SB 306

                                1  SENATE BILL 306
                                2      57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Nicole Tobiassen and Brian G. Baca and Rex Wilson
                                5
                                6
                                7
                                8
                                9
                                10  AN ACT
                                11   RELATING TO HIGHER EDUCATION; ELIMINATING THE DISTINCTION
                                12   BETWEEN REGIONALLY AND NONREGIONALLY ACCREDITED INSTITUTIONS;
                                13   CHANGING LANGUAGE FROM "REGISTRATION" TO "LICENSURE".
                                14
                                15   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
                                16        SECTION 1.    Section 21-23-3 NMSA 1978 (being Laws 1971,
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                                17   Chapter 303, Section 3, as amended) is amended to read:
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                                18        "21-23-3.    DEFINITIONS.--As used in the Post-Secondary
                                19   Educational Institution Act:
                                20  A.     "career school" means a non-accredited private
                                21   post-secondary educational institution offering a formal
                                22   educational curriculum in New Mexico for a fee to members of
                                23   the general public beyond compulsory school age, terminating in
                                24   a certificate or diploma [associate degree] or comparable
                                25   confirmation of completion of the curriculum;
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                                1  B.   "college" or "university" means [a] an
                                2    accredited private post-secondary educational institution
                                3    offering a formal educational curriculum in New Mexico for a
                                4    fee to members of the general public beyond compulsory school
                                5    age, terminating in [a] an associate, a baccalaureate, a
                                6    master's or a doctoral degree or comparable confirmation of
                                7    completion of the curriculum;
                                8  C.   "department" means the higher education
                                9    department;
                                10  D.   "enrollment agreement" means an agreement,
                                11   instrument or note executed before a person begins coursework
                                12   that creates a binding obligation between the person and the
                                13   post-secondary educational institution;
                                14  E.   "license" means a written acknowledgment by the
                                15   department that a [career school or nonregionally accredited
                                16   college or university] private post-secondary educational
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                                17   institution has met the requirements of the department for
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                                18   offering a formal educational curriculum within New Mexico;
                                19  F.   "post-secondary educational institution"
                                20   includes an academic, vocational, technical, business,
                                21   professional or other school, college or university or other
                                22   organization or person offering or purporting to offer courses,
                                23   instruction, training or education from a physical site in New
                                24   Mexico, through distance education, correspondence or in
                                25   person;
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                                1  G.     "private post-secondary educational institution"
                                2    means a nonpublicly funded post-secondary educational
                                3    institution that offers post-secondary education for a fee to
                                4    members of the general public; and
                                5  H.     "prospective student" means a person who
                                6    demonstrates interest in signing an enrollment agreement with a
                                7    private post-secondary educational institution [and
                                8  I.     "registration" means a written acknowledgment by
                                9    the department that a regionally accredited college or
                                10   university has filed pertinent curriculum and enrollment
                                11   information, as required by the department, and is authorized
                                12   to operate a private post-secondary educational institution]."
                                13        SECTION 2.     Section 21-23-5 NMSA 1978 (being Laws 1994,
                                14   Chapter 108, Section 6, as amended) is amended to read:
                                15        "21-23-5.    DUTIES OF THE DEPARTMENT.--
                                16  A.     The department is charged with oversight of all
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                                17   private post-secondary educational institutions operating
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                                18   within the state.
                                19  B.     The department shall provide for the
                                20   [registration] licensure of all [regionally accredited colleges
                                21   and universities] private post-secondary educational
                                22   institutions operating in the state pursuant to the Post-
                                23   Secondary Educational Institution Act.
                                24  [C.     The department shall provide for the licensure
                                25   of all career schools and all nonregionally accredited colleges
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                                1    and universities operating in the state pursuant to the Post-
                                2    Secondary Educational Institution Act.]"
                                3  SECTION 3.    Section 21-23-6 NMSA 1978 (being Laws 1994,
                                4    Chapter 108, Section 7, as amended) is amended to read:
                                5  "21-23-6.    [REGISTRATION OF COLLEGES AND UNIVERSITIES]
                                6    LICENSURE OF PRIVATE POST-SECONDARY EDUCATIONAL
                                7    INSTITUTIONS--SUBMISSION OF MATERIALS.--
                                8  [A.     Every college or university operating in New
                                9    Mexico that is regionally accredited or seeking regional
                                10   accreditation by an accrediting agency approved by the
                                11   department shall register with the department.
                                12  B.] A.    A [college or university registering with]
                                13   private post-secondary educational institution seeking
                                14   licensure by the department pursuant to this section shall
                                15   provide curriculum and enrollment information, financial
                                16   information and all publication materials requested by the
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                                17   department.
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                                18  [C.] B.     A [college or university registering with]
                                19   private post-secondary educational institution licensed by the
                                20   department shall adopt a procedure for the resolution of
                                21   student complaints.
                                22  [D.     A college's or university's registration is
                                23   valid for the same period as its grant of regional
                                24   accreditation from its accrediting agency.]"
                                25        SECTION 4.    Section 21-23-6.1 NMSA 1978 (being Laws 1994,
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                                1    Chapter 108, Section 8, as amended) is amended to read:
                                2  "21-23-6.1.    LICENSURE OF [CAREER SCHOOLS--LICENSURE OF
                                3    CERTAIN COLLEGES AND UNIVERSITIES] PRIVATE POST-SECONDARY
                                4    EDUCATIONAL INSTITUTIONS.--
                                5  A.    A [career school or nonregionally accredited
                                6    college or university] private post-secondary educational
                                7    institution operating in New Mexico shall be licensed by the
                                8    department.    It is unlawful to operate a [career school or
                                9    nonregionally accredited college or university] private
                                10   post-secondary educational institution without first obtaining
                                11   a license from the department.
                                12  [B.     A college or university operating in New Mexico
                                13   that is not regionally accredited or is not seeking regional
                                14   accreditation by an accrediting agency approved by the
                                15   department shall be licensed by the department in the manner
                                16   provided for career schools or other nonregionally accredited
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                                17   colleges or universities.    It is unlawful to operate a college
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                                18   or university that is not accredited or seeking accreditation
                                19   by an accrediting agency approved by the department without
                                20   first obtaining a license from the department.
                                21  C.] B.    No person other than an employee of [an] a
                                22   private post-secondary educational institution licensed
                                23   pursuant to this section shall, for a salary or fee, solicit
                                24   attendance at that institution."
                                25        SECTION 5.    Section 21-23-6.2 NMSA 1978 (being Laws 1994,
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                                1    Chapter 108, Section 9, as amended) is amended to read:
                                2  "21-23-6.2.     LICENSURE STANDARDS--REQUIREMENTS--FEE
                                3    AUTHORIZATION.--
                                4  A.   Every [career school and nonregionally
                                5    accredited college and university] private post-secondary
                                6    educational institution operating in the state shall annually
                                7    apply to the department for licensure.     The [career school and
                                8    nonregionally accredited college or university] institution
                                9    shall apply on forms approved by the department, shall supply
                                10   all information requested by the department and shall pay an
                                11   annual licensure fee set by the department.
                                12  B.   The department or its designee shall consider
                                13   information submitted by the [career school and nonregionally
                                14   accredited college or university] private post-secondary
                                15   educational institution, information from independent
                                16   accreditation bodies and information gathered during visits to
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                                17   the [career school and nonregionally accredited college or
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                                18   university] institution in determining eligibility for
                                19   licensure.
                                20  C.   The department shall promulgate and file, in
                                21   accordance with the State Rules Act, rules that:
                                22  (1)   require each [career school and
                                23   nonregionally accredited college and university] private
                                24   post-secondary educational institution to supply annually
                                25   information regarding enrollment, program completion by
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                                1    students, employment and other educational placements of
                                2    students and operating revenue budgets;
                                3  (2)   provide standards and methods for the
                                4    evaluation and appraisal of [career schools and nonregionally
                                5    accredited colleges and universities] institutions;
                                6  (3)   provide for a tuition refund policy;
                                7  (4)   require maintenance of adequate records by
                                8    each [career school and nonregionally accredited college and
                                9    university] institution and provide reasonable availability of
                                10   records for inspection;
                                11  (5)   regulate the use of deceptive and
                                12   misleading advertising and determine what information shall be
                                13   furnished to each student prior to enrollment;
                                14  (6)   assure that any [career school or
                                15   nonregionally accredited college or university] institution
                                16   licensed pursuant to the Post-Secondary Educational Institution
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                                17   Act has entered into a teach-out agreement with at least one
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                                18   other private or public institution operating in the state
                                19   unless the department determines that such an agreement is not
                                20   feasible;
                                21  (7)   provide standards for the award of
                                22   associate, baccalaureate, master's and doctoral degrees;
                                23  (8)   require all degree-granting [schools]
                                24   institutions to seek appropriate external accreditation by an
                                25   agency recognized by the federal department of education as a
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                                1    means of assuring quality instruction;
                                2  (9)    name an advisory committee of education
                                3    providers and consumers, including owners and operators of
                                4    [career schools and nonregionally accredited colleges and
                                5    universities] private post-secondary educational institutions;
                                6  (10)   provide for the maintenance of records
                                7    for [career schools and nonregionally accredited colleges and
                                8    universities] institutions no longer in operation;
                                9  (11)   provide standards for the evaluation of
                                10   the financial stability and ability to meet the commitments of
                                11   [career schools and nonregionally accredited colleges and
                                12   universities] the institutions;
                                13  (12)   require each [career school and
                                14   nonregionally accredited college and university] institution to
                                15   adopt a procedure for the resolution of student complaints; and
                                16  (13)   establish other requirements necessary to
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                                17   carry out the provisions of the Post-Secondary Educational
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                                18   Institution Act.
                                19  D.   The department may solicit information
                                20   pertaining to the financial history and stability of a [career
                                21   school or nonregionally accredited college or university]
                                22   private post-secondary educational institution and its owners,
                                23   including information pertaining to actions of bankruptcy filed
                                24   within the immediately preceding five years.      The department
                                25   may consider such information in determining eligibility for
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                                1    licensure."
                                2  SECTION 6.    Section 21-23-6.3 NMSA 1978 (being Laws 1994,
                                3    Chapter 108, Section 10, as amended) is amended to read:
                                4  "21-23-6.3.     FEE AUTHORIZATION.--
                                5  A.   The department may establish initial application
                                6    fees for all colleges, universities or career schools seeking
                                7    to operate in New Mexico.    The initial application fee shall be
                                8    not less than two hundred dollars ($200) or more than five
                                9    thousand dollars ($5,000).    In setting the fee, the department
                                10   shall consider the projected revenue of the institution and the
                                11   projected cost of performing the review.
                                12  B.   The department may establish an annual licensing
                                13   fee for all [career schools or nonregionally accredited
                                14   colleges or universities] private post-secondary educational
                                15   institutions licensed by the department.    The licensing fee
                                16   shall be proportionate to each school's gross annual tuition
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                                17   revenue; provided the fee shall be not less than two hundred
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                                18   dollars ($200) or more than five thousand dollars ($5,000).
                                19  C.   The department may charge a reasonable
                                20   administrative fee not to exceed the actual cost of providing
                                21   the administrative service.
                                22  D.   All fees imposed and collected by the department
                                23   shall be deposited in the post-secondary educational
                                24   institution fund."
                                25        SECTION 7.    Section 21-23-7 NMSA 1978 (being Laws 1971,
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                                1    Chapter 303, Section 7, as amended) is amended to read:
                                2  "21-23-7.    CLAIMS--LIMITATIONS--APPEALS.--
                                3  A.     Any person having a claim against a [college,
                                4    university or career school registered or] private post-
                                5    secondary educational institution licensed by the department or
                                6    that [college's, university's or career school's] institution's
                                7    agents, instructors or other personnel shall first seek
                                8    resolution of the claim with the [college, university or career
                                9    school] institution; thereafter, a person may file a verified
                                10   complaint with the department, setting forth the basis of the
                                11   claim and the name and address of the [college, university or
                                12   career school] institution complained against and any other
                                13   persons involved or having knowledge of the claim.    All claims
                                14   shall be limited to the amount of tuition actually paid or to
                                15   any charge or fee received by the [college, university or
                                16   career school] institution or its agents or employees.
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                                17  B.     Upon the receipt of a verified complaint, the
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                                18   department or its authorized employee shall attempt to resolve
                                19   the claim outlined in the complaint.    The department or its
                                20   authorized employee may convene a hearing and shall give
                                21   written notice to the [college, university or career school]
                                22   private post-secondary educational institution and to all
                                23   persons involved of the hearing and its time, date and place.
                                24   The notice shall state that the hearing is an informal one for
                                25   the purpose of determining the facts surrounding the claim and,
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                                1    if the claim is correct, to effect a settlement by persuasion
                                2    and conciliation.
                                3  C.   In the event that the party complained against
                                4    refuses to attend the hearing or effect the settlement of any
                                5    claim determined by the department to be correct, the
                                6    department shall invoke its powers to take such action as shall
                                7    be necessary for the indemnification of the claimant.
                                8  D.   Any person aggrieved by a final department
                                9    decision [rendered subsequent to a claim hearing may appeal to
                                10   the district court in the judicial district in which the
                                11   hearing was conducted.    The appeal shall be based upon the
                                12   record established at the claim hearing] may appeal as provided
                                13   in Section 39-3-1.1 NMSA 1978."
                                14        SECTION 8.     Section 21-23-7.1 NMSA 1978 (being Laws 1994,
                                15   Chapter 108, Section 12, as amended) is amended to read:
                                16        "21-23-7.1.    SURETY BOND REQUIRED--ALTERNATIVE SURETY.--
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                                17  A.   A [college, university or career school
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                                18   registered or] private post-secondary educational institution
                                19   licensed by the department shall post with the department and
                                20   maintain in effect a surety bond.       The bond shall be payable to
                                21   the department and shall be sufficient in amount to indemnify
                                22   any student damaged as a result of fraud or misrepresentation
                                23   by a [registered or] licensed [college, university or career
                                24   school] institution or as a result of the [college, university
                                25   or career school] institution ceasing operation prior to its
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                                1    students having completed the programs for which they have
                                2    contracted.
                                3  B.   The department is authorized to establish the
                                4    amount of bond required on an individual basis, taking into
                                5    consideration factors such as the [college's, university's or
                                6    career school's] private post-secondary educational
                                7    institution's size, number of students and total income and
                                8    assets of the [college, university or career school]
                                9    institution in the state.   In no case shall the bond be less
                                10   than five thousand dollars ($5,000) nor shall it exceed twenty
                                11   percent of [a college's, university's or career school's] an
                                12   institution's gross annual tuition revenue in New Mexico.
                                13  C.   Surety bonds may be canceled only following
                                14   delivery of written notice to the department no less than
                                15   ninety days prior to the date of cancellation.   In case of
                                16   cancellation, the [college, university or career school]
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                                17   private post-secondary educational institution shall provide
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                                18   the department with a like surety or acceptable alternative in
                                19   order to maintain licensure.
                                20  D.   As an alternative to a surety bond, a [college,
                                21   university or career school] private post-secondary educational
                                22   institution may elect to and the department may require that [a
                                23   college, university or career school] an institution establish
                                24   and maintain a cash deposit escrow account, irrevocable letter
                                25   of credit or alternative payable to the department in an amount
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                                1    set by the department and subject to rules promulgated by the
                                2    department.     In no case shall the deposit or account required
                                3    exceed twenty percent of the [college's, university's or career
                                4    school's] institution's gross tuition annual revenue in New
                                5    Mexico."
                                6  SECTION 9.     Section 21-23-10 NMSA 1978 (being Laws 1971,
                                7    Chapter 303, Section 9, as amended) is amended to read:
                                8  "21-23-10.     DISCIPLINARY ACTIONS--CIVIL PENALTIES.--
                                9  A.    A person shall not:
                                10  (1)    operate a [career school or nonregionally
                                11   accredited college or university] private post-secondary
                                12   educational institution within the state until that school has
                                13   been licensed by the department;
                                14  [(2)   operate a regionally accredited college
                                15   or university within the state until that college or university
                                16   has registered with the department;
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                                17  (3)] (2)    deny enrollment to or make any
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                                18   distinction or classification of students in the program or
                                19   practices of any private post-secondary educational institution
                                20   under the jurisdiction of the department on account of race,
                                21   color, culture, ancestry, national origin, sex, age, religion
                                22   or disability; or
                                23  [(4)] (3)    solicit, directly or through an
                                24   agent or employee, the enrollment of any person in a private
                                25   post-secondary educational institution within the state by the
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                                1    use of fraud, misrepresentation or collusion.
                                2  B.   Whoever violates any provision of this section
                                3    may be assessed a civil penalty not to exceed five hundred
                                4    dollars ($500) per day per violation.     Civil penalties shall be
                                5    credited to the current school fund as provided in Article 12,
                                6    Section 4 of the constitution of New Mexico.
                                7  C.   After an investigation, the department may take
                                8    any one or a combination of the following disciplinary actions
                                9    against a private post-secondary educational institution
                                10   [registered or] licensed in accordance with the Post-Secondary
                                11   Educational Institution Act:
                                12  (1)    revoke a license, including if the
                                13   institution has had its accreditation revoked by its
                                14   accrediting agency;
                                15  [(2)   revoke the registration, if the
                                16   institution has had its regional accreditation revoked by its
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                                17   accrediting agency;
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                                18  (3)] (2)    assess a civil penalty as provided in
                                19   Subsection B of this section; or
                                20  [(4)] (3)    impose probation requirements."
                                21        SECTION 10.    Section 21-23-11 NMSA 1978 (being Laws 1971,
                                22   Chapter 303, Section 10, as amended) is amended to read:
                                23        "21-23-11.    EXISTING PRIVATE POST-SECONDARY EDUCATIONAL
                                24   INSTITUTIONS.--All private post-secondary educational
                                25   institutions existing prior to July 1, 1994 shall have ninety
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                                1    days to [register or to] apply for a license in accordance with
                                2    the terms of the Post-Secondary Educational Institution Act."
                                3  SECTION 11.      Section 21-24-2 NMSA 1978 (being Laws 1971,
                                4    Chapter 304, Section 2, as amended) is amended to read:
                                5  "21-24-2.     DEFINITIONS.--As used in the Out-of-State
                                6    Proprietary School Act:
                                7  [A.    "course" means any course, plan or program of
                                8    instruction, conducted in person, by mail or by other methods;
                                9  B.    "student" means any person within this state who
                                10   is above compulsory school age and eligible for one or more
                                11   courses of instruction;
                                12  C.] A.    "agent" means [any] a person who solicits in
                                13   person and for a fee the enrollment of a student in a course of
                                14   instruction offered by a proprietary school;
                                15  B.    "course" means any course, plan or program of
                                16   instruction, conducted in person, by mail or by other methods;
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                                17  C.    "department" means the higher education
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                                18   department;
                                19  D.    "license" means a written acknowledgment by the
                                20   department that a career school or accredited college or
                                21   university has met the requirements of the department for
                                22   offering a formal educational curriculum to New Mexico
                                23   students;
                                24  [D.] E.    "proprietary school" means a nonpublic
                                25   out-of-state school, academy or similar institution offering
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                                1    within New Mexico a course of instruction or training through
                                2    correspondence or similar methods or offering within New Mexico
                                3    a course of instruction or training to be conducted outside New
                                4    Mexico, but does not include a private out-of-state post-
                                5    secondary educational institution offering instruction or
                                6    training within New Mexico, to any student within this state;
                                7    and
                                8  [E.    "commission" means the commission on higher
                                9    education]
                                10  F.    "student" means a person within New Mexico who
                                11   is above compulsory school age and eligible for one or more
                                12   courses of instruction."
                                13  SECTION 12.     Section 21-24-4 NMSA 1978 (being Laws 1971,
                                14   Chapter 304, Section 4, as amended) is amended to read:
                                15  "21-24-4.     PUBLICIZING OF INSTRUCTION.--[No] An agent
                                16   shall not:
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                                17  A.    make or cause to be made any statement or
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                                18   representation, oral, written or visual, in connection with the
                                19   offering or publicizing of a course if the agent knows or
                                20   reasonably should know the statement or representation to be
                                21   false, deceptive, substantially inaccurate or misleading;
                                22  B.    promise or guarantee employment [utilizing]
                                23   using information, training or skill purported to be provided
                                24   or otherwise enhanced by a course, unless the promisor or
                                25   guarantor offers the student or prospective student a bona fide
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                                1    contract of employment agreeing to employ the student or
                                2    prospective student for a period of not less than ninety days
                                3    in a business or other enterprise regularly conducted by [him]
                                4    the promisor or guarantor in which such information, training
                                5    or skill is a normal condition of employment; or
                                6  C.     do any act constituting part of the conduct or
                                7    administration of a course, or the obtaining of students
                                8    [therefor] for a course, if the agent knows or reasonably
                                9    should know that any phase or incident in the conduct or
                                10   administration of the course is being carried on by the use of
                                11   fraud, deception or other form of misrepresentation or by any
                                12   agent soliciting students without a [registration] license."
                                13        SECTION 13.    Section 21-24-5 NMSA 1978 (being Laws 1971,
                                14   Chapter 304, Section 5, as amended) is amended to read:
                                15        "21-24-5.     [REGISTRATION] LICENSURE--SURETY BOND.--
                                16  A.     No agent representing a proprietary school shall
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                                17   sell any course or solicit students in person or by mail,
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                                18   telephone or similar means in New Mexico for a consideration
                                19   unless the institution [has registered with] is licensed by the
                                20   [commission] department.    The [commission] department shall
                                21   charge an annual [registration] license fee of not less than
                                22   five hundred dollars ($500) for each proprietary school and an
                                23   annual agent fee of not less than one hundred dollars ($100)
                                24   for each agent operating in New Mexico.
                                25  B.     [Registration] A license application shall be
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                                1    made on forms provided by the [commission] department and
                                2    accompanied by the annual [registration] license fee.
                                3  C.      The [registration] license application shall
                                4    include a surety bond acceptable to the [commission] department
                                5    in an amount not less than ten thousand dollars ($10,000) or
                                6    more than twenty-five thousand dollars ($25,000).      The bond may
                                7    be continuous and shall be conditioned to provide
                                8    indemnification to any student suffering loss as a result of
                                9    any fraud or misrepresentation used in procuring [his] the
                                10   student's enrollment and shall be supplied by the proprietary
                                11   school.   The surety may cancel the bond upon giving ninety
                                12   days' notice in writing to the [commission] department and
                                13   thereafter is relieved of liability for any breach of condition
                                14   occurring after the effective date of the cancellation.
                                15  D.    [Registration] Licensure shall not be
                                16   [permitted] granted unless the applying proprietary school
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                                17   agrees to adhere to the [commission] department rules [and
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                                18   regulations] that provide for a tuition refund policy.
                                19  E.      Upon ten days' notice, [any registration] a
                                20   license may be suspended by the [commission] department pending
                                21   a hearing by the [commission] department if the [registrant]
                                22   licensee solicits or enrolls students through fraud, deception
                                23   or misrepresentation.
                                24  F.      [Registration] A license shall be valid for one
                                25   year, from July 1 through June 30.       An application for renewal
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                                1    shall be accompanied by the fee and shall include a surety bond
                                2    if a continuous bond has not been furnished.
                                3  G.   The existence of a surety bond shall not be
                                4    construed as a limitation or impairment of any right of
                                5    recovery otherwise available, nor shall the amount of the bond
                                6    be relevant in determining the amount of damages or other
                                7    relief to which a plaintiff may be entitled.
                                8  H.   No recovery shall be had by a proprietary school
                                9    on any contract for or in connection with a course unless the
                                10   proprietary school had [registered] been licensed at the time
                                11   that its agent sold or negotiated the contract for the
                                12   particular course.
                                13  I.   [Registration] Licensure shall not constitute
                                14   approval of any course, agent or proprietary school conducting
                                15   or administering courses.     Any representation to the contrary
                                16   is a misrepresentation within the meaning of Section 21-24-4
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                                17   NMSA 1978.
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                                18  J.   All fees collected from [registration] licensure
                                19   or renewal of [registration] licensure shall be deposited with
                                20   the state treasurer's office to the credit of the post-
                                21   secondary educational institution fund and shall be spent by
                                22   the [commission] department for the administration of the
                                23   Out-of-State Proprietary School Act."
                                24        SECTION 14.     Section 21-24-8 NMSA 1978 (being Laws 1971,
                                25   Chapter 304, Section 8, as amended) is amended to read:
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                                1  "21-24-8.   JUDICIAL REVIEW.--Any final determination of
                                2    the [commission] department respecting the issuance, denial or
                                3    revocation of a [registration] license may be appealed to the
                                4    district court pursuant to the provisions of Section 39-3-1.1
                                5    NMSA 1978."
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