A. Any person having a claim against a college, university or career school registered or licensed by the department or that college's, university's or career school's agents, instructors or other personnel shall first seek resolution of the claim with the college, university or career school; thereafter, a person may file a verified complaint with the department, setting forth the basis of the claim and the name and address of the college, university or career school complained against and any other persons involved or having knowledge of the claim. All claims shall be limited to the amount of tuition actually paid or to any charge or fee received by the college, university or career school or its agents or employees.

B. Upon the receipt of a verified complaint, the department or its authorized employee shall attempt to resolve the claim outlined in the complaint. The department or its authorized employee may convene a hearing and shall give written notice to the college, university or career school and to all persons involved of the hearing and its time, date and place. The notice shall state that the hearing is an informal one for the purpose of determining the facts surrounding the claim and, if the claim is correct, to effect a settlement by persuasion and conciliation.

C. In the event that the party complained against refuses to attend the hearing or effect the settlement of any claim determined by the department to be correct, the department shall invoke its powers to take such action as shall be necessary for the indemnification of the claimant.

D. Any person aggrieved by a department decision rendered subsequent to a claim hearing may appeal to the district court in the judicial district in which the hearing was conducted. The appeal shall be based upon the record established at the claim hearing.

History: 1953 Comp., § 73-40-7, enacted by Laws 1971, ch. 303, § 7; 1975, ch. 148, § 7; 1994, ch. 108, § 11; 2013, ch. 59, § 9.

Cross references. — For procedures governing administrative appeals to the district court, see Rule 1-074 NMRA.

For scope of review of the district court, see Zamora v. Village of Ruidoso Downs, 1995-NMSC-072, 120 N.M. 778, 907 P.2d 182.

The 2013 amendment, effective June 14, 2013, changed terms to assign administration of the Post-Secondary Educational Institution Act to the higher education department; provided for resolution of claims against registered colleges and universities; in Subsections A through D, deleted "commission" and added "department"; in Subsection A, in the first sentence, after "having a claim against a", added "college, university or", after "university or career school" added "registered or", after "licensed by the department or that", added "college's, university's or", after "the claim with the", added "college, university or", and after "and address of the", added "college, university or", and in the second sentence, after "fee received by the", added "college, university or"; and in Subsection B, in the second sentence, after "written notice to the", added "college, university or".

The 1994 amendment, effective July 1, 1994, substituted "Appeals" for "Surety bonds" in the section heading; added the subsection designations; in Subsection A, substituted "career school licensed by the commission or that career school's" for "post-secondary educational institution holding a permit or certificate of approval its," added "first seek resolution of the claim with the career school; thereafter, a person may," substituted "commission" for "board," substituted "career school" for "institution" and substituted "career school or" for "institution"; in Subsection B, substituted "commission" for "board," added "shall attempt to resolve the claim outlined in the complaint. The commission or its authorized employee may convene a hearing and," deleted "ten days" preceding "written notice," and substituted "career school" for "institution"; in Subsection C, substituted "commission" for "board" twice, deleted "to notify the principal on the surety bond and" following "powers," and deleted "on the bond" following "action"; and added Subsection D.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 15A Am. Jur. 2d Colleges and Universities § 22.

Absence from, or inability to attend, school or college as affecting liability for, or right to recover payments for tuition or board, 20 A.L.R.4th 303.

14A C.J.S. Colleges and Universities §§ 48, 50.