Conflict of interest

Section 496(a) of the Higher Education Act of 1965 (20 U.S.C. 1099b(a)) is amended— (1) in paragraph (7), by striking and after the semicolon; (2) in paragraph (8), by striking the period at the end and inserting; and; and (3) by adding at the end the following: (9) such agency or association prohibits an individual— (A) from participating in any review or decision-making role in any part of the agency’s or association’s accreditation process, including service on the agency’s or association’s commission or governing board and reviewing or deciding on accreditation policies or the accreditation status of institutions or programs, if the individual, or a family member of the individual (as defined by the Secretary)— (i) is an administrative officer of an institution of higher education accredited by or seeking accreditation from such agency or association; (ii) has a financial stake in any institution of higher education (other than as an employee), including as an investor, bondholder, creditor, vendor, or contractor; (iii) has a fiduciary responsibility to an institution of higher education accredited by or seeking accreditation from such agency or association; (iv) is a federally registered lobbyist; (v) is ineligible to participate under regulations prescribed by the Secretary based on affiliation with an institution that has a history of administrative or legal action brought on behalf of students or taxpayers, or that currently faces such action, or that closed without providing equitable treatment of students; or (vi) is a former executive leader from an accrediting agency or association that lost recognition under this section; and (B) from participating in any review or decision-making role in any part of the agency’s or association’s accreditation process with respect to a particular institution or program, if the individual, or a family member of the individual (as defined by the Secretary), is an employee or was an employee in the preceding 3 years of the institution or program..