Missouri 2025 Regular Session

Missouri Senate Bill SB690 Compare Versions

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22 EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
33 and is intended to be omitted in the law.
44 FIRST REGULAR SESSION
55 SENATE BILL NO. 690
66 103RD GENERAL ASSEMBLY
77 INTRODUCED BY SENATOR GREGORY (21).
88 2702S.01I KRISTINA MARTIN, Secretary
99 AN ACT
1010 To repeal sections 173.612 and 173.616, RSMo, and to enact in lieu thereof two new sections
1111 relating to proprietary schools.
1212
1313 Be it enacted by the General Assembly of the State of Missouri, as follows:
1414 Section A. Sections 173.612 and 173.616, RSMo, are 1
1515 repealed and two new sections enacted in lieu thereof, to be 2
1616 known as sections 173.612 and 173.616, to read as fo llows:3
1717 173.612. 1. The board shall, through the department 1
1818 of higher education and workforce development, administer, 2
1919 supervise, and enforce the provisions and policies of 3
2020 sections 173.600 to 173.618 and shall assign the personnel 4
2121 that are necessary to exercise its powers and duties. 5
2222 2. The rules and regulations adopted by the board 6
2323 under sections 173.600 to 173.618, together with any 7
2424 amendments thereto, shall be filed with the office of the 8
2525 secretary of state. The board may: 9
2626 (1) Issue proprietary school certificates of approval 10
2727 or temporary certificates of approval to applicants meeting 11
2828 the requirements of sections 173.600 to 173.618; 12
2929 (2) Suspend or revoke certificates or temporary 13
3030 certificates of approval, or place cert ified schools on 14
3131 probation; 15
3232 (3) Require each proprietary school to file a security 16
3333 bond with the board, through the department of higher 17
3434 education and workforce development, covering the school and 18 SB 690 2
3535 its agents to indemnify any student, enrollee or parent, 19
3636 guardian, or sponsor of a student or enrollee who suffers 20
3737 loss or damage because of a violation of sections 173.600 to 21
3838 173.618 by the school, or because a student is unable to 22
3939 complete the course due to the school's ceasing operation or 23
4040 because a student does not receive a refund to which he is 24
4141 entitled. In the event a student, enrollee or parent, 25
4242 guardian, or sponsor of a student suffers loss or damage 26
4343 because of a violation of sections 173.600 to 173.618 by the 27
4444 school, or a student is u nable to complete a course or 28
4545 program due to the school ceasing operations, or a student 29
4646 does not receive a refund to which such student is entitled, 30
4747 the school shall forfeit the entirety of the security bond 31
4848 to the department of higher education and w orkforce 32
4949 development, and such department shall utilize the proceeds 33
5050 of the security bond to indemnify students and to secure and 34
5151 administer student records as appropriate. The bond or 35
5252 other security shall cover all the facilities and locations 36
5353 of a proprietary school and shall not be less than five 37
5454 thousand dollars or ten percent of the preceding year's 38
5555 gross tuition, whichever is greater, but in no case shall it 39
5656 exceed one hundred thousand dollars. The bond shall clearly 40
5757 state that the school a nd the agents of the school are 41
5858 covered by it. The board may authorize the use of 42
5959 certificates of deposit, letters of credit, or other assets 43
6060 to be posted as security in lieu of this surety bond 44
6161 requirement; 45
6262 (4) Collect only that data from certi fied proprietary 46
6363 schools necessary to administer, supervise, and enforce the 47
6464 provisions of sections 173.600 to 173.619. The department 48
6565 shall, subject to appropriations, provide a system to 49
6666 electronically submit all data; 50 SB 690 3
6767 (5) Review proposals for new programs within ninety 51
6868 days from the date that a certified school submits a new 52
6969 program for review, and review proposals for revised 53
7070 programs within sixty days from the date that a certified 54
7171 school submits a revised program for review. If the 55
7272 department fails to review a proposal for a new or revised 56
7373 program within the prescribed time frame, the school shall 57
7474 be permitted to offer the program until the department 58
7575 completes its review and identifies a substantive issue or 59
7676 issues that need corre ction. In such case the department 60
7777 shall notify the school within an additional ninety days and 61
7878 the school shall then have ninety days from the date it is 62
7979 informed that a program offering has a deficiency to correct 63
8080 the deficiency without having to ce ase offering the program; 64
8181 (6) Administer sections 173.600 to 173.618 and 65
8282 initiate action to enforce it. 66
8383 3. Any school which closes or whose certificate of 67
8484 approval is suspended, revoked, or not renewed shall, on the 68
8585 approval of the coordinat ing board, make partial or full 69
8686 refund of tuition and fees to the students enrolled, 70
8787 continue operation under a temporary certificate until 71
8888 students enrolled have completed the program for which they 72
8989 were enrolled, make arrangements for another school or 73
9090 schools to complete the instruction for which the students 74
9191 are enrolled, employ a combination of these methods in order 75
9292 to fulfill its obligations to the students, or implement 76
9393 other plans approved by the coordinating board. 77
9494 4. Any rule or portion of a rule promulgated pursuant 78
9595 to sections 173.600 to 173.618 may be suspended by the joint 79
9696 house-senate committee on administrative rules until such 80
9797 time as the general assembly may by concurrent resolution 81
9898 signed by the governor reinstate such r ule. 82 SB 690 4
9999 173.616. 1. The following schools, training programs, 1
100100 and courses of instruction shall be exempt from the 2
101101 provisions of sections 173.600 to 173.618: 3
102102 (1) A public institution; 4
103103 (2) Any college or university represented directly or 5
104104 indirectly on the advisory committee of the coordinating 6
105105 board for higher education as provided in subsection 3 of 7
106106 section 173.005; 8
107107 (3) An institution that is certified by the board as 9
108108 an approved private institution under subdivisio n (2) of 10
109109 subsection 1 of section 173.1102; 11
110110 (4) A not-for-profit religious school that is 12
111111 accredited by the American Association of Bible Colleges, 13
112112 the Association of Theological Schools in the United States 14
113113 and Canada, or a regional accrediting a ssociation, such as 15
114114 the North Central Association, which is recognized by the 16
115115 Council on Postsecondary Accreditation and the United States 17
116116 Department of Education; and 18
117117 (5) Beginning July 1, 2008, all out -of-state public 19
118118 institutions of higher edu cation, as such term is defined in 20
119119 subdivision (14) of subsection 2 of section 173.005. 21
120120 2. The coordinating board shall exempt the following 22
121121 schools, training programs and courses of instruction from 23
122122 the provisions of sections 173.600 to 173.618: 24
123123 (1) A not-for-profit school owned, controlled and 25
124124 operated by a bona fide religious or denominational 26
125125 organization which offers no programs or degrees and grants 27
126126 no degrees or certificates other than those specifically 28
127127 designated as theological, bible, divinity or other 29
128128 religious designation; 30
129129 (2) A not-for-profit school owned, controlled and 31
130130 operated by a bona fide eleemosynary organization which 32 SB 690 5
131131 provides instruction with no financial charge to its 33
132132 students and at which no part of the in structional cost is 34
133133 defrayed by or through programs of governmental student 35
134134 financial aid, including grants and loans, provided directly 36
135135 to or for individual students; 37
136136 (3) A school which offers instruction only in subject 38
137137 areas which are primaril y for avocational or recreational 39
138138 purposes as distinct from courses to teach employable, 40
139139 marketable knowledge or skills, which does not advertise 41
140140 occupational objectives and which does not grant degrees; 42
141141 (4) A course of instruction, study or train ing program 43
142142 sponsored by an employer for the training and preparation of 44
143143 its own employees; 45
144144 (5) A course of instruction, study, or training 46
145145 program offered by a training provider as part of a 47
146146 registered apprenticeship, as approved by the United S tates 48
147147 Department of Labor, or a course of instruction, study, or 49
148148 training program offered by a training provider as part of a 50
149149 pre-apprenticeship approved by the office of workforce 51
150150 development in the department of higher education and 52
151151 workforce development as determined in reference to 53
152152 standards promulgated by such department; 54
153153 (6) A course of study or instruction conducted by a 55
154154 trade, business or professional organization with a closed 56
155155 membership where participation in the course is limited to 57
156156 bona fide members of the trade, business or professional 58
157157 organization, or a course of instruction for persons in 59
158158 preparation for an examination given by a state board or 60
159159 commission where the state board or commission approves that 61
160160 course and school; 62
161161 [(6)] (7) A school or person whose clientele are 63
162162 primarily students aged sixteen or under; 64 SB 690 6
163163 [(7)] (8) A yoga teacher training course, program, or 65
164164 school. 66
165165 3. A school which is otherwise licensed and approved 67
166166 under and pursuant to any oth er licensing law of this state 68
167167 shall be exempt from sections 173.600 to 173.618, but a 69
168168 state certificate of incorporation shall not constitute 70
169169 licensing for the purpose of sections 173.600 to 173.618. 71
170170 4. Any school, training program or course of 72
171171 instruction exempted herein may elect by majority action of 73
172172 its governing body or by action of its director to apply for 74
173173 approval of the school, training program or course of 75
174174 instruction under the provisions of sections 173.600 to 76
175175 173.618. Upon application to and approval by the 77
176176 coordinating board, such school training program or course 78
177177 of instruction may become exempt from the provisions of 79
178178 sections 173.600 to 173.618 at any subsequent time, except 80
179179 the board shall not approve an application for ex emption if 81
180180 the approved school is then in any status of noncompliance 82
181181 with certification standards and a reversion to exempt 83
182182 status shall not relieve the school of any liability for 84
183183 indemnification or any penalty for noncompliance with 85
184184 certification standards during the period of the school's 86
185185 approved status. 87
186186