S T A T E   O F   N E W   Y O R K
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                                  8240

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 14, 2015
                               ___________

Introduced  by  M.  of  A.  GLICK  -- (at request of the State Education
  Department) -- read once and  referred  to  the  Committee  on  Higher
  Education

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
DISTANCE-EDUCATION COURSES AND PROGRAMS AND TO FACILITATE MORE OFFERINGS
OF DISTANCE EDUCATION COURSES TO THE STUDENTS IN THEIR STATE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10780-03-5
              

A. 8240                             2

                               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
BOARD OR WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION, OR  ANOTHER
SARA INTERSTATE REGIONAL COMPACT FOR THE MID-ATLANTIC STATES.

A. 8240                             3

  (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;
  (VII) MAINTAIN WRITTEN DOCUMENTATION OF:
  (A) ALL FORMAL COMPLAINTS RECEIVED;

A. 8240                             4

  (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  4. The state finance law is amended by adding a new section 97-llll
to read as follows:

A. 8240                             5

  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.