Family & Community Alternative Education
Massachusetts Proprietary Schools

Proposed Fee Increase for the Oversight of Private Occupational Schools

Pursuant to the authority granted to the Commissioner under M.G.L. c. 75D,§ 2, c.75C, § 3 and c.93, § 21B, to license private business, correspondence, and trade schools, and in accordance with the Administrative Procedure Act, M.G.L. c. 30A, § 2, the Massachusetts Department of Elementary and Secondary Education (Department) is soliciting public comment on the proposed increase of the fees for the licensure of proprietary schools, contained in 801 CMR 4.02, Fees for Licenses, Permits and Services to be Charged by State Agencies, section 603. The Department will accept public comment through November 20, 2009.

The Department seeks to raise the fees for the licensure of for-profit and not-for-profit private, non-degree granting, post-secondary occupational schools and their sales representatives. Currently, proprietary schools in Massachusetts pay the second lowest fees in the country, which include $300 for initial school licensure, $200 biennially for school renewal, and $100 for initial and annual renewal of sales representative licenses, for the ability to generate millions of dollars in tuition revenue each year. The Department collects approximately $25,000 in fees annually for the licensing of proprietary schools and their sales representatives. However, the cost to the Commonwealth of regulating these schools exceeds $400,000, which is an annual deficit to the state budget of $375,000. The fees proposed will generate approximately $400,000 in revenue, thus making the fees commensurate with the cost of licensure, in accordance with M.G.L. c. 7, § 3B. Chapter 7, section 3B provides that no service, except those services provided for students in public institutions of higher education, services in hospitals, clinics or other health facilities and services for inmates by correctional institutions, "shall be performed for the sole benefit of any person at less than cost" by any agency of the Commonwealth. The proposed fees will also make the cost of an initial and renewal application commensurate with several other states (Connecticut, Vermont, Texas, New Jersey, etc.).

Enclosed for your review are the following:

  

Attachment A: Notice of Public Comment and Hearing from the Office for Administration and Finance

  

Attachment B: Frequently Asked Questions

  

Attachment C: Ranking before and after

  

Attachment D: Proposed Amendment to 801 CMR 4:00: RATES

  

Attachment E: Proposed Amendment to 801 CMR 4:00: RATES
(Strikeout version, which shows how the existing regulation will be amended)

Additional copies of the proposed regulations are available on the Department's website at www.doe.mass.edu/ops/procedures.html, or by calling 781-338-3124. Written comments on the proposed regulations may be submitted by mail to Mary Jayne Fay, Coordinator, Office of Proprietary Schools, Massachusetts Department of Elementary and Secondary Education, 75 Pleasant Street, Malden, MA 02148-4906, by fax to 781-338-6608, or by e-mail to proprietaryschools@doe.mass.edu. The deadline for submission of public comment is November 20, 2009.

A public hearing will be held from 4-6 p.m. on Thursday, October 29, 2009 at the Department at 75 Pleasant Street, Malden, MA, 1st floor, rooms 137 A, B, and C.

Thank you for your time and interest. If you have any questions, please contact:

Brian Devine, Administrator, Educator Licensure & Proprietary Schools
781-338-3124