1. (a) The provisions of this subchapter do not apply to:

   1. (1) The home campus of an institution which is fully accredited by a recognized accrediting agency. For purposes of the exemption, the Board currently recognizes the following accrediting agencies: the Commission on Higher Education, Middle States Association of Colleges and Schools; the Commission on Institutions of Higher Education, New England Association of Schools and Colleges; the Commission on Institutions of Higher Education, North Central Association of Colleges and Schools; the Northwest Commission on Colleges and Universities, the Commission on Colleges, Southern Association of Colleges and Schools; the Accrediting Commission for Community and Junior Colleges and Accrediting Commission for Senior Colleges and Universities, Western Association of Schools and Colleges; the Association of Biblical Higher Education (undergraduate only); and the Association of Theological Schools in the United States and Canada.
   2. (2) A branch campus, extension center, or other off-campus unit operated by a private or independent institution of higher education as narrowly defined by Texas Education Code, §61.003.
   3. (3) An institution or degree program that has received approval by an agency of the State of Texas authorizing the graduates of the institution to take a professional or vocational state licensing examination administered by that agency. The granting of permission by a state agency to a graduate of an institution to take a licensing examination does not by itself constitute approval of the institution or degree program required for an exemption under this subsection.
2. (b) The exemptions provided by subsection (a) of this section apply only to the degree level for which the programs or the institution is accredited or approved, as applicable, and if an institution offers to award a degree at a level for which it is not accredited or approved by the appropriate agency of the State of Texas, the exemption does not apply.
3. (c) The Commissioner may issue a certificate of authorization to grant degrees to an exempt institution, upon the institution's application and demonstration that it qualifies for an exemption under subsection (a)(1) of this section, as limited by subsection (b) of this section.
4. (d) A new institution may not presume exempt status and offer to award degrees or courses leading to degrees until it has applied for and been granted a certificate of authorization by the Commissioner.
5. (e) An exempt institution continues in that status only so long as it maintains accreditation by a recognized accrediting agency or otherwise meets the provisions of subsection (a) of this section.

6. (f) Revocation of an exemption.

   1. (1) If the Commissioner receives credible evidence that an institution is no longer qualified for an exemption, he shall notify the institution that its exempt status is revoked, and that the institution is subject to the requirements Chapter 61 of the Texas Education Code, and of this subchapter.
   2. (2) Upon receipt of the notice of revocation, the institution must cease granting or awarding degrees in Texas until it has either been granted a certificate of authority to grant degrees, or has received a determination that it did not lose its qualification for an exemption.
   3. (3) Within 10 days of its receipt of the Commissioner's notice, the institution must respond and offer proof of its continued qualification for the exemption.
   4. (4) After reviewing the evidence, the Commissioner will issue a notice of determination, which in the case of an adverse determination, shall contain information regarding the reasons for the denial, and the institution's right to a hearing.
   5. (5) If a determination under this section is adverse to an institution, it shall become final and binding unless, within 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 Hearings and Appeals).

Source Note:The provisions of this §7.4 adopted to be effective May 29, 2003, 28 TexReg 4131; amended to be effective February 22, 2005, 30 TexReg 835.