(a) Change of Ownership or Control for Career Schools
and Colleges. In the event of a change in ownership or control of
a career school or college, the Certificate of Authority or Certificate
of Authorization is automatically void unless the institution meets
the requirements of this section.
(b) The Commissioner may authorize the institution
to retain the Certificate of Authority or Certificate of Authorization
during and after a change of ownership or control, provided that the
institution notifies Board staff of the impending transfer in time
for staff to receive, review, and approve the documents listed in
paragraphs (1) - (4) of this subsection and provided that the following
conditions are met:
(1) The institution must submit acceptable evidence
that the new owner is complying with all Texas Workforce Commission
requirements regarding the purchase or transfer of ownership of a
career school or college;
(2) The institution must submit an acceptable written
statement of assurance that the new owner understands and undertakes
to fully comply with all applicable Board rules, regulations, and/or
policies;
(3) The institution must submit documentation that
the new owner has been approved by the institution's Board-recognized
accreditor to operate the institution or is able to meet the requirements
of the existing Certificate of Authority; and
(4) The institution must submit satisfactory evidence
of financial ability to adequately support and conduct all approved
programs. Documentation shall include but may not be limited to independently
audited financial statements and auditor's reports and assurance that
the new owner does not currently own or operate any institutions under
financial restrictions for, or is not permanently debarred from participating
in, federal financial aid by the United States Department of Education.
Individuals who become new owners of an institution may be required
to submit independently audited personal financial records to show
evidence of financial ability to adequately support and conduct all
approved programs.
(c) If the institution does not meet the conditions
outlined under this section prior to completion of transfer of ownership
or control and the institution loses its Certificate of Authority
or Certificate of Authorization, the new owner(s) shall submit a new
application for a Certificate of Authority as outlined under §7.8
of this chapter (relating to Institutions Not Accredited by a Board-Recognized
Accreditor) or a new application for a Certificate of Authorization
as outlined under §7.7 of this chapter (relating to Institutions
Accredited by Board-Recognized Accreditors).
(d) Any modification of an approved degree program
that results from a change of ownership or control constitutes a program
revision. Requests for approval of program revisions or other substantive
changes as defined in §7.3 of this chapter (relating to Definitions)
shall conform to the procedures and requirements contained in §7.7
and §7.8 of this chapter.
(e) If the ownership or control of a career school
or college is transferred within, among, or between different subsidiaries,
branches, divisions, or other components of a corporation and if said
transfer in no way diminishes the career school or college's administrative
capability or educational program quality, the Commissioner may permit
the school to retain its Certificate of Authority or Certificate of
Authorization during the transfer period. In such cases, the career
school or college shall fully comply with all provisions outlined
in this section.
(f) All notifications regarding changes of ownership
or other substantive changes, as defined in §7.3 of this chapter
(relating to definitions), should be provided to the Board via the
institution's designated Single Point of Contact.
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Source Note: The provisions of this §7.11 adopted to be effective December 6, 2009, 34 TexReg 8515; amended to be effective May 26, 2010, 35 TexReg 4152; amended to be effective February 26, 2013, 38 TexReg 1152; amended to be effective November 23, 2016, 41 TexReg 9113; amended to be effective February 28, 2018, 43 TexReg 1068; amended to be effective March 2, 2020, 45 TexReg 1395 |