1. Today’s Speakers The State of State Authorization: Regulations and Reciprocity OCICU Conference March 2015

2. Agenda  Basic Principles  State Regulations  Federal Regulations  Reciprocity and SARA  Questions and Answers 2

3. State Authorization – Basic Principles Basic Principle 1: If you are crossing a state line to serve a student, check if you need to seek authorization. 3

4. State Authorization – Basic Principles Basic Principle 2: Two types of authorization in each state: 1) Institutional – all activities you do in a state. 2) Licensure – professional programs. 4

5. State Authorization – Basic Principles Basic Principle 3: The states view this as Consumer Protection. 5

6. State Authorization – Basic Principles Basic Principle 4: The answer to nearly every question is: IT DEPENDS!!!!! 6

7. State Regulations States expect institutions to follow their laws and regulations.  Use SHEEO Web Surveys: http://sheeo.org/sheeo_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) 7

8. State Regulations A public institution offering only distance education in another state:  9 states require approval of public degree- granting 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. 8

9. State Regulations 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 9 http://www.sheeo.org

10. State Regulations Licensure programs 10 Nursing Teacher Education Psychology Medical Technician Funeral Services Physician Assistants

11. State Regulations – Military Students  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? 11

12. State Regulations – Consequences 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! 12

13. Federal Regulation – Chapter 34, §600.9(c) “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…” 13 http://www.tinyurl.com/mazquyl

14. Federal Regulation – Chapter 34, §600.9(c) “…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.” 14 http://www.tinyurl.com/mazquyl

15. Federal Regulation – Chapter 34, §600.9(c) “…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.” 15 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/

16. Federal Regulation Negotiated Rulemaking 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. 16 For more information: http://wcet.wiche.edu/learn/issues/state-authorization http://wcetblog.wordpress.com/

17. Federal Regulations  Representative Foxx Bill.  New DoD MOU expects you to comply with state regulations.  States STILL EXPECT YOU TO COMPLY and their deadline is NOW. 17 For more information: http://wcet.wiche.edu/learn/issues/state-authorization http://wcetblog.wordpress.com/

18. Federal Regulations 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. 18

19. Federal Regulations 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. 19

20. 20 There has to be a better way!

21. 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

22. 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.

23. Reciprocity 23 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.

24. 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.”

25. 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.

26. Regional Compacts Reciprocity Agreement (SARA) WICHE MHEC NEBHE SREB

27. Reciprocity – As of March 17, 2015 27 SARA Progress 20 States

28. 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.

29. 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.

30. 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!

31. 31  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?

32. Today’s Speakers Marianne Boeke, Ph.D. Senior Research Associate National Center for Higher Education Management Systems marianne@nchems.org Questions???

33. Resources  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 33

34. 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/