State Authorization Reciprocity Agreements.
Distance education programs use technology to deliver instructions to students who are separated from their instructor. State Authorization Reciprocity Agreements (SARAs) were established in 2013 by the United States Department of Education (Department) and institutions to streamline regulations around distance education programs. State Authorization Reciprocity Agreements are agreements among member states, districts, and territories to offer distance education courses and programs. State Authorization Reciprocity Agreements are overseen by the National Council for State Authorization Reciprocity Agreements (NC-SARA) and four regional education compacts. The NC-SARA is composed of states, regional state compacts, representatives of accrediting agencies, and other stakeholders, including institutions. Washington is part of the Western Interstate Commission for Higher Education region.
Members of SARA are states, not institutions or students. Any degree-granting institution based in the United States that holds proper authorization and accreditation is eligible to apply to its home state to participate in SARA if the home state is a SARA member. Each state has a State Portal Entity that is the lead agency in a state and is responsible for processing SARA applications from institutions within the state. The Washington Student Achievement Council (Council) is the State Portal Entity for Washington.
Minimum Standards for Institutions in Washington.
The Council is required to adopt minimum standards for degree-granting institutions operating in Washington. The rules must address granting of degrees, quality of education, unfair business practices, financial stability, and other necessary measures to protect Washington citizens against substandard, fraudulent, and deceptive practices. Institutions operating in Washington must be accredited, have applied for accreditation, or have been granted a waiver or exemption by the Council. The Council may not delegate its authority to oversee and enforce compliance with minimum standards to any other state regardless of whether the institution is authorized by another state.
The Council may conduct investigations, issue subpoenas, take evidence, and take other steps, including conducting site inspections, as part of its duties to protect Washington citizens. The Council is authorized to negotiate and enter into interstate reciprocity agreements, including SARAs, with other state or multistate entities. The Council may enter into agreements with degree-granting institutions based in Washington that are otherwise exempt from adhering to the minimum standards for degree granting institutions set by the Council, for the purposes of ensuring consistent consumer protection in interstate distance delivery of higher education. Participating in an interstate reciprocity agreement does not delegate authority for compliance with minimum standards or authority to respond to student complaints.
Surety Bonds.
The Council may require any degree-granting institution in Washington to have an approved surety bond, or other security in lieu of a bond, on file with the Council. In lieu of a bond, an institution may deposit a cash deposit or other negotiable security with the Council as determined by the Council. If a complaint is filed against an institution, the Council may file a claim against the surety and settle claims against the surety. If the surety refuses to pay the demand, the Council may bring an action on the bond on behalf of claimants. If an action is commenced on the bond, the Council may require a new bond to be filed. Obligations and remedies relating to surety bonds also apply to securities filed in lieu of bonds.
Complaints.
A person claiming loss of tuition or fees as a result of unfair business practices may file a complaint with the Council. The complaint must provide the alleged violation and contain all required information. An authorized staff member of the Council or the Attorney General may also bring a claim. The Council must investigate all complaints and may attempt to bring about a settlement and hold a hearing. If the Council determines that an institution is engaged in any unfair business practice, the Council must serve an order to the institution that demands the institution stop the unfair business practices. The Council may also impose penalties and order full or partial restitution for any loss suffered by the complainant due to the unfair business practices.
Federal Regulations Regarding State Authorization Reciprocity Agreements.
In early January 2024 the United States Department of Education (Department) released an Issue Paper regarding complaint systems and governance in SARAs. In the Issue Paper, the Department stated concerns that existing state authorization regulations allowing states to exempt certain institutions from state approval and licensure requirements do not ensure sufficient state oversight of the institutions. The Department also stated concerns that states may have limited complaint processes that rely on other entities without adequate monitoring by the applicable state, including some states deferring all or nearly all of their oversight responsibilities to other states. In the Issue Paper, the Department proposes the following regulation changes:
Public Records Act.
The Public Records Act (PRA) requires state and local agencies to make their written records available to the public for inspection and copying upon request unless the information fits into a specific exemption in the PRA or as otherwise provided in law. Financial disclosures provided to the Council by degree-granting private vocational schools are not subject to public disclosure under the PRA.
An exemption from accreditation granted by the Council may not suspend, supersede, or reduce student consumer protections or the authority of the Council to investigate and enforce standards for operation.
Interstate agreements negotiated by the Council:
Financial disclosures are exempt under the PRA to the extent that they are exempt from disclosure by the federal government and are not relied on as part of federal or state determinations relating to:
Requirements for surety bonds established by the Council may not be reduced based on whether an institution is headquartered or incorporated outside of Washington. Authorization agreements with other states must provide for at least the amount and security for surety applicable to an institution in Washington.
Complaints may also be filed with the Council for loss or injury due to misrepresentation of educational programs, accreditation, support for or statistics relating to job placement, or measurements of student debts and earnings.
Institutions that offer online distance learning and all private, not-for-profit institutions with physical campuses in Washington must prominently disclose students' rights under state law and how students may contact the Council on all websites, electronic enrollment and registration applications, and promotional materials.
If a Washington resident student enrolled at an out-of-state institution that is authorized by Washington files a complaint, the Council may not delegate or agree to defer investigation or resolution of that complaint to the out-of-state institution or the state.
Language providing that participating in an interstate reciprocity agreement does not delegate authority for compliance with minimum standards or authority to respond to student complaints is removed.
(In support) Many protections for students in state law have been prompted by scandals at private institutions. Legislation in the past has prohibited institutions from misrepresentation and require them to use verified information about placement rates and student indebtedness and to have surety. State Authorization Reciprocity Agreements were just beginning to be discussed and developed when Washington student consumer protections were enacted. They are useful agreements, but SARAs should not supplant other minimum standards. Since the adoption of SARAs, student rights in Washington have been supplanted. Students in Washington attending Washington institutions are given notice that they should file a complaint with the Council, but students living in Washington attending an online out-of-state institution do not get the same notification. The NC-SARA has stated that Washington does not have jurisdiction over an out-of-state institution serving Washington students. This bill cures that. The bill provides that if there is an interstate reciprocity agreement with Washington, Washington protections apply. The NC-SARA's policy regarding out-of-state schools undermines Washington's policies. The United States Department of Education has echoed Washington's concerns.
(Opposed) None.
(Other) Other institutions should be held to the same standards as Washington institutions. It is unclear if this bill will cause NC-SARA to prohibit Washington from continuing to be part of SARAs. The Council is the authorization entity. Existing state consumer protections enable the Council to protect students affected by bad conduct at out-of-state institutions. The Council, Oregon, and California asked for this to be spelled out in SARAs rules, but that request was defeated. The Council can participate in SARAs that take advantage of good reciprocal agreements without disrupting student protections. The federal regulations coming out should be examined.
(In support) Representative Gerry Pollet, prime sponsor.