1. (a) Eligibility to apply. The Board will accept applications for a certificate of authority only from those institutions:

   1. (1) proposing to offer a degree or credit courses alleged to be applicable to a degree; and
   2. (2) which have been in operation in Texas and have complied with Texas statutes as non degree-granting institutions or educational or training establishments for a minimum of two years. As a minimum, "in operation" means to enroll students and to conduct classes.

2. (b) Application for certificate of authority.

   1. (1) Institutions seeking a certificate of authority are urged to contact the Board's Institutional Certification Office before filing a formal application.
   2. (2) Applications must be submitted with an original and four copies and accompanied by the fee described in §7.5(c) of this title (relating to Administrative Procedures Related to Certification of Nonexempt Institutions).
   3. (3) Documentary evidence of compliance with subsection (a)(2) of this section must be filed with the application.
   4. (4) 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.

3. (c) Renewal of certificate of authority.

   1. (1) At least 180 days, but no more than 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 §7.5(c) of this title (relating to Administrative Procedures Related to Certification of Nonexempt Institutions).
   2. (2) 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.
   3. (3) An institution may be granted consecutive certificates of authority for no longer than eight years. Absent sufficient cause, at the end of the eight years, the institution must be accredited by a recognized accrediting agency.
   4. (4) Subject to the restrictions of paragraph (3) of this subsection, the Board shall renew the certificate if it finds that the institution has maintained all requisite standards and is making progress toward accreditation.

   5. (5) The Board shall consider the application of any accreditation standard that prohibits accreditation of an institution solely on the basis of religious policies practiced by the institution as sufficient justification for extending the institution's eligibility for certification to grant degrees of a religious nature only, if the institution:

      1. (A) has applied for and pursued accreditation in good faith;
      2. (B) meets all other standards at the level of accreditation; and
      3. (C) satisfies all other requirements of the Board.

4. (d) Amendments to a certificate of authority.

   1. (1) 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.
   2. (2) Applications for amendment shall be accompanied by the fee described in §7.5(c) of this title (relating to Administrative Procedures Related to Certification of Nonexempt Institutions).
   3. (3) If the Board finds that the new program of study meets the required standards, the Board may amend the institution's certificate accordingly.

5. (e) Authority to represent transferability of course credit. Any institution as defined in §7.3 of this title (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:

   1. (1) the other institution is named in such representation, and is accredited by an accrediting agency listed in §7.4(a)(1) of this title (relating to Definitions);
   2. (2) the courses are identified for which credit is claimed to be applicable to the degree programs at the other institution; and
   3. (3) 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 by their accrediting agencies, and is filed with the Board.

6. (f) Duty to Report.

   1. (1) Institutions holding a certificate of authority will be required to:

      1. (A) furnish a list of their agents to the Board; and
      2. (B) maintain records of students enrolled, credits awarded, and degrees awarded, in a manner specified by the Board.
   2. (2) Any change in principal location, ownership, governance, administrative personnel, faculty, or facilities at the institution, or any other changes relevant to the Board's standards for certification, shall be reported to the Board within ten days of the change by the chief administrative officer of the institution in order for the Board to determine if such changes adversely affect the conditions under which the certificate was granted.
7. (g) If an order, decision, or determination made pursuant to this section is adverse to an institution, the reasons therefore shall be detailed in a notice to the institution. The order, decision, or determination shall become final and binding unless, within 45 days of its receipt of the adverse order, decision, or 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 §7.6 adopted to be effective May 29, 2003, 28 TexReg 4131; amended to be effective August 15, 2006, 31 TexReg 6327.