Proposed Rules Title 19

TITLE 19. EDUCATION

PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

CHAPTER 4. RULES APPLYING TO ALL PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN TEXAS

SUBCHAPTER B. TRANSFER OF CREDIT, CORE CURRICULUM AND FIELD OF STUDY CURRICULA

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new §4.36, concerning Transfer of Credit, Core Curriculum and Field of Study Curricula. This new section establishes undergraduate academic certificates at any public junior college or general academic teaching institution, for completion of the institution's approved core curriculum, or the completion of either a Board-approved Field of Study Curriculum or Statewide Articulated Transfer Curriculum. Undergraduate academic certificates created under the new section would require Coordinating Board notification. Approval would be automatic, but subject to review upon request. The new academic certificate would allow students to receive an academic credential signifying the completion of a significant component of an associate's or bachelor's degree; would provide assurance of that completion to a receiving institution in the case of a student transferring to another institution; and would provide for the reporting of certificates as success measures for colleges and universities.

Dr. MacGregor M. Stephenson, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the new section is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rule.

Dr. Stephenson has also determined that for each year of the first five years the new section is in effect, the proposed change would benefit students by providing them with a pre-degree-completion credential demonstrating a certain level of academic attainment, and to institutions by providing a success measure. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new section is proposed under the Texas Education Code, Chapter 61 which gives the Coordinating Board the authority to regulate the awarding or offering of degrees, credit towards degrees, and the use of certain terms.

The new section affects implementation of Texas Education Code, §61.051(g).

§4.36.Undergraduate Academic Certificate.

(a) Institutions of higher education are encouraged to develop undergraduate academic certificate programs of less than degree length. These rules are intended to provide a streamlined process for approval of these certificates.

(b) Undergraduate academic certificates may be awarded upon the completion of:

(1) the Board-approved approved core curriculum of the institution;

(2) a Board-approved field of study curriculum; or

(3) a Board-approved statewide articulated transfer curriculum of less than degree length.

(c) Undergraduate academic certificates which meet one of the criteria in subsection (b) of this section require Board notification and are automatically approved.

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 July 24, 2009.

TRD-200903080

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER G. EARLY COLLEGE HIGH SCHOOLS AND MIDDLE COLLEGES

19 TAC §§4.151, 4.153, 4.155, 4.161

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §§4.151, 4.153, 4.155, and 4.161, concerning Early College High Schools and Middle Colleges. Specifically, these amendments will clarify the distinctions between Early College High Schools and Middle Colleges, clarify student eligibility, and clarify that for Early College High Schools the exemption from dual credit restrictions is dependent upon designation by the Texas Education Agency, in accordance with Texas Administrative Code, Title 19, §102.1091.

Dr. Judith Loredo, Assistant Commissioner, P-16 Initiatives, has determined that for each year of the first five years the 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. Judith Loredo has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering these sections will be a greater assurance of quality of the programs and services offered by these entities and a greater coordination between the Texas Education Agency and the Texas Higher Education Coordinating Board, resulting in more seamless application procedures for participating entities. There is no effect on 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 Dr. Kristen Kramer, Senior Program Director, College Readiness, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711, or kristen.kramer@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendments are proposed under the Texas Education Code, §§29.908, 61.076, 130.001(b)(3), and 130.090, which provide the Coordinating Board with the authority to regulate courses and programs offered by public institutions of higher education in cooperation with secondary schools.

The amendments affect Texas Education Code, §29.908.

§4.151.Purpose.

The purpose of this subchapter is to provide [ ~~appropriate~~] oversight by the Board of [~~for~~] public colleges or universities engaged [~~to engage~~] in partnerships establishing early college high schools or middle colleges. The rules and regulations for public colleges or universities to engage in dual credit partnerships with secondary schools as provided for in this subchapter pertain only to Early College High Schools and Middle Colleges in accordance with §4.153 of this title (relating to Definitions).

§4.153.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (4) (No change.)

(5) Early College High School [~~or Middle College,~~] or ECHS[~~/MC~~]--The institution or entity designated by the Texas Education Agency as an Early College High School in accordance with §102.1091 of this title (relating to Commissioner's Rules Concerning Early College Education Program), that provides the outreach, curricula, and student learning and support programs that enable the participating student to combine high school courses and college-level courses during grade levels 9 through 12 and to [ ~~for students who~~] attain the Recommended or Advanced High School Program diploma and earn up to 60 semester credit hours toward an associate or baccalaureate degree by the fifth anniversary of the student's first day of high school [~~two years of college credit simultaneously.~~].

(6) Middle College or MC--The institution or entity that provides the outreach, a course of study, and student learning and support programs that enable a participating student to combine high school courses and college-level courses during grade levels 11 through 12 and to attain the Recommended or Advanced High School Program diploma and a significant number of semester credit hours toward an associate or baccalaureate degree.

(7) [~~(6)~~] Recommended or Advanced High School Program--The curriculum specified in the Texas Education Code, §28.025, and the rules promulgated there under by the State Board of Education.

§4.155.Student Eligibility.

(a) Students participating in an ECHS or MC must meet eligibility requirements governing dual credit in accordance with §§4.81 - 4.85 of this title (relating to Dual Credit Partnerships Between Secondary Schools and Texas Public Colleges).

(b) [~~(a)~~] An ECHS/MC shall assess each student for readiness to engage in any college-level curriculum offered for college credit prior to the student's enrollment in such curriculum.

(c) [~~(b)~~] For this assessment, an ECHS/MC may use any instrument otherwise approved by the Board for Texas Success Initiative purposes in accordance with §4.54 (relating to Exemptions/Exceptions), [~~and~~] §4.56 (relating to Assessment Instrument), and §4.57 (relating to Minimum Passing Standards) of this title [~~including, but not limited to, Texas Assessment of Knowledge and Skills (TAKS) scores, ACT scores, and SAT scores~~].

(d) [~~(c)~~] After assessment, the ECHS/MC, using guidelines established by the C/U, shall determine what forms of assistance and remediation, if any, are necessary prior to a student's enrollment in any college-level curriculum based on the results of the assessment and other indicators of student readiness.

§4.161.Exemption from Certain Dual Credit Restrictions.

(a) Rules governing dual credit in accordance with §§4.81 - 4.85 of this title (relating to Dual Credit Partnerships Between Secondary Schools and Texas Public Colleges) pertain to an MC or an ECHS and its participating students. [ ~~A student enrolled in ECHS/MC may enroll in more than two dual credit courses per semester, and may enroll in dual credit coursework with freshman, sophomore, junior, or senior high school standing.~~]

(b) An MC or an ECHS that has notified the Commissioner in accordance with §4.154 of this title (relating to Notification of Institutional Intent to Develop an Early College High School/Middle College Entity) may allow its eligible students to enroll in more than two dual credit courses per semester. An ECHS may allow its eligible students to enroll in dual credit coursework with freshman, sophomore, junior, or senior high school standing.

(c) If the Commissioner of Education denies the application for designation as an ECHS, denies the renewal of designation, or revokes the authorization of an ECHS program in accordance with §102.1091 of this title (relating to Commissioner's Rules Concerning Early College Education Program), the exemption outlined in subsection (b) of this section is simultaneously revoked.

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 July 21, 2009.

TRD-200902995

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER N. PUBLIC ACCESS TO COURSE INFORMATION

19 TAC §§4.225 - 4.229

The Texas Higher Education Coordinating Board proposes new §§4.225 - 4.229, concerning Public Access to Course Information. The purpose of these new sections is to require each institution of higher education, other than a medical and dental unit, to make available to the public on the institution's Internet website certain course information and information about available work-study opportunities as required by Senate Bill 305 and House Bill 2504, 81st Texas Legislature.

Dr. MacGregor M. Stephenson, 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 be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Stephenson 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 to better inform students as they make choices about which courses to take. It will also assist potential students to make good financial decisions related to their education, and will better inform students about work-study opportunities that may make their higher education more affordable. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

The new sections are proposed under the Texas Education Code, §51.974 and §56.080.

The new sections affect implementation of Texas Education Code, §51.974 and §56.080.

§4.225.Purpose.

Each institution of higher education, other than a medical and dental unit, shall make available to the public on the institution's Internet website certain course information, estimates of the cost of attendance for full-time students, and information about available work-study opportunities.

§4.226.Authority.

Texas Education Code; Subchapter Z, Chapter 51, §51.974(g) authorizes the Texas Higher Education Coordinating Board to adopt rules necessary to administer this subchapter. The Texas Education Code, §61.051, describes the Board's role in the Texas system of higher education.

§4.227.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Commissioner--"The Commissioner of Higher Education" means the agency acting through its executive, and his or her designees, staff, or agents.

(2) Curriculum Vitae--A document that summarizes the career and qualifications of the regular instructor, including at least the following:

(A) all institutions of higher education attended, with the dates of attendance and degree(s) earned;

(B) all previous teaching and administrative positions relevant to higher education, including the names of the institutions, the position, beginning and ending dates, and brief description of the position's responsibilities; and

(C) a list of significant professional publications relevant to the academic positions held, including full publication data for each entry.

(D) The curriculum vitae may include the instructor's professional contact information, such as office telephone number, work address, and institutional email address. It may not include personal information about the instructor, such as the home address or personal telephone number.

(3) Departmental Budget Report--If a course is offered through a unit other than a department - such as a program, college, or institute - substitute the budget for that unit as appropriate. The budget report shall include:

(A) detail for the most recent academic year for which data are available;

(B) income from all sources; and

(C) a summary by functional categories such as salaries and wages, travel, etc. (as defined by the National Association of College and University Business Officers).

(4) Institutions of Higher Education or Institution--Any public technical institute, public junior college, public senior college or university, medical or dental unit, other agency of higher education as defined in Texas Education Code, §61.003.

(5) Instructor(s) of Record--The primary instructor or co-instructors of a course who are responsible for the course content and the assignment of final grades. This includes tenured and tenure-track faculty, lecturers, adjuncts, and graduate assistants. It does not include guest lecturers or others who may be brought in to teach less than fifty percent of the class sessions.

(6) Internet Website Home Page--The primary Internet web page that serves as the opening portal to the public for all of the other public web pages and Internet services hosted by the institution. It is commonly the web page with the uniform resource locator (URL) address that ends with the domain suffix ".edu".

(7) Medical or Dental Unit--"Medical and dental unit" means Texas A&M University System Health Science Center, Texas Tech University Health Sciences Center, The University of Texas Health Science Center at Houston, The University of Texas Health Science Center at San Antonio, The University of Texas Health Science Center at Tyler, The University of Texas M.D. Anderson Cancer Center, The University of Texas Medical Branch at Galveston, The University of Texas Southwestern Medical Center at Dallas, University of North Texas Health Science Center at Fort Worth, and the Paul L. Foster School of Medicine at Texas Tech University Health Sciences Center at El Paso, and such other medical or dental schools as may be established by statute or as provided in Chapter 61 of the Texas Education Code.

(8) Significant Professional Publications--Discipline-related refereed papers/publications, books/book chapters, juried creative performance accomplishments, and notices of discoveries filed/patents.

(9) Syllabus--A document describing the course that satisfies any standards for syllabi adopted by the institution. The document shall include, at a minimum, the following:

(A) a brief description of each major course requirement, including each major assignment and examination;

(B) the learning objectives for the course;

(D) lists of any required or recommended readings.

(10) Undergraduate Classroom Course--Any lower- or upper-division credit course offered to more than one student. This includes on-campus, off-campus, distance education, and dual-credit courses (including those taught on high school campuses). It excludes courses with highly variable subject content that are tailored specifically to individual students, such as Independent Study and Directed Reading courses. It excludes laboratory, practicum, or discussion sections that are intrinsic and required parts of larger lecture courses and are directly supervised by the same instructor(s) of record for those large courses.

(11) Work-study employment opportunity--Includes all of the programs and opportunities included as part of the Federal College Work-Study Program, the State of Texas Work-Study Program, and any additional programs sponsored by the institution. For the purposes of this subchapter, work-study applies only to resident undergraduate students. It does not include teaching assistantships or work done in exchange for competitive fellowships, grants, scholarships, or any other type of financial award that is substantially greater than the fair market wage of the work performed.

§4.228.Internet Access to Course Information.

(a) Each public institution of higher education, other than a medical and dental unit, shall make available to the public on the institution's Internet website the following information for each undergraduate classroom course offered for credit by the institution: a syllabus, a curriculum vitae for the regular instructor(s), and (if available) a departmental operating budget from the most recent semester or other academic term during which the institution offered the course.

(b) If multiple sections of a course use an identical syllabus with identical assignments and readings, only one syllabus shall be posted. The curriculum vitae of each instructor(s) of each section shall be posted.

(1) accessible from the institution's Internet website home page by use of not more than three links;

(2) searchable by keywords and phrases;

(3) accessible to the public without requiring registration or use of a user name, a password, or another user identification;

(4) available not later than the seventh day after the first day of classes for the semester or other academic term during which the course is offered; and

(5) updated as soon as practicable after the information changes.

(d) The institution shall continue to make the information available on the institution's Internet website until at least the second anniversary of the date on which the institution initially posted the information.

(e) Institutions shall conduct end-of-course student evaluations of faculty and develop a plan to make evaluations publicly available on the institution's website. These evaluations shall be for all undergraduate courses, including on-campus, off-campus, distance education, and dual-credit courses (including those taught on high school campuses).

(f) The governing body of the institution shall designate an administrator to be responsible for ensuring implementation of this section. Not later than January 1 of each odd-numbered year, each institution of higher education shall submit a written report regarding the institution's compliance with this section to the governor, the lieutenant governor, the speaker of the house of representatives, and the presiding officer of each legislative standing committee with primary jurisdiction over higher education.

(g) Institutions must begin compliance with these rules no later than January 1, 2010.

§4.229.Internet Access to Work-Study Information.

(a) Each institution of higher education shall establish and maintain an online list of work-study employment opportunities available to students on the institution's campus, sorted by department as appropriate.

(b) Each institution of higher education shall ensure that the list is easily accessible to the public through a clearly identifiable link that appears in a prominent place on the financial aid page of the institution's Internet website.

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 July 24, 2009.

TRD-200903082

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER O. UNIFORM RECRUITMENT AND RETENTION STRATEGY

19 TAC §§4.240 - 4.245

The Texas Higher Education Coordinating Board proposes new §§4.240 - 4.245, concerning Uniform Recruitment and Retention Strategy (URRS). Specifically the new sections will implement the Uniform Recruitment and Retention Strategy for Texas public institutions of higher education. The URRS will improve programs to ensure the success of students in higher education and meet the goals of Closing the Gaps by 2015.

Dr. Judith Loredo, Assistant Commissioner for P-16 Initiatives has determined that for each year of the first five years the new sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Loredo 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 increased student success and graduation from institutions of higher education. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Natalie Coffey, Director, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or natalie.coffey@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under Texas Education Code; §61.086, the Board is authorized to establish guidelines and reporting requirements, as well as adopt rules to enforce the requirements, conditions, and limitations of §61.086 for the Uniform Recruitment and Retention Strategy.

The new sections affect Texas Education Code, §61.086.

§4.240.Purpose.

The purpose of this subchapter is to implement the Uniform Recruitment and Retention Strategy for Texas public institutions of higher education. It is the intent of the Texas Higher Education Coordinating Board that Texas public institutions of higher education use the flexibility and responsibility granted under these rules to improve programs to ensure the success of students in higher education and meet the goals of Closing the Gaps by 2015.

§4.241.Authority.

Under Texas Education Code, §61.027, the Board is authorized to adopt rules to implement Texas Education Code, §61.086.

§4.242.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education.

(3) Closing the Gaps by 2015--The state's master plan for higher education in Texas, adopted in October 2000 by the Texas Higher Education Coordinating Board, directed at closing educational gaps within Texas, as well as between Texas and other states, and which has four goals: to close the gaps in student participation, student success, excellence, and research.

(4) Coordinating Board Grant and Program Evaluation Fidelity Scale--

(A) 1 = serious departure from the requirements of the program;

(B) 2 = minor departures from requirements noted; and

(5) Degree program--Any grouping of subject matter courses which, when satisfactorily completed by a student, entitles the student to a degree from an institution of higher education.

(6) Institution of Higher Education or Institution--Any public technical institute, public junior college, public senior college or university, medical or dental unit, or other agency of higher education as defined in Texas Education Code, §61.003.

(7) Student Recruitment--Identification and enrollment of students that represent the population of Texas.

(8) Student Retention or Persistence Rate--The rate at which students persist in higher education, often as measured by the percentage of students who continue in higher education from one year to the succeeding year.

§4.243.Evaluation.

(a) The Board shall evaluate the effectiveness of the Uniform Recruitment and Retention Strategy plans on a statewide basis and with respect to each institution based on how the Uniform Recruitment and Retention Strategy plan will address Closing the Gaps by 2015.

(b) The Board shall incorporate the Uniform Recruitment and Retention Strategy into:

(1) standards for new Baccalaureate and Master's Degree Programs;

(2) the review of low-producing degree programs;

(3) the approval process for doctoral and health-related degree programs;

(4) the evaluation methodology for Tuition Revenue Bond Projects; and

(5) the review and evaluation of request for proposals and request for applications from institutions of higher education.

§4.244.Reporting.

(a) The Coordinating Board shall establish reporting requirements and forms to be completed by all public institutions of higher education.

(b) As required by Texas Education Code, §51.4032, not later than December 1 of each year, each institution shall report to the Coordinating Board on the progress made by students as well as the institution's evaluation of the Uniform Recruitment and Retention Strategy. An institution is considered in compliance if the Uniform Recruitment and Retention Strategy report is approved by Coordinating Board staff. Coordinating Board staff may require an institution to resubmit a report that was not approved. The report must be resubmitted within ten business days after the request is made by Coordinating Board staff. The report shall include at a minimum:

(1) Student performance/success data;

(2) Student participation data;

(3) Information relating to the costs of the program and funding source, and number of students served;

(4) The academic progress made by students as well as other outcomes related to Closing the Gaps by 2015; and

(5) Institutions shall collect data and evaluate success based on the following elements and connect them to the accelerated targets for Closing the Gaps by 2015:

(A) Partnership with high-need, low-college going rate public schools;

(B) Pre-college academic outreach;

(D) Financial aid assistance;

(E) Academic support programs;

(F) Tutoring/mentoring programs;

(G) Academic advising; and

(H) Early Alert Systems that include academic support for at-risk students.

(c) At the discretion of the Coordinating Board, the Uniform Recruitment and Retention Strategy reports may be reviewed by external peer reviewers.

(d) The Coordinating Board reserves the right to audit any program reported as a part of the Uniform Recruitment and Retention Strategy.

§4.245.Noncompliance; Sanctions.

(a) The following constitutes noncompliance:

(1) A Coordinating Board Evaluation Fidelity Score of 1;

(2) A report that has not been submitted by the December 1 deadline; or

(3) A resubmitted report that has not been submitted within ten business days.

(b) For noncompliance with any Closing the Gaps by 2015 reporting requirements, including the Uniform Recruitment and Retention Strategy, the Coordinating Board shall withhold program approvals as outlined in Chapter 5, Subchapter C of this title (relating to Approval of New Academic Programs and Administrative Changes at Public Universities, Health-Related Institutions, and/or Selected Public Colleges), all Coordinating Board grant funding, and up to 22 points in the Tuition Revenue Bond approval process.

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 July 24, 2009.

TRD-200903083

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER P. APPROVAL OF DISTANCE EDUCATION COURSES AND PROGRAMS FOR PUBLIC INSTITUTIONS

19 TAC §§4.255 - 4.264

The Texas Higher Education Coordinating Board proposes new §§4.255 - 4.264, concerning Approval of Distance Education Courses and Programs for Public Institutions. Specifically, the new sections will allow Board staff to clarify requirements Texas institutions of higher education must meet in order to deliver distance education courses and programs, and to develop rules relating to the Approval of Distance Education Courses and Programs for Public Institutions.

Dr. Stephenson 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 negligible. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There will be no impact on local employment.

The new sections are proposed under the Texas Education Code, Chapter 61, Subchapter C, §61.051, which provides the Coordinating Board with the authority to coordinate institutions of higher education.

The new sections affect the Texas Education Code, Subchapter C, §61.051(j).

§4.255.Purpose.

This subchapter establishes rules for all public institutions of higher education in Texas regarding the delivery of distance education courses and programs. The rules are designed to provide Texas residents with access to courses and programs that meet their needs, to ensure course and program quality, and to prevent the unnecessary duplication of these courses and programs.

§4.256.Authority.

Authority for these provisions is provided by Texas Education Code, §61.051(j), which provides the Board with the authority to approve courses for credit and distance education programs.

§4.257.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Academic credit course--A college-level course that, if successfully completed, can be applied toward the number of courses required for achieving a degree, diploma, certificate, or other formal award.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Commissioner--The Commissioner of Higher Education; as used in this subchapter, "Commissioner" means the agency acting through its executive, and his or her designees, staff, or agents.

(4) Community College--Any public community college as defined in Texas Education Code, §61.003 and §130.005, and whose role, mission, and purpose is outlined in Texas Education Code, §130.0011 and §130.003.

(5) Continuing Education Course--A Coordinating Board-approved higher education technical course offered for continuing education units and conducted in a competency-based format. Such a course has specific occupational and/or apprenticeship training objectives.

(6) Continuing Education Unit or CEU--Ten contact hours of participation in an organized educational experience under responsible sponsorship, capable direction, and qualified instruction and not offered for academic credit.

(7) Degree--Any title or designation, mark, abbreviation, appellation, or series of letters or words, including "associate", "bachelor's", "master's", and "doctor's" and their equivalents and foreign cognates, which signifies satisfactory completion of the requirements of a program of study which is generally regarded and accepted as an academic degree-level program by accrediting agencies recognized by the Board.

(8) Distance Education--The formal educational process that occurs when students and instructors are not in the same physical setting for the majority (more than 50 percent) of instruction.

(9) Distance Education Course--A course in which a majority (more than 50 percent) of the instruction occurs when the students and instructor(s) are not in the same place. Two categories of distance education courses are defined:

(A) Fully Distance Education Course--A course which may have mandatory face-to-face sessions totaling no more than 15 percent of the instructional time. Examples of face-to-face sessions include orientation, laboratory, exam review, or an in-person test.

(B) Hybrid/Blended Course--A course in which a majority (more than 50 percent but less than 85 percent), of the planned instruction occurs when the students and instructor(s) are not in the same place.

(10) Distance Education Degree or Certificate Program--A program in which a student may complete a majority (more than 50 percent) of the credit hours required for the program through distance education courses.

(11) Doctoral Degree--An academic degree beyond the level of a master's degree that typically represents the highest level of formal study or research in a given field.

(12) First-Professional Degree--An award that requires completion of a program that meets all of the following criteria:

(A) completion of the academic requirements to begin practice in the profession;

(B) at least two years of college work prior to entering the program; and

(C) a total of at least six academic years of college work to complete the degree program, including prior required college work plus the length of the professional program itself. First-Professional degrees are discipline-specific, including, but not limited to, degrees such as: Dentistry (D.D.S. or D.M.D.); Medicine (M.D.); Veterinary Medicine (D.V.M.); Law (L.L.B, J.D.); and Pharmacy (Pharm.D).

(13) Formula Funding--The method used to allocate appropriated sources of funds among institutions of higher education.

(14) Formula-funded Course--An academic credit course delivered face-to-face or by distance education whose semester credit hours are submitted for formula funding.

(15) Institution of Higher Education or Institution--Any public technical institute, public community college, public senior college or university, medical or dental unit, or other agency of higher education as defined in Texas Education Code, §61.003.

(16) Institutional Plan for Distance Education--A plan that must be submitted for Coordinating Board approval prior to an institution offering distance education courses or programs for the first time.

(17) Non-credit Course--A course that results in the award of continuing education units (CEU) as specified by Southern Association of Colleges and Schools (SACS) criteria. Only courses that result in the award of CEUs may be submitted for state funding.

(18) Non-Resident Student--A student who is not a Texas resident and/or does not qualify for Texas resident tuition.

(19) Out-of-state/Out-of-country Courses and Programs--Academic credit courses and programs delivered outside Texas/United States to individuals or groups who are not regularly enrolled, on-campus students. Out-of-state and out-of-country courses do not receive formula funding.

(20) Program or Program of Study--Any grouping of courses which are represented as entitling a student to a degree or certificate.

(21) Public Health-Related Institution or Health-Related Institution--A medical or dental unit as defined by Texas Education Code, §61.003(5).

(22) Public University or University--A general academic teaching institution as defined by Texas Education Code, §61.003(3).

(23) Regular On-Campus Student--A student who is admitted to an institution, the majority of whose semester credit hours are reported for formula funding and whose coursework is primarily taken at an institution's main campus or on one or more of the campuses within a multi-campus community college system.

(24) Self-Supporting Courses and Programs--Academic credit courses and programs (formerly defined as extension courses or programs) whose semester credit hours are not submitted for formula funding.

(25) Semester Credit Hour--A unit of measure of instruction consisting of 60 minutes, of which 50 minutes must be direct instruction over a 15-week period in a semester system.

(26) Workforce Continuing Education Course--A course of ten contact hours of participation in an organized continuing education experience under responsible sponsorship, capable direction, and qualified instruction, as outlined in the Guidelines for Instructional Programs in Workforce Education with an occupationally specific objective and supported by state appropriations. Workforce continuing education courses are offered by community and technical colleges and differ from a community service course which is not eligible for state reimbursement and is offered for recreational or avocational purposes.

§4.258.General Provisions.

(a) This subchapter governs the following types of instruction offered by institutions of higher education:

(1) Academic credit courses, degree and certificate programs, and self-supporting courses and programs provided by all public institutions of higher education; and

(2) Formula-funded workforce continuing education provided by a public community college, Lamar State College, or public technical college.

(b) This subchapter does not apply to the following types of instruction provided through distance education:

(1) Non-credit adult and continuing education courses provided by a senior college or university or health-related institution.

(2) Non-formula-funded continuing education provided by a public community college, Lamar State College, or public technical college.

§4.259.Institutional Plan for Distance Education

(a) Prior to offering any distance education courses or programs for the first time, institutions of higher education shall submit an Institutional Plan for Distance Education to the Board for approval. The Commissioner shall provide guidelines for development of the report and a schedule for any periodic submission of updated reports.

(b) Institutional academic and administrative policies shall reflect a commitment to maintain the quality of distance education courses and programs in accordance with the provisions of this subchapter. An Institutional Plan for Distance Education shall conform to Board guidelines and criteria of the Commission on Colleges of the Southern Association of Colleges and Schools in effect at the time of the Report's approval. These criteria shall include provisions relating to:

(1) Institutional Issues;

(2) Educational Programs;

(3) Faculty;

(4) Student Support Services; and

(5) Distance Education Facilities and Support.

§4.260.Standards and Criteria for Institutions.

The following provisions apply to all institutions covered under this subchapter, unless otherwise specified:

(1) Institutions shall comply with the standards and criteria of the Commission on Colleges of the Southern Association of Colleges and Schools.

(2) Institutions shall adhere to criteria outlined in Principles of Good Practice for Degree and Certificate Programs and Courses Offered Through Distance Education.

(3) The Commissioner shall establish procedures governing the quality, review, and approval of distance education programs and courses. The Commissioner may also require institutions to provide reports on distance education programs and courses.

(4) Students shall be provided academic support services appropriate for distance education, such as advising, career counseling, library, and other learning resources.

(5) Institutions shall report enrollments, courses, and graduates associated with self-supporting offerings as required by the Commissioner.

§4.261.Standards and Criteria for Distance Education Programs.

The following provisions apply to all programs covered under this subchapter, unless otherwise specified:

(1) Each program shall be within the role and mission of the institution responsible for offering the instruction and shall be on its inventory of approved programs.

(2) Prior Board approval may be required before an institution may offer programs in certain subject area disciplines or under other conditions specified by the Board or Commissioner.

(3) An institution shall not offer doctoral or first-professional degree programs by distance education without specific prior approval by the Board. The Commissioner may approve for delivery by other delivery modes doctoral and special professional degree programs that have previously been approved by the Board for electronic or off-campus delivery.

(4) An institution offering a degree or certificate program shall comply with the standards and criteria of any specialized accrediting agency or professional certification board.

(5) Each degree program offered via distance education shall be approved by an institution's governing board or the governing board's institutional designee. Certification of approval shall be submitted to the Board upon request.

(6) Institutions shall require that students (except for students in out-of-country programs) enrolled in a distance education degree program satisfy the same requirements for admission to the institution and the program as required of regular on-campus students. Students in degree programs to be offered collaboratively shall meet the admission standards of their home institution.

(7) Out-of-country students shall meet equivalent standards for admission into programs and shall be assessed for academic guidance purposes in a manner determined by the admitting institution.

§4.262.Standards and Criteria for Distance Education Courses.

The following provisions apply to all courses covered under this subchapter, unless otherwise specified:

(1) Each course shall be within the role and mission of the institution responsible for offering the instruction and shall be on its inventory of approved programs.

(2) All courses covered under this subchapter shall meet the quality standards applicable to on-campus courses.

(3) Institutions shall report to the Coordinating Board, in accordance with Board policy and procedures, all distance education courses and programs.

(4) Except for students in out-of-country courses, students shall satisfy the same requirements for enrollment in an academic credit course as required of on-campus students.

(5) Out-of-country students shall meet equivalent standards for enrollment in an academic credit course and shall be assessed for academic guidance purposes in a manner determined by the admitting institution.

(6) The instructor of record shall bear responsibility for the delivery of instruction and for evaluation of student progress.

§4.263.Standards and Criteria for Distance Education Faculty.

The following provisions apply to faculty teaching in programs covered under this subchapter, unless otherwise specified:

(1) Faculty shall be selected and evaluated by equivalent standards, review, and approval procedures used by the institution to select and evaluate faculty responsible for on-campus courses.

(2) Institutions shall provide training and support to enhance the added skills required of faculty teaching courses through electronic means.

(3) The supervision, monitoring, and evaluation processes for faculty shall be equivalent to those for on-campus courses.

§4.264.Formula Funding General Provisions.

(a) Institutions shall report distance education courses submitted for formula funding in accordance with the Board's uniform reporting system and the provisions of this subchapter.

(b) Institutions may submit for formula funding academic credit courses delivered by distance education to any student located in Texas or to Texas residents located out-of-state or out-of-country.

(c) Institutions shall not submit for formula funding distance education courses taken by non-resident students who are located out-of-state or out-of-country, courses in out-of-state or out-of-country programs taken by any student, or self-supporting courses.

(d) For courses not submitted for formula funding, institutions shall charge fees that are equal to or greater than Texas resident tuition and applicable fees and that are sufficient to cover the total cost of instruction and overhead, including administrative costs, benefits, computers and equipment, and other related costs. Institutions shall report fees received for self-supporting and out-of-state/country courses in accordance with general institutional accounting practices.

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 July 24, 2009.

TRD-200903084

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER Q. APPROVAL OF OFF-CAMPUS AND SELF-SUPPORTING COURSES AND PROGRAMS FOR PUBLIC INSTITUTIONS

19 TAC §§4.270 - 4.279

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new §§4.270 - 4.279, concerning Approval of Off-Campus and Self-Supporting Courses and Programs for Public Institutions. Specifically, the new sections will allow Board staff to clarify requirements Texas institutions of higher education must meet in order to deliver off-campus and on-campus self-supporting courses and programs, and to develop rules relating to the Approval of Off-Campus and Self-Supporting Courses and Programs for Public Institutions.

Dr. Stephenson 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 negligible. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There will be no impact on local employment.

Comments on the new sections may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposed rules in the Texas Register.

The new sections affect the Texas Education Code, Subchapter C, §61.051(j).

§4.270.Purpose.

This subchapter establishes rules for all public institutions of higher education in Texas regarding the delivery of off-campus and on-campus self-supporting courses and programs. The rules are designed to provide Texas residents with access to off-campus courses and self-supporting courses and programs that meet their needs, to ensure course and program quality, and to assure the adequacy of the technical and managerial infrastructure necessary to support such courses and programs.

§4.271.Authority.

Authority for these provisions is provided by Texas Education Code, §61.051(j), which provides the Board with the authority to approve courses for credit and distance education programs.

§4.272.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(2) Area Institution--A university, health-related institution, independent institution, or legislatively established or Board-approved higher education center which is within a 50-mile radius of a proposed off-campus instruction site.

(3) Board--The Texas Higher Education Coordinating Board.

(4) Commissioner--The Commissioner of Higher Education; as used in this subchapter, "Commissioner" means the agency acting through its executive, and his or her designees, staff, or agents.

(5) Community College--Any public community college as defined in Texas Education Code, §61.003 and §130.005, and whose role, mission, and purpose is outlined in Texas Education Code, §130.0011 and §130.003.

(6) Continuing Education Course--A Coordinating Boardapproved higher education technical course offered for continuing education units and conducted in a competencybased format. Such a course has specific occupational and/or apprenticeship training objectives.

(7) Continuing Education Unit or CEU--Ten contact hours of participation in an organized educational experience under responsible sponsorship, capable direction, and qualified instruction and not offered for academic credit.

(8) Degree--Any title or designation, mark, abbreviation, appellation, or series of letters or words, including "associate", "bachelor's", "master's", and "doctor's" and their equivalents and foreign cognates, which signifies satisfactory completion of the requirements of a program of study which is generally regarded and accepted as an academic degree-level program by accrediting agencies recognized by the Board.

(9) Doctoral Degree--An academic degree beyond the level of a master's degree that typically represents the highest level of formal study or research in a given field.

(10) First-Professional Degree--An award that requires completion of a program that meets all of the following criteria:

(A) completion of the academic requirements to begin practice in the profession;

(B) at least two years of college work prior to entering the program; and

(11) Formula Funding--The method used to allocate appropriated sources of funds among institutions of higher education.

(12) Formula-funded Course--An academic credit course delivered face-to-face or by distance education, including correspondence, whose semester credit hours are submitted for formula funding.

(13) Institution of Higher Education or Institution--Any public technical institute, public community college, public senior college or university, medical or dental unit, or other agency of higher education as defined in Texas Education Code, §61.003.

(14) Main Campus--The primary campus or campuses of an institution of higher education supplying instruction and supported by on-site administration, also referred to as on-campus.

(15) Non-credit course--A course that results in the award of continuing education units (CEU) as specified by Southern Association of Colleges and Schools (SACS) criteria. Only courses that result in the award of CEUs may be submitted for state funding.

(16) Off-Campus Course--A course in which a majority (more than 50 percent) of the instruction occurs when the students and instructor(s) are in the same physical location and which meets one of the following criteria: for public senior colleges and universities, Lamar state colleges, or public technical colleges, off-campus locations are locations away from the main campus; for public community colleges, off-campus locations are sites outside the service area.

(17) Off-Campus Degree or Certificate Program--A program in which a student may complete a majority (more than 50 percent) of the credit hours required for the program through off-campus courses.

(18) Off-Campus Instruction--The formal educational process in which a majority (more than 50 percent) of the instruction occurs when the students and instructor(s) are in the same physical location and which meets one of the following criteria: for public senior colleges and universities, Lamar state colleges, or public technical colleges, off-campus locations are locations away from the main campus; for public community colleges, off-campus locations are sites outside the service area.

(19) Out-of-State/Out-of-Country Courses and Programs--Academic credit courses and programs delivered outside Texas/United States to individuals or groups who are not regularly enrolled on-campus students. Out-of-state and out-of-country courses do not receive formula funding.

(20) Public Health-Related Institution or Health-Related Institution--A medical or dental unit as defined by Texas Education Code, §61.003(5).

(21) Public Technical Institute or College--The Lamar Institute of Technology or any campus of the Texas State Technical College System.

(22) Public University or University--A general academic teaching institution as defined by Texas Education Code, §61.003(3).

(23) Regional Council--A cooperative arrangement among representatives of all public, private or independent institutions of higher education within a Uniform State Service Region, as established under Texas Education Code, §51.662.

(24) Regular On-Campus Student--A student who is admitted to an institution, the majority of whose semester credit hours are reported for formula funding and whose coursework is primarily taken at an institution's main campus or on one or more of the campuses within a multi-campus community college system.

(25) Self-Supporting Courses and Programs--Academic credit courses and programs whose semester credit hours are not submitted for formula funding.

(26) Semester Credit Hour--A unit of measure of instruction consisting of sixty (60) minutes, of which fifty (50) minutes must be direct instruction, over a fifteen-week period in a semester system.

(27) Service Area--The territory served by a community college district as defined in Texas Education Code, §130.161.

(28) Study-in-America Courses--Off-campus, academic credit instruction which is delivered outside Texas but in the United States primarily to regular on-campus students.

(29) Study-Abroad Courses--Off-campus, academic credit instruction which is delivered outside the United States primarily to regular on-campus students.

(30) Workforce Continuing Education Course--A course of ten contact hours of participation in an organized continuing education experience under responsible sponsorship, capable direction, and qualified instruction, as outlined in the Guidelines for Instructional Programs in Workforce Education with an occupationally specific objective and supported by state appropriations. Workforce continuing education courses are offered by community and technical colleges and differ from a community service course which is not eligible for state reimbursement and is offered for recreational or avocational purposes.

§4.273.General Provisions.

(a) This subchapter governs the following types of instruction offered by institutions of higher education:

(1) Academic credit courses, degree and certificate programs, and formula-funded workforce continuing education provided by a community college outside the boundaries of its service area through off-campus instruction;

(2) Academic credit courses, and degree and certificate programs provided by a public technical college, Lamar State College, public senior college or university, or public health-related institution through off-campus instruction;

(3) Formula-funded workforce continuing education provided by a public technical college or Lamar State College through off-campus instruction;

(4) Academic credit courses and programs offered by any public institution of higher education outside of Texas, including Study-Abroad, Study-in-America, out-of-state, and out-of-country courses; and

(5) Self-supporting courses and programs that are offered through off-campus instruction.

(b) This subchapter does not apply to the following types of instruction:

(1) Non-credit adult and continuing education courses provided through off-campus delivery or as on-campus self-supporting courses or programs by a senior college or university or health-related institution.

(2) Continuing education, except formula-funded workforce continuing education, provided by public two-year colleges.

§4.274.Standards and Criteria for Institutions.

The following provisions apply to all institutions covered under this subchapter, unless otherwise specified:

(1) Institutions shall comply with the standards and criteria of the Commission on Colleges of the Southern Association of Colleges and Schools.

(2) The Commissioner shall establish procedures governing the quality, review, and approval of off-campus and self-supporting programs and courses. The Commissioner may also require institutions to provide reports on off-campus, out-of-state/country, and self-supporting programs and courses.

(3) For off-campus programs and self-supporting programs, the parent institution shall notify all potentially affected area institutions in accordance with Board policy and procedures.

(4) The Commissioner shall develop procedures and standards for offering out-of-state/country programs and courses and for Study-in-America and Study-Abroad offerings.

(5) Institutions shall report enrollments, courses and graduates associated with self-supporting offerings as required by the Commissioner.

(6) Institutions shall report fees received for self-supporting and out-of-state/country courses in accordance with general institutional accounting practices.

(7) Students shall be provided academic support services appropriate for off-campus instruction such as academic advising, career counseling, library, and other learning resources.

(8) Off-campus instruction sites shall be of sufficient quality for the delivery methods and courses offered.

§4.275.Standards and Criteria for Off-Campus and Self-Supporting Programs.

The following provisions apply to all programs covered under this subchapter, unless otherwise specified:

(1) Each program shall be within the role and mission of the institution responsible for offering the instruction and shall be on its inventory of approved programs.

(2) Prior Board approval may be required before an institution may offer programs in certain subject area disciplines or under other conditions specified by the Board or Commissioner.

(3) An institution shall not offer doctoral or first-professional degree programs off-campus or as a self-supporting program without specific prior approval by the Board. The Commissioner may approve for delivery by other modes doctoral and special professional degree programs that have previously been approved by the Board for delivery through off-campus instruction or as a self-supporting program.

(4) An institution offering an off-campus degree or certificate program shall comply with the standards and criteria of any specialized accrediting agency or professional certification board.

(5) Each degree program offered off-campus shall be approved by an institution's governing board or the governing board's institutional designee. Certification of approval shall be submitted to the Board upon request.

(6) Institutions shall require that students (except for students in out-of-country programs) enrolled in an off-campus or self-supporting degree program satisfy the same requirements for admission to the institution and the program as required of regular on-campus students. Students in degree programs to be offered collaboratively shall meet the admission standards of their home institution. Out-of-country students shall meet equivalent standards for admission into programs.

§4.276.Standards and Criteria for Off-Campus and Self-Supporting Courses.

The following provisions apply to all courses covered under this subchapter, unless otherwise specified:

(1) Each course shall be within the role and mission of the institution responsible for offering the instruction and shall be on its inventory of approved courses.

(2) Prior Board approval may be required before an institution may offer courses in certain subject area disciplines or under other conditions specified by the Board or Commissioner.

(3) Study-in-America and Study-Abroad courses offered by institutions of higher education, or by an approved consortium composed of Texas public institutions, must be reported to the Board in the manner prescribed by the Commissioner in order for the semester credit hours or contact hours generated in those courses to receive formula funding.

(4) All courses shall meet the quality standards applicable to on-campus courses.

(5) Institutions shall report to the Coordinating Board and notify all potentially affected area institutions all off-campus courses and programs in accordance with Coordinating Board policy and procedures.

(6) Except for students in out-of-country courses, students shall satisfy the same requirements for enrollment in an academic credit course as required of on-campus students. Out-of-country students shall be assessed for academic guidance purposes.

(7) The instructor of record shall bear responsibility for the delivery of instruction and for evaluation of student progress.

§4.277.Standards and Criteria for Off-Campus and Self-Supporting Courses Faculty.

The following provisions apply to faculty teaching in programs covered under this subchapter, unless otherwise specified:

(1) Faculty shall be selected and evaluated by equivalent standards, review, and approval procedures used by the institution to select and evaluate faculty responsible for on-campus courses.

(2) Institutions shall provide training and support to enhance the added skills required of faculty teaching off-campus or self-supporting courses.

(3) The supervision, monitoring, and evaluation processes for faculty shall be equivalent to those for on-campus courses.

§4.278.Functions of Regional Councils.

(a) A public community college may enter into an agreement to offer only a dual credit course with a high school located in the service area of another public community college only if the other public community college is unable to provide the requested course to the satisfaction of the school district and the school district has explicitly invited the institution to do so.

(b) Universities, health-related institutions, public technical colleges, and Lamar state colleges shall submit for Regional Council review all off-campus lower-division courses proposed for delivery to sites in the Council's Service Region.

(c) Public community colleges shall submit for the appropriate Regional Council's review all off-campus lower-division courses proposed for delivery to sites outside their service areas.

(d) A public community college proposing to offer a dual credit course at a high school outside of the college's service area shall notify the Regional Council in whose service area the high school is located. It must provide a letter from the school district stating that the local community college is not offering the proposed dual credit course to the satisfaction of the school district and that the school district has invited the other community college to offer the course.

(e) With the exception of subsection (a) of this section, for any dispute arising from off-campus delivery of lower-division courses to groups, any institution party to the disagreement may appeal first to the Regional Council, and then to the Commissioner and then the Board.

(f) With the exception of subsection (a) of this section, Regional Councils in each of the ten Uniform State Service Regions shall make recommendations to the Commissioner and shall resolve disputes regarding plans for lower-division courses and programs proposed by public institutions.

(g) Each Regional Council shall make recommendations to the Commissioner regarding off-campus courses and programs proposed for delivery within its Uniform State Service Region in accordance with the consensus views of Council members, except for courses and programs proposed to be offered by public community colleges in their designated service areas and courses and programs governed by the provisions of subsection (a) of this section.

(h) Regional Councils shall advise the Commissioner on appropriate policies and procedures for effective state-level administration of off-campus lower-division instruction.

§4.279.Formula Funding General Provisions.

(a) Institutions shall report off-campus courses submitted for formula funding in accordance with the Board's uniform reporting system and the provisions of this subchapter.

(b) Institutions shall not submit for formula funding courses in out-of-state or out-of-country programs.

(d) Institutions shall not submit non-state funded lower-division credit courses to Regional Councils.

(e) Institutions shall not jeopardize or diminish the status of formula-funded on-campus courses and programs in order to offer self-supporting courses. Self-supporting courses shall not be a substitute for offering a sufficient number of formula-funded on-campus courses.

(f) For courses not submitted for formula funding, institutions shall charge fees that are equal to or greater than Texas resident tuition and applicable fees, and that are sufficient to cover the total cost of instruction and overhead, including administrative costs, benefits, computers and equipment, and other related costs. Institutions shall report fees received for self-supporting and out-of-state/country courses in accordance with general institutional accounting practices.

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 July 24, 2009.

TRD-200903085

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

CHAPTER 5. RULES APPLYING TO PUBLIC UNIVERSITIES, HEALTH-RELATED INSTITUTIONS, AND/OR SELECTED PUBLIC COLLEGES OF HIGHER EDUCATION IN TEXAS

SUBCHAPTER C. APPROVAL OF NEW ACADEMIC PROGRAMS AND ADMINISTRATIVE CHANGES AT PUBLIC UNIVERSITIES, HEALTH-RELATED INSTITUTIONS, AND/OR SELECTED PUBLIC COLLEGES

19 TAC §5.48

The Texas Higher Education Coordinating Board proposes an amendment to §5.48, concerning Approval of New Academic Programs and Administrative Changes at Public Universities, Health-Related Institutions, and/or Selected Public Colleges. This amendment clarifies terminology used in the section regarding lower-division career/technical and workforce education certificate programs. The amendment changes the term "workforce" to the more current "career technical/workforce," which is the terminology used in the proposed amendments to Chapter 9, Program Development in Public Two-Year Colleges.

Dr. MacGregor M. Stephenson, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the section is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rule.

Dr. Stephenson has also determined that for each year of the first five years the section is in effect, the proposed change would benefit students by providing them with a pre-degree-completion credential demonstrating a certain level of academic attainment, and to institutions by providing a success measure.

There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

The amendment is proposed under the Texas Education Code, Chapter 61.

The amendment affects implementation of Texas Education Code, Chapter 61.051(g).

§5.48.Criteria for Certificate Programs at Universities and Health-Related Institutions.

(a) - (e) (No change.)

(f) Lower-division certificate programs.

(1) One and two-year, post-secondary career technical/workforce education programs should be delivered primarily by community, state, and technical colleges. These institutions are uniquely suited by virtue of their specialized mission, local governance, and student support services to provide such opportunities in an efficient and economical manner. For that reason, new lower-division career technical/workforce certificate [~~certification~~] programs shall not generally be approved at public universities and health-related institutions.

(2) (No change.)

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 July 24, 2009.

TRD-200903086

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER G. STRATEGIC PLANNING AND GRANT PROGRAMS RELATED TO EMERGING RESEARCH AND/OR RESEARCH UNIVERSITIES

19 TAC §§5.120 - 5.122

The Texas Higher Education Coordinating Board proposes new §§5.120 - 5.122, concerning Strategic Planning and Grant Programs Related to Emerging Research and/or Research Universities. The purpose of these new sections is to require each institution of higher education designated as a research university or emerging research university as designated in the Coordinating Board's accountability system to have a long-term strategic plan for achieving recognition as a research university as required by House Bill 51, 81st Texas Legislature.

There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

The new sections are proposed under the Texas Education Code, Chapter 51, §51.358.

The new sections affect implementation of Texas Education Code, Chapter 51, §51.358.

§5.120.Purpose and Authority.

(a) The purpose of this subchapter is to require each institution of higher education designated as a research university or emerging research university as designated in the Board's accountability system to have a long-term strategic plan for achieving recognition as a research university or enhancing the institution's reputation as a research university.

(b) This rule is adopted under the authority of Texas Education Code §51.358.

§5.121.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner of Higher Education or Commissioner--The Commissioner of Higher Education; as used in this subchapter, "Commissioner" means the agency acting through its executive, and his or her designees, staff, or agents.

(3) Strategic Plan--A document to be prepared by the institution which provides a detailed, long-term plan to show how the institution will achieve or enhance its recognition as a research university. The form, length, manner, standards, and minimum required content for the report will be prescribed by the Board.

(4) Research University--A public institution of higher education designated as a research university under the Board's accountability system.

(5) Emerging Research Universities--A public institution of higher education designated as an emerging research university under the Board's accountability system.

(6) Governing board--The Board of Regents of a research or emerging research university.

(7) Statutory four-year review--The periodic review of the role and mission statements, the table of programs, and all degree and certificate programs offered by the public institutions of higher education, as described in the Texas Education Code §61.051(e).

§5.122.Submission of a Strategic Plan for Achieving Recognition as a Research University.

The governing board of each research or emerging research university shall submit the strategic plan to the Coordinating Board by April 1, 2010, and subsequent updated reports will be included as part of each institution's statutory four-year review.

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 July 24, 2009.

TRD-200903087

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER H. UNIVERSITY FUNDING FOR EXCELLENCE IN SPECIFIC PROGRAMS AND FIELDS INCENTIVE GRANTS AND AWARDS

19 TAC §§5.130 - 5.134

The Texas Higher Education Coordinating Board proposes new §§5.130 - 5.134, concerning the University Funding for Excellence in Specific Programs and Fields, Incentive Benchmark Grants, and the University Funding for Excellence in Specific Programs and Fields Incentive Awards. The purpose of these new sections is to lay out the rules governing application to and awards from the University Funding for Excellence in Specific Programs and Fields, Incentive Benchmark Grants, and the University Funding for Excellence in Specific Programs and Fields Incentive Awards as required by Senate Bill 175, 81st Legislature.

Dr. MacGregor M. Stephenson, 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 be fiscal implications to state or local government as a result of administering the rules; however, the costs cannot be determined at this time.

Dr. Stephenson has also determined that for each year of the first five years the new sections are in effect, the benefit anticipated as a result of administering the section will be increased funding to institutions as an incentive for elevating programs to national recognition as well as increased funding to institutions as an award for possessing programs that are already nationally recognized.

There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

The new sections are proposed under the Texas Education Code, Chapter 61, §61.0596(a).

The new sections affect implementation of Texas Education Code, Chapter 61, §61.0596(a).

§5.130.Purpose.

This subchapter provides guidance to all general academic teaching institutions, other than public state colleges, that are not research universities or emerging research universities according to the institutional groupings under the Board's higher education accountability system regarding application for the University Funding for Excellence in Specific Programs and Fields Incentive Grants and Awards Program.

§5.131.Authority.

Authority for these provisions is provided by Texas Education Code, §61.0596(a), which provides the Board with the authority to administer this program.

§5.132.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Benchmark(s)--Point(s) of reference that designate movement towards the achievement of national recognition developed for each designated program by an external, out-of-state consultant and approved by the Board.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Commissioner of Higher Education or Commissioner--The Agency acting through its executive, and his other designees, staff, or agents.

(4) Designated program or designated degree program--The degree program designated by an institution and approved by the Board for consideration of benchmark awards under the grant program described in this subchapter.

(5) Emerging research university--A public institution of higher education designated as an emerging research university under the Board's accountability system.

(6) Endowed faculty position--A person who is employed full-time by an institution of higher education as a member of the faculty whose primary duties include teaching, research, academic service, or administration and holds a professorship paid for with the revenue from an endowment fund specifically set up for that purpose. The term does not include a person holding faculty rank who spends a majority of the person's time for the institution engaged in managerial or supervisory activities, including a chancellor, vice chancellor, president, vice president, provost, associate or assistant provost, or dean.

(7) Field(s) of study--A set of courses that leads to a baccalaureate, master's or doctoral degree. Within the context of this subchapter, field(s) of study is synonymous with degree program(s).

(8) General academic teaching institution--A public institution of higher education as designated by Texas Education Code, §61.003(3).

(9) Highest national ranking or recognition--A program that is determined to be of national excellence based upon review by out-of-state consultants with relevant expertise in the field.

(10) Medical and/or dental unit--A public institution of higher education as designated by Texas Education Code §61.003(5).

(11) Programs--Designated program or designated degree program as defined in this section.

(12) Public state college--A public institution of higher education as designated by Texas Education Code §61.003(16).

(13) Research university--A public institution of higher education designated as a research university under the Board's accountability system.

§5.133.University Funding for Excellence in Specific Programs and Fields Incentive Benchmark Grants.

(a) General Information. The program, as it applies to this section:

(1) Eligible institutions--Public institutions of higher education that are general academic teaching institutions, other than public state colleges, that are not research universities or emerging research universities.

(2) Application requirements--Eligible institutions shall submit one (1) program to the Coordinating Board for consideration. Applications shall be submitted to the Board in the format and at the time specified by the Commissioner. The Board shall approve programs based, in part, upon its determination that institutions have demonstrated the greatest commitment to success in developing or improving, consistent with the mission of the institution, the quality of an existing degree program.

(3) General Selection Criteria. The Program is designed to award grants each time a degree program reaches a benchmark developed, approved, and published by the Board. Benchmarks will be developed by one or more persons who have relevant expertise and do not reside in this state.

(b) Review Criteria.

(1) The Board shall establish a set of benchmarks applicable to each degree program designated by an institution under this grant program.

(2) The Commissioner shall select one or more qualified individuals to serve as benchmark developers. Benchmark developers must have relevant expertise and reside outside of the state of Texas.

(3) The Board shall approve three benchmarks for each designated degree program unless it determines that a different number of benchmarks is appropriate.

(4) The Board shall also approve the associated funding levels for each type of degree program designated by an institution for this grant program.

(1) The Commissioner may solicit recommendations from eligible institutions each year for the designation of an eligible program. An institution may change its designated program only with the approval of the Board.

(2) Each institution with designated benchmarks for a program is responsible for providing to the Commissioner the necessary data or documentation to support attainment of each benchmark in the manner prescribed by the Commissioner.

(3) Board staff shall review the provided data or supporting documentation to determine whether or not the institution has met applicable benchmark(s) and is eligible for funding.

(d) Funding Decisions.

(1) The Board shall approve grants upon the recommendation of the staff's assessment of programs meeting applicable benchmarks. The Commissioner shall report approved grants to the Board for each annual grant period.

(2) Institutions may use awards under this grant program only for faculty recruitment or other faculty support with respect to the designated degree program for which the grant is awarded, including establishment of endowed faculty positions or enhancement of faculty compensation as considered appropriate by the institution.

(3) Institutions participating in this grant program shall reimburse the Board for the costs incurred by the Board in the administration of this program. The Commissioner shall outline the process and deadline for institutional reimbursement(s) to the Board.

§5.134.University Funding in Excellence for Specific Program and Fields Incentive Awards.

(a) General Information. The program, as it applies to this section:

(3) General Selection Criteria. The Program is designed to distribute a one-time award for programs that have achieved the highest national ranking or recognition for that type of program. Standards for determining highest national ranking or recognition shall be developed and approved by the Board utilizing the services of out-of-state consultants with relevant expertise.

(b) Review Criteria.

(1) The Board shall establish a set of criteria for determining highest national ranking or recognition for programs based upon the recommendations of out-of-state consultants with relevant expertise.

(2) The Board shall also approve the associated funding levels for each type of degree program designated by an institution for this award program.

(1) The Commissioner may solicit recommendations from eligible institutions each year for which there is funding for the designation of an eligible program.

(2) Board staff shall use peer and Board staff reviewers to evaluate the quality of applications.

(3) The Commissioner shall select qualified individuals to serve as reviewers. Reviewers shall demonstrate appropriate credentials to evaluate award applications in the nominated program(s). Reviewers shall not evaluate any applications for which they have a conflict of interest.

(4) The Board staff shall provide written instructions and training for reviewers.

(d) Funding Decisions. The Board shall approve one-time awards based upon the recommendation of the staff's and reviewers' assessment of programs meeting applicable standards. The Commissioner shall report approved awards to the Board for each annual award period.

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 July 24, 2009.

TRD-200903088

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

CHAPTER 7. DEGREE GRANTING COLLEGES AND UNIVERSITIES OTHER THAN TEXAS PUBLIC INSTITUTIONS

SUBCHAPTER A. GENERAL PROVISIONS

19 TAC §§7.1 - 7.17

(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, Texas.)

The Texas Higher Education Coordinating Board proposes the repeal of §§7.1 - 7.17, concerning Degree Granting Colleges and Universities Other than Texas Public Institutions. The Texas Higher Education Coordinating Board proposes the repeal of these sections which is more clearly organized and provides more explicit information to institutions seeking to operate in Texas while keeping the current functional processes intact. The intent of the re-write is to provide greater transparency of the rules regarding the operation of out-of-state public institutions of higher education or private institutions of higher education in Texas, while leaving the manner in which these institutions are overseen unchanged. To that end, the re-write has incorporated sections of the previous version of Chapter 7 into revised sections of the new version.

Dr. MacGregor M. Stephenson, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the repeal is effect, there will be no fiscal implications for state or local government as a result of the rules.

Dr. Stephenson has also determined that for each year of the first five years the repeal is in effect, the public benefit will provide greater transparency in the operation and oversight of private institutions of higher education while maintaining the necessary oversight and review of these institutions. There will be no anticipated effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There will be no impact on local employment.

Comments on the proposed repeal may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas, 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeal is proposed under the provisions of Texas Education Code, Chapter 61, Subchapters G and H, which describes the Board's role in Regulation of Private Postsecondary Educational Institutions and Out of State Public Institutions, as well as Chapter 132 which provides the Coordinating Board's Role in the regulation of Career Schools and Colleges.

The repeal affects Texas Education Code, Chapter 61, Subchapters G and H, and Chapter 132.

§7.1.Purpose.

§7.2.Authority.

§7.3.Definitions.

§7.4.Obtaining a Certificate of Authorization or a Certificate of Authority to Operate in Texas.

§7.5.Standards for Operation of Institutions.

§7.6.Recognition of Accrediting Agencies.

§7.7.Certificate of Authority.

§7.8.Alternative Certificate of Authority.

§7.9.Certificate of Authority for Career Schools and Colleges.

§7.10.Operation of Branch Campuses, Extension Centers or other Off-Campus Units, Occasional Courses and Changes in Level.

§7.11.Registration of Agents.

§7.12.Changes of Ownership and Other Substantive Changes.

§7.13.Revocation of Certificates of Nonexempt Institutions and Agents.

§7.14.Review and Use of Degrees from Institutions Not Eligible for Certificates of Authority.

§7.15.Data Reporting.

§7.16.Use of Fictitious, Fraudulent, or Substandard Degrees.

§7.17.Prohibitions, Administrative Penalties, and Injunctions.

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 July 24, 2009.

TRD-200903162

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

19 TAC §§7.1 - 7.13

The Texas Higher Education Coordinating Board proposes new §§7.1 - 7.13, concerning Degree Granting Colleges and Universities Other than Texas Public Institutions. The Texas Higher Education Coordinating Board proposes these new sections which is more clearly organized and provides more explicit information to institutions seeking to operate in Texas while keeping the current functional processes intact. The intent of the re-write is to provide greater transparency of the rules regarding the operation of out-of-state public institutions of higher education or private institutions of higher education in Texas, while leaving the manner in which these institutions are overseen unchanged. To that end, the re-write has incorporated sections of the previous version of Chapter 7 into revised sections of the new version.

Dr. MacGregor M. Stephenson, 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 be no fiscal implications for state or local government as a result of enforcing or administering the rules.

Dr. Stephenson has also determined that for each year of the first five years the new sections are in effect the public benefit will provide greater transparency in the operation and oversight of private institutions of higher education while maintaining the necessary oversight and review of these institutions. There will be no anticipated effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There will be no impact on local employment.

Comments on the proposed new sections may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas, 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under the provisions of Texas Education Code, Chapter 61, Subchapters G and H, which describes the Board's role in Regulation of Private Postsecondary Educational Institutions and Out of State Public Institutions, as well as Chapter 132 which provides the Coordinating Board's Role in the regulation of Career Schools and Colleges.

The new sections affect Texas Education Code, Chapter 61, Subchapters G and H, and 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 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 subchapter, 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 an 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 post-secondary educational institution 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) 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 or §7.4 of this chapter (relating to Standards for Operations of Institutions), 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.

(11) 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.

(12) 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.

(13) Certificate of Authorization--The Board's acknowledgment that an institution is qualified for an exemption from the regulations herein.

(14) Certification Advisory Council--

(A) Council to advise the Board on standards and procedures related to certification of private, nonexempt postsecondary educational institutions, and 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.

(B) 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.

(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 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 §7.6 of this chapter (relating to Recognition of Accrediting Agencies) or a career school or college that applies for and is declared exempt under this chapter, 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 subchapter;

(B) not eligible to receive a certificate of authority under this subchapter 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 §7.12 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 subchapter and was operating outside the United States, and whose degree the Board, through the review process described by §7.12 of this chapter, determines is not the equivalent of an accredited or authorized degree.

(25) Occasional Courses--Courses offered not more than twice at any given location in the state.

(26) 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.

(27) Person--Any individual, firm, partnership, association, corporation, enterprise, or other private entity or any combination thereof.

(28) Postsecondary Educational Institution--An educational institution which:

(A) is not a public community college, public technical college, public senior college or university, medical or dental unit or other agency as defined in Texas Education Code, §61.003;

(B) is incorporated under the laws of this state, or maintains a place of business in this state, or has an agent or representative present in this state, or solicits business in this state; and

(C) 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.

(29) Private Postsecondary Educational Institution--An institution which:

(A) is not an institution of higher education as defined by Texas Education Code, §61.003;

(B) is incorporated under the laws of this state, maintains a place of business in this state, has a representative presence in this state, or solicits business in this state; and

(C) furnishes or offers to furnish courses of instruction in person, by electronic media, or by correspondence leading to a degree or providing credits alleged to be applied to a degree.

(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 terms "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 subchapter. 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.

(35) Substantive Change--Any change in principal location, ownership, or governance.

§7.4.Standards for Operation of Institutions.

All institutions that operate within the State of Texas are expected to meet the following standards. These standards will be enforced through the certificate of authority process or the alternative certificate of authority process. Standards addressing the same principles 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 institutional and specialized accrediting bodies and the academic and professional organizations.

(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 governing board administrators, supervisors, counselors, agents, and other institutional officers shall 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) Governance. The institution shall have a system of governance that facilitates the accomplishment of the institution's mission and purposes, supports institutional effectiveness and integrity, and protects the interests of its constituents, including students, faculty and staff. If the institution has a governing board consisting of at least three (3) members, and that board focuses on the accomplishment of the institution's mission and purposes, supports institutional effectiveness and integrity, and protects the interests of its constituents, this standard will be considered as met. In the absence of such a governing board, the burden to establish appropriate safeguards within its system of governance and to demonstrate their effectiveness falls upon the institution.

(4) Distinction of Roles. The institution shall define the powers, duties and responsibilities of the governing body and the executive officers. There shall be a clear distinction in the roles and personnel of the chief business officer and the chief academic officer.

(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.

(C) For applied associate degree programs relating to occupations where state or national licensure is required, graduates must pass the licensing examination at a rate acceptable to the related licensing agency.

(9) Administrative Resources. The institution has the administrative capacity to meet the daily needs of the administration, faculty and students, including facilities, laboratories, equipment, technology and learning resources that support the institution's mission and programs.

(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 an applied 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 or 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 an applied 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 in subparagraphs (A) - (D) of this paragraph. 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 must consist of at least sixty (60) semester credit hours and not more than sixty-six (66) semester credit hours or ninety (90) quarter credit hours and not more than ninety-nine (99) quarter credit hours. Applied associate degrees must consist of at least sixty (60) semester credit hours and not more than seventy-two (72) semester credit hours or ninety (90) quarter credit hours and not more than one hundred eight (108) quarter hours. A baccalaureate degree must consist of at least one hundred twenty (120) semester credit hours or one hundred eighty (180) quarter credit hours. A master's degree must consist of at least thirty (30) semester credit hours and not more than thirty-six (36) semester credit hours or forty-five (45) quarter credit hours and not more than 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 institution's 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, educational material and 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. Applied associate 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 separate 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. Institutions relying on electronic catalogs must ensure the availability of archived editions in order to serve the needs of alumni and returning students. 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.

(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 location 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 the institution's obligation, if any, to enforce with 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) 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.

§7.5.Administrative Penalties and Injunctions.

(a) A person or institution may not:

(1) Granting of Degrees--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) Transferability of Credit--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 Institutions Accredited by Board Recognized Accreditors) 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) Honorary Degrees--Award or offer to award an honorary degree on behalf of a private postsecondary institution subject to the provisions of the subchapter, 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) Protected Terms--Use a protected term in the official name or title of a nonexempt private postsecondary institution, an educational or training establishment, 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) Agent--Act as an agent who solicits students for enrollment in a private postsecondary institution subject to the provisions of the subchapter without a certificate of registration, if required by this chapter;

(6) Fraudulent Degree--Use or claim to hold a degree that the person knows is a fraudulent, substandard, frivolous 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.

(C) The use of fictitious, fraudulent, or substandard degrees--The Board shall provide the following information through the Board's Internet website:

(i) the accreditation status or the status regarding authorization or approval under this subchapter, 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 - 7.11 of this chapter or for which a determination is made under §7.12 of this chapter (relating to Review and Use of Degrees from Institutions Not Eligible for Certificates of Authority), and any institution offering fraudulent, substandard, or fictitious degrees, including:

(I) the name of each educational institution accredited, authorized, or approved to offer or grant degrees in this state;

(II) the name of each educational institution whose degrees the Board has determined may not be legally used in this state;

(III) the name of each educational institution that the Board has determined to be operating in this state in violation of this chapter; and

(IV) any other information considered by the Commissioner to be useful to protect the public from fraudulent, substandard, or fictitious degrees.

(ii) 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.

(D) 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.

(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) Offenses--A violation of this subsection may constitute a violation of the Texas Penal Code, §32.52, or Texas Education Code, §61.312 and §61.313. An offense under subsection (a)(1) - (5) of this section may be a Class A misdemeanor and an offense under subsection (a)(6) of this section may be a Class B misdemeanor.

(d) Transfer of Records--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) Record Protection--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) Maintenance of Records--The Board shall maintain or cause to be maintained a permanent file of such records coming into its possession.

(g) Administrative Penalties--If a person or institution violates a provision of this subchapter, the Commissioner may assess an administrative penalty against the person or institution as provided in this section.

(h) Notice of Violation--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) Appeal of Assessment--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) Collection of Assessment--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) Specific Administrative Penalty--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 subchapter; or

(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) Other Administrative Penalties--Any person or institution that violates subsection (a)(4) of this section shall be assessed an administrative penalty of not less than $1,000 or more than $3,000.

(m) Specific Administrative Penalties for Agents--Any agent who solicits students for enrollment in an institution subject to the provisions of the subchapter 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) Termination of Operation--Any operations which are found to be in violation of the law shall be terminated.

(o) Report to Attorney General--The Commissioner may report possible violations of this subchapter to the attorney general. The attorney general, after investigation and consultation with the Board, shall bring suit to enjoin further violations.

(p) Venue--An action for an injunction under this section shall be brought in a district court in Travis County.

(q) Civil Penalties--A person who violates this subchapter or a rule adopted under this subchapter 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) Civil Litigation--The attorney general, at the request of the Board, shall bring a civil action to collect a civil penalty under this section.

(s) Deceptive Trade Practice Act--A person who violates this subchapter commits a false, misleading, or deceptive act or practice within the meaning of the Texas Business and Commerce Code, §17.46.

(t) Applicability of Other Law--A public or private right or remedy under the Texas Business and Commerce Code, Chapter 17, may be used to enforce this section.

(u) Associate of Occupational Studies (AOS) Degree--Texas has three career schools or colleges awarding the AOS degree: Universal Technical Institute, Southwest Institute of Technology, and Western Technical College. The AOS degree shall be awarded in only the following fields: automotive mechanics, diesel mechanics, refrigeration, electronics, and business. Each of the three Institutions may continue to award the AOS degree for those fields listed in this subsection and shall be restricted to those fields. The Board shall not consider new AOS degree programs from any other career schools or colleges. A career school or college authorized to grant the AOS degree shall not represent such degree by using the terms "associate" or "associate's" without including the words "occupational studies." An institution authorized to grant the AOS degree shall not represent such degree as being the equivalent of the AAS or AAA degrees.

§7.6.Recognition of Accrediting Agencies.

(a) Eligibility Criteria--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 clear description of the scope of recognized accreditation.

(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 §7.7 of this chapter (relating to Institutions Accredited by Board Recognized Accreditors).

(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 on-site 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 team when conducting initial and continuing accreditation visits, 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 may conduct site visits for reasons other than initial and continuing accreditation with fewer team members.

(iii) 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 address at a minimum the following issues: student achievement in relation to the institution's mission; curricula; faculty; facilities, equipment and supplies; fiscal and administrative capacity; student support services; recruiting and admissions practices, academic calendars, catalogs, grading, etc.; measures of program length and objectives of the degrees or credentials offered; record of student complaints received by, or available to the agency; management and financial control.

(ii) In the application process, the accrediting agency must indicate how its standards address each of the quality assessment categories outlined in clause (i) of this subparagraph which represent the underlying principles described in the institutional standards of §7.4 of this chapter (relating to Standards for Operation of Institutions). Comparison of its standards with those of previously recognized accrediting agencies and with the standards in §7.4 of this chapter is encouraged as a means of indicating how its standards meet those principles.

(iii) 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.

(iv) At least ten (10) working days before each scheduled 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.

(v) Within ten (10) working days of an official change in standards, the agency shall notify the Board of those changes.

(vi) 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.

(vii) Accrediting agencies that use an advisory body, similar to the Certification Advisory Council described in §7.8 of this chapter (relating to Institutions Not Accredited by a Board Recognized Accreditor), 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.

(viii) The initial and ongoing reviews shall include an institutional self-evaluation process or a documented alternative process to promote continuous quality improvement.

(ix) 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 ensure 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 of the 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 §7.7 of this chapter 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.Institutions Accredited by Board Recognized Accreditors.

An institution which does not meet the definition in Texas Education Code, §61.003, is accredited by a Board recognized accreditor, and is interested in offering degrees or courses leading to degrees in the State of Texas must follow the requirements in paragraphs (1) - (4) of this section.

(1) Authorization to Offer Degrees or Courses Leading to Degrees in Texas.

(A) Each institution and/or campus location must submit a letter of intent to offer degree(s) or courses leading to degrees in Texas containing the following information:

(i) Name of the institution;

(ii) Physical location of campus;

(iii) Name and contact information of the Chief Administrative Officer of the campus;

(iv) Name of accreditor;

(v) Level of degree and degrees authorized by CIP code;

(vi) Acknowledgement of substantive change notification and data reporting requirements contained in §7.11 of this chapter (relating to Changes of Ownership and Other Substantive Changes) and §7.13 of this chapter (relating to Data Reporting), respectively;

(vii) Texas Workforce Commission Certificate of Approval or a Texas Workforce Commission exemption from Texas Education Code, Chapter 132.

(B) Coordinating Board staff will verify information and accreditation status and upon confirmation, will provide a Certificate of Authorization to offer in Texas those degrees or courses leading to degrees for which it is accredited.

(2) Grounds for Revocation of Certificate of Authorization.

(A) Institution loses accreditation from Board recognized accreditor.

(B) Institution's Accreditor is removed from the U.S. Department of Education or the Coordinating Board's list of approved accreditors.

(D) Institution offers degrees for which it does not have accreditor approval.

(3) Process for Removal of Authorization.

(A) Commissioner notifies institution of grounds for revocation as outlined in paragraph (2) of this section.

(B) 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 or alternate certificate of authority to grant degrees, or has received a determination that it did not lose its qualification for a certificate of authorization.

(C) Within ten (10) days of its receipt of the Commissioner's notice, the institution must respond and offer proof of its continued qualification for the exemption, or submit data as required by §7.13 of this chapter.

(D) After reviewing the evidence, the Commissioner will issue a notice of determination, which in the case of an adverse determination, shall contain information regarding the reasons for the denial, and the institution's right to a hearing.

(E) If a determination under this section is adverse to an institution, it shall become final and binding unless, within forty-five (45) days of its receipt of the adverse determination, the institution invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).

(4) Closure of an Institution.

(A) The governing board, owner, or chief executive officer of an institution that plans to cease operation shall provide the Board with written notification of intent to close at least ninety (90) days prior to the planned closing date.

(B) If an institution closes unexpectedly, the governing board, owner, or chief executive officer of the school shall provide the Board with written notification immediately.

(C) If an institution closes or intends to close before all currently enrolled students have completed all requirements for graduation, the institution shall assure the continuity of students' education by entering into a teach-out agreement with another institution authorized by the Board to hold a Certificate of Authority, with an institution operating under a Certificate of Authorization, with a public two-year college, or with a public four-year university. The agreement shall be in writing, shall be subject to Board approval, shall contain provisions for student transfer, and shall specify the conditions for completion of degree requirements at the teach-out institution. The agreement shall also contain provisions for awarding degrees.

(D) The Certificate of Authorization for an institution is automatically withdrawn when the institution closes. The Commissioner may grant to an institution that has a degree-granting authority temporary approval to award a degree(s) in a program for which the institution does not have approval in order to facilitate a formal agreement as outlined under this section.

(E) The curriculum and delivery shall be appropriate to accommodate the remaining students.

(F) No new students shall be allowed to enter the transferred degree program unless the new entity seeks and receives permanent approval for the program(s) from the Board.

(G) The institution shall transfer all academic records pursuant to §7.5(d) of this chapter (relating to Administrative Penalties and Injunctions).

§7.8.Institutions Not Accredited by a Board Recognized Accreditor.

An institution which is not accredited by a board recognized accreditor and which does not meet the definition of institution of higher education contained in Texas Education Code, §61.003, must follow either the Certificate of Authority process or Alternative Certificate of Authority process in paragraphs (1) - (14) of this section in order to offer degrees or courses leading to degrees in the State of Texas. Institutions are encouraged to contact the Coordinating Board staff before filing a formal application.

(1) Certificate of Authority.

(A) Eligibility--The Board will accept applications for a certificate of authority only from those institutions:

(i) proposing to offer a degree or credit courses alleged to be applicable to a degree; and

(ii) which meet one of the following conditions:

(I) 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;

(II) 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

(III) 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; or

(IV) Held an alternative certificate of authority for one year.

(B) To be considered by the Board to be operating, 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:

(i) 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 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.

(2) Application for Certificate of Authority.

(A) Applications must be submitted with an original and four (4) copies and accompanied by the fee described in paragraph (9) of this section.

(B) The application form for the certificate of authority may be found on the Coordinating Board's website.

(D) Information regarding each degree or course leading to a degree which the institution proposes to offer.

(3) Authorization Process.

(A) An institution must submit an application to the Coordinating Board to be considered for a Certificate of Authority to offer specific degree(s), and courses which may be applicable toward a degree, in Texas.

(B) Each institution must have either a letter of exemption or Certificate of Approval from the Texas Workforce Commission pursuant to Texas Education Code, Chapter 132.

(C) An institution must submit detailed information describing the manner in which the institution complies with each of the Standards of Operations of Institutions contained in §7.4 of this chapter (relating to Standards for Operations of Institutions).

(D) Institutions accredited by entities which are not recognized by the board must submit all accrediting agency reports and any findings and institutional responses to such reports and findings.

(E) Each institution must provide the required fee set by the Commissioner on a biennial basis which is necessary to cover the costs of the application review, site review team, and travel, meals, lodging and consulting fees for the review.

(F) Based upon the information contained in the application, the Commissioner or his/her designee shall determine whether a site review team is necessary.

(G) If a site review team is required, the Commissioner or his/her designee shall identify a site review team of no less than three individuals, all of whom have experience and knowledge in postsecondary education.

(H) 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.

(I) The site review team shall conduct an onsite review of the institution and prepare a report regarding the institution's ability to meet the Standards of Operation.

(J) The institution shall have thirty (30) days in which to respond to the report.

(K) The Certification Advisory Council shall review the report and the institution's response and make a recommendation regarding disposition to the Commissioner.

(L) Upon receipt of the Council's recommendation, the Commissioner shall make his/her recommendation regarding the application to the Coordinating Board.

(M) After review of the Commissioner's and Council's recommendations, if the Coordinating Board approves the application, the Commissioner shall immediately have prepared a Certificate of Authority containing the issue date, a list of the approved degree(s) or courses leading to degrees, and the period for which the Certificate is valid.

(N) After review of the Commissioner's and Council's recommendations, if the Coordinating Board does not approve the application, the Commissioner shall immediately notify the institution of the denial and the reasons for the denial.

(O) Upon denial, the institution may not reapply for a period of one hundred eighty (180) days.

(4) Terms and Limitations of a Certificate of Authority.

(A) The certificate of authority to grant degrees is valid for a period of two (2) years from the date of issuance.

(B) 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 subparagraph (C) of this paragraph. 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.

(C) 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 board recognized accrediting agency.

(5) Institutions Holding a Certificate of Authority will be Required to:

(A) furnish a list of their agents to the Board;

(B) maintain records of students enrolled, credits awarded, and degrees awarded, in a manner specified by the Board; and

(6) Grounds for Revocation of Certificate of Authorization.

(A) Institution fails to comply with substantive change notification and data reporting requirements as outlined in §7.11 of this chapter (relating to Changes of Ownership and Other Substantive Changes) and §7.13 of this chapter (relating to Data Reporting), respectively.

(B) Institution offers degrees for which it does not have Board approval.

(D) Failure to comply with paragraph (3)(D) of this section.

(7) Revocation of Certificate of Authority to Offer Degrees in Texas.

(A) Board notifies institution of grounds for revocation as outlined in paragraph (6) of this section.

(B) 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, and/or submit data as required by §7.13 of this chapter.

(C) 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.

(D) 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) 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.

(8) Reapplication after Revocation of Certificate of Authority.

(A) The institution will not be eligible to reapply for a period of one hundred eighty (180) days.

(B) The subsequent application must show, in addition to all other requirements described herein, correction of the deficiencies which led to the denial.

(C) 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 paragraph (4)(C) of this section; the time period begins to run again upon reinstatement.

(9) Fees Related to Certificates of Authority.

(A) 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.

(B) Each biennium, the Commissioner shall also set the fees for amendments to certificates of authority and certificates of registration of agents.

(10) Renewal of Certificate of Authority.

(A) 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 paragraph (9) of this section.

(B) 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.

(D) Subject to the restrictions of paragraph (3) of this section, the Board shall renew the certificate if it finds that the institution has maintained all requisite standards.

(11) Amendments to a Certificate of Authority.

(A) 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.

(B) Applications for amendments shall be accompanied by the fee described in paragraph (9) of this section.

(C) Unless the Board finds that the new program of study does not meet the required standards, the Board shall amend the institution's certificate accordingly.

(D) A change of degree level would require an amended Certificate of Authority prior to beginning the program.

(12) 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:

(A) the other institution is named in such representation, and is accredited by a recognized accrediting agency or has a certificate of authority;

(B) the courses are identified for which credit is claimed to be applicable to the degree programs at the other institution; and

(C) 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.

(13) Closure of an Institution.

(B) If an institution closes unexpectedly, the governing board, owner, or chief executive officer of the school shall provide the Board with written notification immediately.

(C) If an institution closes or intends to close before all currently enrolled students have completed all requirements for graduation, the institution shall assure the continuity of students' education by entering into a teach-out agreement with another institution authorized by the Board to hold a Certificate of Authority, with an institution operating under a Certificate of Authorization, or with a public 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.

(i) The curriculum and delivery shall be appropriate to accommodate the remaining students.

(ii) 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.

(14) Alternative Certificate of Authority. In lieu of the standard certificate of authority requirements for institutions and their agents described in paragraphs (1) - (13) of this section, an institution may obtain an alternative certificate of authority to issue degrees as provided by this subsection. 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.

(A) Surety Instrument Requirement. 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 each shall file one bond or surety alternative covering the school and its agents.

(i) 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.

(ii) 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.

(iii) 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 twenty-five thousand dollars ($25,000).

(iv) 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.

(v) In order to be approved by the Board, a surety bond must be:

(I) An original bond;

(II) Executed by the applicant and by a surety company authorized to do business in Texas;

(III) In a form acceptable to the Board; and

(IV) 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.

(vi) 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.

(vii) 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:

(-a-) Payable to the Board;

(-b-) In the case of a negotiable certificate of deposit, is properly assigned without restriction to the Board; or

(-c-) In the case of a non-negotiable certificate of deposit, is assigned to the Board by assignment in a form satisfactory to the Board.

(viii) 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.

(ix) 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.

(x) 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.

(xi) 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.

(xii) 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.

(B) 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.

(C) 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 §7.4 of this chapter; 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 form shall contain:

(i) The name and address of the institution and its purpose;

(ii) The names of the sponsors or owners of the institution;

(iii) The regulations, rules, constitutions, bylaws, or other regulations established for the government and operation of the institution;

(iv) The names and addresses of the chief administrative officer, the principal administrators, and each member of the board of trustees or other governing board;

(v) The names of faculty who have been retained, their area(s) of teaching, and their degrees held;

(vi) The types of degrees to be awarded and a list of courses that may be included in each degree program; and

(vii) 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.

(D) Institutions shall certify that they maintain a list of their agents as defined in §7.3 of this chapter 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.

(E) 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 paragraph (9) of this section.

(F) Board's Review of Applications.

(i) 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.

(ii) Within one hundred twenty (120) days of receipt of a complete application, the Commissioner shall either award a one-year alternative certificate of authority or deny the application.

(iii) 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.

(G) Terms and Limitations of an Alternative Certificate of Authority.

(i) The alternative certificate of authority to grant degrees is valid for one (1) year from the date of issuance.

(ii) 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.

(iii) 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 paragraph (10)(C) of this section. 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.

(iv) Approval of the application grants the institution the authority to award degrees or to enroll students for courses that may be applicable toward a degree only for those programs approved by the Alternative Certificate of Authority. Separate program approval shall be required for each associate degree program in accordance with this chapter.

(v) 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;

(IV) The institution has offered degrees or courses leading to degrees for which they have not been approved in an Alternative Certificate of Authority; or

(V) The institution has violated any provision of this subchapter.

(H) Continuing Operations after One Year.

(i) 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 paragraph (10) of this section.

(ii) The application will be evaluated in the same manner as that prescribed for evaluation of an initial application.

§7.9.Religious Institutions Offering Degrees in Religious Disciplines.

The Texas Higher Education Coordinating Board does not regulate Religious Institutions of Higher Education which offer degrees only in religious disciplines.

(1) A religious institution which would like to offer a degree program or courses leading to a degree in a religious discipline may request a letter from the Coordinating Board indicating that no approval from the Coordinating Board is required.

(2) A religious institution which would like to offer a degree program or courses leading to degree in a non-religious discipline must follow the requirements in Coordinating Board Rules §7.7 of this chapter (relating to Institutions Accredited by Board Recognized Accreditors) or §7.8 of this chapter (relating to Institutions Not Accredited by a Board Recognized Accreditor).

§7.10.Registration of Agents.

(a) Application for Registration--An agent as defined in §7.3(4) of this chapter (relating to Definitions) shall submit an application to the Texas Higher Education Coordinating Board in the following manner:

(1) The application shall be accompanied by the fee described in §7.8(9) of this chapter (relating to Institutions Not Accredited by a Board Recognized Accreditor).

(2) Upon request of the Commissioner or the Commissioner's designee, the agent shall provide sufficient evidence of good character.

(3) The agent's certificate of registration shall be issued for a five-year period.

(4) 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.

(5) 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 §7.8(9) of this chapter.

(6) 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).

(b) Revocation of Registration--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; or

(4) The agent has violated any provision of this subchapter.

(c) Notice of Revocation--Notice under subsection (b) of this section shall be given to the agent and 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:

(1) divest the agent of the authority and of the apparent authority to represent the institution;

(2) notify the media through which the agent made the misrepresentations of the actual facts; and

(3) notify all students whose decision to enroll in the institution was affected by the agent's misrepresentation, of the actual facts.

(d) Administrative Remedies--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.

§7.11.Changes of Ownership and Other Substantive Changes.

(a) Change of Ownership or Control for Career Schools and Colleges. In the event of a change in ownership or control of a career school or college, the certificate of authority is automatically withdrawn unless the institution meets the requirements of this section.

(b) 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 in paragraphs (1) - (3) of this subsection and provided that the following conditions are met:

(1) The institution must submit acceptable evidence that the new owner is complying with all Texas Workforce Commission requirements regarding the purchase or transfer of ownership of a career school or college;

(2) The institution must submit an acceptable written statement of assurance that the new owner understands and undertakes to fully comply with all applicable Board rules, regulations, and/or policies; 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.

(c) If the institution does not meet the conditions outlined under this section prior to completion of transfer of ownership or control and the institution loses its certificate of authority, the new owner(s) shall submit a new application for a certificate of authority as outlined under §7.8 of this chapter (relating to Institutions Not Accredited by a Board Recognized Accreditor).

(d) 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 §7.8(11) of this chapter.

(e) If the ownership or control of a career school or college is transferred within, among, or between different subsidiaries, branches, divisions, or other components of a corporation and if said transfer in no way diminishes the career school or college's administrative capability or educational program quality, the Commissioner may permit the school to retain its certificate of authority during the transfer period. In such cases, the career school or college shall fully comply with all provisions outlined in this section.

§7.12.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 Administrative Penalties and Injunctions) 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.

§7.13.Data Reporting.

The institutions shall provide to the Board annually, in a form established by the Board, student records of the type specified in §7.4(19) of this chapter (relating to Standards for Operation of 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 July 24, 2009.

TRD-200903161

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

CHAPTER 9. PROGRAM DEVELOPMENT IN PUBLIC TWO-YEAR COLLEGES

SUBCHAPTER A. DEFINITIONS

19 TAC §9.1

The Texas Higher Education Coordinating Board proposes amendments to §9.1, concerning Definitions. These amendments would add definitions for the following terms pertaining to Coordinating Board approval of new academic and career technical/workforce associate degree and certificate programs: academic associate degree; applied associate degree; career technical/workforce program; and statewide articulated transfer curriculum.

Dr. MacGregor M. Stephenson, Assistant Commissioner for Academic Affairs and Research, has determined that there would be no fiscal implications for state or local government as a result of amending the rules listed above.

Dr. Stephenson has also determined that for each year of the first five years the section is in effect establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

Comments on the proposed amendment may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or via email at macgregor.stephenson@thexb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed amendment would affect Texas Education Code, Chapter 61, §61.051(e).

§9.1.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--An associate degree that will satisfy the lower-division requirements for a baccalaureate degree in a specific discipline.

(2) [~~(1)~~] Academic courses--Semester credit courses included or allowed under the provisions of the Lower-Division Academic Course Guide Manual designed for college transfer to institutions of higher education in completion of associate and baccalaureate degree programs.

(3) Applied associate degree--An associate degree intended to lead directly to employment following graduation and may satisfy the lower-division requirements for a baccalaureate degree in a specific discipline.

(4) [~~(2)~~] 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, associate of science, associate of applied arts, associate of applied science, and the associate of occupational studies degrees. The term "applied" in an associate degree name indicates a program designed to qualify students for immediate employment.

(5) Career Technical/Workforce program--An applied associate degree program or a certificate program for which semester credit hours, quarter credit hours, or continuing education units are awarded and which is intended to prepare students for immediate employment or a job upgrade in a specific occupation.

(6) [~~(3)~~] Board or Coordinating Board--The Texas Higher Education Coordinating Board.

(7) [~~(4)~~] Certificate program--Workforce programs designed for entry-level employment or for upgrading skills and knowledge within an occupation. Certificate programs serve as building blocks and exit points for AAS degree programs.

(8) [~~(5)~~] Commissioner of Higher Education or Commissioner--The chief executive officer of the Texas Higher Education Coordinating Board.

(9) [~~(6)~~] Concurrent course credit--See "Dual credit."

(10) [~~(7)~~] Continuing education unit or CEU--Ten (10) contact hours of participation in an organized continuing education experience under responsible sponsorship, capable direction, and qualified instruction, as outlined in the Guidelines for Instructional Programs in Workforce Education.

(11) [~~(8)~~] Contractual agreements--Agreements or contracts between public two-year colleges and one of the following:

(A) a non-SACS/COC-accredited organization, for postsecondary instructional services that could not be offered otherwise;

(B) a public secondary school, for instructional services that could not be offered otherwise; or

(12) [~~(9)~~] Contract instruction--Postsecondary workforce education and training in which specific instruction is provided by a public two-year college or a non-SACS/COC-accredited organization to a contracting entity. This arrangement is utilized when conventional methodology or instructional systems are difficult or impossible to obtain.

(13) [~~(10)~~] Developmental courses--Courses designed to correct academic deficiencies and bring students' skills to an appropriate level for entry into college.

(14) [~~(11)~~] Distance education--Classes in which the majority of the instruction occurs when the student and instructor are not in the same physical setting. A class is considered a distance education class if students receive more than one-half of the instruction at a distance. Distance education can be delivered synchronously or asynchronously to any single or multiple location(s):

(A) other than the "main campus of a senior institution (or "on campus"), where the primary office of the chief executive officer of the campus is located;

(B) outside the boundaries of the taxing authority of a community college district; or

(15) [~~(12)~~] Dual credit--A process by which a high school student enrolls in a college course and receives simultaneous academic credit for the course from both the college and the high school. While dual credit courses are often taught on the secondary school campus to high school students only, §4.84 of this title (relating to Institutional Agreements) and §4.85 of this title (relating to Dual Credit Requirements), also apply when a high school student takes a course on the college campus and receives both high school and college credit. Dual credit is also referred to as concurrent course credit; the terms are equivalent. However, dual (or concurrent) enrollment refers to a circumstance in which a student is enrolled in more than one educational institution (including a high school and a college).

[(13) Guidelines for Instructional Programs in Workforce Education (GIPWE)--A Coordinating Board approved publication containing policies and procedures related to the proposal and approval of workforce education courses and programs for Texas public institutions.]

(16) [~~(14)~~] Governing board--The body charged with policy direction of any public community college district, the technical college system, public state college, public senior college or university, career school or college, or other educational agency including but not limited to boards of directors, boards of regents, boards of trustees, and independent school district boards.

(17) [~~(15)~~] Governing board, Tech-Prep [ ~~Tech prep~~] consortium--Consists at a minimum of representatives of each educational entity that participates in a Tech-Prep consortium which determines the policies and operations of the Tech-Prep [~~Tech Prep~~] consortium in accordance with its written by-laws and fiscal agency and personnel agreements. A representative may represent multiple entities as agreed upon by the participating consortium members.

(18) [~~(16)~~] Guidelines for Instructional Programs in Workforce Education (GIPWE)--A Coordinating Board-approved publication containing policies and procedures related to the design, development, proposal, approval, operation, and evaluation of career technical/workforce education courses and programs for Texas public institutions of higher education and career schools and colleges.

(19) [~~(17)~~] Independent institution of higher education--A private or independent college or university that is:

(A) organized under the Texas Non-Profit Corporation Act;

(B) exempt from taxation under Article V, §2, of the Texas Constitution and §501(c)(3) of the Internal Revenue Code; and

(20) [~~(18)~~] Lower-Division Academic Course Guide Manual (ACGM)--A Coordinating Board-approved publication listing academic courses that public two-year colleges can teach and report for contact hour reimbursement from state appropriations without special approval from the Board.

(21) [~~(19)~~] Public community college--Any public junior college or public community college as defined in Texas Education Code, §61.003 and §130.005, and whose role, mission, and purpose is outlined in Texas Education Code, §130.0011 and §130.003.

(22) [~~(20)~~] Public two-year college--Any public junior college, public community college, public technical college, or public state college as defined in Texas Education Code, §61.003.

(23) [~~(21)~~] Related-instruction--Relates to §9.27 of this title (relating to Related-Instruction for Apprenticeship Programs), organized off-the-job classroom instruction in theoretical or technical subjects required for the completion of an apprenticeship program.

(24) [~~(22)~~] Remedial and compensatory--All courses designated as developmental or remedial in the Lower-Division Academic Course Guide Manual. These courses are designed to address academic deficiencies and may not be offered for college degree credit.

(25) [~~(23)~~] Remedial courses--Courses for high school students designed to correct academic deficiencies and bring students' skills to an appropriate level for graduation from high school.

(26) [~~(24)~~] SACS/COC--The Southern Association of Colleges and Schools Commission on Colleges.

(27) Statewide Articulated Transfer Curriculum--A set of courses, up to the level of an academic associate degree, that will satisfy the lower-division requirements of a baccalaureate degree in a specific discipline. A statewide articulated transfer curriculum must:

(A) have the same rigor and content as the equivalent course work in the baccalaureate program offered at a general academic teaching institution;

(B) minimize the time and course work required to complete a baccalaureate degree;

(C) be consistent with the common course numbering system approved by the Board and the recommendations and rules of the Board; and

(D) include only course work directly applicable to the requirements of the baccalaureate degree program(s) with which it is associated.

(28) [~~(25)~~] Technical courses or programs--Workforce education courses or programs for which semester/quarter credit hours are awarded.

(29) [~~(26)~~] Tech-Prep [ ~~Tech Prep~~] consortium--A collaboration of educational entities and, at local option, employer and labor organizations, and universities defined in [~~under~~] the Carl D. Perkins Career [~~Vocational~~] and Technical Education Improvement Act of 2006 , as amended, and the Texas Education Code, Chapter 61, Subchapter T, Tech-Prep [~~Tech Prep~~ ] Education [~~(hereinafter referred to as "the Code")~~ ], which work together to implement a Tech-Prep [ ~~Tech Prep~~] program.

(30) [~~(27)~~] Unique need academic course--An academic course created by a college to satisfy a unique need and designed to transfer into a baccalaureate program.

~~[(28) Vocational courses or programs--Workforce education courses or programs for which continuing education units (CEUs) are awarded.]~~

(31) [~~(29)~~] Workforce continuing education course--A course offered for continuing education units (CEUs) with an occupationally specific objective and supported by state funding. A career technical/workforce continuing education course differs from a community service course offered for recreational or avocational purposes and is not supported by state funding.

(32) [~~(30)~~] Workforce education-- Career technical/workforce [~~Technical~~] courses and programs for which semester/quarter credit hours and/or [ ~~are awarded, and vocational courses and programs for which~~] continuing education units are awarded. Career technical/workforce [ ~~Workforce~~] education courses and programs prepare students for immediate employment or job upgrade within specific occupational categories.

(33) [~~(31)~~] Workforce Education Course Manual (WECM)--An online database composed of the Coordinating Board's official statewide inventory of career techincal/workforce education courses available for two-year public colleges to use in certificate and associate degree programs.

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 July 24, 2009.

TRD-200903089

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER B. GENERAL PROVISIONS

19 TAC §9.27, §9.28

The Texas Higher Education Coordinating Board (Board) proposes amendments to §9.27 and §9.28 relating to General Provisions. These amendments align §9.27 with changes made by the U.S. Department of Labor in re-naming the Bureau of Apprenticeship and Training to the U.S. Department of Labor Employment and Training Administration. These amendments furthermore amend §9.28 to clarify language pertaining to eligibility of career technical/workforce education courses for biennial state legislative appropriations.

Dr. Stephenson has also determined that for each year of the first five years the sections are in effect establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new section as proposed. There is no impact on local employment.

Comments on the proposed rule amendments may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendments are proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed amendment would affect Texas Education Code, Chapter 61, §61.051(e).

§9.27.Related-Instruction for Apprenticeship Programs.

Related-instruction in apprenticeship programs approved by the U.S. Department of Labor Employment and Training Administration [ ~~Bureau of Apprenticeship and Training~~] are eligible for state appropriations. Funding for all other components of apprenticeship programs is subject to the rules and regulations of the Texas Workforce Commission as prescribed under the Texas Education Code, Chapter 133.

§9.28.Appropriations.

To be eligible to receive its proportionate share of the biennial appropriations for support, maintenance, operation, and improvement, each public community college must:

(1) (No change.)

(2) offer a minimum of 24 semester credit hours of career technical/workforce education courses;

(3) - (6) (No change.)

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 July 24, 2009.

TRD-200903090

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER C. PURPOSE, ROLE, AND MISSION

19 TAC §9.53

The Texas Higher Education Coordinating Board (Board) proposes amendments to §9.53 relating to Purpose, Role, and Mission. These amendments would replace antiquated terminology in §9.53(b) by deleting the term "vocational" and replacing it with "career technical/workforce" and update the section title.

Dr. Stephenson has also determined that for each year of the first five years the sections are in effect the establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the proposed amendment. There is no impact on local employment.

Comments on the proposed rule amendment may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed amendment would affect Texas Education Code, Chapter 61, §61.051(e).

§9.53.Role, Mission, and Purpose of Public Community/Junior and Technical [~~Two-Year~~] Colleges.

(a) (No change.)

(b) Each public community college shall include in its role and mission statement the purpose of the community college as prescribed under Texas Education Code, §130.003(e), that it shall primarily serve its local taxing district and service area, offering career [~~vocational~~], technical/workforce, and academic courses for certificates or associate degrees. Continuing education, remedial and compensatory education consistent with open admission policies, and a program of counseling and guidance shall also be provided.

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 July 24, 2009.

TRD-200903091

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

19 TAC §9.55

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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, Texas.)

The Texas Higher Education Coordinating Board proposes the repeal of §9.55, concerning Purpose, Role, and Mission. This repeal would delete this section in order to eliminate reference to the Board Review of purpose, role, and mission statements at public community colleges as a component of the institutional effectiveness evaluation review process.

Dr. Stephenson has also determined that for each year of the first five years the repeal of the section is in effect the establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the repeal as proposed. There is no impact on local employment.

Comments on the proposed repeal may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeal is proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed repeal would affect Texas Education Code, Chapter 61, §61.051(e).

§9.55.Board Review of Purpose, Role, and Mission Statements.

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 July 24, 2009.

TRD-200903092

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER E. CERTIFICATE AND ASSOCIATE DEGREE PROGRAMS

19 TAC §§9.92, 9.93, 9.95

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §§9.92, 9.93, and 9.95, concerning Certificate and Associate Degree Programs. These amendments would permit automatic Coordinating Board approval of new academic and career technical/workforce associate degree programs, as well as automatic approval of revisions of existing academic and career technical/workforce associate degree programs provided that certain conditions are met. The amendments furthermore add the words, "career technical" to the words "workforce program(s)" in order to align the relevant terminology in Subchapter E with language contained in the Carl D. Perkins Technical Education and Improvement Act of 2006.

Dr. Stephenson has also determined that for each year of the first five years the sections are in effect the establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new section as proposed. There is no impact on local employment.

The amendments are proposed under the provisions of Texas Education Code, Chapter 61, §61.051 which describes the Board's role in coordinating higher education in Texas.

The proposed amendments would affect Texas Education Code, Chapter 61, §61.051(e).

§9.92.Authority.

The Texas Education Code, §§61.003, 61.051(e)(f), 61.0513, 61.053, 61.054, 61.055, 61.061, 61.062(c) - (d), 61.075, 130.001(b)(3) - (4), 130.003(e)(1), (2), (3) and (7) and 135.04, authorize the Coordinating Board to adopt policies, enact regulations, and establish rules for the coordination of postsecondary career technical/workforce [~~and vocational~~ ] certificate and associate degree programs eligible for state appropriations.

§9.93.Presentation of Requests and Steps for Implementation of New Degree and Certificate [~~Application, Approval, and Revision Procedures for Instructional~~] Programs in Career Technical/ Workforce Education.

(a) Requests for new associate degree and certificate programs shall be made in accordance with the procedures stipulated in subsection (b)(1)(A) - (O) of this section. [In accordance with the Guidelines for Instructional Programs in Workforce Education as approved by the Board, each institution wishing to offer a new certificate or applied associate degree program must have completed the following procedures:]

(b) Approval of new associate degree and certificate programs is automatic if all of the following conditions are met.

[(1) Completion of the Application for the Approval of a New Technical or Continuing Education Program. Completed application forms and a statement of assurances must be approved by the governing board and the chief executive officer of the institution, and forwarded to the Board's Community and Technical Colleges Division. The statement of assurances must certify that the following criteria have been met:]

(1) The institution shall certify that:

(A) The program has institutional and governing board approval;

(B) The institution has researched and documented current job market need for the program and/or that the program would lead to opportunities for further education;

(D) Enrollment projections reflect student demand estimates to ensure the financial self-sufficiency of the program;

[~~(A) The institution has documented local and/or regional workforce demand for the program.~~]

(E) [~~(B)~~] Basic and career technical/workforce skills have been integrated into the curriculum;[.]

(F) [~~(C)~~] The institution has an enrollment management plan for the program;[.]

(G) [~~(D)~~] The institution has or will initiate a process to establish articulation agreements for the program with secondary and/or senior level institutions;[.]

(H) [~~(E)~~] The program is designed to be consistent with the standards of the Commission on Colleges of the Southern Association of Colleges and Schools, and with the standards of other applicable accrediting agencies, and is in compliance with appropriate licensing authority requirements;[.]

(I) [~~(F)~~] The program would not unnecessarily duplicate existing programs at other institutions;[.]

(J) [~~(G)~~] Representatives from private sector business and industry have been involved in the creation of the program through participation in an advisory committee;[.]

(K) [~~(H)~~] Adequate funding is available to cover all new costs to the institution over the first five years after the implementation of the program;[.]

(L) New costs during the first five years of the program would not exceed $2 million;

(M) [~~(I)~~] The institution has an improvement plan in place for all career technical/workforce programs that do not currently meet Board standards for both graduation and placement;[.]

(N) [~~(J)~~] The appropriate Higher Education Regional Council has been notified in writing of the proposal for a new program;[.]

(O) [~~(K)~~] Skill standards recognized by the Texas Skill Standards Board, if they exist for the [ ~~this~~] discipline, have been reviewed and considered for inclusion in the curriculum for the program.

(2) If a proposed two-year career technical/workforce education program or a certificate program meets the conditions stipulated in subsection (b)(1)(A) - (O) of this section, the institution shall submit a request to the Assistant Commissioner for Academic Affairs and Research to add the program. If a proposed program does not meet the conditions stipulated in subsection (b)(1)(A) - (O) of this section, the institution must submit a proposal using the standard degree request form.

(A) The Coordinating Board shall post the proposed program online for public comment for a period of 30 days. If no objections are received, the Coordinating Board staff shall update the institution's program inventory accordingly.

(B) If objections to the proposed program are received by the Coordinating Board staff, the proposed program shall not be implemented until all objections are resolved. The Coordinating Board reserves the right to audit a certificate or degree program at any time to ensure compliance with any of the criteria contained in subsection (b)(1)(A) - (O) of this section.

[(2) Completion of Staff Review Process. The Board staff shall review the application for satisfactory fulfillment of the new program requirements and procedures as outlined in the Board-approved Guidelines for Instructional Programs in Workforce Education. The staff shall confer with the institution when additional information or clarification is needed.]

[(3) Completion of Formal Program Review. Once the program requirements have been met, the Board staff may schedule the program for formal program review. This review process shall include representatives from the institution, the Board staff, and other appropriate agencies and institutions of higher education.]

(c) [~~(4)~~] New Program Approval. The Board delegates to the Commissioner final approval authority for all certificate programs, and for applied associate degree programs that meet Board policies for approval as outlined in the Guidelines for Instructional Programs in Workforce Education. The Commissioner may delegate this final authority to the Assistant Commissioner for Academic Affairs and Research.

(d) [~~(5)~~] Each quarter, the Commissioner shall send a list of the approvals and disapprovals under this section to Board members. A list of the approvals and disapprovals shall also be attached to the minutes of the next appropriate quarterly meeting.

(e) [~~(6)~~] The Commissioner shall [ ~~must~~] forward a program to the Board for consideration at an appropriate quarterly meeting if either of the following conditions is met:

(1) [~~(A)~~] The proposed program is the subject of an unresolved grievance or dispute between institutions ; or[.]

(2) [~~(B)~~] The Commissioner has disapproved [of ] the proposed program and the institution has requested a Board review.

(f) Revision of an existing associate degree or certificate program is automatically approved if all of the requirements in subsection (b)(1)(A) - (O) of this section are met.

(g) To request a change of CIP code for an existing degree or certificate program, the institution shall notify the Coordinating Board staff and certify that the revised program meets the requirements in subsection (b)(1)(A) - (O) of this section.

(h) If the revision of an existing degree or certificate program meets the conditions stipulated in subsection (b)(1)(A) - (O) of this section the institution shall submit a request to the Assistant Commissioner for Academic Affairs and Research to revise the program. The Coordinating Board staff shall update the institution's program inventory accordingly.

(i) If a program revision does not meet the conditions stipulated in subsection (b)(1)(A) - (O) of this section, the institution shall submit a revision request using the standard revision request form.

(j) The Coordinating Board reserves the right to audit a certificate or degree program at any time to ensure compliance with any of the requirements in subsection (b)(1)(A) - (O) of this section.

[(b) Each institution wishing to revise an existing certificate or applied associate degree program must complete the procedures as outlined in the Board-approved Guidelines for Instructional Programs in Workforce Education.]

(k) [~~(c)~~] Administrative Officers. All programs must be under the direction of an administrator having appropriate authority to ensure that quality is maintained and that programs are conducted in compliance with all applicable laws and rules. Administrative officers must possess credentials, work experience, and/or demonstrated competence appropriate to their areas of responsibility as specified by the Southern Association of Colleges and Schools Commission on Colleges.

(l) [~~(d)~~] Faculty and Staff. Faculty and staff must be approved by the postsecondary institution. Each individual must meet the minimum qualifications established by the Board.

(m) [~~(e)~~] Each public two-year college may classify career technical/workforce continuing education and other courses as earning semester credit hours or continuing education units (CEUs). Contact hours reported for career technical/workforce education courses which result in either credit hours or CEUs shall be eligible for state appropriations. A course or program that meets or exceeds 360 hours in length must be approved as a career technical/workforce certificate program except by special justification and approval by Board staff. A course or program that meets or exceeds 780 hours in length must result in the award of appropriate semester credit hours and be applicable to a certificate and an applied associate degree program.

§9.95.Reporting to the Board.

(a) Contact hours for courses in approved career technical/workforce education certificate and applied associate degree programs from public two-year colleges and other public institutions providing certificate or associate degree programs must be determined and reported in compliance with Board rules and policy as outlined in the Workforce Education Course Manual and state law.

(b) (No change.)

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 July 24, 2009.

TRD-200903093

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER F. CAREER TECHNICAL/WORKFORCE CONTINUING EDUCATION COURSES

19 TAC §§9.112 - 9.117

The Texas Higher Education Coordinating Board (Board) proposes amendments to §§9.112 - 9.117 relating to Workforce Continuing Education Courses. These amendments would add the words "career technical" to the words "workforce program(s)" in order to align the relevant terminology in Subchapter F with language contained in the Carl D. Perkins Technical Education and Improvement Act of 2006.

Dr. Stephenson has also determined that for each year of the first five years the sections are in effect the establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new section as proposed. There is no impact on local employment.

The amendments are proposed under the provisions of Texas Education Code Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed amendments would affect Texas Education Code, Chapter 61, §61.051(e).

§9.112.Authority.

The Texas Education Code, §§54.051(n), 54.545, 61.051(j), 61.053, 61.054, 61.060, 61.061, 61.062, 130.001(b)(3) - (4), 130.003(e)(4), and 130.006, authorize the Coordinating Board to adopt policies, enact regulations, and establish rules for public two-year colleges for the coordination of career technical/workforce continuing education courses eligible for state appropriations.

§9.113.General Provisions.

(a) Tuition and fees for state-funded career technical/workforce continuing education courses shall be assessed according to policies established by the Board. The governing board of the institution shall establish tuition and fees for career technical/workforce continuing education courses not eligible for state appropriations.

(b) Any career technical/workforce continuing education program meeting or exceeding 360 contact hours shall be subject to all of the requirements for career technical/workforce education programs for state appropriations as outlined in Chapter 9, Subchapter E of this title (relating to Certificate and Associate Degree Programs).

(c) Any career technical/workforce continuing education program meeting or exceeding 780 contact hours in length must result in the award of semester or quarter credit hours and be applicable to a certificate and an applied associate degree program. An exception shall be made for Emergency Medical/Paramedic continuing education programs, which may reach 800 contact hours.

§9.114.Application and Approval Procedures for Career Technical/ Workforce Continuing Education Courses.

(a) Any career technical/workforce continuing education course listed in the Workforce Education Course Manual (WECM) may be offered by any public two-year college without prior approval by the Board. Courses in the current WECM are valid until revised or deleted by subsequent updates of the WECM.

(b) All career technical/workforce continuing education courses shall meet the guidelines outlined in the Guidelines for Instructional Programs in Workforce Education as approved by the Board and the Workforce Education Course Manual.

§9.115.Funding.

(a) Contact hours reported for career technical/workforce education courses, which result in continuing education units (CEUs) shall be eligible for state appropriations.

(b) Career technical/workforce [~~Workforce~~] continuing education courses with fewer than seven (7) contact hours of instruction will not receive state funding unless the specific type and length of instruction are required by local, state, or national licensing, certifying, regulatory, or accrediting agencies.

§9.116.Reporting to the Board.

Contact hours for career technical/workforce continuing education courses from public two-year colleges must be determined and reported in compliance with Board policy as outlined in the Guidelines for Instructional Programs in Workforce Education as approved by the Board, the Workforce Education Course Manual, and state law.

§9.117.Disapproval of Courses; Noncompliance.

No funds appropriated to any public two-year college may be expended for any career technical/workforce continuing education course which has not been approved by the Board staff.

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 July 24, 2009.

TRD-200903094

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER H. PARTNERSHIPS BETWEEN SECONDARY SCHOOLS AND PUBLIC TWO-YEAR COLLEGES

19 TAC §9.142

The Texas Higher Education Coordinating Board (Board) proposes amendments to §9.142 concerning Partnerships Between Secondary Schools and Public Two-Year Colleges. These amendments would delete the reference to the Carl D. Perkins Vocational and Applied Technology Education Act and replace it with the current title: The Carl D. Perkins Career and Technical Education Improvement Act of 2006.

Dr. Stephenson has also determined that for each year of the first five years the section is in effect the establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

Comments on the proposed rule amendment may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thexb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed amendment would affect Texas Education Code, Chapter 61, §61.051(e).

§9.142.Authority.

Texas Education Code, §§29.182, 29.184, 61.076(a), 61.851 through 61.855, 130.001(b)(3) - (4), 130.008, 130.090, and 135.06(d), authorize the Coordinating Board to adopt policies, enact regulations, and establish rules for public two-year colleges to enter into agreements with secondary schools to offer courses which grant credit toward the student's high school academic requirements and/or college-level credit. In addition, the Carl D. Perkins Career and Technical Education Improvement Act of 2006 [~~Carl D. Perkins Vocational and Applied Technology Education Act~~] (hereinafter known as "the Act"), as amended, authorizes the State Board of Education in its capacity as the State Board for Career and Technology Education to designate the Coordinating Board as the administering agency of the Tech-Prep Education Act, or that section, part, or title of the Act referring to Tech-Prep Education.

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 July 24, 2009.

TRD-200903095

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER J. ACADEMIC ASSOCIATE DEGREE AND CERTIFICATE PROGRAMS

19 TAC §9.181, §9.183

The Texas Higher Education Coordinating Board (Board) proposes amendments to §9.181 and §9.183. These amendments would permit automatic Board approval of new academic and career technical/workforce associate degree programs, as well as automatic approval of revisions of existing academic and career technical/workforce associate degree programs provided that conditions stipulated in the amended version of Chapter 9 are met.

Dr. Stephenson has also determined that for each year of the first five years the sections are in effect establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

Comments on the proposed rule amendments may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thexb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendments are proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed amendments would affect Texas Education Code, Chapter 61, §61.051(e).

§9.181.Purpose.

This subchapter provides rules for the structure of academic associate degree programs offered by [in ] public community colleges, Texas State Technical College-Harlingen, and the Lamar State Colleges [~~College-Port Arthur and Lamar State College-Orange~~] that are eligible for state appropriations.

§9.183.Degree Titles, Program Length, and Program Content.

(a) An academic associate degree may be called an associate of arts (AA), an associate of science (AS), or an associate of arts in teaching (AAT) degree.

(1) (No change.)

(2) If a college offers both associate of arts (AA) and associate of science (AS) degrees, the degree programs may be differentiated in one of two ways, including:

(A) - (B) (No change.)

(C) Each academic associate degree must provide a clearly-articulated curriculum that can be associated with a discipline or field of study leading to a baccalaureate degree, and must be identified as such in the institution's program inventory.

(3) (No change.)

(b) (No change.)

(c) Except as provided in paragraphs [ ~~paragraph~~] (1) and (2) of this subsection, academic associate degree programs must incorporate the institution's approved core curriculum as prescribed by §4.28 of this title (relating to Core Curriculum) and §4.29 of this title (relating to Core Curricula Larger than 42 Semester Credit Hours).

(1) A college may offer a specialized academic associate degree that incorporates a Board-approved field of study curriculum as prescribed by §4.32 of this title (relating to Field of Study Curricula) and a portion of the college's approved core curriculum if the coursework for both would total more than 66 SCH; or[.]

(2) A college may offer a specialized academic associate degree that incorporates a Board-approved statewide articulated transfer curriculum and a portion of the college's approved core curriculum if the coursework for both would total more than 66 SCH.

(d) [~~(2)~~] A college that has a signed articulation agreement with a General Academic Teaching Institution to transfer a specified curriculum may offer a specialized AA or AS (but not AAT) degree program that incorporates that curriculum.

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 July 24, 2009.

TRD-200903096

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER J. ACADEMIC ASSOCIATE DEGREE PROGRAMS

19 TAC §§9.184 - 9.186

The Texas Higher Education Coordinating Board proposes the repeal of §§9.184 - 9.186, concerning Academic Associate Degree Programs. The repeal of these sections would delete §9.184 regarding implementation of academic associate degree programs without requesting approval from the Board; delete §9.185 regarding reporting contact hours in approved academic certificate and associate degree programs, and delete old language in §9.186 regarding disapproval of programs; non-compliance.

Dr. Stephenson has also determined that for each year of the first five years the repeal of these sections is in effect establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

Comments on the proposed repeal may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thexb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeal of these sections are proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed repeals would affect Texas Education Code, Chapter 61, §61.051(e).

§9.184.Approval.

§9.185.Reporting to the Board.

§9.186.Disapproval of Programs; Noncompliance.

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 July 24, 2009.

TRD-200903097

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER J. ACADEMIC ASSOCIATE DEGREE AND CERTIFICATE PROGRAMS

19 TAC §§9.184 - 9.186

The Texas Higher Education Coordinating Board proposes new §§9.184 - 9.186, concerning Academic Associate Degree and Certificate Programs. These new sections would establish approval criteria for new academic associate degree programs and permit colleges to award an academic certificate to students who successfully complete a college's approved curriculum, a Board-approved field of study curriculum, and/or a Board-approved statewide articulated transfer curriculum of less than degree length.

Dr. Stephenson has also determined that for each year of the first five years the new sections are in effect establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

Comments on the proposed new sections may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas, 78711 or macgregor.stephenson@thexb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed new sections would affect Texas Education Code, Chapter 61, §61.051(e).

§9.184.Criteria for New Academic Associate Degree Programs and Steps for Implementation.

Approval of new academic associate degree programs is automatic if all of the following conditions are met.

(1) The institution shall certify that the following criteria have been met:

(A) The program has institution and governing board approval;

(B) There is recent evidence of both short-term and long-term student demand for the program.

(D) The institution has an enrollment management plan for the program.

(E) If the program does not follow a Board-approved field of study curriculum or a Board-approved statewide articulation transfer curriculum, the institution has or will initiate a process to establish transfer of credit articulation agreements for the program with senior-level institutions.

(F) The program is designed to be consistent with the standards of the Commission on Colleges of the Southern Association of Colleges and Schools, other applicable accrediting agencies, and is in compliance with applicable licensing authority requirements.

(G) Adequate funding is available to cover all new costs to the institution over the first five years after the implementation of the program.

(H) The program complies with all applicable provisions contained in divisions of this subchapter and, and adheres to the Standards for Academic Associate Degree Programs approved by the Board.

(2) The Coordinating Board shall post the proposed program online for public comment for a period of 30 days. If no objections are received, the Coordinating Board staff shall update the institution's program inventory accordingly. If objections to the proposed program are received by the Coordinating Board staff, the proposed program shall not be implemented until all objections are resolved. The Coordinating Board reserves the right to audit a certificate or degree program at any time to ensure compliance with any of the criteria contained in paragraph (1)(A) - (H) of this section.

(3) New Program Approval. The Board delegates to the Commissioner final approval authority for all certificate programs, applied associate degree programs, and academic associate degrees that meet Board policies for approval as outlined in the Guidelines for Instructional Programs in Workforce Education and this subchapter. The Commissioner may delegate this final authority.

§9.185.Academic Certificates.

A college may award an academic certificate to a student who completes:

(1) the college's approved core curriculum; or

(2) a Board-approved field of study curriculum; or

(3) a Board-approved statewide articulated transfer curriculum of less than degree length.

§9.186.Academic Programs Offered by Texas State Technical College-Harlingen.

(a) Texas State Technical College-Harlingen may offer the associate of science degree in accordance with the provisions of Texas Education Code §135.51(b)(1-2).

(b) An associate of science degree program offered by TSTC-Harlingen shall not unnecessarily duplicate existing programs offered in the service areas of Del Mar College, South Texas College, or Texas Southmost College.

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 July 24, 2009.

TRD-200903098

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER K. TECH-PREP PROGRAMS AND CONSORTIA

19 TAC §9.203, §9.206

The Texas Higher Education Coordinating Board proposes amendments to §9.203 and §9.206, concerning Tech-Prep Programs and Consortia. These amendments would change the reference to the Carl D. Perkins Vocational and Technical Education Act to the Carl D. Perkins Career and Technical Education Improvement Act of 2006 in §9.203; add clarifying terms to §9.206(a) and (b), and add federally required goals for Tech-Prep programs to §9.206(b).

Dr. Stephenson has also determined that for each year of the first five years the amendments are in effect establishment of conditions under which the approval of new academic and career technical/workforce associate degree programs, as well as approval of revision of existing academic and career technical/workforce associate degree programs is automatic, would permit public two-year colleges and the five public universities that are authorized to grant the associate degree to implement new degree programs much more quickly than is possible under the provisions of the current version of Chapter 9. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There would be no impact on local employment.

Comments on the proposed rule amendments may be submitted to Dr. MacGregor M. Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thexb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendments are proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed amendments would affect Texas Education Code, Chapter 61, §61.051(e).

§9.203.General Provisions.

(a) The State Board of Education, in its capacity as the Board for Career and Technology Education, is the eligible agency responsible for implementation and evaluation of all programs funded in Texas under the Carl D. Perkins Career and Technical Education Improvement Act of 2006 [~~Carl D. Perkins Vocational and Technical Education Act~~] (the Act), as amended, (20 USC 2301 et seq.) until such time as the Act amends the provision defining the eligible agency.

(b) - (c) (No change.)

§9.206.Evaluation of the Tech-Prep Programs and Consortia.

(a) [~~The~~] Board staff shall [ ~~biennially~~] evaluate each Tech-Prep consortium to determine the success of the consortium's Tech-Prep programs and activities.

(b) The required goals and performance measures [ ~~and standards~~] by which each consortium shall be evaluated include the following:

(1) Goal 1: Increase the number of secondary Tech-Prep graduates enrolled in postsecondary institutions. Measure 1: Perkins IV Tech-Prep Indicator 1STP1: The number and percent of secondary education Tech-Prep students enrolled in the Tech-Prep program who enroll in postsecondary education;

(2) Goal 2: Increase the number of secondary Tech-Prep graduates enrolled in the same field or major at postsecondary institutions. Measure 2: Perkins IV Tech-Prep Indicator 1STP2: The number and percent of secondary education Tech-Prep students enrolled in the Tech-Prep program who enroll in postsecondary education in the same field or major as the secondary education tech-prep students were enrolled at the secondary level;

(3) Goal 3: Increase the number of secondary Tech-Prep graduates that complete a State or industry-recognized certification or licensure. Measure 3: Perkins IV Tech-Prep Indicator 1STP3: The number and percent of secondary education Tech-Prep students enrolled in the Tech-Prep program who complete a State or industry-recognized certification or licensure;

(4) Goal 4: Increase the number of secondary Tech-Prep graduates with postsecondary credits. Measure 4: Perkins IV Tech-Prep Indicator 1STP4: The number and percent of secondary education Tech-Prep students enrolled in the Tech-Prep program who successfully complete, as a secondary school student, courses that award postsecondary credit at the secondary level;

(5) Goal 5: Reduce the number of secondary Tech-Prep graduates enrolled in remedial mathematics, writing, or reading courses upon entering postsecondary education. Measure 5: Perkins IV Tech-Prep Indicator 1STP5: The number and percent of secondary education Tech-Prep students enrolled in the Tech-Prep program who enroll in remedial mathematics, writing, or reading courses upon entering postsecondary education;

(6) Goal 6: Increase the number of postsecondary Tech-Prep graduates placed in a related field of employment. Measure 6: Perkins IV Tech-Prep Indicator 1PTP1: The number and percent of postsecondary education Tech-Prep students who are placed in a related field of employment not later than 12 months after graduation from the tech-prep program;

(7) Goal 7: Increase the number of postsecondary Tech-Prep students that complete a State or industry-recognized certification or licensure. Measure 7: Perkins IV Tech-Prep Indicator 1PTP2: The number and percent of postsecondary education Tech-Prep students who complete a State or industry-recognized certification or licensure;

(8) Goal 8: Increase the number of postsecondary Tech-Prep students that complete a 2-year degree or certificate program. Measure 8: Perkins IV Tech-Prep Indicator 1PTP3: The number and percent of postsecondary education Tech-Prep students who complete a 2-year degree or certificate program within the normal time for completion of such program; and

(9) Goal 9: Increase the number of postsecondary Tech-Prep students that complete a baccalaureate degree program. Measure 9: Perkins IV Tech-Prep Indicator 1PTP4: The number and percent of postsecondary education Tech-Prep students who complete a baccalaureate degree program within the normal time for completion of such program.

[(1) Measure 1: The secondary participation rate. Standard 1: The rate shall be at least the state average (based on data provided by the Texas Education Agency) for the previous year and shall be increasing from year-to-year.]

[(2) Measure 2: The postsecondary participation rate. Standard 2: The rate shall be at least the state average (based on data provided by the Texas Higher Education Coordinating Board) for the previous year and shall be increasing from year-to-year.]

(c) [~~(3)~~] [~~Measure 3:~~] The appropriate and timely expenditure of Tech-Prep funds:[~~. Standard 3:~~ ] The consortium shall have spent at least 95 percent of its allocated funds during the previous year and not had any findings during the fiscal desk review process.

(d) [~~(4)~~] [~~Measure 4:~~] Maintenance of detailed time distribution records for staff paid from multiple sources of funds:[~~. Standard 4:~~] Time distribution records shall be completed for each consortium employee paid from multiple funds on at least a monthly basis, and be an accurate reflection of the time-on-task for consortium activities related to Tech-Prep. Monthly time sheets must be on file at the consortium office for a minimum of three years.

(e) [~~(5)~~] [~~Measure 5:~~] Timely submission of accurate quarterly reports to the Coordinating Board:[~~. Standard 5:~~] Quarterly reports shall be submitted by Coordinating Board due dates and include a response for each goal and objective listed in that report.

[(6) Measure 6: Participation of consortia at state Tech-Prep quarterly and called meetings. Standard 6: Attendance by at least one consortium representative is required at all state Tech-Prep meetings.]

[(7) Measure 7: Site visits to member institutions and public schools. Standard 7: All consortium member institutions and public schools shall receive at least two site visits each grant year from consortium staff. Documentation of site visits shall be included as part of the final report for the grant year to the Coordinating Board.]

(f) [~~(c)~~] [~~The~~] Board staff shall provide each consortium with a written report on the results of the evaluation. A consortium shall respond to any finding of the failure to meet performance measures and standards within thirty (30) days of the receipt of the report.

(g) [~~(d)~~] If a consortium fails to meet two or more of the performance measures and standards established in this provision, Board staff shall conduct a technical site visit. As part of the technical site visit, the consortium shall provide to Board staff any additional documentation needed for a review of the following activities:

(1) Increasing secondary and/or postsecondary participation rates;

(2) Past and present marketing efforts to increase participation rates;

(3) Opportunities for professional development for teachers, counselors, and administrators;

(4) Career exploration activities for students;

(5) Current articulation agreements between and among public schools and institutions;

(6) Current Strategic Continuous Improvement Plan as described in §9.205(1) of this title (relating to Consortium Responsibilities);

(7) Use of funds;

(8) Support and opportunities for participation by member institutions and public schools; and

(9) Operation of the consortium within all the bylaws of the organization. Compliance with all by-laws shall by certified by the consortium governing board chair as part of the annual application to the Coordinating Board.

(h) [~~(e)~~] Within thirty (30) days of the technical site visit, Board staff shall provide a final evaluation of the consortium's programs and activities. If a consortium fails to meet the standards set out in subsection (b) of this section, Board staff shall provide assistance to the consortium governing board in developing a revised Strategic Continuous Improvement Plan. The revised Plan shall set requirements with reasonable deadlines for the purpose of assisting the consortium in meeting required performance measures and standards established in this provision.

(i) [~~(f)~~] Board staff shall monitor the consortium's performance of the revised Plan for six (6) months. If the consortium fails to comply with the requirements of the revised Plan, the Commissioner may determine that a consortium shall be reorganized, consolidated, or abolished as follows:

(1) If the consortium fails to improve its performance relating to participation rates, the Commissioner may require the consortium to reorganize or require the consolidation of the consortium with an existing, high-performing consortium;[.]

(2) If the consortium fails to improve its performance for appropriate and timely expenditure of Tech-Prep funds and maintenance of accurate time distribution records, the Commissioner may require the consortium to be abolished and a new consortium, or consortia, be established to serve the area; and[.]

(3) If the consortium fails to improve its performance for operation within the organization's established bylaws, the Commissioner may require the consortium to be abolished and a new consortium, or consortia, be established to serve the area.

(j) [~~(g)~~] Not later than October 1 of each even-numbered year, the Board staff shall report to each Tech-Prep consortium the results of all evaluations and follow-up actions during the previous two years. The report shall include the following:

(1) Any failure of the consortium to meet the performance measures and standards established in this provision;

(2) The activities and achievements of the consortium in meeting the performance measures and standards established in this provision;

(3) Those areas in which the consortium has made improvement in meeting the performance measures and standards established in this provision; and

(4) Any actions taken by Board staff.

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 July 24, 2009.

TRD-200903099

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

CHAPTER 10. INSTITUTIONAL EFFECTIVENESS IN PUBLIC TWO-YEAR COLLEGES

SUBCHAPTER A. PURPOSE, AUTHORITY, AND DEFINITIONS

19 TAC §§10.1 - 10.3

The Texas Higher Education Coordinating Board proposes the repeal of §§10.1 - 10.3, concerning Institutional Effectiveness in Public two-Year Colleges, for the purpose of allowing the Board staff to completely re-write the chapter in order to establish rules for the new program review process. The Board staff is currently developing a process for the evaluation of academic programs at the associate, bachelor, and master's degree levels. The new process would replace the currently existing institutional effectiveness evaluation process that applies only to career and technical programs offered by public community and technical colleges.

Dr. MacGregor M. Stephenson, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years there will be no fiscal implications for state or local government as a result of the repeals.

Dr. Stephenson has also determined that for each year of the first five years the repeals are in effect the new program review process would significantly expand the Board Staff's ability to evaluate existing degree programs by extending the process to the bachelor's and master's degree levels. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the repeals as proposed. There is no impact on local employment.

Comments on the proposed repeals may be submitted to Dr. MacGregor Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeals are proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed repeals would affect Texas Education Code, Chapter 61, §61.051(e).

§10.1.Purpose.

§10.2.Authority.

§10.3.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 July 24, 2009.

TRD-200903100

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

SUBCHAPTER B. GENERAL PROVISIONS

19 TAC §§10.21 - 10.24

The Texas Higher Education Coordinating Board (Board) proposes the repeal of §§10.21 - 10.24, related to Institutional Effectiveness in Public Two-Year Colleges, for the purpose of allowing the Board staff to completely re-write the chapter in order to establish rules for the new program review process. The Board staff is currently developing a process for the evaluation of academic programs at the associate, bachelor, and master's degree levels. The new process would replace the currently existing institutional effectiveness evaluation process that applies only to career and technical programs offered by public community and technical colleges.

Dr. Stephenson has also determined that for each year of the first five years the repeal of these sections is in effect the new program review process would significantly expand the Board staff's ability to evaluate existing degree programs by extending the process to the bachelor's and master's degree levels. There is no effect on 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 proposed repeal may be submitted to Dr. MacGregor Stephenson, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or macgregor.stephenson@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeal is proposed under the provisions of Texas Education Code, Chapter 61, §61.051, which describes the Board's role in coordinating higher education in Texas.

The proposed repeal would affect Texas Education Code, Chapter 61, §61.051(e).

§10.21.Procedures.

§10.22.Action and Order of the Board.

§10.23.Compliance and Certification.

§10.24.Noncompliance.

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 July 24, 2009.

TRD-200903101

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

CHAPTER 13. FINANCIAL PLANNING

SUBCHAPTER I. PERFORMANCE INCENTIVE FUNDING

19 TAC §§13.150 - 13.152

The Texas Higher Education Coordinating Board proposes new §§13.150 - 13.152, concerning rules applying to general provisions of programs related to performance incentive funding. Section 13.150 provides the definitions that will be needed for the subchapter. Section 13.151 establishes the authority for the program and rule making by the Board. Section 13.152 establishes the provisions of the program. Specifically, in compliance with House Bill 51, 81st Texas Legislature, the proposed rules would establish the definitions, authority, and general provisions for the Performance Incentive Funding (PIF).

Ms. Susan Brown, Assistant Commissioner, Planning and Accountability, has determined that for each year of the first five years the new sections are in effect, there will not be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Brown 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 more efficient Board operations relating to distribution of funds allocated to this program by the legislature. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Gary W. Johnstone, Deputy Assistant Commissioner, Planning and Accountability, 1200 East Anderson Lane, Austin, Texas 78752 or gary.johnstone@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under the Texas Education Code, §62.073.

The new sections affect Texas Education Code, §§62.071 - 62.073.

§13.150.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) At-Risk Student--An undergraduate student who has one of the following attributes.

(A) score on the Scholastic Assessment Test (SAT) or the American College Test (ACT) is less than the national mean score of students' scores on that test;

(B) has been awarded a grant under the federal Pell Grant program;

(D) enrolled as a part-time student; and

(E) did not receive a high school diploma but received a high school equivalency certificate within the last six years.

(2) Commissioner--The Commissioner of Higher Education; as used in this subchapter, "Commissioner" means the agency acting through its executive, and his or her designees, staff, or agents.

(3) Coordinating Board--The Texas Higher Education Coordinating Board.

(4) Critical Field--Field of engineering, computer science, mathematics, physical science, allied health, nursing, or teacher certification in a field of science or mathematics.

(5) Eligible Public Institution--A general academic teaching institution other than a public state college as defined in Texas Education Code, §61.003.

§13.151.Authority.

(a) Texas Education Code, §62.071, defines the eligibility for the Performance Incentive Funding.

(b) Texas Education Code, §62.072, establishes the methodology for distribution of the funding provided for this purpose.

§13.152.Performance Incentive Fund (PIF).

(a) Purpose. The purpose of this program is to provide funds to eligible institutions based on the degrees awarded and the increase in degrees awarded, as appropriated by the legislature, as compared to previous outcomes.

(b) Distribution.

(1) 50 percent to be distributed among eligible institutions in proportion to the increase, if any, in the average number of degrees awarded annually by each institution in the two most recent fiscal years from the average number of degrees awarded annually by that institution in the two fiscal years immediately preceding those fiscal years, using the weights assigned to each degree.

(2) 50 percent to be distributed among eligible institutions in proportion to the average number of degrees awarded annually by each institution in the three most recent fiscal years, using the weights assigned to each degree.

(c) Calculation of awards. A number of points is assigned for each degree awarded by an eligible institution according to the following:

(1) Noncritical field--Not at-risk student: 1 point;

(2) Noncritical field--at-risk student: 2 points;

(3) Critical field--at-risk student: 2 points; and

(4) Critical field--at-risk student: 3 points.

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 July 24, 2009.

TRD-200903166

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

CHAPTER 15. NATIONAL RESEARCH UNIVERSITIES

SUBCHAPTER A. GENERAL PROVISIONS

19 TAC §§15.1, 15.2, 15.10

The Texas Higher Education Coordinating Board proposes new §§15.1, 15.2, and 15.10, concerning rules applying to general provisions of programs related to national research universities. Section 15.1 provides the definitions that will be needed for the subchapter. Section 15.2 establishes the authority for the program and rulemaking by the Board. Section 15.10 establishes the provisions of the program. Specifically, in compliance with House Bill 51, 81st Texas Legislature, the proposed rules would establish the definitions, authority, and general provisions for the Texas Research Initiative Program (TRIP).

Ms. Susan Brown, Assistant Commissioner, Planning and Accountability, has determined that for each year of the first five years the new sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Brown 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 new sections will be more efficient Board operations relating to distribution of funds allocated to this program by the legislature. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

The new sections are proposed under the Texas Education Code, §61.124.

The new sections affect Texas Education Code, §61.122.

§15.1.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Commissioner--The Commissioner of Higher Education; as used in this subchapter, "Commissioner" means the agency acting through its executive, and his or her designees, staff, or agents.

(2) Coordinating Board--The Texas Higher Education Coordinating Board.

(3) Date of Certification--The date the gift was deposited by the institution in a depository bank or invested by the institution as authorized by law. A non-cash gift must be certified as the date the gift is converted to cash, and is considered to have been received on that date. The date of certification must be September 1, 2009 or later.

(4) Eligible Funds--Certified gifts for current use or endowment from private sources in a state fiscal year for the purpose of enhancing research activities at the institution, including a gift or endowment for endowed chairs, professorships, research facilities, research equipment, program costs, or graduate research stipends or fellowship.

(5) Eligible Public Institution--An institution of higher education designated as an emerging research university under the Coordinating Board's Accountability System.

(6) Gift--Including cash, cash equivalents, marketable securities, closely held securities, money market holdings, partnership interests, personal property, real property, minerals, and life insurance proceeds.

(7) Ineligible Funds--A gift for undergraduate scholarships or grants, or any portion in excess of $10 million of gifts or endowments received from a single source in a state fiscal year.

(8) Institution of Higher Education--As defined in Texas Education Code, §61.003.

(9) Private Sources--Any individual or entity that cannot levy taxes and is not directly supported by tax funds.

(10) Program--The Texas Research Incentive Program.

(11) University-Associated Entity--Is an entity that exists to support the university.

§15.2.Authority.

(a) Texas Education Code, §62.122, establishes the Texas Research Incentive Program to provide matching funds to assist eligible public institutions in leveraging private gifts for the enhancement of research productivity and faculty recruitment.

(b) Texas Education Code, §62.123, establishes the rate of matching and authorizes the Board, to establish procedures for the certification of gifts.

§15.10.Texas Research Initiative Program (TRIP).

(a) Purpose. The purpose of this program is to provide matching funds to assist eligible institutions in leveraging private gifts for the enhancement of research productivity and faculty recruitment.

(b) Matching Grants. Eligible funds will be matched at the following rates:

(1) 50 percent of the amount if the total amount of gifts and endowments are at least $100,000, but not more than $999,999;

(2) 75 percent of the amount if the total amount of gifts and endowments are at least $1 million but not more than $1,999,999; or

(3) 100 percent of the amount if the total amount of gifts and endowments are $2 million or more.

(1) Matching funds will be distributed in order of their date of certification.

(2) All eligible funds with the same date of certification will be considered in a block.

(3) If there are insufficient funds to match gifts with the same date of certification those gifts will be prorated and any remaining unmatched gifts shall be eligible for matching funds in the following fiscal years using funds appropriated to the program, to the extent funds are available.

(d) Certification. In order for the Board to certify a gift, the institution must submit the following information for any gift to be considered eligible:

(1) A bank certification showing the amount and name of the donor;

(2) Fully executed copy of the donor agreement describing the purpose and the restrictions to meet the definition of eligible funds; and

(3) All information must be provided to the Coordinating Board within 30 days of the date of bank certification.

(e) Institutions will provide a complete list of all university associated entities.

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 July 24, 2009.

TRD-200903165

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114

CHAPTER 21. STUDENT SERVICES

SUBCHAPTER T. THE VACCINATION AGAINST BACTERIAL MENINGITIS FOR STUDENTS APPROVED TO RESIDE IN ON-CAMPUS DORMITORIES OR OTHER ON-CAMPUS HOUSING FACILITIES AT INSTITUTIONS OF HIGHER EDUCATION

19 TAC §§21.610 - 21.614

The Texas Higher Education Coordinating Board proposes new §§21.610 - 21.614, concerning The Vaccination Against Bacterial Meningitis for Students Approved to Reside In On-campus Dormitories or other On-Campus Housing Facilities at Institutions of Higher Education. House Bill 4189 of the 81st Legislature (Texas Education Code §51.9192, Subchapter Z) requires first-time students of an institution of higher education, including a transfer student, who reside in, or have applied for on-campus housing and have been approved to reside in, an on-campus dormitory or other on-campus student housing facility to provide to the institution a certificate signed by a health practitioner as evidence that the student has been vaccinated against bacterial meningitis. The proposed new sections describe the timeframe by which a student is required to have been vaccinated and the timeframe in which the student must submit evidence of having been vaccinated to the institution.

Dr. Stephenson 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 students residing in dormitories and other on-campus housing facilities being vaccinated against bacterial meningitis will enhance the public health and safety of students enrolled at institutions of higher education. There is no effect on small or micro businesses. There is no impact on local employment.

The new sections are proposed under the Texas Education Code, §51.9192.

The new sections affect implementation of Texas Education Code, §51.9192.

§21.610.Purpose.

Pursuant to the Jamie Schanbaum Act, this subchapter creates the procedure by which a first-time student of an institution of higher education, including a transfer student, residing in on-campus housing, will show evidence of being immunized against bacterial meningitis.

§21.611.Authority.

This subchapter relates to Texas Education Code, §51.9192, Subchapter Z, which regulates the requirement for bacterial meningitis vaccination for certain students and identifies exceptions to that requirement. This subchapter applies only to first-time students or transfer students enrolling in public or private or independent institutions of higher education on or after January 1, 2010, who plan to live in on-campus dormitories or other on-campus housing facilities.

§21.612.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Evidence of Vaccination--Acceptable evidence of vaccination includes:

(A) the month, day, and year the vaccination was administered;

(B) the signature or stamp of the physician or his/her designee, or public health personnel;

(D) an official record received from school officials, including a record from another state.

(2) First-time student--A student who has not previously enrolled at a public, private, or independent institution of higher education, or a dual enrollment or a transfer student who was previously enrolled at a public, private, or independent institution of higher education.

(3) Health practitioner--Any person authorized by law to administer a vaccination.

(4) Institution of Higher Education--Any public technical institute, public junior college, public senior college or university, medical or dental unit or other agency of higher education as defined in Texas Education Code, §61.003(8).

(5) On-campus housing--Student housing facilities located on the campus of an institution of higher education, such as dormitories, sorority and fraternity houses, privately owned residence halls, and apartments.

(6) Private or independent institution of higher education--Includes only a private or independent college or university as defined in Texas Education Code §61.003(15).

§21.613.Immunization Requirement.

(a) A first-time student attending an institution of higher education or private or independent institution of higher education, including a transfer student, who plans to reside in, or has applied for on-campus housing and has been approved to reside in an on-campus dormitory or other on-campus student housing facility must show evidence of vaccination against bacterial meningitis.

(b) Each institution of higher education that has on-campus housing for students must designate an office and administrative official to receive from the student evidence of having been vaccinated against bacterial meningitis.

(c) Evidence of the student having received the vaccination from an appropriate health practitioner must be received by the administrative official at the institution of higher education. The student must have received the vaccination at least 10 days prior to the student taking up residence in on-campus housing. This information shall be maintained in accordance with Family Education Rights and Privacy Act Regulations, and with Health Insurance Portability and Accountability Act.

§21.614.Exceptions.

(a) A student, or a parent or guardian of a student, is not required to submit evidence of receiving the vaccination against bacterial meningitis if the student, or a parent or guardian of a student, submits to the institution:

(1) an affidavit or a certificate signed by a physician who is duly registered and licensed to practice medicine in the United States, in which it is stated that, in the physician's opinion, the vaccination required would be injurious to the health and well-being of the student; or

(2) an affidavit signed by the student stating that the student declines the vaccination for bacterial meningitis for reasons of conscience, including a religious belief. A conscientious exemption form from the Texas Department of State Health Services must be used.

(b) The exception noted in subsection (a)(2) of this section does not apply during a disaster or public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency declared by an appropriate official or authority from the Texas Department of State Health Services and is in effect for the location of the institution the student attends.

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 July 24, 2009.

TRD-200903102

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 29, 2009

For further information, please call: (512) 427-6114