(1) in subsection (a)(3)(A), by inserting before 
the semicolon at the end the following: ‘‘, and any 
institution described in subsection (b)’’; and 
(2) by striking subsection (b) and inserting: 
‘‘(b) SEPARATE AND INDEPENDENT DEFINED.—For 
the purpose of subsection (a)(3), the term ‘separate and 
independent’ means that— 
‘‘(1) the members of the postsecondary edu-
cation governing body and any other decision-mak-
ing body of the accrediting agency or association are 
not— 
‘‘(A) elected or selected by the board or 
chief executive officer of any related, associated, 
or affiliated trade association or membership 
organization; or 
‘‘(B) individuals (such as executives and 
owners of an institution) who exercise substan-
tial control over an institution— 
‘‘(i) required to provide the Secretary 
with satisfactory evidence of its financial 
responsibility in accordance with para-
graph (3)(A) of section 498(c) because the 
institution fails to meet criteria under 
paragraphs (1) and (2) of such section; 
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‘‘(ii) that the Secretary has placed on 
a reimbursement system of payment pursu-
ant to section 487(c)(1)(B); 
‘‘(iii) against which the Secretary has 
initiated an emergency action in accord-
ance with section 487(c)(1)(G); 
‘‘(iv) against which the Secretary has 
limited, suspended, or terminated the insti-
tution’s participation in any program 
under this title in accordance with section 
487(c)(1)(F); or 
‘‘(v) that has been placed on proba-
tion, show cause, or had its accreditation 
withdrawn; 
‘‘(2) among the membership of the board of the 
accrediting agency or association there shall be 1 
public member for each 3 members of the board, 
with a minimum of 1 such public member, and 
guidelines are established for such members to avoid 
conflicts of interest, including guidelines ensuring 
that such each such public member— 
‘‘(A) is selected to serve on such board in 
the same manner that other board members are 
selected for such service; 
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‘‘(B) has not served on such board as a 
nonpublic member in the preceding 10 years; 
‘‘(C) is not (or has not been in the pre-
ceding 5-year period) a full-time employee of, or 
a member of the governing board, an owner, or 
shareholder of, or consultant to, an institution 
or program that— 
‘‘(i) is accredited or preaccredited by 
the agency or association; or 
‘‘(ii) has applied for accreditation or 
preaccreditation from such agency or asso-
ciation; 
‘‘(D) is not a member of any trade associa-
tion or membership organization related to, af-
filiated with, or associated with the agency or 
association or an institution that is accredited 
by such agency or association; and 
‘‘(E) is not a spouse, parent, child, or sib-
ling of an individual identified in subparagraph 
(C) or (D); 
‘‘(3) dues to the accrediting agency or associa-
tion are paid separately from any dues paid to any 
related, associated, or affiliated trade association or 
membership organization; and 
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‘‘(4) the budget of the accrediting agency or as-
sociation is developed and determined by the accred-
iting agency or association without review or resort 
to consultation with any other entity or organiza-
tion.’’. 
Æ 
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