From: Carolyn Fast, Negotiator for Consumer Advocates/Civil Rights (Primary) 

Barmak Nassarian, Negotiator for U.S. Military Service Members, Veterans, or Groups 

Representing Them (Primary) 

To: Department of Education and Negotiation Committee Members 

Date: February 6, 2024

Re: Session Two Proposals on State Authorization and Reciprocity Agreements

NOTE: Red text is Department-proposed text; yellow highlighted text is Department-proposed text

that is new to Session Two. Negotiator proposals appear in blue highlighted text.

§ 600.9 State authorization. 

(a) 

(1) An institution described under §§ 600.4, 600.5, and 600.6 is legally authorized by a State if the State: 

(i) Requires Ensures the institution to complyies with any applicable State authorization or 

licensure requirements, except as described in subsection (3) of this section, and continues to 

meet a to comply with the State’s general-purpose andor postsecondary education-specific laws 

and regulations; and 

(ii) hHas a process to review and appropriately act on complaints concerning the institution, 

including enforcing applicable State laws. and the institution meets the provisions of paragraphs 

(a)(1)(i), (a)(1)(ii), or (b) of this section 

(i) 

(A) The institution is established by name as an educational institution by a State 

through a charter, statute, constitutional provision, or other action issued by an 

appropriate State agency or State entity and is authorized to operate educational 

programs beyond secondary education, including programs leading to a degree or 

certificate. 

(B) The institution complies with any applicable State approval or licensure 

requirements, except that the State may exempt the institution from any State approval 

or licensure requirements based on the institution's accreditation by one or more 

accrediting agencies recognized by the Secretary or based upon the institution being in 

operation for at least 20 years. 
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(ii) If an institution is established by a State on the basis of an authorization to conduct business 

in the State or to operate as a nonprofit charitable organization, but not established by name as 

an educational institution under paragraph (a)(1)(i) of this section, the institution— 

(A) By name, must be approved or licensed by the State to offer programs beyond 

secondary education, including programs leading to a degree or certificate; and 

(B) May not be exempt from the State's approval or licensure requirements based on 

accreditation, years in operation, or other comparable exemption. 

(2) The Secretary considers an institution to meet the provisions of paragraph (a)(1) of this section if the 

institution is authorized by name to offer educational programs beyond secondary education by— 

(i) The Federal Government; or 

(ii) As defined in 25 U.S.C. 1802(2), an Indian tribe, provided that the institution is located on 

tribal lands and the tribal government has a process to review and appropriately act on 

complaints concerning an institution and enforces applicable tribal requirements or laws. 

(3) The institution may be exempted from State requirements for initial or renewed applications and 

fees for authorization or licensure if: 

(i) The institution is offering distance education in that State under a State authorization 

reciprocity agreement, as defined in § 600.2, to students in that State, but is not physically 

located in that State; 

(ii) Not later than July 1, 2030, a charter, statute, constitutional provision, or other action issued 

by an appropriate State agency or State entity establishes the institution by name as an 

education institution and authorizes it to operate educational programs beyond secondary 

education, including programs leading to a degree or certificate; or

(iii) Not later than July 1, 2030, a State action exempts the institution based on the institution’s 

accreditation by one or more accrediting agencies recognized by the Secretary or based on the 

institution being in operation for at least 20 years.

(b) An institution is considered to be legally authorized to operate educational programs beyond 

secondary education if it is exempt as a religious institution from State authorization under the State 

constitution or by State law. 

(c) 

(1)(i) If an institution that meets the requirements under paragraph (a)(1) or (b) of this section offers 

postsecondary education through distance education or correspondence courses to students located in 
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a State in which the institution is not physically located or in which the institution is otherwise subject to 

that State's jurisdiction as determined by that State, except as provided in paragraph (c)(1)(ii) of this 

section, 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. The institution must, upon 

request,: 

(i) Ddocument the State's approval to the Secretary; or 

(ii) If an institution that meets the requirements under paragraph (a)(1) or (b) of this section 

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. The institution must, upon request, 

(ii) For institutions participating in a State authorization reciprocity agreement under § 600.2, 

submit documentation of its coverage under such an agreement to the Secretary. 

(2) 

(i) For purposes of this section, an institution must make a determination, in accordance with 

the institution's policies or procedures, regarding the State in which a student is located, which 

must be applied consistently to all students. 

(ii) The institution must, upon request, provide the Secretary with written documentation of its 

determination of a student's location, including the basis for such determination. 

(iii) An institution must make a determination regarding the State in which a student is located 

at the time of the student's initial enrollment in an educational program and, if applicable, upon 

formal receipt of information from the student, in accordance with the institution's procedures, 

that the student's location has changed to another State. 

(3) 

(i) A State authorization reciprocity agreement must include a process for communicating 

information received on complaints regarding institutions or programs subject to the State 

reciprocity agreement to the State in which a student is located at the time of the student’s 

initial enrollment, as determined in accordance with paragraph (c)(2) of this section. 

(ii) If a State authorization reciprocity agreement is administered by an organization, the 

agreement must require that complaints received by States from institutions subject to the 
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State reciprocity agreement are communicated to the organization. The organization must make 

information received on complaints public at least annually, including but not limited to the 

number and type of complaints by institution that is subject to the State reciprocity agreement. 

(d) If an institution is authorized to offer distance education in another State under a State authorization 

reciprocity agreement, as defined in § 600.2: 

(1) Such agreement must: 

(i) Not delegate authority to Provide for a State-led process through which participating States 

can propose and/or collectively adopt, modify, or eliminate substantive policies of the 

agreement, including policies on State and institutional participation and the scope of 

reciprocity, or to make determinations regarding institutional participation in the agreement, to 

any entity that is not exclusively composed of representatives from member State regulatory or 

law enforcement agencies. Such a process, and such State-adopted or -modified policies and 

determinations, cannot be overruled by any external entityies that administer the agreement; 

(ii) Allow any member State of the agreement to enforce its own general-purpose State laws and 

regulations outside of the State authorization of distance education; [Moved from 600.2] 

(iii) Include a process for communicating information about a student’s complaints related to 

State authorization and the reciprocity agreement’s policies to the State in which the student is 

located in accordance with paragraph (c)(2)(i)-(iii) of this section, including the time of the 

student’s initial enrollment or, if there has been a formal receipt of information from the 

student in accordance with the institution’s procedures, that the student’s location has changed 

to another State; 

(iv) Permit the member States responsible for receiving, and providing a final determination on, 

a student complaint, as determined under the agreement’s policies, to, at the States’ discretion, 

accept, investigate, and resolve complaints about an institution without the student first going 

through the institution’s own procedures for resolution of grievances under limited 

circumstances. Reasons for executing State discretion include but are not limited to 

impracticability, impossibility, inaction by the institution, and possible harm to the student; 

(iv) Provide that complaints received by States about institutions subject to the State reciprocity 

agreement must be communicated to the organization(s) that administer(s) the agreement. The 

organization(s) must make information received on complaints public at least annually, including 

but not limited to the number and type of complaints by institution that is subject to the State 

reciprocity agreement; 

Commented [1]: We propose this change because the 

use of the term "state-led" would permit participation 

from regulated entities and others who may have 

conflicts of interest or are not accountable to member 

states in setting standards for regulated entities.

Commented [2]: This change is required to make this 

provision consistent with the new 600.9(a), which 

requires States to apply both general and educationspecific laws outside of authorization 

application/renewal requirements.

Commented [3]: We propose striking (iv) because it is 

largely duplicative of (vii). In addition, (iv) would permit 

reciprocity agreements to prohibit state agencies in a 

students' home state from accepting/investigating 

complaints from SARA schools located outside of that 

state, where the complaints were not first submitted to 

and resolved by the institution. It is important that a 

student's home state have the ability to accept 

complaints, if the state so chooses. Accordingly, (iv) 

should be stricken, and (vii) should remain in the 

regulation.
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(vi) Provide that complaints alleging criminal offenses or violations of a State’s general-purpose 

laws, including but not limited to fraud, misrepresentation, and harassment, may be made 

directly to appropriate State agencies in the institution’s or student’s home State; and 

(vii) permit member States to, at the State’s discretion, accept, investigate, and resolve 

complaints about an institution of higher education that have not yet been submitted to and 

resolved by the institution of higher education. and 

(vii) require, as a condition of participation, that an institution begin the process of, and obtain 

within one year, direct authorization from any participating State where it enrolls more than 

1,000 students.

(2) If administered by an organization, the governing body of such organization must consist solely of 

representatives from State regulatory bodies, enforcement agencies, and attorneys general offices. 

[Moved from 600.2]