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ENGROSSED SENATE
BILL NO. 363 By: Jech of the Senate
and
Moore of the House
An Act relating to higher education; amending 70 O.S.
2021, Section 4103, as amended by Section 1, Chapter
122, O.S.L. 2023 (70 O.S. Supp. 2024, Section 4103),
which relates to accreditation of private and certain
out-of-state institutions; defining term; requiring
certain institutions to be domiciled in certain
locations; modifying policies and procedures related
to accreditation; updating statutory reference;
exempting certain institutions from accreditation;
updating statutory language; amending 70 O.S. 2021,
Section 4104, as amended by Section 1, Chapter 117,
O.S.L. 2024 (70 O.S. Supp. 2024, Section 4104), which
relates to degrees granted by private educational
institutions; modifying exemption for certain
religious degrees; updating statutory reference;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O .S. 2021, Section 4103, as
amended by Section 1, Chapter 122, O.S.L. 2023 (70 O.S. Supp. 2024,
Section 4103), is amended to read as follows:
Section 4103. A. As used in this section:
1. “Degree-granting institution ” means an institution that
offers education leading to an associate ’s degree or higher;
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2. “Non-degree-granting activity” means offering education or
training that does not lead to an associate’s degree or higher; and
3. “Religious degree-granting institution ” means an institution
that is domiciled within the United States or a United States
district or territory; is exempt from taxation pursuant to the
provisions of Section 501(c)(3) of the Internal Revenue Code of
1986, as amended, 26 U.S.C., Section 501(c)(3) ; and offers education
leading to an associate’s degree or higher where the purpose,
content, and name of all degrees offered by the institution meet the
criteria set forth in paragraphs 1 and 2 of subsection B of Section
4104 of this title. By offering any degrees not meeting the
criteria set forth in paragraphs 1 and 2 of subsection B of Section
4104 of this title, an institution fails to meet the definition of a
religious degree-granting institution and remains subject to the
requirements for degree -granting institutions in subsectio n B of
this section as to those degrees; and
4. “State authorization reciprocity agreement ” means an
agreement among states, districts, and ter ritories that establishes
comparable standards for providing distance education from their
postsecondary educati onal institutions to out -of-state students.
B. All private and out -of-state public degree-granting
institutions shall be accredited by an accrediting agency which is
recognized by the Secretary of the United States Department of
Education as a reliable au thority as to the quality of education or
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training offered by institutions of higher education for the
purposes of the Higher Education Act of 1 965, as amended, and be
domiciled within the United States or a United States district or
territory. Additionally, for the purposes of consumer protection
and to maintain financial eligibility for Title IV funding as
described in 34 CFR Part 600, institutions shall be authorized
according to the policies and procedures established by the Oklahoma
State Regents for Higher Education. These policies and procedures
shall be limited to the minimum those necessary to ensure that
private and out-of-state degree-granting institutions that operate
in this state by any modality meet the same standards and outcomes
of academic quality, student consumer protection, and fiscal
responsibility required for comparable institutions of higher
education within The Oklahoma State System of Higher Education.
Beginning with the 2023 -2024 academic year, the State Regents shall:
1. Establish and collect fees annually from applicants for
authorization as necessary to cover the costs of authorization;
2. Require applicants for au thorization to submit payment in an
amount established by the State Regents into the Tuition Recovery
Revolving Fund created in Section 2 Section 4103.1 of this act
title, which shall be used to offset student tuition losses in the
event an authorized institution closes or ceases operations; and
3. Be authorized to deny, not renew, or revoke an institution ’s
authorization if it is found to be in violation of the Oklahoma
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statutes, it fails to meet the minimum authorization standards
established by the Stat e Regents, or an accrediting agency or other
government entity revokes its approval, which is material to the
continuity of the institution. An institution subject to the
provisions of this paragraph shall be given reasonable notice and an
opportunity to be heard prior to a decision to deny, not renew, or
revoke authorization.
C. The following institutions shall b e exempt from this
section:
1. Private institutions participating in the Oklahoma Tuition
Equalization Grant program; and
2. Out-of-state public and private institutions participating
in a state authorization reciprocity agreement that only conduct
activities in Oklahoma that are acceptable under the terms and
conditions of the state authorization reciprocity agreement ;
3. Religious degree -granting institutions; and
4. Degree-granting institutions offering in this state only
degrees meeting the criteria set forth in paragraphs 1 and 2 of
subsection B of Section 4104 of this title for the offering of
religious degrees. This exemption shall not apply to any degree
programs not meeting the criteria for religious degrees set forth in
paragraphs 1 and 2 of s ubsection B of Section 4104 of this title .
D. Non-exempt institutions exclusively engaged in non-degree
granting non-degree-granting activities, such as offering
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certificates and diplomas, shall be subject to the standards
administered by the Oklahoma Boa rd of Private Vocational Schools.
E. The State Regents shall promulgate rules to implement the
provisions of this section.
SECTION 2. AMENDATORY 70 O.S. 2021, Section 4104, as
amended by Section 1, Chapter 117, O.S.L. 2024 (70 O. S. Supp. 2024,
Section 4104), is amended to read as follows:
Section 4104. A. A private educational institution shall grant
only those degrees authorized by the Oklahoma State Regents for
Higher Education unless approved otherwise by a national or region al
accrediting agency which is recognized by the Secretary of the
United States Department of Education as a reliable authority as to
the quality of education or training offered by institutions of
higher education for the purposes of the Higher Education Act of
1965, as amended.
B. 1. This section shall not apply to religious degrees which
are used solely for religious purposes within a religious
organization or any institution of higher education whose primary
sole purpose is to provide religious traini ng or theological
education and which is exempt from taxation pursuant to the
provisions of Section 501(c)(3) of the Internal Revenue Code of
1986, as amended, 26 U.S.C., Section 501(c)(3).
2. Each degree title offered pursuant to this subsection shall
include a religious modifier. The religious modifier shall be
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placed on the degree, on the transcript, and wherever the title of
the degree appears in official school documents or publications.
SECTION 3. This act shall become effective Jul y 1, 2025.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health, or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after it s passage and approval.
Passed the Senate the 24th day of March, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2025.
Presiding Officer of the House
of Representatives