Michigan-2015-SB0221-Engrossed

SB-0221, As Passed Senate, April 16, 2015

SUBSTITUTE FOR

SENATE BILL NO. 221

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; to provide penalties; and

to repeal acts and parts of acts.

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.

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.

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.

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) 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.

(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.

Sec. 7. This act is repealed effective September 30, 2017.