BILL ANALYSIS Senate Research Center S.B. 2647 By: Middleton Education K-16 4/9/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Texas institutions of higher education currently rely on private, federally recognized accreditors, primarily the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC), to maintain eligibility for federal student aid and institutional legitimacy. These accreditors wield de facto regulatory authority but operate as private nonprofit entities, accountable neither to Texas voters nor to state policymakers. Conflicts have arisen between state policy and accreditors' standards, especially concerning: Institutional governance and state oversight. Curriculum, free speech, and faculty rights. Diversity, equity, and inclusion (DEI) policies. Opaque accreditation processes and limited appeal. National precedents such as New York's Board of Regents and Florida's S.B. 7044 highlight the growing momentum for state-level alternatives that retain federal recognition but increase alignment with state educational priorities. As proposed, S.B. 2647 amends current law relating to the accreditation of postsecondary educational institutions and authorizes fees. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Higher Education Coordinating Board in SECTION 1 (Sections 51.375 and 51.391, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 51, Education Code, by adding Subchapters G-1 and G-2, as follows: SUBCHAPTER G-1. QUALITY REVIEW OF ACCREDITING AGENCIES Sec. 51.371. DEFINITIONS. Defines "accrediting agency," "board," "institution of higher education," and "recognized accrediting agency." Sec. 51.372. APPROVAL AND REVIEW OF ACCREDITING AGENCIES. (a) Requires the Texas Higher Education Coordinating Board (THECB) to identify and approve at least three accrediting agencies best suited to serve as accreditors for institutions of higher education. (b) Requires THECB, subject to Subsections (c) and (d), to conduct a biennial evaluation of accrediting agencies approved under Subsection (a). Requires that the evaluation rate each agency as unsatisfactory or satisfactory based on evaluation standards established by THECB rule. Requires THECB to make the evaluation standards available to the public on THECB's Internet website. (c) Requires THECB, if an institution of higher education seeks accreditation from a recognized accrediting agency that THECB has not approved under Subsection (a), to evaluate the agency under Subsection (b) not later than the fifth anniversary of the date the institution receives accreditation from the agency. (d) Requires THECB, if at the time THECB would be required to conduct an evaluation of an accrediting agency under Subsection (b) THECB does not have sufficient information to conduct the evaluation, to obtain the necessary information and conduct the evaluation of the agency as soon as practicable. (e) Requires that THECB's evaluation of an accrediting agency under Subsection (b) include an assessment of whether the agency requires or encourages the institution to take action that conflicts with state law, including Section 51.3525 (Responsibility of Governing Boards Regarding Diversity, Equity, and Inclusion Initiatives). (f) Authorizes THECB to revoke the approval of an accrediting agency under Subsection (a) if THECB determines based on an evaluation under Subsection (b) that the agency should no longer be approved. (g) Requires THECB, not later than November 1 of each even-numbered year, to submit to the governor, the lieutenant governor, the speaker of the house of representatives, the Legislative Budget Board (LBB), and the chairs of the standing legislative committees with primary jurisdiction over higher education and make available to the public on THECB's Internet website a report of the evaluations made under this section. Requires that the report include a ranking of the performance of accrediting agencies approved under Subsection (a) and information regarding any accrediting agency THECB determines should no longer be approved under that subsection. Sec. 51.373. ACCREDITATION OF INSTITUTIONS OF HIGHER EDUCATION. (a) Requires each institution of higher education to, at the institution's expense, seek accreditation by an accrediting agency approved by THECB under Section 51.372(a) with a satisfactory performance rating under Section 51.372(b). (b) Requires an institution of higher education accredited by an accrediting agency that receives an unsatisfactory performance rating under Section 51.372(b) to, at the institution's expense, obtain accreditation from an accrediting agency approved by THECB under Section 51.372(a) with a satisfactory performance rating under Section 51.372(b) not later than the earlier of certain dates. (c) Authorizes an institution of higher education accredited by an accrediting agency with a satisfactory performance rating under Section 51.372(b) to continue to be accredited by that agency for as long as the agency maintains a satisfactory performance rating. Sec. 51.374. NONCOMPLIANCE. (a) Requires THECB, if THECB determines that an institution of higher education has failed to substantially comply with Section 51.373, to provide the institution and each person described by Section 51.372(g) with written notice of the determination. (b) Requires an institution of higher education that receives notice under Subsection (a) to take corrective actions to comply with Section 51.373 not later than the 180th day after the date of receipt of the notice. Requires THECB, if the institution fails to substantially comply with Section 51.373 by that date, to notify the Comptroller of Public Accounts of the State of Texas (comptroller) of the institution's noncompliance. (c) Requires the comptroller, on receipt of notice under Subsection (b), to withhold all state funding from the institution of higher education until THECB notifies the comptroller that the institution is substantially complying with Section 51.373. Sec. 51.375. RULES. Requires THECB to adopt rules as necessary to implement this subchapter. Sec. 51.376. APPLICABILITY OF SUBCHAPTER. Provides that this subchapter expires on the 30th day after the date on which THECB notifies the secretary of state (SOS) that each institution of higher education subject to accreditation by the Texas Accreditation Agency (agency) under Subchapter G-2 is accredited as required by that subchapter. Requires SOS to publish notice of that date in the Texas Register. SUBCHAPTER G-2. TEXAS ACCREDITATION AGENCY Sec. 51.381. DEFINITIONS. Defines "agency," "board," "general academic teaching institution," "institution of higher education," "medical and dental unit," "private or independent institution of higher education," "public junior college," "law school," "legal division," and "medical and dental division." Sec. 51.382. ESTABLISHMENT. (a) Provides that the agency is established to serve as the primary accrediting body for institutions of higher education. (b) Provides that the agency is administratively attached to and supported by THECB. Sec. 51.383. BOARD OF TRUSTEES. (a) Provides that the agency is governed by a board of trustees that consists of 11 members as follows: (1) five members appointed by the governor; (2) two members elected by general academic teaching institutions; (3) two members elected by public junior colleges; (4) one member elected by the medical units of the medical and dental units; and (5) one member elected by the dental units of the medical and dental units. (b) Requires THECB to hold an election to elect each member of the board of trustees described by Subsections (a)(2) through (5). Authorizes each general academic teaching institution, public junior college, and medical and dental unit to nominate a candidate in the election for the applicable trustee position being filled in the election and is entitled to cast one vote in the election. (c) Provides that a vacancy on the board of trustees is filled in the same manner as the initial appointment or election for the applicable position. (d) Provides that trustees serve staggered six-year terms, with the terms of one or two appointed members and the terms of two or three elected members expiring on February 1 of each odd-numbered year. (e) Requires the members of the board of trustees to elect a presiding officer from along its membership. Requires the presiding officer to convene meetings of the board of trustees, coordinate and direct the activities of the agency, and communicate with THECB regarding the activities of the agency. (f) Provides that a trustee is not entitled to compensation but is entitled to reimbursement for the travel expenses incurred by the trustee while transacting agency business, as provided by the General Appropriations Act. (g) Provides that the agency is subject to Chapters 551 (Open Meetings), 552 (Public Information), and 2001 (Administrative Procedure), Government Code. Sec. 51.384. POWERS AND DUTIES. (a) Requires the agency, subject to Section 51.385 or 51.386, to develop, implement, and maintain rigorous accreditation standards for institutions of higher education. Requires that the accreditation standards ensure quality education and institutional integrity based on certain criteria for each institution of higher education. (b) Requires the agency, Subject to Section 51.385 or 51.386, to conduct an evaluation, including an on-site visit, of each institution of higher education and assign an accreditation status to the institution based on findings made during the agency's evaluation. (c) Requires the agency to collaborate with THECB to ensure the accreditation process and criteria are aligned with statewide educational goals. (d) Requires the agency to develop and maintain a publicly accessible database on institutions of higher education evaluated and accredited by the agency, including any findings and recommendations made by the agency regarding the institution. Sec. 51.385. ACCREDITATION OF MEDICAL AND DENTAL SCHOOLS. (a) Requires the agency to establish a division dedicated to accrediting medical and dental units. (b) Requires the medical and dental division to develop accreditation standards specific to medical and dental education that take into consideration clinical training, research, and compliance with state and federal health care regulations. (c) Requires the medical and dental division to collaborate with relevant health care and medical and dental education stakeholders, including the Texas Medical Board, the State Board of Dental Examiners, and the Health and Human Services Commission, to ensure the standards developed under Subsection (b) align with educational and practice requirements. (d) Requires medical and dental division to require a medical and dental unit seeking accreditation to undergo a separate, comprehensive review process that includes an evaluation of clinical sites and an assessment of faculty credentials. Sec. 51.386. ACCREDITATION OF LAW SCHOOLS. (a) Requires the agency to establish a division dedicated to accrediting law schools. (b) Requires the legal division to develop accreditation standards specific to legal education. (c) Requires the legal division to collaborate with relevant legal education stakeholders, including the Board of Law Examiners, to ensure the standards developed under Subsection (b) align with educational and legal practice requirements. (d) Requires the legal division to require a law school seeking accreditation to undergo a separate, comprehensive review process developed by the agency. Sec. 51.387. REPORTS. Requires the agency to submit a report on the status of the agency's activities and institutional compliance: (1) not later than November 1 of each year, to THECB; and (2) not later than November 1 of each even-numbered year, to the governor, the lieutenant governor, the speaker of the house of representatives, the LBB, and the chairs of the standing legislative committees with primary jurisdiction over higher education. Sec. 51.388. VOLUNTARY ACCREDITATION PROCESS. (a) Authorizes an out-of-state postsecondary educational institution or a private or independent institution of higher education to apply for accreditation by the agency. (b) Requires the agency to establish a process by which an institution described by Subsection (a) may apply for voluntary accreditation, allow an institution described by Subsection (a) to request to be accredited through the accreditation process provided by the medical and dental division, and maintain the same academic standards and other standards for voluntary accreditation of an institution described by Subsection (a) as the standards developed for accreditation for institutions of higher education. Sec. 51.389. FEES. (a) Authorizes the agency to collect a fee from an institution of higher education, medical and dental unit, law school, out-of-state postsecondary educational institution, or private or independent institution of higher education undergoing the accreditation process under this subchapter. Provides that a fee collected under this section is authorized to be used only for the agency's operations. (b) Requires the agency and THECB jointly to prescribe the amount of the fee charged for voluntary accreditation under Section 51.388. Sec. 51.390. GIFTS, GRANTS, AND DONATIONS. Authorizes THECB to solicit, accept, and use gifts, grants, and donations from public and private sources for the purposes of this subchapter. Sec. 51.391. RULES. Requires THECB to adopt rules as necessary to implement this subchapter. Sec. 51.392. TRANSITION TO ACCREDITATION BY AGENCY. (a) Requires each institution of higher education, medical and dental unit, and law school, following the expiration of the institution's, unit's, or school's accreditation cycle beginning before January 1, 2027, to become accredited by the agency, the medical and dental division, or the legal division, as applicable. (b) Requires an institution of higher education, medical and dental unit, or law school to submit written notice to the agency of the institution's, unit's, or school's intent to seek accreditation by the agency not later than six months before the date the institution's, unit's, or school's accreditation received before January 1, 2027, is scheduled to expire. (c) Requires the agency to provide guidance and support to institutions of higher education, medical and dental units, and law schools throughout the transition to agency accreditation to minimize disruptions and ensure compliance with this subchapter. (d) Provides that this section applies to an institution of higher education only if the agency is officially recognized as an accrediting agency by the United States Department of Education, a medical and dental unit only if the medical and dental division is officially recognized as an accrediting agency by the United States Department of Education, and a law school only if the legal division is officially recognized as an accrediting agency by the United States Department of Education. (e) Requires THECB, if THECB determines that an institution of higher education, medical and dental unit, or law school has failed to substantially comply with this section, to provide the institution, unit, or school and each person described by Section 51.387(2) with written notice of the determination. (f) Requires an institution of higher education, medical and dental unit, or law school that receives notice under Subsection (e) to take corrective actions to comply with this section not later than the 180th day after the date of receipt of the notice. Requires THECB, if the institution, unit, or school fails to substantially comply with this section by that date, to notify the comptroller of the institution's, unit's, or school's noncompliance. (g) Requires the comptroller, on receipt of notice under Subsection (f), to withhold all state funding from the institution of higher education, medical and dental unit, or law school until THECB notifies the comptroller that the institution, unit, or school is substantially complying with this section. (h) Provides that this section expires September 1, 2037. SECTION 2. Amends Sections 61.003(13) and (15), Education Code, to redefine "recognized accrediting agency" and "private or independent institution of higher education." SECTION 3. Amends Section 61.0515(a), Education Code, to prohibit a student, to earn a baccalaureate degree, from being required by an institution of higher education to complete more than the minimum number of semester credit hours required for the degree by the institution's recognized accrediting agency, rather than by the Southern Association of Colleges and Schools (SACSCOC) or its successor, unless institution determines that there is a compelling academic reason for requiring completion of additional semester credit hours for the degree. SECTION 4. Amends Section 61.05151(a), Education Code, to make a conforming change. SECTION 5. Amends Sections 61.222(a), (b), and (d), Education Code, as follows: (a) Requires THECB to approve only those private or independent colleges or universities that are private or independent institutions of higher education as defined by Section 61.003 (Definitions) as that section existed on January 1, 2025. Deletes existing text requiring THECB to approve only those private or independent colleges or universities that are private or independent institutions of higher education as defined by Section 61.003 or are located within this state and meet the same program standards and accreditation as public institutions of higher education as determined by THECB. (b) Authorizes THECB to temporarily approve a private or independent institution of higher education as defined by Section 61.003 as that section existed on January 1, 2025, that previously qualified under Subsection (a) but no longer holds the same accreditation as public institutions of higher education. Requires an institution, to qualify under this subsection, to meet certain criteria, including being accredited by a recognized accrediting agency, rather than an accreditor recognized by THECB. (d) Makes conforming changes to this subsection. SECTION 6. Amends Section 61.8235(f), Education Code, to make a conforming change. SECTION 7. Amends Section 107.151(c), Education Code, to authorize the Texas Woman's University at Dallas, notwithstanding any other provision of Subchapter G (Texas Woman's University at Dallas), to operate as a general academic teaching institution only after THECB certifies that the university is accredited by a recognized accrediting agency, as defined by Section 61.003, rather than by SACSCOC, and has been approved by THECB to offer one or more degree programs. SECTION 8. Amends Section 107.201(c), Education Code, to authorize the Texas Woman's University at Houston, notwithstanding any other provision of Subchapter H (Texas Woman's University at Houston), to operate as a general academic teaching institution only after THECB certifies that the university is accredited by a recognized accrediting agency, as defined by Section 61.003, rather than by SACSCOC, and has been approved by THECB to offer one or more degree programs. SECTION 9. Amends Section 130.301, Education Code, by adding Subdivision (3) to define "recognized accrediting agency." SECTION 10. Amends Section 130.305, Education Code, to make a conforming change. SECTION 11. Amends Section 130.307(c), Education Code, to make a conforming change. SECTION 12. (a) Requires, not later than January 1, 2026, the governor to make the initial appointments of members of the board of trustees of the agency as required by Section 51.383(a), Education Code, as added by this Act, and THECB to hold the initial elections required by Section 51.383(b), Education Code, as added by this Act. (b) Requires the governor, in making the initial appointments, to appoint two trustees to initial terms expiring February 1, 2031, two trustees to initial terms expiring February 1, 2029, and one trustee to an initial term expiring February 1, 2027. (c) Requires the commissioner of education, after the initial elections for trustees, by lot to determine when the terms of the initial elected trustees expire, with the initial terms of two elected trustees expiring February 1, 2031, two initial terms expiring February 1, 2029, and two initial terms expiring February 1, 2027, except that the initial terms of the two members elected under Section 51.383(a)(2) or (3) are prohibited from expiring in the same year. SECTION 13. (a) Defines "agency," "legal division," and "medical and dental division." (b) Requires the agency, the medical and dental division, and the legal division, not later than September 1, 2026, to develop and present the agency's and divisions' respective accrediting processes and criteria to THECB for review. (c) Requires the agency, the medical and dental division, and the legal division, not later than December 1, 2026, to adopt and submit the agency's and divisions' respective accrediting processes and criteria to the legislature. (d) Requires the agency, the medical and dental division, and the legal division, not later than January 1, 2027, to request recognition as an accrediting agency for institutions of higher education, medical and dental units, or law schools, as applicable, from the United States Department of Education and perform all actions and submit to the department all materials necessary for that purpose. SECTION 14. Requires the agency, notwithstanding Section 51.387, Education Code, as added by this Act, to submit the initial report: (1) required by Section 51.387(1), Education Code, as added by this Act, not later than November 1, 2027; and (2) required by Section 51.387(2), Education Code, as added by this Act, not later than November 1, 2028. SECTION 15. Makes application of Section 51.388, Education Code, as added by this Act, prospective to January 1, 2028. SECTION 16. Effective date: September 1, 2025. BILL ANALYSIS Senate Research Center S.B. 2647 By: Middleton Education K-16 4/9/2025 As Filed Senate Research Center S.B. 2647 By: Middleton Education K-16 4/9/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Texas institutions of higher education currently rely on private, federally recognized accreditors, primarily the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC), to maintain eligibility for federal student aid and institutional legitimacy. These accreditors wield de facto regulatory authority but operate as private nonprofit entities, accountable neither to Texas voters nor to state policymakers. Conflicts have arisen between state policy and accreditors' standards, especially concerning: National precedents such as New York's Board of Regents and Florida's S.B. 7044 highlight the growing momentum for state-level alternatives that retain federal recognition but increase alignment with state educational priorities. As proposed, S.B. 2647 amends current law relating to the accreditation of postsecondary educational institutions and authorizes fees. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Higher Education Coordinating Board in SECTION 1 (Sections 51.375 and 51.391, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 51, Education Code, by adding Subchapters G-1 and G-2, as follows: SUBCHAPTER G-1. QUALITY REVIEW OF ACCREDITING AGENCIES Sec. 51.371. DEFINITIONS. Defines "accrediting agency," "board," "institution of higher education," and "recognized accrediting agency." Sec. 51.372. APPROVAL AND REVIEW OF ACCREDITING AGENCIES. (a) Requires the Texas Higher Education Coordinating Board (THECB) to identify and approve at least three accrediting agencies best suited to serve as accreditors for institutions of higher education. (b) Requires THECB, subject to Subsections (c) and (d), to conduct a biennial evaluation of accrediting agencies approved under Subsection (a). Requires that the evaluation rate each agency as unsatisfactory or satisfactory based on evaluation standards established by THECB rule. Requires THECB to make the evaluation standards available to the public on THECB's Internet website. (c) Requires THECB, if an institution of higher education seeks accreditation from a recognized accrediting agency that THECB has not approved under Subsection (a), to evaluate the agency under Subsection (b) not later than the fifth anniversary of the date the institution receives accreditation from the agency. (d) Requires THECB, if at the time THECB would be required to conduct an evaluation of an accrediting agency under Subsection (b) THECB does not have sufficient information to conduct the evaluation, to obtain the necessary information and conduct the evaluation of the agency as soon as practicable. (e) Requires that THECB's evaluation of an accrediting agency under Subsection (b) include an assessment of whether the agency requires or encourages the institution to take action that conflicts with state law, including Section 51.3525 (Responsibility of Governing Boards Regarding Diversity, Equity, and Inclusion Initiatives). (f) Authorizes THECB to revoke the approval of an accrediting agency under Subsection (a) if THECB determines based on an evaluation under Subsection (b) that the agency should no longer be approved. (g) Requires THECB, not later than November 1 of each even-numbered year, to submit to the governor, the lieutenant governor, the speaker of the house of representatives, the Legislative Budget Board (LBB), and the chairs of the standing legislative committees with primary jurisdiction over higher education and make available to the public on THECB's Internet website a report of the evaluations made under this section. Requires that the report include a ranking of the performance of accrediting agencies approved under Subsection (a) and information regarding any accrediting agency THECB determines should no longer be approved under that subsection. Sec. 51.373. ACCREDITATION OF INSTITUTIONS OF HIGHER EDUCATION. (a) Requires each institution of higher education to, at the institution's expense, seek accreditation by an accrediting agency approved by THECB under Section 51.372(a) with a satisfactory performance rating under Section 51.372(b). (b) Requires an institution of higher education accredited by an accrediting agency that receives an unsatisfactory performance rating under Section 51.372(b) to, at the institution's expense, obtain accreditation from an accrediting agency approved by THECB under Section 51.372(a) with a satisfactory performance rating under Section 51.372(b) not later than the earlier of certain dates. (c) Authorizes an institution of higher education accredited by an accrediting agency with a satisfactory performance rating under Section 51.372(b) to continue to be accredited by that agency for as long as the agency maintains a satisfactory performance rating. Sec. 51.374. NONCOMPLIANCE. (a) Requires THECB, if THECB determines that an institution of higher education has failed to substantially comply with Section 51.373, to provide the institution and each person described by Section 51.372(g) with written notice of the determination. (b) Requires an institution of higher education that receives notice under Subsection (a) to take corrective actions to comply with Section 51.373 not later than the 180th day after the date of receipt of the notice. Requires THECB, if the institution fails to substantially comply with Section 51.373 by that date, to notify the Comptroller of Public Accounts of the State of Texas (comptroller) of the institution's noncompliance. (c) Requires the comptroller, on receipt of notice under Subsection (b), to withhold all state funding from the institution of higher education until THECB notifies the comptroller that the institution is substantially complying with Section 51.373. Sec. 51.375. RULES. Requires THECB to adopt rules as necessary to implement this subchapter. Sec. 51.376. APPLICABILITY OF SUBCHAPTER. Provides that this subchapter expires on the 30th day after the date on which THECB notifies the secretary of state (SOS) that each institution of higher education subject to accreditation by the Texas Accreditation Agency (agency) under Subchapter G-2 is accredited as required by that subchapter. Requires SOS to publish notice of that date in the Texas Register. SUBCHAPTER G-2. TEXAS ACCREDITATION AGENCY Sec. 51.381. DEFINITIONS. Defines "agency," "board," "general academic teaching institution," "institution of higher education," "medical and dental unit," "private or independent institution of higher education," "public junior college," "law school," "legal division," and "medical and dental division." Sec. 51.382. ESTABLISHMENT. (a) Provides that the agency is established to serve as the primary accrediting body for institutions of higher education. (b) Provides that the agency is administratively attached to and supported by THECB. Sec. 51.383. BOARD OF TRUSTEES. (a) Provides that the agency is governed by a board of trustees that consists of 11 members as follows: (1) five members appointed by the governor; (2) two members elected by general academic teaching institutions; (3) two members elected by public junior colleges; (4) one member elected by the medical units of the medical and dental units; and (5) one member elected by the dental units of the medical and dental units. (b) Requires THECB to hold an election to elect each member of the board of trustees described by Subsections (a)(2) through (5). Authorizes each general academic teaching institution, public junior college, and medical and dental unit to nominate a candidate in the election for the applicable trustee position being filled in the election and is entitled to cast one vote in the election. (c) Provides that a vacancy on the board of trustees is filled in the same manner as the initial appointment or election for the applicable position. (d) Provides that trustees serve staggered six-year terms, with the terms of one or two appointed members and the terms of two or three elected members expiring on February 1 of each odd-numbered year. (e) Requires the members of the board of trustees to elect a presiding officer from along its membership. Requires the presiding officer to convene meetings of the board of trustees, coordinate and direct the activities of the agency, and communicate with THECB regarding the activities of the agency. (f) Provides that a trustee is not entitled to compensation but is entitled to reimbursement for the travel expenses incurred by the trustee while transacting agency business, as provided by the General Appropriations Act. (g) Provides that the agency is subject to Chapters 551 (Open Meetings), 552 (Public Information), and 2001 (Administrative Procedure), Government Code. Sec. 51.384. POWERS AND DUTIES. (a) Requires the agency, subject to Section 51.385 or 51.386, to develop, implement, and maintain rigorous accreditation standards for institutions of higher education. Requires that the accreditation standards ensure quality education and institutional integrity based on certain criteria for each institution of higher education. (b) Requires the agency, Subject to Section 51.385 or 51.386, to conduct an evaluation, including an on-site visit, of each institution of higher education and assign an accreditation status to the institution based on findings made during the agency's evaluation. (c) Requires the agency to collaborate with THECB to ensure the accreditation process and criteria are aligned with statewide educational goals. (d) Requires the agency to develop and maintain a publicly accessible database on institutions of higher education evaluated and accredited by the agency, including any findings and recommendations made by the agency regarding the institution. Sec. 51.385. ACCREDITATION OF MEDICAL AND DENTAL SCHOOLS. (a) Requires the agency to establish a division dedicated to accrediting medical and dental units. (b) Requires the medical and dental division to develop accreditation standards specific to medical and dental education that take into consideration clinical training, research, and compliance with state and federal health care regulations. (c) Requires the medical and dental division to collaborate with relevant health care and medical and dental education stakeholders, including the Texas Medical Board, the State Board of Dental Examiners, and the Health and Human Services Commission, to ensure the standards developed under Subsection (b) align with educational and practice requirements. (d) Requires medical and dental division to require a medical and dental unit seeking accreditation to undergo a separate, comprehensive review process that includes an evaluation of clinical sites and an assessment of faculty credentials. Sec. 51.386. ACCREDITATION OF LAW SCHOOLS. (a) Requires the agency to establish a division dedicated to accrediting law schools. (b) Requires the legal division to develop accreditation standards specific to legal education. (c) Requires the legal division to collaborate with relevant legal education stakeholders, including the Board of Law Examiners, to ensure the standards developed under Subsection (b) align with educational and legal practice requirements. (d) Requires the legal division to require a law school seeking accreditation to undergo a separate, comprehensive review process developed by the agency. Sec. 51.387. REPORTS. Requires the agency to submit a report on the status of the agency's activities and institutional compliance: (1) not later than November 1 of each year, to THECB; and (2) not later than November 1 of each even-numbered year, to the governor, the lieutenant governor, the speaker of the house of representatives, the LBB, and the chairs of the standing legislative committees with primary jurisdiction over higher education. Sec. 51.388. VOLUNTARY ACCREDITATION PROCESS. (a) Authorizes an out-of-state postsecondary educational institution or a private or independent institution of higher education to apply for accreditation by the agency. (b) Requires the agency to establish a process by which an institution described by Subsection (a) may apply for voluntary accreditation, allow an institution described by Subsection (a) to request to be accredited through the accreditation process provided by the medical and dental division, and maintain the same academic standards and other standards for voluntary accreditation of an institution described by Subsection (a) as the standards developed for accreditation for institutions of higher education. Sec. 51.389. FEES. (a) Authorizes the agency to collect a fee from an institution of higher education, medical and dental unit, law school, out-of-state postsecondary educational institution, or private or independent institution of higher education undergoing the accreditation process under this subchapter. Provides that a fee collected under this section is authorized to be used only for the agency's operations. (b) Requires the agency and THECB jointly to prescribe the amount of the fee charged for voluntary accreditation under Section 51.388. Sec. 51.390. GIFTS, GRANTS, AND DONATIONS. Authorizes THECB to solicit, accept, and use gifts, grants, and donations from public and private sources for the purposes of this subchapter. Sec. 51.391. RULES. Requires THECB to adopt rules as necessary to implement this subchapter. Sec. 51.392. TRANSITION TO ACCREDITATION BY AGENCY. (a) Requires each institution of higher education, medical and dental unit, and law school, following the expiration of the institution's, unit's, or school's accreditation cycle beginning before January 1, 2027, to become accredited by the agency, the medical and dental division, or the legal division, as applicable. (b) Requires an institution of higher education, medical and dental unit, or law school to submit written notice to the agency of the institution's, unit's, or school's intent to seek accreditation by the agency not later than six months before the date the institution's, unit's, or school's accreditation received before January 1, 2027, is scheduled to expire. (c) Requires the agency to provide guidance and support to institutions of higher education, medical and dental units, and law schools throughout the transition to agency accreditation to minimize disruptions and ensure compliance with this subchapter. (d) Provides that this section applies to an institution of higher education only if the agency is officially recognized as an accrediting agency by the United States Department of Education, a medical and dental unit only if the medical and dental division is officially recognized as an accrediting agency by the United States Department of Education, and a law school only if the legal division is officially recognized as an accrediting agency by the United States Department of Education. (e) Requires THECB, if THECB determines that an institution of higher education, medical and dental unit, or law school has failed to substantially comply with this section, to provide the institution, unit, or school and each person described by Section 51.387(2) with written notice of the determination. (f) Requires an institution of higher education, medical and dental unit, or law school that receives notice under Subsection (e) to take corrective actions to comply with this section not later than the 180th day after the date of receipt of the notice. Requires THECB, if the institution, unit, or school fails to substantially comply with this section by that date, to notify the comptroller of the institution's, unit's, or school's noncompliance. (g) Requires the comptroller, on receipt of notice under Subsection (f), to withhold all state funding from the institution of higher education, medical and dental unit, or law school until THECB notifies the comptroller that the institution, unit, or school is substantially complying with this section. (h) Provides that this section expires September 1, 2037. SECTION 2. Amends Sections 61.003(13) and (15), Education Code, to redefine "recognized accrediting agency" and "private or independent institution of higher education." SECTION 3. Amends Section 61.0515(a), Education Code, to prohibit a student, to earn a baccalaureate degree, from being required by an institution of higher education to complete more than the minimum number of semester credit hours required for the degree by the institution's recognized accrediting agency, rather than by the Southern Association of Colleges and Schools (SACSCOC) or its successor, unless institution determines that there is a compelling academic reason for requiring completion of additional semester credit hours for the degree. SECTION 4. Amends Section 61.05151(a), Education Code, to make a conforming change. SECTION 5. Amends Sections 61.222(a), (b), and (d), Education Code, as follows: (a) Requires THECB to approve only those private or independent colleges or universities that are private or independent institutions of higher education as defined by Section 61.003 (Definitions) as that section existed on January 1, 2025. Deletes existing text requiring THECB to approve only those private or independent colleges or universities that are private or independent institutions of higher education as defined by Section 61.003 or are located within this state and meet the same program standards and accreditation as public institutions of higher education as determined by THECB. (b) Authorizes THECB to temporarily approve a private or independent institution of higher education as defined by Section 61.003 as that section existed on January 1, 2025, that previously qualified under Subsection (a) but no longer holds the same accreditation as public institutions of higher education. Requires an institution, to qualify under this subsection, to meet certain criteria, including being accredited by a recognized accrediting agency, rather than an accreditor recognized by THECB. (d) Makes conforming changes to this subsection. SECTION 6. Amends Section 61.8235(f), Education Code, to make a conforming change. SECTION 7. Amends Section 107.151(c), Education Code, to authorize the Texas Woman's University at Dallas, notwithstanding any other provision of Subchapter G (Texas Woman's University at Dallas), to operate as a general academic teaching institution only after THECB certifies that the university is accredited by a recognized accrediting agency, as defined by Section 61.003, rather than by SACSCOC, and has been approved by THECB to offer one or more degree programs. SECTION 8. Amends Section 107.201(c), Education Code, to authorize the Texas Woman's University at Houston, notwithstanding any other provision of Subchapter H (Texas Woman's University at Houston), to operate as a general academic teaching institution only after THECB certifies that the university is accredited by a recognized accrediting agency, as defined by Section 61.003, rather than by SACSCOC, and has been approved by THECB to offer one or more degree programs. SECTION 9. Amends Section 130.301, Education Code, by adding Subdivision (3) to define "recognized accrediting agency." SECTION 10. Amends Section 130.305, Education Code, to make a conforming change. SECTION 11. Amends Section 130.307(c), Education Code, to make a conforming change. SECTION 12. (a) Requires, not later than January 1, 2026, the governor to make the initial appointments of members of the board of trustees of the agency as required by Section 51.383(a), Education Code, as added by this Act, and THECB to hold the initial elections required by Section 51.383(b), Education Code, as added by this Act. (b) Requires the governor, in making the initial appointments, to appoint two trustees to initial terms expiring February 1, 2031, two trustees to initial terms expiring February 1, 2029, and one trustee to an initial term expiring February 1, 2027. (c) Requires the commissioner of education, after the initial elections for trustees, by lot to determine when the terms of the initial elected trustees expire, with the initial terms of two elected trustees expiring February 1, 2031, two initial terms expiring February 1, 2029, and two initial terms expiring February 1, 2027, except that the initial terms of the two members elected under Section 51.383(a)(2) or (3) are prohibited from expiring in the same year. SECTION 13. (a) Defines "agency," "legal division," and "medical and dental division." (b) Requires the agency, the medical and dental division, and the legal division, not later than September 1, 2026, to develop and present the agency's and divisions' respective accrediting processes and criteria to THECB for review. (c) Requires the agency, the medical and dental division, and the legal division, not later than December 1, 2026, to adopt and submit the agency's and divisions' respective accrediting processes and criteria to the legislature. (d) Requires the agency, the medical and dental division, and the legal division, not later than January 1, 2027, to request recognition as an accrediting agency for institutions of higher education, medical and dental units, or law schools, as applicable, from the United States Department of Education and perform all actions and submit to the department all materials necessary for that purpose. SECTION 14. Requires the agency, notwithstanding Section 51.387, Education Code, as added by this Act, to submit the initial report: (1) required by Section 51.387(1), Education Code, as added by this Act, not later than November 1, 2027; and (2) required by Section 51.387(2), Education Code, as added by this Act, not later than November 1, 2028. SECTION 15. Makes application of Section 51.388, Education Code, as added by this Act, prospective to January 1, 2028. SECTION 16. Effective date: September 1, 2025.