(a) Any institution legally domiciled in a state other than New York State or a United States Territory that seeks to offer any educational credit-bearing post-secondary instruction, courses, or degree programs through distance education to individuals located in New York State shall obtain approval to operate in this State from the department. This includes institutions that are operating in New York State under section 3.56 of the rules of the Board of Regents (permission to operate) that seek to offer distance education programs in this State.

1. (1) Post-secondary institutions that enrolled individuals located in New York State in its distance education programs on or before of the effective date of this Subpart, shall have six months from the effective date of this Subpart to seek and obtain department approval to continue to operate such programs to individuals located in New York State. An extension of the six-month time period may be granted in limited circumstances, at the discretion of the commissioner.

2. (2) All institutions with individuals located in New York State enrolled in its distance education programs on or before the effective date of this Subpart, that have not received department approval by the expiration of the time period in paragraph (1) of this subdivision, must cease enrolling new students, and shall phase-out instruction for students who are currently enrolled in such programs until such students have completed the distance education program in which they are enrolled on the effective date of this section.

   (b) Exemption.

   Any institution that is identified by a member state as participating in SARA is exempt from the application procedures and fees identified in this Part and are instead subject to the SARA policies and standards.