Authorization to Operate — Optional Expedited Authorization
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No entity shall operate in this state a postsecondary educational institution, not exempted from this part, unless the institution has a current and valid authorization from the commission to operate.
Degree-granting postsecondary educational institutions accredited by a regional or national institutional accrediting agency recognized by the United States department of education may apply annually for an eligibility review and an optional expedited authorization by the commission.
Eligibility for optional expedited authorization is available annually to degree-granting postsecondary educational institutions that submit the following documentation to the commission:
Evidence of good-standing and valid institutional accreditation from a regional or national institutional accrediting agency recognized by the United States department of education;
Documentation evidencing an established, clearly articulated, and comprehensive process for the resolution of consumer complaints;
If the institution is not authorized in this state, documentation evidencing that the institution is authorized or exempt from authorization in the state where it is primarily located;
A signed and notarized application for optional expedited authorization on a form provided by the commission;
If applicable, documentation evidencing all requisite program approvals from other state licensing boards or commissions; and
Documentation 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.
Upon receipt of an institution's application, the commission shall conduct a detailed review and verification and, upon satisfactory examination of all submitted documentation, shall issue this annual optional expedited authorization subject to this section.
If the commission, upon review and consideration of the application, determines the applicant is not eligible and fails to meet the optional expedited authorization criteria established in this section, the commission shall notify the applicant of its decision to deny the application and set forth the reasons for the denial in writing.
Issuance of an annual optional expedited authorization shall demonstrate full compliance with the minimum standards established under this part and fulfill all requirements for the institution's state authorization.
Institutions satisfying the requirements of this section and receiving optional expedited authorization shall not be subject to any other authorization requirements under this part, but shall remain subject to §§ 49-7-2012, 49-7-2013, 49-7-2014, 49-7-2015, 49-7-2016, and 49-7-2018.
To assist the commission with its duty of consumer protection, any institution receiving optional expedited authorization under this section shall:
Timely report to the commission 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, including any corrective action and remedies taken by the institution;
Notify the commission, within five (5) business days, of the following:
Action by an accrediting agency in regard to the institution's accreditation status, including revocation, suspension, probation, warning, or similar action;
Notice of legal action involving the institution, or its parent entity if applicable, and Tennessee students, related to the delivery of educational programming or student or consumer practices, including class action lawsuits;
Utilization by the institution of a letter of credit or a cash management agreement with the United States department of education;
Public announcement of investigation by any governmental agency. The institution shall notify the commission whether the investigation is related to the institution's academic quality, financial stability, or student or consumer practices;
A change of ownership; or
A change of institutional director;
Provide any information requested by the commission necessary to monitor the institution's eligibility for optional expedited authorization;
Provide complaint resolution policies and procedures to the institution's students and cooperate with the commission in the investigation or resolution of student complaints; and
Provide the following data, subject to the commission's requirements:
Student-level data on enrollment and credential attainment;
Job placement data;
Costs of attendance;
Federal student cohort default rates; and
A comprehensive list of all programs offered at the institution.
Optional expedited authorization shall remain available only to those institutions maintaining the eligibility standards required under this section, as submitted in the documentation accompanying the institution's annual optional expedited authorization application. Optional expedited authorization shall be issued to the owner or governing body of the applicant institution and shall be nontransferable. In the event of a change of ownership, the new owner or governing body must apply for a new authorization to operate as provided for by the commission; failure to do so shall result in termination of the institution's authorization to operate.
The commission may revoke or make conditional an issued optional expedited authorization for:
Loss of or failure to meet any of the listed criteria for authorization in subsection (c);
Just cause; or
Failure to fulfill the requirements in subsection (h).
Upon the commission's revocation of any institution's optional expedited authorization, the institution shall then immediately be subject to all remaining provisions of this part, applicable administrative rules and procedures for issuance of authorization, and shall reapply for commission authorization under § 49-7-2008. Any institution whose optional expedited authorization is revoked by the commission shall be ineligible to reapply for optional expedited authorization for no less than twenty-four (24) months from the date of revocation.
The commission may investigate any signed student complaint involving institutions authorized under this section; however, initial responsibility for the investigation and resolution of complaints shall reside with the institution against which the complaint is made. For complaints not resolved at the institutional level, the commission may investigate and coordinate resolution of any student complaint with the assistance of other government agencies, as necessary.
Institutions receiving optional expedited authorization are subject to the provisions and requirements of the tuition guaranty fund, under § 49-7-2018.
Institutions receiving optional expedited authorization shall be subject to a flat annual fee, as established by the commission. Institutions receiving optional expedited authorization shall not be subject to any other authorization fees under this part.
The commission may develop agency policies and promulgate administrative rules and regulations, as necessary, to effectuate this section.
No later than June 30, 2018, the commission shall develop, and make available on its website, graduation rates and statistics on credential attainment for institutions authorized under this section and a hyperlink to the institutions' website.
Any person aggrieved by a decision of the commission with respect to denial of, revocation of, or making conditional an optional expedited authorization to operate as provided by subsection (j) shall have the right to a hearing and review of the decision by the commission as provided by this subsection (q).
If, upon written notification of any such action taken by the commission, the aggrieved party desires a hearing and review, the party shall notify the commission, in writing, within ten (10) days after the giving of notice of the action, otherwise the action shall be deemed final.
Upon receiving notice from the aggrieved party, the commission shall fix the time and place for a hearing, and shall notify the aggrieved party of the time and place of the hearing.
At the hearing, the party may employ counsel, shall have the right to hear the evidence upon which the action is based and present evidence in opposition or in extenuation. Any member of the commission may preside except when a clear conflict of interest may be demonstrated.
A decision of the commission following a hearing, or the failure of a party to give written notice of the desire for a hearing and review within ten (10) days, shall be deemed final and subject to the right of judicial review provided in § 49-7-2012. All matters presented by hearing as provided in this subsection (q) shall be acted upon promptly by the commission. The commission shall notify all parties in writing of its decision, which shall include a statement of findings and conclusions upon all material issues of fact, law or discretion presented at the hearing and the appropriate rule, order, sanction, relief, or denial thereof.
Institutions authorized under this section shall develop and make available to the public on the institutions' websites the most current version of the following information:
Costs of attendance;
Information on whether academic credits attained are transferable to other institutions operating in Tennessee;
Executed articulation and transfer of credit agreements with other institutions operating in Tennessee, if applicable; and