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CHAPTER 15-20.4POSTSECONDARY EDUCATIONAL INSTITUTIONS15-20.4-01. Definitions. As used in this chapter:1.&quot;Authorization to operate&quot; or like term means approval of the board to operate or to<br>contract to operate a postsecondary educational institution in this state.2.&quot;Board&quot; means the state board for career and technical education.3.&quot;Education&quot; or &quot;educational services&quot; or like term includes any class, course, or<br>program of training, instruction, or study.4.&quot;Educational credentials&quot; means degrees, diplomas, certificates, transcripts, reports,<br>documents, or letters of designation, marks, appellations, series of letters, numbers,<br>or words which signify, purport, or are generally taken to signify enrollment,<br>attendance, progress, or satisfactory completion of the requirements or prerequisites<br>for education at a postsecondary educational institution operating in this state.5.&quot;Entity&quot; includes any company, firm, society, association, partnership, corporation,<br>limited liability company, and trust.6.&quot;Executive officer&quot; means the director of career and technical education.7.&quot;Postsecondary educational institution&quot; includes an academic, vocational, technical,<br>home study, business, professional, or other school, college, or university, or other<br>organization or person, operating in this state, offering educational credentials, or<br>offering instruction or educational services (primarily to persons who have completed<br>or terminated their secondary education or who are beyond the age of compulsory<br>high school attendance) for attainment of educational, professional, or vocational<br>objectives.8.&quot;To grant&quot; includes awarding, selling, conferring, bestowing, or giving.9.&quot;To offer&quot; includes, in addition to its usual meanings, advertising, publicizing,<br>soliciting, or encouraging any person, directly or indirectly, in any form, to perform<br>the act described.10.&quot;To operate&quot; an educational institution, or like term, means to establish, keep, or<br>maintain any facility or location in this state where, from, or through which, education<br>is offered or given, or educational credentials are offered or granted, and includes<br>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<br>the twelfth grade.2.Education sponsored by a bona fide trade, business, professional, or fraternal<br>organization, so recognized by the board, solely for that organization's membership,<br>or offered on a no-fee basis.3.Education solely avocational or recreational in nature, as determined by the board,<br>and institutions offering such education exclusively.4.Certain education provided through short-term programs as determined by the<br>board.Page No. 15.Education offered by charitable institutions, organizations, or agencies, so<br>recognized by the board, provided the education is not advertised or promoted as<br>leading toward educational credentials.6.Postsecondary educational institutions established, operated, and governed by this<br>or any other state or its political subdivisions, as determined by the board and any<br>educational consortium that includes one or more of the institutions.7.Private four-year institutions chartered or incorporated and operating in the state<br>prior to July 1, 1977, so long as the institutions retain accreditation by national or<br>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<br>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<br>section 15-20.4-02, the institution may subject itself to the requirements of this chapter by<br>applying for and being awarded an authorization to operate by the board. An authorization to<br>operate, as applied to a postsecondary educational institution not operating in this state, means<br>approval of the board to offer to students in this state educational services leading to educational<br>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<br>postsecondary educational institutions under this chapter.The standards andcriteria must include quality of education, ethical and business practices, health and<br>safety and fiscal responsibility, which applicants for authorization to operate shall<br>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<br>will not unreasonably hinder legitimate educational innovation.2.Prescribe forms and conditions for, receive, investigate as it may deem necessary,<br>and act upon applications for authorization to operate postsecondary educational<br>institutions.3.Maintain a list of postsecondary educational institutions authorized to operate in this<br>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<br>other states, if in the judgment of the board such agreements are or will be helpful in<br>effectuating the purposes of this chapter; provided, however, that nothing contained<br>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<br>any application for authorization to operate, or any application for renewal of such<br>authorization to operate, a postsecondary educational institution, or with respect to<br>the enforcement of any provision of this chapter, or any of the rules or regulations<br>promulgated hereunder.5.Receive and cause to be maintained as a permanent file, copies of academic<br>records specified by the board in the event any postsecondary educational institution<br>required to have an authorization to operate under this chapter proposes to<br>discontinue its operation.6.Promulgate such rules, regulations, and procedures necessary or appropriate for the<br>conduct of its work and the implementation of this chapter, and to hold such<br>hearings as it may deem advisable in accordance with chapter 28-32 or as required<br>by law in developing such rules, regulations, and procedures, or in aid of any<br>investigation or inquiry.7.Investigate as it may deem necessary, on its own initiative or in response to any<br>complaint lodged with it, any person, group, or entity subject to, or reasonably<br>believed by the board to be subject to, the jurisdiction of this chapter; and in<br>connection therewith to subpoena any persons, books, records, or documents<br>pertaining to such investigation. The board may require answers in writing under<br>oath to questions propounded by the board and may administer an oath or<br>affirmation to any person in connection with any investigation. The board may, after<br>hearing, revoke or suspend authorizations to operate. Subpoenas issued by the<br>board are enforceable by any district court.8.Require fees and bonds from postsecondary educational institutions in such sums<br>and under such conditions as it may establish; provided, that fees established may<br>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<br>conformity with the provisions of this chapter which, in the judgment of the board,<br>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<br>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<br>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<br>accrediting agencies recognized by the United States department of education. The<br>board may additionally require such further evidence and make such further<br>investigation as in its judgment may be necessary. Any postsecondary educational<br>institution operating in this state seeking its first authorization to operate may be<br>issued a provisional authorization to operate on an annual basis until the institution<br>becomes eligible for accreditation by a recognized accrediting agency. Institutions<br>issued a provisional authorization to operate must demonstrate a substantial<br>good-faith showing of progress toward such status. Only upon accreditation shall an<br>institution become eligible for a regular authorization to operate.2.This section does not apply to postsecondary educational institutions operating in<br>this state that do not grant degrees and that offer mainly hands-on training in low<br>census occupations, as determined by the board.&quot;Degree&quot; 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<br>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<br>provisions of this chapter, unless said institution has a currently valid authorization to<br>operate issued pursuant to the provisions of this chapter.2.Instruct or educate, or offer to instruct or educate, including advertising or soliciting<br>for such purpose, enroll or offer to enroll, contract or offer to contract with any person<br>for such purpose, or award any educational credential, or contract with any institution<br>or party to perform any such act, at a facility or location in this state unless such<br>person, group, or entity observes and is in compliance with the minimum standards<br>and criteria established by the board pursuant to subsection 1 of section 15-20.4-03,<br>and the rules and regulations adopted by the board pursuant to subsection 6 of<br>section 15-20.4-03.3.Use the term &quot;university&quot;, &quot;institute&quot;, or &quot;college&quot; without authorization to do so from<br>the board.4.Grant, or offer to grant, educational credentials, without authorization to do so from<br>the board.15-20.4-06. Refund of tuition fees.1.Postsecondary educational institutions shall refund tuition and other charges, other<br>than a reasonable application fee, when written notice of cancellation is given by the<br>student in accordance with the following schedule:a.When notice is received prior to, or within seven days after completion of the<br>first day of instruction, or after receipt of the first correspondence lesson by the<br>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<br>day of instruction, or prior to the completion of one-fourth of the educational<br>services, all tuition and other charges except twenty-five percent thereof must<br>be refunded to the student.c.When notice is received upon or after completion of one-fourth of the<br>educational services, but prior to the completion of one-half of the educational<br>services, all tuition and other charges except fifty percent thereof must be<br>refunded to the student.d.When notice is received upon or after the completion of fifty percent of the<br>educational services, no tuition or other charges may be refunded to the<br>student.2.The provisions of this section do not prejudice the right of any student to recovery in<br>an action against any postsecondary educational institution for breach of contract or<br>fraud.3.A postsecondary educational institution may implement a refund schedule that<br>deviates from subsection 1 if the proposed refund schedule is more favorable to the<br>student than the schedule described in subsection 1.15-20.4-07. Negotiation of promissory instruments. 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t15/pdf/t15c204.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 15-20.4POSTSECONDARY EDUCATIONAL INSTITUTIONS15-20.4-01. Definitions. As used in this chapter:1.\u0026quot;Authorization to operate\u0026quot; or like term means approval of the board to operate or to\u003cbr\u003econtract to operate a postsecondary educational institution in this state.2.\u0026quot;Board\u0026quot; means the state board for career and technical education.3.\u0026quot;Education\u0026quot; or \u0026quot;educational services\u0026quot; or like term includes any class, course, or\u003cbr\u003eprogram of training, instruction, or study.4.\u0026quot;Educational credentials\u0026quot; means degrees, diplomas, certificates, transcripts, reports,\u003cbr\u003edocuments, or letters of designation, marks, appellations, series of letters, numbers,\u003cbr\u003eor words which signify, purport, or are generally taken to signify enrollment,\u003cbr\u003eattendance, progress, or satisfactory completion of the requirements or prerequisites\u003cbr\u003efor education at a postsecondary educational institution operating in this state.5.\u0026quot;Entity\u0026quot; includes any company, firm, society, association, partnership, corporation,\u003cbr\u003elimited liability company, and trust.6.\u0026quot;Executive officer\u0026quot; means the director of career and technical education.7.\u0026quot;Postsecondary educational institution\u0026quot; includes an academic, vocational, technical,\u003cbr\u003ehome study, business, professional, or other school, college, or university, or other\u003cbr\u003eorganization or person, operating in this state, offering educational credentials, or\u003cbr\u003eoffering instruction or educational services (primarily to persons who have completed\u003cbr\u003eor terminated their secondary education or who are beyond the age of compulsory\u003cbr\u003ehigh school attendance) for attainment of educational, professional, or vocational\u003cbr\u003eobjectives.8.\u0026quot;To grant\u0026quot; includes awarding, selling, conferring, bestowing, or giving.9.\u0026quot;To offer\u0026quot; includes, in addition to its usual meanings, advertising, publicizing,\u003cbr\u003esoliciting, or encouraging any person, directly or indirectly, in any form, to perform\u003cbr\u003ethe act described.10.\u0026quot;To operate\u0026quot; an educational institution, or like term, means to establish, keep, or\u003cbr\u003emaintain any facility or location in this state where, from, or through which, education\u003cbr\u003eis offered or given, or educational credentials are offered or granted, and includes\u003cbr\u003econtracting 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\u003cbr\u003ethe twelfth grade.2.Education sponsored by a bona fide trade, business, professional, or fraternal\u003cbr\u003eorganization, so recognized by the board, solely for that organization's membership,\u003cbr\u003eor offered on a no-fee basis.3.Education solely avocational or recreational in nature, as determined by the board,\u003cbr\u003eand institutions offering such education exclusively.4.Certain education provided through short-term programs as determined by the\u003cbr\u003eboard.Page No. 15.Education offered by charitable institutions, organizations, or agencies, so\u003cbr\u003erecognized by the board, provided the education is not advertised or promoted as\u003cbr\u003eleading toward educational credentials.6.Postsecondary educational institutions established, operated, and governed by this\u003cbr\u003eor any other state or its political subdivisions, as determined by the board and any\u003cbr\u003eeducational consortium that includes one or more of the institutions.7.Private four-year institutions chartered or incorporated and operating in the state\u003cbr\u003eprior to July 1, 1977, so long as the institutions retain accreditation by national or\u003cbr\u003eregional 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\u003cbr\u003eIndian 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\u003cbr\u003esection 15-20.4-02, the institution may subject itself to the requirements of this chapter by\u003cbr\u003eapplying for and being awarded an authorization to operate by the board. An authorization to\u003cbr\u003eoperate, as applied to a postsecondary educational institution not operating in this state, means\u003cbr\u003eapproval of the board to offer to students in this state educational services leading to educational\u003cbr\u003ecredentials.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\u003cbr\u003epostsecondary educational institutions under this chapter.The standards andcriteria must include quality of education, ethical and business practices, health and\u003cbr\u003esafety and fiscal responsibility, which applicants for authorization to operate shall\u003cbr\u003emeet: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\u003cbr\u003ewill not unreasonably hinder legitimate educational innovation.2.Prescribe forms and conditions for, receive, investigate as it may deem necessary,\u003cbr\u003eand act upon applications for authorization to operate postsecondary educational\u003cbr\u003einstitutions.3.Maintain a list of postsecondary educational institutions authorized to operate in this\u003cbr\u003estate 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\u003cbr\u003eother states, if in the judgment of the board such agreements are or will be helpful in\u003cbr\u003eeffectuating the purposes of this chapter; provided, however, that nothing contained\u003cbr\u003ein 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\u003cbr\u003eany application for authorization to operate, or any application for renewal of such\u003cbr\u003eauthorization to operate, a postsecondary educational institution, or with respect to\u003cbr\u003ethe enforcement of any provision of this chapter, or any of the rules or regulations\u003cbr\u003epromulgated hereunder.5.Receive and cause to be maintained as a permanent file, copies of academic\u003cbr\u003erecords specified by the board in the event any postsecondary educational institution\u003cbr\u003erequired to have an authorization to operate under this chapter proposes to\u003cbr\u003ediscontinue its operation.6.Promulgate such rules, regulations, and procedures necessary or appropriate for the\u003cbr\u003econduct of its work and the implementation of this chapter, and to hold such\u003cbr\u003ehearings as it may deem advisable in accordance with chapter 28-32 or as required\u003cbr\u003eby law in developing such rules, regulations, and procedures, or in aid of any\u003cbr\u003einvestigation or inquiry.7.Investigate as it may deem necessary, on its own initiative or in response to any\u003cbr\u003ecomplaint lodged with it, any person, group, or entity subject to, or reasonably\u003cbr\u003ebelieved by the board to be subject to, the jurisdiction of this chapter; and in\u003cbr\u003econnection therewith to subpoena any persons, books, records, or documents\u003cbr\u003epertaining to such investigation. The board may require answers in writing under\u003cbr\u003eoath to questions propounded by the board and may administer an oath or\u003cbr\u003eaffirmation to any person in connection with any investigation. The board may, after\u003cbr\u003ehearing, revoke or suspend authorizations to operate. Subpoenas issued by the\u003cbr\u003eboard are enforceable by any district court.8.Require fees and bonds from postsecondary educational institutions in such sums\u003cbr\u003eand under such conditions as it may establish; provided, that fees established may\u003cbr\u003enot exceed the reasonable cost of the service being provided.9.Exercise other powers and duties implied but not enumerated in this section but in\u003cbr\u003econformity with the provisions of this chapter which, in the judgment of the board,\u003cbr\u003eare 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\u003cbr\u003eeducational 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\u003cbr\u003ecarry 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\u003cbr\u003eaccrediting agencies recognized by the United States department of education. The\u003cbr\u003eboard may additionally require such further evidence and make such further\u003cbr\u003einvestigation as in its judgment may be necessary. Any postsecondary educational\u003cbr\u003einstitution operating in this state seeking its first authorization to operate may be\u003cbr\u003eissued a provisional authorization to operate on an annual basis until the institution\u003cbr\u003ebecomes eligible for accreditation by a recognized accrediting agency. Institutions\u003cbr\u003eissued a provisional authorization to operate must demonstrate a substantial\u003cbr\u003egood-faith showing of progress toward such status. Only upon accreditation shall an\u003cbr\u003einstitution become eligible for a regular authorization to operate.2.This section does not apply to postsecondary educational institutions operating in\u003cbr\u003ethis state that do not grant degrees and that offer mainly hands-on training in low\u003cbr\u003ecensus occupations, as determined by the board.\u0026quot;Degree\u0026quot; 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\u003cbr\u003eor 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\u003cbr\u003eprovisions of this chapter, unless said institution has a currently valid authorization to\u003cbr\u003eoperate issued pursuant to the provisions of this chapter.2.Instruct or educate, or offer to instruct or educate, including advertising or soliciting\u003cbr\u003efor such purpose, enroll or offer to enroll, contract or offer to contract with any person\u003cbr\u003efor such purpose, or award any educational credential, or contract with any institution\u003cbr\u003eor party to perform any such act, at a facility or location in this state unless such\u003cbr\u003eperson, group, or entity observes and is in compliance with the minimum standards\u003cbr\u003eand criteria established by the board pursuant to subsection 1 of section 15-20.4-03,\u003cbr\u003eand the rules and regulations adopted by the board pursuant to subsection 6 of\u003cbr\u003esection 15-20.4-03.3.Use the term \u0026quot;university\u0026quot;, \u0026quot;institute\u0026quot;, or \u0026quot;college\u0026quot; without authorization to do so from\u003cbr\u003ethe board.4.Grant, or offer to grant, educational credentials, without authorization to do so from\u003cbr\u003ethe board.15-20.4-06. Refund of tuition fees.1.Postsecondary educational institutions shall refund tuition and other charges, other\u003cbr\u003ethan a reasonable application fee, when written notice of cancellation is given by the\u003cbr\u003estudent in accordance with the following schedule:a.When notice is received prior to, or within seven days after completion of the\u003cbr\u003efirst day of instruction, or after receipt of the first correspondence lesson by the\u003cbr\u003einstitution, 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\u003cbr\u003eday of instruction, or prior to the completion of one-fourth of the educational\u003cbr\u003eservices, all tuition and other charges except twenty-five percent thereof must\u003cbr\u003ebe refunded to the student.c.When notice is received upon or after completion of one-fourth of the\u003cbr\u003eeducational services, but prior to the completion of one-half of the educational\u003cbr\u003eservices, all tuition and other charges except fifty percent thereof must be\u003cbr\u003erefunded to the student.d.When notice is received upon or after the completion of fifty percent of the\u003cbr\u003eeducational services, no tuition or other charges may be refunded to the\u003cbr\u003estudent.2.The provisions of this section do not prejudice the right of any student to recovery in\u003cbr\u003ean action against any postsecondary educational institution for breach of contract or\u003cbr\u003efraud.3.A postsecondary educational institution may implement a refund schedule that\u003cbr\u003edeviates from subsection 1 if the proposed refund schedule is more favorable to the\u003cbr\u003estudent than the schedule described in subsection 1.15-20.4-07. Negotiation of promissory instruments. 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