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

Senator Cabaldon's interstate education bill authorizes California to join reciprocity agreements for distance learning programs while maintaining robust consumer protections. The legislation allows the Governor to enter such agreements by 2028 after issuing specific findings and holding joint legislative hearings to ensure state oversight authority remains intact.

The bill establishes a designated state portal entity to implement agreements and oversee participating institutions. Out-of-state schools must apply for approval through standardized processes and meet ongoing compliance requirements, including maintaining policies for catastrophic events and student records protection. The portal entity coordinates with California's higher education systems and the Bureau for Private Postsecondary Education through formal memoranda of understanding.

For consumer protection, the legislation preserves California's ability to investigate complaints, enforce prohibitions against fraud and deceptive practices, and require registration of out-of-state institutions if needed to protect students. Schools must report enforcement actions, accreditation changes, and legal settlements within 30 days. The bureau retains authority to suspend enrollment or revoke registration based on substantial risks to California residents.

The measure modifies existing law to clarify that public and nonprofit degree-granting institutions qualify for exemption from state registration requirements only if approved under a reciprocity agreement. It also updates advertising restrictions and disclosure mandates to encompass distance education programs and unaccredited degrees.