This report presents the findings and conclusions of a study undertaken at the request of the Louisiana Legislature to examine the feasibility of the award of associate degrees by nationally accredited proprietary institutions in Louisiana. Information for the study was obtained through a review of the literature, criteria of national and regional agencies for the accreditation of proprietary institutions, and through a questionnaire survey concerning existing practices in other states to which 41 states responded. Included in the report are examinations of the definition of proprietary schools, their historical and present purposes, estimates of enrollment, costs of attendance in comparison to other types of institutions, and their strengths and weaknesses. Also reviewed are the standards of national and regional accrediting agencies and the present practices and future plans of the various states regarding the grant of associate degrees by proprietary schools. Recommendations call for the establishment of a non-academic degree entitled "The Associate in Occupational Studies--(Area of Emphasis)" and of a mechanism for approval of occupational degree proposals from accredited proprietary schools through the current licensing agency, the Board of Elementary and Secondary Education. It is not recommended that proprietary schools award the Associate of Arts or the Associate of Science degrees. (JDS)