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October 14, 2015Michigan Workshop on the Midwestern State Authorization Reciprocity Agreement (M-SARA)University Club, Michigan State University 1
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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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ACKNOWLEDGEMENTSYour Michigan representative on the M-SARA Regional Steering Committee is
Shellie L. HautDirector 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 PrinciplesBasic 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
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State Authorization: Basic PrinciplesDespite 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 ClosuresPredatory LendingWorthless degreesPoor instructionOther abuses….
SO THE USDE PUBLISHED ITS
PROGRAM INTERGRITY RULES ON OCTOBER 29, 2010
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wcet.wiche.edu
What is State Authorization
of Distance Education?
The Fundamentals14
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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” 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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wcet.wiche.edu
Fundamental #2: The Vacated RegulationChapter 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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wcet.wiche.edu
Fundamental #3: The State RegulationsState 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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wcet.wiche.edu
WICHE Cooperative for Educational Technologies (WCET) www. http://wcet.wiche.edu/
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wcet.wiche.edu
State Authorization Network (SAN)www. http://wcet.wiche.edu/advance/state‐authorization‐network
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wcet.wiche.edu
State Higher Education Executive Officers Association (SHEEO) www.sheeo.org/sheeo_surveys/
Example:
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wcet.wiche.edu
Fundamental #4: The ResourcesSecondary 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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wcet.wiche.edu
Contact Information
Cheryl DowdDirector, State Authorization NetworkWCET ‐WICHE Cooperative for Educational Technologies3035 Center Green DriveBoulder, CO 80301303‐541‐[email protected]
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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 VisitSurety BondTuition Recovery Fund
Some agencies require a fee for renewal.
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State Regulations
What are the risks of non-compliance?
Call from RegulatorCease and Desist LetterPublic AccountabilityStudent ability to work or be licensed in that
state…Potential LawsuitSpecial 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 SYSTEMInstitution (>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
STUDENTS31
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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
REDUCED
COSTS
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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 FEEShttp://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 complaints
that 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
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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
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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
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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
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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
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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-SARANEBHE45 Temple PlaceBoston, MA 02111617.533.9524 [email protected] www.nebhe.org
Mary A. Larson, M.Ed.Director, S-SARASREB592 10th Street N.W.Atlanta, GA 30318-5776404.875.9211 ext. 219 [email protected]
John Lopez, Ph.D.Director, W-SARAWICHE3005 Center Green Drive, Suite 130Boulder, CO [email protected]
Jennifer L. Parks, M.A.Director, M-SARAMHEC105 Fifth Avenue South, Suite 450Minneapolis, MN [email protected]
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