Tenn. Comp. R. & Regs. 1540-01-02-.22 - CAUSES FOR ADVERSE ACTION

(1) The Commission or Executive Director in the interest of the public welfare, consumer protection and statutory responsibility may assess fines of five hundred dollars ($500) per day per violation or revoke or make conditional the authorization of an institution or its program registrations under the process as given in subparagraph .02(2)(e) of these rules for reasons including, but not limited to:

(a) Disregard of provisions of the Act and/or these rules;

(b) Willful violation of any commitment made in an application for authorization or reauthorization;

(c) Presenting to the general public or students or prospective students information that violates Fair Consumer Practices as outlined in these rules;

(d) Advertising, recruiting, or operating a group of classes or a program that has not been approved by the Commission;

(e) Failure to provide or maintain premises or equipment in a safe and sanitary condition as required by laws, regulations, or ordinances applicable at the authorized location of the institution;

(f) Failure to provide and maintain adequate faculty and/or staff;

(g) Failure to maintain financial resources adequate for the satisfactory conduct of the courses of instruction offered;

(h) Operating a postsecondary educational institution at a location that has not been authorized by the Commission;

(i) Failure to correct findings or areas of non-compliance resulting from an authorization site visit, investigation, or audit;

(j) A pattern of coercion, threats, or intimidation by institutional personnel to students or other school personnel;

(k) Failure to advise the Commission about significant factors, such as:

1. Financial difficulties affecting program consistent with the objectives of the course or program of study, including, but not limited to, when applicable, receipt of Title IV funds;

2. Significant staff changes in a short period of time;

3. Change of ownership;

4. Outcomes of audits by other government agencies;

5. Any factor or clearly developing factor that could alter the basis for authorization;

6. Loss or lowering of accreditation status; and

7. Legal action against the Tennessee authorized school;

(l) Activities described in Rule .21 of these rules;

(m) Failure to comply with the requirements of the tuition guaranty fund under § 49-7- 2018 and the related rules;

(n) Submitting false information in any application or correspondence related to an audit, investigation, or complaint; and

(o) Retaliating against a complainant who exercises their right to complain.

(2) Repeated and/or consistent violations of the Act or these rules, particularly in the same areas such as advertising, fair consumer practices or operational standards may be grounds for conditional or revocation of authorization in addition to fines.

(3) Institutions that advertise in formats that will be in the public domain for long periods and where such advertising cannot be rewritten or retracted may be fined in accordance with the Act and these rules for each day, week, or month the advertisement is in active circulation.

(4) Commission staff at any time may require that an institution furnish proof to the Commission of any of its advertising claims. If proof acceptable to Commission staff cannot be furnished, Commission staff may recommend to the Executive Director that the institution publish a retraction of such advertising claims in the same manner as the claims themselves. Continuation of such advertising shall constitute cause for further adverse action.

(5) Any action by the Commission or Executive Director under this rule shall be subject to review as provided in T.C.A. § 49-7-2012. All Commission actions are subject to due process provisions of the Uniform Administrative Procedures Act.

Notes

Tenn. Comp. R. & Regs. 1540-01-02-.22

Original rule filed June 24, 1998; effective October 28, 1998. Amendment filed February 3, 2000; effective June 28, 2000. Amendment filed June 6, 2008; declared void and of no effect pursuant to Davidson County Chancery Court's October 2011 order. See also Attorney General's Opinion 11-78. Emergency rules filed August 15, 2016; effective October 3, 2016 through April 1, 2017. Repeal and new rules filed December 21, 2016; effective March 21, 2017. Emergency rules filed June 29, 2022; effective July 1, 2022 through December 28, 2022. Amendments filed September 30, 2022; effective 12/29/2022.

Authority: T.C.A. §§ 49-7-2005 and 49-7-2010.