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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of certain degree-granting |
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postsecondary educational institutions by the Texas Higher |
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Education Coordinating Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 61.303, Education Code, is amended to |
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read as follows: |
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Sec. 61.303. EXEMPTIONS; REVOCATION OF OR CONDITIONS ON |
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EXEMPTION STATUS OR CERTIFICATE OF AUTHORIZATION. (a) Unless |
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specifically provided otherwise, the [The] provisions of this |
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subchapter do not [in any way] apply to an institution that [which] |
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is fully accredited by and in good standing with a recognized |
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accrediting agency, or an institution or degree program that has |
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received approval by a state agency authorizing the institution's |
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graduates to take a professional or vocational state licensing |
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examination administered by that agency. The granting of |
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permission by a state agency to a graduate of an institution to take |
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a licensing examination does not by itself constitute approval of |
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the institution or degree program required for an exemption under |
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this subsection. |
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(b) The exemptions provided by Subsection (a) apply only to |
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the degree level for which an institution is accredited, and if an |
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institution offers to award a degree at a level for which it is not |
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accredited, the exemption does not apply. |
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(c) The board may issue to an [An] exempt institution or |
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person [may be issued] a certificate of authorization to grant |
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degrees. The board may adopt rules regarding a process to allow an |
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exempt institution or person to apply for and receive a certificate |
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of authorization under this section. |
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(d) The board by rule may require an exempt institution or |
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person to ensure that the financial resources and financial |
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stability of the institution or person are adequate to provide |
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education of a good quality and to fulfill the institution's or |
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person's commitments to its enrolled students and may require the |
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institution or person to provide to the board documentation of the |
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institution's or person's compliance with those requirements. |
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Rules adopted under this subsection must: |
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(1) require the institution or person to maintain |
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reserves, lines of credit, or surety instruments that, when |
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combined with tuition and fee receipts, are sufficient to allow the |
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institution or person to fulfill its educational obligations to its |
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enrolled students if the institution or person is unable to admit |
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new students in an academic year for any reason; and |
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(2) require that the financial resources maintained |
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under Subdivision (1) be conditioned to allow only the board to |
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withdraw funds for the benefit of the institution's or person's |
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enrolled students under the circumstance described by Subdivision |
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(1). |
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(e) To enable the board to verify the conditions under which |
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a certificate of authorization issued under this section is held, |
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the board by rule may require an exempt institution or person to |
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report to the board on a continuing basis other appropriate |
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information in addition to the documentation required under |
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Subsection (d). |
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(f) An exempt institution or person continues [would
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continue] in that status only if the institution or person |
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maintains [so long as it maintained] accreditation by, and remains |
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in good standing with, a recognized accrediting agency or otherwise |
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meets [met] the provisions of Subsection (a). |
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(g) [(e)] The board by rule shall provide for due process |
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and shall provide procedures for revoking or placing conditions on |
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the exemption status of an institution or person or for revoking or |
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placing conditions on a previously issued certificate of |
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authorization. |
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(h) Under the rules described by Subsection (g), the board |
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may revoke or place conditions on an institution's or person's |
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exemption status or certificate of authorization only if the board |
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has reasonable cause to believe that the institution or person has |
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violated this subchapter or any rule adopted under this subchapter. |
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(i) Before revoking or placing conditions on an |
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institution's or person's exemption status or certificate of |
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authorization under Subsection (h), the board must provide to the |
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institution or person written notice of the board's impending |
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action and include the grounds for that action. |
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(j) If the board places conditions on an institution's or |
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person's exemption status or certificate of authorization under |
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Subsection (h), until the board removes the conditions, the board |
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may reexamine the applicable institution or person at least twice |
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annually following the date the board provided notice under |
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Subsection (i). |
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(k) [(f)] A private postsecondary educational institution |
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may not establish or operate a branch campus, extension center, or |
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other off-campus unit in Texas except as provided by this |
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subsection or the rules of the board. This subsection does not |
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apply to a private or independent institution of higher education |
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as defined by Section 61.003. |
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SECTION 2. Subchapter G, Chapter 61, Education Code, is |
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amended by adding Section 61.3075 to read as follows: |
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Sec. 61.3075. REQUIRED FINANCIAL RESOURCES. The board by |
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rule may require an institution operating under a certificate of |
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authority, or seeking to operate under a certificate of authority, |
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to ensure that the financial resources and financial stability of |
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the institution are adequate to provide education of a good quality |
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and to fulfill the institution's commitments to its enrolled |
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students and may require the institution to provide to the board |
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documentation of the institution's compliance with those |
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requirements. Rules adopted under this subsection must: |
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(1) require the institution to maintain reserves, |
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lines of credit, or surety instruments that, when combined with |
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tuition and fee receipts, are sufficient to allow the institution |
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to fulfill its educational obligations to its enrolled students if |
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the institution is unable to admit new students in an academic year |
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for any reason; and |
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(2) require that the financial resources maintained |
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under Subdivision (1) be conditioned to allow only the board to |
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withdraw funds for the benefit of the institution's enrolled |
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students under the circumstance described by Subdivision (1). |
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SECTION 3. The Texas Higher Education Coordinating Board |
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shall adopt the rules required by Subchapter G, Chapter 61, |
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Education Code, as amended by this Act, as soon as practicable after |
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the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2017. |