North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1064 Compare Versions

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1-Sixty-ninth Legislative Assembly of North Dakota
2-In Regular Session Commencing Tuesday, January 7, 2025
3-HOUSE BILL NO. 1064
4-(Education Committee)
1+25.8070.02000
2+Sixty-ninth
3+Legislative Assembly
4+of North Dakota
5+Introduced by
6+Education Committee
57 (At the request of the State Board of Higher Education)
6-AN ACT to create and enact a new section to chapter 15-18.1 of the North Dakota Century Code,
7-relating to the national council for state authorization reciprocity agreements membership; to
8-amend and reenact sections 15-18.1-01, 15-18.1-02, 15-18.1-05, 15-18.1-06, and 15-18.1-10,
9-and subsection 4 of section 15-18.1-13 of the North Dakota Century Code, relating to
10-postsecondary education institution standards; and to repeal section 15-18.1-03 of the North
11-Dakota Century Code, relating to the authorization of a postsecondary educational institution not
12-operating in this state.
8+A BILL for an Act to create and enact a new section to chapter 15-18.1 of the North Dakota
9+Century Code, relating to the national council for state authorization reciprocity agreements
10+membership; to amend and reenact sections 15-18.1-01, 15-18.1-02, 15-18.1-05, 15-18.1-06,
11+and 15-18.1-10, and subsection 4 of section 15-18.1-13 of the North Dakota Century Code,
12+relating to postsecondary education institution standards; and to repeal section 15-18.1-03 of
13+the North Dakota Century Code, relating to the authorization of a postsecondary educational
14+institution not operating in this state.
1315 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
14-SECTION 1. AMENDMENT. Section 15-18.1-01 of the North Dakota Century Code is amended and
15-reenacted as follows:
16+SECTION 1. AMENDMENT. Section 15-18.1-01 of the North Dakota Century Code is
17+amended and reenacted as follows:
1618 15-18.1-01. Definitions.
1719 As used in this chapter:
1820 1."Accredited" means approved by an accrediting body recognized by the United States
1921 department of education.
20-2."Authorization to operate" or like term means approval of the board or North Dakota university
21-system office, as applicable, to operate or to contract to operate a postsecondary educational
22-institution in this state.
22+2."Authorization to operate" or like term means approval of the board or North Dakota
23+university system office, as applicable, to operate or to contract to operate a
24+postsecondary educational institution in this state.
2325 2.3."Board" means the state board of higher education.
24-4."Distance education" is education using one or more types of technology to deliver instruction
25-to a student who is separated from the instructor and to support regular and substantive
26-interaction between the student and the instructor synchronously or asynchronously.
27-3.5."Education" or "educational services" or like term includes any class, course, or program of
28-training, instruction, or study.
26+4."Distance education" is education using one or more types of technology to deliver
27+instruction to a student who is separated from the instructor and to support regular and
28+substantive interaction between the student and the instructor synchronously or
29+asynchronously.
30+Page No. 1 25.8070.02000
31+ENGROSSED HOUSE BILL NO. 1064
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56+3.5."Education" or "educational services" or like term includes any class, course, or
57+program of training, instruction, or study.
2958 4.6."Educational credentials" means degrees, diplomas, certificates, transcripts, reports,
30-documents, or letters of designation, marks, appellations, series of letters, numbers, or words
31-which signify, purport, or are generally taken to signify enrollment, attendance, progress, or
32-satisfactory completion of the requirements or prerequisites for education at a postsecondary
33-educational institution operating in this statea postsecondary credential leading to a diploma;
34-certificate; or an associate, bachelor, master, or doctorate degree. This term does not include
35-a postsecondary credential leading to an honorary degree or other unearned degree.
36-7."Person" means an individual, organization, government, political subdivision, or government
37-agency or instrumentality. The term does not include environmental elements, artificial
38-intelligence, an animal, or an inanimate object.
59+documents, or letters of designation, marks, appellations, series of letters, numbers, or
60+words which signify, purport, or are generally taken to signify enrollment, attendance,
61+progress, or satisfactory completion of the requirements or prerequisites for education
62+at a postsecondary educational institution operating in this statea postsecondary
63+credential leading to a diploma; certificate; or an associate, bachelor, master, or
64+doctorate degree. This term does not include a postsecondary credential leading to an
65+honorary degree or other unearned degree.
66+7."Person" means an individual, organization, government, political subdivision, or
67+government agency or instrumentality. The term does not include environmental
68+elements, artificial intelligence, an animal, or an inanimate object.
3969 5.8."Physical presence" means a presence established by:
4070 a.Maintaining a physical location in the state where students receive instruction or
41-providing instruction to students at a designated location and time in the state; H. B. NO. 1064 - PAGE 2
71+providing instruction to students at a designated location and time in the state;
4272 b.Maintaining an administrative office in the state for students receiving in-person
4373 instruction or distance education;
4474 c.Maintaining a mailing address in the state and a local telephone number;
4575 d.Providing office space in the state for instructional or noninstructional staff; and
46-e.Providing student support services at a physical location in the state, whether operated
47-by or on behalf of the institution.
48-9."Postsecondary educational institution" means an academic, technical, home study, business,
49-professional or other school, college, or university, or other person, operating in this state,
50-offering educational credentials or offering instruction or educational services, primarily to any
51-individual who has completed or terminated secondary education or who is beyond the age of
52-compulsory high school attendance, for attainment of educational, or professional objectives
53-at the associate in arts level or higheragency or political subdivision of the state, individual,
54-partnership, company, firm, society, trust, association, corporation, or any combination that:
76+e.Providing student support services at a physical location in the state, whether
77+operated by or on behalf of the institution.
78+9."Postsecondary educational institution" means an academic, technical, home study,
79+business, professional or other school, college, or university, or other person,
80+operating in this state, offering educational credentials or offering instruction or
81+educational services, primarily to any individual who has completed or terminated
82+secondary education or who is beyond the age of compulsory high school attendance,
83+for attainment of educational, or professional objectives at the associate in arts level or
84+higheragency or political subdivision of the state, individual, partnership, company,
85+firm, society, trust, association, corporation, or any combination that:
5586 a.Is, owns, or operates a postsecondary educational institution.
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56120 b.Provides a postsecondary course of instruction leading to a degree.
57-c.Uses in its name the term "college", "academy", "institute", or "university" or a similar
58-term to imply the person is primarily engaged in the education of students at the
59-postsecondary level, and charges for its services.
121+c.Uses in its name the term "college", "academy", "institute", or "university" or a
122+similar term to imply the person is primarily engaged in the education of students
123+at the postsecondary level, and charges for its services.
60124 6.10."To grant" includes awarding, selling, conferring, bestowing, or giving.
61-7.11."To offer" includes, in addition to its usual meanings, advertising, publicizing, soliciting, or
62-encouraging any individual, directly or indirectly, in any form, to perform the act described.
63-8."To operate" an educational institution, or like term, means to establish, keep, or maintain any
64-facility or location in this state where, from, or through which, education is offered or given, or
65-educational credentials are offered or granted, and includes contracting with any person to
66-perform any such act.
67-SECTION 2. AMENDMENT. Section 15-18.1-02 of the North Dakota Century Code is amended and
68-reenacted as follows:
125+7.11."To offer" includes, in addition to its usual meanings, advertising, publicizing, soliciting,
126+or encouraging any individual, directly or indirectly, in any form, to perform the act
127+described.
128+8."To operate" an educational institution, or like term, means to establish, keep, or
129+maintain any facility or location in this state where, from, or through which, education
130+is offered or given, or educational credentials are offered or granted, and includes
131+contracting with any person to perform any such act.
132+SECTION 2. AMENDMENT. Section 15-18.1-02 of the North Dakota Century Code is
133+amended and reenacted as follows:
69134 15-18.1-02. Exemptions.
70-The following education and educational schools or institutions are exempted from the provisions of
71-this chapter:
72-1.Education sponsored by a bona fideEducational programs conducted by a trade, business,
73-professional, or fraternal organization, so recognized by the board, solely for that
74-organization's membership, or offered on a no-fee basis.
75-2.Education offered by charitable institutions, organizations, or agencies, so recognized by the
76-board, provided the education is not advertised or promoted as leading toward educational
77-credentials.
78-3.Postsecondary educational institutions established, operated, and governed by this or any
79-other state or its political subdivisions, as determined by the board and any educational
80-consortium that includes one or more of the institutions.
81-4.Private four-year institutions chartered or incorporated and operating in the state prior to July
82-1, 1977, so long as the institutions retain accreditation by national or regional accrediting
83-agenciesand are recognized by the United States officedepartment of education. H. B. NO. 1064 - PAGE 3
135+The following education and educational schools or institutions are exempted from the
136+provisions of this chapter:
137+1.Education sponsored by a bona fideEducational programs conducted by a trade,
138+business, professional, or fraternal organization, so recognized by the board, solely for
139+that organization's membership, or offered on a no-fee basis.
140+2.Education offered by charitable institutions, organizations, or agencies, so recognized
141+by the board, provided the education is not advertised or promoted as leading toward
142+educational credentials.
143+3.Postsecondary educational institutions established, operated, and governed by this or
144+any other state or its political subdivisions, as determined by the board and any
145+educational consortium that includes one or more of the institutions.
146+4.Private four-year institutions chartered or incorporated and operating in the state prior
147+to July 1, 1977, so long as the institutions retain accreditation by national or regional
148+accrediting agenciesand are recognized by the United States officedepartment of
149+education.
84150 5.Schools of nursing regulated under chapter 43-12.1.
85-6.Native American colleges operating in this state, established by federally recognized Indian
86-tribes.
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184+6.Native American colleges operating in this state, established by federally recognized
185+Indian tribes.
87186 7.Postsecondary educational institutions not operating in this state.
88187 8.7.Institutions whose only physical presence in this state consists of students enrolled in
89188 practicums, internships, clinicals, or student teaching in this state.
90189 9.8.Postsecondary career schools regulated under chapter 15-20.4.
91-SECTION 3. AMENDMENT. Section 15-18.1-05 of the North Dakota Century Code is amended and
92-reenacted as follows:
190+SECTION 3. AMENDMENT. Section 15-18.1-05 of the North Dakota Century Code is
191+amended and reenacted as follows:
93192 15-18.1-05. Minimum standards to operate with a physical presence in North Dakota.
94-All postsecondary educational institutions with a physical presence in the state must be accredited
95-by national or regional accrediting agencies recognized by the United States department of education,
96-have a federal financial responsibility composite score greater than one and one - half, and provide
97-students with institutional public disclosures as defined by the board. The board additionally may
98-additionally require such further evidence and make such further investigation as in its judgment may
99-be necessary. Any postsecondary educational institution operating in this state seeking its first
100-authorization to operate may be issued a provisional authorization to operate on an annual basis until
101-the institution becomes eligible for accreditation by a recognized accrediting agency. Institutions issued
102-a provisional authorization to operate must demonstrate a substantial good-faith showing of progress
103-toward such status. Only uponUpon accreditation may an institution may become eligible for a
104-regularstate authorization to operate. An institution shall give written notification to the board within
105-thirty days of any change to the institution's accreditation status, change of ownership, or change in
193+All postsecondary educational institutions with a physical presence in the state must be
194+accredited by national or regional accrediting agencies recognized by the United States
195+department of education, have a federal financial responsibility composite score greater than
196+one and one - half, and provide students with institutional public disclosures as defined by the
197+board. The board additionally may additionally require such further evidence and make such
198+further investigation as in its judgment may be necessary. Any postsecondary educational
199+institution operating in this state seeking its first authorization to operate may be issued a
200+provisional authorization to operate on an annual basis until the institution becomes eligible for
201+accreditation by a recognized accrediting agency. Institutions issued a provisional authorization
202+to operate must demonstrate a substantial good-faith showing of progress toward such status.
203+Only uponUpon accreditation may an institution may become eligible for a regularstate
204+authorization to operate. An institution shall give written notification to the board within thirty
205+days of any change to the institution's accreditation status, change of ownership, or change in
106206 federal financial responsibility composite score.
107-SECTION 4. AMENDMENT. Section 15-18.1-06 of the North Dakota Century Code is amended and
108-reenacted as follows:
207+SECTION 4. AMENDMENT. Section 15-18.1-06 of the North Dakota Century Code is
208+amended and reenacted as follows:
109209 15-18.1-06. Prohibition - Penalty.
110210 1.A person may not:
111-a.Operate, in this state, a postsecondary educational institution not exempted from the
112-provisions of this chapter, unless the institution has a currently valid authorization to
113-operate issued under this chapter.
114-b.Instruct or educate, or offer to instruct or educate, including advertising or soliciting for
115-such purpose, enroll or offer to enroll, contract or offer to contract with any person for
116-such purpose, or award any educational credential, or contract with any institution or
117-party to perform any such act, at a facility or location in this state unless suchthe person,
118-group, or entity observes and is in compliancecomplies with the minimum standards and
119-criteria established by the board and the policies adopted by the board.
120-c.Use the term "university", "institute", or "college" without authorization to do so from the
121-board.
122-d.Grant, or offer to grant, educational credentials, without authorization to do so from the
123-board.
211+a.Operate, in this state, a postsecondary educational institution not exempted from
212+the provisions of this chapter, unless the institution has a currently valid
213+authorization to operate issued under this chapter.
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246+b.Instruct or educate, or offer to instruct or educate, including advertising or
247+soliciting for such purpose, enroll or offer to enroll, contract or offer to contract
248+with any person for such purpose, or award any educational credential, or
249+contract with any institution or party to perform any such act, at a facility or
250+location in this state unless suchthe person, group, or entity observes and is in
251+compliancecomplies with the minimum standards and criteria established by the
252+board and the policies adopted by the board.
253+c.Use the term "university", "institute", or "college" without authorization to do so
254+from the board.
255+d.Grant, or offer to grant, educational credentials, without authorization to do so
256+from the board.
124257 2.A person who violates this section, or who fails or refuses to deposit with the board the
125-records required by the board under this chapter, is subject to a civil penalty not to exceed one
126-hundredone thousand five hundred dollars for each violation. Each day's failure to comply with
127-these provisions is a separate violation. The fine may be imposed by the board in an H. B. NO. 1064 - PAGE 4
128-administrative proceeding or by any court of competent jurisdictionconsistent with board policy
129-and procedure.
130-3.A person who willfully violates this section, or who willfully fails or refuses to deposit with the
131-board the records required by the board under this chapter, is guilty of a class B misdemeanor.
132-The criminal sanctions may be imposed by a court of competent jurisdiction in an action
133-brought by the attorney general of this state or a state's attorney pursuant to section
134-15-18.1-12.
135-4.The board may suspend or revoke a person's authorization to offer distance education to
136-North Dakota residents until the person complies with the national council for state
137-authorization reciprocity agreements membership requirements, unless the person is exempt
138-under section 7 of this Act.
139-5.The North Dakota university system office will notify in writing a person found to be out of
140-compliance and the person will have thirty days to remedy the deficiency. If the deficiency is
141-not remedied within the thirty-day period, penalties may be assessed under subsection 2.
142-SECTION 5. AMENDMENT. Section 15-18.1-10 of the North Dakota Century Code is amended and
143-reenacted as follows:
258+records required by the board under this chapter, is subject to a civil penalty not to
259+exceed one hundredone thousand five hundred dollars for each violation. Each day's
260+failure to comply with these provisions is a separate violation. The fine may be
261+imposed by the board in an administrative proceeding or by any court of competent
262+jurisdictionconsistent with board policy and procedure.
263+3.A person who willfully violates this section, or who willfully fails or refuses to deposit
264+with the board the records required by the board under this chapter, is guilty of a
265+class B misdemeanor. The criminal sanctions may be imposed by a court of
266+competent jurisdiction in an action brought by the attorney general of this state or a
267+state's attorney pursuant to section 15-18.1-12.
268+4.The board may suspend or revoke a person's authorization to offer distance education
269+to North Dakota residents until the person complies with the national council for state
270+authorization reciprocity agreements membership requirements, unless the person is
271+exempt under section 7 of this Act.
272+5.The North Dakota university system office will notify in writing a person found to be out
273+of compliance and the person will have thirty days to remedy the deficiency. If the
274+deficiency is not remedied within the thirty-day period, penalties may be assessed
275+under subsection 2.
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308+SECTION 5. AMENDMENT. Section 15-18.1-10 of the North Dakota Century Code is
309+amended and reenacted as follows:
144310 15-18.1-10. Board review.
145-A person aggrieved by a decision of the boardNorth Dakota university system respecting denial or
146-revocation of an authorization to operate, or the placing of conditions thereon, whether on initial
147-application or on application for renewal may appeal to the board in the manner provided by the board.
148-Appeals must be filed with the North Dakota university system within thirty days of receiving the notice
149-of noncompliance. The board shall review the appeal and issue a final decision.
150-SECTION 6. AMENDMENT. Subsection 4 of section 15-18.1-13 of the North Dakota Century Code
151-is amended and reenacted as follows:
152-4.As used in this section, "duly authorized institution of higher learning" means an institution
153-that:
154-a.Has accreditation recognized by the United States secretarydepartment of education or
155-has the foreign equivalent of such accreditation;
311+A person aggrieved by a decision of the boardNorth Dakota university system respecting
312+denial or revocation of an authorization to operate, or the placing of conditions thereon, whether
313+on initial application or on application for renewal may appeal to the board in the manner
314+provided by the board. Appeals must be filed with the North Dakota university system within
315+thirty days of receiving the notice of noncompliance. The board shall review the appeal and
316+issue a final decision.
317+SECTION 6. AMENDMENT. Subsection 4 of section 15-18.1-13 of the North Dakota
318+Century Code is amended and reenacted as follows:
319+4.As used in this section, "duly authorized institution of higher learning" means an
320+institution that:
321+a.Has accreditation recognized by the United States secretarydepartment of
322+education or has the foreign equivalent of such accreditation;
156323 b.Has an authorization to operate under this chapter or under chapter 15-20.4;
157-c.Operates in this state, and is exempt from this chapter under section 15-18.1-02 or is
158-exempt from chapter 15-20.4 under section 15-20.4-02;
324+c.Operates in this state, and is exempt from this chapter under section 15-18.1-02
325+or is exempt from chapter 15-20.4 under section 15-20.4-02;
159326 d.Does not operate in this state and is:
160327 (1)Licensed by the appropriate state agency; and
161-(2)An active applicant for accreditation by an accrediting body recognized by the
162-United States secretarydepartment of education; or
163-e.Has been found by the state board of higher education or the state board for career and
164-technical education to meet standards of academic quality comparable to those of an
165-institution located in the United States that has accreditation recognized by the United
166-States secretarydepartment of education to offer degrees of the type and level claimed.
167-SECTION 7. A new section to chapter 15-18.1 of the North Dakota Century Code is created and
168-enacted as follows: H. B. NO. 1064 - PAGE 5
169-Required national council for state authorization reciprocity agreements membership -
170-Exemption.
171-1.A postsecondary educational institution offering distance education programs to students in
172-North Dakota must be a member of the national council for state authorization reciprocity
173-agreements and comply with the requirements of the council. Institutions must adhere to all
174-standards, policies, and fees established by the national council for state authorization
175-reciprocity agreements for membership and participation, including reporting requirements,
176-quality standards, and consumer protection measures.
177-2.A postsecondary educational institution that is ineligible to participate in national council for
178-state authorization reciprocity agreements due to composite score requirements is exempt
179-from the requirements under subsection 1 if the postsecondary educational institution:
180-a.Is an eligible participant in student financial aid programs under title IV of the Higher
181-Education Act of 1965 [Pub. L. 89 - 329; 79 Stat. 1219; 20 U.S.C. 1001 et seq.]; and
182-b.At the institution level, has a financial responsibility score calculated by an independent
183-auditor using the methodology prescribed by the United States department of education
184-greater than one and one - half.
185-3.The state board of higher education shall adopt a policy to implement this section, which may
186-include a fee.
187-SECTION 8. REPEAL. Section 15-18.1-03 of the North Dakota Century Code is repealed. H. B. NO. 1064 - PAGE 6
188-____________________________ ____________________________
189-Speaker of the House President of the Senate
190-____________________________ ____________________________
191-Chief Clerk of the House Secretary of the Senate
192-This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
193-Assembly of North Dakota and is known on the records of that body as House Bill No. 1064.
194-House Vote: Yeas 89 Nays 1 Absent 3
195-Senate Vote:Yeas 43 Nays 3 Absent 1
196-____________________________
197-Chief Clerk of the House
198-Received by the Governor at ________M. on _____________________________________, 2025.
199-Approved at ________M. on __________________________________________________, 2025.
200-____________________________
201-Governor
202-Filed in this office this ___________day of _______________________________________, 2025,
203-at ________ o’clock ________M.
204-____________________________
205-Secretary of State
328+(2)An active applicant for accreditation by an accrediting body recognized by
329+the United States secretarydepartment of education; or
330+e.Has been found by the state board of higher education or the state board for
331+career and technical education to meet standards of academic quality
332+comparable to those of an institution located in the United States that has
333+accreditation recognized by the United States secretarydepartment of education
334+to offer degrees of the type and level claimed.
335+SECTION 7. A new section to chapter 15-18.1 of the North Dakota Century Code is created
336+and enacted as follows:
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368+Required national council for state authorization reciprocity agreements
369+membership - Exemption.
370+1.A postsecondary educational institution offering distance education programs to
371+students in North Dakota must be a member of the national council for state
372+authorization reciprocity agreements and comply with the requirements of the council.
373+Institutions must adhere to all standards, policies, and fees established by the national
374+council for state authorization reciprocity agreements for membership and
375+participation, including reporting requirements, quality standards, and consumer
376+protection measures.
377+2.A postsecondary educational institution that is ineligible to participate in national
378+council for state authorization reciprocity agreements due to composite score
379+requirements is exempt from the requirements under subsection 1 if the
380+postsecondary educational institution:
381+a.Is an eligible participant in student financial aid programs under title IV of the
382+Higher Education Act of 1965 [Pub. L. 89 - 329; 79 Stat. 1219; 20 U.S.C. 1001
383+et seq.]; and
384+b.At the institution level, has a financial responsibility score calculated by an
385+independent auditor using the methodology prescribed by the United States
386+department of education greater than one and one - half.
387+3.The state board of higher education shall adopt a policy to implement this section,
388+which may include a fee.
389+SECTION 8. REPEAL. Section 15-18.1-03 of the North Dakota Century Code is repealed.
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409+19
410+20
411+21
412+22