Current law requires each proprietary school to annually apply to the Coordinating Board for Higher Education for a certificate of approval. This act allows a proprietary school in continuous operation for no less than five years to be able to apply for certification valid for two years. (Section 173.606)

This act modifies the fees for a certificate of approval. The base annual fee is set at $.0013 per one dollar of net tuition and fees income with a maximum of five thousand dollars and a minimum of five hundred dollars per school. For a school having a certificate of approval for the sole purpose of recruiting Missouri students, the fee will be five hundred dollars plus the amount produced by the foundation calculation, with a maximum of five thousand dollars. The Coordinating Board may increase the base annual fee every five years, beginning in fiscal year 2013 by administrative rule based on the consumer price index. The Coordinating Board may also establish additional appropriate fees if necessary to generate funding sufficient to cover the entirety of costs associated with the operation of the certification program. (Section 173.608)

Currently, the Coordinating Board may require each proprietary school to file a security bond. This act increases the maximum amount of the security bond from twenty-five thousand dollars to one hundred thousand dollars. This act also limits the Coordinating Board's collection of data from proprietary schools to that which is necessary for the administration, supervision, and enforcement of the proprietary school laws. The Department of Higher Education must establish a system to electronically submit all data. Also, the Department of Higher Education must review new programs within ninety days of a proprietary school's submission of such program and must review a revised program submission within sixty days. If the Department fails to review the program within the established timeframe, the proprietary school may offer the program until the review is completed. If the Department finds an issue that needs correction, it must give the school ninety days' notice and allow for correction. (Section 173.612)

The members of the Proprietary School Advisory Committee will be appointed by the Commissioner of Higher Education, instead of the Coordinating Board. Also, members of the committee must be owners or managerial employees of proprietary schools. At least three members of the committee must represent schools that confer a degree and at least one of the three must represent a school that confers a baccalaureaute degree or higher. (Section 173.614)

This act allows the Department of Higher Education to take action against any violation of the proprietary school laws that is authorized in section 407.020, relating to unlawful merchandising practices. (Section 173.618)

These provisions are also contained in SCS/HCS/HB 1042 (2012) and CCS#2/HCS/HB 455 (2012).