(1) This section applies if:
(a) an approved school provider applies for registration under section 9; and
(b) the ESOS agency for the provider has information suggesting that:
(i) the provider is not complying, or will not comply, with this Act or the national code; or
(ii) if the ELICOS Standards or Foundation Program Standards apply in relation to the provider--the provider is not complying, or will not comply, with those Standards; or
(iii) the provider does not have the principal purpose of providing education; or
(iv) the provider does not have the clearly demonstrated capacity to provide education of a satisfactory standard; or
(v) the provider has not been providing, or will not provide, education of a satisfactory standard; and
(c) the source of the information is not the designated State authority for the provider.
(2) Before deciding the application for registration, the ESOS agency must:
(a) give the information to the designated State authority; and
(b) allow the authority at least 7 days to respond, in writing, to the information.