HOUSE BILL NO. 1269 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE HOVIS.
2663H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 173.612 and 173.616, RSMo, and to enact in lieu thereof two new sections relating to proprietary schools.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 173.612 and 173.616, RSMo, are repealed and two new sections 2 enacted in lieu thereof, to be known as sections 173.612 and 173.616, to read as follows: 173.612. 1. The board shall, through the department of higher education and 2 workforce development, administer, supervise, and enforce the provisions and policies of 3 sections 173.600 to 173.618 and shall assign the personnel that are necessary to exercise its 4 powers and duties. 5 2. The rules and regulations adopted by the board under sections 173.600 to 173.618, 6 together with any amendments thereto, shall be filed with the office of the secretary of state. 7 The board may: 8 (1) Issue proprietary school certificates of approval or temporary certificates of 9 approval to applicants meeting the requirements of sections 173.600 to 173.618; 10 (2) Suspend or revoke certificates or temporary certificates of approval, or place 11 certified schools on probation; 12 (3) Require each proprietary school to file a security bond with the board, through 13 the state department of higher education and workforce development, covering the 14 school and its agents to indemnify any student, enrollee or parent, guardian, or sponsor of a 15 student or enrollee who suffers loss or damage because of a violation of sections 173.600 to 16 173.618 by the school, or because a student is unable to complete [the] a course or program 17 due to the school's ceasing operation or because a student does not receive a refund to which
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1269 2
18 [he] such student is entitled. In the event a student, enrollee, or parent, guardian, or 19 sponsor of a student or enrollee suffers loss or damage because of a violation of sections 20 173.600 to 173.618 by the school, or a student or enrollee is unable to complete a course 21 or program due to the school ceasing operations, or because a student or enrollee does 22 not receive a refund to which such student or enrollee is entitled, the school shall forfeit 23 the entirety of the security bond to the department and the department shall use 24 proceeds to indemnify students and enrollees and to secure and administer student and 25 enrollee records as appropriate. The bond or other security shall cover all the facilities and 26 locations of a proprietary school and shall not be less than five thousand dollars or ten percent 27 of the preceding year's gross tuition, whichever is greater, but in no case shall it exceed one 28 hundred thousand dollars. The bond shall clearly state that the school and the agents of the 29 school are covered by it. The board may authorize the use of certificates of deposit, letters of 30 credit, or other assets to be posted as security in lieu of this surety bond requirement; 31 (4) Collect only that data from certified proprietary schools necessary to administer, 32 supervise, and enforce the provisions of sections 173.600 to 173.619. The department shall, 33 subject to appropriations, provide a system to electronically submit all data; 34 (5) Review proposals for new programs within ninety days from the date that a 35 certified school submits a new program for review, and review proposals for revised programs 36 within sixty days from the date that a certified school submits a revised program for review. 37 If the department fails to review a proposal for a new or revised program within the 38 prescribed time frame, the school shall be permitted to offer the program until the department 39 completes its review and identifies a substantive issue or issues that need correction. In such 40 case the department shall notify the school within an additional ninety days and the school 41 shall then have ninety days from the date it is informed that a program offering has a 42 deficiency to correct the deficiency without having to cease offering the program; 43 (6) Administer sections 173.600 to 173.618 and initiate action to enforce it. 44 3. Any school [which] that closes or whose certificate of approval is suspended, 45 revoked, or not renewed shall, on the approval of the coordinating board, make partial or full 46 refund of tuition and fees to the students enrolled, continue operation under a temporary 47 certificate until students enrolled have completed the program for which they were enrolled, 48 make arrangements for another school or schools to complete the instruction for which the 49 students are enrolled, employ a combination of these methods in order to fulfill its obligations 50 to the students, or implement other plans approved by the coordinating board. 51 4. Any rule or portion of a rule promulgated pursuant to sections 173.600 to 173.618 52 may be suspended by the joint [house-senate] committee on administrative rules until such 53 time as the general assembly may by concurrent resolution signed by the governor reinstate 54 such rule. HB 1269 3
173.616. 1. The following schools, training programs, and courses of instruction 2 shall be exempt from the provisions of sections 173.600 to 173.618: 3 (1) A public institution; 4 (2) Any college or university represented directly or indirectly on the advisory 5 committee of the coordinating board for higher education as provided in subsection 3 of 6 section 173.005; 7 (3) An institution that is certified by the board as an approved private institution 8 under subdivision (2) of subsection 1 of section 173.1102; 9 (4) A not-for-profit religious school that is accredited by the American Association of 10 Bible Colleges, the Association of Theological Schools in the United States and Canada, or a 11 regional accrediting association, such as the North Central Association, which is recognized 12 by the Council on Postsecondary Accreditation and the United States Department of 13 Education; and 14 (5) Beginning July 1, 2008, all out-of-state public institutions of higher education, as 15 such term is defined in subdivision (14) of subsection 2 of section 173.005. 16 2. The coordinating board shall exempt the following schools, training programs and 17 courses of instruction from the provisions of sections 173.600 to 173.618: 18 (1) A not-for-profit school owned, controlled, and operated by a bona fide religious or 19 denominational organization [which] that offers no programs or degrees and grants no 20 degrees or certificates other than those specifically designated as theological, bible, divinity, 21 or other religious designation; 22 (2) A not-for-profit school owned, controlled, and operated by a bona fide 23 eleemosynary organization [which] that provides instruction with no financial charge to its 24 students and at which no part of the instructional cost is defrayed by or through programs of 25 governmental student financial aid, including grants and loans, provided directly to or for 26 individual students; 27 (3) A school [which] that offers instruction only in subject areas [which] that are 28 primarily for avocational or recreational purposes as distinct from courses to teach 29 employable, marketable knowledge or skills, [which] that does not advertise occupational 30 objectives, and [which] that does not grant degrees; 31 (4) A course of instruction[,] or study or a training program sponsored by an 32 employer for the training and preparation of its own employees; 33 (5) A course of instruction or study or a training program offered by a training 34 provider as part of a registered apprenticeship, as approved by the United States 35 Department of Labor; 36 (6) A course of instruction or study or a training program offered by a training 37 provider as part of a preapprenticeship approved by the office of workforce HB 1269 4
38 development in the state department of higher education and workforce development as 39 determined by reference to standards promulgated by the department; 40 (7) A course of study or instruction conducted by a trade, business, or professional 41 organization with a closed membership where participation in the course is limited to bona 42 fide members of the trade, business, or professional organization, or a course of instruction 43 for persons in preparation for an examination given by a state board or commission where the 44 state board or commission approves that course and school; 45 [(6)] (8) A school or person whose clientele are primarily students aged sixteen or 46 under; 47 [(7)] (9) A yoga teacher training course, program, or school. 48 3. A school [which] that is otherwise licensed and approved under [and pursuant to] 49 any other licensing law of this state shall be exempt from sections 173.600 to 173.618, but a 50 state certificate of incorporation shall not constitute licensing for the purpose of sections 51 173.600 to 173.618. 52 4. Any school, training program, or course of instruction exempted herein may elect 53 by majority action of its governing body or by action of its director to apply for approval of 54 the school, training program, or course of instruction under the provisions of sections 173.600 55 to 173.618. Upon application to and approval by the coordinating board, such school, 56 training program, or course of instruction may become exempt from the provisions of sections 57 173.600 to 173.618 at any subsequent time, except the board shall not approve an application 58 for exemption if the approved school is then in any status of noncompliance with certification 59 standards and a reversion to exempt status shall not relieve the school of any liability for 60 indemnification or any penalty for noncompliance with certification standards during the 61 period of the school's approved status. ✔
Statutes affected: