1. (a) A school may apply to the Commission for an exemption under §132.002 or §132.003 of the Texas Education Code.
2. (b) The Commission shall grant the requested exemption if the Commission determines that the school meets the requirements for an exemption under §132.002 or §132.003 of the Texas Education Code.
3. (c) The Commission may deny or revoke an exemption in the same manner as a denial or revocation of a certificate of approval, if the Commission determines that the school does not meet the requirements for the exemption under §132.002 or §132.003 of the Texas Education Code.
4. (d) A school may appeal the denial or revocation of an exemption in accordance with the provisions of Subchapter D of the Texas Education Code.

5. (e) A school applying for an exemption from the provisions of Texas Education Code §132.002(a)(6) must provide evidence that:

   1. (1) the school has a certificate of authorization from the Coordinating Board to grant baccalaureate or higher-level degrees or a letter from the Coordinating Board indicating that Coordinating Board approval is not required;
   2. (2) the school is accredited by a Coordinating Board--recognized accrediting body;

   3. (3) the school is in good standing with the designated accrediting body and not subject to:

      1. (A) probation;
      2. (B) a directive to show cause as to why accreditation should not be revoked; or
      3. (C) any other action that, as defined by the accrediting agency, will prevent the school from seeking approval of its degree programs; and

   4. (4) at least a simple majority (51 percent) of credits earned in the educational programs of the school are transferable to educational programs that are:

      1. (A) at an equivalent or higher academic level (e.g., baccalaureate to baccalaureate or higher);
      2. (B) at a junior college, college, or university supported entirely or partly by taxation from a local or state source; and
      3. (C) within the same local/regional service area as the offered program, as determined by the Agency.

Source Note:The provisions of this §807.7 adopted to be effective September 17, 2007, 32 TexReg 6378; amended to be effective November 14, 2016, 41 TexReg 9020.