4 | 8 | | AN ACT |
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5 | 9 | | relating to the authority of the Texas Higher Education |
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6 | 10 | | Coordinating Board to authorize certain degree programs offered by |
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7 | 11 | | private postsecondary educational institutions. |
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8 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 13 | | SECTION 1. Section 61.303, Education Code, as amended by |
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10 | 14 | | S.B. 1781, Acts of the 85th Legislature, Regular Session, 2017, is |
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11 | 15 | | reenacted and amended to read as follows: |
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12 | 16 | | Sec. 61.303. EXEMPTIONS. (a) Unless specifically provided |
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13 | 17 | | otherwise, the provisions of this subchapter do not apply to an |
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14 | 18 | | institution that is fully accredited by, and is not operating under |
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15 | 19 | | sanctions imposed by, a recognized accrediting agency, or an |
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16 | 20 | | institution or degree program that has received approval by a state |
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17 | 21 | | agency authorizing the institution's graduates to take a |
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18 | 22 | | professional or vocational state licensing examination |
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19 | 23 | | administered by that agency. The granting of permission by a state |
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20 | 24 | | agency to a graduate of an institution to take a licensing |
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21 | 25 | | examination does not by itself constitute approval of the |
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22 | 26 | | institution or degree program required for an exemption under this |
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23 | 27 | | subsection. |
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24 | 28 | | (b) The exemptions provided by Subsection (a) apply only to |
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25 | 29 | | the degree level for which an institution is accredited, and if an |
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26 | 30 | | institution offers to award a degree at a level for which it is not |
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27 | 31 | | accredited, the exemption does not apply. |
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28 | 32 | | (c) Except as provided by Subsection (c-1), the [The] board |
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29 | 33 | | may approve the issuance of a certificate of authorization to grant |
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30 | 34 | | degrees [issue] to an exempt institution or person [a certificate |
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31 | 35 | | of authorization to grant degrees]. The board may adopt rules |
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32 | 36 | | regarding a process to allow an exempt institution or person to |
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33 | 37 | | apply [for] and receive approval for a certificate of authorization |
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34 | 38 | | under this section. |
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35 | 39 | | (c-1) The board may not approve the issuance of a |
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36 | 40 | | certificate of authorization for an exempt institution to grant a |
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37 | 41 | | professional degree or to represent that credits earned in this |
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38 | 42 | | state are applicable toward a professional degree except to the |
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39 | 43 | | extent allowed for an authorized institution operating under a |
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40 | 44 | | State Authorization Reciprocity Agreement (SARA). In this |
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41 | 45 | | subsection, "professional degree" includes Doctor of Medicine |
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42 | 46 | | (M.D.), Doctor of Osteopathy (D.O.), Doctor of Dental Surgery |
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43 | 47 | | (D.D.S.), Doctor of Veterinary Medicine (D.V.M.), Juris Doctor |
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44 | 48 | | (J.D.), and Bachelor of Laws (LL.B.). |
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45 | 49 | | (d) The board by rule may require an exempt institution or |
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46 | 50 | | person to ensure that the financial resources and financial |
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47 | 51 | | stability of the institution or person are adequate to provide |
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48 | 52 | | education of a good quality and to fulfill the institution's or |
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49 | 53 | | person's commitments to its enrolled students and may require the |
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50 | 54 | | institution or person to provide to the board documentation of the |
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53 | 57 | | (1) require the institution or person to maintain |
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54 | 58 | | reserves, lines of credit, or surety instruments that, when |
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55 | 59 | | combined with tuition and fee receipts, are sufficient to allow the |
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56 | 60 | | institution or person to fulfill its educational obligations to its |
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57 | 61 | | enrolled students if the institution or person is unable to |
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58 | 62 | | continue to provide instruction to its enrolled students for any |
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59 | 63 | | reason; and |
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60 | 64 | | (2) require that the financial resources maintained |
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61 | 65 | | under Subdivision (1) be conditioned to allow only the board to |
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62 | 66 | | withdraw funds for the benefit of the institution's or person's |
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63 | 67 | | enrolled students under the circumstance described by Subdivision |
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64 | 68 | | (1). |
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65 | 69 | | (e) To enable the board to verify the conditions under which |
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66 | 70 | | a certificate of authorization issued under this section is held, |
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67 | 71 | | the board by rule may require an exempt institution or person to |
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68 | 72 | | report to the board on a continuing basis other appropriate |
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69 | 73 | | information in addition to the documentation required under |
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70 | 74 | | Subsection (d). |
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71 | 75 | | (f) An exempt institution or person continues in that status |
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72 | 76 | | only if the institution or person maintains accreditation by, and |
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73 | 77 | | is not operating under sanctions imposed by, a recognized |
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74 | 78 | | accrediting agency or otherwise meets the provisions of Subsection |
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75 | 79 | | (a). |
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76 | 80 | | (g) The board by rule shall provide for due process and |
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77 | 81 | | shall provide procedures for revoking or placing conditions on the |
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78 | 82 | | exemption status of an institution or person or for revoking or |
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79 | 83 | | placing conditions on a previously issued certificate of |
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80 | 84 | | authorization. |
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81 | 85 | | (h) Under the rules described by Subsection (g), the board |
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82 | 86 | | may revoke or place conditions on an institution's or person's |
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83 | 87 | | exemption status or certificate of authorization only if the board |
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84 | 88 | | has reasonable cause to believe that the institution or person has |
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85 | 89 | | violated this subchapter or any rule adopted under this subchapter. |
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86 | 90 | | (i) Before revoking or placing conditions on an |
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87 | 91 | | institution's or person's exemption status or certificate of |
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88 | 92 | | authorization under Subsection (h), the board must provide to the |
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89 | 93 | | institution or person written notice of the board's impending |
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90 | 94 | | action and include the grounds for that action. |
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91 | 95 | | (j) If the board places conditions on an institution's or |
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92 | 96 | | person's exemption status or certificate of authorization under |
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93 | 97 | | Subsection (h), until the board removes the conditions, the board |
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94 | 98 | | may reexamine the applicable institution or person at least twice |
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95 | 99 | | annually following the date the board provided notice under |
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96 | 100 | | Subsection (i). |
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97 | 101 | | (k) A private postsecondary educational institution may not |
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98 | 102 | | establish or operate a branch campus, extension center, or other |
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99 | 103 | | off-campus unit in Texas except as provided by this subsection or |
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100 | 104 | | the rules of the board. This subsection does not apply to a private |
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101 | 105 | | or independent institution of higher education as defined by |
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102 | 106 | | Section 61.003. |
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103 | 107 | | SECTION 2. Section 61.306, Education Code, is amended by |
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104 | 108 | | amending Subsections (a) and (c) and adding Subsections (c-1) and |
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105 | 109 | | (d) to read as follows: |
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106 | 110 | | (a) Subject to Subsections (c) and (c-1), the [The] board |
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107 | 111 | | may issue a certificate of authority to grant a degree or degrees |
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108 | 112 | | and to enroll students for courses which may be applicable toward a |
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109 | 113 | | degree if it finds that the applicant meets the standards |
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110 | 114 | | established by the board for certification. |
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111 | 115 | | (c) The board may not issue a certificate of authority for a |
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112 | 116 | | private postsecondary educational institution to grant a |
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113 | 117 | | professional degree or to represent that credits earned in this |
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114 | 118 | | state are applicable toward a professional degree if the |
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115 | 119 | | institution is chartered in a foreign country or has its principal |
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116 | 120 | | office or primary educational program in a foreign country. |
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117 | 121 | | (c-1) The board may issue a certificate of authority for a |
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118 | 122 | | private postsecondary educational institution to grant a |
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119 | 123 | | professional degree or to represent that credits earned in this |
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120 | 124 | | state are applicable toward a professional degree only if the board |
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121 | 125 | | determines that: |
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122 | 126 | | (1) the capacity and ability of similar professional |
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123 | 127 | | degree programs at institutions of higher education and private or |
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124 | 128 | | independent institutions of higher education are insufficient to |
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125 | 129 | | meet the state's current market needs; |
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126 | 130 | | (2) the institution seeking the certificate of |
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127 | 131 | | authority: |
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128 | 132 | | (A) has the necessary faculty and other resources |
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129 | 133 | | to ensure student success; and |
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130 | 134 | | (B) is subject to and agrees to meet the same |
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131 | 135 | | standards for approval and all academic criteria applicable to |
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132 | 136 | | similar professional degree programs offered by institutions of |
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133 | 137 | | higher education and private or independent institutions of higher |
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134 | 138 | | education; and |
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135 | 139 | | (3) sufficient placements are available to students |
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136 | 140 | | for required field-based experience, such as clinicals or |
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137 | 141 | | clerkships, for the proposed professional degree. |
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138 | 142 | | (d) In this section: |
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139 | 143 | | (1) "Institution of higher education" and "private or |
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140 | 144 | | independent institution of higher education" have the meanings |
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141 | 145 | | assigned by Section 61.003. |
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142 | 146 | | (2) "Professional [subsection, "professional] degree" |
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143 | 147 | | includes a Doctor of Medicine (M.D.), Doctor of Osteopathy (D.O.), |
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144 | 148 | | Doctor of Dental Surgery (D.D.S.), Doctor of Veterinary Medicine |
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145 | 149 | | (D.V.M.), Juris Doctor (J.D.), and Bachelor of Laws (LL.B.). |
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146 | 150 | | SECTION 3. This Act takes effect September 1, 2021. |
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