SB530

Regular Session

Relating to the accreditation of certain postsecondary educational institutions in this state or of certain programs offered by those institutions.

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Higher Education Coordinating Board (THECB)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: Immediate upon effective date for institutions submitting new degree program applications; ongoing for accreditation renewal cycles.
Agency Rulemaking: High Priority. The THECB must formally define and publish the list of "recognized accrediting agencies." Until this rulemaking is finalized (expected Q4 2025 – Q1 2026), institutions exist in a regulatory gray zone regarding which agencies satisfy state requirements.

Immediate Action Plan

1. Conduct a "Ctrl+F" Audit: Immediately search all active bond covenants, student handbooks, and articulation agreements for the term "SACS" and flag for legal review.
2. Freeze Accreditation Changes: Do not initiate a switch to a new accreditor until THECB publishes its final list of recognized agencies.
3. Update Board Liability Insurance: Verify that D&O insurance policies cover Regents/Trustees for decisions related to accreditation changes, specifically regarding potential loss of federal funding.
4. Revise Junior College Proposals: If you are a Junior College currently drafting a baccalaureate proposal, rewrite the accreditation section to reference "THECB-recognized agencies" rather than SACS specifically.

Operational Changes Required

Contracts

Critical Audit Required: You must review three specific contract types for explicit references to "SACS" or "Southern Association of Colleges and Schools":

1. Bond Indentures & Loan Agreements: Many financing covenants define an "Event of Default" as a loss of SACS accreditation. These must be amended to reference "THECB-recognized accreditation."
2. Articulation & Transfer Agreements: Contracts with partner institutions often condition credit acceptance on SACS accreditation. These require renegotiation to ensure credits remain transferable if accreditors change.
3. Vendor/TPM Agreements: Third-party program manager contracts often tie performance metrics to SACS standards.

Hiring/Training

Faculty Credentialing: If your institution transitions to a new accreditor, Human Resources must overhaul faculty qualification standards. SACS guidelines for instructor credentials differ from other regional or national agencies; ensure your Faculty Handbook aligns with the *current* accreditor's standards to avoid audit findings.

Reporting & Record-Keeping

Junior College Baccalaureate Plans: Under amended Section 130.307(c), public junior colleges seeking authorization for baccalaureate programs must now submit a long-term financial plan specifically addressing accreditation acquisition from a THECB-recognized agency.
Due Diligence Files: Boards of Regents must maintain administrative records justifying any decision to switch accreditors, including cost-benefit analyses and alignment with federal Title IV (financial aid) requirements.

Fees & Costs

Transition Costs: While the legislative fiscal note indicates "no significant fiscal implication to the State," the cost to *institutions* to switch accreditors is substantial. Budget for application fees, site visit travel costs, and internal staff hours for self-studies if a switch is pursued.

Strategic Ambiguities & Considerations

Federal vs. State Conflict: The law requires THECB to identify recognized agencies. If THECB recognizes an agency that the U.S. Department of Education (USDOE) does not fully recognize for Title IV purposes, institutions could jeopardize access to Pell Grants and federal student loans. Monitor THECB rulemaking to ensure total alignment with USDOE lists.
"Compelling Academic Reason": The bill allows institutions to exceed credit hour caps for a "compelling academic reason." As this standard was previously interpreted through SACS precedents, THECB must now clarify if this definition will change or remain standardized across different accreditors.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

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.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsEducation Education--higher Education--higher--institutions & Programs Education--junior College Districts Higher Education Coordinating Board, Texas Education--higher--student Financial Aid

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 530
89R5569 CXP-D	By: Sparks
	Education K-16
	3/31/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 2019, the U.S. Department of Education amended federal rules to no longer require institutions of higher education to use their regional accreditor. Instead, colleges and universities are allowed to be accredited by any nationally recognized accreditor. However, there are parts of code that still require a Texas institutions of higher education to be accredited by their regional accreditor, the Southern Association of College and Schools (SACS). This legislation removes the statutory requirements for institutions of higher education to be accredited by the Southern Association of Colleges and Schools.

As proposed, S.B. 530 amends current law relating to the accreditation of certain postsecondary educational institutions in this state or of certain programs offered by those institutions.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 61.003(13), Education Code, to redefine "recognized accrediting agency."

SECTION 2. Amends Section 61.0515(a), Education Code, as follows:

(a) Prohibits a student, to earn a baccalaureate degree, from being required by a general academic teaching institution to complete more than the minimum number of semester credit hours required for the degree by the institution's recognized accrediting agency, rather than the Southern Association of Colleges and Schools or its successor, unless the institution determines that there is a compelling academic reason for requiring completion of additional semester credit hours for the degree.

SECTION 3. Amends Section 61.05151(a), Education Code, to make a conforming change.

SECTION 4. Amends Section 61.8235(f), Education Code, to make a conforming change.

SECTION 5. Amends Section 107.151(c), Education Code, to make a conforming change.

SECTION 6. Amends Section 107.201(c), Education Code, to make a conforming change.

SECTION 7. Amends Section 130.301, Education Code, by adding Subdivision (3) to define "recognized accrediting agency."

SECTION 8. Amends Section 130.305, Education Code, to make a conforming change.

SECTION 9. Amends Section 130.307(c), Education Code, to make a conforming change.

SECTION 10. Effective date: September 1, 2025.

Senate Authors

Sen. Kevin SparksRepublican · Primary Author

House Sponsors

Rep. Joanne ShofnerRepublican · Primary Sponsor

Cosponsors (12)

Bill Text(with markup)

S.B. No. 530

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the accreditation of certain postsecondary educational
	institutions in this state or of certain programs offered by those
	institutions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 61.003(13), Education Code, is amended
	to read as follows:
	(13) "Recognized accrediting agency" means [~~the~~
	~~Southern Association of Colleges and Schools and~~] any [~~other~~]
	association or organization so designated by the board.
	SECTION 2. Section 61.051(a), Education Code, is amended to
	read as follows:
	(a) The board represents the highest authority in the state
	in matters of public higher education and is charged with the duty
	to take an active part in promoting quality education throughout
	the state by:
	(1) providing a statewide perspective to ensure the
	efficient and effective use of higher education resources and to
	eliminate unnecessary duplication;
	(2) developing and evaluating progress toward a
	long-range master plan for higher education and providing analysis
	and recommendations to link state spending for higher education
	with the goals of the long-range master plan;
	(3) collecting and making accessible data on higher
	education in the state and aggregating and analyzing that data to
	support policy recommendations;
	(4) making recommendations to improve the efficiency
	and effectiveness of transitions, including between high school and
	postsecondary education, between institutions of higher education
	for transfer purposes, and between postsecondary education and the
	workforce; [~~and~~]
	(5) administering programs and trusteed funds for
	financial aid and other grants as necessary to achieve the state's
	long-range goals and as directed by the legislature; and
	(6) adopting rules or taking other action necessary to
	ensure that each institution of higher education is properly
	accredited as required to participate in the federal financial aid
	program under 20 U.S.C. Section 1070a and other federal student
	financial assistance programs.
	SECTION 3. Section 61.0515(a), Education Code, is amended
	to read as follows:
	(a) To earn a baccalaureate degree, a student may not be
	required by a general academic teaching institution to complete
	more than the minimum number of semester credit hours required for
	the degree by the institution's recognized accrediting agency
	[~~Southern Association of Colleges and Schools or its successor~~]
	unless the institution determines that there is a compelling
	academic reason for requiring completion of additional semester
	credit hours for the degree.
	SECTION 4. Section 61.05151(a), Education Code, is amended
	to read as follows:
	(a) To earn an associate degree, a student may not be
	required by an institution of higher education to complete more
	than the minimum number of semester credit hours required for the
	degree by the institution's recognized accrediting agency
	[~~Southern Association of Colleges and Schools or its successor~~]
	unless the institution determines that there is a compelling
	academic reason for requiring completion of additional semester
	credit hours for the degree.
	SECTION 5. Section 61.8235(f), Education Code, is amended
	to read as follows:
	(f) A student enrolled in a board-established program of
	study who transfers from a public junior college, public state
	college, or public technical institute to another public junior
	college, public state college, or public technical institute that
	offers a similar program, regardless of whether the institution has
	adopted the board-established program of study, shall receive
	academic credit from the institution to which the student
	transferred for each of the courses that the student has
	successfully completed in the program of study curriculum. Unless
	otherwise required by the institution's recognized accrediting
	agency [~~Commission on Colleges of the Southern Association of~~
	~~Colleges and Schools~~], the student may complete the program of
	study at the institution to which the student transferred by
	completing only the remaining number of semester credit hours the
	student would need to complete the program of study at the
	institution from which the student transferred.
	SECTION 6. Section 107.151(c), Education Code, is amended
	to read as follows:
	(c) Notwithstanding any other provision of this subchapter,
	the university may operate as a general academic teaching
	institution only after the Texas Higher Education Coordinating
	Board certifies that the university is accredited by a recognized
	accrediting agency, as defined by Section 61.003, [~~the Southern~~
	~~Association of Colleges and Schools Commission on Colleges~~] and has
	been approved by the coordinating board to offer one or more degree
	programs. Until the coordinating board certifies that the
	conditions of this subsection have been met, the board of regents
	may operate a branch campus of Texas Woman's University in the city
	of Dallas.
	SECTION 7. Section 107.201(c), Education Code, is amended
	to read as follows:
	(c) Notwithstanding any other provision of this subchapter,
	the university may operate as a general academic teaching
	institution only after the Texas Higher Education Coordinating
	Board certifies that the university is accredited by a recognized
	accrediting agency, as defined by Section 61.003, [~~the Southern~~
	~~Association of Colleges and Schools Commission on Colleges~~] and has
	been approved by the coordinating board to offer one or more degree
	programs. Until the coordinating board certifies that the
	conditions of this subsection have been met, the board of regents
	may operate a branch campus of Texas Woman's University in the city
	of Houston.
	SECTION 8. Section 130.301, Education Code, is amended by
	adding Subdivision (3) to read as follows:
	(3) "Recognized accrediting agency" has the meaning
	assigned by Section 61.003.
	SECTION 9. Section 130.305, Education Code, is amended to
	read as follows:
	Sec. 130.305. ACCREDITATION. A public junior college
	offering a baccalaureate degree program under this subchapter must
	meet all applicable accreditation requirements of a recognized
	accrediting agency [~~the Commission on Colleges of the Southern~~
	~~Association of Colleges and Schools~~].
	SECTION 10. Section 130.307(c), Education Code, is amended
	to read as follows:
	(c) Before a public junior college may be authorized to
	offer a baccalaureate degree program under this subchapter, the
	public junior college must submit a report to the coordinating
	board that includes:
	(1) a long-term financial plan for receiving
	accreditation from a recognized accrediting agency [~~the Commission~~
	~~on Colleges of the Southern Association of Colleges and Schools~~];
	(2) a long-term plan for faculty recruitment that:
	(A) indicates the ability to pay the increased
	salaries of doctoral faculty;
	(B) identifies recruitment strategies for new
	faculty; and
	(C) ensures the program would not draw faculty
	employed by a neighboring institution offering a similar program;
	(3) detailed information on the manner of program and
	course delivery; and
	(4) detailed information regarding existing
	articulation agreements and dual enrollment agreements indicating:
	(A) that at least three articulation agreements
	have been established with general academic teaching institutions
	or medical and dental units, or the reasons why no articulation
	agreements have been established; and
	(B) that, with the agreement of the applicable
	general academic teaching institution or medical and dental unit,
	established articulation agreements are at capacity.
	SECTION 11. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 1, 2025

TO:	Honorable Brandon Creighton, Chair, Senate Committee on Education K-16

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB530 by Sparks (Relating to the accreditation of certain postsecondary educational institutions in this state or of certain programs offered by those institutions.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

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, 781 Higher Education Coordinating Board, 783 University of Houston System Administration, 966 Howard College, 978 San Jacinto College

LBB Staff:

JMc, FV, GO, LBO

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about SB530

What does Texas SB530 do?

SB530 removes the statutory mandate requiring Texas public institutions to be accredited specifically by the Southern Association of Colleges and Schools (SACS), transferring authority to the Texas Higher Education Coordinating Board (THECB) to designate "recognized accrediting agencies. " This legislation compels all public universities and junior colleges to audit bond covenants and transfer agreements that explicitly reference SACS to avoid technical default or loss of credit transferability. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Immediate upon effective date for institutions submitting new degree program applications; ongoing for accreditation renewal cycles.

Who authored SB530?

SB530 was authored by Texas Senator Kevin Sparks during the Regular Session.

When was SB530 signed into law?

SB530 was signed into law by Governor Greg Abbott on May 20, 2025.

Which agencies enforce SB530?

SB530 is enforced by Texas Higher Education Coordinating Board (THECB).

How urgent is compliance with SB530?

The compliance urgency for SB530 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB530?

The cost impact of SB530 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB530 address?

SB530 addresses topics including education, education--higher, education--higher--institutions & programs, education--junior college districts and higher education coordinating board, texas.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.