Foundational Principles for Interstate Compliance

State Compliance

Foundational Principles: 

• For purposes of consumer protection and protecting state interests, any activity that occurs in a state other than the home state of the institution, the institution has the responsibility to determine if state laws or regulations apply when the activity occurs in that state.
  • Education related activities (online & face-to-face courses, internships, program approval, etc.)
  • Employment related activities (staff and faculty working from a different state)
• Approvals, registrations, and other requirements may be overseen by a variety of state agencies.
  • Higher Education Agencies – state institutional approval
  • State Licensing Boards – program approval for programs leading to a license or certification.
  • Secretary of State – generally speaking, when activities amount to doing business including employees working from the state.
  • Department of Taxation – addressing employees: state income tax, could include tax related issues tied to providing certain health care benefits.
  • Department of Labor – some states have internship related requirements as well as requirements required workers compensation insurance for employees working in the state.

Federal Compliance

Foundational Principles:

• State authorization/professional licensure related Federal Regulations tie compliance to the institution’s participation in Title IV HEA programs to provide Federal Financial Aid.
• Federal regulations related to out-of-state activity compliance and distance education include:
  • State Authorization - 34 CFR 600.9(c)
  • Definition of state authorization reciprocity agreement – 34 CFR 600.2 Definitions
  • Professional Licensure Notifications - 34 CFR 668.3(a)(5)(v) & 668.43(c)
  • Contact information for filing complaints - 34 CFR 668.43(b)
  • Misrepresentation – Scope and Def: 34 CFR 668.71-72

Reciprocity for State Institutional approval by participation in State Authorization Reciprocity Agreements

Foundational Principles:

• As an alternative for state-by-state approval, reciprocity through State Authorization Reciprocity Agreements (SARA) offers participating institutions the institutional approval to offer activities subject to SARA oversight, as specified in the SARA Manual, in other SARA member states. SARA does not include program approval and employment issues.
• Activities not subject to SARA oversight require the institution to follow state-by-state institutional approval requirements as designated by the state.

Note: This resource was created by the State Authorization Network (SAN) a division of WCET. Regulatory language and references are subject to change. The information should not be considered legal advice. Legal questions should be directed to legal counsel.