North Dakota participates in the State Authorization Reciprocity Agreement (SARA) through the Midwestern Higher Education Compact (MHEC). SARA is an agreement among member states, districts, and territories that establishes comparable national standards for interstate postsecondary distance education courses and programs. It is intended to make it easier for students to take online courses offered by institutions in other states. SARA is overseen by a National Council and administered by four regional education compacts.

Current North Dakota SARA participating institutions:

Bismarck State College

Dakota College at Bottineau

Dickinson State University

Lake Region State College

Mayville State University

Minot State University

North Dakota State College of Science

North Dakota State University

University of Jamestown

Trinity Bible College and Graduate School

University of Mary

University of North Dakota

Valley City State University

Williston State College

A physical presence in North Dakota includes the following:

• Maintaining a physical location in North Dakota where students receive instruction or providing instruction to students at a designated location and time in the state;
• Maintaining an administrative office in North Dakota for students receiving in-person instruction or distance education;
• Maintain a mailing address in North Dakota and a local telephone number;
• Providing office space in North Dakota for instructional or non-instructional staff; and
• Providing student support services at a physical location in North Dakota. Whether operated by or on behalf of an institution.

Requirements for physical presence authorization:

• Institutions must complete the North Dakota State Authorization Application and renew it annually by October 1.
• Institutions must be accredited by an accrediting body recognized by the U.S. Department of Education and remain in good standing. Any adverse action on accreditation must be reported to the North Dakota University System Office within 30 days.
• Institutions must have a federal financial responsibility composite score greater than 1.5, documented through the U.S. Department of Education or an independent audit following federal methodology.
• Institutions must complete the North Dakota State Authorization Spreadsheet.
• A surety bond amounting to at least 10% of the prior year’s gross income from ND student tuition/fees (minimum $10,000; if gross income exceeds $1.5 million, minimum $150,000) must be submitted.
• Institutions must provide public disclosures covering program details, tuition, fees, refund policies, and other student protections as specified in the State Board of Higher Education Policy 470 State Authorization.
• A non-refundable application fee, as approved by the State Board of Higher Education, must accompany submissions. The annual fee is based on an institution’s total full-time equivalent (FTE) enrollment as reported to the U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS) each fall, which represents 12-month FTE enrollment.

Notification Requirements:

Authorized institutions must notify the North Dakota University System Office within 30 days of:

• Accreditation status changes,
• Ownership changes,
• Financial responsibility composite score changes, or
• Receipt of complaints from North Dakota students, including resolution outcomes.

Distance education in North Dakota is defined as 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.

Requirements for distance education authorization:

Institutions must be participating members of the National Council for State Authorization Reciprocity Agreements (NC-SARA) and meet all NC-SARA requirements, including consumer protection, quality standards, and reporting.

Alternative authorization:

Institutions owned or controlled by another entity (i.e., a parent entity) that fail to meet NC-SARA federal financial responsibility composite score requirements solely for this reason may seek state authorization if they:

• Are eligible participants in student financial aid programs under Title IV of the Higher Education Act of 1965.
• Have an institutional financial responsibility score greater than 1.5, which is calculated by an independent auditor using the methodology prescribed by the U.S. Department of Education.

• Process for alternative authorization:
  • Institutions must complete the North Dakota State Authorization Application.
  • Provide documentation (e.g. a letter from SARA Portal Entity or a letter from NC-SARA) and rationale why the institution is ineligible for NC-SARA membership.
  • Institutions must be accredited by an accrediting body recognized by the U.S. Department of Education and remain in good standing. Any adverse action on accreditation must be reported to the North Dakota University System Office within 30 days.
  • Institutions must complete the North Dakota State Authorization Spreadsheet.
  • A surety bond amounting to at least 10% of the prior year’s gross income from ND student tuition/fees (minimum $10,000; if gross income exceeds $1.5 million, minimum $150,000) must be submitted.
  • Institutions must provide public disclosures covering program details, tuition, fees, refund policies, and other student protections as specified in the State Board of Higher Education Policy 470 State Authorization.
  • A non-refundable application fee, as approved by the State Board of Higher Education, must accompany submissions. The annual fee is based on an institution’s total full-time equivalent (FTE) enrollment as reported to the U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS) each fall, which represents 12-month FTE enrollment

• Additional requirements for distance education authorization:
  • Provide public disclosures for programs leading to professional licensure, satisfying federal requirements under 34 CFR §668.43.
  • Submit annual renewal applications by October 1 if authorization is maintained outside of NC-SARA.
  • Seek North Dakota University System Office approval before enrolling more than 10 students simultaneously at a single clinical or practicum site.

• Notification Requirements:
  • Authorized institutions must notify the North Dakota University System Office within 30 days of:
    • Accreditation status changes,
    • Ownership changes,
    • Financial responsibility composite score changes, or
    • Receipt of complaints from North Dakota students, including resolution outcomes.

If an institution’s application for state authorization is denied, it may appeal within 30 days by providing supporting documentation. The North Dakota University System Office will review the appeal and forward a recommendation to the State Board of Higher Education, which will issue a final decision. Institutions may reapply at any time after correcting deficiencies.

The following are exempt from North Dakota state authorization requirements:

• Educational programs conducted by a trade, business, or fraternal organization solely for that organization’s membership, or offered on a no-fee basis.
• 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.
• Postsecondary educational institutions established, operated, and governed by North Dakota.
• Private four-year institutions chartered or incorporated and operating in the state prior to July 1, 1977, so long as the institutions retain accreditation and are recognized by the U.S. Department of Education.
• Schools of nursing regulated under N.D.C.C. ch. 43-12.1.
• Native American colleges operating in North Dakota, established by federally recognized Indian tribes.
• Institutions whose only physical presence in North Dakota consists of students enrolled in practicums, internships, clinicals, or student teaching.
• Postsecondary career schools that are regulated under N.D.C.C. ch. 15-20.4.

Institutions must comply fully with North Dakota state authorization requirements. Under N.D.C.C. ch. 15-18.1 and SBHE Policy 470 State Authorization:

Prohibited Actions:

• Operate a postsecondary educational institution not exempted from the provisions of N.D.C.C. ch. 15-18.1, unless the institution has a currently valid authorization to operate issued.
• Instruct or educate, or offer instruction 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 any institution or party for perform any such act, at a facility or location in North Dakota unless the person observes and complies with the minimum standards and criteria established by the State Board of Higher Education.
• Use the term “university,” “institute,” or “college” without authorization to do so from the State Board of Higher Education.
• Grant, or offer to grant, educational credentials without authorization to do so from the State Board of Higher Education.

Penalties:

• Civil penalties of up to $1,500 for each violation. Each day’s failure to comply with the State Board of Higher Education provisions is a separate violation.
• Violations may also lead to criminal charges, with willful violations classified as a Class B misdemeanor under North Dakota law.

The North Dakota University System Office will provide written notice of noncompliance, after which institutions have 30 days to correct deficiencies. Failure to do so can result in the assessment of penalties or suspension of authorization.

Appeals and enforcement actions will follow the processes outlined by the North Dakota University System and the State Board of Higher Education.

Institutions are encouraged to proactively maintain compliance to avoid penalties and ensure continued authorization.

The North Dakota University System Office accepts complaints regarding North Dakota degree-granting postsecondary institutions authorized or exempt under N.D.C.C. 15-18.1, as well as those participating in the State Authorization Reciprocity Agreement (SARA).

Where to Start:

The North Dakota State Board of Higher Education delegates to North Dakota University System institutions the authority and responsibility to resolve student and other complaints. Unless another remedy is established by law or policy, the first step in resolving a complaint is to attempt resolution directly with the administration of the involved institution using its published complaint or grievance procedures.

All North Dakota institutions (public, private non-profit, and for-profit) are required to establish, publish, and enforce clear policies for redress of complaints and grievances.

North Dakota University System Review:

If the institution’s complaint process does not result in a successful resolution, the North Dakota University System Office will conduct the final review for complaints originating at:

• Authorized or exempted North Dakota institutions; or
• SARA-participating institutions operating in North Dakota.

For North Dakota residents enrolled in a distance education program at a SARA institution located in another state, students must begin the complaint process at the institution they attend. If unresolved, the complaint should then be escalated to the SARA Portal Agency of the state where the institution is based.

Limitations:

• The North Dakota University System Office will not review anonymous complaints, except those reporting fraud, waste, or abuse.
• The North Dakota University System Office does not handle matters in litigation or complaints solely concerning grades or exam results, which are under the purview of college/university faculty.
• The North Dakota University System Office does not conduct judicial investigations or evidentiary hearings, but may conduct a paper review, discuss the matter with relevant parties, and take other appropriate steps to seek resolution.

Privacy & Public Records:

• Under the North Dakota open records law, all documents relating to public business, including complaints, responses, and related materials, are public unless specifically protected by statute.

Per the Family Educational Rights and Privacy Act (FERPA), student records containing personally identifiable information — including student complaints or grievances — are confidential, subject to limited exceptions.

North Dakota Century Code 15-18.1

State Board of Higher Education Policy 470 State Authorization

For questions or assistance with state authorization, please contact:

North Dakota University System Office

Claire Gunwall

Director of Academic Affairs & Workforce Innovation

600 E Boulevard Ave, Dept 215

Bismarck, ND 58505-0230

stateauth@ndus.edu