(B) The application for renewal of the Certificate
of Authority will be evaluated in the same manner as that prescribed
for evaluation of an initial application, except that the renewal
application must include the institution's record of improvement and
progress toward accreditation. Evaluation of the renewal application
will include review of compliance with any specific conditions, restrictions,
or reporting requirements placed upon the institution during the period
of the previous Certificate of Authority and whether continuation
or addition of conditions, restrictions or reporting requirements
is warranted.
(C) An institution may be granted consecutive Certificates
of Authority for a total grant of no longer than eight (8) years.
Absent sufficient cause, at the end of the eight (8) years, the institution
must be accredited by a recognized accrediting agency.
(D) Subject to the application and authorization restrictions
of this section, the Board shall renew the certificate if it finds
that the institution has maintained all requisite standards and is
making sufficient progress toward accreditation by a Board-recognized
accrediting agency.
(8) Revocation of Certificate of Authority.
(A) Grounds for revocation include:
(i) Institution no longer holds a Certificate of Approval
or Letter of Exemption issued by the Texas Workforce Commission; or
(ii) Institution fails to comply with substantive change
notification and data reporting requirements as outlined in §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; or
(iii) Institution offers degrees or courses leading
to a degree for which it does not have Board approval; or
(iv) Institution fails to maintain the Standards of
Operation as defined in §7.4 of this chapter; or
(v) Failure to comply with the requirement to submit
all accrediting agency correspondence, reports, or findings and institutional
responses to such correspondence, reports, and findings if an institution
is accredited by entities which are not recognized by the Board; or
(vi) Failure to fully comply with any additional conditions,
restrictions, or reporting requirements placed upon the institution
as part of its current Certificate of Authority.
(B) Process for revocation of Certificate of Authority
to offer degrees in Texas:
(i) Board notifies institution of grounds for revocation
as outlined in this paragraph via registered or certified mail;
(ii) Within ten (10) days of its receipt of the Commissioner's
notice, the institution must either cease and desist operations or
respond and offer proof of its continued qualification for the authorization,
and/or submit data as required by this chapter;
(iii) 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;
(iv) 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).
(C) Without a valid Certificate of Authority, the institution
must immediately cease and desist all operations, including granting
degrees, offering courses leading to degrees, receiving payments from
students for courses which may be applicable toward a degree, or enrolling
new students.
(i) If an institution must cease and desist operations,
within forty-five (45) days of the adverse determination becoming
final and binding, the institution must 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.
(ii) The teach-out agreement shall be in writing, shall
be subject to Board staff approval prior to implementation, 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) Reapplication After Revocation of Certificate of
Authority.
(i) The institution will not be eligible to reapply
for a period of one hundred eighty (180) days.
(ii) The subsequent application must show, in addition
to all other requirements described herein, correction of the deficiencies
which led to the denial.
(iii) The period of time during which the institution
does not hold a Certificate of Authority shall not be counted against
the eight (8) year period within which the institution must achieve
accreditation from a Board-recognized accrediting agency absent sufficient
cause, as described in paragraph (7)(C) of this section; the time
period begins to run again upon reinstatement.
(9) Closure of an Institution.
(A) The governing board, owner, or chief executive
officer of an institution that plans to cease operation in the state
of Texas 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 prior to implementation, 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 Authority for an institution
is automatically withdrawn as of the date the institution closes.
The Commissioner may grant to an institution that has existing 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.
(i) The curriculum and delivery shall be appropriate
to accommodate the remaining students.
(ii) No new students shall be admitted to the transferred
degree program unless the new entity seeks and receives permanent
approval for the program(s) from the Board, or Board staff, as delegated,
or the transferred degree program already has such approval.
(E) 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).
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Source Note: The provisions of this §7.8 adopted to be effective December 6, 2009, 34 TexReg 8515; amended to be effective November 29, 2010, 35 TexReg 10497; amended to be effective February 26, 2013, 38 TexReg 1152; amended to be effective November 24, 2013, 38 TexReg 8434; amended to be effective March 4, 2014, 39 TexReg 1363; amended to be effective November 23, 2016, 41 TexReg 9113; amended to be effective February 28, 2018, 43 TexReg 1068 |