An institution which does not meet the definition of institution of higher education contained in Texas Education Code §61.003, is accredited by a Board recognized accreditor, and is interested in offering degrees or courses leading to degrees in the State of Texas must follow the requirements in paragraphs (1) - (5) of this section.

1. (1) Authorization to Offer Degrees or Courses Leading to Degrees in Texas.

   1. (A) Each institution and/or campus location must submit a letter of intent to offer degree(s) or courses leading to degrees in Texas containing the following information:

      1. (i) Name of the institution;
      2. (ii) Physical location of campus;
      3. (iii) Name and contact information of the Chief Administrative Officer of the campus;
      4. (iv) Name of accreditor;
      5. (v) Level of degree and degrees authorized by CIP code;
      6. (vi) Acknowledgement of substantive change notification and data reporting requirements contained in §7.11 of this chapter (relating to Changes of Ownership and Other Substantive Changes) and §7.13 of this chapter (relating to Data Reporting), respectively;
      7. (vii) Texas Workforce Commission Certificate of Approval or a Texas Workforce Commission exemption from Texas Education Code, Chapter 132.
   2. (B) Coordinating Board staff will verify information and accreditation status and upon confirmation, will provide a Certificate of Authorization to offer in Texas those degrees or courses leading to degrees for which it is accredited.
2. (2) An institution that has requested a Certificate of Authorization but has not received final authorization from its accrediting agency may be granted a Conditional Certificate of Authorization. The Conditional Certificate of Authorization is an acknowledgment that the institution has qualified for an exemption from Board rules based on the main campus' accreditation and is authorized to offer degrees and courses that lead to a degree. The Conditional Certificate of Authorization will be authorized until such time as the institution is granted accreditation or for a period of one year, whichever occurs first. The conditions will be outlined in the Conditional Certificate of Authorization letter that will accompany the Conditional Certificate of Authorization. If accreditation has not been achieved by the expiration date the Conditional Certificate of Authorization will be withdrawn, the institution's authorization to offer degrees will be terminated, and the institution will be required to comply with the provisions of §7.8 of this chapter (relating to Institutions Not Accredited by a Board Recognized Accreditor).

3. (3) Grounds for Revocation of Certificate of Authorization.

   1. (A) Institution loses accreditation from Board recognized accreditor.
   2. (B) Institution's Accreditor is removed from the U.S. Department of Education or the Coordinating Board's list of approved accreditors.
   3. (C) Institution fails to comply with data reporting or substantive change notification requirements.
   4. (D) Institution offers degrees for which it does not have accreditor approval.

4. (4) Process for Removal of Authorization.

   1. (A) Commissioner notifies institution of grounds for revocation as outlined in paragraph (3) of this section.
   2. (B) 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 or alternate certificate of authority to grant degrees, or has received a determination that it did not lose its qualification for a certificate of authorization.
   3. (C) Within ten (10) days of its receipt of the Commissioner's notice, the institution must respond and offer proof of its continued qualification for the exemption, or submit data as required by §7.13 of this chapter.
   4. (D) 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. (E) If a determination under this section is adverse to an institution, it shall become final and binding unless, within forty-five (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 Dispute Resolution).

5. (5) Closure of an Institution.

   1. (A) The governing board, owner, or chief executive officer of an institution that plans to cease operation shall provide the Board with written notification of intent to close at least ninety (90) days prior to the planned closing date.
   2. (B) If an institution closes unexpectedly, the governing board, owner, or chief executive officer of the school shall provide the Board with written notification immediately.
   3. (C) If an institution closes or intends to close before all currently enrolled students have completed all requirements for graduation, the institution shall assure the continuity of students' education by entering into a teach-out agreement with another institution authorized by the Board to hold a Certificate of Authority, with an institution operating under a Certificate of Authorization, with a public two-year college, or with a public four-year university. The agreement shall be in writing, shall be subject to Board approval, shall contain provisions for student transfer, and shall specify the conditions for completion of degree requirements at the teach-out institution. The agreement shall also contain provisions for awarding degrees.
   4. (D) The Certificate of Authorization for an institution is automatically withdrawn when the institution closes. The Commissioner may grant to an institution that has a degree-granting authority temporary approval to award a degree(s) in a program for which the institution does not have approval in order to facilitate a formal agreement as outlined under this section.
   5. (E) The curriculum and delivery shall be appropriate to accommodate the remaining students.
   6. (F) No new students shall be allowed to enter the transferred degree program unless the new entity seeks and receives permanent approval for the program(s) from the Board.
   7. (G) The institution shall transfer all academic records pursuant to §7.5(d) of this chapter (relating to Administrative Penalties and Injunctions).

Source Note:The provisions of this §7.7 adopted to be effective December 6, 2009, 34 TexReg 8515; amended to be effective May 26, 2010, 35 TexReg 4152.