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) - (4) of this
section.
(1) Authorization to Offer Degrees or Courses Leading
to Degrees in Texas.
(A) Each institution and/or campus location must submit
an application for a Certificate of Authorization to offer degree(s)
or courses leading to degrees in Texas. The application form for the
Certificate of Authorization may be found on the Board's website.
The application must contain the following information:
(i) Name of the institution;
(ii) Physical location of campus, or in the case of
only providing clinicals or internships in Texas, the physical location
of all clinical or internship sites, number of students in clinicals
or internships and start and end date of clinicals or internships;
(iii) Name and contact information of the Chief Administrative
Officer of the campus and name and contact information of the designated
Single Point of Contact as defined in §7.3 of this chapter (relating
to Definitions). In the case of an application based on clinicals
or internships, name and contact information of clinical or internship
site supervisors;
(iv) Name of Board-recognized accreditor;
(v) Level of degree, degree program name, and CIP code
as authorized by the Board-recognized accreditor;
(vi) Documentation of notification to students and
potential students of any program which does not make the graduate
eligible to take required professional examinations in that field
or to practice regulated professions in that field in Texas;
(vii) Dates of accreditation granted by the Board-recognized
accreditor.
(I) If the institution or a location in Texas is currently
subject to a negative or adverse action by its Board-recognized accreditor
which has not resulted in a sanction, the institution must provide
documentation explaining the reasons for the action and actions taken
to reverse the negative or adverse action.
(II) If the institution or a location in Texas is currently
subject to a sanction by its Board-recognized accreditor, the institution
must provide documentation explaining the reasons for the action and
actions taken to comply with the accrediting agency's standards or
criteria, including a timeline for returning to compliance, in order
to maintain accreditation.
(III) If the institution applies based on accreditation
of its main campus while seeking final approval for the new Texas-based
campus from its Board-recognized accreditor and the Texas Workforce
Commission, the institution must provide documentation from its accreditor
acknowledging that a decision on campus accreditation can be made
within fifteen (15) months of the issuance of a provisional Certificate
of Authorization.
(viii) Acknowledgement of student complaint procedure,
compliance with the institutional accrediting agency's standards for
operation of institutions, annual review reporting requirements, substantive
change notification, and student data reporting requirements contained
in this section, §§1.110 - 1.120 of this title (relating
to Student Complaint Procedure), §7.4 of this chapter (relating
to Standards for Operation of Institutions), §7.11 of this chapter
(relating to Changes of Ownership and Other Substantive Changes),
and §7.13 of this chapter (relating to Student Data Reporting),
respectively;
(ix) Texas Workforce Commission Certificate of Approval
or a Texas Workforce Commission exemption or exclusion from Texas
Education Code, Chapter 132;
(x) Disclosure of most recent United States Department
of Education financial responsibility composite score, including applicable
academic year for score. If the institution has a score under 1.5,
the institution must provide documentation of all actions taken since
date of calculation to raise the score.
(xi) Documentation of reserves, lines of credit, or
surety instruments that, when combined with tuition and fee receipts,
are sufficient to allow the institution to fulfill its educational
obligations for the current term to its enrolled students if the institution
is unable to continue to provide instruction to its enrolled students
for any reason.
(I) A surety instrument includes, but is 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 associations, partnership, corporation, or
other entity whose membership is comprised of postsecondary institutions.
(II) The documented reserves, lines of credit, or surety
instruments must be:
(-a-) In a form and amount acceptable to the Board;
(-b-) In an amount equal to or greater than the cost
of providing a refund, including administrative costs associated with
processing claims, for the maximum prepaid, unearned tuition and fees
of the institution for a period or term during the applicable academic
year for which programs of instruction are offered, including, but
not limited to, on a semester, quarter, monthly, or class basis; except
that the period or term of greatest duration and expense shall be
utilized for this computation where an institution's year consists
of one or more such periods or terms;
(-c-) Conditioned to provide indemnification to any
student or enrollee of the school or his/her parent or guardian determined
by the Board to have suffered loss of prepaid tuition or any fees
as a result of violation of any minimum standard or as a result of
the institution ceasing operation, provide evidence satisfactory to
the Board of its financial ability to provide such indemnification,
and list the amount of surety liability the guaranteeing entity will
assume; and
(-d-) Held in Travis County, Texas, and conditioned
to allow only the Board to withdraw funds for the benefit of persons
identified in clause (ii) of this subparagraph.
(III) The institution shall include a letter signed
by an authorized representative of the institution showing in detail
the calculations made pursuant to this section and explaining the
method used for computing the amount of the reserves, lines of credit
or surety instrument.
(B) Board staff will verify information and accreditation
status. Upon determination that an institution is in good standing
with its Board recognized accreditor, has sufficient financial resources,
and, if applicable, has provided sufficient documentation of correcting
accreditation or financial issues, Board staff will provide a Certificate
of Authorization to offer in Texas those degrees or courses leading
to degrees for which it is accredited. If an institution is only providing
clinicals or internships in the state of Texas, a Certificate of Authorization
will be issued for the institution to offer in the state of Texas
identified clinicals or internships in connection with those degrees
or courses leading to degrees for which the institution is accredited.
The Certificate of Authorization will be issued to the institution
by name, city and state.
(C) Certificates of Authorization are subject to annual
review for continued compliance with the Board-recognized accreditor's
standards of operation, student complaint processes, financial viability,
and accurate and fair representation in publications, advertising,
and promotion.
(i) Institutions must submit the following documentation
on an annual basis for Board staff review and recommendation to the
Board for continuation or revocation of the Certificate of Authorization:
(I) Annual audited financial statements, issued less
than one year from time of submission, prepared in accordance with
Generally Accepted Accounting Principles by an independent certified
public accountant;
(II) Documentation of reserves, lines of credit, or
surety instruments that, when combined with tuition and fee receipts,
are sufficient to allow the institution to fulfill its educational
obligations for the current term to its enrolled students if the institution
is unable to continue to provide instruction to its enrolled students
for any reason. Institutions under a Certificate of Authorization
as of September 1, 2017 are required to provide documentation of reserves,
lines of credit, or surety instruments going forward with the 2019
annual compliance review.
(III) Certification that the institution is providing
accurate and fair representation in publications, advertising, and
promotion, including disclosure to students and potential students
of any program which does not make the graduate eligible to take required
professional examinations in that field or to practice regulated professions
in that field in Texas. The institution shall further certify that
it is maintaining any advertising used in Texas for a minimum of five
years and shall make any such advertisements available to the Board
for inspection upon request.
(IV) An annotated copy of the student catalog or student
handbook showing compliance with the principles addressed in §7.4
of this chapter with cross-reference to the operational standards
of its institutional accrediting agency;
(V) A copy of the institution's student complaint policy,
links to online student complaint procedures and forms, and summary
of all complaints made by Texas residents or students enrolled at
a Texas-based institution concerning the institution in accordance
with §§1.110 - 1.120 of this title. The complaint summary
shall include complaints which have been filed, with the institution,
its accrediting agency, or the Board within the 12 months prior to
the annual review reporting date and shall indicate whether pending
or resolved;
(VI) Official statement of current accreditation status
and any pending or final actions that change the institution's accreditation
status from the institution's Board-recognized accreditor, including
changes in degree levels or programs offered approvals, changes in
ownership or management, changes in name, and changes in physical
location within the 12 months prior to the annual review reporting
date;
(VII) Information regarding heightened cash monitoring
or other changes that affect students' federal financial aid eligibility
through the US Department of Education;
(VIII) Attestation that all documentation submitted
is true and correct and continued acknowledgement of student complaint
procedure, annual review reporting requirements, substantive change
notification, and student data reporting requirements contained herein
this section, §§1.110 - 1.120 of this title, §§7.4,
7.11, 7.13, and 7.15 of this chapter, respectively.
(ii) Annual reviews are conducted based on an institution's
name and initial date of authorization.
(I) Institutions with names starting with "A" through
"O" must submit annual review documentation by January 15 of each
year. The Board will review staff recommendations at the annual July
Board meeting.
(II) Institutions with names starting with "P" through
"Z" must submit annual review documentation by July 15 of each year.
The Board will review staff recommendations at the annual January
Board meeting.
(III) Institutions that have received their first Certificate
of Authorization less than six months from the due date for submission
of annual review documentation may wait to submit documentation until
the following annual review submission date.
(iii) Prior to making a recommendation to the Board,
staff has discretion to conduct a site visit at the institution if
warranted by facts disclosed in the annual review documentation. The
Board-recognized accreditor will be notified and invited to participate.
(D) Certificates of Authorization for institutions
offering degrees or courses leading to degrees at a physical location
in Texas, upon Board staff recommendation after annual review, expire
at the end of the grant of accreditation by the Board-recognized accreditor.
(i) If a new grant of accreditation is awarded by the
Board-recognized accreditor, the Certificate of Authorization may
be renewed upon submission of documentation of the new grant of accreditation.
(ii) If an institution changes recognized accreditors,
the institution must submit a new application for a Certificate of
Authorization.
(E) Certificates of Authorizations based solely on
providing clinicals or internships in Texas expire one year from date
of issuance.
(i) If clinicals or internships are ongoing in Texas,
the Certificate of Authorization based solely on providing clinicals
or internships in Texas must be renewed on an annual basis. At least
thirty (30) days, but no more than ninety (90) days, prior to the
expiration of the current Certification of Authorization, an institution,
if it desires renewal, is required to provide updated information
regarding the physical location of all clinical or internship sites,
number of students in clinicals or internships, and the start and
end date of the clinicals or internships.
(ii) The Board shall renew the Certificate of Authorization
based solely on providing clinicals or internships in Texas if it
finds that the institution has maintained all requisite standards.
(F) Certificates of Authorization for Texas-based campuses
which are provisionally-granted based on their main campus' accreditation
expire at the end of fifteen (15) months.
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