The Texas Higher Education Coordinating Board (Coordinating Board) proposes new §§1.110 - 1.120, concerning the Student Complaint Procedure. The U.S. Department of Education has promulgated Program Integrity regulations which require each state to have "a process to review and appropriately act on complaints concerning higher education institutions including enforcing applicable State laws" in order for the institution to be legally authorized by the state and eligible for federal Title IV funds. In December 2011, the Office of the Attorney General of Texas issued an opinion stating in pertinent part that the Coordinating Board has authority to promulgate procedures for handling complaints about postsecondary educational institutions under Texas Education Code, §61.031. To that end, the Coordinating Board has established a complaint procedure to review student complaints regarding public and private (non-profit, not-for-profit and for-profit) higher education institutions in Texas. That procedure is outlined in these new sections.

Sections 1.110 - 1.119 provide that students will exhaust all of the institutions' grievance and appeal procedures prior to the Coordinating Board's investigation of complaints; Coordinating Board staff members will investigate student complaints, make recommendations for the resolution of the complaints, and refer certain student complaints to other agencies or entities; and the Commissioner of Higher Education will issue written determinations dismissing complaints or requiring institutions to take specific actions to remedy complaints or forward certain complaints to the Board for its determination.

Section 1.120 authorizes the Commissioner to: issue written determinations dismissing complaints, require institutions to take specific action(s) to remedy complaints, or forward to the Board complaints regarding institutional integrity for its consideration and determination. Texas Education Code, §61.031 authorizes the Coordinating Board to investigate and resolve student complaints.

Mr. William Franz, General Counsel, has estimated that for each year of the first five years the new sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rules, except to the extent that institutions of higher education are required to provide certain directory information to students and except to the extent the proposed rules may require the Coordinating Board to hire one or more full-time employees in order to handle, investigate, and resolve the student complaints as contemplated in these rules.

Mr. Franz has also determined that for each year of the first five years the new sections are in effect, the public benefits anticipated as a result of administering the new sections will be to encourage the early resolution of student complaints through use of the institutions' grievance procedures and to establish clear procedures for the administration of all student complaints filed with the Coordinating Board. There is no effect on small businesses. Other than as noted, there are no anticipated economic costs to persons who are required to comply with the subchapter as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to William Franz, P.O. Box 12788, Austin, Texas 78711, (512) 427-6143, william.franz@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under Texas Education Code, §61.031, which provides the Coordinating Board with the authority to establish policies and procedures relating to complaint investigation and resolution; §61.028, which provides that the Board can delegate these responsibilities to the Commissioner; and §61.027, which provides the Coordinating Board with the authority to adopt and publish rules and regulations to effectuate the provisions of Chapter 61 of the Texas Education Code.

The new sections affect Texas Education Code, §61.031.