S3814

An Act concerning out-of-State institutions of higher education and supplementing Title 18A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

“Out-of-State institution” means a postsecondary educational institution that provides instruction beyond the 12th grade level in programs that satisfy the requirements for a degree at the associate, baccalaureate, or graduate level, and which, with the exception of institutions that have a specialty mission, offers a range of degree programs and that is located within the United States or its possessions and is not incorporated in the State of New Jersey and whose accreditation status in New Jersey is based upon a location outside the State, as well as an institution located outside of the United States or its possessions that is recognized by the appropriate body in the particular country if the institution's requirements for awarding degrees are generally equivalent to those accepted in the United States by an accrediting body recognized by the United States Secretary of Education.

“Secretary” means the Secretary of Higher Education.

2. a. An out-of-State institution seeking to offer a college credit-bearing course, academic degree completion program, or complete academic degree program with a physical presence in the State shall petition the Secretary of Higher Education for licensure.

b. An institution shall provide in its petition:

(1) evidence that the institution is licensed in the state in which the institution is incorporated, and in the case of a petition to offer an academic degree completion program, evidence that the institution is authorized to offer the full degree program in the state in which the institution is incorporated;

(2) the accreditation status of the out-of-State institution;

(3) the mission statement of the institution that defines the scope, purpose, and basic tenets of the institution;

(4) information equivalent to the annual summary sheet required by the regional or national institutional accrediting association for the institution;

(5) the institution’s financial statements and management letters, if issued, for each of the preceding three academic years;

(6) evidence that the institution has access to sufficient financial and operation resources to sustain the proposed course or program;

(7) information on the qualifications of prospective faculty for the proposed course or program that at a minimum meet the faculty qualifications of a comparable course or program in the State;

(8) a description of the selection and review process for faculty teaching in the State;

(9) a catalog and other data that supports the petition;

(10) an impact analysis on existing in-State institutions of higher education, clinical sites and placements, and field sites and placements, as appropriate;

(11) a plan for the ongoing assessment and development of the course or program;

(12) evidence that the proposed curriculum aligns with State professional licensure and certification requirements, as appropriate; and

(13) any other information deemed necessary by the secretary.

c. The impact analysis required in the petition pursuant to paragraph (10) of subsection b. of this section shall include:

(1) the identification and mapping of comparable courses and programs of study in the State;

(2) evidence of unmet need in the State for the proposed course or program that may include evidence of capacity constraints, waitlists, or geographic challenges relating to a comparable in-State course or program;

(3) evidence of unmet demand in the State for the proposed course or program, which may include labor market data, employer needs assessments, or State workforce reports;

(4) for programs requiring clinical placements, sites, and supervisors or field placements, sites, and supervisors, evidence that the proposed program will not displace or reduce the placements, sites, or supervisors available to students enrolled in existing in-State programs; and

(5) if the proposed course or program is duplicative of an in-State course or program, justification for the petition.

3. a. The secretary shall review all licensure petitions submitted pursuant to section 2 of this act.

b. Upon receipt of a petition, the secretary shall distribute a brief summary of the petition’s content, and information on how to access the petition on the website of the Office of the Secretary of Higher Education, to all institutions of higher education in the State. The secretary shall provide an opportunity for public comment on the petition in the 30 days following notification of the petition.

c. The secretary shall send the petition and all comments received on the petition to the New Jersey Presidents’ Council for review and written recommendation to the secretary in such timeframe as is determined by the secretary.

d. The secretary shall, after considering the recommendation of the New Jersey Presidents’ Council, issue a final determination on the petition. The secretary shall license only those institutions that meet all the petition requirements established pursuant to this act and whose proposed offerings:

(1) meet State standards of quality and provide a plan for the ongoing monitoring of student outcomes;

(2) are fiscally viable;

(3) serve a demonstrable need and demonstrate that the proposed course or program will not unduly impact existing in-State programs; and

(4) are in accordance with the most recent comprehensive Statewide plan for higher education developed pursuant to subsection a. of section 14 of P.L.1994, c.48 (C.18A:3B-14), as applicable.

e. A license authorized by the secretary pursuant to this section shall be valid for a period not exceeding three years and may be reauthorized upon demonstration of:

(1) continued need;

(2) compliance with State reporting requirements;

(3) positive program outcomes aligned with State workforce and student needs; and

(4) any other criteria to be determined by the secretary.

f. Licensure by the secretary of an out-of-State institution shall not preclude an in-State institution of higher education from providing a course or program similar to that of the out-of-State institution.

4. a. The secretary shall prepare an annual report on the petitions submitted pursuant to this act. The report shall include:

(1) the total number of petitions submitted, disaggregated by degree level, program discipline, and need for clinical or field placements;

(2) the total number of petitions approved, denied, withdrawn, or approved with conditions;

(3) the basis for a petition denial or conditional approval; and

(4) a summary of the recommendations provided by the New Jersey Presidents’ Council pursuant to section 3 of this act.

b. The report shall be made available for public inspection on the website of the Office of the Secretary of Higher Education and shall be submitted annually to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).

c. Any proprietary information included in a petition submitted to the secretary pursuant to this act shall not be included in the report or otherwise made available to the general public pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.), commonly known as the open public records act.

5. Each out-of-State institution licensed to provide a course or program in the State shall provide an annual report to the secretary that includes:

a. the enrollment and completion data for each course or program offered in the State by the institution;

b. any changes in the curriculum, faculty, or institutional status that occurred since the date of licensure by the State;

c. appropriate measures of student outcomes; and

d. a summary of clinical and field placements arranged by the institution, as applicable.

6. The secretary shall ensure that an out-of-State institution licensed to provide a course or program in the State meets a minimum acceptable level of performance, as determined by the secretary. The secretary may suspend or revoke the institution's license if the secretary determines the out-of-State institution:

a. fails to meet the minimum acceptable level of performance;

b. misrepresents data submitted to the secretary or fails to meet reporting standards; or

c. adversely impacts the access of students enrolled in an in-State institution of higher education to clinical and field placements.

7. The secretary shall adopt, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this act.

8. This act shall take effect immediately.

STATEMENT

This bill requires an out-of-State institution seeking to offer a college credit-bearing course, academic degree completion program, or complete academic degree program with a physical presence in the State to petition the Secretary of Higher Education (secretary) for licensure.

The bill details the specific information that is required to be included in the licensure petition. The bill also requires that an impact analysis of the proposed course or program be included in the petition. The analysis will consider issues such as the unmet demand in the State for the course or program and its impact on clinical placements and supervisor availability to students enrolled in existing in-State programs.

The bill directs the secretary to review all licensure petitions and distribute a brief summary of the petition’s content, and information on how to access the petition on the website of the Office of the Secretary of Higher Education, to all institutions of higher education in the State, and provide an opportunity for public comment. The secretary would then send the petition and all comments received on the petition to the New Jersey Presidents’ Council for review and recommendation to the secretary. Finally, after considering the recommendation of the New Jersey Presidents’ Council, the secretary is required to issue a final determination on the petition. The secretary is directed to license only those institutions that meet all the petition requirements and whose proposed offerings:

· meet State standards of quality and provide a plan for the ongoing monitoring of student outcomes;

· are fiscally viable;

· serve a demonstrable need and demonstrate that the proposed course of program will not unduly impact existing in-State programs; and

· are in accordance with the comprehensive Statewide plan for higher education required under current law, if applicable.

The bill requires the secretary to prepare an annual report on the petitions submitted pursuant to this bill, detailing the number of petitions reviewed, their outcomes, and summarizing recommendations provided by the New Jersey Presidents’ Council.

Under the bill, each out-of-State institution licensed to provide a course or program in the State is required to provide an annual report to the secretary. The report would include certain information on enrollment, program and faculty changes, student outcomes, and clinical and field placements.

The bill directs the secretary to ensure that an out-of-State institution licensed to provide a course or program in the State meets a minimum acceptable level of performance, as determined by the secretary. The secretary may suspend or revoke the institution's license if the secretary determines the out-of-State institution:

· fails to meet the minimum acceptable level of performance;

· misrepresents data submitted to the secretary or fails to meet reporting standards; or

· adversely impacts the access of students enrolled in an in-State institution of higher education to clinical and field placements.

Current regulations promulgated by the Office of the Secretary of Higher Education have established a process for the approval of courses and programs offered in New Jersey by out-of-State institutions. This bill revises that process.