2015 Tennessee Code
Title 49 - Education
Chapter 7 - Postsecondary and Higher Education Generally
Part 20 - Postsecondary Education Authorization Act of 1974
§ 49-7-2008 - Authorization to operate.

(a) (1) Each postsecondary educational institution desiring to operate in this state shall make application to the commission, upon forms to be provided by the commission.

(2) The application shall be accompanied by a catalog or brochure published, or proposed to be published, by the institution, containing the information specified in § 49-7-2006(a)(1)(D), including information required by rules and regulations of the commission.

(3) The application shall also be accompanied by evidence of a surety bond as required by this part and payment of the fees specified in the bond.

(b) (1) Following review of the application and any further information submitted by the applicant, or required by the commission, and the investigation of the applicant as the commission deems necessary or appropriate, the commission shall either grant or deny authorization to operate to the applicant.

(2) A grant of authorization to operate may be on the terms and conditions that the commission specifies. In the case of initial applications for new institutions, a temporary authorization of up to two (2) years may be issued. In the case of applications or reapplications for institutions or programs that were previously authorized but have lapsed or are deficient, a probationary authorization may be granted until the deficiencies are corrected.

(c) The authorization to operate shall be in a form recommended and approved by the commission and shall state in a clear and conspicuous manner at least the following information:

(1) The date of issuance, effective date and term of approval;

(2) The correct name and address of the institution so authorized;

(3) The authority for approval and conditions of approval; 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.

(e) (1) The authorization to operate shall be issued to the owner, or governing body, of the applicant institution and shall be nontransferable.

(2) In the event of a change in ownership of the institution, a new owner, or governing body, must, within ten (10) days after the change in ownership, apply for a new authorization to operate; and in the event of failure to do so, the institution's authorization to operate shall terminate.

(3) Application for a new authorization to operate by reason of change in ownership of the institution shall for purposes of § 49-7-2010(a)(2) be deemed an application for renewal of the institution's authorization to operate.

(4) "Ownership," for purposes of this section, means ownership of a controlling interest in the institution, or in the event the institution is owned or controlled by a corporation or other legal entity other than a natural person or persons, ownership of a controlling interest in the legal entity owning or controlling the institution.

(f) (1) Prior to the expiration of an authorization to operate, the institution shall complete and file with the commission an application form for renewal of its authorization to operate.

(2) A renewal application for authorization shall be acted on by the commission under the same procedures used in initial applications; but before any renewal is authorized, an institutional self-study using the standards of an appropriate accrediting authority shall be performed and the results filed with the commission. During the authorization period, with annual reports and fee payment, there shall be an on-site visit of the institution by at least one (1) external authority on that type of institution and a staff member of the commission. The self-study and site visit may be conducted in conjunction with a normally scheduled accreditation visit, but, in any event, the institution shall pay the reasonable honorarium compensation and travel expenses of the external authority, if requested.

(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 offered programs.

(g) (1) An institution not yet in operation when its application for authorization to operate is filed may not begin operation until receipt of authorization.

(2) An institution in operation when its application for authorization to operate is filed may continue operation until its application is acted upon by the commission, and thereupon its authority to operate shall be governed by the action of the commission.

(3) In any event, the commission may issue provisional authorization to operate, containing limitations as to time, procedures, functions or other conditions that the commission deems necessary.