(1) The board shall make a change in approval status when a school does not meet the requirements of the applicable statutes and rules to the satisfaction of the board. The board shall notify the school of a change in approval status and the time and manner in which the school must correct the deficiencies.

(2) The board may place a program on conditional approval when the board determines that an approved program is not in compliance with the board rules. The board may require the submission of an action plan, subject to board approval, to correct the identified program deficiencies.

(3) The board shall withdraw approval if a program fails to correct deficiencies within the time specified or in accordance with a board-approved action plan. When approval is withdrawn, the board shall remove the program from the list of approved programs and notify the applicable national accrediting body and the NCSBN testing services that the program is no longer approved. Whenever approval has been withdrawn, the program may not recruit or admit students prospectively without specific board approval.

(4) A program denied approval or given less than full approval status is entitled to notice and a hearing to contest the decision under the same procedures provided licensees, in accordance with the Montana Administrative Procedure Act and Title 37, chapter 1, part 3, MCA.

(5) Once a program corrects deficiencies, the board shall reinstate the program to conditional or approval status, as deemed appropriate by the board.