Transcript Update on State Authorization for Distance Education

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UPDATE ON STATE AUTHORIZATION
FOR DISTANCE EDUCATION:
REGULATIONS & RECIPROCITY
Legal Issues in Higher Education
December 12, 2013
WICHE Cooperative for
Educational Technologies
wcet.wiche.edu
Russ Poulin
Deputy Director,
Research & Analysis
[email protected]
Agenda
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
State Authorization Overview
 Basic
Principles
 State Regulations
 Federal Regulation
State Authorization Reciprocity
Agreement (SARA)
 What Should Your Institution Be
Doing?

State Authorization – Basic Principles
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Basic Principle 1:
If your institution is in one state and
you are serving a student residing in
another state, then you should check for
authorization.
State Authorization – Basic Principles
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Basic Principle 2:
Two types of authorization
in each state:
1) Institutional – all activities
you do in a state.
2) Licensure – professional
programs.
State Authorization – Basic Principles
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Basic Principle 3:
The answer to nearly
every question is:
IT DEPENDS!!!!!
State Regulations
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If you are only offering for-credit,
distance education in a state,
eight require authorization:
Alabama
Iowa
Minnesota
Wisconsin
http://www.sheeo.org
Arkansas
Maryland
Montana
Wyoming
State Regulations
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If you are only offering for-credit,
distance ed in a state,
six require that you seek an
exemption or register with them:
Alaska
Nebraska
Oregon
http://www.sheeo.org
Illinois
N. Dakota
Utah
State Regulations
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But beware triggers of physical
presence:
Physical Location
Administrative Office
Direct Marketing
Localized Advertising
Required Proctoring
Contracted Services
Practical Experiences (clinical, student teaching)
Having an Employee in a State
http://www.sheeo.org
Federal Regulation –
Chapter 34, §600.9(c)
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“If an institution is offering
postsecondary education through
distance or correspondence
education to students in a State in
which it is not physically located or in
which it is otherwise subject to State
jurisdiction as determined by the
State…”
http://www.tinyurl.com/mazquyl
Federal Regulation –
Chapter 34, §600.9(c)
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“…the institution must meet any State
requirements for it to be legally
offering distance or correspondence
education in that State. An institution
must be able to document to the
Secretary the State’s approval upon
request.”
http://www.tinyurl.com/mazquyl
Federal Regulation –
Chapter 34, §600.9(c)
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“…the institution must meet any State
requirements for it to be legally
offering distance or correspondence
education in that State. An institution
must be able to document to the
Secretary the State’s approval upon
request.”
http://wcetblog.wordpress.com/2012/07/30/usdoe-will-not-enforce/
http://wcetblog.wordpress.com/2013/11/22/federal-state-authorization-regulation-its-baaaack-almost/
State Authorization Reciprocity
Agreement (SARA) – Key Points
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States and territories regulate higher
education within their borders, with
varying requirements
 At present, there is no alternative to each
institution separately pursuing any needed
approvals
 Requires a comprehensive national model
serving all interests and support quality.
 Must deal with poor institutional behavior.
States must be able to trust other states.

Who Was Involved in Drafting SARA?
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 Presidents’
Forum (of Excelsior
College) and Council of State
Governments.
 Regional higher education compacts
(MHEC, NEBHE, SREB, WICHE).
 Commission on the Regulation of
Postsecondary Distance Education,
committee of SHEEO and APLU.
Essential Principles of SARA
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Voluntary for states and institutions.
 Acknowledges traditional roles within
higher ed’s “accountability triad”:
states, accrediting, and federal
government.
 Framework for reciprocity, including:
governance, implementation, a
National Council, and a financial plan.

Regional Compacts
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MHEC
NEBHE
WICHE
SREB
Essential Principles of SARA…
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“Home” state approves in-state
institutions for SARA and resolve
complaints.
 SARA states agree to impose no
additional (non-SARA) requirements.
 Open to degree-granting postsecondary
institutions from all sectors
 Sets forth a reasonable, uniform set of
triggers of “physical presence”.

Essential principles of SARA…
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
Initial funding from Lumina
Foundation, eventual reliance on
institutional fees.
 LT
2,500 FTE:
 2,501 – 10,000 FTE:
 GT 10,000 FTE:
$2,000
$4,000
$6,000
Issues SARA Does Not Address
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Professional licensing board approval
for programs leading to licensing:
nursing, teacher education,
psychology, etc.
 Non-credit instruction.

What do states need to do?
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 Regional
compacts invite and work with
their states.
 Determine if the state wants to
participate.
 Make any needed changes to statutes or
rules.
 Identify agency(ies) to solicit and
approve participation of in-state
institutions and resolve complaints.
What do states need to do?
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 Identify
“portal” agency (if needed).
 Adopt in-state funding model (if
needed).
 Develop and submit SARA plan to
the state’s regional compact.
What do institutions need to do?
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 Wait
for their state to join.
 Determine if the institution wants to
participate.
 Apply to state showing how institution
meets the “Interregional Guidelines
for the Evaluation of Distance
Education.”
http://www.msche.org/publications/Guidelines-for-the-Evaluation-of-Distance-Education-Programs.pdf
Benefits to students
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Expands access to educational offerings.
 Should lead to better resolution of
complaints from students in SARA
states.
 Reduces a rapidly growing institutional
cost that is passed along to students.
 Should enhance overall quality of
distance education.

What is your institution doing (or not
doing) about state authorization?
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Survey – March 2013
1) No action taken.
2) Initial steps, no formal contacting a state.
3) Contacted states, no application.
4) Applied to one or more states.
5) Applied/received ALL authorizations.
http://wcet.wiche.edu/wcet/docs/state-approval/UPCEA/2013UPCEA-WCET-SloanCStateAuthorizationReport_FULL.pdf
What is your institution doing (or not
doing) about state authorization?
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No action
Initial steps,
no formal
contact
2013
Applied/
received ALL
approvals
5%
15%
18%
Contacted
States, no
applications
9%
Applied to
one or more
states
52%
http://wcet.wiche.edu/wcet/docs/state-approval/UPCEA/2013UPCEA-WCET-SloanCStateAuthorizationReport_FULL.pdf
What should your institution be doing?
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Proceed, Don’t Wait
 Reciprocity will take time.
 Will
your state join? Promote SARA.
 Will states where you have students
join?
 Federal regulation seems likely to return.
 Compliance window might not be long.
 States won’t do you any favors.
What should your institution be doing?
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Make Decisions Strategically
 Prioritize which states to do first.
Those with most students.
The “easy” ones.
 Include key personnel (president,
provost, counsel, department heads)
in key decisions.
 Assess your adversity to risk.
Learn More About
State Authorization and SARA
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
NC-SARA website:
http://nc-sara.org

WCET website:
http://wcet.wiche.edu/advance/state-approval

WCET State Authorization Network
http://wcet.wiche.edu/advance/stateauthorization-network
Learn More About
State Authorization and SARA
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
SHEEO (list of state regulations)
http://www.sheeo.org

Regional compacts
MHEC: http://www.mhec.org
NEBHE: http://www.nebhe.org
SREB: http://www.sreb.org
WICHE: http://www.wiche.edu
Thank you!
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Russ Poulin
Deputy Director, Research & Analysis
WCET – WICHE Cooperative for
Educational Technologies
[email protected]
http://wcet.wiche.edu