Last year, the regulation of online program managers (OPMs) was a focus of the Biden administration. But states also got into the mix. In 2024, Minnesota became the first state to pass a law creating guardrails for contracts between colleges and OPMs. Now, another state is making moves to regulate “unaccredited online program managers:” Ohio.

The proposed budget legislation (included in H.B. 96), which targets OPMs that “provide instruction,” comes on the heels of Eastern Gateway Community College’s controversial closure last year and would require institutions to disclose any unaccredited OPMs that meet the definition and create requirements for new contracts.   

What’s in the Ohio Bill?

H.B. 96, the state’s biennial budget bill, includes language that would require both private and public institutions to annually report to the state’s chancellor of higher education any unaccredited OPMs that contracted with to provide instruction to students. Further, institutions that intend to enter into a contractual agreement with such an entity would be required to:

  • Provide the state’s chancellor with all information concerning the agreement.
  • Receive prior approval from the chancellor before entering into the agreement.
  • Include in the agreement a provision that requires the institution or school to maintain responsibility for, and oversight of, the academic program.
  • Notify students which parties are providing services under the agreement.
  • Include in the agreement a provision that allows the chancellor to invalidate the contract if it is found to be out of compliance.

The inclusion of the language in the initial budget bill signals that this is a priority for the state and the Governor’s Office. Our team will be following this legislation closely and continue to track other state and federal policy efforts related to OPMs.

This article is sourced from Whiteboard Notes, our weekly newsletter of the latest education policy and industry news read by thousands of education leaders, investors, grantmakers, and entrepreneurs. Subscribe here.