| |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| INTRODUCED BY P. COSTA, BELFANTI, CALTAGIRONE, D. COSTA, DENLINGER, GRUCELA, HARHAI, HESS, W. KELLER, MANN, MILLER, PASHINSKI, QUINN, SAYLOR, SCAVELLO, SIPTROTH, VULAKOVICH AND WHEATLEY, APRIL 19, 2010 |
| |
| |
| REFERRED TO COMMITTEE ON EDUCATION, APRIL 19, 2010 |
| |
| |
| |
| AN ACT |
| |
1 | Amending the act of December 15, 1986 (P.L.1585, No.174), |
2 | entitled "An act defining and providing for the licensing and |
3 | regulation of private schools; establishing the State Board |
4 | of Private Licensed Schools; imposing penalties; and making |
5 | repeals," further providing for application for license; |
6 | providing for surety; and abrogating a regulation. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | Section 1. Section 7 of the act of December 15, 1986 |
10 | (P.L.1585, No.174), known as the Private Licensed Schools Act, |
11 | is amended to read: |
12 | Section 7. Application for license. |
13 | (a) General rule.--Before any license is issued to a private |
14 | school, a verified application shall be made, in writing, to the |
15 | board on a form prepared and furnished by the department. The |
16 | application shall require a statement showing: |
17 | (1) The title or name and address of the school or |
18 | classes together with the name of the owners and controlling |
19 | officers. |
|
1 | (2) The general and specific fields of instruction which |
2 | will be offered and the purposes of such instruction. |
3 | (3) The place or places where instruction will be given |
4 | or correction services provided by correspondence schools. |
5 | (4) A specific listing of the equipment and staff |
6 | available for instruction in each program, and for the proper |
7 | administration of correspondence courses of study and for |
8 | maintenance of an adequate correction service. |
9 | (5) The maximum enrollment to be accommodated on |
10 | equipment available in each program. |
11 | (6) The qualifications of instructors, administrators |
12 | and supervisors in each program. |
13 | (7) Financial resources available to equip and maintain |
14 | the school, classes or service. |
15 | (8) An agreement to abide by reasonable service and |
16 | business ethics prescribed by the board. |
17 | (9) For relicensure, statistical data on tuition rates, |
18 | job placement of graduates, percentage of students completing |
19 | programs of study and the level of State support for |
20 | students. |
21 | (10) Any additional information the board may deem |
22 | necessary to enable it to determine the adequacy of the |
23 | program of instruction, the business integrity and related |
24 | matters. An application must be complete for board |
25 | consideration. |
26 | [(b) Financial responsibility.--Each private licensed or |
27 | registered school shall demonstrate to the board that it has |
28 | adequate resources or forms of surety available for the purpose |
29 | of reimbursing unearned tuition due students whenever the |
30 | licensed or registered school ceases to operate. The form of |
|
1 | financial responsibility or surety established by the private |
2 | licensed or registered school shall be subject to approval by |
3 | the board. The board shall promulgate regulations under this act |
4 | establishing the levels and forms of financial responsibility or |
5 | surety that the private licensed or registered school is |
6 | permitted to establish. Until such regulations take effect, the |
7 | surety requirements in existence on the effective date of this |
8 | act shall continue to be enforced.] |
9 | (c) Licensing rules.--The board shall prescribe rules and |
10 | regulations for the licensing of admissions representatives. |
11 | Section 2. The act is amended by adding a section to read: |
12 | Section 7.1. Surety. |
13 | (a) Forms.--A school applying for a license or registration |
14 | or for renewal shall include with its application evidence of |
15 | surety, the purpose of which is to reimburse the unearned |
16 | tuition due students whenever the licensed or registered school |
17 | closes. Schools may select one or more of the following forms of |
18 | surety, in sufficient amount to meet the requirements of |
19 | subsection (b): |
20 | (1) Surety bond. |
21 | (2) Participation in a board-approved private surety |
22 | fund. |
23 | (b) Levels of surety.--Notwithstanding the form of surety |
24 | selected by a school, surety shall be demonstrated to exist at |
25 | the following levels: |
26 | (1) For a prospective licensee applying for an original |
27 | license, the required minimum surety level shall be $100,000. |
28 | (2) For a licensee applying for a renewal license, the |
29 | required minimum surety level shall be $100,000 for licensees |
30 | with gross tuition collected during the previous fiscal year |
|
1 | of $500,000 or less. For licensees with gross tuition |
2 | collected during the previous fiscal year in excess of |
3 | $500,000, the minimum surety level shall be $25,000 for each |
4 | $500,000 or portion thereof of gross tuition collected during |
5 | the previous fiscal year. |
6 | (3) For a licensee applying for a renewal license, the |
7 | maximum surety level shall be $200,000. |
8 | (4) For a registered school, the minimum surety level |
9 | shall be $100,000, with subsequent surety levels to be based |
10 | on tuition generated by residents of this Commonwealth. The |
11 | maximum required amount shall be $200,000. |
12 | (5) The board shall adjust the maximum required amount |
13 | under paragraphs (3) and (4) for inflation. The adjustment |
14 | shall not exceed two times the percentage change in the |
15 | Consumer Price Index for All Urban Consumers for the |
16 | Pennsylvania, New Jersey, Delaware and Maryland area for the |
17 | most recent 12-month period for which figures have been |
18 | officially reported by the United States Department of Labor, |
19 | Bureau of Labor Statistics. When adjusted, the board shall |
20 | publish the adjusted maximum amount in the Pennsylvania |
21 | Bulletin. |
22 | (c) Approval.--The form and level of surety established by a |
23 | school shall be subject to the approval of the board. Board |
24 | approval shall constitute a condition precedent to the granting |
25 | or renewal of a license or registration. |
26 | (d) Alteration by school.--A school may apply to the board |
27 | for alteration of its approved form or level of surety, except |
28 | that the requirements of subsections (a) and (b) shall apply. An |
29 | application for alteration of surety may not take effect until |
30 | approved by the board. |
|
1 | (e) Alteration by board.--The board may direct that a school |
2 | alter its approved form or level of surety with cause. A school |
3 | which fails, within 30 days, to comply with a directive of the |
4 | board may be subject to suspension or revocation of its license |
5 | or registration. |
6 | (f) Maintenance.--Schools shall maintain surety at the |
7 | levels under subsection (b) throughout the period of licensure. |
8 | Section 3. The provisions of 22 Pa. Code § 73.54 are |
9 | abrogated to the extent they are inconsistent with the addition |
10 | of section 7.1 of the act. |
11 | Section 4. This act shall take effect in 60 days. |
|
