Legislative Analysis
Phone: (517) 373-8080
REMOVE SUNSET FROM 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 5147 as reported from committee
Sponsor: Rep. Carrie Rheingans
Committee: Higher Education
Complete to 5-9-24
SUMMARY:
House Bill 5147 would repeal section 7 of the Higher Education Authorization and
Distance Education Reciprocal Exchange Act. This would remove the act’s current sunset
(expiration date) of September 30, 2029, which was instituted by 2023 PA 127. 1
By removing this sunset, the bill would have the effect of no longer requiring the legislature
to periodically reauthorize the act by extending the date when the act would be repealed.
MCL 390.1697 (repealed)
BACKGROUND:
As a condition of membership in the National Council for State Authorization Reciprocity
Agreements (NC-SARA), states are required to have authorizing legislation that allows
their colleges and universities to participate. As a condition of participation, the colleges
and universities in the 49 member states pay a singular fee to SARA and then go through
a regional compact (for Michigan, that is the Midwest Higher Education Compact) to
become authorized to administer distance learning programs in cooperating states. If a state
stops participating in SARA, then their colleges and universities would need to pay state-
by-state fees.
The removal of the sunset provision from Michigan’s authorizing legislation would mean
that colleges and universities in the state would no longer have to periodically petition the
legislature to extend that sunset in order to avoid incurring additional costs for conducting
distance learning programs.
FISCAL IMPACT:
House Bill 5147 would have a minimal fiscal impact on the state. The Department of Labor
and Economic Opportunity would continue to collect application and authorization fees
from participating colleges and universities that cover the administrative expenses in
overseeing the reciprocal program agreement. The sunset removal would allow this
1
http://legislature.mi.gov/doc.aspx?2023-HB-4982
House Fiscal Agency Page 1 of 2
structure to remain in place for as long as colleges and universities were interested in
participating.
POSITIONS:
A representative of the Michigan Association of State Universities testified in support of
the bill. (1-24-24)
The following entities indicated support for the bill (1-24-24):
• Department of Labor and Economic Opportunity
• Central Michigan University
• Michigan Community College Association
• Michigan Independent Colleges and Universities
Legislative Analyst: Josh Roesner
Fiscal Analyst: Perry Zielak
■ 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 5147 as reported Page 2 of 2

Statutes affected:
House Introduced Bill: 390.1697
As Passed by the House: 390.1697