instrumentality of State government or other 
entity that participates in such determinations 
and the authority exercised by such agency, in-
strumentality, or entity. 
‘‘(2) QUALITY-EFFICIENCY TASK FORCES.—
‘‘(A) REQUIRED.—Each institution subject 
to paragraph (1) that has a college affordability 
index that is in the highest 5 percent of such 
indexes of all institutions subject to paragraph 
(1) shall establish a quality-efficiency task force 
to review the operations of such institution. 
‘‘(B) MEMBERSHIP.—Such task force shall 
include administrators and business and civic 
leaders and may include faculty, students, 
trustees, parents of students, and alumni of 
such institution. 
‘‘(C) FUNCTIONS.—Such task force shall 
analyze institutional operating costs in compari-
son with such costs at other institutions within 
the class of institutions. Such analysis should 
identify areas where, in comparison with other 
institutions in such class, the institution oper-
ates more expensively to produce a similar re-
sult. Any identified areas should then be tar-
geted for in-depth analysis for cost reduction 
opportunities. 
‘‘(D) REPORT.—The results of the analysis 
by a quality-efficiency task force under this 
paragraph shall be included in the report to the 
Secretary under paragraph (1). 
‘‘(3) CONSEQUENCES
FOR
2-YEAR
CONTINU-
ATION
OF
FAILURE.—If the Secretary determines 
that the institution has failed to reduce the college 
affordability index below 2.0 for such 2 academic 
years, the Secretary shall place the institution on an 
affordability alert status and shall make the infor-
mation regarding the institution’s failure available in 
accordance with subsection (d). 
‘‘(4) INFORMATION TO STATE AGENCIES.—Any 
institution that reports under paragraph (1)(A) that 
an agency or instrumentality of State government or 
other entity participates in the determinations of tui-
tion and fee increases shall, prior to submitting any 
information to the Secretary under this subsection, 
submit such information to, and request the com-
ments and input of, such agency, instrumentality, or 
entity. With respect to any such institution, the Sec-
retary shall provide a copy of any communication by
the Secretary with that institution to such agency, 
instrumentality, or entity. 
‘‘(5) EXEMPTIONS.—
‘‘(A) RELATIVE PRICE EXEMPTION.—The 
Secretary shall, for any 3-year interval for 
which college affordability indexes are computed 
under paragraph (1), determine and publish the 
dollar amount that, for each class of institution 
described in paragraph (6) represents the max-
imum tuition and fees charged for a full-time 
undergraduate student in the least costly quar-
tile of institutions within each such class during 
the last year of such 3-year interval. An institu-
tion that has a college affordability index com-
puted under paragraph (1) that exceeds 2.0 for 
any such 3-year interval, but that, on average 
during such 3-year interval, charges less than 
such maximum tuition and fees shall not be 
subject to the actions required by paragraph 
(3), unless such institution, for a subsequent 3-
year interval, charges more than such maximum 
tuition and fees. 
‘‘(B) DOLLAR INCREASE EXEMPTION.—An 
institution that has a college affordability index 
computed under paragraph (1) that exceeds 2.0
for any 3-year interval, but that exceeds such 
2.0 by a dollar amount that is less than $500, 
shall not be subject to the actions required by 
paragraph (3), unless such institution has a col-
lege affordability index for a subsequent 3-year 
interval that exceeds 2.0 by more than such dol-
lar amount. 
‘‘(6) CLASSES OF INSTITUTIONS.—For purposes 
of this subsection, the classes of institutions shall be 
those sectors used by the Integrated Postsecondary 
Education Data System, based on whether the insti-
tution is public, nonprofit private, or for-profit pri-
vate, and whether the institution has a 4-year, 2-
year, or less than 2-year program of instruction. 
‘‘(7) DATA REJECTION.—Nothing in this sub-
section shall be construed as allowing the Secretary 
to reject the data submitted by an individual institu-
tion of higher education. 
‘‘(g) INFORMATION TO THE PUBLIC.—Upon receipt 
of an institution’s report required under subsection (f), the 
Secretary shall make the information in the report avail-
able to the public in accordance with subsection (d) on 
the COOL website under subsection (b). 
‘‘(h) FINES.—In addition to actions authorized in 
section 487(c), the Secretary may impose a fine in an