Out-of-State Activity Compliance Beyond SARA

Critical Takeaways:

* Foundational Rule: If an institutional activity (including faculty work or experiential learning) occurs in another state, the institution is responsible for determining that state’s oversight requirements.
* Student Location Tracking: Federal regulations require institutions to have a formal process for determining and documenting where students are physically located at the time of enrollment.
* Professional Licensure (PPA): New Program Participation Agreement (PPA) certification requirements (effective July 1, 2024) mandate that institutions satisfy state educational requirements in the state where a student is located at the time of initial enrollment.
* Web Accessibility Deadline: The Department of Justice (DOJ) has set an April 2026 deadline for public entities to comply with WCAG 2.1 Level AA web accessibility standards.
* Global Compliance: SARA does not apply internationally; activities in other countries require individual review of local ministries of education, data privacy (GDPR), and tax laws.

Foundational Principles for Out-of-State Compliance:

Institutions often mistakenly equate “state authorization” solely with online courses. However, compliance responsibilities extend to any activity occurring across state lines.

Federal Regulatory Framework: The Department of Education (ED) uses the Program Participation Agreement (PPA) to enforce compliance for institutions participating in Title IV programs.

Student Location Requirements:

Institutions must determine a student’s location—which is distinct from their legal residence—at the time of enrollment or when a student formally notifies the institution of a change.

* Location vs. Residence: Location is where the student is physically situated while taking the course.
* Verification: Institutions are encouraged to verify location on a per-term basis during registration.

Professional Licensure Disclosures and Certification

Regulations effective July 1, 2020, and updated July 1, 2024, mandate strict transparency regarding programs designed for licensure:

* Determinations: Institutions must explicitly state if a program “meets” or “does not meet” curriculum requirements in a state. The previous “not determined” option has been removed for states where the institution serves students.
* Individualized Notifications: If a student’s location changes such that the program no longer meets local requirements, the institution must notify the student within 14 calendar days.
* PPA Certification: Institutions must now certify that their programs satisfy the educational requirements for licensure in the state where the institution is located AND where the student is located at initial enrollment.

The Student Attestation Option

If an institution does not meet the requirements in a student’s current state, they may still serve the student if:
1. The student provides an attestation of their intent to seek employment in a different state.
2. The institution meets the requirements in that intended state of employment. Note: Institutions are cautioned to ensure these attestations are made knowingly and are not treated as a mere “click-through” box.

Department of Justice: Web Accessibility (ADA Title 2): New federal regulations regarding web accessibility for public entities are now effective, with enforcement beginning soon.

* Standard: WCAG 2.1 Level AA.
* Enforcement Timeline:
* April 2026: Deadline for large public entities.
* April 2027: Deadline for smaller public entities.
* Scope: This applies to all public government entities, including public universities, libraries, and recreation centers.

Global Activity and International Compliance
SARA is strictly a state-to-state agreement within the U.S. and does not extend to other countries or territories like Canada or Mexico.

* Institutional Responsibilities: Institutions must review local Ministry of Education requirements, degree recognition, and data privacy laws (e.g., GDPR in the EU).
* Military Students: Contrary to common belief, military students do not “travel in a bubble.” Unless a specific Status of Forces Agreement (SOFA) is in place, institutions must comply with the laws of the country where the base is located.
* Logistics: Considerations include export controls, digital sales tax, and employment laws for faculty working abroad.

Updates on State-Level Institutional Approvals:

Since the COVID-19 pandemic, several states have modified their approval processes for institutions operating outside of SARA.

* Mississippi: Updated its fee structure, including new program and reinstatement fees.
* New Jersey: Implemented a mandatory registration fee for each degree or certificate program, distinct from licensing/authorization.
* North Dakota: Now prohibits out-of-state institutions from offering online courses to North Dakota residents if the institution does not participate in SARA (though experiential learning is currently excluded).
* Utah: Introduced biennial registration, surety requirements, and mandatory outcome disclosures.
* Virginia: Now requires certification, program inventories, and certificate checklists.
* Washington: Passed legislation seeking higher consumer protection standards within reciprocity agreements. If SARA does not adopt these by 2028, Washington’s participation could be impacted.
* California: Remains the only state not in SARA. Recent legislative attempts to join a reciprocity agreement have failed, but the issue is expected to resurface in upcoming sessions.

Essential Resources for Institutions
The State Authorization Network (SAN) provides several tools for managing these complexities: