N.M. Code R. § 5.99.1.14 - APPLICABLE DISTANCE EDUCATION AUTHORIZATION FEES AND SURETY BOND

A. The department may assess application, administrative, or reporting fees and publish a fee schedule.

B. The department shall assess fees for providing services associated with application review and making determinations of eligibility for DEA.

C. The department shall assess a fee upon determination that the institution has satisfactorily met all conditions for DEA.

D. The department shall assess an administrative fee for filing annual reporting; any costs associated with specialized review, program changes, and institution or administrative changes shall be assessed to the institution.

E. Each institution holding DEA shall maintain in force a surety bond or alternate form of surety accepted by the department.

(1) The surety bond shall:

(a) be payable to the department;

(b) be in an amount set at twenty percent of the institution's projected or actual gross annual New Mexico distance education tuition and fee revenue;

(c) include the name, office address and phone number of the issuing company representative; and

(d) allow for the department to draw in order to indemnify any student damaged as a result of fraud or misrepresentation, as a result of the institution ceasing operation prior to its students having completed the programs for which they have contracted, or to pay costs associated with preservation of student records.

(2) Alternate forms of surety: An institution may request a waiver from the bond requirement by providing a request to utilize an alternate form of surety. The request must detail the reasons the institution is seeking approval to utilize an alternate form of surety and provide detail regarding the type of surety. The department may accept or reject a request for alternate surety. The alternate form of surety shall:

(a) be payable to the department;

(b) be in an amount set at twenty percent of the institution's projected or actual gross annual New Mexico distance education tuition and fee revenue;

(c) be in the form of a cash deposit escrow account, irrevocable letter or credit, or similar alternate form of surety;

(d) include the name, office address and phone number of the issuing surety representative; and

(e) allow for the department to draw in order to indemnify any student damaged as a result of fraud or misrepresentation, as a result of the institution ceasing operation prior to its students having completed the programs for which they have contracted, or to pay costs associated with preservation of student records.

F. If an institution seeks to cancel a surety bond or an alternate form of surety, written notice must be delivered to the department. The institution may not cancel the surety bond or alternate form of surety until it has been provided with written release from the department. If the institution seeks to maintain or renew DEA, it shall provide the department with a like surety or acceptable alternative.

Notes

N.M. Code R. § 5.99.1.14

Adopted by New Mexico Register, Volume XXVIII, Issue 24, December 26, 2017, eff. 12/26/2017, Adopted by New Mexico Register, Volume XXIX, Issue 23, December 11, 2018, eff. 12/11/2018