National Air Transportation Association President (NATA) James Coyne addressed California Governor Arnold Schwarzenegger this week in a letter asking that the state reconsider its inclusion of flight training providers in regulations issued by the Bureau of Private Post Secondary Education. These regulations are designed to ensure that students attending private colleges and trade schools are treated fairly and receive a quality education.
Proposed regulations issued by the bureau would require that affected flight training facilities, those with commercial pilot programs, submit an application for approval to operate within the state along with a $5,000 application fee. In order to receive approval to operate, a flight training facility would also have to submit third-party audited financial statements showing that the company has at least a 1:1 asset to debit ratio, remit 0.75% of its annual revenue to the California Student Tuition Recovery Fund, and comply with numerous other administrative and recordkeeping requirements.
In his letter to Schwarzenegger, Coyne points to the differences between the small businesses that provide flight training and the entities that the bureau was designed to regulate.
“One of the most burdensome requirements is that these flight training providers must submit audited financial statements demonstrating a 1:1 asset to liabilities ratio. Like most other small businesses, flight training providers do not have the resources or staff time available to submit to annual audits,” Coyne said. “These providers cannot bear the cost of the[se] new regulations [and] will be forced to leave the state. California cannot afford the cost of imposing unreasonable regulations on such a unique and valuable industry.”
Under the current regulations, affected flight training providers must submit their first quarter Student Tuition Recovery Fund payments by May 17 and must submit their applications for approval to operate, along with the $5,000 fee, by August of this year.
For more information: NATA.aero