1. (a) The Board may issue to a nonexempt institution a certificate of authority to grant a degree or degrees and to enroll students for courses which may be applicable toward a degree if the Board finds that the institution meets the standards established herein.

2. (b) Certification Advisory Council.

   1. (1) The Board shall appoint a certification advisory council to advise the Board on standards and procedures related to certification of private, nonexempt postsecondary educational institutions, to assist the Commissioner in the examination of individual applications for certificates of authority, and to perform other duties related to certification that the Board finds to be appropriate.
   2. (2) The council shall consist of six members with experience in higher education, three of whom must be drawn from exempt private institutions of higher education in Texas.
   3. (3) The members shall be appointed for two year fixed and staggered terms.

3. (c) Fees.

   1. (1) Certificates of Authority. Each biennium the Commissioner shall set the fee for initial and renewal applications for certificates of authority, which shall be equal to the average cost of evaluating the applications. The fee shall include the costs of travel, meals, and lodging of the visiting team and the Commissioner, or the Commissioner's designated representatives, and consulting fees for the visiting team members, if an onsite review is conducted. For an additional fee not to exceed $500, the Board shall provide review of applications within 120 days.
   2. (2) Each biennium, the Commissioner shall also set the fees for amendments to certificates of authority; initial reviews of branch campuses or extension centers; site visits to branch campuses or extension centers; and certificates of registration of agents.
   3. (3) The Commissioner shall report changes in the fees to the Board at a quarterly meeting.

4. (d) Board's review of applications.

   1. (1) The Commissioner, or the Commissioner's designated representatives, and an ad hoc team of independent consultants, if the Commissioner finds that such a team would provide a benefit to the Board or to the institution, may visit the institution and conduct an onsite survey to evaluate the application for a certificate of authority. The visiting team will be composed of people who have experience and knowledge relating to institutions of higher education.
   2. (2) The visiting team will prepare a written report of its findings regarding the institution's ability to meet the standards for a certificate of authority. This report will be provided to the applicant institution, which shall have 30 days within which to submit a written response.
   3. (3) The certification advisory council will review the findings of the visiting team and the response of the institution and submit to the Commissioner a recommendation concerning the application.
   4. (4) The Commissioner will forward to the Board the recommendation of the advisory council with his endorsement or with an alternate recommendation.
   5. (5) Upon approval of the Board to award a certificate of authority to an institution, the Commissioner will act immediately to prepare and forward the certificate. It shall state, at a minimum, that the institution is authorized to grant certain degrees, the issue date, and the period for which the certificate is valid.

   6. (6) If the Board denies an institution's application for a certificate of authority, or for renewal of its certificate of authority, the Commissioner shall notify the institution in writing of the denial and of the reasons for the denial.

      1. (A) The institution will not be eligible to reapply for a period of 180 days.
      2. (B) Until the certificate of authority is reinstated, the institution may not grant degrees or receive payments from students for courses which may be applicable toward a degree.
      3. (C) The subsequent application must show, in addition to all other requirements described herein, correction of the deficiencies which led to the denial.
      4. (D) The period of time during which the institution does not hold a certificate of authority shall not be counted against the 8-year period within which the institution must achieve accreditation from a recognized accrediting agency absent sufficient cause, as described in §7.7(c)(3) of this title (relating to Certificate of Authority--Eligibility, Applications, Renewals, and Amendments); the time period begins to run again upon reinstatement.
   7. (7) 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).

5. (e) Terms and limitations of a certificate of authority.

   1. (1) The certificate of authority to grant degrees is valid for a period of two years from the date of issuance.
   2. (2) Certification by the State of Texas is not accreditation, but merely a protection of the public interest while the institution pursues accreditation from a recognized agency, within the time limitations expressed in §7.7(c)(3) of this title. 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.

Source Note:The provisions of this §7.6 adopted to be effective February 24, 2008, 33 TexReg 1526.