The coordinating board must set rules for when a credential counts as a credential of value, calculate ROI using current data, and align its wage definition with the statewide median; it may also designate education or health care credentials even if they do not meet the normal criteria when needed for workforce needs.
Sec. 130A.102. CREDENTIALS OF VALUE. (a) For purposes of Section 130A.101(c)(1), the coordinating board shall designate a credential as a credential of value if the credential: (1) provides a positive return on investment for a student who received the credential, as measured by earning or being expected to earn cumulative wages at least equal to the cumulative median earnings for high school graduates in this state and earning at least the individual self-sufficient wage, as defined by coordinating board rule, during the period specified by coordinating board rule but not more than 10 years after the date on which the credential is received; and (2) allows a student who received the credential to recoup the net cost of attendance at a public junior college, including opportunity cost, where: (A) the net cost of attendance is the net cost of attendance used for purposes of financial aid at the college less any aid received by the student; and (B) opportunity cost is the difference between cumulative median earnings for high school graduates in this state and cumulative median earnings for students while enrolled in the certificate or degree program leading to the credential for: (i) a period of two years for an associate degree program; (ii) a period of four years for a baccalaureate degree program; and (iii) a period determined by coordinating board rule based on the program's design for a certificate or degree program not described by Subparagraph (i) or (ii). (b) The coordinating board shall calculate the return on investment for a credential under Subsection (a)(1) using the most current data available to the coordinating board from: (1) the integrated postsecondary education data system maintained by the National Center for Education Statistics; (2) wage records obtained from the Texas Workforce Commission; (3) the American Community Survey by the United States Census Bureau; (4) the coordinating board's data reporting systems; or (5) other data sources selected by the coordinating board. (c) In adopting a definition of individual self-sufficient wage for purposes of Subsection (a)(1), the coordinating board shall ensure the definition is correlated with the statewide median of the self-sufficient wage determined under Section 2308A.012, Government Code. (d) The coordinating board may designate a credential in education or health care as a credential of value regardless of whether the credential meets the criteria under Subsection (a) if the coordinating board determines the designation is necessary to ensure the workforce needs of this state are met in those fields. (e) The coordinating board shall adopt rules as necessary to implement this section in alignment with the long-range master plan for higher education in this state developed under Section 61.051(a-1). Added by Acts 2025, 89th Leg., R.S., Ch. 191 (S.B. 1786), Sec. 8, eff. September 1, 2025.