Accreditation agency accountability

(a) In general Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b) is amended— (1) in subsection (l)(1)— (A) in subparagraph (A), by striking or after the semicolon; (B) in subparagraph (B)(ii), by striking the period at the end and inserting; or; and (C) by adding at the end the following: (C) impose a fine if the agency or association failed to notify the Secretary when the agency or association had reason to believe an institution of higher education was failing to meet its program responsibilities under this title or was engaged in fraud, fiscal misconduct, or deceptive practices at the institution, or failed to take action under subsection (t)(2) for such an institution.; and (2) in subsection (n)— (A) in paragraph (3)— (i) in the first sentence, by inserting or any institution that the agency or association accredits before the period at the end; and (ii) by inserting after the first sentence the following: The Secretary shall conduct a performance-based review and make a holistic judgment regarding whether the accrediting agency or association is a reliable authority on the quality of postsecondary education, including the quality of the agency’s or association’s processes to accurately assess outcomes and success with respect to student achievement of the institutions the agency or association accredits to deliver a quality education consistent with the missions of the institutions, and the effectiveness, timeliness, and consistency of the accrediting agency or association in addressing the standards in subsection (a).; and (B) by adding at the end the following: (5) (A) Not later than 30 days after a finding by a Federal or State agency or court of law that an institution of higher education has violated a Federal or State law related to fraud, fiscal misconduct, or deceptive practices at the institution of higher education, been the subject of a settlement or lawsuit that has survived a motion to dismiss by a State or Federal entity related to fraud, fiscal misconduct, or deceptive practices, or filed for bankruptcy, the Secretary shall carry out the following: (i) Initiate a review of the accrediting agency or association that accredited the institution to determine if the accrediting agency or association failed to effectively apply the criteria in this section, or is otherwise not in compliance with the requirements of this section, and, if the accrediting agency or association is not in compliance, shall initiate action pursuant to subsection (l) to take any or all of the following actions: (I) Limit, suspend, or terminate recognition of the agency or association. (II) Require the agency or association to take appropriate action. (III) Impose a fine for noncompliance. (ii) Make publicly available the initiation of the review and outcome. (B) The Office of Inspector General of the Department shall review, once every 3 years, the Secretary’s actions under this subsection, along with findings by the Secretary and provide recommendations on appropriate fines or actions (including withdrawing approval or recognition of the accrediting agency or association) against an accrediting agency or association sanctioned under this section to the Secretary and appropriate Department staff. (C) The Office of Inspector General of the Department shall provide a report that is made available to the public and provide a copy to the National Advisory Committee on Institutional Quality and Integrity, the Committee on Health, Education, Labor, and Pensions of the Senate, and the Committee on Education and Workforce of the House of Representatives on the review under subparagraph (B). (D) Any monetary penalty or payment assessed by an accrediting agency or association on institutions of higher education subject to the jurisdiction of the agency or association as a result of a fine imposed under this paragraph shall be assessed equally to each institution subject to the jurisdiction of the agency or association..