Bill Text: MI SB0221 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Higher education; education programs; participation in interstate compacts or agreements concerning distance education; regulate. Creates new act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-06-11 - Assigned Pa 0045'15 With Immediate Effect [SB0221 Detail]
Download: Michigan-2015-SB0221-Introduced.html
SENATE BILL No. 221
March 18, 2015, Introduced by Senator SCHUITMAKER and referred to the Committee on Regulatory Reform.
A bill to provide for the reciprocal exchange of distance
education between this state and other states or a higher education
compact; to prescribe the powers and duties of certain state
agencies and officials; to provide for collection of fees; to
designate the state agency for negotiating distance education
agreements; to establish a complaint process for students enrolled
in distance education programs at participating colleges and
universities; to establish an authorization and approval process
for out-of-state distance education providers and participating
colleges and universities in this state; and to provide penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"higher education authorization and distance education reciprocal
exchange act".
Sec. 2. As used in this act:
(a) "Accredited" means approved by an accrediting body
recognized by the United States Department of Education.
(b) "Authorization" means either of the following:
(i) An authorization from the department under section 4(1) to
participate in a reciprocal agreement.
(ii) An authorization from the department under section 4(3) to
provide distance education to residents of this state issued to a
college or university that is located in another state and is not a
party to a reciprocal agreement.
(c) "College or university" means a degree or certificate
granting public or private college or university, junior college,
or community college.
(d) "Department" means the department of licensing and
regulatory affairs.
(e) "Distance education" means education that uses 1 or more
technologies to deliver instruction to students who are separated
from the instructor, and to support regular and substantive
interaction between the students and the instructor, either
synchronously or asynchronously. As used in this subdivision,
"technologies" may include any of the following:
(i) The Internet.
(ii) One-way and 2-way transmissions through open broadcast,
closed circuit, cable, microwave, broadband lines, fiber optics,
satellite, or wireless communications devices.
(iii) Audio conferencing.
(iv) Video cassettes, DVDs, and CD-ROMs, if the cassettes,
DVDs, or CD-ROMs are used in a course in conjunction with any of
the technologies described in subparagraph (i), (ii), or (iii).
(f) "Participating college" means a college or university that
is located in this state; elects to participate in a reciprocal
agreement under this act; and meets the requirements of section 4.
(g) "Reciprocal agreement" means an agreement between this
state and a higher education compact or 1 or more other states that
allows participating colleges to provide distance education to
residents of this state and other member states under this act.
Sec. 3. (1) The department may on behalf of this state enter
into reciprocal agreements with public educational agencies in
other states or a higher education compact.
(2) The department may promulgate rules it considers necessary
to implement, administer, and enforce this act. The department
shall promulgate these rules under the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 4. (1) The department shall authorize a college or
university that is located in this state to participate in a
reciprocal agreement to which the department is a party if the
college or university meets all of the following:
(a) Enters into an agreement with the department to subject
itself to section 5 and the other requirements of this act.
(b) Is an accredited college or university.
(c) Submits an application for authorization to participate in
the reciprocal agreement, on a form and with accompanying
documentation as prescribed by the department, that provides the
name of the college or university, its business address in this
state, the name of an individual designated for contact, proof of
accreditation, proof of financial responsibility in the form of
proof of certification, under 34 CFR 668.13, of compliance with the
financial responsibility standards of 34 CFR, part 668, subpart L,
and any other relevant information requested by the department.
(d) Pays an application fee of $2,000.00 and an initial
authorization fee of $2,000.00.
(2) An authorization under subsection (1) to participate in a
reciprocal agreement expires on December 31. A participating
college may renew an authorization for 1 or more additional
calendar years by submitting an application for renewal on a form
prescribed by the department, and paying an annual renewal fee of
$2,000.00, by December 1 of each year.
(3) A college or university that is located outside of this
state and is not a party to a reciprocal agreement to provide
distance education to residents of this state may elect to obtain
authorization from the department to provide that distance
education. The department shall provide that authorization if the
college or university meets all of the following:
(a) Enters into an agreement with the department to subject
itself to section 5 and the other requirements of this act.
(b) Submits an application for authorization to provide
distance education to residents of this state, on a form and with
accompanying documentation as prescribed by the department, that
provides the name of the college or university, its business
address, the name of an individual designated for contact, proof of
accreditation, proof of financial responsibility in the form of
proof of certification, under 34 CFR 668.13, of compliance with the
financial responsibility standards of 34 CFR, part 668, subpart L,
and any other relevant information requested by the department.
(c) Pays an application fee of $5,000.00 and an initial
authorization fee of $5,000.00.
(4) An authorization under subsection (3) to provide distance
education to residents of this state expires on December 31. A
college or university may renew an authorization obtained under
subsection (3) for 1 or more additional calendar years by
submitting an application for renewal on a form prescribed by the
department, and paying an annual renewal fee of $5,000.00, by
December 1 of each year.
(5) The department may adjust the fees authorized under this
section every year by an amount determined by the state treasurer
to reflect the cumulative annual percentage change in the Detroit
consumer price index in the preceding year and rounded to the
nearest dollar. As used in this subsection, "Detroit consumer price
index" means the most comprehensive index of consumer prices
available for the Detroit area by the Bureau of Labor Statistics of
the United States Department of Labor.
(6) Fees collected under this act shall be used solely for
administrative expenses incurred under this act and are not
refundable.
Sec. 5. (1) Each participating college and each out-of-state
college or university that holds an authorization from the
department under section 4(3) shall assure that each student
enrolled in a distance education program at that participating
college or out-of-state college or university receives the services
for which he or she has paid, or receives reasonable financial
compensation for those services he or she has not received if a
course in which he or she is enrolled is terminated before the
expected completion date of that course. This assurance shall be in
writing and may include tuition assurance funds, surety bonds,
teach-out provisions, or other practices considered sufficient to
protect consumers by the department. The department may promulgate
rules for the administration of this subsection, including the
development of forms it considers appropriate.
(2) Each participating college and each out-of-state college
or university that holds an authorization from the department under
section 4(3) shall provide for the protection of student records
for students enrolled in a distance education program at that
participating college or out-of-state college or university and
shall comply with any rules promulgated by the department
concerning the protection of those student records.
(3) Each participating college and each out-of-state college
or university that holds an authorization from the department under
section 4(3) shall adopt and publish a written policy that allows
students enrolled in a distance education program at that
participating college or out-of-state college or university to file
a complaint with the department for any violation of this act or
rules promulgated under this act. The department shall establish a
complaint process for those students.
(4) Each participating college and each out-of-state college
or university that holds an authorization from the department under
section 4(3) shall meet the standards of practice contained in the
interregional guidelines for the evaluation of distance education,
published by the Council of Regional Accrediting Commissions in
July of 2009, which are incorporated by reference.
Sec. 6. (1) After notice and opportunity for hearing under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, the department shall do 1 or more of the following if it
determines that a participating college that holds an authorization
from the department under section 4(1), or an out-of-state college
or university that holds an authorization from the department under
section 4(3), has violated this act, a rule promulgated under this
act, or an order issued under this act:
(a) Place a limitation on the authorization.
(b) Suspend the authorization.
(c) Deny an authorization or renewal of the authorization.
(d) Revoke the authorization.
(e) Assess an administrative fine under subsection (2).
(f) Order restitution to an aggrieved student who participated
or is participating in a distance education program.
(g) Impose any other sanction established by the department by
rule.
(2) The department may assess an administrative fine of not
more than $1,000.00, plus the department's actual costs of the
investigation, for a violation of this act or rules promulgated
under this act. However, the department may not assess
administrative fines under this subsection against a college or
university that in the aggregate are more than $5,000.00 for
multiple violations of this act or rules promulgated under this act
that arise from the same transaction.
