Present law authorizes the Tennessee higher education commission to collect annual fees from an institution approved by the commission for participation in the State Authorization Reciprocity Agreement Act ("Tennessee SARA Institution"), based on full-time enrollment and commensurate with the costs of administering the State Authorization Reciprocity Agreement Act ("SARA"), with limitations upon such fees. This bill replaces this provision, providing, instead, that while the commission is still authorized to annually collect fees from each Tennessee SARA institution based on full-time enrollment and commensurate with the costs of administering SARA, the commission may set such fees by either:
(1) Defaulting to the fees set for the initial application, annual renewal application, or to other fees assessed by the National Council for State Authorization Reciprocity Agreements ("NC-SARA"), or any successor organization; or
(2) Promulgate rules governing the schedule of fees, including, at a minimum, fees for initial and annual renewal applications.
Further, under this bill, if NC-SARA reduces, waives, or terminates the assessment of fees for participating institutions, then the fees applicable to Tennessee SARA institutions is the same as the fees assessed to such institutions in the prior fiscal year, but only if the commission does not establish the fees by rule, as provided for under this bill. If the commission has promulgated rules governing the schedule of fees, then the fees applicable to Tennessee SARA institutions are the fees established in the commission's rules.
This bill requires the commission to deposit all fees collected pursuant to this bill in the state treasury, to be credited to a dedicated commission account for the administration of this provision. Beginning on July 1, 2025, this bill also requires a Tennessee SARA institution to pay its annual renewal fees by December 1. In addition, this bill requires the commission to submit all reports generated in compliance with NC-SARA to participating Tennessee SARA institutions for informational purposes.

Statutes affected:
Introduced: 49-7-1505