This report of the second part of a proprietary education research and dissemination project (see note) covers three main areas related to proprietary schools: (1) the Directory of Illinois Resident Proprietary Schools (included); (2) development of a model inservice competency-based teacher education program for instructional personnel; and (3) a report on the nature of cooperative contractural agreements between state public community colleges and proprietary schools. The study on inservice teacher education shows cosmetology, business, and "other" schools have little need for inservice programs. Results show the preferred format for training is short seminars or workshops. It is recommended that a means of disseminating training materials be developed for proprietary schools and that more studies be undertaken on the subject. A suggested inservice model, using performance-based teacher education modules developed by the National Center for Research in Vocational Education, is included along with discussion of three other program models. The report of college-proprietary school agreements focuses on a comparative cost analysis of selected contracted programs and discusses benefits and limitations of cooperative contractual agreements. A summary of findings, collected via mail and phone survey, is presented, followed by a suggested handbook that outlines a four-phase model agreement process. Literature reviews on inservice programs and cooperative agreements are included and project working papers are appended. (CP)