.04 Exemptions.

A. This chapter does not apply to an out-of-State institution offering a course or a program on a military installation if:

(1) The recruitment and enrollment of students is limited to active duty military personnel, dependents of active duty military personnel, or civilians employed at the installation;

(2) The institution waives its right to claim veterans' benefits for enrollees; and

(3) The institution applies for and is granted an exemption from this regulation.

B. At least 30 days before the proposed initiation date of a course of instruction, the chief executive officer of the out-of-State institution shall submit to the Secretary, on the forms provided, a written application for an exemption from the approval process set forth in Regulation .07 of this chapter.

C. The application shall include:

(1) A copy of the agreement or memorandum of understanding that specifies that the out-of-State institution may not recruit or enroll students unless they are active duty military personnel, dependents of active duty military personnel or civilians employed at the installation; and

(2) A statement waiving the institution's right to claim veterans' benefits for enrollees.

D. There is no application fee for an exemption for a course or program on a military installation.

E. The Secretary shall approve the exemption if the application is complete.