SB400: SB400 Education; unaccredited institutions from offering degrees; prohibit

Georgia currently allows the State Board of the Georgia Nonpublic Postsecondary Education Commission to license nonpublic colleges and career schools, but the law did not clearly stop an institution from granting degrees without accreditation. This bill amends Georgia's nonpublic postsecondary education law (O.C.G.A. Title 20, Chapter 3, Article 7) to say no one may grant or offer to grant a postsecondary degree unless the institution is accredited or actively working toward accreditation by a federally recognized accrediting agency. The bill also lets institutions post an irrevocable letter of credit from a bank instead of a surety bond, requires the executive director to deny applications when certain factors are present (such as past harm to students or willful noncompliance), and says the hearing and review process for denied operating authorization does not apply to denials of additional course offerings. It updates rules for the Tuition Guaranty Trust Fund, including which institutions must participate, fee schedules tied to the fund balance, and indemnification requirements for bonds and letters of credit. It also requires schools that are discontinuing or at risk of discontinuing operations to turn over academic records to the executive director.

• Makes it illegal for any person, group, or entity to grant or offer to grant a postsecondary degree unless the institution is accredited or in the process of becoming accredited by a federally recognized accrediting agency.
• Allows nonpublic postsecondary institutions to post an irrevocable letter of credit from a bank or savings and loan association instead of a surety bond, under conditions set by the commission.
• Requires the executive director to deny an application to operate (or renew authorization) when the applicant meets any of several listed risk factors, such as prior harm to students or willful violations.
• Clarifies that the formal hearing and review process for denied operating authorization does not apply when the commission denies a school's request to add new course offerings.
• Requires institutions that are discontinuing operations, or are at risk of doing so, to file academic records with the executive director, who can seek a court order to obtain them if the school refuses.
• Revises Tuition Guaranty Trust Fund rules, including which schools must participate, how participation fees are calculated and phased out, and indemnification requirements for bonds and letters of credit backing the fund.

Nonpublic postsecondary schools and career colleges operating or seeking to operate in Georgia, their students, banks and savings and loan associations that might issue letters of credit, and the Georgia Nonpublic Postsecondary Education Commission and its executive director, who oversee licensing, denials, and the Tuition Guaranty Trust Fund.

Students considering degree programs would have added assurance that any school granting a degree is accredited or pursuing accreditation, reducing the risk of paying for a credential that lacks recognized academic standing. Schools gain a new bonding option, and rules for handling closures and denials become more specific and predictable.

• Section 1 revises the definition of 'postsecondary activity' in O.C.G.A. § 20-3-250.2 and adds a definition of 'distance education.'
• Section 2 amends O.C.G.A. § 20-3-250.7 to add a new prohibited activity: granting or offering to grant postsecondary degrees without accreditation or active pursuit of accreditation.
• Section 3 amends O.C.G.A. § 20-3-250.10 to let institutions use an irrevocable letter of credit in lieu of a surety bond, on the same terms as bonds.
• Section 4 amends O.C.G.A. § 20-3-250.12 to require the executive director to deny an application when specified risk factors are present, rather than leaving denial discretionary.
• Section 5 amends O.C.G.A. § 20-3-250.15 to exempt denials of additional course offerings from the standard hearing and review process for denied operating authorization.
• Section 6 amends O.C.G.A. § 20-3-250.17 to require institutions discontinuing or at risk of discontinuing operations to file academic records with the executive director, including a court-order option if records are withheld.
• Section 7 amends O.C.G.A. § 20-3-250.27, revising Tuition Guaranty Trust Fund participation requirements, fee collection thresholds tied to a $10 million fund balance target by July 1, 2040, and indemnification terms for bonds and letters of credit.

1. 2026-03-31House Passed/Adopted By Substitute (House)
2. 2026-03-31House Third Readers (House)
3. 2026-03-19House Committee Favorably Reported By Substitute (House)
4. 2026-02-17House Second Readers (House)
5. 2026-02-12House First Readers (House)
6. 2026-02-11Senate Passed/Adopted By Substitute (Senate)
7. 2026-02-11Senate Third Read (Senate)
8. 2026-02-05Senate Read Second Time (Senate)

• Max Burns (R, SD-023)Primary sponsor
• Billy Hickman (R, SD-004)
• Chuck Hufstetler (R, SD-052)
• Chuck Payne (R, SD-054)
• Clint Dixon (R, SD-045)
• Lee Anderson (R, SD-024)
• Randy Robertson (R, SD-029)
• John Albers (R, SD-056)
• Carden Summers (R, SD-013)
• Ricky Williams (R, SD-025)
• Shawn Still (R, SD-048)
• Marty Harbin (R, SD-016)
• Russ Goodman (R, SD-008)
• Steve Gooch (R, SD-051)
• Brian Strickland (R, SD-042)
• Charles Martin (R, HD-049)

1. PassedSenate voteFebruary 11, 2026

   48 yea, 1 nay (1 not voting, 4 absent)

   Passage By Substitute: Senate Vote #539

2. PassedHouse voteMarch 31, 2026

   168 yea, 1 nay (1 not voting, 6 absent)

   Passage: House Vote #808

• higher education regulation
• degree accreditation
• for-profit colleges
• student financial protection
• school closures