RULES AND REGULATIONS
Title 22—EDUCATION
STATE BOARD OF PRIVATE LICENSED SCHOOLS
[ 22 PA. CODE CH. 73 ]
Fees
[46 Pa.B. 7270]
[Saturday, November 19, 2016]The State Board of Private Licensed Schools (Board), under the authority in the Private Licensed Schools Act (act) (24 P.S. §§ 6501—6518), amends § 73.151 (relating to fees) to read as set forth in Annex A.
Description and Need for Amendments
The amendments to § 73.151(a) prescribe amended fees for biennial licensure or registration of all schools and licensure of admissions representatives. The amendments to § 73.151(b) increase the user fees for other services provided by the Board. The Board's 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 its existing fee structure was inadequate to meet revenue needs. The Board estimated that its expenditures for the biennial period covering Fiscal Years 2014-2015 and 2015-2016 would be $1,955,300. In contrast, the estimated revenues under the existing fee structure were anticipated to be $1,066,708. The projected shortfall of $888,592 was covered by the surplus in the Board's revolving account, which is currently $1,246,770, leaving a very minimal surplus to cover operating costs after July 1, 2016.
The fees in § 73.151 should raise sufficient revenue to offset the Board's projected expenditures for approximately 5 years.
The Board last increased its fees at 32 Pa.B. 1844 (April 13, 2002). At that time, the Board projected that the fees would cover 10 years of operating expenses. The 2002 fee structure sustained the Board's operation longer than anticipated.
The current staffing level will need to be maintained for the foreseeable future. While there has not been a change to the actual number of staff supporting the work of the Board since 2002, one position dedicated to specialized associate degrees was covered by general funds until 2010 because the work is governed by regulations promulgated by the State Board of Education. That position was transferred to the Board account in 2010 because the work services the private licensed school community. This change adds a financial burden on the Board's funds.
Revenue has been reduced in recent years as changes in Federal regulations and economic conditions have resulted in a significant reduction in the number of licensed schools from 325 in 2002 to 270 today. While revenue is reduced in accordance with the number of schools renewing licenses, staffing needs are not directly tied to the number of schools because most services need to be provided regardless of the number of licensed schools.
Most of the Board's revenue is generated by renewal fees. After 1 year of operation, biennial renewal fees are on an assessed graduated scale based upon gross tuition revenue. Additional revenue is generated by other service fees.
The following calculations include a cap of $35,000 that was accepted by the Board in May 2015 and used in these calculations. The original material did not clarify that this cap was in place. The largest schools are currently capped at $4,400 and this increase in the cap to $35,000 will ensure that the largest schools carry more of the burden of funding the Board's operation.
To accommodate the need for additional revenue the Board is raising its fees. The following table shows former fees and the amended fees:
Board Activity Former Fee
Amended Fee
1. Initial School License $1,500 $7,500 2. Initial School License for Schools Presenting Only Seminars $750 $2,000 3. Biennial School Licensure or Registration (as shown in Annex A) $500—4,400 $1,000—6,500 plus $500 for each additional
$500,000 revenue over $1,000,000 with a cap
of $35,0004. Admission Representatives License $300 $600 5. New Program Application $700 $1,400 6. Change of Ownership $1,200 $5,000 7. New School Orientation $200 $300 8. School Site Inspection $500 $750 9. Board Directed Site Visit $500 $750 10. Board Directed Team Visit $800 $1,000
For the implementation of the renewal fees in § 73.151(a)(3), schools will receive a reminder 11 weeks prior to the expiration of the license. Those schools that have already received the reminder prior to November 19, 2016, will renew in accordance with the prior fee schedule. Reminders sent following November 19, 2016, will include the new fee structure and the new renewal fees will be required.
Summary of Comments and Responses to Proposed Rulemaking
Notice of proposed rulemaking at 46 Pa.B. 1555 (March 26, 2016), with a 30-day public comment period. The Board received a general comment from the Pennsylvania Association of Private School Administrators acknowledging the need for an increase of fees and stating an appreciation for the Board's work on minimizing the fee amount. Additionally, on May 25, 2016, the Board received the comments from the Independent Regulatory Review Commission (IRRC) regarding: the initial licensing and change of ownership fees; the implementation of the biennial fee for license and registration renewal; the new director seminar fee; the effective date; time frame; and summary of proposed amendments. The Board's responses to IRRC's comments are addressed in a separate comment and response document.
Fiscal Impact and Paperwork Requirements
This final-form rulemaking will not have fiscal impact on the Commonwealth or its political subdivisions and will, as required by law, impose costs upon the private sector sufficient to meet the Commonwealth's expenses in regulating private licensed schools. As a result of this final-form rulemaking, the Board will alter some of its forms to reflect the new fees. This final-form rulemaking does not create additional paperwork for the private sector.
Effective Date
These amendments will become effective upon publication in the Pennsylvania Bulletin. The Board's objective is to have the changes to the regulations in effect by December 1, 2016.
Sunset Date
The act requires that the Board monitor its revenue and cost on a biennial basis. Therefore, a sunset date has not been assigned.
Statutory Authority
This final-form rulemaking is authorized under section 10 of the act.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on March 14, 2016, the Board submitted a copy of the notice of proposed rulemaking, published at 46 Pa.B. 1555, to IRRC and the Chairpersons of the House and Senate Education Committees for review and comment.
Under section 5(c) of the Regulatory Review Act, the Board shall submit to IRRC and the House and Senate Committees copies of comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Board considered all comments from IRRC and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P.S. § 745.5a(j.2)), on October 19, 2016, the 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 October 20, 2016, and approved the final-form rulemaking.
K. Findings
The Board finds that:
(1) Public notice of proposed rulemaking 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 regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) A 30-day public comment period was provided as required by law and all comments were considered.
(3) This final-form rulemaking does not enlarge the purpose of the proposed rulemaking published at 46 Pa.B. 1555.
(4) This final-form rulemaking is necessary and appropriate for administration and enforcement of the authorizing act.
L. Order
The Board, acting under the authorizing statutes, orders that:
(a) The regulations of the Board, 22 Pa. Code Chapter 73, are amended by amending § 73.151 to read as set forth in Annex A.
(b) The Coordinating Secretary of the Board shall 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 submit this order and Annex A to IRRC and the House and Senate Committees as required by the Regulatory Review Act (71 P.S. §§ 745.1—745.14).
(d) 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.
(e) This order shall take effect upon publication in the Pennsylvania Bulletin.
PATRICIA LANDIS,
Coordinating Secretary(Editor's Note: See 46 Pa.B. 7051 (November 5, 2016) for IRRC's approval order.)
Fiscal Note: Fiscal Note 6-334 remains valid for the final adoption of the subject regulation.
Annex A
TITLE 22. EDUCATION
PART III. STATE BOARD OF PRIVATE LICENSED SCHOOLS
CHAPTER 73. GENERAL PROVISIONS
FEES § 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—$7,500. The fee for an original school license or registration includes the user fee for the application for approval of one new program. Each additional new program application submitted with a new license application shall be accompanied by an additional new program approval fee as set forth in subsection (b)(1).
(2) For an original school license or registration of a school that only presents seminars—$2,000.
(3) For a renewal school license or registration—biennial fee based on gross tuition revenue:
Gross Tuition Revenue Fee $0—4,999 $1,000 $5,000—9,999 $2,000 $10,000—49,999 $2,500 $50,000—99,999 $2,700 $100,000—149,999 $2,800 $150,000—199,999 $3,000 $200,000—249,999 $3,500 $250,000—299,999 $4,000 $300,000—399,999 $4,500 $400,000—499,999 $5,000 $500,000—749,999 $5,500 $750,000—999,999 $6,000 $1,000,000 and over $6,500 plus $500 for each additional $500,000 in revenue with $35,000 cap (4) For an admission representative license—$600 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 $1,400 fee shall accompany each application for approval of a new program.
(2) A $5,000 fee shall accompany notification to the Board of a change in ownership of the school.
(3) A $300 fee per participant will be charged for participation in new school orientation seminars.
(4) A $750 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 $750 per day if the visit is conducted by staff; $1,000 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. 16-1986. Filed for public inspection November 18, 2016, 9:00 a.m.]
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