Institutional

APPLICATIONS, REQUESTS, AND CERTIFICATIONS OF COMPLIANCE. (1) Due dates, denials, withdrawals, and review: (a) For purposes of these rules, application refers to any application, request, or certification. (b) When a due date is provided by Commission staff, a complete application in the prescribed format shall be received at the Commission by the close of business on the due date. Applications received after the due date will be deemed late, will be reviewed after all timely filed applications are reviewed, and may be subject to a late fee. (c) Initial Authorization Applications and Program Registration Requests shall be filed in the prescribed format and may be filed at any time. All other applications shall be filed as provided for in these rules. Applications will be reviewed when complete. (d) When received, Commission staff shall determine whether an application is complete and notify the applicant if the application is incomplete. An applicant will have thirty (30) calendar days to complete an incomplete application. Incomplete applications include applications submitted without all applicable fees or in a format other than the prescribed format and applications missing a required attachment. An application that is not completed by the prescribed due date will be deemed withdrawn. (e) Denial or withdrawal of an application does not prevent the applicant from submitting a new application. (f) When an application is before Commission staff for consideration, Commission staff will provide the applicant written notice of its final determination. If, upon written notification of any action taken by Commission staff, an aggrieved applicant desires a review by the Executive Director, the applicant shall notify the Executive Director within ten (10) business days of the date of the action of the Commission staff, otherwise the action of Commission staff shall be deemed final and no further review available. Any AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS request for review by the Executive Director shall be in writing, signed, and provide a detailed explanation of each alleged error with references to the Act or these rules. A request may be denied if it is not received in a timely manner. (g) If, upon written notification of any action taken by the Executive Director, an aggrieved applicant desires a hearing and review by the Commission, pursuant to T.C.A. § 49-7- 2012, the applicant shall notify the Commission within ten (10) business days of the date of the action of the Executive Director, otherwise the action of the Executive Director shall be deemed final and no further review available. Any request for review by the Commission shall be in writing, signed, and provide a detailed explanation of each alleged error with references to the Act or these rules. A request may be denied if it is not received in a timely manner. (h) Any person, agent, group or entity aggrieved or adversely affected by any final Commission action may obtain judicial review of the action as provided in T.C.A. § 49- 7-2012. (2) Initial Authorization Application: (a) Institutions must demonstrate through the Initial Authorization Application that the institution meets minimum standards for authorization as provided for in the Act and these rules. The application shall require at a minimum: 1. A name of the institution that complies with the Act and Rule .06(5) of these rules; 2. Evidence of a business account with a financial institution that is federally insured in said institution’s name; 3. A description of the ownership of the institution, including names and contact information for owners or board of director members, percentage of ownership, and, when applicable, a corporate flowchart or tree showing the institution’s position in relationship to all affiliated legal entities; 4. The address and general description of facilities such that a determination can be made that the institution has adequate space, equipment, and instructional material to provide education consistent with the objectives of the course or program of study; 5. Evidence demonstrating that the location meets the definition of location as provided for in these rules and that possession of the location is stable such that the institution will be able to use the location for a minimum of one (1) year from the date of application. Month-to-month leases are not acceptable; 6. Qualifications for instructional staff and administrative personnel; 7. Designation of and contact information for an institutional director and an affirmation from the director that the director will conduct the institution in accordance with the Act and these rules; 8. A description of any administrative structure above the institutional director with the signature of the official that will notify the Commission if the director is replaced; 9. A continuous institutional surety bond; AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS 10. A copy of the enrollment agreement the institution will use following receipt of authorization; 11. A copy of the pre-enrollment checklist the institution will use following receipt of authorization; 12. A copy of the institutional catalog the institution will use following receipt of authorization; 13. A copy of the student transfer of credit disclosure statement required by T.C.A. § 49-7-144 the institution will use following receipt of authorization; 14. Any specific requirements as outlined under Rule .08 of these rules; 15. Affirmation that the institution is maintained and operated in compliance with all pertinent ordinances and laws, including, but not limited to, rules and regulations adopted pursuant to ordinances and laws relative to the safety and health of all persons upon the premises; 16. If participating in Title IV federal student financial aid programs, the institution must meet financial standards and institutional stability deemed acceptable for eligibility in Title IV federal student financial aid programs and provide the following: (i) The institution’s Office of Postsecondary Education Identification (OPEID) number; (ii) Documentation from Federal Student Aid Office of the U.S. Department of Education listing the institution’s federal financial composite score as described in 34 C.F.R. § 668.172; and (iii) Any correspondence issued in the past twenty-four (24) months from the Federal Student Aid Office of the U.S. Department of Education concerning eligibility for financial aid, including, but not limited to, a letter of credit alternative or a provisional certification alternative as well as any related correspondence from the institution; 17. Provide financial statements as follows: (i) As to institutions that are not currently operating a location, (I) A year-to-date balance sheet prepared by a certified public accountant or a bookkeeper certified by the National Association of Certified Public Bookkeepers that demonstrates resources adequate to fund facilities maintenance and overhead, staff and faculty payroll, books, supplies or equipment utilized by students, and general operating costs for a minimum of ninety (90) calendar days and (II) Pro forma income statements prepared by a certified public accountant or a bookkeeper certified by the National Association of Certified Public Bookkeepers demonstrating that the location for which authorization is being sought will within the first three (3) years following receipt of initial authorization meet the ratios described in Rule .14(5)(e) of these rules; or AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS (ii) As to institutions that are operating a location, (I) Current financial statement prepared by a certified public accountant or a bookkeeper certified by the National Association of Certified Public Bookkeepers with a balance sheet that demonstrates resources adequate to fund facilities maintenance and overhead, staff and faculty payroll, books, supplies or equipment utilized by students, and general operating costs for a minimum of ninety (90) calendar days and (II) Pro forma income statements prepared by a certified public accountant or a bookkeeper certified by the National Association of Certified Public Bookkeepers demonstrating that the location for which authorization is being sought will within the first three (3) years following receipt of initial authorization meet the ratios described in Rule .14(5)(e) of these rules and financial statements of all owners; and 18. Such other information, clarification, or training deemed necessary by Commission staff. (b) A separate application for authorization must be made for each location located outside of reasonable walking distance from a previously authorized location. Commission staff may make reasonable exceptions for narrow purpose, highly structured programs at multiple locations where administrative requirements are limited and precise. (c) Initial authorization may be granted for up to four (4) years, unless otherwise determined by the Executive Director or the Commission. Institutions with a four (4) year initial authorization term shall submit Certifications of Compliance as provided for in these rules in years one (1), two (2), and three (3) and a Reauthorization Application as provided for in these rules in year four (4). (d) Commission staff will review an Initial Authorization Application and, upon finding that the application demonstrates that the institution complies with all requisite standards, recommend that the Executive Director grant the institution provisional initial authorization as further explained at Rule .21 of these rules. (e) The Commission is not required to authorize an institution, if, in its judgment: 1. The institution is noncompliant with the Act or these rules; 2. Adequate provisions for the institution or its programs exist within the proposed service area; 3. If there is insufficient evidence that adequate employment opportunities exist in the related occupations for persons successfully completing the institution’s programs; or 4. If the costs of a program are unreasonable in relation to the reasonably expected earnings in occupations for which the program is designed. (f) In the event that the Initial Authorization 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 AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS applicant two (2) opportunities to correct the deficiencies. Following the second failed attempt to correct deficiencies, the application will be denied. (3) Reauthorization Application: (a) Institutions with regular, or conditional authorization shall file a reauthorization application by a due date to be established by Commission staff and posted on the Commission’s website. (b) The Reauthorization Application constitutes a self-study through which institutions must demonstrate that the institution continues to meet the minimum standards for authorization as provided for in the Act and these rules. The application may require at a minimum: 1. Updates to information previously submitted as part of other applications; 2. Information related to required student enrollment documentation, such as enrollment agreements and disclosures; 3. Financial statements as described at Rule .14(4) of these rules; 4. A list of institutional personnel; 5. Funding data for students enrolled during the reporting year, including, but not limited to, the amount of self-pay and state or federal aid program funds; 6. Student data related to licensure examination passage rates as further explained in Rule .08(4) of these rules; 7. Affirmation of the requirement to submit statistical data as described in Rule .18 of these rules; and 8. Such other information or clarification deemed necessary by Commission staff. (c) Commission staff will review a Reauthorization Application and, upon finding that the application demonstrates that the institution complies with all requisite standards, grant reauthorization for four (4) years, unless a shorter term is determined to be appropriate by the Executive Director or Commission. In the event that the Reauthorization 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, Commission staff will recommend that the Executive Director take adverse action, including but not limited to assessing a fine, placing the institution on conditional authorization status, or revoking authorization. (4) 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 AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS 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) No later than thirty (30) calendar days after the grant of conditional authorization, the new owner shall submit an Initial Authorization Application and related applications or an Optional Expedited Authorization Application as provided for in Rule Chapter 1540- 01-10. (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 these rules may commence. (5) Program Registration Request: (a) In order to offer a program, an institution must submit a Program Registration Request either along with an Initial Authorization Application or, for previously authorized institutions, as a stand-alone application. Program registration is required prior to offering the program, which includes enrolling, advertising, recruiting or soliciting. Program Registration Requests shall be filed in the prescribed format and may be filed at any time. (b) The Program Registration Requests may include at a minimum: 1. General program information, such as the program name, proposed start date, anticipated initial enrollment, itemized tuition and other fees, delivery mode, length, number of credits or contact hours, and accreditation status; 2. Designation of a credential that is defined in Rule .03, such as certificate, diploma or bachelor’s degree that conforms to the requirement that no institution may offer an academic degree program unless the institution is accredited; 3. If applicable, evidence of approval from any subject matter expert state agency, board, or commission; 4. A program overview; 5. A job title and the associated Classification of Institutional Programs (CIP) code applicable to the job title; AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS 6. The most currently available entry level salary or wage data and job outlook projections for those CIP codes from a Tennessee or federal website; 7. Admission criteria confirmation and, if necessary, an explanation; 8. Instructor qualifications; 9. A list of training equipment, indicating whether the equipment is owned or leased; 10. If applicable, a list of all clinical or externships sites with which the institution has an executed agreement; 11. If applicable, the maximum pupil to teacher ratio for each course that does not exceed the below acceptable ratios: (i) Allied health labs or clinicals with no subject matter agency oversight: 20-1; (ii) Class A truck cab: 4:1; and (iii) Class B truck cab: 2:1; 12. If applicable, distance learning specific information, such as: (i) A mock password so that Commission staff can navigate through the online system used for instruction and (ii) An explanation as to how educational goals and overall program goals are achievable through distance learning; and 13. Such other information or clarification deemed necessary by Commission staff. (c) An institution revises a program when it changes any element of a program that has been registered with the Commission, for example, the name of the program, tuition, credit or contact hours, mandatory other fees, length, or delivery mode, or when it changes the status of the program, for example, inactivates or discontinues the program. Institutions may revise programs as follows: 1. When an institution revises a registered program, by more than twenty-five percent (25%) in the last twelve (12) months or by changing the program delivery mode, name, or credential, then the institution must reregister the program by submitting a Program Registration Request at least thirty (30) calendar days prior to implementing the revision. When calculating twenty-five percent (25%) in the last twelve (12) months, all revisions made to quantifiable program elements in the last twelve (12) months should be totaled. For example, if in the last twelve (12) months, the institution raises tuition by five percent (5%) and adds ten percent (10%) to the program length, then the institution has revised the program by a total of fifteen percent (15%). If within twelve (12) months of these revisions, the institution raises other fees by fifteen percent (15%), then the total of the revisions in the last twelve (12) months is now thirty percent (30%) and the institution must reregister the program by submitting a Program Registration Request. 2. In all other instances, an institution may revise a program at its discretion and report the revisions to Commission staff when completing the annual Reauthorization Application or Certification of Compliance. AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS (d) Institutions shall not arbitrarily add a course, contact hours, or credit hours to an existing program in which a student would incur additional time or expense beyond the catalog requirements at the time of enrollment, unless the addition is in response to: 1. State approval agency requirements; 2. U.S. Department of Education recognized accreditor requirements; or 3. Professional licensure requirements. In any event, the institution shall give adequate notice to all students affected prior to any change. (e) Commission staff will review a Program Registration Request and, upon finding that the registration demonstrates that the institution complies with all requisite standards, register the program by including it or revising it in the postsecondary program inventory. In the event that the Program Registration Request fails to demonstrate that the institution complies with all requisite standards, Commission staff shall defer the registration 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 program registration will be denied. (6) Change of Location Application: (a) Absent extraordinary circumstances, an authorized institution shall submit a Change of Location Application thirty (30) calendar days prior to moving and receive Commission Staff approval prior to operation. An example of an extraordinary circumstance is the unexpected loss of a lease. In the event of extraordinary circumstances, the institution shall submit a Change of Location Application and receive Commission Staff approval prior to providing instruction to students. (b) The Change of Location Application shall include at a minimum: 1. The address and general description of facilities such that a determination can be made that the institution has adequate space, equipment, and instructional material; 2. Evidence demonstrating that the location meets the definition of location as provided for in these rules and that possession of the location is stable such that the institution will be able to use the location for a minimum of one (1) year from the date of application. Month-to-month leases are not acceptable; 3. Affirmation that the institution is maintained and operated in compliance with all pertinent ordinances and laws including, but not limited to, rules and regulations adopted pursuant to ordinances and laws, relative to zoning and the safety and health of all persons upon the premises; and 4. Such other information or clarification deemed necessary by Commission staff. (c) Commission staff will review a Change of Location Application and conduct an authorization site visit, if Commission staff determines an authorization site visit is necessary. Upon finding that the application and an authorization site visit, if necessary, demonstrate that the institution complies with all requisite standards, Commission staff will grant the change of location. In the event that the Change of AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS Location 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, Commission staff will recommend that the Executive Director take adverse action, including but not limited to assessing a fine, placing the institution on conditional authorization status, or revoking authorization. (d) If a move is beyond ten (10) miles and a student is prevented from completing the training at the new location, a full refund of all moneys paid and a release from all obligations will be given to the student or loan holder. (7) School Personnel Application: (a) Authorized institutions must maintain qualified faculty and staff in order to fulfill the mission of the institution and all obligations to the students. Following initial authorization, an institution must notify Commission staff when there is a change of institutional director, including the appointment of an interim institutional director, by submitting a School Personnel Application no later than five (5) business days after the hire or appointment date. (b) Administrative personnel are individuals that oversee areas as outlined in operational and administrative standards. This includes by function, but is not limited to titles of an institutional director; financial aid administrator; director of admissions; director of education; business officer or manager; director of student services (including counseling and placement) and the registrar. Support and clerical staff is not included as administrative personnel. (c) Commission staff will review a School Personnel Application and, upon finding that the qualifications of the institutional director meet all requisite standards, approve the application. In the event that the School Personnel Application fails to demonstrate that the qualifications of institutional director meet 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. (8) Institution Name Change Application: (a) An authorized institution shall submit an Institution Name Change Application thirty (30) calendar days prior to changing the institution’s name unless the name change is the result of a change of ownership. In the case of a change of ownership, the authorized institution shall submit a Change of Ownership Application. (b) The Institution Name Change Application shall include at a minimum: 1. Updated contact information; 2. A proposed new name of the institution that is compliant with these rules; 3. Updated surety bond information; 4. Affirmation that the institution following approval and prior to using the new name will update the pre-enrollment checklist, enrollment agreement, transfer of credit disclosure statement, and catalog; and AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS 5. Such other information or clarification deemed necessary by Commission staff. (c) Commission staff will review Institution Name Change Application and, upon finding that the application demonstrates that the institution complies with all requisite standards, Commission staff will grant the change of name. In the event that the Institution Name Change 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. (9) Certification of Compliance: (a) Annually during the authorization term, institutions with regular or conditional 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 self- certify 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 must be signed by the institutional director and, if other than the institutional director, the owner, or a representative thereof. For institutions that do not receive Title IV funds, the Certification of Compliance may require financial statements as described at Rule .14(4) of these rules. (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 will recommend that the Executive Director take adverse action, including but not limited to assessing a fine, placing the institution on conditional authorization status, or revoking authorization. (10) Exemption Determination Request: (a) The Exemption Determination Request may include at a minimum: 1. Full contact information for the requestor; 2. The statutory or rule citation justifying exemption; 3. An argument applying the statutory or rule citation to operations of the requestor; 4. Documentation supporting the requested exemption such as: copies of all institutional materials; brochures; advertising; state charter or business license; or organizational ties and/or contracts with other educational providers; and 5. Such other information or clarification deemed necessary by Commission staff. (b) Commission staff will review an Exemption Determination Request and, upon finding that the exemption as requested is justified by statute or rule, notify the institution of such. In the event that Commission staff requires additional information, Commission AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS staff shall defer the Exemption Determination Request by requesting such information and providing the institution two (2) opportunities to correct the deficiencies. Following the second failed attempt to correct deficiencies, the Exemption Determination Request will be denied.