Majestic Ranch in Randolph - one of four Utah boarding schools that cater to troubled teens - has, until recently, failed to become licensed as required by law. It is the only school to fall short of health and safety benchmarks imposed in October 2005.
The hang-up: minor changes to an employee handbook, say regulators, who permitted the school to operate without a license for the past 18 months. Regulators say no harm was done; because Majestic is in good standing, they granted the school a probationary license on June 25.
But the school's slow road to compliance points to a larger problem with Utah's oversight of adoption agencies, wilderness camps, schools and other programs for vulnerable children: a loophole in state law.
Operating these businesses without a license is a class A misdemeanor - but only if someone is harmed, said Ken Stettler, Human Services licensing director.
"Usually if it's a new program just coming on, then they simply don't begin operation until they're licensed," said Stettler. "What was uncommon in [Majestic's] case was that we had an existing program that was already operating when the laws went into effect. In this case we don't close them down."
But at least one new
business venture - an adoption agency - slipped through
the loophole.
Focus on Children, now defunct and facing federal
charges of running a baby smuggling operation in Samoa,
did business in Utah for 2 1/2 years without a license.
The agency's owners applied in March 2001, but did not
submit all the paperwork. After nudging from regulators,
they were licensed on August 1, 2003.
No one, to Stettler's knowledge, is lobbying to give
regulators stronger powers to insist on licensing.
Utah's Republican-dominated Legislature has
traditionally opposed government meddling in the private
sector. "Therapeutic" boarding schools, including
21-year-old Majestic Ranch, went unregulated until 2005.
The law defines "therapeutic schools" as serving
students "who have a history of failing to function at
home or public school" and that offer room and board.
Majestic initially fought regulation through its partner
World Wide Association of Speciality Programs, a
Utah-based chain of get-tough treatment programs.
Later, after it came to light that Majestic had been
investigated three times for abuse, the boarding school
became a proponent of regulation. Only one probe ended
in a criminal charge and conviction when a staffer - who
was eventually fired - pleaded guilty to misdemeanor
assault.
Child welfare caseworkers received another complaint of
abuse in 2005, but dismissed it as having no merit, said
Carol Sisco, Human Services spokeswoman.
Tammy Johnson, Majestic Ranch director, said the
licensing process has helped foster better relations
with the state, but it hasn't changed the school's
curricula or practices.
"The only thing that changed is we have to file more
paperwork; quite a bit more paperwork," said Johnson.
Johnson blames some of the licensing delays on
regulators who took a year to review Majestic's
policies, but stressed, "they've been wonderful to work
with."
Bad press, stemming from "frivolous" complaints from
disgruntled employees, have hurt Majestic, said Johnson.
Over the past two years enrollment has dropped from
about 60 students to 32, Johnson said. The school caters
to 7-to-14-year-olds; annual tuition costs about
$42,000.
"We lose on average of five kids a month to negative
publicity on the Internet. It's unfortunate," said
Johnson. "I wouldn't be able to come to work every day
if I didn't feel I was making a difference in these
families' and students' lives. It's not an easy job."
World Wide also has suffered. In 2005, there were seven
schools in the network. Now there are two, including
Majestic Ranch, said World Wide president Ken Kay.
Kay likens World Wide to a trade or service organization
that helps market, handle admissions and purchase
classroom materials for boarding schools. But the group
also leases buildings to schools. And Majestic owner Dan
Peart is related by marriage to World Wide founder
Robert Lichfield.
Still, Kay said Majestic will probably sever ties with
World Wide.
"There's a time for everything. At one point, it was a
necessity for a bunch of schools to get together. But as
schools grew, they decided they could do everything on
their own. I'd be surprised if World Wide lasted more
than a year."
kstewart@sltrib.com