Indicate Regional Compact:

Midwestern Higher Education Compact

New England Board of Higher Education

Southern Regional Education Board

Western Interstate Commission for Higher Education

Rev. 08/22/16

APPLICATION AND APPROVAL FORM FOR INSTITUTIONAL PARTICIPATION IN SARA

An institution applying to operate under the State Authorization Reciprocity Agreement (SARA) must submit this form to its home state's portal entity for SARA participation.

When the state portal checks “yes” on this form, the state affirms that the applicant institution has followed proper procedures and provided necessary documents to operate under SARA, but this affirmation does not necessarily represent state evaluation of the institution's ability to perform under SARA policies.

An institution seeking approval to operate under the terms and standards of SARA must meet the following requirements:

INSTITUTION Applicant to complete

STATE Entity to complete

Institution affirms meeting the requirement

Initial here

Institution meets the requirement

Yes No

1. Have its principal campus or central administrative unit domiciled in a state that hasjoined the State Authorization Reciprocity Agreement (SARA) initiative and beauthorized to operate in that state. * Only distance education content originatingin the United States or a U.S. territory is eligible to be offered under SARA.**(Attach documentation)

2. Be a U.S. degree-granting institution that is accredited by an accrediting bodyrecognized by the U.S. Secretary of Education. (Attach documentation)

3. For non-public institutions, have a financial responsibility index score from the U.S.Department of Education that is 1.5 or above, or, if its score is between 1.0 and 1.5,successfully demonstrate to its home state’s portal entity that it is neverthelesssufficiently financially stable to justify participation in SARA.Public institutions are presumed to be sufficiently financially stable for SARApurposes. (Attach documentation) Public institutions leave this blank.

4. Agree to abide by the Interregional Guidelines for the Evaluation of DistanceEducation adopted by the Council of Regional Accrediting Commissions, assummarized in SARA policy 5(2)1-9. (See Appendix)

5. Agree to be responsible for the actions of any third-party providers used by theinstitution to engage in operations under SARA.

For Applicant Institution affirms

meeting the requirement

For State Institution meets the requirement

Initial here Yes No

6. Agree to notify its home state’s portal entity of any negative changes to itsaccreditation status.

7. Agree to provide data necessary to monitor SARA activities.

8. Agree to work with its home state’s portal entity to resolve any complaintsarising from its students in SARA states, and to abide by decisions of thatentity.***

9. Apply to its home state’s portal entity over the signature of the institution’sCEO or chief academic officer.

10. Agree to notify in writing all students in a course or program that customarilyleads to professional licensure, or which a student could reasonably believeleads to such licensure, whether or not the course or program meetsrequirements for licensure in the state where the student resides. If aninstitution does not know whether the course or program meets licensurerequirements in the student’s state of residence, the institution may meetthis SARA requirement by informing the student in writing and providing thestudent the contact information for the appropriate state licensing board(s).An e-mail dedicated solely to this purpose and sent to the student’s bestknown e-mail address meets this requirement. The institution should useother means to notify the student if needed.

11. Agree, in cases where the institution cannot fully deliver the instruction forwhich a student has contracted, to provide a reasonable alternative fordelivering the instruction or reasonable financial compensation for theeducation they did not receive.

12. Agree to pay to the state any state fees for SARA participation required bythe home state for administering SARA.

13. Agree to pay its annual SARA participation fee to the National Councilfor SARA (NC-SARA). This single annual fee replaces any fees that theinstitution would ordinarily pay to other SARA member states.

14. Agree to abide by conditions of provisional approval, if necessary.

*SARA considers the home campus to be where an institution has its legal domicile. Any disputes about which state is the home state will be resolved for SARA purposes by the affected regional compacts or the National Council (NC-SARA), as needed.

**The fact that a foreign institution is owned by a U.S. entity does not qualify distance education originating from the non-U.S. institution to be offered under SARA. Only distance education offerings under the oversight of the U.S. state or territory can be offered through SARA.

***Complaints must follow the institution’s customary resolution procedure prior to being referred to the state under SARA procedures. Grade appeals and student conduct appeals are not allowed under SARA.

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Institutional Designation and Affirmation

I, the undersigned representative of (institution name) , having the authority to commit the institution to operate under the SARA interstate agreement, hereby certify that this institution meets all of the standards and requirements stated herein required for operation under the SARA agreement.

Mailing address of institution:

Institution OPEID number:

Institutional Accrediting Organization:

Institution FTE (latest IPEDS):

Name of principal SARA contact:

Email of principal SARA contact:

Phone number of principal SARA contact:

Name of secondary SARA contact:

Email of secondary SARA contact:

Phone number of secondary SARA contact:

Typed name of signatory officer:

Signature:

Date signed:

Title of signatory institutional officer:

If institutional membership in SARA is denied by the home state’s portal entity, the portal entity will provide to the applicant institution a written reason for the denial. The institution may reapply at any time, having corrected any deficiencies, or may appeal the denial to the SARA director of its regional compact (see SARA Manual). If the denial is upheld by the regional compact, the institution may further appeal to NC-SARA.

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State Portal Entity Affirmation

Institutional application: Approved

Provisionally Approved (see attached)

Returned for Additional Data or information

Denied

Conditions related to Provisional Approval Typed name of State Portal Entity Typed name of State Portal Entity contact Signature Date signed Title of State Portal Entity contact State Portal Entity email and phone

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South Dakota & NC-SARA Fee Schedule South Dakota Fees The SDBOR has established an annual fee of $4,000 to cover the Board’s cost of administering SARA for the state of South Dakota. This fee is payable to the South Dakota Board of Regents at the time of registration by check. If a W-9 is needed, please contact the Board of Regents Business Office. BOR institutions should submit a non-cash document for their payment.

NC-SARA Fees An NC-SARA annual participation fee will be invoiced to the institution once it is approved to join SARA by SDBOR. This annual fee is based on an institution’s total full-time equivalent (FTE) enrollment as shown in the Integrated Postsecondary Education Data System (IPEDS) and is assessed as follows:

Enrolled FTE ............ Annual Fee Under 2,500 ............ $2,000 2,500-9,999 ............. $4,000 10,000 or more ....... $6,000

Once NC-SARA receives this fee, all SARA member states will be notified of the institution’s admission into SARA and entitlement to the benefits accorded to SARA participants. SDBOR’s policy regarding fees is below: A. National Council for State Authorization Reciprocity Agreements fees will become payable to the National Council for State

Authorization Reciprocity Agreements upon admission to SARA and renewal fees will be due at such times and in such amounts as the National Council for State Authorization Reciprocity Agreements may specify.

B. The Board shall establish an annual SARA fee at a level required to cover the Board’s cost of administering SARA. The Board’s annual SARA fee will be based upon the State of South Dakota fiscal year, which runs from July 1 through June 30.

1. At the time of submitting an application to participate in SARA, an institution must tender payment sufficient to cover the Board’s annual SARA fee.

a. The first renewal fee will be prorated based on the date that the institution receives approval from the National Council for State Authorization Reciprocity Agreements. The Board will determine the prorated amount by calculating 1/12 of the Board’s annual SARA fee for each full or partial month that the institution participates in SARA. The institutional SARA contact will be notified by the Board Office of the prorated amount when the application is approved.

i. No Board annual SARA fee proration will be made if an institution elects to withdraw from SARA or if its right to participate is terminated.

b. If an institution fails to pay the Board’s annual SARA fee at the time of application, or if the instrument of payment is not honored when presented by the Board, the application will be deemed withdrawn and the SARA administrator will take no further action with respect to it.

C. Renewal payments of the Board’s annual SARA fee will be due on July 1. Any changes to the fee structure will be adopted by the Board at its first official meeting following the close of the Legislative Session.

D. Institutions will forfeit their right to participate in SARA if they fail to pay fees required by National Council for State Authorization Reciprocity Agreements or by the Board.

1. Termination for failure to pay National Council for State Authorization Reciprocity Agreements fees will be effective upon receipt of notice by the Board from the National Council for State Authorization Reciprocity Agreements.

2. Termination for failure to pay the Board’s annual SARA fee will become effective on August 1.

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SARA State Supplemental Sheet for Institutions The fields below require that institutions compile additional information that is required for admission into South Dakota SARA under BOR Policy 1:29 (Supplement II). Sections 1-3 must be completed by all institutions applying to SARA. Section 4 should only be completed by institutions with a Financial Index Score between 1.0 and 1.5 applying for Conditional SARA Membership. Section 1 – Institutional Closure Institutions must submit procedures required under the institutional accreditation in the event of the unanticipated closure of an institution. Please provide a description for each of the requirements below:

A. Institutional procedures adopted to meet accreditation requirements applicable to unexpected institutional closure.

B. Institutional provisions for the preservation of student records.

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C. Accrediting agency contact information to assist the SARA administrator in interpreting accreditor policies.

D. Statement whether the institution carries a surety bond, and if so, a statement regarding whether the

bond would be available to provide reasonable financial compensation for distance education students.

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Section 2 – Notification to Students Regarding Professional Licensure: Institutions must provide documentation that the institution provides written notification to all students in a course or program that customarily leads to professional licensure whether or not the course or program meets requirements for licensure in the state where the student resides.

This requirement applies to any course or programs that a student could reasonably believe leads to such licensure. If an institution does not know whether a course or program meets licensure requirements in the student’s state of residence, the institution may meet this requirement by documenting how it informs students in writing that it cannot assure the student that the course or program meets licensure requirements, and provides the student the contact information for the appropriate state licensing authorities.

Please describe your institution’s procedures for notifying students in the space provided below. Institutions must also provide either 1.) a link to the webpage or document used to notify students (copy the link into the space provided below); or, 2.) an attachment of the document sent to students.

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Section 3 – Institutional Complaint Procedures: Institutions must disclose institutional complaint procedures, approved by the institutional accrediting agency, and document how the institution notifies distance education students of the availability of these procedures.

Please attach institutional complaint procedures, or provide a link in the space provided below. Also, please describe how students are notified of complaint procedures in the space provided below. Institutions must also provide either 1.) a link to the webpage or document used to notify students (copy the link into the space provided below); or, 2.) an attachment of the document sent to students.

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Section 4 – Financial responsibility requirements for private institutions with a financial responsibility index rating between 1.0-1.5 (Does not apply to institutions with ratings equaling or exceeding 1.5): Private institutions with a federal composite financial responsibility score of 1.0 to 1.5 may request conditional admission to SARA for a period not to exceed two years.

A private institution requesting conditional admission to SARA shall submit a business plan and supporting financial information which, considered as a whole, suggest that it is commercially reasonable to expect that, within twenty-four months of admission to SARA, the institution will achieve an institutional federal financial responsibility rating of 1.5 or greater.

Please attach your institutional business plan and supporting financial information if applying for conditional admission to SARA.

Also, it is required that the institution submit accrediting body requirements for teach-out plans or alternative plans to assure that distance education students will be offered options to continue their education or to be reimbursed for tuition and fees.

Please attach accrediting body requirements for teach-out plans or alternative plans, or provide a link in the space provided below.

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Supplement I

Interregional Guidelines for the Evaluation of Distance Education 2011

Council of Regional Accrediting Commissions (C-RAC)

1. Online learning is appropriate to the institution’s mission and purposes.

Analysis/Evidence:**** • The mission statement explains the role of online learning within the range of the institution’s

programs and services;• Institutional and program statements of vision and values inform how the online learning

environment is created and supported;• As appropriate, the institution incorporates into its online learning programs methods of meeting

the stated institutional goals for the student experience at the institution;• The recruitment and admissions programs supporting the online learning courses and programs

appropriately target the student populations to be served;• The students enrolled in the institution’s online learning courses and programs fit the admissions

requirements for the students the institution intends to serve;• Senior administrators and staff can articulate how online learning is consonant with the

institution’s mission and goals.

2. The institution’s plans for developing, sustaining, and, if appropriate, expanding online learningofferings are integrated into its regular planning and evaluation processes.

Analysis/Evidence: • Development and ownership of plans for online learning extend beyond the administrators directly

responsible for it and the programs directly using it;• Planning documents are explicit about any goals to increase numbers of programs provided

through online learning courses and programs and/or numbers of students to be enrolled in them;• Plans for online learning are linked effectively to budget and technology planning to ensure

adequate support for current and future offerings;• Plans for expanding online learning demonstrate the institution’s capacity to assure an appropriate

level of quality;• The institution and its online learning programs have a track record of conducting needs analysis

and of supporting programs.

****These bulleted points illustrate actions, processes and facts that institutions may use to demonstrate that they meet SARA requirements.

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3. Online learning is incorporated into the institution’s systems of governance and academic oversight.

Analysis/Evidence: • The institution’s faculty have a designated role in the design and implementation of its online

learning offerings; • The institution ensures the rigor of the offerings and the quality of the instruction; • Approval of online courses and programs follows standard processes used in the college or

university; • Online learning courses and programs are evaluated on a periodic basis; • Contractual relationships and arrangements with consortial partners, if any, are clear and

guarantee that the institution can exercise appropriate responsibility for the academic quality of all online learning offerings provided under its name.

4. Curricula for the institution’s online learning offerings are coherent, cohesive, and comparable in academic rigor to programs offered in traditional instructional formats.

Analysis/Evidence: • The curricular goals and course objectives show that the institution or program has knowledge of

the best uses of online learning in different disciplines and settings; • Curricula delivered through online learning are benchmarked against on-ground courses and

programs, if provided by the institution, or those provided by traditional institutions; • The curriculum is coherent in its content and sequencing of courses and is effectively defined in

easily available documents including course syllabi and program descriptions; • Scheduling of online learning courses and programs provides students with a dependable pathway

to ensure timely completion of degrees; • The institution or program has established and enforces a policy on online learning course

enrollments to ensure faculty capacity to work appropriately with students; • Expectations for any required face-to-face, on-ground work (e.g., internships, specialized

laboratory work) are stated clearly; • Course design and delivery supports student-student and faculty-student interaction; • Curriculum design and the course management system enable active faculty contribution to the

learning environment; • Course and program structures provide schedule and support known to be effective in helping

online learning students persist and succeed.

5. The institution evaluates the effectiveness of its online learning offerings, including the extent to which the online learning goals are achieved, and uses the results of its evaluations to enhance the attainment of the goals.

Analysis/Evidence: • Assessment of student learning follows processes used in onsite courses or programs and/or

reflects good practice in assessment methods; • Student course evaluations are routinely taken and an analysis of them contributes to strategies

for course improvements; • Evaluation strategies ensure effective communication between faculty members who design

curriculum, faculty members who interact with students, and faculty members who evaluate student learning;

• The institution regularly evaluates the effectiveness of the academic and support services provided to students in online courses and uses the results for improvement;

• The institution demonstrates the appropriate use of technology to support its assessment strategies;

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• The institution documents its successes in implementing changes informed by its programs of assessment and evaluation;

• The institution provides examples of student work and student interactions among themselves and with faculty;

• The institution sets appropriate goals for the retention/persistence of students using online learning, assesses its achievement of these goals, and uses the results for improvement.

6. Faculty responsible for delivering the online learning curricula and evaluating the students’ success in achieving the online learning goals are appropriately qualified and effectively supported.

Analysis/Evidence: • Online learning faculties are carefully selected, appropriately trained, frequently evaluated, and

are marked by an acceptable level of turnover; • The institution’s training program for online learning faculty is periodic, incorporates tested good

practices in online learning pedagogy, and ensures competency with the range of software products used by the institution;

• Faculty are proficient and effectively supported in using the course management system; • The office or persons responsible for online learning training programs are clearly identified and

have the competencies to accomplish the tasks, including knowledge of the specialized resources and technical support available to support course development and delivery;

• Faculty members engaged in online learning share in the mission and goals of the institution and its programs and are provided the opportunities to contribute to the broader activities of the institution;

• Students express satisfaction with the quality of the instruction provided by online learning faculty members.

7. The institution provides effective student and academic services to support students enrolled in online learning offerings.

Analysis/Evidence: • The institution’s admissions program for online learning provides good web-based information to

students about the nature of the online learning environment, and assists them in determining if they possess the skills important to success in online learning;

• The institution provides an online learning orientation program; • The institution provides support services to students in formats appropriate to the delivery of the

online learning program; • Students in online learning programs have adequate access to student services, including financial

aid, course registration, and career and placement counseling; • Students in online learning programs have ready access to 24/7 tech support; • Students using online learning have adequate access to learning resources, including library,

information resources, laboratories, and equipment and tracking systems; • Students using online learning demonstrate proficiency in the use of electronic forms of learning

resources; • Student complaint processes are clearly defined and can be used electronically; • Publications and advertising for online learning programs are accurate and contain necessary

information such as program goals, requirements, academic calendar, and faculty; • Students are provided with reasonable and cost-effective ways to participate in the institution’s

system of student authentication.

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8. The institution provides sufficient resources to support and, if appropriate, expand its online learning offerings.

Analysis/Evidence: • The institution prepares a multi-year budget for online learning that includes resources for

assessment of program demand, marketing, appropriate levels of faculty and staff, faculty and staff development, library and information resources, and technology infrastructure;

• The institution provides evidence of a multi-year technology plan that addresses its goals for online learning and includes provision for a robust and scalable technical infrastructure.

9. The institution assures the integrity of its online offerings.

Analysis/Evidence: • The institution has in place effective procedures through which to ensure that the student who

registers in a distance education course or program is the same student who participates in and completes the course or program and receives the academic credit. The institution makes clear in writing that these processes protect student privacy and notifies students at the time of registration or enrollment of any projected additional costs associated with the verification procedures. (Note: This is a federal requirement. All institutions that offer distance education programs must demonstrate compliance with this requirement.);

• The institution’s policies on academic integrity include explicit references to online learning; • Issues of academic integrity are discussed during the orientation for online students; • Training for faculty members engaged in online learning includes consideration of issues of

academic integrity, including ways to reduce cheating.

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Supplement II SOUTH DAKOTA BOARD OF REGENTS

Policy Manual

SUBJECT: South Dakota State Authorization Reciprocity Agreement (SARA}

NUMBER: 1:29

1. Background

Pursuant to Executive Order 2014-09 (Appendix I) and section 1, chapter 96 of the 2014 Session Laws, codified as SDCL §13-48-42, the Board has been empowered to enter into an agreement, on behalf of the State of South Dakota, with the Western Interstate Commission for Higher Education to join the Western Interstate Commission for Higher Education State Authorization Reciprocity Agreement (SARA).

Executive Order 2014-09 and SDCL §13-48-42 charge the Board with the responsibility to serve as point of contact for purposes related to SARA and to assume responsibility for the administrative, oversight, and investigatory or reporting functions to be undertaken on behalf of South Dakota pursuant to the SARA documents. Point of contact functions extend Board oversight of postsecondary educational institutions, hereafter “institutions,” located in South Dakota only to those South Dakota domiciled institutions that voluntarily request approval to participate in SARA.

In furtherance of Executive Order 2014-09 and SDCL §13-48-42, the Board authorized submission of an application to the Western Interstate Commission for Higher Education State Authorization Reciprocity Agreement Steering Committee, and it adopted the present policy, to be effective upon such date as the Steering Committee should approve South Dakota’s participation in the State Authorization Reciprocity Agreement program.

2. Policy Requirements of the State Authorization Reciprocity Agreement

Pursuant to Executive Order 2014-09 and SDCL §13-48-42, the Board hereby adopts, and incorporates herein, the participation requirements set forth in the Western Interstate Commission for Higher Education State Authorization Reciprocity Agreement published on November 1, 2013, as supplemented by the Western Interstate Commission for Higher Education Application Procedures for State Membership in State Authorization Reciprocity Agreement program, document published on November 22, 2013, and as incorporated in the Policies and Standards of the National Council for State Authorization Reciprocity Agreements, published November 18, 2013.

A. The Board understands the authority placed upon it through Executive Order

2014-09 and delegated to it through SDCL §13-48-42 to empower it to exercise all point-of-contact powers expressly contemplated in the above referenced SARA

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Supplement II

SOUTH DAKOTA BOARD OF REGENTS

Policy Manual

SUBJECT: South Dakota State Authorization Reciprocity Agreement (SARA)

NUMBER: 1:29

1. Background

Pursuant to Executive Order 2014-09 (Appendix I) and section 1, chapter 96 of the 2014 Session Laws, codified as SDCL §13-48-42, the Board has been empowered to enter into an agreement, on behalf of the State of South Dakota, with the Western Interstate Commission for Higher Education to join the Western Interstate Commission for Higher Education State Authorization Reciprocity Agreement (SARA).

Executive Order 2014-09 and SDCL §13-48-42 charge the Board with the responsibility to serve as point of contact for purposes related to SARA and to assume responsibility for the administrative, oversight, and investigatory or reporting functions to be undertaken on behalf of South Dakota pursuant to the SARA documents. Point of contact functions extend Board oversight of postsecondary educational institutions, hereafter “institutions,” located in South Dakota only to those South Dakota domiciled institutions that voluntarily request approval to participate in SARA.

In furtherance of Executive Order 2014-09 and SDCL §13-48-42, the Board authorized submission of an application to the Western Interstate Commission for Higher Education State Authorization Reciprocity Agreement Steering Committee, and it adopted the present policy, to be effective upon such date as the Steering Committee should approve South Dakota’s participation in the State Authorization Reciprocity Agreement program.

2. Policy Requirements of the State Authorization Reciprocity Agreement

Pursuant to Executive Order 2014-09 and SDCL §13-48-42, the Board hereby adopts, and incorporates herein, the participation requirements set forth in the Western Interstate

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Commission for Higher Education State Authorization Reciprocity Agreement published on November 1, 2013, as supplemented by the Western Interstate Commission for Higher Education Application Procedures for State Membership in State Authorization Reciprocity Agreement program, document published on November 22, 2013, and as incorporated in the Policies and Standards of the National Council for State Authorization Reciprocity Agreements, published November 18, 2013.

A. The Board understands the authority placed upon it through Executive Order 2014-09 and delegated to it through SDCL §13-48-42 to empower it to exercise all point-of-contact powers expressly contemplated in the above referenced SARA documents or necessary to performing the functions more specifically described therein.

3. Consistent and Equal Administration of the State Authorization Reciprocity Agreement

A. The Executive Director shall provide for adequate staffing, policies and procedures to assure that South Dakota administers the requirements of SARA consistently and equally, without differentiation based upon the governance, mission or corporate domicile of institutions, and without differentiation based upon the residency of distance education students.

1. For purposes of this policy, the SARA administrator shall be the person delegated responsibility for administering SARA by the Executive Director.

4. Institutional Application to Participate in the State Authorization Reciprocity Agreement program

A. Institutions that operate from a principal campus or central administrative unit domiciled in South Dakota may apply to the SARA administrator for approval to deliver distance education programming to students residing in other SARA member states, provided such institutions have:

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1. institutional accreditation by name as South Dakota-based institutions from an accreditor recognized by the U.S. Department of Education and

2. authorization by name to provide educational programs at physical locations in South Dakota

a. from the Secretary of State,

b. pursuant to SDCL § 13-48-36,

c. pursuant to SDCL § 13-48-41(1), exempting institutions authorized by the government of the United States, or

d. pursuant SDCL § 13-48-41(2), exempting institutions authorized by the government of an Indian tribe whose tribal lands are located, in whole or in part, in this state.

B. Institutions that seek participation in SARA may do so by submitting an application in the form required under SARA.

1. Submission of an application form operates as an agreement by the institution to accept oversight by the Board insofar as is necessary to comply with requirements placed uniformly on all institutions that participate in SARA. Acceptance of that oversight is a precondition and as an ongoing condition of the institution’s eligibility to participate in SARA.

a. This agreement includes institutional undertakings:

i. to provide annual reports required under SARA, together with such additional reports as may be needed to assist the SARA administrator in responding to requests received from other states’ points of contact, or from regional or national SARA agreement authorities;

ii. to notify the SARA administrator promptly of changes in institutional accreditation, corporate governance or ability to continue delivering the programs identified in the institution’s application materials or annual reports;

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iii. to inform the SARA administrator whenever circumstances require it to seek accrediting agency approval for a teach-out program or to initiate other program termination measures;

iv. to offer teach-out plans or reimbursement of tuition or fees to students, if any, who may be unable to complete courses or programs, because of the institution’s loss of eligibility to participate in SARA;

iv. to cooperate with the SARA administrator in resolving complaints;

v. to accept the final resolution of complaints by the SARA administrator, pursuant to the procedures outlined in this policy, which resolutions may require repayment of tuition and fees as liquidated damages; and

vi. to submit to enforcement proceedings and to comply with the final resolution, which may entail loss of eligibility for participation in SARA.

b. The institution shall have the right to appeal SARA administrator final resolutions of complaints or enforcement actions to the Board for resolution under SDCL ch 1-26, as provided in § 9 of this policy.

2. In order to comply with the requirements of the Western Interstate Commission for Higher Education State Authorization Reciprocity Agreement published on November 1, 2013, pp. 15-16, each application must:

a. identify the academic offerings that the institution proposes to offer through SARA and demonstrate that the institution’s accrediting body has accredited it to deliver such programs via distance education;

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b. document that the institution provides written notification to all students in a course or program that customarily leads to professional licensure whether or not the course or program meets requirements for licensure in the state where the student resides;

i. this requirement applies to any course or programs that a student could reasonably believe leads to such licensure;

ii. if an institution does not know whether a course or program meets licensure requirements in the student’s state of residence, the institution may meet this requirement by documenting how it informs students in writing that it cannot assure the student that the course or program meets licensure requirements, and provides the student the contact information for the appropriate state licensing authorities;

iii. failure to provide proper notice in one of the two ways permitted under this subparagraph (b) invalidates SARA eligibility of any course or program offered without the proper notice;

c. disclose institutional complaint procedures, approved by the institutional accrediting agency, and document how the institution notifies distance education students of the availability of these procedures;

d. submit procedures required under the institutional accreditation in the event of the unanticipated closure of an institution, including:

i. a description of provisions to preserve student records;

ii. accrediting body contact information to enable the SARA administrator to request assistance from the institution’s accreditor as the accreditor applies its standards under 34 C.F.R. §602.24(c); and

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iii. a statement whether institutional surety bonds would be available to provide reasonable financial compensation for its distance education students;

e. present a commercially reasonable continuity of operation plan supporting distance education students and their continued access to student records;

f. for private institutions, confirmation of current institutional federal financial responsibility rating.

3. To establish SARA eligibility, private institutions must possess a current federal composite financial responsibility score equaling or exceeding 1.5.

a. Private institutions with a federal composite financial responsibility score of 1.0 to 1.5 may request conditional admission to SARA for a period not to exceed two years.

i. A private institution requesting conditional admission to SARA shall submit a business plan and supporting financial information which, considered as a whole, suggest that it is commercially reasonable to expect that, within twenty-four months of admission to SARA, the institution will achieve an institutional federal financial responsibility rating of 1.5 or greater.

1. Simultaneously, the institution shall document accrediting body requirements for teach-out plans or alternative plans to assure that distance education students will be offered options to continue their education or to be reimbursed for tuition and fees.

b. If, after being admitted to SARA, a private institution’s federal composite financial responsibility score falls below 1.5, the institution’s authorization to participate in SARA terminates automatically, but the institution shall be offered an opportunity to operate for an additional three months pending a formal request for

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conditional admission to SARA, together with all required submissions.

i. The institution may operate for an additional three months following its formal request for conditional admission to SARA.

ii. If the institution elects not to request conditional admission to SARA, it shall implement a teach-out or alternative plan to assure that distance education students will be offered alternatives to continue their education or to be reimbursed for tuition and fees.

c. No private institution with a federal composite financial responsibility score less than 1.0 will be considered eligible for SARA.

i. If, after being admitted to SARA, a private institution’s federal composite financial responsibility score falls below 1.0, the institution’s authorization to participate in SARA terminates automatically.

ii. The institution shall implement a teach-out or alternative plan to assure that distance education students will be offered alternatives to continue their education or to be reimbursed for tuition and fees.

5. State Authorization Reciprocity Agreement Reports

A. Annual Reports

1. On May 15, following approval to participate in SARA, and each subsequent year, institutions shall file with the SARA administrator updates for all information provided in the initial application.

B. Immediate Reports

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1. Institutions shall immediately inform the SARA administrator of developments:

a. affecting institutional accreditation, corporate governance or ability to continue delivering the programs identified in the institution’s application materials or annual reports, and

b. whenever circumstances require it to seek accrediting agency approval for a teach-out program or to initiate other program termination measures.

C. Quarterly Reports

1. Institutions shall file quarterly reports detailing the status of complaints referred to the institution by the SARA administrator, together with details involving complaint resolutions.

2. Private institutions with an institutional federal financial responsibility rating of 1.0 with justification shall submit quarterly reports to document sufficient progress under the institutional business plan to remain eligible to participate in SARA.

D. Other Reports upon Request

1. Institutions shall submit such other reports as the SARA administrator may request from time to time to enable it to respond to inquiries from SARA authorities in other participating states or from the Western Interstate Commission for Higher Education or the National Council for State Authorization Reciprocity Agreements.

6. Fees

A. National Council for State Authorization Reciprocity Agreements fees will become payable to the National Council for State Authorization Reciprocity Agreements upon admission to SARA and renewal fees will be due at such times and in such amounts as the National Council for State Authorization Reciprocity Agreements may specify.

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B. The Board shall establish an annual SARA fee at a level required to cover the Board’s cost of administering SARA. The Board’s annual SARA fee will be based upon the State of South Dakota fiscal year, which runs from July 1 through June 30.

1. At the time of submitting an application to participate in SARA, an institution must tender payment sufficient to cover the Board’s annual SARA fee.

a. The first renewal fee will be prorated based on the date that the institution receives approval from the National Council for State Authorization Reciprocity Agreements. The Board will determine the prorated amount by calculating 1/12 of the Board’s annual SARA fee for each full or partial month that the institution participates in SARA. The institutional SARA contact will be notified by the Board Office of the prorated amount when the application is approved. i. No Board annual SARA fee proration will be made if an

institution elects to withdraw from SARA or if its right to participate is terminated.

b. If an institution fails to pay the Board’s annual SARA fee at the time of application, or if the instrument of payment is not honored when presented by the Board, the application will be deemed withdrawn and the SARA administrator will take no further action with respect to it.

C. Renewal payments of the Board’s annual SARA fee will be due on July 1. Any changes to the fee structure will be adopted by the Board at its first official meeting following the close of the Legislative Session.

D. Institutions will forfeit their right to participate in SARA if they fail to pay fees required by National Council for State Authorization Reciprocity Agreements or by the Board.

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1. Termination for failure to pay National Council for State Authorization Reciprocity Agreements fees will be effective upon receipt of notice by the Board from the National Council for State Authorization Reciprocity Agreements.

2. Termination for failure to pay the Board’s annual SARA fee will become effective on August 1.

7. State Authorization Reciprocity Agreement Complaint Resolution

A. A complaint is a written, signed allegation that a postsecondary institution does not meet the state authorization requirements of SDCL ch 13-48; an allegation that a postsecondary institution violated deceptive trade practices and consumer protections guaranteed by SDCL ch 37-24; or an allegation raised by a distance education student that a SARA institution does not meet standards established by the institution's accrediting agency or SARA.

1. Disputes involving student grades or student conduct violations are governed entirely by institutional policy and the laws of the SARA institution’s home state and do not constitute complaints for purposes of this policy.

B. Certain complaints received by the SARA administrator will be forwarded to others for resolution.

1. Complaints alleging violations of SDCL ch 13-48 will be forwarded to the South Dakota Secretary of State for review and disposition.

2. Complaints alleging violations of SDCL ch 37-24 will be forwarded to the Consumer Affairs Division of the Office of the South Dakota Attorney General for review and disposition.

3. Complaints raised by distance education students residing in South Dakota about SARA institutions domiciled outside South Dakota will be referred to the home state authorities of SARA institutions.

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4. Complaints raised by distance education students residing in South Dakota about South Dakota institutions that do not participate in SARA will be referred to the South Dakota Secretary of State.

C. The SARA administrator will be responsible for reviewing and administering complaints submitted by distance education students, hereafter, “complainants,” that a South Dakota institution that participates in SARA does not meet standards established by the institution's accrediting agency or SARA.

1. Complaints reviewable under this policy include allegations by a distance education student of harm caused because a SARA institution operated a course or program contrary to practices set forth in the Council of Regional Accrediting Commissions Interregional Guidelines for the Evaluation of Distance Education, as summarized in the institutional SARA application (Appendix II).

2. Complaints shall first be reviewed to determine whether they have been processed through the institution’s own procedures for resolution of complaints.

a. Complaints that have not been reviewed by the SARA institution will be referred to it for review and resolution within the time frames established under institutional policy.

i. The SARA administrator will notify complainants at the time a complaint is forwarded to the SARA institution and will advise complainants of their right to request further review of the institutional determination if they process their complaints through the institutional procedure but find the institutional response unsatisfactory.

b. Complainants who processed their complaints through institutional complaint resolution procedures but remain dissatisfied with the outcome of the institutional process may request that the SARA administrator review the institutional resolution of the complaint.

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i. If a complainant declines to participate in the SARA institution’s complaint procedures, the complaint will be deemed to have been withdrawn, and no further action will be taken on the complaint.

ii. The request for review a SARA institution’s decision must be filed with the SARA administrator within two years of the incident about which the complaint is made.

iii. The request for review must be accompanied by copies of all correspondence, filings and documents exchanged between the complainant and the institution.

iv. The request shall specify

1. the basis for believing that the institutional action is inconsistent with accreditation or SARA requirements,

2. the harm caused to the complainant by virtue of the inconsistency, and

3. the corrective action that the complainant seeks.

4. If the complainant alleges that institutional documents were misleading, the request should contain the portions of the catalog, letters or e-mail exchanged between the complainant and the institution and should identify with specificity statements that the complainant found to be misleading and what the complainant understood the statements to mean.

v. The SARA administrator will have no obligation to begin a review until all required documents and statements have been filed.

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2. Once all necessary documentation has been received from a complainant, the SARA administrator shall forward the materials to the institution for written response, which response shall be filed within sixty days thereafter.

3. Upon receipt of the institutional response, or after sixty days if the institution fails to respond to the allegations, the SARA administrator may attempt to arrange an informal resolution to the complaint.

a. In this connection, the SARA administrator may seek the assistance of the SARA institution’s accrediting body.

4. If the an informal resolution cannot be reached within thirty calendar days, the SARA administrator shall issue a final resolution to the parties no later than fifteen days after the time allowed for informal resolution has lapsed.

a. The final resolution shall be binding on both parties, unless it is appealed to the Board pursuant to article 9 of this policy.

8. State Authorization Reciprocity Agreement Enforcement Proceedings

The SARA administrator may initiate enforcement proceedings where necessary to assure institutional compliance with its agreement with the Board, including the requirements established under the institutional application and the related SARA agreements, policies and standards that the Board administers.

B. Before taking formal action, the SARA administrator shall provide the participating institution with a written notice:

1. identifying institutional activity that the SARA administer believes breach specific commitments that the institution gave in order to be allowed to participate in SARA;

2. citing the specific provisions of the institution’s application, this policy or the related SARA agreements, policies and standards that have been breached; and

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3. stating the actions that the SARA administrator proposes to take in response to the identified breaches, either to remedy the breaches or to terminate the institution’s participation in SARA and to require implementation of a teach-out plan, a plan to reimburse tuition and fees to affected students or other measures to enable students to pursue duly accredited courses or programs.

C. The institution shall have forty-five calendar days from the date that the notice is deposited in the United States mails to respond.

1. The response shall identify any alleged errors of fact or alleged error in the SARA administrator’s interpretation, application or adherence to the specific provisions of the participation agreement as set forth in the institution’s application, this policy or the related SARA agreements, policies and standards.

2. The response shall present any proposals that the institution may wish to advance as alternative measures to resolve concerns raised by the SARA administrator.

D. The SARA administrator shall have forty-five calendar days from the date that the institution’s response is deposited in the United States mails to pursue any informal resolution or, at the SARA administrator’s discretion, to issue a final resolution.

E. If the institution fails to respond within the time provided in subparagraph 7(C), above, the SARA administrator shall issue a final resolution, which shall be binding on the institution.

1. In such circumstances, if the institution fails to comply with the requirements set forth in the final resolution, the SARA administrator shall notify the institution that its participation in SARA will terminate and shall require it to implement a teach-out plan, a plan to reimburse tuition and fees to affected students or other measures to enable students to pursue duly accredited courses or programs..

9. State Authorization Reciprocity Agreement Appeals

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A. If a final resolution of a complaint or enforcement proceeding adversely affects a legal right, duty, or privilege required by law to be determined after an opportunity for hearing, the institution may appeal the SARA administrator’s final resolution to the Board.

B. An appeal must be brought within 30 calendar days from the date on which the SARA administrator deposited the final resolution notice in the United States mail.

C. Such an appeal shall state with specificity the legal right, duty, or privilege allegedly affected by the final resolution and shall identify the basis in law for concluding that this legal right, duty or privilege may only be reached by governmental action following a hearing.

1. To the extent that the asserted right to a hearing arises from this policy, the institutional application form, or related SARA agreements, policies or standards, the appellant shall have the burden of showing that the SARA administrator misinterpreted, misapplied or violated a specific term or provision of this policy, the institutional application form, or related SARA agreements, policies or standards.

D. Such an appeal shall set forth allegations asserting a specific factual basis for the appeal that, if proven, would establish that an action attributable to the SARA administrator deprived the institution of a right, duty or privileged arising under the law, policy, application form, or related SARA agreements, policies or standards that the institution cited as authority for its appeal.

E. The Board shall refer the matter to the South Dakota Bureau of Administration Office of Hearing Examiners for review, findings and recommended disposition pursuant to SDCL ch 1-26.

SOURCE: BOR, October 2014; BOR, April 2015.

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