North DakotaHB 10642025 Regular SessionHouse

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.

Sponsored By: House Education

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 1 costs, 3 mixed.

Higher fines for school rule violations

The maximum civil fine for violating state postsecondary education rules rises from $100 to $1,500 per violation. This includes failing or refusing to deposit records required by the board. Each day of noncompliance counts as a separate violation, and the board sets fines under its policies and procedures. Unauthorized operation is prohibited, and willful violations are Class B misdemeanors. Parties can appeal approval denials, revocations, or conditions within 30 days, and the board must issue a final decision.

More schools face North Dakota oversight

State oversight now covers more entities, including school operators, degree-course providers, and businesses using college-like names while charging for services. Out-of-state schools lose their general exemption; the state-school exemption no longer covers other states’ schools or education consortia. Trade, business, professional, and fraternal groups can offer member-only or free programs without board recognition. Private four-year schools chartered or incorporated and operating in North Dakota before July 1, 1977, remain exempt while federally recognized and accredited. Higher-education recognition rules also change: qualifying routes include recognized accreditation, state authorization, or comparable academic quality; certain out-of-state schools must be licensed and actively seeking recognized accreditation.

Online colleges face new student safeguards

Schools offering distance education to North Dakota students must join the National Council for State Authorization Reciprocity Agreements. They must follow its policies, fees, reporting rules, quality standards, and consumer protections; the state board can charge an implementation fee. A school barred by council score rules is exempt only if eligible for federal Title IV student aid and independently audited. That audit must show an institution-level financial responsibility score above 1.5 using U.S. Department of Education methods. The university system must give written notice and 30 days to fix noncompliance; the board can suspend or revoke approval until compliance, and unresolved deficiencies can trigger penalties.

Stronger standards for North Dakota schools

Schools with a North Dakota physical presence must have accreditation from a U.S. Department of Education-recognized accreditor. They must also have a federal financial responsibility score above 1.5 and give students board-required public disclosures. Accreditation makes a school eligible for state approval; it does not replace approval. Schools must report changes in accreditation, ownership, or financial responsibility score to the board within 30 days. Physical presence includes instructional sites, administrative offices, an in-state mailing address and local phone number, staff offices, or on-site student support.

Sponsors & Cosponsors

Sponsor

  • House Education

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 132 • No: 4

Senate vote • 4/2/2025

Second reading, passed, yeas 43 nays 3

Yes: 43 • No: 3

House vote • 2/21/2025

Second reading, passed, yeas 89 nays 1

Yes: 89 • No: 1

Actions Timeline

  1. Filed with Secretary Of State 04/11

    4/14/2025House
  2. Signed by Governor 04/10

    4/11/2025House
  3. Sent to Governor

    4/8/2025House
  4. Signed by Speaker

    4/8/2025House
  5. Signed by President

    4/4/2025Senate
  6. Returned to House

    4/3/2025House
  7. Second reading, passed, yeas 43 nays 3

    4/2/2025Senate
  8. Reported back, do pass, place on calendar 5 1 0

    4/1/2025Senate
  9. Committee Hearing 10:00

    3/12/2025Senate
  10. Introduced, first reading, referred Education Committee

    3/7/2025Senate
  11. Received from House

    2/24/2025Senate
  12. Second reading, passed, yeas 89 nays 1

    2/21/2025House
  13. Amendment adopted, placed on calendar

    2/20/2025House
  14. Reported back amended, do pass, amendment placed on calendar 12 1 1

    2/19/2025House
  15. Committee Hearing 03:00

    1/13/2025House
  16. Introduced, first reading, referred Education Committee

    1/7/2025House

Bill Text

  • Enrollment

  • FIRST ENGROSSMENT

  • INTRODUCED

  • Prepared by the Legislative Council staff for Representative Heinert

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