19 Tex. Admin. Code § 7.11 - Changes of Ownership and Other Substantive Changes
(a) Change of Ownership or Control for Career
Schools and Colleges. In the event of a change in ownership or control of a
career school or college, the Certificate of Authority or Certificate of
Authorization is automatically void unless the institution meets the
requirements of this section.
(b)
The Commissioner may authorize the institution to retain the Certificate of
Authority or Certificate of Authorization during and after a change of
ownership or control, provided that the institution notifies Board staff of the
impending transfer in time for staff to receive, review, and approve the
documents listed in paragraphs (1) - (4) of this subsection and provided that
the following conditions are met:
(1) The
institution must submit acceptable evidence that the new owner is complying
with all Texas Workforce Commission requirements regarding the purchase or
transfer of ownership of a career school or college;
(2) The institution must submit an acceptable
written statement of assurance that the new owner understands and undertakes to
fully comply with all applicable Board rules, regulations, and/or
policies;
(3) The institution must
submit documentation that the new owner has been approved by the institution's
Board-recognized accreditor to operate the institution or is able to meet the
requirements of the existing Certificate of Authority; and
(4) The institution must submit satisfactory
evidence of financial ability to adequately support and conduct all approved
programs. Documentation shall include but may not be limited to independently
audited financial statements and auditor's reports and assurance that the new
owner does not currently own or operate any institutions under financial
restrictions for, or is not permanently debarred from participating in, federal
financial aid by the United States Department of Education. Individuals who
become new owners of an institution may be required to submit independently
audited personal financial records to show evidence of financial ability to
adequately support and conduct all approved programs.
(c) If the institution does not meet the
conditions outlined under this section prior to completion of transfer of
ownership or control and the institution loses its Certificate of Authority or
Certificate of Authorization, the new owner(s) shall submit a new application
for a Certificate of Authority as outlined under §
7.8 of this chapter (relating to
Institutions Not Accredited by a Board-Recognized Accreditor) or a new
application for a Certificate of Authorization as outlined under §
7.7 of this chapter (relating to
Institutions Accredited by Board-Recognized Accreditors).
(d) Any modification of an approved degree
program that results from a change of ownership or control constitutes a
program revision. Requests for approval of program revisions or other
substantive changes as defined in §
7.3 of this chapter (relating to
Definitions) shall conform to the procedures and requirements contained in
§
7.7 and §
7.8 of this chapter.
(e) If the ownership or control of a career
school or college is transferred within, among, or between different
subsidiaries, branches, divisions, or other components of a corporation and if
said transfer in no way diminishes the career school or college's
administrative capability or educational program quality, the Commissioner may
permit the school to retain its Certificate of Authority or Certificate of
Authorization during the transfer period. In such cases, the career school or
college shall fully comply with all provisions outlined in this
section.
(f) All notifications
regarding changes of ownership or other substantive changes, as defined in
§
7.3 of this chapter (relating to
Definitions), should be provided to the Board via the institution's designated
Single Point of Contact.
Notes
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