An institution which does not meet the definition of an
institution of higher education contained in Texas Education Code §
61.003, is accredited
by a Board-recognized accreditor, and is interested in offering degrees or
courses leading to degrees in the State of Texas is subject to the restriction
on professional degrees in paragraph (1) of this section and must follow the
requirements in paragraphs (2) - (5) of this section.
(1) Restriction on Professional Degrees. The
Board may not approve the issuance of a Certificate of Authorization for an
exempt institution to grant a professional degree, as defined in §
7.3 of this title (relating to
Definitions), or to represent that credits earned in this state are applicable
toward a professional degree except to the extent allowed for an authorized
institution operating under a State Authorization Reciprocity Agreement
(SARA).
(2) Authorization to Offer
Degrees or Courses Leading to Degrees in Texas.
(A) Each institution and/or campus location
must submit an application for a Certificate of Authorization to offer
degree(s) or courses leading to degrees in Texas. The application form for the
Certificate of Authorization may be found on the Board's website. The
application must contain the following information:
(i) Name of the institution;
(ii) Physical location of campus, or in the
case of only providing clinicals or internships in Texas, the physical location
of all clinical or internship sites, number of students in clinicals or
internships and start and end date of clinicals or internships;
(iii) Name and contact information of the
Chief Administrative Officer of the campus and name and contact information of
the designated Single Point of Contact as defined in §
7.3 of this chapter (relating to
Definitions). In the case of an application based on clinicals or internships,
name and contact information of clinical or internship site
supervisors;
(iv) Name of
Board-recognized accreditor;
(v)
Level of degree, degree program name, and CIP code as authorized by the
Board-recognized accreditor;
(vi)
Documentation of notification to students and potential students of any program
which does not make the graduate eligible to take required professional
examinations in that field or to practice regulated professions in that field
in Texas;
(vii) Dates of
accreditation granted by the Board-recognized accreditor.
(I) If the institution or a location in Texas
is currently subject to a negative or adverse action by its Board-recognized
accreditor which has not resulted in a sanction, the institution must provide
documentation explaining the reasons for the action and actions taken to
reverse the negative or adverse action.
(II) If the institution or a location in
Texas is currently subject to a sanction by its Board-recognized accreditor,
the institution must provide documentation explaining the reasons for the
action and actions taken to comply with the accrediting agency's standards or
criteria, including a timeline for returning to compliance, in order to
maintain accreditation.
(III) If
the institution applies based on accreditation of its main campus while seeking
final approval for the new Texas-based campus from its Board-recognized
accreditor and the Texas Workforce Commission, the institution must provide
documentation from its accreditor acknowledging that a decision on campus
accreditation can be made within fifteen (15) months of the issuance of a
provisional Certificate of Authorization.
(viii) Acknowledgement of student complaint
procedure, compliance with the institutional accrediting agency's standards for
operation of institutions, annual review reporting requirements, substantive
change notification, and student data reporting requirements contained in this
section, §§
1.110-
1.120 of this title (relating to
Student Complaint Procedure), §
7.4 of this chapter (relating to
Standards for Operation of Institutions), §
7.11 of this chapter (relating to
Changes of Ownership and Other Substantive Changes), and §
7.13 of this chapter (relating to
Student Data Reporting), respectively;
(ix) Texas Workforce Commission Certificate
of Approval or a Texas Workforce Commission exemption or exclusion from Texas
Education Code, Chapter 132;
(x)
Disclosure of most recent United States Department of Education financial
responsibility composite score, including applicable academic year for score.
If the institution has a score under 1.5, the institution must provide
documentation of all actions taken since date of calculation to raise the
score.
(xi) Documentation of
reserves, lines of credit, or surety instruments that, when combined with
tuition and fee receipts, are sufficient to allow the institution to fulfill
its educational obligations for the current term to its enrolled students if
the institution is unable to continue to provide instruction to its enrolled
students for any reason. Such documentation must meet requirements as defined
in §
7.16 of this subchapter (relating
to Financial Protections for Student Tuition and Fees).
(B) Board staff will verify information and
accreditation status. Upon determination that an institution is in good
standing with its Board recognized accreditor, has sufficient financial
resources, and, if applicable, has provided sufficient documentation of
correcting accreditation or financial issues, Board staff will provide a
Certificate of Authorization to offer in Texas those degrees or courses leading
to degrees for which it is accredited. If an institution is only providing
clinicals or internships in the state of Texas, a Certificate of Authorization
will be issued for the institution to offer in the state of Texas identified
clinicals or internships in connection with those degrees or courses leading to
degrees for which the institution is accredited. The Certificate of
Authorization will be issued to the institution by name, city and
state.
(C) Certificates of
Authorization are subject to annual review for continued compliance with the
Board-recognized accreditor's standards of operation, student complaint
processes, financial viability, and accurate and fair representation in
publications, advertising, and promotion.
(i)
Institutions must submit the following documentation on an annual basis for
Board staff review and recommendation to the Board for continuation or
revocation of the Certificate of Authorization:
(I) Annual audited financial statements,
issued less than one year from time of submission, prepared in accordance with
Generally Accepted Accounting Principles by an independent certified public
accountant;
(II) Documentation of
reserves, lines of credit, or surety instruments that, when combined with
tuition and fee receipts, are sufficient to allow the institution to fulfill
its educational obligations for the current term to its enrolled students if
the institution is unable to continue to provide instruction to its enrolled
students for any reason. Institutions under a Certificate of Authorization as
of September 1, 2017 are required to provide documentation of reserves, lines
of credit, or surety instruments going forward with the 2019 annual compliance
review.
(III) Certification that
the institution is providing accurate and fair representation in publications,
advertising, and promotion, including disclosure to students and potential
students of any program which does not make the graduate eligible to take
required professional examinations in that field or to practice regulated
professions in that field in Texas. The institution shall further certify that
it is maintaining any advertising used in Texas for a minimum of five years and
shall make any such advertisements available to the Board for inspection upon
request.
(IV) An annotated copy of
the student catalog or student handbook showing compliance with the principles
addressed in §
7.4 of this chapter with
cross-reference to the operational standards of its institutional accrediting
agency;
(V) A copy of the
institution's student complaint policy, links to online student complaint
procedures and forms, and summary of all complaints made by Texas residents or
students enrolled at a Texas-based institution concerning the institution in
accordance with §§
1.110-
1.120 of this title. The complaint
summary shall include complaints which have been filed, with the institution,
its accrediting agency, or the Board within the 12 months prior to the annual
review reporting date and shall indicate whether pending or resolved;
(VI) Official statement of current
accreditation status and any pending or final actions that change the
institution's accreditation status from the institution's Board-recognized
accreditor, including changes in degree levels or programs offered approvals,
changes in ownership or management, changes in name, and changes in physical
location within the 12 months prior to the annual review reporting
date;
(VII) Information regarding
heightened cash monitoring or other changes that affect students' federal
financial aid eligibility through the US Department of Education;
(VIII) Attestation that all documentation
submitted is true and correct and continued acknowledgement of student
complaint procedure, annual review reporting requirements, substantive change
notification, and student data reporting requirements contained herein this
section, §§
1.110-
1.120 of this title, §§
7.4,
7.11,
7.13, and
7.15 of this chapter,
respectively.
(ii) Annual
reviews are conducted based on an institution's name and initial date of
authorization.
(I) Institutions with names
starting with "A" through "O" must submit annual review documentation by
January 15 of each year. The Board will review staff recommendations at the
annual July Board meeting.
(II)
Institutions with names starting with "P" through "Z" must submit annual review
documentation by July 15 of each year. The Board will review staff
recommendations at the annual January Board meeting.
(III) Institutions that have received their
first Certificate of Authorization less than six months from the due date for
submission of annual review documentation may wait to submit documentation
until the following annual review submission date.
(iii) Prior to making a recommendation to the
Board, staff has discretion to conduct a site visit at the institution if
warranted by facts disclosed in the annual review documentation. The
Board-recognized accreditor will be notified and invited to
participate.
(D)
Certificates of Authorization for institutions offering degrees or courses
leading to degrees at a physical location in Texas, upon Board staff
recommendation after annual review, expire at the end of the grant of
accreditation by the Board-recognized accreditor.
(i) If a new grant of accreditation is
awarded by the Board-recognized accreditor, the Certificate of Authorization
may be renewed upon submission of documentation of the new grant of
accreditation.
(ii) If an
institution changes recognized accreditors, the institution must submit a new
application for a Certificate of Authorization.
(E) Certificates of Authorizations based
solely on providing clinicals or internships in Texas expire one year from date
of issuance.
(i) If clinicals or internships
are ongoing in Texas, the Certificate of Authorization based solely on
providing clinicals or internships in Texas must be renewed on an annual basis.
At least thirty (30) days, but no more than ninety (90) days, prior to the
expiration of the current Certification of Authorization, an institution, if it
desires renewal, is required to provide updated information regarding the
physical location of all clinical or internship sites, number of students in
clinicals or internships, and the start and end date of the clinicals or
internships.
(ii) The Board shall
renew the Certificate of Authorization based solely on providing clinicals or
internships in Texas if it finds that the institution has maintained all
requisite standards.
(F)
Certificates of Authorization for Texas-based campuses which are
provisionally-granted based on their main campus' accreditation expire at the
end of fifteen (15) months.
(i) If
accreditation has not been achieved by the expiration date, the
provisionally-granted Certificate of Authorization will be withdrawn, the
institution's authorization to offer degrees will be terminated, and the
institution will be required to comply with the provisions of §
7.8 of this chapter (relating to
Institutions Not Accredited by a Board-Recognized Accreditor).
(ii) Subsequent provisionally-granted
Certificates of Authorization will not be issued.
(iii) At least ninety (90) days prior to
expiration of the certificate, institutions operating under a
provisionally-granted Certificate of Authorization must submit either an
application for a Certificate of Authorization under this section or an
application for a Certificate of Authority under §
7.8 of this
chapter.
(G) Institutions
under an existing Certificate of Authorization must immediately notify the
Board if the institution or its main campus becomes subject to a sanction by
its Board-recognized accreditor. The institution must provide documentation
explaining its current status and actions taken to comply with the accrediting
agency's standards or criteria, including a timeline for returning to
compliance, in order to maintain accreditation.
(3) Restrictions Placed on Institution under
Sanctions by Its Accreditor.
(A) If an
institution is under sanctions by its accreditor, limitations appropriate for
the sanction shall be placed upon the institution's Certificate of
Authorization. Limitations may include, but are not limited to:
(i) Restrictions on adding degree programs to
its authorization;
(ii) An increase
in the amount of financial reserves, lines of credit or surety instrument
required to maintain a Certificate of Authorization; and
(iii) Review every six months, including
unannounced site visits.
(B) The Board will notify the institution via
letter of all restrictions placed upon its Certificate of Authorization due to
its accreditors' sanctions.
(C) The
Board will place a notice of all sanctions placed upon an institution via the
Board's website.
(D) Restrictions
and public notification will be removed upon written documentation from the
institution's accreditor that all sanctions have ended.
(4) Grounds for Revocation of any Certificate
of Authorization.
(A) Institution no longer
holds a Certificate of Approval or Letter of Exemption issued by the Texas
Workforce Commission.
(B)
Institution loses accreditation from Board-recognized accreditor.
(C) Institution's Accreditor is removed from
the U.S. Department of Education or the Board's list of approved accreditors.
(i) If the institution's Certificate of
Authorization is revoked due to its accrediting agency's removal from the U.S.
Department of Education and/or the Board's list of approved accreditors, the
Board, or Board staff as delegated, shall set a provisional time period within
which institutions may continue to operate, not to exceed any provisional time
period set by the United States Department of Education.
(ii) If the institution's Certificate of
Authorization is revoked due to its accrediting agency's removal from the U.S.
Department of Education or the Board's list of approved accreditors, a request
to extend its Certificate of Authorization for the provisional time period set
under paragraph (3)(C)(i) of this section, must be submitted to the
Commissioner within ten (10) days of publication, by either the U.S. Department
of Education or the Board, of such revocation.
(D) Institution fails to comply with data
reporting, substantive change notification requirements, or annual review
reporting requirements.
(E) Board
staff recommends revocation based on deficiencies in compliance with the
principles addressed in §
7.4 of this chapter as evidenced
by lack of compliance with the Board-recognized accreditor's standards, which
are found in annual review documentation and not corrected by the institution
upon request by Board staff.
(F)
Institution offers degrees for which it does not have accreditor
approval.
(5) Process for
Removal of Authorization.
(A) Commissioner
notifies institution of grounds for revocation as outlined in paragraph (3) of
this section unless paragraph (3)(C) of this section applies and the Board sets
a provisional time period for compliance.
(B) Upon receipt of the notice of revocation,
the institution shall not enroll new students and may only grant or award
degrees or offer courses leading to degrees in Texas to students enrolled on
the date of notice of revocation until it has either been granted a Certificate
of Authority to grant degrees, or has received a determination that it did not
lose its qualification for a Certificate of Authorization.
(C) Within ten (10) days of its receipt of
the Commissioner's notice, the institution must provide, as directed by Board
staff, one or more of the following:
(i) proof
of its continued qualification for the exemption; or
(ii) submit data as required by §
7.13 of this chapter; or
(iii) a plan to correct any non-compliance or
deficiencies which lead to revocation; or
(iv) a plan to seek new Board-recognized
accreditation; or
(v) written
intention to apply for a Certificate of Authority within 60 days of the notice
of revocation; or
(vi) a written
teach-out plan, which must be approved by Board staff before
implementation.
(D)
After reviewing the evidence, the Commissioner will issue a notice of
determination, which in the case of an adverse determination, shall contain
information regarding the reasons for the denial, and the institution's right
to a hearing.
(E) If a
determination under this section is adverse to an institution, it shall become
final and binding unless, within forty-five (45) days of its receipt of the
adverse determination, the institution invokes the administrative remedies
contained in Chapter 1, Subchapter B of this title (relating to Dispute
Resolution).
(F) If a determination
allows the institution to continue operating, a new Certificate of
Authorization will be provisionally-granted. Provisions for continued operation
under the new Certificate of Authorization may include, but are not limited to:
(i) requirements to provide updates to Board
staff on a monthly basis;
(ii)
continued progress toward full compliance with all Board rules and
requirements;
(iii) continued
progress toward new Board-recognized accreditation, if applicable, or toward
approval for a Certificate of Authority; and
(iv) other requirements imposed by the
Board.
(G) Certificates
of Authorization which are provisionally-granted after a notice of revocation
continue only as long as the institution complies with all such
provisions.
(6) Closure
of an Institution.
(A) The governing board,
owner, or chief executive officer of an institution that plans to cease
operation shall provide the Board with written notification of intent to close
at least ninety (90) days prior to the planned closing date.
(B) If an institution closes unexpectedly,
the governing board, owner, or chief executive officer of the school shall
provide the Board with written notification immediately.
(C) If an institution closes or intends to
close before all currently enrolled students have completed all requirements
for graduation, the institution shall assure the continuity of students'
education by entering into a teach-out agreement with another institution
authorized by the Board to hold a Certificate of Authority, with an institution
operating under a Certificate of Authorization, or with a public or private
institution of higher education as defined in Texas Education Code §
61.003. The agreement
shall be in writing, shall be subject to Board approval, shall contain
provisions for student transfer, and shall specify the conditions for
completion of degree requirements at the teach-out institution. The agreement
shall also contain provisions for awarding degrees.
(D) The Certificate of Authorization for an
institution is automatically withdrawn when the institution closes. The
Commissioner may grant to an institution that has a degree-granting authority
temporary approval to award a degree(s) in a program for which the institution
does not have approval in order to facilitate a formal agreement as outlined
under this section.
(E) The
curriculum and delivery shall be appropriate to accommodate the remaining
students.
(F) No new students shall
be allowed to enter the transferred degree program unless the new entity seeks
and receives permanent approval for the program(s) from the Board.
(G) The institution shall transfer all
academic records pursuant to §
7.15 of this chapter (relating to
Academic Records Maintenance, Protection, and Repository of Last
Resort).
(H) The Coordinating Board
has delegated its authority to approve institution closure arrangements and
agreements to the Assistant Commissioner with oversight of the closing
institution.
Notes
19
Tex. Admin. Code §
7.7
The provisions of
this §7.7 adopted to be effective December 6, 2009, 34 TexReg 8515;
amended to be effective May 26, 2010, 35 TexReg 4152; amended to be effective
November 29, 2010, 35 TexReg 10497; amended to be effective February 26, 2013,
38 TexReg 1152; amended to be effective August 15, 2013, 38 TexReg 5070;
Amended by
Texas
Register, Volume 41, Number 47, November 18, 2016, TexReg
9113, eff.
11/23/2016;
Amended by
Texas
Register, Volume 43, Number 08, February 23, 2018, TexReg
1068, eff.
2/28/2018; Amended
by
Texas
Register, Volume 45, Number 09, February 28, 2020, TexReg
1395, eff.
3/2/2020; Amended by
Texas
Register, Volume 46, Number 45, November 5, 2021, TexReg
7600, eff.
11/11/2021