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

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.