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Assembly advances measure authorizing governor to negotiate interstate reciprocity for online postsecondary education
Summary
SB 790 would allow the governor to enter an interstate compact to provide reciprocity for out‑of‑state online postsecondary institutions serving California students, preserving state consumer protections while reducing administrative barriers.
The committee advanced SB 790 (Cabaldon), legislation that would authorize the governor to enter into an interstate compact — including the existing national State Authorization Reciprocity Agreement (NC‑SARA) or another interstate reciprocity framework — to regulate out‑of‑state postsecondary institutions that offer online instruction to California students.
Senator Cabaldon said California is the only state that is not part of NC‑SARA and argued that the current patchwork of individual state authorization requirements disadvantages California institutions and complicates access for students who move across state lines. He said the bill would preserve California’s ability to enforce state consumer‑protection laws while enabling reciprocity that reduces redundant authorization costs and administrative burdens. "By joining that compact, the institution would still be required to register as they are today," the author said, while asserting that reciprocity would expand options for California students and help California institutions compete nationally.
Palo Alto University President Dr. O’Connor described her school’s reliance on synchronous online programs for mental‑health training and said the administrative cost and staff time to secure state authorizations for out‑of‑state students were substantial barriers. Representatives from UC, CSU, Stanford, USC, and independent colleges testified in support. Opponents — including the University of Phoenix and the California Association of Private Postsecondary Schools — said they supported reciprocity in principle but opposed aspects of the bill that would limit California’s ability to accept NC‑SARA’s current terms or that would impose state‑driven modifications. Consumer advocates asked for additional amendments; the author said many suggested changes had been accepted and committed to continued negotiation.
Committee members praised the bill’s efforts to protect California students and institutions, but several members asked the author to continue working with opponents and consumer groups. The bill was moved out of committee as amended to Appropriations.
