Private colleges and career schools would need state licenses

New Mexico's Higher Education Department would require private colleges and career schools to obtain licenses before operating in the state. These requirements cover schools that receive no public funding and charge the public for education after compulsory school age, including online or in-person instruction. Annual licensing fees would depend on tuition revenue and range from $200 to $5,000. State rules would require tuition-refund policies, student complaint procedures, and agreements with other schools to help students finish if a school closes, unless an agreement is not feasible. Only a school's employees could recruit students for that school for pay. Schools would need licenses before operating and would apply each year.

Covered out-of-state schools would need Higher Education Department licenses before their agents could sell courses or recruit students for pay in New Mexico. This covers private out-of-state schools offering distance courses or courses taught outside New Mexico. It excludes private out-of-state institutions offering education beyond compulsory school age within New Mexico. Schools would pay annual fees of at least $500, plus at least $100 for each agent operating in New Mexico. Applications would require a bond—financial backing for student losses from enrollment fraud—of $10,000 to $25,000 and agreement to state tuition-refund rules. A license would not mean the state approves the school, its agents, or its courses. Licenses would last one year, from July 1 through June 30.

People harmed by final Higher Education Department decisions on school complaints would be allowed to appeal through the process named in state law. Appeals would cover decisions on complaints against licensed private schools and their personnel. Decisions to issue, deny, or revoke covered out-of-state schools' licenses could be appealed to district court. Appeals would concern final department decisions. The referenced state law's appeal procedures and deadlines are not included here.