granting institutions. A. As used in this section: 1. “Degree-granting institution” means an institution that 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 their postsecondary educational institutions to out-of-state students. B. All private and out-of-state public degree-granting institutions shall be accredited by 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 training offered by institutions of higher education for the purposes of the Higher Education Act of 1965, as amended. Additionally, for the purposes of consumer protection and to maintain financial eligibility for Title IV funding as described in 34 CFR Part 600, institutions shall be authorized according to the policies and procedures established by the Oklahoma State Regents for Higher Education. These policies and procedures shall be limited to 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, the 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 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 ceases operations; and 3. Be authorized to deny, not renew, or revoke an institution’s authorization if it is found to be in violation 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 institutions participating in a state authorization reciprocity agreement that only conduct activities in Oklahoma that are acceptable under the terms and conditions of the state authorization reciprocity agreement. D. Non-exempt institutions engaged in non-degree granting activities, such as offering certificates and diplomas, shall be subject to the standards administered by the Oklahoma Board of Private Vocational Schools. E. The State Regents shall promulgate rules to implement the provisions of this section.
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