These are the 25 rules that a non-exempt (not accredited) institution must meet for licensing.

The Higher Education Coordinating Board
Rules and Regulations
Chapter 5
Subchapter K: Private and Out-of-State Public Degree-Granting Insititutions Operating in Texas

5.214.  Standards for Nonexempt Institutions.

                  (a) The decision to grant a certificate of authority to an institution will be
          based on its compliance with the following 25 standards, priority given to education,
          responsiveness to recommendations and suggestions for improvement, and, in the
          case of a renewal of a certificate of authority, record of improvement and progress
          following initial approval which would ensure accreditation within the allotted time.
          The 25 standards represent generally accepted administrative and academic practices
          and principles of accredited institutions of higher education in Texas. Such
          practices and principles are generally set forth by regional and specialized
          accrediting bodies and the academic and professional societies which have
          established standards for their members' programs such as the National Association of
          College and University Business Officers and the American Association of Collegiate
          Registrars and Admissions Officers.

                      (1)   Qualifications of Institutional Officers. The character, education,
                  and experience in higher education of governing board members, administrators,
                  supervisors, counselors, agents, and other institutional officers
                  shall be such as may reasonably ensure that the students will receive
                  education consistent with the objectives of the course or program of study.
                  In particular, the academic administrator shall be qualified by level and area
                  of academic preparation, as well as through appropriate experience, to direct
                  the academic affairs of the institution.

                      (2)   Governing Board. The governing board, consisting of at least
                  five members, must be an active policy-making body and must exercise its
                  authority to ensure that the mission of the institution is carried out.
                  Membership of the governing board of the institution shall be comprised of
                  individuals who represent the institution's constituency, including faculty,
                  students, and supporters. The presiding officer of the board, along with a
                  majority of the other voting members, must have no contractual, employment,
                  or personal or familial financial interest in the institution and derive no
                  financial gain from the operations of the institution.

                      (3)   Distinction of Roles. There shall be sufficient distinction among
                  the roles and personnel of the governing board of the institution, the
                  administration, and faculty to ensure their appropriate separation and
                  independence.

                      (4)   Instructional Assessment. Provisions shall be made for the
                  continual assessment of the educational program, including the evaluation
                  and improvement of instruction.

                      (5)   Student Admission and Remediation.  Upon the admission of a student
                  to any undergraduate program, the institution shall document that the student
                  is prepared to undertake college level work, generally by obtaining proof of
                  the student's high school graduation or General Educational Development (GED)
                  certification, and by assessing with an appropriate diagnostic test the
                  student's ability to do collegiate level work.  If a GED is presented, to be
                  valid, the score must be at or above the passing level set by the Texas
                  Education Agency.  The institution shall provide an effective program of
                  remediation for students diagnosed with deficiencies in their preparation
                  for collegiate study.  Upon the  admission of a student to any graduate
                  program, the institution shall document that the student is prepared to
                  undertake graduate-level work by obtaining proof of the student's holding a
                  baccalaureate degree from an institution accredited by a recognized
                  accrediting agency or a degree from a foreign institution equivalent to a
                  baccalaureate degree from an accredited institution.  The institution shall
                  follow standard practice in assessing the credentials of students who
                  graduated from foreign institutions.

                      (6)   Faculty Qualifications. The character, education, and experience
                  in higher education of the faculty shall be such as may reasonably ensure
                  that the students will receive an education consistent with the objectives
                  of the course or program of study. Each faculty member teaching in an
                  academic associate or baccalaureate level degree program shall have at least
                  a master's degree from an institution accredited by a recognized agency or a
                  regional accrediting agency with at least 18 graduate semester credit hours
                  in the discipline being taught. Furthermore, at least 25% of coursework in an
                  academic associate or baccalaureate level major shall be taught by faculty
                  members holding doctorates, or other terminal degrees, in the discipline being
                  taught from institutions accredited by a recognized agency or a regional
                  accrediting agency.  Each faculty member teaching technical or vocational
                  courses in a vocational associate degree program shall have at least an
                  associate degree in the discipline being taught from an institution accredited
                  by a recognized agency or a regional accrediting agency and at least three
                  years of direct or closely related experience in the discipline being taught.
                  Each faculty member teaching general education courses in a vocational
                  associate degree program shall meet the requirements for academic associate
                  faculty listed above.  Graduate level degree programs shall be taught by
                  faculty holding doctorates, or other terminal degrees, in the discipline being
                  taught from institutions accredited by a recognized agency or a regional
                  accrediting agency.

                      (7)   Faculty Size.  There shall be a sufficient number of full-time
                  teaching faculty resident and accessible to ensure continuity and stability
                  of the education program, adequate educational association between students
                  and faculty and among the faculty members, and adequate opportunity for
                  proper preparation for instruction and professional growth by faculty members.
                  At the associate and baccalaureate levels, there shall be at least one full-
                  time faculty member in each program.  At the graduate level, there shall be
                  at least four full-time faculty members in each program.

                      (8)   Curriculum.  The quality, content, and sequence of each course,
                  curriculum, or program of instruction, training, or study shall be
                  appropriate to the purpose of the institution and shall be such that the
                  institution may reasonably and adequately achieve the stated objectives of
                  the course or program.  Substantially all of the courses in the areas of
                  specialization required for each degree program shall be offered in
                  organized classes by the institution, provided such courses are appropriate
                  to the level of the institution.

                      (9)   General Education.  Each associate or baccalaureate degree
                  program shall contain a general education component consisting of at least
                  25% of the total hours offered for the program.  This component shall be drawn
                  from each of the following areas:  Humanities and Fine Arts, Social and
                  Behavioral Sciences, and Natural Sciences and Mathematics.  It shall include
                  courses to develop skills in written and oral communication and in basic
                  computer instruction.  Courses designed to correct deficiencies, remedial
                  courses for associate and baccalaureate programs and leveling courses for
                  graduate programs, may not count toward course requirements for the degree.
                  The applicant institution may arrange for all or part of the general education
                  component to be taught by another institution with the following provisions:
                  the applicant institution's faculty shall design the general education
                  requirement, there shall be a written agreement between the institutions to
                  provide the general education component, at least one-half of the courses
                  shall be offered in organized classes, and the providing institution shall
                  be accredited by a recognized accrediting agency.

                      (10)   Credit for Prior Learning.  An institution awarding collegiate
                  credit for prior learning obtained outside a formal degree-granting

                  institution shall establish and adhere to a systematic method for evaluating
                  that prior learning, shall award credit only in course content which falls
                  within the authorized degree programs of the institution, in an appropriate
                  manner shall relate the credit to the student's current educational goals,
                  and shall subject the institution's process and procedures for evaluating
                  prior learning to ongoing review and evaluation by the institution's teaching
                  faculty.  Recognized evaluative examinations such as the advanced placement
                  program or the college level examination program may be used.  No more than
                  15 semester credit hours or 23 quarter credit hours in a student's associate
                  or baccalaurreate degree program may be based on validated prior learning.
                  No graduate credit for prior learning may be awarded.  In no instance may
                  credit be awarded for life experience per se or merely for years of service
                  in a position or job.

                      (11)  Library.  The institution shall have in its possession or direct
                  control and readily available to its students and faculty a sufficient quality
                  and variety of library holdings to support adequately its own curriculum.
                  The holdings shall be catalogued and be readily accessible to students and
                  faculty.  The institution shall have adequate library facilities for the
                  library holdings, space for study, and work space for the librarian and
                  library staff.
                  The librarian shall hold a graduate degree in library science from an
                  institution accredited by a recognized accrediting agency or a regional
                  accrediting agency.  Arrangements for the use of library materials made with
                  other libraries shall be formalized in writing, the collection shall be
                  validated by the institution to be appropriate for the programs being offered,
                  records of usage by the students shall be kept, and the library shall be
                  reasonably accessible to the students and faculty.

                      (12)  Facilities.  The institution shall have adequate space, equipment,
                  and instructional materials to provide education of good quality.

                      (13)  Financial Resources and Stability.  The institution shall have
                  adequate financial resources and financial stability to provide education of
                  good quality and to be able to fulfill its commitments to students.  The
                  institution shall have sufficient reserves so that, together with tuition
                  and fees, it would be able to complete its educational obligations to
                  currently enrolled students if it were unable to admit any new students.

                      (14)  Financial Records.  Financial records and reports of the
                  institution shall be kept and made separate and distinct from those of any
                  affiliated or sponsoring person or entity.  Financial records and reports
                  shall be in accordance with the guidelines of the National Association of
                  College and University Business Officers as set forth in College and
                  University Business Administration, Fifth Edition, or such later editions
                  as may be published.  An annual independent audit of all fiscal accounts
                  of the educational institution shall be authorized by the governing board
                  and shall be performed by a properly authorized certified public accountant.

                      (15)  Academic Freedom and Faculty Security.  The institution shall
                  adopt and distribute to all members of the faculty a statement of academic
                  freedom assuring freedom in teaching, research, and publication.  All policies
                  and procedures concerning promotion; tenure; and non-renewal or termination
                  of appointments, including for cause, shall be clearly published in a faculty
                  handbook and supplied to all faculty.  The specific terms and conditions of
                  employment of each faculty member shall be clearly described in a written
                  document given to that faculty member and a copy retained by the institution.

                      (16)  Academic Records.  Adequate records shall be securely maintained
                  by the institution to show attendance, progress, or grades, and to assure
                  that satisfactory guidelines are followed relating to attendance, progress,
                  and performance.  Two copies of said records shall be maintained in secure
                  places.  Transcripts shall be issued upon the request of the students.

                      (17)  Catalog.  The institution shall provide students and other
                  interested persons with a catalog or brochure containing information
                  describing the purpose, length, and objectives of the programs offered by
                  the institution; schedule of tuition, fees, and all other charges and
                  expenses necessary for completion of the course of study; cancellation and
                  refund policies; and such other material facts concerning the institution
                  and the program or course of instruction as are reasonably likely to affect
                  the decision of the student to enroll therein.  Any disclosures specified
                  by the board or defined in the rules shall be included.  This information
                  shall be provided to prospective students prior to enrollment.

                      (18)  Refund Policy.  The institution shall publish and adhere to a fair
                  and equitable cancellation and refund policy.

                      (19)  Credentials.  Upon completion, the student shall be  given
                  appropriate educational credentials by the institution indicating that the
                  program undertaken has been satisfactorily completed.

                      (20)  Academic Advising and Counseling.  The institution shall provide
                  an effective program of academic advising for all students enrolled.  The
                  program shall include orientation to the academic program, academic and
                  personal counseling, career information and planning, placement assistance,
                  and testing services.

                      (21)  Student Handbook.  A handbook listing the student's rights and
                  responsibilities shall be published and supplied to the student upon
                  enrollment in the institution.  The institution shall establish a clear and
                  fair policy regarding due process in disciplinary matters and publish it in
                  the handbook.

                      (22)  Health Services.  The institution shall provide an effective
                  program of health services and education reflecting the needs of the
                  students.

                      (23)  Housing.  The student housing owned, maintained, or approved
                  by the institution, if any, shall be appropriate, safe, and adequate.

                      (24)  Legal Compliance.  The institution shall be maintained and
                  operated in compliance with all ordinances and laws, including rules and
                  regulations adopted pursuant thereto.

                      (25)  Open Representation of Activities.  Neither the institution or its
                  agents shall engage in advertising, recruiting, sales, collection, financial
                  credit, or other practices of any type which are false, deceptive, misleading,
                  or unfair.