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.