2023 Tennessee Code › Title 49 - EDUCATION (§§ 49-1-NEW — 49-50-1703) › Chapter 7 - POSTSECONDARY AND HIGHER EDUCATION GENERALLY (§§ 49-7-NEW — 49-7-3003) › Part 20 - POSTSECONDARY EDUCATION AUTHORIZATION ACT OF 1974 (§§ 49-7-2001 — 49-7-2023) › Section 49-7-2008 - Authorization to operate

(a)
(1)
Each postsecondary educational institution creating a physical presence in Tennessee must apply for authorization with the commission on forms provided by the commission pursuant to this section or §
49-7-2022(a)
. When physical presence activities or operation is not the result of instruction at a postsecondary educational institution location as determined by the commission, such as supervised field experiences or similar activities or operations, then the postsecondary educational institution location from which the educational credential is awarded must be the authorized location.
(2)
The application must be accompanied by a catalog published or proposed to be published by the institution containing the information specified in §
49-7-2006(a)(4)
, including information required by the rules of the commission.
(3)
The application must be accompanied by evidence of a surety bond, as required by this part, and payment of the fees specified in the bond.
(b)
(1)
After reviewing the application and any additional information submitted by the applicant or required by the commission, and after the investigation of the applicant as the commission deems necessary or appropriate, the commission shall either grant or deny authorization to the applicant.
(2)
A grant of authorization may be on the terms and conditions specified by the commission.
(c)
The authorization must be in a form approved by the commission and must state in a clear and conspicuous manner, at a minimum, the following:
(1)
The date of issuance, the effective date, and the term of approval;
(2)
The correct name and address of the institution authorized;
(3)
The authority for approval and conditions of approval, if any; and
(4)
Any limitation of the authorization, as deemed necessary by the commission.
(d)
The term for which authorization is given shall not extend for more than six (6) years, and may be issued for a lesser period of time as provided in subdivision (b)(2) or as otherwise determined by the commission. An institution that receives multi-year authorization shall annually submit a certification of compliance on a form provided by the commission, and pay the requisite fee by the date established by the commission.
(e)
(1)
The authorization must be issued to the owner or governing body of the applicant institution and is nontransferable.
(2)
In the event of a change in ownership of the institution, the new owner or governing body shall, within five (5) business days after the change in ownership, apply for a new authorization as provided for by the commission, and in the event of a failure to do so, the institution's authorization is terminated.
(3)
As used in this section, "ownership" means:
(A)
In the case of a postsecondary educational institution owned by an individual, the individual;
(B)
In the case of a postsecondary educational institution owned by a partnership, all partners, whether full, silent, or limited;
(C)
In the case of a postsecondary educational institution owned by a corporation or other for-profit legal entity, the individuals or entities with an immediate controlling interest in the corporation or for-profit legal entity; and
(D)
In the case of a postsecondary educational institution owned by a not-for-profit or nonprofit entity, the executive committee of the governing board of each respective entity.
(f)
(1)
Prior to an authorization's expiration, the institution shall complete and file an application for renewal of its authorization with the commission on forms provided by the commission.
(2)
Before an authorization is renewed, the commission may require the institution to submit the results of an institutional self study, as defined by the commission.
(3)
The commission may require an institution to publish placement rates and other information indicating actual employment and earnings in relevant occupations post successful completion of the institution's offered programs.
(g)
(1)
An institution that is not yet engaged in activities or operating when its application for authorization is filed with the commission shall not begin to engage in activities or operate until receipt of authorization.
(2)
An institution engaged in activities or operating when its application for authorization is filed may continue its activities or operation until its application is acted upon by the commission; provided, that the institution's activities or operations are governed by the action of the commission.
(3)
Provisional initial authorization may be granted by the executive director subject to review and ratification by the commission. Provisional initial authorization must list any limitations as to time, procedures, functions, or other conditions as deemed necessary by the commission.
Amended by 2022 Tenn. Acts, ch. 1044, s 16, eff. 7/1/2022.
Amended by 2018 Tenn. Acts, ch. 790, s 2, eff. 4/20/2018.
Acts 1961, ch. 112, § 9; 1974, ch. 781, § 9; T.C.A., § 49-3909; Acts 1989, ch. 425, §§ 7-9; 2004, ch. 831, § 3; 2006, ch. 766, § 5.