| (K) Upon denial, an applicant that has met the previous
operational history conditions described by paragraph (1)(A)(ii)(I)-(III)
of this section may not reapply for a period of one hundred eighty
(180) days from date of denial.
(L) Upon denial, an applicant that has not met the
previous operational history conditions described by paragraph (1)(A)(ii)(I)-(III)
of this section may not reapply for a period of one year from date
of denial.
(5) Terms and Limitations of a Certificate of Authority.
(A) The Certificate of Authority to grant degrees is
valid for a period of two (2) years from the date of issuance.
(B) Certification by the state of Texas is not accreditation,
but merely a protection of the public interest while the institution
pursues accreditation from a recognized agency, within the time limitations
expressed in subparagraph (A) of this paragraph. Therefore, the institution
awarded a Certificate of Authority shall not use terms to interpret
the significance of the certificate which specify, imply, or connote
greater approval than simple permission to operate and grant certain
specified degrees in Texas. Terms which may not be used include, but
are not limited to, "accredited," "supervised," "endorsed," and "recommended"
by the state of Texas or agency thereof. Specific language prescribed
by the Commissioner which explains the significance of the Certificate
of Authority shall be included in all publications, advertisements,
and other documents where certification and the accreditation status
of the institution are mentioned.
(C) Institutions holding a Certificate of Authority
will be required to:
(i) furnish a list of their agents to the Board;
(ii) maintain records of students enrolled, credits
awarded, and degrees awarded, in a manner specified by the Board;
and
(iii) report any substantive change, including changes
in administrative personnel, faculty, or facilities.
(D) Institutions that, upon application, did not meet
one of the three previous operational history conditions described
by paragraph (1)(A)(ii)(I)-(III) of this section, in addition to the
requirements of subparagraph (C) of this paragraph, are required to
provide, at the end of the first year of the initial Certificate of
Authority:
(i) Documentary evidence of continued exemption or
approval from the Texas Workforce Commission pursuant to Texas Education
Code, Chapter 132;
(ii) Current audited financial statements, including
a balance sheet, income statement, statement of changes in net worth,
and statement of cash flow, updated since issuance of the initial
Certificate of Authority;
(iii) Documentation of continued validity of any required
financial surety instrument;
(iv) Current enrollment, retention, and graduation
numbers for students in all approved degree programs; and
(v) An updated accreditation plan, including any progress
made toward obtaining Board-recognized accreditation identified in
the initial application or a change in plans to apply for accreditation
with another Board-recognized accreditation agency.
(E) Authority to Represent Transferability of Course
Credit. Any institution as defined in §7.3 of this chapter, whether
it offers degrees or not, may solicit students for and enroll them
in courses on the basis that such courses will be credited to a degree
program offered by another institution, provided that:
(i) the other institution is named in such representation,
and is accredited by a Board-recognized accrediting agency or has
a Certificate of Authority;
(ii) the courses are identified and documented for
which credit is claimed to be applicable to the degree programs at
the other institution; and
(iii) the written agreement between the institution
subject to these rules and the accredited institution is approved
by both institutions' governing boards in writing, and is filed with
the Board.
(6) Amendments to a Certificate of Authority.
(A) An institution seeking to amend its Certificate
of Authority to award a new or different degree during the period
of time covered by its current Certificate of Authority may file an
application for amendment, on forms provided by the Board upon request,
subject to the following exceptions:
(i) An institution with no previous operational history
described by paragraph (1)(A)(ii)(I)-(III) of this section which has
been granted a Certificate of Authority may not apply for an amendment
during the period of time covered by its initial Certificate of Authority.
(ii) An institution with operational history described
by paragraph (1)(A)(ii)(I)-(III) of this section which has been granted
a Certificate of Authority may not apply for an amendment within the
first one hundred eighty (180) days after the grant of its initial
Certificate of Authority.
(iii) An institution with operational history described
by paragraph (1)(A)(ii)(I)-(III) of this section which has been granted
a Certificate of Authority with restrictions may not apply for an
amendment during the period of time covered by the restricted Certificate
of Authority.
(iv) An institution seeking to discontinue a degree
program, without closure of the institution, shall assure the continuity
of students' education by entering into a teach-out agreement with:
(I) another institution authorized by the Board to
hold a Certificate of Authority;
(II) an institution operating under a Certificate of
Authorization; or
(III) a public or private institution of higher education
as defined in Texas Education Code §61.003.
(v) The teach-out agreement shall be in writing, shall
be subject to Board staff 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.
(B) Applications for amendments shall be accompanied
by the fee described in paragraph (3) of this subsection for each
amendment to an existing degree or for each application to award a
new or different degree.
(C) Based upon the information contained in the application
for amendment, the Commissioner or his/her designee may utilize an
outside consultant, the Certification Advisory Council, or both, to
review the application for amendment in order to make a recommendation
to the Board.
(D) Upon Board approval that the new or revised degree
program meets the required standards, the Board shall amend the institution's
Certificate of Authority accordingly.
(E) A change of degree level or additional program
would require an amended Certificate of Authority prior to beginning
the program.
(7) Renewal of Certificate of Authority.
(A) At least one hundred eighty (180) days, but no
more than two hundred ten (210) days, prior to the expiration of the
current Certificate of Authority, an institution seeking renewal shall
make application to the Board on forms provided upon request. The
renewal application must include any applications for or renewal of
accreditation by national or regional accrediting agencies. The renewal
application shall be accompanied by the fee described in paragraph
(3) of this subsection.
(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
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