Compliance Requirements (Non-SARA)

Compliance Requirements (Non-SARA)

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Required Approvals Outside of Reciprocity

State Institutional Approval, State Program Approval, & International Approval

State Institutional Approval

Some institutions may choose not to participate in reciprocity through SARA to obtain state institutional approval, are located in a state that is not a member of SARA, or offer an out of state activity that is not subject to SARA policy.

These institutions must comply with any applicable state approval requirements in each state as directed by the state's laws and regulations.

Suggested first steps for compliance:

Determine what activities of the institution occur in a state other than the home state of the institution.
Determine what states the institution wishes to participate in the activities.
Determine whether the activity is regulated in the states in which the institutions wishes to participate in the activity.
Seek appropriate compliance (authorization/registration/exemption/not regulated) from the state.
Check to see if the institution is subject to requirements by other state agencies.

You may wish to review:

State Institutional Approval Quick Chart - Chart to start research of state requirements.
The State Authorization Guide - state by state surveys (formerly SHEEO Surveys)

Program approval - State Professional Licensing Board

The institution must determine whether program approval by the professional licensing board is required in the state where the student participates in activities of the program. This program approval is in addition to institutional approval by the higher education agency of the state (or though reciprocity). Please review the Professional Licensure Topic Area on this website for more information.

International Approvals

Institutions that offer courses and activities outside of the United States should determine if the activity is regulated in the country where the activity occurs. Distance Education may be regulated in some countries. Institutions should understand the many nuances of tax laws and institution oversight when the institution wishes to provide online courses to students located outside of the United States.

Please review the following resources from our colleagues at Hogan Lovells US LLP:

International online programs: Know the pitfalls (July 9, 2018)
Presentation on compliance for international online programs (April 17, 2019)
Doing your homework when offering online programs internationally (March 25, 2020)
International online education programs: A global regulatory perspective (May 19, 2020)
Online Education and Digital Services Tax: A Mexico Case Study (July 1, 2020)

Institutions may wish to seek outside counsel to assist. Here is one option: Education GOES International 2023 Edition service available by Hogan Lovells.

Talking Points - White Paper: Military-Affiliated Students: Managing International Compliance When Duty Calls. Prepared for SAN by our colleagues at Hogan Lovells: Bill Ferreira, Stephanie Gold, and Megan Wilson.

SAN public facing one pager: Global Compliance 101.

SAN members, by membership login, may wish to review SAN created resources:

International Ministries of Education and Data Privacy Laws the contact list for countries worldwide.
A Guide to Higher Education Regulation in Canada (2023)
Canada Approval Quick Chart (new 1/23)
A Guide to Higher Education Regulation in Mexico (new 1/24)
Mexico Approval Quick Chart (new 1/24)

Other Required Approvals

Employment Law Related Interstate Compliance:

Resources:

Employment Law Related State Agencies - contact information for various state agencies per state. (SAN member login required)
Policy Brief- Out-of-State Employment (SAN member login required)

State Secretary of State, Treasury, or Revenue Registration

Some states require out-of-state institutions that offer education or have employees working in their state to register with the State Secretary of State, Treasury, or Department of Revenue in that state. Should the institution be required to register, the institution may be asked to obtain an Agent for Service of Process. This registration process and the requirement of an agent for service is not covered by SARA. SOS! SOS! Secretary of State Compliance Demystified is a helpful white paper to understand the secretary of state compliance process. Institutions should confer with their legal counsel.

SAN Members, by SAN membership login, may wish to review the SAN collated state information updated in January 2022 for Secretary of State information nationwide.

State Department of Taxation

A withholding account may be needed when the entity pays compensation to an employee in the state to deduct and withhold state income tax from the compensation paid to the employee. (institution employee/faculty working from another state)

State Department of Labor

Workers Compensation Insurance for faculty/staff working remotely from another state.

Institutions that employ faculty/staff to work remotely in another state may be required, by the state where the employee is located, to provide workers compensation insurance to the employee. – check with the state as they vary.

Workers Compensation Insurance for Field Placements - Colorado

Colorado requires that the institution ensure that the student has workers compensation insurance if the student is participating in a field placement in Colorado. We will address other states as they become known. Please note that student teaching is exempt from this requirement. Contact information for Colorado can be found here:

Lead agency: Colorado Department of Labor and Employment: https://cdle.colorado.gov/workers-compensation-act
Regulations: C.R.S. 8-40-302(7) - requirements; C.R.S. 8-43-409 – consequences
Contact: Julie Yakes; Julie.yakes@state.co.us; (303)318-8639

Internship Registration Requirements - New Hampshire

New Hampshire requires that programs such as internships, job shadowing, or mentor program have to be approved by the Labor Commissioner when a student is working for practical experience and is not being paid or is being a paid at a sub-minimum rate.