By: Middleton, Creighton S.B. No. 2335     A BILL TO BE ENTITLED   AN ACT   relating to the accreditation of public institutions of higher   education.          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)  "Coordinating board" means the Texas Higher   Education Coordinating Board.                (4)  "Institution of higher education" has the meaning   assigned by Section 61.003.          Sec. 51.372.  TEXAS HIGHER EDUCATION ACCREDITATION   COMMISSION. (a)  The commission is administratively attached to   the coordinating board and 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)  Members serve four-year terms and may not be removed   except by the person who appointed the member for wilful neglect of   duty or malfeasance.          (d)  The governor shall appoint one member of the commission   as the presiding officer.          (e)  The presiding officer shall:                (1)  convene meetings of the commission; and                (2)  coordinate and direct the activities of the   commission.          (f)  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.          (g)  A person may not serve on the commission if the person   was employed by an accreditor recognized by the United States   Department of Education at any time during the five years preceding   the date on which the person would be appointed to the commission.          (h)  A member of the commission is not entitled to   compensation but is entitled to reimbursement for the travel   expenses incurred by the member while transacting commission   business, as provided by the General Appropriations Act.          (i)  The commission is subject to Chapters 551, 552, and   2001, Government Code.          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)  Subject to Subsections (c) and (d), 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 on a publicly accessible Internet website.          (c)  If an institution of higher education seeks   accreditation from a recognized accrediting agency, as defined by   Section 61.003, that the commission has not reviewed, the   commission shall evaluate the accrediting agency under Subsection   (b) not later than the fifth anniversary of the date the institution   receives accreditation from the accrediting agency.          (d)  If at the time the commission would be required to   conduct an evaluation of an accrediting agency under Subsection (b)   the commission does not have sufficient information to conduct the   evaluation, the commission shall conduct the evaluation of the   accrediting agency as soon as practicable after obtaining the   necessary information.          (e)  The commission's evaluation of each approved   accrediting agency must include an assessment of:                (1)  evidence demonstrating the agency's focus on   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)  evidence of 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.          (f)  The commission may revoke the approval of an approved   accrediting agency if the commission determines based on an   evaluation under this section that the agency should no longer be   approved.          (g)  Not later than November 1 of each even-numbered year,   the commission shall submit 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 and   publish on a publicly accessible Internet website a report of the   evaluation made under this section. 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 not later than the   earlier of:                (1)  the fifth anniversary of the date the agency   receives the unsatisfactory performance rating; or                (2)  a date determined by coordinating board rule.          (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 may   continue to be accredited by that accrediting agency for as long as   the agency maintains an exemplary performance rating. If as a   result of an evaluation under Section 51.373 the commission assigns   the agency a rating other than exemplary, the institution shall, at   the institution's expense, obtain accreditation from a different   approved accrediting agency not later than:                (1)  if the agency receives a satisfactory performance   rating, the 15th anniversary of the date the agency receives a   satisfactory performance rating; or                (2)  if the agency receives an unsatisfactory   performance rating, the date described by Subsection (b).          Sec. 51.375.  NOTICE OF NONCOMPLIANCE. (a) If the   commission determines that an institution of higher education has   failed to substantially comply with the requirements of Section   51.374, the commission shall provide the institution with written   notice of the institution's substantial noncompliance with that   section.          (b)  An institution of higher education that receives notice   under Subsection (a) shall take corrective actions to comply with   the requirements of Section 51.374 not later than the 180th day   after the date of receipt of the notice. If the institution fails   to substantially comply with the requirements of Section 51.374 by   that date, the commission shall notify the comptroller of the   institution's noncompliance.          (c)  On receipt of notice under Subsection (b), the   comptroller shall withhold all state funding from the noncompliant   institution of higher education until the commission notifies the   comptroller that the institution is substantially complying with   the requirements of Section 51.374.          Sec. 51.376.  RULES. The coordinating board shall adopt   rules as necessary to implement this subchapter.          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.  (a) In this section, "commission" means the   Texas Higher Education Accreditation Commission.          (b)  Notwithstanding any other section of this Act, in a   state fiscal year, the commission is not required to implement a   provision found in another section of this Act that is drafted as a   mandatory provision imposing a duty on the commission to take an   action unless money is specifically appropriated to the Texas   Higher Education Coordinating Board for that fiscal year to carry   out that duty. The commission may implement the provision in that   fiscal year to the extent other funding is available to the   commission to do so.          (c)  If, as authorized by Subsection (b) of this section, the   commission does not implement the mandatory provision in a state   fiscal year, the Texas Higher Education Coordinating Board, in its   legislative budget request for the next state fiscal biennium,   shall certify that fact to the Legislative Budget Board and include   a written estimate of the costs of implementing the provision in   each year of that next state fiscal biennium.          (d)  This section and the suspension of the commission's duty   to implement a mandatory provision of this Act, as provided by   Subsection (b) of this section, expire and the duty to implement the   mandatory provision resumes on September 1, 2027.          SECTION 4.  This Act takes effect September 1, 2023.