6 | | - | AN ACT to create and enact a new section to chapter 15-18.1 of the North Dakota Century Code, |
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7 | | - | relating to the national council for state authorization reciprocity agreements membership; to |
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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, |
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9 | | - | and subsection 4 of section 15-18.1-13 of the North Dakota Century Code, relating to |
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10 | | - | postsecondary education institution standards; and to repeal section 15-18.1-03 of the North |
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11 | | - | Dakota Century Code, relating to the authorization of a postsecondary educational institution not |
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12 | | - | operating in this state. |
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| 8 | + | A BILL for an Act to create and enact a new section to chapter 15-18.1 of the North Dakota |
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| 9 | + | Century Code, relating to the national council for state authorization reciprocity agreements |
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| 10 | + | membership; to amend and reenact sections 15-18.1-01, 15-18.1-02, 15-18.1-05, 15-18.1-06, |
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| 11 | + | and 15-18.1-10, and subsection 4 of section 15-18.1-13 of the North Dakota Century Code, |
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| 12 | + | relating to postsecondary education institution standards; and to repeal section 15-18.1-03 of |
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| 13 | + | the North Dakota Century Code, relating to the authorization of a postsecondary educational |
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| 14 | + | institution not operating in this state. |
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30 | | - | documents, or letters of designation, marks, appellations, series of letters, numbers, or words |
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31 | | - | which signify, purport, or are generally taken to signify enrollment, attendance, progress, or |
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32 | | - | satisfactory completion of the requirements or prerequisites for education at a postsecondary |
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33 | | - | educational institution operating in this statea postsecondary credential leading to a diploma; |
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34 | | - | certificate; or an associate, bachelor, master, or doctorate degree. This term does not include |
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35 | | - | a postsecondary credential leading to an honorary degree or other unearned degree. |
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36 | | - | 7."Person" means an individual, organization, government, political subdivision, or government |
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37 | | - | agency or instrumentality. The term does not include environmental elements, artificial |
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38 | | - | intelligence, an animal, or an inanimate object. |
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| 59 | + | documents, or letters of designation, marks, appellations, series of letters, numbers, or |
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| 60 | + | words which signify, purport, or are generally taken to signify enrollment, attendance, |
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| 61 | + | progress, or satisfactory completion of the requirements or prerequisites for education |
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| 62 | + | at a postsecondary educational institution operating in this statea postsecondary |
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| 63 | + | credential leading to a diploma; certificate; or an associate, bachelor, master, or |
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| 64 | + | doctorate degree. This term does not include a postsecondary credential leading to an |
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| 65 | + | honorary degree or other unearned degree. |
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| 66 | + | 7."Person" means an individual, organization, government, political subdivision, or |
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| 67 | + | government agency or instrumentality. The term does not include environmental |
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| 68 | + | elements, artificial intelligence, an animal, or an inanimate object. |
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46 | | - | e.Providing student support services at a physical location in the state, whether operated |
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47 | | - | by or on behalf of the institution. |
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48 | | - | 9."Postsecondary educational institution" means an academic, technical, home study, business, |
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49 | | - | professional or other school, college, or university, or other person, operating in this state, |
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50 | | - | offering educational credentials or offering instruction or educational services, primarily to any |
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51 | | - | individual who has completed or terminated secondary education or who is beyond the age of |
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52 | | - | compulsory high school attendance, for attainment of educational, or professional objectives |
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53 | | - | at the associate in arts level or higheragency or political subdivision of the state, individual, |
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54 | | - | partnership, company, firm, society, trust, association, corporation, or any combination that: |
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| 76 | + | e.Providing student support services at a physical location in the state, whether |
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| 77 | + | operated by or on behalf of the institution. |
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| 78 | + | 9."Postsecondary educational institution" means an academic, technical, home study, |
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| 79 | + | business, professional or other school, college, or university, or other person, |
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| 80 | + | operating in this state, offering educational credentials or offering instruction or |
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| 81 | + | educational services, primarily to any individual who has completed or terminated |
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| 82 | + | secondary education or who is beyond the age of compulsory high school attendance, |
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| 83 | + | for attainment of educational, or professional objectives at the associate in arts level or |
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| 84 | + | higheragency or political subdivision of the state, individual, partnership, company, |
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| 85 | + | firm, society, trust, association, corporation, or any combination that: |
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61 | | - | 7.11."To offer" includes, in addition to its usual meanings, advertising, publicizing, soliciting, or |
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62 | | - | encouraging any individual, directly or indirectly, in any form, to perform the act described. |
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63 | | - | 8."To operate" an educational institution, or like term, means to establish, keep, or maintain any |
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64 | | - | facility or location in this state where, from, or through which, education is offered or given, or |
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65 | | - | educational credentials are offered or granted, and includes contracting with any person to |
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66 | | - | perform any such act. |
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67 | | - | SECTION 2. AMENDMENT. Section 15-18.1-02 of the North Dakota Century Code is amended and |
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68 | | - | reenacted as follows: |
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| 125 | + | 7.11."To offer" includes, in addition to its usual meanings, advertising, publicizing, soliciting, |
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| 126 | + | or encouraging any individual, directly or indirectly, in any form, to perform the act |
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| 127 | + | described. |
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| 128 | + | 8."To operate" an educational institution, or like term, means to establish, keep, or |
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| 129 | + | maintain any facility or location in this state where, from, or through which, education |
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| 130 | + | is offered or given, or educational credentials are offered or granted, and includes |
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| 131 | + | contracting with any person to perform any such act. |
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| 132 | + | SECTION 2. AMENDMENT. Section 15-18.1-02 of the North Dakota Century Code is |
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| 133 | + | amended and reenacted as follows: |
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70 | | - | The following education and educational schools or institutions are exempted from the provisions of |
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71 | | - | this chapter: |
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72 | | - | 1.Education sponsored by a bona fideEducational programs conducted by a trade, business, |
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73 | | - | professional, or fraternal organization, so recognized by the board, solely for that |
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74 | | - | organization's membership, or offered on a no-fee basis. |
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75 | | - | 2.Education offered by charitable institutions, organizations, or agencies, so recognized by the |
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76 | | - | board, provided the education is not advertised or promoted as leading toward educational |
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77 | | - | credentials. |
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78 | | - | 3.Postsecondary educational institutions established, operated, and governed by this or any |
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79 | | - | other state or its political subdivisions, as determined by the board and any educational |
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80 | | - | consortium that includes one or more of the institutions. |
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81 | | - | 4.Private four-year institutions chartered or incorporated and operating in the state prior to July |
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82 | | - | 1, 1977, so long as the institutions retain accreditation by national or regional accrediting |
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83 | | - | agenciesand are recognized by the United States officedepartment of education. H. B. NO. 1064 - PAGE 3 |
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| 135 | + | The following education and educational schools or institutions are exempted from the |
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| 136 | + | provisions of this chapter: |
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| 137 | + | 1.Education sponsored by a bona fideEducational programs conducted by a trade, |
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| 138 | + | business, professional, or fraternal organization, so recognized by the board, solely for |
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| 139 | + | that organization's membership, or offered on a no-fee basis. |
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| 140 | + | 2.Education offered by charitable institutions, organizations, or agencies, so recognized |
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| 141 | + | by the board, provided the education is not advertised or promoted as leading toward |
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| 142 | + | educational credentials. |
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| 143 | + | 3.Postsecondary educational institutions established, operated, and governed by this or |
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| 144 | + | any other state or its political subdivisions, as determined by the board and any |
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| 145 | + | educational consortium that includes one or more of the institutions. |
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| 146 | + | 4.Private four-year institutions chartered or incorporated and operating in the state prior |
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| 147 | + | to July 1, 1977, so long as the institutions retain accreditation by national or regional |
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| 148 | + | accrediting agenciesand are recognized by the United States officedepartment of |
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| 149 | + | education. |
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94 | | - | All postsecondary educational institutions with a physical presence in the state must be accredited |
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95 | | - | by national or regional accrediting agencies recognized by the United States department of education, |
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96 | | - | have a federal financial responsibility composite score greater than one and one - half, and provide |
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97 | | - | students with institutional public disclosures as defined by the board. The board additionally may |
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98 | | - | additionally require such further evidence and make such further investigation as in its judgment may |
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99 | | - | be necessary. Any postsecondary educational institution operating in this state seeking its first |
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100 | | - | authorization to operate may be issued a provisional authorization to operate on an annual basis until |
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101 | | - | the institution becomes eligible for accreditation by a recognized accrediting agency. Institutions issued |
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102 | | - | a provisional authorization to operate must demonstrate a substantial good-faith showing of progress |
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103 | | - | toward such status. Only uponUpon accreditation may an institution may become eligible for a |
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104 | | - | regularstate authorization to operate. An institution shall give written notification to the board within |
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105 | | - | thirty days of any change to the institution's accreditation status, change of ownership, or change in |
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| 193 | + | All postsecondary educational institutions with a physical presence in the state must be |
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| 194 | + | accredited by national or regional accrediting agencies recognized by the United States |
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| 195 | + | department of education, have a federal financial responsibility composite score greater than |
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| 196 | + | one and one - half, and provide students with institutional public disclosures as defined by the |
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| 197 | + | board. The board additionally may additionally require such further evidence and make such |
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| 198 | + | further investigation as in its judgment may be necessary. Any postsecondary educational |
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| 199 | + | institution operating in this state seeking its first authorization to operate may be issued a |
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| 200 | + | provisional authorization to operate on an annual basis until the institution becomes eligible for |
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| 201 | + | accreditation by a recognized accrediting agency. Institutions issued a provisional authorization |
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| 202 | + | to operate must demonstrate a substantial good-faith showing of progress toward such status. |
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| 203 | + | Only uponUpon accreditation may an institution may become eligible for a regularstate |
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| 204 | + | authorization to operate. An institution shall give written notification to the board within thirty |
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| 205 | + | days of any change to the institution's accreditation status, change of ownership, or change in |
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111 | | - | a.Operate, in this state, a postsecondary educational institution not exempted from the |
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112 | | - | provisions of this chapter, unless the institution has a currently valid authorization to |
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113 | | - | operate issued under this chapter. |
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114 | | - | b.Instruct or educate, or offer to instruct or educate, including advertising or soliciting for |
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115 | | - | such purpose, enroll or offer to enroll, contract or offer to contract with any person for |
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116 | | - | such purpose, or award any educational credential, or contract with any institution or |
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117 | | - | party to perform any such act, at a facility or location in this state unless suchthe person, |
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118 | | - | group, or entity observes and is in compliancecomplies with the minimum standards and |
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119 | | - | criteria established by the board and the policies adopted by the board. |
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120 | | - | c.Use the term "university", "institute", or "college" without authorization to do so from the |
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121 | | - | board. |
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122 | | - | d.Grant, or offer to grant, educational credentials, without authorization to do so from the |
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123 | | - | board. |
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| 211 | + | a.Operate, in this state, a postsecondary educational institution not exempted from |
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| 212 | + | the provisions of this chapter, unless the institution has a currently valid |
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| 213 | + | authorization to operate issued under this chapter. |
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| 214 | + | Page No. 4 25.8070.02000 |
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| 244 | + | 30 Sixty-ninth |
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| 245 | + | Legislative Assembly |
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| 246 | + | b.Instruct or educate, or offer to instruct or educate, including advertising or |
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| 247 | + | soliciting for such purpose, enroll or offer to enroll, contract or offer to contract |
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| 248 | + | with any person for such purpose, or award any educational credential, or |
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| 249 | + | contract with any institution or party to perform any such act, at a facility or |
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| 250 | + | location in this state unless suchthe person, group, or entity observes and is in |
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| 251 | + | compliancecomplies with the minimum standards and criteria established by the |
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| 252 | + | board and the policies adopted by the board. |
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| 253 | + | c.Use the term "university", "institute", or "college" without authorization to do so |
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| 254 | + | from the board. |
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| 255 | + | d.Grant, or offer to grant, educational credentials, without authorization to do so |
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| 256 | + | from the board. |
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125 | | - | records required by the board under this chapter, is subject to a civil penalty not to exceed one |
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126 | | - | hundredone thousand five hundred dollars for each violation. Each day's failure to comply with |
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127 | | - | these provisions is a separate violation. The fine may be imposed by the board in an H. B. NO. 1064 - PAGE 4 |
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128 | | - | administrative proceeding or by any court of competent jurisdictionconsistent with board policy |
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129 | | - | and procedure. |
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130 | | - | 3.A person who willfully violates this section, or who willfully fails or refuses to deposit with the |
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131 | | - | board the records required by the board under this chapter, is guilty of a class B misdemeanor. |
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132 | | - | The criminal sanctions may be imposed by a court of competent jurisdiction in an action |
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133 | | - | brought by the attorney general of this state or a state's attorney pursuant to section |
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134 | | - | 15-18.1-12. |
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135 | | - | 4.The board may suspend or revoke a person's authorization to offer distance education to |
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136 | | - | North Dakota residents until the person complies with the national council for state |
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137 | | - | authorization reciprocity agreements membership requirements, unless the person is exempt |
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138 | | - | under section 7 of this Act. |
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139 | | - | 5.The North Dakota university system office will notify in writing a person found to be out of |
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140 | | - | compliance and the person will have thirty days to remedy the deficiency. If the deficiency is |
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141 | | - | not remedied within the thirty-day period, penalties may be assessed under subsection 2. |
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142 | | - | SECTION 5. AMENDMENT. Section 15-18.1-10 of the North Dakota Century Code is amended and |
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143 | | - | reenacted as follows: |
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| 258 | + | records required by the board under this chapter, is subject to a civil penalty not to |
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| 259 | + | exceed one hundredone thousand five hundred dollars for each violation. Each day's |
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| 260 | + | failure to comply with these provisions is a separate violation. The fine may be |
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| 261 | + | imposed by the board in an administrative proceeding or by any court of competent |
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| 262 | + | jurisdictionconsistent with board policy and procedure. |
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| 263 | + | 3.A person who willfully violates this section, or who willfully fails or refuses to deposit |
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| 264 | + | with the board the records required by the board under this chapter, is guilty of a |
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| 265 | + | class B misdemeanor. The criminal sanctions may be imposed by a court of |
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| 266 | + | competent jurisdiction in an action brought by the attorney general of this state or a |
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| 267 | + | state's attorney pursuant to section 15-18.1-12. |
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| 268 | + | 4.The board may suspend or revoke a person's authorization to offer distance education |
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| 269 | + | to North Dakota residents until the person complies with the national council for state |
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| 270 | + | authorization reciprocity agreements membership requirements, unless the person is |
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| 271 | + | exempt under section 7 of this Act. |
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| 272 | + | 5.The North Dakota university system office will notify in writing a person found to be out |
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| 273 | + | of compliance and the person will have thirty days to remedy the deficiency. If the |
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| 274 | + | deficiency is not remedied within the thirty-day period, penalties may be assessed |
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| 275 | + | under subsection 2. |
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| 307 | + | Legislative Assembly |
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| 308 | + | SECTION 5. AMENDMENT. Section 15-18.1-10 of the North Dakota Century Code is |
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| 309 | + | amended and reenacted as follows: |
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145 | | - | A person aggrieved by a decision of the boardNorth Dakota university system respecting denial or |
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146 | | - | revocation of an authorization to operate, or the placing of conditions thereon, whether on initial |
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147 | | - | application or on application for renewal may appeal to the board in the manner provided by the board. |
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148 | | - | Appeals must be filed with the North Dakota university system within thirty days of receiving the notice |
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149 | | - | of noncompliance. The board shall review the appeal and issue a final decision. |
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150 | | - | SECTION 6. AMENDMENT. Subsection 4 of section 15-18.1-13 of the North Dakota Century Code |
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151 | | - | is amended and reenacted as follows: |
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152 | | - | 4.As used in this section, "duly authorized institution of higher learning" means an institution |
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153 | | - | that: |
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154 | | - | a.Has accreditation recognized by the United States secretarydepartment of education or |
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155 | | - | has the foreign equivalent of such accreditation; |
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| 311 | + | A person aggrieved by a decision of the boardNorth Dakota university system respecting |
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| 312 | + | denial or revocation of an authorization to operate, or the placing of conditions thereon, whether |
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| 313 | + | on initial application or on application for renewal may appeal to the board in the manner |
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| 314 | + | provided by the board. Appeals must be filed with the North Dakota university system within |
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| 315 | + | thirty days of receiving the notice of noncompliance. The board shall review the appeal and |
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| 316 | + | issue a final decision. |
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| 317 | + | SECTION 6. AMENDMENT. Subsection 4 of section 15-18.1-13 of the North Dakota |
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| 318 | + | Century Code is amended and reenacted as follows: |
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| 319 | + | 4.As used in this section, "duly authorized institution of higher learning" means an |
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| 320 | + | institution that: |
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| 321 | + | a.Has accreditation recognized by the United States secretarydepartment of |
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| 322 | + | education or has the foreign equivalent of such accreditation; |
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161 | | - | (2)An active applicant for accreditation by an accrediting body recognized by the |
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162 | | - | United States secretarydepartment of education; or |
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163 | | - | e.Has been found by the state board of higher education or the state board for career and |
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164 | | - | technical education to meet standards of academic quality comparable to those of an |
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165 | | - | institution located in the United States that has accreditation recognized by the United |
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166 | | - | States secretarydepartment of education to offer degrees of the type and level claimed. |
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167 | | - | SECTION 7. A new section to chapter 15-18.1 of the North Dakota Century Code is created and |
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168 | | - | enacted as follows: H. B. NO. 1064 - PAGE 5 |
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169 | | - | Required national council for state authorization reciprocity agreements membership - |
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170 | | - | Exemption. |
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171 | | - | 1.A postsecondary educational institution offering distance education programs to students in |
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172 | | - | North Dakota must be a member of the national council for state authorization reciprocity |
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173 | | - | agreements and comply with the requirements of the council. Institutions must adhere to all |
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174 | | - | standards, policies, and fees established by the national council for state authorization |
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175 | | - | reciprocity agreements for membership and participation, including reporting requirements, |
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176 | | - | quality standards, and consumer protection measures. |
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177 | | - | 2.A postsecondary educational institution that is ineligible to participate in national council for |
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178 | | - | state authorization reciprocity agreements due to composite score requirements is exempt |
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179 | | - | from the requirements under subsection 1 if the postsecondary educational institution: |
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180 | | - | a.Is an eligible participant in student financial aid programs under title IV of the Higher |
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181 | | - | Education Act of 1965 [Pub. L. 89 - 329; 79 Stat. 1219; 20 U.S.C. 1001 et seq.]; and |
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182 | | - | b.At the institution level, has a financial responsibility score calculated by an independent |
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183 | | - | auditor using the methodology prescribed by the United States department of education |
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184 | | - | greater than one and one - half. |
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185 | | - | 3.The state board of higher education shall adopt a policy to implement this section, which may |
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186 | | - | include a fee. |
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187 | | - | SECTION 8. REPEAL. Section 15-18.1-03 of the North Dakota Century Code is repealed. H. B. NO. 1064 - PAGE 6 |
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188 | | - | ____________________________ ____________________________ |
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189 | | - | Speaker of the House President of the Senate |
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190 | | - | ____________________________ ____________________________ |
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191 | | - | Chief Clerk of the House Secretary of the Senate |
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192 | | - | This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative |
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193 | | - | Assembly of North Dakota and is known on the records of that body as House Bill No. 1064. |
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194 | | - | House Vote: Yeas 89 Nays 1 Absent 3 |
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195 | | - | Senate Vote:Yeas 43 Nays 3 Absent 1 |
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196 | | - | ____________________________ |
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197 | | - | Chief Clerk of the House |
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198 | | - | Received by the Governor at ________M. on _____________________________________, 2025. |
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199 | | - | Approved at ________M. on __________________________________________________, 2025. |
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200 | | - | ____________________________ |
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201 | | - | Governor |
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202 | | - | Filed in this office this ___________day of _______________________________________, 2025, |
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203 | | - | at ________ o’clock ________M. |
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204 | | - | ____________________________ |
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205 | | - | Secretary of State |
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| 328 | + | (2)An active applicant for accreditation by an accrediting body recognized by |
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| 329 | + | the United States secretarydepartment of education; or |
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| 330 | + | e.Has been found by the state board of higher education or the state board for |
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| 331 | + | career and technical education to meet standards of academic quality |
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| 332 | + | comparable to those of an institution located in the United States that has |
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| 333 | + | accreditation recognized by the United States secretarydepartment of education |
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| 334 | + | to offer degrees of the type and level claimed. |
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| 335 | + | SECTION 7. A new section to chapter 15-18.1 of the North Dakota Century Code is created |
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| 336 | + | and enacted as follows: |
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| 337 | + | Page No. 6 25.8070.02000 |
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| 367 | + | Legislative Assembly |
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| 368 | + | Required national council for state authorization reciprocity agreements |
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| 369 | + | membership - Exemption. |
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| 370 | + | 1.A postsecondary educational institution offering distance education programs to |
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| 371 | + | students in North Dakota must be a member of the national council for state |
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| 372 | + | authorization reciprocity agreements and comply with the requirements of the council. |
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| 373 | + | Institutions must adhere to all standards, policies, and fees established by the national |
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| 374 | + | council for state authorization reciprocity agreements for membership and |
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| 375 | + | participation, including reporting requirements, quality standards, and consumer |
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| 376 | + | protection measures. |
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| 377 | + | 2.A postsecondary educational institution that is ineligible to participate in national |
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| 378 | + | council for state authorization reciprocity agreements due to composite score |
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| 379 | + | requirements is exempt from the requirements under subsection 1 if the |
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| 380 | + | postsecondary educational institution: |
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| 381 | + | a.Is an eligible participant in student financial aid programs under title IV of the |
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| 382 | + | Higher Education Act of 1965 [Pub. L. 89 - 329; 79 Stat. 1219; 20 U.S.C. 1001 |
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| 383 | + | et seq.]; and |
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| 384 | + | b.At the institution level, has a financial responsibility score calculated by an |
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| 385 | + | independent auditor using the methodology prescribed by the United States |
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| 386 | + | department of education greater than one and one - half. |
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| 387 | + | 3.The state board of higher education shall adopt a policy to implement this section, |
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| 388 | + | which may include a fee. |
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| 389 | + | SECTION 8. REPEAL. Section 15-18.1-03 of the North Dakota Century Code is repealed. |
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| 390 | + | Page No. 7 25.8070.02000 |
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