(ii) 34 CFR 76.500 through 76.534, 76.560, 76.561, 76.563, and 76.580 through 76.592 of subpart F; (iii) 34 CFR 76.701, 76.702, 76.703, 76.707, 76.720, 76.730, 76.731, 76.734, 76.760, and 76.761 of subpart G; (iv) 34 CFR 80.22 of subpart A; (v) 34 CFR 80.43 and 80.44 of subpart C; and (vi) 34 CFR 80.50 through 80.52 of subpart D. (2) For purposes of this part, the term "grantee," as defined and used in 34 CFR parts 76 and 80, refers only to a State Postsecondary Review Entity. (Authority: 20 U.S.C. 1099a-1099a-3) §667.2 Definitions. (a) The following terms used in this part are defined in the regulations governing Institutional Eligibility under the Higher Education Act of 1965, as amended, 34 CFR part 600: Federal Direct Student Loan Program Federal Perkins Loan Program Federal PLUS Program Federal Stafford Loan Program Federal Supplemental Loans for Students (SLS) Program Federal Supplemental Educational Opportunity Grant (FSEOG) Program Federal Work-Study (FWS) Program National Early Intervention Scholarship and Partnership (NEISP) Program State Student Incentive Grant (SSIG) Program (c) The following definitions apply to terms used in this part: Classification of Instructional Programs (CIP): A manual published by the U.S. Department of Education, National Center for Education Statistics, that lists the codes, titles, and descriptions of educational programs used by institutions and States for reporting and analyzing education data at the national level. (This manual can be obtained at the United States Department of Education, Outreach Division, OERI, 55 New Jersey Ave., NW., room 300, Washington, DC 20208.) Education and general expenditures: The total amount expended by an institution for institution for instruction, research, public service, academic support (including library expenditures), student services, institutional support, scholarships and fellowships, operation and maintenance expenditures for the physical plant, and any mandatory transfers which the institution is required to pay by law. National Occupational Information Coordinating Committee (NOICC): An agency jointly sponsored by the U.S. Departments of Education and Labor to facilitate comparisons between educational programs and related occupations and to provide information to State employment counseling services. NOICC Master Crosswalk: A computerized database that shows the relationships among major occupational and educational systems used by the Federal government. (This database can be obtained from the National Crosswalk Service Center, Iowa SOICC, 200 East Grand Ave., Des Moines, IA 50309. Telephone: (515) 242-4881.) Professional program: An undergraduate or graduate educational program that (1)(i) Is listed in the CIP; and (ii) Prepares individuals for an occupation, if that occupation (A) Requires at least a bachelor's degree to qualify for entry; (B) Involves the independent practice or application of a defined or organized body of competencies that is unique to the occupation; and (C) Is formally recognized and regulated under a national or State licensure, accreditation, or permit system; or (2) Satisfies a State's statutory definition of the term professional program. Referred institution: An institution that a SPRE reviews as a result of(1) A referral by the Secretary under § 667.5; or (3) Assures that the SPRE (i) Has the legal authority under State law to carry out the functions required of it under this part; (ii) Will perform the functions required of it under this part; (iii) Will keep records or have access to records of referred institutions that relate to activities under this part and will provide information to the Secretary as may be requested by the Secretary for financial and compliance audits of referred institutions; (iv) Will keep records or have access to records that relate to its activities under this part, and will provide information to the Secretary as may be requested by the Secretary for program evaluations of the manner in which the SPRE carries out its responsibilities under this part; and (v) Will review referred institutions on a schedule that coincides with the Secretary's schedule for recertifying those institutions to participate in the title IV, HEA programs; (4) Describes the relationship between the SPRE, the State approving agency for Veterans Affairs, the State guaranty agency under the FFEL programs, the State agency responsible for administering the SSIG Program, any State entity that provides a license to institutions to operate in the State or otherwise legally authorizes institutions to provide postsecondary edu cation in the State, any State-level entity that approves service providers under the Job Training Partnership Act, and any State-level entity that certifies vocational education; (5) Indicates that the SPRE (i) Shall contract with a nationally recognized accrediting agency or a peer review system for purposes of §667.24; and (ii) May contract with a private agency, nationally recognized accrediting agency, or peer review system for assistance in performing the SPRE's functions; and (6) Includes the SPRE's plan for performing the functions described in §667.12. (c) The agreement between the State and the Secretary goes into effect when it is signed by the Secretary and remains in effect until it is terminated by the Secretary or the State. The Secretary or the State terminates an agreement under the provisions of that agreement. (d) The sanctions set forth in paragraph (e) of this section follow if the State (1) Does not enter into an agreement with the Secretary; (2) Fails to comply with the terms of the agreement and the Secretary terminates that agreement; (3) Terminates the agreement with the Secretary; or (4)(i) Does not submit to the Secretary by December 31, 1995, State review standards under §667.21, that are approvable by the Secretary under § 667.22, if the State received Fiscal Year 1993 funds to carry out activities under the State Postsecondary Review Program; or (ii) Does not submit to the Secretary by December 31, 1996, State review standards under §667.21, that are approvable by the Secretary under §667.22, if the State did not receive Fiscal Year 1993 funds to carry out activities under the State Postsecondary Review Program. (e) If any of the events listed in paragraph (d) of this section occurs (1) The State is ineligible to receive(i) Any funds appropriated to carry out this program; (ii) Its allotment of any funds appropriated under the SSIG Program; and (iii) Any funds appropriated to carry out the NEISP Program; and (2) The Secretary (i) Does not designate as eligible for participation in a title IV, HEA program any institution in the State seeking initial participation in that program, any branch campus in the State for which an institution seeks an initial designation of eligibility under 34 CFR part 600, or any institution in the State that has undergone a change in ownership that results in a change in control as determined in 34 CFR part 600; (ii) Grants only provisional certification, as determined in 34 CFR part 668, to an institution or a branch campus in that State not described in paragraph (e)(2)(i) of this section; and (iii) May (A) Establish the review standards for that State described in §667.21; and (B) Carry out, or arrange to carry out, the State's other responsibilities and requirements under this part. (Approved by the Office of Management and Budget under control number 1840-0659) (Authority: 20 U.S.C. 1099a-1) [59 FR 22289, Apr. 29, 1994, as amended at 59 FR 46175, Sept. 7, 1994] § 667.4 State postsecondary review entity. (a) The SPRE is the entity designated by the State in the agreement between the State and the Secretary under § 667.3, to (1) Represent all existing State entities that are, and all future State entities that will be, responsible for (i) Granting State authorization to provide postsecondary education in that State; and (ii) Ensuring that all institutions in the State that participate in a title IV, HEA program remain in compliance with the State review standards established under § 667.21; (2) Keep records or have access to records of referred institutions that relate to activities under this part and provide information to the Secretary as may be requested by the Secretary for financial and compliance audits of referred institutions; and (3) Keep records or have access to records that relate to its activities under this part, and provide informa tion to the Secretary as may be requested by the Secretary for program evaluations of the manner in which the SPRE carries out its responsibilities under this part. (b) Under this part, a SPRE is not authorized to (1) Grant State authorization to provide postsecondary education in that State; or (2) Require an institution in the State that is not referred to the State by the Secretary under §667.5 or selected by the State under §667.6 to comply with State review standards established under § 667.21. (Approved by the Office of Management and Budget under control number 1840-0659) (Authority: 20 U.S.C. 1099a-1099a-3) [59 FR 22289, Apr. 29, 1994, as amended at 59 FR 46175, Sept. 7, 1994] $667.5 Criteria the Secretary uses to refer institutions to a SPRE for review. (a)(1) The Secretary refers an institution that participates in a title IV, HEA program to a SPRE for review if the institution meets one or more of the criteria contained in paragraph (b) of this section. (2) In determining whether an institution meets one or more of the criteria contained in paragraph (b) of this section, the Secretary uses the most recently available data. (b) Except as provided in paragraph (c) of this section, the Secretary refers an institution to a SPRE if— (1) The institution has a cohort default rate (defined in 34 CFR 668.17) equal to or greater than 25 percent; (2)(i) The institution has a cohort default rate (defined in 34 CFR 668.17) equal to or greater than 20 percent; and (ii) During the latest completed award year for which data are available (A) More than two-thirds of the institution's regular undergraduate students who were enrolled as at least half-time students received assistance under any title IV, HEA program, excluding assistance received from the SSIG, NEISP, and Federal PLUS programs; or (B) The amount that the institution's students received under the title IV, HEA programs, excluding funds from the SSIG, NEISP, and Federal PLUS programs, is equal to or greater than two-thirds of the institution's education and general expenditures; (3) The amount that the institution's students received under the Federal Pell Grant Program is equal to or greater than two-thirds of the institution's education and general expenditures; (4) The Secretary initiated a limitation, suspension, or termination action against the institution under 34 CFR part 668, subpart G, within the preceding 5 years; (5) An audit finding in the institution's 2 most recent audits under 34 CFR 668.23 resulted in a required repayment by the institution of an amount greater than 5 percent of the funds the institution received under the title IV, HEA programs for any 1 award year covered by those audits; (6) The Secretary cited the institution for its failure to submit an acceptable audit report by the deadlines established under 34 CFR 668.23; (7)(i) The amount that the institution's students received under the Federal Pell Grant Program during any award year differed by more than 25 percent from the amount that the institution's students received under that program in the preceding award year, unless the differences can be accounted for by changes in that program; (ii) The amount that the institution's students received under the Federal Stafford Loan Program during any award year differs by more than 25 percent from the amount that the institution's students received under that program in the preceding award year, unless the differences can be accounted for by changes in that program; or (iii) The amount that the institution's students received under the Federal SLS Program during any award year differs by more than 25 percent from the amount that the institution's students received under that program in the preceding award year, unless the differences can be accounted for by changes in that program; (8) The institution failed to meet the factors of financial responsibility in 34 CFR part 668, subpart B; (9) The institution underwent a change in ownership that resulted in a change of control as defined in 34 CFR 600.31; (10) Except with regard to any public institution affiliated with a State system of higher education, the institution has participated for less than 5 years in (i) The Federal Pell Grant Program; (v) The Federal Perkins Loan Program; or (11) The institution has been subject to a pattern of complaints from students related to its management or conduct of the title IV, HEA programs or to misleading or inappropriate advertising and promotion of the institution's educational programs that, in the Secretary's judgment, based on information available to the Secretary, including information provided to the Secretary by the SPRE, is sufficient to warrant review. (c)(1) Before the Secretary refers an institution to a SPRE for meeting one or more of the referral criteria contained in paragraph (b) of this section, the Secretary notifies the institution of that intended referral and the reasons for the referral. (2) The Secretary delays the referral if the Secretary receives from the institution a notice of its intent to challenge the accuracy of the information upon which the referral was based no later than seven days after the institution receives the notice from the Secretary. (3)(i) If an institution challenges the accuracy of the information on which its referral was based, the institution has the burden of proving that the information was inaccurate. (ii) For purposes of paragraph (c)(3)(i) of this section, the Secretary presumes that records maintained in the normal course of business by the U.S. Department of Education, a guaranty agency under the FFEL Program, a SPRE, a State licensing agency, or another State agency are accurate. (4)(i) If an institution challenges the accuracy of the information on which its referral was based, other than the accuracy of its cohort default rate for a particular year, the Secretary must receive the institution's submission, along with any supporting document or record, no later than 30 days after the institution receives the notice described in paragraph (c)(1) of this section. (ii) If an institution challenges the accuracy of its cohort default rate for a particular year under 34 CFR 668.17(d)(1)(i) (A) and (B), it must file a timely appeal of that rate under those provisions. (d) If the institution timely challenges its referral under paragraph (c) of this section, the Secretary refers the institution to a SPRE for review unless the institution convinces the Secretary that its referral was based upon inaccurate information for all of the referral criteria. (e)(1) Documents referenced in this section may be hand-delivered or mailed. If documents are mailed, they must be mailed certified mail, return receipt requested, or by next-day mail service. (2) If documents are mailed, proof of receipt shall be evidenced by the delivery date indicated on the United States Postal Service return receipt card (green card), or the pickup date indicated on the next day mail service's bill. (3) For purposes of paragraph (e)(2) of this section, if any submission is sent by next-day mail service, the Secretary presumes that the document was delivered the day after the date on which it was picked up for delivery. (Authority: 20 U.S.C. 1099a-3) $667.6 SPRE selection of institutions for review. (a) A SPRE may review an institution under this part that was not referred by the Secretary if— (1) The SPRE (i)(A) Determines that the institution meets a referral criterion in §667.5 based on more recent data available to the SPRE; or (B) Has reason to believe the institution is engaged in fraudulent practices; and (ii) Requests the Secretary to approve its review of that institution; and (2) The Secretary 464 (i) Approves that request; or (ii) Does not respond to the SPRE's request within 21 days after the date the Secretary receives that request; and (b) If, under paragraph (a)(1)(i)(A) of this section, a State selects an institution for review, before the SPRE may request the Secretary to approve that review, the SPRE must (1) Notify the institution of the selection and provide the institution with the reasons for its selection; (2) Delay its review request to the Secretary if the State receives a notice from the institution no later than seven days after the institution receives the notice from the State challenging the accuracy of the information on which the selection was based. (3)(i) If an institution challenges the accuracy of the information on which its selection was based, the institution has the burden of proving that the information was inaccurate. (ii) For purposes of paragraph (c)(3)(i) of this section, the State shall presume that records maintained in the normal course of business by the U.S. Department of Education, a guaranty agency under the FFEL programs, a SPRE, a State licensing agency, or another State agency are accurate. (4) To challenge the accuracy of the information on which its referral was based, the State must receive no later than 30 days after the institution receives the notice described in paragraph (c)(1) of this section the institution's submission, along with any supporting document or record. (c) If the institution timely challenges its referral under paragraph (b) of this section, the State requests a review of the institution from the Secretary unless the institution convinces the State that its selection was based upon inaccurate information. (d)(1) Documents referenced in this section may be hand-delivered or mailed. If documents are mailed, they must be mailed certified mail, return receipt requested, or by next-day mail service. (2) If documents are mailed, proof of receipt shall be evidenced by the delivery date indicated on the United States Postal Service return receipt card (green card), or the pick up date indi |