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PA Bulletin, Doc. No. 02-566




[22 PA. CODE CH. 73]

Definitions; Fees

[32 Pa.B. 1844]

   The State Board of Private Licensed Schools (Board), under the authority granted by the Private Licensed Schools Act (act) (24 P. S. §§ 6501--6518), amends §§ 73.1 and 73.151 (relating to definitions; and fees) to read as set forth in Annex A.

   Notice of proposed rulemaking was published at 31 Pa.B. 2017 (April 14, 2001) with an invitation to submit written comments. No public comments were received.

   No changes have been made subsequent to proposed rulemaking.

Description of Final-Form Amendments

   Section 73.1 adds a new definition for ''seminars'' and revises the definition of ''nonresident.''

   Section 73.151(a) prescribes a new fee for initial licensure of schools that only present seminars, and revises fees for biennial licensure or registration of all schools, and licensure of admissions representatives.

   Section 73.151(b) increases the user fees for other services provided by the Board, which services are in addition to the processing and issuance of original or renewal school licenses, registration and admissions representative licenses.


   The Board's current fees are fixed by § 73.151. Section 10 of the act (24 P. S. § 6510) authorizes the Board to increase its fees by regulation if the Board's revenues from fees, fines and civil penalties are not sufficient to meet Board expenditures over a 2-year period.

   The Board recently reviewed its fees and determined that current fees are inadequate to meet anticipated revenue needs. The Board estimates that its expenditures for the biennial period covering Fiscal Years (FY) 2000-01 and 2001-02 will be $1,172,033. In contrast, the estimated revenues under the existing fee structure are $1,044,500.

   The new fees in § 73.151 should raise sufficient revenue to offset the Board's projected expenditures for FY 2000-01 and 2001-02 while maintaining a surplus, projected to be about $259,080 by June 30, 2002, as a cushion against unanticipated expenditures or additional revenue shortfalls.

   The Board last increased its fees on July 1, 1991. At that time, the Board's projections assumed substantial growth in the number of original and renewal licenses, registrations and program applications submitted. The numbers of license, registration, admission representatives and new program applications have decreased since that time and the Board has operated at a deficit in 5 of the 9 preceding fiscal years under the current fee structure. Although the Board has covered previous deficits by drawing on the year-to-year carryover of unused funds, the carryover will be depleted in FY 2001-02, resulting in a negative balance in the Board's budget. At the same time, estimated expenditures will exceed revenue projections. The current staffing level will need to be maintained for the foreseeable future.

   In regard to the inclusion of seminars, an unlicensed school, business or entity that meets the definition of a seminar will be required to submit an original application for licensure or registration and will pay the $750 initial application fee. Licensure will discourage a business or entity from bait and switch advertising or solicitation under the term ''seminar.'' It also will provide protection for the consumer in the areas of advertisements and representation, curriculum standards and qualified instructional staff. The reduced original application fee will benefit smaller schools and businesses presenting only seminars. It will not create an onerous burden for schools seeking initial licensure to offer short-term training courses. This type of school will not be required to submit a lengthy application for initial licensure and will be permitted to offer courses in various locations across this Commonwealth under the revised definition of ''nonresident.'' After 1 year of operation, biennial renewal fees are on an assessed graduated scale based upon gross tuition revenue. The lower end of the graduated scale will benefit smaller schools when their gross tuition revenue collected is less in comparison to already established private licensed schools.

   The fees will meet the anticipated need for additional revenue.

Fiscal Impact

   There is no fiscal impact from the new or modified definitions. If the existing fee structure is not revised, total revenue, combined with current carry-over for FY 1999-00, is expected to be $1,086,293 for the biennial period ending FY 2001-02. The increased fees, together with fees which will not be increased, and the amount carried over from the FY 1999-00 are expected to generate revenues totaling $1,389,320 for the Board for the period ending FY 2001-02. The following table shows how much of the Board's total revenue each fee is expected to generate:

Estimated Number of Fee Payers Biennially Times Amount of Fee

Board ActivityFY 2000-01 FY 2001-02 Est. Revenue
1.  Original School License or Registration 40 × $1,500a $     60,000
40 × $1,500b $     60,000
2.  Biennial School Licensure or Registration
         $0 6 × $1,200a $       7,200
9 × $1,200b $     10,800
         $150--9,999 8 × $1,400a $     11,200
10 × $1,400b $     14,000
         $10,000--49,999 24 × $1,500a $     36,000
20 × $2,200b $     44,000
         $50,000--99,999 25 × $1,600a $     40,000
26 × $2,300b $     59,800
         $100,000--199,999 28 × $1,800a $     90,720
18 × $2,600b $     46,800
         $200,000--499,999 25 × $2,100a $     52,500
24 × $3,000b $     72,000
         $500,000--999,999 17 × $2,400a $     40,800
24 × $3,500b $     84,000
         $1,000,000--1,999,999 18 × $2,800a $     81,200
29 × $$4,100b $   118,900
         $2,000,000 and over 12 × $3,000a $     36,000
21 × $4,400b $     92,400
3.  Admission Representative License 240 × $150a $     36,000
240 × $300b $     72,000
4.  New Program Application 150 × $350a $     52,500
150 × $700b $   105,000
5.  Change of Ownership 10 × $600a $       6,000
10 × $1,200b $     12,000
6.  New School Orientation Seminar 50 × $100a $       5,000
50 × $200b $     10,000
7.  School Site Inspection 40 × $250a $     10,000
40 × $500b $     20,000.
      a--For fees collected July 1, 2000--June 30, 2001.
      b--For fee collected under fee increase July 1, 2001--June 30, 2002.
8.  Estimated Revenue from New Fees $   824,200
9.  Estimated Revenue from Fees not Increase $   565,120
      Total Estimated Revenue $1,389,320
      Total Estimate Expenditure $1,172,033
      Rollover Amount from FY 1999-00 $     41,793
      Surplus for Unanticipated Expenditures or
         Revenue Shortfall
$   259,080

Paperwork Requirements

   The final-form amendments require the Board to alter some of its forms to reflect the new fees. The final-form amendments will create no additional paperwork for the private sector.

Effective Date

   The final-form amendments take effect upon publication in the Pennsylvania Bulletin.

Sunset Date

   The act requires that the Board monitor its revenues and costs on a biennial basis, and revise its regulations as necessary. Therefore, no sunset date has been assigned.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on April 5, 2001, the Department of Education submitted a copy of the notice of proposed rulemaking published at 31 Pa.B. 2017 to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House and Senate Committees on Education for review and comment.

   Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with other documentation when requested. In preparing the final-form rulemaking, the Board considered the comments received by IRRC. IRRC requested for a breakdown of the Board staff time, salaries, associated costs and administrative overhead costs for each fee. A copy of this response is available upon request to the office of the Board. IRRC also requested an explanation of how seminars fit into the definition of ''private licensed school'' in section 2 of the act (24 P. S. § 6502). In preparing this final-form rulemaking, the Board has considered the comments received from IRRC.

   Under section 5.1(d) of the Regulatory Review Act (71 P. S. § 745.5a(d)), on February 13, 2002, this final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on February 21, 2002, and approved the final-form rulemaking.

Contact Person

   The official responsible for information on the final-form amendments is Patricia Landis, Coordinating Secretary, State Board of Private Licensed Schools, 333 Market Street, Harrisburg, PA 17126-0333, (717) 787-4645 or TDD (717) 787-7367.


   The Board finds that:

   (1)  Public notice of the intention to adopt these amendments was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2.

   (2)  A public comment period was provided as required by law and no public comments were received.

   (3)  The adoption of the final-form regulations in the manner provided by this order is necessary and appropriate for administration of the authorizing statute.


   The Board, acting under the authorizing statute, orders that:

   (a)  The regulations of the Board, 22 Pa. Code Chapter 73, are amended by amending §§ 73.1 and 73.151 to read as set forth in Annex A.

   (b)  The Coordinating Secretary of the Board will submit this order and Annex A to the Office of General Counsel and the Office of Attorney General for review and approval as to legality and form as required by law.

   (c)  The Coordinating Secretary of the Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.

   (d)  This order is effective upon final-form publication in the Pennsylvania Bulletin.

Coordinating Secretary

   (Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 32 Pa.B. 1362 (March 9, 2002).)

   Fiscal Note: Fiscal Note 6-272 remains valid for the final adoption of the subject regulations.

Annex A





§ 73.1.  Definitions.

   The following words and terms, when used in this chapter, have the following meaning, unless the context clearly indicate otherwise:

   Act--The Private Licensed Schools Act (24 P. S. §§ 6501--6518).

   Acting director--The individual responsible for assuming the director's duties in the temporary absence of the director.

   Board--The State Board of Private Licensed Schools.

   Branch facility--A school facility whether or not located at the administrative headquarters of a school. A school with one school facility has one branch facility.

   Certificate--A document awarded by a school subject to this chapter upon the successful completion of a particular course.

   Chief executive officer--The person ultimately responsible for all phases of the school operation, plant and program, including the method of instruction, the employment of instructors, the organization of classes, the equipment, the advertising used, the maintenance of proper administrative records and other matters related to the administration of the school. The chief executive officer and the director may be the same person.

   Clock hour--A minimum of 50 minutes of instruction.

   Closure--The situation which results when a school ceases to operate.

   Complaint--A matter that has been reported to the review and recommendation panel under § 73.184 (relating to reporting of potential violations), has been investigated by Board staff and has been found to constitute a violation of the act or this chapter.

   Correspondence--A systematic course or program of nonresident instruction.

   Course--A unit of learning covering specific subject matter.

   Credit hour--A unit of curricular material which normally can be taught in a minimum of 14 clock hours of instruction. For laboratory instruction, a credit hour represents a minimum of 28 clock hours. For shop instruction and practicum experiences, including externship/internship experiences, a credit hour represents a minimum of 42 clock hours.

   Degree--A specialized associate degree awarded by a school with the approval of the Secretary under Chapter 42 (relating to program approval).

   Department--The Department of Education of the Commonwealth.

   Diploma--A document awarded by the school subject to this chapter upon the successful completion of an approved program.

   Director--The person designated by a school directly responsible for the day-to-day operation of a school. The director and the chief executive officer may be the same person.

   Educational supervisor--An individual who reports to the director and supervises all or part of the instructional program in his curricular area.

   Hearing panel--Three Board members, one of whom shall be a public member as defined by section 3(a) of the act (24 P. S. § 6503(a)), who preside over hearings requested by schools to contest enforcement actions and who submit proposed findings and recommendations to the full Board for its adjudication.

   Internship or externship--A structured, supervised learning experience which takes place outside of the school and involves the practical application of competencies acquired during school-based instruction.

   Licensee--A person or entity holding a license issued by the Board in accordance with the act.

   Mail--Ordinary first class mail, United States Postal Service, ICC approved mail carrier or personal delivery, unless otherwise specified.

   Nonresident--A student who is receiving instruction by correspondence, telecommunication or similar means including seminar.

   Notice--A written statement issued by the Board to a licensee or registrant or by a licensee or registrant to the Board.

   Prepaid tuition--A sum of money received by a school from a student, or on behalf of a student, for which the period of the student's enrollment has not yet begun.

   Private licensed school sales office--A permanent or temporary facility away from school premises to which an admissions representative reports or from which an admissions representative solicits or procures student enrollments.

   Program--An approved series of organized courses.

   Registered school sales office--A permanent or temporary facility in this Commonwealth of a registered school to which an admissions representative reports or from which an admissions representative solicits or procures student enrollments.

   Remote laboratory--A detached facility for teaching practical application of theoretical instruction, such as a firing range for a security or private investigator program or kitchen facilities for a food service program.

   Reportable event--A circumstance or occurrence as defined in § 73.201 (relating to reportable events) which takes place at a school or which pertains to the school, within the knowledge of the school's owner, director or chief executive officer.

   Resident--A student who is regularly scheduled to be present at a school facility for the purposes of instruction, including attendance at approved externships, internships or field experience.

   Review and recommendation panel--Three Board members, one of whom shall be a public member as defined by section 3(a) of the act, whose role is to perform or direct Board staff in the performance of the prosecutorial functions involved in an enforcement action against a school.

   School--A private licensed school or registered school as defined in the act. An entity requiring a license or registration under the act. The term includes an instructional facility requiring a license when the facility has a different ownership of more than 25% or has a different director or is a separate and distinct legal entity from a licensee.

   Secretary--The Secretary of the Department.

   Seminar--Training or instruction that is one of the following:

   (i)  Noncumulative short-term training of no more than 15 hours duration, not scheduled in a regular calendar format and offered as an introduction or orientation to an occupation.

   (ii)  Instruction for an entry-level occupation offered at a total contract price, of less than $300, which includes all costs charged to students, including, tuition, fees, books and supplies, provided that the total contract price for all courses to any enrolled student is less than $300 in any one calendar year.

   Student--A person enrolled in a school for the purpose of instruction.

   Teachout--The continuation of instruction to complete the program or course, whenever the school's license has been suspended or revoked or a school has advised the Board that it intends to discontinue operations.

   Telecommunications--Nonresident, systematic instruction by electronic or electromagnetic means.

   Unearned tuition--The portion of tuition charges billed to students of a school but not yet earned by the school. These amounts represent future educational services to be rendered to presently enrolled students.

§ 73.151.  Fees.

   (a)  License fees. The fees for school and admissions representative licenses shall accompany both original and renewal license and registration applications. The fee schedule is:

   (1)  For an original school license or registration--$1,500.

   (2)  For an original school license or registration of a school that only presents seminars--$750.

   (3)  For a renewal school license or registration-biennial fee based on gross tuition revenue:

Gross Tuition Revenue Fee
$0--2,499 $ 500
$2,500--4,999 $1,000
$5,000--9,999 $2,000
$10,000--49,999 $2,200
$50,000--99,999 $2,300
$100,000--199,999 $2,600
$200,000--499,999 $3,000
$500,000--999,999 $3,500
$1,000,000--1,999,999 $4,100
$2,000,000 and over $4,400

   (4)  For an admission representative license--$300 annually.

   (b)  User fees. Fees will also be assessed for other services provided by the Board, which services are in addition to the processing and issuance of original or renewal school licenses or registration and admissions representative licenses. These user fees are as follows:

   (1)  A $700 fee shall accompany each application for approval of a new program.

   (2)  A $1,200 fee shall accompany notification to the Board of a change in ownership of the school.

   (3)  A $200 fee per participant will be charged for participation in new school orientation seminars.

   (4)  A $500 fee will be charged for each site inspection of the following types: new school, change in location, expansion of instructional space, temporary relocation, branch facility and remote training facility. This fee shall be paid before commencement of the visit.

   (5)  The fee for a Board-directed visit is $500 per day if the visit is conducted by staff; $800 per day plus team member expenses for a visit conducted by a team with nonstaff members. The fee for a Board-directed visit shall be paid before commencement of the visit.

[Pa.B. Doc. No. 02-566. Filed for public inspection April 12, 2002, 9:00 a.m.]

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