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

ACKNOWLEDGEMENTSToday’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

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ACKNOWLEDGEMENTSThe 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

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ACKNOWLEDGEMENTSSpecial 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

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ACKNOWLEDGEMENTS

Your Michigan representative on the M-SARA Regional Steering Committee is

Shellie L. Haut

Director

Licensure, Regulatory Services & Human Capital Central Michigan University

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THIS MORNING’S PRESENTATION 9:30-11:45 AM

Part I: The History of State Authorization

Part II: What is SARA (State Authorization Reciprocity Agreement) and how might it help my institution?

Part III: SARA Nationwide Update

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PART I: The History of State Authorization

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The History of State Authorization

There are two levels of concern:

STATE LAW

FEDERAL REQUIREMENTS

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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….

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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 (also known as registration, exemption, etc.).

The legal burden of authorization is on the institution.

State Authorization: Basic Principles

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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

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

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State Authorization: Basic PrinciplesAND 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, 201013

wcet.wiche.edu

What is State Authorization

of Distance Education?

The Fundamentals14

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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” RegulationChapter 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 RegulationChapter 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

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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, 20151. 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?????

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Fundamental #3: The State Regulations

State Regulations have been in place all along and are enforceable!

1. Knowing the requirements in each statea. Regulated activities vary by stateb. Process for compliance varies by statec. Fees for compliance vary by state

2. Institutional analysis of out of state activitiesIncluding 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:

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

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

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State Higher Education Executive Officers Association (SHEEO) www.sheeo.org/sheeo_surveys/

Example:

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Fundamental #4: The Resources

Secondary and Primary Sources to Guide the Institution to Compliance

State Authorization Network -Support Organization – research, experts, networking

SHEEO State Authorization Surveys -Surveys of information for each state

State Agency Websites -Most links found in the SHEEO Surveys

State Laws and Regulations -Most links found in the SHEEO Surveys

Other Important Federal Regulations –34 CFR 602.17 – Application of standards in reaching an accrediting decision34 CFR 668.43 – Institutional Information34 CFR 668.71 – Misrepresentation

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Contact Information

Cheryl DowdDirector, State Authorization NetworkWCET - WICHE Cooperative for Educational Technologies3035 Center Green DriveBoulder, CO 80301303-541-0210cdowd@wiche.edu

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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)

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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

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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

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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

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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.

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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

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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.

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PART II: What is SARA (State Authorization Reciprocity Agreement) and how might it help my institution?

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THE CURRENT SYSTEM

Institution (>4000 in the US)x 54 states/territories x number of programs x number of studentsx number of clinical placementsx amount of revenue

COSTS TO INSTITUTIONS AND

STUDENTS

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THE SOLUTIONA nation-wide system of reciprocity administered by the four existing regional higher education compacts

WICHE

MHEC

NEBHE

SREB

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THE SARA SYSTEM

Institutionx 1 state/territory x number of programsx number if clinical placementsx number of students x amount of revenue

REDUCED COSTS TO INSTITUTIONS AND STUDENTS

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THE SARA SYSTEM

REDUCEDCOSTS

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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*

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STATE INSTITUTIONAL FEES

http://www.nc-sara.org/state-fees-regarding-sara

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$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

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SARA PRINCIPLES

Consistency across the Nation*Regional compacts working together coordinated by National Council for SARA (NC-SARA)

Voluntary for states and institutions

Non-redundant and efficient

Trust between the states

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SARA KEY ELEMENTSConsistent standards and procedures for

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LARA (Michigan Department of Licensing and

Regulatory Affairs)

Approves institutions for participation in SARA

Hears and resolves appropriate student complaintsthat rise above the institutional process

Investigates alleged institutional misbehavior

Informs institutions about changes to SARA and best practices under SARA

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ROLES OF DIFFERENT SARA LAYERS

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

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ROLES OF DIFFERENT SARA LAYERS

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

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ROLES OF DIFFERENT SARA LAYERS

Spend less money on compliance efforts (personnel, legal advice, fees, site visits, etc.)

Offer more courses and programs to more students in more states and territories

Better risk management

Especially helpful with on-line programs and clinical internships

HOW SCHOOLS BENEFIT FROM SARA PARTICIPATION

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Institutions apply using the same application in every state

HOW DOES A SCHOOL APPLY TO PARTICIPATE IN SARA?

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https://www.michigan.gov/documents/lara/PPS030_7-15_495241_7.pdf

THE MICHIGAN APPLICATION IS ALL ON-LINE

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PART III: Nationwide SARA Update

STATES THAT HAVE ALREADY JOINED SARA = 29

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Pending Applications 2015

• Maine • Rhode Island• Texas• Georgia• Maryland• Mississippi

Maybe in 2015

• South Carolina• Alabama

http://www.nc-sara.org/content/sara-state-status

SARA UPDATES FOR STATES

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ALMOST 500 INSTITUTIONS HAVE JOINEDhttp://nc-sara.org/states/mi

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National accreditation http://www2.ed.gov/admins/finaid/accred/accreditation_pg6.html

Financial responsibility 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

DOD http://www.militaryonesource.mil/voluntary-education?content_id=274604

HELPFUL LINKS

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NC-SARA Website www.nc-sara.org

Regional Education Compacts:MHEC – http://www.mhec.org/sara

NEBHE – http://www.nebhe.org/programs-overview/sara/overview/

SREB – www.sreb.org/sara

WICHE – http://www.wiche.edu/sara

MORE INFORMATION

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REGIONAL SARA CONTACTSSandra 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

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