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New Reauthorization Legislation Released by Assemblyman Niello
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AB 2746 Moves Out of Assembly Higher Education On A 7-0 Vote And Moves To Assembly Business & Professions Next Tuesday, April 15th
The Assembly Higher Education Committee, chaired by Anthony Portantino, passed AB 2746 (Niello) out of the committee with a substantial number of amendments. Assembly Member Niello basically had little choice except to agree with the amendments. Mr. Portantino stressed that the bill was a “work in progress” after hearing CAPPS concerns on the amendments.
The following are some of the amendments:
Exemptions: All Regional and Nationally Accredited Institutions who are in “good standing” with USDOE Title IV Financial Aid status will be exempt.
Private Right to Sue: Will be allowed for students who do not suffer actual harm but can identify a “major” violation. This is a major blow to our sector in trying to limit lawsuits based on technical violations with no actual harm to students.
Student Loans: Will be capped at a cost that cannot exceed the cost of the current term of enrollment.
Bureau: Can assess Administrative fines up to $10,000.
Institutions: States that “An Institution shall not… require a prospective student to provide contact information in order to obtain educational program information, including but not limited to tuition and fees, faculty qualifications, and completion & placement rates, from the institution’s internet website.”
Self-Employment: Defined at part-time (17.5 hours) or full-time (32 hours) per week.