1. October 14, 2015 Michigan Workshop on the Midwestern State Authorization Reciprocity Agreement (M-SARA) University Club, Michigan State University 1

2. ACKNOWLEDGEMENTS Today’s presentation is a collaborative effort between the following people and organizations:  Daniel Hurley, Chief Executive Officer, Michigan Association of State Universities  Michael Beamish, Manager, Postsecondary Education, Michigan Department of Licensing and Regulatory Affairs (LARA)  Jenny Parks, Director, Midwestern State Authorization Reciprocity Agreement  Many, many other fine folks in Michigan 2

3. ACKNOWLEDGEMENTS The Michigan SARA workgroup is (was):  Daniel Hurley, Chief Executive Officer, Michigan Association of State Universities  Mike Beamish and Patricia Farrell-Cole were also extremely helpful before Dan came on board  Michael Beamish, Manager, Manager Licensing and Regulatory Affairs  Michael Hansen, President, Michigan Community College Association  Robert LeFevre, President, Michigan Independent Colleges & Universities  Ronda Edwards, Executive Director, Michigan Colleges Online, Michigan Community College Association 3

4. ACKNOWLEDGEMENTS Special recognition to MHEC Commissioners and Commissioner Alternates from Michigan:  David Eisler, President, Ferris State University  Steven Ender, President, Grand Rapids Community College  Karen McPhee, Senior Education Policy Advisor, Office of the Governor  Tonya Schuitmaker, President Pro Tempore and Chair of Higher Education Appropriations Subcommittee  Jim Tedder, Representative 4

5. ACKNOWLEDGEMENTS Your Michigan representative on the M-SARA Regional Steering Committee is Shellie L. Haut Director Licensure, Regulatory Services & Human Capital Central Michigan University 5

6. THIS AFTERNOON’S PRESENTATION 12:30-3:00 PM Part I: Benefits of Institutional Participation Part II: Requirements and obligations for Institutional Participation Part III: Status of SARA now and in the future Part IV: Status of traditional state authorization now and in the future 6

7. PART I: PART I: Benefits of Institutional Participation in SARA 7

8. THE BENEFITS OF SARA PARTICIPATION Fewer and Lower Fees for state authorization in most cases 8

9. THE BENEFITS OF SARA PARTICIPATION Consistent definitions and fewer states to monitor for renewals and regulatory changes which leads to reduced personnel costs 9

10. THE BENEFITS OF SARA PARTICIPATION Rationalized system of complaint reporting and resolution leads to fewer jurisdictional questions 10

11. THE BENEFITS OF SARA PARTICIPATION Consistency, efficiency, and reduced bureaucracy lessen the risks of noncompliance 11

12. PART II: Requirements for Institutional Participation in SARA 12

13. 13 SARA KEY ELEMENTS SARA KEY ELEMENTS

14. SARA KEY ELEMENTS and REQUIREMENTS Academic Integrity  National or Regional Accreditation  Adherence to C-RAC Guidelines  Authorization in home state 14

15. SARA KEY ELEMENTS and REQUIREMTNS Financial Responsibility  Private institutions must have a USDE score of 1.5 or above  If IHEs have a score of 1.0 to 1.49, they must meet document and demonstrate financial responsibility to the state portal agency 15

16. SARA KEY ELEMENTS and REQUIREMENTS Physical Presence Definitions (see p. 12 of P &S)  On-line education  Marketing and recruiting  Supervised Field Experiences  Limited on-the-ground learning  Servers, instructors in other states  Other limited activities 16

17. SARA KEY ELEMENTS and REQUIREMENTS Institutional Complaint Process  Must direct SARA students outside the institution’s state to the portal agency of the state in which the institution is domiciled  Students must exhaust the institutional process before appealing to the portal agency 17

18. SARA KEY ELEMENTS and REQUIREMENTS Accountability for catastrophic events and precipitous closings  Student records  Teach-out plans  Financial compensation 18

19. SARA KEY ELEMENTS and REQUIREMENTS Data Reporting A request annually for the number of students in on-line programs in each SARA state and a list of on-line programs offered by the institution (see page 15 of P & S) 19

20. SARA KEY ELEMENTS and REQUIREMENTS Professional Licensure Disclosures (see page 8 of P & S)  SARA does not affect licensure and certification; IHEs still have to work with those Boards as always  SARA requires certain disclosures to students in courses and programs leading to professional licensure 20

21. NC-SARA INSTITUTIONAL FEES $2,000/yr. for IHEs with under 2,500 FTE $4,000/yr. for IHEs with 2,500-9,999 FTE $6,000/yr. for IHEs with10,000 or more FTE *Based on 12 month unduplicated headcount as reported annually to IPEDS* *State Costs Vary* 21

22.  $2000 initial application fee  $2000 annual fee  The first time a school applies, the total cost to a school will be $4000 then $2000/year after that. MICHIGAN STATE FEES 22

23. LARA (Michigan Department of Licensing and Regulatory Affairs)  Approves institutions for participation in SARA  Hears and resolves appropriate student complaints that rise above the institutional process  Investigates alleged institutional misbehavior  Informs institutions about changes to SARA and best practices under SARA 23 ROLES OF DIFFERENT SARA LAYERS

24. MHEC (Midwestern Higher Education Compact)  Approves states for membership in SARA  Investigates alleged state/portal agency misbehavior  Hears and helps settle disputes between states regarding institutional jurisdiction  Supports and informs portal agencies  Offers support and training to institutions 24 ROLES OF DIFFERENT SARA LAYERS

25. NC-SARA (National Council for State Authorization Reciprocity Agreements)  Coordinates the efforts of the four regional SARAs  Develops and approves one consistent set of policies and standards  Hears and helps settle disputes between regions regarding state and institutional jurisdiction  Supports and informs portal agencies  Takes institutional fees and distributes them among the regions to optimize SARA work nationally 25 ROLES OF DIFFERENT SARA LAYERS

26.  Institutions apply using the same application in every state HOW DOES A SCHOOL APPLY TO PARTICIPATE IN SARA? 26

27.  https://www.michigan.gov/documents/lara/PPS030_7-15_495241_7.pdf https://www.michigan.gov/documents/lara/PPS030_7-15_495241_7.pdf THE MICHIGAN APPLICATION IS ALL ON-LINE 27

28. WARNING!!!!! You still have to deal with non-SARA states under traditional state authorization laws and procedures. 28

29. 29 PART III: PART III: Status of SARA now and in the future

30. STATES THAT HAVE ALREADY JOINED SARA = 29 30 Pending Applications 2015 Maine Rhode Island Texas Georgia Maryland Mississippi Maybe in 2015 South Carolina Alabama

31. http://www.nc-sara.org/content/sara-state-status SARA UPDATES FOR STATES 31

32. ALMOST 500 INSTITUTIONS HAVE JOINED http://nc-sara.org/states/mi http://nc-sara.org/states/mi 32

33. 33 PART IV: PART IV: Status of traditional state authorization now and in the future

34. The History of State Authorization There are two levels of concern:  STATE LAW  FEDERAL REQUIREMENTS 34

35. The History of State Authorization State authorization laws have always been on the books in most states (branch campuses, correspondence courses, etc.) All this changed around 1992…. 35

36. 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 (also known as registration, exemption, etc.). The legal burden of authorization is on the institution. State Authorization: Basic Principles 36

37. 37 State Authorization: Basic Principles Basic Principle 2: There are as many as 3 types of authorization in each state:  Institutional – regulated by the H.E. Authorizing entity or entities.  Licensure – regulated by the professional boards and possibly the H.E. authorizing entity or entities.  Business – regulated by the Secretary of State

38. State Authorization: Basic Principles  Despite these state laws, most institutions did not comply and most states did not look for non-compliance until:  DEREGULATION OF FOR-PROFIT SCHOOLS  EXPLOSION OF THE INTERNET AND ON- LINE COURSEWORK 38

39. State Authorization: Basic Principles AND THEN THINGS BECAME A LITTLE MESSY… Institutional Closures Predatory Lending Worthless degrees Poor instruction Other abuses…. SO THE USDE PUBLISHED ITS PROGRAM INTERGRITY RULES ON OCTOBER 29, 2010 39

40. wcet.wiche.edu What is State Authorization of Distance Education? The Fundamentals 40

41. wcet.wiche.edu Fundamental #1: The Federal Regulation In 2010 the Department of Education (USDOE) created new “program integrity” regulations. 34 CFR 600.9 (a), (b), (c) – State Authorization The “On Ground” Regulation Chapter 34, §600.9(a) and (b) States must: 1. Have a process in place to approve an institution that offers more than 50% of a program face to face in that state. 2. Have a complaint process for students The VACATED Distance Education Regulation Chapter 34, §600.9(c) Institutions must: 1. Be legally authorized to offer postsecondary education in any state where distance education students are located while receiving instruction 41

42. wcet.wiche.edu Fundamental #2: The Vacated Regulation Chapter 34, §600.9(c) – No Current Enforceable Federal Regulation of State Authorization of Distance Education July 2011 – US District Court vacated the regulation on procedural grounds June 2012 – U.S. Court of Appeals upholds the District Court ruling to vacate the regulation BUT upholds USDOE’s ability to re-issue §600.9(c) Today – November 9, 2015 1. There is NO enforceable Federal regulation for distance education authorization. 2. There is NO Federal deadline for distance education authorization. 3. USDOE has no timeline to re-issue §600.9(c). The federal regulation is “on pause”. 4. BUT what about the states themselves????? 42

43. wcet.wiche.edu Fundamental #3: The State Regulations State Regulations have been in place all along and are enforceable! 1. Knowing the requirements in each state a. Regulated activities vary by state b. Process for compliance varies by state c. Fees for compliance vary by state 2. Institutional analysis of out of state activities Including but not limited to: a. Where are the students? (online and field experiences) b. Where is the faculty? (those that teach remotely) c. Where is the institution recruiting? d. Where is the institution marketing? The 2 main challenges for institutions: 43

44. wcet.wiche.edu WICHE Cooperative for Educational Technologies (WCET) www. http://wcet.wiche.edu/ www. http://wcet.wiche.edu/ 44

45. wcet.wiche.edu State Authorization Network (SAN) www. http://wcet.wiche.edu/advance/state-authorization-network www. http://wcet.wiche.edu/advance/state-authorization-network 45

46. wcet.wiche.edu State Higher Education Executive Officers Association (SHEEO) www.sheeo.org/sheeo_surveys/ www.sheeo.org/sheeo_surveys/ Example: 46

47. wcet.wiche.edu Fundamental #4: The Resources Secondary and Primary Sources to Guide the Institution to Compliance State Authorization Network State Authorization Network - Support Organization – research, experts, networking SHEEO State Authorization SurveysSHEEO State Authorization Surveys - Surveys of information for each state State Agency Websites - Most links found in the SHEEO SurveysSHEEO Surveys State Laws and Regulations - Most links found in the SHEEO SurveysSHEEO Surveys Other Important Federal Regulations – 34 CFR 602.17 34 CFR 602.17 – Application of standards in reaching an accrediting decision 34 CFR 668.43 34 CFR 668.43 – Institutional Information 34 CFR 668.7134 CFR 668.71 – Misrepresentation 47

48. wcet.wiche.edu Contact Information Cheryl Dowd Director, State Authorization Network WCET - WICHE Cooperative for Educational Technologies 3035 Center Green Drive Boulder, CO 80301 303-541-0210 cdowd@wiche.edu 48

49. What’s in the Future??  The federal regulation is probably coming back!!!  It was part of Negotiated Rulemaking in Spring 2014  Important topics discussed included:  Exemptions  Complaint Processes (home state, institutional state, state of residence)  Military students  Reciprocity Federal Regulation – Chapter 34, §600.9(c) 49

50. State Regulations Question: Where can I find out about regulations in each state? Answer: State Higher Education Executive Officers (SHEEO) provides a FREE listing of all state regulations: http://www.sheeo.org/node/434 50

51. State Regulations  What is in the SHEEO Survey?  Unit of analysis is AGENCY, not state  Over 70 agencies surveyed (50 states & 9 territories); scope was all state agencies authorizing all institutions in the US (not just online)  SHEEO resource was created using agency write-ups in September 2011 – subsequent updates have been completed in 2012 and 2013  Provides contact information for each agency, including a directory of contacts across all agencies  Provides information about regulations, rules, physical presence triggers, fees, applications and timelines 50

52. State Regulations: PHYSICAL PRESENCE TRIGGERS  Physical Location  Administrative Office  Practical Experiences (clinical, student teaching)  Required Proctoring  Contracted Services  Having an Employee in a State  Direct Marketing  Localized Advertising  Employing a third party provider in the state 52

53. State Regulations  What Does It Cost?  The fee for authorization varies widely among agencies, from $0 to $10,000+ per agency.  Some agencies require a fee for a waiver/exemption.  There can be other fees involved:  Site Visit  Surety Bond  Tuition Recovery Fund  Some agencies require a fee for renewal. 53

54. State Regulations  What are the risks of non-compliance?  Call from Regulator  Cease and Desist Letter  Public Accountability  Student ability to work or be licensed in that state…  Potential Lawsuit  Special Case – The Maryland Letter 54

55. Final Thoughts  Why should we care about state authorization?  Because it is the law (State).  It protects students.  Federal Regulations are probably coming back:  Compliance window might not be long.  Most of the components of state authorization are already covered by accreditation, Title IV eligibility, and are usually good practices. 55

56.  National accreditation http://www2.ed.gov/admins/finaid/accred/accredi tation_pg6.html http://www2.ed.gov/admins/finaid/accred/accredi tation_pg6.html  Financial responsibility http://studentaid.ed.gov/about/data- center/school/composite-scores http://studentaid.ed.gov/about/data- center/school/composite-scores  Program Integrity Rules http://www.gpo.gov/fdsys/pkg/FR-2010-10- 29/pdf/2010-27395.pdf http://www.gpo.gov/fdsys/pkg/FR-2010-10- 29/pdf/2010-27395.pdf  DOD http://www.militaryonesource.mil/voluntary- education?content_id=274604http://www.militaryonesource.mil/voluntary- education?content_id=274604 HELPFUL LINKS 56

57.  NC-SARA Website www.nc-sara.orgwww.nc-sara.org  Regional Education Compacts:  MHEC – http://www.mhec.org/sarahttp://www.mhec.org/sara  NEBHE – http://www.nebhe.org/programs- overview/sara/overview/http://www.nebhe.org/programs- overview/sara/overview/  SREB – www.sreb.org/sarawww.sreb.org/sara  WICHE – http://www.wiche.edu/sarahttp://www.wiche.edu/sara MORE INFORMATION 57

58. REGIONAL SARA CONTACTS Sandra J. Doran, Esq.​ Director, N-SARA NEBHE 45 Temple Place Boston, MA 02111 617.533.9524​ sdoran@nebhe.org​ www.nebhe.org Mary A. Larson, M.Ed. Director, S-SARA SREB 592 10th Street N.W. Atlanta, GA 30318-5776 404.875.9211 ext. 219 mary.larson@sreb.org www.sreb.org John Lopez, Ph.D. Director, W-SARA WICHE 3005 Center Green Drive, Suite 130 Boulder, CO 80301 303.541.0277 jlopez@nc-sara.org www.wiche.edu Jennifer L. Parks, M.A. Director, M-SARA MHEC 105 Fifth Avenue South, Suite 450 Minneapolis, MN 55401 612.287.5131 jennyp@MHEC.org www.mhec.org 58

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