The proposed rule will modify the surety bond requirement and specify that the maximum surety bond needed would be $25,000 or 125 percent of unearned tuition, whichever is less. This would require total bond coverage of about $2.1 million. Using the same cost information, this level of bond coverage would cost schools approximately $21,000. The resulting $72,000 in savings would offset the $50,900 of costs associated with the new fee.
The overall fiscal impact of this proposed rule on EAB-approved schools will result in estimated net savings of about $21,100. However, individual schools will be affected differently based on their specific financial circumstances. Based on an analysis of individual school information, the proposed rule will result in savings for 55 schools. Forty-four schools will experience an increase of less than $100 and 31 will incur an increase greater than $100.
Although some schools will experience a cost increase, many of them are already experiencing savings because their current bond reflects a reduction granted by the EAB. Thus, the calculated increase may not be representative of the “true savings."
As the amount of revenue generated by schools subject to EAB oversight increases, so will the fees collected under the provisions of this rule. However, under s.
45.54 (10) (cm),
Stats., the EAB is required to discontinue collecting fees to support the student protection fund during the period of time that the balance in the fund exceeds $1.0 million. Assuming that no payments are made from the student protection fund and that unexpended annual operating revenues are transferred into the fund, it is estimated that it will take nearly 10 years to reach the $1.0 million threshold. At that time, schools subject to EAB oversight would no longer be assessed a fee.
Summary of Comments by Legislative Review Committees
No comments were received.
An order affecting ch.
Phar 6 relating to the professional service area requirements where the pharmacist is absent. Effective 6-1-04.
Summary of Final Regulatory Flexibility Analysis
These rules will have no significant economic impact on a substantial number of small businesses, as defined in s.
227.114 (1) (a), Stats.
Summary of Comments by Legislative Review Committees
No comments were received.
An order affecting chs.
Psy 1 and
5, relating to the definition of prohibited dual relationships, the elaboration of the prohibition on exploitative relationships, the responsibility of license-holders to cooperate with board investigations, a requirement to maintain records, and violations of broad orders. Effective 6-1-04.
Summary of Final Regulatory Flexibility Analysis
These rules will have no significant economic impact on a substantial number of small businesses, as defined in s.
227.114 (1) (a), Stats.
Summary of Comments by Legislative Review Committees
No comments were received.
An order affecting ch.
Trans 149, relating titling and registration of homemade, reconstructed or repaired salvage vehicles.
Effective 6-1-04.
Summary of Final Regulatory Flexibility Analysis
The amendments of these rules have no direct affect on small businesses.
Summary of Comments by Legislative Review Committees
No comments were received.
An order affecting chs.
DWD 290 and
293, relating to the adjustment of thresholds for application of prevailing wage rates and payment and performance assurance requirements. Effective 6-1-04.
Summary of Final Regulatory Flexibility Analysis
A final regulatory flexibility analysis is not required because the rule does not affect small business as defined in s.
227.114, Stats.
Summary of Comments by Legislative Review Committees
No comments were received.
