Amends TCA Title 49, Chapter 7.

ON APRIL 12, 2022, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2843, AS AMENDED. AMENDMENT #1 rewrites this bill and revises various provisions of the Tennessee Higher Education Authorization Act of 2016 (which governs proprietary higher education institutions), as follows: (1) Abolishes the committee on postsecondary educational institutions, which has responsibility for oversight and regulation of institutions pursuant to the Act; (2) Removes certain obsolete provisions and makes technical, nonsubstantive clarifications to the Act; (3) Redefines "postsecondary institution" for purposes of the Act. Present law defines the term to mean an academic, vocational, technical, online/distance learning, business, professional or other school, college or university, or other organization or person, offering educational credentials, or offering instruction or educational services, primarily to persons who have completed or terminated their secondary education or who are beyond the age of compulsory high school attendance, for attainment of educational, professional or vocational objectives. This amendment redefines the term to include, but not be limited to, a school, college, university, or other type of entity offering educational credentials, instruction, educational services, or other activities as described in present law, primarily to persons who have completed or terminated their secondary education, or who are beyond the age of compulsory high school attendance, for the attainment of educational, professional, or vocational objectives; (4) Broadens eligibility for optional expedited authorization. Under present law, degree-granting postsecondary educational institutions accredited by a regional or national institutional accrediting agency recognized by the United States department of education may apply annually for an eligibility review and an optional expedited authorization by the Tennessee higher education commission (THEC (referred to as "fast track" authorization). This amendment makes nondegree granting institutions eligible for fast track authorization. This amendment revises other provisions governing fast track authorization, as discussed below; (5) Removes a requirement that institutions exempt from the Act file an annual information request form. This amendment also revises the exemption provisions to provide that an institution that engages in supervised field experiences in this state without a physical location in this does not qualify for exemption and has to be authorized under the Act; (6) Revises the exemption under the Act for "educational programs conducted by state-licensed health care institutions" so that the exemption only applies to the provision of "health-related" educational programs; (7) Requires THEC to provide notification of an exemption determination to an institution upon completion of an exemption determination request; (8) Clarifies that rules promulgated by THEC must be promulgated in accordance with the Uniform Administrative Procedures Act; (9) Specifies that the commission is not required to authorize an institution if, in its judgment, adequate provisions for the institution or its programs exist within the proposed service area; or if, in its judgment, there is insufficient evidence that adequate employment opportunities exist in the related occupations for persons successfully completing the institution's programs, or if the costs of a program is unreasonable in relation to the reasonably expected earnings in occupations for which the program is designed; (10) Removes provisions regarding agent's permits, which are defined as nontransferable written authorization issued to a natural person by the commission that allows that person to solicit or enroll students for education in an authorized postsecondary educational institution; (11) Revises the requirement to obtain authorization to operate. Under present law, each postsecondary educational institution desiring to operate in this state must make application to THEC. This amendment revises the requirement to instead require each postsecondary educational institution "creating a physical presence in Tennessee" to apply for authorization. This amendment provides that 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; (12) Adds that an institution that receives multi-year authorization must annually submit a certification of compliance on a form provided by the commission, and pay the requisite fee by the date established by THEC; (13) Authorizes the executive director of THEC to grant provisional initial authorization 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; (14) Requires a student who files a complaint against an institution under the Act for damage or loss to first exhaust the grievance process at the institution. This amendment revises other various provisions of the complaint, review, and appeals process, including adding a provision requiring THEC to attempt to effectuate resolution of the complaint by persuasion and conciliation. Present law provides for judicial review of a final action by THEC; this amendment adds a process for commission review of a decision of the executive director. At the hearing, the party may employ counsel, has the right to hear the evidence upon which the adverse action is based, and present evidence in opposition or in extenuation. The commission may request that a hearing officer from the secretary of state be appointed to issue an initial order or a member of the commission may preside, except where a clear conflict of interest may be demonstrated. A decision of the commission or of a hearing officer following a hearing will not be a final decision until it is final under the Uniform Administrative Procedures Act; (15) Revises the present law bond requirements. Present law requires a surety bond of $10,000 for in-state institutions and $20,000 for out-of-state institutions; this amendment sets the bond requirement at $10,000 regardless of in-state or out-of-state status. Under present law, the bond may be continuous; this amendment makes this provision mandatory instead of permissive. Under present law, authorization is conditional, subject to revocation, by operation of law when the institution is no longer covered by a surety bond. This amendment adds that, absent exceptional circumstances, a postsecondary educational institution may not continue to engage in activities or operations without a surety bond for more than 90 days; (16) Adds that if a person, agent, group, or entity fails to comply with the Act or with the rules promulgated pursuant to the Act, then the person, agent, group, or entity may be ordered to cease and desist from the noncompliant act or practice and may be required to reimburse a complainant full or partial restitution for the damage or loss resulting from the noncompliant action; (17) Changes the date by which a tuition guaranty fund fee must be paid from "at least 30 days before the beginning of a new academic year" to "May 15 each year"; this amendment maintains authorization for THEC to establish an alternative date to account for variations in institutional programs and schedules. The board may also establish late payment penalties by rule. Under present law, in the event an institution participating in the fund goes into bankruptcy, or ceases operations without completing its educational obligations or reimbursing its students, the board may reimburse valid claims of students for tuition paid to that institution. If a student is attending on a loan, the board directs reimbursement to that lender rather than to the student. As a condition of receiving reimbursement from the fund, a student or lender must agree to subrogate the person's right of recovery against the institution to the board. This amendment removes the provision for reimbursement to a lender; (18) Clarifies that an institution must post information on its webpage that provides graduation rates and statistics on credential attainment along with a reference to the availability of graduation rates and statistics on credential attainment; and (19) Under the provisions for optional expedited authorization (fast track), adds authorization for provisional fast track authorization to be granted by the executive director or commission staff subject to review and ratification by the commission. Provisional authorization must contain limitations as to time, procedures, functions, and other conditions as deemed necessary. The term for which authorization is given may not extend for more than six years and may be issued for a lesser period of time on terms and conditions specified by, or otherwise determined by, the commission. An institution that receives multi-year authorization must annually submit a certification of compliance on a form provided by the commission, and must pay the requisite fee by the date established by the commission. Also, under present law an institution whose optional expedited authorization is revoked by the commission is ineligible to reapply for optional expedited authorization for no less than 24 months from the date of revocation; this amendment revises this provision to instead provide that an institution for which the commission revokes an optional expedited authorization is ineligible to reapply for optional expedited authorization until the commission determines that the institution has resolved each of the grounds for revocation. ON APRIL 18, 2022, THE HOUSE SUBSTITUTED SENATE BILL 2843 FOR HOUSE BILL 2606, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 2843, AS AMENDED. AMENDMENT #2 makes a technical correction by deleting an internal reference from Section 30 of the bill as amended.