To amend the Higher Education Act of 1965 to require accrediting agencies and associations to comply with due process throughout the accreditation process, and for other purposes.

SECTION 1. RECOGNITION OF ACCREDITING AGENCIES AND ASSOCIATIONS.

    (a) Due Process.--Paragraph (6) of section 496(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1099b(a)) is amended to read as 
follows:
            ``(6) such agency or association shall apply procedures 
        throughout the accrediting process, including evaluation, 
        interim sanction, and withdrawal or termination of 
        accreditation proceedings, that comply with due process, 
        including the right to--
                    ``(A) adequate specification of the agency's 
                accrediting requirements;
                    ``(B) written notice of deficiencies at the 
                institution of higher education or program being 
                examined and a reasonable time period, expressly set 
                forth in the notice, to correct the deficiencies;
                    ``(C) advance notice of and an opportunity for a 
                hearing by any such institution before the agency's 
                decision making body prior to the agency's final 
                consideration of imposition of an adverse action;
                    ``(D) appeal any adverse action by the agency 
                against any such institution to an independent and 
                impartial arbitration panel appointed jointly by the 
                agency and the institution and conducted at the 
                location of the institution;
                    ``(E) appeal, at a minimum, the adequacy of the 
                evidence supporting the adverse action decision, the 
                adequacy of the agency's compliance with its own 
                policies and procedures, and the extent to which the 
                decision of the agency was tainted by bias or prejudice 
                of any agent or official of the agency;
                    ``(F) representation by counsel for any such 
                institution;
                    ``(G) an arbitration panel decision that may affirm 
                or reverse, but not modify, the decision appealed by 
                the institution; and
                    ``(H) an allocation of the costs of the appeal that 
                requires the agency and institution to each bear its 
                own attorney, witness, and other costs of presentation 
                of its case at the arbitration hearing and shifts the 
                cost of the arbitration panel and any court reporter to 
                the losing party;
        except that the Secretary may issue regulations to further 
        define due process requirements as needed to protect accredited 
        institutions, but may not by regulation reduce due process 
        requirements available to accredited institutions, whether the 
        due process is required under this paragraph or another 
        provision of law or regulation;''.
    (b) Additional Criteria.--Section 496(a) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(9) if an agency or association conducts an assessment of 
        an institution's governing board--
                    ``(A) such assessment shall consistently apply the 
                accreditation standard, to the greatest extent 
                possible, to any State-appointed receiver, special 
                trustee, or similar interim governing authority, until 
                such time as governing authority is returned to the 
                regular governing board; and
                    ``(B) such agency or association shall not 
                terminate accreditation solely on the ground that the 
                institution is under interim management of a State-
                appointed receiver, special trustee, or similar 
                governing authority unless the agency or association 
                determines that there are other deficiencies at the 
                institution that provide grounds for termination, and 
                that, after providing due process required by this 
                section, the interim governing authority has not 
                corrected such deficiencies within a reasonable period 
                of time; and
            ``(10) such agency or association, and any officer or 
        subdivision of such agency or association that makes 
        accreditation recommendations to its decision-making board, 
        shall conduct meetings open to public observation and comment 
        and shall, at least 7 days before the time of any such meeting, 
        post and distribute its meeting agenda electronically and 
        otherwise to the public, and, for purposes of this paragraph--
                    ``(A) the term `meetings' includes all meetings, 
                hearings, appeals, deliberations, and votes on 
                accreditation matters regarding any educational 
                institution or on accrediting standards, policies, or 
                procedures; and
                    ``(B) the Secretary shall issue regulations to 
                implement this paragraph.''.
    (c) Recognition of State Accrediting Agencies.--Section 
496(a)(3)(B) (20 U.S.C. 1099b(a)(3)(B)) is amended by striking ``on or 
before October 1, 1991''.

Summary: Amends the Higher Education Act of 1965 to revise due process standards governing the accreditation process of educational institutions. Requires accrediting agencies and associations to provide educational institutions with: (1) written notice of deficiencies and a reasonable time period to correct such deficiencies. (2) advance notice of any adverse action and an opportunity for a hearing. And (3) a right to appeal an adverse action to an independent and impartial arbitration panel. Requires accrediting agencies and associations to: (1) ensure consistent application of accreditation standards to an educational institution's governing board in receivership. And (2) allow public access to meetings involving accreditation recommendations. Authorizes the Secretary of Education to issue regulations to further define due process requirements for the accreditation process.