Montana: A Step-By-Step Guide to Obtain State Approval for a Private Postsecondary Institution

Licensing Agency

Montana Board of Regents of Higher Education – Office of the Commissioner of Higher Education (OCHE)

Degree-Granting Institutions

Process

Montana law (20-25-107, MCA) requires any person or institution issuing postsecondary degrees (certificates, associate, bachelor’s, master’s, doctoral, etc.) in the state to first obtain authorization from the Montana Board of Regents. In practical terms, any private college or university offering degree programs in Montana must be approved by the Board of Regents (via OCHE) before operating, unless the school falls under a specific exemption. The state’s authorization criteria emphasize accreditation and financial stability as measures of quality and integrity.

• Determine Authorization Need – Confirm whether your institution is subject to state authorization or qualifies for an exemption. Montana’s requirements apply to all degree-granting institutions (including out-of-state schools serving Montana students) except those explicitly exempted by law (see State Exemptions below for categories like religious or certain professional schools). If your institution grants degrees and does not squarely meet an exemption, plan to seek Board of Regents approval.
  
  
• Prepare Application Materials – Review the Montana Board of Regents Policy 221 and the state authorization guidelines, then assemble the required documentation. Key items include:
  • Proof of Accreditation or Plan – Documentation of current accreditation by a U.S. Department of Education-recognized accrediting agency (or evidence of candidacy status). New institutions without independent accreditation must establish a formal affiliation with an accredited institution. Be prepared to provide a copy of the signed affiliation agreement showing that the accredited partner will grant degrees and maintain transcripts until your school achieves its own accreditation.
  • Financial Integrity Evidence – Information demonstrating the institution’s financial soundness. Options include a letter from your chief executive affirming at least 20 years of continuous accreditation and operation without bankruptcy, or documentation of a U.S. Department of Education financial composite score ≥1.0, or a surety bond (amount determined by OCHE) to cover student tuition liabilities. Have the appropriate evidence or bond form ready to submit with the application.
  • State Business Registration – If your institution is not already registered in Montana, ensure you understand the Montana Secretary of State registration requirements. While this is handled separately from the education approval, out-of-state institutions must register to transact business in Montana. You will need to satisfy this requirement before enrolling Montana students (acknowledged in the application form).
  
  
• Online Application – Complete the Montana State Authorization Application form for private/non-public institutions. The form is available through the Montana University System (OCHE) website. Fill out all fields, attach the supporting documents gathered (accreditation proof, financial integrity documentation, affiliation agreement if applicable), and submit the application by email to the Montana State Authorization Compliance Officer at the designated email address (StateAuthorization@montana.edu). There is no online portal; submission is done via email by sending the saved PDF and attachments as instructed.
  
  
• Fees Payment – None. Montana does not charge any application fee or licensing fee for state authorization of post-secondary institutions. The Board of Regents’ authorization process is fee-exempt. (If a surety bond is required for your institution, note that the bond is a financial guarantee held by a third party, not a fee paid to the state.)
  
  
• Review & Evaluation – Upon submission, OCHE staff will conduct an administrative review of your application. They will check that all required information and documents are included and that your institution meets the baseline criteria. The review focuses on verification of accreditation status (or candidate/affiliate arrangements for new institutions) and financial integrity compliance. OCHE will confirm that any affiliation agreement covers credit issuance and transcript responsibilities appropriately. Typically, the evaluation is a desk review only – there is no routine on-site visit in Montana’s authorization process. If anything is missing or unclear, the Compliance Officer may reach out for additional information or clarification during this stage.
  
  
• Additional Review – In certain cases, further inquiry may be necessary before a decision. For example, if your institution is newly established and operating under an accrediting partner, OCHE may closely review the affiliation arrangement and may consult with the partner institution or the accrediting agency to ensure all requirements are satisfied. Generally, accredited institutions in good standing move through the process without needing external evaluations. (If your institution intends to participate in the State Authorization Reciprocity Agreement (SARA) for offering distance education, you will have an extra step of signing a SARA participation agreement, but this is separate from the basic state approval and handled once authorization is secured.)
  
  
• Licensure Decision – Once all requirements are met and the application is deemed satisfactory, the Montana Board of Regents (through the Commissioner’s office) will grant state authorization for the institution. Approval is not tied to a fixed meeting calendar; applications are handled on a rolling basis. You can expect a formal notice of approval (often a letter or certificate of authorization) from OCHE. Timeline: The entire process from submission to decision is generally swift – the State Authorization Compliance Officer aims to issue a decision or initial response within approximately 20 days of receiving a complete application. Many institutions receive their approval within a few weeks if no issues arise. After approval, your institution is legally authorized to operate and confer the specified degrees in Montana.
  
  
• Continuous Compliance – After obtaining authorization, a school must maintain compliance with Montana’s requirements on an ongoing basis. Accreditation must be kept current – the institution should remain in good standing with its accreditor at all times. (If your accreditation status changes, such as being placed on probation or losing accreditation, you are required to notify the Montana OCHE immediately. Failure to maintain accreditation can result in loss of state authorization.) Institutions should also operate within the scope of programs and degrees that were reviewed. If you plan to add new degree programs or make substantial changes (e.g. a new campus location in Montana or a higher degree level than originally approved), you should consult OCHE, as an updated authorization or additional review may be necessary to cover the new offerings. Additionally, Montana expects authorized institutions to adhere to high standards of recordkeeping and student protection. Schools must maintain student academic records (transcripts) securely. In the event that an institution closes or ceases operations, Montana regulations require timely notification to OCHE and arrangements for custody of transcripts so that students can obtain their records in the future. By staying accredited, keeping OCHE informed of major changes, and safeguarding student records, an institution will meet its ongoing obligations under Montana law.
  
  
• Renewal – Montana does not require annual renewal of a post-secondary authorization. Unlike some states with one- or two-year license terms, Montana’s authorization is granted for an indefinite period so long as the institution continues to comply with the initial approval conditions. There are no annual fees or routine reapplication forms to file with the Board of Regents. However, an authorized school should maintain all qualifying conditions (e.g. accreditation and financial stability) continuously. If an institution falls out of compliance or significantly changes ownership/structure, it should report these developments to OCHE, but there is no scheduled renewal paperwork. In summary, once you are authorized, you can operate indefinitely under that authorization, with no need for periodic renewal, provided that you uphold the standards under which approval was granted.
  
  

Checklist of Required Items

When preparing the Montana state authorization application, be sure to have the following items ready:

• Completed State Authorization Application Form (filled out with all institutional details and signed by the appropriate representative).
  
  
• Accreditation Documentation – Proof of current accreditation or candidacy status. This may be a copy of your accreditation certificate or letter from your accrediting agency. (For candidate institutions, include the candidacy acceptance letter. For new institutions using an affiliate, include proof of the affiliate’s accreditation.)
  
  
• Affiliation Agreement (if applicable) – A signed formal agreement with an accredited institution (required if your institution is not yet accredited on its own). The agreement should show the accredited partner’s role in awarding credits/degrees and maintaining student records until your institution achieves accreditation.
  
  
• Financial Integrity Evidence – Supporting documentation for the chosen financial integrity option:
  
  
  
  • If claiming 20+ years of accreditation and operation, include a letter from the Chief Executive Officer attesting that the institution meets all three criteria (longevity of accreditation, 20 years in Montana, no bankruptcy).
    
    
  • If using the financial composite score, provide official documentation of the latest Composite Score (e.g. a letter or report showing a score of 1.0 or above).
    
    
  • If using a surety bond, include a copy of the completed surety bond form (Montana Board of Regents bond for postsecondary institutions) signed by a qualified surety company. (Note: The original bond document must be mailed to OCHE at the address below.)
    
    
• Other Supporting Materials – Any additional documents that OCHE may request during the process, such as clarification letters or policy statements. (For example, if any information on the form was not sufficient, you might include a cover letter explanation.) While Montana’s application is brief, ensure you have answered all questions on the form and attached the above proofs to avoid delays.
  
  

Fees & Timelines

Montana’s authorization process is both streamlined and low-cost. No state fees are charged for reviewing or approving a post-secondary institution – Montana does not collect application fees or annual license fees for degree-granting colleges. The only potential monetary cost to the institution might be obtaining a surety bond (if OCHE requires a bond for your case), but that bond is held for student protection rather than a fee paid to the state. In terms of timeline, the state uses a rolling review of applications. There are no fixed application windows or board meeting dates to wait for. Once you submit a complete application, expect an initial response from the State Authorization Compliance Officer within approximately 20 business days. The overall approval process typically takes a matter of weeks, depending on how quickly any follow-up questions are resolved. Since Montana relies on accreditation status and documentation (with no routine on-site visits), approvals can be granted relatively quickly. It’s wise to build in some lead time before your intended start date (for example, submit a couple of months in advance) in case additional information is needed, but many institutions find that Montana’s turnaround is prompt. Overall, you should anticipate a few weeks from submission to authorization, assuming all requirements are met on the first submission.

Agency Contact 

Montana University System – Office of the Commissioner of Higher Education (OCHE)
State Authorization Compliance Office
Contact Person: Hannah Tokerud, State Authorization Compliance Officer (Associate Legal Counsel)
Phone: 406-449-9173
Mailing Address: 560 N. Park Avenue, PO Box 203201, Helena, MT 59620-3201

(For questions or submission of applications, you may contact Hannah Tokerud at the phone number above. Electronic submissions are accepted via email at the address provided in the application form. Physical correspondence, such as original surety bond documents, should be mailed to the OCHE address listed.)

Vocational and Career Schools

Non-degree postsecondary schools (e.g. vocational trade schools, career training institutes, and other proprietary schools offering diplomas or certificates rather than academic degrees) do not have a centralized state licensing authority in Montana at this time. Montana’s previous statutes governing private trade schools and other proprietary post-secondary institutions were repealed, meaning there is currently no state agency that issues a mandatory license for standalone career training schools. In practice, this means that if you plan to operate a private vocational or technical school in Montana (for example, a coding bootcamp, truck driving school, or cosmetology training program that does not confer college degrees), you are not required to obtain a state education license before operating. However, absence of a license requirement does not exempt such schools from oversight entirely. They must adhere to other applicable regulations to ensure quality and consumer protection. Key considerations for vocational and career schools in Montana include:

• Industry-Specific Oversight: Many trade and career programs fall under the purview of state professional licensing boards or agencies. If your school provides education in a field that is regulated (for instance, a cosmetology school or a nursing assistant training program), you must comply with the standards of the relevant Montana licensing board. This usually means obtaining the board’s approval of your curriculum or program for your graduates to be eligible for state licensure in that field. (For example, cosmetology and barbering schools are regulated by the Montana Board of Barbers and Cosmetologists, under Title 37, and must meet its requirements even though the state no longer issues a general proprietary school license.) Always check if your program area has an oversight board and follow their rules for program approval and instructor qualifications.
  
  
• Business Registration Requirements: All private schools still need to operate as legal businesses. Montana law (Title 35, MCA) requires out-of-state companies doing business in Montana to register with the Montana Secretary of State. Thus, if your career school is incorporated outside Montana or primarily located elsewhere, you must file for a Certificate of Authority to transact business in Montana. Even in-state startups should ensure they have formed the appropriate business entity (such as a corporation or LLC) and obtained a business license if required locally. In short, while there is no education license, a vocational school must fulfill the same corporate registration and tax obligations as any other business in the state.
  
  
• Consumer Protection (Program Integrity): Private vocational institutions are subject to Montana’s consumer protection laws, which guard against unfair or deceptive practices in commerce. The Montana Consumer Protection Act (Title 30, Chapter 14, MCA) applies to the advertising, enrollment, and operation of schools. Schools should therefore commit to honest advertising and fair dealings with students. All promotional materials and recruiters’ statements must be truthful and not misleading about outcomes (such as job placement rates or earnings prospects). Additionally, clear refund policies should be established and honored. For instance, if a student withdraws, any promised tuition refund or cancellation policy must be followed through as stated in the enrollment agreement. While Montana no longer mandates a specific refund formula by statute, failing to refund tuition that a student is entitled to (or misrepresenting the nature of your program) could be deemed a deceptive practice enforceable by the Montana Department of Justice’s Consumer Protection Office. To stay in compliance, vocational schools should document their policies in writing (catalogs or enrollment contracts), deliver the training and services as advertised, and handle student complaints promptly and fairly. Maintaining high ethical standards is not only good practice but also essential for avoiding legal issues in the absence of direct regulatory supervision.
  
  

In summary, career and trade schools in Montana operate with relative regulatory freedom, but they must self-govern to a large extent. By aligning with any available industry accreditation or standards, following trade board guidelines, properly registering the business, and treating students fairly, a vocational institution can successfully operate in Montana without a dedicated state license.

State Exemptions

Montana law provides specific exemptions under which an institution or program does not need to obtain state post-secondary authorization. If an entity falls into one of these categories, it is not required to seek approval from the Board of Regents (for degree-granting) or any other agency for non-degree offerings. The major exempt categories include:

• Religious Institutions – A school owned, controlled, and operated by a religious organization that offers only religious education and degrees is exempt. For example, a theological seminary or bible college that grants exclusively religious degrees (and not secular degrees) does not need state authorization. Such institutions must operate as nonprofit religious organizations and limit their awards to religious diplomas or degrees to remain exempt.
  
  
• Employer and Membership Training – Education programs offered in-house by businesses or organizations solely for their employees or members are exempt, as long as they do not confer formal educational credentials to the general public. This covers corporate training programs, apprenticeship or internship training provided by a company for its workforce, and similar non-public courses. Likewise, instruction offered by trade associations or professional organizations only to their members (and not to the general public for a fee) can be exempt, provided no degrees or academic credentials are awarded.
  
  
• Schools Regulated by Other Agencies (Licensed Trade Schools) – Schools that are already regulated, licensed, or approved under another state law do not require a separate authorization as post-secondary institutions. This typically includes vocational schools overseen by Montana’s professional licensing boards under Title 37, MCA. For instance, cosmetology and barber schools, massage therapy programs, truck driving schools, or any other training programs that must be approved by a state board or agency in order to operate or have their graduates licensed are exempt from the Board of Regents oversight. They operate under the authority of their respective regulatory boards instead.
  
  
• Avocational and Recreational Programs – Educational offerings that are purely avocational (hobby or personal enrichment) or recreational in nature are exempt from state authorization. These are courses not intended to prepare students for a career or to award an academic credential. Examples might be a community art class, a photography workshop, or recreational cooking school. As long as the program is for personal interest and not advertised as providing a degree, diploma, or vocational certificate, it falls outside the scope of state post-secondary regulation.
  
  

In all the above cases, the institutions or programs may operate without seeking approval from OCHE or any centralized higher education authority. However, an exempt institution can choose to pursue authorization voluntarily if it wishes (for instance, to signal legitimacy or to meet requirements of certain accrediting bodies or financial aid programs). Montana permits voluntary authorization, though truly exempt schools (like religious colleges) are not compelled to post a surety bond if they opt in. Always carefully review the exemption criteria: if there is any uncertainty about whether your school qualifies, consult with the OCHE State Authorization office for guidance before assuming an exemption.

For personalized guidance on navigating the authorization process for your private post secondary institution in Montana, reach out to Expert Education Consultants (EEC) at +19252089037 or email sandra@experteduconsult.com