1. (1) The purpose of the guidelines for the review and approval of the consolidation or merger of two-year postsecondary institutions is to insure that such actions are educationally and economically beneficial to the state.
2. (2) It is the responsibility of the Alabama Commission on Higher Education to establish policies and procedures for the review and approval of the consolidation or merger of two-year postsecondary institutions. In establishing these policies, the Commission has acted in agreement with an Alabama State Board of Education resolution, which was passed by the Board on January 25, 1996. (The State Board resolution is filed as an attachment to this rule.)

3. (3) For the purposes of this rule, the following definitions apply:

   1. (a) Administrative Consolidation: Two or more institutions are placed under a single executive head without program interchange. All involved institutions maintain separate functional identities. This does not constitute a multicampus institution, but rather two or more separate institutions operating under a single executive head. (From Operational Definitions adopted by the Commission on 8/19/94).
   2. (b) Institutional Consolidation: Two or more institutions join to form a distinctly new unit, often with a new name. This results in a single multicampus institution operating under one chief executive officer and under one regional accreditation designation. Often involves program relocation or exchange. (From Operational Definitions adopted by the Commission on 8/19/94.)
   3. (c) Merger: One institution relinquishes its assets and degree-granting authority and is dissolved into another with the second institution remaining as the sole surviving entity. Might involve the closure of a campus or one institution becoming a branch of the other. (From Operational Definitions adopted by the Commission on 8/19/94.)

4. (4) The following sequential procedures will be used for the review of proposed consolidations or mergers of two-year postsecondary institutions:

   1. (a) The Statement of Intent Phase:

      1. 1. The Chancellor of the Alabama Department of Postsecondary Education (ADPE) presents a Statement of Intent to Consolidate or Merge two or more institutions to the Alabama Commission on Higher Education (ACHE) for review, comment, and approval.
      2. 2. The Chancellor of ADPE presents the Statement of Intent to Consolidate or Merge to the Alabama State Board of Education for approval.
      3. 3. Institutional notification of pending change to the Commission on Colleges of the Southern Association of Colleges and Schools.

   2. (b) Administrative Consolidation Phase:

      1. 1. The Chancellor of ADPE presents a formal request to the Commission on Higher Education for its approval of the administrative consolidation of the institutions.
      2. 2. The Chancellor of ADPE presents a resolution to the Alabama State Board of Education for approval of the administrative consolidation of the institutions.

   3. (c) Institutional (Programmatic) Consolidation or Merger Phase:

      1. 1. Preparation and submission of Prospectus for Substantive Change to the Commission on Colleges of the Southern Association of Colleges and Schools (SACS).
      2. 2. Visit by SACS Substantive Change Committee.
      3. 3. Approval of change by SACS.
      4. 4. Submission of Proposal for Institutional (Programmatic) Consolidation or Merger to ACHE for review and approval.
      5. 5. Final approval of the consolidation or merger by the Alabama State Board of Education.

5. (5) The following specific requirements must be addressed in merger or consolidation proposals.

   1. (a) Proposed program exchanges, duplications, or relocations among the merged of consolidated institutions must be clearly identified in the proposals.
   2. (b) Additional programs, i.e. programs not existing on one or more of the campuses at the time of the merger or consolidation, must undergo the regular Commission review and approval process.
   3. (c) Documentation of specific educational benefits to be derived from the merger or consolidation must be presented with the Statement of Intent to Consolidate or Merge.
   4. (d) The merger or consolidation must be cost beneficial. Specifically, evidence must be presented that a reduction of administrative and other costs will result from the merger or consolidation. Both immediate and long-range savings must be presented.
6. (6) Only those mergers or consolidations that are educationally and economically beneficial shall be approved.

Author: William O. Blow

Statutory Authority: Code of Ala. 1975, §§16-5-1, et seq.

Editor’s Note: Previous chapter 300-2-1 entitled "Review and Approval of Proposed Postsecondary Course Offerings in Alabama by Non-Alabama Institutions" consisting of Rules 300-2-1-.01 "Goal," 300-2-1-.02 "Organization," 300-2-1-.03 "Definition of Terms," 300-2-1-.04 "Procedure for Applying for Approval," 300-2-1-.05 "Procedure for Exempt Institutions," 300-2-1-.06 "General Standards for Approval," 300-2-1-.07 "Criteria for Approval of Courses," 300-2-1-.08 "Site Visits and Special Consultants," 300-2-1-.09 "Time Schedule for Commission Response," 300-2-1-.10 "Application Fees," and 300-2-1-.11 "Appeal" filed December 10, 1985. Chapter Repealed and new chapter adopted in lieu thereof. Rule 300-2-1-.09, Definitions Recognized by the Commission was moved to Rule 300-2-1-.01. Rule 300-2-1-.06, Operational Policy on the Approval, Disapproval, Deferral, and Withdrawal of New Programs of Instruction was moved to Rule 300-2-1-.04. Rule 300-2-1-.01, Definitions Relating to Program Review was moved to Rule 300-2-1-.06. Rule 300-2-1-.07, was repealed and replace with Rule 300-2-1-.08, Operational Policy on Inactive Status and Reinstatement of Programs. These changes took place in the certification dated March 12, 1996; effective April 16, 1996.

History: New Rule: Filed April 6, 1998; effective May 11, 1998.