Published by: WCET | 11/13/2025
Tags: Distance Education, Managing Digital Learning, Regulation, SAN, SARA, State Authorization, State Authorization Network, U.S. Department Of Education
Like the “Mighty Yopp” from Dr. Seuss’s Horton Hears a Who! the first federal regulation on state authorization of distance education in 2010 echoed a powerful message from the states: “We’re here!” That Federal regulation affirmed that states have enforceable legal requirements that institutions must follow when engaging in activities within their borders.
In April 2011, WCET quickly stepped in to support its members by developing with partners, the State Approval Regulations for Distance Education: A ‘Starter’ List as guidance on state-by-state requirements and launched the State Authorization Network (SAN).
This new membership group developed a community for institutions and organizations to collaborate on managing compliance processes. Since then, it has remained essential for institutions to identify each student’s location as well as interpret and implement each state’s statutes and regulations to secure the necessary authority to offer activities, including distance education, to students in those states.
With the creation of the State Authorization Reciprocity Agreements (SARA), much of the conversation shifted away from individual state requirements overseeing distance education as states volunteered to join the reciprocity agreement to require institutions to provide uniform student consumer protection to students in all SARA member states. However, in recent years, several states have introduced important changes that deserve renewed attention, particularly for California institutions and any other institution that must obtain state-to-state institutional approval for out-of-state activities of the institution.
Today, with valuable input from several state regulators, we’re sharing updates on recent state-level changes affecting state authorization of distance education, along with the latest developments regarding California’s proposed 2025 legislation proposing to allow the state to join a reciprocity agreement.
Thank you to Claire Gunwall, Director of Academic Affairs & Workforce Innovation, stateauth@ndus.edu, for providing the following information.
During the 2025 North Dakota legislative session, the State Board of Higher Education (SBHE), in collaboration with the North Dakota University System (NDUS), supported the introduction of House Bill (HB) 1064. HB 1064 amended Chapter 15-18.1 of the North Dakota Century Code to strengthen oversight of out-of-state postsecondary institutions providing distance education to North Dakota students.
These changes, effective August 1, 2025, reflect the state’s commitment to protecting students, promoting transparency, and providing institutions with a consistent process for serving North Dakota learners through distance education.
For purposes of state authorization, distance education is defined as “education using one or more types of technology to deliver instruction to a student who is separated from the instructor and to support regular and substantive interaction between the student and the instructor synchronously or asynchronously.
Institutions offering distance education to North Dakota residents must:
Institutions owned or controlled by another entity (i.e., a parent entity) that fail to meet the NC-SARA federal financial responsibility composite score requirement solely for this reason may seek state authorization if they:
Eligible institutions must:
Institutions authorized to serve North Dakota students through distance education must also:
Thank you to Sam Loftin, Director of Consumer Protection, Washington Student Achievement Council, for providing the following information.
In 2025, the Washington State legislature passed EHB 1279. This bill seeks to increase consumer protections for students enrolled in distance education programs by establishing certain conditions for Washington’s participation in a state authorization reciprocity agreement. Specifically, the bill states that such an agreement may not reduce student consumer protections or prevent states from investigating complaints submitted by students located in the state. Additionally, the agreement should include reasonable security requirements and ensure that students receive notice if their institution is at risk of losing accreditation or participation in financial aid programs. These conditions become effective July 1, 2028.
The bill has no immediate impact on Washington’s participation in SARA, and it has no immediate impact on SARA institutions. SARA institutions are not required to apply for authorization to operate in Washington State for activities covered under SARA policy, nor are they required to change how they enroll or serve Washington students enrolled in distance education programs. Non-SARA institutions can contact the Washington Student Achievement Council at degreeauthorization@wsac.wa.gov for more information.
The bill indicates that SARA prevents students from benefiting from consumer protections adopted by state legislatures. State authorization reciprocity should not diminish student consumer protections; instead, it should support states’ efforts to protect students. The bill highlights the efforts of many states and student advocacy groups to support these baseline consumer protections. For more information, WSAC maintains a webpage with a summary of the legislation.
In case you missed it, here is a quick recap of state changes made in the last few years. Thank you to our regulator colleagues: Sheriece Robinson in Mississippi; Lori Harris-Ransom in New Jersey, Marla Winegar in Utah, and Sandra Freeman in Virginia for sharing their state’s information. This information is important for institutions seeking state approval when not participating in institutional authorization reciprocity through SARA.
The Mississippi Commission on College Accreditation has amended the fee structure to include a program fee and a reinstatement fee. The fee structure and more information can be found on their website.
The Office of the Secretary of Higher Education in New Jersey maintains the Out-of-State Distance Education Information webpage to define “Physical Presence” and indicate the activities that trigger the need for state “licensure.” You will recall that some states refer to authorization as “licensure” to indicate the institutional approval in the state.
Although an institution may not trigger physical presence with its online offerings or field experiences, institutions must continue to scroll down the webpage to read the” Out-of-State Distance Education Registration Information.” Even if the institution does not trigger physical presence, if the institution does not participate in SARA and intends to offer activities to students in New Jersey, the institution must submit the required registration fee, which is $10,000 for each degree or certificate program, and $1,000 for each stand-alone course. The webpage emphasizes in all caps and in bold: REGISTRATION IS NOT AUTHORIZATION/LICENSURE. This is a one-time fee for each proposed program and/or course.
The Utah legislature enacted S.B. 180, effective January 1, 2024, that requires biennial registration, changes to the modification of the exemption, changes registration and surety requirements, and added new outcome disclosures. The Utah Division of Consumer Protection updated its website directions for Postsecondary Schools and State Authorization.
In the Commonwealth of Virginia, a law went into effect on July 1, 2022, that requires certain institutions located outside of Virginia to obtain certification from the State Council of Higher Education for Virginia (SCHEV) to offer solely distance education courses to students located in the Commonwealth. Affected schools should visit its website for instructions on how to pay the required fee and complete the Institutional Certification Application Form, including the Program Inventory and Certification Checklist. SCHEV has worked to facilitate clear communication with institutions inquiring about the change, creating a shared, dedicated page, adding a temporary banner on the home page to direct institutions.
During the 2025–2026 regular legislative session and on February 21, 2025, Senator Christopher Cabaldon (D) introduced SB 790.
The bill, titled “Postsecondary education: interstate reciprocity agreements for distance education: out-of-state postsecondary educational institutions,” sought to authorize California to join an interstate reciprocity agreement for distance education, providing a uniform framework for oversight of participating out-of-state institutions.
SB 790 advanced through the legislative process but was ultimately held in committee and placed on the Assembly Appropriations Committee’s Suspense File on August 29, 2025, due to its projected fiscal impact. As a result, the bill did not move forward during the 2025 session but may be reconsidered in a future session.
Because SB 790 did not advance, California will not join an interstate reciprocity agreement for oversight of distance education at this time. Therefore, California institutions must continue to comply with existing state approval requirements based on where their educational activities are located, not based on the residence of the student. Please be aware that there is a difference between location and residence.
Institutions located in California must seek and maintain any required state approvals from the appropriate state agency for all institutional activities conducted within the other state, including distance education (including for military learners), field experiences, and the location of faculty and staff.
For institutions outside of California serving students located in California through distance education or field experiences:
If SB 790 or a similar bill is reintroduced and ultimately enacted, California could gain the authority to join an interstate reciprocity agreement for distance education, though not necessarily the State Authorization Reciprocity Agreements (SARA).
To join SARA, California’s statute would need to align with the requirements established in SARA Policy. Should alignment occur and the state elect to participate, it would likely take additional time to establish the appropriate state oversight agency and complete the approval process to become a SARA member state.
It is important to note that, based on the experience of other states, reciprocity does not take effect immediately upon the passage of enabling legislation; implementation typically follows after administrative structures and approvals are in place.
The state authorization landscape continues to evolve as states revisit their roles in overseeing institutions offering distance education. From significant updates in Washington and North Dakota in 2025 to ongoing legislative efforts in California, these changes reflect each state’s unique approach to balancing consumer protection, institutional accountability, and access to online learning.
As these developments unfold, it’s essential for institutions to stay informed about state-specific requirements and anticipate how new legislation may affect compliance responsibilities. For additional background information, you may wish to review the following reports from the State Authorization Network (SAN):
SAN and WCET will continue to offer updates, analysis, tools, and community discussions to help member institutions navigate these shifting requirements with confidence and clarity. For more information about SAN, please check out the SAN website and stay tuned to WCET Frontiers!
Post written by Cheryl Dowd, SAN
