Amended in Senate April 8, 2015

Senate Bill No. 634

Introduced by Senator Block

February 27, 2015

An act to begin insert amend Section 94858 of, and to end insert add begin delete Section 66027.6 to end delete begin insert Chapter 1.2 (commencing with Section 99010) to Part 65 of Division 14 of Title 3 of, end insert the Education Code, relating to postsecondary education.

LEGISLATIVE COUNSEL’S DIGEST

SB 634, as amended, Block. Postsecondary education: interstate reciprocity agreement.

Under existing law, the segments of postsecondary education in this state include the University of California, the California State University, the California Community Colleges, independent institutions of higher education, and private postsecondary educational institutions.

Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act exempts specified institutions from its provisions, does not apply to private postsecondary educational institutions that do not maintain a physical presence in the state, and is repealed on January 1, 2017. begin insert The act defines “private postsecondary educational institution” for these purposes. end insert

begin delete

This bill would authorize the Governor to enter into an interstate reciprocity agreement for purposes of oversight of postsecondary educational institutions offering postsecondary education in states in which they maintain no physical presence, as specified.

end delete begin insert

This bill would, to the extent authorized by federal law, apply the act to an accredited private entity with no physical presence in this state that offers and awards degrees to the public in this state by means of distance education for an institutional charge if the entity does not participate in a regional state authorization reciprocity agreement entered into or recognized by the state pursuant to specified law. The bill would authorize the Department of Consumer Affairs to enter into a regional state authorization reciprocity agreement with other states through a compact on behalf of this state. The compact would provide that an entity regulated in one member state would be able to provide distance education in other member states. The bill would require the bureau, before entering into a compact, to establish a process to ensure that certain educational institutions that are exempt from the act may participate in the state authorization reciprocity agreement without impacting their exempt status. The bill would require the bureau to enter into a memorandum of understanding with certain educational officials for the purpose of establishing and implementing the state authorization reciprocity agreement, as specified. The bill would authorize the bureau to establish a reasonable fee to be paid to the Department of Consumer Affairs by a participating postsecondary institution, as specified.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 94858 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

94858.  

“Private postsecondary educational institution” means
a private entity with a physical presence in this state that offers
postsecondary education to the public for an institutional begin delete charge. end delete
begin insert charge, or, to the extent authorized by federal law, an accredited
private entity with no physical presence in this state that offers
and awards degrees to the public in this state by means of distance
education for an institutional charge if it does not participate in
a regional state authorization reciprocity agreement entered into
or recognized by the state pursuant to Chapter 1.2 (commencing
with Section 99010) of Part 65 of Division 14. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Chapter 1.2 (commencing with Section 99010) is added
to Part 65 of Division 14 of Title 3 of the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 1.2. end insert State Authorization Reciprocity
Agreement

 

begin insert 99010. end insert   

(a) The purpose of this chapter is to provide protection
for California students enrolled in distance education programs
across state boundaries and to encourage the growth and
utilization by in-state students of quality online distance education
offerings by accredited degree-granting colleges and universities.

(b) This chapter provides the mechanism for California colleges
and universities to participate in limited interstate reciprocity
among states, including through the Western Interstate Commission
for Higher Education State Authorization Reciprocity Agreement.

(c) Reciprocity agreements authorized by this chapter are
needed to allow institutions to be authorized to offer distance
education to students in all states and United States territories
because postsecondary education is controlled by the states and
each state charters or licenses colleges and universities separately.

begin insert 99011. end insert   

The following terms, for purposes of this chapter, shall
have the following meanings:

(a) “Accredited” means an institution is accredited by an
accrediting agency recognized by the United States Department
of Education.

(b) “Bureau” means the Bureau for Private Postsecondary
Education in the Department of Consumer Affairs.

(c) “Participating postsecondary institution” means an
institution with a physical presence in this state that has been
approved to operate under a regional state authorization
reciprocity agreement.

(d) “Postsecondary institution” means any accredited,
degree-granting public or private university or college with a
physical presence in this state and any accredited community
college with a physical presence in this state.

(e) “State authorization reciprocity agreement” means a
compact between this state and one or more other states to permit
distance education in a state in which a provider does not have a
regulated physical presence if the provider has a physical presence
and is authorized to operate in another state subject to the
agreement.

begin insert 99012. end insert   

(a) The Department of Consumer Affairs may enter
into a regional state authorization reciprocity agreement with
other states through a compact on behalf of this state.

(b) Before entering into a compact authorized by subdivision
(a), the Bureau shall establish a process to ensure that educational
institutions exempt from the California Private Postsecondary Act
of 2009 pursuant to Section 94874, may participate in the state
authorization reciprocity agreement without impacting their exempt
status.

(c) For the purposes of establishing and implementing the state
authorization reciprocity agreement, the Bureau shall enter into
a memorandum of understanding with the President of the
University of California, the Chancellor of the California State
University, the Chancellor of the California Community Colleges,
and the presidents of the independent California colleges and
universities as represented by the state association representing
the largest number of those members. This memorandum of
understanding shall not weaken existing student privacy and
confidentiality protections.

(d) The Bureau may establish a reasonable fee to be paid to the
Department of Consumer Affairs by a participating postsecondary
institution pursuant to this section. The amount of the fee shall be
established to recover designated expenses incurred by the
Department of Consumer Affairs in administering the provisions
of this section.

end insert

begin delete

SECTION 1.  

Section 66027.6 is added to the Education Code,
to read:

66027.6.  

The Governor is authorized to enter into an interstate
reciprocity agreement for purposes of oversight of postsecondary
educational institutions offering postsecondary education in states
in which they maintain no physical presence, provided that the
agreement ensures that students enrolled in private postsecondary
educational institutions without a physical presence in this state
that are not independent institutions, as defined in subdivision (b)
of Section 66010, are provided at least with a similar level of
consumer protection as would be provided if the institutions were
regulated by the Bureau for Private Postsecondary Education.

end delete