88R9196 CXP-F
By: Middleton, Creighton S.B. No. 2335
A BILL TO BE ENTITLED
AN ACT
relating to the accreditation of public institutions of higher
education; providing a private cause of action.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 51, Education Code, is amended by adding
Subchapter G-1 to read as follows:
SUBCHAPTER G-1. ACCREDITATION OF INSTITUTIONS OF HIGHER EDUCATION
Sec. 51.371. DEFINITIONS. In this subchapter:
(1) "Accrediting agency" means any organization,
association, or other entity that accredits postsecondary
educational institutions.
(2) "Commission" means the Texas Higher Education
Accreditation Commission established by this subchapter.
(3) "Institution of higher education" has the meaning
assigned by Section 61.003.
Sec. 51.372. TEXAS HIGHER EDUCATION ACCREDITATION
COMMISSION. (a) The commission is an independent state agency
directly accountable to the governor.
(b) The commission is composed of nine members of the public
appointed as follows:
(1) three members appointed by the governor;
(2) three members appointed by the lieutenant
governor; and
(3) three members appointed by the speaker of the
house of representatives.
(c) At least two of the three commission members appointed
under Subsections (b)(1), (b)(2), and (b)(3) must be an employer or
representative of an association of employers in a target
occupations field, as determined by the Texas Workforce Commission.
Sec. 51.373. APPROVAL AND REVIEW OF ACCREDITING AGENCIES.
(a) The commission shall identify and approve at least three
accrediting agencies best suited to serve as accreditors for
institutions of higher education.
(b) The commission shall conduct a biennial evaluation of
approved accrediting agencies. The evaluation must rate each
agency as unsatisfactory, satisfactory, or exemplary based on
evaluation standards established by the commission. The commission
shall publish the evaluation standards in a manner that is easily
accessible to the general public.
(c) The commission's evaluation of each approved
accrediting agency must include an assessment of:
(1) educational and labor market outcomes for students
attending an institution accredited by the agency, including:
(A) the percentage of students who return to the
accredited institution after completing their first year of study;
(B) degree or credential completion and
graduation rates;
(C) the percentage of institution graduates
employed in a field related to the credential or degree received
within one year of graduation, to the extent that data is available;
(D) the median student loan debt among borrowers
attending the institution;
(E) the percentage of students at each accredited
institution who fully repay their student loans within the standard
10-year repayment period; and
(F) the median earnings of institution graduates
expressed as a yearly amount and as a percentage of median student
debt among borrowers, as reported by the U.S. Department of
Education's College Scorecard or successor tool; and
(2) whether the agency takes or considers taking
action with respect to an institution's accreditation in a manner
that would hinder or interfere with the authority of the
institution's governing board and the institution's accountability
to the legislature.
(d) Not later than November 1 of each even-numbered year,
the commission shall submit a report of the evaluation made under
this section to the governor, lieutenant governor, speaker of the
house of representatives, Legislative Budget Board, and chairs of
the standing committees of each house of the legislature with
primary jurisdiction over higher education. The report must
include a ranking of the performance of approved accrediting
agencies and information on any accrediting agency the commission
determines should no longer be approved due to poor performance.
Sec. 51.374. ACCREDITATION OF INSTITUTIONS OF HIGHER
EDUCATION. (a) Each institution of higher education shall, at the
institution's expense, seek accreditation by an accrediting agency
approved by the commission with a performance rating of
satisfactory or higher.
(b) An institution of higher education accredited by an
accrediting agency that receives an unsatisfactory performance
rating from the commission shall, at the institution's expense,
obtain accreditation from a different approved accrediting agency
with at least a satisfactory performance rating as of the date the
institution's current accreditation expires.
(c) An institution of higher education accredited by an
accrediting agency with a satisfactory performance rating shall, at
the institution's expense, obtain accreditation from a different
approved accrediting agency at the institution's next
accreditation renewal date after 15 years have elapsed from the
date of the institution's current accreditation.
(d) An institution of higher education accredited by an
accrediting agency with an exemplary performance rating shall, at
the institution's expense, obtain accreditation from a different
approved accrediting agency at the institution's next
accreditation renewal date after 20 years have elapsed from the
date of the institution's current accreditation.
(e) Notwithstanding any other law, an institution of higher
education may not receive any state funding for a state fiscal year
following a state fiscal year in which the coordinating board
determines that the institution has not substantially complied with
the requirements of this section.
Sec. 51.375. CAUSE OF ACTION. An institution of higher
education that is adversely impacted by retaliatory action taken
against the institution by an accrediting agency may bring an
action against the accrediting agency in a court of competent
jurisdiction and may be awarded liquidated damages up to the amount
of federal financial aid received by the institution in the most
recent academic year, court costs, and reasonable attorney's fees.
SECTION 2. (a) As soon as practicable after the effective
date of this Act, the governor, lieutenant governor, and speaker of
the house of representatives shall appoint the members to the Texas
Higher Education Accreditation Commission as provided by Section
51.372, Education Code, as added by this Act.
(b) The Texas Higher Education Accreditation Commission
established under Subchapter G-1, Chapter 51, Education Code, as
added by this Act, shall identify and approve accrediting agencies
as required by Section 51.373(a), Education Code, as added by this
Act, not later than September 1, 2024.
SECTION 3. This Act takes effect September 1, 2023.