The purpose of the proposed amendment to the Commission’s Institutional Licensure rule is to require that “new” institutions submit a business plan and a budget on two forms when applying for an initial or extended provisional license and when ...

 

DEPARTMENT OF EDUCATION
Commission for Independent Education

RULE NO.:RULE TITLE:
6E-2.004Standards and Procedures for Licensure
PURPOSE AND EFFECT: The purpose of the proposed amendment to the Commission’s Institutional Licensure rule is to require that “new” institutions submit a business plan and a budget on two forms when applying for an initial or extended provisional license and when applying for a provisional license due to a change in ownership. The effect of the proposal is to amend the financial standard applicable to these institutions.
SUMMARY: The proposed rule incorporates two forms. One of these is CIE Form 605, entitled Business Plan. When applying for these types of provisional licenses, institutions will be required to provide information applicable to a business plan for post secondary institutions, such as a description of the facility, institutional educational programs, a market analysis summary, accreditation plans, marketing and enrollment strategies and information on a web based presence, if any. The second form proposed for incorporation is CIE Form 606, entitled Projected or Actual Budget. When applying for these same types of provisional licenses, institutions will be required to provide a budget that includes the revenue and costs for private post secondary institutions. The form requires information on costs in a number of categories, namely, costs of sales, advertising, labor, student recruitment, administrative costs, salaries, professional fees, occupancy expenses, and capital expenditures.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has been prepared by the agency.
As noted in the SERC, the transactional costs associated with the rule are based upon the cost of submitting the budget and business plan forms. This cost will be borne by applicants seeking a license to operate a private post-secondary institution when the institution is new or when the institution changes owners. These entities are all corporations or limited liability companies. It is estimated that the cost for completing the business plan will range from $300 to $750 and the cost for completing the budget will range from $600 to $2,000. The total estimated annual cost of implementing the amendment is not estimated to exceed $175,000. The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 1005.22(1)(e), 1005.31(2), (3), 1005.34, 1005.39 FS.
LAW IMPLEMENTED: 1005.04, 1005.31, 1005.33(1), 1005.34, 1005.39 FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: May 21, 2013, 8:00 a.m.
PLACE: Duval County School Board Office, 1701 Prudential Drive, Jacksonville, Florida.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Samuel Ferguson, Executive Director, Commission for Independent Education, 325 West Gaines Street, Suite 1414, Tallahassee, Florida, 32399-0400, [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

6E-2.004 Standards and Procedures for Licensure.

Institutions applying for a license or moving to a new level of licensure or any other Commission action shall provide all required information to the Commission in English. Institutions providing information to students in a language other than English must retain a translation certifying the accuracy of the language of the documents in English. All information and documentation submitted pursuant to the provisions of these rules shall be accompanied by certification signed by the chief administrative officer of the institution, affirming that the information and documentation submitted is accurate. Any application or review which is not substantially complete shall be returned to the institution with a request to complete and resubmit the material.

(1) through (5) No change.

(6) Standard 6: Finances. All institutions must demonstrate that the financial structure of the institution is sound, with resources sufficient for the proposed operations of the institution and the discharge of its obligations to the students. To demonstrate this, the school shall provide the following:

(a) Initial Provisional License, Extension of Initial Provisional License or Provisional License Due to Change in Ownership:

1. A business plan setting forth the sources, kinds and amounts of both current and anticipated financial resources. The plan shall include a budget for the institution’s first year of operation, clearly identifying sources of revenue to ensure effective operations. Institutions shall submit information relating to their business plans on Form CIE 605, Business Plan, ( ), effective___________. Institutions shall submit information relating to their budgets on Form CIE 606, Projected or Actual Budget, ( ), effective __________. These forms are incorporated by reference and may be obtained without cost from the Commission’s website at www.fldoe.org/cie or by writing to the Commission for Independent Education at 325 West Gaines Street, Suite 1414, Tallahassee, Florida 32399-0400.

2. A pro forma balance sheet prepared for the type of institution making application.

3. A If the corporation that controls the institution is ongoing, the institution shall provide a financial statement of the parent corporation that controls the institution compiled, reviewed or audited in accordance with Generally Accepted Accounting Principles, prepared by an independent certified public accountant. This statement must demonstrate sufficient resources to ensure appropriate institutional development.

4. Institutions that are new and do not have a history of educational operations shall provide financial statements of the controlling principals, compiled, reviewed, or audited by an independent certified public accountant. These statements must demonstrate sufficient resources to ensure appropriate institutional development.

(b) Annual License, Extension of Extended Annual License, or Annual Review:

1. through (12) No change.

Rulemaking Authority 1005.22(1)(e), 1005.31(2), (3), 1005.34, 1005.39 FS. Law Implemented 1005.04, 1005.31, 1005.33(1), 1005.34, 1005.39 FS. History–Repromulgated 12-5-74, Formerly 6E-3.01(1), Readopted 11-11-75, Amended 3-7-77, 5-7-79, 10-13-83, Formerly 6E-2.04, Amended 11-27-88, 11-29-89, 12-10-90, 10-19-93, 4-2-96, 4-11-00, 1-7-03, 4-5-04, 5-24-04, 7-20-04, 5-18-05, 7-10-06, 7-23-07, 1-11-12,_________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Samuel L. Ferguson, Executive Director, Commission for Independent Education
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: The Commission for Independent Education
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 14, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 26, 2012