Long Sought Student Protection in Private Post-Secondary Education Bill Awaits Governor’s Signature

FOR IMMEDIATE RELEASE

September 14, 2009
CONTACT: Michael Tamariz
(916) 319-2044

SACRAMENTO, CA – Assembly Bill 48, authored by Assemblymember Anthony Portantino (D-La Cañada Flintridge), Assemblymember Roger Niello (R-Fair Oaks) and co-authored by Senator Gloria Negrete-McLeod (D-Chino), was approved by the California Legislature on Friday. Once signed by the Governor, this bi-partisan bill will take effect on January 1st of next year. AB 48 re-establishes the Bureau for Private Post Secondary Education in order to provide oversight of private post secondary educational institutions in California. For the past two years, there has been no California regulation or oversight of private for profit and non-profit institutions. Everything from the local barber college to USC has been operating in California free from regulation, standards and oversight. In addition to authorizing the reestablishment of a State Bureau for regulating and approving these schools, AB 48 allows for prudent exemptions of schools such as USC, Stanford and Cal Tech, which is located in the 44th Assembly District. Since the prior legislation authored by Maxine Waters in 1989 expired, countless students have lost precious tuition money, while others have received diplomas and certificates that are not based on any state standard or criteria.

“The current situation is unacceptable. Students need to be protected and the institutions need a fair framework and standards to allow them to provide quality job training, certification and degrees. AB 48 allows good schools to expand at a time when our economy desperately needs to increase job training services and it offers students protections from diploma mills and unscrupulous businesses practices,” said Portantino.

“The protection of students is important. The viability of the institutions that serve the needs of the students is also important. AB 48 strikes a good balance. It protects students in a way that does not overly-burden the schools that provide the education and vocational training necessary to help students aspire to their dreams and aspirations.” said Niello.

“The current system of no oversight or student protections is unacceptable, this bill will give students a guarantee they can complete their educational objectives if the school suddenly closes,” said Senator McLeod

Deregulation has had a significant negative impact on California students since the expiration of the previous law. In March, Californian's learned that promises to students were not being fulfilled by the Wounded Marine Careers Foundation, a Southern California film program charging up to $88,000 per student. In July, a student's pending lawsuit was not considered because the law on which the case was based was repealed. And, in August the Montecito Fine Arts College of Design abruptly shut its doors, leaving nearly 1,200 students without a degree, without their tuition and without recourse.

AB 48 re-establishes the Student Tuition Recovery Fund so that harmed students can recover their tuition. It builds on the successful framework utilized in other states to establish a regulatory structure with strong and effective student protections, meaningful institutional standards, and a sensible workload for the Bureau. The legislation creates a workable transition which will allow the new Bureau to hit the ground running, establish a framework of institutional standards, set forth fair business practices and require important disclosures, and create effective procedures for monitoring and enforcing institutions.

Governor Schwarzenegger has until October 11th to take action on AB 48.