To amend the Higher Education Act of 1965 to provide greater academic freedom for institutions of higher education, and for other purposes.

February 13, 2003

Mr. PETRI introduced the following bill; which was referred to the Committee on Education and the Workforce

To amend the Higher Education Act of 1965 to provide greater academic freedom for institutions of higher education, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCES.

(a) SHORT TITLE- This Act may be cited as the `Higher Education Accrediting Agency Responsibility Act of 2003'.

(b) REFERENCES TO HIGHER EDUCATION ACT OF 1965- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965.

SEC. 2. FINDINGS AND PURPOSES.

(a) FINDINGS- Congress finds the following:

(1) Accrediting agencies were originally intended to provide voluntary, nongovernmental oversight of institutions of higher education.

(2) However, Congress has allowed accreditors to become gatekeepers of more than $40,000,000,000 of Federal student aid funds due to such agencies role, enshrined in current Federal law, to help determine an institution's eligibility to participate in Federal student aid programs.

(3) More effective and less costly mechanisms are already in place to protect students and parents, as no institution can receive Federal funds until the Department of Education certifies its financial and administrative capacity. Additionally, the amount of useful information publicly available about the quality of academic institutions has grown dramatically in recent years and now far exceeds the minimal amount conveyed by the accreditation system.

(4) It is virtually unknown for an institution to be denied accreditation because of low educational values, despite growing public concern that American college graduates are lacking the skills necessary for participation in civic life.

(5) The time and effort required of institutions of higher education to comply with the accreditation process imposes costs which must ultimately be borne by students and parents.

(b) PURPOSES- The purposes of this Act are as follows:

(1) To refocus the purpose of accreditation on providing comparative information about the quality of institutions of higher education, rather than determining student aid eligibility, which should properly be the responsibility of the Department of Education.

(2) To end the virtual monopoly that today's accrediting agencies enjoy, and require them to operate in a competitive environment like any other industry.

SEC. 3. AMENDMENTS AND REPEALS.

(a) QUALIFICATION OF INSTITUTIONS OF HIGHER EDUCATION- Section 101 (20 U.S.C. 1001) is amended--

(1) in subsection (a)--

(A) by adding `and' at the end of paragraph (3);

(B) by striking `; and' at the end of paragraph (4) and inserting a period; and

(C) by striking paragraph (5); and

(2) by striking subsection (c).

(b) QUALIFICATION OF PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION- Section 102(b)(1) (20 U.S.C. 1002(b)(1)) is amended--

(1) by striking subparagraph (D); and

(2) by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively.

(c) NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND INTEGRITY- Section 114 (20 U.S.C. 1011c) is repealed.

(d) DISCLOSURES OF FOREIGN GIFTS- Section 117(h)(4) (20 U.S.C. 1011f(h)(4)) is amended--

(1) by adding `and' at the end of subparagraph (A); and

(2) by striking subparagraph (C).

(e) TITLE III ELIGIBLE INSTITUTIONS- Section 312(b)(1) (20 U.S.C. 1058(b)(1)) is amended--

(1) by striking subparagraph (D); and

(2) by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively.

(f) TITLE III DEFINITIONS- Section 322(2) (20 U.S.C. 1061(2)) is amended--

(1) by inserting `and' after `1964,'; and

(2) by striking `and that is accredited' and all that follows through `toward accreditation,'.

(g) HBCU CAPITAL FINANCING- Section 342(5) (20 U.S.C. 1066a(5)) is amended--

(1) by adding `and' at the end of subparagraph (F);

(2) by striking subparagraph (G); and

(3) by redesignating subparagraph (H) as subparagraph (G).

(h) CONFORMING AMENDMENT- Section 365 (20 U.S.C. 1067k) is amended--

(1) by striking paragraph (1); and

(2) by redesignating paragraphs (2) through (9) as paragraphs (1) through (8), respectively.

(i) DISTANCE EDUCATION DEMONSTRATION PROGRAMS- Section 486(c)(2) (20 U.S.C. 1093(c)(2)) is amended--

(1) by striking subparagraph (A); and

(2) by redesignating subparagraphs (B) through (F) as subparagraphs (A) through (E), respectively.

(j) PROGRAM PARTICIPATION AGREEMENTS- Section 487 (20 U.S.C. 1094) is amended--

(1) in subsection (a)(3)--

(A) by adding `and' at the end of subparagraph (A);

(B) by striking `; and' at the end of subparagraph (B) and inserting a period; and

(C) by striking subparagraph (C);

(2) in subsection (a)(15), by striking `accrediting agencies,';

(3) in subsection (a)(21), by striking `and accrediting agencies or associations'; and

(4) in subsection (c)(5)--

(A) by inserting `and' after `eligible lenders,'; and

(B) by striking `, and accrediting agencies or associations'.

(k) ACCREDITING AGENCY RECOGNITION- Section 496 (20 U.S.C. 1099b) is repealed.

(l) ELIGIBILITY AND CERTIFICATION PROCEDURES- Section 498 (20 U.S.C. 1099c) is amended--

(1) in subsection (a), by striking `accreditation'; and

(2) in subsection (b), by striking `accreditation,' each place it appears.

SEC. 4. EFFECTIVE DATE.

The amendments made by this Act shall be effective on September 1, 2003.

END