(a) Owners with knowledge of a school's impending closure shall notify the Agency as soon as possible or practical.
(b) Prior to closure a school must:
  (1) contact the Agency regarding a school survey visit and the process required to close out the school records;
  (2) complete any closure documents required by the Agency;
  (3) provide information on any teach out plans or arrangements; and
  (4) complete any other requirements deemed necessary by the Agency for an orderly closure.
(c) The Agency may impose penalties, sanctions, or both on an owner, as defined by §807.2(30) of this chapter, or on a person associated with a school closure for a school's failure to comply with proper closure procedures.
(d) The Agency may declare a school to be closed when:
  (1) written notification is received by the Agency from the school owner stating the school will close;
  (2) Agency determines that the school facility has been vacated without prior notification of a change of address given to the Agency;
  (3) an owner with multiple school locations transfers all students from one school location to another school location;
  (4) the school dismisses all students, contrary to the school's class schedule as printed in the school catalog; or
  (5) the school fails to maintain the faculty, facilities, equipment, or courses of instruction on the basis for which approval was issued.
(e) After the Agency determines that a school will close or is closed, the Agency will attempt to notify students concerning their options to accept a teach-out or to receive a proportional tuition refund based on available funds. Notification to students may include constructive notice in news media, student meetings, or mailings to students.
(f) Each teach-out requires approval of the Agency to determine whether the course of instruction is available, reasonable, and comparable with the course of instruction of the closed school. The teach-out is subject to the following conditions:
  (1) Transfers of students from a closed school to another school under the same ownership shall not constitute a teach-out.
  (2) In order to be eligible for a teach-out, students shall submit a signed statement of acceptance to the teach-out school by the deadline as established by the Agency.
  (3) The school offering the teach-out shall give credit for all comparable training received at the closed school, as determined by the Agency.

Source Note: The provisions of this §807.341 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914