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SENATE FLOOR VERSION
March 1, 2023
SENATE BILL NO. 550 By: Seifried of the Senate
and
Moore of the House
[ higher education - accreditation - policies and
procedures - rules - Revolving Fund - expenditures -
codification - effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 4103 , is
amended to read as follows:
Section 4103. A. As used in this section:
1. “Degree-granting institution” means an institution tha t
offers education leading to an associate ’s degree or higher;
2. “Non-degree-granting activity” means offering education or
training that does not lead to an associate ’s degree or higher; and
3. “State authorization reciprocity agreement” means an
agreement among states, districts , and territories that establishes
comparable standards for providing distance education from t heir
postsecondary educational institutions to out -of-state students.
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B. All private and out-of-state public degree-granting
institutions shall be accredited by a national or regional an
accrediting agency which is recognized by the Secretary of the
United States Department of Education as a reliable authority as to
the quality of education or tr aining offered by institutions of
higher education for the purposes of the Higher Education Act of
1965, as amended. Addi tionally, for the purposes of consumer
protection and to maintain financial eligibility for Title IV
funding as described in 34 CFR Pa rt 600, institutions shall be
authorized according to the policies and procedures established by
the Oklahoma State Regent s for Higher Education. These policies a nd
procedures shall be limited to a complaint process provision,
standards for operation , stipulations for a written enrollment
agreement between the institution and the student and reporting
requirements the minimum necessary to ensure that private and out-
of-state degree-granting institutions that operate in this state by
any modality meet the same standards of academic quality and fiscal
responsibility required for institutions of higher education within
The Oklahoma State System of Higher Education. Beginning with the
2023-2024 academic year, t he State Regents shall:
1. Establish and collect fees annually from applicants for
authorization as necessary to cover the costs of authorization;
2. Require applicants for authorization to submit payment in an
amount established by the State Regents into the Tuition Recovery
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Revolving Fund created in Section 2 of this act, which shall be used
to offset student tuition losses in the event an authorized
institution closes or c eases operations; and
3. Be authorized to deny, not renew, or revoke an institution ’s
authorization if it is found to be in vi olation of the Oklahoma
statutes, it fails to meet the minimum authorization standards
established by the State Regents , or an accrediting agency or other
government entity revokes its approval, which is material to the
continuity of the institution. An institution subject to the
provisions of this paragraph shall be given reasonable notice and an
opportunity to be heard prior to a decision to deny, not renew, or
revoke authorization.
C. The following institutions shall be exempt from this
section:
1. Private institutions participating in the Oklahoma Tuition
Equalization Grant program; and
2. Out-of-state public and private in stitutions participating
in a state authorization reciprocity agreeme nt that only conduct
activities in Oklahoma that are acceptable under the terms and
conditions of the state authorization reciprocity a greement.
C. D. Non-exempt institutions engaged in non-degree granting
activities, such as offering certificates and diplom as, shall be
subject to the standards administered by the Okl ahoma Board of
Private Vocational Schools.
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E. The State Regents shall promulgate rules to implement the
provisions of this section.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4103.1 of Title 70, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma State Regents for Higher Education to be designated
the “Tuition Recovery Revolving Fund”. The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies received by the State Regents from fees
collected pursuant to Section 4103 of Title 70 of the Oklahoma
Statutes. All monies accruing to the credit o f the fund are hereby
appropriated and may be budgeted and expended by the State Regents
for the purpose of offsetting student tuition losses in the event
that an institution authorized pursuant to Section 4103 of Title 70
of the Oklahoma Statutes closes o r ceases operations. Expenditures
from the fund shall be made upon warrants issued by the State
Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
SECTION 3. This act shall become effective July 1, 2023.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health, or safety, an emergency is hereby
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declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
March 1, 2023 - DO PASS