1. (a) The Department may deny an application for a certificate of approval or an application to renew a certificate of approval for any of the following causes:

   1. (1) Violating this subchapter or any rule or regulation made by the Department.
   2. (2) Furnishing false, misleading, or incomplete information to the Department or failure to furnish information requested by the Department.
   3. (3) Any person, who signed an application, entered a plea of nolo contendere to, or was found guilty of any crime involving moral turpitude.
   4. (4) Any person who signed an application, is found by competent medical authority to be addicted to the use of any narcotic drug, other than a drug currently prescribed for treatment, or is found mentally incompetent.
   5. (5) Violating any commitment made in the application for a certificate of approval.
   6. (6) Presenting or causing to be presented to prospective students information that is false, misleading, or fraudulent.
   7. (7) Failing to provide or maintain premises or equipment in a safe and sanitary condition as required by laws, regulations, or ordinances applicable to the location of the postsecondary institution.
   8. (8) Failing to maintain financial resources adequate for the satisfactory conduct of the courses or programs offered or to retain sufficient and qualified instructional and administrative staff.
   9. (9) Offering a course, program of courses, or program that leads to a certificate or degree that has not been approved by the Department.
   10. (10) Failing to meet the criteria for approval.
   11. (11) Failing to maintain state licensing requirements for applicable offerings.
   12. (12) An act or practice by a person or an agent of the person that violates local, state, or federal law.
2. (b) Whenever the Department proposes to deny an application for a certificate of approval or an application for the renewal of a certificate of approval, it shall first give written notice to the applicant of the reasons for denial and the opportunity for a hearing before the Secretary. The applicant must be afforded at least 20 calendar days from the date the notice is mailed to request a hearing. If no written request for a hearing is received by the Secretary, the applicant’s application is deemed denied as set forth in the notice and the Department shall notify the applicant the application is denied.
3. (c) Any hearing before the Secretary must be held within 90 calendar days of the date the Secretary receives a request for a hearing. Notice of the hearing must be given at least 20 calendar days before the day it is held.
4. (d) All hearings must be conducted by the Secretary or the Secretary’s designee, who must prepare a proposed order for the Secretary’s consideration. In connection with such hearings, the Secretary or the Secretary’s designee has the power to administer oaths; issue subpoenas for witnesses and the production of books, accounts, papers, records, and documents; exclude plainly irrelevant, immaterial, insubstantial, cumulative, and privileged evidence; and limit unduly repetitive proof, rebuttal, and cross-examination.
5. (e) The burden of proof in a certificate of approval denial action is on the applicant to show by a preponderance of evidence that the applicant should not be denied a certificate of approval because the applicant meets the requirements to be issued a certificate of approval.

83 Del. Laws, c. 401, § 2