15-20.4 Postsecondary Educational Institutions - North Dakota Statutes

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CHAPTER 15-20.4POSTSECONDARY EDUCATIONAL INSTITUTIONS15-20.4-01. Definitions. As used in this chapter:1."Authorization to operate" or like term means approval of the board to operate or to
contract to operate a postsecondary educational institution in this state.2."Board" means the state board for career and technical education.3."Education" or "educational services" or like term includes any class, course, or
program of training, instruction, or study.4."Educational credentials" means degrees, diplomas, certificates, transcripts, reports,
documents, or letters of designation, marks, appellations, series of letters, numbers,
or words which signify, purport, or are generally taken to signify enrollment,
attendance, progress, or satisfactory completion of the requirements or prerequisites
for education at a postsecondary educational institution operating in this state.5."Entity" includes any company, firm, society, association, partnership, corporation,
limited liability company, and trust.6."Executive officer" means the director of career and technical education.7."Postsecondary educational institution" includes an academic, vocational, technical,
home study, business, professional, or other school, college, or university, or other
organization or person, operating in this state, offering educational credentials, or
offering instruction or educational services (primarily to persons who have completed
or terminated their secondary education or who are beyond the age of compulsory
high school attendance) for attainment of educational, professional, or vocational
objectives.8."To grant" includes awarding, selling, conferring, bestowing, or giving.9."To offer" includes, in addition to its usual meanings, advertising, publicizing,
soliciting, or encouraging any person, directly or indirectly, in any form, to perform
the act described.10."To operate" an educational institution, or like term, means to establish, keep, or
maintain any facility or location in this state where, from, or through which, education
is offered or given, or educational credentials are offered or granted, and includes
contracting with any person, group, or entity to perform any such act.15-20.4-02.Exemptions.The following education and educational institutions areexempted from the provisions of this chapter: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 board, 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 board,
and institutions offering such education exclusively.4.Certain education provided through short-term programs as determined by the
board.Page No. 15.Education offered by charitable institutions, organizations, or agencies, so
recognized by the board, provided the education is not advertised or promoted as
leading toward educational credentials.6.Postsecondary educational institutions established, operated, and governed by this
or any other state or its political subdivisions, as determined by the board and any
educational consortium that includes one or more of the institutions.7.Private four-year institutions chartered or incorporated and operating in the state
prior to July 1, 1977, so long as the institutions retain accreditation by national or
regional accrediting agencies recognized by the United States office of education.8.Schools of barbering regulated under chapter 43-04.9.Schools of cosmetology regulated under chapter 43-11.10.Schools of nursing regulated under chapter 43-12.1.11.Native American colleges operating in this state, established by federally recognized
Indian tribes.12.Postsecondary educational institutions not operating in this state.15-20.4-02.1.Voluntary application for authorization to operate.Although apostsecondary educational institution not operating in this state is exempt from this chapter by
section 15-20.4-02, the institution may subject itself to the requirements of this chapter by
applying for and being awarded an authorization to operate by the board. An authorization to
operate, as applied to a postsecondary educational institution not operating in this state, means
approval of the board to offer to students in this state educational services leading to educational
credentials.15-20.4-03. Board powers and duties. The board has, in addition to the powers andduties now vested in it by law, the following powers and duties to:1.Establish and require compliance with minimum standards and criteria for
postsecondary educational institutions under this chapter.The standards andcriteria must include quality of education, ethical and business practices, health and
safety and fiscal responsibility, which applicants for authorization to operate shall
meet:a.Before such authorization may be issued; andb.To continue such authorization in effect.The criteria and standards developed will effectuate the purposes of this chapter, but
will not unreasonably hinder legitimate educational innovation.2.Prescribe forms and conditions for, receive, investigate as it may deem necessary,
and act upon applications for authorization to operate postsecondary educational
institutions.3.Maintain a list of postsecondary educational institutions authorized to operate in this
state under the provisions of this chapter.The list must be available for theinformation of the public.4.Negotiate and enter into interstate reciprocity agreements with similar agencies in
other states, if in the judgment of the board such agreements are or will be helpful in
effectuating the purposes of this chapter; provided, however, that nothing contained
in any such reciprocity agreement may be construed as limiting the board's powers,Page No. 2duties, and responsibilities with respect to independently investigating or acting upon
any application for authorization to operate, or any application for renewal of such
authorization to operate, a postsecondary educational institution, or with respect to
the enforcement of any provision of this chapter, or any of the rules or regulations
promulgated hereunder.5.Receive and cause to be maintained as a permanent file, copies of academic
records specified by the board in the event any postsecondary educational institution
required to have an authorization to operate under this chapter proposes to
discontinue its operation.6.Promulgate such rules, regulations, and procedures necessary or appropriate for the
conduct of its work and the implementation of this chapter, and to hold such
hearings as it may deem advisable in accordance with chapter 28-32 or as required
by law in developing such rules, regulations, and procedures, or in aid of any
investigation or inquiry.7.Investigate as it may deem necessary, on its own initiative or in response to any
complaint lodged with it, any person, group, or entity subject to, or reasonably
believed by the board to be subject to, the jurisdiction of this chapter; and in
connection therewith to subpoena any persons, books, records, or documents
pertaining to such investigation. The board may require answers in writing under
oath to questions propounded by the board and may administer an oath or
affirmation to any person in connection with any investigation. The board may, after
hearing, revoke or suspend authorizations to operate. Subpoenas issued by the
board are enforceable by any district court.8.Require fees and bonds from postsecondary educational institutions in such sums
and under such conditions as it may establish; provided, that fees established may
not exceed the reasonable cost of the service being provided.9.Exercise other powers and duties implied but not enumerated in this section but in
conformity with the provisions of this chapter which, in the judgment of the board,
are necessary in order to carry out the provisions of this chapter.15-20.4-03.1. Authorization fee fund. There is created an authorization fee fund intowhich fees provided to the board upon application for authorization to operate a postsecondary
educational institution under section 15-20.4-03 must be deposited.The fund and interestearned on the fund may be spent by the board pursuant to legislative appropriation exclusively to
carry out the intent and purpose of this chapter. This fund is not subject to section 54-44.1-11.15-20.4-04. Minimum standards - Exceptions.1.All postsecondary educational institutions must be accredited by national or regional
accrediting agencies recognized by the United States department of education. The
board may additionally require such further evidence and make such further
investigation as in its judgment may be necessary. Any postsecondary educational
institution operating in this state seeking its first authorization to operate may be
issued a provisional authorization to operate on an annual basis until the institution
becomes eligible for accreditation by a recognized accrediting agency. Institutions
issued a provisional authorization to operate must demonstrate a substantial
good-faith showing of progress toward such status. Only upon accreditation shall an
institution become eligible for a regular authorization to operate.2.This section does not apply to postsecondary educational institutions operating in
this state that do not grant degrees and that offer mainly hands-on training in low
census occupations, as determined by the board."Degree" as used in thissubsection means a document that provides evidence or demonstrates completionPage No. 3of a course of instruction that results in the attainment of a rank or level of associate
or higher.15-20.4-05. Prohibition. A person, group, or entity of whatever kind, alone or in concertwith others, may not:1.Operate, in this state, a postsecondary educational institution not exempted from the
provisions of this chapter, unless said institution has a currently valid authorization to
operate issued pursuant to the provisions of this chapter.2.Instruct or educate, or offer to instruct or educate, including advertising or soliciting
for such purpose, enroll or offer to enroll, contract or offer to contract with any person
for such purpose, or award any educational credential, or contract with any institution
or party to perform any such act, at a facility or location in this state unless such
person, group, or entity observes and is in compliance with the minimum standards
and criteria established by the board pursuant to subsection 1 of section 15-20.4-03,
and the rules and regulations adopted by the board pursuant to subsection 6 of
section 15-20.4-03.3.Use the term "university", "institute", or "college" without authorization to do so from
the board.4.Grant, or offer to grant, educational credentials, without authorization to do so from
the board.15-20.4-06. Refund of tuition fees.1.Postsecondary educational institutions shall refund tuition and other charges, other
than a reasonable application fee, when written notice of cancellation is given by the
student in accordance with the following schedule:a.When notice is received prior to, or within seven days after completion of the
first day of instruction, or after receipt of the first correspondence lesson by the
institution, all tuition and other charges must be refunded to the student.b.When notice is received prior to, or within thirty days after completion of the first
day of instruction, or prior to the completion of one-fourth of the educational
services, all tuition and other charges except twenty-five percent thereof must
be refunded to the student.c.When notice is received upon or after completion of one-fourth of the
educational services, but prior to the completion of one-half of the educational
services, all tuition and other charges except fifty percent thereof must be
refunded to the student.d.When notice is received upon or after the completion of fifty percent of the
educational services, no tuition or other charges may be refunded to the
student.2.The provisions of this section do not prejudice the right of any student to recovery in
an action against any postsecondary educational institution for breach of contract or
fraud.3.A postsecondary educational institution may implement a refund schedule that
deviates from subsection 1 if the proposed refund schedule is more favorable to the
student than the schedule described in subsection 1.15-20.4-07. Negotiation of promissory instruments. Repealed by S.L. 2009, ch. 161,