Current through Register Vol. 35, No. 18, September 24, 2024
A. A school license
is nontransferable.
B. A change of
ownership or control is any action by which a person or corporation obtains
authority to control the actions of an institution. These actions may include,
but are not limited to:
(1) the transfer of
the controlling interest of stock of an institution to its parent
corporation.
(2) the merger of two
or more institutions;
(3) the
division of an institution into two or more enterprises or
establishments;
(4) the transfer of
the assets or liabilities of an institution to its parent
corporation;
(5) the acquisition by
an individual of the controlling interest of an institution, whether a
proprietorship, partnership or corporation;
(6) the sale of an institution; or
(7) the lease of or right to do business as
an institution.
C. If
ownership or legal control of a licensed school changes, the new owner, lessee
or other legally responsible party must submit a new application and secure a
new license from the board.
D. If
legal control of a school does not change, but the organization of ownership
does change (e.g. a sole proprietor becomes the sole stockholder of a
corporation which owns the school), the board must receive notarized proof of
such change within 30 days of such change.
E. A completed application to open, change
ownership or relocate a school authorized under this act must be filed with the
board. An application to open a school, change ownership or relocate or change
the name of a school filed by a currently licensed school owner must be filed
at least 15 days in advance of the expected date of change.
(1) Applications must be on official forms
approved by the board and must include the appropriate fee.
(2) Applicants to open, change ownership or
relocate a school must demonstrate that the school is financially responsible
and the school has sufficient resources to ensure against precipitous closure.
Applicants shall provide at least the following information: evidence of
ownership; corporate or business status; identity and address of owners,
partners, shareholders, and directors; copies of articles of incorporation and
by-laws, if applicable; evidence of financial responsibility, including
compiled financial statement and balance sheet indicating assets and
liabilities; a corporate surety bond or or terminates a program prior to the
completion of a student's contract with the school; disclosure of the filing
within the last seven years of bankruptcy of owner(s), partner(s), or
director(s); and the identity of two business or financial
references.
(3) An owner(s),
partner(s), or director(s) of a school applicant must sign a release directed
to financial institutions authorizing the disclosure of financial information
and shall disclose loan history.
(4) An owner(s), partner(s), or director(s)
of a school applicant will be required to disclose civil actions brought within
10 years of the date of the application against an owner(s), partner(s), or
director(s) for or involving nonpayment of debt, fraud, or misrepresentation
and the disposition of such action(s).
(5) An owner(s), partner(s), or director(s)
of a school applicant will be required to disclose any arrest or conviction
within the ten years of the date of the application for fraud, larceny,
embezzlement, or any crime involving stealing, taking, theft, robbery, or
unlawful appropriation of money or anything of value that belongs to another
and the disposition of such action(s).
(6) A school is not financially responsible
if an owner(s), partner(s), or director(s) is not making payments in accordance
with an agreement, judgment, or debt obligation, or if an owner(s), partner(s),
or director(s) has been convicted of felony involving a crime described in
Paragraph 5 of Subsection E of 16.34.8.8 NMAC and that owner(s), partner(s), or
director(s) is not sufficiently rehabilitated as provided in the Criminal
Offender Employment Act, Section
28-2-1
through
28-2-6
NMSA 1978.
(7) In the case of a
change of ownership of a school, the school establishment license of the prior
owner does not expire for 30 days after the date of sale providing it is a
current and valid license. In order to ensure continued training for students,
the new owner may operate under the prior license until the earlier of the
30-day expiration date of the prior license or obtaining the new school
establishment license.
(8) In case
of a change of ownership of a school, the new school shall submit a student
roster of all students enrolled at the time of the change which lists for each
student the name, the date of birth, the social security number, course
enrolled, the course beginning date and the student permit. The school shall
submit the student roster to the board within 30 days of the change of
ownership.
F. The
application, if complete, may be administratively approved. A formal inspection
of the establishment shall occur within 90 days of opening. Incomplete
applications without proper and complete supporting documents will be
returned.
G. When a school
relocates within the state of New Mexico, the owner must complete a new
application and obtain approval, including inspection from the board to operate
the business at the new location, and pay the school relocation fee.
H. If any portion of the school is completely
segregated from the primary area, a duplicate school license must be acquired
and posted in the separate area. A duplicate license fee will be assessed. The
school must also comply with
16.34.8.12
NMAC, expansion campus facility requirements.
I. All school licenses must be renewed on
March 31 of each year. Any school that has not renewed by March 31 must reapply
for licensure and meet all the current application requirements.
J. Each school licensed by the board shall
post a current copy of the statutes and rules and regulations and the most
recent inspection report in an area where clearly visible to the
public.
K. Each school licensed by
the board shall post an exterior sign which indicates the facility houses a
school.
