Private postsecondary education.
If enacted, SB 766 will primarily affect private postsecondary educational institutions operating in California. By enforcing enrollment restrictions based on the revenue composition of these institutions, the bill aims to enhance the quality of educational offerings provided to California residents. Institutions that fail to comply with the 90/10 rule will be prohibited from enrolling students, thereby potentially reducing the total number of available educational options in the private sector. This can impact students seeking higher education alternatives beyond traditional public institutions.
Senate Bill No. 766, introduced by Senator Eggman, is aimed at regulating private postsecondary educational institutions in California. The bill seeks to establish a '90/10 Rule,' which mandates that these institutions derive at least 10 percent of their annual revenue from sources other than federal funds to maintain their ability to enroll California residents. This regulation aligns with provisions under the federal Higher Education Act of 1965, which similarly restricts for-profit institutions from relying predominantly on federal financial assistance for their revenue.
Notable points of contention surrounding SB 766 include the implications for students who might be affected by the enrollment limitations imposed on institutions. Critics may argue that this bill could restrict access to education for certain demographics who might rely on for-profit education opportunities, particularly non-traditional students or those seeking specific vocational training. On the other hand, proponents will argue that the bill's goal of ensuring a diverse revenue stream will protect students from institutions that primarily depend on federal funding, potentially safeguarding student interests and enhancing educational standards.