Section 1540-01-02-.21 - AUTHORIZATION STATUS(1) Provisional Initial Authorization:(a) An award of provisional initial authorization shall be subject to review and ratification by the Commission.(b) If an award of provisional initial authorization is ratified by the Commission, authorization becomes regular or conditional as determined by the Commission.(c) 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.(d) 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 that the institution:1. Is authorized provisionally subject to ratification by the Commission, and2. Notwithstanding Rule .17 of these rules, 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.(2) Regular Authority: (a) Provisional authorization shall become regular authorization following review and ratification of the Commission.(3) Conditional Authorization or Registration:(a) Conditional authorization or registration is authorization or program registration, but with conditions, such as reporting requirements, performance standard requirements, securing new or additional bonds, a limited period of time to operate such as during change of ownership, or for the purpose of teaching out existing students. Institutions with conditional authorization or registration may also be required to suspend or cease any part of institutional activity, such as enrolling students, advertising, or conducting specific classes or programs. Such suspension or cessation shall remain in effect until activities precipitating the condition are corrected and Commission staff has completed all related reviews and investigations. Conditional authorization or registration may be issued when deemed necessary to protect the public interest.(b) An institution may request conditional authorization, including, but not limited to, suspension of the operation, rather than expose the institution to adverse action, for situations such as unexpected loss of lease, extended inactivity, or reorganization.(c) Nothing in this section shall be construed to absolve institutions of their educational and financial obligations to currently enrolled students.(4) Revocation of Authorization or Program Registration:(a) Revocation of authorization or program registration is the immediate and complete withdrawal of the institution's authorization or program registration to enroll, advertise, or operate a postsecondary educational institution in the state.(b) Possible grounds for immediate revocation of authorization or program registration include but are not limited to: 1. Loss of right to use the authorized location without immediate notification to the Commission;2. Instances where a principal party has been or is involved with a postsecondary educational institution that ceased or ceases operation resulting in a loss of time or money for enrollees or prospective students, or that had or has its institutional authorization in a state revoked;3. A pattern of deceptive practices;4. Failure to correct any situation that resulted in conditional authorization or program registration within a reasonable time period to be determined by the Executive Director;5. Disregard for any specific directive issued by the Commission, the Executive Director, or Commission staff;6. Failure to pay assessed fines;7. Closing an institution without proper notification to the Commission or failure to complete all required closure obligations; and8. Failure to submit a Certification of Compliance by the required due date or a Reauthorization Application by the authorization term expiration.(c) Revocation of authorization or program registration shall not relieve an institution of complete compliance with the requirements in these rules applicable to an institution closing, including, but not limited to, refunds to students, arranging instructional teachouts, and securing the disposition of student records.Tenn. Comp. R. & Regs. 1540-01-02-.21
Original rule filed June 24, 1998; effective October 28, 1998. Amendment filed June 6, 2008; declared void and of no effect pursuant to Davidson County Chancery Court's October 2011 order. See also Attorney General's Opinion 11-78. Amendments filed April 1, 2013; to have been effective September 28, 2013. However, a petition for a rulemaking hearing was filed June 26, 2013. The Tennessee Higher Education Commission filed a withdrawal of the rule on July 26, 2013. Emergency rules filed August 15, 2016; effective October 3, 2016 through April 1, 2017. Repeal and new rules filed December 21, 2016; effective March 21, 2017. Emergency rules filed June 29, 2022; effective July 1, 2022 through December 28, 2022. Amendments filed September 30, 2022; effective 12/29/2022.Authority: T.C.A. §§ 49-7-2004, 49-7-2005, 49-7-2008, and 49-7-2010.