State Authorization 101 June 23, 2015 • The webcast will begin at the top of the hour. • There is no audio being broadcast at this time. • If you need assistance, contact Blackboard Collaborate: 866-388-8674. • An archive of this webcast will be available on the WCET website next week. wcet.wiche.edu 1
State Authorization 101 Welcome. • Megan Raymond, WCET Thank you Blackboard Collaborate! • If you have technical issues: • • Call 866-388-8674 Use the chat box for questions and • information exchange. Archive, PowerPoint, and Resources • available next week. wcet.wiche.edu 2
Questions from the Audience If you have a question during the presentation, please add your questions to the chat box. We will monitor the chat box and have time for Q&A at the end of each section. wcet.wiche.edu 3
STATE A TE AUTHO HORIZATI TION 1 101 WCET STATE AUTHORIZATION NETWORK WEBINAR JUNE 23, 2015 JEANNIE YOCKEY-FINE, COOLEY, LLP SHARYL THOMPSON, HER CONSULTING
STATE A AUTHORIZATION 101 01 What is State Authorization? Common Myths State Law and the Basics SARA State Authorization and Professional Licensure 5
WH WHAT I IS STATE AUTHOR ORIZATION ON? • Formal determination by a state higher education regulatory agency that institutions may conduct certain activities within its borders • Each state has different triggers (activities) requiring authorization • Regulations have been on the books for years • Applicable to all types of institutions • State authorization is sometimes referred to as “approval to operate” 6
HOW D DO INSTITUT UTIONS “ “OPER ERATE” E” IN A STATE? • Apply for and obtain formal authorization (sometimes other terms are used – licensed, registered, certified, etc.) • Apply for and obtain formal exemption • Conduct no trigger activities – do not fall under state’s jurisdiction 7
STATE A AUTHORIZATION • For consumer protection • Involves more than distance education; also includes campus-based institutions’ activities outside the home state; for example • Internships and other field experiences for campus-based programs are regulated in some states • State authorization and common sense are not always well acquainted 8
STATE A AUTHORIZATION • State authorization is an institution-wide compliance matter • Impacts most departments within an institution • Works best with some centralized functions and frequent, open internal communication • Important to develop and foster a culture of compliance 9
CO COMMO MMON M N MYTHS MYTH: “The federal rule was vacated, so I don’t have to worry about state authorization.” FACT : The revocation of the federal rule had no impact on state law. And, there are alternative means for the federal government to cite institutions not complying with state laws. 10
CO COMMO MMON M N MYTHS MYTH: “My institution does not need to be authorized if only one or two students are taking online courses while in a state.” FACT: Only a couple of states have a de minimis test that exempts an institution with a small number of online students. Usually it does not legally matter if you have one or 100 students taking an online course while in the state. 11
CO COMMO MMON M N MYTHS MYTH: “No one ever gets in trouble for failure to obtain authorization in a state.” FACT: Penalties are becoming more common. Most often, these consist of cease-and-desist letters, forced teach-outs, enrollment freezes, and fines. Some states even provide for criminal penalties, although these are rarely applied. 12
CO COMMO MMON M N MYTHS MYTH: “We don’t need to worry about state authorization because reciprocity is right around the corner.” FACT: Even if reciprocity stays on schedule, adoption by some states may be several years away, some of the more difficult states may choose not to join, and it does not cover professional licensure. 13
WHA HAT IS HAPPEN ENING A AT T THE S STATE E LEVEL? EL? • With or without a federal rule, underlying state authorization requirements apply • Federal actions and related publicity have energized many states • State attorneys general have taken up enforcement, mainly against for-profits • State law continues to evolve rapidly 14
WHICH S CH STATES R REQUIRE RE AUTHORI RIZATION? • Most states (approximately ¾) still require some form of “physical presence” to trigger licensure • Other states may not require authorization but institutions with exclusively online programs must obtain a written exemption: • Alaska • Illinois • North Dakota • Utah* *Certain conditions apply 15
PURE RELY O Y ONLINE D DEGRE REE I E INSTITUT UTIONS M MUST BE AUTHO HORIZED ED Where the student is when taking an online course • Minnesota • Alabama • Missouri* • Arkansas • Montana • Indiana • Oregon* • Iowa* • Wisconsin • Kansas* • Wyoming • Maryland *Certain conditions apply 16
PURELY O ONL NLINE NO NON-DEGREE I EE INSTITUTIONS MUS UST B BE A AUTHO HORIZED ED Where the student is when taking an online course • Alabama • Oklahoma • Kansas* • Texas • Montana • Wisconsin • Nebraska • Wyoming • New Hampshire *Certain conditions apply 17
MOST C COMMON T TRIGGER ERS F FOR P R PHYS YSICAL L PRESENCE • Local address/site/phone exchange • Local advertising (direct mail, email, radio, TV, newspaper) • Faculty (where online faculty reside when teaching online course) • Supervised field experiences, internships, practica, student teaching, etc. • On-the-ground recruiting activities 18
CO COMMO MMON T N TRIGGERS 19
WHAT DOE DOES IT TAKE TO O GE GET A AUTHORIZED? • Varies by state • Meet the requirements • Submit an application (simple to complex) • Resource commitment (people, time, money) • Pay fees • Sometimes attend a commission meeting, secure surety bond, or license agents (recruiters) 20
COM OMPONENTS OF OF A STATE A AUTHORIZATION A APPLICATION • Curriculum (how developed, courses, alignments, faculty role) • Faculty credentials, courses taught, experience, etc. • Admission/enrollment policies and processes • Marketing activities – recruiting and advertising • Technology information – student authentication, faculty/student interaction, etc. 21
COM OMPONENTS OF OF A STATE A AUTHORIZATION A APPLICATION • Student services (including library resources) • Academic policies • Organizational structure • Assessment, program reviews • Audited financial statements • Title IV composite score 22
COMPON ONENT NTS O OF A STATE AUTHOR ORIZATION A N APPLICATION ON • Tuition and tuition refund policy • Maintenance of academic records • Catalog • Advertising examples • Faculty hiring process; faculty development; faculty orientation; faculty workload 23
OTHER HER C CONSIDERA ERATIONS • Complaint policy – what it says; where it’s published • Proof of accreditation • Disclosures (Catalog, website, advertising, enrollment agreement) • Licensing individual agents/recruiters • Surety bonds • Professional licensure programs 24
ONGOIN ING STATE A AUTHORIZ IZATIO ION R RESPONSIB IBILIT ITIE IES • Renewal applications • Reporting: tuition, enrollment, employment, professional licensure • Adding new program offerings • Changes in current programs • Discontinuing a program • Change in academic leadership 25
CONSEQUE UENCES F FOR N R NON-COMP MPLIANC NCE • Cease and desist letters or orders • Possible institutional sanctions, fines, etc. • Difficult situations, including lawsuits if a graduate is not eligible to sit for a professional licensure exam • Potential domino effects with accreditors and U.S. Department of Education • Damage to reputation 26
STATE A AUTHOR ORIZATION ON TREND NDS More aggressive regulations in some states California • As of January 2016, will remove exemptions for many institutions Florida • Possible rule changes to require low default rates and increase institutional bonding requirements Massachusetts • New consumer protection regulations for for-profits issued by Attorney General (940 CMR 31.0) 27
HAPPIER ER S STATE AUTHO HORI RIZATION T TREN ENDS Maryland • Now allows up to 5 students in an internship program without triggering full authorization Ohio Board of Regents • Abbreviated application process for institutions offering programs with internships Washington State • Field placement authorization with Student Achievement Council – quicker and less expensive 28
STATE AUTHORIZATION R RECIPROCITY ( (SARA) • SARA establishes a state-level reciprocity process • Voluntary for states and institutions • Acknowledges tradition roles in higher education’s “accountability triad”, federal government, states, and accrediting bodies • Requires states to approve their in-state institutions for SARA participation 29
STATE AUTHORIZATION R RECIPROCITY ( (SARA) • States agree to impose no additional (non-SARA) fees or requirements on institutions from other SARA states • Open to accredited, degree-granting, postsecondary institutions in all sectors • Sets forth a reasonable, uniform set of triggers of physical presence • Preserves state approval and oversight of on-the-ground campuses 30
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