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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 §7.7Institutions Accredited by Board-Recognized Accreditors

      (i) If accreditation has not been achieved by the expiration date, the provisionally-granted Certificate of Authorization will be withdrawn, the institution's authorization to offer degrees will be terminated, and the institution will be required to comply with the provisions of §7.8 of this chapter (relating to Institutions Not Accredited by a Board-Recognized Accreditor).

      (ii) Subsequent provisionally-granted Certificates of Authorization will not be issued.

      (iii) At least ninety (90) days prior to expiration of the certificate, institutions operating under a provisionally-granted Certificate of Authorization must submit either an application for a Certificate of Authorization under this section or an application for a Certificate of Authority under §7.8 of this chapter.

    (G) Institutions under an existing Certificate of Authorization must immediately notify the Board if the institution or its main campus becomes subject to a sanction by its Board-recognized accreditor. The institution must provide documentation explaining its current status 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.

  (2) Restrictions Placed on Institution under Sanctions by Its Accreditor

    (A) If an institution is under sanctions by its accreditor, limitations appropriate for the sanction shall be placed upon the institution's Certificate of Authorization. Limitations may include, but are not limited to:

      (i) Restrictions on adding degree programs to its authorization;

      (ii) An increase in the amount of financial reserves, lines of credit or surety instrument required to maintain a Certificate of Authorization; and

      (iii) Review every six months, including unannounced site visits.

    (B) The Board will notify the institution via letter of all restrictions placed upon its Certificate of Authorization due to its accreditors' sanctions.

    (C) The Board will place a notice of all sanctions placed upon an institution via the Board's website.

    (D) Restrictions and public notification will be removed upon written documentation from the institution's accreditor that all sanctions have ended.

  (3) Grounds for Revocation of any Certificate of Authorization.

    (A) Institution no longer holds a Certificate of Approval or Letter of Exemption issued by the Texas Workforce Commission.

    (B) Institution loses accreditation from Board-recognized accreditor.

    (C) Institution's Accreditor is removed from the U.S. Department of Education or the Board's list of approved accreditors.

      (i) If the institution's Certificate of Authorization is revoked due to its accrediting agency's removal from the U.S. Department of Education and/or the Board's list of approved accreditors, the Board, or Board staff as delegated, shall set a provisional time period within which institutions may continue to operate, not to exceed any provisional time period set by the United States Department of Education.

      (ii) If the institution's Certificate of Authorization is revoked due to its accrediting agency's removal from the U.S. Department of Education or the Board's list of approved accreditors, a request to extend its Certificate of Authorization for the provisional time period set under paragraph (2)(C) of this section, must be submitted to the Commissioner within ten (10) days of publication, by either the U.S. Department of Education or the Board, of such revocation.

    (D) Institution fails to comply with data reporting, substantive change notification requirements, or annual review reporting requirements.

    (E) Board staff recommends revocation based on deficiencies in compliance with the principles addressed in §7.4 of this chapter as evidenced by lack of compliance with the Board-recognized accreditor's standards, which are found in annual review documentation and not corrected by the institution upon request by Board staff.

    (F) Institution offers degrees for which it does not have accreditor approval.

  (4) Process for Removal of Authorization.

    (A) Commissioner notifies institution of grounds for revocation as outlined in paragraph (2) of this section unless paragraph (2)(C) above applies and the Board sets a provisional time period for compliance.

    (B) Upon receipt of the notice of revocation, the institution shall not enroll new students and may only grant or award degrees or offer courses leading to degrees in Texas to students enrolled on the date of notice of revocation until it has either been granted a Certificate of Authority to grant degrees, or has received a determination that it did not lose its qualification for a Certificate of Authorization.

    (C) Within ten (10) days of its receipt of the Commissioner's notice, the institution must provide, as directed by Board staff, one or more of the following:

      (i) proof of its continued qualification for the exemption; or

      (ii) submit data as required by §7.13 of this chapter; or

      (iii) a plan to correct any non-compliance or deficiencies which lead to revocation; or

      (iv) a plan to seek new Board-recognized accreditation; or

      (v) written intention to apply for a Certificate of Authority within 60 days of the notice of revocation; or

      (vi) a written teach-out plan, which must be approved by Board staff before implementation.

    (D) After reviewing the evidence, the Commissioner will issue a notice of determination, which in the case of an adverse determination, shall contain information regarding the reasons for the denial, and the institution's right to a hearing.

    (E) If a determination under this section is adverse to an institution, it shall become final and binding unless, within forty-five (45) days of its receipt of the adverse determination, the institution invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).

    (F) If a determination allows the institution to continue operating, a new Certificate of Authorization will be provisionally-granted. Provisions for continued operation under the new Certificate of Authorization may include, but are not limited to:

      (i) requirements to provide updates to Board staff on a monthly basis;

      (ii) continued progress toward full compliance with all Board rules and requirements;

      (iii) continued progress toward new Board-recognized accreditation, if applicable, or toward approval for a Certificate of Authority; and

      (iv) other requirements imposed by the Board.

    (G) Certificates of Authorization which are provisionally-granted after a notice of revocation continue only as long as the institution complies with all such provisions.

  (5) Closure of an Institution.

    (A) The governing board, owner, or chief executive officer of an institution 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.

    (B) If an institution closes unexpectedly, the governing board, owner, or chief executive officer of the school shall provide the Board with written notification immediately.

    (C) If an institution 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 institution authorized by the Board to hold a Certificate of Authority, with an institution operating under a Certificate of Authorization, or with a public or private institution of higher education as defined in Texas Education Code §61.003. The agreement shall be in writing, shall be subject to Board approval, 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.

    (D) The Certificate of Authorization for an institution is automatically withdrawn when the institution closes. The Commissioner may grant to an institution that has a degree-granting authority temporary approval to award a degree(s) in a program for which the institution does not have approval in order to facilitate a formal agreement as outlined under this section.

    (E) The curriculum and delivery shall be appropriate to accommodate the remaining students.

    (F) 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.

    (G) The institution shall transfer all academic records pursuant to §7.15 of this chapter (relating to Academic Records Maintenance, Protection, and Repository of Last Resort).


Source Note: The provisions of this §7.7 adopted to be effective December 6, 2009, 34 TexReg 8515; amended to be effective May 26, 2010, 35 TexReg 4152; amended to be effective November 29, 2010, 35 TexReg 10497; amended to be effective February 26, 2013, 38 TexReg 1152; amended to be effective August 15, 2013, 38 TexReg 5070; amended to be effective November 23, 2016, 41 TexReg 9113; amended to be effective February 28, 2018, 43 TexReg 1068

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