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Minutes for SB64 - Committee on Education

Short Title

Amending the private and out-of-state postsecondary educational institution act to clarify the state board of regents' authority and provide additional student protections and institutional accountability.

Minutes Content for Thu, Jan 28, 2021

Chairperson Baumgardner opened the hearing on SB64 by giving an overview of the bill. (Attachment 1)

Crystal Puderbaugh, Director of Academic Affairs, Kansas Board of Regents (KBOR), explained that this bill would amend several provisions of the Private and Out-of-State Postsecondary Educational Institution Act. These amendments would clarify the Board of Regent's authority to regulate private and out-of-state postsecondary institutions operating in Kansas, strengthen consumer protections and increase institutional accountability.

Under current law, private and out-of-state postsecondary institutions that are subject to the Act may not operate in Kansas unless they obtain a Board-issued certificate of approval. Before issuing a certificate, the Board must ensure the institution meets minimum standards established by statue and regulation.

While specific sections of the Act have been amended over the years, the most recent comprehensive legislative review was conducted in 2010. Since that time there have been significant changes within the industry such as the proliferation of online education, increased volatility in the ownership structure and financial health of these institutions, which has led to a nationwide increase in the number of postsecondary institutions that close.

The proposed amendments would

  • Update definitions to clarify the Board's subject matter jurisdiction.
  • Clarify the types of institutions exempt from the Act and add an exemption of intensive review courses.
  • Codify that an institution that is exempt from the Act, because it is regulated and approved under another state law, may voluntarily bring itself under the Board's jurisdiction if Board-approval is required to participate in federal programs authorized by the Higher Education Act of 1965.
  • Require degree-granting institutions to make progress toward and ultimately achieve and maintain institutional accreditation status with an accrediting agency recognized by the U.S. Department of Education.
  • Allow the Board to issue a provisional certificate of approval when a degree-granting institution has not yet achieved institutional accreditation.
  • Expand the list of minimum standards required for a certificate of approval to include prohibiting institutions awarding credentials based solely on payment of tuition or credit earned from other institutions or awarding honorary degrees if they do not award earned degrees.
  • Allow the Board to impose requirements on institutions that are closing, including teach-out plans, refund requirements and plans for maintenance of academic records;
  • Clarify that the Board can require an institution to begin closure procedures once a renewal application is deemed late;
  • Consistent with current law, the bill would allow the Board to condition a certificate of approval at any time the Board determines additional information is necessary.
  • Allow an institution that has had a certificate of approval revoked to reapply for a new certificate of approval twelve months after the final order of revocation if the institution has established that it has cured all deficiencies.
  • Allow the Board to fine institutions for violations of the Act.
  • Expand the coverage of the institution's surety bond to include fines assessed for a violation of the Act.
  • Add to the list of violations of the Act obtaining a certificate of approval through fraud and misrepresentation and failing to submit accurate data on a timely basis.
  • Increase the amount of the civil penalty that can be imposed by the court for violations of the Act from $5,000 to $20,000.

The proposed amendments are necessary to clarify and strengthen the Board's authority over private and out-of-state postsecondary educational institution operating in Kansas. Additionally, the proposed amendments strengthen consumer protection for Kansas students and increase institutional accountability. (Attachment 2)

Matt Lindsey, President, Kansas Independent College Association (KICA), stated that KICA institutions have traditionally been exempt from the Private and Out-of-State Post-secondary Educational Institutions Act but were grandfathered into the state's approval because of their existence prior to the formation of the Board of Regents and prior approval to offer degrees. KICA supports the changes proposed in this bill. Being identified by name as explicitly exempt from this law assists in demonstrating to the United States Department of Education that our institutions satisfy various regulatory requirements for being "authorized" in the state in which we are based. (Attachment 3)

The Chair closed the hearing on SB64.