PRIOR PRINTER'S NOS. 1410, 1505               PRINTER'S NO. 1549

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1068 Session of 1987


        INTRODUCED BY HESS, REIBMAN, ARMSTRONG, MADIGAN, SHUMAKER,
           REGOLI AND ROCKS, OCTOBER 5, 1987

        AS AMENDED ON THIRD CONSIDERATION, OCTOBER 26, 1987

                                     AN ACT

     1  Defining and providing for the licensing and regulation of
     2     private academic schools; reestablishing the State Board of
     3     Private Academic Schools; imposing penalties; and making
     4     repeals.

     5                         TABLE OF CONTENTS
     6  Section 1.  Short title.
     7  Section 2.  Definitions.
     8  Section 3.  State Board of Private Academic Schools.
     9  Section 4.  Powers and duties of board.
    10  Section 5.  Optional licensing of private schools.
    11  Section 6.  Mandatory licensing of private academic schools.
    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 private academic schools.
    17  Section 12.  Requirements for licensure and operation.
    18  Section 13.  Enforcement, refusal, suspension or revocation of


     1                 license.
     2  Section 14.  Promulgation of rules and regulations.
     3  Section 15.  Penalties.
     4  Section 16.  Existing licenses to remain in force.
     5  Section 17.  Repeals.
     6  Section 18.  Reestablishment of board.
     7  Section 19.  Existing members to continue to serve.
     8  Section 20.  Existing fees to remain in effect.
     9  Section 21.  Retroactivity.
    10  Section 22.  Effective date.
    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13  Section 1.  Short title.
    14     This act shall be known and may be cited as the Private
    15  Academic Schools Act.
    16  Section 2.  Definitions.
    17     The following words and phrases when used in this act shall
    18  have the meanings given to them in this section unless the
    19  context clearly indicates otherwise:
    20     "Annual."  Twelve months from the date of initial licensure.
    21     "Board."  The State Board of Private Academic Schools.
    22     "Department."  The Department of Education of the
    23  Commonwealth.
    24     "Private academic school" or "school."  A school maintained,
    25  or classes conducted, for the purpose of offering instruction
    26  for a consideration, profit or tuition, to five or more pupils
    27  at one and the same time, or to twenty-five or more pupils
    28  during any school year, the purpose of which is to educate an
    29  individual generally or specially or to prepare an individual
    30  for more advanced study, and shall include all schools engaged
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     1  in such education, except private trade schools, private
     2  business schools, private correspondence schools, private music
     3  schools, private dance schools, private art schools, private
     4  dramatic art schools, private schools of charm or poise, private
     5  driver training schools, or any type of private school which is
     6  nonacademic in character.
     7     "Secretary."  The Secretary of Education of the Commonwealth.
     8  Section 3.  State Board of Private Academic Schools.
     9     (a)  Establishment of board.--There is hereby created within
    10  the department a departmental administrative board to be known
    11  as the State Board of Private Academic Schools. The board shall
    12  consist of nine members, who shall be appointed by the
    13  secretary. The composition of the board shall include at least
    14  one parent of a student in a licensed academic school. The terms
    15  of appointment shall be for three years.
    16     (b)  Quorum.--Five members of the board shall constitute a
    17  quorum. The board shall select annually a chairperson from among
    18  its members.
    19     (c)  Administrative support.--Administrative support for the
    20  board shall be provided by the department in accordance with
    21  section 214 of the act of April 9, 1929 (P.L.177, No.175), known
    22  as The Administrative Code of 1929. The department shall
    23  periodically consult with the board regarding its administrative
    24  needs.
    25     (d)  Compensation and expenses.--Members of the board shall
    26  receive $60 per diem for each day actually devoted to work of
    27  the board. The members shall be reimbursed for reasonable
    28  travel, hotel and other necessary expenses incurred in the
    29  performance of their duties in accordance with Commonwealth
    30  regulations.
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     1     (e)  Forfeiture of membership.--A member who fails to attend
     2  three consecutive board meetings shall forfeit membership on the
     3  board unless the secretary, upon written request from the
     4  member, determines that the member shall be excused from a
     5  meeting or meetings for reasons of illness or death of a family
     6  member.
     7     (f)  Meetings and records.--The board shall meet at such
     8  times and places as it shall determine is necessary for the
     9  proper conduct of its work. Special meetings may be called by
    10  the chairperson or at the request of a majority of the members
    11  of the board dependent upon the availability of funds to cover
    12  costs. Board records and administrative records for private
    13  academic schools shall be maintained in Harrisburg.
    14     (g)  Documents.--Certificates of licensure and other official
    15  documents approved by the board shall be issued by the
    16  department.
    17  Section 4.  Powers and duties of board.
    18     (a)  Licensure, policies, etc.--The board shall have the
    19  power and its duty shall be to approve or disapprove the initial
    20  and renewal licensure of schools; to suspend or revoke the
    21  licensure of schools; to establish qualifications for teachers,
    22  professional staff and directors; to adopt broad policies and
    23  principles and to establish standards, rules and regulations.
    24  The regulations shall provide for a method of school closure.
    25     (b)  Disposition of student records.--The board shall require
    26  every applicant for initial or renewal licensure to provide a
    27  written statement describing arrangements for disposition of
    28  student records in the event of closure. It shall be the duty of
    29  the board and the department to assist in the execution of the
    30  arrangements when necessary.
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     1     (c)  Enforcement by department.--The regulations promulgated
     2  by the board shall be enforced by the department. The department
     3  may submit to individual experts for review, programs and
     4  courses and financial statements proposed or offered by a
     5  school.
     6  Section 5.  Optional licensing of private schools.
     7     Licensing shall not apply to colleges or universities, to
     8  schools maintained or classes conducted by employers for their
     9  own employees where no fee or tuition is charged, to schools or
    10  classes owned or operated by or under the authority of bona fide
    11  religious institutions or by the Commonwealth or any political
    12  subdivision thereof, to schools for the blind, deaf and dumb
    13  receiving Commonwealth appropriations, or to schools accredited
    14  by accrediting associations, approved by the State Board of
    15  Education, but such schools may choose to apply for a license
    16  and, upon approval and issuance thereof, shall be subject to the
    17  provisions of this act.
    18  Section 6.  Mandatory licensing of private academic schools.
    19     A private academic school requiring licensure shall not
    20  operate within this Commonwealth unless the school has obtained
    21  from the board a license issued in the prescribed manner and
    22  form.
    23  Section 7.  Application for license.
    24     (a)  General rule.--Before any license is issued to a private
    25  academic school, a verified application shall be made, in
    26  writing, to the board on a form prepared and furnished by the
    27  department.
    28     (b)  Application contents.--The application shall require a
    29  statement showing:
    30         (1)  The title or name and address of the school, grades
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     1     and classes together with the name of the owners and
     2     controlling officers.
     3         (2)  The specific fields of instruction which will be
     4     offered and the purposes of such instruction.
     5         (3)  The place where instruction will be given.
     6         (4)  A specific listing of the equipment, instructional
     7     materials and staff available for instruction in the school.
     8         (5)  The maximum enrollment to be accommodated on
     9     equipment available in each program.
    10         (6)  The qualifications of teachers, professional staff
    11     and directors in each program.
    12         (7)  Financial resources available to equip and maintain
    13     the school.
    14         (8)  An agreement to abide by reasonable service and
    15     business ethics prescribed by the board.
    16         (9)  Any additional information the board may deem
    17     necessary to enable it to determine the adequacy of the
    18     program of instruction and related matters.
    19  An application must be completed for board consideration.
    20     (c)  Financial responsibility.--Each private academic school
    21  shall demonstrate to the board that it has adequate resources or
    22  forms of surety available for the purpose of reimbursing
    23  unearned tuition due students whenever the licensed or
    24  registered school ceases to operate. The form of financial
    25  responsibility or surety established by the private licensed or
    26  registered school shall be subject to approval by the board. The
    27  board shall promulgate regulations under this act establishing
    28  the levels and forms of financial responsibility or surety that
    29  the private licensed or registered school is permitted to
    30  establish.
    19870S1068B1549                  - 6 -

     1     (d)  Licensing rules.--The board shall prescribe rules and
     2  regulations for the licensing of admissions representatives.
     3  Section 8.  Issuance and renewal.
     4     (a)  General rule.--The department shall issue an original
     5  license to the applicant if the board finds that the application
     6  and the school for which a license is sought comply with the
     7  provisions of this act and with the rules and regulations
     8  promulgated under this act.
     9     (b)  Duration and renewal.--Each original school license
    10  issued shall be effective from the date of issue until the same
    11  date of the month of original issue the following year and shall
    12  be renewed annually thereafter on a form prepared and furnished
    13  by the department.
    14     (c)  License not transferable.--Each private academic school
    15  shall have a separate license which shall not be transferable.
    16  Section 9.  Licenses restricted.
    17     Any license issued to a private academic school shall
    18  restrict a private academic school to the program, courses or
    19  classes specifically indicated in the application for a license.
    20  A private academic school shall present a required supplementary
    21  application for approval of change of location, additional
    22  programs, courses or grades in which it desires to offer
    23  instruction during the effective period of its license.
    24  Section 10.  License fees.
    25     (a)  General rule.--The board shall adopt regulations
    26  establishing a fee schedule for the original school license and
    27  the annual school license renewal. Those fees shall be based
    28  upon enrollment criteria and category of license.
    29     (b)  Disposition of fees.--License fees shall be placed in
    30  the General Fund.
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     1     (c)  Fee not refundable.--If a license is denied, suspended
     2  or revoked, the license fee shall not be refunded. If the board
     3  determines that a license is not required, the license fee may
     4  be refunded.
     5  Section 11.  Directory of private academic schools.
     6     The department shall maintain a list of private academic
     7  schools which shall be available to the public.
     8  Section 12.  Requirements for licensure and operation.
     9     (a)  Inspection.--No private academic school may be granted a
    10  license or permitted to continue to operate under a granted
    11  license unless it permits the board and its representatives to
    12  inspect the school or classes and makes available to the board,
    13  at any time when requested to do so, full information pertaining
    14  to the operation of the school.
    15     (b)  Display of license.--The school shall prominently
    16  display on the premises the current approved license where it
    17  may be inspected by students, visitors and designated officials
    18  of the board.
    19     (c)  Advertising and representations.--
    20         (1)  The advertising and representations made by any
    21     person representing the school or classes shall neither
    22     misrepresent any fact relating to the school nor mislead
    23     prospective students.
    24         (2)  A school shall not use any name, other than its
    25     licensed name, for advertising or publicity purposes. A
    26     school shall not advertise or imply that it is "supervised,"
    27     "recommended," "endorsed," "accredited" or "approved" by the
    28     secretary, the department or the board.
    29         (3)  A school shall not claim or imply that it is
    30     endorsed by colleges, universities or other institutions of
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     1     higher learning.
     2         (4)  A school shall not claim or imply that it will
     3     guarantee admission to any educational institution or
     4     employment upon completion of its course or program.
     5         (5)  A school shall not, by means of blind advertisements
     6     or advertisements in the help wanted or other employment
     7     columns of newspapers and other publications, solicit
     8     prospective students to enroll in the school.
     9     (d)  Condition of premises.--The premises, equipment and
    10  conditions of the school or classes shall be adequate, safe and
    11  sanitary in accordance with standards of the Commonwealth or any
    12  of its political subdivisions that are applicable to the
    13  premises and equipment.
    14  Section 13.  Enforcement, refusal, suspension or revocation of
    15                 license.
    16     (a)  General rule.--The board shall have the power to take
    17  appropriate necessary action for the enforcement of its
    18  policies, rules and regulations.
    19     (b)  Refusal to issue, suspension of and revocation of
    20  license.--The board shall have the power to refuse to issue,
    21  suspend or revoke a license if it finds that:
    22         (1)  The licensee has violated any of the provisions of
    23     this act or any of the rules and regulations of the board.
    24         (2)  The applicant or licensee has knowingly presented to
    25     the board false, incomplete or misleading information
    26     relating to licensure.
    27         (3)  The applicant or licensee has pleaded guilty,
    28     entered a plea of nolo contendere or has been found guilty of
    29     a crime constituting a misdemeanor or felony by a judge or
    30     jury in any state or Federal court.
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     1         (4)  The applicant or licensee has failed or refused to
     2     permit the board or its representatives to inspect the school
     3     or classes or has failed or refused to make available to the
     4     board, at any time when requested to do so, full information
     5     pertaining to any or all items of information contained in an
     6     application for license or pertaining to the operation of the
     7     private academic school.
     8         (5)  The applicant has failed or refused to submit to the
     9     board an application for license or renewal in the manner and
    10     form prescribed.
    11         (6)  A private academic school has failed or refused to
    12     prominently display on the school's premises the current
    13     approved license where it may be inspected by students,
    14     visitors or designated officials of the board.
    15         (7)  The applicant or licensee has failed to provide or
    16     maintain premises, equipment or conditions which are
    17     adequate, safe and sanitary in accordance with such standards
    18     of the Commonwealth or any of its political subdivisions that
    19     are applicable to the premises and equipment.
    20         (8)  The licensee has perpetrated fraud or deceit in
    21     written or oral advertising of the school or classes or in
    22     presenting to prospective students written or oral
    23     information relating to the school or classes, employment
    24     opportunities or opportunities for enrollment in institutions
    25     of higher learning.
    26         (9)  The licensee has failed to provide and maintain
    27     adequate premises, equipment, instructional materials or
    28     supplies or has exceeded the maximum enrollment for which the
    29     school was licensed.
    30         (10)  The licensee has failed to provide or direct and
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     1     maintain adequate standards of instruction or an adequate
     2     number of qualified teachers or professional staff.
     3         (11)  The applicant or licensee is unable to provide and
     4     maintain financial resources in sufficient amount to equip
     5     and maintain adequately and effectively the school or
     6     classes.
     7         (12)  The licensee has moved the school into new premises
     8     or facilities without notifying the board and before
     9     receiving approval from the board.
    10         (13)  The licensee has offered instruction in programs or
    11     courses which have not been approved and authorized by the
    12     board.
    13         (14)  There was a change in the ownership of the school
    14     without notification to and approval from the board.
    15         (15)  The school was operated or conducted under an
    16     ownership arrangement not approved by the board.
    17         (16)  The licensee has had the license of a school
    18     suspended or revoked in this Commonwealth or in another
    19     state.
    20     (c)  Adjudicatory procedure.--The procedure to be followed in
    21  the refusal, suspension and revocation of licenses and in
    22  appeals taken from those actions shall be in accordance with
    23  Title 2 of the Pennsylvania Consolidated Statutes (relating to
    24  administrative law and procedure).
    25     (d)  Reinstatement of license.--Unless directed to do so by
    26  court order, the board shall not, for a period of five years
    27  following revocation, reinstate the license of a private
    28  academic school which has been revoked. The school shall be
    29  required to reapply as a new licensee in accordance with the
    30  provisions of this act.
    19870S1068B1549                 - 11 -

     1  Section 14.  Promulgation of rules and regulations.
     2     The board shall promulgate rules and regulations necessary to
     3  carry out the purposes of this act. The rules and regulations of
     4  the State Board of Private Academic Schools in force on the
     5  effective date of this act, and not countermanded by this act,
     6  shall remain in effect until repealed or amended by the board,
     7  but not for a period of more than one year.
     8  Section 15.  Penalties.
     9     (a)  Summary offense.--A person who violates or fails to
    10  comply with this act or a rule, regulation or standard
    11  promulgated under this act commits a summary offense and shall,
    12  upon conviction, be sentenced to pay a fine of not less than
    13  $300.
    14     (b)  Civil penalty.--In addition to any other penalty
    15  provided in this act, the board may, by a majority vote of its
    16  statutorily authorized membership, levy a civil penalty of up to
    17  $1,000 on any licensee who violates any provision of this act or
    18  any person who operates a private academic school without being
    19  properly licensed under this act. Prior to the collection of the
    20  penalty, the licensee or person shall have access to the hearing
    21  procedure provided in Title 2 of the Pennsylvania Consolidated
    22  Statutes (relating to administrative law and procedure).
    23  Section 16.  Existing licenses to remain in force.
    24     Licenses issued by the State Board of Private Academic
    25  Schools prior to the effective date of this act shall remain in
    26  force for the period of the license.
    27  Section 17.  Repeals.
    28     The following acts and parts of acts are repealed:
    29     Sections 455 and 606-A(1) of the act of April 9, 1929
    30  (P.L.177, No.175), known as The Administrative Code of 1929.
    19870S1068B1549                 - 12 -

     1     Act of 1947 (P.L.951, No.401), entitled, as amended, "An act
     2  defining and providing for the licensing and regulation of
     3  private academic schools; conferring powers and imposing duties
     4  on the State Board of Private Academic Schools; and imposing
     5  penalties."
     6  Section 18.  Reestablishment of board.
     7     This act, with respect to the State Board of Private Academic
     8  Schools, constitutes the legislation required to reestablish an
     9  agency under the act of December 22, 1981 (P.L.508, No.142),
    10  known as the Sunset Act.
    11  Section 19.  Existing members to continue to serve.
    12     The present members of the existing State Board of Private
    13  Academic Schools, as of December 31, 1987, shall continue to
    14  serve as members until their present terms of office expire and
    15  until their successors are appointed and qualified.
    16  Section 20.  Existing fees to remain in effect.
    17     Each fee of the State Board of Private Academic Schools in
    18  effect on December 31, 1986 1987, shall remain in effect until    <--
    19  repealed or amended by the board.
    20  Section 21.  Retroactivity.
    21     This act shall be retroactive to January 1, 1988, if enacted
    22  after that date.
    23  Section 22.  Effective date.
    24     This act shall take effect January 1, 1988.




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