Bill Summary – FastDemocracy

Legislative Analysis
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EXTEND SUNSET DATE FOR THE HIGHER EDUCATION
                                                                                 http://www.house.mi.gov/hfa
AUTHORIZATION AND DISTANCE EDUCATION
RECIPROCAL EXCHANGE ACT                                                          Analysis available at
                                                                                 http://www.legislature.mi.gov
House Bill 4982 as reported from committee
Sponsor: Rep. Carol Glanville
Committee: Higher Education
Complete to 9-20-23
                                                                       (Enacted as Public Act 127 of 2023)
SUMMARY:
          House Bill 4892 would amend the Higher Education Authorization and Distance Education
          Reciprocal Exchange Act to extend the act’s sunset (expiration date) to September 30, 2029.
          The sunset was last extended by 2017 PA 99,1 which moved it from September 30, 2017, to
          the current September 30, 2023. If no action is taken regarding the current sunset, the act will
          be repealed on that date.
          MCL 390.1697
BRIEF DISCUSSION:
          According to committee testimony, prior to 2015, if an institution of higher education wanted
          to offer a program in multiple states, it would have to go through an application process in each
          state and pay fees for each state where the program was to be offered. The National Council
          for State Authorization Reciprocity Agreements came together to create a unified framework
          to assist college and universities in navigating the process. Michigan has M-SARA, which is
          housed in LEO and assists Michigan’s colleges and universities by streamlining the
          administrative process and minimizing fees.
          All of Michigan’s public universities, along with 23 community colleges and 30 independent
          colleges and universities, have multistate programs. Of all the states, Michigan is only one with
          a sunset provision in its authorizing legislation.
FISCAL IMPACT:
          House Bill 4982 would have a minimal fiscal impact on public universities and community
          colleges. Fifteen Michigan public universities and 22 Michigan public community colleges
          participate in the State Authorization Reciprocity Agreement (SARA), according to the
          National Council for State Authorization Reciprocity Agreements. As the bill would extend
          the sunset date, institutions would continue to receive revenue generated by students
          participating in distance education. If the sunset were allowed to expire, reciprocity agreements
          could become more difficult to participate in, adding additional expenses for colleges and
          universities, and it could lead to the loss of revenue if distance education reciprocity
          agreements could not continue.
1
    See https://www.legislature.mi.gov/documents/2017-2018/billanalysis/House/pdf/2017-HLA-0260-CF453113.pdf
House Fiscal Agency                                                                               Page 1 of 2
       Under the program, in-state institutions pay LEO a $2,000 application fee, an initial
       authorization fee of $2,000, and then an annual renewal fee of $2,000. Out-of-state institutions
       that wish to offer distance education within the state pay LEO a $5,000 application fee, an
       authorization fee of $5,000, and a $5,000 annual renewal fee.
        The application, authorization, and renewal fees collected under the act are directed under
        statute to cover expenses for LEO in providing administrative services related to the
        agreements. If the sunset were not extended, LEO could no longer collect fees from both in-
        state and out-of-state colleges and universities, nor could it negotiate on behalf of in-state and
        out-of-state colleges and universities for distance education agreements. In FY 2021-22, LEO
        collected $389.9 million in revenues for the program and had expenses of $368.4 million.
        Without the sunset extension provided for under the bill, LEO would no longer be authorized
        to offer this service for Michigan colleges, universities, and community colleges after
        September 30, 2023.
POSITIONS:
        A representative of the Michigan Association of State Universities testified in support of the
        bill. (9-20-23)
        The following entities indicated support for the bill (9-20-23):
           • Central Michigan University
           • Michigan Community College Association
           • Oakland Schools
                                                            Legislative Analyst: Josh Roesner
                                                               Fiscal Analysts: Perry Zielak
                                                                                 Viola Bay Wild
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                                        HB 4982 as reported   Page 2 of 2
Statutes affected: 
House Introduced Bill: 390.1697
As Passed by the House: 390.1697
As Passed by the Senate: 390.1697
House Concurred Bill: 390.1697
Public Act: 390.1697
House Enrolled Bill: 390.1697