HOUSE AMENDED
PRIOR PRINTER'S NOS. 451, 1056
PRINTER'S NO. 1266
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
456
Session of
2019
INTRODUCED BY BARTOLOTTA, BREWSTER, FONTANA, VOGEL AND REGAN,
MARCH 19, 2019
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, OCTOBER 21, 2019
AN ACT
Amending the act of December 15, 1986 (P.L.1585, No.174),
entitled "An act defining and providing for the licensing and
regulation of private schools; establishing the State Board
of Private Licensed Schools; imposing penalties; and making
repeals," further providing for definitions, for State Board
of Private Licensed Schools, for powers and duties of board,
for application for license, for license fees and for
requirements for licensure and operation; providing for
multibranch training schools and for institutional grants
authority; further providing for promulgation of rules; and
repealing provisions relating to existing licenses to remain
in force and transfer of personnel, etc.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "adequate correction service,"
"multibranch training school" and "private licensed school" in
section 2 of the act of December 15, 1986 (P.L.1585, No.174),
known as the Private Licensed Schools Act, are amended and the
section is amended by adding definitions to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
context clearly indicates otherwise:
["Adequate correction service." The proper receipt and
prompt correction of all home-study tests and materials, with
appropriate written comments and suggestions for correction of
errors and apparent weaknesses, and the prompt return of the
corrected materials to students concerned.]
* * *
"Branch facility." A facility of a private licensed school
when all of the following occur:
(1) The facility has the same ownership, management or
control as that of the private licensed school.
(2) The curriculum offered at the facility is
substantially the same as the curriculum offered at the
private licensed school.
(3) The number of tuition-paid students enrolled at each
facility does not exceed 50 per class.
(4) The facility is administratively an integral part of
the private licensed school.
* * *
"Distance education." Instruction offered by any means where
the student and faculty member are in separate physical
locations so that in-person communication is absent and
communication is accomplished instead by one or more
technological media. The term includes, but is not limited to,
real-time or delayed interaction using voice, video, data or
text, including instruction provided online, via correspondence
or via interactive video. Instruction provided via synchronous
video from an institution in this Commonwealth to additional
campus sites of the same institution in this Commonwealth is not
considered distance education. The term does not include
20190SB0456PN1266 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
independent study or instruction which is not instructor led.
* * *
"Multibranch training school." A [business corporation]
school licensed to do business in Pennsylvania having [more
than] at least one branch facility at which instruction is
offered to the general public for a fee. [A branch facility
shall mean a facility of a licensed school when all of the
following occur:
(1) The facility has the same ownership, management or
control as that of the licensed school.
(2) The curriculum offered at such facility is
substantially the same as the curriculum offered at the
licensed school.
(3) The number of tuition-paid students enrolled at each
such facility does not exceed 50 per class.
(4) The facility is located within the same county and
is administratively an integral part of the licensed school.
No additional license fees or bond shall be required of any
such facility, provided that the physical plant of each such
facility is approved by the board.]
"Private licensed school." A school or classes operated for
profit or tuition that provides resident instruction to prepare
an individual to pursue an occupation in the skilled trades,
industry or business, or systematic instruction by
[correspondence or by telecommunication] distance education in a
field of study. It shall not include a private academic school
as defined in [the act of June 25, 1947 (P.L.951, No.401),
entitled, as amended, "An act defining and providing for the
licensing and regulation of private academic schools; conferring
powers and imposing duties on the State Board of Private
20190SB0456PN1266 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Academic Schools; and imposing penalties"] section 2 of the act
of January 28, 1988 (P.L.24, No.11), known as the Private
Academic Schools Act; a school maintained or a class conducted
for training for the vocation of homemaking or to give training
in public and other service occupations; a barber school; a
school of cosmetology; a flight school; a private tutorial
school, including, but not limited to, a school of music or
dance; an institution granting a degree other than those
approved to award the degree of associate in specialized
business or associate in specialized technology; a school or
class conducted by an employer or trade union for employees or
union members where no fee or tuition is charged; a school owned
and operated by a bona fide religious institution whose only
purpose is the providing of religious instruction; a school
conducted by the Commonwealth or a political subdivision
thereof; or a school which is operated by a hospital licensed
under the act of July 19, 1979 (P.L.130, No.48), known as the
Health Care Facilities Act, and which is accredited by a
regional or national accreditation agency.
* * *
"Teach-out." The continuation of instruction to students to
complete the program or course in which the students are
enrolled when the school's license has expired, been revoked or
a school has ceased enrollment.
Section 2. Section 3(a) of the act is amended to read:
Section 3. The State Board of Private Licensed Schools.
(a) Establishment of the board.--There is hereby created
within the department a departmental administrative board to be
known as the State Board of Private Licensed Schools. The board
shall consist of 15 members, 14 of whom shall be appointed by
20190SB0456PN1266 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the secretary. Three members shall represent private licensed
schools providing instruction in business and commercial
pursuits, three members shall represent private licensed schools
providing instruction in trades or technologies, three members
shall represent private licensed schools providing
[correspondence] distance education or home-study instruction
and five members shall be representative of the general public
having no current affiliation with private licensed schools. The
Director of the Bureau of Consumer Protection in the Office of
Attorney General, or a designee, shall serve ex officio and
shall have voting rights. [Of the initial appointments, seven
members, two from the business, one each from trade and
correspondence school sectors and three from the public sector,
shall be appointed for terms of two years. Seven members, one
from the business, two each from trade and correspondence school
sectors and two from the public sectors, shall be appointed for
terms of four years.] After the initial appointments, all terms
shall be for four years or until a successor has been appointed,
but in no event shall a member hold office for longer than six
months beyond expiration of the term. No board member shall
serve more than two consecutive four-year terms. An appointment
to fill a vacancy shall be for the unexpired term.
* * *
Section 3. Section 4(b) and (d) of the act are amended and
the section is amended by adding a subsection to read:
Section 4. Powers and duties of board.
* * *
[(b) Disposition of student records.--The board shall
require every applicant for initial or renewal licensure to
provide a written statement describing arrangements for
20190SB0456PN1266 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
disposition of student records in the event of closure. It shall
be the duty of the board and the department to assist in the
execution of the arrangements when necessary. Priority shall be
given to plans for retention of the records with existing
private licensed schools in the same geographical area.]
(b.1) Repository of student records.--The following apply:
(1) The board may enter into an agreement with a third
party to establish a centralized repository of student
records for all private licensed schools. If the board enters
into an agreement with a third party under this paragraph, a
private licensed school shall work in collaboration with the
board and the third party to provide the private licensed
school's student records for the centralized repository,
including student records that may have been previously
disclosed to the board, the third party or another private
licensed school. The board may establish an annual timeline
for the private licensed school to provide student records
for the centralized repository.
(2) The board or third party authorized by the board may
use current information technology systems and other means to
provide the necessary security and privacy for the
centralized repository of student records.
(3) The board or a third party authorized by the board
may impose reasonable fees to establish and maintain the
centralized repository of student records. The board may
overturn a fee imposed by a third party under this paragraph
by a majority vote if the board deems the fee to be
unreasonable.
(4) A third party centralized repository shall be
required to submit to the board a plan of succession to
20190SB0456PN1266 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
protect and provide service for student records in the event
the centralized repository ceases operation.
(5) The third party centralized repository shall
maintain the records for 50 years from the date of graduation
or withdrawal in accordance with the Family Educational
Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C.
§ 1232g).
(6) A records repository agreement submitted with an
application for licensure or renewal shall remain in effect
until the private licensed school fully participates in the
centralized repository.
(7) Subsection (b) shall apply until the board has:
(i) entered into a third-party agreement as
prescribed in paragraph (1);
(ii) the repository is functioning; and
(iii) submitted to the Legislative Reference Bureau
for publication as a notice in the Pennsylvania Bulletin
the date the centralized repository is accepting student
records.
* * *
(d) Statistical report.--The board shall submit annually to
the Education Committees of the Senate and House of
Representatives a report containing statistical data on tuition
rates, job placement of graduates[,] and percentage of students
completing programs of study [and the level of State support for
students]. Private licensed or registered schools shall submit
this information to the department by September 30 of each year
for the preceding academic year ending June 30.
* * *
Section 4. Sections 7(a)(3) and (4) and 10(b) of the act are
20190SB0456PN1266 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
amended to read:
Section 7. Application for license.
(a) General rule.--Before any license is issued to a private
school, a verified application shall be made, in writing, to the
board on a form prepared and furnished by the department. The
application shall require a statement showing:
* * *
(3) The place or places where instruction will be given
or [correction services provided by correspondence schools]
the location from which instruction by distance education
will originate.
(4) A specific listing of the equipment and staff
available for instruction in each program, and for the proper
administration of [correspondence courses of study and for
maintenance of an adequate correction service] distance
education courses.
* * *
Section 10. License fees.
* * *
(b) Multibranch training school and branch facility fee.--A
multibranch training school and a branch facility shall pay the
same fees set forth in subsection (a)[, except that such school
shall be required to pay only one fee for any and all branch
training schools located in one county]. No additional license
fees or bond, excluding surety bond and board-approved private
surety fund, shall be required of a multibranch training school
and branch facility.
* * *
Section 5. Section 12 of the act is amended by adding a
subsection to read:
20190SB0456PN1266 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 12. Requirements for licensure and operation.
* * *
(f) School closure.--A school shall notify the board at
least 30 calendar days in advance of a school closure. A license
or registration shall automatically terminate when the school
closes. If a school is planning to close or if the school faces
a situation that could result in closure, the school must
provide the board with a teach-out plan, a list of all current
students with contact information and copies of current student
transcripts for students who are currently enrolled. A school
that is closing is responsible for ensuring completion by all
current students or placement of all current students in an
appropriate teach-out or transfer program, ensuring that all
student academic records are securely placed in the repository
of student records provided for in section 4(b.1) or with
another approved repository within one week of the date of
closure and providing contact information for a responsible
school official for up to one year following the date of
closure.
Section 6. The act is amended by adding sections to read:
Section 13.1. Multibranch training schools.
(a) Board approval.--A licensed school shall receive
approval from the board prior to opening a branch facility
within this Commonwealth. To receive approval under this
subsection, the licensed school must:
(1) Have been operational for two years prior to
requesting approval.
(2) Be in good standing with the board.
(b) Geographical limitations.--A licensed school may only
operate a branch facility in a county contiguous to the licensed
20190SB0456PN1266 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
school or within less than a 60-mile radius of the licensed
school.
Section 13.2. Institutional grants authority.
A licensed school under this act may offer institutional
grants to students of any amount without board approval.
Section 7. Section 14 of the act is amended to read:
SECTION 7. SECTIONS 14 AND 15(B) OF THE ACT ARE AMENDED TO
READ:
Section 14. Promulgation of rules.
The board shall promulgate rules and regulations necessary to
carry out the purposes of this act. [The rules and regulations
of the State Board of Private Business Schools, the State Board
of Private Correspondence Schools and the State Board of Private
Trade Schools in force on the effective date of this act, and
not countermanded by this act, shall remain in effect until
repealed or amended by the board, but not for a period of more
than one year.]
SECTION 15. PENALTIES.
* * *
(B) CIVIL PENALTY.--[IN]
(1) SUBJECT TO PARAGRAPH (2), IN ADDITION TO ANY OTHER
PENALTY PROVIDED IN THIS ACT, THE BOARD MAY, BY A MAJORITY
VOTE OF ITS STATUTORILY AUTHORIZED MEMBERSHIP, LEVY A CIVIL
PENALTY OF UP TO [$1,000] $2,500 ON ANY LICENSEE WHO VIOLATES
ANY PROVISION OF THIS ACT OR ANY PERSON WHO OPERATES A
PRIVATE LICENSED SCHOOL WITHOUT BEING PROPERLY LICENSED UNDER
THIS ACT. A CIVIL PENALTY MAY ONLY BE ASSESSED ONCE PER
VIOLATION. PRIOR TO THE COLLECTION OF THE PENALTY, THE
LICENSEE OR PERSON SHALL HAVE ACCESS TO THE HEARING PROCEDURE
PROVIDED IN TITLE 2 OF THE PENNSYLVANIA CONSOLIDATED STATUTES
20190SB0456PN1266 - 10 -
<--
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(RELATING TO ADMINISTRATIVE LAW AND PROCEDURE).
(2) THE BOARD MAY REVISE THE AMOUNT OF THE CIVIL PENALTY
IMPOSED UNDER PARAGRAPH (1) BY REGULATION. ANY INCREASE TO
THE CIVIL PENALTY UNDER THIS PARAGRAPH SHALL BE REASONABLE
AND REQUIRED TO DETER VIOLATIONS OF THIS ACT.
Section 8. Sections 16 and 17 of the act are repealed:
[Section 16. Existing licenses to remain in force.
Licenses issued by the State Board of Private Business
Schools, the State Board of Private Trade Schools and the State
Board of Private Correspondence Schools shall remain in force
for the period of the license. At the time of renewal of the
license, the State Board of Private Licensed Schools may
establish a staggered schedule for renewal.
Section 17. Transfer of personnel, etc.
Personnel, allocations, appropriations, equipment, files,
records, contracts, agreements, obligations and other materials
which are used, employed or expended by the boards hereby
abolished in connection with the powers, duties or functions
exercised under this act by the State Board of Private Licensed
Schools are hereby transferred to the State Board of Private
Licensed Schools with the same force and effect as if the
appropriations had been made to, as if said items had been the
property of and as if the contracts, agreements and obligations
had been incurred or entered into by said State Board of Private
Licensed Schools.]
Section 9. This act shall take effect as follows:
(1) The repeal of section 4(b) of the act shall take
effect on the date specified in the notice published under
section 4(b.1)(7)(iii) of the act.
(2) The remainder of this act shall take effect in 60
20190SB0456PN1266 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
days.
20190SB0456PN1266 - 12 -
1