Relates to authorizing the state education department to enter into interstate reciprocity agreements and/or regional compacts for post-secondary distance education programs

Summary of provisions

Section 1. Refers to the title of the bill as the "Interstate Reciprocity Agreement for Post-Secondary Distance Education Programs".

Section 2. Sets forth the legislative intent.

Section 3. Adds a new section 210-c to the education law to establish the terms of the Interstate Reciprocity Agreement for Post-Secondary Distance Education Programs.

Article I of this section sets forth the purpose, findings and policy behind the Interstate Reciprocity Agreement.

Article II defines, for purposes of this bill, the following terms: "accredited" "approve" or "approval", "complaint", "council", "C-RAC guidelines", "distance education", "home state", "institution", "legal domicile", "member state", "physical presence", "portal agency", "regional compact" and "state authorization reciprocity agreements" or "SARA".

Article III authorizes the Commissioner, on behalf of New York State, to enter into the State Authorization Reciprocity Agreement (SARA) and/or any regional compacts on behalf of New York with one or more other states to provide for the reciprocity of post-secondary distance education programs and to carry out all activities necessary to carry out such function. It also establishes the duties and responsibilities of the Department under SARA.

Article IV sets forth the eligibility requirements for institutions seeking admission to SARA

Article V preserves the separate and distinct approval process of other educational programs not approved under SARA.

Article VI defines the terms for withdrawal from SARA.

Section 4 Adds a new state finance law section 97-1111 to establish a separate revenue account to be held in the joint custody of the State Comptroller and the Commissioner of Taxation and Finance to receive any appropriation or fees established necessary for services and expenses incurred by the education department in conducting evaluations, processing complaints or other administrative functions related to post-secondary distance education programs

Section 5. Amends education law section 212 by adding a new subdivision 7 to permit the Department to establish and charge fees for services and expenses incurred by the Department in conducting evaluations, processing complaints or performing other administrative functions related to the review of postsecondary distance education conducted by out-of-state institutions seeking approval to offer distance education to students in New York State who do not participate in SARA pursuant to education law section 210-c

Section 6. Establishes an immediate effective date and authorizes the addition, amendment or promulgation of any regulation necessary to implement this bill to be made and completed on or before such effective date; and requires the Commissioner to notify the legislative bill drafting commission upon the occurrence of the State's execution of SARA and/or a regional compact for distance education, so the Commission may maintain an accurate and timely effective database of the official text of those laws in accordance with the public officers law and the legislative law.

Justification

This bill provides the Department with the necessary statutory authority to allow New York institutions of higher education (IHEs) to participate in an interstate reciprocity agreement for postsecondary distance education. This legislation would provide a mechanism for New York IHEs to offer distance education programs to residents of participating states.

Over the past several years, the widespread availability of digital and internet connected technologies has created greater opportunities for institutions of higher education IHEs to provide programs of study to students through distance education. The opportunity to offer programs of study through distance education has opened up a new marketplace for IHEs who can potentially enroll students who physically reside in places other than where an IHE is located, including other state.

Additionally, maintaining competitive stature in the national marketplace for distance education is of critical importance for New York State's colleges and universities. The declining population, particularly upstate and decreases in the number of students projected to graduate from high school over the next several years are forcing IHEs to consider changes in their allocation of resources, recruitment strategies, investment decisions, tuition policies and financial aid as they attempt to maintain their enrollment and remain competitive. One strategy for maintaining or increasing enrollment is the development of a new course offerings that may be delivered through distance education to in-state and out-of-state residents., However, the approval by the Board of Regents and the Department of a New York

State IHE to offer distance education degree programs in-state does not extend its authority to offer online programs to students residing in other state. Because authorization requirements vary from state to state, new challenges have emerged for IHEs in terms of gaining the requisite state approvals to offer distance education to students across state lines. For example, some states may require full and detailed program approv al and review processes for out-of-state IHEs seeking to offer distance education to its residents. Other states may additionally require monetary fees from out-of-state IHEs for program proposal review.

As is the case in New York State, other states require no specific state approval if the IHE is not establishing a physical presence within the state. Navigating these separate and varied approval processes can be time consuming, cumbersome and costly for New York State IHEs.

This legislation would address the challenges of interstate authorization of distance education by authorizing the Commissioner to enter into SARA or any regional compact on behalf of the State with one or more other states to provide for the reciprocity of postsecondary distance education and to carry out all activities necessary to carry out that function. Furthermore, the eligibility of IHEs to participate in such reciprocal agreements is contingent upon state membership. Therefore, this legislation is necessary to permit the expansion of postsecondary distance education programs.

The bill further permits the Department to charge any necessary fees for services and expenses incurred by the Department in conducting evaluations, processing complaints or performing other administrative functions related to the review of post-secondary distance education conducted by out-of-state institutions seeking approval to offer distance education to students in New York State who do not participate in an interstate reciprocity agreement. This additional revenue will allow the Department to obtain the staff necessary to effectively evaluate, approve and oversee these distance education programs. Without this additional staff, the Department will not be able to perform these additional duties necessary to participate in SARA.

Legislative history

New bill.

Fiscal implications

None.

Effective date

This act would take effect immediately; provided that the addition, amendment or promulgation of any regulation necessary to implement this bill be made and completed on or before such effective date.