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 49-7-2004 - Exempt institutions

(a)
The following education and educational institutions are exempted from this part:
(1)
Institutions exclusively offering instruction at any or all levels from preschool through the twelfth grade;
(2)
Education sponsored by a bona fide trade, business, professional or fraternal organization, so recognized by the commission, solely for that organization's membership or offered on a no-fee basis;
(3)
Education solely avocational or recreational in nature, as determined by the commission, and institutions offering such education exclusively;
(4)
Education offered by eleemosynary institutions, organizations or agencies, so recognized by the commission; provided, that the education is not advertised or promoted as leading toward educational credentials;
(5)
Postsecondary educational institutions established, operated, and governed by this state or its political subdivisions, including approved postsecondary training schools, academies, or facilities established, operated, and governed by this state or its political subdivisions and the colleges of applied technology under the exclusive control and jurisdiction of the board of regents;
(6)
A postsecondary educational institution that:
(A)
Has had its primary campus domiciled in the same state for at least twenty (20) consecutive years, continues to have its primary campus domiciled in that state, and is:
(i)
The primary campus;
(ii)
Another location of the institution in the same state where the primary campus is domiciled; or
(iii)
An alternate location, including a branch or satellite campus, located in a state other than the state where the primary campus is domiciled, but has been located in the state where the alternate location is presently located for at least twenty (20) consecutive years;
(B)
Is accredited by an accrediting agency recognized by the United States department of education and its primary campus has been accredited by a recognized accreditor for at least twenty (20) consecutive years;
(C)
Is chartered where its primary campus is domiciled as a not-for-profit entity and has continuously been so chartered for at least twenty (20) consecutive years;
(D)
Meets and maintains financial standards acceptable to the accreditor for the purpose of maintaining accreditation or to the United States department of education for the purpose of being a Title IV eligible institution; and
(E)
Does not engage in supervised field experiences in Tennessee without a physical location in Tennessee.
(7)
(A)
Institutions operated solely as auction schools, barber schools, schools of cosmetology, or schools of electrology; provided, that any barber school or school of cosmetology licensed or registered with the board of cosmetology and barber examiners that is eligible for or chooses to seek eligibility for federal student financial aid programs under the Higher Education Act of 1965, as amended (
20 U.S.C. §§ 1001-1161aa-1
) shall be subject to all requirements of this part;
(B)
[Deleted by 2022 amendment.]
(8)
Institutions operated solely as schools for the study of law and subject to the approval of the board of law examiners for this state;
(9)
Health-related educational programs conducted by state-licensed healthcare institutions;
(10)
Educational instruction that:
(A)
Does not lead to a degree;
(B)
Is regulated by the federal aviation administration; and
(C)
Is offered by a postsecondary educational institution that does not require students receiving the instruction to enter into written or oral contracts of indebtedness;
(11)
A nonprofit, regionally accredited educational institution:
(A)
Offering online, competency-based education to adult students;
(B)
Led by a chief executive or chancellor domiciled in Tennessee; and
(C)
With activities and operations limited to the scope of a memorandum of understanding executed with the state of Tennessee in 2013; and
(12)
Education offered as intensive review courses of instruction previously received by students that is designed solely to prepare students for graduate or professional school entrance examinations or licensure examinations.
(b)
A postsecondary educational institution exempt from this part pursuant to subdivision (a)(6) or (a)(11) loses the exemption upon the occurrence of one (1) of the following events, subject to appeal to the commission as provided in §
49-7-2012
:
(1)
Loss or failure to meet any of the listed criteria for exemption;
(2)
Loss of Title IV federal student aid funding; or
(3)
A three-year federal financial aid cohort default rate of thirty percent (30%) or higher for three (3) consecutive years or any single year over forty percent (40%), as reported by the United States department of education's office of postsecondary education's Integrated Postsecondary Education Data System.
(c)
Notwithstanding any provision of this section to the contrary, an institution that has lost its exemption due to the occurrence of one (1) of the conditions listed in subsection (b) shall not be required to reestablish the twenty (20) consecutive year standards in order to regain the institution's exempt status. Instead, the commission may reinstate the exemption once the condition that caused the loss of exemption has, in the opinion of the commission, been remedied.
(d)
The general assembly recognizes that an institution that meets the requirements of subdivisions (a)(6) and (a)(11) is established by name as an educational institution and is authorized to operate educational programs beyond secondary education. The commission shall provide notification of same to an institution upon completion of an exemption determination request. The commission shall maintain and publish on its website a list of postsecondary educational institutions meeting the requirements of subdivision (a)(6) with its primary campus domiciled in this state or subdivision (a)(11).
Amended by 2022 Tenn. Acts, ch. 1044, Secs.s 8, s 9, s 10, s 11 eff. 7/1/2022.
Amended by 2022 Tenn. Acts, ch. 1044, s 7, eff. 7/1/2022.
Amended by 2019 Tenn. Acts, ch. 82, s 1, eff. 7/1/2019.
Amended by 2018 Tenn. Acts, ch. 790, s 1, eff. 4/20/2018.
Amended by 2016 Tenn. Acts, ch. 868, s 11, eff. 10/1/2016.
Amended by 2016 Tenn. Acts, ch. 666, s 1, eff. 3/31/2016.
Amended by 2015 Tenn. Acts, ch. 358, s 1, eff. 7/1/2015.
Acts 1961, ch. 112, § 4; 1974, ch. 781, § 4; 1976, ch. 543, § 1; 1976, ch. 802, § 1; 1978, ch. 609, § 1; 1980, ch. 541, § 1; 1983, ch. 398, § 3; T.C.A., § 49-3904; Acts 1989, ch. 425, § 4; 1993, ch. 113, § 1; 1994, ch. 685, § 3; 1998, ch. 695, §§ 5 - 7; 2013 , ch. 158, § 1; 2013 , ch. 185, §§ 1, 2; 2013 , ch. 307, § 1; 2013 , ch. 473, § 18; 2014 , ch. 818, § 1; 2014 , ch. 890, §§ 1 - 4. .