Part 5: Core Conditions for State Participation

To participate in the agreement, a state must demonstrate that:

1. State law includes a reasonable definition of physical presence for purposes of interstate reciprocity that clearly explains which activities do and do not trigger state authorization.
The state definition of physical presence should not materially deviate from the definition offered in Recommendation 1.2. Additionally, the state should ensure that it does not classify any of the non-triggering activities identified in Recommendation 1.2 (such as recruiting, clinical programs, etc.) as triggers for physical presence requirements for institutions participating in the interstate reciprocity agreement. Depending on their current definitions of physical presence, different states will likely face different consequences when making this change. States that currently require state authorization regardless of physical location or based on certain triggers will likely see a decrease in the amount of oversight activity required. In contrast, states that currently do not require authorization or provide an exemption for distance education programs will likely see an increase in the amount of oversight activity required.

2. State law allows participation in the reciprocity agreement.
States must take appropriate steps to ensure that state law or regulation explicitly allows the state higher education agency (or other responsible agency) to undertake the requirements of the reciprocity agreement. Additionally, states that do not currently belong to a regional compact and wish to participate in the regional compact will need to take steps to join a compact for the limited purpose of participating in the agreement.

3. The state is prepared to receive applications for participation in the reciprocity agreement and authorize institutions on an annual basis.
States must establish a process to admit institutions into the reciprocity agreement that will require a review of the institution's accreditation status, consumer protection disclosures, and financial viability. This review must be conducted on an annual basis. The state should also be prepared to provide an appeals process for institutions that are not approved for participation in the agreement.

4. A state agency (or multiple agencies) has been designated to receive, investigate, and resolve student complaints regarding institutions authorized under the agreement.
Under the reciprocity agreement, a state must agree to serve as the default forum for any complaint filed against an institution authorized by the state. Therefore, a state agency (or multiple agencies) must be empowered to investigate and resolve complaints that may originate outside of the state.

5. The state has eliminated fees, requirements for a refund policy unique to that state, requirements for a set curriculum for general education requirements, a mandatory number of hours for a degree or certificate, and/or other such requirements for out-of-state institutions that do not have physical presence in their borders and are participating in the interstate reciprocity agreement.
The purpose of the reciprocity agreement is to provide uniform standards for distance education across states. The agreement eliminates the need for states to assess the quality of out-of-state institutions through the traditional authorization process. Therefore, states cannot demand that institutions participating in the agreement meet additional requirements before serving students in the state.
States cannot impose fees and/or other requirements on participating out-of-state institutions that were properly authorized by another state to provide distance education under the reciprocity agreement. However, institutions with physical presence in states beyond their home state may be subject to fees and/or other program requirements by the states in which they have physical presence, as those states determine as to their in-state activities.

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