Agency Contact

Scott Corl - NC Community College System Office
919-807-7061
corls@nccommunitycolleges.edu

Topic 1: Important Agency Information to Note

Provide important web links:

What types of institutions are subject to this agency’s authority? Indicate the types of institutions that your agency authorizes.

  • Note: Some agencies may refer to out-of-state public institutions as “private colleges” in their law.  If this is the case for your agency, please select “public, out-of-state degree granting institutions” for purposes of this Guide so that the out-of-state public institution will find appropriate information.
  • Note: If your agency is a coordinating board, your agency may have one division with some authority such as program approval over in-state public institutions that are established per statute, which is structured differently than another division of your agency with state authorization authority over non-public institutions that they “license” pursuant to different statute(s).

____ Public, in-state degree granting institutions
____ Public, out-of-state degree granting institutions
____ Private, in-state, not-for-profit degree granting institutions
____ Private, out-of-state, not-for-profit degree granting institutions
____ Private, in-state, for-profit degree granting institutions
____ Private, out-of-state, for-profit degree granting institutions
____ Public, in-state, non-degree granting institutions
____ Public, out-of-state, non-degree granting institutions
_X__ Non-degree, not-for profit institutions
_X__ Non-degree, for-profit institutions
____ Religious institutions
____ Tribally-controlled institutions
____ Federal Institutions
____ Municipal institutions

Does your agency authorize specific academic programs offered by institutions, only institutions themselves, or both?

  • For example, an agency may require an institution apply for licensure for institutional approval and also require the institution to apply for specific program(s) approval.

_____ Institution

_____ Program

__X__ Both

Clarifying comments:

The Office of Proprietary Schools acts as the administrative body of the State Board of Proprietary Schools. The State Board of Proprietary Schools is under the North Carolina Community College System. The State Board of Community Colleges licenses proprietary schools upon the recommendation of the State Board of Proprietary Schools. Proprietary Schools are regulated pursuant to N.C.G.S. Article 8, Chapter 115D and Title 2 of the State Board of Community Colleges Code.

Topic 2: Authorization of Distance Education

Does your agency require exclusively online offerings offered by out-of-state institutions to be authorized?

  • Meaning as example, the state regulates an out-of-state institution for merely enrolling a student into a distance education program
  • Meaning as example, a solely online program that does not have any internships and practicums

No. A physical presence is required for North Carolina proprietary school licensing

Clarifying comments

No. A physical presence is required for North Carolina proprietary school licensing.

Topic 3: Accreditation by an Accrediting Agency Recognized by the U.S. Department of Education

Is accreditation by an accrediting agency recognized by the U.S. Department of Education required for an institution to be authorized in your state?

No

If yes, please check all that apply as appropriate. Accreditation by an accrediting agency recognized by the U.S. Department of Education required for:

____ Public, out-of-state degree granting institutions
____ Private, in-state, not-for-profit degree granting institutions
____ Private, out-of-state, not-for-profit degree granting institutions
____ Private, in-state, for-profit degree granting institutions
____ Private, out-of-state, for-profit degree granting institutions
____ Public, in-state, non-degree granting institutions
____ Public, out-of-state, non-degree granting institutions
____ Non-degree, not-for profit institutions
____ Non-degree, for-profit institutions
____ Religious institutions
____ Tribally-controlled institutions
____ Federal Institutions
____ Municipal institutions

Clarifying comments:

No response provided

Topic 4: Physical Presence Policy

If your agency uses a physical presence standard, how does your agency define physical presence? Include sample triggers.

A physical presence is required for proprietary licensing in NC. It is commonly triggered by leasing or owning a physical location in North Carolina, specifically targeting ads to North Carolina citizens through local media or billboards (local advertising does not include general or national advertising), maintaining teaching or other faculty in North Carolina, or actively maintaining locations in North Carolina to recruit and enroll North Carolina residents. Without a physical presence, the institution would not be required to obtain proprietary licensing in NC for non-degree vocational programs. I would refer you to the Distance Education statement on our website: https://www.nccommunitycolleges.edu/about-us/state-board/state-board-of-proprietary-schools/distance-education/.

Please note that our response is limited to non-degree vocational programs. The UNC System Office has exclusive authority to license degree programs in our state. If the institution offers any degree programs, it must contact that entity to determine if licensing is required.

Web link for physical presence definition.

No response provided

Does a clinical/internship trigger the requirement for authorization with your agency?

No unless the school maintains employees in NC to oversee the clinical/internship.

Does a virtual clinical / internship trigger the requirement for authorization with your agency?

No.

Does a faculty member residing in your state and teaching an online course trigger the requirement for authorization with your agency?

Possibly

Does advertising targeted to residents of your state trigger the requirement for authorization with your agency?

Possibly

Does having an administrative site in your state trigger the requirement for authorization with your agency?

Yes

Does having a recruiter in your state trigger the requirement for authorization with your agency?

Possibly

Clarifying comments:

No response provided

Topic 5: Application Process

Please provide a short description of the application process to obtain state authorization.

Preliminary Application/Checklist for Initial Licensing/Portal Application/Proprietary Board Recommendation/NC Community College Board licensing.

Clarifying comments:

No response provided

Topic 6: Fees Associated with Authorization

Is there an application fee associated with the authorization process?

2A SBCCC 300.6 North Carolina Proprietary School Fee Schedule Each proprietary school subject to Article 8 of Chapter 115D shall make payment as directed by the SBPS according to the following fee schedule:

(1) Initial license – $5,000.

(2) Annual license renewal – $2,500. Any license renewal application submitted through the North Carolina Proprietary Board Licensure Portal after March 1st shall be assessed a $500 late fee.

(3) Program additions – $200.

(4) Program revisions – $200.

(5) School relocations – $500.

(6) Remote sites – $1,000 initial site fee, plus annual renewal fee of $750.

(7) Site assessments to verify statutory or SBCC Code compliance, or to approve program additions or changes – $500.

If yes, what is the fee or fee schedule?

See above.

Web link for fee information.

State Board Code – NCCCS (nccommunitycolleges.edu) https://www.nccommunitycolleges.edu/about-us/state-board/state-board-code/) –see Title 2

Clarifying comments:

No response provided

Topic 7: Surety Bonds

Does your agency require a Surety Bond for authorized out-of-state institutions?

A physical presence is required for licensing. Licensed proprietary schools are required to have a surety bond.

Web link for surety bonds.

The bond form must be downloaded from within our licensing portal.

Clarifying comments:

No response provided

Topic 8: Student Tuition Recovery Fund

Does your agency have a Student Tuition Recovery Fund (or similar fund for higher education institution closure)?

Yes

If yes, for what types of institutions?

All licensed proprietary schools.

Clarifying comments:

No response provided

Topic 9: Tuition Refund Policy

Does your agency have a Tuition Refund Policy Requirement?

Yes.

If yes, for what types of institutions?

All licensed proprietary schools.

Clarifying comments:

The policy and regulations shall provide for, at a minimum, a full refund if a student withdraws before the first day of class or the school cancels the class and a seventy‑five percent (75%) refund if the student withdraws within the first twenty‑five percent (25%) of the period of enrollment for which the student was charged.

Topic 10: Reporting

What kinds of information or data must an institution report to your agency as a condition for continued institutional state authorization?

Financial documents including balance sheet, profit and loss statements, and cash flow statements. Enrollment and graduation outcomes.

How frequently do institutions report data?

Annually

Is this information shared publicly?

No

Web link for reporting.

No response provided

Clarifying comments:

No response provided

Topic 11: Enforcement

What are possible consequences of institutional non-compliance?

License suspension or withdrawal.

Web link for enforcement information.

State Board Code – NCCCS (nccommunitycolleges.edu) –see Title 2

Clarifying comments:

No response provided

Topic 12: Student Complaints - Non-SARA Participating Institutions

Please describe the process for handling complaints about non-SARA out-of-state postsecondary institutions or programs? (34 CFR 600.9(a))

A physical presence is required for licensing. We do not regulate out of state institutions and would refer students to that state’s regulatory agency or the NC Attorney General’s Office for NC students.

Web link for the non-SARA complaint form.

No response provided

How does your agency handle a non-SARA complaint from a resident of its state that is against an out-of-state institution that the agency does not authorize?

A physical presence is required for our oversight.

Is the non-SARA process handled all within your agency or do you divide consumer protection and student complaint duties dependent on the type of institution (Public, Private, Technical, etc.)?

No response provided

Who is the contact person or entity for your state for receiving non-SARA student complaints?

No response provided

Clarifying comments:

No response provided

Topic 13: Records Retention

When a higher education institution closes, what is the process your state uses to ensure that transcripts/records are kept available?

School should transfer all records to the NC Archives.

From what agency or entity do students request their transcripts/records from a closed higher education institution?

NC Archives —home-page | NC Archives (ncdcr.gov)

Agency Name:
Contact Person:
Contact Phone:
Contact Address:
Contact Email:
Contact website:

Clarifying comments:

No response provided

Topic 14: Additional Information

Is there anything else about the state authorization process in your state that institutions and others ought to know about?

No response provided

What is your preferred method of communication?

Email

 

Please note: There could be additional state agencies with oversight of activities of your institution.