Office of Postsecondary Education - U.S. Department of Education

Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66947WReier-Aviles on DSKGBLS3C1PROD with RULES2requirements, except that the State mayexempt the institution from any Stateapproval or licensure requirementsbased on the institution’s accreditationby one or more accrediting agenciesrecognized by the Secretary or basedupon the institution being in operationfor at least 20 years.(ii) If an institution is established bya State on the basis of an authorizationto conduct business in the State or tooperate as a nonprofit charitableorganization, but not established byname as an educational institutionunder paragraph (a)(1)(i) of this section,the institution—(A) By name, must be approved orlicensed by the State to offer programsbeyond secondary education, includingprograms leading to a degree orcertificate; and(B) May not be exempt from theState’s approval or licensurerequirements based on accreditation,years in operation, or other comparableexemption.(2) The Secretary considers aninstitution to meet the provisions ofparagraph (a)(1) of this section if theinstitution is authorized by name tooffer educational programs beyondsecondary education by—(i) The Federal Government; or(ii) As defined in 25 U.S.C. 1802(2),an Indian tribe, provided that theinstitution is located on tribal lands andthe tribal government has a process toreview and appropriately act oncomplaints concerning an institutionand enforces applicable tribalrequirements or laws.(b)(1) Notwithstanding paragraph(a)(1)(i) and (ii) of this section, aninstitution is considered to be legallyauthorized to operate educationalprograms beyond secondary education ifit is exempt from State authorization asa religious institution under the Stateconstitution or by State law.(2) For purposes of paragraph (b)(1) ofthis section, a religious institution is aninstitution that—(i) Is owned, controlled, operated, andmaintained by a religious organizationlawfully operating as a nonprofitreligious corporation; and(ii) Awards only religious degrees orcertificates including, but not limited to,a certificate of Talmudic studies, anassociate of Biblical studies, a bachelorof religious studies, a master of divinity,or a doctor of divinity.(c) If an institution is offeringpostsecondary education throughdistance or correspondence education tostudents in a State in which it is notphysically located or in which it isotherwise subject to State jurisdiction asdetermined by the State, the institutionmust meet any State requirements for itto be legally offering postsecondarydistance or correspondence education inthat State. An institution must be ableto document to the Secretary the State’sapproval upon request.(Authority: 20 U.S.C. 1001 and 1002)PART 602—THE SECRETARY’SRECOGNITION OF ACCREDITINGAGENCIES■ 7. The authority citation for part 602continues to read as follows:Authority: 20 U.S.C. 1099b, unlessotherwise noted.■ 8. Section 602.24 is amended byadding a new paragraph (f) to read asfollows:§ 602.24 Additional procedures certaininstitutional accreditors must have.* * * * *(f) Credit-hour policies. Theaccrediting agency, as part of its reviewof an institution for initial accreditationor preaccreditation or renewal ofaccreditation, must conduct an effectivereview and evaluation of the reliabilityand accuracy of the institution’sassignment of credit hours.(1) The accrediting agency meets thisrequirement if—(i) It reviews the institution’s—(A) Policies and procedures fordetermining the credit hours, as definedin 34 CFR 600.2, that the institutionawards for courses and programs; and(B) The application of the institution’spolicies and procedures to its programsand coursework; and(ii) Makes a reasonable determinationof whether the institution’s assignmentof credit hours conforms to commonlyaccepted practice in higher education.(2) In reviewing and evaluating aninstitution’s policies and procedures fordetermining credit hour assignments, anaccrediting agency may use sampling orother methods in the evaluation,sufficient to comply with paragraph(f)(1)(i)(B) of this section.(3) The accrediting agency must takesuch actions that it deems appropriateto address any deficiencies that itidentifies at an institution as part of itsreviews and evaluations underparagraph (f)(1)(i) and (ii) of thissection, as it does in relation to otherdeficiencies it may identify, subject tothe requirements of this part.(4) If, following the institutionalreview process under this paragraph (f),the agency finds systemicnoncompliance with the agency’spolicies or significant noncomplianceregarding one or more programs at theVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00117 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2institution, the agency must promptlynotify the Secretary.* * * * *PART 603—SECRETARY’SRECOGNITION PROCEDURES FORSTATE AGENCIES■ 9. The authority citation for part 603is revised to read as follows:Authority: 20 U.S.C. 1001, 1002,1094(c)(4); 38 U.S.C. 3675, unless otherwisenoted.■ 10. Section 603.24 is amended byredesignating paragraph (c) as paragraph(d), adding a new paragraph (c), andrevising the authority citation afterredesignated paragraph (d) to read asfollows:§ 603.24 Criteria for State agencies.* * * * *(c) Credit-hour policies. The Stateagency, as part of its review of aninstitution for initial approval orrenewal of approval, must conduct aneffective review and evaluation of thereliability and accuracy of theinstitution’s assignment of credit hours.(1) The State agency meets thisrequirement if—(i) It reviews the institution’s—(A) Policies and procedures fordetermining the credit hours, as definedin 34 CFR 600.2, that the institutionawards for courses and programs; and(B) The application of the institution’spolicies and procedures to its programsand coursework; and(ii) Makes a reasonable determinationof whether the institution’s assignmentof credit hours conforms to commonlyaccepted practice in higher education.(2) In reviewing and evaluating aninstitution’s policies and procedures fordetermining credit hour assignments, aState agency may use sampling or othermethods in the evaluation, sufficient tocomply with paragraph (c)(1)(i)(B) ofthis section.(3) The State agency must take suchactions that it deems appropriate toaddress any deficiencies that itidentifies at an institution as part of itsreviews and evaluations underparagraph (c)(1)(i) and (ii) of thissection, as it does in relation to otherdeficiencies it may identify, subject tothe requirements of this part.(4) If, following the institutionalreview process under this paragraph (c),the agency finds systemicnoncompliance with the agency’spolicies or significant noncomplianceregarding one or more programs at theinstitution, the agency must promptlynotify the Secretary.* * * * *