964                               LAWS OF MARYLAND                       [CH. 405

conduct instruction in residence may qualify as such an institution
upon approval by the State Department of Education. Such approval
shall be given only if the State Department of Education finds that
the applicant, organization, or entity:

(1)    Maintains physical facilities suitable and sufficient to the
giving of a program or programs of instruction of degree caliber in
the field wherein it proposes to grant degrees.

(2)    Maintains a suitable and sufficient faculty for instruction in
its degree granting program or programs.

(3)    Maintains its student records in a safe and suitable place
so that there is reasonable assurance that they are and will remain
available for all normal purposes for a reasonable period of time.

(4) Complies with all provisions of this chapter other than
the requirement for instruction in residence.

(b) In making any finding pursuant to this section the State
Department of Education may consider as evidence the action of any
recognized accrediting with respect to the applicant, organization,
or entity, but shall not be bound thereby.

156.    Right of inspection; penalty for refusal or obstruction.

Any duly authorized officer, employee or other representative of
the State Department of Education may enter upon the premises of
and inspect or otherwise examine the same and any books, papers or
other records pertaining to the educational activities of any degree-
granting institution. For failure to permit such entry, inspection or
examination or for obstruction thereof, the State Department of
Education may invalidate any notice filed with it by the degree-
granting institution pursuant to Section 154 of this chapter and may
refuse to accept another notice from or on behalf of said institution
or any person connected with the administration thereof until such
refusal or obstruction has been withdrawn. Any action taken pur-
suant to the section shall be in addition to any other penalty which
may be imposed for violation of this chapter.

157.    Unlawful representations.

Neither the fact of filing nor the permission to grant any degree or
degrees shall be held to mean that the State Department of Educa-
tion has passed upon the merits of, or given approval to, a particular
course of instruction or degree-granting institution. It shall be un-
lawful to make, or cause to be made, to any person any representation
contrary to the provisions of this section.

158.    Penalties.

Any person, firm, corporation partnership, association, degree-
granting institution, or other entity making any false statements in
any notice or amendment thereto filed pursuant to Section 154 of
this chapter shall be guilty of perjury. Any other violation of this
chapter shall be subject to a fine of not less than $1,000 nor more
than $10,000 or to a term of imprisonment not