1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|SENATE BILL 550 By: Seifried |
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6| AS INTRODUCED |
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7| An Act relating to higher education; amending 70 O.S. |
| 2021, Section 4103, which relates to accreditation of |
8| certain institutions; directing certain policies and |
| procedures to include certain provisions; providing |
9| for promulgation of rules; creating the Tuition |
| Recovery Revolving Fund; specifying source of fund; |
10| providing for expenditures; providing purpose of |
| fund; providing for codification; providing an |
11| effective date; and declaring an emergency. |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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15| SECTION 1. AMENDATORY 70 O.S. 2021, Section 4103, is |
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16|amended to read as follows: |
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17| Section 4103. A. As used in this section: |
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18| 1. "Degree-granting institution" means an institution that |
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19|offers education leading to an associate's degree or higher; |
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20| 2. "Non-degree-granting activity" means offering education or |
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21|training that does not lead to an associate's degree or higher; and |
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22| 3. "State authorization reciprocity agreement" means an |
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23|agreement among states, districts, and territories that establishes |
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1|comparable standards for providing distance education from their |
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2|postsecondary educational institutions to out-of-state students. |
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3| B. All private and out-of-state public degree-granting |
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4|institutions shall be accredited by a national or regional an |
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5|accrediting agency which is recognized by the Secretary of the |
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6|United States Department of Education as a reliable authority as to |
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7|the quality of education or training offered by institutions of |
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8|higher education for the purposes of the Higher Education Act of |
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9|1965, as amended. Additionally, for the purposes of consumer |
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10|protection and to maintain financial eligibility for Title IV |
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11|funding as described in 34 CFR Part 600, institutions shall be |
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12|authorized according to the policies and procedures established by |
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13|the Oklahoma State Regents for Higher Education. These policies and |
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14|procedures shall be limited to a complaint process provision, |
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15|standards for operation, stipulations for a written enrollment |
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16|agreement between the institution and the student and reporting |
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17|requirements the minimum necessary to ensure that private and |
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18|out-of-state degree-granting institutions that operate in this state |
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19|by any modality meet the same standards of academic quality and |
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20|fiscal responsibility required for institutions of higher education |
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21|within The Oklahoma State System of Higher Education. Beginning |
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22|with the 2023-2024 academic year, the State Regents shall: |
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23| 1. Establish and collect fees annually from applicants for |
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24|authorization as necessary to cover the costs of authorization; |
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1| 2. Require applicants for authorization to submit payment in an |
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2|amount established by the State Regents into the Tuition Recovery |
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3|Revolving Fund created in Section 2 of this act, which shall be used |
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4|to offset student tuition losses in the event an authorized |
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5|institution closes or ceases operations; and |
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6| 3. Be authorized to deny, not renew, or revoke an institution's |
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7|authorization if it is found to be in violation of the Oklahoma |
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8|statutes, it fails to meet the minimum authorization standards |
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9|established by the State Regents, or an accrediting agency or other |
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10|government entity revokes its approval, which is material to the |
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11|continuity of the institution. An institution subject to the |
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12|provisions of this paragraph shall be given reasonable notice and an |
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13|opportunity to be heard prior to a decision to deny, not renew, or |
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14|revoke authorization. |
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15| C. The following institutions shall be exempt from this |
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16|section: |
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17| 1. Private institutions participating in the Oklahoma Tuition |
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18|Equalization Grant program; and |
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19| 2. Out-of-state public and private institutions participating |
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20|in a state authorization reciprocity agreement that only conduct |
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21|activities in Oklahoma that are acceptable under the terms and |
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22|conditions of the state authorization reciprocity agreement. |
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23| C. D. Non-exempt institutions engaged in non-degree granting |
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24|activities, such as offering certificates and diplomas, shall be |
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1|subject to the standards administered by the Oklahoma Board of |
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2|Private Vocational Schools. |
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3| E. The State Regents shall promulgate rules to implement the |
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4|provisions of this section. |
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5| SECTION 2. NEW LAW A new section of law to be codified |
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6|in the Oklahoma Statutes as Section 4103.1 of Title 70, unless there |
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7|is created a duplication in numbering, reads as follows: |
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8| There is hereby created in the State Treasury a revolving fund |
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9|for the Oklahoma State Regents for Higher Education to be designated |
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10|the "Tuition Recovery Revolving Fund". The fund shall be a |
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11|continuing fund, not subject to fiscal year limitations, and shall |
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12|consist of all monies received by the State Regents from fees |
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13|collected pursuant to Section 4103 of Title 70 of the Oklahoma |
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14|Statutes. All monies accruing to the credit of the fund are hereby |
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15|appropriated and may be budgeted and expended by the State Regents |
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16|for the purpose of offsetting student tuition losses in the event |
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17|that an institution authorized pursuant to Section 4103 of Title 70 |
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18|of the Oklahoma Statutes closes or ceases operations. Expenditures |
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19|from the fund shall be made upon warrants issued by the State |
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20|Treasurer against claims filed as prescribed by law with the |
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21|Director of the Office of Management and Enterprise Services for |
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22|approval and payment. |
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23| SECTION 3. This act shall become effective July 1, 2023. |
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1| SECTION 4. It being immediately necessary for the preservation |
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2|of the public peace, health, or safety, an emergency is hereby |
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3|declared to exist, by reason whereof this act shall take effect and |
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4|be in full force from and after its passage and approval. |
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6| 59-1-804 EB 1/17/2023 7:08:33 PM |
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