Designation of SARA Portal Agency. The Commission is the interstate point of contact for SARA questions, complaints, and other communications. Delegation to Secretary. Except as otherwise provided by this chapter, the Commission delegates to the Secretary the authority to act on its behalf with respect to all matters concerning SARA. Reporting by the Commission. In the manner required under SARA, the Commission shall report information to the Council and to the Southern Regional Education Board. In this chapter, the following terms have the meanings indicated. Terms Defined. “Accredited” means holding institutional accreditation by name as a U.S.-based institution from an accreditor recognized by the U.S. Department of Education. “Commission” means the Maryland Higher Education Commission. “Council” means the National Council for State Authorization Reciprocity Agreements. “C-RAC guidelines” mean the Interregional Guidelines for the Evaluation of Distance Education adopted by the Council of Regional Accrediting Commissions. “In-State institution” means an institution of higher education that holds its legal domicile in the State. “In-State SARA institution” means an in-State institution approved by the Commission to participate in SARA. “SARA” means a State Authorization Reciprocity Agreement overseen by the National Council for State Authorization Reciprocity Agreements and administered by the Southern Regional Education Board, the New England Board of Higher Education, the Midwestern Higher Education Compact, or the Western Interstate Commission for Higher Education. “SARA distance education” means interstate instruction, originating in the U.S. or a U.S. territory, offered by any means where the student and faculty member are in separate physical locations, including, but not limited to, online, interactive video, or correspondence courses or programs. “Secretary” means the Secretary of Higher Education or the Secretary’s designee. This chapter does not affect the obligations of in-State SARA institutions to seek and obtain institutional and programmatic reviews and approvals from the Commission under Education Article, §§11-202 and 11-206, Annotated Code of Maryland. An in-State institution seeking approval to participate in SARA shall submit an application to the Commission in a form prescribed by the Secretary. The Secretary shall, upon receipt of an in-State institution’s complete application to participate in SARA, approve the application if: The applicant is an in-State institution approved by the Commission to operate in Maryland; Programs offered by the institution comply with Education Article, §§11-206 and 11-206.1, Annotated Code of Maryland; The applicant is accredited; The president or chief academic officer of the institution attests that the institution meets and agrees to comply with the C-RAC guidelines; The institution, if it participates in federal Title IV financial aid, has a federal financial responsibility rating of at least 1.5, or, upon justification deemed acceptable by the Secretary, a federal financial responsibility rating of at least 1.0; The institution, if it does not participate in federal Title IV financial aid, would, in the determination of the Secretary, have a federal financial responsibility rating of at least 1.5, or, with justification deemed acceptable by the Secretary, at least 1.0; The institution makes its SARA-related complaint policies and procedures readily available to students, and informs students that they may appeal SARA-related complaints to MHEC pursuant to this chapter; For any course or program potentially leading to professional licensure: The institution notifies students and potential students that the course or program meets the licensing requirements of the state where the students or potential students reside; or The institution notifies students and potential students that it cannot confirm whether the course or program meets the licensing requirements of the state where the students or potential students reside, provides students and potential students with current contact information for applicable licensing boards, and advises students and potential students to determine whether the course or program meets state licensing requirements; The provisional approval criteria in §C of this regulation do not apply; and The applicant has paid the fee required by Regulation .06 of this chapter. Provisional Approval. The Secretary shall, upon receipt of an in-State institution’s complete application to participate in SARA, approve the institution to participate in SARA on a provisional status if the institution meets the requirements of §B(1)—(8) and (10) of this regulation, but: Is on probationary status or the equivalent with its institutional accrediting association; Uses a letter of credit or is under a cash management agreement with the U.S. Department of Education; Is the subject of a publicly announced investigation by a government agency, and the investigation is related to the institution’s academic quality, financial stability, or student consumer protection; or Is the subject of an investigation by the State related to the institution’s academic quality, financial stability, or student consumer protection. Terms and Length of Provisional Status. An in-State institution approved to participate in SARA on provisional status shall meet any requirements the Secretary deems necessary, including enrollment limits, to ensure SARA standards are met regarding program quality, financial stability, and consumer protection. The length of the provisional status of an in-State institution approved to participate in SARA shall be determined by the Secretary and may not exceed 1 year. Application for Removal of Provisional Status. If an in-State institution approved to participate in SARA on provisional status no longer meets the provisional status criteria set forth in §C of this regulation, it may apply in writing to the Secretary for removal of its provisional status designation and approval as an in-State SARA institution. The Secretary shall grant the application if the criteria justifying provisional status no longer apply, and if the institution meets the requirements of §B of this regulation. If the Secretary determines that an in-State institution approved to participate in SARA on provisional status no longer meets the requirements of §B(1)—(8) and (10) of this regulation, the Secretary shall: Provide the institution with a grace period, not to exceed 1 year, in which the institution shall come into compliance with SARA standards, subject to the supervision of the Secretary; or Prohibit the institution from enrolling additional students in SARA distance education, terminate the institution’s SARA participation pursuant to Regulation .08 of this chapter, and allow the institution to continue to instruct students already enrolled in SARA distance education for a period of 6 months. In any 3-year period, the Secretary may grant an institution only one grace period in which to correct noncompliance under §D(4) of this regulation. An in-State SARA institution shall apply to the Commission annually, in a form prescribed by the Secretary, to renew its participation in SARA. The Secretary shall approve the renewal application if the in-State SARA institution continues to meet the requirements set forth in Regulation .04B of this chapter. An in-State institution approved to participate in SARA on provisional status may not renew its provisional status. An in-State institution shall pay annually the SARA application and renewal fees set forth in this regulation. Fees to the Commission. For institutions with less than 2,500 full-time equivalent enrollment, the annual, nonrefundable fee due to the Commission shall be $2,000. For institutions with between 2,500 and 9,999 full-time equivalent enrollment, the annual, nonrefundable fee due to the Commission shall be $4,000. For institutions with 10,000 or more full-time equivalent enrollment, the annual, nonrefundable fee due to the Commission shall be $6,000. Fees to the Council. Fees due annually to the Council to participate in SARA are prescribed by the Council. Scope. This regulation applies to SARA distance education provided by in-State SARA institutions to students residing in Maryland, and to students residing in other states. This regulation does not affect or limit the rights of students or of the State to pursue other remedies available under the law, including the Maryland Consumer Protection Act. A student who receives SARA distance education from an in-State SARA institution may, after the student has exhausted the institution’s procedures for the resolution of grievances, and within 2 years of the incident about which the complaint is made, file a written complaint to the Commission, in a form prescribed by the Secretary, alleging that the institution: Has engaged in dishonest or fraudulent activity; or Has operated a course or a program contrary to practices set forth in the C-RAC guidelines in a way that has harmed the student. A complaint made under §B of this regulation may include, but is not limited to, allegations that the institution provided false or misleading: Recruitment or marketing materials; Job placement data; Information about tuition, fees, or financial aid; Information about admission requirements; Information about the institution’s accreditation; Information about whether course work meets relevant professional licensing requirements or the requirements of specialized accrediting bodies; and Information about the transferability of course work to other institutions. The Secretary shall send a copy of a complaint received under §C of this regulation to the institution that is the subject of the complaint. Within 30 days of the date that the Secretary sends a copy of a complaint received under §D of this regulation to an institution, the institution shall provide a written response in a form prescribed by the Secretary. Within 30 days of the date the Secretary receives the institution’s response under §E of this regulation, or if the Secretary receives no response under §E of this regulation, the Secretary shall issue a notice to the institution containing: The Secretary’s findings regarding the complaint; The actions that the institution shall take, if any, to comply with the requirements set forth in this chapter; and The consequences of failing to take the actions prescribed by the Secretary, which may include the termination of the institution’s participation in SARA under Regulation .08 of this chapter. If the Secretary finds that an in-State SARA institution fails to meet the requirements of this chapter, the Secretary may: Issue a notice of deficiencies to the institution; or If the institution meets the requirements of Regulation .04C of this chapter, permit the institution to participate in SARA on provisional status, subject to the requirements of Regulation .04D of this chapter. Within 20 days of receipt of the notice of deficiencies, the institution shall respond in writing to the Secretary’s notice, setting forth the institution’s objections to the Secretary’s findings. Within 20 days of receipt of the institution’s written response to the notice of deficiencies, or if the Secretary receives no written response, the Secretary shall issue a decision on whether to terminate the institution’s participation in SARA. The Secretary’s decision to terminate an institution’s participation in SARA may be reviewed under Regulation .09 of this chapter. If the Secretary issues a decision to deny an institution’s application to participate in SARA, to deny its renewal application under SARA, or to terminate its participation in SARA, the president of the institution may, within 10 days of issuance of the Secretary’s decision, notify the Commission that the institution seeks the Commission’s review of the Secretary’s decision. If the president of the institution does not notify the Commission that it seeks review of the Secretary’s decision within 10 days of issuance of the decision, the decision shall be final. Within 30 days of notifying the Commission that the institution seeks review of the Secretary’s decision, the president of the institution, in writing: Shall submit to the Commission the grounds upon which the institution objects to the Secretary’s decision; and May request a hearing before the Commission. Within 30 days of receipt of the institution’s written statement, the Secretary shall issue a written statement setting forth the reasons supporting the Secretary’s decision. If the institution has requested a hearing, within 60 days of issuance of the Secretary’s written statement in support of the Secretary’s decision, the Commission shall schedule a hearing to consider the institution’s objections to the Secretary’s decision. At the hearing, the president of the institution or the president’s designee, and the Secretary or the Secretary’s designee, each shall have 15 minutes, or longer at the discretion of the Chairman of the Commission, to present data and arguments to the Commission regarding the Secretary’s decision. Within 10 working days of the hearing or, if no hearing has been requested, within 60 days of issuance of the Secretary’s written statement in support of the Secretary’s decision, the Commission shall issue an order: Affirming the Secretary’s decision; Reversing the Secretary’s decision; or Remanding the decision to the Secretary for further action as directed by the Commission. The Commission’s order is final, and is not subject to reconsideration by the Commission or review by any other administrative or judicial body. Education Article, §§11-105(u), 11-202, and 11-202.2, Annotated Code of Maryland Effective date: December 21, 2015 (42:25 Md. R. 1545)