Relating to requiring that competency-based baccalaureate degree programs be offered at certain public institutions of higher education.
High Cost
Effective:2025-06-20
Enforcing Agencies
Texas Higher Education Coordinating Board • University System Administrations
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline:2026-2027 Academic Year (Programs must be operational and available to students).
Agency Rulemaking:Q4 2025 – Q1 2026. The Texas Higher Education Coordinating Board (THECB) must adopt rules defining "high demand" fields and the specific formula for "average cost of attendance" prior to the 2026 implementation.
Immediate Action Plan
Immediate: Legal and Government Affairs teams must register to comment on THECB rulemaking dockets to influence the definition of "Average Cost of Attendance."
Q3 2025: Audit existing curricula in likely high-demand fields (Business, IT, Healthcare) to determine feasibility of conversion to a competency-based model.
Q4 2025: Issue notices to third-party vendors regarding potential contract restructuring due to statutory price controls.
Q1 2026: Finalize CBE pricing structure and submit program proposals to THECB.
Operational Changes Required
Contracts
Vendor Renegotiation: Review all Master Services Agreements (MSAs) with Online Program Managers (OPMs) and courseware providers. Revenue-share models must be recalculated to ensure the total cost to the student remains under the 50% cap.
Faculty Agreements: Revise faculty handbooks and employment contracts to define roles for "competency evaluators" or "academic coaches," which differ legally and operationally from traditional tenure-track teaching loads.
Hiring/Training
Assessment Training: Academic staff require immediate training on competency-based assessment (mastery verification) versus traditional credit-hour grading.
Financial Aid Staffing: Financial aid officers must be trained on a distinct billing category for CBE students to prevent accidental overcharging that would violate the statutory cap.
Reporting & Record-Keeping
Program Approval: Systems must submit new CBE program proposals in high-demand fields to the THECB for approval prior to the 2026-2027 academic year.
Inflation Logs: Beginning with the 2027-2028 academic year, institutions must document the application of the CPI-U inflation adjustment to the tuition cap annually.
Mastery Documentation: Record retention policies must be updated to archive student "artifacts of mastery" for accreditation purposes, as traditional transcripts will not suffice.
Fees & Costs
Price Cap Enforcement: Bursars must implement a hard cap on total tuition and fees for these specific programs, set at 50% of the average cost of attendance.
Cost Modeling: Finance departments must immediately calculate the "average cost of attendance" based on current data to determine the maximum allowable price point for the new degrees.
Strategic Ambiguities & Considerations
Definition of "Average Cost of Attendance": The statute caps price at 50% of this metric. It is currently unclear if THECB rules will define this as "Tuition & Fees only" or "Total Cost" (including room/board). If defined narrowly as Tuition & Fees, the allowable revenue per student will be extremely low.
The $10,000 vs. 50% Discrepancy: The Legislative Budget Board's fiscal note references a flat $10,000 cap, while the extracted data references the percentage model. Agency rulemaking will settle which formula prevails; prepare financial models for both scenarios.
"High Demand" Designation: The specific degrees required are not listed in the statute. If THECB designates high-overhead fields (e.g., Nursing, Engineering) as "high demand," the 50% price cap may be financially unsustainable without cross-subsidization.
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The bill author has informed the committee that, as higher education costs continue to rise, Texas students and families are increasingly looking for degree pathways that are both affordable and flexible and that competency-based education (CBE) is an innovative approach that allows students to progress through coursework based on their ability to master a subject, rather than on the amount of time spent in a traditional classroom. Moreover, the bill author has informed the committee that this model offers flexibility for students who may already have real-world experience and who are working full-time, raising families, or seeking to reskill and upskill in a rapidly changing job market. The bill author has further informed the committee that, even though some institutions in Texas already offer CBE degrees, access remains limited and availability varies widely by region and institution and that CBE programs are not always aligned with high-demand careers in Texas. The cost of these programs can be a barrier to entry for many students, and expanding access to affordable CBE pathways could improve completion rates, reduce student loan debt, and better prepare students for Texas' growing workforce needs. C.S.H.B. 4848 seeks to address these issues by requiring each public higher education system in Texas to ensure one or more of its institutions offers competency-based baccalaureate degree programs in high-demand fields and by ensuring that these programs are affordable by capping their total cost to a student at $10,000, with an annual adjustment for inflation.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the Texas Higher Education Coordinating Board in SECTION 1 of this bill.
ANALYSIS
C.S.H.B. 4848 amends the Education Code to require the system administration of each university system, subject to Texas Higher Education Coordinating Board (THECB) approval of academic programs under state law, to ensure that one or more public institutions of higher education in the system offer competency-based baccalaureate degree programs in each field of study in high demand, as determined by THECB rule. The bill defines "competency-based baccalaureate degree program" by reference to statutory provisions relating to the Texas Competency-Based Education Grant Program.
C.S.H.B. 4848 caps at $10,000 the total cost of a competency-based baccalaureate degree program to an enrolled student. However, the bill requires the THECB, beginning with the 2027-2028 academic year, to annually adjust that cap for the preceding academic year by the rate of inflation for the preceding academic year, as determined on the basis of changes in the Consumer Price Index for All Urban Consumers (CPI-U). The bill authorizes the THECB to adopt rules as necessary to administer the bill's provisions.
C.S.H.B. 4848 applies beginning with the 2026-2027 academic year.
EFFECTIVE DATE
September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 4848 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
The substitute includes a requirement absent from the introduced for the THECB, beginning with the 2027-2028 academic year, to annually adjust the $10,000 cap on the total cost of a competency-based baccalaureate degree program for the preceding academic year by the rate of inflation for that year, as determined on the basis of changes in the CPI-U.
Honorable Terry M. Wilson, Chair, House Committee on Higher Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4848 by Harris Davila (Relating to requiring that competency-based baccalaureate degree programs be offered at certain public institutions of higher education.), As Introduced
The fiscal implications of the bill cannot be determined due to the unknown number of fields of study in high demand for which a competency-based baccalaureate degree program would be required.
The bill would require the system administration of each university system to ensure that one or more institutions of higher education in the system offer competency-based baccalaureate degree programs in each field of study in high demand, as determined by the Higher Education Coordinating Board rule. The bill would prohibit such a competency-based baccalaureate degree program offered from exceeding a total cost of $10,000 to an enrolled student.
While the fiscal impact for creating such a degree program would likely be insignificant, it cannot be determined due to the unknown number of fields of study in high demand for which a competency-based baccalaureate degree program would be required.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td >
710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College System Administration, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 775 Texas Woman's University System, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
LBB Staff: b > td >
JMc, FV, LBO, GO
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Public university systems in Texas must fundamentally restructure degree delivery and pricing models to offer competency-based baccalaureate (CBE) degrees in "high demand" fields by the 2026-2027 academic year. The law imposes a strict statutory price cap on these degrees—limiting total student cost to 50% of the institution's average cost of attendance—requiring immediate renegotiation of vendor contracts and internal financial modeling. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: 2026-2027 Academic Year (Programs must be operational and available to students).
Q
Who authored HB4848?
HB4848 was authored by Texas Representative Caroline Harris Davila during the Regular Session.
Q
When was HB4848 signed into law?
HB4848 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB4848?
HB4848 is enforced by Texas Higher Education Coordinating Board and University System Administrations.
Q
What is the cost impact of HB4848?
The cost impact of HB4848 is estimated as "high". This may vary based on industry and implementation requirements.
Q
What topics does HB4848 address?
HB4848 addresses topics including education, education--higher, education--higher--institutions & programs, labor and labor--workforce development.
Legislative data provided by LegiScanLast updated: November 25, 2025
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