Requires certain institutions of higher education and degree-granting proprietary institutions to submit certain documentation on online program managers to Secretary of Higher Education.
If enacted, S1112 would significantly alter how institutions of higher education manage their finances with OPMs. Institutions will be mandated to disclose their financial interactions with OPMs to the Secretary of Higher Education. This includes the total amounts paid to OPMs, the number of students receiving state financial assistance, and a breakdown of expenditures across various categories such as marketing and instructional services. These reports will be made publicly available, potentially steering institutional practices toward more stringent financial management and enhanced scrutiny of OPM contracts.
Senate Bill S1112 focuses on the regulation of online program managers (OPMs) in the field of higher education. The bill requires institutions of higher education and proprietary degree-granting institutions that engage with OPMs to submit annual expenditure reports detailing the financial activities related to these managers. This move intends to bring greater transparency to financial transactions and enhance accountability in the operations of online educational programs. The bill clarifies that an OPM is an entity contracted to provide services such as marketing, recruitment, admissions, instruction, and support services for online programs.
The bill may encounter resistance from various stakeholders. Proponents argue that these requirements will promote transparency and ensure that institutions are held accountable for the financial resources utilized in online education. However, opponents might view the increased regulation as an unnecessary burden that could stifle the innovative partnerships between institutions and OPMs. Concerns could arise regarding the confidentiality of competitive business practices, as the bill requires institutions to identify any confidential information filed with the Secretary, raising questions about how such information will be protected from public disclosure.