SARA Michigan Workshop - PowerPoint Presentation

SARAMichigan Workshop on the Midwestern State Authorization Reciprocity Agreement (M-SARA) 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 UniversitiesMichael Beamish, Manager, Postsecondary Education, Michigan Department of Licensing and Regulatory Affairs (LARA)Jenny Parks, Director, Midwestern State Authorization Reciprocity AgreementMany, many other fine folks in Michigan2

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 boardMichael Beamish, Manager, Manager  Licensing and Regulatory AffairsMichael Hansen, President, Michigan Community College Association Robert LeFevre, President, Michigan Independent Colleges & Universities 3

ACKNOWLEDGEMENTSSpecial recognition to MHEC Commissioners and Commissioner Alternates from Michigan: David Eisler , President, Ferris State UniversitySteven Ender, President, Grand Rapids Community CollegeKaren McPhee, Senior Education Policy Advisor, Office of the GovernorTonya Schuitmaker, President Pro Tempore and Chair of Higher Education Appropriations Subcommittee Jim Tedder, Representative 4

ACKNOWLEDGEMENTSYour Michigan representative on the M-SARA Regional Steering Committee is Shellie L. Haut Director Licensure, Regulatory Services & Human Capital Central Michigan University5

THIS MORNING’S PRESENTATION 9:30-11:45 AM Part I: The History of State AuthorizationPart II: What is SARA (State Authorization Reciprocity Agreement) and how might it help my institution? Part III: SARA Nationwide Update 6

PART I: The History of State Authorization7

The History of State AuthorizationThere are two levels of concern: STATE LAW FEDERAL REQUIREMENTS 8

The History of State AuthorizationState authorization laws have always been on the books in most states (branch campuses, correspondence courses, etc.) All this changed around 1992…. 9

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 10

11State 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 PrinciplesDespite these state laws, most institutions did not comply and most states did not look for non-compliance until: DEREGULATION OF FOR-PROFIT SCHOOLSEXPLOSION OF THE INTERNET AND ON-LINE COURSEWORK 12

State Authorization: Basic PrinciplesAND THEN THINGS BECAME A LITTLE MESSY…Institutional Closures Predatory LendingWorthless degreesPoor instructionOther abuses….SO THE USDE PUBLISHED ITS PROGRAM INTERGRITY RULES ON OCTOBER 29, 2010 13

What is State Authorization of Distance Education?The Fundamentals 14

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 15

Fundamental #2: The Vacated Regulation Chapter 34, §600.9(c) – No Current Enforceable Federal Regulation of State Authorization of Distance EducationJuly 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????? 16

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: 17

WICHE Cooperative for Educational Technologies (WCET) www. http://wcet.wiche.edu/ 18

State Authorization Network (SAN)www. http://wcet.wiche.edu/advance/state-authorization-network 19

State Higher Education Executive Officers Association (SHEEO) www.sheeo.org/sheeo_surveys/ Example:20

Fundamental #4: The Resources Secondary and Primary Sources to Guide the Institution to ComplianceState 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 decision 34 CFR 668.43 – Institutional Information 34 CFR 668.71 – Misrepresentation 21

Contact Information Cheryl DowdDirector, State Authorization NetworkWCET - WICHE Cooperative for Educational Technologies3035  Center Green DriveBoulder, CO 80301 303-541-0210 cdowd@wiche.edu 22

What’s in the Future?? The federal regulation is probably coming back!!!It was part of Negotiated Rulemaking in Spring 2014Important topics discussed included: Exemptions Complaint Processes (home state, institutional state, state of residence) Military students Reciprocity Federal Regulation – Chapter 34, §600.9(c) 23

State RegulationsQuestion: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 24

State RegulationsWhat is in the SHEEO Survey? Unit of analysis is AGENCY, not stateOver 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 25

State Regulations: PHYSICAL PRESENCE TRIGGERS Physical Location Administrative OfficePractical Experiences (clinical, student teaching)Required Proctoring Contracted ServicesHaving an Employee in a State Direct Marketing Localized Advertising Employing a third party provider in the state 26

State RegulationsWhat 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. 27

State RegulationsWhat are the risks of non-compliance? Call from RegulatorCease and Desist LetterPublic AccountabilityStudent ability to work or be licensed in that state…Potential Lawsuit Special Case – The Maryland Letter 28

Final ThoughtsWhy 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. 29

PART II: What is SARA (State Authorization Reciprocity Agreement) and how might it help my institution? 30

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 STUDENTS 31

THE SOLUTIONA nation-wide system of reciprocity administered by the four existing regional higher education compacts WICHE MHEC NEBHE SREB 32

THE SARA SYSTEMInstitution x 1 state/territory x number of programsx number if clinical placementsx number of students x amount of revenue REDUCED COSTS TO INSTITUTIONS AND STUDENTS 33

THE SARA SYSTEM REDUCED COSTS 34

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* 35

STATE INSTITUTIONAL FEES http://www.nc-sara.org/state-fees-regarding-sara 36

$2000 initial application fee$2000 annual feeThe first time a school applies, the total cost to a school will be $4000 then $2000/year after that.MICHIGAN STATE FEES 37

SARA PRINCIPLESConsistency 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 38

SARA KEY ELEMENTSConsistent standards and procedures for ACADEMIC INTEGRITY FINANCIAL RESPONSIBILITY“PHYSICAL PRESENCE” DATA collection and sharing CATASTROPHIC CLOSINGS STUDENT COMPLAINT PROCESSES 39

LARA (Michigan Department of Licensing and Regulatory Affairs) Approves institutions for participation in SARAHears 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 40 ROLES OF DIFFERENT SARA LAYERS

MHEC (Midwestern Higher Education Compact) Approves states for membership in SARAInvestigates alleged state/portal agency misbehaviorHears and helps settle disputes between states regarding institutional jurisdictionSupports and informs portal agencies Offers support and training to institutions 41 ROLES OF DIFFERENT SARA LAYERS

NC-SARA (National Council for State Authorization Reciprocity Agreements) Coordinates the efforts of the four regional SARAsDevelops and approves one consistent set of policies and standardsHears and helps settle disputes between regions regarding state and institutional jurisdictionSupports and informs portal agencies Takes institutional fees and distributes them among the regions to optimize SARA work nationally 42 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 territoriesBetter risk management Especially helpful with on-line programs and clinical internshipsHOW SCHOOLS BENEFIT FROM SARA PARTICIPATION 43

Institutions apply using the same application in every state HOW DOES A SCHOOL APPLY TO PARTICIPATE IN SARA? 44

https://www.michigan.gov/documents/lara/PPS030_7-15_495241_7.pdf THE MICHIGAN APPLICATION IS ALL ON-LINE 45

46 PART III: Nationwide SARA Update

STATES THAT HAVE ALREADY JOINED SARA = 29 47 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 48

ALMOST 500 INSTITUTIONS HAVE JOINEDhttp://nc-sara.org/states/mi 49

National accreditation http://www2.ed.gov/admins/finaid/accred/accreditation_pg6.htmlFinancial responsibility http:// studentaid.ed.gov/about/data-center/school/composite-scoresProgram Integrity Rules http://www.gpo.gov/fdsys/pkg/FR-2010-10-29/pdf/2010-27395.pdfDOD http://www.militaryonesource.mil/voluntary-education?content_id=274604HELPFUL LINKS 50

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 51

REGIONAL SARA CONTACTSSandra J. Doran, Esq.​ Director, N-SARANEBHE45 Temple PlaceBoston, 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 52

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