Texas Administrative Code
Title 19 - EDUCATION
Part 1 - TEXAS HIGHER EDUCATION COORDINATING BOARD
Chapter 7 - DEGREE GRANTING COLLEGES AND UNIVERSITIES OTHER THAN TEXAS PUBLIC INSTITUTIONS
Subchapter A - GENERAL PROVISIONS
Section 7.8 - Institutions Not Accredited by a Board-Recognized Accreditor
Universal Citation: 19 TX Admin Code § 7.8
Current through Reg. 50, No. 13; March 28, 2025
An institution which is not accredited by a Board-recognized accreditor and which does not meet the definition of institution of higher education contained in Texas Education Code, § 61.003, must follow the Certificate of Authority process in paragraphs (1) - (9) of this section in order to offer degrees or courses leading to degrees in the state of Texas. Institutions are encouraged to contact the Board staff before filing a formal application.
(1) Certificate of Authority Eligibility.
(A) The Board will
accept applications for a Certificate of Authority only from those applicants:
(i) proposing to offer a degree or credit
courses leading to a degree; and
(ii) which meet one of the following
conditions:
(I) has been legally operating,
enrolling students, and conducting classes in Texas and has complied with state
law as either a non-degree-granting institution or an exempt institution only
offering degrees in religious disciplines for a minimum of two (2)
years;
(II) has been legally
operating, enrolling students, and conducting classes in Texas and has complied
with state law as a degree-granting institution and seeks to open a new
campus;
(III) has been legally
operating as a degree-granting institution in another state for a minimum of
four (4) years and can verify compliance with all applicable laws and rules in
that state; or
(IV) does not meet
one of the three previous operational history conditions, but meets additional
application and review requirements for its initial application, and agrees to
meet additional conditions, restrictions, or reporting requirements during its
first two years of operation under a Certificate of Authority. The Certificate
of Authority will be issued with written, specific conditions, restrictions, or
reporting requirements placed upon the institution.
(B) To be considered by the Board
as operating, means to have assembled a governing board, developed policies,
materials, and resources sufficient to satisfy the requirements for a
Certificate of Authority, and either have enrolled students and conducted
classes or accumulated sufficient financing to do so for at least one year upon
certification based on reasonable estimates of projected enrollment and costs.
Sufficient financing may be demonstrated by proof of an adequate surety
instrument meeting requirements as defined in §
7.16 of this subchapter (relating
to Financial Protections for Student Tuition and Fees), including but not
limited to, a surety bond, an assignment of a savings or escrow account,
certificate of deposit, irrevocable letter of credit, or a properly executed
participation contract with a private association, partnership, corporation, or
other entity whose membership is comprised of postsecondary
institutions.
(2) Certificate of Authority Restrictions for Professional Degrees.
(A) The Board may not issue a Certificate of
Authority for a private postsecondary institution to grant a professional
degree, as defined in §
7.3 of this title (relating to
Definitions), or to represent that credits earned in this state are applicable
toward a degree unless the Board determines there is evidence of program need
and institutional ability, including but not limited to the following:
(i) capacity and ability of similar
professional degree programs at institutions of higher education and private or
independent institutions of higher education are insufficient to meet the
state's current market needs;
(ii)
the institution seeking the certificate of authority:
(I) has the necessary faculty and other
resources to ensure student success; and
(II) is subject to and agrees to meet the
same standards for approval and all academic criteria applicable to similar
professional degree programs offered by institutions of higher education and
private or independent institutions of higher education (as defined under Texas
Education Code, §
61.003).
(iii) sufficient placements are available to
students for required field-based experience, such as clinicals or clerkships,
for the proposed professional degree.
(B) The Board may not issue a Certificate of
Authority for a private postsecondary institution to grant a professional
degree or to represent that credits earned in this state are applicable toward
a degree if the institution is chartered in a foreign country or has its
principal office or primary educational program in a foreign country.
(3) Certificate of Authority Application Submission and Requirements.
(A)
An applicant must submit an application to the Board to be considered for a
Certificate of Authority to offer identified proposed degree(s), and courses
which may be applicable toward a degree, in Texas.
(i) Applications must be submitted as an
original and a copy in an electronic format as specified by Board staff, and
accompanied by the application fee described in paragraph (3) of this
section.
(ii) A single desk review
of the application will be conducted to determine completeness and readiness
for a site team visit.
(iii) The
desk review may be done, in consultation with Board staff, by a reviewer who
will act as the site review team leader if the application is deemed complete
and ready for a site team visit.
(iv) The desk reviewer, in consultation with
Board staff, may make three possible recommendations. Board staff will make a
final determination on acceptability of the application based on one of the
three recommendations:
(I) The application is
determined to be foundationally incomplete in one or more Standards for
Operation of Institutions as described in §
7.4 of this chapter and not ready
for submission. A foundationally incomplete application is one where the
Standards for Operation of Institutions have not been met to such a degree that
the institution is unlikely to be sustainable or operational.
(II) The application may be resubmitted after
incorporating revisions or additions suggested by the reviewer. The revisions
or additions must allow the application to meet all Standards for Operation of
Institutions.
(III) The application
is acceptable and ready for a site review visit.
(v) If the application is foundationally
incomplete and not ready for submission, a portion of the application fee, if
not expended during the desk review, may be returned and another application
may not be submitted for one year from the date of rejection of the
foundationally incomplete application.
(B) The application form for the Certificate
of Authority may be found on the Board's website.
(C) The Certificate of Authority application
must include:
(i) The name and address of the
institution;
(ii) The purpose and
mission of the institution;
(iii)
Documentary evidence of compliance with paragraph (1)(A)(i)-(ii) of this
section;
(iv) Documentary evidence
of either a Letter of Exemption or Certificate of Approval from the Texas
Workforce Commission pursuant to Texas Education Code, Chapter 132;
(v) Documentary evidence of articles of
incorporation or other Texas-authorized organizational documents, regulations,
rules, constitutions, bylaws, or other regulations established for the
governance and operation of the institution;
(vi) Identification, by name and contact
information, of:
(I) The sponsors or owners
of the institution;
(II) The
designated Single Point of Contact as defined in §
7.3 of this chapter (relating to
Definitions);
(III) The chief
administrative officer, the principal administrators, and each member of the
board of trustees or other governing board;
(IV) Identification of faculty who will, in
fact, teach in each program of study, including identification of colleges
attended and copies of transcripts for every degree held by each faculty
member;
(vii) Information
regarding each degree or course leading to a degree which the applicant
proposes to offer, including a full description of the proposed degree or
degrees to be awarded and the course or courses of study prerequisite
thereto;
(viii) A description of
the facilities and equipment utilized by the applicant, including, if
applicable, all equipment, software, platforms and other resources used in the
provision of education via online or other distance education;
(ix) Detailed information describing the
manner in which the applicant complies with each of the Standards of Operations
of Institutions contained in §
7.4 of this chapter (relating to
Standards for Operations of Institutions);
(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
(v) An updated accreditation plan, including
any progress made toward obtaining Board-recognized accreditation identified in
the initial application or a change in plans to apply for accreditation with
another Board-recognized accreditation agency.
(E) Authority to Represent Transferability of
Course Credit. Any institution as defined in §
7.3 of this chapter, whether it
offers degrees or not, may solicit students for and enroll them in courses on
the basis that such courses will be credited to a degree program offered by
another institution, provided that:
(i) the
other institution is named in such representation, and is accredited by a
Board-recognized accrediting agency or has a Certificate of
Authority;
(ii) the courses are
identified and documented for which credit is claimed to be applicable to the
degree programs at the other institution; and
(iii) the written agreement between the
institution subject to these rules and the accredited institution is approved
by both institutions' governing boards in writing, and is filed with the
Board.
(7) Amendments to a Certificate of Authority.
(A)
An institution seeking to amend its Certificate of Authority to award a new or
different degree during the period of time covered by its current Certificate
of Authority may file an application for amendment, on forms provided by the
Board upon request, subject to the following exceptions:
(i) An institution with no previous
operational history described by paragraph (1)(A)(ii)(I)-(III) of this section
which has been granted a Certificate of Authority may not apply for an
amendment during the period of time covered by its initial Certificate of
Authority.
(ii) An institution with
operational history described by paragraph (1)(A)(ii)(I)-(III) of this section
which has been granted a Certificate of Authority may not apply for an
amendment within the first one hundred eighty (180) days after the grant of its
initial Certificate of Authority.
(iii) An institution with operational history
described by paragraph (1)(A)(ii)(I)-(III) of this section which has been
granted a Certificate of Authority with restrictions may not apply for an
amendment during the period of time covered by the restricted Certificate of
Authority.
(iv) An institution
seeking to discontinue a degree program, without closure of the institution,
shall assure the continuity of students' education by entering into a teach-out
agreement with:
(I) another institution
authorized by the Board to hold a Certificate of Authority;
(II) an institution operating under a
Certificate of Authorization; or
(III) a public or private institution of
higher education as defined in Texas Education Code §
61.003.
(v) The teach-out agreement shall
be in writing, shall be subject to Board staff approval, shall contain
provisions for student transfer, and shall specify the conditions for
completion of degree requirements at the teach-out institution. The agreement
shall also contain provisions for awarding degrees.
(B) Applications for amendments shall be
accompanied by the fee described in paragraph (3) of this subsection for each
amendment to an existing degree or for each application to award a new or
different degree.
(C) Based upon
the information contained in the application for amendment, the Commissioner or
his/her designee may utilize an outside consultant, the Certification Advisory
Council, or both, to review the application for amendment in order to make a
recommendation to the Board.
(D)
Upon Board approval that the new or revised degree program meets the required
standards, the Board shall amend the institution's Certificate of Authority
accordingly.
(E) A change of degree
level or additional program would require an amended Certificate of Authority
prior to beginning the program.
(8) Renewal of Certificate of Authority.
(A) At least one hundred eighty (180) days,
but no more than two hundred ten (210) days, prior to the expiration of the
current Certificate of Authority, an institution seeking renewal shall make
application to the Board on forms provided upon request. The renewal
application must include any applications for or renewal of accreditation by
institutional accrediting agencies. The renewal application shall be
accompanied by the fee described in paragraph (3) of this section.
(B) The application for renewal of the
Certificate of Authority will be evaluated in the same manner as that
prescribed for evaluation of an initial application, except that the renewal
application must include the institution's record of improvement and progress
toward accreditation. Evaluation of the renewal application will include review
of compliance with any specific conditions, restrictions, or reporting
requirements placed upon the institution during the period of the previous
Certificate of Authority and whether continuation or addition of conditions,
restrictions or reporting requirements is warranted.
(C) An institution may be granted consecutive
Certificates of Authority for a total grant of no longer than eight (8) years.
Absent sufficient cause, at the end of the eight (8) years, the institution
must be accredited by a recognized accrediting agency.
(D) Subject to the application and
authorization restrictions of this section, the Board shall renew the
certificate if it finds that the institution has maintained all requisite
standards and is making sufficient progress toward accreditation by a
Board-recognized accrediting agency.
(9) Revocation of Certificate of Authority.
(A) Grounds for revocation include:
(i) Institution no longer holds a Certificate
of Approval or Letter of Exemption issued by the Texas Workforce Commission;
or
(ii) Institution fails to comply
with substantive change notification and data reporting requirements as
outlined in §
7.11 of this chapter (relating to
Changes of Ownership and Other Substantive Changes) and §
7.13 of this chapter (relating to
Student Data Reporting), respectively; or
(iii) Institution offers degrees or courses
leading to a degree for which it does not have Board approval; or
(iv) Institution fails to maintain the
Standards of Operation as defined in §
7.4 of this chapter; or
(v) Failure to comply with the requirement to
submit all accrediting agency correspondence, reports, or findings and
institutional responses to such correspondence, reports, and findings if an
institution is accredited by entities which are not recognized by the Board;
or
(vi) Failure to fully comply
with any additional conditions, restrictions, or reporting requirements placed
upon the institution as part of its current Certificate of
Authority.
(B) Process
for revocation of Certificate of Authority to offer degrees in Texas:
(i) Board notifies institution of grounds for
revocation as outlined in this paragraph via registered or certified
mail;
(ii) Within ten (10) days of
its receipt of the Commissioner's notice, the institution must either cease and
desist operations or respond and offer proof of its continued qualification for
the authorization, and/or submit data as required by this chapter;
(iii) After reviewing the evidence, the
Commissioner will issue a notice of determination, which in the case of an
adverse determination, shall contain information regarding the reasons for the
denial, and the institution's right to a hearing;
(iv) If a determination under this section is
adverse to an institution, it shall become final and binding unless, within
forty-five (45) days of its receipt of the adverse determination, the
institution invokes the administrative remedies contained in Chapter 1,
Subchapter B of this title (relating to Dispute Resolution).
(C) Without a valid Certificate of
Authority, the institution must immediately cease and desist all operations,
including granting degrees, offering courses leading to degrees, receiving
payments from students for courses which may be applicable toward a degree, or
enrolling new students.
(i) If an institution
must cease and desist operations, within forty-five (45) days of the adverse
determination becoming final and binding, the institution must assure the
continuity of students' education by entering into a teach-out agreement with
another institution authorized by the Board to hold a Certificate of Authority,
with an institution operating under a Certificate of Authorization, or with a
public or private institution of higher education as defined in Texas Education
Code §
61.003.
(ii) The teach-out agreement shall be in
writing, shall be subject to Board staff approval prior to implementation,
shall contain provisions for student transfer, and shall specify the conditions
for completion of degree requirements at the teach-out institution. The
agreement shall also contain provisions for awarding
degrees.
(D)
Reapplication After Revocation of Certificate of Authority.
(i) The institution will not be eligible to
reapply for a period of one hundred eighty (180) days.
(ii) The subsequent application must show, in
addition to all other requirements described herein, correction of the
deficiencies which led to the denial.
(iii) The period of time during which the
institution does not hold a Certificate of Authority shall not be counted
against the eight (8) year period within which the institution must achieve
accreditation from a Board-recognized accrediting agency absent sufficient
cause, as described in paragraph (7)(C) of this section; the time period begins
to run again upon reinstatement.
(10) Closure of an Institution.
(A) The governing board, owner, or chief
executive officer of an institution that plans to cease operation in the state
of Texas shall provide the Board with written notification of intent to close
at least ninety (90) days prior to the planned closing date.
(B) If an institution closes unexpectedly,
the governing board, owner, or chief executive officer of the school shall
provide the Board with written notification immediately.
(C) If an institution closes or intends to
close before all currently enrolled students have completed all requirements
for graduation, the institution shall assure the continuity of students'
education by entering into a teach-out agreement with another institution
authorized by the Board to hold a Certificate of Authority, with an institution
operating under a Certificate of Authorization, or with a public or private
institution of higher education as defined in Texas Education Code §
61.003. The agreement
shall be in writing, shall be subject to Board approval prior to
implementation, shall contain provisions for student transfer, and shall
specify the conditions for completion of degree requirements at the teach-out
institution. The agreement shall also contain provisions for awarding
degrees.
(D) The Certificate of
Authority for an institution is automatically withdrawn as of the date the
institution closes. The Commissioner may grant to an institution that has
existing degree-granting authority temporary approval to award a degree(s) in a
program for which the institution does not have approval in order to facilitate
a formal agreement as outlined under this section.
(i) The curriculum and delivery shall be
appropriate to accommodate the remaining students.
(ii) No new students shall be admitted to the
transferred degree program unless the new entity seeks and receives permanent
approval for the program(s) from the Board, or Board staff, as delegated, or
the transferred degree program already has such approval.
(E) The institution shall transfer all
academic records pursuant to §
7.15 of this chapter (relating to
Academic Records Maintenance, Protection, and Repository of Last
Resort).
(F) The Coordinating Board
has delegated its authority to approve institution closure arrangements and
agreements to the Assistant Commissioner with oversight of the closing
institution.
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