Rules & Regulations of the State of Tennessee
Title 1540 - Higher Education Commission
Chapter 1540-01-02 - Authorization and Regulation Of Regularly Authorized Postsecondary Educational Institutions
Section 1540-01-02-.21 - AUTHORIZATION STATUS
Universal Citation: TN Comp Rules and Regs 1540-01-02-.21
Current through September 24, 2024
(1) Provisional Initial Authorization:
(a) An award of
provisional initial authorization shall be subject to review and ratification
by the Commission.
(b) If an award
of provisional initial authorization is ratified by the Commission,
authorization becomes regular or conditional as determined by the
Commission.
(c) If an award of
provisional initial authorization is not ratified by the Commission, the
institution shall cease all activities and operations as directed by Commission
staff in accordance with the Act and these rules.
(d) An institution awarded provisional
initial authorization may engage in activities and operations; however,
limitations as to time, procedures, functions, or other conditions may be
imposed as deemed necessary. Such limitations may include, but not be limited
to, notifying prospective students in the enrollment agreement that the
institution:
1. Is authorized provisionally
subject to ratification by the Commission, and
2. Notwithstanding Rule .17 of these rules,
must refund all moneys paid by or on behalf of prospective or enrolled students
in the event that the Commission does not ratify the award of provisional
authorization thereby requiring the institution to cease activities or
operations such that students are unable to begin or complete the program of
enrollment.
(2) Regular Authority:
(a) Provisional authorization shall become
regular authorization following review and ratification of the
Commission.
(3) Conditional Authorization or Registration:
(a)
Conditional authorization or registration is authorization or program
registration, but with conditions, such as reporting requirements, performance
standard requirements, securing new or additional bonds, a limited period of
time to operate such as during change of ownership, or for the purpose of
teaching out existing students. Institutions with conditional authorization or
registration may also be required to suspend or cease any part of institutional
activity, such as enrolling students, advertising, or conducting specific
classes or programs. Such suspension or cessation shall remain in effect until
activities precipitating the condition are corrected and Commission staff has
completed all related reviews and investigations. Conditional authorization or
registration may be issued when deemed necessary to protect the public
interest.
(b) An institution may
request conditional authorization, including, but not limited to, suspension of
the operation, rather than expose the institution to adverse action, for
situations such as unexpected loss of lease, extended inactivity, or
reorganization.
(c) Nothing in this
section shall be construed to absolve institutions of their educational and
financial obligations to currently enrolled students.
(4) Revocation of Authorization or Program Registration:
(a) Revocation of authorization
or program registration is the immediate and complete withdrawal of the
institution's authorization or program registration to enroll, advertise, or
operate a postsecondary educational institution in the state.
(b) Possible grounds for immediate revocation
of authorization or program registration include but are not limited to:
1. Loss of right to use the authorized
location without immediate notification to the Commission;
2. Instances where a principal party has been
or is involved with a postsecondary educational institution that ceased or
ceases operation resulting in a loss of time or money for enrollees or
prospective students, or that had or has its institutional authorization in a
state revoked;
3. A pattern of
deceptive practices;
4. Failure to
correct any situation that resulted in conditional authorization or program
registration within a reasonable time period to be determined by the Executive
Director;
5. Disregard for any
specific directive issued by the Commission, the Executive Director, or
Commission staff;
6. Failure to pay
assessed fines;
7. Closing an
institution without proper notification to the Commission or failure to
complete all required closure obligations; and
8. Failure to submit a Certification of
Compliance by the required due date or a Reauthorization Application by the
authorization term expiration.
(c) Revocation of authorization or program
registration shall not relieve an institution of complete compliance with the
requirements in these rules applicable to an institution closing, including,
but not limited to, refunds to students, arranging instructional teachouts, and
securing the disposition of student records.
Authority: T.C.A. §§ 49-7-2004, 49-7-2005, 49-7-2008, and 49-7-2010.
Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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