Transcript Changes and Challenges: Distance Education and Regulatory

Today’s Speakers
The State of
State Authorization:
Regulations and Reciprocity
OCICU Conference
March 2015
Agenda
2
Basic Principles
 State Regulations
 Federal Regulations
 Reciprocity and SARA
 Questions and Answers

State Authorization – Basic Principles
3
Basic Principle 1:
If you are crossing a state line to
serve a student, check if you need to
seek authorization.
State Authorization – Basic Principles
4
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
5
Basic Principle 3:
The states view this as
Consumer
Protection.
State Authorization – Basic Principles
6
Basic Principle 4:
The answer to nearly
every question is:
IT DEPENDS!!!!!
State Regulations
7
States expect institutions to follow their laws
and regulations.


Use SHEEO Web Surveys: http://sheeo.org/sheeo_surveys/
There is no list of “easy” or “hard” states in terms of state
authorization:

For profit / not-for profit / public / private

Offering distance education vs. clinicals/internships vs. on the
ground facilities

Number of students (Maryland Example)
State Regulations
8
A public institution offering only
distance education in another state:

9 states require approval of public degreegranting institutions (100% online programs):
Alabama, Arkansas, Indiana, Maryland,
Minnesota, Missouri, Montana, Utah, and Wyoming

A few others require you to register or apply for
an exemption.
State Regulations
9
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
State Regulations
10
Licensure programs
Psychology
State Regulations – Military Students
11

Most states do not distinguish between enrolling
or recruiting students on military bases versus
enrolling or recruiting others residing in a state.

Currently only a handful of states expressly
exempt institutions operating on military bases
(Arkansas, Georgia, New Hampshire, South
Carolina, and West Virginia).

What about State of Residence?
State Regulations – Consequences
12
What can happen to an institution that does not comply
with state laws?

Cease and desist orders.

Possible fines and institutional sanctions, etc.

Lawsuits.

Domino effect with accreditors and US ED.

Damaged reputation!
Federal Regulation –
Chapter 34, §600.9(c)
13
“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)
14
“…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)
15
“…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/
Federal Regulation
Negotiated Rulemaking
16
The Bottom Line

Department “pauses” on state authorization.
(http://wcetblog.wordpress.com/2014/06/26/pause-on-state-auth/)

NO federal regulation.

NO federal deadline.
For more information: http://wcet.wiche.edu/learn/issues/state-authorization
http://wcetblog.wordpress.com/
Federal Regulations
17

Representative Foxx Bill.

New DoD MOU expects you to comply with
state regulations.

States STILL EXPECT YOU TO COMPLY and
their deadline is NOW.
For more information:
http://wcet.wiche.edu/learn/issues/state-authorization
http://wcetblog.wordpress.com/
Federal Regulations
18
Complaint Process:
Institutions must provide current and prospective students with
contact information for filing complaints with their accrediting
agency and with the appropriate state agencies.
Deadline was July 1, 2011.
Federal Regulations
19
These four items should be easily found on your
institution’s website:
1. Information about your institution’s complaint process.
2. Accreditation information (including their complaint
processes).
3. State agency complaint web links.
4. State authorization information.
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There has to be a better way!
Reciprocity
21
State Authorization Reciprocity Agreement
(SARA)
The Current Process:
Institutions seek authorization from every state or territory where they
hope to serve students.
The SARA Process:
Institutions seek approval from their home states which have joined
SARA and the state agency then regulates those institutions with
regard to the export of online education across state lines to host
states.
SARA Will Help Reduce Costs To Institutions and Students
Reciprocity
22
Basic Principles

State-to-state agreement

Voluntary

States may join (voluntary).



A state applies through its regional compact.
If state does not join, its institutions are ineligible.
Institutions may join (voluntary).



States review and approve institutions within their own state.
Institutions must be accredited and degree-granting.
Open to all sectors: public institutions, independent institutions,
non-profit and for-profit.
Reciprocity
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Basic Principles

Sets a uniform set of “triggers” for physical
presence.
Marketing and recruiting.
 Servers and instructors in other SARA states.
 Proctored exams.
 Class field trips across state lines among SARA
states.
 More clinical and experiential learning.
 Some limited on-the-ground learning.

Reciprocity
24
Basic Principles

Preserves state oversight of on-the-ground activities.

SARA states agree to impose no additional fees or
requirements on institutions from other SARA states.

Shifts principal oversight responsibility to the “home
state.”
Reciprocity
25
Structure of SARA

Regional compacts work with their states.





Midwestern Higher Education Compact.
New England Board of Higher Education.
Southern Regional Education Board.
Western Interstate Commission for Higher Education.
National Council for SARA (NC-SARA) works with all
states.


Comprehensive national coverage.
Financial plan to support operations.
Regional Compacts
Reciprocity Agreement (SARA)
MHEC
WICHE
SREB
NEBHE
Reciprocity – As of March 17, 2015
27
20 States
SARA Progress
Reciprocity
28
Institutional Costs
 Cost to get approved by the state, if any.

Yearly fees to SARA:
 $2,000 – FTE LT 2,500.
 $4,000 – FTE of 2,501 to 9,999.
 $6,000 – FTE 10,000 or greater.
Reciprocity
29
SARA Important Points:



SARA has no effect on state professional
licensing requirements.
SARA has no effect on a state’s requirement
for out-of-state colleges to register with the
secretary of state or other state registry.
SARA allows for non-credit activities.
What Should Your Institution Be Doing?
30


Proceed – don’t wait!
Know where you students are – Have a
process and follow it.

Know what your institution is doing in
other states.

Communication is a two-way street!
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
Make strategic decisions.
 Prioritize
which states to seek authorization in.
 Assess your adversity to risk.
 Include key personnel (president, provost,
counsel, department heads) in key decisions.

Stay up to date on SARA.
 Will
your state join?
 Will other states where you have students join?
 Will your institution join?
Today’s Speakers
Marianne Boeke, Ph.D.
Senior Research Associate
National Center for Higher Education
Management Systems
[email protected]
Questions???
Resources
33

WCET state authorization website
http://wcet.wiche.edu/learn/issues/state-authorization

WCET State Authorization Network
http://wcet.wiche.edu/advance/state-authorization-network

WCET Frontiers Blog:
http://wcetblog.wordpress.com

SHEEO (list of state regulations)
http://www.sheeo.org/node/434
Resources
34

10 Steps You Can Take to Begin the State
Authorization Process
http://wcetblog.wordpress.com/2012/05/17/10-steps-to-begin-authorization/

Federal Regulation 600.9(c)
http://www.tinyurl.com/lgzdvel

Military Students and State Authorization
http://wcet.wiche.edu/wcet/docs/talking-points/
WCETTalkingPoints-State-Auth-Military-Nov2013.pdf

National Council of State Boards of Nursing
https://www.ncsbn.org/6662.htm
Welcome to New York Photo: https://www.flickr.com/photos/auvet/285187797/in/photostream/