Rules & Regulations of the State of Tennessee
Title 1540 - Higher Education Commission
Chapter 1540-01-10 - Regulation of Postsecondary Educational Institutions with Optional Expedited Authorization (oea)
Section 1540-01-10-.03 - ELIGIBILITY AND APPLICATION REQUIREMENTS

Universal Citation: TN Comp Rules and Regs 1540-01-10-.03

Current through September 24, 2024

(1) In order to receive OEA, a postsecondary educational institution must submit a signed OEA Application demonstrating that the institution meets the following eligibility requirements:

(a) Be accredited by an accrediting agency recognized by the U.S. Department of Education; and

(b) Provide the following information and documentation:
1. Evidence of institutional accreditation from an institutional accrediting agency recognized by the U.S. Department of Education indicating that the location for which authorization is being sought is accredited or properly recognized by the accreditor;

2. Documentation evidencing an established, clearly articulated, and comprehensive process for the resolution of student complaints. In order to be a comprehensive complaint process, the process must contain:
(i) A detailed explanation as to how a student escalates a grievance to the highest level at the authorized location, for example, to the institutional director;

(ii) An opportunity for all persons involved in the complaint to be heard at any final step at the authorized location level, including, but not limited to, an appeal;

(iii) An explanation as to how the institution will notify students that complaints not resolved at the authorized location level may be filed with the Commission; and

(iv) An explanation as to how students will be notified of the institution's comprehensive complaint process;

3. Documentation evidencing that the institution is authorized or exempt from authorization in the state where it is primarily located, if the institution is not authorized in Tennessee;

4. Documentation, if deemed necessary, evidencing that the institution meets and maintains financial standards and institutional stability acceptable by the accreditor for the purpose of maintaining accreditation or the United States Department of Education for the purpose of being a Title IV eligible institution;

5. A comprehensive list or verification of all programs offered at the institution along with, when applicable, documentation evidencing receipt of all requisite program approvals from subject matter expert state licensing agencies, boards, or commissions. Evidence shall be provided for any program designed to train a student for employment in a field where a license is required in order to be employed in that field. The evidence shall clearly demonstrate that the state agency, board, or commission has determined that the program meets the educational requirements necessary to receive a license or sit for a required exam. The comprehensive list or verification shall include, at a minimum, the following information:
(i) Program name;

(ii) DPSA assigned program code;

(iii) Credential awarded;

(iv) Credit hours or contact hours to be awarded;

(v) Length of time expected to complete the program;

(vi) Cost of program tuition;

(vii) Cost of other fees;

(viii) Program status;

(ix) A Classification of Instructional Programs (CIP) code;

(x) Whether programmatic accreditation is required for the program and the name of the accreditor that has reviewed and accredited the program; and

6. The website addresses to the most current version of the following information. The address should provide a reasonable person easy access to this information;
(i) Costs of attendance;

(ii) Information on whether academic credits attained are transferable to other institutions operating in Tennessee;

(iii) Executed articulation and transfer of credit agreements with other institutions operating in Tennessee, if applicable; and

(iv) Federal student cohort default rates.

7. A report of any illegal or unethical conduct by employees, agents, contractors, or third-party service providers related to the delivery of educational programs and services to students with any corrective action and remedies taken by the institution;

8. A description of the ownership of the institution and when applicable, a corporate flowchart or tree showing the institution's position in relationship to all affiliated legal entities;

9. The most recently calculated three-year (3) official cohort default rate from the Office of Federal Student Aid of the U.S. Department of Education;

10. Affirmation of the requirement to submit statistical data as described in Rule 1540-01-02-.18; and

11. Other than public institutions, a continuous institutional surety bond on the prescribed form.

(c) OEA will be granted for four (4) years, unless otherwise determined by the Executive Director or the Commission. Institutions with a four (4) year authorization term shall submit Certifications of Compliance as provided for in these rules in years one (1), two (2), and three (3) and an OEA Application as provided for in these rules in year four (4).

(d) Commission staff will review an OEA Application to determine whether the application demonstrates that the institution complies with all requisite standards. Upon such a finding and in the case of an initial application, Commission staff will recommend that the Executive Director grant the institution provisional initial authorization.
1. An award of provisional initial authorization shall be subject to review and ratification by the Commission.

2. If an award of provisional initial authorization is ratified by the Commission, authorization becomes OEA.

3. 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.

4. 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, or similar document, that the institution:
(i) Is authorized provisionally subject to ratification by the Commission, and

(ii) 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.

(e) In the event that an OEA Application fails to demonstrate that the institution complies with all requisite standards, Commission staff shall provide written notice of the deficiencies to the applicant and provide applicant two (2) opportunities to correct the deficiencies. Following the second failed attempt to correct deficiencies, the application may be denied or Commission staff will recommend that the Executive Director take adverse action, including but not limited to placing the institution on conditional authorization status, or revoking authorization.

(2) Certification of Compliance:

(a) Annually during the authorization term, institutions with optional expedited authorization shall file a Certification of Compliance by a due date to be established by Commission staff and posted on the Commission's website.

(b) The Certification of Compliance shall require at a minimum that the institution selfcertify that it is engaged in activities and operations in compliance with the Act and these rules, the institution provide an updated comprehensive program list, and the certification be signed by the institutional director and, if other than the institutional director, the owner or a representative thereof.

(c) Commission staff will review a Certification of Compliance and, upon finding that the certification demonstrates that the institution complies with all requisite standards, notify the institution of such. In the event that the Certification of Compliance fails to demonstrate that the institution complies with all requisite standards, Commission staff shall defer the Certification of Compliance by providing written notice of the deficiencies to the institution and providing the institution two (2) opportunities to correct the deficiencies. Following the second failed attempt to correct deficiencies, Commission staff may recommend that the Executive Director take adverse action, including but not limited to, placing the institution on conditional authorization status or revoking authorization.

(3) Change of Ownership Application:

(a) Authorization must be issued to the owner or governing body of the applicant institution and is nontransferable.

(b) A change of ownership occurs when a transaction results in the controlling interest in the postsecondary educational institution changing from an authorized owner to an unauthorized owner. In the event of a change of ownership, the new owner must submit to Commission staff within five (5) business days after the change in ownership is finalized:
1. A Change of Ownership Application and

2. A request that the Executive Director grant the new owner conditional authorization until the new owner obtains provisional initial authorization.

(c) The new owner shall submit an Initial Authorization Application as provided for in Rule Chapter 1540-01-02 or an Optional Expedited Authorization Application thirty (30) calendar days after the notice of conditional authorization.

(d) The Change of Ownership Application shall require that the new owner provide the sales contract, bill of sale, deed, or other documents necessary to transfer ownership of the institution.

(e) Commission staff will review a Change of Ownership Application and, upon finding that the application demonstrates that the institution complies with all requisite standards, grant the change of ownership and recommend that the Executive Director grant conditional authorization. In the event that the Change of Ownership Application fails to demonstrate that the institution complies with all requisite standards, Commission staff shall defer the application by providing written notice of the deficiencies to the applicant and providing applicant two (2) opportunities to correct the deficiencies. Following the second failed attempt to correct deficiencies, the application will be denied and the closure process described in Rule .23 of Rule Chapter 1540-01-02 may commence.

Authority: T.C.A. §§ 49-7-2005 and 49-7-2022; Acts 2016, Ch. 868; and 2022 Tenn. Pub. Ch. No. 1044.

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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