PRINTER'S NO. 264
No. 247 Session of 1985
INTRODUCED BY FATTAH, GALLAGHER, COWELL, HAGARTY, TRUMAN, CARN,
OLIVER AND LINTON, FEBRUARY 11, 1985
REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 11, 1985
AN ACT
1 Defining and providing for the licensing and regulation of
2 private schools; establishing the State Board of Private
3 Licensed Schools; imposing penalties; and making repeals.
4 TABLE OF CONTENTS
5 Section 1. Short title.
6 Section 2. Definitions.
7 Section 3. The State Board of Private Licensed Schools.
8 Section 4. Powers and duties of board.
9 Section 5. Optional licensing of private schools.
10 Section 6. Mandatory licensing of private schools and
11 admissions representatives.
12 Section 7. Application for license.
13 Section 8. Issuance and renewal of license.
14 Section 9. Licenses restricted.
15 Section 10. License fees.
16 Section 11. Directory of licensed schools.
17 Section 12. Requirements for licensure and operation.
18 Section 13. Enforcement, refusal, suspension or revocation
1 of license.
2 Section 14. Promulgation of rules.
3 Section 15. Penalties.
4 Section 16. Existing licenses to remain in force.
5 Section 17. Transfer of personnel, etc.
6 Section 18. Repeals.
7 Section 19. Effective date.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Short title.
11 This act shall be known and may be cited as the Private
12 Licensed Schools Act.
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 "Adequate correction service." The proper receipt and prompt
18 correction of all required tests and materials, with appropriate
19 written comments and suggestions for correction of errors and
20 apparent weaknesses, and the prompt mailing of the corrected
21 materials to students concerned.
22 "Admissions representative." A person acting personally or
23 for a private licensed school, who for a consideration, at
24 locations off the premises of the school acts as a salesperson
25 to solicit or to procure through an enrollment agreement an
26 individual in Pennsylvania to enroll in a private licensed
27 school.
28 "Annual." Twelve months from the date of initial licensure.
29 "Biennial." Twenty-four months from the date of renewal
30 licensure.
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1 "Board." The State Board of Private Licensed Schools.
2 "Department." The Department of Education of the
3 Commonwealth.
4 "Enrollment agreement." A written contract between the
5 student and the private licensed school.
6 "Multibranch training school." A business corporation
7 licensed to do business in Pennsylvania having more than one
8 branch facility at which instruction is offered to the general
9 public for a fee. A branch facility shall mean a facility of a
10 licensed school, when all of the following occur:
11 (1) The facility has the same ownership, management or
12 control as that of the licensed school.
13 (2) The curriculum offered at such facility is
14 substantially the same as the curriculum offered at the
15 licensed school.
16 (3) The number of tuition-paid students enrolled at each
17 such facility does not exceed 50 per class.
18 (4) The facility is located within the same county and
19 is administratively an integral part of the licensed school.
20 No additional license fees or bond shall be required of any
21 such facility, provided that the physical plant of each such
22 facility is approved by the board.
23 "Private licensed school." A school or classes operated for
24 profit or tuition that provides resident instruction to prepare
25 an individual to pursue an occupation in the skilled trades,
26 industry or business, or systematic instruction by
27 correspondence or by telecommunication in a field of study. It
28 shall not include a private academic school as defined in the
29 act of June 25, 1947 (P.L.951, No.401), entitled, as amended,
30 "An act defining and providing for the licensing and regulation
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1 of private academic schools; conferring powers and imposing
2 duties on the State Board of Private Academic Schools; and
3 imposing penalties"; a school maintained or a class conducted
4 for training for the vocation of homemaking or to give training
5 in public and other service occupations; a barber school; a
6 school of cosmetology; a flight school; a private tutorial
7 school, including, but not limited to, a school of music or
8 dance; an institution granting a degree other than those
9 approved to award the degree of associate in specialized
10 business or associate in specialized technology; a school or
11 class conducted by an employer or trade union for employees or
12 union members where no fee or tuition is charged; a school owned
13 and operated by a bona fide religious institution whose only
14 purpose is the providing of religious instruction; or a school
15 conducted by the Commonwealth or a political subdivision
16 thereof. A multibranch training school shall be considered as a
17 private licensed school.
18 "Secretary." The Secretary of Education of the Commonwealth.
19 Section 3. The State Board of Private Licensed Schools.
20 (a) Members.--The board shall consist of 11 members, ten of
21 whom shall be appointed by the secretary. Two members shall
22 represent private licensed schools providing instruction in
23 business and commercial pursuits, two members shall represent
24 private licensed schools providing instruction in trades or
25 technologies, two members shall represent private licensed
26 schools providing correspondence or home study instruction and
27 four members shall be representative of the general public
28 having no current affiliation with private licensed schools. The
29 Director of the Bureau of Consumer Protection in the Office of
30 Attorney General, or a designee, shall serve ex officio and
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1 shall have voting rights. Of the initial appointments, five
2 members, one of each from the business, trade and correspondence
3 school sectors and two from the public sector shall be appointed
4 for terms of two years. Five members, one each from the
5 business, trade and correspondence school sectors and two from
6 the public sectors shall be appointed for terms of four years.
7 After the initial appointments, all terms shall be for four
8 years or until a successor has been appointed, but in no event
9 shall a member hold office for longer than six months beyond
10 expiration of the term. No board member shall serve more than
11 two consecutive four-year terms. An appointment to fill a
12 vacancy shall be for the unexpired term.
13 (b) Quorum.--Six members of the board shall constitute a
14 quorum. The board shall select annually a chairperson from among
15 its private licensed school and public members.
16 (c) Administrative support.--The board shall have
17 administrative support assigned from the staff of the
18 department.
19 (d) Compensation and expenses.--Members of the board, except
20 the Director of the Bureau of Consumer Protection or a designee,
21 shall receive $60 per diem for each day actually devoted to work
22 of the board. The members shall be reimbursed for reasonable
23 travel, hotel and other necessary expenses incurred in the
24 performance of their duties.
25 (e) Forfeiture of membership.--A member who fails to attend
26 three consecutive board meetings shall forfeit membership on the
27 board, unless the secretary, upon written request from the
28 member, determines that the member should be excused from a
29 meeting or meetings for reasons of illness or death of an
30 immediate family member.
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1 (f) Meetings and records.--The board shall meet at least
2 four times a year at such times and places as it shall
3 determine. Special meetings may be called by the chairperson or
4 at the request of a majority of the members of the board
5 dependent upon the availability of funds to cover costs. Board
6 records and administrative records for private licensed schools
7 shall be maintained in Harrisburg.
8 (g) Documents.--Certificates of licensure and other official
9 documents approved by the board shall be issued by the
10 department.
11 Section 4. Powers and duties of board.
12 (a) Licensure, policies, etc.--The board shall have the
13 power and its duty shall be to approve or disapprove the initial
14 and renewal licensure or approval, or both, of schools; to
15 suspend or revoke the licensure or approval, or both, of
16 schools; to approve or disapprove the licensing of in-State and
17 out-of-State admissions representatives; to adopt broad policies
18 and principles; and to establish standards, rules and
19 regulations. The regulations shall provide for a method of
20 school closure.
21 (b) Disposition of student records.--The board shall require
22 every applicant for initial or renewal licensure to provide a
23 written statement describing arrangements for disposition of
24 student records in the event of closure. It shall be the duty of
25 the board and the department to assist in the execution of the
26 arrangements when necessary. Priority shall be given to plans
27 for retention of the records with existing private licensed
28 schools in the same geographical area.
29 (c) Report of complaints.--The board shall submit annually
30 to the Education Committees of the Senate and House of
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1 Representatives a report describing the types of complaints
2 received pertaining to private licensed schools. The report
3 shall include the source of the complaints, the status of the
4 complaints, board action initiated and the elapsed time from the
5 filing of the complaints until final resolution.
6 (d) Statistical report.--The board shall submit annually to
7 the Education Committees of the Senate and House of
8 Representatives a report containing statistical data on tuition
9 rates, job placement of graduates, percentage of students
10 completing programs of study and the level of State support for
11 students. This report shall pertain to those schools which
12 undergo license renewal in the year of the report.
13 (e) Enforcement by department.--The standards and
14 regulations promulgated by the board shall be enforced by the
15 department. The department may submit to individual experts for
16 review programs and courses and financial statements proposed or
17 offered by a school.
18 Section 5. Optional licensing of private schools.
19 A school which is not required to obtain a license may apply
20 for a license and, upon approval and issuance of the license,
21 shall be subject to the provisions of this act. It may
22 voluntarily surrender its license and revert to its original
23 status.
24 Section 6. Mandatory licensing of private schools and
25 admissions representatives.
26 (a) General rule.--A private school requiring licensure
27 shall not be established within this Commonwealth or continue
28 operation unless the school shall apply for and obtain from the
29 board a license issued in the prescribed manner and form.
30 (b) Admissions representatives for new school in this
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1 Commonwealth.--Within this Commonwealth, no person or persons
2 shall advertise in behalf of, or solicit prospective students to
3 enroll in, a private school to be established within this
4 Commonwealth prior to the establishment of the school unless the
5 person or persons shall apply to the board for a license in the
6 prescribed manner and form and shall receive from the board
7 authorization to conduct the activities.
8 (c) Admissions representatives for new school outside this
9 Commonwealth.--Within this Commonwealth, no person or persons
10 shall solicit prospective students to enroll in a school to be
11 established outside this Commonwealth prior to the establishment
12 of the school unless the person or persons shall apply for and
13 obtain from the board an admissions representative's license in
14 the manner and form prescribed.
15 (d) Admissions representatives for existing school.--No
16 person or persons shall solicit any prospective student within
17 this Commonwealth to enroll in a school located within or
18 without this Commonwealth unless the school has been licensed or
19 approved by the board and unless the person or persons shall
20 apply for and obtain from the board an admissions
21 representative's license in the prescribed manner and form.
22 (e) Limitation on authority of admissions representatives.--
23 No person holding an admissions representative's license shall
24 solicit prospective students to enroll in a private licensed
25 school or classes other than one he is licensed to represent.
26 Section 7. Application for license.
27 (a) General rule.--Before any license is issued to a private
28 school, a verified application shall be made, in writing, to the
29 board on a form prepared and furnished by the department. The
30 application shall require a statement showing, where
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1 appropriate:
2 (1) The title or name and address of the school or
3 classes together with the name of the owners and controlling
4 officers.
5 (2) The general and specific fields of instruction which
6 will be offered and the purposes of such instruction.
7 (3) The place or places where instruction will be given.
8 (4) A specific listing of the equipment and staff
9 available for instruction in each field, and for the proper
10 administration of correspondence courses of study and for
11 maintenance of an adequate correction service.
12 (5) The maximum enrollment to be accommodated on
13 equipment available in each field.
14 (6) The qualifications of instructors and supervisors in
15 each field.
16 (7) Financial resources available to equip and maintain
17 the school, classes or service.
18 (8) An agreement to abide by reasonable service and
19 business ethics prescribed by the board.
20 (9) For relicensure, statistical data on tuition rates,
21 job placement of graduates, percentage of students completing
22 programs of study and the level of State support for
23 students.
24 (10) Any additional information the board may deem
25 necessary to enable it to determine the adequacy of the
26 program of instruction, the business integrity and related
27 matters. An application must be complete for board
28 consideration.
29 (b) Surety bond.--The board shall establish the level of
30 surety bonds to be provided to the Commonwealth by each private
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1 licensed or approved school. The bonds shall be conditioned for
2 the protection of the contractual rights of students.
3 (c) Licensing rules.--The board shall prescribe rules and
4 regulations for the licensing of admissions representatives.
5 Section 8. Issuance and renewal of license.
6 (a) Issuance.--The department shall issue an original
7 license to the applicant if it finds that the application and
8 the school or class or admissions representative for which a
9 license is sought comply with the provisions of this act and
10 with the rules and regulations promulgated under this act.
11 (b) Duration and renewal.--
12 (1) Each original school license issued shall be
13 effective from the date of issue until the first day of the
14 month of original issue the following year and shall be
15 renewed biennially thereafter on a form prepared and
16 furnished by the department.
17 (2) Each original license of an admissions
18 representative shall be renewed annually.
19 (c) License not transferable.--Each private licensed school
20 shall have a separate license which shall not be transferable.
21 Section 9. Licenses restricted.
22 Any license issued to a private school shall restrict the
23 private licensed school to the program, courses or classes
24 specifically indicated in the application for a license. A
25 private licensed school shall present a required supplementary
26 application for approval of additional programs, courses or
27 classes in which it desires to offer instruction during the
28 effective period of its license.
29 Section 10. License fees.
30 (a) General rule.--The department shall collect a fee for
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1 licensing a private licensed school and admissions
2 representatives in accordance with the act of April 9, 1929
3 (P.L.177, No.175), known as The Administrative Code of 1929. The
4 fee for an original school license shall be $500. The biennial
5 school license renewal fee shall be $800. The license fee for an
6 admissions representative shall be $50 and $50 for an annual
7 renewal.
8 (b) Multibranch training school fee.--A multibranch training
9 school shall pay the same fees set forth in subsection (a),
10 except that such school shall be required to pay only one fee
11 for any and all branch training schools located in one county.
12 (c) Disposition of fees.--License fees shall be placed in
13 the General Fund.
14 (d) Fee not refundable.--If a license is denied, suspended
15 or revoked, the license fee shall not be refunded. If the board
16 determines that a license is not required, the license fee may
17 be refunded.
18 Section 11. Directory of licensed schools.
19 The department shall maintain a list of private licensed
20 schools which shall be available to the public.
21 Section 12. Requirements for licensure and operation.
22 (a) Inspection.--No private school may be granted a license
23 or permitted to continue to operate under a granted license
24 unless it permits the board and its representatives to inspect
25 the school or classes and makes available to the board, at any
26 time when requested to do so, full information pertaining to the
27 operation of the school.
28 (b) Display of license.--The school shall prominently
29 display on the premises the current approved license where it
30 may be inspected by students, visitors and designated officials
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1 of the board.
2 (c) Advertising.--The advertising and representations made
3 by any person representing the school or classes shall neither
4 misrepresent any fact relating to the school nor mislead
5 prospective students.
6 (d) Advertisements and representations.--
7 (1) A school shall not use any name, other than its
8 licensed name, for advertising or publicity purposes. A
9 school shall not advertise or imply that it is "supervised,"
10 "recommended," "endorsed," "accredited" or "approved" by the
11 secretary, the department or the board.
12 (2) A school shall not claim or imply that it is
13 endorsed by colleges, universities or other institutions of
14 higher learning.
15 (3) A school shall not claim or imply that it will
16 guarantee admission to any educational institution or
17 employment upon completion of its course or program.
18 (4) A school shall not, by means of blind advertisements
19 or advertisements in the help wanted or other employment
20 columns of newspapers and other publications, solicit
21 prospective students to enroll in the school.
22 (e) Condition of premises.--The premises, equipment and
23 conditions of the school or classes shall be adequate, safe and
24 sanitary in accordance with standards of the Commonwealth or any
25 of its political subdivisions that are applicable to the
26 premises and equipment.
27 Section 13. Enforcement, refusal, suspension or revocation of
28 license.
29 (a) General rule.--The board shall have the power to take
30 appropriate necessary action for the enforcement of its
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1 policies, rules and regulations.
2 (b) Suspension and revocation of license.--The board shall
3 have the power to refuse to issue, suspend or revoke a license
4 if it finds that:
5 (1) The licensee has violated any of the provisions of
6 this act or any of the rules and regulations of the board.
7 (2) The applicant or licensee has knowingly presented to
8 the board false, incomplete or misleading information
9 relating to licensure.
10 (3) The applicant or licensee has pleaded guilty,
11 entered a plea of nolo contendere or has been found guilty of
12 a crime constituting a misdemeanor or felony by a judge or
13 jury in any state or Federal court.
14 (4) The applicant or licensee has failed or refused to
15 permit the board or its representatives to inspect the school
16 or classes or has failed or refused to make available to the
17 board, at any time when requested to do so, full information
18 pertaining to any or all items of information contained in an
19 application for license or pertaining to the operation of the
20 private licensed school.
21 (5) The applicant has failed or refused to submit to the
22 board an application for license or renewal in the manner and
23 form prescribed.
24 (6) A private licensed school has failed or refused to
25 display on the school's premises the current approved license
26 where it may be inspected by students, visitors or designated
27 officials of the board.
28 (7) A licensed admissions representative has failed or
29 refused to display or produce his or her license when
30 requested to do so by prospective students or designated
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1 officials of the board.
2 (8) The applicant or licensee has failed to provide or
3 maintain premises, equipment or conditions which are
4 adequate, safe and sanitary in accordance with such standards
5 of the Commonwealth or any of its political subdivisions that
6 are applicable to the premises and equipment.
7 (9) The licensee has perpetrated fraud or deceit in
8 written or oral advertising of the school or classes or in
9 presenting to prospective students written or oral
10 information relating to the school or classes, employment
11 opportunities or opportunities for enrollment in institutions
12 of higher learning.
13 (10) The licensee is employing admissions
14 representatives who have not been licensed by the board.
15 (11) The licensee has failed to provide and maintain
16 adequate premises, equipment, materials or supplies or has
17 exceeded the maximum enrollment for which the school was
18 licensed or program or course approved.
19 (12) The licensee has failed to provide and maintain
20 adequate standards of instruction or an adequate and
21 qualified administrative or instructional staff.
22 (13) The applicant or licensee is unable to provide and
23 maintain financial resources in sufficient amount to equip
24 and maintain adequately and effectively the school or
25 classes.
26 (14) The licensee has moved the school into new premises
27 or facilities without notifying the board and before
28 receiving approval from the board.
29 (15) The licensee has offered training or instruction in
30 programs or courses which have not been approved and
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1 authorized by the board.
2 (16) A licensed admissions representative has solicited
3 prospective students to enroll in a school which has not been
4 approved by the board or which is not listed on his or her
5 license.
6 (17) There was a change in the ownership of the school
7 without notification to and approval from the board.
8 (18) The school was operated or conducted under an
9 ownership arrangement not approved by the board.
10 (19) The licensee has had the license of a school
11 suspended or revoked in another state.
12 (c) Adjudicatory procedure.--The procedure to be followed in
13 the refusal, suspension and revocation of licenses and in
14 appeals taken from those actions shall be in accordance with
15 Title 2 of the Pennsylvania Consolidated Statutes (relating to
16 administrative law and procedure).
17 (d) Reinstatement of license.--Unless directed to do so by
18 court order, the board shall not, for a period of five years
19 following revocation, reinstate the license of a private
20 licensed school or admissions representative which has been
21 revoked. The school or representative shall be required to
22 reapply as a new licensee in accordance with the provisions of
23 this act.
24 Section 14. Promulgation of rules.
25 The board shall promulgate rules and regulations necessary to
26 carry out the purposes of this act. The rules and regulations of
27 the State Board of Private Business Schools, the State Board of
28 Private Correspondence Schools and the State Board of Private
29 Trade Schools in force on the effective date of this act, and
30 not countermanded by this act, shall remain in effect until
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1 repealed or amended by the board, but not for a period of more
2 than one year.
3 Section 15. Penalties.
4 (a) Summary offense.--A person who violates or fails to
5 comply with this act or a rule, regulation or standard
6 promulgated under this act commits a summary offense and shall
7 upon conviction, be sentenced to pay a fine of not less than
8 $300.
9 (b) Civil penalty.--In addition to any other penalty
10 provided in this act, the board may, by a majority vote of its
11 statutorily authorized membership, levy a civil penalty of up to
12 $1,000 on any licensee who violates any provision of this act or
13 any person who operates a private licensed school without being
14 properly licensed under this act. Prior to the collection of the
15 penalty, the licensee or person shall have access to the hearing
16 procedure provided in Title 2 of the Pennsylvania Consolidated
17 Statutes (relating to administrative law and procedure).
18 Section 16. Existing licenses to remain in force.
19 Licenses issued by the State Board of Private Business
20 Schools, the State Board of Private Trade Schools and the State
21 Board of Private Correspondence Schools shall remain in force
22 for the period of the license. At the time of renewal of the
23 license, the State Board of Private Licensed Schools may
24 establish a staggered schedule for renewal.
25 Section 17. Transfer of personnel, etc.
26 Personnel, allocations, appropriations, equipment, files,
27 records, contracts, agreements, obligations and other materials
28 which are used, employed or expended by the boards hereby
29 abolished in connection with the powers, duties or functions
30 exercised under this act by the State Board of Private Licensed
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1 Schools are hereby transferred to the State Board of Private
2 Licensed Schools with the same force and effect as if the
3 appropriations had been made to, as if said items had been the
4 property of, and as if the contracts, agreements and obligations
5 had been incurred or entered into by said State Board of Private
6 Licensed Schools.
7 Section 18. Repeals.
8 The following acts and parts of acts are repealed:
9 Sections 456, 457, 458, 606-A(2), (3) and (5) of the act of
10 April 9, 1929 (P.L.177, No.175), known as The Administrative
11 Code of 1929.
12 Act of May 2, 1945 (P.L.401, No.165), entitled, as amended,
13 "An act defining and providing for the licensing and regulation
14 of private trade schools and classes; conferring powers and
15 imposing duties on the State Board of Private Trade Schools; and
16 prescribing penalties."
17 Act of July 8, 1947 (P.L.1428, No.552), entitled "An act
18 defining and providing for the licensing and regulation of
19 private business schools and classes and agents thereof;
20 conferring powers and imposing duties upon the State Board of
21 Private Business Schools; and prescribing penalties."
22 Act of July 8, 1947 (P.L.1433, No.553), entitled, as amended,
23 "An act defining and providing for the licensing of private
24 correspondence schools and the registration of agents of such
25 schools; providing for contractual liability; conferring powers
26 and imposing duties on the State Board of Private Correspondence
27 Schools; and prescribing penalties."
28 Section 19. Effective date.
29 This act shall take effect January 1, 1986.
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