SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE BILL NO. 64
As Recommended by Senate Committee on
Education

Brief*
SB 64 as amended, would amend the Kansas Private
and Out-of-State Postsecondary Education Institution Act
(Act) to clarify the State Board of Regents’ (Board) authority
over private and out-of-state institutions.

Certificate of Approval Application
The bill would allow an institution currently exempt from
the Act to apply to the Board for a certificate of approval if it is
required for the institution to be eligible to receive federal Title
IV student financial aid. Any institution that applied for and
received a certificate of approval would be subject to the
jurisdiction of the Board. The institution could return to
exempt status by not renewing the certificate of approval.
The bill would require a certificate of approval be issued
to the owner of an institution, and such a certificate would not
be transferable. If the institution has a change of ownership
due to the death of the owner, a court order, or the operation
of law, the new owner would be required to immediately apply
for a new certificate of approval. If a change of ownership
occurs for any other reason, the new owner would be
required to apply for a new certificate of approval 60 days
prior to the change of ownership. The Board would be
allowed to adopt rules and regulations to ensure an orderly
transition to a new owner, including requirements regarding
the maintenance of all student records.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 The bill would require a court-appointed receiver of an
institution with a certificate of approval to provide the Board
with notice of appointment and copies of all documents
required from the receiver by the court. The receiver would be
required to comply with the provisions of the Act.
The bill would allow the Board to assess a civil fine
against an institution for violations of the Act. For the first
violation, the fine would be limited to up to 1.0 percent of the
institution’s tuition revenue, with a minimum fine of $125 and
a maximum fine of $15,000. For subsequent violations, the
fine would be limited to up to 2.0 percent of the institution’s
tuition revenue, with a minimum fine of $250 and a maximum
fine of $20,000. These fines would be subject to judicial
review.

Definitions
The bill would amend the definition of “distance
education,” “out-of-state postsecondary educational
institution,” “owner of an institution,” “physical presence,” and
“private postsecondary educational institution.” The bill would
also add a definition for “provisional certificate,” which would
mean a certificate of approval that can be granted to a
degree-granting institution that is not yet accredited but is
seeking to establish a physical presence in Kansas.

Exempt Courses and Institutions
The bill would amend law exempting certain types of
education and certain institutions from the provisions of the
Act. The bill would exempt education offered as a review
course designed solely to prepare students for graduate or
professional school entrance exams or professional licensure
exams. Institutions actively regulated by another agency
under another statute would also be exempt and receive an
affirmative approval to operate in Kansas. The bill would also
list the institutions exempted from the Act:

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 ● Baker University, Baldwin City;
● Barclay College, Haviland;
● Benedictine College, Atchison;
● Bethany College, Lindsborg;
● Bethel College, North Newton;
● Central Baptist Theological Seminary, Kansas City;
● Central Christian College of Kansas, McPherson;
● Cleveland University–Kansas City, Overland Park;
● Donnelly College, Kansas City;
● Friends University, Wichita;
● Hesston College, Hesston;
● Kansas Christian College, Overland Park;
● Kansas Wesleyan University, Salina;
● Manhattan Christian College, Manhattan;
● McPherson College, McPherson;
● MidAmerica Nazarene University, Olathe;
● Newman University, Wichita;
● Ottawa University, Ottawa;
● Southwestern College, Winfield;
● Sterling College, Sterling;
● Tabor College, Hillsboro; and
● University of Saint Mary, Leavenworth.

Rules and Regulations, Standards
The bill would require the Board to adopt rules and
regulations governing the closure of any institution subject to
the provisions of the Act. These may include notice
requirements, teach-out plans, maintenance of academic
records, refund requirements, and transcript requests.
Additionally, the bill would require degree-granting institutions
that are not yet accredited to make progress toward
accreditation. Once accreditation is achieved, an institution
would be required to maintain accreditation. The bill would
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also allow the Board to set additional standards for
institutions that receive federal Title IV student financial aid,
including requiring audited financial statements.

Physical Presence of Institution in Kansas
The bill would prohibit an institution from establishing a
physical presence in Kansas without obtaining a certificate of
approval from the Board.

Notification Requirement and Provisional Certificate of
Approval
The bill would require any institution planning on
opening a branch campus in Kansas to notify the Board of its
intent at least 60 days prior to the opening of the branch
campus.
The bill would allow the Board to issue a provisional
certificate to a degree-granting institution that is not yet
accredited and wishes to establish a physical presence in
Kansas. The provisional certificate could be renewed
annually as long as the institution continues to progress
toward accreditation. The bill would require an institution with
a provisional certificate to submit to the Board a plan for
achieving accreditation and quarterly updates on the
institution’s progress toward accreditation. The bill would also
allow the Board to adopt rules and regulations imposing
additional surety bond requirements for the indemnification of
any student for any loss suffered as a result of a failure to
achieve full accreditation.

Certificate of Approval Minimum Standards
The bill would add the following to the list of minimum
standards an institution must meet to be awarded a certificate
of approval:

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 ● An institution would not be allowed to award a
certificate or degree based solely on the payment
of tuition or fees, credit earned at another
institution, credit for life experience, testing out, or
research and writing;
● An institution would not be allowed to award an
honorary degree if they do not award that same
degree and would not be allowed to charge a fee
for an honorary degree;
● An institution would be required to maintain
adequate financial records, which would require
financial aid information and loan default rates for
institutions receiving federal Title IV student
financial aid;
● An institution would be required to protect students’
personally identifiable information and to promptly
address any breach of that information; and
● An institution would be required to publish
graduation rates, placement rates, and loan default
rates as required by the Board.
Certificate of Approval Renewal
The bill would state an application for the renewal of a
certificate of approval would be deemed late if it is not
submitted at least 60 days prior to the expiration of the
institution’s certificate. When an application for renewal is
deemed late, the Board may require the institution to begin
the closure procedure. The bill would also require any
institution that is closing, either voluntarily or involuntarily, to
follow the closure requirements until notified by the Board that
all requirements are satisfied.


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Board Refusal to Issue Certificate of Approval and
Appeal Process
The bill would update and clarify language regarding
refusals by the Board to issue a certificate of approval and
the process to request a hearing to contest such a refusal.

Conditional Certificate of Approval
The bill would allow the Board to condition a certificate
of approval if the Board has reasonable cause to believe
additional information is necessary, a violation of the Act
occurred, or it is in the students’ best interests for the
institution to continue operating while completing closure
requirements. The conditions imposed by the Board may
include reporting requirements, performance standard
requirements, securing new or additional bonds, limiting the
period of time to operate during change or ownership, or for
the purpose of teaching out students. The Board may require
an institution with a conditional certificate of approval to
suspend or cease institutional activities, including enrolling
students and advertising or delivering certain classes or
programs. The Board-imposed conditions would remain in
effect until all the circumstances causing the conditional
status are corrected and the Board has completed all reviews
related to the institution’s conditional status.

Revocation of Certificate of Approval
The bill would amend language related to the revocation
of certificates of approval. The bill would prohibit any
institution that has had a certificate of approval revoked from
applying for a new certificate for 12 months after the final
order of revocation. After that 12-month period, an institution
could apply for a certificate of approval only if the Board
agrees the institution has cured all deficiencies. Prior to
revoking an institution’s certificate of approval, the Board
would be required to give written notice to the holder of the

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certificate. Such written notice must include the grounds for
the revocation and notification that the institution may request
a hearing on the revocation of the certificate of approval. If a
hearing is requested, it must be conducted within 30 days
after the written notice was sent.

Requirements of Institution and Employees
The bill would require an institution, including its officers,
agents, representatives, and employees, to comply with the
provisions of the Act and any rules and regulations adopted
by the Board, including, but not limited to, the protection of
students’ personally identifiable information.

Prohibited Actions under the Act
The bill would prohibit the use of fraud or
misrepresentation to obtain a certificate of approval. The
Board would be allowed to revoke or condition a certificate of
approval for any violation of the Act.

Civil Fines
The bill would increase the maximum civil penalty for an
intentional violation from $5,000 to $20,000.

Statewide Data Collection
The bill would specify an institution would be in violation
of the Act for failure to submit complete and accurate data on
a timely basis when requested by the Board.

Technical Amendments
The bill would make technical amendments.

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Background
The Senate Committee on Education introduced the bill
at the request of the State Board of Regents (Board).
[Note: Except for its inclusion of an expanded definition
of “physical presence,” SB 64 is identical to 2020 SB 354, as
amended and passed by the Senate.]

Senate Committee on Education
In the Senate Committee hearing, proponent testimony
was provided by representatives from the Board and the
Kansas Independent College Association.
No neutral or opponent testimony was provided.
The Senate Committee recommended the bill be placed
on the Consent Calendar.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Board indicates the bill could
increase fines from civil penalties that are remitted to the
State General Fund, but a precise estimate cannot be
determined. Additionally, the Board anticipates no additional
fee revenue from enactment of the bill, since no new
institutions would be brought under the scope of the Act by
the bill. Any fiscal effect associated with enactment of the bill
is not included in The FY 2022 Governor’s Budget Report.
Postsecondary education; State Board of Regents; out-of-state; public school;
private school; regulations


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Statutes affected:
As introduced: 74-32, 76-711
Enrolled: 74-32, 76-711