1. Power. The state board may grant an applicant a certificate of temporary approval, permitting use of the term "community college," "college" or "university" in its name until the earlier of:
A. The expiration of the academic year; or
B. The applicant is authorized by the Legislature to grant degrees in accordance with section 10704.
2. Extensions and renewals. The state board may extend or renew a certificate of temporary approval for not more than 2 years.