States expect institutions to obtain necessary approvals (if any) before offering activities in their state.  

Compliance with Federal state authorization regulations is intended to tie institutional compliance to state laws and regulations to participate in Title IV, HEA programs. 

Final Federal Regulations for State Authorization were published in the Federal Register on Nov 1, 2019.  These regulations became effective on July 1, 2020. and replace the 2016 Federal Regulations for State Authorization.  Additional regulation for professional licensure was published in the Federal Register on October 31, 2023 and became effective on July 1, 2024.

• 34 CFR 600.2 - Definitions (State authorization reciprocity agreement)
• 34 CFR 600.9(c) - State Authorization (for distance education)
• 34 CFR 668.14(b)(32)(ii) - Certification that professional licensure programs satisfy state educational requirements.(New 2024)
• 34 CFR 668.43(a)(5)(v) - Institutional Information (public notifications for programs leading to professional licensure or certification for all modalities) (revised 2024)
• 34 CFR 668.43(c) - Institutional Information (individualized notifications for programs leading to professional licensure or certification for all modalities)

You may review the History Webpage: Timeline for Federal Regulation for State Authorization of Distance Education.

It would be prudent to review the Definition section of Title 34 Part 600 for clarification of terms such as Accredited, Branch Campus, and State.

Other Federal regulations related to the out-of-state activities of an institution are currently effective and must be observed.

USED releases 2019 FINAL Federal Regulations for State Authorization and Accreditation - Effective Date: July 1, 2020. 

Professional Licensure Regulations - Certification Procedures and Disclosures Revised - Effective Date:  July 1, 2024.

There is no substitute for a staff member reading each of the regulations to review the specific language of the regulation.

Summary:

34 CFR 600.2 –State authorization reciprocity agreement

• Does not regulate the entity we know as SARA.
• Definition:  An agreement between two or more States that authorizes an institution located and legally authorized in a State covered by the agreement to provide postsecondary education through distance education or correspondence courses to students located in other States covered by the agreement and cannot prohibit any member State of the agreement from enforcing its own general-purpose State laws and regulations outside of the State authorization of distance education. 

34 CFR 600.9(c) – State Authorization of distance education

• The institution must meet any of that State's requirements for it to be legally offering postsecondary distance education or correspondence courses in that State. 
• If an institution offers postsecondary education through distance education or correspondence courses in a State that participates in a State authorization reciprocity agreement, and the institution is covered by such agreement, the institution is considered to meet State requirements for it to be legally offering postsecondary distance education or correspondence courses in that State, subject to any limitations in that agreement and to any additional requirements of that State not relating to State authorization of distance education.
• Determination of student location based upon institution’s processes and procedures. 
• Document the process for determination to share with the Secretary of the Department of Education upon request.  (Time of enrollment in the program & upon formal receipt of information from the student from the institutions processes and procedures.)

34 CFR 668.43(a)(5)(v) – General notifications for programs leading to professional licensure or certification (revised 2024)

• New notification added to the list of notifications required under 34 CFR 668.43 Institutional Information in order to participate in Title IV HEA programs.
• Describes the scenario for required notifications for programs leading to professional licensure or certification regardless of modality.
• Describes how to provide general notifications for professional licensure programs. (where the institution determines that the curriculum meets state educational requirements and curriculum does not meet state educational requirements)

34 CFR 668.43(c) – Direct notifications for programs leading to professional licensure

• New notification added to the list of notifications required under 34 CFR 668.43 Institutional Information, in order to participate in Title IV HEA programs.
• To prospective students if the curriculum does not meet state requirements or the institution has made no determination where the prospective student is located prior to enrollment in the program.  (Prior to enrollment = Prior to financial commitment)
• To enrolled student within 14 calendars days of the institution making a determination that the curriculum does not meet state requirements where the student is located.

34 CFR 668.14(b)(32)(ii)(New 2024) - Certification that professional licensure programs satisfy state educational requirements. (additional regulations released October 31, 2024 became effective July 1, 2024)

• Institutions must satisfy state educational requirements so that an student who enrolls in the program can sit for a licensure exam or gain employment in a state where a license is required for employment.
• Satisfy state educational requirements where the institution is located.
• Satisfy state educational requirements where a student enrolled in distance education, on or after July 1, 2024, is located at initial time of enrollment.
  • or where the student attests they intend to seek employment (and the institution satisfies state educational requirements in that state.)

Regulations are developed by the Department of Education to implement the aspects of the Higher Education Act, which is Federal law.  The process to create the language for the regulations is through the Negotiated Rulemaking Process ("Neg Reg").  The purpose is to bring together key stakeholders affected by the issues along with representatives of the Department to negotiate the aspects of  proposed regulations.  The key stakeholders become the Negotiated Rulemaking Committee.  This committee meets to discuss the issues and ultimately votes on a regulatory package for those issues.  The committee must vote 100% in favor of the language of the entire regulatory package, which is called consensus.  If the committee does not reach consensus for the entire regulatory package, the Department may write the regulations.

The rulemaking process is directed through the Administrative Procedure Act (APA).  Strict adherence is required.  Failure to follow the APA requirements could cause a regulation to be challenged and possibly vacated by Federal courts for failing to follow APA process.

The Higher Education Act (HEA) was original enacted in 1965 "to strengthen the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary and higher education".  The HEA is the foundation for which the Federal regulations are developed to manage higher education.  The HEA was last reauthorized in 2008. That reauthorization was set to expire in 2013, but was extended to allow legislators more time to work on a new version.  The timeline for passage of a Reauthorization of the HEA is uncertain at this time.