Section 1540-01-10-.06 - CONDITIONAL STATUS OF OR REVOCATION OF OEA STATUS(1) OEA may be made conditional or revoked for just cause or as otherwise noted in T.C.A. § 497-2022. Revocation can occur as a result of: (a) A vote of the Commission on its own motion or(b) A determination of the Executive Director pursuant to Rule 1540-01-02-.02(e).(2) Just cause includes activities where the institution acted contrary to the public interest, exhibits questionable financial strength, or is not operating educational programs with acceptable outcomes and includes, but is not limited to: (a) Loss or failure to meet any of the listed criteria for eligibility in Rule .03(1) of these rules;(b) Failure to fulfill the requirements in Rule .03 of these rules;(c) A finding resulting from a complaint.(d) Having an institution-level or program-level withdrawal, completion, placement, or infield placement rate that is less than the state average rate for other OEA institutions or a program type for more than two (2) consecutive years;(e) Providing false or misleading statistical data;(f) Failure to comply with the requirements of the tuition guaranty fund under § 49-7-2018 and the related rules;(g) A three-year federal financial aid cohort default rate as calculated by the U.S. Department of Education of thirty percent (30%) or higher for three (3) consecutive years or over forty percent (40%) for any single year;(h) Retaliating against a complainant who exercises their right to complain; or(i) Allowing OEA to expire without timely filing an OEA Application, Certification of Compliance, or Initial Authorization Application.(3) Upon revocation of any institution's OEA, the following shall occur:(a) The institution shall immediately be subject to all provisions of the Act and Rule Chapter 1540-01-02.(b) The institution shall apply for Commission authorization under T.C.A. § 49-7-2008 and Rule Chapter 1540-01-02 thirty (30) calendar days after the notice of revocation.(c) The Executive Director may grant the institution conditional authorization to continue its operation as a non-OEA institution. Such conditional authorization shall not be for more than six (6) months. Failure to fulfill all conditions of authorization within six (6) months may lead to revocation of authorization.(d) Any institution whose OEA is revoked by the Commission shall be ineligible to reapply until the Commission determines that all bases for revocation have been resolved.(4) Notwithstanding paragraphs (1) through (3) of this rule, no immediate action should be taken to revoke an institution's OEA when the institution's accreditor is removed from the U.S. Department of Education's list of recognized accreditors. The Executive Director shall set a time period in which institutions may continue to operate under OEA, assuming all other OEA requirements are met. The time period should coincide with the provisional time period set by the U.S. Department of Education for affected institutions to seek a new accreditor.(5) Any action by the Commission or Executive Director under this rule shall be subject to review as provided in T.C.A. § 49-7-2012. All Commission actions are subject to due process provisions of the Uniform Administrative Procedures ActTenn. Comp. R. & Regs. 1540-01-10-.06
Emergency rules filed August 15, 2016; effective October 3, 2016 through April 1, 2017. Original 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. §§ 49-7-2005 and 49-7-2022; Acts 2016, Ch. 868; and 2022 Tenn. Pub. Ch. No. 1044.