We?re a UK-based distance education organization applying for a
Private School license with the Commonwealth of Pennsylvania (Private
Licensed Schools Act, 24 PS 6502). We?re doing this because we?ve set
up an office in Pennsylvania (we use a Virtual Assistant who works
from home), and the State therefore requires us to be licensed. I have
two questions:

*Student Records*

We need to state where student records will be deposited in the event
of the school closing. (PA code 73.23- 73.25  - long term retention of
transcript of academic performance; disposition of students records
statements; and content of disposition statement).

So the first question is:

1. Where, what and how do we deposit our records, and at what cost?
What do other schools, particularly distance learning schools, do? At
present, we enroll around 450 US students a year, and we record their
final grade.

A good answer might be: ?Here are the names and addresses of three
organisations that will house a box of records at a cost of $X.?

*Surety*

We need to provide a surety or bond (73.54) so that, in the event of
our going bust, our students would continue to be tutored. On average
the courses last a year, and our annual US tutoring bill is around
$19,000. So the question is:

2. How do we provide a surety bond? Who will offer this? How much does
it cost? If we provide surety, the amount must be for a minimum of
$10,000.

A good answer might be: ?The XYZ insurance company will provide a
$19,000 bond for an annual cost of $100?.

Hi sadgrove,

I have been researching your questions and as with most things,
nothing is as simple as one might hope, but here we go...

*Student Records*

1. Where, what and how do we deposit our records, and at what cost?
What do other schools, particularly distance learning schools, do?

You will be applying to the State Board of Private Licensed Schools
for your license. Unfortunately, they do not store students' records
but you will be able to store them with a third party whereever it is
the most convenient for you.

State Board of Private Licensed Schools:
How do I obtain a copy of my official transcript if the school I
attended is closed?
"Attached is a list of closed schools and information about the
location of student records. Although the Division of Private Licensed
Schools does not store transcripts, we can direct you to the
repository, records storage area, responsible for holding student
records. If transcripts are available through the repository, a fee
may be required to obtain the transcript. In order to meet licensure
requirements, private schools must have an agreement with another
entity to become the holder of student records in the event of school
closure. If student records for your school are no longer available,
we may be able to assist you by providing a letter."
http://www.pdehighered.state.pa.us/higher/cwp/view.asp?a=5&Q=41135&higherNav=|3076|&higherNav=|1975|1940|

1) The first place to consider for storage is the Pennsylvania Bank
where you have your business account - it is always best to keep as
many things in one place as possible. They not only already know your
particulars but they will probably offer you a more reasonable rate
for storage as part of their "package".

If needed, here is a list of Pennsylvania Banks:
Pennsylvania Banks categorized by city:
http://www.finance-info.net/PA/

Following is an extensive list of schools that have closed in
Pennsylvania along with *where they have their records stored*. You
will see that it ranges anywhere from banks, schools, storage
companies, and private individuals.

*LIST OF CLOSED SCHOOLS AND WHERE THE STUDENT RECORDS ARE STORED:
http://www.pdehighered.state.pa.us/higher/lib/higher/UpdatedClosedSchlList.pdf

Many of the closed schools in the above list have deposited the
student records with "LIFEWORKS-Tom", and that would be the second
place to consider. Unfortunately, Tom won't be available by phone
until Monday.

2) LIFEWORKS- (ask for Tom) 
(also called Vital Records Center)
46 Terminal Way
Pittsburgh, PA 15219-1209
(412)-481-1060
 
3) Alliance Records Management 
1397 Arcadia Road
Lancaster, Pennsylvania 17601
Phone: (717) 293-9702
Toll Free (800) 525-1131
Fax: (717) 293-9729
Email: info@alliancerecords.net

"Two factors determine the cost of any records management program --
the quantity of records to be stored and the activity level of those
records. The quantity of records determines your storage cost and is
usually easy to estimate. Activity is all the things we do with your
records -- access/refile, deliver/pickup, fax, destroy, add/delete.
Activity service charges vary, depending on the type and frequency of
the service performed. Contact us for a quote tailored to your
specific needs."
http://www.alliancerecords.net/hard.html 

Request info:
http://www.alliancerecords.net/form.html

4) PA State Archives 
Rennee 5th Fl 
717-783-6787

5) Iron Mountain
Philadelphia, PA 19102
(610) 234-5100 
(800) 888-2774
http://www.ironmountain.com/Index.asp

I have tried calling several companies to get a quote for storing one
legal-size box, but have not had much luck so far. The operators who
answer the phone won't quote prices and insist on a "sales
representative" calling back - some with a promise of today, others
not until Monday. I did get through to one very nice fellow who told
me there is usually a minimum fee of $60 to 70 per month for 1 to 100
boxes (one box would cost the same as 100 boxes).

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

*Surety*

2. How do we provide a surety bond? Who will offer this? How much does
it cost? 

It is impossible to give you an exact cost given the number of
variables (the most important being your personal financial
situation), but I was able to find the range that you can expect to
pay.

What does a surety bond cost?
"Surety bond premiums vary from one surety to another, but can range
from one-half of one percent to two percent of the contract amount,
depending on the size, type, and duration of the project and the
contractor. In many cases, performance bonds incorporate payment bonds
and maintenance bonds. When bonds are specified in the contract
documents, it is the contractor?s responsibility to obtain the bonds.
The contractor generally includes the bond premium amount in the bid
and the premium generally is payable upon execution of the bond. If
the contract amount changes, the premium will be adjusted for the
change in contract price. Payment and performance bonds typically are
priced based on the value of the contract being bonded, not
necessarily on the size of the bond."
http://www.jwsuretybonds.com/surety_info.htm#cost

Using the example of $19,000 that you gave:

.005 x $19,000 = $ 95
.02 x $19,000 =  $380

JW Bond Consultants, Inc.
9 Village Row
New Hope, PA 18938
ph (215) 862-6100
fx (215) 862-0122
www.JWSuretyBonds.com

It is important to sign up with an agent that you can trust.
Therefore, I would recommend using one of the Pennsylvania Surety
Agents listed on the United States Small Business Administration (SBA)
website:

1) KOG International, Inc.
1021 Hemlock Lane
Enola, PA 17025
Kenneth C. Turner
kenneth.turner10@verizon.net
717 732-9066 / 717 732-9067

2) CBIC Insurance
630 Freedom Busines Center, Suite 404
King of Prussia, PA 19406
Greg Bruno
610 354-0400 / 610 354-8612

3) Atlantic Underwrinting Group, Inc.
244 Center Road, Suite 300
Monroeville, PA 15146
Chuck Croyle
412 374-8222 / 412 374-9497

4) Contract Support Systems, Inc.
3508 Market Street, Suite 415
Philadelphia, PA 19104
Jerry Vallery
215-386-0212 / 215-386-0192

5) Surety Bond Associates
2000 Hamilton Street, #712
Philadelphia, PA 19130
Ellen Neylan
ellen.neylan@suretybondassociates.com
215 763-5815 / 215 763-5816

6) Atlantic Underwriting Group
320 King of Prussia Rd., Suite 100
Radnor, PA 19087
Nancy Nigro
610 293-4070 / 610 293-4065

7) KOG International, Inc.
17 N. Brookside Road
Springfield, PA 19064
Bruce M. Allen
brucekog@rcn.com
610 690-0804 / 610 690-0803 

United States Small Business Administration (SBA):
http://www.sba.gov/pa/phil/

Additional Links:

*GUIDELINES AND FORMS FOR USE IN EVALUATING DISTANCE EDUCATION PROGRAMS/COURSES:
State Board of Private Licensed Schools
Pennsylvania Department of Education
333 Market Street, 12th Floor
Harrisburg, PA 17126-0333
http://www.pdehighered.state.pa.us/higher/lib/higher/PDE-3743.pdf

Pennsylvania - Starting a Business:
If you have questions about state regulations, which are not
answered after reading this booklet, call the Small Business
Resource Division at 1-800-280-3801. The Division?s staff
offers user-friendly services for Pennsylvania entrepreneurs.
http://www.businesslaw.gov/viewstate.cfm?catid1=55119

Pennsylvania Open For Business: Registration forms, etc.
http://www.paopen4business.state.pa.us/paofb/site/default.asp

For more information contact:
Name: 	Division of Private Licensed Schools
Email: 	00prvlic@psupen.psu.edu
Address: 	Bureau of Postsecondary Services
333 Market Street, 12th Floor
Harrisburg, PA  17126-0333
Voice: 	717-783-8228 and TTY: 717-783-8445
Fax: 	717-783-0583

I hope I've been able to answer your questions well enough for you to
move on to your next step in establishing your presence in
Pennsylvania. If you have any questions or need further assistance,
please post a clarification request before closing/rating my answer, I
will be happy to respond.

Thank you and good luck!
hummer

Google Search Terms Used:

pennsylvania banks storage
"State Board of Private Licensed Schools" distance education pennsylvania
"State Board of Private Licensed Schools" pennsylvania
"STATE REGULATION OF NONPUBLIC SCHOOLS" Pennsylvania 
pennsylvania department of education
pennsylvania "correspondence schools"
pennsylvania "distance education" license
pennsylvania Private School license
PA code 73.23- 73.25
pennsylvania disposition of students records
pennsylvania "small business" license
surety bond pennsylvannia
etc.

Superb answer. It's thorough, detailed, precise and practical. Much
more than I expected. Great work!

Thank you, sadgrove - I was out all day and it was lovely to come home
to find your nice note and generous tip, thank you very much. I must
admit, my heart did a little skip when I found the list of closed
school, I couldn't believe my eyes! I wish you all the best with your
school. Take care, hummer