Senate · Engrossed · 2025-2026 Regular Session
SB 400: Education; unaccredited institutions from offering degrees; prohibit
Last action March 31, 2026 · House Passed/Adopted By Substitute
A Georgia Senate bill would bar unaccredited schools from granting college degrees and would rewrite several rules for how the state's nonpublic postsecondary schools get licensed, bond themselves, and pay into a fund that protects students if a school suddenly closes.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
Georgia currently regulates nonpublic postsecondary schools (private colleges, trade schools, and similar institutions) through the Nonpublic Postsecondary Education Commission, but the law does not stop an unaccredited school from awarding degrees. This bill changes that: it would make it illegal for a person or entity to grant or offer to grant a postsecondary degree unless the institution is accredited, or actively working toward accreditation, by an agency recognized by the U.S. Department of Education. It also defines 'distance education' for the first time and counts online instruction offered into or from Georgia as a regulated 'postsecondary activity.' The bill lets schools use an irrevocable letter of credit instead of a surety bond to meet financial guarantee requirements, spells out specific reasons the executive director must deny a school's application (such as past harm to students or willful noncompliance), and clarifies that the formal grievance and hearing process for denied applications does not cover denials of new course offerings. It also expands the schools required to hand over academic records if they close or are at risk of closing, and rewrites who must pay into and can be excused from the Tuition Guaranty Trust Fund, which reimburses students when a school shuts down owing them tuition.
What the bill does
- Makes it illegal to grant or offer a postsecondary degree unless the institution is accredited or actively pursuing accreditation by a federally recognized agency.
- Adds a legal definition of 'distance education' and classifies online instruction offered to Georgia residents, or offered from a Georgia-based operation, as a regulated postsecondary activity.
- Allows schools to post an irrevocable letter of credit from a bank or savings and loan instead of a surety bond to meet the state's financial guarantee requirement.
- Requires the executive director to deny an application to operate when the applicant meets specific listed factors, such as having previously caused financial harm to students or willfully violated the law.
- Clarifies that the formal appeal and hearing process for denied applications to operate does not apply when a school is denied permission to add new courses.
- Expands the academic-records handover requirement to cover degree-granting institutions that are otherwise exempt from the law, both when a school closes and when it is at risk of closing.
Who it affects
Nonpublic postsecondary schools operating in Georgia, including unaccredited degree-granting institutions, online and distance-education providers reaching Georgia students, the Nonpublic Postsecondary Education Commission and its executive director, the Tuition Guaranty Trust Fund's board of trustees, and students enrolled at these schools who rely on tuition refund protections if a school closes.
Why it matters
Students considering a private college or trade school would gain a legal guarantee that any degree-granting school is accredited or working toward it, reducing the risk of paying for a worthless credential. Schools face new bonding options and stricter, more defined grounds for having applications denied, while more institutions would be pulled into the fund that reimburses students if a school abruptly shuts down.
Key provisions
- Section 1 adds a definition of 'distance education' and expands 'postsecondary activity' to include distance education offered to Georgia residents or from a Georgia-based operation.
- Section 2 makes it a prohibited act to grant or offer postsecondary degrees without being accredited or in the process of becoming accredited by a U.S. Department of Education recognized agency.
- Section 3 authorizes the commission to let schools use an irrevocable letter of credit instead of a surety bond.
- Section 4 requires the executive director to deny an application when the applicant meets one or more listed risk factors, such as prior harm to students or willful noncompliance with the law.
- Section 5 states that the hearing and review process for denied operating authorizations does not apply to denials of additional course offerings.
- Section 6 expands who must turn over academic records upon closing or risk of closing to include certain exempt degree-granting institutions, and lets the executive director request records proactively if a school is at risk of closing.
- Section 7 restructures Tuition Guaranty Trust Fund participation, including a 5 percent-of-fund-balance cap on fees collected from any one school and new options to use a bond or letter of credit instead of paying annual fees.
From the bill
“Grant, or offer to grant, postsecondary degrees unless such person, group, or entity is accredited or in the process of becoming accredited by an accrediting agency recognized by the United States Department of Education or its successor.”
“'Distance education' means education or educational services that use one or more technologies to deliver such education or educational services to students who are separated from the instructor”
Discussed in meetings (15)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
Senate Higher Education Committee, February 3, 2026
From 0:10:41 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented a substitute to strengthen the Georgia Nonpublic Postsecondary Education Commission’s oversight and protect students when schools close. The sponsor said it would clarify distance education oversight, put the prohibition on unaccredited institutions offering degrees into law, establish grounds to reject applicants with past misconduct, and send appeals of program denials directly to Superior Court. The sponsor also described earlier access to closing schools’ records and authority to require digital records. The executive director said the agency oversees about 360 schools serving 80,000 to 100,000 Georgia students annually. Asked whether trust fund charges would rise, the director said the one-tenth-of-1% tuition rate would remain unchanged, but contributions would continue indefinitely rather than end after seven years. The sponsor said schools could instead provide a bond or letter of credit. The director reported a $5.7 million fund against roughly $1 billion in tuition liability if all covered schools closed. One member supported stronger consumer protection. Members also asked about covered institutions and aid eligibility; the director said public institutions and K-12 schools were outside this oversight and most regulated schools did not qualify for the aid discussed. Another member raised potential sales of student data after closure. The director offered to examine safeguards and discussed possible annual record collection. The committee unanimously approved the substitute.
Senate Rules Committee, February 9, 2026
From 0:14:44 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor described the bill as a request from the Georgia Nonpublic Postsecondary Education Commission to expand its ability to protect students. The sponsor said it would provide protections for the Tuition Guarantee Trust Fund and student records, and asked that it advance to the floor. No substantive questions or vote were shown.
Senate Rules Committee, February 10, 2026
From 0:05:48 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor described SB 400 as an agency bill concerning independent, nonpublic postsecondary schools, without explaining further provisions. No substantive questions followed. Later, a committee member selected the bill to move forward, and the committee unanimously approved it together with two other bills.
Senate floor session, February 11, 2026 (legislative day 17)
From 1:58:31 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Third Read)
Summary by Georgia Commons: The clerk described SB 400 as prohibiting unaccredited institutions from offering degrees and changing participation in the Tuition Guarantee Trust Fund. Presenting a Higher Education Committee substitute, the sponsor said the measure came from the Georgia Nonpublic Postsecondary Education Commission, which oversees 358 authorized schools serving 81,000 students, with more than $855 million in gross tuition and 60 additional applicants. The sponsor said the bill would strengthen oversight of schools that collect tuition but fail to deliver services, allow approval or denial of individual programs, and permit schools to appeal denials to superior court. The sponsor also described protecting student records when schools close and strengthening a fund that helps reimburse students for undelivered services. According to the sponsor, qualifying schools could provide a bond or letter of credit, while others would contribute a small share of tuition, estimated at one-tenth of 1% annually. No questions or opposing speeches followed. The Senate adopted the substitute without objection and passed the bill 48-1.
House Higher Education Committee, February 18, 2026
From 1:02:45 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said SB 400 would strengthen the Georgia Nonpublic Postsecondary Education Commission’s oversight, prohibit unaccredited degrees while preserving a path toward accreditation, define distance education, improve access to student records, and strengthen closure-related refunds. The sponsor described authority to deny operators with histories of misconduct and send certain course or program denial appeals directly to superior court. The commission’s director said accreditation loss alone would not make an operator ineligible, but fraud or abandoning students could, including attempts to operate through another person. Members questioned effects on existing students and accreditation candidates. The director said current rules already restrict unaccredited degrees and provide a transition process. Asked about exemptions, the director said religious-only schools accepting no public funds and cosmetology schools overseen elsewhere would remain outside full authorization requirements. The sponsor described annual trust-fund contributions of 0.1% of tuition, with a $250 minimum per school, and alternatives including bonds or irrevocable letters of credit. The director reported a roughly $5.5 million fund balance and said letters of credit could provide faster payment than bonds after closures. One member wanted more time to review the bill; the director offered a meeting. The chair held the bill for another hearing without a vote.
House Higher Education Committee, March 18, 2026
From 0:00:34 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The agency head presented a substitute adding a $500,000 contribution cap for institutions authorized before January 1, 2026. The agency head said institutions reaching the cap would resume payments if the Tuition Guarantee Trust Fund fell below $4 million, continuing until it reached $10 million. The agency head said this would limit disproportionate payments by larger schools while protecting students after unexpected closures, and that stakeholders who had responded supported the changes. Members asked which schools would benefit, whether the cap could slow replenishment and how large past losses had been. The agency head said most schools would never reach the cap, annual contributions were one-tenth of 1% of gross tuition, and the largest loss during the agency head’s tenure was about $400,000 following Argosy University’s closure. The agency head described annual financial reviews, bonding requirements for struggling schools and checks on educational programs, graduation and job placement. Asked about uncertainty around federal student-loan relief, the agency head said the agency was preparing for possible rule changes and expected more closures over the next decade. The committee approved the substitute by voice vote, with no opposition heard, and sent it to Rules with a do-pass recommendation.
House Rules Committee, March 20, 2026
From 1:01:02 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor described SB 400 as an agency bill for the Nonpublic Postsecondary Education Commission. The sponsor said it would clarify language and expand oversight to help ensure that private, non-degree-granting institutions treat students and other Georgians fairly. There were no questions or recorded vote.
House floor session, March 31, 2026 (legislative day 39, part 2)
From 2:46:21 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 4013
Summary by Georgia Commons: The clerk described the bill as prohibiting unaccredited institutions from offering degrees. The presenter said it strengthened protections for students at private degree-granting schools through clearer definitions, prohibited activities and a bond or reserve fund to reimburse tuition if an institution closed unexpectedly. The presenter said closures occurred infrequently but had happened in Georgia, and that the Nonpublic Postsecondary Education Commission handled these matters. No members asked questions. The House adopted the committee substitute and passed the bill, 168 to 1.
House Rules Committee, March 31, 2026
From 0:29:22 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 3954
Summary by Georgia Commons: The committee placed SB 400 on the supplemental floor calendar without stated opposition. No substantive discussion occurred.
- Read aloud: Senate floor session, January 15, 2026 (legislative day 4), 0:22:56
- Read aloud: Senate floor session, February 4, 2026 (legislative day 12), 0:26:05
- Read aloud: Senate floor session, February 5, 2026 (legislative day 13), 0:27:11
- Read aloud: House floor session, February 12, 2026 (legislative day 18), 0:51:47
- Read aloud: House floor session, February 17, 2026 (legislative day 19), 1:00:09
- Read aloud: House floor session, March 19, 2026 (legislative day 34), 0:35:11
Status timeline
- House Passed/Adopted By Substitute (House)
- House Third Readers (House)
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- Senate Passed/Adopted By Substitute (Senate)
- Senate Third Read (Senate)
- Senate Read Second Time (Senate)
Show full history (11 actions)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- Senate Hopper (Senate)
Sponsors
- Max Burns (R, SD-23)
- Billy Hickman (R, SD-4)
- Chuck Hufstetler (R, SD-52)
- Chuck Payne (R, SD-54)
- Clint Dixon (R, SD-45)
- Lee Anderson (R, SD-24)
- Randy Robertson (R, SD-29)
- John Albers (R, SD-56)
- Carden Summers (R, SD-13)
- Rick Williams (R, SD-25)
- Shawn Still (R, SD-48)
- Marty Harbin (R, SD-16)
- Russ Goodman (R, SD-8)
- Steve Gooch (R, SD-51)
- Brian Strickland (R, SD-42)
- Chuck Martin (R, HD-49)
Votes
- Senate voteFebruary 11, 2026
48 yea, 1 nay (1 not voting, 4 excused)
- House voteMarch 31, 2026
168 yea, 1 nay (1 not voting, 6 excused)
Topics
- higher education
- degree accreditation
- school closures
- tuition protection
- distance learning