State Authorization:
Who, What, When, Where,
How, and Why
DR. PAMELA SHAY
SHARYL THOMPSON, MS
NOVEMBER 2013
What is State Authorization?

Formal permission from a state allowing
an institution to conduct specific
activities within it’s borders

The specific activities triggering the
need for state authorization differs by
state

State authorization is sometimes
referred to as “approval to operate”
When Was State
Authorization Born?

Been on the books for years

HEOA 2010

Program Integrity Rules

SARA
Who Needs State
Authorization?

Institutions with a physical location
outside their home state

Institutions offering distance education
to students outside their home state

Institution who recruits “on the ground”
outside their home state

Institutions whose students do practica
or internships outside their home state
When Does Your Institution
Need State Authorization?

Whenever it conducts activity in a state
that requires authorization

Authorization should be applied for and
received before that activity
commences
What Does it Take to Get
Authorized?

Varies by state

Resource Commitment
 People
 Money
 Time

Submit an application (simple to complex)

Pay fee(s)

Sometimes attending a commission meeting
How Do You Obtain State
Authorization?

Review relevant statutes and regulations

Definitions (know your institution)

“Triggers” for physical presence or operating


Facilities, infrastructure and technology

Online students residing in a state

Practica, internships/ externships, clinicals

Online faculty residing in a state

Proctors, tutors, mentors, preceptors

Marketing and recruiting (on-ground) initiatives
Exemptions
How Do You Get Authorized
in a State?
Compare multiple sources of information
 Do a cost/benefit analysis
 Create a tracking system
 Build and foster internal and external
relationships
 Programs leading to professional licensure
may need additional approval by a
state’s licensing board (nursing,
education, counseling)

How Do You Get Authorized
in a State?

Understand each state’s terminology

Adjust your terminology to
match that state
Advertising
Cost/Benefit Analysis – Strategic Decision
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Number of students
State expenses (initial, annual, bonds, etc.)
Cost of not serving existing students
Cost of monitoring and maintaining
Cost of personnel
Application Components
Curriculum
 Faculty credentials
 Admission/enrollment policies and processes
 Marketing activities
 Technology information
 Student services (including library resources)
 Organizational structure
 Assessment
 Audited financial statements
 Tuition refund policy
 Complaint policy and procedures

Build and Foster
Relationships: External


Regulators
 Prepare before calling or emailing
 Ask specific questions; provide relevant context
 Attitude is everything!
 Document all communications
Professional Activities
 Attend hearings and meetings (federal, state, agency)
 Serve on relevant task forces, committees
 Attend conferences
 Network among agencies and institutions
How Do You Maintain
Authorization?

New program offerings

Renewals

Reporting (enrollment, revenue, etc.)

Surety bond updates

Agent license renewals

Recurring fees

Develop a system of ongoing review

It’s complicated . . . but doable!
Why Should You Care
About State Authorization?

It’s the law

It protects your students

It’s the right thing to do

May be tied to veterans’ benefits

In future, may be tied to Title IV financial aid

States are becoming more proactive in enforcing
state authorization regulations
When Should You Start
Applying?

NOW!

Institutions should not wait for state
reciprocity

State laws and regulations have been in
place for many years
Where Can You Get
Information?

WCET SAN Network

SHEEO State Authorization Survey
 Survey
of state agencies updated
every 6 months
 Good
place to start, but limited

Resources for a fee

Blogs, webinars, conferences
Questions?
Pamela Shay
pamela.shay@franklin.edu
614-947-6135
Sharyl Thompson
sharyljt@att.net
612-408-3725