Schools under common ownership that offer educational services and maintain ongoing individual facilities, faculty, or students shall be considered as independent entities. Schools that offer educational services as part of an educational program conducted at a location other than the licensed school location approved by the agency must obtain approval from the agency prior to conducting educational services at an auxiliary location.

(1) An auxiliary facility license is required if a school meets the following criteria:

(a) The educational program includes an externship/internship, clinical/practicum or lab/field component conducted at a location other than the school's approved licensed location that is offered as part of a program and required for completion of a program;

(b) The instructional program, site administration, and training are significantly integrated with the school's primary facility;

(c) The facility will not be represented as a school location and its address will not be advertised;

(d) No exterior or interior school emblem/logo is displayed at times other than during the training session; and

(e) No enrollment will be solicited or executed at the auxiliary facility.

(2) The agency may grant exemptions from licensing for off-campus instruction or activities that either:

(a) Absorb a temporary overload that the licensed facility cannot accommodate;

(b) Provide a single, specialized kind of training activity, generally on a short-term basis, under circumstances that cannot readily be accommodated at the licensed facility;

(c) Serve the public interest through off-campus instruction/activity offered in a rural or otherwise underserved location, to accommodate demonstrated community demand for a particular field or industry.

(3) The school must obtain approval from the agency before conducting operations at an auxiliary facility. To obtain approval, the school must document that the facility meets one or more of the above criteria in subsection (2) of this section.

(4) Activities occurring at an auxiliary facility must be incorporated into operational and financial data the school reports to the agency.

(5) The authorization period for an auxiliary facility cannot exceed the time stated on the school's license. Continued approval of an auxiliary facility must be made annually at the time of license renewal.