(1) The board may give preliminary approval to applicants for school licensure before inspections are scheduled and conducted. If preliminary approval is denied, the applicant shall correct any deficiencies and resubmit the application. Failure to resubmit within 90 days shall be treated as a voluntary withdrawal of the application and the fees shall be forfeited.

(2) Applicants shall designate the type of school and which courses are to be offered as follows:

(a) barbering school;

(b) school of cosmetology, consisting of a cosmetology course and one or more of the following:

(i) barbering course;

(ii) esthetics course;

(iii) manicuring course; or

(iv) supplemental barbering course.

(c) school of electrology;

(d) school of esthetics;

(e) school of manicuring; or

(f) teacher training course.

(3) School applicants shall present a bond or other security in the amount of $5000 and in a form and manner prescribed by the board.

(a) The bond or other security may only be used to provide a refund of prepaid tuition to enrolled students in the event the school ceases to operate or otherwise is unable to complete the course of instruction.

(b) Cosmetology schools offering courses in barbering, esthetics, manicuring, and/or supplemental barbering shall be required to post a $5000 bond or other security for each course.

(4) Schools shall not allow the bond or other security to be cancelled or to expire as long as the school is licensed and shall submit to the board proof of continuous annual renewal of the bond or other security.

(5) As part of the application, the school applicant shall submit a financial report prepared by a certified public accountant (CPA) indicating the financial solvency of the school.

(6) Schools shall provide true and accurate copies of all current school policies, procedures, rules, student contracts, tuition costs, and required deposits, including but not limited to those policies, procedures, and rules addressing:

(a) students;

(b) school operating standards;

(c) disciplinary procedures;

(d) permissible attire;

(e) ethics/conduct;

(f) leaves of absence;

(g) attendance;

(h) holidays and school closures;

(i) hours of operation;

(j) refunds;

(k) withdrawals;

(l) grounds for termination;

(m) grading standards;

(n) final practical examination and passing score;

(o) requirements for satisfactory progress;

(p) release of information; and

(q) instructional demonstrations.

(7) Schools shall be subject to unscheduled on-site inspections or audits by a designee directed by the board to determine:

(a) compliance with board statutes, rules, policies, and procedures; and/or

(b) adequacy of student files and required school documentation.

(8) As part of the inspection, investigation, or audit process the board may use information found by or prepared for the Department of Education or other applicable national accrediting associations' or commissions' reviews.