Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
HOUSE BILL NO. 1064
(Education Committee)
(At the request of the State Board of Higher Education)
AN ACT to create and enact a new section to chapter 15-18.1 of the North Dakota Century Code,
relating to the national council for state authorization reciprocity agreements membership; to
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,
and subsection 4 of section 15-18.1-13 of the North Dakota Century Code, relating to
postsecondary education institution standards; and to repeal section 15-18.1-03 of the North
Dakota Century Code, relating to the authorization of a postsecondary educational institution not
operating in this state.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 15-18.1-01 of the North Dakota Century Code is amended and
reenacted as follows:
15-18.1-01. Definitions.
As used in this chapter:
1."Accredited" means approved by an accrediting body recognized by the United States
department of education.
2."Authorization to operate" or like term means approval of the board or North Dakota university
system office, as applicable, to operate or to contract to operate a postsecondary educational
institution in this state.
2.3."Board" means the state board of higher education.
4."Distance education" is education using one or more types of technology to deliver instruction
to a student who is separated from the instructor and to support regular and substantive
interaction between the student and the instructor synchronously or asynchronously.
3.5."Education" or "educational services" or like term includes any class, course, or program of
training, instruction, or study.
4.6."Educational credentials" means degrees, diplomas, certificates, transcripts, reports,
documents, or letters of designation, marks, appellations, series of letters, numbers, or words
which signify, purport, or are generally taken to signify enrollment, attendance, progress, or
satisfactory completion of the requirements or prerequisites for education at a postsecondary
educational institution operating in this statea postsecondary credential leading to a diploma;
certificate; or an associate, bachelor, master, or doctorate degree. This term does not include
a postsecondary credential leading to an honorary degree or other unearned degree.
7."Person" means an individual, organization, government, political subdivision, or government
agency or instrumentality. The term does not include environmental elements, artificial
intelligence, an animal, or an inanimate object.
5.8."Physical presence" means a presence established by:
a.Maintaining a physical location in the state where students receive instruction or
providing instruction to students at a designated location and time in the state; H. B. NO. 1064 - PAGE 2
b.Maintaining an administrative office in the state for students receiving in-person
instruction or distance education;
c.Maintaining a mailing address in the state and a local telephone number;
d.Providing office space in the state for instructional or noninstructional staff; and
e.Providing student support services at a physical location in the state, whether operated
by or on behalf of the institution.
9."Postsecondary educational institution" means an academic, technical, home study, business,
professional or other school, college, or university, or other person, operating in this state,
offering educational credentials or offering instruction or educational services, primarily to any
individual who has completed or terminated secondary education or who is beyond the age of
compulsory high school attendance, for attainment of educational, or professional objectives
at the associate in arts level or higheragency or political subdivision of the state, individual,
partnership, company, firm, society, trust, association, corporation, or any combination that:
a.Is, owns, or operates a postsecondary educational institution.
b.Provides a postsecondary course of instruction leading to a degree.
c.Uses in its name the term "college", "academy", "institute", or "university" or a similar
term to imply the person is primarily engaged in the education of students at the
postsecondary level, and charges for its services.
6.10."To grant" includes awarding, selling, conferring, bestowing, or giving.
7.11."To offer" includes, in addition to its usual meanings, advertising, publicizing, soliciting, or
encouraging any individual, directly or indirectly, in any form, to perform the act described.
8."To operate" an educational institution, or like term, means to establish, keep, or maintain any
facility or location in this state where, from, or through which, education is offered or given, or
educational credentials are offered or granted, and includes contracting with any person to
perform any such act.
SECTION 2. AMENDMENT. Section 15-18.1-02 of the North Dakota Century Code is amended and
reenacted as follows:
15-18.1-02. Exemptions.
The following education and educational schools or institutions are exempted from the provisions of
this chapter:
1.Education sponsored by a bona fideEducational programs conducted by a trade, business,
professional, or fraternal organization, so recognized by the board, solely for that
organization's membership, or offered on a no-fee basis.
2.Education offered by charitable institutions, organizations, or agencies, so recognized by the
board, provided the education is not advertised or promoted as leading toward educational
credentials.
3.Postsecondary educational institutions established, operated, and governed by this or any
other state or its political subdivisions, as determined by the board and any educational
consortium that includes one or more of the institutions.
4.Private four-year institutions chartered or incorporated and operating in the state prior to July
1, 1977, so long as the institutions retain accreditation by national or regional accrediting
agenciesand are recognized by the United States officedepartment of education. H. B. NO. 1064 - PAGE 3
5.Schools of nursing regulated under chapter 43-12.1.
6.Native American colleges operating in this state, established by federally recognized Indian
tribes.
7.Postsecondary educational institutions not operating in this state.
8.7.Institutions whose only physical presence in this state consists of students enrolled in
practicums, internships, clinicals, or student teaching in this state.
9.8.Postsecondary career schools regulated under chapter 15-20.4.
SECTION 3. AMENDMENT. Section 15-18.1-05 of the North Dakota Century Code is amended and
reenacted as follows:
15-18.1-05. Minimum standards to operate with a physical presence in North Dakota.
All postsecondary educational institutions with a physical presence in the state must be accredited
by national or regional accrediting agencies recognized by the United States department of education,
have a federal financial responsibility composite score greater than one and one - half, and provide
students with institutional public disclosures as defined by the board. The board additionally may
additionally require such further evidence and make such further investigation as in its judgment may
be necessary. Any postsecondary educational institution operating in this state seeking its first
authorization to operate may be issued a provisional authorization to operate on an annual basis until
the institution becomes eligible for accreditation by a recognized accrediting agency. Institutions issued
a provisional authorization to operate must demonstrate a substantial good-faith showing of progress
toward such status. Only uponUpon accreditation may an institution may become eligible for a
regularstate authorization to operate. An institution shall give written notification to the board within
thirty days of any change to the institution's accreditation status, change of ownership, or change in
federal financial responsibility composite score.
SECTION 4. AMENDMENT. Section 15-18.1-06 of the North Dakota Century Code is amended and
reenacted as follows:
15-18.1-06. Prohibition - Penalty.
1.A person may not:
a.Operate, in this state, a postsecondary educational institution not exempted from the
provisions of this chapter, unless the institution has a currently valid authorization to
operate issued under this chapter.
b.Instruct or educate, or offer to instruct or educate, including advertising or soliciting for
such purpose, enroll or offer to enroll, contract or offer to contract with any person for
such purpose, or award any educational credential, or contract with any institution or
party to perform any such act, at a facility or location in this state unless suchthe person,
group, or entity observes and is in compliancecomplies with the minimum standards and
criteria established by the board and the policies adopted by the board.
c.Use the term "university", "institute", or "college" without authorization to do so from the
board.
d.Grant, or offer to grant, educational credentials, without authorization to do so from the
board.
2.A person who violates this section, or who fails or refuses to deposit with the board the
records required by the board under this chapter, is subject to a civil penalty not to exceed one
hundredone thousand five hundred dollars for each violation. Each day's failure to comply with
these provisions is a separate violation. The fine may be imposed by the board in an H. B. NO. 1064 - PAGE 4
administrative proceeding or by any court of competent jurisdictionconsistent with board policy
and procedure.
3.A person who willfully violates this section, or who willfully fails or refuses to deposit with the
board the records required by the board under this chapter, is guilty of a class B misdemeanor.
The criminal sanctions may be imposed by a court of competent jurisdiction in an action
brought by the attorney general of this state or a state's attorney pursuant to section
15-18.1-12.
4.The board may suspend or revoke a person's authorization to offer distance education to
North Dakota residents until the person complies with the national council for state
authorization reciprocity agreements membership requirements, unless the person is exempt
under section 7 of this Act.
5.The North Dakota university system office will notify in writing a person found to be out of
compliance and the person will have thirty days to remedy the deficiency. If the deficiency is
not remedied within the thirty-day period, penalties may be assessed under subsection 2.
SECTION 5. AMENDMENT. Section 15-18.1-10 of the North Dakota Century Code is amended and
reenacted as follows:
15-18.1-10. Board review.
A person aggrieved by a decision of the boardNorth Dakota university system respecting denial or
revocation of an authorization to operate, or the placing of conditions thereon, whether on initial
application or on application for renewal may appeal to the board in the manner provided by the board.
Appeals must be filed with the North Dakota university system within thirty days of receiving the notice
of noncompliance. The board shall review the appeal and issue a final decision.
SECTION 6. AMENDMENT. Subsection 4 of section 15-18.1-13 of the North Dakota Century Code
is amended and reenacted as follows:
4.As used in this section, "duly authorized institution of higher learning" means an institution
that:
a.Has accreditation recognized by the United States secretarydepartment of education or
has the foreign equivalent of such accreditation;
b.Has an authorization to operate under this chapter or under chapter 15-20.4;
c.Operates in this state, and is exempt from this chapter under section 15-18.1-02 or is
exempt from chapter 15-20.4 under section 15-20.4-02;
d.Does not operate in this state and is:
(1)Licensed by the appropriate state agency; and
(2)An active applicant for accreditation by an accrediting body recognized by the
United States secretarydepartment of education; or
e.Has been found by the state board of higher education or the state board for career and
technical education to meet standards of academic quality comparable to those of an
institution located in the United States that has accreditation recognized by the United
States secretarydepartment of education to offer degrees of the type and level claimed.
SECTION 7. A new section to chapter 15-18.1 of the North Dakota Century Code is created and
enacted as follows: H. B. NO. 1064 - PAGE 5
Required national council for state authorization reciprocity agreements membership -
Exemption.
1.A postsecondary educational institution offering distance education programs to students in
North Dakota must be a member of the national council for state authorization reciprocity
agreements and comply with the requirements of the council. Institutions must adhere to all
standards, policies, and fees established by the national council for state authorization
reciprocity agreements for membership and participation, including reporting requirements,
quality standards, and consumer protection measures.
2.A postsecondary educational institution that is ineligible to participate in national council for
state authorization reciprocity agreements due to composite score requirements is exempt
from the requirements under subsection 1 if the postsecondary educational institution:
a.Is an eligible participant in student financial aid programs under title IV of the Higher
Education Act of 1965 [Pub. L. 89 - 329; 79 Stat. 1219; 20 U.S.C. 1001 et seq.]; and
b.At the institution level, has a financial responsibility score calculated by an independent
auditor using the methodology prescribed by the United States department of education
greater than one and one - half.
3.The state board of higher education shall adopt a policy to implement this section, which may
include a fee.
SECTION 8. REPEAL. Section 15-18.1-03 of the North Dakota Century Code is repealed. H. B. NO. 1064 - PAGE 6
____________________________ ____________________________
Speaker of the House President of the Senate
____________________________ ____________________________
Chief Clerk of the House Secretary of the Senate
This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
Assembly of North Dakota and is known on the records of that body as House Bill No. 1064.
House Vote: Yeas 89 Nays 1 Absent 3
Senate Vote:Yeas 43 Nays 3 Absent 1
____________________________
Chief Clerk of the House
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State