1. (a) A career school or college not otherwise exempt under Chapter 132 of the Texas Education Code or §7.4 of this chapter (relating to Obtaining a Certificate of Authorization or a Certificate of Authority to Operate in Texas) must have approval from the Board in order to grant associate of applied science or associate of applied arts degrees or to enroll students for courses that may be applicable toward those associate degrees. A career school or college that does not have approval to grant associate degrees must request approval from the Board in conjunction with an application for a new degree program as specified in subsection (h) of this section. If approved, the Board shall issue a certificate of authority.

2. (b) A career school or college may submit an application for a certificate of authority to grant degrees to the Board if it:

   1. (1) has been legally operating, enrolling students, and conducting classes in Texas and has complied with state law as a non degree-granting institution for a minimum of two (2) years;
   2. (2) has been legally operating, enrolling students, and conducting classes in Texas and has complied with state law as a degree-granting institution and wishes to open a new campus; or
   3. (3) has been legally operating as a degree-granting institution in another state for a minimum of four (4) years and can verify compliance with all applicable laws and rules in that state.

3. (c) Application for a Certificate of Authority.

   1. (1) Letter of Intent. A career school or college seeking degree granting authority shall submit a letter of intent for a new program application as outlined in subsection (h) of this section
   2. (2) Initial visit. A member of the Board staff shall visit the proposed school to verify compliance with Board standards and policies.

   3. (3) Submission of the application for a certificate of authority, which shall include the following documentation:

      1. (A) a description of the purpose of the institution;
      2. (B) names of sponsors or owners of the institution;
      3. (C) regulations, rules, constitutions, bylaws, or other regulations established for the governance and operation of the institution;
      4. (D) the names and addresses of the chief administrative officer, the principal administrators, and each member of the board of trustees or other governing boards;
      5. (E) a full description of the admission requirements;
      6. (F) a description of the facilities, learning resources, and equipment utilized by the institution;
      7. (G) evidence of approval from the Texas Workforce Commission. The Board will not approve an application for a Certificate of Authority unless the Texas Workforce Commission has approved the institution to offer a course of instruction.
      8. (H) the application for Approval of a New Workforce Program, as specified in subsection (h) of this section.
   4. (4) Follow-up visit. A member of the Board staff may make a follow-up visit to the proposed site for the applicant school prior to implementation of the workforce education program(s).
   5. (5) Fee. The applicant institution shall submit a fee as required under §7.7(c) of this chapter (relating to Certificate of Authority).

4. (d) Commissioner Action on an Application for a Certificate of Authority.

   1. (1) The Commissioner or his/her designee shall approve or disapprove the application for a certificate of authority. Approval of the application grants the career school or college the authority to award associate's degrees or to enroll students for courses that may be applicable toward an associate degree. Separate program approval shall be required for each associate degree program in accordance with this chapter.
   2. (2) Approval for each specified associate degree program continues in effect unless the Commissioner withdraws or suspends the certificate of authority and/or approval for a specific program because of the institution's failure to comply with Board rules, regulations, and/or policies or because the Texas Workforce Commission revokes the institution's approval to operate. The certificate of authority remains the property of the Board; an institution shall return its certificate of authority in the event the Commissioner withdraws the certificate of authority, the institution voluntarily terminates all associate degree programs, or the institution closes.
5. (e) Career schools and colleges holding a certificate of authority to grant an associate degree shall make available, upon request by the Board, all accrediting agency reports and any findings and institutional responses to such reports and findings.
6. (f) If cited by an accreditor, a career school or college authorized to grant the associate degree shall, within 30 days of receipt of the accrediting agency's final report, provide the Board with a copy of the citation, the accreditor's final report, and a complete report of all subsequent actions by both the accreditor and the institution.
7. (g) A career school or college shall operate all associate degree programs in compliance with the standards of its institutional and/or program-level accreditation or with membership in a trade or professional association.

8. (h) New Program Application. Each career school or college wishing to offer a new associate degree program shall complete the following items and submit them to Board staff:

   1. (1) Letter of Intent. The applicant school shall submit a letter of intent no less than 30 and not more than 180 days prior to the submission of the application for Approval of a New Workforce Program.
   2. (2) Application for Approval of a New Workforce Program. The chief executive officer and, if applicable, the governing board of the career school or college shall approve the application for Approval of a New Workforce Program. The applicant school shall ensure that Board staff receive the application for Approval of a New Workforce Program no less than three (3) calendar months prior to the intended implementation date or approval deadline for external accreditation, whichever occurs first.

   3. (3) Statement of Assurances. The chief executive officer and, if applicable, the governing board of the career school or college shall approve the Statement of Assurances. The applicant school shall submit the Statement of Assurances with the application for Approval of a New Workforce Program. The following criteria are included in the Statement of Assurances:

      1. (A) The institution has documented need for the proposed program based on national, regional, and/or local economic forecasts applicable to its target market area.
      2. (B) The institution has identified sufficient employment opportunities within its target market area for the projected number of graduates, taking into consideration the numbers of graduates of similar programs within its target market area.
      3. (C) Instruction in basic workforce skills has been integrated into the curriculum for the proposed program.
      4. (D) Each program award offers at least one of the following: a capstone, an external learning experience, or eligibility to sit for a certification or licensure examination.
      5. (E) All course and program prerequisites are identified on the proposed curriculum outline and included in the credit/contact hour totals for the program.
      6. (F) An enrollment management plan for the program is in place.
      7. (G) The program is consistent with all requirements from other registering, certifying, licensing, and/or accrediting authorities.
      8. (H) An advisory committee composed of representatives from business and industry has been directly involved in the creation of the proposed program.
      9. (I) Adequate funding is available to cover all program costs for the first three years.
      10. (J) The institution is in good standing with its accreditor and the Texas Workforce Commission.
      11. (K) The institution is not currently a defendant in a legal proceeding or has notified the Board according to provisions in this chapter.
   4. (4) Fee. The applicant school shall submit the fee for an application for Approval of a New Workforce Education Program simultaneously with the application.
9. (i) New Program Approval. The Board staff shall review the application and accompanying documentation for satisfactory fulfillment of the new program requirements and procedures for a new certificate of authority and/or new workforce education program. The staff shall confer with the career school or college when additional information or clarification is needed.
10. (j) Board staff shall recommend schools and/or associate degree programs to the Commissioner for approval or disapproval or referral to the Board.
11. (k) The Board delegates to the Commissioner final approval authority for all schools and/or associate degree programs that meet Board policies for approval.

12. (l) The Commissioner shall forward a school and/or program application to the Board for consideration at an appropriate quarterly meeting if:

    1. (1) the proposed program is the subject of an unresolved grievance or dispute between the institution and other colleges or universities; and/or
    2. (2) the Commissioner has disapproved the proposed school and/or program and the institution has requested a Board review at the next quarterly Board meeting.
13. (m) A career school or college offering an associate degree program at multiple sites shall seek separate approval of each program of study for each site.
14. (n) The Commissioner shall automatically withdraw approval for any associate degree program not implemented in accordance with Board rules, regulations, and/or policies, and/or not implemented within eighteen (18) months of the date of approval.
15. (o) Program Revision. Each career school or college requesting a program revision shall submit a completed application for Program Revision.
16. (p) A career school or college may close a program voluntarily with the approval of the Commissioner or his designee.

17. (q) Concurrent instruction of students enrolled in an associate degree program or in any component of a degree program is prohibited. The following activities do not constitute concurrent instruction:

    1. (1) voluntary participation in laboratory and/or skill-building activities outside of required lecture and laboratory class sessions;
    2. (2) voluntary participation in study and/or review sessions outside of required lecture and laboratory class sessions;
    3. (3) sitting for proctored examinations;
    4. (4) field trips; or
    5. (5) extracurricular activities.

18. (r) Institutional effectiveness. When applying for a certificate of authority to grant applied associate degrees and/or for a new applied associate degree program, the institution must demonstrate, for as long as the program(s) are operational, that:

    1. (1) it is in full compliance with all oversight, regulatory, and accrediting bodies' requirements;

    2. (2) it meets the following institutional effectiveness measures for each existing program for the last consecutive three-year period:

       1. (A) for those occupations where state or national licensure, certification, or other credentialing examinations exist, at least ninety (90) percent of program graduates pass the credentialing examination;
       2. (B) if the pass rate for graduates from the applicant institution is no more than five (5) percent below the state or national average for the examination;
       3. (C) a minimum of fifteen (15) students graduated over the course of the last three years; or
       4. (D) within one (1) year of graduation, at least seventy (70) percent of graduates are employed in the field for which they are trained, in full-time military service, or pursuing additional education. If the institution must include graduates who are pursuing additional education in order to meet the seventy (70) percent standard, the institution shall include a list of those graduates and official supporting documentation. Official documentation must be from the institution the student is attending. If the institution must include graduates who are full-time military in order to meet the seventy (70) percent standard, the institution shall include a list of those graduates and a copy of their military orders.
    3. (3) For institutions located in Texas, agency staff shall use the data the institution reported to the Texas Workforce Commission for the most recent consecutive three (3) year period.
    4. (4) For institutions located outside of Texas, the institution shall submit employment data for the institution according to the Texas Workforce commission definition of "employed" or "employment, and "completer" for the most recent consecutive three-year period.

19. (s) Associate of Occupational Studies (AOS) Degree--Texas has three career schools or colleges awarding the AOS degree: Universal Technical Institute, Southwest Institute of Technology, and Western Technical Institute. The AOS degree shall be awarded in only the following fields: automotive mechanics, diesel mechanics, refrigeration, electronics, and business. Each of the three Institutions may continue to award the AOS degree for those fields listed above and shall be restricted to those fields.

    1. (1) The Board shall not consider new AOS degree programs in other fields from the three career schools or colleges.
    2. (2) The Board shall not consider new AOS degree programs from any other career schools or colleges.
    3. (3) A career school or college authorized to grant the AOS degree shall not represent such degree by using the terms "associate" or "associate's" without including the words "occupational studies." An institution authorized to grant the AOS degree shall not represent such degree as being the equivalent of the AAS or AAA degrees.

20. (t) Closure of a Career School or College

    1. (1) The governing board, owner, or chief executive officer of a career school or college 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. (2) If a career school or college closes unexpectedly, the governing board, owner, or chief executive officer of the school shall provide the Board with written notification immediately.
    3. (3) If a career school or college 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 career school or college authorized by the Board to hold a Certificate of Authority according to this section, with a school accredited by a recognized accrediting agency, or with a public two-year college. The agreement shall be in writing, shall be subject to Board approval, and 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. (4) The Certificate of Authority for a career school or college is automatically withdrawn when the institution closes. The Commissioner may grant to a career school or college that has a Certificate of Authority temporary approval to award a degree(s) in a program the institution does not have approval for in order to facilitate a formal agreement as outlined under this section.

       1. (A) The curriculum and delivery shall be appropriate to accommodate the remaining students.
       2. (B) 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.

Source Note:The provisions of this §7.9 adopted to be effective May 27, 2008, 33 TexReg 4134; amended to be effective August 25, 2008, 33 TexReg 6812.