SB159

By Senator Glover

ENROLLED, An Act,

To amend Sections 16-5-10 and 16-46-3, Code of Alabama 1975, as amended by Act 2014-245 and Act 2014-330 of the 2014 Regular Session, relating to exemptions from state approval for entities participating in reciprocity agreements; to clarify the exemption for regional accrediting authorities and accredited degree granting entities; and to establish the State Reciprocity Committee and provide for the duties and powers of the reciprocity committee.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Sections 16-5-10 and 16-46-3, Code of Alabama 1975, as amended by Act 2014-245 and Act 2014-330 of the 2014 Regular Session, are amended to read as follows:

§16-5-10.

"The commission shall exercise the following powers and duties in addition to those otherwise specified in this article:

"(1) To cause to be made such surveys and evaluations of higher education as are believed necessary for the purpose of providing appropriate information to carry out its powers and duties.

"(2) To recommend to the Legislature of Alabama the enactment of such legislation as it deems necessary or desirable to insure the highest quality of higher education in this state taking into consideration the orderly development and maintenance of the state system of public higher education to meet trends in population and the change in social and technical requirements of the economy.

"(3) To advise and counsel the Governor, at his request, regarding any area of, or matter pertaining to, postsecondary education.

"(4) To establish definitions of a junior college, a community college, a technical college or institute, a senior college, a university and university system; provided, that nothing herein shall be construed as authorizing the commission to establish or create any university system, nor to alter any university system presently existing.

"(5) To develop and publish criteria which may be used by the Legislature as a basis:

"a. For changing the classification of any public institution of higher education; and

"b. For determining the need for new public junior colleges, public senior colleges, universities or university systems.

"Any proposed statute which would establish an additional institution of higher education may be submitted, either prior to introduction or by the standing committee considering same to the commission for its opinion as to the need for the state therefore, and the commission shall report its findings to the Governor and the Legislature.

"(6) To cause studies to be made for the purpose of classifying and prescribing the role and scope for each public institution of higher education in Alabama and to recommend such changes in classification or role and scope for such institutions as it deems necessary and which may be agreed to by the governing board of the institution. In making studies and recommendations for the purpose of classifying and prescribing the role and scope of institutions, the commission shall do so without regard for race and traditional role of the institution, provided, however, that in the absence of compelling reasons to the contrary the commission shall give priority to institutions having seniority in years of operation in the service area. When making recommendations for the elimination of duplication of educationally unnecessary programs, absent justifiable reasons to the contrary, the commission shall recommend the replacement of such programs and/or services with programs and/or services that will strengthen and enhance the role of the institution affected.

"(7) To hear applications from the institutions for changes in classification or role and scope and to recommend to the Legislature for clarification such classifications in role or scope which may not be agreed to by the governing board of any institution.

"(8) To make continuing studies, on its own initiative or upon the request of the Governor or the Legislature, of the financial needs of public higher education and issue such reports to the Governor and the Legislature as may result from its studies.

"(9) To submit to the Governor and the Legislature on or before the first day in January of each year a written report covering the activities of the commission and the state of higher education in Alabama. The report shall include:

"a. Statements of the nature, progress or result of any studies undertaken or completed during the past fiscal year;

"b. Comments upon major developments, trends, new policies, budgets and financial considerations which, in the judgment of the commission will be useful in planning a sound program of higher education; and

"c. Recommendations respecting postsecondary education in this state as may be appropriate.

"(10) To make rules and regulations for its meetings, procedures and execution of the powers and duties delegated to it by this article.

"(11) To encourage the establishment and development of formal consortia for the advancement of higher education comprised of institutions of higher education in the state.

"(12) To conduct a program of public information in order to inform citizens of the state of matters of importance to higher education in Alabama.

"(13) To serve as the state agency for the administration of those titles of the Higher Education Act of 1965 (Public Law 89-329) as amended for those programs requiring a single state agency for which the commission qualifies, unless otherwise designated by executive order.

"(14) To authorize and regulate instructional programs or units offered by non-Alabama institutions of postsecondary education in the State of Alabama. No institution of postsecondary education located outside of Alabama may offer units or programs of instruction within Alabama without prior approval of the commission, except for those accredited units or programs approved by regional accrediting authorities or accredited degree granting entities located in states participating in reciprocity agreements entered into by the Governor or the commission. The commission under its rule-making authority shall establish criteria for the approval of such institutions and programs. The commission shall promulgate a schedule of programmatic review fees, commensurate with the cost of commission activities related to programmatic review, not exceeding fifteen thousand dollars ($15,000) per institution. Any programmatic review fee collected from a non-Alabama institution of postsecondary education shall be deposited in the State Treasury to the credit of the commission and funds collected are hereby appropriated to the commission.

"(15) The powers and duties of the commission shall apply equally to all postsecondary institutions regardless of any authority that may be, or has been, conferred upon them by the constitution or by statutes.

§16-46-3.

"(a) This chapter shall not apply to any school offering instruction in grades K-12, or any combination thereof, including any person in regard to the operation of such K-12 school.

"(b) This chapter shall not apply to any of the following private postsecondary institutions, including any person in regard to the operation of such private postsecondary institution:

"(1) Schools operated on a nonprofit basis offering only courses or programs of study which do not lead to an associate or baccalaureate degree and are limited in nature to the performance of or preparation for the ministry of any established church, denomination, or religion.

"(2) Courses conducted by employers exclusively for their employees and courses conducted by labor unions exclusively for their members.

"(3) Schools, colleges, and universities principally operated and supported by the State of Alabama or its political subdivisions.

"(4) Seminars and short courses sponsored or offered by professional business, trade, or religious organizations primarily for benefit of members thereof, or similar public programs of training where the majority of the students have at least half of their tuition and enrollment fees paid by their employers, provided that evidence is supplied supporting this exemption continuously over the preceding five years.

"(5) Any private postsecondary institution conducting resident courses whose principal base of operation is within the State of Alabama which has been in continuous operation for 20 years or more as of July 1, 2004, and that held accreditation as of that date by an accrediting agency recognized by the United States Department of Education.

"(6) Programs of study regulated by other state public boards, commissions, or agencies requiring school licensure or performance bonding, or both, except where the appropriate regulatory agency requires a license under this chapter.

"(7) Any private postsecondary institution conducting resident courses that has been in operation within Alabama for at least five years as of July 1, 2004, and that is accredited by an accrediting agency recognized by the United States Department of Education shall be accorded the following provisions: Upon proof of such accreditation, such private postsecondary schools shall be issued a license and representative permits after required fees are paid to the Alabama Department of Postsecondary Education. The requisite accreditation shall satisfy the minimum standards of this chapter.

"(8) Any out-of-state nonprofit entity that offers online programs of instruction, is approved by a regional accreditation authority, and is located in degree granting entity accredited by an accrediting body recognized by the United States Department of Education and located in and authorized by a state participating in a regional or national authorization reciprocity agreement approved by that the State of Alabama has joined with the approval of the Governor or the Alabama Commission on Higher Education, and operating under the terms of that agreement.

"(c) Any private postsecondary institution exempted in this section shall retain the exempted status as long as the conditions of exemption remain valid. An accredited private postsecondary institution or program of study not elsewhere exempted whose accreditation is withdrawn, suspended, or revoked shall forfeit its exemption status until the grant of accreditation is restored. Due process of the accrediting agency shall be allowed prior to withdrawal of an exemption. Private postsecondary institutions having accreditation withheld as a result of transfer of ownership shall be allowed a period of time to regain the grant in accordance with the appropriate accrediting agency regulations.

"(d) An exemption pursuant to this section shall not be construed to constitute approval or endorsement by the State of Alabama for any purpose.

"(e) Exempted private postsecondary institutions may voluntarily request to be licensed without surety as described in Sections 16-46-5 and 16-46-6.

"(f) Private postsecondary institutions which cease operations shall place the student academic, attendance, and financial aid records in the office of the appropriate institutional administrator where a repository shall exist to safeguard and to make available these records to authorized persons upon request as follows:

"(1) Private postsecondary institutions which merge, consolidate, or undergo change of ownership shall deposit with the continuing school.

"(2) Private postsecondary institutions which are a part of a system, organization, franchise, or a ministry of a local church or a group of churches shall deposit with the administrative office thereof if such is to remain in operation.

"(3) Other private postsecondary institutions not elsewhere designated shall deposit with the Department of Postsecondary Education."

Section 2. (a) There is created the State Reciprocity Committee. The membership of the committee shall consist of the following members:

(1) The Chancellor of the University of Alabama System, or his or her designee.

(2) The President of Auburn University, or his or her designee.

(3) The President of the University of South Alabama, or his or her designee.

(4) The Chancellor of the Department of Postsecondary Education, or his or her designee.

(5) A president of a historically black college or university, or his or her designee, appointed by the Governor.

(b) At the organizational meeting of the committee, and annually thereafter, the membership of the reciprocity committee shall select the chair from among the membership of the reciprocity committee. The reciprocity committee shall make recommendations to the Governor on all issues, decisions, appointments, and designations necessary for the State of Alabama to participate and comply with reciprocity agreements.

(c) The reciprocity committee shall appoint and direct a state coordinator in doing all of the following:

(1) Negotiating reciprocal agreements with other states regarding the offering of educational services of Alabama institutions of higher education in other states.

(2) Negotiating reciprocal agreements allowing institutions of higher education in other states to offer educational services in this state.

(3) Coordinating Alabama's compliance with efforts relating to reciprocity agreements.

(d) The coordinator shall act under the direction of the reciprocity committee in doing all of the following:

(1) Conferring with other institutions of higher education within the State of Alabama, including independent colleges and universities, and the Alabama Commission on Higher Education.

(2) Promptly informing the reciprocity committee of all developments.

(3) Coordinating and leading all activities, action, and efforts necessary for the State of Alabama to participate and comply with reciprocity agreements.

(e) The coordinator shall have no power to bind the State of Alabama to any agreements, as that power is reserved for the Governor.

(f)(1) The reciprocity committee shall select a portal agency. For the purposes of this section, a portal agency is an entity designated and managed by the reciprocity committee to serve as the point of contact for questions, complaints, and other communications from State Authorization Reciprocity Agreements (SARA) and other reciprocity agreements entered into by the State of Alabama that seek to establish comparable national standards for interstate offerings of postsecondary distance-education courses and programs.

(2) The reciprocity committee shall manage the activities of the portal agency through the coordinator and the portal agency shall make reports at least quarterly or more frequently upon the request of the coordinator. The quarterly reports shall include, at a minimum, data requested by the reciprocity committee and the coordinator.

(3) Commencing on the effective date of the act adding this subdivision, every five years the reciprocity committee shall compile the data necessary to evaluate the effectiveness of SARA and other reciprocity agreements. Based on the outcomes of the evaluation, the committee may recommend to the Governor that the state withdraw from any reciprocity agreement that is counter to the best interests of Alabama students or the state for reasons including, but not limited to, overly high enrollment in institutions with low completion rates and high student loan default rates.

(g)(1) The reciprocity committee may annually establish fees to be collected by the portal agency from each Alabama SARA institution based on full-time enrollment and commensurate with the costs of administering SARA and other reciprocity agreements entered into by the State of Alabama that seek to establish comparable national standards for interstate offerings of postsecondary distance-education courses and programs, except that such fees shall be limited as follows: Initial application and subsequent annual renewal fees which, by dollar amount, may not exceed the respective individual institution fees assessed by the National Council for SARA, or its successor entity. In the event the National Council for SARA determines to waive or terminate the assessment of fees for participating institutions, then the fee applicable to participating Alabama SARA institutions shall be the same as those fees assessed in the prior fiscal year.

(2) All fees collected pursuant to this subsection shall be deposited and credited to a dedicated Reciprocity Fund, which is hereby created in the State Treasury, for use by the portal agency as designated by the reciprocity committee. All monies deposited into the Reciprocity Fund are hereby appropriated to the portal agency for the fiscal year ending September 30, 2015, and for the fiscal year ending September 30, 2016.

(3) The fees to be collected by the reciprocity committee shall accompany an application for voluntary participation in SARA and the annual renewal thereof.

(h) If the institution of a member of the reciprocity committee is under investigation for a SARA complaint, the member shall recuse himself or herself from any discussions or proceedings relating to that investigation.

Section 3. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Education

Colleges and Universities

Schools

Postsecondary Education

Code Amended