State Legislative and Regulatory Activity Update – July 30, 2012

Earlier this month, Missouri's Department of Higher Education released draft rules implementing HB 1042.  Proposed changes include:

·Increased certification fees.  "The minimum will increase from $250 to $500 and the maximum will increase from $2,500 to $5,000.  For those in between the limits, the multiplier will increase from $.001 to $.0013.  "Per the newly enacted statute, fees will be deposited into a separate account that will be used to fund the costs associated with the operation of the Proprietary School Certification Program.

·Additional criteria, beyond five years of continuous operations, for institutions to receive a biennial recertification.  Such criteria will "ensure such approval is extended only to those schools that are in good standing with the state, accreditors, and the US Department of Education."

·An increase of the maximum security deposit threshold from $25,000 to $100,000.

·The establishment of new fees in order to ensure the revenue generated by the program is sufficient to cover the cost of operations. "Fees are being proposed for certain administrative functions such as new applications, substantive changes or program reviews."

·The implementation of timelines to be followed by the department regarding new program review and the review of substantive program changes. According to the notice on the Missouri Department of Education website, "schools will have a more reliable calendar around which to develop and market new program offerings and to make changes to current programs."

The Department is accepting comments on the draft until July 31st. The Coordinating Board for Higher Education is then expected to consider the rule on September 5th.

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