S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5607--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              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:

  Section 1. This act shall be known and may be cited as the "interstate
reciprocity agreement for post-secondary distance education programs".
  S  2.  Legislative  intent.  Subject  to  an  appropriation, it is the
purpose of this act to authorize the state education department to enter
into interstate reciprocity  agreements  and/or  regional  compacts  for
postsecondary distance education courses and programs.
  S  3.  The  education  law is amended by adding a new section 210-c to
read as follows:
  S 210-C. INTERSTATE RECIPROCITY AGREEMENT FOR POST-SECONDARY  DISTANCE
EDUCATION PROGRAMS.
    INTERSTATE RECIPROCITY AGREEMENT FOR THE POST-SECONDARY DISTANCE
                           EDUCATION PROGRAMS
                                ARTICLE I
                      PURPOSE, FINDINGS, AND POLICY
  THE STATES PARTY TO AN INTERSTATE AGREEMENT DESIRE BY COMMON ACTION TO
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

DISTANCE-EDUCATION COURSES AND PROGRAMS AND TO FACILITATE MORE OFFERINGS
OF DISTANCE EDUCATION COURSES TO THE STUDENTS IN THEIR STATE.
                               ARTICLE II
                               DEFINITIONS
  AS USED IN THIS SECTION AND ANY AGREEMENTS AND CONTRACTS MADE PURSUANT
TO IT, UNLESS THE CONTEXT CLEARLY STATES OTHERWISE:
  (A)"ACCREDITED" SHALL MEAN HOLDING INSTITUTIONAL ACCREDITATION BY NAME
AS  A  U.S.-BASED  INSTITUTION FROM AN ACCREDITOR RECOGNIZED BY THE U.S.
DEPARTMENT OF EDUCATION.
  (B)"APPROVE" OR "APPROVAL" IN THE CONTEXT OF AN INSTITUTIONAL APPLICA-
TION TO OPERATE UNDER  THE  STATE  AUTHORIZATION  RECIPROCITY  AGREEMENT
(SARA)  MEANS:  A  WRITTEN STATEMENT BY A HOME STATE THAT AN INSTITUTION
MEETS THE STANDARDS REQUIRED BY SARA AND IS ELIGIBLE  TO  OPERATE  UNDER
SARA.
  (C)"COMPLAINT"  MEANS: A FORMAL ASSERTION IN WRITING THAT THE TERMS OF
THIS AGREEMENT, OR OF LAWS, STANDARDS  OR  REGULATIONS  INCORPORATED  BY
THIS  AGREEMENT,  ARE  BEING  VIOLATED  BY A PERSON, INSTITUTION, STATE,
AGENCY OR OTHER ORGANIZATION OR ENTITY OPERATING UNDER THE TERMS OF THIS
AGREEMENT.
  (D) "COUNCIL" MEANS: THE NATIONAL COUNCIL FOR SARA.
  (E)"C-RAC GUIDELINES" AND OTHER USES OF "C-RAC" REFERS TO THE INTERRE-
GIONAL GUIDELINES FOR THE  EVALUATION  OF  DISTANCE  EDUCATION  PROGRAMS
(ONLINE LEARNING) FOR BEST PRACTICES IN POSTSECONDARY DISTANCE EDUCATION
ADOPTED BY THE COUNCIL OF REGIONAL ACCREDITING COMMISSIONS (C-RAC).
  (F)  "DISTANCE  EDUCATION"  MEANS, FOR PURPOSES OF AN INTERSTATE RECI-
PROCITY AGREEMENT UNDER THIS SECTION: INSTRUCTION OFFERED BY  ANY  MEANS
WHERE THE STUDENT AND FACULTY MEMBER ARE IN SEPARATE PHYSICAL LOCATIONS.
IT  INCLUDES, BUT IS NOT LIMITED TO, ONLINE, INTERACTIVE VIDEO OR CORRE-
SPONDENCE COURSES OR PROGRAMS. IT DOES NOT INCLUDE  INTRASTATE  DISTANCE
EDUCATION ACTIVITY.
  (G) "HOME STATE" MEANS: A MEMBER STATE WHERE THE INSTITUTION HOLDS ITS
LEGAL  DOMICILE. TO OPERATE UNDER SARA AN INSTITUTION MUST HAVE A SINGLE
HOME STATE.
  (H) "INSTITUTION" MEANS: A DEGREE-GRANTING POSTSECONDARY ENTITY.
  (I) "LEGAL DOMICILE" OF AN INSTITUTION FOR PURPOSES OF ELIGIBILITY  IN
AN INTERSTATE AGREEMENT MEANS THE STATE IN WHICH THE INSTITUTION'S PRIN-
CIPAL  CAMPUS  HOLDS ITS INSTITUTIONAL ACCREDITATION AND, IF APPLICABLE,
ITS FEDERAL OFFICE OF POSTSECONDARY EDUCATION IDENTIFIER (OPEID) NUMBER.
IN THE EVENT THAT THE OPEID NUMBER IS ASSIGNED TO A CAMPUS THAT IS IN  A
DIFFERENT  STATE  THAN THE PRINCIPAL ACCREDITED CAMPUS, THE SARA COMMIT-
TEES OF THE AFFECTED REGIONAL COMPACTS SHALL DETERMINE WHICH IS THE HOME
STATE FOR PURPOSES OF SARA.
  (J) "MEMBER STATE" MEANS: ANY STATE, DISTRICT OR  TERRITORY  THAT  HAS
JOINED SARA.
  (K)  "PHYSICAL PRESENCE" MEANS: A MEASURE BY WHICH A STATE DEFINES THE
STATUS OF AN EDUCATIONAL INSTITUTION'S PRESENCE WITHIN  THE  STATE.  THE
DISTANCE EDUCATION ACTIVITIES OF AN EDUCATIONAL INSTITUTION WITH A PHYS-
ICAL PRESENCE WITHIN THE STATE ARE NOT COVERED UNDER AN INTERSTATE RECI-
PROCITY  AGREEMENT UNDER THIS ACT AND INSTEAD MUST MEET THE REQUIREMENTS
OF THE STATE.
  (L) "PORTAL AGENCY" MEANS: THE SINGLE AGENCY DESIGNATED BY  THE  STATE
TO  SERVE  AS  THE INTERSTATE POINT OF CONTACT FOR QUESTIONS, COMPLAINTS
AND OTHER COMMUNICATIONS RELATED TO THE INTERSTATE  COMPACT  AND/OR  ANY
REGIONAL COMPACT.
  (M) "REGIONAL COMPACT" MEANS ONE OF NEW ENGLAND BOARD OF HIGHER EDUCA-
TION,  MIDWESTERN  HIGHER EDUCATION COMPACT, SOUTHERN REGIONAL EDUCATION

S. 5607--A                          3

BOARD OR WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION, OR  ANOTHER
SARA INTERSTATE REGIONAL COMPACT FOR THE MID-ATLANTIC STATES.
  (N)  "STATE  AUTHORIZATION RECIPROCITY AGREEMENTS" OR "SARA" MEANS: AN
AGREEMENT AMONG MEMBER  STATES,  DISTRICTS  AND  U.S.  TERRITORIES  THAT
ESTABLISHES  COMPARABLE  NATIONAL  STANDARDS  FOR INTERSTATE OFFERING OF
POST-SECONDARY DISTANCE-EDUCATION COURSES AND PROGRAMS.
                               ARTICLE III
 INTERSTATE RECIPROCITY AGREEMENTS FOR POSTSECONDARY DISTANCE EDUCATION
  (A) THE COMMISSIONER SHALL HAVE THE AUTHORITY ON BEHALF OF NEW YORK TO
ENTER INTO SARA AND/OR ANY REGIONAL COMPACTS ON  BEHALF  OF  THIS  STATE
WITH  ONE OR MORE OTHER STATES TO PROVIDE FOR THE RECIPROCITY OF POSTSE-
CONDARY DISTANCE EDUCATION AND TO CARRY OUT ALL ACTIVITIES NECESSARY  TO
CARRY OUT SUCH FUNCTION.
  (B)  UPON  ENTRANCE INTO SARA AND/OR ANY REGIONAL COMPACT, THE DEPART-
MENT SHALL:
  (I) BE DESIGNATED AS THE PORTAL AGENCY AND SHALL  BE  RESPONSIBLE  FOR
THE  ADMINISTRATIVE  AND FUNCTIONAL RESPONSIBILITIES OF PARTICIPATION IN
SARA. THE DEPARTMENT SHALL NOT BE RESPONSIBLE FOR ALL  OVERSIGHT  ACTIV-
ITIES OF PROVIDERS IN THE STATE, BUT SHALL BE THE PORTAL FOR THE STATE;
  (II)  CONSIDER  APPLICATIONS  FROM DEGREE-GRANTING INSTITUTIONS ON THE
SAME BASIS AND EITHER:
  (A) APPROVE ANY INSTITUTIONS THAT MEET  THE  STANDARDS  OF  SARA,  AND
AGREE  TO THE PROCESS AND COMMITMENTS OF SARA WITHOUT DIFFERENTIATING BY
SECTOR;
  (B) DISAPPROVE ANY INSTITUTION THAT DOES NOT  MEET  THE  STANDARDS  OF
SARA, OR DOES NOT AGREE TO THE PROCESS AND COMMITMENTS OF SARA; OR
  (C)  MAY  APPROVE AN INSTITUTION APPLYING FOR INITIAL PARTICIPATION IN
SARA TO PARTICIPATE ON A PROVISIONAL STATUS  IN  ANY  OF  THE  FOLLOWING
CIRCUMSTANCES:
  (I)  THE  INSTITUTION IS ON PROBATIONARY STATUS OR THE EQUIVALENT WITH
ITS INSTITUTIONAL ACCREDITING BODY;
  (II) THE INSTITUTION IS USING A LETTER OF CREDIT OR IS  UNDER  A  CASH
MANAGEMENT AGREEMENT BY THE U.S. DEPARTMENT OF EDUCATION;
  (III)  THE INSTITUTION IS THE SUBJECT OF A PUBLICLY ANNOUNCED INVESTI-
GATION BY A GOVERNMENT AGENCY, AND THE INVESTIGATION IS RELATED  TO  THE
INSTITUTION'S  ACADEMIC  QUALITY,  FINANCIAL  STABILITY  OR  STUDENT  OR
CONSUMER PROTECTION; OR
  (IV) THE INSTITUTION IS THE SUBJECT OF A CURRENT INVESTIGATION BY  ITS
HOME  STATE  RELATED  TO  THE  INSTITUTION'S ACADEMIC QUALITY, FINANCIAL
STABILITY OR STUDENT OR CONSUMER PROTECTION.
  (III) PRESCRIBE STATE PROCESSES FOR CONSUMER PROTECTION AND COMPLAINTS
IN REGULATIONS OF THE COMMISSIONER, AS REQUIRED BY SARA;
  (IV) OPERATE UNDER THE PROCESSES, PROCEDURES AND  GUIDELINES  REQUIRED
BY  SARA,  INCLUDING  THE INTERREGIONAL GUIDELINES FOR THE EVALUATION OF
DISTANCE EDUCATION DEVELOPED BY  THE  COUNCIL  OF  REGIONAL  ACCREDITING
COMMISSIONERS, IF REQUIRED BY SARA;
  (V)  SERVE  AS  THE  DEFAULT  FORUM FOR ANY COMPLAINT FILED AGAINST AN
INSTITUTION APPROVED BY THE STATE TO PARTICIPATE IN THE  STATE  AUTHORI-
ZATION RECIPROCITY AGREEMENT AND THE DEPARTMENT SHALL BE RESPONSIBLE FOR
COORDINATING  ANY  SUCH EFFORTS AND SHALL HAVE THE AUTHORITY TO INVESTI-
GATE AND RESOLVE COMPLAINTS THAT ORIGINATE OUTSIDE  OF  THE  STATE.  ALL
OTHER  STATE  AGENCIES  AND  GOVERNING BOARDS OF SUCH INSTITUTIONS SHALL
ASSIST AS NECESSARY IN SUCH INVESTIGATIONS AND REPORT AS NEEDED  TO  THE
DEPARTMENT;
  (VI) IMPOSE AS A PENALTY REFUNDS OR OTHER CORRECTIVE ACTION TO RESOLVE
COMPLAINTS INVOLVING RESIDENTS OF OTHER STATES;

S. 5607--A                          4

  (VII) MAINTAIN WRITTEN DOCUMENTATION OF:
  (A) ALL FORMAL COMPLAINTS RECEIVED;
  (B)  COMPLAINT  NOTIFICATIONS PROVIDED TO INSTITUTIONS AND ACCREDITING
AGENCIES;
  (C)  ACTIONS  TAKEN  THAT  ARE  COMMENSURATE  WITH  THE  SEVERITY   OF
VIOLATIONS; AND
  (D) COMPLAINT RESOLUTIONS.
  (VIII)  REPORT COMPLAINTS AND CONCERNS TO THE INSTITUTIONS ABOUT WHICH
THE COMPLIANT IS LODGED, THE HOME STATE PORTAL  AGENCY  RESPONSIBLE  FOR
THE INSTITUTION, AND, IF APPROPRIATE, ANY ACCREDITING BODIES; AND
  (IX)  IMPOSE  AN  ANNUAL  FEE  ON ANY INSTITUTION PARTICIPATING IN ANY
INTERSTATE AGREEMENT, IN AN AMOUNT PRESCRIBED  BY  THE  COMMISSIONER  IN
REGULATIONS  WHICH  SHALL  BE  CONSISTENT  WITH ANY FEES REQUIRED BY THE
INTERSTATE AGREEMENT AND ANY FEES REQUIRED FOR THE STATE  TO  ADMINISTER
SARA.  ANY INSTITUTION THAT IS REMOVED FROM ELIGIBILITY FROM SARA DURING
THE PERIOD OF APPROVAL RECEIVES NO FEE REFUND; AND
  (X) REPORT ANY INFORMATION REQUIRED BY THE NATIONAL COUNCIL FOR SARA.
                               ARTICLE IV
             INSTITUTIONAL ELIGIBILITY FOR ADMISSION TO SARA
  AN INSTITUTION APPLYING TO OPERATE PURSUANT TO SARA UNDER THIS SECTION
SHALL:
  (A) HAVE ITS PRINCIPAL CAMPUS OR CENTRAL ADMINISTRATIVE UNIT DOMICILED
IN A STATE THAT HAS JOINED SARA AND BE AUTHORIZED  TO  OPERATE  IN  THAT
STATE.  ONLY DISTANCE EDUCATION CONTENT ORIGINATING IN THE UNITED STATES
OR A U.S. TERRITORY IS ELIGIBLE TO BE OFFERED UNDER THE AGREEMENT;
  (B) BE A U.S. DEGREE-GRANTING INSTITUTION THAT  IS  ACCREDITED  BY  AN
ACCREDITING BODY RECOGNIZED BY THE U.S. SECRETARY OF EDUCATION;
  (C)  AGREE  TO  BE BOUND BY ANY STANDARDS, PROCESSES AND/OR GUIDELINES
REQUIRED BY SARA, INCLUDING THE INTERREGIONAL GUIDELINES FOR THE  EVALU-
ATION OF DISTANCE EDUCATION DEVELOPED BY THE COUNCIL OF REGIONAL ACCRED-
ITING COMMISSIONERS, IF REQUIRED BY SARA;
  (D)  AGREE  TO REMAIN RESPONSIBLE FOR COMPLIANCE WITH THE REQUIREMENTS
OF SARA AND APPLICABLE  LAWS,  REGARDLESS  OF  WHETHER  THE  INSTITUTION
ENGAGES  IN  OPERATIONS  UNDER  SARA  ITSELF,  OR  THROUGH A THIRD-PARTY
PROVIDER;
  (E) AGREE TO NOTIFY THE EDUCATION DEPARTMENT OF ANY  NEGATIVE  CHANGES
TO ITS ACCREDITATION STATUS;
  (F)  AGREE  TO PROVIDE ANY DATA REQUESTED BY THE EDUCATION DEPARTMENT,
TO THE EXTENT PERMITTED BY APPLICABLE LAW, AND ASSIST THE DEPARTMENT  IN
RESOLVING ANY COMPLAINTS ARISING FROM ITS STUDENTS AND TO ABIDE BY DECI-
SIONS OF THE DEPARTMENT, IN ORDER FOR THE EDUCATION DEPARTMENT TO EFFEC-
TIVELY MONITOR ANY ACTIVITIES UNDER THE AGREEMENT;
  (G) REPORT ANY INFORMATION REQUIRED BY SARA AND/OR THIS SECTION.
                                ARTICLE V
                     APPROVED AND ACCEPTED PROGRAMS
  NOTHING  IN  THIS  SECTION  SHALL  BE CONSTRUED TO REPEAL OR OTHERWISE
MODIFY ANY LAW OR REGULATION OF THIS STATE RELATING TO THE  APPROVAL  OF
ANY OTHER EDUCATIONAL PROGRAMS NOT COVERED BY THIS SECTION.
                               ARTICLE VI
                          EFFECT AND WITHDRAWAL
  1.  THIS SECTION SHALL BECOME EFFECTIVE UPON THIS STATE'S EXECUTION OF
SARA AND/OR REGIONAL COMPACT FOR DISTANCE EDUCATION.
  2. THE DURATION OF ANY REGIONAL COMPACT  AND/OR  INTERSTATE  AGREEMENT
AND  THE  METHODS  AND CONDITIONS OF WITHDRAWAL THEREFROM SHALL BE THOSE
SPECIFIED IN THEIR TERMS.

S. 5607--A                          5

  S 4. The state finance law is amended by adding a new section  97-llll
to read as follows:
  S  97-LLLL.  INTERSTATE RECIPROCITY FOR POST-SECONDARY DISTANCE EDUCA-
TION ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE
STATE COMPTROLLER AND  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  AN
ACCOUNT  OF  THE  MISCELLANEOUS  SPECIAL REVENUE FUND TO BE KNOWN AS THE
INTERSTATE RECIPROCITY FOR POST-SECONDARY DISTANCE EDUCATION ACCOUNT.
  2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE  CONTRARY,
THE  STATE  COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO RECEIVE FOR
DEPOSIT TO THE CREDIT OF THE INTERSTATE RECIPROCITY  FOR  POST-SECONDARY
DISTANCE EDUCATION ACCOUNT, ANY APPROPRIATION AND/OR FEES ESTABLISHED IN
THE  REGULATIONS  OF  THE  COMMISSIONER  OF  EDUCATION  FOR SERVICES AND
EXPENSES INCURRED BY THE EDUCATION DEPARTMENT IN CONDUCTING  EVALUATIONS
OF  POST-SECONDARY  DISTANCE  EDUCATION CONDUCTED PURSUANT TO THE INTER-
STATE RECIPROCITY AGREEMENT AND PROCESSING ANY COMPLAINTS RELATED THERE-
TO AND/OR FOR ADMINISTERING  AND/OR  PARTICIPATING  IN  SUCH  INTERSTATE
AGREEMENT.
  3.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
THE STATE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO  RECEIVE  FOR
DEPOSIT  TO  THE CREDIT OF THE INTERSTATE RECIPROCITY FOR POST-SECONDARY
DISTANCE EDUCATION ACCOUNT, ANY APPROPRIATION AND/OR FEES ESTABLISHED IN
THE REGULATIONS OF  THE  COMMISSIONER  OF  EDUCATION  FOR  SERVICES  AND
EXPENSES INCURRED BY THE EDUCATION DEPARTMENT IN CONDUCTING EVALUATIONS,
PROCESSING  COMPLAINTS  OR  OTHER  ADMINISTRATIVE  FUNCTIONS  RELATED TO
POST-SECONDARY  DISTANCE  EDUCATION  CONDUCTED  BY  THE  DEPARTMENT  FOR
OUT-OF-STATE  INSTITUTIONS  SEEKING APPROVAL TO OFFER DISTANCE EDUCATION
IN NEW YORK STATE THAT DO NOT PARTICIPATE IN THE INTERSTATE  RECIPROCITY
AGREEMENT.  THIS  FEE  MAY  ALSO  INCLUDE  AN APPLICATION AND PROCESSING
CHARGE FOR THOSE INSTITUTIONS SEEKING TO ESTABLISH A  PHYSICAL  PRESENCE
IN NEW YORK STATE.
  S  5.  Section  212  of  the  education law is amended by adding a new
subdivision 7 to read as follows:
  7. 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 PURSUANT TO SECTION TWO HUNDRED
TEN-C OF THIS CHAPTER.
  S 6. This act shall take effect immediately; provided, however:
  (a) that the addition, amendment and/or repeal of any  rule  or  regu-
lation  necessary  for  the  implementation of this act on its effective
date is authorized to be made and completed on or before such  effective
date; and
  (b)  that  the  commissioner of education shall notify the legislative
bill drafting commission upon the occurrence of the state's execution of
SARA and/or a regional compact for distance education, as  provided  for
in  section  three of this act in order that the commission may maintain
an accurate and timely effective data base of the official text  of  the
laws  of  the  state  of  New  York  in  furtherance of effectuating the
provisions of section 44 of the legislative law and section 70-b of  the
public officers law.