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TITLE 19EDUCATION
PART 1TEXAS HIGHER EDUCATION COORDINATING BOARD
CHAPTER 7DEGREE GRANTING COLLEGES AND UNIVERSITIES OTHER THAN TEXAS PUBLIC INSTITUTIONS
SUBCHAPTER AGENERAL PROVISIONS
RULE §7.8Institutions Not Accredited by a Board-Recognized Accreditor

An institution which is not accredited by a Board-recognized accreditor and which does not meet the definition of institution of higher education contained in Texas Education Code, §61.003, must follow the Certificate of Authority process in paragraphs (1) - (9) of this section in order to offer degrees or courses leading to degrees in the state of Texas. Institutions are encouraged to contact the Board staff before filing a formal application.

  (1) Certificate of Authority Eligibility.

    (A) The Board will accept applications for a Certificate of Authority only from those applicants:

      (i) proposing to offer a degree or credit courses leading to a degree; and

      (ii) which meet one of the following conditions:

        (I) has been legally operating, enrolling students, and conducting classes in Texas and has complied with state law as either a non-degree-granting institution or an exempt institution only offering degrees in religious disciplines for a minimum of two (2) years;

        (II) has been legally operating, enrolling students, and conducting classes in Texas and has complied with state law as a degree-granting institution and seeks to open a new campus;

        (III) 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; or

        (IV) does not meet one of the three previous operational history conditions, but meets additional application and review requirements for its initial application, and agrees to meet additional conditions, restrictions, or reporting requirements during its first two years of operation under a Certificate of Authority. The Certificate of Authority will be issued with written, specific conditions, restrictions, or reporting requirements placed upon the institution.

    (B) To be considered by the Board as operating, means to have assembled a governing board, developed policies, materials, and resources sufficient to satisfy the requirements for a Certificate of Authority, and either have enrolled students and conducted classes or accumulated sufficient financing to do so for at least one year upon certification based on reasonable estimates of projected enrollment and costs. Sufficient financing may be demonstrated by proof of an adequate surety instrument meeting requirements as defined in §7.16 of this subchapter (relating to Financial Protections for Student Tuition and Fees), including but not limited to, a surety bond, an assignment of a savings or escrow account, certificate of deposit, irrevocable letter of credit, or a properly executed participation contract with a private association, partnership, corporation, or other entity whose membership is comprised of postsecondary institutions.

  (2) Certificate of Authority Restrictions for Professional Degrees.

    (A) The Board may not issue a Certificate of Authority for a private postsecondary institution to grant a professional degree, as defined in §7.3 of this title (relating to Definitions), or to represent that credits earned in this state are applicable toward a degree unless the Board determines there is evidence of program need and institutional ability, including but not limited to the following:

      (i) capacity and ability of similar professional degree programs at institutions of higher education and private or independent institutions of higher education are insufficient to meet the state's current market needs;

      (ii) the institution seeking the certificate of authority:

        (I) has the necessary faculty and other resources to ensure student success; and

        (II) is subject to and agrees to meet the same standards for approval and all academic criteria applicable to similar professional degree programs offered by institutions of higher education and private or independent institutions of higher education (as defined under Texas Education Code, §61.003).

      (iii) sufficient placements are available to students for required field-based experience, such as clinicals or clerkships, for the proposed professional degree.

    (B) The Board may not issue a Certificate of Authority for a private postsecondary institution to grant a professional degree or to represent that credits earned in this state are applicable toward a degree if the institution is chartered in a foreign country or has its principal office or primary educational program in a foreign country.

  (3) Certificate of Authority Application Submission and Requirements.

    (A) An applicant must submit an application to the Board to be considered for a Certificate of Authority to offer identified proposed degree(s), and courses which may be applicable toward a degree, in Texas.

      (i) Applications must be submitted as an original and a copy in an electronic format as specified by Board staff, and accompanied by the application fee described in paragraph (3) of this section.

      (ii) A single desk review of the application will be conducted to determine completeness and readiness for a site team visit.

      (iii) The desk review may be done, in consultation with Board staff, by a reviewer who will act as the site review team leader if the application is deemed complete and ready for a site team visit.

      (iv) The desk reviewer, in consultation with Board staff, may make three possible recommendations. Board staff will make a final determination on acceptability of the application based on one of the three recommendations:

        (I) The application is determined to be foundationally incomplete in one or more Standards for Operation of Institutions as described in §7.4 of this chapter and not ready for submission. A foundationally incomplete application is one where the Standards for Operation of Institutions have not been met to such a degree that the institution is unlikely to be sustainable or operational.

        (II) The application may be resubmitted after incorporating revisions or additions suggested by the reviewer. The revisions or additions must allow the application to meet all Standards for Operation of Institutions.

        (III) The application is acceptable and ready for a site review visit.

      (v) If the application is foundationally incomplete and not ready for submission, a portion of the application fee, if not expended during the desk review, may be returned and another application may not be submitted for one year from the date of rejection of the foundationally incomplete application.

    (B) The application form for the Certificate of Authority may be found on the Board's website.

    (C) The Certificate of Authority application must include:

      (i) The name and address of the institution;

      (ii) The purpose and mission of the institution;

      (iii) Documentary evidence of compliance with paragraph (1)(A)(i)-(ii) of this section;

      (iv) Documentary evidence of either a Letter of Exemption or Certificate of Approval from the Texas Workforce Commission pursuant to Texas Education Code, Chapter 132;

      (v) Documentary evidence of articles of incorporation or other Texas-authorized organizational documents, regulations, rules, constitutions, bylaws, or other regulations established for the governance and operation of the institution;

      (vi) Identification, by name and contact information, of:

        (I) The sponsors or owners of the institution;

        (II) The designated Single Point of Contact as defined in §7.3 of this chapter (relating to Definitions);

        (III) The chief administrative officer, the principal administrators, and each member of the board of trustees or other governing board;

        (IV) Identification of faculty who will, in fact, teach in each program of study, including identification of colleges attended and copies of transcripts for every degree held by each faculty member;

      (vii) Information regarding each degree or course leading to a degree which the applicant proposes to offer, including a full description of the proposed degree or degrees to be awarded and the course or courses of study prerequisite thereto;

      (viii) A description of the facilities and equipment utilized by the applicant, including, if applicable, all equipment, software, platforms and other resources used in the provision of education via online or other distance education;

      (ix) Detailed information describing the manner in which the applicant complies with each of the Standards of Operations of Institutions contained in §7.4 of this chapter (relating to Standards for Operations of Institutions);

Cont'd...

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