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Bestselling Author, Speaker and Executive Coach Fatima Doman has motivated audiences across five continents to leverage their authentic strengths for transformation. One of today’s most influential voices in engagement, well-being, and positive change, Doman is passionate about empowering people for sustainable high performance – at work and in life – by using their own authentic strength. She is a popular speaker on engagement, well-being and positive change. Doman is the Founder of Authentic Strengths Advantage®. Join Doman for her Saturday, September 28 morning keynote sponsored by Great Clips.

We are less than two months away from the 2019 Annual Convention & Expo. Each week, we’ve been sharing a top reason why you can’t miss it. This week, reason #5: 2020: The Race to Change Higher Education panel. How you vote will affect not only your personal future but the future success of your school. Get an in-depth look at the presidential candidates, committee members and prominent lawmakers making the decisions that can affect how you run your business.

Register Now for the 2019 Annual Convention & Expo This year’s AACS Annual Convention & Expo theme is Power of One: Time to Engage.

In addition to updates recent federal and state regulations, you’ll learn best practices in beauty school compliance, and engaging with the media. Learn from other school owners about best practices and tips to streamline your operations. Join us in Las Vegas as we unite to learn, engage, and connect around the Power of One. For a full list of schedule events please click here.

Hotel: MGM Grand

You have two weeks left to take advantage of the AACS discounted group rate for your hotel room. Deadline to book your room is Tuesday, September 3, 2019. Book Now 


Save the Dates!

2020 School Leader Summit & Hill Day

April 6-8, 2020
Washington Hilton Hotel
Washington, D.C. 

CEA & AMP 2020

July 10-13, 2020
The Mirage Hotel & Casino
Las Vegas, Nevada

Additional registration information will be provided at a later date 


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Beauty Changes Lives President Lynelle Lynch and Confessions of a Spa Bunny host India Robinson caught up at ISPA Media Day East 2019, for a conversation about the new Make Your Mark campaign. Lynelle discussed how the campaign is uniting brands while spotlighting the opportunities available to licensed beauty and wellness professionals. Check out the interview here.

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U.S. Department of Education

Distance Education – Further the Department’s July 29, 2019 Federal Register notice regarding the legal effectiveness of the 2016 state authorization rule for distance education, there have been a number of developments and additional guidance from the Department applicable to schools providing online programs. For the latest client alert issued by Duane Morris on the topic, see Duane Morris Alert – Distance Education – State Authorization

August 16, 2019 – the Department of Education published a notice in the Federal Register announcing the modification of the system of records entitled “Common Origination and Disbursement (COD) System.”

August 16, 2019 – the Department of Education published a notice in the Federal Register proposing an extension of the Guaranty Agency Financial Reports information collection system.

October 1, 2019 – Deadline for schools to submit 2020–21 FISAP electronically and mail in the required signature page – see https://ifap.ed.gov/eannouncements/072619FinalFISAPFormInstruDeskRefTechnicalRefDue100119.html

Looking Ahead – 2019 FSA Training Conference. The Federal Student Aid Office has opened registration for the 2019 FSA Training Conference scheduled for December 3 to 6 in Reno, Nevada. The FSA Training Conference is training provided for financial aid professionals by the government for those institutions receiving Title IV funds and is the largest training program in the United States serving the financial aid community. In 2018 more than 2,000 unique schools registered for the conference. Registration is free.

U.S. Congress – Newly Introduced Legislation of Note

H.R. 4193 – To improve Federal student loan disclosures, and for other purposes.
    a. Status: Referred to the House Committee on Education and Labor, 8/16/19
    b. Sponsor: Rep. Donna Shalala (D-FL) 5 Cosponsors

H.R. 4188 – To amend the Higher Education Act of 1965 to establish the Native American Language Vitalization and Training Program
    a. Status: Referred to the House Committee on Education and Labor, 8/16/19
    b. Sponsor: Rep. Gregorio Sablan 3 Cosponsors

Recap of 2019 Private Career Schools Bills

This week’s focus is state bills to impose additional regulations on private career schools. The bills listed below constitute the fourth section of AACS’ compilation of 2019 state bills of interest to member schools.

The bills in this report are color coded. Measure in green have been enacted into law and those listed in red are dead for 2019. Bills in blue have been enacted into law without the apprenticeship provisions detailed in this report.

The text of the bills listed in this report can be found in AACS’ Bill Tracking Portal at:

https://www.billtrack50.com/Public/Stakeholder/Jt1rI23hjU2jC1MOSr6KVA/Embedded

Please do not hesitate to contact me at bnewman@abingdonstrategies.com or by phone at 202-491-5254 with comments or questions.

2019 State Career School Bills 

    State Bills to Establish an 85/15 or 80/20 Rule

New York A2006/S1506 (Education Budget Bills)

Governor Cuomo’s education budget originally contained the “For-Profit College Accountability Act.” This measure would: establish a 80-20 rule for New York State schools; require schools spend at least 50 percent of their revenues “on instruction and learning resources as opposed to recruiting, marketing, and advertising;” require that schools report the salaries of the college presidents and senior leadership, and “prohibit any school leadership from serving on an accreditation board of an organization responsible for oversight of the for-profit college to avert potential conflicts of interest.”

The “For-Profit College Accountability Act” was removed from the state’s budget.

Maryland SB 399/HB464

The originally drafted bill would have established an 85-15 rule for private career schools with an annual income greater than $10 million.

While the 85-15 rule provision was removed prior to passage, the enacted measure requires private career schools – including cosmetology schools – to make the following new disclosures:

  • Placement rate by program, if the school or institution is required by its accrediting agency to calculate a placement rate for the program, or the school or institution, or both, using the required methodology of the accrediting agency;
  • Whether the program satisfies the applicable educational prerequisites for professional licensure or certification in Maryland; and
  • The median earnings of former students of the school or institution who received federal financial aid at 10 years after entering the school or institution, as reported on the College Scorecard, if available.

California AB 1343

AB 1343 would have established an 85-15 Rule, beginning January 1, 2021, for institutions with revenues greater than $2.5 million or require not less than 50 percent of the institution’s revenue dedicated to student instruction. The bill was pulled by its sponsor and is no longer eligible for consideration this year.    

Oregon HB 2976

The bill would establish an 80-20 rule for career schools that collect $1 million or more in annual gross tuition revenue. Career schools below the $1 million threshold would be subject to a 90-10 Rule that includes veterans’ federal tuition assistance.

    State Gainful Employment Bills

California AB 1340

The Introduced bill would have established Gainful Employment based on the debt-to-earnings rates established during the Obama administration.

The current version which is pending in the Senate Appropriation Committee is a data collection and reporting bill. It requires institutions regulated by the Bureau for Private Postsecondary Education (BPPE) to report “individual identifying information, the program the graduate was enrolled in, and specified student loan debt information. The Bureau would then be required to match the data reported by institutions with wage data from the Employment Development Department, as specified. The bill would also require the bureau to make available certain program-level and institution-level statistics regarding the earnings levels of students and student debt burdens.” 

Washington HB 1124

The measure would establish a Gainful Employment metric in Washington State for private career schools, including cosmetology schools, based on debt-to-earnings, and; direct state officials to determine what is considered a passing rate. Accordingly, the measure will subject schools to new student-level data reporting requirements, including data on financial aid awards – which is defined as the amount of federal, state, and institutional loans, grants, or scholarships the student received of which the school is aware. If meaningful debt-to-earnings rates cannot be established for a particular program or school, the workforce training and education coordinating board would be required to make an alternative calculation assessing “earnings in relation to cost of attendance, taking into consideration the length of the particular program.”

    State Spending Limitation Bills

Maine LD 103

The Act requires for-profit colleges to report a significant amount of new information, including the amount of funds spend on “educational instruction,” “advertising” and “executive salaries.”  

More significantly, it states that for-profit colleges must spend at least 50% of their total spending on “instruction” and no more than 15% of total spending on advertising. 

The Act expands the definition of a "for-profit college or university" to include “a postsecondary institution that is regulated by the Department of Education or the State Board of Education, is eligible to participate in federal student aid programs and is operated by a private, for-profit business.” While schools of cosmetology and barbering subject to approval by the Director of the Office of Professional and Occupational Regulation under Title 32, chapter 126 are exempt from Maine Department of Education oversight, the provisions of this bill may be impactful to AACS members who have programs outside of the scope of the Barbering and Cosmetology Licensing Program. (Please note that this information should not be construed as legal advice or as an official interpretation of the Act. It is strongly recommended that Maine school officials contact their state regulator(s) and/or an attorney to determine the applicability of LD 103’s provisions.)  

New York A2006/S1506 (Education Budget Bills)

See above for additional information. “Student instruction" means expenditures for salaries, fringe benefits, professional development expenses, and other payments made to instructors related to classroom instruction.

    State Incentive Compensation Bill

California AB 1345

The bill pending in the Senate Appropriations Committee would establish and revise existing restrictions on career schools – including cosmetology schools – from providing specified financial incentives, compensation, commission, bonus, or payment contingent upon quotas based on securing student enrollments, admissions, financial aid awards, or sales of educational materials.

Members in the News

AACS is working with Plus Communications to better position AACS members to achieve our legislative and regulatory objectives at the federal level, ensuring lawmakers don’t pass misguided legislation that could severely harm our industry.

We need your help to tell the industry’s compelling story and save our industry from the negative consequences of harmful legislation. You can help by donating to help us fund this important public relations campaign, and by sharing stories and testimonials.

To submit a donation, please click here.

To submit a story, please click here.

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