Florida Senate - 2024 SB 1368 By Senator Grall 29-01371-24 20241368__ 1 A bill to be entitled 2 An act relating to online program management services; 3 creating s. 1001.94, F.S.; providing legislative 4 findings; defining the term “online program management 5 services”; providing requirements for such services; 6 prohibiting online program management services 7 providers from engaging in specified activities; 8 requiring the Board of Governors to adopt and 9 implement regulations in collaboration with state 10 universities; providing penalties for violations by 11 online program management services providers; 12 requiring a state university, upon termination of a 13 contract, to notify its board of trustees to terminate 14 any further payment to the online program management 15 services provider and to reallocate such funds for a 16 specified purpose; providing an effective date. 17 18 Be It Enacted by the Legislature of the State of Florida: 19 20 Section 1. Section 1001.94, Florida Statutes, is created to 21 read: 22 1001.94 Online program management services.— 23 (1) The Legislature finds that the protection of student 24 information is vital and that the use of online program 25 management services by state universities must be regulated to 26 ensure the protection of student interests, maintain the quality 27 of education, and ensure that such services align with the 28 performance-based funding metrics of the State University 29 System. Online program management services options are available 30 to state-funded and state-supported institutions, but such 31 services must align with the universities’ commitment to 32 delivering high-quality education. The Legislature further finds 33 that online program management services providers, while 34 providing opportunities for online education to nontraditional 35 students, may engage in practices that are not in the best 36 interest of students and that compromise privacy and deviate 37 from the goals of state-funded and state-supported institutions. 38 (2) For purposes of this section, the term “online program 39 management services” means services, including assisting a 40 university in expanding its online program offerings to increase 41 the number of students it serves, which are performed by a 42 provider that manages online degree and certificate programs for 43 universities. 44 (3) Recruitment policies employed by online program 45 management services providers must comply with this section. 46 Such providers may not do any of the following: 47 (a) Collect tuition outside of a university’s internal 48 processes. All revenues from tuition must be directed to the 49 university through established fiscal processes. 50 (b) Prioritize revenue generation over the best interests 51 of students. 52 (c) Request personal student information and data that may 53 compromise student privacy. 54 (d) Use third-party billing or take control of students’ 55 federal financial aid or information related to such aid. 56 (e) Charge tuition rates higher than the in-state tuition 57 rate for programs offered in collaboration with public 58 universities in this state. 59 (f) Impose an unreasonable cap on total tuition costs. This 60 paragraph is intended to prevent an excessive financial burden 61 on students. 62 (g) Target students who were unable to gain admission to a 63 state university. 64 (h) Deviate from the performance-based funding metrics of 65 the State University System. In addition to the penalties 66 imposed under subsection (4), a provider that violates this 67 paragraph shall forfeit payments received for falsified, 68 invasive, or inappropriate services. 69 (4) The Board of Governors, in collaboration with state 70 universities, shall develop and implement regulations to enforce 71 this section. 72 (5)(a) An online program management services provider that 73 violates this section or any other state law or agency rule or 74 regulation is subject to financial penalties, suspension of 75 collaboration agreements, and termination of its partnerships or 76 contracts with state universities. 77 (b) Termination of a contract with an online program 78 management services provider, due to a violation of this 79 section, results in automatic termination of any payments from 80 the university to that provider. 81 (c) Upon termination of a contract with an online program 82 management services provider, the state university shall notify 83 its board of trustees to terminate any further payment to the 84 online program management services provider and to reallocate 85 such funds to aid in restoring the student information that was 86 compromised by the provider. 87 Section 2. This act shall take effect upon becoming a law.