Oregon Administrative Rules › Chapter 583 - HIGHER EDUCATION COORDINATING COMMISSION, OFFICE OF DEGREE AUTHORIZATION › Division 30 - STANDARDS AND PROCEDURES FOR SCHOOLS REQUIRED TO OBTAIN AUTHORIZATION TO OFFER ACADEMIC DEGREES IN OREGON, OR REQUIRED TO ESTABLISH EXEMPTION › Section 583-030-0035 - Standards for Schools Offering Degree Programs In or From Oregon

Current through Register Vol. 63, No. 7, July 1, 2024
Effective September 10, 2015. In order to receive and hold
				authorization to offer in or from Oregon instruction or related services
				leading to one or more degrees, a school must remain open to inspection at all
				times and continuously satisfy each of the following standard requirements as
				written, except where the Commission approves modification under OAR
				583-030-0036. Standards are applicable to all programs.
(1)  Name. The school shall use for doing business publicly a
				name that is consistent with its purpose and educational programs.
(2)  Control.
(a)  All persons responsible for upper management policy must be
				individually qualified by education, experience, and record of conduct to
				assure effective management, ethical practice, and the quality of degrees and
				services offered. Boards must collectively demonstrate financial, academic,
				managerial and any necessary specialized knowledge, but individual members need
				not have all of these characteristics. Any controlling organization or owner is
				subject to this standard.
(b)  Administrators shall be paid by fixed salary and not by
				commission. Commission includes monetary and nonmonetary compensation. Any
				portion of payment that is based on enrollment of students recruited by the
				administrator or the administrator's staff is considered payment by
				commission.
(c)  Teachers shall be paid by fixed salary and not by
				commission. Commission includes monetary and nonmonetary compensation. Any
				portion of payment that is based on enrollment of students recruited by the
				teacher is considered payment by commission.
(d)  Nonprofit Schools:
(A)  Persons who control a nonprofit school shall demonstrate a
				commitment to the school's best interest as a public trust.
(B)  A nonprofit school shall have a published policy that is
				followed in practice against conflicts of interest at all organizational
				levels.
(e)  For-profit Schools:
(A)  A school operated for profit shall disclose fully to the
				Commission the specific financial interest of any involved organization or
				person, except that a large group of shareholders may be described generally.
				Any person or entity holding at least 5 percent of voting or common shares in a
				for-profit school must be named and the percentage of holdings disclosed. All
				business activities of interested organizations or persons are subject to
				disclosure.
(B)  All board members, administrators, or owners of five
				percent or more of shares of an applicant school or parent corporation must
				disclose with explanation the following:
(i)  Any prior felony convictions.
(ii)  Any known violations of federal financial aid rules by a
				school of which the person was a board member or employee.
(iii)  Any known violations of the policies of an accreditor by
				a school of which the person was a board member or employee.
(iv) Any previous or current ownership or administration of a
				school that closed or filed for bankruptcy.