Exemptions

(1) T.C.A. § 49-7-2004 of the Act includes general descriptions of institutions and programs that are exempt from the provisions of the Act and these rules. Institutions and programs meeting the specific provisions below shall be considered exempt pursuant to the general exemption descriptions of T.C.A. § 49-7-2004. (a) Subject to subparagraph (b) of this rule, education that is: 1. Maintained or given by or on behalf of an employer or group of employers on a no-fee basis to employees or to persons they anticipate employing; 2. Maintained or given by a labor organization recognized by either the U.S. Department of Labor or the state (1) to its membership or apprentices or (2) on a no-fee basis to the individual; 3. Financed and/or subsidized by public funds, at no cost to the individual, and having a closed enrollment; 4. Given under a contract agreement, having a closed enrollment, on a no-fee basis to the individual, and not offering educational credentials that in the opinion of Commission staff are specifically directed toward new or additional vocational, professional, or academic goals; or 5. Given to a closed network of franchise owners and their employees on a no-fee basis to employees through a franchisor that does not advertise or provide its training to the general public and wherein such training is not the primary business of the franchisor. (b) For purposes of subparagraph (a) of this rule, and T.C.A. § 49-7-2004(a)(2), any tuition charges, other fee charges, payroll deductions, minimum employment periods as a result of a company’s investment in the employee, fees levied if an individual leaves that employment, or similar practices shall constitute a fee to the individual, except that the employer may accept funds provided through a state or federal program that provides adequate institutional and/or programmatic review as determined by Commission staff. (c) Programs, seminars, or workshops that are recreational or avocational, including, but not limited to, motivational or enrichment programs, as determined by Commission staff shall be considered exempt from registration requirements. Upon review by Commission staff, a provider that presents the instruction in such a way as to suggest a vocational end may be required to become authorized or clarify through public AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS advertising that the program, seminar, or workshop is in fact recreational or avocational. (d) Short-term programs, seminars, or workshops that are solely for professional enhancement as determined by Commission staff shall be considered exempt from registration requirements. Education resulting in specialized certifications clearly used to denote technical, professional, or vocational proficiency toward an additional vocational goal or new job title must be authorized for operation. (e) Intensive review courses of instruction previously received by students that are designed solely to prepare students for graduate or professional school entrance exams and professional licensure exams shall be considered exempt from registration requirements. This exemption applies only when the review course is not designed to provide the initial training in the subject area. (f) Training designed to prepare students for credit-by-examination tests may be considered exempt from registration requirements. The exemption is contingent on the entity’s agreement to indicate in all promotional materials that the training is for test preparation for credit-by-examination tests and refrain from any misleading representations. Such misleading representations include: 1. Suggesting in any way that the training results in receipt of an educational credential, such as a degree; 2. Listing anticipated salary amounts; and 3. Suggesting that the entity is accredited. (g) Businesses offering limited computer training in hardware, software, delivery systems or any related technology for clients or customers directly related to a sale of equipment or services are exempt from the provisions of authorization. (h) Businesses offering short-term computer courses in common software or basic computer hardware that is intended for enrichment or professional enhancement are exempt from the provisions of authorization unless in the opinion of Commission staff the courses are offered concurrently toward a vocational goal. (2) Any institution or program that qualifies as exempt under the Act and these rules is exempt from authorization or registration without a determination of the Commission. However, institutions can request that Commission staff issue a written determination of exemption as provided for in Rule .07 of these rules for the institution as a whole or for any program. Commission staff can revoke or amend an exemption determination if the basis for the exemption changes or no longer exists.