1. (a) A person or institution may not:

   1. (1) Grant, award, or offer to award a degree on behalf of a nonexempt institution unless the institution has been issued a certificate of authority, including an alternative certificate of authority, to grant the degree by the Board;
   2. (2) Represent that credits earned or granted by that person or institution are applicable for credit toward a degree to be granted by some other person or institution except under conditions and in a manner specified under §7.7 of this chapter (relating to Certificate of Authority) and approved by the Board, or represent that credits earned or granted are collegiate in nature, including describing them as "college-level," or at the level of any protected academic term;
   3. (3) 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. (4) Use a protected term in the official name or title of a nonexempt private postsecondary institution or describe an institution using any of these terms or a term having a similar meaning, except as authorized by the Board, or solicit another person to seek a degree or to earn a credit that is offered by an institution or establishment that is using a term in violation of this section;
   5. (5) Use a protected term in the official name or title of an educational or training establishment or describe an institution using any of these terms or a term having a similar meaning, or solicit another person to seek a degree or to earn a credit that is offered by an institution or establishment that is using a term in violation of this section;
   6. (6) 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.

   7. (7) Use or claim to hold a degree that the person knows is a fraudulent or substandard degree or is a fictitious degree:

      1. (A) in a written or oral advertisement or other promotion of a business; or

      2. (B) with the intent to:

         1. (i) obtain employment;
         2. (ii) obtain a license or certificate to practice a trade, profession, or occupation;
         3. (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;
         4. (iv) obtain admission to an educational program in this state; or
         5. (v) gain a position in government with authority over another person, regardless of whether the actor receives compensation for the position.
2. (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.
3. (c) A violation of this subsection may constitute a violation of the Texas Penal Code, §32.52. An offense under subsection (a)(1) - (6) of this section may be a Class A misdemeanor and an offense under subsection (a)(7) of this section may be a Class B misdemeanor.

4. (d) In the event any institution now or hereafter operating in this state proposes to discontinue its operation, the chief administrative officer, by whatever title designated, of said institution shall cause to be filed with the Board the original or legible true copies of all such academic records of said institution as may be specified by the Commissioner. Such records shall include, without limitation:

   1. (1) such academic information as is customarily required by colleges when considering students for transfer or advanced study; and
   2. (2) the academic records of each former student.
5. (e) In the event it appears to the Commissioner that any records of an institution that is discontinuing its operations are in danger of being destroyed, secreted, mislaid, or otherwise made unavailable to the Board, the Commissioner may seek, on the Board's behalf, court authority to take possession of such records.
6. (f) The Board shall maintain or cause to be maintained a permanent file of such records coming into its possession.
7. (g) 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.
8. (h) The Commissioner shall send written notice by certified mail to the person or institution charged with the violation. The notice shall state the facts on which the penalty is based, the amount of the penalty assessed, and the right of the person or institution to request a hearing.
9. (i) The Commissioner's assessment shall become final and binding unless, within forty-five (45) days of receipt of the notice of assessment, the person or institution invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).
10. (j) If the person or institution does not pay the amount of the penalty within thirty (30) days of the date on which the assessment becomes final, the Commissioner may refer the matter to the attorney general for collection of the penalty, plus court costs and attorney fees.

11. (k) Any person or institution that is neither exempt nor the holder of a certificate of authority, including an alternative certificate of authority, to grant degrees, shall be assessed an administrative penalty of not less than $1,000 or more than $5,000 for, either individually or through an agent or representative:

    1. (1) conferring or offering to confer a degree;
    2. (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. (3) representing that any credits offered are collegiate in nature subject to the provisions of this subchapter;
    4. (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.
12. (l) Any person or institution that violates subsection (a)(4) or (5) of this section shall be assessed an administrative penalty of not less than $1,000 or more than $3,000.
13. (m) 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.
14. (n) Any operations which are found to be in violation of the law shall be terminated.
15. (o) 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.
16. (p) An action for an injunction under this section shall be brought in a district court in Travis County.
17. (q) 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.
18. (r) The attorney general, at the request of the Board, shall bring a civil action to collect a civil penalty under this section.
19. (s) A person who violates this subchapter commits a false, misleading, or deceptive act or practice within the meaning of the Texas Business & Commerce Code, §17.46.
20. (t) A public or private right or remedy under the Texas Business & Commerce Code, §17, may be used to enforce this section.

Source Note:The provisions of this §7.16 adopted to be effective May 27, 2008, 33 TexReg 4134.