
| ition?]{.underline}~~ | ition?]{.underline}~~ |                      |
|                       |                       |                      |
| ~~An agency may       | ~~An agency may       |                      |
| appeal the            | appeal the            |                      |
| Secretary's final     | Secretary's final     |                      |
| decision limiting,    | decision limiting,    |                      |
| suspending, or        | suspending, or        |                      |
| terminating its       | terminating its       |                      |
| recognition to the    | recognition to the    |                      |
| Federal courts as a   | Federal courts as a   |                      |
| final decision in     | final decision in     |                      |
| accordance with       | accordance with       |                      |
| applicable Federal    | applicable Federal    |                      |
| law.~~                | law.~~                |                      |
+-----------------------+-----------------------+----------------------+

**Issue #14:** Agency materials --- record keeping and confidentiality

**Regulatory Cite:** §602.15(b), §602.27(f), §602.30(c)

**Tentative Agreement:** Reached at session 3 (April 24-26, 2007)

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+----------------------+
| ## L                  | **Draft regulatory    | **Summary of         |
| anguage proposed by t | language as of April  | Change**             |
| he Department of Educ | 26, 2007**            |                      |
| ation during the Marc |                       |                      |
| h 26-28, 2007 session |                       |                      |
+-----------------------+-----------------------+----------------------+
| §602.15               | §602.15               | -   Clarifies that   |
| Administrative and    | Administrative and    |     the Secretary's  |
| fiscal                | fiscal                |     ability to honor |
| responsibilities.     | responsibilities.     |     agency requests  |
|                       |                       |     to withhold      |
| \* \* \* \* \*        | \* \* \* \* \*        |     agency materials |
|                       |                       |     from public      |
| \(b\) The agency      | \(b\) The agency      |     disclosure is    |
| maintains complete    | maintains complete    |     subject to the   |
| and accurate records  | and accurate records  |     Freedom of       |
| of---                 | of---                 |     Information Act, |
|                       |                       |     5 U.S.C. §552;   |
| \(1\) Its last        | \(1\) Its last        |     the Trade        |
| ~~two~~ full          | ~~two~~ full          |     Secrets Act, 18  |
| accreditation or      | accreditation or      |     U.S.C. §1905;    |
| preaccreditation      | preaccreditation      |     the Privacy Act, |
| review~~s~~ of each   | review~~s~~ of each   |     5 U.S.C. §552a,  |
| institution or        | institution or        |     and other        |
| program, including    | program, including    |     applicable law.  |
| on-site evaluation    | on-site evaluation    |                      |
| team reports, the     | team reports, the     |                      |
| institution's or      | institution's or      |                      |
| program's responses   | program's responses   |                      |
| to on-site reports,   | to on-site reports,   |                      |
| periodic review       | periodic review       |                      |
| reports, any reports  | reports, any reports  |                      |
| of special reviews    | of special reviews    |                      |
| conducted by the      | conducted by the      |                      |
| agency between        | agency between        |                      |
| regular reviews,      | regular reviews,      |                      |
| **substantive change  | **substantive change  |                      |
| reviews,** and a copy | reviews,** and a copy |                      |
| of the institution's  | of the institution's  |                      |
| or program's most     | or program's most     |                      |
| recent self-study;    | recent self-study;    |                      |
| and                   | and                   |                      |
|                       |                       |                      |
| \(2\) All decisions   | \(2\) All decisions   |                      |
| made **throughout an  | made **throughout an  |                      |
| institution's or      | institution's or      |                      |
| program's affiliation | program's affiliation |                      |
| with the agency**     | with the agency**     |                      |
| regarding the         | regarding the         |                      |
| accreditation and     | accreditation and     |                      |
| preaccreditation of   | preaccreditation of   |                      |
| ~~any~~ **the**       | ~~any~~ **the**       |                      |
| institution or        | institution or        |                      |
| program **and         | program **and         |                      |
| substantive           | substantive           |                      |
| changes**, including  | changes**, including  |                      |
| all correspondence    | all correspondence    |                      |
| that is significantly | that is significantly |                      |
| related to those      | related to those      |                      |
| decisions.            | decisions.            |                      |
|                       |                       |                      |
| [§602.30 How does an  | [§602.30 How does an  |                      |
| agency apply for      | agency apply for      |                      |
| reco                  | reco                  |                      |
| gnition?]{.underline} | gnition?]{.underline} |                      |
|                       |                       |                      |
| \* \* \* \* \*        | \* \* \* \* \*        |                      |
|                       |                       |                      |
| ~~(c) The Secretary   | ~~(c) The Secretary   |                      |
| does not make         | does not make         |                      |
| available to the      | available to the      |                      |
| public any            | public any            |                      |
| confidential agency   | confidential agency   |                      |
| materials a           | materials a           |                      |
| Department employee   | Department employee   |                      |
| reviews during the    | reviews during the    |                      |
| evaluation of either  | evaluation of either  |                      |
| the agency's          | the agency's          |                      |
| application for       | application for       |                      |
| recognition or the    | recognition or the    |                      |
| agency's compliance   | agency's compliance   |                      |
| with the criteria for | with the criteria for |                      |
| recognition.~~        | recognition.~~        |                      |
|                       |                       |                      |
| ##                    | **[(c) The            |                      |
|                       | Secretary's ability   |                      |
|                       | to honor agency       |                      |
|                       | requests to withhold  |                      |
|                       | agency materials      |                      |
|                       | reviewed under this   |                      |
|                       | Part from public      |                      |
|                       | disclosure is subject |                      |
|                       | to the Freedom of     |                      |
|                       | Information Act, 5    |                      |
|                       | U.S.C. §552; the      |                      |
|                       | Trade Secrets Act, 18 |                      |
|                       | U.S.C. §1905; the     |                      |
|                       | Privacy Act, 5 U.S.C. |                      |
|                       | §552a, and other      |                      |
|                       | applicable            |                      |
|                       | law.]{.mark}**        |                      |
|                       |                       |                      |
|                       | ##                    |                      |
+-----------------------+-----------------------+----------------------+
| §602.27 Other         | §602.27 Other         |                      |
| information an agency | information an agency |                      |
| must provide the      | must provide the      |                      |
| Department.           | Department.           |                      |
|                       |                       |                      |
| The agency must       | The agency must       |                      |
| submit to the         | submit to the         |                      |
| Department---         | Department---         |                      |
|                       |                       |                      |
| \* \* \*              | \* \* \*              |                      |
|                       |                       |                      |
| \(f\) If the          | \(f\) If the          |                      |
| Secretary requests,   | Secretary requests,   |                      |
| information that may  | information that may  |                      |
| bear upon an          | bear upon an          |                      |
| accredited or         | accredited or         |                      |
| preaccredited         | preaccredited         |                      |
| institution's         | institution's         |                      |
| compliance with its   | compliance with its   |                      |
| Title IV, HEA program | Title IV, HEA program |                      |
| responsibilities,     | responsibilities,     |                      |
| including the         | including the         |                      |
| eligibility of the    | eligibility of the    |                      |
| institution or        | institution or        |                      |
| program to            | program to            |                      |
| participate in Title  | participate in Title  |                      |
| IV, HEA programs.     | IV, HEA programs.     |                      |
| ~~The Secretary may   | ~~The Secretary may   |                      |
| ask for this          | ask for this          |                      |
| information to assist | information to assist |                      |
| the Department in     | the Department in     |                      |
| resolving problems    | resolving problems    |                      |
| with the              | with the              |                      |
| institution's         | institution's         |                      |
| participation in the  | participation in the  |                      |
| Title IV, HEA         | Title IV, HEA         |                      |
| programs.~~           | programs.~~           |                      |
+-----------------------+-----------------------+----------------------+

**Issue #15:** Providing information to the public

**Regulatory Cite:** §602.16(a)(1)(vii), §602.23(a)

**Tentative Agreement:**

**Legend:**

-   Proposed deletions to existing regulatory language are indicated by
    ~~strikeouts~~.

-   Proposed additions to existing regulatory language are indicated by
    **bold typeface.**

-   Subsequent changes to proposed revisions presented at the March
    26-28, 2007 session are indicated by [highlighted text]{.mark}.

+-----------------------+-----------------------+-----------------------+
| ## L                  | **Draft regulatory    | **Summary of Change** |
| anguage proposed by t | language as of April  |                       |
| he Department of Educ | 26, 2007**            |                       |
| ation during the Marc |                       |                       |
| h 26-28, 2007 session |                       |                       |
+-----------------------+-----------------------+-----------------------+
| [§602.16              | [§602.16              | -   Clarifies that    |
| Accreditation and     | Accreditation and     |     agencies require  |
| preaccreditation      | preaccreditation      |     programs or       |
| st                    | st                    |     institutions to   |
| andards.]{.underline} | andards.]{.underline} |     publish           |
|                       |                       |     information       |
| \(a\) The agency must | \(a\) The agency must |     related to the    |
| demonstrate that it   | demonstrate that it   |     program's or      |
| has standards for     | has standards for     |     institution's     |
| accreditation, and**, | accreditation, and**, |     effectiveness in  |
| if offered,**         | if offered,**         |     fulfilling        |
| preaccreditation~~,   | preaccreditation~~,   |     program           |
| if offered,~~ that    | if offered,~~ that    |     objectives or     |
| are sufficiently      | are sufficiently      |     institutional     |
| rigorous to ensure    | rigorous to ensure    |     mission.          |
| that the agency is a  | that the agency is a  |                       |
| reliable authority    | reliable authority    |                       |
| regarding the quality | regarding the quality |                       |
| of the education or   | of the education or   |                       |
| training provided by  | training provided by  |                       |
| the institutions or   | the institutions or   |                       |
| programs it           | programs it           |                       |
| accredits. The agency | accredits. The agency |                       |
| meets this            | meets this            |                       |
| requirement if \--    | requirement if \--    |                       |
|                       |                       |                       |
| \(1\) The agency's    | \(1\) The agency's    |                       |
| accreditation         | accreditation         |                       |
| standards effectively | standards effectively |                       |
| address the quality   | address the quality   |                       |
| of the institution or | of the institution or |                       |
| program in the        | program in the        |                       |
| following areas:      | following areas:      |                       |
|                       |                       |                       |
| \* \* \*              | \* \* \*              |                       |
|                       |                       |                       |
| \(vii\) Recruiting    | \(vii\) Recruiting    |                       |
| and admissions        | and admissions        |                       |
| practices,            | practices,            |                       |
| **including those     | **[~~including those  |                       |
| related to transfer   | related to transfer   |                       |
| of credit and         | of credit and         |                       |
| acceptance of         | acceptance of         |                       |
| credentials,**        | cre                   |                       |
| academic calendars,   | dentials,~~]{.mark}** |                       |
| catalogs,             | academic calendars,   |                       |
| publications, grading | catalogs,             |                       |
| and advertising.      | publications, grading |                       |
|                       | and advertising.      |                       |
| \* \* \*              |                       |                       |
|                       | \* \* \*              |                       |
| **(A) The agency must |                       |                       |
| ensure that decisions | **[~~(A) The agency   |                       |
| about transfer of     | must ensure that      |                       |
| credit and acceptance | decisions about       |                       |
| of credentials are    | transfer of credit    |                       |
| not made solely on    | and acceptance of     |                       |
| the source of         | credentials are not   |                       |
| accreditation of a    | made solely on the    |                       |
| sending institution   | source of             |                       |
| or program, as long   | accreditation of a    |                       |
| as the accreditation  | sending institution   |                       |
| in question is from a | or program, as long   |                       |
| recognized            | as the accreditation  |                       |
| accrediting agency    | in question is from a |                       |
| and within that       | recognized            |                       |
| agency's scope, and   | accrediting agency    |                       |
| must also ensure that | and within that       |                       |
| the institutions or   | agency's scope, and   |                       |
| programs it accredits | must also ensure that |                       |
| provide a complete    | the institutions or   |                       |
| description to        | programs it accredits |                       |
| prospective students  | provide a complete    |                       |
| of their policies     | description to        |                       |
| concerning transfer   | prospective students  |                       |
| of credit and         | of their policies     |                       |
| acceptance of         | concerning transfer   |                       |
| credentials.**        | of credit and         |                       |
|                       | acceptance of         |                       |
| **(B) The agency must | cre                   |                       |
| require each program  | dentials.~~]{.mark}** |                       |
| and institution it    |                       |                       |
| accredits to publish  | **(B) The agency must |                       |
| information related   | require each program  |                       |
| to the program's or   | [~~and~~ or]{.mark}   |                       |
| institution's         | institution it        |                       |
| effectiveness in      | accredits to publish  |                       |
| fulfilling program    | information related   |                       |
| objectives and        | to the program's or   |                       |
| institutional         | institution's         |                       |
| mission, especially   | effectiveness in      |                       |
| indicators of the     | fulfilling program    |                       |
| program's or          | objectives [~~and~~   |                       |
| institution's         | or]{.mark}            |                       |
| performance regarding | institutional         |                       |
| student outcomes.**   | mission, especially   |                       |
|                       | indicators of the     |                       |
|                       | program's or          |                       |
|                       | institution's         |                       |
|                       | performance regarding |                       |
|                       | student [~~outcomes~~ |                       |
|                       | achievement,          |                       |
|                       | including data        |                       |
|                       | specified in          |                       |
|                       | §602.16(a             |                       |
|                       | )(1)(i)(B).]{.mark}** |                       |
+-----------------------+-----------------------+-----------------------+
| [§602.23 Operating    | [§602.23 Operating    |                       |
| procedures all        | procedures all        |                       |
| agencies must         | agencies must         |                       |
| have.]{.underline}    | have.]{.underline}    |                       |
|                       |                       |                       |
| \(a\) The agency must | \(a\) The agency must |                       |
| maintain and make     | maintain and make     |                       |
| available to the      | available to the      |                       |
| public, upon request, | public, upon request, |                       |
| written materials     | written materials     |                       |
| describing\--         | describing\--         |                       |
|                       |                       |                       |
| \* \* \*              | \* \* \*              |                       |
|                       |                       |                       |
| \(3\) The standards   | \(3\) The standards   |                       |
| and procedures it     | and procedures it     |                       |
| uses to determine     | uses to determine     |                       |
| whether to grant,     | whether to grant,     |                       |
| reaffirm, reinstate,  | reaffirm, reinstate,  |                       |
| restrict, deny,       | restrict, deny,       |                       |
| revoke, terminate, or | revoke, terminate, or |                       |
| take any other action | take any other action |                       |
| related to each type  | related to each type  |                       |
| of accreditation and  | of accreditation and  |                       |
| preaccreditation that | preaccreditation that |                       |
| the agency grants.    | the agency grants.    |                       |
| **The information     | **[~~The information  |                       |
| must explicitly       | must explicitly       |                       |
| describe the agency's | describe the agency's |                       |
| expectation of        | expectations of       |                       |
| performance in        | performance in        |                       |
| relation to each      | relation to each      |                       |
| standard.**           | standard.~~]{.mark}** |                       |
+-----------------------+-----------------------+-----------------------+