| (x) If applicable, institutions accredited by entities
which are not recognized by the Board must submit all accrediting
agency reports and any findings and institutional responses to such
reports and findings for ten years immediately preceding the application
for a Certificate of Authority. Accreditation by entities which are
not recognized by the Board does not allow an institution to offer
a degree or courses leading to a degree without a Certificate of Authority
to offer such degree or courses;
(xi) A written accreditation plan, identifying:
(I) The Board-recognized accrediting agency with which
the applicant intends to apply for institutional accreditation;
(II) The planned timeline for application with and
approval by the Board-recognized accrediting agency;
(III) Any contacts already made with the Board-recognized
accrediting agency, including supporting documents.
(xii) Any additional information which the board may
request.
(D) An applicant that does not meet the previous operational
history conditions described by paragraph (1)(A)(ii)(I)-(III) of this
section must be able to demonstrate it is able to meet all Standards
for Operation of Institutions found in §7.4 of this chapter through
documentation and/or possession of adequate resources. Such demonstration
includes, but is not limited to:
(i) Executed agreements with all administration and
faculty identified in the application;
(ii) Complete curriculum, assessment, and learning
tools for each proposed degree;
(iii) Possession of all listed facilities and resources.
(E) An applicant that does not meet the previous operational
history conditions described by paragraph (1)(A)(ii)(I)-(III) of this
section may not apply for a graduate degree or for more than one area
of study as part of its initial application for a Certificate of Authority.
(4) Fees Related to Certificates of Authority.
(A) Each biennium the Board shall set the fees for
applications for Certificates of Authority, which shall not exceed
the average cost, in the preceding two fiscal years, of staff time,
review and consultation with applicants, and evaluation of the applications
by necessary consultants, including the cost of such consultants.
(B) Each biennium, the Board shall also set the fees
for amendments to add additional degree programs to Certificates of
Authority.
(C) The Commissioner shall request changes in the fees
at a Board quarterly meeting.
(5) Authorization Process.
(A) Based upon the information contained in the application,
the Commissioner or his/her designee shall determine whether a site
review team is necessary. A site review team is always required for
applications for an initial Certificate of Authority.
(B) A site review team shall be composed of no fewer
than three (3) members, all of whom have experience and knowledge
in postsecondary education. The combined team experience and knowledge
shall be sufficient to review all applicable standards of the agency.
(C) An institution must demonstrate it is prepared
to be fully operational as of the date of the on-site evaluation;
i.e., it must have in-hand or under contract all the human, physical,
administrative, and financial resources necessary to demonstrate its
capability to meet the standards for nonexempt institutions.
(D) The conditions found at the institution as of the
date of the on-site evaluation review team's visit will provide the
basis for the team's evaluation and report, the Certification Advisory
Council's recommendation, the Commissioner's recommendation, and the
Board's determination of the institution's qualifications for a Certificate
of Authority.
(E) The site review team shall conduct an on-site review
of the institution and prepare a report regarding the institution's
ability to meet the Standards of Operation.
(F) The applicant shall have thirty (30) days in which
to respond in writing to the report.
(G) The Certification Advisory Council shall review
the site review team's report and the applicant's response and make
a recommendation regarding disposition to the Board and Commissioner.
(i) If the applicant has no previous operational history
as described by paragraph (1)(A)(ii)(I)-(III) of this section, the
Council shall make recommendations for additional conditions, restrictions,
or reporting requirements during the first two years of operation
under a Certificate of Authority.
(ii) If the applicant has previous operational history
as described by paragraph (1)(A)(ii)(I)-(III) of this section, the
Council may make recommendations for additional conditions, restrictions,
or reporting requirements during the first two years of operation
under a Certificate of Authority.
(H) The Commissioner shall make his/her recommendation
regarding the application to the Board. The Commissioner's recommendation
shall be made independent of the Certification Advisory Council's
recommendation. The Commissioner may make recommendations for additional
conditions, restrictions, or reporting requirements for the time the
institution is operating under a Certificate of Authority.
(I) After review of the Commissioner's and Council's
recommendations, if the Board approves the application, the Commissioner
shall immediately have prepared a Certificate of Authority containing
the issue date, a list of the approved degree(s) or courses leading
to degrees, and the period for which the Certificate is valid. If
applicable, the Certificate of Authority will be issued with any written,
specific conditions, restrictions, or reporting requirements placed
upon the institution and approved by the Board.
(J) After review of the Commissioner's and Council's
recommendations, if the Board does not approve the application, the
Commissioner shall immediately notify the applicant of the denial
and the reasons for the denial.
(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.
(6) 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
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