32-3024. Out-of-state registration; qualifications; records requirements; renewal; fee

A. This section applies to any private postsecondary education institution, regardless of accreditation status, whether or not the private postsecondary education institution offers vocational or degree programs, that is not domiciled in this state, that enrolls a resident of this state in a fully online program and that is not an active participant in the national council for state authorization reciprocity agreement.

B. A private postsecondary education institution that is not domiciled in this state shall submit an application for out-of-state registration to the board that includes:

1. Evidence that the private postsecondary education institution is legally authorized to operate in the state in which it is domiciled by the home state's postsecondary education regulatory agency.

2. Evidence that the private postsecondary education institution is accredited. If the private postsecondary education institution is not accredited, the private postsecondary education institution shall submit the additional information required in subsection C of this section.

3. Evidence that the private postsecondary education institution is providing financial protection for students in this state by providing one of the following:

(a) If the private postsecondary education institution is accredited, proof of financial viability pursuant to rules adopted by the board that includes the private postsecondary education institution's federal financial composite score, which must be greater than 1.5 for the current year.

(b) If the private postsecondary education institution is not accredited or does not meet the requirements of subdivision (a) of this paragraph, a surety bond, cash deposit or irrevocable letter of credit pursuant to section 32-3023, as determined by the board. The amount of the surety bond, cash deposit or irrevocable letter of credit shall be based on the institution's prior year gross tuition revenue from residents of this state.

4. The most recent year-to-date parent company financial statements and the most recently completed fiscal year financial statements in accordance with generally accepted accounting principles. The financial statements required by this paragraph shall include a balance sheet, a statement of cash flows and profit and loss statements.

5. An example of the private postsecondary education institution's official student transcript.

C. A private postsecondary education institution that is not accredited shall submit the following for review and approval by the board:

1. Program information that is approved by the private postsecondary education institution's home state's postsecondary education regulatory agency and that is offered by the private postsecondary education institution to residents of this state, including the catalog, curricula, course descriptions and program objectives.

2. A list of all faculty teaching residents of this state and evidence of the faculty's qualifications to teach in the faculty's assigned subject areas.

3. Evidence that all vocational or degree programs offered meet the minimum credit hour and program length standards established by the private postsecondary education institution's home state.

4. A signed attestation from a responsible officer of the private postsecondary education institution affirming that the private postsecondary education institution will:

(a) Comply with the board's pro rata refund policy as established by board rule for all students of this state.

(b) Provide the following notifications to students who are residents of this state:

(i) That the private postsecondary education institution is registered to operate by the board.

(ii) An outline of the procedures students may follow to file a complaint against the private postsecondary education institution, including a statement that if a complaint is not resolved to the student's satisfaction, the student may contact the board. The private postsecondary education institution shall provide contact information for the board and shall ensure that students will not be retaliated against for filing a complaint.

(iii) That the transferability of credits earned at the private postsecondary education institution is at the sole discretion of the receiving institution.

(iv) For private postsecondary education institutions offering programs or courses leading to or advertised as leading to professional licensure, a statement of whether completion of the program is sufficient to meet licensure requirements in this state. If the private postsecondary education institution is unable to determine whether a program will meet the professional licensure requirements of this state, the notification shall state that the program does not satisfy the licensure requirements of this state.

D. A private postsecondary education institution that is registered pursuant to this section shall report in writing to the board within thirty days after the occurrence of any of the following:

1. Any change in accreditation status, including any adverse action, probation or show-cause order by the private postsecondary education institution's accrediting agency.

2. Any suspension or revocation of the private postsecondary education institution's authorization by the private postsecondary education institution's home state or any other state.

3. Any material change in the private postsecondary education institution's financial status or a filing for bankruptcy.

4. Any new education, consumer protection or fraud-related enforcement action or lawsuit filed against the private postsecondary education institution by a state or federal agency.

5. Any change in ownership of the private postsecondary education institution following approval by the private postsecondary institution's home state.

E. Each private postsecondary education institution with out-of-state registration shall maintain a student's official transcript in perpetuity. The private postsecondary education institution shall maintain a student's enrollment and financing agreements for a period of at least ten years after the student is no longer enrolled. All records required to be retained by this subsection shall be maintained in digital form. Within thirty days after closure of the private postsecondary education institution, all student transcripts for residents of this state shall be submitted to the board.

F. An out-of-state registration for a private postsecondary education institution is valid for one year. An out-of-state registration shall be renewed annually through an application approved by the board. A private postsecondary education institution shall pay a fee in an amount set by the board for both initial out-of-state registration and renewal of registration.