1. A postsecondary educational institution offering distance education programs to students in North Dakota must be a member of the national council for state

authorization reciprocity agreements and comply with the requirements of the council. Institutions must adhere to all standards, policies, and fees established by the national council for state authorization reciprocity agreements for membership and participation, including reporting requirements, quality standards, and consumer protection measures.

2. A postsecondary educational institution that is ineligible to participate in national council for state authorization reciprocity agreements due to composite score requirements is exempt from the requirements under subsection 1 if the postsecondary educational institution: a. Is an eligible participant in student financial aid programs under title IV of the Higher Education Act of 1965 [Pub. L. 89-329; 79 Stat. 1219; 20 U.S.C. 1001 et seq.]; and b. At the institution level, has a financial responsibility score calculated by an independent auditor using the methodology prescribed by the United States department of education greater than one and one-half.

3. The state board of higher education shall adopt a policy to implement this section, which may include a fee.