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.