S.B. No. 1490
AN ACT
relating to the authority of the Texas Higher Education
Coordinating Board to authorize certain degree programs offered by
private postsecondary educational institutions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 61.303, Education Code, as amended by
S.B. 1781, Acts of the 85th Legislature, Regular Session, 2017, is
reenacted and amended to read as follows:
Sec. 61.303. EXEMPTIONS. (a) Unless specifically provided
otherwise, the provisions of this subchapter do not apply to an
institution that is fully accredited by, and is not operating under
sanctions imposed by, a recognized accrediting agency, or an
institution or degree program that has received approval by a state
agency authorizing the institution's graduates to take a
professional or vocational state licensing examination
administered by that agency. The granting of permission by a state
agency to a graduate of an institution to take a licensing
examination does not by itself constitute approval of the
institution or degree program required for an exemption under this
subsection.
(b) The exemptions provided by Subsection (a) apply only to
the degree level for which an institution is accredited, and if an
institution offers to award a degree at a level for which it is not
accredited, the exemption does not apply.
(c) Except as provided by Subsection (c-1), the [The] board
may approve the issuance of a certificate of authorization to grant
degrees [issue] to an exempt institution or person [a certificate
of authorization to grant degrees]. The board may adopt rules
regarding a process to allow an exempt institution or person to
apply [for] and receive approval for a certificate of authorization
under this section.
(c-1) The board may not approve the issuance of a
certificate of authorization for an exempt institution to grant a
professional degree or to represent that credits earned in this
state are applicable toward a professional degree except to the
extent allowed for an authorized institution operating under a
State Authorization Reciprocity Agreement (SARA). In this
subsection, "professional degree" includes Doctor of Medicine
(M.D.), Doctor of Osteopathy (D.O.), Doctor of Dental Surgery
(D.D.S.), Doctor of Veterinary Medicine (D.V.M.), Juris Doctor
(J.D.), and Bachelor of Laws (LL.B.).
(d) The board by rule may require an exempt institution or
person to ensure that the financial resources and financial
stability of the institution or person are adequate to provide
education of a good quality and to fulfill the institution's or
person's commitments to its enrolled students and may require the
institution or person to provide to the board documentation of the
institution's or person's compliance with those requirements.
Rules adopted under this subsection must:
(1) require the institution or person to maintain
reserves, lines of credit, or surety instruments that, when
combined with tuition and fee receipts, are sufficient to allow the
institution or person to fulfill its educational obligations to its
enrolled students if the institution or person is unable to
continue to provide instruction to its enrolled students for any
reason; and
(2) require that the financial resources maintained
under Subdivision (1) be conditioned to allow only the board to
withdraw funds for the benefit of the institution's or person's
enrolled students under the circumstance described by Subdivision
(1).
(e) To enable the board to verify the conditions under which
a certificate of authorization issued under this section is held,
the board by rule may require an exempt institution or person to
report to the board on a continuing basis other appropriate
information in addition to the documentation required under
Subsection (d).
(f) An exempt institution or person continues in that status
only if the institution or person maintains accreditation by, and
is not operating under sanctions imposed by, a recognized
accrediting agency or otherwise meets the provisions of Subsection
(a).
(g) The board by rule shall provide for due process and
shall provide procedures for revoking or placing conditions on the
exemption status of an institution or person or for revoking or
placing conditions on a previously issued certificate of
authorization.
(h) Under the rules described by Subsection (g), the board
may revoke or place conditions on an institution's or person's
exemption status or certificate of authorization only if the board
has reasonable cause to believe that the institution or person has
violated this subchapter or any rule adopted under this subchapter.
(i) Before revoking or placing conditions on an
institution's or person's exemption status or certificate of
authorization under Subsection (h), the board must provide to the
institution or person written notice of the board's impending
action and include the grounds for that action.
(j) If the board places conditions on an institution's or
person's exemption status or certificate of authorization under
Subsection (h), until the board removes the conditions, the board
may reexamine the applicable institution or person at least twice
annually following the date the board provided notice under
Subsection (i).
(k) A private postsecondary educational institution may not
establish or operate a branch campus, extension center, or other
off-campus unit in Texas except as provided by this subsection or
the rules of the board. This subsection does not apply to a private
or independent institution of higher education as defined by
Section 61.003.
SECTION 2. Section 61.306, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsections (c-1) and
(d) to read as follows:
(a) Subject to Subsections (c) and (c-1), the [The] board
may issue a certificate of authority to grant a degree or degrees
and to enroll students for courses which may be applicable toward a
degree if it finds that the applicant meets the standards
established by the board for certification.
(c) The board may not issue a certificate of authority for a
private postsecondary educational institution to grant a
professional degree or to represent that credits earned in this
state are applicable toward a professional degree if the
institution is chartered in a foreign country or has its principal
office or primary educational program in a foreign country.
(c-1) The board may issue a certificate of authority for a
private postsecondary educational institution to grant a
professional degree or to represent that credits earned in this
state are applicable toward a professional degree only if the board
determines that:
(1) the capacity and ability of similar professional
degree programs at institutions of higher education and private or
independent institutions of higher education are insufficient to
meet the state's current market needs;
(2) the institution seeking the certificate of
authority:
(A) has the necessary faculty and other resources
to ensure student success; and
(B) is subject to and agrees to meet the same
standards for approval and all academic criteria applicable to
similar professional degree programs offered by institutions of
higher education and private or independent institutions of higher
education; and
(3) sufficient placements are available to students
for required field-based experience, such as clinicals or
clerkships, for the proposed professional degree.
(d) In this section:
(1) "Institution of higher education" and "private or
independent institution of higher education" have the meanings
assigned by Section 61.003.
(2) "Professional [subsection, "professional] degree"
includes a Doctor of Medicine (M.D.), Doctor of Osteopathy (D.O.),
Doctor of Dental Surgery (D.D.S.), Doctor of Veterinary Medicine
(D.V.M.), Juris Doctor (J.D.), and Bachelor of Laws (LL.B.).
SECTION 3. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1490 passed the Senate on
April 20, 2021, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 27, 2021, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1490 passed the House, with
amendment, on May 18, 2021, by the following vote: Yeas 120,
Nays 17, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor