New York Codes, Rules and Regulations
Title 8 - EDUCATION DEPARTMENT
Chapter I - Rules of the Board Of Regents
Part 3 - University Of The State Of New York; State Education Department
Diplomas and Degrees
Section 3.58 - Proprietary college degree-conferring authority

(i) need for each degree program that the institution seeks to offer in New York based upon demand by students and/or employers and/or need of society for such programs, in accordance with section 137 of chapter 82 of the laws of 1995;

(ii) institutional capacity to operate as an institution in compliance with the Education Law, the program registration standards set forth in Part 52 of this Title and other federal and state statutes, regulations, and policies related to the operation of an institution;

(iii) financial resources to ensure satisfactory conduct of proposed degree programs, achievement of its institutional mission, and proposed educational goals;

(iv) performance outcomes that demonstrate that the institution and/or programs it operates are effective, where applicable; and

(v) that the individuals having ownership or control of the institution have a record free from evidence suggesting fraudulent and/or deceptive practices, including but not limited to misleading or misrepresentation in advertising.

(i) For those written applications that demonstrate sufficient initial evidence of meeting the requirements set forth in subdivision (b) of this section the Department shall notify the applicant in writing, and the applicant shall be subject to the secondary review procedures set forth in subdivision (c)(2).

(ii) For written applications that do not demonstrate sufficient initial evidence of meeting the requirements set in subdivision (b) of this section, the application will be closed without further action. The Department shall provide the applicant with the reasons for its decision in writing. The applicant may appeal the Department's decision to the Commissioner, within 10 days of the date of the Department's decision, and may submit additional information in support of its position in a timeframe determined by the Commissioner. Applicants whose applications have been closed may submit a new written application under the terms of subdivision (c)(1) no sooner than one year after the final determination to close the application.

(i) The Department shall review any available information concerning the applicant, including but not limited to information related to availability of financial resources, academic quality and performance, and consumer protections.

(ii) The Department may cause the applicant to undergo an in-person capacity interview and a site review, and may require the applicant to provide additional reports and/or information based on the findings from such review.

(iii) The Department shall conduct a canvass of existing degree-granting institutions in accordance with section 137 of chapter 82 of the laws of 1995.

(i) If the Deputy Commissioner determines the applicant meets the requirements set forth in subdivision (b) of this section, and that the findings from the review do not raise a substantial question about the likelihood of success, effectiveness, or consumer protections, she/he shall make a recommendation to the Commissioner and Board of Regents to grant provisional authorization. At a regularly scheduled public meeting, the Board of Regents shall consider the Deputy Commissioner's recommendation and make the determination on whether to grant the applicant provisional authorization.

(ii) If the Deputy Commissioner determines the applicant does not meet the requirements set forth in subdivision (b) of this section, or that findings from the review raise a substantial question about the likelihood of success, effectiveness, or consumer protections, she/he will not make a recommendation to the Board of Regents and the application shall be closed without further action. The Deputy Commissioner shall provide the applicant with the reasons for the decision in writing. The applicant may appeal the Deputy Commissioner's decision to the Commissioner, within 10 days of the date of the Deputy Commissioner's decision, and may submit additional information in support of its position in a timeframe determined by the Commissioner. If an application is closed, a new written application may be submitted under the terms of subdivision (c)(1) no sooner than one year after the final determination to close the application.

(i) At the Department's request, the institution shall provide the Department with information and reports concerning its performance and demonstration of progress toward meeting the requirements for permanent authorization.

(ii) At least 12 months prior to the end of the provisional authorization period, the institution must apply to the Department for permanent authorization, in accordance with the requirements of subdivision (d) of this section. An institution that fails to apply for permanent authorization by the end of its provisional period shall not be eligible for permanent authorization and its provisional authorization shall expire at the end of its provisional period.

(i) grant permanent authorization;

(ii) extend provisional authority for an additional period for the purposes of additional review in consideration of permanent authorization;

(iii) deny permanent authorization and extend the provisional authorization period with limited authority for the purposes of teach-out and closure; or

(iv) deny permanent authorization and direct immediate closure.

(i) Where the Board of Regents did not consent to the transfer of degree-conferring authority prior to the change of ownership or control of a proprietary college, and where there is no temporary transfer of degree-conferring authority based upon good cause, as prescribed in paragraph (7) of this subdivision, the institution shall cease all instruction creditable towards a degree until such time as the Board of Regents shall have consented to the transfer of degree-conferring authority, except as provided in subparagraph (ii) of this paragraph. The new owner shall meet the responsibilities prescribed in subdivision (h) of this section applicable when there is a cessation of degree-conferring authority. The new owner shall apply under the procedures of paragraph (6) of this subdivision to request the consent of the Board of Regents for the transfer of degree-conferring authority.

(ii) Cessation of instruction as prescribed in subparagraph (i) of this paragraph shall be held in abeyance during the time period that the department and the Board of Regents are reviewing an institution's properly submitted application for a temporary transfer of degree-conferring authority in accordance with the requirements of paragraph (7) of this subdivision. During this period of review, the Board of Regents shall confer degrees upon students of the institution who, in the judgment of the Regents, have duly earned such degrees.

(i) At least 180 days prior to the proposed date for consummation of the change of ownership or control of a proprietary college, the proprietary college holding degree-conferring authority shall inform the department in writing of the proposed change of ownership or control, and shall inform the prospective owner in writing that the Board of Regents must approve the transfer of degree-conferring authority of the proprietary college prior to the change of ownership or control of the institution, that such degree-conferring authority is not transferred when a proprietary college is purchased or other change of ownership or control takes place, and that the prospective owner must apply to the department for consent to the transfer of degree-conferring authority at least 150 days prior to the proposed date for the change of ownership or control of the proprietary college.

(ii) At least 150 days prior to the proposed date for the change of ownership or control of a proprietary college, the prospective owner shall apply to the department for the transfer of degree-conferring authority. The prospective owner shall submit to the department the following documentation which substantiates the prospective owner's capacity to operate the college:

(iii) The department may make site visits to the proprietary college for which transfer of degree-conferring authority is being requested and institutions operated by the prospective owner, and require the prospective owner to provide additional reports and documentation in support of its application.

(iv) The deputy commissioner shall review the information submitted by the prospective owner and information obtained during the department's site visits, and other information obtained by the department during the department's review for transfer of degree-conferring authority, and make a recommendation on the matter within 60 days of receipt of a complete application, as determined by the department. This recommendation shall include the factual basis for the recommendation and shall be sent to the prospective owner and the proprietary college.

(v) Within 15 days of receipt of the deputy commissioner's recommendation, the prospective owner may request the deputy commissioner to reconsider that recommendation, and may submit with the application for reconsideration additional written information in support of its position. If the prospective owner does not request reconsideration during this time frame, the deputy commissioner's recommendation shall be the final recommendation on the transfer of degree-conferring authority, transmitted to the Board of Regents.

(vi) If the prospective owner timely requests reconsideration, the deputy commissioner shall consider the additional written information submitted by the prospective owner and make a final recommendation on the transfer of degree-conferring authority within 30 days of receipt of the request for reconsideration. Such final recommendation shall include the factual basis for the recommendation and shall be sent to the prospective owner and the proprietary college, and transmitted to the Board of Regents.

(vii) Regents decision. At a regularly scheduled public meeting, the Board of Regents shall consider the findings and recommendations of the deputy commissioner and make the final determination on the transfer of degree-conferring authority.

(i) The Board of Regents may consent to a temporary transfer of degree-conferring authority after the change of ownership or control of the institution already has been made, upon an adequate showing of good cause by the institution. For purposes of this paragraph, good cause shall include but not be limited to, evidence satisfactory to the Board of Regents that conditions outside of the new owner's control caused the transfer of ownership or control of the institution prior to the institution obtaining the consent of the Board of Regents for the transfer of degree-conferring authority, provided that it is in the best interests of students at the institution to permit the institution to continue to offer degree programs.

(ii) The department shall review the institution's application for a temporary transfer of degree-conferring authority and may request other information from the institution during its review. The department shall make a recommendation to the Board of Regents concerning whether to grant consent to the temporary transfer of degree-conferring authority based upon good cause.

(iii) When the department determines that it is in the best interests of students of the institution, the department may require the institution to have a teach-out agreement with other institution(s) that is acceptable to the department, before making a positive recommendation to the Board of Regents that it grant consent to the temporary transfer of degree-conferring authority. The teach-out agreement shall be a written agreement between the institution requesting consent to the temporary transfer of degree-conferring authority and one or more degree-granting institutions. The agreement shall provide for the continuity of educational services to students enrolled in registered programs at the institution in the event that the Board of Regents does not consent to the transfer of degree-conferring authority after a review pursuant to paragraph (6) of this subdivision. To be acceptable to the department, the teach-out agreement shall ensure that the teach-out institution(s):

(iv) The Board of Regents consent to such temporary transfer may limit or condition the degree-conferring authority of the institution. Such temporary transfer shall be for an initial period not to exceed 180 days, but may be extended for such additional periods as determined by the Board of Regents.

(v) Before consent to a temporary transfer of degree-conferring authority may be granted, the new owner must also apply under the regular procedures of paragraph (6) of this subdivision for the review required for the transfer of degree-conferring authority.

(i) The department may review the capacity of a proprietary college to continue to have degree-conferring authority and may cause the institution to undergo site visits and require the institution to provide reports and written information in support of the continuation of degree-conferring authority. The department's review shall determine whether the institution violated substantive requirements of Part 52 of this Title that demonstrate that the institution does not have the ability to offer quality programs leading to the degree(s) covered by the revocation or that demonstrate that the institution must have limitations on degree-conferring authority to ensure the quality of the degree programs offered by the institution.

(ii) The deputy commissioner shall review the record relating to the denial of re-registration of programs leading to the degree(s) covered by the revocation, information submitted by the institution and information obtained during the department's site visits, and other information obtained during the department's review of the institution for continuing degree-conferring authority. Based upon such review, the deputy commissioner may recommend that the Board of Regents revoke in whole or in part or otherwise limit the authority of a proprietary college to confer degrees upon sufficient cause, meaning the institution violated substantive requirements of Part 52 of this Title that demonstrate that the institution does not have the ability to offer quality programs leading to the degree(s) covered by the revocation or that demonstrate that the institution must have limitations on degree-conferring authority to ensure the quality of the degree programs. This recommendation shall include the factual basis for the recommendation and shall be sent to the institution.

(iii) Within 30 days of receipt of the deputy commissioner's recommendation to revoke or limit degree-conferring authority, the institution may request the deputy commissioner to reconsider that recommendation, and may submit with the application for reconsideration additional written information in support of its position. If the institution does not request reconsideration during this time frame, the deputy commissioner's recommendation shall be the final recommendation on whether the degree-conferring authority shall be revoked in whole or part or limited, and such recommendation shall be transmitted to the Board of Regents.

(iv) If the institution timely requests reconsideration, the deputy commissioner shall consider the additional written information submitted by the institution and make a final recommendation to the Board of Regents on whether to revoke in whole or part or limit degree-conferring authority of the institution. Such final recommendation shall include the factual basis for the recommendation and shall be sent to the institution and transmitted to the Board of Regents.

(v) Within 30 days of receiving the final recommendation of the deputy commissioner, the proprietary college may submit to the Board of Regents a written response to the deputy commissioner's final recommendation, which may include supporting affidavits, exhibits, and documentary evidence and may present legal argument. In such written response, the proprietary college may at its discretion request an opportunity for oral argument.

(vi) The matter shall be reviewed by a panel of the Board of Regents consisting of at least three Regents designated by the Chancellor of the Board of Regents. This panel shall hear oral argument, if requested by the proprietary college in its written response as prescribed in subparagraph (v) of this paragraph. At this oral argument, representatives of the proprietary college and the deputy commissioner may speak and present additional documentary evidence and written submissions. After its consideration of the deputy commissioner's recommendation, the written response of the proprietary college, if any, and oral argument and documentary evidence and written submissions taken at oral argument, if any, the designated Regents panel shall make a recommendation to the full Board of Regents as to whether the degree-conferring authority shall be revoked in whole or part or limited. Such recommendation shall include the factual basis for the recommendation.

(vii) Regents decision. At a regularly scheduled public meeting, the Board of Regents shall consider the findings and recommendations of the designated Regents panel and make the final determination on whether the degree-conferring authority of the institution shall be revoked in whole or part or limited.