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S05607 Summary:

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S05607 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5607--A
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                      May 19, 2015
                                       ___________
 
        Introduced by Sen. LAVALLE -- (at request of the State Education Depart-
          ment)  --  read  twice  and  ordered  printed,  and when printed to be
          committed  to  the  Committee  on  Higher   Education   --   committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        AN  ACT to amend the education law, in relation to authorizing the state
          education department to enter into interstate  reciprocity  agreements
          and/or   regional   compacts  for  post-secondary  distance  education
          programs and to charge a fee to  participating  in-state  institutions
          and  non-participating  out-of-state  institutions that offer distance
          education; and to amend the state finance law, in relation  to  estab-
          lishing  an  interstate  reciprocity post-secondary distance education
          account
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known and may be cited as the "interstate
     2  reciprocity agreement for post-secondary distance education programs".
     3    §  2.  Legislative  intent.  Subject  to  an  appropriation, it is the
     4  purpose of this act to authorize the state education department to enter
     5  into interstate reciprocity  agreements  and/or  regional  compacts  for
     6  postsecondary distance education courses and programs.
     7    §  3.  The  education  law is amended by adding a new section 210-c to
     8  read as follows:
     9    § 210-c. Interstate reciprocity agreement for post-secondary  distance
    10  education programs.
    11      INTERSTATE RECIPROCITY AGREEMENT FOR THE POST-SECONDARY DISTANCE
    12                             EDUCATION PROGRAMS
    13                                  Article I
    14                        Purpose, findings, and policy
    15    The states party to an interstate agreement desire by common action to
    16  establish   comparable  standards  for  the  offering  of  postsecondary
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10780-02-5
        S. 5607--A                          2
 
     1  distance-education courses and programs and to facilitate more offerings
     2  of distance education courses to the students in their state.
     3                                 Article II
     4                                 Definitions
     5    As used in this section and any agreements and contracts made pursuant
     6  to it, unless the context clearly states otherwise:
     7    (a)"Accredited" shall mean holding institutional accreditation by name
     8  as  a  U.S.-based  institution from an accreditor recognized by the U.S.
     9  Department of Education.
    10    (b)"Approve" or "Approval" in the context of an institutional applica-
    11  tion to operate under  the  state  authorization  reciprocity  agreement
    12  (SARA)  means:  a  written statement by a home state that an institution
    13  meets the standards required by SARA and is eligible  to  operate  under
    14  SARA.
    15    (c)"Complaint"  means: a formal assertion in writing that the terms of
    16  this agreement, or of laws, standards  or  regulations  incorporated  by
    17  this  agreement,  are  being  violated  by a person, institution, state,
    18  agency or other organization or entity operating under the terms of this
    19  agreement.
    20    (d) "Council" means: the National Council for SARA.
    21    (e)"C-RAC guidelines" and other uses of "C-RAC" refers to the Interre-
    22  gional Guidelines for the  Evaluation  of  Distance  Education  Programs
    23  (Online Learning) for best practices in postsecondary distance education
    24  adopted by the Council of Regional Accrediting Commissions (C-RAC).
    25    (f)  "Distance  education"  means, for purposes of an interstate reci-
    26  procity agreement under this section: instruction offered by  any  means
    27  where the student and faculty member are in separate physical locations.
    28  It  includes, but is not limited to, online, interactive video or corre-
    29  spondence courses or programs. It does not include  intrastate  distance
    30  education activity.
    31    (g) "Home state" means: a member state where the institution holds its
    32  legal  domicile. To operate under SARA an institution must have a single
    33  home state.
    34    (h) "Institution" means: a degree-granting postsecondary entity.
    35    (i) "Legal domicile" of an institution for purposes of eligibility  in
    36  an interstate agreement means the state in which the institution's prin-
    37  cipal  campus  holds its institutional accreditation and, if applicable,
    38  its federal Office of Postsecondary Education Identifier (OPEID) number.
    39  In the event that the OPEID number is assigned to a campus that is in  a
    40  different  state  than the principal accredited campus, the SARA commit-
    41  tees of the affected regional compacts shall determine which is the home
    42  state for purposes of SARA.
    43    (j) "Member state" means: any state, district or  territory  that  has
    44  joined SARA.
    45    (k)  "Physical presence" means: a measure by which a state defines the
    46  status of an educational institution's presence within  the  state.  The
    47  distance education activities of an educational institution with a phys-
    48  ical presence within the state are not covered under an interstate reci-
    49  procity  agreement under this Act and instead must meet the requirements
    50  of the state.
    51    (l) "Portal agency" means: the single agency designated by  the  state
    52  to  serve  as  the interstate point of contact for questions, complaints
    53  and other communications related to the interstate  compact  and/or  any
    54  regional compact.
    55    (m) "Regional compact" means one of New England Board of Higher Educa-
    56  tion,  Midwestern  Higher Education Compact, Southern Regional Education
        S. 5607--A                          3
 
     1  Board or Western Interstate Commission for Higher Education, or  another
     2  SARA interstate regional compact for the mid-Atlantic states.
     3    (n)  "State  authorization reciprocity agreements" or "SARA" means: an
     4  agreement among member  states,  districts  and  U.S.  territories  that
     5  establishes  comparable  national  standards  for interstate offering of
     6  post-secondary distance-education courses and programs.
     7                                 Article III
     8   Interstate reciprocity agreements for postsecondary distance education
     9    (a) The commissioner shall have the authority on behalf of New York to
    10  enter into SARA and/or any regional compacts on  behalf  of  this  state
    11  with  one or more other states to provide for the reciprocity of postse-
    12  condary distance education and to carry out all activities necessary  to
    13  carry out such function.
    14    (b)  Upon  entrance into SARA and/or any regional compact, the depart-
    15  ment shall:
    16    (i) be designated as the portal agency and shall  be  responsible  for
    17  the  administrative  and functional responsibilities of participation in
    18  SARA. The department shall not be responsible for all  oversight  activ-
    19  ities of providers in the state, but shall be the portal for the state;
    20    (ii)  consider  applications  from degree-granting institutions on the
    21  same basis and either:
    22    (A) approve any institutions that meet  the  standards  of  SARA,  and
    23  agree  to the process and commitments of SARA without differentiating by
    24  sector;
    25    (B) disapprove any institution that does not  meet  the  standards  of
    26  SARA, or does not agree to the process and commitments of SARA; or
    27    (C)  may  approve an institution applying for initial participation in
    28  SARA to participate on a provisional status  in  any  of  the  following
    29  circumstances:
    30    (I)  the  institution is on probationary status or the equivalent with
    31  its institutional accrediting body;
    32    (II) the institution is using a letter of credit or is  under  a  cash
    33  management agreement by the U.S. Department of Education;
    34    (III)  the institution is the subject of a publicly announced investi-
    35  gation by a government agency, and the investigation is related  to  the
    36  institution's  academic  quality,  financial  stability  or  student  or
    37  consumer protection; or
    38    (IV) the institution is the subject of a current investigation by  its
    39  home  state  related  to  the  institution's academic quality, financial
    40  stability or student or consumer protection.
    41    (iii) prescribe state processes for consumer protection and complaints
    42  in regulations of the commissioner, as required by SARA;
    43    (iv) operate under the processes, procedures and  guidelines  required
    44  by  SARA,  including  the Interregional Guidelines for the Evaluation of
    45  Distance Education developed by  the  Council  of  Regional  Accrediting
    46  Commissioners, if required by SARA;
    47    (v)  serve  as  the  default  forum for any complaint filed against an
    48  institution approved by the state to participate in the  state  authori-
    49  zation reciprocity agreement and the department shall be responsible for
    50  coordinating  any  such efforts and shall have the authority to investi-
    51  gate and resolve complaints that originate outside  of  the  state.  All
    52  other  state  agencies  and  governing boards of such institutions shall
    53  assist as necessary in such investigations and report as needed  to  the
    54  department;
    55    (vi) impose as a penalty refunds or other corrective action to resolve
    56  complaints involving residents of other states;
        S. 5607--A                          4
 
     1    (vii) maintain written documentation of:
     2    (A) all formal complaints received;
     3    (B)  complaint  notifications provided to institutions and accrediting
     4  agencies;
     5    (C)  actions  taken  that  are  commensurate  with  the  severity   of
     6  violations; and
     7    (D) complaint resolutions.
     8    (viii)  report complaints and concerns to the institutions about which
     9  the compliant is lodged, the home state portal  agency  responsible  for
    10  the institution, and, if appropriate, any accrediting bodies; and
    11    (ix)  impose  an  annual  fee  on any institution participating in any
    12  interstate agreement, in an amount prescribed  by  the  commissioner  in
    13  regulations  which  shall  be  consistent  with any fees required by the
    14  interstate agreement and any fees required for the state  to  administer
    15  SARA.  Any institution that is removed from eligibility from SARA during
    16  the period of approval receives no fee refund; and
    17    (x) report any information required by the National Council for SARA.
    18                                 Article IV
    19               Institutional eligibility for admission to SARA
    20    An institution applying to operate pursuant to SARA under this section
    21  shall:
    22    (a) have its principal campus or central administrative unit domiciled
    23  in a state that has joined SARA and be authorized  to  operate  in  that
    24  state.  Only distance education content originating in the United States
    25  or a U.S. territory is eligible to be offered under the agreement;
    26    (b) be a U.S. degree-granting institution that  is  accredited  by  an
    27  accrediting body recognized by the U.S. Secretary of Education;
    28    (c)  agree  to  be bound by any standards, processes and/or guidelines
    29  required by SARA, including the Interregional Guidelines for the  Evalu-
    30  ation of Distance Education developed by the Council of Regional Accred-
    31  iting Commissioners, if required by SARA;
    32    (d)  agree  to remain responsible for compliance with the requirements
    33  of SARA and applicable  laws,  regardless  of  whether  the  institution
    34  engages  in  operations  under  SARA  itself,  or  through a third-party
    35  provider;
    36    (e) agree to notify the education department of any  negative  changes
    37  to its accreditation status;
    38    (f)  agree  to provide any data requested by the education department,
    39  to the extent permitted by applicable law, and assist the department  in
    40  resolving any complaints arising from its students and to abide by deci-
    41  sions of the department, in order for the education department to effec-
    42  tively monitor any activities under the agreement;
    43    (g) report any information required by SARA and/or this section.
    44                                  Article V
    45                       Approved and accepted programs
    46    Nothing  in  this  section  shall  be construed to repeal or otherwise
    47  modify any law or regulation of this state relating to the  approval  of
    48  any other educational programs not covered by this section.
    49                                 Article VI
    50                            Effect and withdrawal
    51    1.  This section shall become effective upon this state's execution of
    52  SARA and/or regional compact for distance education.
    53    2. The duration of any regional compact  and/or  interstate  agreement
    54  and  the  methods  and conditions of withdrawal therefrom shall be those
    55  specified in their terms.
        S. 5607--A                          5
 
     1    § 4. The state finance law is amended by adding a new section  97-llll
     2  to read as follows:
     3    §  97-llll.  Interstate reciprocity for post-secondary distance educa-
     4  tion account. 1. There is hereby established in the joint custody of the
     5  state comptroller and  the  commissioner  of  taxation  and  finance  an
     6  account  of  the  miscellaneous  special revenue fund to be known as the
     7  interstate reciprocity for post-secondary distance education account.
     8    2. Notwithstanding any other law, rule or regulation to the  contrary,
     9  the  state  comptroller is hereby authorized and directed to receive for
    10  deposit to the credit of the interstate reciprocity  for  post-secondary
    11  distance education account, any appropriation and/or fees established in
    12  the  regulations  of  the  commissioner  of  education  for services and
    13  expenses incurred by the education department in conducting  evaluations
    14  of  post-secondary  distance  education conducted pursuant to the inter-
    15  state reciprocity agreement and processing any complaints related there-
    16  to and/or for administering  and/or  participating  in  such  interstate
    17  agreement.
    18    3.  Notwithstanding any other law, rule or regulation to the contrary,
    19  the state comptroller is hereby authorized and directed to  receive  for
    20  deposit  to  the credit of the interstate reciprocity for post-secondary
    21  distance education account, any appropriation and/or fees established in
    22  the regulations of  the  commissioner  of  education  for  services  and
    23  expenses incurred by the education department in conducting evaluations,
    24  processing complaints or other administrative functions related to post-
    25  secondary  distance  education  conducted  by the department for out-of-
    26  state institutions seeking approval to offer distance education  in  New
    27  York  state that do not participate in the interstate reciprocity agree-
    28  ment. This fee may also include an application and processing charge for
    29  those institutions seeking to establish a physical presence in New  York
    30  state.
    31    §  5.  Section  212  of  the  education law is amended by adding a new
    32  subdivision 7 to read as follows:
    33    7. For services and expenses incurred by the department in  conducting
    34  evaluations,  processing  complaints  or performing other administrative
    35  functions related to the review  of  post-secondary  distance  education
    36  conducted   by  out-of-state  institutions  seeking  approval  to  offer
    37  distance education to students in New York state who do not  participate
    38  in  an  interstate reciprocity agreement pursuant to section two hundred
    39  ten-c of this chapter.
    40    § 6. This act shall take effect immediately; provided, however:
    41    (a) that the addition, amendment and/or repeal of any  rule  or  regu-
    42  lation  necessary  for  the  implementation of this act on its effective
    43  date is authorized to be made and completed on or before such  effective
    44  date; and
    45    (b)  that  the  commissioner of education shall notify the legislative
    46  bill drafting commission upon the occurrence of the state's execution of
    47  SARA and/or a regional compact for distance education, as  provided  for
    48  in  section  three of this act in order that the commission may maintain
    49  an accurate and timely effective data base of the official text  of  the
    50  laws  of  the  state  of  New  York  in  furtherance of effectuating the
    51  provisions of section 44 of the legislative law and section 70-b of  the
    52  public officers law.