HIGHER ED REGIONAL DISTINCTION

SB0306

SENATE BILL 306

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Nicole Tobiassen
and
Brian G. Baca
and
Rex Wilson

AN ACT

RELATING TO HIGHER EDUCATION; ELIMINATING THE DISTINCTION
BETWEEN REGIONALLY AND NONREGIONALLY ACCREDITED INSTITUTIONS;
CHANGING LANGUAGE FROM "REGISTRATION" TO "LICENSURE".

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 21-23-3 NMSA 1978 (being Laws 1971,
Chapter 303, Section 3, as amended) is amended to read:

"21-23-3. DEFINITIONS.--As used in the Post-Secondary
Educational Institution Act:

A. "career school" means a
non-accredited
private
post-secondary educational institution offering a formal
educational curriculum in New Mexico for a fee to members of
the general public beyond compulsory school age, terminating in
a certificate
or
diploma [
associate degree
] or comparable
confirmation of completion of the curriculum;

B. "college" or "university" means [
a
]
an
accredited
private post-secondary educational institution
offering a formal educational curriculum in New Mexico for a
fee to members of the general public beyond compulsory school
age, terminating in [
a
]
an associate
,
a
baccalaureate,
a

master's or
a
doctoral degree or comparable confirmation of
completion of the curriculum;

C. "department" means the higher education
department;

D. "enrollment agreement" means an agreement,
instrument or note executed before a person begins coursework
that creates a binding obligation between the person and the
post-secondary educational institution;

E. "license" means a written acknowledgment by the
department that a [
career school or nonregionally accredited
college or university
]
private post-secondary educational
institution
has met the requirements of the department for
offering a formal educational curriculum within New Mexico;

F. "post-secondary educational institution"
includes an academic, vocational, technical, business,
professional or other school, college or university or other
organization or person offering or purporting to offer courses,
instruction, training or education from a physical site in New
Mexico, through distance education, correspondence or in
person;

G. "private post-secondary educational institution"
means a nonpublicly funded post-secondary educational
institution that offers post-secondary education for a fee to
members of the general public;
and

H. "prospective student" means a person who
demonstrates interest in signing an enrollment agreement with a

private
post-secondary educational institution [
and

I. "registration" means a written acknowledgment by
the department that a regionally accredited college or
university has filed pertinent curriculum and enrollment
information, as required by the department, and is authorized
to operate a private post-secondary educational institution
]."

SECTION 2.
Section 21-23-5 NMSA 1978 (being Laws 1994,
Chapter 108, Section 6, as amended) is amended to read:

"21-23-5. DUTIES OF THE DEPARTMENT.--

A. The department is charged with oversight of all
private post-secondary educational institutions operating
within the state.

B. The department shall provide for the
[
registration
]
licensure
of all [
regionally accredited colleges
and universities
]
private post-secondary educational
institutions
operating in the state pursuant to the Post-Secondary Educational Institution Act.

[
C. The department shall provide for the licensure
of all career schools and all nonregionally accredited colleges
and universities operating in the state pursuant to the Post-Secondary Educational Institution Act.
]"

SECTION 3.
Section 21-23-6 NMSA 1978 (being Laws 1994,
Chapter 108, Section 7, as amended) is amended to read:

"21-23-6. [
REGISTRATION OF COLLEGES AND UNIVERSITIES
]

LICENSURE OF PRIVATE POST-SECONDARY EDUCATIONAL
INSTITUTIONS
--SUBMISSION OF MATERIALS.--

[
A. Every college or university operating in New
Mexico that is regionally accredited or seeking regional
accreditation by an accrediting agency approved by the
department shall register with the department.

B.
]
A.
A [
college or university registering with
]

private post-secondary educational institution seeking
licensure by
the department pursuant to this section shall
provide curriculum and enrollment information, financial
information and all publication materials requested by the
department.

[
C.
]
B.
A [
college or university registering with
]

private post-secondary educational institution licensed by
the
department shall adopt a procedure for the resolution of
student complaints.

[
D. A college's or university's registration is
valid for the same period as its grant of regional
accreditation from its accrediting agency.
]"

SECTION 4.
Section 21-23-6.1 NMSA 1978 (being Laws 1994,
Chapter 108, Section 8, as amended) is amended to read:

"21-23-6.1. LICENSURE OF [
CAREER SCHOOLS--LICENSURE OF
CERTAIN COLLEGES AND UNIVERSITIES
]
PRIVATE POST-SECONDARY
EDUCATIONAL INSTITUTIONS
.--

A. A [
career school or nonregionally accredited
college or university
]
private post-secondary educational
institution
operating in New Mexico shall be licensed by the
department. It is unlawful to operate a [
career school or
nonregionally accredited college or university
]
private
post-secondary educational institution
without first obtaining
a license from the department.

[
B. A college or university operating in New Mexico
that is not regionally accredited or is not seeking regional
accreditation by an accrediting agency approved by the
department shall be licensed by the department in the manner
provided for career schools or other nonregionally accredited
colleges or universities. It is unlawful to operate a college
or university that is not accredited or seeking accreditation
by an accrediting agency approved by the department without
first obtaining a license from the department.

C.
]
B.
No person other than an employee of [
an
]
a
private post-secondary educational
institution licensed
pursuant to this section shall, for a salary or fee, solicit
attendance at that institution."

SECTION 5.
Section 21-23-6.2 NMSA 1978 (being Laws 1994,
Chapter 108, Section 9, as amended) is amended to read:

"21-23-6.2. LICENSURE STANDARDS--REQUIREMENTS--FEE
AUTHORIZATION.--

A. Every [
career school and nonregionally

accredited college and university
]
private post-secondary
educational institution
operating in the state shall annually
apply to the department for licensure. The [
career school and

nonregionally accredited college or university
]
institution

shall apply on forms approved by the department, shall supply
all information requested by the department and shall pay an
annual licensure fee set by the department.

B. The department or its designee shall consider
information submitted by the [
career school and nonregionally

accredited college or university
]
private post-secondary
educational institution
, information from independent
accreditation bodies and information gathered during visits to
the [
career school and nonregionally accredited college or
university
]
institution
in determining eligibility for
licensure.

C. The department shall promulgate and file, in
accordance with the State Rules Act, rules that:

(1) require each [
career school and

nonregionally accredited college and university
]
private
post-secondary educational institution
to supply annually
information regarding enrollment, program completion by
students, employment and other educational placements of
students and operating revenue budgets;

(2) provide standards and methods for the
evaluation and appraisal of [
career schools and nonregionally
accredited colleges and universities
]
institutions
;

(3) provide for a tuition refund policy;

(4) require maintenance of adequate records by
each [
career school and nonregionally accredited college and
university
]
institution
and provide reasonable availability of
records for inspection;

(5) regulate the use of deceptive and
misleading advertising and determine what information shall be
furnished
to
each student prior to enrollment;

(6) assure that any [
career school or

nonregionally accredited college or university
]
institution

licensed pursuant to the Post-Secondary Educational Institution
Act has entered into a teach-out agreement with at least one
other private or public institution operating in the state
unless the department determines that such an agreement is not
feasible;

(7) provide standards for the award of
associate, baccalaureate, master's and doctoral degrees;

(8) require all degree-granting [
schools
]

institutions
to seek appropriate external accreditation by an
agency recognized by the federal department of education as a
means of assuring quality instruction;

(9) name an advisory committee of education
providers and consumers, including owners and operators of
[
career schools and nonregionally accredited colleges and
universities
]
private post-secondary educational institutions
;

(10) provide for the maintenance of records
for [
career schools and nonregionally accredited colleges and
universities
]
institutions
no longer in operation;

(11) provide standards for the evaluation of
the financial stability and ability to meet the commitments of
[
career schools and nonregionally accredited colleges and
universities
]
the institutions
;

(12) require each [
career school and

nonregionally accredited college and university
]
institution
to
adopt a procedure for the resolution of student complaints; and

(13) establish other requirements necessary to
carry out the provisions of the Post-Secondary Educational
Institution Act.

D. The department may solicit information
pertaining to the financial history and stability of a [
career
school or nonregionally accredited college or university
]

private post-secondary educational institution
and its owners,
including information pertaining to actions of bankruptcy filed
within the immediately preceding five years. The department
may consider such information in determining eligibility for
licensure."

SECTION 6.
Section 21-23-6.3 NMSA 1978 (being Laws 1994,
Chapter 108, Section 10, as amended) is amended to read:

"21-23-6.3. FEE AUTHORIZATION.--

A. The department may establish initial application
fees for all colleges, universities or career schools seeking
to operate in New Mexico. The initial application fee shall be
not less than two hundred dollars ($200) or more than five
thousand dollars ($5,000). In setting the fee, the department
shall consider the projected revenue of the institution and the
projected cost of performing the review.

B. The department may establish an annual licensing
fee for all [
career schools or nonregionally accredited
colleges or universities
]
private post-secondary educational
institutions
licensed by the department. The licensing fee
shall be proportionate to each school's gross annual tuition
revenue; provided the fee shall be not less than two hundred
dollars ($200) or more than five thousand dollars ($5,000).

C. The department may charge a reasonable
administrative fee not to exceed the actual cost of providing
the administrative service.

D. All fees imposed and collected by the department
shall be deposited in the post-secondary educational
institution fund."

SECTION 7.
Section 21-23-7 NMSA 1978 (being Laws 1971,
Chapter 303, Section 7, as amended) is amended to read:

"21-23-7. CLAIMS--LIMITATIONS--APPEALS.--

A. Any person having a claim against a [
college,
university or career school registered or
]
private post-
secondary educational institution
licensed by the department or
that [
college's, university's or career school's
]
institution's

agents, instructors or other personnel shall first seek
resolution of the claim with the [
college, university or career
school
]
institution
; thereafter, a person may file a verified
complaint with the department, setting forth the basis of the
claim and the name and address of the [
college, university or
career school
]
institution
complained against and any other
persons involved or having knowledge of the claim. All claims
shall be limited to the amount of tuition actually paid or to
any charge or fee received by the [
college, university or
career school
]
institution
or its agents or employees.

B. Upon the receipt of a verified complaint, the
department or its authorized employee shall attempt to resolve
the claim outlined in the complaint. The department or its
authorized employee may convene a hearing and shall give
written notice to the [
college, university or career school
]

private post-secondary educational institution
and to all
persons involved of the hearing and its time, date and place.
The notice shall state that the hearing is an informal one for
the purpose of determining the facts surrounding the claim and,
if the claim is correct, to effect a settlement by persuasion
and conciliation.

C. In the event that the party complained against
refuses to attend the hearing or effect the settlement of any
claim determined by the department to be correct, the
department shall invoke its powers to take such action as shall
be necessary for the indemnification of the claimant.

D. Any person aggrieved by a
final
department
decision [
rendered subsequent to a claim hearing may appeal to
the district court in the judicial district in which the
hearing was conducted. The appeal shall be based upon the
record established at the claim hearing
]
may appeal as provided
in Section 39-3-1.1 NMSA 1978
."

SECTION 8.
Section 21-23-7.1 NMSA 1978 (being Laws 1994,
Chapter 108, Section 12, as amended) is amended to read:

"21-23-7.1. SURETY BOND REQUIRED--ALTERNATIVE SURETY.--

A. A [
college, university or career school

registered or
]
private post-secondary educational institution

licensed by the department shall post with the department and
maintain in effect a surety bond. The bond shall be payable to
the department and shall be sufficient in amount to indemnify
any student damaged as a result of fraud or misrepresentation
by a [
registered or
] licensed [
college, university or career
school
]
institution
or as a result of the [
college, university
or career school
]
institution
ceasing operation prior to its
students having completed the programs for which they have
contracted.

B. The department is authorized to establish the
amount of bond required on an individual basis, taking into
consideration factors such as the [
college's, university's or
career school's
]
private post-secondary educational
institution's
size, number of students and total income and
assets of the [
college, university or career school
]

institution
in the state. In no case shall the bond be less
than five thousand dollars ($5,000) nor shall it exceed twenty
percent of [
a college's, university's or career school's
]
an
institution's
gross annual tuition revenue in New Mexico.

C. Surety bonds may be canceled only following
delivery of written notice to the department no less than
ninety days prior to the date of cancellation. In case of
cancellation, the [
college, university or career school
]

private post-secondary educational institution
shall provide
the department with a like surety or acceptable alternative in
order to maintain licensure.

D. As an alternative to a surety bond, a [
college,
university or career school
]
private post-secondary educational
institution
may elect to and the department may require that [
a
college, university or career school
]
an institution
establish
and maintain a cash deposit escrow account, irrevocable letter
of credit or alternative payable to the department in an amount
set by the department and subject to rules promulgated by the
department. In no case shall the deposit or account required
exceed twenty percent of the [
college's, university's or career
school's
]
institution's
gross tuition annual revenue in New
Mexico."

SECTION 9.
Section 21-23-10 NMSA 1978 (being Laws 1971,
Chapter 303, Section 9, as amended) is amended to read:

"21-23-10. DISCIPLINARY ACTIONS--CIVIL PENALTIES.--

A. A person shall not:

(1) operate a [
career school or nonregionally
accredited college or university
]
private post-secondary
educational institution
within the state until that school has
been licensed by the department;

[
(2) operate a regionally accredited college
or university within the state until that college or university
has registered with the department;

(3)
]
(2)
deny enrollment to or make any
distinction or classification of students in the program or
practices of any
private
post-secondary educational institution
under the jurisdiction of the department on account of race,
color, culture, ancestry, national origin, sex, age, religion
or disability; or

[
(4)
]
(3)
solicit, directly or through an
agent or employee, the enrollment of any person in a
private

post-secondary educational institution within the state by the
use of fraud, misrepresentation or collusion.

B. Whoever violates any provision of this section
may be assessed a civil penalty not to exceed five hundred
dollars ($500) per day per violation. Civil penalties shall be
credited to the current school fund as provided in Article 12,
Section 4 of the constitution of New Mexico.

C. After an investigation, the department may take
any one or a combination of the following disciplinary actions
against a
private
post-secondary educational institution
[
registered or
] licensed in accordance with the Post-Secondary
Educational Institution Act:

(1) revoke a license,
including if the
institution has had its accreditation revoked by its
accrediting agency
;

[
(2) revoke the registration, if the
institution has had its regional accreditation revoked by its
accrediting agency;

(3)
]
(2)
assess a civil penalty as provided in
Subsection B of this section; or

[
(4)
]
(3)
impose probation requirements."

SECTION 10.
Section 21-23-11 NMSA 1978 (being Laws 1971,
Chapter 303, Section 10, as amended) is amended to read:

"21-23-11. EXISTING
PRIVATE
POST-SECONDARY EDUCATIONAL
INSTITUTIONS.--All
private
post-secondary educational
institutions existing prior to July 1, 1994 shall have ninety
days to [
register or to
] apply for a license in accordance with
the terms of the Post-Secondary Educational Institution Act."

SECTION 11.
Section 21-24-2 NMSA 1978 (being Laws 1971,
Chapter 304, Section 2, as amended) is amended to read:

"21-24-2. DEFINITIONS.--As used in the Out-of-State
Proprietary School Act:

[
A. "course" means any course, plan or program of
instruction, conducted in person, by mail or by other methods;

B. "student" means any person within this state who
is above compulsory school age and eligible for one or more
courses of instruction;

C.
]
A.
"agent" means [
any
]
a
person who solicits in
person and for a fee the enrollment of a student in a course of
instruction offered by a proprietary school;

B. "course" means any course, plan or program of
instruction, conducted in person, by mail or by other methods;

C. "department" means the higher education
department;

D. "license" means a written acknowledgment by the
department that a career school or accredited college or
university has met the requirements of the department for
offering a formal educational curriculum to New Mexico
students;

[
D.
]
E.
"proprietary school" means a nonpublic
out-of-state school, academy or similar institution offering
within New Mexico a course of instruction or training through
correspondence or similar methods or offering within New Mexico
a course of instruction or training to be conducted outside New
Mexico, but does not include a private out-of-state post-
secondary educational institution offering instruction or
training within New Mexico, to any student within this state;
and

[
E. "commission" means the commission on higher
education
]

F. "student" means a person within New Mexico who
is above compulsory school age and eligible for one or more
courses of instruction
."

SECTION 12.
Section 21-24-4 NMSA 1978 (being Laws 1971,
Chapter 304, Section 4, as amended) is amended to read:

"21-24-4. PUBLICIZING OF INSTRUCTION.--[
No
]
An
agent
shall
not
:

A. make or cause to be made any statement or
representation, oral, written or visual, in connection with the
offering or publicizing of a course if the agent knows or
reasonably should know the statement or representation to be
false, deceptive, substantially inaccurate or misleading;

B. promise or guarantee employment [
utilizing
]

using
information, training or skill purported to be provided
or otherwise enhanced by a course, unless the promisor or
guarantor offers the student or prospective student a bona fide
contract of employment agreeing to employ the student or
prospective student for a period of not less than ninety days
in a business or other enterprise regularly conducted by [
him
]

the promisor or guarantor
in which such information, training
or skill is a normal condition of employment; or

C. do any act constituting part of the conduct or
administration of a course, or the obtaining of students
[
therefor
]
for a course
, if the agent knows or reasonably
should know that any phase or incident in the conduct or
administration of the course is being carried on by the use of
fraud, deception or other form of misrepresentation or by any
agent soliciting students without a [
registration
]
license
."

SECTION 13.
Section 21-24-5 NMSA 1978 (being Laws 1971,
Chapter 304, Section 5, as amended) is amended to read:

"21-24-5. [
REGISTRATION
]
LICENSURE
--SURETY BOND.--

A. No agent representing a proprietary school shall
sell any course or solicit students in person or by mail,
telephone or similar means in New Mexico for a consideration
unless the institution [
has registered with
]
is licensed by
the
[
commission
]
department
. The [
commission
]
department
shall
charge an annual [
registration
]
license
fee of not less than
five hundred dollars ($500) for each proprietary school and an
annual agent fee of not less than one hundred dollars ($100)
for each agent operating in New Mexico.

B. [
Registration
]
A license application
shall be
made on forms provided by the [
commission
]
department
and
accompanied by the annual [
registration
]
license
fee.

C. The [
registration
]
license application
shall
include a surety bond acceptable to the [
commission
]
department

in an amount not less than ten thousand dollars ($10,000) or
more than twenty-five thousand dollars ($25,000). The bond may
be continuous and shall be conditioned to provide
indemnification to any student suffering loss as a result of
any fraud or misrepresentation used in procuring [
his
]
the
student's
enrollment and shall be supplied by the proprietary
school. The surety may cancel the bond upon giving ninety
days' notice in writing to the [
commission
]
department
and
thereafter is relieved of liability for any breach of condition
occurring after the effective date of the cancellation.

D. [
Registration
]
Licensure
shall not be
[
permitted
]
granted
unless the applying proprietary school
agrees to adhere to the [
commission
]
department
rules [
and
regulations
] that provide for a tuition refund policy.

E. Upon ten days' notice, [
any registration
]
a
license
may be suspended by the [
commission
]
department
pending
a hearing by the [
commission
]
department
if the [
registrant
]

licensee
solicits or enrolls students through fraud, deception
or misrepresentation.

F. [
Registration
]
A license
shall be valid for one
year, from July 1 through June 30. An application for renewal
shall be accompanied by the fee and shall include a surety bond
if a continuous bond has not been furnished.

G. The existence of a surety bond shall not be
construed as a limitation or impairment of any right of
recovery otherwise available, nor shall the amount of the bond
be relevant in determining the amount of damages or other
relief to which a plaintiff may be entitled.

H. No recovery shall be had by a proprietary school
on any contract for or in connection with a course unless the
proprietary school had [
registered
]
been licensed
at the time
that its agent sold or negotiated the contract for the
particular course.

I. [
Registration
]
Licensure
shall not constitute
approval of any course, agent or proprietary school conducting
or administering courses. Any representation to the contrary
is a misrepresentation within the meaning of Section 21-24-4
NMSA 1978.

J. All fees collected from [
registration
]
licensure

or renewal of [
registration
]
licensure
shall be deposited with
the state treasurer's office to the credit of the post-
secondary educational institution fund and shall be spent by
the [
commission
]
department
for the administration of the
Out-of-State Proprietary School Act."

SECTION 14.
Section 21-24-8 NMSA 1978 (being Laws 1971,
Chapter 304, Section 8, as amended) is amended to read:

"21-24-8. JUDICIAL REVIEW.--Any final determination of
the [
commission
]
department
respecting the issuance, denial or
revocation of a [
registration
]
license
may be appealed to the
district court pursuant to the provisions of Section 39-3-1.1
NMSA 1978."

- 20 -