This rule was published in the September 1, 2016, issue (Vol. 2016, No. 17) of the Utah State Bulletin.
Regents (Board Of), Administration
State Authorization Reciprocity Agreement Rule
Notice of Proposed Rule
DAR File No.: 40658
Filed: 08/11/2016 10:10:51 AM
Purpose of the rule or reason for the change:
This rule establishes application procedures, regulations, and policy for higher education institutions that wish to join the State Authorization Reciprocity Agreement.
Summary of the rule or change:
This rule establishes definitions, application procedures, surety requirements, eligibility requirements, and complaint procedures for higher education institutions that wish to join the State Authorization Reciprocity Agreements. The reciprocity agreement allows participating member institutions to avoid licensing and costs of compliance from each state in which it provides educational activities.
Statutory or constitutional authorization for this rule:
Anticipated cost or savings to:
the state budget:
This program is self-funding through fees, depending on the size of the institution that wishes to apply. The reciprocity agreement is entirely voluntary for public and private institutions of higher education. Fees collected cover the administrative costs only.
This has no impact on local government. The reciprocity agreement is only available for accredited institutions of higher education (both private and public), which, in my understanding, do not qualify as local governments. Local governments do not participate in or are impacted by an institution's voluntary participation in these agreements.
Presently, there are approximately 18 for-profit colleges operating in Utah. Some of them may qualify as small businesses. They all have the same requirement to comply with Utah's consumer protection laws but are not otherwise governed by the state system of higher education. This rule will not change that. However, small private institutions of higher education that wish to engage in online education in other states may join the State Authorization Reciprocity Agreement. To do that, they will have to also comply with the consumer protection laws of those states as well, which could incur the cost of licensing and/or compliance. Those costs are difficult to quantify for purposes of this rule because they would depend on the size the of the college and the state in which the college wishes to engage in educational activities. Those same colleges, however, can voluntarily join in the reciprocity agreement, which will allow the institution to avoid the costs associated with compliance in other states. Those that voluntarily choose to join the consortium will incur an annual fee. The fee will be based on the size of the institution but will likely be $2,000 for small institutions.
persons other than small businesses, businesses, or local governmental entities:
There are no other impacts. Institutions of higher education that wish to participate must meet the same consumer protection requirements as they normally would when engaging in educational activities in Utah or any other state.
Compliance costs for affected persons:
Participation in the reciprocity agreement is voluntary. Institutions of higher education who wish to participate must meet the same consumer protection requirements as they normally would when engaging in educational activities in Utah or any other state. Therefore, there is no compliance cost associated with this rule.
Comments by the department head on the fiscal impact the rule may have on businesses:
Because participation is voluntary, public and private institutions may choose not to join the consortium and thereby avoid the application fees. However, all institutions bear the cost of licensing and compliance with consumer protection laws in each state they provide educational activities. Entities that enter into the SARA agreements will likely save costs because they do not need to go through the cost and administrative burden of licensing in each individual state they provide educational activities, including online education.
Dave Buhler, Commissioner
The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:
Regents (Board Of)
BOARD OF REGENTS BUILDING, THE GATEWAY
60 SOUTH 400 WEST
SALT LAKE CITY, UT 84101-1284
Direct questions regarding this rule to:
- Geoff Landward at the above address, by phone at 801-321-7136, by FAX at , or by Internet E-mail at firstname.lastname@example.org
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
This rule may become effective on:
Dave Buhler, Commissioner of Higher Education
R765. Regents (Board of),
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2016/b20160901.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.