20 U.S.C. § 1099a State responsibilities
(a) State responsibilitiesAs part of the integrity program authorized by this part, each State, through one State agency or several State agencies selected by the State, shall—(1) furnish the Secretary, upon request, information with respect to the process for licensing or other authorization for institutions of higher education to operate within the State; (2) notify the Secretary promptly whenever the State revokes a license or other authority to operate an institution of higher education; and (3) notify the Secretary promptly whenever the State has credible evidence that an institution of higher education within the State—(A) has committed fraud in the administration of the student assistance programs authorized by this subchapter; or (B) has substantially violated a provision of this subchapter.
(b) Institutional responsibilityEach institution of higher education shall provide evidence to the Secretary that the institution has authority to operate within a State at the time the institution is certified under subpart 3 of this part.