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censing examinations, and job placement rates, 
and other student performance information se-
lected by the institution, particularly that infor-
mation used by the institution to evaluate or 
strengthen its programs;’’; and 
(B) by amending subparagraph (E) to read 
as follows: 
‘‘(E) fiscal, administrative capacity, as ap-
propriate to the specified scale of operations, 
and, for an agency or association where its ap-
proval for such institution determines eligibility 
for student assistance under this title, board 
governance, within the context of the institu-
tion’s mission;’’; 
(4) by striking paragraph (6) and inserting the 
following: 
‘‘(6) such an agency or association shall estab-
lish and apply review procedures throughout the ac-
crediting process, including evaluation and with-
drawal proceedings that comply with due process 
that provides for—
‘‘(A) adequate specification of require-
ments and deficiencies at the institution of 
higher education or program being examined;
290
‘‘(B) an opportunity for a written response 
by any such institution to be included in the 
evaluation and withdrawal proceedings; 
‘‘(C) upon the written request of an insti-
tution, an opportunity for the institution to ap-
peal any adverse action at a hearing prior to 
such action becoming final before an appeals 
panel that—
‘‘(i) shall not include current members 
of the agency or association’s underlying 
decision-making body that made the ad-
verse decision; and 
‘‘(ii) is subject to a conflict of interest 
of policy; and 
‘‘(D) the right to representation by counsel 
for an such institution;’’; and 
(5) by striking paragraph (8) and inserting the 
following: 
‘‘(8) such agency or association shall make 
available to the public and submit to the Secretary 
and the State licensing or authorizing agency, to-
gether with the comments of the affected institution, 
a summary of agency or association actions, involv-
ing—
291
‘‘(A) final denial, withdrawal, suspension, 
or termination of accreditation; and 
‘‘(B) any other final adverse action taken 
with respect to an institution.’’. 
(b) OPERATING PROCEDURES.—Section 496(c) (20 
U.S.C. 1099b(c)) is amended—
(1) by inserting ‘‘(including those regarding dis-
tance education)’’ before the semicolon at the end of 
paragraph (1); 
(2) by striking ‘‘and’’ at the end of paragraph 
(5); 
(3) by striking the period at the end of para-
graph (6) and inserting a semicolon; and 
(4) by inserting after paragraph (6) the fol-
lowing new paragraphs: 
‘‘(7) ensures that its onsite comprehensive re-
views for accreditation or reaccreditation include 
evaluation of the substance of the information re-
quired in subparagraph (L) of section 485(a)(1); 
‘‘(8) confirms as a part of its review for accred-
itation or reaccreditation that the institution has 
transfer policies that are publicly disclosed and spe-
cifically state whether the institution denies a trans-
fer of credit based solely on the accreditation of the 
institution at which the credit was earned;
292
‘‘(9) develops a brief summary, available to the 
public, of final adverse actions in accordance with 
the requirements of subsection (a)(8); 
‘‘(10) monitors the enrollment growth of dis-
tance education to ensure that an institution experi-
encing significant growth has the capacity to serve 
its students effectively; 
‘‘(11) discloses publicly, on the agency’s website 
or through other similar dissemination—
‘‘(A) a list of the individuals who com-
prised the evaluation teams during the prior 
calendar year for each agency or association 
and the title and institutional affiliation of such 
individuals, although such list shall not be re-
quired to identify those individuals who com-
prised the evaluation team used for any specific 
institution; 
‘‘(B) a description of the agency’s or asso-
ciation’s process for selecting, preparing, and 
evaluating such individuals; and 
‘‘(C) any statements related to the accredi-
tation responsibilities of such individuals; and 
‘‘(12) reviews the record of student complaints 
resulting from the student information process de-
scribed in section 485(a)(1)(J).’’.
293
(c) LIMITATION, SUSPENSION, AND TERMINATION OF 
RECOGNITION.—Section 496(l) is amended by adding at 
the end the following new paragraph: 
‘‘(3) The Secretary shall provide an annual report to 
Congress on the status of any agency or association for 
which the Secretary has limited, suspended or terminated 
recognition under this subsection.’’. 
(d) PROGRAM REVIEW AND DATA.—Section 498A(b) 
(20 U.S.C. 1099c–1(b)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(6) provide to the institution adequate oppor-
tunity to review and respond to any program review 
report or audit finding and underlying materials re-
lated thereto before any final program review or 
audit determination is reached; 
‘‘(7) review and take into consideration the in-
stitution’s response in any final program review or 
audit determination, and include in the final deter-
mination—
294
‘‘(A) a written statement addressing the 
institution’s response and stating the basis for 
such final determination; and 
‘‘(B) a copy of the institution’s statement 
in response, appropriately redacted to protect 
confidential information; 
‘‘(8) maintain and preserve at all times the con-
fidentiality of any program review report or audit 
finding until the requirements of paragraphs (6) and 
(7) are met, and until a final program review or 
audit determination has been issued, except to the 
extent required to comply with paragraph (5), pro-
vided, however, that the Secretary shall promptly 
disclose any and all program review reports and 
audit findings to the institution under review; and 
‘‘(9) require that the authority to approve or 
issue any program review report or audit finding, 
preliminary or otherwise, that contains any finding, 
determination, or proposed assessment that exceeds 
or may exceed $500,000 in liabilities shall not be 
delegated to any official beyond the Chief Operating 
Officer of Federal Student Aid.’’.