SB 790: Postsecondary education: interstate reciprocity agreements for distance education: out-of-state postsecondary educational institutions.

(1)Existing federal law requires a postsecondary educational institution that offers distance education to students located in a state in which the postsecondary educational institution is not physically located to meet any of that states requirements for it to offer distance education in that state. Existing federal law authorizes a state to participate in an interstate reciprocity agreement to comply with this requirement.

This bill would authorize the Governor Governor, on or before January 1, 2028, to enter into one or more interstate reciprocity agreements for distance education through a compact on behalf of the state upon issuing certain written findings and after certain committees of the Legislature hold a joint hearing on the agreement, as provided. This bill would require the Governor to designate a state agency, department, or office for the implementation of an interstate reciprocity agreement for distance education if the Governor enters into such an agreement, as provided. The bill would authorize postsecondary educational institutions to apply to the designated entity for approval to operate under an interstate reciprocity agreement, as specified.

(2)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 requires an out-of-state private postsecondary educational institution to register with the bureau, pay a fee, and comply with additional delineated requirements. Existing law provides exemptions from the act for, among others, accredited, degree-granting, nonprofit, higher education institutions and degree-granting public higher education institutions.

If the Governor enters into an interstate reciprocity agreement, this bill would subject any public or private entity without a physical presence in this state that offers a degree program through distance education to California students accredited, degree-granting, nonprofit, higher education institutions and degree-granting public higher education institutions to the act unless the entity is approved pursuant to an interstate reciprocity agreement.