(a) The following education and educational institutions are exempted from this part:

(1) Institutions exclusively offering instruction at any or all levels from preschool through the twelfth grade;

(2) Education sponsored by a bona fide trade, business, professional or fraternal organization, so recognized by the commission, solely for that organization's membership or offered on a no-fee basis;

(3) Education solely avocational or recreational in nature, as determined by the commission, and institutions offering such education exclusively;

(4) Education offered by eleemosynary institutions, organizations or agencies, so recognized by the commission; provided, that the education is not advertised or promoted as leading toward educational credentials;

(5) Postsecondary educational institutions established, operated, and governed by this state or its political subdivisions, including approved postsecondary training schools, academies, or facilities established, operated, and governed by this state or its political subdivisions and the colleges of applied technology under the exclusive control and jurisdiction of the board of regents;

(6) A postsecondary educational institution that:

(A) Has had its primary campus domiciled in the same state for at least twenty (20) consecutive years, continues to have its primary campus domiciled in that state, and is:

(i) The primary campus;

(ii) Another location of the institution in the same state where the primary campus is domiciled; or

(iii) An alternate location, including a branch or satellite campus, located in a state other than the state where the primary campus is domiciled, but has been located in the state where the alternate location is presently located for at least twenty (20) consecutive years;

(B) Is accredited by an accrediting agency recognized by the United States department of education and its primary campus has been accredited by a recognized accreditor for at least twenty (20) consecutive years;

(C) Is chartered where its primary campus is domiciled as a not-for-profit entity and has continuously been so chartered for at least twenty (20) consecutive years;

(D) Meets and maintains financial standards acceptable to the accreditor for the purpose of maintaining accreditation or to the United States department of education for the purpose of being a Title IV eligible institution; and

(E) Completes an information request form under subdivision (b)(3);

(7)

(A) Institutions operated solely as auction schools, barber schools, schools of cosmetology, or schools of electrology; provided, that any barber school or school of cosmetology licensed or registered with the board of cosmetology and barber examiners that is eligible for or chooses to seek eligibility for federal student financial aid programs under the Higher Education Act of 1965, as amended (20 U.S.C. §§ 1001-1161aa-1) shall be subject to all requirements of this part;

(B) Any authorization to engage in postsecondary education issued by the board of cosmetology and barber examiners, or any predecessor board, shall be null and of no effect upon the granting of authorization by the commission or after June 30, 2016, whichever is earlier;

(8) Institutions operated solely as schools for the study of law and subject to the approval of the board of law examiners for this state;

(9) Educational programs conducted by state-licensed health care institutions;

(10) Educational instruction that:

(A) Does not lead to a degree;

(B) Is regulated by the federal aviation administration; and

(C) Is offered by a postsecondary educational institution that does not require students receiving the instruction to enter into written or oral contracts of indebtedness;

(11) A nonprofit, regionally accredited educational institution:

(A) Offering online, competency-based education to adult students;

(B) Led by a chief executive or chancellor domiciled in Tennessee; and

(C) With activities and operations limited to the scope of a memorandum of understanding executed with the state of Tennessee in 2013; and

(12) Education offered as intensive review courses designed solely to prepare students for graduate or professional school entrance examinations and professional licensure examinations. For the purposes of this subdivision (a)(12), “professional licensure examinations” includes, but is not limited to:

(A) Certified public accountancy tests;

(B) Examinations for insurance or securities licensure and registration;

(C) Examinations for a professional practice in psychology; and

(D) Bar examinations.

(b)

(1) Any postsecondary educational institution exempt from this part by virtue of subdivision (a)(6) or (a)(11) shall lose the exemption upon the occurrence of one (1) of the following events, subject to appeal to the commission as provided at § 49-7-2010:

(A) Loss or failure to meet any of the listed criteria for exemption;

(B) Loss of Title IV federal student aid funding; or

(C) A three-year federal financial aid cohort default rate of thirty percent (30%) or higher for three (3) consecutive years or any single year over forty percent (40%) as reported by the United States department of education, office of postsecondary educational institutional data system.

(2) Any institution deemed to be exempt under subdivision (a)(6) as it existed prior to May 1, 2014, shall continue to be exempt as long as the institution registers with the commission under subdivision (b)(3).

(3) Postsecondary educational institutions that are exempt under subdivision (a)(6) shall annually complete an information request form. The information request form shall be created by the commission and shall require, at a minimum:

(A) The name of a contact person and related information such as an email address and telephone number;

(B) A description of the complaint process used by the postsecondary educational institution and the related complaint contact information;

(C) A brief description of the postsecondary educational institution's activities in Tennessee, including enrollment or recruitment;

(D) The number of Tennessee residents enrolled during the past fiscal year; and

(E) If applicable, documentation demonstrating that the postsecondary educational institution meets the exemption requirements of subdivision (a)(6).

(c) Notwithstanding any provision of this section to the contrary, an institution that has lost its exemption due to the occurrence of one (1) of the conditions listed in subdivisions (b)(1)(A)-(C) shall not be required to reestablish the twenty (20) consecutive year standards in order to regain its exempt status. Instead, the commission shall have the authority to reinstate the exemption once the condition that caused the loss of exemption has, in the opinion of the commission, been remedied.

(d) The commission shall establish and ensure that all postsecondary institutions in this state cooperatively provide for an integrated system of postsecondary education. The general assembly recognizing that any institution meeting the requirements of subdivisions (a)(6) and (11) is established by name as an educational institution and authorized to operate educational programs beyond secondary education, directs the commission to maintain and publish on its website a list of postsecondary educational institutions meeting the requirements of subdivision (a)(6) with its primary campus domiciled in this state or subdivision (a)(11). The commission shall guard against inappropriate and unnecessary conflict and duplication by promoting transferability of credits and easy access of information among institutions.