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PA Bulletin, Doc. No. 01-639



[22 PA. CODE CH. 73]

Definitions; Fees

[31 Pa.B. 2017]

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

Description of Proposed Amendments

   The proposed amendment of § 73.1 adds a new definition for ''seminars'' and revises the definition of ''nonresident.''

   The proposed amendment of § 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.

   The proposed amendment of § 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.

Reason for Proposed Amendments

   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 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 proposed fees in § 73.151 should raise sufficient revenue to offset the Board's projected expenditures for Fiscal Years 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 the State under the revised definition of ''nonresident'' as set forth in Annex A. 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 where their gross tuition revenue collected is less in comparison to already established private licensed schools.

   The new and revised proposed fees are set forth in Annex A. The proposed fees will meet the anticipated need for additional revenue.

Fiscal Impact

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

Estimated Number of Fee Payers
Biennially Times Amount of Fee
FY 2000-01 FY 2001-02 Est. Revenue
Board Activity
1.  Original School License 40×$1,500a $60,000
     or Registration 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 7/01/00--6/30/01.
     b.  For fee collected under proposed fee increase 7/01/01--6/30/02.
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 $259,080
            or Revenue Shortfall

Paperwork Requirements

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

Effective Date

   These proposed amendments take effect upon final 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 4, 2001, the Department of Education (Department) submitted a copy of these proposed amendments to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House and Senate Committees on Education. In addition to submitting the proposed amendments, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1 ''Regulatory Review and Promulgation.'' A copy of this material is available to the public upon request.

   If the Committees have any objections to any portion of the proposed amendments, they will notify the Department of Education within 20 days of the close of the public comment period. Under section 5(g) of the Regulatory Review Act, if IRRC has any objections to any of the proposed amendments, it will notify the Department within 10 days of the close of the Committees' comment period. The notification shall specify the regulatory review criteria that have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review of objections raised, prior to final publication of the regulations, by the Board, the General Assembly and the Governor.

Public Comments and Contact Person

   Interested persons are invited to submit to the Board their written comments, suggestions or objections regarding these proposed amendments within 30 days following publication in the Pennsylvania Bulletin. Written comments, suggestions or objections for Board consideration should be sent to Sharon Lane, Acting Coordinating Secretary, State Board of Private Licensed Schools, 333 Market Street, Harrisburg, PA 17126-0333, and (717) 783-8228.

Acting Secretary

   Fiscal Note: 6-272. No fiscal impact; (8) recommends adoption.

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:

*      *      *      *      *

   Nonresident--A student who is [off the premises of a school facility] receiving instruction by correspondence, telecommunication or similar means including seminar.

*      *      *      *      *

   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.

*      *      *      *      *


§ 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 [annually].

   (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 $[1200] 500
[$150--9,999] [$1400]
$2,500--4,999 $1000
$5,000--9,999 $2000
$10,000--49,999 $[1500] 2,200
$50,000--99,999 $[1600] 2,300
$100,000--199,999 $[1800] 2,600
$200,000--499,999 $[2100] 3,000
$500,000--999,999 $[2400] 3,500
$1,000,000--1,999,999 $[2800] 4,100
$2,000,000 and over $[3000] 4,400

   [(3)]  (4)  For an admission representative license--$[150] 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 $[350] 700 fee shall accompany each application for approval of a new program.

   (2)  A $[600] 1,200 fee shall accompany notification to the Board of a change in ownership of the school.

   (3)  A $[100] 200 fee per participant will be charged for participation in new school orientation seminars.

   (4)  A $[250] 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 $[250] 500 per day if the visit is conducted by staff; $[400] 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. 01-639. Filed for public inspection April 13, 2001, 9:00 a.m.]

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