| |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| INTRODUCED BY SAYLOR, AUMENT, CREIGHTON, DONATUCCI, FARRY, GILLESPIE, GOODMAN, GROVE, HENNESSEY, KAUFFMAN, KAVULICH, KILLION, KOTIK, MANN, MURT, PYLE, QUINN, RAPP, SWANGER, VULAKOVICH AND YOUNGBLOOD, JULY 20, 2011 |
| |
| |
| REFERRED TO COMMITTEE ON EDUCATION, JULY 20, 2011 |
| |
| |
| |
| 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 definitions and for |
6 | application for license; and providing for Student Tuition |
7 | Recovery Fund. |
8 | The General Assembly of the Commonwealth of Pennsylvania |
9 | hereby enacts as follows: |
10 | Section 1. Section 2 of the act of December 15, 1986 |
11 | (P.L.1585, No.174), known as the Private Licensed Schools Act, |
12 | is amended by adding definitions to read: |
13 | Section 2. Definitions. |
14 | The following words and phrases when used in this act shall |
15 | have the meanings given to them in this section unless the |
16 | context clearly indicates otherwise: |
17 | * * * |
18 | "Assessment." The amount a private postsecondary education |
19 | institution is required to pay to the Student Tuition Recovery |
|
1 | Fund. |
2 | * * * |
3 | "Ceasing operations." A private postsecondary education |
4 | institution that has stopped offering educational courses or |
5 | programs to the public for any reason. |
6 | * * * |
7 | "Fund." The Student Tuition Recovery Fund established in |
8 | section 7.1. |
9 | * * * |
10 | "Newly enrolled student." A student enrolling with a private |
11 | postsecondary education institution for the first time or |
12 | reenrolling after an absence from the institution for one or |
13 | more years. |
14 | "Person injured." A student of a private postsecondary |
15 | education institution, which charges prepaid tuition to a |
16 | student, who is damaged monetarily by the institution's ceasing |
17 | operations before fulfilling its contractual obligations or |
18 | fully providing the services which were paid for in advance. The |
19 | term does not include a nonresident student who is eligible to |
20 | claim for recovery under a student tuition recovery fund or |
21 | similar fund in the student's state of residence or a |
22 | nonresident of this Commonwealth enrolled in distance learning |
23 | instruction. |
24 | "Prepaid tuition." Money advanced to an education |
25 | institution before it provides its service. |
26 | * * * |
27 | "Total course cost." The tuition and other fees charged by |
28 | the private postsecondary education institution for each course |
29 | offered. |
30 | Section 2. Section 7(b) of the act is amended to read: |
|
1 | Section 7. Application for license. |
2 | * * * |
3 | (b) [Financial responsibility.--Each private licensed or |
4 | registered school shall demonstrate to the board that it has |
5 | adequate resources or forms of surety available for the purpose |
6 | of reimbursing unearned tuition due students whenever the |
7 | licensed or registered school ceases to operate. The form of |
8 | financial responsibility or surety established by the private |
9 | licensed or registered school shall be subject to approval by |
10 | the board. The board shall promulgate regulations under this act |
11 | establishing the levels and forms of financial responsibility or |
12 | surety that the private licensed or registered school is |
13 | permitted to establish. Until such regulations take effect, the |
14 | surety requirements in existence on the effective date of this |
15 | act shall continue to be enforced] (Reserved). |
16 | * * * |
17 | Section 3. The act is amended by adding a section to read: |
18 | Section 7.1. Student Tuition Recovery Fund. |
19 | (a) Establishment.--The Student Tuition Recovery Fund is |
20 | established and shall be administered by the board. A person |
21 | injured by a private postsecondary education institution ceasing |
22 | operations may recover from the fund an amount not to exceed the |
23 | actual damages sustained. The board shall adopt rules necessary |
24 | to administer this fund. |
25 | (b) Assessment.--Each private postsecondary education |
26 | institution which collects prepaid tuition shall annually pay an |
27 | assessment to the board for each newly enrolled student in an |
28 | amount consistent with the following: |
29 | (1) In the first year of enactment, the assessment shall |
30 | be in an amount equal to the sum of two-tenths of one percent |
|
1 | of gross tuition revenue. |
2 | (2) If on June 30 of a fiscal year the fund balance is |
3 | less than $5,000,000, the assessment for the following fiscal |
4 | year shall be in an amount equal to the sum of two-tenths of |
5 | one percent of gross tuition revenue. |
6 | (3) If on June 30 of a fiscal year the fund balance |
7 | exceeds $5,000,000 but is less than $10,000,000, the |
8 | assessment for the following fiscal year shall be in an |
9 | amount equal to the sum of one-tenth of one percent of gross |
10 | tuition revenue. |
11 | (4) If on June 30 of a fiscal year the fund balance |
12 | exceeds $10,000,000, the assessment for the following fiscal |
13 | year shall be in an amount equal to the sum of one-tenth of |
14 | one percent of gross tuition revenue and shall apply only to |
15 | newly licensed schools. |
16 | (c) Use of funds.-- |
17 | (1) A person injured by a private postsecondary |
18 | education institution ceasing operations is eligible to |
19 | submit a claim against the fund. |
20 | (2) A claim against the fund shall not be commenced |
21 | later than one year after the private postsecondary education |
22 | institution has ceased operations. The person injured shall |
23 | submit a complaint to the board outlining the circumstances |
24 | surrounding the claim. The board shall promptly investigate |
25 | the complaint. If the complaint and claim are valid, the |
26 | board shall pay the claim in the amount it considers |
27 | reasonable. |
28 | (3) The money deposited in the fund is continuously |
29 | appropriated to the board to carry out the purposes of the |
30 | fund. |
|
1 | (4) The board may use up to three percent of the fund |
2 | per year to administer the fund. |
3 | (5) Unexpended and unencumbered money in the fund at the |
4 | close of a fiscal year shall not revert to the General Fund. |
5 | (d) Exemption.--A private postsecondary institution shall |
6 | not be required to pay assessments for newly enrolled students |
7 | who are not residents of this Commonwealth for whom the |
8 | institution has paid a student tuition recovery fund assessment |
9 | or an assessment to a similar fund in the student's state of |
10 | residence. A private postsecondary institution shall not be |
11 | required to pay assessments for students who are not residents |
12 | of this Commonwealth and who are enrolled in distance learning |
13 | instruction. |
14 | Section 4. This act shall take effect in 60 days. |
|