Erwin's bill would add state consumer protections for new short-term Pell-eligible programs

Assemblymember Erwin told the committee AB1534 aims to protect students from costly or low-quality short-term programs now eligible for federal Pell funding, by setting state standards on tuition caps, revenue sharing and transparency for partners.

Manny Rodriguez of the Institute for College Access and Success testified the bill "allows programs to partner with outside entities to provide instruction within federal limits" but insists the state must pair the federal approval process with front-end consumer protections: "The burden should not be placed on students to take financial risk in anticipation of future benefit," he said.

Committee members pressed whether the state may set additional regulations on a federal program; witnesses and the author said states retain authority to adopt consumer-protection rules tied to approval processes. Amendments and a reporting timeline were discussed; the measure was moved and placed on call for further consideration.