1 | 1 | | |
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2 | 2 | | EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted |
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3 | 3 | | and is intended to be omitted in the law. |
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4 | 4 | | FIRST REGULAR SESSION |
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5 | 5 | | SENATE BILL NO. 690 |
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6 | 6 | | 103RD GENERAL ASSEMBLY |
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7 | 7 | | INTRODUCED BY SENATOR GREGORY (21). |
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8 | 8 | | 2702S.01I KRISTINA MARTIN, Secretary |
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9 | 9 | | AN ACT |
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10 | 10 | | To repeal sections 173.612 and 173.616, RSMo, and to enact in lieu thereof two new sections |
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11 | 11 | | relating to proprietary schools. |
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12 | 12 | | |
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13 | 13 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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14 | 14 | | Section A. Sections 173.612 and 173.616, RSMo, are 1 |
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15 | 15 | | repealed and two new sections enacted in lieu thereof, to be 2 |
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16 | 16 | | known as sections 173.612 and 173.616, to read as fo llows:3 |
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17 | 17 | | 173.612. 1. The board shall, through the department 1 |
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18 | 18 | | of higher education and workforce development, administer, 2 |
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19 | 19 | | supervise, and enforce the provisions and policies of 3 |
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20 | 20 | | sections 173.600 to 173.618 and shall assign the personnel 4 |
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21 | 21 | | that are necessary to exercise its powers and duties. 5 |
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22 | 22 | | 2. The rules and regulations adopted by the board 6 |
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23 | 23 | | under sections 173.600 to 173.618, together with any 7 |
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24 | 24 | | amendments thereto, shall be filed with the office of the 8 |
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25 | 25 | | secretary of state. The board may: 9 |
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26 | 26 | | (1) Issue proprietary school certificates of approval 10 |
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27 | 27 | | or temporary certificates of approval to applicants meeting 11 |
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28 | 28 | | the requirements of sections 173.600 to 173.618; 12 |
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29 | 29 | | (2) Suspend or revoke certificates or temporary 13 |
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30 | 30 | | certificates of approval, or place cert ified schools on 14 |
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31 | 31 | | probation; 15 |
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32 | 32 | | (3) Require each proprietary school to file a security 16 |
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33 | 33 | | bond with the board, through the department of higher 17 |
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34 | 34 | | education and workforce development, covering the school and 18 SB 690 2 |
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35 | 35 | | its agents to indemnify any student, enrollee or parent, 19 |
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36 | 36 | | guardian, or sponsor of a student or enrollee who suffers 20 |
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37 | 37 | | loss or damage because of a violation of sections 173.600 to 21 |
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38 | 38 | | 173.618 by the school, or because a student is unable to 22 |
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39 | 39 | | complete the course due to the school's ceasing operation or 23 |
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40 | 40 | | because a student does not receive a refund to which he is 24 |
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41 | 41 | | entitled. In the event a student, enrollee or parent, 25 |
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42 | 42 | | guardian, or sponsor of a student suffers loss or damage 26 |
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43 | 43 | | because of a violation of sections 173.600 to 173.618 by the 27 |
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44 | 44 | | school, or a student is u nable to complete a course or 28 |
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45 | 45 | | program due to the school ceasing operations, or a student 29 |
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46 | 46 | | does not receive a refund to which such student is entitled, 30 |
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47 | 47 | | the school shall forfeit the entirety of the security bond 31 |
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48 | 48 | | to the department of higher education and w orkforce 32 |
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49 | 49 | | development, and such department shall utilize the proceeds 33 |
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50 | 50 | | of the security bond to indemnify students and to secure and 34 |
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51 | 51 | | administer student records as appropriate. The bond or 35 |
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52 | 52 | | other security shall cover all the facilities and locations 36 |
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53 | 53 | | of a proprietary school and shall not be less than five 37 |
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54 | 54 | | thousand dollars or ten percent of the preceding year's 38 |
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55 | 55 | | gross tuition, whichever is greater, but in no case shall it 39 |
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56 | 56 | | exceed one hundred thousand dollars. The bond shall clearly 40 |
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57 | 57 | | state that the school a nd the agents of the school are 41 |
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58 | 58 | | covered by it. The board may authorize the use of 42 |
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59 | 59 | | certificates of deposit, letters of credit, or other assets 43 |
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60 | 60 | | to be posted as security in lieu of this surety bond 44 |
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61 | 61 | | requirement; 45 |
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62 | 62 | | (4) Collect only that data from certi fied proprietary 46 |
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63 | 63 | | schools necessary to administer, supervise, and enforce the 47 |
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64 | 64 | | provisions of sections 173.600 to 173.619. The department 48 |
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65 | 65 | | shall, subject to appropriations, provide a system to 49 |
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66 | 66 | | electronically submit all data; 50 SB 690 3 |
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67 | 67 | | (5) Review proposals for new programs within ninety 51 |
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68 | 68 | | days from the date that a certified school submits a new 52 |
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69 | 69 | | program for review, and review proposals for revised 53 |
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70 | 70 | | programs within sixty days from the date that a certified 54 |
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71 | 71 | | school submits a revised program for review. If the 55 |
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72 | 72 | | department fails to review a proposal for a new or revised 56 |
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73 | 73 | | program within the prescribed time frame, the school shall 57 |
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74 | 74 | | be permitted to offer the program until the department 58 |
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75 | 75 | | completes its review and identifies a substantive issue or 59 |
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76 | 76 | | issues that need corre ction. In such case the department 60 |
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77 | 77 | | shall notify the school within an additional ninety days and 61 |
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78 | 78 | | the school shall then have ninety days from the date it is 62 |
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79 | 79 | | informed that a program offering has a deficiency to correct 63 |
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80 | 80 | | the deficiency without having to ce ase offering the program; 64 |
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81 | 81 | | (6) Administer sections 173.600 to 173.618 and 65 |
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82 | 82 | | initiate action to enforce it. 66 |
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83 | 83 | | 3. Any school which closes or whose certificate of 67 |
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84 | 84 | | approval is suspended, revoked, or not renewed shall, on the 68 |
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85 | 85 | | approval of the coordinat ing board, make partial or full 69 |
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86 | 86 | | refund of tuition and fees to the students enrolled, 70 |
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87 | 87 | | continue operation under a temporary certificate until 71 |
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88 | 88 | | students enrolled have completed the program for which they 72 |
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89 | 89 | | were enrolled, make arrangements for another school or 73 |
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90 | 90 | | schools to complete the instruction for which the students 74 |
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91 | 91 | | are enrolled, employ a combination of these methods in order 75 |
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92 | 92 | | to fulfill its obligations to the students, or implement 76 |
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93 | 93 | | other plans approved by the coordinating board. 77 |
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94 | 94 | | 4. Any rule or portion of a rule promulgated pursuant 78 |
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95 | 95 | | to sections 173.600 to 173.618 may be suspended by the joint 79 |
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96 | 96 | | house-senate committee on administrative rules until such 80 |
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97 | 97 | | time as the general assembly may by concurrent resolution 81 |
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98 | 98 | | signed by the governor reinstate such r ule. 82 SB 690 4 |
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99 | 99 | | 173.616. 1. The following schools, training programs, 1 |
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100 | 100 | | and courses of instruction shall be exempt from the 2 |
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101 | 101 | | provisions of sections 173.600 to 173.618: 3 |
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102 | 102 | | (1) A public institution; 4 |
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103 | 103 | | (2) Any college or university represented directly or 5 |
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104 | 104 | | indirectly on the advisory committee of the coordinating 6 |
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105 | 105 | | board for higher education as provided in subsection 3 of 7 |
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106 | 106 | | section 173.005; 8 |
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107 | 107 | | (3) An institution that is certified by the board as 9 |
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108 | 108 | | an approved private institution under subdivisio n (2) of 10 |
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109 | 109 | | subsection 1 of section 173.1102; 11 |
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110 | 110 | | (4) A not-for-profit religious school that is 12 |
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111 | 111 | | accredited by the American Association of Bible Colleges, 13 |
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112 | 112 | | the Association of Theological Schools in the United States 14 |
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113 | 113 | | and Canada, or a regional accrediting a ssociation, such as 15 |
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114 | 114 | | the North Central Association, which is recognized by the 16 |
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115 | 115 | | Council on Postsecondary Accreditation and the United States 17 |
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116 | 116 | | Department of Education; and 18 |
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117 | 117 | | (5) Beginning July 1, 2008, all out -of-state public 19 |
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118 | 118 | | institutions of higher edu cation, as such term is defined in 20 |
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119 | 119 | | subdivision (14) of subsection 2 of section 173.005. 21 |
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120 | 120 | | 2. The coordinating board shall exempt the following 22 |
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121 | 121 | | schools, training programs and courses of instruction from 23 |
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122 | 122 | | the provisions of sections 173.600 to 173.618: 24 |
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123 | 123 | | (1) A not-for-profit school owned, controlled and 25 |
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124 | 124 | | operated by a bona fide religious or denominational 26 |
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125 | 125 | | organization which offers no programs or degrees and grants 27 |
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126 | 126 | | no degrees or certificates other than those specifically 28 |
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127 | 127 | | designated as theological, bible, divinity or other 29 |
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128 | 128 | | religious designation; 30 |
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129 | 129 | | (2) A not-for-profit school owned, controlled and 31 |
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130 | 130 | | operated by a bona fide eleemosynary organization which 32 SB 690 5 |
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131 | 131 | | provides instruction with no financial charge to its 33 |
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132 | 132 | | students and at which no part of the in structional cost is 34 |
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133 | 133 | | defrayed by or through programs of governmental student 35 |
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134 | 134 | | financial aid, including grants and loans, provided directly 36 |
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135 | 135 | | to or for individual students; 37 |
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136 | 136 | | (3) A school which offers instruction only in subject 38 |
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137 | 137 | | areas which are primaril y for avocational or recreational 39 |
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138 | 138 | | purposes as distinct from courses to teach employable, 40 |
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139 | 139 | | marketable knowledge or skills, which does not advertise 41 |
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140 | 140 | | occupational objectives and which does not grant degrees; 42 |
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141 | 141 | | (4) A course of instruction, study or train ing program 43 |
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142 | 142 | | sponsored by an employer for the training and preparation of 44 |
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143 | 143 | | its own employees; 45 |
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144 | 144 | | (5) A course of instruction, study, or training 46 |
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145 | 145 | | program offered by a training provider as part of a 47 |
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146 | 146 | | registered apprenticeship, as approved by the United S tates 48 |
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147 | 147 | | Department of Labor, or a course of instruction, study, or 49 |
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148 | 148 | | training program offered by a training provider as part of a 50 |
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149 | 149 | | pre-apprenticeship approved by the office of workforce 51 |
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150 | 150 | | development in the department of higher education and 52 |
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151 | 151 | | workforce development as determined in reference to 53 |
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152 | 152 | | standards promulgated by such department; 54 |
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153 | 153 | | (6) A course of study or instruction conducted by a 55 |
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154 | 154 | | trade, business or professional organization with a closed 56 |
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155 | 155 | | membership where participation in the course is limited to 57 |
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156 | 156 | | bona fide members of the trade, business or professional 58 |
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157 | 157 | | organization, or a course of instruction for persons in 59 |
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158 | 158 | | preparation for an examination given by a state board or 60 |
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159 | 159 | | commission where the state board or commission approves that 61 |
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160 | 160 | | course and school; 62 |
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161 | 161 | | [(6)] (7) A school or person whose clientele are 63 |
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162 | 162 | | primarily students aged sixteen or under; 64 SB 690 6 |
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163 | 163 | | [(7)] (8) A yoga teacher training course, program, or 65 |
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164 | 164 | | school. 66 |
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165 | 165 | | 3. A school which is otherwise licensed and approved 67 |
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166 | 166 | | under and pursuant to any oth er licensing law of this state 68 |
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167 | 167 | | shall be exempt from sections 173.600 to 173.618, but a 69 |
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168 | 168 | | state certificate of incorporation shall not constitute 70 |
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169 | 169 | | licensing for the purpose of sections 173.600 to 173.618. 71 |
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170 | 170 | | 4. Any school, training program or course of 72 |
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171 | 171 | | instruction exempted herein may elect by majority action of 73 |
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172 | 172 | | its governing body or by action of its director to apply for 74 |
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173 | 173 | | approval of the school, training program or course of 75 |
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174 | 174 | | instruction under the provisions of sections 173.600 to 76 |
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175 | 175 | | 173.618. Upon application to and approval by the 77 |
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176 | 176 | | coordinating board, such school training program or course 78 |
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177 | 177 | | of instruction may become exempt from the provisions of 79 |
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178 | 178 | | sections 173.600 to 173.618 at any subsequent time, except 80 |
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179 | 179 | | the board shall not approve an application for ex emption if 81 |
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180 | 180 | | the approved school is then in any status of noncompliance 82 |
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181 | 181 | | with certification standards and a reversion to exempt 83 |
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182 | 182 | | status shall not relieve the school of any liability for 84 |
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183 | 183 | | indemnification or any penalty for noncompliance with 85 |
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184 | 184 | | certification standards during the period of the school's 86 |
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185 | 185 | | approved status. 87 |
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186 | 186 | | |
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