State oversight

(a) In general Section 101 (20 U.S.C. 1001) is amended— (1) in subsection (a)— (A) by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; and (B) by inserting after paragraph (2) the following: (3) if providing education through distance education or correspondence in a State in which the institution is not located— (A) meets the requirements of such State for offering postsecondary education; or (B) if the institution is authorized by a State pursuant to an interstate reciprocity agreement— (i) the institution must have fewer than 200 students in such State enrolled annually; (ii) the agreement must allow States to enforce all non-registration and non-fee laws with respect to out-of-State institutions; and (iii) decisions regarding eligibility to participate in the reciprocity agreement and the standards that apply to participating institutions shall be made exclusively by representatives of member State regulatory agencies or State attorneys general offices;; and (2) in subsection (b)(1), by striking paragraphs (1), (2), (4), and (5) of subsection (a) and inserting paragraphs (1), (2), (3), (5), and (6) of subsection (a). (b) Conforming amendments Section 102 (20 U.S.C. 1002) is amended— (1) in subsection (a)(2)(A), by striking section 101(a)(4) each place the term appears and inserting section 101(a)(5); (2) in subsection (b)(1)— (A) in subparagraph (B), by striking paragraphs (1) and (2) of section 101(a) and inserting paragraphs (1), (2), and (3) of section 101(a); and (B) in subparagraph (C), by striking paragraph (4) of section 101(a) and inserting paragraph (5) of section 101(a); and (3) in subsection (c)(1)(B), by striking requirements of paragraphs (1), (2), (4), and (5) of section 101(a) and inserting requirements of paragraphs (1), (2), (3), (5), and (6) of section 101(a).