BILL NUMBER:  AB 2960
  VETOED	DATE: 09/30/96




To the Members of the California Assembly:

I am returning Assembly Bill No. 2960 without my signature.

This bill would extend the sunset date for the Private Postsecondary
and Vocational Education Reform Act by five years, from June 30, 1997
to June 30, 2002.

This program is at a critical stage of its overall development.  The
Council has done much to rid California of its prior "diploma mill"
status.  However, the Council is now at a point of determining some
fundamental issues with respect to its overall purpose.  Many of the
bad operators have left the state or gone out of business.  Who are
the agencies still operating that are concerned about their
livelihood?  Quite a few, to judge by the mail to me regarding this
legislation.  However, and I think importantly, there has been little
or no suggestion made in the correspondence to date that the Council
should be eliminated.  Most of the concern has dealt with two
issues: (a) the level of the fees required for compliance and being
able to stay in business, and (b) the manner in which the staff of
the Council carry out their responsibilities.

With respect to the first, the larger, more capitalized schools do
not have the same problem as the smaller schools that operate on a
much smaller margin.  We should do all we can to have many schools
for the competition they provide.  I would request that this issue be
addressed either in the hearings on the Council that the author has
committed to hold, or in subsequent legislation sent to me next
spring to extend the life of the Council.

Secondly, I am concerned about the number of schools, all of whom are
still operating, that have described a pattern of reprisals and
vindictiveness in dealing with the Council staff.  They are told that
their only recourse is to take their questions and objections to
court.  Surely, the Council itself should provide some administrative
appeal process short of litigation.



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There has been concern expressed about  the message that vetoing this
bill would send.  The statutes do not expire until June 30, 1997.
The author has committed to hold extensive hearings this fall
regarding the need for program reforms.  Until that has occurred, it
would be premature to extend the life of the program for such an
extensive period of time.  A bill can be introduced in January that
would reach me before June 30, 1997.

A final note.  The Council appears to have greatly impacted the
operations of many fly-by-night schools, and should be commended for
doing so.  However, the goal is not to shut down as many schools as
possible.  Rather, it is the responsibility of the Council to protect
students from potential scams, but to make sure there are as many
options as possible available to students.  There comes a point when
we must be careful that we are not reducing supply for the point of
reducing supply.  I would  like to have more assurances that we are
not making it impossible or unreasonably difficult for many small
businesses to operate before I extend the life of the Council.

Cordially,





          PETE WILSON