Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD
Chapter 7. PRIVATE AND OUT-OF-STATE PUBLIC POSTSECONDARY EDUCATIONAL INSTITUTIONS OPERATING IN TEXAS
Subchapter A. GENERAL PROVISIONS
(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 7, §§7.1 - 7.24, concerning Private and Out-of-State Public Postsecondary Educational Institutions Operating in Texas.
Specifically, this repeal will allow Board staff to combine provisions of Chapter 7 into a new chapter that will improve the processes private postsecondary educational institutions and out-of-state public postsecondary educational Institutions follow in order to operate in Texas.
Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the repeal.
Dr. Stafford has also determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of administering the repeal will be that the new sections will be a quicker, more effective, and more appropriate Board response to the requirements and needs of institutions wishing to operate in Texas. There are no anticipated economic costs to persons who are required to comply with the repeals as proposed. There is no effect on small or micro businesses.There is no impact on local employment.
Comments on the proposal may be submitted to Joseph Stafford, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or Joe.Stafford@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register. A public hearing will be held in the Boardroom of the Coordinating Board offices Monday April 7, 2008, from 10 a.m. to 12 noon. While oral comments will be permitted, such comments must also be submitted in written form for consideration.
The repeal is proposed under the Texas Education Code, Chapter 61, Subchapter G, and Texas Education Code Chapter 132, which provides the Coordinating Board with the authority to regulate the awarding or offering of degrees, credit toward degrees, and the use of certain terms.
The repeal affects implementation of Texas Education Code, Subchapter G, §§61.301 - 61.319, Subchapter H, §§61.401 - 61.405 and Texas Education Code Chapter 132.
§7.1.Purpose.
§7.2.Authority.
§7.3.Definitions.
§7.4.Recognition of Accrediting Agencies.
§7.5.Recognized Accrediting Agencies, Exemptions, Revocation of Exemptions, and Certificates of Authorization.
§7.6.Administrative Procedures Related to Certification of Nonexempt Institutions.
§7.7.Certificate of Authority--Eligibility, Applications, Renewals, and Amendments.
§7.8.Standards for Certificates of Authority.
§7.9.Certificate of Registration for Agents of Nonexempt Institutions.
§7.10.Operation of Branch Campuses, Extension Centers, or Other Off-Campus Units.
§7.11.Occasional Courses, Changes of Level at Exempt Institutions, and Out-of-State Public Institutions.
§7.12.Revocation of Certificates of Nonexempt Institutions and Agents.
§7.13.Review and Use of Degrees from Institutions Not Eligible for Certificates of Authority.
§7.14.Information Provided to Protect Public from Fraudulent, Substandard, or Fictitious Degrees.
§7.15.Prohibitions.
§7.16.Duties upon Dissolution of an Institution.
§7.17.Procedures Related to the Assessment of Administrative Penalties.
§7.18.Administrative Penalties.
§7.19.Injunctions.
§7.20.Civil Penalties.
§7.21.Deceptive Trade Practices Act.
§7.22.Alternative Certification of Authority.
§7.23.Alternative Certificate of Authority--Eligibility, Applications, and Renewals.
§7.24.Administrative Procedures Relating to Alternative Certification of Nonexempt Institutions.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 12, 2008.
TRD-200801422
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 2008
For further information, please call: (512) 427-6114
Subchapter A. GENERAL PROVISIONS
The Texas Higher Education Coordinating Board proposes new §§7.1 - 7.16, concerning Degree Granting Colleges and Universities Other Than Texas Public Institutions. Rules in Chapters 7 and 12 currently provide for the issuance of certificates of authority for degree-granting postsecondary institutions other than Texas public institutions.
Specifically, by consolidating and reorganizing the material in these two chapters, institutions wishing to operate in Texas will be able to establish operations more easily and quickly. The language in the new Chapter 7 is intended to improve the understanding of the rules. There is also new clarifying language in §7.6 (relating to Recognition of Accrediting Agencies) on the standards for recognizing accrediting agencies. Other minor clarifying language changes are incorporated throughout the chapter. With the exception of two sections which have been deleted (§12.29 and §12.39), the provisions of Chapter 12 have been incorporated in the new Chapter 7. Section 12.1 (Purpose), §12.2 (Authority) and §12.3 (Definitions) have moved into §7.1 (Purpose), §7.2 (Authority), and §7.3 (Definitions), respectively. Sections 12.21 - 12.26, 12.28, 12.30 and 12.36 - 12.43 have moved to §7.9 (Certificate of Authority for Career Schools and Colleges). Sections 12.27, 12.31 - 12.33, 12.35, and 12.44 - 12.45 have been incorporated into §7.5 (Standards for Operations of Institutions). Section 12.34 has been moved to §7.12 (Changes of Ownership and Other Substantive Changes). Section 12.46 has been incorporated into §7.4 (Obtaining a Certificate of Authorization or a Certificate of Authority to Operate in Texas). The two deleted sections (§12.29 relating to the Texas Success Initiative and §12.39 relating to the Associate of Occupational Studies Degree), are no longer applicable to Career Schools and Colleges. The provisions of the current Chapter 7 have been consolidated and reorganized. Sections 7.1 - 7.3 remain under the current titles. Section 7.4 (Recognition of Accrediting Agencies) keeps that title but is now numbered §7.6. Section 7.5 (Recognized Accrediting Agencies, Exemptions, Revocation of Exemptions, and Certificates of Authority) has been incorporated into §7.4 (Obtaining a Certificate of Authorization or a Certificate of Authority to Operate in Texas). Section 7.6 (Administrative Procedures Related to Certification of Nonexempt Institutions) and §7.7 (Certificate of Authority - Eligibility, Applications, Renewals, and Amendments) have been incorporated into Section 7.7 (Certificate of Authority). Section 7.8 (Standards for Certificates of Authority) has been incorporated into §7.5 (Standards for Operation of Institutions). Section 7.9 (Certificate of Registration for Agents of Nonexempt Institutions) has moved to §7.11 (Registration of Agents). Section 7.10 (Operation of Branch Campuses, Extension Centers, or Other Off-Campus Units) has been moved to §7.10 (Operation of Branch Campuses, Extension Centers or Other Off-Campus Units, Occasional Courses and Changes in Level). Section 7.11 (Occasional Courses, Changes of Level at Exempt Institutions, and Out-of-State Public Institutions) has been incorporated into §7.12 (Changes of Ownership and Other Substantive Changes. This section has significant new clarifying language.) Section 7.12 (Revocation of Certificates of Nonexempt Institutions and Agents) has moved to §7.13 (Revocation of Certificates of Nonexempt Institutions and Agents). Section 7.13 (Review and Use of Degrees from Institutions Not Eligible for Certificates of Authority) has moved to §7.14 (Review and Use of Degrees from Institutions Not Eligible for Certificates of Authority). Section 7.14 (Information Provided to Protect the Public from Fraudulent, Substandard, or Fictitious Degrees) has moved to §7.15 (Use of Fictitious, Fraudulent, or Substandard Degrees). Sections 7.15 - 7.21 (relating to Prohibitions, etc.) have been incorporated into Section 7.16 (Prohibitions, Administrative Penalties and Injunctions). Sections 7.22 - 7.24 (relating to Alternative Certificates of Authority) have been consolidated into §7.8 (Alternative Certificates of Authority).
Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the new sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.
Dr. Stafford has also determined that for each year of the first five years the new sections are in effect, the public benefit anticipated as a result of administering the sections will be a quicker, more effective, and more appropriate Board response to the requirements and needs of institutions wishing to operate in Texas. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no effect on small or micro businesses. There is no impact on local employment.
Comments on the proposal may be submitted to Joseph Stafford, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or Joe.Stafford@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register. A public hearing will be held by Coordinating Board staff in the Boardroom of the Coordinating Board offices, 1200 East Anderson Lane, Austin, Texas, Monday April 7, 2008, from 10 a.m. to 12 noon. While oral comments will be permitted, such comments must also be submitted in written form for consideration.
The new sections are proposed under the Texas Education Code, Chapter 61, Subchapter G, and Texas Education Code Chapter 132, which provides the Coordinating Board with the authority to regulate the awarding or offering of degrees, credit toward degrees, and the use of certain terms.
The new sections affect implementation of Texas Education Code, Subchapter G, §§61.301 - 61.319, Subchapter H, §§61.401 - 61.405 and Texas Education Code Chapter 132.
§7.1.Purpose.
This chapter clarifies the standards and details the process by which private postsecondary educational institutions and public out-of-state postsecondary educational institutions, as well as career schools and colleges, may be authorized to offer degrees, to offer credits toward degrees, to employ agents, to use certain academic terms within the state, and to limit the use of certain academic degrees by individuals and institutions. The chapter proscribes certain behavior, and specifies the sanctions that may be imposed for violations of the applicable rules and statutes.
§7.2.Authority.
These sections relate to Texas Education Code, Chapter 61, Subchapter G, §§61.301 - 61.321 and Subchapter H, §§61.401 - 61.405, which regulate the awarding or offering of degrees, awarding or offering credit toward degrees, and use of certain academic terms by private postsecondary educational institutions and out-of-state public postsecondary educational institutions, and Chapter 132, relating to career schools and colleges.
§7.3.Definitions.
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Academic associate degree program--A grouping of courses designed to transfer to an upper-level baccalaureate program. This specifically refers to the associate of arts and the associate of science degrees.
(2) Accreditation--The status of public recognition that a recognized accrediting agency grants to an educational institution.
(3) Accrediting agency--A legal entity that conducts accreditation activities through voluntary peer review and makes decisions concerning the accreditation status of institutions.
(4) Agent--A person employed by or representing a postsecondary educational institution in an official capacity within or without Texas who:
(A) solicits any Texas student for enrollment in the institution;
(B) solicits or accepts payment from any Texas student for any service offered by the institution; or
(C) while having a physical presence in Texas, solicits students or accepts payment from students who do not reside in Texas.
(5) Alternative Certificate of Authority--A type of certificate of authority for approval of postsecondary institutions, with operations in the state of Texas, to confer degrees or courses applicable to degrees, or to solicit students for enrollment in institutions that confer degrees or courses applicable to degrees that is governed by flexible, streamlined procedures, emphasizing the importance of innovation, consumer choice, and measurable outcomes in the delivery of educational services.
(6) Applied associate degree program--A grouping of courses designed to lead the individual directly to employment in a specific career and that includes at least fifteen (15) semester credit hours or twenty-three (23) quarter credit hours of general education courses. This specifically refers to the associate of applied arts and the associate of applied science degrees.
(7) Associate degree program--A grouping of courses designed to lead the individual directly to employment in a specific career, or to transfer to an upper-level baccalaureate program. This specifically refers to the associate of arts, the associate of science, the associate of applied arts and the associate of applied science.
(8) Board--The Texas Higher Education Coordinating Board.
(9) Board staff--The staff of the Texas Higher Education Coordinating Board including the Commissioner of Higher Education and all employees who report to the Commissioner.
(10) Branch campus, extension center, or other off-campus unit--Any institution or part of an institution offering or proposing to offer away from the home campus more than occasional courses or courses leading to the granting of a degree without the necessity for courses to be taken at the main campus.
(11) Career school or college--Any business enterprise operated for a profit, or on a nonprofit basis, that maintains a place of business in the State of Texas or solicits business within the State of Texas, and that is not specifically exempted by Texas Education Code §132.002, and:
(A) That offers or maintains a course or courses of instruction or study; or
(B) At which place of business such a course or courses of instruction or study is available through classroom instruction, by electronic media, by correspondence, or by some or all, to a person for the purpose of training or preparing the person for a field of endeavor in a business, trade, technical, or industrial occupation, or for career or personal improvement.
(12) Certificate of Approval--The Texas Workforce Commission's approval of career schools or colleges with operations in Texas to maintain, advertise, solicit for, or conduct any program of instruction in this state.
(13) Certificate of authority--The Board's approval of postsecondary institutions, (other than exempt institutions) with operations in the state of Texas, to confer degrees or courses applicable to degrees, or to solicit students for enrollment in institutions that confer degrees or courses applicable to degrees.
(14) Certificate of authorization--The Board's acknowledgment that an institution is qualified for an exemption from the regulations herein.
(15) Change of ownership or control--Any change in ownership or control of a career school or college or an agreement to transfer control of such institution.
(A) The ownership or control of a career school or college is considered to have changed:
(i) In the case of ownership by an individual, when more than fifty (50) percent of the institution has been sold or transferred;
(ii) In the case of ownership by a partnership or a corporation, when more than fifty (50) percent of the institution or of the owning partnership or corporation has been sold or transferred; or
(iii) When the board of directors, officers, shareholders, or similar governing body has been changed to such an extent as to significantly alter the management and control of the institution.
(B) A change of ownership or control does not include a transfer that occurs as a result of the retirement or death of the owner if transfer is to a member of the owner's family who has been directly and constantly involved in the management of the institution for a minimum of two years preceding the transfer. For the purposes of this section, a member of the owner's family is a parent, sibling, spouse, or child; spouse's parent or sibling; or sibling's or child's spouse.
(16) Cited--Any reference to an institution in a negative finding or action by an accrediting agency.
(17) Classification of Instructional Programs (CIP) Code--The four (4)- or six (6)-digit code assigned to an approved associate degree program in accordance with the CIP manual published by the U. S. Department of Education, National Center for Education Statistics. CIP codes define the authorized teaching field of the specified degree program, based upon the occupation(s) for which the program is designed to prepare its graduates.
(18) Commissioner--The Commissioner of Higher Education.
(19) Concurrent Instruction--Students enrolled in different classes, courses, and/or subjects being taught, monitored, or supervised simultaneously by a single faculty member.
(20) Degree--Any title or designation, mark, abbreviation, appellation, or series of letters or words, including "associate", "bachelor's", "master's", "doctor's" and their equivalents and foreign cognates, which signify, purport to signify, or are generally taken to signify satisfactory completion of the requirements of all or part of a program of study which is generally regarded and accepted as an academic degree-level program by accrediting agencies recognized by the Board.
(21) Educational or training establishment--An enterprise offering a course of instruction, education, or training that is not represented as being applicable to a degree.
(22) Exempt institution--An institution that is accredited by an agency recognized by the Board under §7.2 of this chapter (relating to Authority) or a career school or college that applies for and is declared exempt by the Texas Workforce Commission as described in Texas Education Code, §61.003(8) or Texas Education Code Chapter 132, respectively. Exempt institutions may still have to comply with certain Board rules.
(23) Fictitious degree--A counterfeit or forged degree or a degree that has been revoked.
(24) Fraudulent or substandard degree--A degree conferred by a person who, at the time the degree was conferred, was:
(A) operating in this state in violation of this chapter;
(B) not eligible to receive a certificate of authority under this chapter and was operating in another state in violation of a law regulating the conferral of degrees in that state or in the state in which the degree recipient was residing or without accreditation by a recognized accrediting agency, if the degree is not approved through the review process described by §7.14 of this chapter (relating to Review and Use of Degrees from Institutions Not Eligible for Certificates of Authority); or
(C) not eligible to receive a certificate of authority under this chapter and was operating outside the United States, and whose degree the Board, through the review process described by §7.14 of this chapter, determines is not the equivalent of an accredited or authorized degree.
(25) Home campus--The headquarters of an institution, such location to be determined as a matter of fact by the Commissioner based upon consideration of information such as, but not limited to the following:
(A) where the institution is chartered;
(B) the site, campus or city where the principal or chief executive's offices are located;
(C) the site, campus or city where the institution conducts the preponderance of its instructional activities; and
(D) any other pertinent and material facts.
(26) Occasional courses--Courses offered not more than twice at any given location in the state.
(27) Out-of-state public postsecondary institution--Any senior college, university, technical institute, junior or community college, or the equivalent which is controlled by a public body organized outside the boundaries of the State of Texas.
(28) Person--Any individual, firm, partnership, association, corporation, enterprise, or other private entity or any combination thereof.
(29) Postsecondary educational institution--An educational institution which furnishes or offers to furnish courses of instruction in person, by electronic media, by correspondence, or by some means or all leading to a degree; provides or offers to provide credits alleged to be applicable to a degree; or represents that credits earned or granted are collegiate in nature, including describing them as "college-level," or at the level of any protected academic term.
(30) Program or Program of study--Any course or grouping of courses which are represented as entitling a student to a degree or to credits applicable to a degree.
(31) Protected term--The term "college," "university," "school of medicine," "medical school," "health science center," "school of law," "law school," or "law center," its abbreviation, foreign cognate or equivalents.
(32) Recognized accrediting agency--Any accrediting agency the standards of accreditation or membership for which have been found by the Board to be sufficiently comprehensive and rigorous to qualify its institutional members for an exemption from the operation of this chapter.
(33) Representative--A person who acts on behalf of an institution regulated under this chapter. The term includes, without limitation, recruiters, agents, tutors, counselors, business agents, instructors, and any other instructional or support personnel.
(34) Required state or national licensure--The requirement for graduates of certain professional programs to obtain a license from state or national entities for entry-level practice.
§7.4.Obtaining a Certificate of Authorization or a Certificate of Authority to Operate in Texas.
(a) A new institution must request and be granted a certificate of authority, an alternative certificate of authority, or a certificate of authorization by the Commissioner before it can offer to award degrees or courses leading to degrees. The Commissioner may issue a certificate of authorization to grant degrees to an institution, upon the institution's request and demonstration that it qualifies for an exemption under this subsection. The exemptions provided by this subsection apply only to the degree level for which the programs or the institution is accredited or approved, as applicable, and if an institution offers to award a degree at a level for which it is not accredited or approved by the appropriate agency of the State of Texas, the exemption does not apply. Upon issuance of a certificate of authorization as an exempt institution, the provisions of this chapter, with the exception of §7.15 and §7.16 of this chapter, do not apply to following types of postsecondary institutions:
(1) Schools or colleges that do not award degrees or offer courses leading to degrees. However, such institutions are subject to the rules of the Texas Workforce Commission Pursuant to Chapter 132 of the Texas Education Code concerning career schools and colleges.
(2) A branch campus, extension center, or other off-campus unit operated by a private or independent Texas postsecondary institution as defined by Texas Education Code, §61.003.
(3) The home campus of an institution which is fully accredited by a recognized accrediting agency.
(4) An institution or degree program that has received approval by an agency of the State of Texas authorizing the graduates of the institution to take a state licensing examination administered by that agency. The granting of permission by a state agency to a graduate of an institution to take a licensing examination does not by itself constitute approval of the institution or degree program required for an exemption under this subsection.
(b) Institutions holding a Certificate of Approval from the Texas Workforce Commission to operate as a Career School or College may be able to obtain a Certificate of Authority to award degrees under §7.9 of this chapter (relating to Certificate of Authority for Career Schools and Colleges). All other non-exempt institutions must use either §7.7 or §7.8 of this chapter.
(c) The home campus of an institution that is not exempt under the provisions of subsection (a) of this section may obtain a certificate of authority under either §7.7 of this chapter (relating to Certificate of Authority) or an alternative certificate of authority under §7.8 of this chapter (relating to Alternative Certificates of Authority).
(d) Branch campuses of out-of-state public institutions must obtain a certificate of authority as outlined in §7.10 of this chapter (relating to Operation of Branch Campuses, Extension Centers, or Other Off-Campus Units by Exempt Institutions).
(e) Agents of an institution that is not exempt under the provisions of subsection (a) of this section, or operating with an alternative certificate of authority as provided by §7.8 of this chapter, must register with the Board as provided by §7.11 of this chapter (relating to Registration of Agents).
(f) A substantive change in the conditions under which an institution was granted a certificate of authority, an alternative certificate of authority or an exemption (certificate of authorization) must be reported in accordance with §7.12 of this chapter (relating to Occasional Courses, Changes of Level of Instruction, Changes of Ownership, and Other Substantive Changes). An accredited institution that is exempt under subsection (a)(3) of this section continues in that status so long as it maintains accreditation by a recognized accrediting agency.
(g) An institution offering only religious degrees may request a certificate of authorization affirming exempt status.
(h) Revocation of an exemption.
(1) If the Commissioner receives credible evidence that an institution is no longer qualified for an exemption, the institution shall be notified that its exempt status is revoked, and that the institution is subject to the requirements of Texas Education Code, Chapters 61 or 132 as appropriate, and this chapter.
(2) Upon receipt of the notice of revocation, the institution must cease granting or awarding degrees in Texas 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 an exemption.
(3) Within ten (10) days of its receipt of the Commissioner's notice, the institution must respond and offer proof of its continued qualification for the exemption.
(4) 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.
(5) 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).
§7.5.Standards for Operation of Institutions.
All institutions that operate within the State of Texas are expected to meet the following standards. Standards (2) and (3) do not apply to branch campuses operating under §7.10 of this chapter (relating to Operation of Branch Campuses, Extension Centers or Other Off-Campus Units, Occasional Courses and Changes in Level). These standards will be enforced through the certificate of authority process or the alternative certificate of authority process. Substantially similar standards will be enforced by recognized accrediting agencies. Particular attention will be paid to the institution's commitment 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. These standards represent generally accepted administrative and academic practices and principles of accredited postsecondary institutions 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) Legal Compliance. The institution shall be maintained and operated in compliance with all applicable ordinances and laws, including the rules and regulations adopted to administer those ordinances and laws. Career Schools and Colleges also shall demonstrate compliance with Texas Education Code, Chapter 132 by supplying a copy of a certificate of approval to operate a career school or college or a letter of exemption from the Texas Workforce Commission.
(2) Qualifications of Institutional Officers.
(A) The character, education, and experience in higher education of members of a policy making body, administrators, supervisors, counselors, agents, and other institutional officers shall be such as may reasonably ensure that the institution can maintain the standards of the Board and progress to accreditation within the time limits set by the Board.
(B) The chief academic officer shall hold an earned advanced degree appropriate for the mission of the institution, preferably, an earned doctorate awarded by an institution accredited by a recognized accrediting agency, and shall demonstrate sound aptitude for and experience with curriculum development and assessment; accreditation standards and processes as well as all relevant state regulations; leadership and development of faculty, including the promotion of scholarship, research, service, academic freedom and responsibility, and tenure (where applicable); and the promotion of student success.
(C) In the case of a renewal of a certificate of authority, the institutional officers also shall demonstrate a record of effective leadership in administering the institution.
(3) Policy Making. The institution shall have an active policy-making body consisting of at least three (3) people, focused on promoting the mission of the institution, and shall exercise its authority to ensure that the mission of the institution is carried out. Members of the policy-making body shall represent the interests of all of the constituencies of the institution who are essential to carrying out the mission including the faculty, students, and staff.
(4) Distinction of Roles. There shall be sufficient distinction among the roles and personnel of the policy-making body of the institution, the administration, and faculty to ensure their appropriate separation and independence.
(5) 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, line of credit, or surety instrument 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.
(6) 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 at a not-for-profit institution shall be kept in accordance with the guidelines of the National Association of College and University Business Officers as set forth in College and University Business Administration, (Sixth 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.
(7) Institutional Assessment. Continual and effective assessment, planning, and evaluation of all aspects of the institution shall be conducted to advance and improve the institution. These aspects include, but are not limited to, the academic program of teaching, research, and public service; administration; financial planning and control; student services; facilities and equipment, and auxiliary enterprises.
(8) Institutional Evaluation.
(A) The institution shall establish adequate procedures for planning and evaluation, define in measurable terms its expected educational results, and describe how those results will be achieved.
(B) For applied associate degree programs, the evaluation criteria shall include the following: mission, labor market need, curriculum, enrollment, graduates, student placement, follow-up results, ability to finance each program of study, facilities and equipment, instructional practices, student services, public and private linkages, qualifications of faculty and administrative personnel, and success of its students.
(9) Administrative Resources. All institutions having a certificate of authority shall have daily access to electronic communication, including e-mail and a connection to the Internet/World Wide Web. Institutions shall be able to receive and send time-sensitive information to students, faculty, the Board, and other stakeholders.
(10) Student Admission and Remediation.
(A) Upon the admission of a student to any undergraduate program, the institution shall document the student's level of preparation to undertake college level work by obtaining proof of the student's high school graduation or General Educational Development (GED) certification. 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 academic skills of each entering student may be assessed with an instrument of the institution's choice. The institution may provide an effective program of remediation for students diagnosed with deficiencies in their preparation for collegiate study.
(B) 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 that the student holds a baccalaureate degree from an institution accredited by a recognized accrediting agency, or an institution holding a certificate of authority to offer baccalaureate degrees under the provisions of this chapter, or a degree from a foreign institution equivalent to a baccalaureate degree from an accredited institution. The procedures used by the institution for establishing the equivalency of a foreign degree shall be consistent with the guidelines of the National Council on the Evaluation of Foreign Education Credentials or its successor.
(11) 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.
(A) Each faculty member, except as provided by subparagraph (E) of this paragraph, teaching in an academic associate, applied associate leading to required state or national licensure, or baccalaureate level degree program shall have at least a master's degree from an institution accredited by a recognized agency with at least eighteen (18) graduate semester credit hours in the discipline, or closely related discipline, being taught.
(B) Each faculty member except, as provided by subparagraph (E) of this paragraph, teaching career and technical courses in a technical associate degree program, or career and technical courses that academic associate or baccalaureate students may choose to take, shall have at least an associate degree in the discipline being taught from an institution accredited by a recognized agency and at least three (3) years of full-time direct or closely related experience in the discipline being taught.
(C) Each faculty member, except as provided by subparagraph (E) of this paragraph, teaching general education courses in a technical associate degree program shall have at least a baccalaureate degree from an institution accredited by a recognized accrediting agency with at least eighteen (18) graduate semester credit hours in the discipline, or closely related discipline, being taught.
(D) Except as provided by subparagraph (E) of this paragraph, graduate-level degree programs shall be taught by faculty holding doctorates, or other degrees generally recognized as the highest attainable in the discipline, or closely related discipline, awarded by institutions accredited by an agency recognized by the Board.
(E) With the approval of a majority of the institution's governing board, an individual with exceptional experience in the field of appointment, which may include direct and relevant work experience, professional licensure and certification, honors and awards, continuous documented excellence in teaching, or other demonstrated competencies and achievements, may serve as a faculty member without the degree credentials specified above. Such appointments shall be limited and the justification for each such appointment shall be fully documented. The Board may review the qualifications of the full complement of faculty providing instruction at the institution to verify that such appointments are justified.
(12) Faculty Size. There shall be a sufficient number of faculty holding full-time teaching appointments that are accessible to the students 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 (1) full-time faculty member in each program. At the graduate level, there shall be at least two (2) full-time faculty members in each program.
(13) Academic Freedom and Faculty Security. The institution shall adopt, adhere to, 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 stated and published in a faculty handbook, adhered to by the institution, and supplied to all faculty. The specific terms and conditions of employment of each faculty member shall be clearly described in a written document to be given to that faculty member, with a copy to be retained by the institution.
(14) Curriculum
(A) 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. Each program shall adequately cover the breadth of knowledge of the discipline taught and coursework must build on the knowledge of previous courses to increase the rigor of instruction and the learning of students in the discipline. A majority of the courses in the areas of specialization required for each degree program shall be offered in organized classes by the institution. An institution may offer for-credit coursework that does not directly relate to approved programs, provided that it does not exceed twenty-five (25) percent of all courses.
(B) Academic associate degrees and applied associate degrees must consist of at least sixty (60) semester credit hours or ninety (90) quarter credit hours and not more than 66 semester credit hours or 99 quarter credit hours. A baccalaureate degree must consist of at least one hundred twenty (120) semester credit hours or one hundred eighty (180) quarter credit hours and not more than one hundred thirty-nine (139) semester credit hours or two hundred eight (208) quarter credit hours. A master's degree must consist of at least thirty (30) semester credit hours or forty-five (45) quarter credit hours and not more than thirty-six (36) semester credit hours or fifty-four (54) quarter credit hours of graduate level work past the baccalaureate degree.
(C) Courses designed to correct deficiencies, remedial courses for associate and baccalaureate programs, and leveling courses for graduate programs, shall not count toward requirements for completion of the degree.
(D) The degree level, degree designation, and the designation of the major course of study shall be appropriate to the curriculum offered and shall be accurately listed on the student's diploma and transcript.
(15) General Education.
(A) Each academic associate degree program shall contain a general education component consisting of at least twenty (20) semester credit hours or thirty (30) quarter credit hours. Each applied associate degree program shall contain a general education component of at least fifteen (15) semester credit hours or twenty-three (23) quarter credit hours. Each baccalaureate degree program shall contain a general education component consisting of at least twenty-five (25) percent of the total hours required for graduation from the program.
(B) 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 basic computer instruction.
(C) The applicant institution may arrange to have all or part of the general education component taught by another institution, provided that:
(i) the applicant institution's faculty shall design the general education requirement;
(ii) there shall be a written agreement between the institutions specifying the applicant institutions' general education requirements and the manner in which they will be met by the providing institution; and
(iii) the providing institution shall be accredited by a recognized accrediting agency or hold a certificate of authority.
(16) Credit for Work Completed Outside a Collegiate Setting.
(A) An institution awarding collegiate credit for work completed outside a collegiate setting (outside a degree-granting institution accredited by a recognized agency) shall establish and adhere to a systematic method for evaluating that work, shall award credit only in course content which falls within the authorized degree programs of the institution or, if by evaluative examination, falls within the standards for awarding credit by exam used by public universities in Texas, 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 work completed outside a collegiate setting to ongoing review and evaluation by the institution's teaching faculty. To these ends, recognized evaluative examinations such as the Advanced Placement program (AP) or the College Level Examination Program (CLEP) may be used.
(B) No more than one half of the credit applied toward a student's associate or baccalaureate degree program may be based on work completed outside a collegiate setting. Those credits must be validated in the manner set forth in subparagraph (A) of this paragraph. No more than fifteen (15) semester credit hours or twenty-three (23) quarter credit hours of that credit may be awarded by means other than recognized evaluative examinations. No graduate credit for work completed outside a collegiate setting 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.
(17) Learning Resources. The institution shall maintain and ensure that students have access to learning resources with a collection of books, publications, on-line materials and other resources and with staff, services, equipment, and facilities that are adequate and appropriate for the purposes and enrollment of the institution. Learning resources shall be current, well distributed among fields in which the institution offers instructions, cataloged, logically organized, and readily located. The institution shall maintain a continuous plan for learning resources development and support, including objectives and selections of materials. Current and formal written agreements with other institutions or with other entities may be used. Institutions offering graduate work shall provide access to learning resources that include basic reference and bibliographic works and major journals in each discipline in which the graduate program is offered. Career and technical degree programs shall provide adequate and appropriate resources for completion of course work.
(18) Facilities. The institution shall have adequate space, equipment, and instructional materials to provide education of good quality. Student housing owned, maintained, or approved by the institution, if any, shall be appropriate, safe, adequate, and in compliance with applicable state and local requirements.
(19) Academic Records. Adequate records of each student's academic performance shall be securely and permanently maintained by the institution.
(A) The records for each student shall contain:
(i) student contact and identification information, including address and telephone number;
(ii) records of admission documents, such as high school diploma or GED (if undergraduate) or undergraduate degree (if graduate);
(iii) records of all courses attempted, including grade; completion status of the student, including the diploma, degree or award conferred to the student; and
(iv) any other information typically contained in academic records.
(B) Two copies of said records shall be maintained in secure places.
(C) Transcripts shall be provided upon request by a student, subject to the institution's obligation, if any, to cooperate with the rules and regulations governing state and federally guaranteed student loans.
(20) Accurate and Fair Representation in Publications, Advertising, and Promotion.
(A) Neither the institution nor its agents or other representatives shall engage in advertising, recruiting, sales, collection, financial credit, or other practices of any type which are false, deceptive, misleading, or unfair. Likewise, all publications, by any medium, shall accurately and fairly represent the institution, its programs, available resources, tuition and fees, and requirements.
(B) The institution shall provide students, prospective students prior to enrollment, and other interested persons with a printed or electronically published catalog. If the catalog is made available in only an electronic format, the institution must preserve at least one (1) printed copy thereof for at least ten (10) years. The catalog must contain, at minimum, the following information:
(i) the institution's mission;
(ii) a statement of admissions policies;
(iii) information describing the purpose, length, and objectives of the program or programs offered by the institution;
(iv) the schedule of tuition, fees, and all other charges and expenses necessary for completion of the course of study;
(v) cancellation and refund policies;
(vi) a definition of the unit of credit as it applies at the institution;
(vii) an explanation of satisfactory progress as it applies at the institution, including an explanation of the grading or marking system;
(viii) the institution's calendar, including the beginning and ending dates for each instructional term, holidays, and registration dates;
(ix) a complete listing of each regularly employed faculty member showing name, area of assignment, rank, and each earned degree held, including degree level, degree designation, and institution that awarded the degree;
(x) a complete listing of each administrator showing name, title, area of assignment, and each earned degree held, including degree level, degree designation, and institution that awarded the degree;
(xi) a statement of legal control with the names of the trustees, directors, and officers of the corporation;
(xii) a complete listing of all scholarships offered, if any;
(xiii) a statement describing the nature and extent of available student services;
(xiv) complete and clearly stated information about the transferability of credit to other postsecondary institutions including two-year and four-year colleges and universities;
(xv) any 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; and
(xvi) any disclosures specified by the Board or defined in Board rules. If the catalog is made available in only an electronic format, the institution must preserve at least one printed copy thereof for at least ten years.
(C) The institution shall adopt, publish, and adhere to a fair and equitable cancellation and refund policy.
(D) The institution shall provide to each prospective student, newly-enrolled student, and returning student, complete and clearly presented information indicating the institution's current graduation rate by program and, if required by the Board, job placement rate by program for applied associate degree programs.
(E) Any special requirements or limitations of program offerings for the students at the Texas branch must be made explicit in writing. This may be accomplished by either a separate section in the catalog or a brochure separate from the catalog. However, if a brochure is produced, the student must also be given the regular catalog.
(F) Upon satisfactory completion of the program of study, the student shall be given appropriate educational credentials indicating the degree level, degree designation, and the designation of the major course of study, and a transcript accurately listing the information typically found on such a document, subject to institutions' obligation, if any, to enforce the rules and regulations governing state, and federally guaranteed student loans by temporarily withholding such credentials.
(21) 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 counseling, career information and planning, placement assistance, and testing services.
(22) Student Rights and Responsibilities. The institution shall establish and adhere to a clear and fair policy regarding due process in disciplinary matters; outline the established grievance process of the institution, which shall indicate that students should follow this process and may contact the Board and/or Attorney General to file a complaint about the institution if all other avenues have been exhausted, and publish these policies in a handbook, which shall include other rights and responsibilities of the students. This handbook shall be supplied in print or electronically to each student upon enrollment in the institution.
(23) Health and Safety. The institution shall provide an effective program of health and safety education reflecting the needs of the students. The program shall include information on emergency and safety procedures at the institution, including appropriate responses to illness, accident, fire, and crime.
(24) Reporting. The institutions shall provide to the Board annually, in a form established by the Board, student records of the type specified in Standard 19.
(25) Learning Outcomes. An institution may deviate from Standard 11 (relating to Faculty Qualifications), Standard 12 (relating to Faculty Size), Standard 16 (relating to Credit for Work Completed Outside a Collegiate Setting), and Standard 17 (relating to Learning Resources), if there is an objective system of assessing learning outcomes in place for each part of the curriculum and the institution can demonstrate that appropriate learning outcomes are being achieved.
§7.6.Recognition of Accrediting Agencies.
(a) The Texas Higher Education Coordinating Board may recognize accrediting agencies with a commitment to academic quality and student achievement that demonstrate, through an application process, compliance with the following criteria:
(1) Eligibility. The accrediting agency's application for recognition must demonstrate that the entity:
(A) Is recognized by the Secretary of Education of the United States Department of Education as an accrediting agency authorized to accredit educational institutions that offer the associate degree or higher. Demonstration of authorization shall include a photocopy of the official notice which clearly identifies all limitations on the scope of accreditation the Secretary of Education recognizes.
(B) Is applying for the same scope of recognition as that for which it is recognized by the Secretary of Education of the United States Department of Education:
(i) Using the U.S. Department of Education classification of instructional programs (CIP) code at the two-digit level, the applicant shall identify all fields of study in which institutions it accredits may offer degree programs.
(ii) Accrediting agencies shall, for each field of study in which an accredited institution may offer degree programs, specify the levels of degrees that may be awarded. Levels must be differentiated at least to the following, as defined in §7.3 of this chapter (relating to Definitions): applied associate degree, academic associate degree, baccalaureate degree, master's degree, first professional degree and doctoral degree.
(iii) Only institutions that qualify as eligible for United States Department of Education Title IV programs as a result of accreditation by the applicant agency will be considered exempt under §7.4 of this chapter (relating to Obtaining a Certificate of Authorization or a Certificate of Authority to Operate in Texas).
(C) Accredits institutions that have legal authority to confer postsecondary degrees as its primary activity;
(i) Accrediting agencies must show by listing all institutions accredited by the agency that either the majority of the accredited institutions have the legal authority to award postsecondary degrees or that it accredits at least fifty (50) institutions that have the legal authority to award postsecondary degrees.
(ii) An accrediting agency that accredits programs as well as institutions shall demonstrate that either it accredits more institutions than programs or that it has policies, procedures and staff sufficient to address institutional standards of quality in addition to program standards of quality.
(iii) Accrediting agencies must have standards that require all accredited institutions to comply with all applicable laws in the state and local jurisdiction in which they operate and that require accredited institutions to clearly and accurately communicate their accreditation status to the public.
(D) Requires an onsite review by a visiting team as part of initial and continuing accreditation of educational institutions;
(i) Each accrediting agency shall demonstrate, through its documented practices and/or its official policies, that it requires no fewer than three (3) members on a visiting team, that none have a monetary or personal interest in the findings of the on-site review, and that all have professional experience that qualifies them to review the institution's compliance with the standards of the agency.
(ii) Accrediting agencies shall provide a list of the visiting team members for the five (5) most recently completed on-site reviews. The list shall show name, employer, title of positions held with that employer and the standards for which the individual was responsible in that on-site review.
(E) Has policies or procedures that ensure the entity will promptly respond to requests for information from the Board:
(i) Each accrediting agency shall provide the Board its official policy regarding disclosure of information about institutions that are or have been candidates for accreditation and are or have been accredited. Agencies shall provide to the Board, within ten (10) working days, any new information and any requested information about a Texas institution that would be available to the public under that official policy.
(ii) Each accrediting agency shall include in its standards for accreditation of Texas institutions that the institutions disclose publicly and to the Board the number of degrees awarded at each level each year and the number of students enrolled in the fall of each year.
(F) Has sufficient resources to carry out its functions.
(i) Accrediting agencies shall identify the number of on-site reviews conducted during the most recent twelve (12) month period, the number of staff members who participated in those on-site reviews and the maximum number of on-site reviews conducted by any individual staff member. If that maximum number exceeds thirty (30), the agency shall explain how it expects to carry out its function of enforcing its standards on Texas institutions.
(ii) Each accrediting agency shall provide evidence that its ratio of current assets to current liabilities equals or exceeds 1.2.
(iii) Each accrediting agency shall demonstrate that its fees are reasonable for the accreditation services provided.
(2) Recognition. To receive and maintain recognition from the Board, the accrediting agency must, in addition to the items listed in paragraph (1) of this subsection:
(A) Provide the Board with current standards used by the entity in initial and ongoing accreditation reviews of educational institutions and invite the Board to participate in such reviews;
(i) Accrediting agencies must have publicly disclosed standards that are substantially similar to those in §7.5 of this chapter (relating to Standards for Operation of Institutions). In the application process, applicants shall demonstrate that similarity with a crosswalk or similar instrument.
(ii) Each accrediting agency shall provide its policy for periodic reviews. At a minimum, the accrediting agency must conduct on-site reviews at least every ten (10) years.
(iii) At least ten (10) working days before each schedule periodic on-site review of a Texas institution, accrediting agencies shall invite the Board staff to participate in the review. Such participation shall be at no expense to the institution or the accrediting agency.
(iv) Within ten (10) working days of an official change in standards, the agency shall notify the Board of those changes.
(v) By providing a copy of its publicly disclosed policies and procedures, each accrediting agency shall demonstrate that its initial and ongoing reviews and the resultant accreditation decisions are fair and consistent with the available evidence.
(vi) Accrediting agencies that use an advisory body, similar to the Certification Advisory Council described in §7.7(b) of this chapter (relating to Certificate of Authority), shall describe the advisory body's composition and authority. Accrediting agencies that do not use such a body shall describe the process used to ensure that the evidence obtained from reviews results in appropriate accreditation decisions.
(vii) The initial and ongoing reviews shall include an institutional self-evaluation process or a documented alternative process to promote continuous quality improvement.
(viii) Each accrediting agency shall have and publicly disclose its processes for appealing accreditation decisions.
(B) Provide the Board with written evidence of continuing recognition by the Secretary of Education of the United States Department of Education. Loss of recognition from the Secretary automatically results in loss of Board recognition at the same time. Written evidence may consist of a letter from the chief executive officer of the accrediting agency. Accrediting agencies shall submit the evidence annually prior to the anniversary date of the initial Board recognition.
(C) Provide a list of Texas educational institutions accredited by it; notify the Board in writing of any change to its list of Texas accredited institutions within ten (10) days of the change;
(D) Notify the Board of any investigated complaints concerning a Texas institution where the accrediting agency took official action on issues of non-compliance and the disposition of those complaints;
(E) Seek Board approval for any expansion of its recognized scope of accreditation authority; and
(F) Demonstrate that the ownership and control of the accrediting agency is sufficiently independent to insure that the accreditation process is conducted in the public interest.
(b) Other Information, Denial or Withdrawal of Recognition and Appeals.
(1) Once recognized, an accrediting agency retains that recognition unless and until the Board withdraws the recognition. Failure to comply with any requirements in this chapter will be grounds for the Board to consider withdrawing recognition.
(2) The Board may use information provided by parties other than the accrediting agency to assess the accrediting agency's commitment to academic quality and student achievement. The Board will consider any such information in an open, public meeting during which the accrediting agency may challenge the information.
(3) The Board will make any decision to deny recognition of an accrediting agency or to withdraw recognition from an accrediting agency in a public meeting.
(4) An institution operating in Texas as an exempt institution pursuant to §7.4 of this chapter (relating to Obtaining a Certificate of Authorization or a Certificate of Authority to Operate in Texas) when its recognized accrediting agency loses or voluntarily relinquishes its recognition will have ninety (90) days to apply for a Certificate of Authority or to reach agreement with the Board on a schedule for ceasing its operations in Texas.
(5) An accrediting agency or institution affected by any final decision under this subchapter may appeal that decision as provided in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).
§7.7.Certificate of Authority.
(a) The Board may issue to a nonexempt institution a certificate of authority to grant a degree or degrees and to enroll students for courses which may be applicable toward a degree if the Board finds that the institution meets the standards set forth in §7.5 of this chapter (relating to Standards for Operation of Institutions).
(b) Certification Advisory Council.
(1) The Board shall appoint a certification advisory council to advise the Board on standards and procedures related to certification of private, nonexempt postsecondary educational institutions, to assist the Commissioner in the examination of individual applications for certificates of authority, and to perform other duties related to certification that the Board finds to be appropriate.
(2) The council shall consist of six members with experience in higher education, three of whom must be drawn from exempt private postsecondary institutions in Texas.
(3) The members shall be appointed for two year fixed and staggered terms.
(c) Fees.
(1) Certificates of Authority. Each biennium the Commissioner shall set the fee for initial and renewal applications for certificates of authority, which shall be equal to the average cost of evaluating the applications. The fee shall include the costs of travel, meals, and lodging of the visiting team and the Commissioner, or the Commissioner's designated representatives, and consulting fees for the visiting team members, if an onsite review is conducted.
(2) Each biennium, the Commissioner shall also set the fees for amendments to certificates of authority; initial reviews of branch campuses or extension centers; site visits to branch campuses or extension centers; and certificates of registration of agents.
(3) The Commissioner shall report changes in the fees to the Board at a quarterly meeting.
(d) Board's review of applications.
(1) The Commissioner, or the Commissioner's designated representatives, and an ad hoc team of independent consultants, if the Commissioner finds that such a team would provide a benefit to the Board or to the institution, may visit the institution and conduct an onsite survey to evaluate the application for a certificate of authority. The visiting team will be composed of people who have experience and knowledge relating to postsecondary institutions.
(2) The visiting team will prepare a written report of its findings regarding the institution's ability to meet the standards for a certificate of authority. This report will be provided to the applicant institution, which shall have thirty (30) days within which to submit a written response.
(3) The certification advisory council will review the findings of the visiting team and the response of the institution and submit to the Commissioner a recommendation concerning the application.
(4) The Commissioner will forward to the Board the recommendation of the advisory council with his endorsement or with an alternative recommendation.
(5) Upon approval of the Board to award a certificate of authority to an institution, the Commissioner will act immediately to prepare and forward the certificate. It shall state, at a minimum, that the institution is authorized to grant certain degrees, the issue date, and the period for which the certificate is valid.
(6) If the Board denies an institution's application for a certificate of authority, or for renewal of its certificate of authority, the Commissioner shall notify the institution in writing of the denial and of the reasons for the denial.
(A) The institution will not be eligible to reapply for a period of one hundred eighty (180) days.
(B) Until the certificate of authority is reinstated, the institution may not grant degrees or receive payments from students for courses which may be applicable toward a degree.
(C) The subsequent application must show, in addition to all other requirements described herein, correction of the deficiencies which led to the denial.
(D) The period of time during which the institution does not hold a certificate of authority shall not be counted against the eight (8) year period within which the institution must achieve accreditation from a recognized accrediting agency absent sufficient cause, as described in subsection (h) of this section; the time period begins to run again upon reinstatement.
(7) 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).
(e) Terms and limitations of a certificate of authority.
(1) The certificate of authority to grant degrees is valid for a period of two (2) years from the date of issuance.
(2) Certification by the State of Texas is not accreditation, but merely a protection of the public interest while the institution pursues accreditation from a recognized agency, within the time limitations expressed in subsection (h)(3) of this section. Therefore, the institution awarded a certificate of authority shall not use terms to interpret the significance of the certificate which specify, imply, or connote greater approval than simple permission to operate and grant certain specified degrees in Texas. Terms which may not be used include, but are not limited to, "accredited," "supervised," "endorsed," and "recommended" by the State of Texas or agency thereof. Specific language prescribed by the Commissioner which explains the significance of the certificate of authority shall be included in all publications, advertisements, and other documents where certification and the accreditation status of the institution are mentioned.
(f) Eligibility to apply. The Board will accept applications for a certificate of authority only from those institutions:
(1) proposing to offer a degree or credit courses alleged to be applicable to a degree; and
(2) which have been in operation for a minimum of two years, or held an alternative certificate of authority for one year. As a minimum, "in operation" means to have assembled a governing board, developed policies, materials, and resources sufficient to satisfy the requirements for a certificate of authority, and either have enrolled students and conducted classes or accumulated sufficient financing to do so for at least one year upon certification based on reasonable estimates of projected enrollment and costs. Sufficient financing may be demonstrated by proof of an adequate surety bond, assignment of account, certificate of deposit, irrevocable letter of credit, or a properly executed participation contract with a private association, partnership, corporation, or other entity whose membership is comprised of postsecondary institutions, which is:
(A) In a form acceptable to the Board; and
(B) Conditioned to provide indemnification to any student or enrollee of the school or his/her parent or guardian determined by the Board to have suffered loss of prepaid tuition or any fees as a result of violation of any minimum standard or as a result of a holder of a certificate of authority ceasing operation, and provides evidence satisfactory to the Board of its financial ability to provide such indemnification and lists the amount of surety liability the guaranteeing entity will assume.
(g) Application for certificate of authority.
(1) Institutions seeking a certificate of authority are urged to contact Board staff before filing a formal application.
(2) Applications must be submitted with an original and four (4) copies and accompanied by the fee described in subsection (c) of this section.
(3) Documentary evidence of compliance with subsection (f)(2) of this section must be filed with the application.
(4) An institution must be fully operational as of the date of the on-site evaluation; i.e., it must have in-hand or under contract all the human, physical, administrative, and financial resources necessary to demonstrate its capability to meet the standards for nonexempt institutions. The conditions found at the institution as of the date of the on-site evaluation visit will provide the basis for the visiting team's evaluation and report, the certification advisory council's recommendation, the Commissioner's recommendation, and the Board's determination of the institution's qualifications for a certificate of authority.
(h) Renewal of certificate of authority.
(1) At least one hundred eighty (180) days, but no more than two hundred ten (210) days, prior to the expiration of the current certificate of authority, an institution, if it desires renewal, shall make application to the Board on forms provided upon request. Reports not previously submitted to the Board, related to the application for or renewal of accreditation by national or regional accrediting agencies shall be included. The renewal application shall be accompanied by the fee described in subsection (c) of this section.
(2) The application for renewal of the certificate of authority will be evaluated in the same manner as that prescribed for evaluation of an initial application, except that the evaluation will include the institution's record of improvement and progress toward accreditation.
(3) An institution may be granted consecutive certificates of authority for no longer than eight (8) years. Absent sufficient cause, at the end of the eight (8) years, the institution must be accredited by a recognized accrediting agency.
(4) Subject to the restrictions of paragraph (3) of this subsection, the Board shall renew the certificate if it finds that the institution has maintained all requisite standards.
(i) Amendments to a certificate of authority.
(1) An institution which wishes to amend an existing program of study to award a new or different degree during the period of time covered by its current certificate may file an application for amendment, on forms provided by the Board upon request. An institution may begin operating such a program upon filing the application, and the application shall be deemed to be granted if not rejected by the Board within one hundred twenty (120) days.
(2) Applications for amendment shall be accompanied by the fee described in subsection (c) of this section.
(3) Unless the Board finds that the new program of study does not meets the required standards, the Board shall amend the institution's certificate accordingly.
(j) Authority to represent transferability of course credit. Any institution as defined in §7.3 of this chapter (relating to Definitions), whether it offers degrees or not, may solicit students for and enroll them in courses on the basis that such courses will be credited to a degree program offered by another institution, provided that:
(1) the other institution is named in such representation, and is accredited by a recognized accrediting agency or has a certificate of authority;
(2) the courses are identified for which credit is claimed to be applicable to the degree programs at the other institution; and
(3) the written agreement between the institution subject to these rules and the accredited institution is approved by both institutions' boards of trustees in writing, and is filed with the Board.
(k) Duty to report.
(1) Institutions holding a certificate of authority will be required to:
(A) furnish a list of their agents to the Board; and
(B) maintain records of students enrolled, credits awarded, and degrees awarded, in a manner specified by the Board.
(2) Any change in principal location, ownership, governance, administrative personnel, faculty, or facilities at the institution, or any other changes relevant to the Board's standards for certification, shall be reported to the Board within ten days of the change by the chief administrative officer of the institution in order for the Board staff to determine if such changes adversely affect the conditions under which the certificate was granted. For purposes of this provision, administrative personnel consist only of individuals in a leadership role that involves setting institutional policies. For purposes of this provision, facilities consist only of campuses taken as a unit. Notification is only required if an entire campus is closed. Changes in individual rooms and buildings, such as remodeling, need not be reported. For purposes of this provision, changes in the status of an individual faculty member, such as hours worked, courses taught, and responsibilities within a department, need not be reported. Only the addition or subtraction of a faculty member shall trigger notification.
(l) If an order, decision, or determination made pursuant to this section is adverse to an institution, the reasons therefore shall be detailed in a notice to the institution. The order, decision, or determination shall become final and binding unless, within forty-five (45) days of its receipt of the adverse order, decision, or determination, the institution invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).
§7.8.Alternative Certificate of Authority.
In lieu of the standard certification of authority requirements for institutions and their agents in §§7.7, 7.11, and 7.12 of this chapter, an institution may obtain an alternative certificate of authority to issue degrees as provided by this section. Alternative certificates of authority shall be issued by the Commissioner and are temporary, being valid for twelve (12) months, after which a regular certificate of authority shall be required. A site visit shall be conducted by Board staff during the initial twelve month period.
(1) Surety Instrument Requirement.
(A) At the time application is made for an alternative certificate of authority, or when new programs, stand-alone courses or continuing education courses are added, the applicant shall file with the Board a surety bond or surety alternative which meets the requirements set forth in these sections. Schools located in Texas shall file one bond or surety alternative covering the school and its agents.
(B) The amount of the bond or other allowable surety instrument submitted to the Board with an application for an alternative certificate of authority shall be equal to or greater than the cost of providing a refund, including administrative costs associated with processing claims, for the maximum prepaid, unearned tuition and fees of the school for a period or term during the applicable school year for which programs of instruction are offered, including, but not limited to, on a semester, quarter, monthly, or class basis; except that the period or term of greatest duration and expense shall be utilized for this computation where a school's year consists of one or more such periods or terms.
(C) A school, whose surety value is found by the Board to be insufficient to fund the unearned, prepaid tuition of enrolled students, shall be noncompliant with these sections, and, if, after ten (10) working days from the issuance of a notice of noncompliance, the school has not increased its surety to an acceptable level, it shall be subject to revocation or suspension of its alternative certificate of authority.
(D) Following the initial filing of the surety bond with the Board, the amount of the bond shall be recalculated annually based upon a reasonable estimate of the maximum prepaid, unearned tuition and fees received by the school for such period or term. In no case shall the amount of the bond be less than five thousand dollars ($5,000).
(E) The institution shall include a proposal in the form of a letter signed by an authorized representative of the school showing in detail the calculations made pursuant to this section and explaining the method used for computing the amount of the bond or surety alternative.
(F) In order to be approved by the Board, a surety bond must be:
(i) Executed by the applicant and by a surety company authorized to do business in Texas;
(ii) In a form acceptable to the Board;
(iii) Conditioned to provide indemnification to any student or enrollee of an in-state or out-of-state school or his/her parent or guardian determined by the Board to have suffered a loss of tuition or any fees as a result of violation of any minimum standard or as a result of a holder of an Alternative Certificate of Authority ceasing operation; and
(iv) An original bond.
(G) In lieu of a surety bond, an applicant may file with the Board an assignment of savings account that:
(i) Is in a form acceptable to the Board;
(ii) Is executed by the applicant; and
(iii) Is executed by a state or federal savings and loan association, state bank or national bank whose accounts are insured by a federal depositor's corporation.
(H) In lieu of a surety bond, an applicant may file with the Board a certificate of deposit that:
(i) Is issued by a state or federal savings and loan association, state bank or national bank whose accounts are insured by a federal depositor's corporation;
(ii) Is either:
(I) Payable to the Board;
(II) In the case of a negotiable certificate of deposit, is properly assigned without restriction to the Board; or
(III) In the case of a non-negotiable certificate of deposit, is assigned to the Board by assignment in a form satisfactory to the Board.
(I) In lieu of a surety bond, an applicant may file with the Board an irrevocable letter of credit that:
(i) Is in a form acceptable to the Board; and
(ii) Conditioned to provide indemnification to any student or enrollee of the school or his/her parent or guardian determined by the Board to have suffered loss of tuition or any fees as a result of violation of any minimum standard or as a result of a holder of an alternative certificate of authority ceasing operation.
(J) In lieu of a surety bond, an applicant may file with the Board a properly executed participation contract with a private association, partnership, corporation or other entity whose membership is comprised of postsecondary institutions, which:
(i) Is in a form acceptable to the Board; and
(ii) Conditioned to provide indemnification to any student or enrollee of the school or his/her parent or guardian determined by the Board to have suffered loss of prepaid tuition or any fees as a result of violation of any minimum standard or as a result of a holder of an alternative certificate of authority ceasing operation, and provides evidence satisfactory to the Board of its financial ability to provide such indemnification and lists the amount of surety liability the alternative entity will assume.
(K) Whenever these sections require a document to be executed by an applicant the following shall prevail:
(i) If the applicant is a corporation, the document must be executed by the president of the corporation or persons designated by the corporate board.
(ii) If the applicant is a limited liability corporation the document must be executed by the members.
(iii) If the applicant is a partnership, the document must be executed by all general partners.
(iv) If the applicant is an individual, the document must be signed by the individual.
(v) If the applicant is a state agency, the document must be signed by the Director of that Department.
(vi) If the applicant is a local government, the document must be signed by the mayor or board president.
(L) Any bonding alternative entity must have independent financial resources necessary to meet the contractual obligation to the students of a failed member institution and resources equal to or exceeding the maximum bonds required of all single schools.
(M) A school applying for an alternative certificate of authority shall be exempt from the surety instrument requirement if it can demonstrate a United States Department of Education composite financial responsibility score of 1.5 or greater on its current financial statement; or if it can demonstrate a composite score between 1.1 and 1.4 on its current financial statement and has scored at least 1.5 on a financial statement in either of the prior two (2) years.
(2) Application and Statement. Institutions seeking an alternative certificate of authority are urged to obtain informal guidance from Board staff before filing a formal application. The Board will accept applications for an alternative certificate of authority only from those institutions proposing to offer a degree or credit courses alleged to be applicable to a degree.
(3) An institution seeking an alternative certificate of authority shall submit to the Board a completed application, which must demonstrate it meets, or has the ability to meet, depending on circumstances, the standards set out in §7.5 of this chapter (relating to Standards for Operation of Institutions); a signed and dated affirmation statement, acknowledging compliance with certification criteria set forth in this section; and a notarized attestation statement signed by the chief executive officer or equivalent. The application shall contain:
(A) The name and address of the institution and its purpose;
(B) The names of the sponsors or owners of the institution;
(C) The regulations, rules, constitutions, bylaws, or other regulations established for the government and operation of the institution;
(D) The names and addresses of the chief administrative officer, the principal administrators, and each member of the board of trustees or other governing board;
(E) The names of faculty who have been retained, their area(s) of teaching, and their degrees held;
(F) The types of degrees to be awarded and a list of courses that may be included in each degree program; and
(G) The location of any facilities maintained or being constructed and a list of potentially hazardous equipment which requires a federal or state government license to operate, if any has been acquired, that is to be used by students in the teaching process.
(4) Institutions shall certify that they maintain a list of their agents as defined in §7.3 of this chapter (relating to Definitions) and have policies to ensure that their agents are of good character and provide accurate information to prospective students and their families, but such agents are not required to register with the Board or submit a fee.
(5) Applications must be submitted with an original and four copies and accompanied by the required fee. Alternative certificate of authority fees shall be five hundred dollars ($500) more than the fee for a regular certificate of authority, as established in §7.7(c) of this chapter (relating to Certificate of Authority).
(6) Board's review of applications.
(A) Within ninety (90) days of receipt of a complete application, Board staff will review said application and recommend to the Commissioner either approval or denial of the application.
(B) Within one hundred twenty (120) days of receipt of a complete application, the Commissioner shall either award a one-year certificate of authority or deny the application.
(C) 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).
(7) Terms and limitations of an alternative certificate of authority.
(A) The alternative certificate of authority to grant degrees is valid for one (1) year from the date of issuance.
(B) The institution shall notify the Board at least ten (10) working days prior to the start of the first class of its first year schedule. Board staff shall visit the institution and interview both staff and students at least once during the first year.
(C) Certification by the State of Texas is not accreditation, but merely a protection of the public interest while the institution pursues accreditation from a recognized agency, within the time limitations expressed in §7.7(d)(6)(D) of this chapter. An institution awarded an alternative certificate of authority shall not use terms to interpret the significance of the certificate which specify, imply, or connote greater approval than simple permission to operate and grant degrees in Texas. Terms which may not be used include, but are not limited to, "accredited," "supervised," "endorsed," and "recommended" by the State of Texas or agency thereof. Specific language prescribed by the Commissioner which explains the significance of the alternative certificate of authority shall be included in all publications, advertisements, and other documents where certification and the accreditation status of the institution are usually mentioned, including the institution's catalog and the home page of the institution's Internet website.
(D) The Commissioner may revoke an institution's alternative certificate of authority to grant degrees at any time if the Commissioner finds that:
(i) Any statement contained in an application for the certificate is untrue;
(ii) The institution has failed to maintain the standards of the Board, as described herein, on the basis of which the certificate was granted;
(iii) Advertising or representations made on behalf of the institution is deceptive or misleading; or
(iv) The institution has violated any provision of this chapter.
(8) Continuing operations after one year.
(A) At least one hundred eighty (180) days, but no more than two hundred ten (210) days, prior to the expiration of the current alternative certificate of authority, an institution, if it desires to continue operations, shall make application to the Board following the process in §7.7(h) of this chapter.
(B) The application will be evaluated in the same manner as that prescribed for evaluation of an initial application.
§7.9.Certificate of Authority for Career Schools and Colleges.
(a) A career school or college not otherwise exempt under the Texas Education Code, Chapter 132 or §7.4 of this chapter (relating to Obtaining a Certificate of Authorization or a Certificate of Authority to Operate in Texas) must have approval from the Board in order to grant associate of applied science or associate of applied arts degrees or to enroll students for courses that may be applicable toward those associate degrees. A career school or college that does not have approval to grant associate degrees must request approval from the Board in conjunction with an application for a new degree program as specified in subsection (h) of this section. If approved, the Board shall issue a certificate of authority.
(b) A career school or college may submit an application for a certificate of authority to grant degrees to the Board if it:
(1) has been legally operating, enrolling students, and conducting classes in Texas and has complied with state law as a non degree-granting institution for a minimum of two (2) years;
(2) has been legally operating, enrolling students, and conducting classes in Texas and has complied with state law as a degree-granting institution and wishes to open a new campus; or
(3) has been legally operating as a degree-granting institution in another state for a minimum of four (4) years and can verify compliance with all applicable laws and rules in that state.
(c) Application for a Certificate of Authority.
(1) Letter of Intent. A career school or college seeking degree granting authority shall submit a letter of intent for a new program application as outlined in subsection (h) of this section
(2) Initial visit. A member of the Board staff shall visit the proposed school to verify compliance with Board standards and policies.
(3) Submission of the application for a certificate of authority, which shall include the following documentation:
(A) a description of the purpose of the institution;
(B) names of sponsors or owners of the institution;
(C) regulations, rules, constitutions, bylaws, or other regulations established for the governance and operation of the institution;
(D) the names and addresses of the chief administrative officer, the principal administrators, and each member of the board of trustees or other governing boards;
(E) a full description of the admission requirements;
(F) a description of the facilities, learning resources, and equipment utilized by the institution;
(G) evidence of approval from the Texas Workforce Commission. The Board will not approve an application for a Certificate of Authority unless the Texas Workforce Commission has approved the institution to offer a course of instruction.
(H) the application for Approval of a New Workforce Program, as specified in subsection (h) of this section.
(4) Follow-up visit. A member of the Board staff may make a follow-up visit to the proposed site for the applicant school prior to implementation of the workforce education program(s).
(5) Fee. The applicant institution shall submit a fee as required under §7.7(c) of this chapter (relating to Certificate of Authority).
(d) Commissioner Action on an Application for a Certificate of Authority.
(1) The Commissioner or his/her designee shall approve or disapprove the application for a certificate of authority. Approval of the application grants the career school or college the authority to award associate's degrees or to enroll students for courses that may be applicable toward an associate degree. Separate program approval shall be required for each associate degree program in accordance with this chapter.
(2) Approval for each specified associate degree program continues in effect unless the Commissioner withdraws or suspends the certificate of authority and/or approval for a specific program because of the institution's failure to comply with Board rules, regulations, and/or policies or because the Texas Workforce Commission revokes the institution's approval to operate. The certificate of authority remains the property of the Board; an institution shall return its certificate of authority in the event the Commissioner withdraws the certificate of authority, the institution voluntarily terminates all associate degree programs, or the institution closes.
(e) Career schools and colleges holding a certificate of authority to grant an associate degree shall make available, upon request by the Board, all accrediting agency reports and any findings and institutional responses to such reports and findings.
(f) If cited by an accreditor, a career school or college authorized to grant the associate degree shall, within 30 days of receipt of the accrediting agency's final report, provide the Board with a copy of the citation, the accreditor's final report, and a complete report of all subsequent actions by both the accreditor and the institution.
(g) A career school or college shall operate all associate degree programs in compliance with the standards of its institutional and/or program-level accreditation or with membership in a trade or professional association.
(h) New Program Application. Each career school or college wishing to offer a new associate degree program shall complete the following items and submit them to Board staff:
(1) Letter of Intent. The applicant school shall submit a letter of intent no less than 30 and not more than 180 days prior to the submission of the application for Approval of a New Workforce Program.
(2) Application for Approval of a New Workforce Program. The chief executive officer and, if applicable, the governing board of the career school or college shall approve the application for Approval of a New Workforce Program. The applicant school shall ensure that Board staff receive the application for Approval of a New Workforce Program no less than three (3) calendar months prior to the intended implementation date or approval deadline for external accreditation, whichever occurs first.
(3) Statement of Assurances. The chief executive officer and, if applicable, the governing board of the career school or college shall approve the Statement of Assurances. The applicant school shall submit the Statement of Assurances with the application for Approval of a New Workforce Program. The following criteria are included in the Statement of Assurances:
(A) The institution has documented need for the proposed program based on national, regional, and/or local economic forecasts applicable to its target market area.
(B) The institution has identified sufficient employment opportunities within its target market area for the projected number of graduates, taking into consideration the numbers of graduates of similar programs within its target market area.
(C) Instruction in basic workforce skills has been integrated into the curriculum for the proposed program.
(D) Each program award offers at least one of the following: a capstone, an external learning experience, or eligibility to sit for a certification or licensure examination.
(E) All course and program prerequisites are identified on the proposed curriculum outline and included in the credit/contact hour totals for the program.
(F) An enrollment management plan for the program is in place.
(G) The program is consistent with all requirements from other registering, certifying, licensing, and/or accrediting authorities.
(H) An advisory committee composed of representatives from business and industry has been directly involved in the creation of the proposed program.
(I) Adequate funding is available to cover all program costs for the first three years.
(J) The institution is in good standing with its accreditor and the Texas Workforce Commission.
(K) The institution is not currently a defendant in a legal proceeding or has notified the Board according to provisions in this chapter.
(4) Fee. The applicant school shall submit the fee for an application for Approval of a New Workforce Education Program simultaneously with the application.
(i) New Program Approval. The Board staff shall review the application and accompanying documentation for satisfactory fulfillment of the new program requirements and procedures for a new certificate of authority and/or new workforce education program. The staff shall confer with the career school or college when additional information or clarification is needed.
(j) Board staff shall recommend schools and/or associate degree programs to the Commissioner for approval or disapproval or referral to the Board.
(k) The Board delegates to the Commissioner final approval authority for all schools and/or associate degree programs that meet Board policies for approval.
(l) The Commissioner shall forward a school and/or program application to the Board for consideration at an appropriate quarterly meeting if:
(1) the proposed program is the subject of an unresolved grievance or dispute between the institution and other colleges or universities; and/or
(2) the Commissioner has disapproved the proposed school and/or program and the institution has requested a Board review at the next quarterly Board meeting.
(m) A career school or college offering an associate degree program at multiple sites shall seek separate approval of each program of study for each site.
(n) The Commissioner shall automatically withdraw approval for any associate degree program not implemented in accordance with Board rules, regulations, and/or policies, and/or not implemented within eighteen (18) months of the date of approval.
(o) Program Revision. Each career school or college requesting a program revision shall submit a completed application for Program Revision.
(p) A career school or college may close a program voluntarily with the approval of the Commissioner or his designee.
(q) Concurrent instruction of students enrolled in an associate degree program or in any component of a degree program is prohibited. The following activities do not constitute concurrent instruction:
(1) voluntary participation in laboratory and/or skill-building activities outside of required lecture and laboratory class sessions;
(2) voluntary participation in study and/or review sessions outside of required lecture and laboratory class sessions;
(3) sitting for proctored examinations;
(4) field trips; or
(5) extracurricular activities.
(r) Institutional effectiveness. When applying for a certificate of authority to grant applied associate degrees and/or for a new applied associate degree program, the institution must demonstrate, for as long as the program(s) are operational, that:
(1) it is in full compliance with all oversight, regulatory, and accrediting bodies' requirements;
(2) it meets the following institutional effectiveness measures for each existing program for the last consecutive three-year period:
(A) for those occupations where state or national licensure, certification, or other credentialing examinations exist, at least ninety (90) percent of program graduates pass the credentialing examination;
(B) if the pass rate for graduates from the applicant institution is no more than five (5) percent below the state or national average for the examination;
(C) a minimum of fifteen (15) students graduated over the course of the last three years; or
(D) within one (1) year of graduation, at least seventy (70) percent of graduates are employed in the field for which they are trained, in full-time military service, or pursuing additional education. If the institution must include graduates who are pursuing additional education in order to meet the seventy (70) percent standard, the institution shall include a list of those graduates and official supporting documentation. Official documentation must be from the institution the student is attending. If the institution must include graduates who are full-time military in order to meet the seventy (70) percent standard, the institution shall include a list of those graduates and a copy of their military orders.
(3) For institutions located in Texas, agency staff shall use the data the institution reported to the Texas Workforce Commission for the most recent consecutive three (3) year period.
(4) For institutions located outside of Texas, the institution shall submit employment data for the institution according to the Texas Workforce commission definition of "employed" or "employment, and "completer" for the most recent consecutive three-year period.
(s) Closure of a Career School or College.
(1) The governing board, owner, or chief executive officer of a career school or college 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.
(2) If a career school or college closes unexpectedly, the governing board, owner, or chief executive officer of the school shall provide the Board with written notification immediately.
(3) If a career school or college 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 career school or college authorized by the Board to hold a Certificate of Authority according to this section, with a school accredited by a recognized accrediting agency, or with a public two-year college. 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.
(4) The Certificate of Authority for a career school or college is automatically withdrawn when the institution closes. The Commissioner may grant to a career school or college that has a Certificate of Authority temporary approval to award a degree(s) in a program the institution does not have approval for in order to facilitate a formal agreement as outlined under this section.
(A) The curriculum and delivery shall be appropriate to accommodate the remaining students.
(B) 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.
§7.10.Operation of Branch Campuses, Extension Centers or other Off-Campus Units, Occasional Courses and Changes in Level.
(a) Off-Campus Operations.
(1) A nonexempt institution may not operate a branch campus.
(2) A private postsecondary institution must be approved by the Board to operate a branch campus, extension center, or other off-campus unit in Texas, except as noted in §7.5 of this chapter (relating to Standards for Operation of Institutions).
(3) An institution with off-campus offerings that approach the scale of a branch campus, extension center, or other off-campus unit, as defined in §7.3 of this chapter (relating to Definitions), must submit to the Board a description of its plans, including such information as requested on an application form, to be furnished by the Board upon request.
(4) On receipt of an acceptable application and the application fee for initial review of a branch campus or extension center listed in §7.7(c) of this chapter (relating to Certificate of Authority), the Commissioner may authorize the institution to begin operations at the branch campus, on a temporary basis, pending a formal review and evaluation.
(5) Formal Review and Evaluation.
(A) Accreditor's on-site review and evaluation. If the applicant institution is accredited by a recognized accrediting agency, it shall inform its recognized accreditor of the institution's temporary authorization from the Board to begin operations, as provided in paragraph (4) of this subsection, so that the accreditor may conduct a site visit at the branch campus or extension center to verify compliance with that accreditor's criteria for branch campuses.
(i) An exempt institution shall submit to the Board the report of the recognized accreditor's review and evaluation.
(ii) After examining the report of the recognized accreditor concerning an exempt institution, the Commissioner may issue continuing approval, place conditions on continuing approval, or revoke the Board's temporary authorization of the branch campus or extension center.
(iii) Final approval by the accreditor of an exempt institution must be made within two (2) years of the initial approval by the Commissioner, or the Board's temporary authorization will lapse.
(iv) If the accreditor denies approval of an exempt institution, the Board's temporary authorization shall immediately expire.
(B) Board's on-site review and evaluation. If the accreditor does not conduct an on-site review and evaluation of the branch campus or extension center or the institution is non-exempt, the Board will conduct an office review and, if deemed necessary, an on-site review and evaluation to determine whether the branch complies with the Board's standards of operations.
(i) The Board may invite the recognized accrediting agency for the institution to provide representation, to accompany the visiting team, and to supply comments.
(ii) If an on-site review is conducted, the institution shall be assessed the fee for an on-site survey to a branch campus or extension center, as provided in §7.7(c) of this chapter.
(iii) The institution shall be sent the report of the Board's review and evaluation and shall have thirty (30) days to submit a written response to the report.
(iv) After examining the report of review and evaluation and the institution's written response, the Commissioner may issue continuing approval, place conditions on continuing approval, or revoke the Board's temporary approval of the branch campus or extension center.
(6) The Board requires reviews, including site visits, of an exempt branch campus or extension center according to the schedule used for accreditation of the main campus by the recognized accreditor. The review will be conducted in the same manner as described in paragraph (5) of this subsection. The Commissioner may deny continuing approval of any branch campus or extension site which fails to maintain the conditions and standards on which approval was based.
(7) In the event of any adverse determination made under the authority of this section by the Commissioner, the institution shall receive notice of the determination, and shall be given the reasons for the denial in writing.
(8) If a determination under this section is adverse to an institution, it shall become final and binding unless, within forty-five (45) days of receipt of the adverse determination, the institution invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).
(b) Standards for Off-Campus Operations at Exempt Institutions. The standards for operations of an institution as set forth in §7.5 of this chapter apply with the following additions:
(1) Administration of the Branch Campus. There shall be an appropriate and effective administrative structure between the main campus and the off-campus unit.
(2) The character, education, and experience in higher education of the local administrators shall be such as may reasonably ensure that the students will receive education consistent with the objectives of the course or program of study. Local faculty must have the same degree of separation and independence from the administration that faculty on the main campus enjoy.
(c) Occasional Courses, Changes of Level at Exempt Institutions, and Out-of-State Public Institutions.
(1) Occasional Courses. A private institution may offer occasional degree-credit courses at off-campus sites in Texas without prior approval of the Board. Nonexempt private institutions must submit an annual report to the Board listing any new such courses added that year.
(2) Changes of Level for Exempt Private Institutions. An institution which is exempt by accreditation from a recognized agency and which has established stability by being so accredited for the previous ten years and which wishes to expand to a different degree level not covered by its existing accreditation shall, by submission of a letter to the Commissioner outlining the degree or degrees to be offered at the higher level, be granted state authorization to seek accreditation at the higher level with the recognized accrediting agency. If the recognized accrediting agency does not extend accreditation to the higher level or if the institution has not been accredited for ten or more years, the institution may seek a certificate of authority under the procedures listed in §7.7 of this chapter.
(3) Out-of-State Public Postsecondary institutions. An out-of-state public institution of higher education as defined in §7.3 of this chapter must have approval of the Board to offer a course or a grouping of courses within the State of Texas (Texas Education Code, Chapter 61, Subchapter H). The institution must submit a description of its plans prior to offering courses, including information requested on an application form furnished by the Board. The application will be subject to review under the procedures listed in §7.7 of this chapter.
§7.11.Registration of Agents.
(a) A person desiring to solicit students for enrollment, or to accept funds from Texas students, or otherwise to perform services as an agent of a nonexempt institution pursuant to the provisions of the Texas Education Code, Title 3, Chapter 61, Subchapter G and this chapter, shall make application for a certificate of registration on forms that will be provided by the Board upon request.
(b) The application shall be accompanied by the fee described in §7.7(c)(2) of this chapter (relating to Certificate of Authority).
(c) Upon request of the Commissioner or the Commissioner's designee, the agent shall provide sufficient evidence of good character.
(d) The agent's certificate of registration shall be issued for a five-year period.
(e) If the Commissioner denies the application for a certificate of registration, or a renewal of the certificate of registration, the applicant shall be notified in writing, and shall be given the reasons for the denial. Additionally, the Commissioner shall notify the institution or institutions which the agent represented or proposed to represent, according to the records of the Board, in the same manner.
(f) At least sixty (60), but no more than one hundred twenty (120), days prior to the expiration of an agent's certificate, the agent shall complete and file with the Board an application for renewal, accompanied by the registration fee described in §7.7(c)(2) of this chapter.
(g) If a determination under this section is adverse to a person or institution, it shall become final and binding unless, within forty-five (45) days of the receipt of the adverse determination, the person or institution invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).
§7.12.Changes of Ownership and Other Substantive Changes.
(a) Any change in principal location, ownership, governance, administrative personnel, faculty, or facilities at the institution, or any other changes relevant to the Board's standards for alternative certification, shall be reported to the Board within ten days of the change by the chief administrative officer of the institution in order for the Board to determine if such changes adversely affect the conditions under which the certificate was granted. An institution may choose to comply with this provision by posting a notice of the change on its website and, by fax, letter, phone, or email, notifying the Board that such notice has been so posted. For purposes of this provision:
(1) a change in administrative personnel that must be reported occurs only if an individual in an executive leadership role that involves setting institutional policies vacates that position;
(2) a change in facilities that must be reported occurs only if an entire campus is closed. Changes in individual rooms and buildings, such as remodeling, need not be reported; and
(3) changes in the status of an individual faculty member, such as hours worked, courses taught, and responsibilities within a department, need not be reported. Only the addition or subtraction of faculty collectively in an area (an academic or technical department) shall be reported.
(b) 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 is automatically withdrawn unless the institution meets the requirements of this section.
(c) The Commissioner may authorize the institution to retain the certificate of authority 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 below 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; and
(3) 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.
(d) 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, the new owner(s) shall submit a new application for a certificate of authority as outlined under §7.9 of this chapter (relating to Certificate of Authority for Career Schools and Colleges) and a new application for approval of a New Workforce Program for Career Schools and Colleges for each degree program it wishes to offer, as outlined under §7.9(h) of this chapter.
(e) Any modification of an approved associate degree program that results from a change of ownership or control constitutes a program revision. Requests for approval of program revisions shall conform to the procedures and requirements contained in §7.9(o) of this chapter.
(f) 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 during the transfer period. In such cases, the career school or college shall fully comply with all provisions outlined in this section.
§7.13.Revocation of Certificates of Nonexempt Institutions and Agents.
(a) The Commissioner may revoke an institution's certificate of authority, including an alternative certificate of authority, to grant degrees at any time if the Commissioner finds that:
(1) Any statement contained in an application for the certificate is untrue;
(2) The institution has failed to maintain the standards of the Board, as described herein, on the basis of which the certificate was granted;
(3) Advertising or representations made on behalf of the institution is deceptive or misleading; or
(4) The institution has violated any provision of this chapter.
(b) The Commissioner may revoke an agent's certificate of registration at any time if the Commissioner finds that:
(1) Any statement contained in the application is untrue;
(2) The institution represented has had its certificate of authority revoked;
(3) The agent has made false, deceptive, or misleading statements while attempting to solicit residents of this state as students;
(4) The agent has violated any provision of this chapter;
(5) Notice of revocation under subsection (a) and this subsection shall be provided to the certificate holder and shall contain information regarding the reasons for the revocation; or
(6) Notice of revocation under paragraph (1), (3), or (4) of this subsection shall also be given to the institution that the agent represented or purported to represent. Immediately upon receipt of actual knowledge of the agent's violation, or upon receipt of the Commissioner's notice, whichever is earlier, the institution shall make every effort to:
(A) divest the agent of the authority and of the apparent authority to represent the institution;
(B) notify the media through which the agent made the misrepresentations of the actual facts; and
(C) notify all students whose decision to enroll in the institution was affected by the agent's misrepresentation, of the actual facts.
(7) A revocation made pursuant to this section shall become final and binding unless, within forty-five (45) days of its receipt of the notice of revocation, the institution or agent invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).
§7.14.Review and Use of Degrees from Institutions Not Eligible for Certificates of Authority.
(a) A person holding a degree from an institution that is not eligible to receive a certificate of authority may request a letter from the Board confirming that the institution is not eligible for a certificate of authority and providing the procedures for review and approval of the degree for use in Texas. The Board shall send a copy of the letter to the institution.
(b) Procedures for review and approval.
(1) An institution that confers a degree described in §7.3(24)(B) or (C) of this chapter (relating to Definitions), may request that the Board review and approve for use in Texas that degree, as provided in those sections. The person or institution shall submit the request on a form created by the Board.
(2) The Commissioner shall apply the standards provided in §7.5 of this chapter (relating to Standards for Operations of an Institution) to determine if the degrees awarded by a person or institution are equivalent to degrees granted by a private postsecondary educational institution or other person holding a certificate of authority from the Board.
(3) The Commissioner, or the Commissioner's designated representatives, and an ad hoc team of independent consultants, if the Commissioner finds that such a team would provide a benefit to the Board or to the institution, shall visit the institution and conduct an on-site survey to evaluate the application for review and approval. The visiting team shall be composed of people who have experience on the faculties or staffs of accredited institutions and who possess knowledge of accreditation standards.
(4) The Board shall charge the person or institution petitioning for review and approval a fee equal to the application fee for a certificate of authority or the actual cost of conducting the review, including travel expenses and cost of consultant fees, whichever is greater.
§7.15.Use of Fictitious, Fraudulent, or Substandard Degrees.
(a) The Board shall disseminate the following information through the Board's Internet website:
(1) the accreditation status or the status regarding authorization or approval under this chapter, to the extent known by the Board, of each exempt institution operating in the state, each postsecondary educational institution or other person that is regulated under §§7.7 - 7.12 of this chapter or for which a determination is made under §7.12(c) of this chapter (relating to Occasional Courses, Changes of Level of Instruction, Changes of Ownership, and other Substantive Changes), and any institution offering fraudulent or substandard degrees, including:
(A) the name of each educational institution accredited, authorized, or approved to offer or grant degrees in this state;
(B) the name of each educational institution whose degrees the Board has determined may not be legally used in this state;
(C) the name of each educational institution that the Board has determined to be operating in this state in violation of this chapter; and
(D) any other information considered by the Commissioner to be useful to protect the public from fraudulent, substandard, or fictitious degrees.
(2) the Board shall utilize such usual and customary sources for determining the accreditation status of institutions, such as: guides to international education; the Board's knowledge of legal actions taken against institutions, either by an agency of the state of Texas or agencies of other states or nations; or civil actions against institutions brought by governmental agencies or individuals.
(b) In determining the legitimacy of institutions headquartered or operating outside of Texas, the Board may determine if the state or nation in which the person or institution is headquartered, operates, or holds legal authorization to operate has standards and practices that are as rigorous as those of the Board's. A determination that a particular state or nation's standards or practices are not appropriately rigorous shall be sufficient reason to disapprove the use of the degrees of a person or institution.
§7.16.Administrative Penalties and Injunctions.
(a) A person or institution may not:
(1) Grant, award, or offer to award a degree on behalf of a nonexempt institution unless the institution has been issued a certificate of authority, including an alternative certificate of authority, to grant the degree by the Board;
(2) Represent that credits earned or granted by that person or institution are applicable for credit toward a degree to be granted by some other person or institution except under conditions and in a manner specified under §7.7 of this chapter (relating to Certificate of Authority) and approved by the Board, or represent that credits earned or granted are collegiate in nature, including describing them as "college-level," or at the level of any protected academic term;
(3) Award or offer to award an honorary degree on behalf of a private postsecondary institution subject to the provisions of the chapter, unless the institution has been awarded a certificate of authority to award such a degree, or solicits another person to seek or accept an honorary degree and, further, unless the degree shall plainly state on its face that it is honorary;
(4) Use a protected term in the official name or title of a nonexempt private postsecondary institution or describe an institution using any of these terms or a term having a similar meaning, except as authorized by the Board, or solicit another person to seek a degree or to earn a credit that is offered by an institution or establishment that is using a term in violation of this section;
(5) Use a protected term in the official name or title of an educational or training establishment or describe an institution using any of these terms or a term having a similar meaning, or solicit another person to seek a degree or to earn a credit that is offered by an institution or establishment that is using a term in violation of this section;
(6) Act as an agent who solicits students for enrollment in a private postsecondary institution subject to the provisions of the chapter without a certificate of registration, if required by this chapter.
(7) Use or claim to hold a degree that the person knows is a fraudulent or substandard degree or is a fictitious degree:
(A) in a written or oral advertisement or other promotion of a business; or
(B) with the intent to:
(i) obtain employment;
(ii) obtain a license or certificate to practice a trade, profession, or occupation;
(iii) obtain a promotion, compensation or other benefit, or an increase in compensation or other benefit, in employment or in the practice of a trade, profession, or occupation;
(iv) obtain admission to an educational program in this state; or
(v) gain a position in government with authority over another person, regardless of whether the actor receives compensation for the position.
(b) Institutions Located on Federal Land in Texas. An institution that is operating on land in Texas over which the federal government has exclusive jurisdiction shall limit the recruitment of students and advertising of the institution or its programs or courses to the confines of the federal land and to the military or civilian employees and their dependents who work or live on that land. The institution shall not enlist any agent, representative, or institution to recruit or to advertise by any medium, the institution or its programs or courses except on the federal land.
(c) A violation of this subsection may constitute a violation of the Texas Penal Code, §32.52. An offense under subsection (a)(1) - (6) of this section may be a Class A misdemeanor and an offense under subsection (a)(7) of this section may be a Class B misdemeanor.
(d) In the event any institution now or hereafter operating in this state proposes to discontinue its operation, the chief administrative officer, by whatever title designated, of said institution shall cause to be filed with the Board the original or legible true copies of all such academic records of said institution as may be specified by the Commissioner. Such records shall include, without limitation:
(1) such academic information as is customarily required by colleges when considering students for transfer or advanced study; and
(2) the academic records of each former student.
(e) In the event it appears to the Commissioner that any records of an institution that is discontinuing its operations are in danger of being destroyed, secreted, mislaid, or otherwise made unavailable to the Board, the Commissioner may seek, on the Board's behalf, court authority to take possession of such records.
(f) The Board shall maintain or cause to be maintained a permanent file of such records coming into its possession.
(g) If a person or institution violates a provision of this chapter, the Commissioner may assess an administrative penalty against the person or institution as provided in this section.
(h) The Commissioner shall send written notice by certified mail to the person or institution charged with the violation. The notice shall state the facts on which the penalty is based, the amount of the penalty assessed, and the right of the person or institution to request a hearing.
(i) The Commissioner's assessment shall become final and binding unless, within forty-five (45) days of receipt of the notice of assessment, the person or institution invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).
(j) If the person or institution does not pay the amount of the penalty within thirty (30) days of the date on which the assessment becomes final, the Commissioner may refer the matter to the attorney general for collection of the penalty, plus court costs and attorney fees.
(k) Any person or institution that is neither exempt nor the holder of a certificate of authority, including an alternative certificate of authority, to grant degrees, shall be assessed an administrative penalty of not less than $1,000 or more than $5,000 for, either individually or through an agent or representative:
(1) conferring or offering to confer a degree;
(2) awarding or offering to award credits purported to be applicable toward a degree to be awarded by another person or institution (except under conditions and in a manner specified and approved by the Board);
(3) representing that any credits offered are collegiate in nature subject to the provisions of this chapter;
(4) each degree conferred without authority, and each person enrolled in a course or courses at the institution whose decision to enroll was influenced by the misrepresentations, constitutes a separate offense.
(l) Any person or institution that violates subsection (a)(4) or (5) of this section shall be assessed an administrative penalty of not less than $1,000 or more than $3,000.
(m) Any agent who solicits students for enrollment in an institution subject to the provisions of the chapter without a certificate of registration shall be assessed an administrative penalty of not less than $500 or more than $1,000. Each student solicited without authority constitutes a separate offense.
(n) Any operations which are found to be in violation of the law shall be terminated.
(o) The Commissioner may report possible violations of this chapter to the attorney general. The attorney general, after investigation and consultation with the Board, shall bring suit to enjoin further violations.
(p) An action for an injunction under this section shall be brought in a district court in Travis County.
(q) A person who violates this chapter or a rule adopted under this chapter is liable for a civil penalty in addition to any injunctive relief or any other remedy allowed by law. A civil penalty may not exceed $1,000 a day for each violation.
(r) The attorney general, at the request of the Board, shall bring a civil action to collect a civil penalty under this section.
(s) A person who violates this chapter commits a false, misleading, or deceptive act or practice within the meaning of the Texas Business & Commerce Code, §17.46.
(t) A public or private right or remedy under the Texas Business & Commerce Code, §17, may be used to enforce this section.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 12, 2008.
TRD-200801421
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 2008
For further information, please call: (512) 427-6114
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 12, §§12.1 - 12.3, 12.21 - 12.39, and 12.41 - 12.46, of Board rules concerning Career Schools and Colleges. Specifically, this repeal will allow Board staff to combine provisions of Chapter 12 into a new chapter that will improve the processes Career Schools and Colleges follow in order to operate in Texas.
Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the chapter is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.
Dr. Stafford has also determined that for each year of the first five years the chapter is in effect, the public benefit anticipated as a result of administering the section will be a quicker, more effective, and more appropriate Board response to the requirements and needs of institutions wishing to operate in Texas. Many of those institutions are small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.
Comments on the proposal may be submitted to Joseph Stafford, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or Joe.Stafford@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register. A public hearing will be held in the Boardroom of the Coordinating Board offices Monday April 7, 2008, from 10 a.m. to 12 noon. While oral comments will be permitted, such comments must also be submitted in written form for consideration.
Subchapter A. PURPOSE, AUTHORITY, AND DEFINITIONS
(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Texas Education Code, Chapter 61, Subchapter G, and Texas Education Code Chapter 132, which provides the Coordinating Board with the authority to regulate the awarding or offering of degrees, credit toward degrees, and the use of certain terms.
The repeal affects implementation of Texas Education Code, Subchapter G, §§61.301 - 61.319, Subchapter H, §§61.401 - 61.405 and Texas Education Code Chapter 132.
§12.1.Purpose.
§12.2.Authority.
§12.3.Definitions.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 12, 2008.
TRD-200801423
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 2008
For further information, please call: (512) 427-6114
(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Texas Education Code, Chapter 61, Subchapter G, and Texas Education Code Chapter 132, which provides the Coordinating Board with the authority to regulate the awarding or offering of degrees, credit toward degrees, and the use of certain terms.
The repeal affects implementation of Texas Education Code, Subchapter G, §§61.301 - 61.319, Subchapter H, §§61.401 - 61.405 and Texas Education Code Chapter 132.
§12.21.Degree Titles Authorized Under This Chapter.
§12.22.Fees.
§12.23.Exemption.
§12.24.Standards for Associate Degree-Granting Career Schools and Colleges.
§12.25.Application for a Certificate of Authority.
§12.26.Commissioner Action on an Application for a Certificate of Authority.
§12.27.Institutional Evaluation.
§12.28.Accreditation.
§12.29.Texas Success Initiative.
§12.30.Concurrent Instruction.
§12.31.Credit for Prior Learning.
§12.32.Transfer of Credit.
§12.33.Graduation and Job Placement Rates.
§12.34.Change of Ownership or Control.
§12.35.Complaints.
§12.36.Legal Proceedings.
§12.37.Withdrawal or Suspension of a Certificate of Authority.
§12.38.Closure of a Career School or College.
§12.39.The Associate of Occupational Studies (AOS) Degree.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 12, 2008.
TRD-200801424
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 2008
For further information, please call: (512) 427-6114
(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Texas Education Code, Chapter 61, Subchapter G, and Texas Education Code Chapter 132, which provides the Coordinating Board with the authority to regulate the awarding or offering of degrees, credit toward degrees, and the use of certain terms.
The repeal affects implementation of Texas Education Code, Subchapter G, §§61.301 - 61.319, Subchapter H, §§61.401 - 61.405 and Texas Education Code Chapter 132.
§12.41.New Program Application.
§12.42.New Program Approval.
§12.43.Program Revision.
§12.44.Contract Instruction.
§12.45.Evaluation of Program Effectiveness.
§12.46.Appeals Procedure.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 12, 2008.
TRD-200801425
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 2008
For further information, please call: (512) 427-6114
Chapter 102. EDUCATIONAL PROGRAMS
Subchapter EE. COMMISSIONER'S RULES CONCERNING PILOT PROGRAMS
The Texas Education Agency (TEA) proposes new §102.1053, concerning the mathematics instructional coaches pilot program. The proposed new section replaces an earlier version that was filed as proposed in the January 4, 2008, issue of the Texas Register (33 TexReg 49), which has been withdrawn. Like the earlier version, the proposed new rule would implement the requirements of the Texas Education Code (TEC), §21.4541, as added by House Bill 2237, 80th Texas Legislature, which requires the commissioner by rule to establish and implement a Mathematics Instructional Coaches Pilot Program, including approval of service providers. The new proposal also addresses program requirements for the awarding of grants for the Mathematics Instructional Coaches Pilot Program.
Recognizing that too many students in Texas middle, junior high, and high schools fail to meet state standards in the area of mathematics, the Texas Legislature provided legislation aimed at addressing this critical achievement issue. House Bill 2237, 80th Texas Legislature, 2007, added the TEC §21.4541, establishing a pilot program under which participating school districts receive grants in order to contract with approved service providers for assistance in developing the content knowledge and instructional expertise of mathematics teachers at the middle school, junior high school, or high school level. The legislation requires that the commissioner establish the pilot program and adopt rules for its implementation.
Proposed new 19 TAC Chapter 102, Subchapter EE, §102.1053, would implement the TEC, §21.4541, by establishing the Mathematics Instructional Coaches Pilot Program. The earlier version being withdrawn addressed provisions specific to the identification and approval of service providers. Subsequent to that proposal, development of proposed provisions relating to school district participation was completed. Accordingly, the new rule proposes provisions that would define applicable words and terms and establish requirements relating to school district participation in the pilot program, including eligibility and conditions of operation. The proposal would also specify criteria and procedures by which approved service providers will be identified and approved to assist districts participating in the pilot program. Approved service providers must demonstrate significant past effectiveness in improving mathematics instruction in middle, junior high, and high schools serving a significant number of students identified as being at risk of dropping out of school, as described by the TEC, §29.081(d).
In addition to the entities described in the TEC, §21.4541(c), the proposed new rule would specify that county departments of education and school districts are eligible to apply for approval as service providers under this grant program and serve in that capacity. However, a school district designated as an approved service provider may not be reimbursed with Mathematics Instructional Coaches Pilot Program funds for providing coaching services to teachers employed by the district.
Grantees and service providers participating in the Mathematics Instructional Coaches Pilot Program would be required to adhere to all procedural, reporting, and evaluation requirements, as determined by the commissioner and outlined in program guidelines and requirements. Participating districts could use information already maintained locally to meet reporting requirements of the pilot program.
Barbara Knaggs, associate commissioner for state initiatives, has determined that for the first five-year period the new section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the new section. The proposal would establish in rule procedures for implementation of the Mathematics Instructional Coaches Pilot Program. The TEA was allocated $1,093,000 for each year of fiscal years 2008 and 2009 to award grants to eligible school districts.
Ms. Knaggs has determined that for each year of the first five years the new section is in effect the public benefit anticipated as a result of enforcing the new section would be the improved preparation of Texas secondary teachers, which would translate into increased learning and performance of students enrolled in Texas secondary schools. There is no anticipated economic cost to persons who are required to comply with the proposed new section.
There is no projected economic impact to small businesses but there may be economic impact to microbusinesses (businesses with fewer than 20 employees) that choose to apply for approved service provider status.
Economic Impact Statement. The proposed rule action could affect between 1-100 microbusinesses. Economic impact would be incurred if a microbusiness needed to hire additional employees in order to become an approved service provider. Microbusinesses would be impacted more than small businesses; however, microbusinesses are not required to participate in the pilot program. The proposed rule action would not affect any small businesses or microbusinesses that did not choose to apply for approved service provider status. Nor would the proposal adversely impact microbusinesses that would not need to hire additional employees.
Regulatory Flexibility Analysis. The TEA assessed alternatives to the proposed rule action that would diminish the impact on microbusinesses; however, it is not possible to provide regulatory flexibility on this matter. One alternative could be to not adopt the rule. This is not an option because establishment of the standards is required by state law. Another alternative considered was to exempt microbusinesses from the rule. This is not an option because all service providers approved to assist school districts with the objectives of the pilot program must meet the same standards established by the commissioner. A third alternative considered was to reduce compliance or reporting requirements for microbusinesses. This is not an option because there are no burdensome requirements to reduce. All approved service providers would be required to submit uniform progress reports and basic program information for continued participation. Therefore, the TEA has considered several alternative methods and that analysis resulted in no alternate options.
The public comment period on the proposal begins March 21, 2008, and ends April 20, 2008. Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination Division, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028. All requests for a public hearing on the proposed new rule submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of the proposal has been published in the Texas Register on March 21, 2008.
The new section is proposed under the Texas Education Code, §21.4541, which requires the commissioner by rule to establish and implement a mathematics instructional coaches pilot program, including the approval of service providers.
The new section implements the Texas Education Code, §21.4541.
§102.1053.Mathematics Instructional Coaches Pilot Program.
(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Approved service provider--An entity, as described in subsection (c) of this section, that has been approved through a request for qualifications (RFQ) process and designated by the commissioner of education as qualified to deliver intensive mathematics coaching and professional development to school districts approved to participate in the Mathematics Instructional Coaches Pilot Program.
(2) Mathematics Instructional Coaches Pilot Program--A pilot program established and implemented by the Texas Education Agency (TEA) in accordance with the Texas Education Code (TEC), §21.4541. Under the pilot program, participating school districts shall receive grants to provide teachers who instruct students in mathematics at the middle school, junior high school, or high school level with assistance in developing content knowledge and instructional expertise. Each participating school district must contract with an approved service provider.
(3) School district--For the purposes of this section, the definition of a school district includes an open-enrollment charter school.
(4) Shared services arrangement (SSA)--A shared services arrangement is an agreement between two or more school districts and/or education service centers that provides services for entities involved.
(b) Pilot program participation.
(1) Eligibility.
(A) Eligibility for participation in the Mathematics Instructional Coaches Pilot Program will be determined annually by the commissioner in accordance with the TEC, §21.4541, and eligibility criteria outlined in the TEC, §39.358.
(B) Education service centers (ESCs) established under the TEC, §8.001, are not eligible to apply for participation in the pilot program as the fiscal agent for an SSA or as a member in an SSA.
(2) Application process.
(A) An eligible school district must apply through the request for application (RFA) process to participate in the pilot program and include a description of how grant funds will be allocated.
(B) An eligible school district submitting an RFA on behalf of other school districts participating in an SSA must agree to serve as the fiscal agent for the grant and will be held responsible for all compliance and audit recoveries.
(C) Eligible applicants must meet all deadlines, requirements, and guidelines outlined in the RFA.
(3) Notification. The TEA will notify each applicant in writing of its selection or non-selection for participation in the Mathematics Instructional Coaches Pilot Program.
(4) Use of funds. The entire amount of a grant award must be used for the Mathematics Instructional Coaches Pilot Program as described in the RFA.
(5) Conditions of operation.
(A) Each successful applicant must operate a Mathematics Instructional Coaches Pilot Program in accordance with requirements detailed in the TEC, §21.4541, and must:
(i) select an approved service provider, as described in subsection (c) of this section, from the list provided by the TEA;
(ii) enter into a contractual relationship for mathematics instructional coaching and professional development services with the approved service provider; and
(iii) design and implement an action plan for the Mathematics Instructional Coaches Pilot Program in collaboration with the approved service provider.
(B) In addition, each successful applicant may enter into an SSA limited to no more than ten eligible districts. A school district may submit or be a member of an SSA for no more than one grant application.
(6) Program evaluation. Each school district operating an approved Mathematics Instructional Coaches Pilot Program must comply with evaluation procedures established by the commissioner as detailed in the RFA.
(7) Revocation for grantee.
(A) The commissioner may revoke grantee participation in the pilot program based on any of the following factors:
(i) noncompliance with requirements and assurances outlined in the RFA and/or the provisions of this section;
(ii) lack of program success as evidenced by progress reports and program data;
(iii) failure to meet performance standards specified in the RFA; or
(iv) failure to provide accurate, timely, and complete information as required by the TEA to evaluate the effectiveness of the pilot program.
(B) A decision by the commissioner to revoke authorization of a grant award is final and may not be appealed.
(8) Sanctions. The commissioner may audit the use of grant funds and impose sanctions on a school district for failure to comply with this section as authorized by the TEC, Chapter 39, as determined by the commissioner.
(9) Recovery of funds. As part of the sanctions described in paragraph (8) of this subsection, the commissioner may recover grant funds from any state provided funds.
(c) Approved service providers.
(1) Eligibility. The following entities that are TEA-certified continuing professional education providers are eligible to apply for approved service provider status:
(A) academies and training centers established in conjunction with a Texas Science, Technology, Engineering, and Mathematics (T-STEM) center;
(B) regional education service centers;
(C) institutions of higher education;
(D) private organizations with significant experience in providing mathematics instruction, as determined by the commissioner;
(E) county departments of education; and
(F) school districts, under the following condition. A school district's statewide assessments in mathematics (summed across all grade levels and for "All Students" only) must meet or exceed the Recognized standard. The TEA will determine eligibility, using the most current results, which can be found in the latest district Academic Excellence Indicator System (AEIS) report.
(2) Identification and selection. In accordance with the TEC, §21.4541(c) and (d), the TEA will identify and select approved service providers through a RFQ process. Failure to adhere to established RFQ requirements and assurances will result in non-selection as a service provider.
(3) Notification. The TEA will notify each applicant in writing of its selection or non-selection as an approved service provider.
(4) Condition of operation. A school district designated as an approved service provider may not be reimbursed with Mathematics Instructional Coaches Pilot Program funds for providing coaching services to teachers employed by the district.
(5) Renewal or revocation for service provider.
(A) Each approved service provider must submit a renewal application every two years in order to maintain eligibility to participate in the Mathematics Instructional Coaches Pilot Program as an approved service provider.
(B) The commissioner may deny renewal of or revoke participation in the Mathematics Instructional Coaches Pilot Program for a service provider based on any of the following factors:
(i) noncompliance with requirements and assurances outlined in the RFQ and/or the provisions of this section and the TEC, §21.4541;
(ii) lack of program success as evidenced by required progress reports and program data;
(iii) failure to meet performance standards specified in the RFQ;
(iv) failure to provide accurate, timely, and complete information as required by the TEA to evaluate the effectiveness of the service provider and the pilot program; or
(v) refusal to serve participants in the Mathematics Instructional Coaches Pilot Program.
(C) A decision by the commissioner to deny renewal or revoke approval of a service provider is final and may not be appealed.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 10, 2008.
TRD-200801374
Cristina De La Fuente-Valadez
Director, Policy Coordination
Texas Education Agency
Earliest possible date of adoption: April 20, 2008
For further information, please call: (512) 475-1497