[OERCommittee] FW: [SPARC OE Forum] Re: Potential rule changes from US Department of Education eliminating IA/EA?

Thu Jan 11 15:40:23 UTC 2024

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From: Nicole Allen <nicole at sparcopen.org<mailto:nicole at sparcopen.org>>
Sent: Friday, January 5, 2024 6:24 PM
To: Sheri Prupis <sprupis at vccs.edu<mailto:sprupis at vccs.edu>>
Cc: Brandon Board <bboard at waubonsee.edu<mailto:bboard at waubonsee.edu>>; cccoer-advisory at googlegroups.com<mailto:cccoer-advisory at googlegroups.com>; oeforum at sparcopen.org<mailto:oeforum at sparcopen.org>; Katie Steen <katie at sparcopen.org<mailto:katie at sparcopen.org>>
Subject: [SPARC OE Forum] Re: Potential rule changes from US Department of Education eliminating IA/EA?

Likely not for that specific reason, but you’re right to point out the potential loophole. While the Department’s proposal is a big step to address the transparency and access issues, I agree that an exception for when "the institution is the only option" could be exploited. For example, the publishing industry has previously employed tactics like "custom cover" editions of popular textbooks so that they can limit sales to only one institution.

For those interested in the specifics, the current regulatory language can be found at 34 CFR 668.164(c)(2)<https://urldefense.com/v3/__https:/www.ecfr.gov/current/title-34/part-668/section-668.164*p-668.164(c)(2)__;Iw!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZsaJc_1y$> and (m)<https://urldefense.com/v3/__https:/www.ecfr.gov/current/title-34/part-668/section-668.164*p-668.164(m)__;Iw!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZt4K66sm$>. The Department’s proposal is to remove (c)(2)(i), and we recommend removing (c)(2) in its entirety to avoid any loopholes and ensure that students are given the right to opt-in in all cases. For further reading, check out this paper<https://urldefense.com/v3/__https:/www.defendstudents.org/peer/2023-4-3-PEER-Returns-Textbooks-FNL.pdf__;!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZjYMYQyw$> from the Postsecondary Equity & Economics Research Project, which provides a deeper legal analysis.

On Jan 5, 2024, at 4:38 PM, Sheri Prupis <sprupis at vccs.edu<mailto:sprupis at vccs.edu>> wrote:

if the institution is the only option for students to access the books or supplies.

Students can only use their financial aid at the bookstore – not with other vendors.  Does this make it “the only option for students” and therefore, still allows for colleges to add the cost of inclusive access to tuition and fees?

SHERI

Sheri L. Prupis, Ph.D.

Director, Teaching & Learning with Technology
Virginia Community Colleges
300 Arboretum Place, Suite 200
Richmond, VA 23236
(o) 804-819-4797 (google) 812-757-4374

Level Up Your Future Now
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From: cccoer-advisory at googlegroups.com<mailto:cccoer-advisory at googlegroups.com> <cccoer-advisory at googlegroups.com<mailto:cccoer-advisory at googlegroups.com>> On Behalf Of Nicole Allen
Sent: Friday, January 5, 2024 4:32 PM
To: Brandon Board <bboard at waubonsee.edu<mailto:bboard at waubonsee.edu>>; cccoer-advisory at googlegroups.com<mailto:cccoer-advisory at googlegroups.com>; oeforum at sparcopen.org<mailto:oeforum at sparcopen.org>
Cc: Katie Steen <katie at sparcopen.org<mailto:katie at sparcopen.org>>
Subject: Re: Potential rule changes from US Department of Education eliminating IA/EA?

You don't often get email from nicole at sparcopen.org<mailto:nicole at sparcopen.org>. Learn why this is important<https://urldefense.com/v3/__https:/aka.ms/LearnAboutSenderIdentification__;!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZrjLVso0$>
Hi everyone,

SPARC has been monitoring this new development and happy to share more background. The Department of Education has started a negotiated rulemaking process to review several areas of higher ed regulations, including a section called "Cash Management." This section includes the provision adopted in 2016<https://urldefense.com/v3/__https:/www.defendstudents.org/peer/2023-4-3-PEER-Returns-Textbooks-FNL.pdf__;!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZjYMYQyw$> permitting institutions to include the cost of books and supplies in tuition and fees without student authorization, which opened the door to the proliferation of the inclusive access<https://urldefense.com/v3/__http:/inclusiveaccess.org/__;!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZqNK003g$> textbook billing model.

As one of its updates to the Cash Management regulation<https://urldefense.com/v3/__https:/www2.ed.gov/policy/highered/reg/hearulemaking/2023/program-integrity-and-institutional-quality-session-1-issue-paper-cash-management-final.pdf__;!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZj-_qjrg$>, the Department has proposed eliminating the books and supplies provision due to concerns over transparency and student choice—concerns which have long been echoed by student and consumer advocates. SPARC is supportive of the Department’s proposal and included it as our primary recommendation in the 2023 public comment period. While the proposal would not actually eliminate inclusive access programs, it would impact how many are currently implemented. For example, programs may shift to being opt-in (rather than opt-out) so that course materials aren’t automatically billed without student authorization.

Here is the Department’s description of the proposed change:

Eliminate the provision allowing institutions to include the cost of books and supplies as part of tuition and fees (§ 668.164(c) and (m)). Current regulations permit schools to automatically charge students for books and supplies as part of tuition and fees, without student authorization, even when the materials can be obtained from a source other than the institution. The regulations permit these charges if the school has a contract with a third-party publisher or retailer, offers the books “below competitive market rates,” and gives students a way to opt out, so long as the student can obtain the books and supplies by the seventh day of the payment period. The Department is concerned that lack of disclosure and transparency limits students' ability to find less expensive materials or assess if their school is offering the most affordable arrangement. Under the proposal, we would maintain the allowance for including books and supplies in tuition and fees when institutions demonstrate there is a compelling health or safety reason, or if the institution is the only option for students to access the books or supplies.

Monday’s hearing is only the beginning of a long process that will play out over many months. SPARC will be in attendance at the hearing and will keep the community informed of opportunities to weigh in. Please feel free to contact me if you have any questions or hear additional discussion about this on your campuses.

Cheers,
Nicole

Nicole Starr Allen
Director of Open Education | SPARC<https://urldefense.com/v3/__https:/sparcopen.org/__;!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZlvIxlhY$>
1201 Connecticut Ave NW, #608
Washington, DC 20036 USA
nicole at sparcopen.org<mailto:nicole at sparcopen.org>
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On Jan 5, 2024, at 2:53 PM, Brandon Board <bboard at waubonsee.edu<mailto:bboard at waubonsee.edu>> wrote:

Hi everyone,

I'm aware that this doesn't exactly fit with the focus of this listserv, but it seems relevant enough since IA/EA programs are often viewed as being in conflict with Open Education/OER efforts.

One of our deans received a (rather panicked) email from a publisher representative this morning regarding a potential rule change being considered by the Department of Education:
In preparation for the U.S. Dept. of Education’s negotiated rulemaking beginning Monday, Jan. 8th, to review the current education code on Cash Management, which allows for institutions to charge student accounts for course materials as part of tuition and fees (also known as Inclusive Access, Equitable Access, First Day, Complete, AutoAccess, etc.), the Dept. release proposed language which essentially eliminates the ability for institutions to continue to run these programs as is. Instead, the proposed language would only allow for a similar program when institutions demonstrate a health or safety reason for including books and supplies in tuition and fees or if the institution is the only option for students to access the supplies or course materials.
The proposed rule changes can be seen at the Department of Education's issue paper, linked here<https://urldefense.com/v3/__https:/www2.ed.gov/policy/highered/reg/hearulemaking/2023/program-integrity-and-institutional-quality-session-1-issue-paper-cash-management-final.pdf__;!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZj-_qjrg$>.  Additionally, the rulemaking sessions (beginning next week) are open to the public, including 30 minutes devoted to public comments:

January 8: Cash Management Negotiations on Agenda

     *   10:00am-4:00pm – Negotiations – Register<https://urldefense.com/v3/__https:/linkprotect.cudasvc.com/url?a=https*3a*2f*2fcvent.me*2fq8g74M&c=E,1,6_9gCRHi0pijDis9TKrDfG0l0WKiFYzVpuxRBHvCeHlSbJggHGW7-ia5kQPi4f9i5qicBtggg-5inuIRHoH2QGYBERIawhcyQP0ttfBpHviRfvsMrewBPj7uEQ,,&typo=1__;JSUlJQ!!DZ3fjg!8sxV3b9jaGJtDaJG53qtprBp94DlNa_onaCEJ2IhEmIV8hsP7drTn_AVmV30tHbexLAxOTxVsyrpZgXdMOT2$> to Watch Zoom link
     *   The last 30 minutes of the session will be reserved for public comment (3:30-4:00pm EST)
     *   Request for Public Testimony Due at 12:00pm EST on Monday, January 8 to negreghearing at ed.gov<mailto:negreghearing at ed.gov>; requires speaker name and organization.
     *   The Department will provide additional information to commenters on how/when to log in to the meeting as a speaker.

Today's email was the first I had heard of this potential shift.  Is anyone else aware of this?  Does anyone (who's more informed on these issues than I am) have thoughts to share?

Thanks,
Brandon

Brandon Board
Digital Services Coordinator
Waubonsee Community College Libraries
630.466.6643

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