Section 11-202.1 - Operation without certificate.
§ 11-202.1. Operation without certificate.
(a) In general.- A nonpublic institution of higher education operating under a charter granted by the General Assembly may operate without a certificate of approval from the Commission.
(b) Institutions that may operate without certificate.- Subject to the requirements imposed by subsection (c) of this section, the following institutions of postsecondary education may operate without a certificate of approval from the Commission:
(1) A religious educational institution that certifies, in accordance with procedures established by the Commission, that the institution:
(i) Is founded and operated by a church or other religious institution or organization of churches or religious institutions as an integral part of the religious ministry of that institution or organization;
(ii) Offers sectarian instruction only designed for and aimed at persons who hold or seek to learn particular religious faiths or beliefs of religious institutions or religious organizations, and provides only educational programs for religious vocations; and
(iii) States on the certificate or diploma the religious nature of the award; and
(2) A church or other religious institution offering a postsecondary instructional program leading to a certificate or diploma only if designed for and aimed at persons who hold or seek to learn the particular religious faith or beliefs of that church or religious institution, and providing only educational programs for religious purposes.
(c) Submission of financial statement.-
(1) Each institution authorized to operate without a certificate of approval under subsection (b) of this section:
(i) Shall submit to the Commission, every 2 years, a financial statement reviewed by an independent accountant retained by the institution; and
(ii) May not commence or continue to operate, do business, or function unless the Commission determines on the basis of the financial statement submitted by the institution that the institution possesses adequate financial resources to support the institution's educational program.
(2) The Commission shall adopt regulations establishing procedures and standards for the submission and evaluation of the reports and financial statements submitted by institutions under this subsection.
(d) Judicial review of denial.- Any institution under subsection (b) of this section that is denied the right to operate has the right to judicial review as provided by the Administrative Procedure Act.
(e) Seeking certificate of approval permitted.- Nothing in this section precludes an institution operating without a certificate of approval under subsection (b) of this section from seeking a certificate of approval from the Commission.
(f) Prohibited acts.- With regard to an institution operating without a certificate of approval under subsection (b) of this section, a person may not:
(1) Make a statement, whether verbal or written, that the institution is approved by, or has a certificate of approval from, the Commission, including a statement on any certificate, diploma, academic transcript, or other document issued by the institution or in any advertisement or publication, or on a website; or
(2) Enroll a student in the institution unless, before enrollment, the person gives written notice to and obtains a written acknowledgment from the student that:
(i) The institution's instructional program is only designed for and aimed at persons who hold or seek to learn the particular religious faith or beliefs of the church or religious institution, and provides only educational programs for religious vocations or purposes;
(ii) An institution of higher education is not required to accept for transfer credits earned at the institution;
(iii) An institution of higher education is not required to recognize an award earned at the institution; and
(iv) A potential employer may determine that an award earned at the institution does not meet minimum educational requirements for employment.
(g) Written acknowledgment.- The written acknowledgment obtained from a student under subsection (f) of this section shall be:
(1) In a form approved by the Commission;
(2) Signed by both the student and a representative of the institution; and
(3) Permanently retained in the student's file by the institution.
(h) Violations; penalties.- A person who violates subsection (f) or (g) of this section is liable for a penalty of up to $5,000 for each violation.
[2010, ch. 221.]