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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB1868

Regular Session

Relating to a study on changes to performance tier funding for dual credit or dual enrollment courses under the public junior college state finance program and the capacity of the state's workforce to teach dual credit or dual enrollment courses.

Government Affairs & Regulatory Compliance Analysis

HB1868: Government Affairs Overview

HB1868 mandates the Texas Higher Education Coordinating Board (THECB) to conduct a feasibility study on lowering the performance tier funding threshold for dual credit courses from 15 to 9 credit hours. While immediate funding formulas remain unchanged, Community Colleges and their workforce partners must prepare for aggressive data collection regarding instructor capacity and credentialing barriers to influence the 2027 legislative session.

Rep. Terri Leo-Wilson·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-20
Business Impact

Who HB1868 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-06-20). Review during normal business planning.

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Education

Affected business types:

  • School districts
  • Charter schools
  • Private schools
  • Education service providers
View all education legislation

Key Operational Considerations

  • 1Memorandums of Understanding (MOUs): Review current multi-year agreements between Junior College Districts and ISDs or Industry Partners.
  • 2Credentialing Audits: You must track *why* potential adjunct instructors from industry partners are rejected. The study specifically requests data on "barriers to certification."
  • 3Workforce Rosters: Maintain a distinct roster of industry professionals who are willing to teach but currently ineligible due to accreditation rules; this data is now a strategic asset for the study.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB1868
Relating to a study on changes to performance tier funding for dual credit or dual enrollment courses under the public junior college state finance pr...
Low Urgency
Heavily Contested
House Vote103 - 30
YEA
NAY
77% in favor133 voting
Senate Vote29 - 2
YEA
94% in favor31 voting
32
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
THECB
Primary Author: Rep. Terri Leo-Wilson
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate).
  • Compliance Deadline: December 1, 2026 is the hard deadline for the THECB report; expect data calls to member institutions to begin Q3/Q4 2025.
  • Agency Rulemaking: The THECB will not issue new administrative rules immediately but will issue guidance on data collection methodologies for the study. The critical "regulatory gray zone" exists between now and the 2027 legislative session, where findings will likely dictate future funding statutes.

Immediate Action Plan

  • 1. Isolate Data: Immediately task your Institutional Research (IR) or HR teams to segregate data on dual credit instructor applicants who were rejected in the last 24 months.
  • 2. Model Revenue: Have your CFO run a pro-forma budget assuming a 9-hour funding threshold to understand the financial stakes for your institution in 2027.
  • 3. Update MOUs: Add specific language to all new dual credit partnership contracts addressing potential statutory funding changes.
  • 4. Engage THECB: Contact the THECB’s Strategic Planning division to request the specific data dictionary and submission format for the HB1868 study to avoid last-minute data scrubbing.

Operational Changes Required

Contracts

  • Memorandums of Understanding (MOUs): Review current multi-year agreements between Junior College Districts and ISDs or Industry Partners.
  • "Change in Law" Provisions: Insert clauses that trigger automatic renegotiation of revenue-sharing models if the state lowers the funding threshold to 9 hours in 2027. Do not lock in current revenue splits for future windfalls.

Hiring/Training

  • Credentialing Audits: You must track *why* potential adjunct instructors from industry partners are rejected. The study specifically requests data on "barriers to certification."
  • Workforce Rosters: Maintain a distinct roster of industry professionals who are willing to teach but currently ineligible due to accreditation rules; this data is now a strategic asset for the study.

Reporting & Record-Keeping

  • Data Aggregation: Prepare to report student progression data specifically comparing cohorts completing 9 credit hours versus 15 credit hours.
  • Barrier Documentation: Create a formal log of "Barriers to Certification" for workforce instructors (e.g., lack of Master’s degree, scheduling conflicts, pay disparity) to submit to the THECB.

Fees & Costs

  • No Immediate Impact: The $1.1 billion cost referenced in the Fiscal Note applies to the *implementation* of the funding change, not this study. There are no new fees for stakeholders, only administrative costs associated with data compliance.

Strategic Ambiguities & Considerations

  • Definition of "Barriers": The statute does not define "barriers to certification." The THECB has discretion to interpret this as strictly academic (accreditation issues) or operational (low adjunct pay). Stakeholders must advocate for the inclusion of operational barriers to ensure the study reflects reality.
  • "Equivalent" Hours: The study applies to "9 semester credit hours *or the equivalent*." For workforce and continuing education (CE) programs, the conversion formula for contact-hour equivalence is undefined in this specific context. This ambiguity puts trade-based dual credit funding at risk if the conversion rate is set unfavorably.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 15, 2025
Passed House
Apr 30, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsEducationEducation--higherEducation--higher--financeEducation--junior College DistrictsInterim StudiesLaborLabor--workforce DevelopmentHigher Education Coordinating Board, Texas
03

House Authors

Rep. Terri Leo-WilsonRepublican · Primary Author
Joint Authors
Coauthors (1)

Senate Sponsor

Sen. Judith ZaffiriniDemocrat · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Terri Leo-Wilson

View all bills by Rep. Terri Leo-Wilson

Related by Topic

View more Education legislation
Quick Reference

Frequently Asked Questions

Common questions about HB1868

Q

What does Texas HB1868 do?

HB1868 mandates the Texas Higher Education Coordinating Board (THECB) to conduct a feasibility study on lowering the performance tier funding threshold for dual credit courses from 15 to 9 credit hours. While immediate funding formulas remain unchanged, Community Colleges and their workforce partners must prepare for aggressive data collection regarding instructor capacity and credentialing barriers to influence the 2027 legislative session.

Q

Who authored HB1868?

HB1868 was authored by Texas Representative Terri Leo-Wilson during the Regular Session.

Q

When was HB1868 signed into law?

HB1868 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB1868?

HB1868 is enforced by Texas Higher Education Coordinating Board (THECB).

Q

How significant are the changes in HB1868?

The regulatory priority for HB1868 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB1868?

The cost impact of HB1868 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB1868 address?

HB1868 addresses topics including education, education--higher, education--higher--finance, education--junior college districts and interim studies.

Q

What are the key dates for HB1868?

Key dates for HB1868: Effective date is 2025-06-20. Rulemaking: Submit a report to the legislature detailing the feasibility, fiscal implications, and policy impacts of lowering dual credit performance tier funding thresholds from 15 to 9 credit hours. (2026-12-01). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB1868?

HB1868 primarily affects employers and workforce development organizations. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026