73R8999 CAS-D
By Delco H.B. No. 1259
Substitute the following for H.B. No. 1259:
By Delco C.S.H.B. No. 1259
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation and operation of proprietary schools and
1-3 to related licenses, permits, and fees; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 PART 1. TEXAS PROPRIETARY SCHOOL ACT
1-6 SECTION 1.01. Section 32.02, Education Code, is amended to
1-7 read as follows:
1-8 Sec. 32.02. Purpose and Objectives. The aim in adopting
1-9 this Chapter is to provide licensing <certification> and regulation
1-10 of proprietary schools in Texas.
1-11 SECTION 1.02. Section 32.11, Education Code, is amended by
1-12 amending Subdivisions (1), (5), and (6) and adding Subdivisions
1-13 (10), (11), and (12) to read as follows:
1-14 (1) "Proprietary School," referred to as "school,"
1-15 means any business enterprise operated for a profit, or on a
1-16 nonprofit basis, which maintains a place of business within the
1-17 State of Texas, or solicits business within the State of Texas, and
1-18 which is not specifically exempted by the provisions of this
1-19 Chapter and;
1-20 (A) which offers or maintains a program <course
1-21 or courses> of instruction <or study>; or
1-22 (B) at which place of business such a program
1-23 <course or courses> of instruction <or study> is available through
1-24 classroom instruction or by correspondence, or both, to a person or
2-1 persons for the purpose of training or preparing the person for a
2-2 field of endeavor in a business, trade, technical, or industrial
2-3 occupation, or for avocational or personal improvement, except as
2-4 hereinafter excluded.
2-5 (5) "Administrator" means the commissioner of higher
2-6 education <State Commissioner of Education> or a person,
2-7 knowledgeable in the administration of regulating proprietary
2-8 schools, designated by the Commissioner to administer the
2-9 provisions of this chapter.
2-10 (6) "Notice to the school" means written
2-11 correspondence sent to the address of record for legal service
2-12 contained in the application for a license to operate <certificate
2-13 of approval>. "Date of Notice" means the date the notice is mailed
2-14 by the administrator.
2-15 (10) "Probation" means a limitation on the continued
2-16 approval of the license held by a school.
2-17 (11) "Central Education Agency" or "State Board of
2-18 Education" means the Texas Higher Education Coordinating Board.
2-19 (12) "Commissioner of Education" means the
2-20 commissioner of higher education.
2-21 SECTION 1.03. Section 32.12, Education Code, is amended to
2-22 read as follows:
2-23 Sec. 32.12. EXEMPTIONS. (a) The following schools or
2-24 educational institutions are specifically exempt from the
2-25 provisions of this chapter and are not within the definition of
2-26 "proprietary school":
2-27 (1) a school or educational institution supported by
3-1 taxation from either a local or State source;
3-2 (2) nonprofit schools owned, controlled, operated, and
3-3 conducted by bona fide religious, denominational, or eleemosynary<,
3-4 or similar public> institutions exempt from property taxation under
3-5 the laws of this State, but such schools may choose to apply for a
3-6 license to operate <certificate of approval> hereunder, and upon
3-7 <approval and> issuance, shall be subject to the provisions of this
3-8 chapter as determined by the administrator;
3-9 (3) a school or training program which offers
3-10 instruction of purely avocational or recreational subjects as
3-11 determined by the administrator;
3-12 (4) a program <course or courses> of instruction <or
3-13 study> sponsored by an employer for the training and preparation of
3-14 its own employees, and for which no tuition fee is charged to the
3-15 student;
3-16 (5) a program <course or courses> of <study or>
3-17 instruction sponsored by a recognized trade, business, or
3-18 professional organization for the instruction of the members of the
3-19 organization with a closed membership;
3-20 (6) private colleges or universities which award a
3-21 recognized baccalaureate, or higher degree, and which maintain and
3-22 operate educational programs for which a majority of the credits
3-23 given are transferable to a college, junior college, or university
3-24 supported entirely or partly by taxation from either a local or
3-25 State source;
3-26 (7) a school which is otherwise regulated and approved
3-27 under and pursuant to any other law of the State, except as
4-1 provided by Subsection (c) of this section;
4-2 (8) aviation schools or instructors approved by and
4-3 under the supervision of the Federal Aviation Administration;
4-4 (9) a school which offers intensive review courses
4-5 designed to prepare students for certified public accountancy
4-6 tests, <public accountancy tests,> law school aptitude tests, bar
4-7 examinations, or medical college admissions tests; and<.>
4-8 (10) schools <(b) Schools> offering a program <course
4-9 or courses> of special <study or> instruction financed <and/>or
4-10 subsidized by local, state or federal funds or any person, firm,
4-11 association, or agency other than the student involved, on a
4-12 contract basis and having a closed enrollment that applies <may
4-13 apply> to the Administrator for exemption <of such course or
4-14 courses from the provisions of this Chapter> and that <such course
4-15 or courses may be declared exempt by> the Administrator declares
4-16 exempt because the program is <where he finds the course or courses
4-17 to be> outside the purview of this Chapter.
4-18 (b) <(c)> If a State agency that issues a license or other
4-19 authorization for the practice of an occupation elects not to
4-20 regulate or approve subject <course> hours that exceed the minimum
4-21 education requirements for the issuance of the license or other
4-22 authorization, the licensing agency shall enter into a memorandum
4-23 of understanding with the Central Education Agency for the
4-24 regulation of those excess subject <course> hours under this
4-25 chapter. Any course taught under a letter of approval or other
4-26 written authorization issued by the licensing agency before the
4-27 effective date of the memorandum is authorized under State law
5-1 until the program <course> is reviewed by the Central Education
5-2 Agency. The licensing agency may terminate the memorandum of
5-3 understanding on notice to the Central Education Agency.
5-4 SECTION 1.04. Section 32.21(b), Education Code, is amended
5-5 to read as follows:
5-6 (b) The Central Education Agency shall prepare a comparison
5-7 of the cost to a student of <courses of instruction or training>
5-8 programs at proprietary schools to the cost to a student of similar
5-9 <courses or> programs at schools that are exempt from this chapter
5-10 under Section 32.12 of this code.
5-11 SECTION 1.05. Effective immediately, Subchapter C, Chapter
5-12 32, Education Code, is amended by adding Section 32.211 to read as
5-13 follows:
5-14 Sec. 32.211. TRANSFER OF ADMINISTRATION TO COORDINATING
5-15 BOARD. (a) The Central Education Agency and the commissioner of
5-16 higher education shall enter into an interagency contract for the
5-17 transfer of the regulation of proprietary schools from the Central
5-18 Education Agency to the Texas Higher Education Coordinating Board.
5-19 The transfer shall take effect on a date specified in the contract,
5-20 but not later than February 1, 1994. On the effective date of the
5-21 transfer:
5-22 (1) all powers, duties, rights, and obligations of the
5-23 Central Education Agency relating to the regulation of proprietary
5-24 schools are transferred to the Texas Higher Education Coordinating
5-25 Board;
5-26 (2) all assets, liabilities, equipment, data,
5-27 documents, facilities, and other items of the Central Education
6-1 Agency relating to the regulation of proprietary schools are
6-2 transferred to the Texas Higher Education Coordinating Board; and
6-3 (3) any appropriation to the Central Education Agency
6-4 relating to the regulation of proprietary schools is transferred to
6-5 the Texas Higher Education Coordinating Board.
6-6 (b) The commissioner of higher education shall publish the
6-7 contract in the Texas Register.
6-8 (c) The officers and employees of the Central Education
6-9 Agency shall cooperate fully with the reorganization.
6-10 (d) Until the effective date of a transfer under Subsection
6-11 (a) of this section, a reference in this chapter to the
6-12 commissioner of higher education is considered to be a reference to
6-13 the commissioner of education, and a reference to the Texas Higher
6-14 Education Coordinating Board is considered to be a reference to the
6-15 Central Education Agency.
6-16 (e) This section does not affect:
6-17 (1) the validity of any action taken by the Central
6-18 Education Agency under this chapter before the effective date of
6-19 the transfer described in Subsection (a) of this section; or
6-20 (2) a civil or administrative proceeding completed
6-21 before the effective date of the transfer.
6-22 (f) This section does not affect the validity of a civil or
6-23 administrative proceeding under this chapter, including
6-24 certification or rulemaking, in progress on the effective date of
6-25 the transfer described in Subsection (a) of this section. A civil
6-26 or administrative proceeding under this chapter that is in progress
6-27 on the effective date of the transfer described in Subsection (a)
7-1 of this section continues as if it had been initiated by the Texas
7-2 Higher Education Coordinating Board under the law in effect on that
7-3 date.
7-4 (g) All forms, rules, and procedures adopted by the Central
7-5 Education Agency for the administration and enforcement of this
7-6 chapter and in effect on the effective date of the transfer
7-7 described in Subsection (a) of this section remain in effect on or
7-8 after that date as if adopted by the Texas Higher Education
7-9 Coordinating Board until amended, repealed, withdrawn, or otherwise
7-10 superseded by the Texas Higher Education Coordinating Board. A
7-11 certificate of approval issued under this chapter and in effect on
7-12 the effective date of the transfer described in Subsection (a) of
7-13 this section remains in effect according to its terms as if issued
7-14 by the Texas Higher Education Coordinating Board until the
7-15 certificate expires or is revoked or surrendered.
7-16 SECTION 1.06. Section 32.23(c), Education Code, is amended
7-17 to read as follows:
7-18 (c) The commission shall meet regularly in Austin once each
7-19 month during the months of March, July, and November at a time and
7-20 on a date designated by the chair <at 10:00 a.m. on the second
7-21 Tuesday of January, May, and September>, and shall conduct special
7-22 meetings at the call of the chair, the administrator, or upon the
7-23 written petition of at least four members of the commission.
7-24 SECTION 1.07. Section 32.24(a), Education Code, is amended
7-25 to read as follows:
7-26 (a) The administrator shall carry out the policies of this
7-27 chapter and enforce the rules and regulations adopted by the State
8-1 Board of Education. He shall also certify the names of those
8-2 schools meeting the requirements for a license to operate
8-3 <certificate of approval>.
8-4 SECTION 1.08. Section 32.31, Education Code, is amended to
8-5 read as follows:
8-6 Sec. 32.31. LICENSE TO OPERATE <CERTIFICATE OF APPROVAL>.
8-7 (a) A school may not maintain, advertise, solicit for, or conduct
8-8 any program <course> of instruction in Texas before the later of:
8-9 (1) the 30th day after the date the school applies for
8-10 a license to operate <certificate of approval> under this chapter;
8-11 or
8-12 (2) the date the school receives a license to operate
8-13 <certificate of approval> from the administrator.
8-14 (b) Any contract entered into with any person for a program
8-15 <course> of instruction after the effective date of this chapter by
8-16 or on behalf of any person operating any school to which a license
8-17 to operate <certificate of approval> has not been issued pursuant
8-18 to the provisions of this chapter, shall be unenforceable in any
8-19 action brought thereon.
8-20 SECTION 1.09. Section 32.32, Education Code, is amended to
8-21 read as follows:
8-22 Sec. 32.32. APPLICATION FOR License to Operate <Certificate
8-23 of Approval>. (a) Every proprietary school desiring to operate in
8-24 the State of Texas or do business in the State shall make written
8-25 application to the administrator for a license to operate
8-26 <certificate of approval>. Such application shall be verified, be
8-27 in such form as may be prescribed by the State Board of Education,
9-1 and shall furnish the administrator such information as he may
9-2 require. The application must include a statement of any final
9-3 convictions of the owners, school directors, recruiters,
9-4 instructional faculty, or other selected personnel of the school as
9-5 determined by the administrator. The administrator may obtain
9-6 criminal history records of school directors or instructional
9-7 faculty from any law enforcement agency, including the United
9-8 States Department of Justice, the Department of Public Safety of
9-9 the State of Texas, the Texas Department of Criminal Justice, or
9-10 the police department of a municipality.
9-11 (b) The State Board of Education may adopt rules providing
9-12 for the issuance of various classes of licenses based on the number
9-13 of students attending the school. The license classifications may
9-14 allow for stricter regulation and greater frequency of inspection
9-15 of large schools, as defined by board rule, and for limited
9-16 regulation of small schools, as defined by board rule.
9-17 (c) The administrator may not use the word "approval" or a
9-18 variation of that term on the license of a school. The terminology
9-19 must be "licensed" to operate, or a variation of that phrase.
9-20 SECTION 1.10. Section 32.33, Education Code, is amended to
9-21 read as follows:
9-22 Sec. 32.33. Criteria. Except for a school or program
9-23 intended to prepare a student for a course, school, or program
9-24 listed in Section 32.331 of this code, the <The> administrator may
9-25 approve the application of such proprietary school when the school
9-26 is found, upon investigation at the premises of the school, to have
9-27 met the following criteria:
10-1 (a) The subjects <courses>, programs <curriculum>, and
10-2 instruction are of such quality, content, and length as may
10-3 reasonably and adequately achieve the stated objective for which
10-4 the subjects <courses>, programs, <curriculum> or instruction are
10-5 offered.
10-6 (b) There is in the school adequate space, equipment,
10-7 instructional material and instructor personnel to provide training
10-8 of good quality.
10-9 (c) Educational and experience qualifications of
10-10 directors, administrators and instructors are adequate.
10-11 (d) The school maintains a written record of the
10-12 previous education and training of the applicant student and
10-13 clearly indicates that appropriate credit has been given by the
10-14 school for previous education and training, with the new training
10-15 period shortened where warranted through use of appropriate skills
10-16 or achievement tests and the student so notified.
10-17 (e) A copy of the program <course> outline; schedule
10-18 of tuition, fees, refund policy, and other charges; regulations
10-19 pertaining to absence, grading policy, and rules of operation and
10-20 conduct; regulations pertaining to incomplete grades; the name,
10-21 mailing address, and telephone number of the Central Education
10-22 Agency for the purpose of directing complaints to the agency; the
10-23 current rates of job placement and employment of students issued a
10-24 certificate of completion; and notification of the availability of
10-25 the cost comparison information prepared under Section 32.21(b) of
10-26 this code through the Central Education Agency will be furnished
10-27 the student prior to enrollment.
11-1 (f) Except as provided by Section 32.40 of this code,
11-2 on completion of training, the student is given a certificate by
11-3 the school indicating the program <course> and that training was
11-4 satisfactorily completed.
11-5 (g) Adequate records as prescribed by the
11-6 administrator are kept to show attendance and progress or grades,
11-7 and satisfactory standards relating to attendance, progress and
11-8 conduct are enforced.
11-9 (h) The school complies with all local, city, county,
11-10 municipal, state and federal regulations<, such as fire, building
11-11 and sanitation codes>. The administrator may require such evidence
11-12 of compliance as is deemed necessary.
11-13 (i) The school is financially sound and capable of
11-14 fulfilling its commitments for training.
11-15 (j) The school's administrators, directors, owners,
11-16 and instructors are of good reputation and character.
11-17 (k) The school has, maintains and publishes in its
11-18 catalogue and enrollment contract, the proper policy for the refund
11-19 of the unused portion of tuition, fees and other charges in the
11-20 event the student enrolled by the school fails to take the program
11-21 <course> or withdraws or is discontinued therefrom at any time
11-22 prior to completion.
11-23 (l) The school does not utilize erroneous or
11-24 misleading advertising, either by actual statement, omission, or
11-25 intimation as determined by the State Board of Education.
11-26 (m) Such additional criteria as may be required by the
11-27 State Board of Education.
12-1 (n) The school does not use a name like or similar to
12-2 an existing tax supported school in the same area.
12-3 (o) The school furnishes to the Central Education
12-4 Agency the current rates of students who receive a certificate of
12-5 completion and of job placement and employment of students issued a
12-6 certificate of completion.
12-7 (p) The school furnishes to the Central Education
12-8 Agency for approval or disapproval student admission requirements
12-9 for each course or program offered by the school.
12-10 (q) The school furnishes to the Central Education
12-11 Agency for approval or disapproval the program <course> hour
12-12 lengths and curriculum content for each program <course> offered by
12-13 the school.
12-14 (r) The school does not owe a civil penalty under
12-15 Section 32.611 of this code.
12-16 SECTION 1.11. Subchapter D, Chapter 32, Education Code, is
12-17 amended by adding Section 32.331 to read as follows:
12-18 Sec. 32.331. TEST PREPARATION PROGRAMS FOR HIGHER EDUCATION
12-19 ENTRANCE; PROFESSIONAL AND OCCUPATIONAL LICENSING; AND SHORT
12-20 COURSES. Test preparation courses, programs, or schools intended
12-21 to prepare students for undergraduate, graduate, or postgraduate
12-22 higher education, professional licensing and occupational entrance
12-23 examinations, and short courses not exceeding 40 hours in length
12-24 may be licensed by the administrator on the administrator's
12-25 determination that the applicant has met the following criteria:
12-26 (1) the school must be educationally sufficient;
12-27 (2) instructors of the school must have the necessary
13-1 educational qualifications;
13-2 (3) the school must be fiscally sound and have the
13-3 necessary assets to offer the programs; and
13-4 (4) the school must comply with other rules and
13-5 regulations the administrator may prescribe.
13-6 SECTION 1.12. Sections 32.34(a)-(e), Education Code, are
13-7 amended to read as follows:
13-8 (a) The administrator, upon review of an application for a
13-9 license to operate <certificate of approval> duly submitted in
13-10 accordance with the provisions of Section 32.32 and meeting the
13-11 requirements of Section 32.33 of this code <chapter>, shall issue a
13-12 license to operate <certificate of approval> to the applicant
13-13 school. The license to operate <certificate of approval> shall be
13-14 in a form recommended by the commission and approved by the State
13-15 Board of Education and shall state in a clear and conspicuous
13-16 manner at least the following information:
13-17 (1) date of issuance, effective date, and term of
13-18 licensing <approval>;
13-19 (2) correct name and address of the school;
13-20 (3) authority for the license <approval> and
13-21 conditions of licensing <approval>, if any, referring specifically
13-22 to the <approved> catalogue or bulletin published by the school;
13-23 (4) signature of the administrator or such person as
13-24 may have been designated by him to administer the provisions of
13-25 this chapter; and
13-26 (5) any other fair and reasonable representations that
13-27 are consistent with this chapter and deemed necessary by the
14-1 administrator.
14-2 (b) The term for which a license to operate <certificate of
14-3 approval> shall be issued shall not exceed one year.
14-4 (c) The license to operate <certificate of approval> shall
14-5 be issued to the owner of the applicant school and shall be
14-6 nontransferable. In the event of a change in ownership of the
14-7 school, a new owner must, at least 60 <thirty (30)> days prior to
14-8 the change in ownership, apply for a new license to operate
14-9 <certificate of approval>.
14-10 (d) At least 60 <thirty (30)> days prior to expiration of a
14-11 license to operate <certificate of approval>, the school shall
14-12 forward to the administrator an application for renewal. The
14-13 administrator shall reexamine the school at the premises of the
14-14 school and either renew or cancel the school's license to operate
14-15 <certificate of approval>. If a school fails to file a complete
14-16 application for renewal at least 60 <thirty (30)> days before the
14-17 expiration date of the license to operate <certificate of
14-18 approval>, the school, as a condition of renewal, must pay, in
14-19 addition to the annual renewal fee, a late renewal fee in an amount
14-20 established by State Board of Education rule of at least $100.
14-21 (e) A school not yet in operation when its application for
14-22 license to operate <certificate of approval> is filed may not begin
14-23 operation until receipt of the license to operate <certificate of
14-24 approval>.
14-25 SECTION 1.13. Section 32.35, Education Code, is amended to
14-26 read as follows:
14-27 Sec. 32.35. Denial of License to Operate <Certificate of
15-1 Approval>. (a) If the administrator, upon review and
15-2 consideration of an application for license to operate <certificate
15-3 of approval>, shall determine the applicant to be unacceptable, the
15-4 administrator shall set forth the reasons for denial, in writing,
15-5 to the applicant.
15-6 (b) Any applicant whose application for a license to operate
15-7 <certificate of approval> is denied shall have the right of appeal
15-8 under Subchapter E of this chapter.
15-9 SECTION 1.14. Section 32.36, Education Code, is amended to
15-10 read as follows:
15-11 Sec. 32.36. DENIAL OF, LIMITATION ON, OR Revocation of
15-12 License to Operate <Certificate of Approval>. (a) The
15-13 Administrator may revoke an issued license to operate <certificate
15-14 of approval> or place reasonable conditions upon <the> continued
15-15 licensing <approval represented by the certificate>. Prior to
15-16 revocation or imposition of conditions upon a license to operate
15-17 <certificate of approval>, the Administrator shall notify the
15-18 holder of the license <certificate>, in writing, of the impending
15-19 action and set forth the grounds for the action. The Administrator
15-20 may reexamine a school two or more times during each year in which
15-21 a notice relating to the school has been issued or conditions have
15-22 been imposed on the school under this subsection.
15-23 (b) A license to operate <certificate of approval> may be
15-24 revoked or made conditional if the Administrator has reasonable
15-25 cause to believe that the school is guilty of a violation of this
15-26 chapter or of any rules and regulations promulgated hereunder.
15-27 (c) The Administrator may deny, suspend, or revoke a license
16-1 to operate or place the school on probation if the school or a
16-2 representative of the school gives a prospective student
16-3 information relating to the school that is false, fraudulent,
16-4 deceptive, substantially inaccurate, or misleading.
16-5 (d) A holder of a license revoked or made conditional under
16-6 this section may appeal the revocation or imposition of conditions
16-7 decision under Subchapter E of this chapter.
16-8 (e) During any period a school is on probation under this
16-9 section, the school must state clearly in any student solicitation
16-10 that the school is on probation.
16-11 SECTION 1.15. Section 32.37(c), Education Code, is amended
16-12 to read as follows:
16-13 (c) Denial or revocation of registration of a representative
16-14 by the administrator shall be in accordance with the provisions of
16-15 this chapter applicable to denial or revocation of a license to
16-16 operate <certificate of approval>; provided, however, the
16-17 administrator may deny, suspend or revoke the registration of a
16-18 representative who has been convicted of a felony, whether within
16-19 or without the State of Texas.
16-20 SECTION 1.16. Section 32.39, Education Code, is amended by
16-21 amending Subsections (a), (b), (c), (d), and (e) and adding
16-22 Subsections (g), (h), and (i) to read as follows:
16-23 (a) As a condition for granting a license to operate
16-24 <certification> each school must maintain a cancellation and
16-25 settlement policy which must provide a full refund of all monies
16-26 paid by a student if:
16-27 (1) the student cancels the enrollment agreement or
17-1 contract within 72 hours (until midnight of the third day excluding
17-2 Saturdays, Sundays, and legal holidays) after the enrollment
17-3 contract is signed by the prospective student;
17-4 (2) the enrollment of the student was procured as the
17-5 result of any misrepresentation in advertising, promotional
17-6 materials of the school, or representations by the owner or
17-7 representatives of the school.
17-8 (b) As a condition for granting a license <certification>,
17-9 each school must maintain a policy for the refund of the unused
17-10 portion of tuition, fees, and other charges in the event the
17-11 student, after expiration of the 72-hour cancellation privilege
17-12 terminates enrollment or is terminated by the school, as provided
17-13 by this subsection, <fails to enter the course, or withdraws, or is
17-14 discontinued therefrom at any time prior to completion,> and such
17-15 policy must provide:
17-16 (1) refunds for resident programs <courses> will be
17-17 based on the period of enrollment computed on the basis of program
17-18 <course> time expressed in clock hours;
17-19 (2) the effective date of the termination for payment
17-20 of a refund <refund purposes> in residence schools will be the
17-21 earliest of the following:
17-22 (A) the last date of attendance, if the student
17-23 is terminated for failure to satisfy a school attendance, grade, or
17-24 work requirement <by the school>;
17-25 (B) the date of receipt of written notice from
17-26 the student;
17-27 (C) the 10th consecutive school day the student
18-1 has been absent, unless any of the absences are excused by the
18-2 school <ten school days following the last date of attendance>; or
18-3 (D) the date the student fails to return, as
18-4 scheduled, from a leave of absence;
18-5 (3) if tuition and fees are <is> collected in advance
18-6 of entrance, and if, after expiration of the 72-hour cancellation
18-7 privilege, the student does not enter the residence school, not
18-8 more than $100 shall be retained by the school;
18-9 (4) for the student who enters a residence program
18-10 <course> of not more than 12 months in length, terminates or
18-11 withdraws, the school may retain $100 of tuition and fees and the
18-12 minimum refund of the remaining tuition and fees will be:
18-13 (A) during the first week or one-tenth of the
18-14 program <course>, whichever is less, 90 percent of the remaining
18-15 tuition and fees;
18-16 (B) after the first week or one-tenth of the
18-17 program <course>, whichever is less, but within the first three
18-18 weeks of the program <course>, 80 percent of the remaining tuition
18-19 and fees;
18-20 (C) after the first three weeks of the program
18-21 <course>, but within the first quarter of the program <course>, 75
18-22 percent of the remaining tuition and fees;
18-23 (D) during the second quarter of the program
18-24 <course>, 50 percent of the remaining tuition and fees;
18-25 (E) during the third quarter of the program
18-26 <course>, 10 percent of the remaining tuition and fees;
18-27 (F) during the last quarter of the program
19-1 <course>, the student may be considered obligated for the full
19-2 tuition and fees;
19-3 (5) for residence programs <courses> more than 12
19-4 months in length, the refund shall be applied to each 12-month
19-5 period, or part thereof separately, in the manner provided by
19-6 Subsection (b)(4) of this section;
19-7 (6) refunds of items of extra expense to the student,
19-8 such as instructional supplies, books, student activities,
19-9 laboratory fees, service charges, rentals, deposits, and all other
19-10 such ancillary miscellaneous charges, where these items are
19-11 separately stated and shown in the data furnished the student
19-12 before enrollment, will be made in a reasonable manner acceptable
19-13 to the administrator;
19-14 (7) refunds based on enrollment in residence schools
19-15 will be totally consummated within 60 <30> days after the effective
19-16 date of termination, as determined under Subdivision (2) of this
19-17 subsection;
19-18 (8) refunds for correspondence programs <courses> will
19-19 be computed on the basis of the number of lessons in the program
19-20 <course>;
19-21 (9) the effective date of the termination for refund
19-22 purposes in correspondence programs <courses> will be the earliest
19-23 of the following:
19-24 (A) the date of notification to the student if
19-25 the student is terminated;
19-26 (B) the date of receipt of written notice from
19-27 the student;
20-1 (C) the end of the third calendar month
20-2 following the month in which the student's last lesson assignment
20-3 was received unless notification has been received from the student
20-4 that he wishes to remain enrolled;
20-5 (10) if tuition and fees are <is> collected before any
20-6 lessons have been completed, and if, after expiration of the
20-7 72-hour cancellation privilege, the student fails to begin the
20-8 program <course>, not more than $50 shall be retained by the
20-9 school;
20-10 (11) in cases of termination or withdrawal after the
20-11 student has begun the correspondence program <course>, the school
20-12 may retain $50 of tuition and fees, and the minimum refund policy
20-13 must provide that the student will be refunded the pro rata portion
20-14 of the remaining tuition fees and other charges that the number of
20-15 lessons completed and serviced by the school bears to the total
20-16 number of lessons in the program <course>;
20-17 (12) refunds based on enrollment in correspondence
20-18 schools will be totally consummated within 60 <30> days after the
20-19 effective date of termination, as determined under Subdivision (9)
20-20 of this subsection.
20-21 (c) In lieu of the refund policy herein set forth, <for
20-22 programs of instruction not regularly offered to the general
20-23 public,> the State Board of Education may, for good cause shown,
20-24 amend, modify, substitute and/or alter the terms of such policy due
20-25 to the specialized nature and objective of the subject school's
20-26 program <course> of instruction, including authorizing a refund on
20-27 a pro rata basis or the elimination of the 72-hour cancellation
21-1 privilege provided by Subsection (a) of this section, for a program
21-2 conducted for 40 or fewer hours, such as a seminar or workshop.
21-3 (d) If a program <course of instruction> is discontinued by
21-4 the school and this prevents the student from completing the
21-5 program <course>, all tuition and fees paid are <then> due and
21-6 refundable.
21-7 (e) If a refund is not made within the period required by
21-8 this section, the school shall pay, as a penalty, interest on the
21-9 refund for the interval beginning with the first day following the
21-10 expiration of the refund period and ending with the day immediately
21-11 preceding the date the refund is made. If the refund is made to a
21-12 lending institution, the interest shall also be paid to that
21-13 institution and applied against the student's loan. The
21-14 commissioner of education annually shall establish the level of
21-15 interest at a level sufficient to provide a deterrent to the
21-16 retention of student funds. The Central Education Agency may
21-17 exempt a school from the payment of the interest if the school
21-18 makes a good faith effort to refund the tuition but is unable to
21-19 locate the student. The school shall provide to the agency on
21-20 request documentation of the effort to locate the student.
21-21 (g) Refunds under this section shall be applied:
21-22 (1) first, to the repayment of student loans;
21-23 (2) second, to the repayment of other government
21-24 loans;
21-25 (3) third, to the repayment of other financial loans;
21-26 and
21-27 (4) last, to the student's personal tuitional
22-1 expenditures.
22-2 (h) Not later than the 30th day after the date on which a
22-3 refund is due to a student who has received a student loan, the
22-4 school shall notify the guaranty agency and the lender of the
22-5 required refund and any refund previously made. The guaranty
22-6 agency and the lender shall notify the student and the school if
22-7 the student's loan has been transferred to another holder.
22-8 (i) The failure of a school or a person to pay a tuition and
22-9 fees refund as required by this section is a deceptive trade
22-10 practice under Subchapter E, Chapter 17, Business & Commerce Code.
22-11 SECTION 1.17. Section 32.401, Education Code, is amended to
22-12 read as follows:
22-13 Sec. 32.401. APPROVED DEGREES. <(a)> A proprietary school
22-14 may offer a <an associate of applied arts or an associate of
22-15 applied science> degree approved by the Texas Higher Education
22-16 Coordinating Board.
22-17 <(b) A proprietary school may offer an applied technology
22-18 degree, an occupational studies degree, or other degree approved by
22-19 the Central Education Agency. The Central Education Agency shall
22-20 have no authority to approve a degree title that uses "associate,"
22-21 "bachelor's," "master's," or "doctor's" in the title and shall
22-22 consult with the Texas Higher Education Coordinating Board to
22-23 ensure that the titles of degrees approved by the agency are
22-24 distinctly different from the titles of degrees approved by the
22-25 board.>
22-26 SECTION 1.18. Subchapter D, Chapter 32, Education Code, is
22-27 amended by adding Sections 32.402-32.4014 to read as follows:
23-1 Sec. 32.402. CONSUMER INFORMATION. (a) A school must
23-2 submit to the administrator for approval, on an annual basis, a
23-3 school catalog or comparable written documents detailing the
23-4 consumer information that must be given to a prospective student
23-5 before enrollment. The school catalog or document must include:
23-6 (1) the name and address of the school and the
23-7 school's governing body and officials;
23-8 (2) a calendar of the school year;
23-9 (3) school policies on enrollment;
23-10 (4) rules relating to absences;
23-11 (5) the school grading policy;
23-12 (6) the school's hours of operation and rules of
23-13 conduct;
23-14 (7) a schedule of the tuition and other fees assessed;
23-15 (8) the school's cancellation and refund policy;
23-16 (9) a general description of the programs offered;
23-17 (10) information on entrance testing and remedial
23-18 development plans;
23-19 (11) state licensing requirements for programs
23-20 intended to result in licensing of the student;
23-21 (12) starting range and reported average salaries for
23-22 the prior year's graduates in occupations for which programs are
23-23 offered, if the information is available;
23-24 (13) the current rates of job placement and employment
23-25 of students who complete a program;
23-26 (14) the school policy on credit for previous
23-27 education and training;
24-1 (15) school regulations relating to incomplete grades;
24-2 (16) information on the transferability of credits
24-3 earned;
24-4 (17) the name, mailing address, and telephone number
24-5 of the administrator for the purpose of directing complaints to the
24-6 administrator and the mechanism and procedures for resolving
24-7 grievances submitted to the administrator;
24-8 (18) a statement that the administrator has
24-9 information on cost comparison with similar schools;
24-10 (19) market and job availability information, if
24-11 available;
24-12 (20) the names of the members of any advisory council
24-13 of the school and the company for which they work; and
24-14 (21) other information required by the administrator
24-15 if reasonable notice has been given by the administrator to the
24-16 school of the additional requirements.
24-17 (b) A school may not accept a signed student enrollment
24-18 contract or accept a student into any school program until at least
24-19 24 hours after the student has received the catalog or comparable
24-20 written documents required under this section.
24-21 (c) A student must sign a receipt stating that:
24-22 (1) the catalog was received by the student before any
24-23 commitment made by the student to the school or by the school to
24-24 the student;
24-25 (2) the student was given an opportunity to discuss
24-26 the catalog with a representative of the school; and
24-27 (3) the student understands the contents and
25-1 implications of the catalog.
25-2 (d) The receipt required by Subsection (c) of this section
25-3 must be placed in the student's permanent school file, and a copy
25-4 of the receipt must be delivered to the student.
25-5 Sec. 32.403. PROGRAM LENGTH AND CURRICULUM. (a) A school
25-6 must submit to the administrator for approval the program lengths
25-7 and curriculum content for each program offered by the school. The
25-8 program lengths and content may not be implemented unless the
25-9 administrator approves them. The program lengths and content shall
25-10 reasonably ensure that students develop the job skills and
25-11 knowledge necessary for employment.
25-12 (b) The administrator shall require a school to fully
25-13 account for all curriculum contents and program lengths before
25-14 issuing or renewing a license to operate, and a school that is
25-15 offering program lengths below or above industry standards may be
25-16 issued a conditional license to operate.
25-17 Sec. 32.404. COMPLETION, EMPLOYMENT, AND PLACEMENT. (a)
25-18 The administrator shall set and enforce minimum standards for
25-19 completion and employment rates of programs, based on collected
25-20 data.
25-21 (b) In determining whether to renew a license to operate,
25-22 the administrator shall consider the completion, placement, and
25-23 employment rates of students of the programs.
25-24 (c) Before a school may begin offering a new program for
25-25 students, the school must show the administrator the opportunity
25-26 for jobs for graduates of the program and the possibility of
25-27 placement or employment.
26-1 (d) Before the administrator issues or renews a license to
26-2 operate involving a school that offers or advertises a placement
26-3 service, the administrator may require the school to file a
26-4 certified copy of the school's placement records for the previous
26-5 year.
26-6 Sec. 32.405. ON-SITE INSPECTIONS. (a) The administrator
26-7 shall conduct on-site inspections of a school to determine the
26-8 normal operating conditions of the school.
26-9 (b) The inspection required by Subsection (a) of this
26-10 section shall be unannounced.
26-11 (c) The administrator may inspect such things as the
26-12 instructional books and records, classrooms, dormitories, tools,
26-13 equipment, and classes of a school or an applicant for a license to
26-14 operate at any reasonable time.
26-15 Sec. 32.406. LICENSING REQUIREMENTS DISCLOSURE. (a) A
26-16 school must disclose to all prospective students state licensing
26-17 requirements to practice the occupation for which the student is
26-18 training.
26-19 (b) A school must disclose to all prospective students the
26-20 performance of graduates from the school on any licensing
26-21 examination if that information is available.
26-22 Sec. 32.407. ENTRANCE REQUIREMENTS; MINIMUM SKILLS TEST.
26-23 (a) The administrator shall approve entrance requirements,
26-24 including minimum skills testing, for students who may be accepted
26-25 for a program in a school. The requirements must be specific and
26-26 provide that students who are allowed to enter a program will have
26-27 a reasonable chance of completing the program.
27-1 (b) The school shall administer a standardized test to
27-2 students with a high school diploma or high school equivalency
27-3 certificate entering the school, if testing for minimal skill
27-4 competency is determined by the administrator as appropriate and
27-5 necessary to determine if remediation is needed. The test must be
27-6 administered before enrollment and must be nationally recognized as
27-7 appropriate and effective for minimum skills testing and high
27-8 school equivalency. If the test reveals the necessity for
27-9 remediation, the school must implement a plan to encourage the
27-10 student to improve in basic general education skills.
27-11 (c) A student must achieve a successful score on the test
27-12 required by this section before the student is obligated for
27-13 tuition and fees for the vocational portion of the school's
27-14 program.
27-15 (d) The school may, in accordance with federal statutory
27-16 provisions affecting guaranteed student loan programs, on a
27-17 case-by-case basis, refuse to provide the certification statements
27-18 required for guaranteed student loan eligibility, or reduce the
27-19 determination of need for a guaranteed student loan if the school
27-20 determines that the student's expenses to be covered by the loan
27-21 and the estimated cost of attendance, can be met more appropriately
27-22 by the school, directly by the student, or by other sources.
27-23 Sec. 32.408. STUDENTS IN NEED OF REMEDIAL HELP. (a) An
27-24 applicant without a high school diploma or high school equivalency
27-25 certificate must pass an entrance test approved by the
27-26 administrator and be considered to have the ability to benefit from
27-27 the school before the school may enroll the student.
28-1 (b) A school that admits a student who does not have a high
28-2 school diploma or high school equivalency certificate must develop
28-3 and implement a plan for counseling the student on curriculum,
28-4 student aid, employment opportunities, and the remediation
28-5 necessary for the student to obtain a high school equivalency
28-6 certificate and improve in basic general education skills.
28-7 (c) The school must assist the student in obtaining the
28-8 remediation necessary for the student to pass a standardized
28-9 minimum skills equivalency test, approved by the administrator, and
28-10 the student must pass the test before entering the final quarter of
28-11 the program.
28-12 Sec. 32.409. ENROLLMENT POLICIES. (a) The enrollment
28-13 contract of a school must contain:
28-14 (1) a disclosure that the contract is a legally
28-15 binding instrument on written acceptance of the student by the
28-16 school, unless canceled as provided by law;
28-17 (2) the school's cancellation and refund policy;
28-18 (3) the method of cancellation of the contract, the
28-19 effective date of any cancellation, and the name and address to
28-20 which the notice of cancellation should be sent or delivered;
28-21 (4) the total cost of the program, including tuition
28-22 and all other charges;
28-23 (5) a notification that the fair market value of
28-24 equipment or supplies furnished to the student that the student
28-25 fails to return in a condition suitable for resale not later than
28-26 the 10th business day after the date of cancellation may be
28-27 retained by the school and deducted from any refund of the student;
29-1 (6) a statement that if a student's enrollment is
29-2 canceled for any reason, the school will notify an agency known to
29-3 the school to be providing financial aid to the student of the
29-4 cancellation not later than the 30th day after the date of
29-5 cancellation;
29-6 (7) the name of the programs, including the number of
29-7 hours of classroom instruction or home study lessons; and
29-8 (8) the Federal Trade Commission statement for a
29-9 holder in due course.
29-10 (b) An enrollment contract may not contain a wage assignment
29-11 provision or a confession of judgment clause.
29-12 (c) Immediately after a prospective student has signed an
29-13 enrollment contract, the school shall give the prospective student
29-14 a copy of the contract, and a copy shall be placed in the student's
29-15 permanent school file.
29-16 (d) A promissory note signed by a student must include the
29-17 Federal Trade Commission statement required for a holder in due
29-18 course.
29-19 Sec. 32.4010. LOAN COUNSELING. (a) A school shall conduct
29-20 loan counseling entrance interviews with each prospective student
29-21 seeking a loan during the enrollment process. A student borrower
29-22 shall be counseled before the initial disbursement of loan
29-23 proceeds, shortly before the student completes one-half of the
29-24 program, and before the student is issued a certificate of
29-25 completion.
29-26 (b) The school's financial aid officer or counselor shall
29-27 conduct the interviews required by Subsection (a) of this section.
30-1 The interview must include a discussion of:
30-2 (1) the rights and responsibilities of the student as
30-3 a borrower;
30-4 (2) what a loan is and the importance of repayment;
30-5 (3) the total cost of the program in which the student
30-6 will be enrolled;
30-7 (4) the availability of other forms of financial aid,
30-8 grants, and part-time work;
30-9 (5) the starting range and average reported salaries
30-10 of those in the occupation for which the student will be trained,
30-11 if available; and
30-12 (6) job placement services provided by the school and
30-13 the employment rate of persons who attended the school and were
30-14 enrolled in the program in which the student is enrolled.
30-15 (c) A school approved to accept state or federal educational
30-16 loans or grants shall adopt, in addition to the provisions in this
30-17 section, measures to reduce defaults and improve borrowers
30-18 understanding and respect for the loan repayment obligation as
30-19 provided in 34 C.F.R., Parts 668 and 682.
30-20 (d) The school must give a copy of the Texas Guaranteed
30-21 Student Loan Corporation's "Your Future" guide, or a comparable
30-22 document, approved by the administrator, to a prospective student
30-23 at a time and in a manner that provides the student with sufficient
30-24 opportunity to read the guide or other document and discuss the
30-25 contents with the school's financial aid officer, if necessary for
30-26 understanding and clarity, before signing an enrollment contract
30-27 and before the school accepts the student in a program.
31-1 (e) The prospective student must sign a document stating
31-2 that the student:
31-3 (1) attended a loan counseling entrance interview; and
31-4 (2) received a copy of the "Your Future" guide or
31-5 comparable document in the time provided by Subsection (d) of this
31-6 section.
31-7 (f) A copy of the signed document required by Subsection (e)
31-8 of this section must be sent to the student, guarantor, and lender
31-9 and must be placed in the student's permanent school file.
31-10 Sec. 32.4011. RECORDS. (a) A school shall maintain
31-11 permanent records for all students enrolled, as required by the
31-12 administrator.
31-13 (b) A school shall adopt a plan to preserve permanent
31-14 records and submit the plan to the administrator for approval. The
31-15 plan must:
31-16 (1) provide that at least one copy of the records will
31-17 be held in a secure depository; and
31-18 (2) designate an appropriate official to provide a
31-19 student with copies of records or transcripts on request.
31-20 (c) The school shall make the first copy of records or
31-21 transcripts at no charge to the student. The school may make a
31-22 reasonable charge to provide additional copies of records,
31-23 transcripts, or other student information.
31-24 (d) If a school closes, the records become the property of
31-25 the state.
31-26 Sec. 32.4012. DISPLAY OF LICENSE TO OPERATE; COMPLAINTS.
31-27 (a) A holder of a license to operate issued under this chapter
32-1 shall display the license in a conspicuous place at the premises of
32-2 the school.
32-3 (b) A school that has received a license to operate under
32-4 this chapter shall post on the premises of the school at a
32-5 prominent and conspicuous location the name, mailing address, and
32-6 telephone number of the administrator for the purpose of directing
32-7 complaints to the administrator.
32-8 Sec. 32.4013. FINANCIAL STABILITY. (a) A school may not
32-9 reflect unearned tuition as a current asset unless the amount shown
32-10 in current assets that reflects unearned tuition is offset by an
32-11 equal amount shown as a current liability. The school must meet
32-12 one of the following criteria in order to be determined as
32-13 financially sound and capable of fulfilling its commitments for
32-14 training:
32-15 (1) current assets must bear a relationship to current
32-16 liabilities in a ratio of at least one-to-one;
32-17 (2) the equity of the owner of the school must be in
32-18 excess of $10,000,000; or
32-19 (3) the school must have posted, or set aside in a
32-20 dedicated escrow account, a bond, certificate of deposit,
32-21 irrevocable letter of credit, or comparable security, acceptable to
32-22 the administrator, each made payable to the State of Texas, in an
32-23 amount sufficient to cover the school's record storage costs,
32-24 teachout, and tuition and fees refund and recovery exposure based
32-25 on the evidence the school submits proving its projected maximum
32-26 total unearned tuition during the period covered by the evidence of
32-27 indebtedness to the State.
33-1 (b) The school must demonstrate to the satisfaction of the
33-2 administrator its financial soundness and ability to fulfill its
33-3 commitments for training.
33-4 Sec. 32.4014. COMPLAINTS. The administrator shall prepare
33-5 information of public interest describing the functions of the
33-6 agency and the procedures by which complaints are filed with and
33-7 resolved by the administrator against a proprietary school. The
33-8 agency shall make the information available to the public, to the
33-9 appropriate state agencies, and to the schools.
33-10 SECTION 1.19. Section 32.41, Education Code, is amended to
33-11 read as follows:
33-12 Sec. 32.41. Hearing. Should the applicant be dissatisfied
33-13 with the imposition of conditions on, or the denial or revocation
33-14 of, a license to operate <certificate of approval> by the
33-15 Administrator, the applicant shall have the right to appeal the
33-16 decision of the Administrator and request a hearing with the
33-17 Administrator within fifteen (15) days after receipt of notice.
33-18 Upon receipt of the request for a hearing, the Administrator shall
33-19 set a time and place for said hearing and then send notice to the
33-20 school of said time and place. Said hearing shall be held within
33-21 thirty (30) days from the receipt of the request for a hearing. At
33-22 said hearing, an applicant may appear in person or by counsel and
33-23 present evidence to the Administrator in support of the licensing
33-24 without conditions or the retaining or granting of the permit
33-25 specified herein. All interested persons may also appear and
33-26 present oral and documentary evidence to the Administrator,
33-27 concerning the issuance of a license to operate <certificate of
34-1 approval> to the applicant school. Within ten (10) days after the
34-2 hearing, the Administrator shall send notice to the school either
34-3 affirming or rescinding <revoking> the revocation or denial of, or
34-4 conditions imposed on, the license to operate <certificate of
34-5 approval>.
34-6 SECTION 1.20. Section 32.61, Education Code, is amended to
34-7 read as follows:
34-8 Sec. 32.61. Prohibitions. No person shall:
34-9 (1) operate a school without a license to operate or
34-10 assume ownership of an existing school without obtaining a new
34-11 license to operate <certificate of approval issued by the
34-12 Administrator>;
34-13 (2) solicit prospective students without being
34-14 licensed <bonded> as required by this Chapter;
34-15 (3) accept contracts or enrollment applications from a
34-16 representative who is not registered <bonded> as required by this
34-17 Chapter;
34-18 (4) utilize advertising designed to mislead or deceive
34-19 prospective students;
34-20 (5) fail to notify the Administrator of the
34-21 discontinuance of the operation of any school within 72 hours of
34-22 cessation of classes and make available accurate records as
34-23 required by this Chapter;
34-24 (6) fail to secure and file within 30 days an
34-25 increased bond as required by this Chapter;
34-26 (7) negotiate any promissory instrument received as
34-27 payment of tuition or other charge prior to completion of 75
35-1 percent of the course, provided that prior to such time, the
35-2 instrument may be transferred by assignment to a purchaser who
35-3 shall be subject to all the defenses available against the school
35-4 named as payee;
35-5 (8) enroll a student who fails to satisfy entrance
35-6 requirements; or
35-7 (9) <(8)> violate any provision of this Chapter or a
35-8 rule adopted under this Chapter.
35-9 SECTION 1.21. Section 32.611, Education Code, is amended to
35-10 read as follows:
35-11 Sec. 32.611. ADMINISTRATIVE <CIVIL> PENALTY. (a) The
35-12 administrator may impose an administrative penalty against a person
35-13 who violates Section 32.61 of this code.
35-14 (b) The penalty for a violation may be in an amount not to
35-15 exceed $10,000.
35-16 (c) The amount of the penalty shall be based on:
35-17 (1) the seriousness of the violation, including the
35-18 nature, circumstances, extent, and gravity of any prohibited acts;
35-19 (2) efforts to correct the violation; and
35-20 (3) any other matter that justice may require.
35-21 (d) If the administrator determines that a violation has
35-22 occurred, the administrator may issue a report that states the
35-23 facts on which the determination is based and the administrator's
35-24 recommendation on the imposition of a penalty, including a
35-25 recommendation on the amount of the penalty.
35-26 (e) Within 14 days after the date the report is issued, the
35-27 administrator shall give written notice of the report to the
36-1 person. The notice may be given by certified mail. The notice
36-2 must include a brief summary of the alleged violation and a
36-3 statement of the amount of the recommended penalty and must inform
36-4 the person that the person has a right to a hearing on the
36-5 occurrence of the violation, the amount of the penalty, or both the
36-6 occurrence of the violation and the amount of the penalty.
36-7 (f) Within 20 days after the date the person receives the
36-8 notice, the person in writing may accept the determination and
36-9 recommended penalty of the administrator or may make a written
36-10 request for a hearing on the occurrence of the violation, the
36-11 amount of the penalty, or both the occurrence of the violation and
36-12 the amount of the penalty.
36-13 (g) If the person accepts the determination and recommended
36-14 penalty of the administrator, the administrator by order shall
36-15 impose the recommended penalty.
36-16 (h) If the person requests a hearing or fails to respond
36-17 timely to the notice, the administrator shall set a hearing and
36-18 give notice of the hearing to the person. The hearing shall be
36-19 held by the administrator. The administrator shall make findings
36-20 of fact and conclusions of law and, based on the findings of fact
36-21 and conclusions of law, by order may find that a violation has
36-22 occurred and impose a penalty or find that no violation occurred.
36-23 (i) The notice of the administrator's order given to the
36-24 person under the Administrative Procedure and Texas Register Act
36-25 (Article 6252-13a, Vernon's Texas Civil Statutes) must include a
36-26 statement of the right of the person to judicial review of the
36-27 order.
37-1 (j) Within 30 days after the date the administrator's order
37-2 is final as provided by Section 16(c), Administrative Procedure and
37-3 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
37-4 Statutes), the person shall:
37-5 (1) pay the amount of the penalty;
37-6 (2) pay the amount of the penalty and file a petition
37-7 for judicial review contesting the occurrence of the violation, the
37-8 amount of the penalty, or both the occurrence of the violation and
37-9 the amount of the penalty; or
37-10 (3) without paying the amount of the penalty, file a
37-11 petition for judicial review contesting the occurrence of the
37-12 violation, the amount of the penalty, or both the occurrence of the
37-13 violation and the amount of the penalty.
37-14 (k) Within the 30-day period, a person who acts under
37-15 Subsection (j)(3) of this section may:
37-16 (1) stay enforcement of the penalty by:
37-17 (A) paying the amount of the penalty to the
37-18 court for placement in an escrow account; or
37-19 (B) giving to the court a supersedeas bond that
37-20 is approved by the court for the amount of the penalty and that is
37-21 effective until all judicial review of the board's order is final;
37-22 or
37-23 (2) request the court to stay enforcement of the
37-24 penalty by:
37-25 (A) filing with the court a sworn affidavit of
37-26 the person stating that the person is financially unable to pay the
37-27 amount of the penalty and is financially unable to give the
38-1 supersedeas bond; and
38-2 (B) giving a copy of the affidavit to the
38-3 administrator by certified mail.
38-4 (l) If the administrator receives a copy of an affidavit
38-5 under Subsection (k)(2) of this section, the administrator may file
38-6 with the court, within five days after the date the copy is
38-7 received, a contest to the affidavit. The court shall hold a
38-8 hearing on the facts alleged in the affidavit as soon as
38-9 practicable and shall stay the enforcement of the penalty on
38-10 finding that the alleged facts are true. The person who files an
38-11 affidavit has the burden of proving that the person is financially
38-12 unable to pay the amount of the penalty and to give a supersedeas
38-13 bond.
38-14 (m) If the person does not pay the amount of the penalty and
38-15 the enforcement of the penalty is not stayed, the administrator may
38-16 refer the matter to the attorney general for collection of the
38-17 amount of the penalty.
38-18 (n) Judicial review of the order of the administrator:
38-19 (1) is instituted by filing a petition as provided by
38-20 Section 19, Administrative Procedure and Texas Register Act
38-21 (Article 6252-13a, Vernon's Texas Civil Statutes); and
38-22 (2) is under the substantial evidence rule.
38-23 (o) If the court sustains the occurrence of the violation,
38-24 the court may uphold or reduce the amount of the penalty and order
38-25 the person to pay the full or reduced amount of the penalty. If
38-26 the court does not sustain the occurrence of the violation, the
38-27 court shall order that no penalty is owed.
39-1 (p) When the judgment of the court becomes final, the court
39-2 shall proceed under this subsection. If the person paid the amount
39-3 of the penalty and if that amount is reduced or is not upheld by
39-4 the court, the court shall order that the appropriate amount plus
39-5 accrued interest be remitted to the person. The rate of the
39-6 interest is the rate charged on loans to depository institutions by
39-7 the New York Federal Reserve Bank, and the interest shall be paid
39-8 for the period beginning on the date the penalty was paid and
39-9 ending on the date the penalty is remitted. If the person gave a
39-10 supersedeas bond and if the amount of the penalty is not upheld by
39-11 the court, the court shall order the release of the bond. If the
39-12 person gave a supersedeas bond and if the amount of the penalty is
39-13 reduced, the court shall order the release of the bond after the
39-14 person pays the amount.
39-15 (q) A penalty collected under this section shall be remitted
39-16 to the comptroller for deposit in the general revenue fund.
39-17 (r) All proceedings under this section are subject to the
39-18 Administrative Procedure and Texas Register Act (Article 6252-13a,
39-19 Vernon's Texas Civil Statutes). <If a person violates Section
39-20 32.61 of this code, the administrator may assess a civil penalty
39-21 against that person as provided by this section.>
39-22 <(b) The administrator may assess the civil penalty in an
39-23 amount not to exceed $1,000. In determining the amount of the
39-24 penalty, the administrator shall consider the seriousness of the
39-25 violation.>
39-26 <(c) If, after examination of a possible violation and the
39-27 facts relating to that possible violation, the administrator
40-1 concludes that a violation has occurred, the administrator shall
40-2 issue a preliminary report that states the facts on which the
40-3 conclusion is based, the fact that a civil penalty is to be
40-4 imposed, and the amount to be assessed. Not later than the 10th
40-5 day after the date on which the administrator issues the
40-6 preliminary report, the administrator shall send a copy of the
40-7 report to the person charged with the violation, together with a
40-8 statement of the right of the person to a hearing relating to the
40-9 alleged violation and the amount of the penalty.>
40-10 <(d) Not later than the 20th day after the date on which the
40-11 report is sent, the person charged must either make a written
40-12 request for a hearing or remit the amount of the civil penalty to
40-13 the administrator. Failure either to request a hearing or to remit
40-14 the amount of the civil penalty within the time provided by this
40-15 subsection results in a waiver of a right to a hearing under this
40-16 section. If the person charged requests a hearing, the hearing
40-17 shall be conducted in the same manner as a hearing on the denial of
40-18 certificate of approval under Section 32.41 of this code. If it is
40-19 determined after a hearing that the person has committed the
40-20 alleged violation, the administrator shall give written notice to
40-21 the person of the findings established by the hearing and the
40-22 amount of the penalty and shall enter an order requiring the person
40-23 to pay the penalty.>
40-24 <(e) Not later than the 30th day after the date on which the
40-25 notice is received, the person charged must pay the civil penalty
40-26 in full or, if the person wishes to contest either the amount of
40-27 the penalty or the fact of the violation, remit the assessed amount
41-1 to the administrator for deposit in an escrow account. If, after
41-2 judicial review, it is determined that no violation occurred or
41-3 that the amount of the penalty should be reduced, the administrator
41-4 shall remit the appropriate amount to the person charged with the
41-5 violation not later than the 30th day after the date on which the
41-6 judicial determination becomes final.>
41-7 <(f) Failure to remit the amount of the civil penalty to the
41-8 board within the time provided by Subsection (e) of this section
41-9 results in a waiver of all legal rights to contest the violation or
41-10 the amount of the penalty.>
41-11 <(g) A civil penalty owed under this section plus reasonable
41-12 attorney fees and court costs may be recovered in a civil action
41-13 brought by the attorney general at the request of the
41-14 administrator. Civil penalties recovered shall be deposited in the
41-15 General Revenue Fund. Attorney fees and court costs shall be
41-16 appropriated to the attorney general.>
41-17 SECTION 1.22. Section 32.612, Education Code, is amended to
41-18 read as follows:
41-19 Sec. 32.612. Competitive Bidding; Advertising. (a) The
41-20 State Board of Education may not adopt rules that <to> restrict
41-21 competitive bidding or advertising by a proprietary school except
41-22 to prohibit false, misleading, or deceptive competitive bidding or
41-23 advertising practices. The <Those> rules may not restrict:
41-24 (1) the use of an advertising medium;
41-25 (2) the size or duration of an advertisement; or
41-26 (3) advertisement under a trade name.
41-27 (b) A school, the representative of a school, or a recruiter
42-1 for the school may not advertise or represent, in writing or
42-2 orally, that a school is approved or accredited by the state.
42-3 Those entities or persons may advertise that the school has been
42-4 licensed to operate by the state.
42-5 (c) A school, representative of a school, or recruiter of a
42-6 school may not make or cause to be made a statement or
42-7 representation, written, oral, or visual, offering or publicizing a
42-8 subject, program, or school, if the school, representative, or
42-9 recruiter knew or reasonably should have known that the statement
42-10 or representation was false, fraudulent, deceptive, substantially
42-11 inaccurate, or misleading.
42-12 SECTION 1.23. Section 32.64, Education Code, is amended by
42-13 amending Subsection (a) and adding Subsection (c) to read as
42-14 follows:
42-15 (a) If the Central Education Agency has reasonable cause to
42-16 believe that a proprietary school has violated this chapter or a
42-17 rule adopted under this chapter, the agency may:
42-18 (1) order a peer review of the school; or
42-19 (2) suspend the admission of students to the school,
42-20 as provided by Subsection (c) of this section.
42-21 (c) The agency may suspend the admission of students to a
42-22 school under Subsection (a) of this section after the administrator
42-23 has given written notice to the applicant for or holder of a
42-24 license to operate a proprietary school of the suspension and of
42-25 the intent to deny or revoke the license, as provided by Section
42-26 32.35 or 32.36 of this code, as applicable. In addition, the
42-27 notice shall state that a hearing will be held at a time and place
43-1 and on a date specified in the notice to review the denial or
43-2 revocation decision. Except as provided by this subsection, the
43-3 hearing is in place of a hearing under Section 32.41 of this code,
43-4 and shall be held not later than the 20th day after the date notice
43-5 was given. If, after the hearing, the administrator upholds the
43-6 denial or revocation of the license, the applicant for or holder of
43-7 a license may appeal the decision, as provided by Section 32.42 of
43-8 this code. The admission of students is suspended during the
43-9 period the decision is being appealed. If the applicant for or
43-10 holder of a license appears and the agency fails to hold a timely
43-11 hearing, the agency may not continue to suspend the enrollment of
43-12 students without the consent of the applicant for or holder of a
43-13 license, and the applicant for or holder of a license is entitled
43-14 to a hearing under Section 32.41 of this code not later than the
43-15 30th day after the date the hearing under this subsection was to be
43-16 held. If the applicant for or holder of a license fails to appear,
43-17 the applicant for or holder of a license is not entitled to any
43-18 other hearing or to an appeal under Section 32.42 of this code, and
43-19 the administrator may make final the decision to deny or revoke the
43-20 license.
43-21 SECTION 1.24. Subchapter G, Chapter 32, Education Code, is
43-22 amended by adding Section 32.65 to read as follows:
43-23 Sec. 32.65. CRIMINAL PENALTIES. (a) A person commits an
43-24 offense if the person fails to comply with Section 32.61(1) or
43-25 32.39 of this code. Except as provided by Subsection (b) of this
43-26 section, an offense under this subsection is a Class A misdemeanor.
43-27 (b) A person commits an offense if the person intentionally
44-1 or knowingly uses for personal benefit funds in an amount greater
44-2 than $10,000 that are due as student refunds under Section 32.39 of
44-3 this code. An offense under this subsection is a felony of the
44-4 third degree.
44-5 SECTION 1.25. Subchapter G, Chapter 32, Education Code, is
44-6 amended by adding Section 32.66 to read as follows:
44-7 Sec. 32.66. INVESTIGATION OF STUDENT COMPLAINTS. The
44-8 administrator shall investigate complaints filed against a school
44-9 by a current or former student that identifies a possible violation
44-10 of statute or rule that occurred on a date not earlier than two
44-11 years before the date of the letter of complaint. If the school is
44-12 found to be at fault, the agency may, in addition to assessing an
44-13 appropriate penalty and fee as provided by this chapter, order the
44-14 school to provide a refund in an amount not to exceed the total
44-15 tuition and fee charge to the student.
44-16 SECTION 1.26. Section 32.91, Education Code, is amended to
44-17 read as follows:
44-18 Sec. 32.91. CONSOLIDATION OF FEES AND PROPRIETARY SCHOOL
44-19 ACCOUNT <TUITION PROTECTION FUND>. (a) At the beginning of each
44-20 fiscal year the <At the time that each school pays its annual
44-21 renewal fee, in the years provided by Subsection (c) of this
44-22 section, the> State Board of Education shall <also> collect a fee
44-23 from the school for deposit to the credit of a special account
44-24 <fund> in the general revenue fund in the state treasury to be
44-25 called the proprietary school account and to be administered by the
44-26 Central Education Agency <tuition protection fund>.
44-27 (b) The amount of the fee is determined by applying a
45-1 percentage established by the State Board of Education, based on
45-2 the recommendation of the school accounts advisory board, to each
45-3 school's annual gross tuition, with consideration given to the
45-4 school's size, expense of regulation, potential for teachouts,
45-5 tuition refund and recovery exposure, and loan default rates (with
45-6 schools with high default rates paying higher fees), and any other
45-7 relevant factors <renewal fee>. The account shall be used for:
45-8 (1) the administration of this chapter;
45-9 (2) the cost of teachouts as provided by Section 32.92
45-10 of this code;
45-11 (3) the cost of tuition and fees recovery and the cost
45-12 of student refunds that a school has not made in violation of
45-13 Section 32.39 of this code; and
45-14 (4) the cost of storing student records that have
45-15 become property of the state under this Act. <The percentage is
45-16 the rate as determined by the board that, when applied to the total
45-17 of all renewal fees, will result in the collection of $250,000 for
45-18 deposit in the fund in the first two years that the fee is
45-19 collected.>
45-20 (c) The administrator may grant an exemption from payment
45-21 into the account to a small school, as determined by the
45-22 administrator, or to a school that does not use guaranteed student
45-23 loans for tuition revenue. A school exempt as provided for by this
45-24 subsection must pay the necessary fees for regulation, as
45-25 determined by the administrator, and provide a bond, certificate of
45-26 deposit, or comparable security, as determined and approved by the
45-27 administrator, that is sufficient to cover the cost of the school's
46-1 record storage costs, teachout, and tuition and fees refund and
46-2 recovery exposure based on the evidence the school submits proving
46-3 its projected maximum total unearned tuition during the period of
46-4 the license to operate.
46-5 (d) The security shall be provided by the school for the
46-6 period during which the license to operate is issued, and the
46-7 obligation of the bond or other security must be that neither this
46-8 chapter nor any rule adopted under this chapter is violated by the
46-9 school or any of its officers, agents, or employees.
46-10 (e) The bond, certificate of deposit, or comparable security
46-11 must be issued by a company authorized to do business in the state,
46-12 conditioned that the parties to the transaction shall pay all
46-13 damages or expenses that the state or any governmental subdivision
46-14 or any student or potential student sustains resulting from a
46-15 violation. The bond, certificate of deposit, or comparable
46-16 security shall be to the state to be used only for payment for the
46-17 school's teachout and tuition and fees refund due to a student or
46-18 potential student. The security must be filed with the
46-19 administrator and shall be in such form as shall be approved by the
46-20 administrator.
46-21 (f) Schools domiciled, or having their principal place of
46-22 business, outside the state, that engage representatives to
46-23 canvass, solicit, or contract with any person in the state are
46-24 subject to the fee and security requirements of Subsection (c) of
46-25 this section.
46-26 (g) The administrator shall refer all expenses incurred by
46-27 the school account in administering Subsections (b)(2) and (3) of
47-1 this section to the attorney general's office for collection. The
47-2 amounts collected shall be deposited to the credit of the account.
47-3 Attorney's fees and court costs shall be appropriated to the
47-4 attorney general's office <Beginning on January 1, 1990, the board
47-5 shall collect the fee for two years. If on January 1, 1993, or any
47-6 subsequent year the amount in the fund is less than $200,000, the
47-7 board shall collect a fee during that year by applying a percentage
47-8 to each school's annual renewal fee at a rate that will bring the
47-9 balance of the fund to $250,000>.
47-10 (h) Interest the account earns shall be reinvested in the
47-11 account. <(d)> The state treasurer shall invest the account
47-12 <fund> in the same manner as other state funds. Sufficient funds
47-13 from the account, other fees collected by the agency, and earned
47-14 federal funds <tuition protection fund> shall be appropriated to
47-15 Central Education Agency administration for the purpose outlined in
47-16 this subchapter <section>.
47-17 (i) The administrator by rule shall establish and assess
47-18 reasonable and necessary fees to all persons and entities licensed
47-19 under this Act to be used for the regulation of those persons and
47-20 entities licensed under this Act and to supplement the
47-21 administration and purposes outlined by this Act.
47-22 (j) The administrator may permit payment of any fee
47-23 authorized under this section that exceeds $1,000 to be paid by
47-24 installment. The administrator shall provide for appropriate
47-25 interest charges and late penalties in addition to any other remedy
47-26 that is provided for by law for the late payment of a fee
47-27 installment authorized under this section. The administrator may
48-1 assess a reasonable service charge to be paid by a school that pays
48-2 a fee by installment in an amount not to exceed an annual rate of
48-3 10 percent of the fee that is to be paid by installment.
48-4 SECTION 1.27. Subchapter J, Education Code, is amended by
48-5 adding Section 32.911 to read as follows:
48-6 Sec. 32.911. SCHOOL ACCOUNTS ADVISORY BOARD. (a) The
48-7 school accounts advisory board is created. The board members
48-8 consist of:
48-9 (1) the attorney general or the designee of the
48-10 attorney general;
48-11 (2) the comptroller of public accounts or the designee
48-12 of the comptroller;
48-13 (3) the president of the Texas Guaranteed Student Loan
48-14 Corporation or the designee of the president;
48-15 (4) the commissioner of the Texas Higher Education
48-16 Coordinating Board or the designee of the commissioner;
48-17 (5) the president of the Association of Texas Lenders
48-18 for Education or the designee of the president;
48-19 (6) the president of the Texas Association of Student
48-20 Financial Aid Administrators or the designee of the president;
48-21 (7) the commissioner of the Texas Department of
48-22 Licensing and Regulation or the designee of the commissioner;
48-23 (8) the commissioner of education or the designee of
48-24 the commissioner;
48-25 (9) the director of the division of the Central
48-26 Education Agency that regulates proprietary schools or the designee
48-27 of the director;
49-1 (10) the executive director of the Texas Board of
49-2 Private Investigators and Private Security Agencies or the designee
49-3 of the executive director;
49-4 (11) the commissioner of health or the designee of the
49-5 commissioner;
49-6 (12) the executive director of the State Board of
49-7 Barber Examiners or the designee of the executive director;
49-8 (13) the executive director of the Texas Cosmetology
49-9 Commission or the designee of the executive director;
49-10 (14) one member each, elected by the recognized
49-11 constituent organization, representing schools regulated by the
49-12 Central Education Agency proprietary schools division, the Texas
49-13 Board of Private Investigators and Private Security Agencies, the
49-14 massage registration division of the Texas Department of Health or
49-15 its successor in that function, the State Board of Barber
49-16 Examiners, and the Texas Cosmetology Commission;
49-17 (15) two public members, not affiliated with
49-18 proprietary schools or state government, appointed by the governor;
49-19 (16) one public member, not affiliated with
49-20 proprietary schools or state government, appointed by the
49-21 lieutenant governor; and
49-22 (17) one public member, not affiliated with
49-23 proprietary schools or state government, appointed by the speaker
49-24 of the house of representatives.
49-25 (b) Each member of the school accounts advisory board has
49-26 one vote, and decisions shall be made on the basis of a majority of
49-27 the board. The school accounts advisory board shall meet, at the
50-1 call of the board's elected chairman, to recommend fees for and
50-2 expenditures from:
50-3 (1) the proprietary school account;
50-4 (2) the security officer school account;
50-5 (3) the massage school account;
50-6 (4) the barber school or college account; and
50-7 (5) the private beauty culture school account.
50-8 (c) The school accounts advisory board shall, on an annual
50-9 basis, recommend the percentage applied to annual gross tuition and
50-10 fees to be used in establishing the baseline amount, based on
50-11 anticipated needs sufficient to fully cover the purposes of the
50-12 school accounts listed in Subsection (b) of this section. The
50-13 school accounts advisory board shall monitor the administration of
50-14 the accounts and the schools or colleges contributing to the
50-15 accounts and make recommendations to the appropriate state agency
50-16 regarding the percentage of annual gross tuition to charge schools
50-17 or colleges for the appropriate account provided by Subsection (b)
50-18 of this section or other aspects of the administration of the
50-19 account or the schools or colleges.
50-20 (d) The school accounts advisory board may request an audit
50-21 of the appropriate state agency regarding the administration of the
50-22 appropriate account provided by Subsection (b) of this section.
50-23 (e) The school accounts advisory board shall serve as
50-24 arbitrator and shall hear appeals and mediate the resolution of
50-25 grievances regarding the administration of the accounts brought by
50-26 any member of the board. The school accounts advisory board shall
50-27 hear second appeals as provided by Subsection (k) of this section.
51-1 (f) The school accounts advisory board shall monitor the
51-2 default management of agencies administering school accounts,
51-3 including this Act and the rules in 34 C.F.R., Parts 668 and 682.
51-4 The board may, on findings that the default reduction initiatives
51-5 of an agency are not sufficient, as evidenced by a school that that
51-6 agency regulates exceeding the acceptable default rate as
51-7 determined by the board, require the agency to approve a default
51-8 prevention plan to be implemented by the affected school.
51-9 (g) The school accounts advisory board shall be funded by
51-10 the member organizations. Each member organization shall
51-11 appropriate funds to pay a portion of the cost to administer the
51-12 board and to pay the expenses incurred by that organization's
51-13 representative on the board.
51-14 (h) The school accounts advisory board may consider and rule
51-15 on any matter regarding the regulation of a school or licensee
51-16 under this chapter, the administration of an agency regulating
51-17 schools under this chapter, or the application by a school of a
51-18 policy regarding the students enrolled in a school regulated under
51-19 this chapter, if the board considers such consideration and ruling
51-20 are appropriate and necessary.
51-21 (i) Each state agency administering an account shall
51-22 consider the recommendations of the school accounts advisory board
51-23 when making decisions regarding the account administered by that
51-24 agency.
51-25 (j) Each state agency administering an account shall
51-26 recognize a constituent organization comprised of representatives
51-27 of schools regulated by the agency and the school's advisory
52-1 council if one exists. The recognized constituent organization
52-2 must be independent, both fiscally and administratively, from the
52-3 agency regulating constituent schools. The agency shall consider
52-4 the recommendations of the recognized constituent organization
52-5 regarding the regulation of the constituent schools.
52-6 (k) Each state agency administering an account shall
52-7 prepare, submit for approval of the school accounts advisory board,
52-8 and on approval shall publish the agency's mechanism and procedures
52-9 by which complaints may be brought before the agency by the
52-10 recognized constituent organization representing schools regulated
52-11 by the agency. The procedure shall include the investigation,
52-12 hearing, and appeals process of the agency to resolve grievances
52-13 brought against the agency or a school regulated by the agency,
52-14 regarding any aspect of the regulation of the constituent schools.
52-15 SECTION 1.28. Section 32.92, Education Code, is amended to
52-16 read as follows:
52-17 Sec. 32.92. Closed School. (a) The State Board of
52-18 Education shall adopt rules specifying the circumstances under
52-19 which the administrator may declare a school closed. If a
52-20 proprietary school closes, the Central Education Agency shall
52-21 attempt to arrange for students of the closed school to attend:
52-22 (1) another proprietary school with similar programs;
52-23 (2) a public or private school with similar programs;
52-24 (3) a similar program recognized by the Central
52-25 Education Agency; or
52-26 (4) a similar program established by private industry.
52-27 (b) The expense incurred by a school in providing a teachout
53-1 that is directly related to educating a student placed in the
53-2 school under this section, including the applicable tuition and
53-3 fees for the period of time for which the student has paid tuition
53-4 and fees, shall be paid in accordance with rules of the State Board
53-5 of Education <from the proprietary school tuition protection fund>.
53-6 (c) If the student cannot be placed in another school, the
53-7 student's tuition and fees shall be refunded under Section 32.39(d)
53-8 of this code.
53-9 (d) If a student does not accept a place that is available
53-10 and reasonable in another school, the student's tuition and fees
53-11 shall be refunded under the refund policy maintained by the closing
53-12 school under Section 32.39(b) of this code.
53-13 (e) The administrator shall make reasonable attempts to
53-14 ensure that schools under the administrator's jurisdiction,
53-15 including closed schools, fulfill the refund obligation as provided
53-16 by Section 32.39 of this code. If a school refuses to fulfill the
53-17 school's obligation or the school's bond is insufficient to pay the
53-18 cost of the teachout and refund expenses, the teachout or the
53-19 refund may be paid from the proprietary school account, except that
53-20 no school owned, either in whole or in part, by a person or
53-21 corporate entity who was an owner, in whole or in part, of a
53-22 previously closed school shall be permitted to receive compensation
53-23 for a teachout under this section <If the amount of the closed
53-24 school's bond under Section 32.38 of this code is less than the
53-25 amount required for student refunds under Subsections (c) and (d)
53-26 of this section, the refunds shall be paid from the proprietary
53-27 school tuition protection fund in an amount not to exceed $25,000>.
54-1 (f) <If another school assumes responsibility for the closed
54-2 school's students with no significant changes in the quality of
54-3 training, the student is not entitled to a refund under Subsection
54-4 (c) or (d) of this section.>
54-5 <(g)> Attorney's fees, court costs, or damages may not be
54-6 paid from the proprietary school <tuition protection> fund.
54-7 <(h) This section take effect January 1, 1992.>
54-8 SECTION 1.29. Sections 32.21(d), 32.42(f), 32.71, and
54-9 32.92(f), Education Code, are repealed.
54-10 SECTION 1.30. (a) Section 32.38(a), Education Code, is
54-11 amended to read as follows:
54-12 (a) Before a license to operate <certificate of approval> is
54-13 issued under this chapter, a bond shall be provided by the school
54-14 for the period during which the license to operate <certificate of
54-15 approval> is issued, and the obligation of the bond shall be that
54-16 neither a provision of this chapter nor any rule or regulation
54-17 adopted pursuant thereto shall be violated by the school or any of
54-18 its officers, agents, or employees. The bond shall be in the penal
54-19 sum of $5,000 or a multiple of $5,000 that is not greater than
54-20 $25,000. The administrator shall determine the amount based on the
54-21 evidence the school submits of its projected maximum total unearned
54-22 tuition during the period of the license to operate <certificate of
54-23 approval>. The bond shall be a corporate surety bond issued by a
54-24 company authorized to do business in the State, conditioned that
54-25 the parties thereto shall pay all damages or expenses which the
54-26 State or any governmental subdivision thereof, or any student or
54-27 potential student may sustain resulting from a violation. The bond
55-1 shall be to the State to be used only for payment of a tuition
55-2 refund due to a student or potential student. The bond shall be
55-3 filed with the administrator and shall be in such form as shall be
55-4 approved by the administrator.
55-5 (b) Effective September 1, 1994, Section 32.38, Education
55-6 Code, is repealed. Any license to operate bond or any certificate
55-7 of approval bond submitted before repeal remains in full force and
55-8 effect. Any obligation under a license to operate bond or
55-9 certificate of approval bond submitted under Section 32.38 before
55-10 repeal is not impaired by repeal.
55-11 SECTION 1.31. Any balance remaining in the tuition
55-12 protection fund shall be transferred to the proprietary school
55-13 account on the effective date of this Act.
55-14 SECTION 1.32. A proprietary school that holds a certificate
55-15 of approval on the effective date of this Act is considered to hold
55-16 a license to operate under Chapter 32, Education Code, as amended
55-17 by this part. The administrator shall replace a certificate with a
55-18 license after the expiration of the certificate and on application
55-19 for renewal.
55-20 PART 2. SECURITY OFFICER SCHOOLS
55-21 SECTION 2.01. Section 20, Private Investigators and Private
55-22 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
55-23 Statutes), is amended to read as follows:
55-24 Sec. 20. SECURITY OFFICER SCHOOL LICENSE; APPLICATION;
55-25 REFUND POLICY <Training Programs>. (a) The board shall establish
55-26 a basic training course for security officers. The course must be
55-27 offered and taught by schools and instructors licensed <approved>
56-1 by the board. To receive a license <board approval,> a school or
56-2 an instructor must submit an application to the board on a form
56-3 provided by the board.
56-4 (b) The basic training course approved by the board shall
56-5 consist of a minimum of 30 hours and shall include:
56-6 (1) legal limitations on the use of firearms and on
56-7 the powers and authority of a security officer;
56-8 (2) familiarity with this Act;
56-9 (3) field note taking and report writing;
56-10 (4) range firing and procedure, and firearms safety
56-11 and maintenance; and
56-12 (5) any other topics of security officer training
56-13 curriculum which the board deems necessary.
56-14 (c) The board shall develop a commissioned security officer
56-15 training manual to be used in the instructing and training of
56-16 commissioned security officers.
56-17 (d) The board shall promulgate all rules necessary to
56-18 administer the provisions of this section concerning the training
56-19 requirements of this Act.
56-20 (e) An application for a license to instruct at a security
56-21 officer school must state the education and experience level of the
56-22 applicant in all courses or programs that the applicant will teach
56-23 or instruct and be on a form prescribed by the board. The board
56-24 shall review an application for competency, consistency, and the
56-25 overall quality of the applicant. An applicant for an instructor's
56-26 license must receive a passing grade on an examination administered
56-27 by the board.
57-1 (f) The board may not issue a security officer commission to
57-2 an applicant employed by a licensee unless the applicant submits
57-3 evidence satisfactory to the board that:
57-4 (1) he has completed the basic training course at a
57-5 school or under an instructor approved by the board;
57-6 (2) he meets all qualifications established by this
57-7 Act and by the rules of the board;
57-8 (3) he has satisfied his firearm training instructor
57-9 that he has attained with a handgun a minimum average marksmanship
57-10 competency of 160 out of 300 on an "Army L" target or a minimum of
57-11 80 out of 150 on an F.B.I. Silhouette target (N.R.A. B-27), at 50
57-12 feet with 10 shots slow fire, 10 shots time fire and 10 shots
57-13 double-action or complies with the standards of marksmanship set by
57-14 the board;
57-15 (4) he has satisfied his firearm training instructor
57-16 that he has complied with the standards of marksmanship set by the
57-17 board for minimum marksmanship competency with a shotgun.
57-18 (g) <(f)> In addition to the requirements of Subsection (f)
57-19 <(e)> of this section, the board by rules and regulations shall
57-20 establish other qualifications for persons who are employed in
57-21 positions requiring the carrying of firearms. These qualifications
57-22 may include physical and mental standards, standards of good moral
57-23 character, and other requirements that relate to the competency and
57-24 reliability of individuals to carry firearms. The board shall
57-25 prescribe appropriate forms and rules and regulations by which
57-26 evidence that the requirements are fulfilled is presented. The
57-27 board shall require commissioned security officers and applicants
58-1 for security officer commissions to demonstrate proficiency in the
58-2 use of firearms to the satisfaction of a firearm training
58-3 instructor who is employed by a board approved training school. An
58-4 applicant for a security officer commission must demonstrate
58-5 proficiency not earlier than the 90th day before the date on which
58-6 the security officer commission is to be issued. A commissioned
58-7 security officer must demonstrate proficiency not earlier than the
58-8 90th day before the date on which the commission is to be renewed.
58-9 The records of this proficiency shall be maintained by the school
58-10 and available for inspection by the board.
58-11 (h) <(g)> The board shall prescribe appropriate rules and
58-12 regulations for the maintenance of records relating to persons
58-13 issued security officer commissions by the board.
58-14 (i) An application for a security officer school license
58-15 must be verified by the applicant and must contain a statement of
58-16 any final convictions of the owners, school directors, recruiters,
58-17 instructional faculty, or other selected personnel of the security
58-18 officer school as determined by the board. The board may obtain
58-19 criminal history records of school directors or instructional
58-20 faculty from any law enforcement agency, including the United
58-21 States Department of Justice, the Department of Public Safety of
58-22 the State of Texas, the Texas Department of Criminal Justice, or
58-23 the police department of a municipality.
58-24 (j) The board shall determine that an applicant for a
58-25 security officer school license is financially sound and capable of
58-26 fulfilling its commitments for training before granting the permit.
58-27 (k) Each licensed security officer school must maintain a
59-1 cancellation and settlement policy that provides a full refund of
59-2 all money paid by a student if:
59-3 (1) the student cancels the enrollment agreement or
59-4 contract not later than midnight of the third day after the date on
59-5 which the agreement or contract is signed by the prospective
59-6 student, excluding Saturdays, Sundays, and legal holidays; or
59-7 (2) the enrollment of the student was procured as a
59-8 result of a misrepresentation made in the advertising or
59-9 promotional materials of the school or a representation by an owner
59-10 or representative of the school.
59-11 (l) Each licensed security officer school must maintain a
59-12 refund policy for the refund of the unused part of tuition, fees,
59-13 and other charges assessed a student if the student, at the
59-14 expiration of the cancellation period established under Subsection
59-15 (k) of this section, terminates enrollment or is terminated by the
59-16 school, as provided by this subsection. The refund policy must
59-17 provide that:
59-18 (1) a refund is based on the period of the student's
59-19 enrollment, computed on the basis of course time expressed in clock
59-20 hours;
59-21 (2) the effective date of the termination for payment
59-22 of a refund is the earliest of:
59-23 (A) the last date of attendance, if the student
59-24 is terminated for failure to satisfy a school attendance, grade, or
59-25 work requirement;
59-26 (B) the date of receipt by the license holder of
59-27 written notice of withdrawal by the student;
60-1 (C) the 10th consecutive school day the student
60-2 has been absent, unless any of the absences are excused by the
60-3 school; or
60-4 (D) the date the student fails to return, as
60-5 scheduled, from a leave of absence; and
60-6 (3) if tuition is collected before beginning the
60-7 course of training, and if, after the expiration of the
60-8 cancellation period, the student does not begin the course of
60-9 training, the school may retain not more than $100.
60-10 (m) If a student who begins a course of training that is
60-11 scheduled to run not more than 12 months withdraws from the course
60-12 or is terminated from the course by the school, the security
60-13 officer school may retain $100 in tuition and fees paid by that
60-14 student and is not obligated to refund any additional outstanding
60-15 tuition if the student withdraws or is terminated during the last
60-16 quarter of the course. If the student withdraws or is terminated
60-17 before the last quarter of the course begins, the school shall
60-18 refund the following percentages of any outstanding tuition:
60-19 (1) for withdrawal or termination occurring during the
60-20 first week or first one-tenth of the course, whichever is less, 90
60-21 percent;
60-22 (2) for withdrawal or termination occurring after the
60-23 first week or first one-tenth of the course, whichever is less, but
60-24 within the first three weeks of the course, 80 percent;
60-25 (3) for withdrawal or termination occurring after the
60-26 first three weeks of the course but not later than the last date of
60-27 the first quarter of the course, 75 percent;
61-1 (4) for withdrawal or termination occurring during the
61-2 second quarter of the course, 50 percent; and
61-3 (5) for withdrawal or termination occurring during the
61-4 third quarter of the course, 10 percent.
61-5 (n) A refund owed under this section must be paid not later
61-6 than the 60th day after the date on which the student becomes
61-7 eligible for the refund, as determined under Subsection (l) of this
61-8 section.
61-9 (o) If a refund is not made within the period required by
61-10 this section, the school shall pay, as a penalty, interest on the
61-11 refund for the interval beginning with the first day following the
61-12 expiration of the refund period and ending with the day immediately
61-13 preceding the date the refund is made. If the refund is made to a
61-14 lending institution, the interest shall also be paid to that
61-15 institution and applied against the student's loan. The board
61-16 annually shall establish the level of interest at a level
61-17 sufficient to provide a deterrent to the retention of student
61-18 funds. The board may exempt a school from the payment of the
61-19 interest if the school makes a good faith effort to refund the
61-20 tuition but is unable to locate the student. The school shall
61-21 provide to the board on request documentation of the effort to
61-22 locate the student.
61-23 (p) A security officer school shall record a grade of
61-24 "incomplete" for a student who withdraws but is not entitled to a
61-25 refund under Subsection (m) of this section if the student requests
61-26 the grade at the time the student withdraws and the student
61-27 withdraws for an appropriate reason unrelated to the student's
62-1 academic status. A student who receives a grade of incomplete may
62-2 reenroll in the program during the 12-month period following the
62-3 date the student withdraws and may complete those incomplete
62-4 subjects without payment of additional tuition.
62-5 (q) If a course of instruction is discontinued by the school
62-6 and this prevents the student from completing the course, all
62-7 tuition and fees paid are due and refundable.
62-8 (r) Refunds under this section shall be applied:
62-9 (1) first, to the repayment of student loans;
62-10 (2) second, to the repayment of other government
62-11 loans;
62-12 (3) third, to the repayment of other financial loans;
62-13 and
62-14 (4) last, to the student's personal tuitional
62-15 expenditures.
62-16 (s) Not later than the 30th day after the date on which a
62-17 refund is due to a student who has received a student loan, the
62-18 school shall notify the guaranty agency and the lender of the
62-19 required refund and any refund previously made. The guaranty
62-20 agency and the lender shall notify the student and the school if
62-21 the student's loan has been transferred to another holder.
62-22 (t) The failure of a school or a person to pay a tuition
62-23 refund as required by this section is a deceptive trade practice
62-24 under Subchapter E, Chapter 17, Business & Commerce Code.
62-25 SECTION 2.02. The Private Investigators and Private Security
62-26 Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes) is
62-27 amended by adding Sections 20A-20U to read as follows:
63-1 Sec. 20A. CRITERIA FOR SECURITY OFFICER SCHOOL LICENSE.
63-2 Before the board may approve the application of a person for a
63-3 security officer school license, the director must find, on
63-4 investigation at the premises of the school, that the school meets
63-5 the following criteria:
63-6 (1) the courses, curriculum, and instruction are of a
63-7 quality, content, and length as may reasonably and adequately
63-8 achieve the stated objective for which the courses, curriculum, or
63-9 instruction are offered;
63-10 (2) there is in the school adequate space, equipment,
63-11 instructional material, and instructor personnel to provide
63-12 training of good quality;
63-13 (3) educational and experience qualifications of
63-14 directors, administrators, and instructors are adequate;
63-15 (4) the school maintains a written record of the
63-16 previous education and training of the applicant student and
63-17 clearly indicates that appropriate credit has been given by the
63-18 school for previous education and training, with the new training
63-19 period shortened where warranted through use of appropriate skills
63-20 or achievement tests and the student notified;
63-21 (5) a copy of the course outline; schedule of tuition,
63-22 fees, refund policy, and other charges; regulations pertaining to
63-23 absence, grading policy, and rules of operation and conduct;
63-24 regulations pertaining to incomplete grades; the name, mailing
63-25 address, and telephone number of the board for the purpose of
63-26 directing complaints to the agency; the current rates of job
63-27 placement and employment of students issued a certificate of
64-1 completion; and notification of the availability of the cost
64-2 comparison information prepared under Section 20G of this Act will
64-3 be furnished to the student before enrollment;
64-4 (6) on completion of training, the student is given a
64-5 certificate by the school indicating the course and that training
64-6 was satisfactorily completed;
64-7 (7) adequate records as required by the director are
64-8 kept to show attendance and progress or grades, and satisfactory
64-9 standards relating to attendance, progress, and conduct are
64-10 enforced;
64-11 (8) the school complies with all local, city, county,
64-12 municipal, state, and federal regulations; the director may require
64-13 evidence of compliance as is necessary;
64-14 (9) the school is financially sound and capable of
64-15 fulfilling its commitments for training;
64-16 (10) the school's administrators, directors, owners,
64-17 and instructors are of good reputation and character;
64-18 (11) the school has, maintains, and publishes in its
64-19 catalog or comparable documents and enrollment contract the proper
64-20 policy for the refund of the unused portion of tuition, fees, and
64-21 other charges in the event the student enrolled by the school fails
64-22 to take the course or withdraws or is discontinued from the course
64-23 at any time before completion;
64-24 (12) the school does not use erroneous or misleading
64-25 advertising, either by actual statement, omission, or intimation as
64-26 determined by the board;
64-27 (13) additional criteria as may be required by the
65-1 board;
65-2 (14) the school does not use a name like or similar to
65-3 an existing tax-supported school in the same area;
65-4 (15) the school furnishes to the board the current
65-5 rates of students who receive a certificate of completion and of
65-6 job placement and employment of students issued a certificate of
65-7 completion;
65-8 (16) the school furnishes to the board for approval or
65-9 disapproval student admission requirements for each course or
65-10 program offered by the school;
65-11 (17) the school furnishes to the board for approval or
65-12 disapproval the course lengths and curriculum content for each
65-13 course offered by the school; and
65-14 (18) the school does not owe a civil penalty under
65-15 Section 20P of this Act.
65-16 Sec. 20B. CONSUMER INFORMATION. (a) A security officer
65-17 school must submit to the board for approval, on an annual basis, a
65-18 school catalog or comparable written documents detailing the
65-19 consumer information that must be given to a prospective student
65-20 before enrollment. The school catalog or documents must include:
65-21 (1) the name and address of the school and the
65-22 school's governing body and officials;
65-23 (2) a calendar of the school year;
65-24 (3) school policies on enrollment;
65-25 (4) rules relating to absences;
65-26 (5) the school grading policy;
65-27 (6) the school's hours of operation and rules of
66-1 conduct;
66-2 (7) a schedule of the tuition and other fees assessed;
66-3 (8) the school's cancellation and refund policy;
66-4 (9) a general description of the course or courses
66-5 offered;
66-6 (10) information on entrance testing and remedial
66-7 development plans;
66-8 (11) state licensing requirements for courses intended
66-9 to result in licensing of a student;
66-10 (12) starting range and reported average salaries for
66-11 the prior year's graduates in occupations for which courses are
66-12 offered, if the information is available;
66-13 (13) the current rates of job placement and employment
66-14 of students who complete a course of training;
66-15 (14) the school policy on credit for previous
66-16 education and training;
66-17 (15) school regulations relating to incomplete grades;
66-18 (16) information on the transferability of credits
66-19 earned;
66-20 (17) the name, mailing address, and telephone number
66-21 of the board for the purpose of directing complaints to the board
66-22 and the mechanism and procedures for resolving grievances submitted
66-23 to the board;
66-24 (18) a statement that the board has information on
66-25 cost comparison with similar schools;
66-26 (19) market and job availability information, if
66-27 available;
67-1 (20) the names of the members of any advisory council
67-2 of the school and the company for which they work; and
67-3 (21) other information required by the director or
67-4 board if reasonable notice has been given by the administrator to
67-5 the school of the additional requirement.
67-6 (b) A security officer school may not accept a signed
67-7 student enrollment contract or accept a student into any school
67-8 program until at least 24 hours after the student has received the
67-9 catalog or comparable written documents required under this
67-10 section.
67-11 (c) A student must sign a receipt stating that:
67-12 (1) the catalog was received by the student before any
67-13 commitment made by the student to the school or by the school to
67-14 the student;
67-15 (2) the student was given an opportunity to discuss
67-16 the catalog with a representative of the school; and
67-17 (3) the student understands the contents and
67-18 implications of the catalog.
67-19 (d) The receipt required by Subsection (c) of this section
67-20 must be placed in the student's permanent school file and a copy of
67-21 the receipt must be delivered to the student.
67-22 Sec. 20C. COURSE LENGTH AND CURRICULUM OF SECURITY OFFICER
67-23 SCHOOL. (a) A security officer school must submit to the board
67-24 for approval the course lengths and curriculum content for each
67-25 course offered by the school. The course lengths and content may
67-26 not be implemented unless the board approves them. The course
67-27 lengths and content shall reasonably ensure that students develop
68-1 the job skills and knowledge necessary for employment.
68-2 (b) The board shall require a school to fully account for
68-3 all curriculum contents and course lengths before issuing or
68-4 renewing a license and a school that is offering course lengths
68-5 below or above industry standards may be issued a conditional
68-6 license.
68-7 Sec. 20D. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
68-8 TO SECURITY OFFICER SCHOOL. (a) The board shall set and enforce
68-9 minimum standards for completion and employment rates of courses,
68-10 based on collected data.
68-11 (b) In determining whether to renew a security officer
68-12 school license, the board shall consider the completion, placement,
68-13 and employment rates of students of the course.
68-14 (c) Before a school may begin offering a new course of study
68-15 for students, the school must show the board the opportunity for
68-16 jobs for graduates of the course and the possibility of placement
68-17 or employment.
68-18 (d) Before the board issues or renews a security officer
68-19 school license involving a school that offers or advertises a
68-20 placement service, the board may require the school to file a
68-21 certified copy of the school's placement records for the previous
68-22 year.
68-23 Sec. 20E. ON-SITE INSPECTIONS. (a) The board shall conduct
68-24 on-site inspections of a security officer school to determine the
68-25 normal operating conditions of the school.
68-26 (b) The inspection required by Subsection (a) of this
68-27 section shall be unannounced.
69-1 (c) The director or a designee of the director may inspect
69-2 such things as the instructional books and records, classrooms,
69-3 dormitories, tools, equipment, and classes of a security officer
69-4 school or an applicant for a license for a school at any reasonable
69-5 time.
69-6 Sec. 20F. CONSOLIDATION OF FEES AND SECURITY OFFICER SCHOOL
69-7 ACCOUNT. (a) At the beginning of each fiscal year the board shall
69-8 collect a fee from the school for deposit in a special account in
69-9 the general revenue fund in the state treasury called the security
69-10 officer school account and to be administered by the board.
69-11 (b) The amount of the fee is determined by applying a
69-12 percentage established by the board, based on the recommendation of
69-13 the school accounts advisory board, to each school's annual gross
69-14 tuition, with consideration given to the school's size, expense of
69-15 regulation, potential for teachouts, tuition and fees refund and
69-16 recovery expense, and loan default rates (with schools with high
69-17 default rates paying higher fees), and any other relevant factors.
69-18 The account shall be used for:
69-19 (1) the administration of this Act;
69-20 (2) the cost of teachouts as provided by this Act;
69-21 (3) the cost of tuition and fees recovery and the cost
69-22 of student refunds that a school has not made; and
69-23 (4) the cost of storing student records that have
69-24 become property of the state under this Act.
69-25 (c) The board may grant an exemption from payment into the
69-26 account to a small school, as determined by the director, or to a
69-27 school that does not use guaranteed student loans for tuition
70-1 revenue. A school exempt as provided for by this subsection must
70-2 pay the necessary fees for regulation, as determined by the
70-3 director, and provide a bond, certificate of deposit, or comparable
70-4 security, as determined and approved by the board, that is
70-5 sufficient to cover the cost of the school's record storage,
70-6 teachout, and tuition and fees refund and recovery exposure based
70-7 on the evidence the school submits proving its projected maximum
70-8 total unearned tuition during the period of the license.
70-9 (d) The security shall be provided by the school for the
70-10 period during which the license is issued, and the obligation of
70-11 the bond or other security must be that neither this Act nor any
70-12 rule adopted under this Act is violated by the school or any of its
70-13 officers, agents, or employees.
70-14 (e) The bond, certificate of deposit, or comparable security
70-15 shall be issued by a company authorized to do business in the
70-16 state, conditioned that the parties to the transaction shall pay
70-17 all damages or expenses that the state or any governmental
70-18 subdivision or any student or potential student sustains resulting
70-19 from a violation. The bond, certificate of deposit, or comparable
70-20 security shall be to the state to be used only for payment for the
70-21 school's teachout and tuition and fees refund due to a student or
70-22 potential student. The security must be filed with the board and
70-23 must be in such form as shall be approved by the board.
70-24 (f) Schools domiciled, or having their principal place of
70-25 business, outside the state, that engage representatives to
70-26 canvass, solicit, or contract with any person in the state are
70-27 subject to the fee and security requirements of Subsection (c) of
71-1 this section.
71-2 (g) The board shall refer all expenses incurred by the
71-3 school account in administering Subsections (b)(2) and (3) of this
71-4 section to the attorney general's office for collection. The
71-5 amounts collected shall be deposited to the account. Attorney's
71-6 fees and court costs shall be appropriated to the attorney
71-7 general's office.
71-8 (h) Interest the account earns shall be reinvested in the
71-9 account. The state treasurer shall invest the account in the same
71-10 manner as other state funds. Sufficient funds from the account and
71-11 other fees collected by the board shall be appropriated to the
71-12 board for the purpose outlined in this section. The board shall
71-13 administer claims made against the account.
71-14 (i) If a school closes, the board shall attempt to arrange
71-15 for students of the closed school to attend another security
71-16 officer school. The board shall adopt rules specifying the
71-17 circumstances under which the director may declare a school closed.
71-18 (j) The expense incurred by a security officer school in
71-19 providing training that is directly related to educating a student
71-20 who was enrolled in a closed school and placed in the school under
71-21 this section, including the applicable tuition for the period of
71-22 time for which the student has paid tuition, shall be paid in
71-23 accordance with the rules of the board.
71-24 (k) The board shall make reasonable attempts to ensure that
71-25 schools under the board's jurisdiction, including closed schools,
71-26 fulfill the refund obligation as provided by Section 20 of this
71-27 Act. If a school refuses to fulfill the school's obligation or the
72-1 school's bond is insufficient to pay the cost of the teachout and
72-2 refund expenses, the teachout or the refund may be paid from the
72-3 security officer school account except that no school owned, either
72-4 in whole or in part, by a person or corporate entity who was an
72-5 owner, in whole or in part, of a previously closed school shall be
72-6 permitted to receive compensation for a teachout under this
72-7 section.
72-8 (l) If a student cannot be placed in another school, the
72-9 student's tuition and fees shall be refunded under Section 20(q) of
72-10 this Act.
72-11 (m) If a student does not accept a place that is available
72-12 and reasonable in another school, the student's tuition and fees
72-13 shall be refunded under the refund policy maintained by the closing
72-14 school under Sections 20(l) and (m) of this Act.
72-15 (n) Attorney's fees, court costs, or damages may not be paid
72-16 from the security officer school account.
72-17 (o) The board, by rule, shall establish and assess
72-18 reasonable and necessary fees to all persons and entities licensed
72-19 under this Act to be used for the regulation of those persons and
72-20 entities licensed under this Act and to supplement the
72-21 administration and purposes outlined by this Act.
72-22 (p) The board may permit payment of any fee authorized under
72-23 this section that exceeds $1,000 to be paid by installment. The
72-24 board shall provide for appropriate interest charges and late
72-25 penalties in addition to any other remedy that is provided for by
72-26 law for the late payment of a fee installment authorized under this
72-27 section. The board may assess a reasonable service charge to be
73-1 paid by a school that pays a fee by installment in an amount not to
73-2 exceed an annual rate of 10 percent of the fee that is to be paid
73-3 by installment.
73-4 Sec. 20G. COST COMPARISONS. (a) The board shall prepare a
73-5 comparison of the cost to a student of courses of instruction or
73-6 training programs at all security officer schools maintained by
73-7 persons who hold security officer school licenses issued by the
73-8 board.
73-9 (b) The cost comparison must include for each school a
73-10 description of:
73-11 (1) average class size;
73-12 (2) facilities and equipment;
73-13 (3) employment and placement rates;
73-14 (4) length of program; and
73-15 (5) faculty qualifications.
73-16 Sec. 20H. LICENSING REQUIREMENTS DISCLOSED BY SECURITY
73-17 OFFICER SCHOOL. (a) A security officer school must disclose to
73-18 all prospective students state licensing requirements to practice
73-19 the occupation for which the student is training.
73-20 (b) A school must disclose to all prospective students the
73-21 performance of graduates from the school on the licensing
73-22 examination of the board if that information is available.
73-23 Sec. 20I. ENTRANCE REQUIREMENTS FOR SECURITY OFFICER SCHOOL;
73-24 MINIMUM SKILLS TEST. (a) The board shall approve entrance
73-25 requirements, including minimum skills testing, for students who
73-26 may be accepted for a course of study in a security officer school.
73-27 The requirements must be specific and provide that students who are
74-1 allowed to enter a program will have a reasonable chance of
74-2 completing the program.
74-3 (b) The school shall administer a standardized test to
74-4 students with a high school diploma or high school equivalency
74-5 certificate entering the school, if testing for minimum skills
74-6 competency is determined by the board as appropriate and necessary
74-7 to determine if remediation is needed. The test must be
74-8 administered before enrollment and must be nationally recognized as
74-9 appropriate and effective for minimum skills testing and high
74-10 school equivalency. If the test reveals the necessity for
74-11 remediation, the school must implement a plan to encourage the
74-12 student to improve in basic general education skills.
74-13 (c) A student must achieve a successful score on the test
74-14 required by this section before the student is obligated for
74-15 tuition and fees for the vocational portion of the school's
74-16 program.
74-17 (d) The school may, in accordance with federal statutory
74-18 provisions affecting guaranteed student loan programs, on a
74-19 case-by-case basis, refuse to provide the certification statements
74-20 required for guaranteed student loan eligibility, or reduce the
74-21 determination of need for a guaranteed student loan if the school
74-22 determines that the student's expenses to be covered by the loan
74-23 and the estimated cost of attendance, can be met more appropriately
74-24 by the school, directly by the student, or by other sources.
74-25 Sec. 20J. STUDENTS IN SECURITY OFFICER SCHOOLS IN NEED OF
74-26 REMEDIAL HELP. (a) An applicant without a high school diploma or
74-27 high school equivalency certificate must pass an entrance test
75-1 approved by the board and be considered to have the ability to
75-2 benefit from the school before the school may enroll the student.
75-3 (b) A school that admits a student who does not have a high
75-4 school diploma or high school equivalency certificate must develop
75-5 and implement a plan for counseling the student on curriculum,
75-6 student aid, employment opportunities, and the remediation
75-7 necessary for the student to obtain a high school equivalency
75-8 certificate and improve in basic general education skills.
75-9 (c) The school must assist the student in obtaining the
75-10 remediation necessary for the student to pass a standardized
75-11 minimum skills equivalency test approved by the board, and the
75-12 student must pass the test before entering the final quarter of the
75-13 course.
75-14 Sec. 20K. ENROLLMENT POLICIES OF SECURITY OFFICER SCHOOL.
75-15 (a) The enrollment contract of a security officer school must
75-16 contain:
75-17 (1) a disclosure that the contract is a legally
75-18 binding instrument on written acceptance of the student by the
75-19 school, unless canceled as provided by law;
75-20 (2) the school's cancellation and refund policy;
75-21 (3) the method of cancellation of the contract, the
75-22 effective date of any cancellation, and the name and address to
75-23 which the notice of cancellation should be sent or delivered;
75-24 (4) the total cost of the course including tuition and
75-25 all other charges;
75-26 (5) a notification that the fair market value of
75-27 equipment or supplies furnished to the student that the student
76-1 fails to return in a condition suitable for resale not later than
76-2 the 10th business day after the date of cancellation may be
76-3 retained by the school and deducted from any refund of the student;
76-4 (6) a statement that if a student's enrollment is
76-5 canceled for any reason, the school will notify an agency known to
76-6 the school to be providing financial aid to the student of the
76-7 cancellation not later than the 30th day after the date of
76-8 cancellation;
76-9 (7) the name and description of the courses, including
76-10 the number of hours of classroom instruction or home study lessons;
76-11 and
76-12 (8) the Federal Trade Commission statement for a
76-13 holder in due course.
76-14 (b) An enrollment contract may not contain a wage assignment
76-15 provision or a confession of judgment clause.
76-16 (c) Immediately after a prospective student has signed an
76-17 enrollment contract, the school shall give the prospective student
76-18 a copy of the contract, and a copy shall be placed in the student's
76-19 permanent school file.
76-20 (d) A promissory note signed by a student must include the
76-21 Federal Trade Commission statement for a holder in due course.
76-22 Sec. 20L. LOAN COUNSELING BY SECURITY OFFICER SCHOOL. (a)
76-23 A school shall conduct loan counseling entrance interviews with
76-24 each prospective student seeking a loan during the enrollment
76-25 process. A student borrower shall be counseled before the initial
76-26 disbursement of loan proceeds, shortly before the student completes
76-27 one-half of the course, and before the student is issued a
77-1 certificate of completion.
77-2 (b) The school's financial aid officer or counselor shall
77-3 conduct the interviews required by Subsection (a) of this section.
77-4 The interview must include a discussion of:
77-5 (1) the rights and responsibilities of the student as
77-6 a borrower;
77-7 (2) what a loan is and the importance of repayment;
77-8 (3) the total cost of the program in which the student
77-9 will be enrolled;
77-10 (4) the availability of other forms of financial aid,
77-11 grants, and part-time work;
77-12 (5) the starting range and average reported salaries
77-13 of those in the occupation for which the student will be trained,
77-14 if available; and
77-15 (6) job placement services provided by the school and
77-16 the employment rate of persons who attended the school and were
77-17 enrolled in the program in which the student is enrolled.
77-18 (c) A school approved to accept state or federal educational
77-19 loans or grants shall adopt, in addition to the provisions in this
77-20 section, measures to reduce defaults and improve borrowers'
77-21 understanding and respect for the loan repayment obligation as
77-22 provided in 34 C.F.R., Parts 668 and 682.
77-23 (d) The school must give a copy of the Texas Guaranteed
77-24 Student Loan Corporation's "Your Future" guide, or a comparable
77-25 document approved by the board, to a prospective student at a time
77-26 and in a manner that provides the student with sufficient
77-27 opportunity to read the guide or other document and discuss the
78-1 contents with the school's financial aid officer, if necessary for
78-2 understanding and clarity, before signing an enrollment contract
78-3 and before the school accepts the student in a course of study.
78-4 (e) The prospective student must sign a document stating
78-5 that the student:
78-6 (1) attended a loan counseling entrance interview; and
78-7 (2) received a copy of the "Your Future" guide or
78-8 comparable document in the time provided by Subsection (d) of this
78-9 section.
78-10 (f) A copy of the signed document required by Subsection (e)
78-11 of this section must be sent to the student, guarantor, and lender
78-12 and must be placed in the student's permanent school file.
78-13 Sec. 20M. RECORDS OF SECURITY OFFICER SCHOOL. (a) A
78-14 security officer school shall maintain permanent records for all
78-15 students enrolled, as required by the board.
78-16 (b) A school shall adopt a plan to preserve permanent
78-17 records and submit the plan to the board for approval. The plan
78-18 must:
78-19 (1) provide that at least one copy of the records will
78-20 be held in a secure depository; and
78-21 (2) designate an appropriate official to provide a
78-22 student with copies of records or transcripts on request.
78-23 (c) The school shall make the first copy of records or
78-24 transcripts at no charge to the student. The school may make a
78-25 reasonable charge to provide additional copies of records,
78-26 transcripts, or other student information.
78-27 (d) If a school closes, the records become the property of
79-1 the state.
79-2 Sec. 20N. DISPLAY OF LICENSE. (a) Every holder of a
79-3 security officer school license issued under this Act shall display
79-4 the license in a conspicuous place at the premises of the school.
79-5 (b) The board may not use the word "approval" or a variation
79-6 of that term on the license of a security officer school. The
79-7 terminology must be "licensed" to operate, or a variation of that
79-8 phrase.
79-9 Sec. 20O. BOARD ADDRESS. A security officer school shall
79-10 post on the premises of the school at a prominent and conspicuous
79-11 location the name, mailing address, and telephone number of the
79-12 board for the purpose of directing complaints to the board.
79-13 Sec. 20P. REVOCATION AND SUSPENSION. The board may deny,
79-14 suspend, or revoke a security officer school license or place the
79-15 school on probation if the license holder, school, or a
79-16 representative of the school gives a prospective student
79-17 information relating to the school that is false, fraudulent,
79-18 deceptive, substantially inaccurate, or misleading.
79-19 Sec. 20Q. FINANCIAL STABILITY. (a) A school may not
79-20 reflect unearned tuition as a current asset unless the amount shown
79-21 in current assets that reflects unearned tuition is offset by an
79-22 equal amount shown as a current liability. The school must meet
79-23 one of the following criteria in order to be determined as
79-24 financially sound and capable of fulfilling its commitments for
79-25 training:
79-26 (1) current assets must bear a relationship to current
79-27 liabilities in a ratio of at least one-to-one;
80-1 (2) the equity of the owner of the school must be in
80-2 excess of $10,000,000; or
80-3 (3) the school must have posted, or set aside in a
80-4 dedicated escrow account, a bond, certificate of deposit,
80-5 irrevocable letter of credit, or comparable security, acceptable to
80-6 the board, each made payable to the state, in an amount sufficient
80-7 to cover the school's record storage costs, teachout, and tuition
80-8 and fees refund and recovery exposure based on the evidence the
80-9 school submits proving its projected maximum total unearned tuition
80-10 during the period of time covered by the evidence of indebtedness
80-11 to the state.
80-12 (b) The school must demonstrate to the satisfaction of the
80-13 board its financial soundness and ability to fulfill its
80-14 commitments for training.
80-15 Sec. 20R. PROHIBITIONS. A person may not:
80-16 (1) operate a security officer school without a
80-17 license or assume ownership of an existing security officer school
80-18 without obtaining a new license;
80-19 (2) solicit prospective students for a security
80-20 officer school without being licensed as required by this Act;
80-21 (3) accept contracts or enrollment applications from a
80-22 representative of a security officer school who is not registered
80-23 as required by any board rule requiring registration;
80-24 (4) use advertising designed to mislead or deceive
80-25 prospective students of a security officer school;
80-26 (5) fail to notify the board of the discontinuance of
80-27 the operation of any security officer school not later than the
81-1 72nd hour after cessation of classes or make available accurate
81-2 records as required by this Act;
81-3 (6) fail to secure and file within 30 days any
81-4 increased bond required by this Act;
81-5 (7) negotiate any promissory instrument received as
81-6 payment of tuition for a security officer school or other charge
81-7 before completion of 75 percent of the course, provided that before
81-8 that time, the instrument may be transferred by assignment to a
81-9 purchaser who is subject to any defense available against the
81-10 school named as payee;
81-11 (8) enroll a student in a security officer school who
81-12 fails to satisfy entrance requirements; or
81-13 (9) violate any provision of this Act relating to a
81-14 security officer school or a rule adopted under this Act relating
81-15 to a security officer school.
81-16 Sec. 20S. ADMINISTRATIVE PENALTY. (a) The board may impose
81-17 an administrative penalty against a person who violates Section 20R
81-18 of this Act.
81-19 (b) The penalty for a violation may be in an amount not to
81-20 exceed $10,000.
81-21 (c) The amount of the penalty shall be based on:
81-22 (1) the seriousness of the violation, including the
81-23 nature, circumstances, extent, and gravity of any prohibited acts;
81-24 (2) efforts to correct the violation; and
81-25 (3) any other matter that justice may require.
81-26 (d) A director who determines that a violation has occurred
81-27 may issue to the board a report that states the facts on which the
82-1 determination is based and the director's recommendation on the
82-2 imposition of a penalty, including a recommendation on the amount
82-3 of the penalty.
82-4 (e) Within 14 days after the date the report is issued, the
82-5 director shall give written notice of the report to the person.
82-6 The notice may be given by certified mail. The notice must include
82-7 a brief summary of the alleged violation and a statement of the
82-8 amount of the recommended penalty and must inform the person that
82-9 the person has a right to a hearing on the occurrence of the
82-10 violation, the amount of the penalty, or both the occurrence of the
82-11 violation and the amount of the penalty.
82-12 (f) Within 20 days after the date the person receives the
82-13 notice, the person in writing may accept the determination and
82-14 recommended penalty of the director or may make a written request
82-15 for a hearing on the occurrence of the violation, the amount of the
82-16 penalty, or both the occurrence of the violation and the amount of
82-17 the penalty.
82-18 (g) If the person accepts the determination and recommended
82-19 penalty of the director, the board by order shall approve the
82-20 determination and impose the recommended penalty.
82-21 (h) If the person requests a hearing or fails to respond
82-22 timely to the notice, the director shall set a hearing and give
82-23 notice of the hearing to the person. The hearing shall be held by
82-24 an administrative law judge of the State Office of Administrative
82-25 Hearings. The administrative law judge shall make findings of fact
82-26 and conclusions of law and promptly issue to the board a proposal
82-27 for a decision about the occurrence of the violation and the amount
83-1 of a proposed penalty. Based on the findings of fact, conclusions
83-2 of law, and proposal for a decision, the board by order may find
83-3 that a violation has occurred and impose a penalty or may find that
83-4 no violation occurred.
83-5 (i) The notice of the board's order given to the person
83-6 under the Administrative Procedure and Texas Register Act (Article
83-7 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
83-8 amendments must include a statement of the right of the person to
83-9 judicial review of the order.
83-10 (j) Within 30 days after the date the board's order is final
83-11 as provided by Section 16(c), Administrative Procedure and Texas
83-12 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
83-13 its subsequent amendments, the person shall:
83-14 (1) pay the amount of the penalty;
83-15 (2) pay the amount of the penalty and file a petition
83-16 for judicial review contesting the occurrence of the violation, the
83-17 amount of the penalty, or both the occurrence of the violation and
83-18 the amount of the penalty; or
83-19 (3) without paying the amount of the penalty, file a
83-20 petition for judicial review contesting the occurrence of the
83-21 violation, the amount of the penalty, or both the occurrence of the
83-22 violation and the amount of the penalty.
83-23 (k) Within the 30-day period, a person who acts under
83-24 Subsection (j)(3) of this section may:
83-25 (1) stay enforcement of the penalty by:
83-26 (A) paying the amount of the penalty to the
83-27 court for placement in an escrow account; or
84-1 (B) giving to the court a supersedeas bond that
84-2 is approved by the court for the amount of the penalty and that is
84-3 effective until all judicial review of the board's order is final;
84-4 or
84-5 (2) request the court to stay enforcement of the
84-6 penalty by:
84-7 (A) filing with the court a sworn affidavit of
84-8 the person stating that the person is financially unable to pay the
84-9 amount of the penalty and is financially unable to give the
84-10 supersedeas bond; and
84-11 (B) giving a copy of the affidavit to the
84-12 director by certified mail.
84-13 (l) A director who receives a copy of an affidavit under
84-14 Subsection (k)(2) of this section may file with the court, within
84-15 five days after the date the copy is received, a contest to the
84-16 affidavit. The court shall hold a hearing on the facts alleged in
84-17 the affidavit as soon as practicable and shall stay the enforcement
84-18 of the penalty on finding that the alleged facts are true. The
84-19 person who files an affidavit has the burden of proving that the
84-20 person is financially unable to pay the amount of the penalty and
84-21 to give a supersedeas bond.
84-22 (m) If the person does not pay the amount of the penalty and
84-23 the enforcement of the penalty is not stayed, the director may
84-24 refer the matter to the attorney general for collection of the
84-25 amount of the penalty.
84-26 (n) Judicial review of the order of the board:
84-27 (1) is instituted by filing a petition as provided by
85-1 Section 19, Administrative Procedure and Texas Register Act
85-2 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
85-3 subsequent amendments; and
85-4 (2) is under the substantial evidence rule.
85-5 (o) If the court sustains the occurrence of the violation,
85-6 the court may uphold or reduce the amount of the penalty and order
85-7 the person to pay the full or reduced amount of the penalty. If
85-8 the court does not sustain the occurrence of the violation, the
85-9 court shall order that no penalty is owed.
85-10 (p) When the judgment of the court becomes final, the court
85-11 shall proceed under this subsection. If the person paid the amount
85-12 of the penalty and if that amount is reduced or is not upheld by
85-13 the court, the court shall order that the appropriate amount plus
85-14 accrued interest be remitted to the person. The rate of the
85-15 interest is the rate charged on loans to depository institutions by
85-16 the New York Federal Reserve Bank, and the interest shall be paid
85-17 for the period beginning on the date the penalty was paid and
85-18 ending on the date the penalty is remitted. If the person gave a
85-19 supersedeas bond and if the amount of the penalty is not upheld by
85-20 the court, the court shall order the release of the bond. If the
85-21 person gave a supersedeas bond and if the amount of the penalty is
85-22 reduced, the court shall order the release of the bond after the
85-23 person pays the amount.
85-24 (q) A penalty collected under this section shall be remitted
85-25 to the comptroller for deposit in the general revenue fund.
85-26 (r) All proceedings under this section are subject to the
85-27 Administrative Procedure and Texas Register Act (Article 6252-13a,
86-1 Vernon's Texas Civil Statutes) and its subsequent amendments.
86-2 Sec. 20T. CIVIL PENALTY. A security officer school that
86-3 violates this Act or a rule adopted under this Act is liable for a
86-4 civil penalty in addition to any injunctive relief or other remedy
86-5 provided by law. The civil penalty may not exceed $1,000 a day for
86-6 each violation. The attorney general, at the request of the board,
86-7 may bring a civil action to collect a civil penalty under this
86-8 subsection. Civil penalties recovered in a suit brought under this
86-9 subsection shall be deposited in the state treasury to the credit
86-10 of the general revenue fund.
86-11 Sec. 20U. CRIMINAL PENALTIES. (a) A person commits an
86-12 offense if the person fails to comply with Section 20 of this Act.
86-13 Except as provided by Subsection (b) of this section, an offense
86-14 under this section is a Class A misdemeanor.
86-15 (b) A person commits an offense if the person intentionally
86-16 or knowingly uses for personal benefit funds in an amount greater
86-17 than $10,000 that are due as student refunds under Section 20 of
86-18 this Act. An offense under this subsection is a felony of the
86-19 third degree.
86-20 SECTION 2.03. Section 30, Private Investigators and Private
86-21 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
86-22 Statutes), is amended by adding Subsections (c) and (d) to read as
86-23 follows:
86-24 (c) A security officer school, the representative of a
86-25 school, or a recruiter for the school may not advertise or
86-26 represent, in writing or orally, that a school is approved or
86-27 accredited by the state. Those entities or persons may advertise
87-1 that the school has been licensed by the state.
87-2 (d) A school, representative of a school, or recruiter of a
87-3 school may not make or cause to be made a statement or
87-4 representation, written, oral, or visual, offering or publicizing a
87-5 course, program, or school, if the school, representative, or
87-6 recruiter knew or reasonably should have known that the statement
87-7 or representation was false, fraudulent, deceptive, substantially
87-8 inaccurate, or misleading.
87-9 SECTION 2.04. Section 50A, Private Investigators and Private
87-10 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
87-11 Statutes), is amended by adding Subsection (c) to read as follows:
87-12 (c) The board shall prepare information of public interest
87-13 describing the functions of the board and the procedures by which
87-14 complaints are filed with and resolved by the board against a
87-15 security officer school. The board shall make the information
87-16 available to the public and appropriate state agencies.
87-17 PART 3. MASSAGE SCHOOLS
87-18 SECTION 3.01. Section 1(9), Chapter 752, Acts of the 69th
87-19 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
87-20 Civil Statutes), is amended to read as follows:
87-21 (9) "Massage school" means a person <an entity or
87-22 organization with at least two instructors> that teaches, at a
87-23 minimum, the course of instruction or any part of the course of
87-24 instruction required for registration as a massage therapist under
87-25 this Act.
87-26 SECTION 3.02. Section 2(b), Chapter 752, Acts of the 69th
87-27 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
88-1 Civil Statutes), is amended to read as follows:
88-2 (b) An individual who registers as a massage therapist under
88-3 this Act must present evidence satisfactory to the board that the
88-4 person:
88-5 (1) has satisfactorily completed massage therapy
88-6 studies in a 300 hour, supervised course of instruction provided by
88-7 a massage <therapy instructor, by a massage> school registered by
88-8 the department, by a state approved educational institution, or by
88-9 any combination of educational institutions <instructors> or
88-10 schools, in which 125 hours are dedicated to the study of Swedish
88-11 massage therapy techniques taught by a massage therapy instructor,
88-12 50 hours to the study of anatomy, 25 hours to the study of
88-13 physiology, 15 hours to the study of hydrotherapy, 15 hours to the
88-14 study of business practices and professional ethics standards, and
88-15 20 hours to the study of health and hygiene, and 50 hours to an
88-16 internship program;
88-17 (2) is registered as a massage therapist in another
88-18 state or country that has and maintains standards and requirements
88-19 of practice and licensing or registration that substantially
88-20 conform to those of this state, as determined by the department; or
88-21 (3) has practiced massage therapy as a profession for
88-22 not less than five years in another state or country that does not
88-23 have or maintain standards and requirements of practice and
88-24 licensing or registration that substantially conform to those of
88-25 this state, as determined by the department.
88-26 SECTION 3.03. Section 2A, Chapter 752, Acts of the 69th
88-27 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
89-1 Civil Statutes), is amended by amending Subsections (a) and (b) and
89-2 adding Subsection (n) to read as follows:
89-3 (a) A massage school that offers, at a minimum, the course
89-4 of instruction or any part of the course of instruction required
89-5 for registration as a massage therapist must register with the
89-6 department. A massage school must meet the minimum standards of
89-7 operation established by board rule. The registration must include
89-8 a statement of any final convictions of the owners, school
89-9 directors, recruiters, instructional faculty, or other selected
89-10 personnel of the massage school as determined by the department.
89-11 The board may obtain criminal history records of school directors
89-12 or instructional faculty from any law enforcement agency, including
89-13 the United States Department of Justice, the Department of Public
89-14 Safety of the State of Texas, the Texas Department of Criminal
89-15 Justice, or the police department of a municipality.
89-16 (b) A massage therapy instructor must register with the
89-17 department as provided by this Act. The registration must state
89-18 the education and experience level of the applicant in all courses
89-19 or programs that the applicant will teach or instruct and be on a
89-20 form prescribed by the department. The department shall review a
89-21 registration for competency, consistency, and the overall quality
89-22 of the applicant.
89-23 (n) The department shall determine that an applicant for
89-24 massage school registration is financially sound and capable of
89-25 fulfilling its commitments for training before granting the
89-26 registration.
89-27 SECTION 3.04. Section 5, Chapter 752, Acts of the 69th
90-1 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
90-2 Civil Statutes), is amended by adding Subsections (c)-(e) to read
90-3 as follows:
90-4 (c) The department may not adopt rules that restrict
90-5 advertising by a massage school except to prohibit false,
90-6 misleading, or deceptive advertising practices. The rules may not
90-7 restrict:
90-8 (1) the use of an advertising medium;
90-9 (2) the size or duration of an advertisement; or
90-10 (3) advertisement under a trade name.
90-11 (d) A school, the representative of a school, or a recruiter
90-12 for the school may not advertise or represent, in writing or
90-13 orally, that a school is approved or accredited by the state.
90-14 Those entities or persons may advertise that the school has been
90-15 registered by the state.
90-16 (e) A school, representative of a school, or recruiter of a
90-17 school may not make or cause to be made a statement or
90-18 representation, written, oral, or visual, offering or publicizing a
90-19 course, program, or school, if the school, representative, or
90-20 recruiter knew or reasonably should have known that the statement
90-21 or representation was false, fraudulent, deceptive, substantially
90-22 inaccurate, or misleading.
90-23 SECTION 3.05. Section 7(b), Chapter 752, Acts of the 69th
90-24 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
90-25 Civil Statutes), is amended to read as follows:
90-26 (b) The department shall administer this Act. The
90-27 department and the Central Education Agency by agreement may
91-1 provide for the agency to assist the department in administering
91-2 the provisions of this Act relating to massage schools and massage
91-3 therapy instructors.
91-4 SECTION 3.06. Section 10, Chapter 752, Acts of the 69th
91-5 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
91-6 Civil Statutes), is amended by adding Subsection (g) to read as
91-7 follows:
91-8 (g) The department may not use the word "approval" or a
91-9 variation of that term on the certificate of a massage school. The
91-10 terminology must be "registered" or a variation of that phrase, and
91-11 a massage school must display the certificate in a conspicuous
91-12 place.
91-13 SECTION 3.07. Section 11, Chapter 752, Acts of the 69th
91-14 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
91-15 Civil Statutes), is amended by adding Subsection (e) to read as
91-16 follows:
91-17 (e) The department may deny, suspend, or revoke the
91-18 registration of a massage school or place the school on probation
91-19 if the certificate holder, school, or a representative of the
91-20 school gives a prospective student information relating to the
91-21 school that is false, fraudulent, deceptive, substantially
91-22 inaccurate, or misleading.
91-23 SECTION 3.08. Chapter 752, Acts of the 69th Legislature,
91-24 Regular Session, 1985 (Article 4512k, Vernon's Texas Civil
91-25 Statutes), is amended by adding Sections 20-39 to read as follows:
91-26 Sec. 20. CRITERIA FOR REGISTRATION AS MASSAGE SCHOOL.
91-27 Before the department may approve the application of a person to be
92-1 registered as a massage school, the department must find, on
92-2 investigation at the premises of the school, that the school meets
92-3 the following criteria:
92-4 (1) the courses, curriculum, and instruction are of a
92-5 quality, content, and length as may reasonably and adequately
92-6 achieve the stated objective for which the courses, curriculum, or
92-7 instruction are offered;
92-8 (2) there is in the school adequate space, equipment,
92-9 instructional material, and instructor personnel to provide
92-10 training of good quality;
92-11 (3) educational and experience qualifications of
92-12 directors, administrators, and instructors are adequate;
92-13 (4) the school maintains a written record of the
92-14 previous education and training of the applicant student and
92-15 clearly indicates that appropriate credit has been given by the
92-16 school for previous education and training in accordance with
92-17 department rules, with the new training period shortened where
92-18 warranted through use of appropriate skills or achievement tests
92-19 and the student notified;
92-20 (5) a copy of the course outline; schedule of tuition,
92-21 fees, refund policy, and other charges; regulations pertaining to
92-22 absence, grading policy, and rules of operation and conduct;
92-23 regulations pertaining to incomplete grades; the name, mailing
92-24 address, and telephone number of the department for the purpose of
92-25 directing complaints to the department; the current rates of job
92-26 placement and employment of students issued a certificate of
92-27 completion, if available; and notification of the availability of
93-1 the cost comparison information prepared under Section 27 of this
93-2 Act will be furnished to the student in the catalog before
93-3 enrollment;
93-4 (6) on completion of training, the student is given a
93-5 certificate by the school indicating the course and that training
93-6 was satisfactorily completed;
93-7 (7) adequate records as required by the department are
93-8 kept to show attendance and progress or grades, and satisfactory
93-9 standards relating to attendance, progress, and conduct are
93-10 enforced;
93-11 (8) the school complies with all local, city, county,
93-12 municipal, state, and federal regulations; the department may
93-13 require evidence of compliance as is necessary;
93-14 (9) the school is financially sound and capable of
93-15 fulfilling its commitments for training;
93-16 (10) the school's administrators, directors, owners,
93-17 and instructors are of good reputation and character;
93-18 (11) the school has, maintains, and publishes in its
93-19 catalog and enrollment contract the proper policy for the refund of
93-20 the unused portion of tuition, fees, and other charges in the event
93-21 the student enrolled by the school fails to take the course or
93-22 withdraws or is discontinued from the course at any time before
93-23 completion;
93-24 (12) the school does not use erroneous or misleading
93-25 advertising, either by actual statement, omission, or intimation as
93-26 determined by the commission;
93-27 (13) additional criteria as may be required by the
94-1 department;
94-2 (14) the school does not use a name like or similar to
94-3 an existing tax-supported school in the same area;
94-4 (15) the school furnishes to the department the
94-5 current rates of students who receive a certificate of completion
94-6 and of job placement and employment of students issued a
94-7 certificate of completion, if available;
94-8 (16) the school furnishes to the department for
94-9 approval or disapproval student admission requirements for each
94-10 course or program offered by the school;
94-11 (17) the school furnishes to the department for
94-12 approval or disapproval the course lengths and curriculum content
94-13 for each course offered by the school that meets the educational
94-14 requirements and curriculum established by the department;
94-15 (18) the physical facility used by the massage school
94-16 meets the requirements of the department which shall take into
94-17 consideration whether a school is based at a specific location or
94-18 at various locations around the state; and
94-19 (19) the school does not owe a civil penalty under
94-20 Section 13 of this Act.
94-21 Sec. 21. CONSUMER INFORMATION. (a) A massage school must
94-22 submit to the department for approval, on an annual basis, a school
94-23 catalog or comparable written documents detailing the consumer
94-24 information that must be given to a prospective student before
94-25 enrollment. The school catalog or documents must include:
94-26 (1) the name and address of the school and the
94-27 school's governing body and officials;
95-1 (2) a calendar of the school year;
95-2 (3) school policies on enrollment;
95-3 (4) rules relating to absences;
95-4 (5) the school grading policy;
95-5 (6) the school's hours of operation and rules of
95-6 conduct;
95-7 (7) a schedule of the tuition and other fees assessed;
95-8 (8) the school's cancellation and refund policy;
95-9 (9) a general description of the course or courses
95-10 offered;
95-11 (10) information on entrance testing and remedial
95-12 development plans;
95-13 (11) state licensing requirements for courses intended
95-14 to result in licensing of the student;
95-15 (12) starting range and reported average salaries for
95-16 the prior year's graduates in occupations for which courses are
95-17 offered, if the information is available;
95-18 (13) the current rates of job placement and employment
95-19 of students who complete a course of training, if available;
95-20 (14) the department policy on credit for previous
95-21 education and training;
95-22 (15) school regulations relating to incomplete grades;
95-23 (16) information on the transferability of credits
95-24 earned;
95-25 (17) the name, mailing address, and telephone number
95-26 of the department for the purpose of directing complaints to the
95-27 department and the mechanism and procedures for resolving
96-1 grievances submitted to the department;
96-2 (18) a statement that the department has information
96-3 on cost comparison with similar schools;
96-4 (19) market and job availability information, if
96-5 available;
96-6 (20) the names of the members of any advisory council
96-7 of the school and the company for which they work; and
96-8 (21) other information required by the department if
96-9 reasonable notice has been given by the department to the school of
96-10 the additional requirements.
96-11 (b) A massage school may not accept a signed student
96-12 enrollment contract or accept a student into any school program
96-13 until at least 24 hours after the student has received the catalog
96-14 or comparable written documents required under this section.
96-15 (c) A student must sign a receipt stating that:
96-16 (1) the catalog was received by the student before any
96-17 commitment made by the student to the school or by the school to
96-18 the student;
96-19 (2) the student was given an opportunity to discuss
96-20 the catalog with a representative of the school; and
96-21 (3) the student understands the contents and
96-22 implications of the catalog.
96-23 (d) The receipt required by Subsection (c) of this section
96-24 must be placed in the student's permanent school file and a copy of
96-25 the receipt must be delivered to the student.
96-26 Sec. 22. COURSE LENGTH AND CURRICULUM OF MASSAGE SCHOOL.
96-27 (a) A massage school must submit to the department for approval
97-1 the course lengths and curriculum content for each course offered
97-2 by the school that meets the educational requirements and
97-3 curriculum established by the department. The course lengths and
97-4 content may not be implemented unless the department approves them.
97-5 The course lengths and content shall reasonably ensure that
97-6 students develop the job skills and knowledge necessary for
97-7 employment.
97-8 (b) The department shall require a school to fully account
97-9 for all curriculum contents and course lengths before issuing or
97-10 renewing a license and a school that is offering course lengths
97-11 below or above industry standards may be issued a conditional
97-12 registration.
97-13 Sec. 23. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
97-14 TO MASSAGE SCHOOL. (a) The department shall set and enforce
97-15 minimum standards for completion and employment rates of courses
97-16 based on collected data.
97-17 (b) In determining whether to renew a massage school's
97-18 registration, the department shall consider the completion,
97-19 placement, and employment rates of students of the courses.
97-20 (c) Before a school may begin offering a new course of study
97-21 for students the school must show the department the opportunity
97-22 for jobs for graduates of the course and the possibility of
97-23 placement or employment except where the new course is offered to
97-24 credentialed professionals for professional continuing education.
97-25 (d) Before the department issues or renews a massage school
97-26 registration involving a school that offers or advertises a
97-27 placement service, the department may require the school to file a
98-1 certified copy of the school's placement records for the previous
98-2 year.
98-3 Sec. 24. ON-SITE INSPECTIONS. (a) The department shall
98-4 conduct on-site inspections of a massage school to determine the
98-5 normal operating conditions of the school.
98-6 (b) The inspection required by Subsection (a) of this
98-7 section shall be unannounced.
98-8 (c) The commissioner or a designee of the commissioner may
98-9 inspect such things as the instructional books and records,
98-10 classrooms, dormitories, tools, equipment, and classes of a massage
98-11 school or an applicant for a license for a school at any reasonable
98-12 time.
98-13 Sec. 25. REFUND. (a) Each registered massage school must
98-14 maintain a cancellation and settlement policy that provides a full
98-15 refund of all money paid by a student if:
98-16 (1) the student cancels the enrollment agreement or
98-17 contract not later than midnight of the third day after the date on
98-18 which the agreement or contract is signed by the prospective
98-19 student, excluding Saturdays, Sundays, and legal holidays; or
98-20 (2) the enrollment of the student was procured as a
98-21 result of a misrepresentation made in the advertising or
98-22 promotional materials of the school or a representation by an owner
98-23 or representative of the school.
98-24 (b) Each registered massage school must maintain a refund
98-25 policy for the refund of the unused part of tuition, fees, and
98-26 other charges assessed a student if the student, at the expiration
98-27 of the cancellation period established under Subsection (a) of this
99-1 section, terminates enrollment or is terminated by the school, as
99-2 provided by this subsection. The refund policy must provide that:
99-3 (1) a refund is based on the period of the student's
99-4 enrollment, computed on the basis of course time expressed in clock
99-5 hours;
99-6 (2) the effective date of the termination for payment
99-7 of a refund is the earliest of:
99-8 (A) the last date of attendance, if the student
99-9 is terminated for failure to satisfy a school attendance, grade, or
99-10 work requirement;
99-11 (B) the date of receipt by the school of written
99-12 notice of withdrawal by the student;
99-13 (C) the 10th consecutive school day the student
99-14 has been absent, unless any of the absences are excused by the
99-15 school; or
99-16 (D) the date the student fails to return, as
99-17 scheduled, from a leave of absence; and
99-18 (3) if tuition is collected before beginning the
99-19 course of training, and if, after the expiration of the
99-20 cancellation period, the student does not begin the course of
99-21 training, the school may retain not more than $100.
99-22 (c) If a student who begins a course of training that is
99-23 scheduled to run not more than 12 months withdraws from the course
99-24 or is terminated from the course by the school, the school may
99-25 retain $100 in tuition and fees paid by that student and is not
99-26 obligated to refund any additional outstanding tuition if the
99-27 student withdraws or is terminated during the last quarter of the
100-1 course. If the student withdraws or is terminated before the last
100-2 quarter of the course begins, the school shall refund the following
100-3 percentages of any outstanding tuition:
100-4 (1) for withdrawal or termination occurring during the
100-5 first week or first one-tenth of the course, whichever is less, 90
100-6 percent;
100-7 (2) for withdrawal or termination occurring after the
100-8 first week or first one-tenth of the course, whichever is less, but
100-9 within the first three weeks of the course, 80 percent;
100-10 (3) for withdrawal or termination occurring after the
100-11 first three weeks of the course but not later than the last date of
100-12 the first quarter of the course, 75 percent;
100-13 (4) for withdrawal or termination occurring during the
100-14 second quarter of the course, 50 percent; and
100-15 (5) for withdrawal or termination occurring during the
100-16 third quarter of the course, 10 percent.
100-17 (d) A refund owed under this section must be paid not later
100-18 than the 60th day after the date on which the student becomes
100-19 eligible for the refund, as determined under Subsection (b) of this
100-20 section.
100-21 (e) If a refund is not made within the period required by
100-22 this section, the school shall pay, as a penalty, interest on the
100-23 refund for the interval beginning with the first day following the
100-24 expiration of the refund period and ending with the day immediately
100-25 preceding the date the refund is made. If the refund is made to a
100-26 lending institution, the interest shall also be paid to that
100-27 institution and applied against the student's loan. The board with
101-1 the advice of the advisory council annually shall establish the
101-2 level of interest at a level sufficient to provide a deterrent to
101-3 the retention of student funds. The board may exempt a school from
101-4 the payment of the interest if the school makes a good faith effort
101-5 to refund the tuition but is unable to locate the student. The
101-6 school shall provide to the department on request documentation of
101-7 the effort to locate the student.
101-8 (f) A massage school shall record a grade of "incomplete"
101-9 for a student who withdraws but is not entitled to a refund under
101-10 Subsection (c) of this section if the student requests the grade at
101-11 the time the student withdraws and the student withdraws for an
101-12 appropriate reason unrelated to the student's academic status. A
101-13 student who receives a grade of incomplete may reenroll in the
101-14 program during the 12-month period following the date the student
101-15 withdraws and may complete those incomplete subjects without
101-16 payment of additional tuition.
101-17 (g) If a course of instruction is discontinued by the school
101-18 and this prevents the student from completing the course, all
101-19 tuition and fees paid are due and refundable.
101-20 (h) Refunds under this section shall be applied:
101-21 (1) first, to the repayment of student loans;
101-22 (2) second, to the repayment of other government
101-23 loans;
101-24 (3) third, to the repayment of other financial loans;
101-25 and
101-26 (4) last, to the student's personal tuitional
101-27 expenditures.
102-1 (i) Not later than the 30th day after the date on which a
102-2 refund is due to a student who has received a student loan, the
102-3 school shall notify the guaranty agency and the lender of the
102-4 required refund and any refund previously made. The guaranty
102-5 agency and the lender shall notify the student and the school if
102-6 the student's loan has been transferred to another holder.
102-7 (j) The failure of a school or a person to pay a tuition
102-8 refund as required by this section is a deceptive trade practice
102-9 under Subchapter E, Chapter 17, Business & Commerce Code, and its
102-10 subsequent amendments.
102-11 Sec. 26. CONSOLIDATION OF FEES AND MASSAGE SCHOOL ACCOUNT.
102-12 (a) At the beginning of each fiscal year the department shall
102-13 collect a fee from a school for deposit in a special account in the
102-14 general revenue fund in the state treasury called the massage
102-15 school account and to be administered by the department.
102-16 (b) The amount of the fee is determined by applying a
102-17 percentage established by the department, based on the
102-18 recommendation of the school accounts advisory board, to each
102-19 school's annual gross tuition, with consideration given to the
102-20 school's size, expense of regulation, potential for teachouts,
102-21 tuition and fees refund and recovery exposure, and loan default
102-22 rates (with schools with high default rates paying higher fees),
102-23 and any other relevant factors. The account shall be used for:
102-24 (1) the administration of this Act;
102-25 (2) the cost of teachouts as provided by this Act;
102-26 (3) the cost of tuition and fees recovery and the cost
102-27 of student refunds that a school has not made; and
103-1 (4) the cost of storing student records that have
103-2 become property of the state under this Act.
103-3 (c) The department may grant an exemption from payment into
103-4 the account to a small school, as determined by the department, or
103-5 to a school that does not use guaranteed student loans for tuition
103-6 revenue. A school exempt as provided for by this subsection must
103-7 pay the necessary fees for regulation, as determined by the
103-8 department, and provide a bond, certificate of deposit, or
103-9 comparable security, as determined and approved by the department,
103-10 that is sufficient to cover the cost of the school's record storage
103-11 costs, teachout, and tuition and fees refund and recovery exposure
103-12 based on the evidence the school submits proving its projected
103-13 maximum total unearned tuition during the period of registration.
103-14 (d) The security shall be provided by the school for the
103-15 period during which the registration is issued, and the obligation
103-16 of the bond or other security must be that neither this Act nor any
103-17 rule adopted under this Act is violated by the school or any of its
103-18 officers, agents, or employees.
103-19 (e) The bond, certificate of deposit, or comparable security
103-20 must be issued by a company authorized to do business in the state,
103-21 conditioned that the parties to the transaction shall pay all
103-22 damages or expenses that the state or any governmental subdivision
103-23 or any student or potential student sustains resulting from a
103-24 violation. The bond, certificate of deposit, or comparable
103-25 security shall be to the state to be used only for payment for the
103-26 school's teachout and tuition and fees refund due to a student or
103-27 potential student. The security must be filed with the department
104-1 and must be in such form as shall be approved by the department.
104-2 (f) Schools domiciled, or having their principal place of
104-3 business, outside the state, that engage representatives to
104-4 canvass, solicit, or contract with any person in the state are
104-5 subject to the fee and security requirements of Subsection (c) of
104-6 this section.
104-7 (g) The department shall refer all expenses incurred by the
104-8 school account in administering Subsections (b)(2) and (3) of this
104-9 section to the attorney general's office for collection. The
104-10 amounts collected shall be deposited to the account. Attorney's
104-11 fees and court costs shall be appropriated to the attorney
104-12 general's office.
104-13 (h) Interest the account earns shall be reinvested in the
104-14 account. The state treasurer shall invest the account in the same
104-15 manner as other state funds. Sufficient funds from the account and
104-16 fees collected by the department from massage instructors, massage
104-17 establishments, and massage schools shall be appropriated to the
104-18 department for the purpose outlined in this section. The
104-19 department shall administer claims made against the account.
104-20 (i) If a school closes, the department shall attempt to
104-21 arrange for students of the closed school to attend another massage
104-22 school. The department shall adopt rules specifying the
104-23 circumstances under which a school is considered closed.
104-24 (j) The expense incurred by a massage school in providing
104-25 training that is directly related to educating a student who was
104-26 enrolled in a closed school and placed in the school under this
104-27 section, including the applicable tuition for the period of time
105-1 for which the student has paid tuition, shall be paid in accordance
105-2 with rules of the department.
105-3 (k) The department shall make reasonable attempts to ensure
105-4 that schools under the department's jurisdiction, including closed
105-5 schools, fulfill the refund obligation as provided by Section 25 of
105-6 this Act. If a school refuses to fulfill the school's obligation
105-7 or the school's bond is insufficient to pay the cost of the
105-8 teachout and refund expenses, the teachout or the refund may be
105-9 paid from the massage school account except that no school owned,
105-10 either in whole or in part, by a person or corporate entity who was
105-11 an owner, in whole or in part, of a previously closed school shall
105-12 be permitted to receive compensation for a teachout under this
105-13 section.
105-14 (l) If a student cannot be placed in another school, the
105-15 student's tuition and fees shall be refunded under Section 25(g) of
105-16 this Act.
105-17 (m) If a student does not accept a place that is available
105-18 and reasonable in another school, the student's tuition and fees
105-19 shall be refunded under the refund policy maintained by the closing
105-20 school under Sections 25(b) and (c) of this Act.
105-21 (n) Attorney's fees, court costs, or damages may not be paid
105-22 from the massage school account.
105-23 (o) The department by rule shall establish and assess
105-24 reasonable and necessary fees to all persons and entities licensed
105-25 under this Act to be used for the regulation of those persons and
105-26 entities licensed under this Act and to supplement the
105-27 administration and purposes outlined by this Act.
106-1 (p) The department may permit payment of any fee authorized
106-2 under this section that exceeds $1,000 to be paid by installment.
106-3 The department shall provide for appropriate interest charges and
106-4 late penalties in addition to any other remedy that is provided for
106-5 by law for the late payment of a fee installment authorized under
106-6 this section. The department may assess a reasonable service
106-7 charge to be paid by a school that pays a fee by installment in an
106-8 amount not to exceed an annual rate of 10 percent of the fee that
106-9 is to be paid by installment.
106-10 Sec. 27. COST COMPARISONS. (a) The department shall
106-11 prepare a comparison of the cost to a student of courses of
106-12 instruction or training programs at all registered massage schools.
106-13 (b) The cost comparison must include for each school a
106-14 description of:
106-15 (1) average class size;
106-16 (2) facilities and equipment;
106-17 (3) employment and placement rates, if available;
106-18 (4) length of program; and
106-19 (5) faculty qualifications.
106-20 Sec. 28. LICENSING REQUIREMENTS DISCLOSED BY MASSAGE SCHOOL.
106-21 (a) A massage school must disclose to all prospective students
106-22 state requirements to practice the occupation for which the student
106-23 is training.
106-24 (b) A school must disclose to all prospective students the
106-25 performance of graduates from the school on the licensing
106-26 examination of the department if that information is available.
106-27 Sec. 29. ENTRANCE REQUIREMENTS FOR MASSAGE SCHOOL; MINIMUM
107-1 SKILLS TEST. (a) The department shall approve entrance
107-2 requirements, including minimum skills testing, for students who
107-3 may be accepted for a course of study in a massage school. The
107-4 requirements must be specific and provide that students who are
107-5 allowed to enter a course will have a reasonable chance of
107-6 completing the program.
107-7 (b) The school shall administer a standardized test to
107-8 students with a high school diploma or high school equivalency
107-9 certificate entering the school, if testing for minimum skill
107-10 competency is determined by the department as appropriate and
107-11 necessary to determine if remediation is needed. The test must be
107-12 administered before enrollment and must be nationally recognized as
107-13 appropriate and effective for minimum skills testing and high
107-14 school equivalency. If the test reveals the necessity for
107-15 remediation, the school must implement a plan to encourage the
107-16 student to improve in basic general education skills.
107-17 (c) A student must achieve a successful score on the test
107-18 required by this section before the student is obligated for
107-19 tuition and fees for the vocational portion of the school's
107-20 program.
107-21 (d) The school may, in accordance with federal statutory
107-22 provisions affecting guaranteed student loan programs, on a
107-23 case-by-case basis, refuse to provide the certification statements
107-24 required for guaranteed student loan eligibility or reduce the
107-25 determination of need for a guaranteed student loan if the school
107-26 determines that the student's expenses to be covered by the loan
107-27 and the estimated cost of attendance can be met more appropriately
108-1 by the school, directly by the student, or by other sources.
108-2 Sec. 30. STUDENTS IN MASSAGE SCHOOLS IN NEED OF REMEDIAL
108-3 HELP. (a) An applicant without a high school diploma or high
108-4 school equivalency certificate must pass an entrance test approved
108-5 by the department and be considered to have the ability to benefit
108-6 from the school before the school may enroll the student.
108-7 (b) A school that admits a student who does not have a high
108-8 school diploma or high school equivalency certificate must develop
108-9 and implement a plan for counseling the student on curriculum,
108-10 student aid, employment opportunities, and the remediation
108-11 necessary for the student to obtain a high school equivalency
108-12 certificate and improve in basic general education skills.
108-13 (c) The school must assist the student in obtaining the
108-14 remediation necessary for the student to pass a standardized
108-15 minimum skills equivalency test, approved by the department, and
108-16 the student must pass the test before entering the final quarter of
108-17 the course.
108-18 Sec. 31. ENROLLMENT POLICIES OF MASSAGE SCHOOL. (a) The
108-19 enrollment contract of a massage school must contain:
108-20 (1) a disclosure that the contract is a legally
108-21 binding instrument on written acceptance of the student by the
108-22 school, unless canceled as provided by law;
108-23 (2) the school's cancellation and refund policy;
108-24 (3) the method of cancellation of the contract, the
108-25 effective date of any cancellation, and the name and address to
108-26 which the notice of cancellation should be sent or delivered;
108-27 (4) the total cost of the course including tuition and
109-1 all other charges;
109-2 (5) a notification that the fair market value of
109-3 equipment or supplies furnished to the student that the student
109-4 fails to return in a condition suitable for resale not later than
109-5 the 10th business day after the date of cancellation may be
109-6 retained by the school and deducted from any refund of the student;
109-7 (6) a statement that if a student's enrollment is
109-8 canceled for any reason, the school will notify an agency known to
109-9 the school to be providing financial aid to the student of the
109-10 cancellation not later than the 30th day after the date of
109-11 cancellation;
109-12 (7) the name and description of the courses, including
109-13 the number of hours of classroom instruction or home study lessons;
109-14 and
109-15 (8) the Federal Trade Commission statement for a
109-16 holder in due course.
109-17 (b) An enrollment contract may not contain a wage assignment
109-18 provision or a confession of judgment clause.
109-19 (c) Immediately after a prospective student has signed an
109-20 enrollment contract, the school shall give the prospective student
109-21 a copy of the contract, and a copy shall be placed in the student's
109-22 permanent school file.
109-23 (d) A promissory note signed by a student must include the
109-24 Federal Trade Commission statement required for a holder in due
109-25 course.
109-26 Sec. 32. LOAN COUNSELING BY MASSAGE SCHOOL. (a) A school
109-27 shall conduct loan counseling entrance interviews with each
110-1 prospective student seeking a loan during the enrollment process.
110-2 A student borrower shall be counseled before the initial
110-3 disbursement of loan proceeds, shortly before the student ceases
110-4 one-half of the course, and before the student is issued a
110-5 certificate of completion.
110-6 (b) The school's financial aid officer or counselor shall
110-7 conduct the interviews required by Subsection (a) of this section.
110-8 The interview must include a discussion of:
110-9 (1) the rights and responsibilities of the student as
110-10 a borrower;
110-11 (2) what a loan is and the importance of repayment;
110-12 (3) the total cost of the program in which the student
110-13 will be enrolled;
110-14 (4) the availability of other forms of financial aid,
110-15 grants, and part-time work;
110-16 (5) the starting range and average reported salaries
110-17 of those in the occupation for which the student will be trained,
110-18 if available; and
110-19 (6) job placement services provided by the school and
110-20 the employment rate of persons who attended the school and were
110-21 enrolled in the program in which the student is enrolled.
110-22 (c) A school approved to accept state or federal educational
110-23 loans or grants shall adopt, in addition to the provisions in this
110-24 section, measures to reduce defaults and improve borrowers'
110-25 understanding and respect for the loan repayment obligation as
110-26 provided in 34 C.F.R., Parts 668 and 682.
110-27 (d) The school must give a copy of the Texas Guaranteed
111-1 Student Loan Corporation's "Your Future" guide, or a comparable
111-2 document approved by the department, to a prospective student at a
111-3 time and in a manner that provide the student with sufficient
111-4 opportunity to read the guide or other document and discuss the
111-5 contents with the school's financial aid officer, if necessary for
111-6 understanding and clarity, before signing an enrollment contract
111-7 and before the school accepts the student in a course of study.
111-8 (e) The prospective student must sign a document stating
111-9 that the student:
111-10 (1) attended a loan counseling entrance interview; and
111-11 (2) received a copy of the "Your Future" guide, or
111-12 comparable document in the time provided by Subsection (d) of this
111-13 section.
111-14 (f) A copy of the signed document required by Subsection (e)
111-15 of this section must be sent to the student, guarantor, and lender
111-16 and must be placed in the student's permanent school file.
111-17 Sec. 33. RECORDS OF MASSAGE SCHOOL. (a) A massage school
111-18 shall maintain permanent records for all students enrolled, as
111-19 required by the department.
111-20 (b) A school shall adopt a plan to preserve permanent
111-21 records and submit the plan to the department for approval. The
111-22 plan must:
111-23 (1) provide that at least one copy of the records will
111-24 be held in a secure depository; and
111-25 (2) designate an appropriate official to provide a
111-26 student with copies of records or transcripts on request.
111-27 (c) The school shall make the first copy of records or
112-1 transcripts at no charge to the student. The school may make a
112-2 reasonable charge to provide additional copies of records,
112-3 transcripts, or other student information.
112-4 (d) If a school closes, the records become the property of
112-5 the state.
112-6 Sec. 34. DEPARTMENT ADDRESS. A massage school shall post on
112-7 the premises of the school at a prominent and conspicuous location
112-8 the name, mailing address, and telephone number of the department
112-9 for the purpose of directing complaints to the department.
112-10 Sec. 35. COMPLAINTS. The department shall prepare
112-11 information of public interest describing the functions of the
112-12 department and the procedures by which complaints are filed with
112-13 and resolved by the department against a massage school. The
112-14 department shall make the information available to the public and
112-15 appropriate state agencies.
112-16 Sec. 36. FINANCIAL STABILITY. (a) A school may not reflect
112-17 unearned tuition as a current asset unless the amount shown in
112-18 current assets that reflects unearned tuition is offset by an equal
112-19 amount shown as a current liability. The school must meet one of
112-20 the following criteria in order to be determined as financially
112-21 sound and capable of fulfilling its commitments for training:
112-22 (1) current assets must bear a relationship to current
112-23 liabilities in a ratio of at least one-to-one;
112-24 (2) the equity of the owner of the school must be in
112-25 excess of $10,000,000; or
112-26 (3) the school must have posted, or set aside in a
112-27 dedicated escrow account, a bond, certificate of deposit,
113-1 irrevocable letter of credit or comparable security, acceptable to
113-2 the department, each made payable to the State of Texas, in an
113-3 amount sufficient to cover the school's record storage costs,
113-4 teachout, and tuition and fees refund and recovery exposure based
113-5 on the evidence the school submits proving its projected maximum
113-6 total unearned tuition during the period of time covered by the
113-7 evidence of indebtedness to the state.
113-8 (b) The school must demonstrate to the satisfaction of the
113-9 department its financial soundness and ability to fulfill its
113-10 commitments for training.
113-11 Sec. 37. PROHIBITIONS. A person may not:
113-12 (1) operate a massage school without registering with
113-13 the department or assume ownership of an existing massage school
113-14 without registering with the department;
113-15 (2) solicit prospective students for a massage school
113-16 without being registered as required by this Act;
113-17 (3) accept contracts or enrollment applications from a
113-18 representative of a massage school who is not registered as
113-19 required by any department rule requiring registration;
113-20 (4) use advertising designed to mislead or deceive
113-21 prospective massage school students;
113-22 (5) fail to notify the department of the
113-23 discontinuance of the operation of any massage school not later
113-24 than the 72nd hour after cessation of classes or make available
113-25 accurate records as required by this Act;
113-26 (6) fail to secure and file within 30 days any
113-27 increased bond required by this Act;
114-1 (7) negotiate any promissory instrument received as
114-2 payment of tuition for a massage school or other charge before
114-3 completion of 75 percent of the course, provided that before that
114-4 time, the instrument may be transferred by assignment to a
114-5 purchaser who is subject to any defense available against the
114-6 school named as payee;
114-7 (8) enroll a student in a massage school who fails to
114-8 satisfy entrance requirements; or
114-9 (9) violate any provision of this Act relating to a
114-10 massage school or a rule adopted under this Act relating to a
114-11 massage school.
114-12 Sec. 38. ADMINISTRATIVE PENALTY. (a) The board may impose
114-13 an administrative penalty against a person who violates Section 37
114-14 of this Act.
114-15 (b) The penalty for a violation may be in an amount not to
114-16 exceed $10,000.
114-17 (c) The amount of the penalty shall be based on:
114-18 (1) the seriousness of the violation, including the
114-19 nature, circumstances, extent, and gravity of any prohibited acts;
114-20 (2) efforts to correct the violation; and
114-21 (3) any other matter that justice may require.
114-22 (d) If the commissioner of health determines that a
114-23 violation has occurred, the commissioner may issue to the board a
114-24 report that states the facts on which the determination is based
114-25 and the commissioner's recommendation on the imposition of a
114-26 penalty, including a recommendation on the amount of the penalty.
114-27 (e) Within 14 days after the date the report is issued, the
115-1 commissioner shall give written notice of the report to the person.
115-2 The notice may be given by certified mail. The notice must include
115-3 a brief summary of the alleged violation and a statement of the
115-4 amount of the recommended penalty and must inform the person that
115-5 the person has a right to a hearing on the occurrence of the
115-6 violation, the amount of the penalty, or both the occurrence of the
115-7 violation and the amount of the penalty.
115-8 (f) Within 20 days after the date the person receives the
115-9 notice, the person in writing may accept the determination and
115-10 recommended penalty of the commissioner or may make a written
115-11 request for a hearing on the occurrence of the violation, the
115-12 amount of the penalty, or both the occurrence of the violation and
115-13 the amount of the penalty.
115-14 (g) If the person accepts the determination and recommended
115-15 penalty of the commissioner, the board by order shall approve the
115-16 determination and impose the recommended penalty.
115-17 (h) If the person requests a hearing or fails to respond
115-18 timely to the notice, the commissioner shall set a hearing and give
115-19 notice of the hearing to the person. The hearing shall be held by
115-20 a hearings examiner appointed by the commissioner. The hearings
115-21 examiner shall make findings of fact and conclusions of law and
115-22 promptly issue to the board a proposal for a decision about the
115-23 occurrence of the violation and the amount of a proposed penalty.
115-24 Based on the findings of fact, conclusions of law, and proposal for
115-25 a decision, the board by order may find that a violation has
115-26 occurred and impose a penalty or may find that no violation
115-27 occurred.
116-1 (i) The notice of the board's order given to the person
116-2 under the Administrative Procedure and Texas Register Act (Article
116-3 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
116-4 amendments must include a statement of the right of the person to
116-5 judicial review of the order.
116-6 (j) Within 30 days after the date the board's order is final
116-7 as provided by Section 16(c), Administrative Procedure and Texas
116-8 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
116-9 its subsequent amendments, the person shall:
116-10 (1) pay the amount of the penalty;
116-11 (2) pay the amount of the penalty and file a petition
116-12 for judicial review contesting the occurrence of the violation, the
116-13 amount of the penalty, or both the occurrence of the violation and
116-14 the amount of the penalty; or
116-15 (3) without paying the amount of the penalty, file a
116-16 petition for judicial review contesting the occurrence of the
116-17 violation, the amount of the penalty, or both the occurrence of the
116-18 violation and the amount of the penalty.
116-19 (k) Within the 30-day period, a person who acts under
116-20 Subsection (j)(3) of this section may:
116-21 (1) stay enforcement of the penalty by:
116-22 (A) paying the amount of the penalty to the
116-23 court for placement in an escrow account; or
116-24 (B) giving to the court a supersedeas bond that
116-25 is approved by the court for the amount of the penalty and that is
116-26 effective until all judicial review of the board's order is final;
116-27 or
117-1 (2) request the court to stay enforcement of the
117-2 penalty by:
117-3 (A) filing with the court a sworn affidavit of
117-4 the person stating that the person is financially unable to pay the
117-5 amount of the penalty and is financially unable to give the
117-6 supersedeas bond; and
117-7 (B) giving a copy of the affidavit to the
117-8 commissioner by certified mail.
117-9 (l) If the commissioner receives a copy of an affidavit
117-10 under Subsection (k)(2) of this section the commissioner may file
117-11 with the court, within five days after the date the copy is
117-12 received, a contest to the affidavit. The court shall hold a
117-13 hearing on the facts alleged in the affidavit as soon as
117-14 practicable and shall stay the enforcement of the penalty on
117-15 finding that the alleged facts are true. The person who files an
117-16 affidavit has the burden of proving that the person is financially
117-17 unable to pay the amount of the penalty and to give a supersedeas
117-18 bond.
117-19 (m) If the person does not pay the amount of the penalty and
117-20 the enforcement of the penalty is not stayed, the commissioner may
117-21 refer the matter to the attorney general for collection of the
117-22 amount of the penalty.
117-23 (n) Judicial review of the order of the board:
117-24 (1) is instituted by filing a petition as provided by
117-25 Section 19, Administrative Procedure and Texas Register Act
117-26 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
117-27 subsequent amendments; and
118-1 (2) is under the substantial evidence rule.
118-2 (o) If the court sustains the occurrence of the violation,
118-3 the court may uphold or reduce the amount of the penalty and order
118-4 the person to pay the full or reduced amount of the penalty. If
118-5 the court does not sustain the occurrence of the violation, the
118-6 court shall order that no penalty is owed.
118-7 (p) When the judgment of the court becomes final, the court
118-8 shall proceed under this subsection. If the person paid the amount
118-9 of the penalty and if that amount is reduced or is not upheld by
118-10 the court, the court shall order that the appropriate amount plus
118-11 accrued interest be remitted to the person. The rate of the
118-12 interest is the rate charged on loans to depository institutions by
118-13 the New York Federal Reserve Bank, and the interest shall be paid
118-14 for the period beginning on the date the penalty was paid and
118-15 ending on the date the penalty is remitted. If the person gave a
118-16 supersedeas bond and if the amount of the penalty is not upheld by
118-17 the court, the court shall order the release of the bond. If the
118-18 person gave a supersedeas bond and if the amount of the penalty is
118-19 reduced, the court shall order the release of the bond after the
118-20 person pays the amount.
118-21 (q) A penalty collected under this section shall be remitted
118-22 to the comptroller for deposit in the general revenue fund.
118-23 (r) All proceedings under this section are subject to the
118-24 Administrative Procedure and Texas Register Act (Article 6252-13a,
118-25 Vernon's Texas Civil Statutes) and its subsequent amendments.
118-26 Sec. 39. CRIMINAL PENALTIES. (a) A person commits an
118-27 offense if the person fails to comply with Section 2A or 25 of this
119-1 Act.
119-2 (b) A person commits an offense if the person intentionally
119-3 or knowingly uses for personal benefit funds in an amount greater
119-4 than $10,000 that are due as student refunds under Section 25 of
119-5 this Act. An offense under this subsection is a felony of the
119-6 third degree. Except as provided by Subsection (b) of this
119-7 section, an offense under this section is a Class A misdemeanor.
119-8 PART 4. BARBER SCHOOLS OR COLLEGES
119-9 SECTION 4.01. Sections 3(b) and (f), Chapter 65, Acts of the
119-10 41st Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
119-11 Texas Civil Statutes), are amended to read as follows:
119-12 (b) Any firm, corporation or person who opens a new barber
119-13 shop shall within three days submit an application in writing to
119-14 the board for a temporary barber shop permit together with an
119-15 inspection fee in an amount established by the board <not to exceed
119-16 $70>. The applicant must place in his application the permanent
119-17 address of his shop including a legal description of the premises
119-18 to be licensed and such other information as shall be required by
119-19 the board.
119-20 (f) To continue operating a barber shop, a person must renew
119-21 the permit issued to his shop by paying a renewal fee in an amount
119-22 established by the board <not to exceed $70>. All permits expire
119-23 on July 1 of odd-numbered years.
119-24 SECTION 4.02. (a) Effective September 1, 1994, Section
119-25 9(a), Chapter 65, Acts of the 41st Legislature, 1st Called Session,
119-26 1929 (Article 8407a, Vernon's Texas Civil Statutes), is amended to
119-27 read as follows:
120-1 (a) Any person desiring to conduct or operate a barber
120-2 school or college in this state shall first obtain a permit from
120-3 the board after demonstrating that said school or college has first
120-4 met the requirements of this section. Said permit shall be
120-5 prominently displayed at all times at such school or college. The
120-6 board shall determine that an applicant for a barber school or
120-7 college permit is financially sound and capable of fulfilling its
120-8 commitments for training before granting the permit. <Each
120-9 applicant shall furnish a surety bond in the amount of $10,000,
120-10 payable to the state, and conditioned to refund unpaid tuition if
120-11 the school or college closes or ceases operation before its courses
120-12 of instruction have been completed.>
120-13 (b) Any surety bond furnished under Section 9(a), Chapter
120-14 65, Acts of the 41st Legislature, 1st Called Session, 1929 (Article
120-15 8407a, Vernon's Texas Civil Statutes), as Section 9(a) existed
120-16 before amendment by this Act, remains in full force and effect.
120-17 Any obligation under a surety bond furnished under Section 9(a)
120-18 before amendment by this Act is not impaired by the amendment.
120-19 SECTION 4.03. Sections 9(b)-(y), Chapter 65, Acts of the
120-20 41st Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
120-21 Texas Civil Statutes), are amended to read as follows:
120-22 (b) No certificate or permit shall be issued as provided for
120-23 herein to an applicant to be a student in such a school or college
120-24 unless said applicant has completed at least a seventh grade
120-25 education and such other requirements as shall be specified by the
120-26 board. Each applicant to be a student must submit an enrollment
120-27 application to the board in the form prescribed by the board. The
121-1 application must be accompanied by a nonrefundable application fee
121-2 set by the board <in an amount not to exceed $25>. A separate
121-3 application is required for each enrollment, reenrollment, or
121-4 transfer enrollment. However, the application fee applies only to
121-5 the first enrollment and may not be charged for any later
121-6 enrollment, reenrollment, or transfer enrollment.
121-7 (c) The board may not approve a barber school or college
121-8 unless the school or college requires the following hours of
121-9 instruction as a prerequisite for graduation:
121-10 (1) Class A barber--1,500 hours of instruction
121-11 completed in a course of not less than nine months, with not less
121-12 than 800 hours in the actual practice of cutting hair as a primary
121-13 service;
121-14 (2) barber technician--300 hours of instruction
121-15 completed in a course of not less than eight weeks;
121-16 (3) wig instructor--200 hours of instruction completed
121-17 in a course of not less than eight weeks;
121-18 (4) wig specialist--300 hours of instruction completed
121-19 in a course of not less than eight weeks;
121-20 (5) manicurist--300 hours of instruction completed in
121-21 a course of not less than eight weeks; and
121-22 (6) teacher--1,000 hours of instruction completed in a
121-23 course of not less than six months.
121-24 (d) If a school or college offers a refresher course, that
121-25 course must require at least 300 hours of instruction. The board
121-26 by rule shall set the curriculum for a refresher course.
121-27 (e) A barber school or college shall submit a monthly
122-1 progress report to the board regarding each student in attendance
122-2 at the school or college. The report must certify the daily
122-3 attendance record of the student and the number of credit hours
122-4 earned by the student during the previous month. The school or
122-5 college may not increase, decrease, or withhold for any reason the
122-6 number of credit hours earned by a student. On completion by a
122-7 student of a prescribed course of instruction, the school or
122-8 college shall certify to the board that the student has completed
122-9 the required number of hours and is eligible to take the
122-10 appropriate examination. Each barber school or college permittee
122-11 shall furnish to the board:
122-12 (1) the current course completion rates of students
122-13 who attend a course of instruction offered by the school or
122-14 college; and
122-15 (2) job placement rates and employment rates of
122-16 students who complete a course of instruction.
122-17 (f) Such schools or colleges shall instruct students in the
122-18 theory and practice of such subjects as may be necessary and
122-19 beneficial in the practice of barbering, including the following:
122-20 (1) all laws governing the practice of barbering in
122-21 this state;
122-22 (2) scientific fundamentals of barbering;
122-23 (3) hygienic bacteriology;
122-24 (4) histology of the hair, skin, muscles, and nerves;
122-25 (5) the structure of the head, neck and face;
122-26 (6) elementary chemistry relating to sterilization and
122-27 antiseptics;
123-1 (7) common disorders of the skin and hair;
123-2 (8) massaging muscles of the scalp, face, and neck;
123-3 (9) hair-cutting;
123-4 (10) shaving, shampooing, and bleaching and dyeing of
123-5 the hair;
123-6 (11) manicuring, administering facial treatments, hair
123-7 weaving, servicing wigs; and
123-8 (12) any other skills, techniques, services,
123-9 treatments, or undertakings within the definition of the practice
123-10 of barbering provided for in this Act.
123-11 (g) No barber school or college which issues "Class A"
123-12 certificates shall be approved by the Board for the issuance of a
123-13 permit unless said school or college has the following:
123-14 (1) An adequate school site housed in a substantial
123-15 building of a permanent-type construction containing a minimum of
123-16 not less than two thousand, eight hundred (2,800) square feet of
123-17 floor space. Such space shall be divided into the following
123-18 separate departments: a senior department, a junior department, a
123-19 class theory room, a supply room, an office space, a dressing and
123-20 cloak room, and two (2) sanitary, modern separate rest rooms,
123-21 equipped with one (1) commode each and a urinal in one (1) rest
123-22 room.
123-23 (2) A hard-surface floor covering of tile or other
123-24 suitable material.
123-25 (3) A minimum of twenty (20) modern barber chairs with
123-26 cabinet and mirror for each chair.
123-27 (4) One (1) lavatory in back of each two (2) chairs.
124-1 (5) A liquid sterilizer for each chair.
124-2 (6) An adequate number of latherizers, vibrators, and
124-3 hair dryers for the use of students.
124-4 (7) Adequate lighting of all rooms.
124-5 (8) At least twenty (20) classroom chairs, a
124-6 blackboard, anatomical charts of the head, neck and face, and one
124-7 (1) barber chair in the class theory room.
124-8 (9) A library and library facilities available to
124-9 students, containing a medical dictionary and a standard work on
124-10 the human anatomy.
124-11 (10) Adequate drinking fountain facilities, but at
124-12 least one (1) to each floor.
124-13 (11) Adequate toilet facilities for the students.
124-14 (12) Adequate fire-fighting equipment to be maintained
124-15 in case of emergency.
124-16 (h) Anything to the contrary in this Act notwithstanding,
124-17 each such school shall place a sign on the front outside portion of
124-18 its building in a prominent place. Such sign shall read "BARBER
124-19 SCHOOL--STUDENT BARBERS", and shall be a minimum size of ten-inch
124-20 block letters. Printed signs containing the foregoing information
124-21 shall be prominently displayed upon each inside wall of the
124-22 establishment.
124-23 (i) A minimum of five (5) hours a week must be devoted to
124-24 the instruction of theory in the classroom, with Saturdays devoted
124-25 exclusively to practical work over the chair. If classes are
124-26 conducted five (5) days a week, one (1) hour each day must be
124-27 devoted to instruction in theory. If classes are conducted four
125-1 (4) days a week, one (1) hour and fifteen (15) minutes each day
125-2 must be devoted to instruction in theory. An attendance record
125-3 book must be maintained by the school showing a record of the
125-4 students' daily attendance. These records are subject to
125-5 inspection at any and all times by the Board.
125-6 (j) No barber school or college which issues "Class A"
125-7 certificates shall be approved by the Board unless it is under the
125-8 direct supervision and control of a barber who holds a current
125-9 registered "Class A" certificate to practice barbering under the
125-10 Texas Barber Law, and who can show evidence of at least five (5)
125-11 years experience as a practicing barber. Each school shall have at
125-12 least one (1) teacher who has a teacher's certificate issued by the
125-13 Board upon examination and who is capable and qualified to teach
125-14 the curriculum outlined herein to the students of such school. All
125-15 such teachers are required to obtain a teacher's certificate from
125-16 the Board and, in addition to requirements set forth by the Board,
125-17 must meet the following requirements:
125-18 (1) Demonstrate their ability to teach the said
125-19 curriculum outlined herein through a written and practical test to
125-20 be given by the Board.
125-21 (2) Hold a current certificate as a registered "Class
125-22 A" barber under this law.
125-23 (3) Demonstrate to the Board that such applicant is
125-24 qualified to teach and instruct, to be determined at the discretion
125-25 of the Board, and show evidence that the applicant has had at least
125-26 six (6) months experience as a teacher in an approved school or
125-27 college in Texas or in another state approved by the Board, or have
126-1 completed 1,000 hours of instruction in a postgraduate course as a
126-2 student teacher in an approved barber school or college in Texas.
126-3 (k) A licensed barber who presents evidence satisfactory to
126-4 the Board of at least five (5) years' experience as a practicing
126-5 barber in a barber shop operating under a permit issued by the
126-6 Board, with not less than two (2) years' experience occurring in
126-7 the period immediately before application, is also entitled to
126-8 apply to take the examination for a teacher's certificate.
126-9 Applicants desiring an examination for a teacher's certificate
126-10 shall make an application to the Board and accompany same with an
126-11 examination fee in an amount established by the Board <not to
126-12 exceed $100>. A new application and fee must be presented for each
126-13 examination taken by the applicant and fees paid are not
126-14 refundable. The application must state the education and
126-15 experience level of the applicant in all courses or programs that
126-16 the applicant will teach or instruct. The Board shall review an
126-17 application for competency, consistency, and the overall quality of
126-18 the applicant. A teacher's certificate shall be issued upon
126-19 satisfactory completion of the examination and payment of a
126-20 certificate fee in an amount established by the Board <not to
126-21 exceed $100 if the applicant fulfills the requirements during the
126-22 period from November 1 of an odd-numbered year and extending
126-23 through October 31 of the following even-numbered year or not to
126-24 exceed $50 if the applicant fulfills the requirements during the
126-25 period from November 1 of an even-numbered year and extending
126-26 through October 31 of the following odd-numbered year>. Teacher's
126-27 certificates shall be renewed biennially on or before November 1st
127-1 of odd-numbered years upon the payment of a renewal fee in an
127-2 amount established by the Board <not to exceed $100>.
127-3 (l) In addition to a minimum of one (1) teacher required in
127-4 Subsection (j)(3) of this Section, each barber school or college
127-5 which issues "Class A" certificates shall maintain at least one (1)
127-6 qualified instructor, holding a registered "Class A" certificate,
127-7 for each twenty (20) students or any fraction thereof for
127-8 instruction in practical work; provided, however, that a teacher
127-9 can also serve as an instructor in practical work in addition to
127-10 his position as a theory teacher. A barber school or college may
127-11 not enroll more than one (1) student teacher for each licensed
127-12 teacher who teaches at the school or college. A student teacher
127-13 must concentrate on teaching skills and may not be booked with
127-14 customers. Violation of this requirement constitutes a ground for
127-15 the revocation of the person's student teacher barber license.
127-16 (m) No barber school or college shall be issued a permit to
127-17 operate under the provisions of this Section until it has first
127-18 furnished the following evidence to the Board:
127-19 (1) A detailed drawing and chart of the proposed
127-20 physical layout of such school, showing the departments, floor
127-21 space, equipment, lights and outlets.
127-22 (2) Photographs of the proposed site for such school
127-23 including the interior and exterior of the building, rooms and
127-24 departments.
127-25 (3) A detailed copy of the training program.
127-26 (4) A copy of the school catalog and promotional
127-27 literature.
128-1 (5) A copy of the building lease or proposed building
128-2 lease where the building is not owned by the school or college.
128-3 (6) A sworn statement showing the true ownership of
128-4 the school or college.
128-5 (7) A permit fee in an amount established by the Board
128-6 <not to exceed $1,000>.
128-7 (8) A statement of any final convictions of the
128-8 owners, school directors, recruiters, instructional faculty, or
128-9 other selected personnel of the barber school or college as
128-10 determined by the Board. The Board may obtain criminal history
128-11 records of school directors or instructional faculty from any law
128-12 enforcement agency, including the United States Department of
128-13 Justice, the Department of Public Safety of the State of Texas, the
128-14 Texas Department of Criminal Justice, or the police department of a
128-15 municipality.
128-16 (n) A barber school or college shall post on the premises of
128-17 the school at a prominent and conspicuous location the name,
128-18 mailing address, and telephone number of the Board for the purpose
128-19 of directing complaints to the Board.
128-20 (o) <(n)> No such school or college shall be operated and no
128-21 students shall be solicited or enrolled by it until the Board shall
128-22 determine by inspection that the school has been set up and
128-23 established in accordance with this Section and Section 9A of this
128-24 Act and the proposal submitted to the Board and approved by it
128-25 prior to the issuance of a permit. A barber school or college that
128-26 is not approved by the Board on initial inspection is subject to
128-27 reinspection by the Board. For each reinspection, the Board shall
129-1 charge a reinspection fee set by the Board <in an amount not to
129-2 exceed $500>.
129-3 (p) <(o)> Any such school or college must obtain renewal of
129-4 its permit by September 1st each year by the payment of an annual
129-5 renewal fee in an amount established by the Board <not to exceed
129-6 $300>.
129-7 (q) <(p)> If a barber school or college changes ownership,
129-8 the Board shall be notified of the transfer not later than the 10th
129-9 day before the date on which the change becomes effective.
129-10 (r) <(q)> Any school or college desiring to change the
129-11 location of such school or college must first obtain approval by
129-12 the Board by showing that the proposed location meets the
129-13 requirements of this Section.
129-14 (s) <(r)> If said Board refuses to issue a permit to any
129-15 such school or college, such school or college may by written
129-16 request demand the reasons for said refusal and if said school or
129-17 college shall thereupon meet said requirements and makes a showing
129-18 that the requirements of this law have been complied with, then if
129-19 said Board refuses to issue said permit, a suit may be instituted
129-20 by such school or college in any of the District Courts of Travis
129-21 County, Texas, to require said Board to issue such permit. Any
129-22 such suit must be filed within twenty (20) days after the final
129-23 order of said Board refusing to issue such permit is entered,
129-24 provided registered notice is mailed or it is otherwise shown that
129-25 said school or college has notice within ten (10) days from the
129-26 entering or making of said order.
129-27 (t) <(s)> In the event such school or college after a permit
130-1 is issued to it violates any of the requirements of this law,
130-2 either directly or indirectly, then said Board shall suspend or
130-3 revoke the permit of any such school or college. Before suspending
130-4 or revoking any such permit, said Board must give such school or
130-5 college a hearing, notice of which hearing shall be delivered to
130-6 such school or college at least twenty (20) days prior to the date
130-7 of said hearing. If said Board suspends or revokes said permit at
130-8 said hearing, then such school or college may file suit to prevent
130-9 the same or to appeal from said order. Any and all suits filed
130-10 hereunder shall be filed within twenty (20) days from the date of
130-11 the order of said Board in any of the District Courts of Travis
130-12 County, Texas, and not elsewhere, and the order shall not become
130-13 effective until said twenty (20) days has expired.
130-14 (u) <(t)> The Attorney General may institute any injunction
130-15 proceedings or such other proceeding as to enforce the provisions
130-16 of this Act, and to enjoin any barber or school or college from
130-17 operating without having complied with the provisions hereof, and
130-18 each shall forfeit to the State of Texas the sum of Twenty-five
130-19 Dollars ($25) per day as a penalty for each day's violation, to be
130-20 recovered in a suit by the Attorney General. An action for an
130-21 injunction under this section must be brought in Travis County.
130-22 (v) <(u) A holder of a barber school or college permit shall
130-23 furnish each prospective student with:>
130-24 <(1) a copy of the course outline;>
130-25 <(2) a schedule of the tuition and other fees
130-26 assessed;>
130-27 <(3) the refund policy imposed under Section 9A of
131-1 this Act;>
131-2 <(4) regulations relating to absences;>
131-3 <(5) the grading policy;>
131-4 <(6) the rules of operation and conduct;>
131-5 <(7) regulations relating to incomplete grades;>
131-6 <(8) the name, mailing address, and telephone number
131-7 of the board for the purpose of directing complaints to the board;
131-8 and>
131-9 <(9) the current rates of job placement and employment
131-10 of students who complete a course of training.>
131-11 <(v) A holder of a barber school or college permit shall
131-12 publish in its catalogue and enrollment contract a description of
131-13 the refund policy required under Section 9A of this Act.>
131-14 <(w) If the board has reasonable cause to believe that a
131-15 barber school or college has violated this Act or a rule adopted
131-16 under this Act, the board may order a peer review of the school or
131-17 college or suspend the admission of students to the school or
131-18 college. A peer review ordered under this subsection shall be
131-19 conducted by a peer review team composed of knowledgeable persons
131-20 selected by the board. The board shall attempt to provide a
131-21 balance on each team between members assigned to the team who are
131-22 from this state and those who are from other states. The team
131-23 shall provide the board with an objective assessment of the content
131-24 of the curriculum and its application. The school or college under
131-25 review shall pay the costs of the peer review.>
131-26 <(x)> A barber school or college must submit to the board
131-27 for approval the course lengths and curriculum content for each
132-1 course offered by the school or college. The course lengths and
132-2 content may not be implemented unless the board approves them. The
132-3 course lengths and content shall reasonably ensure that students
132-4 develop the job skills and knowledge necessary for employment. The
132-5 board shall require a school or college to account fully for all
132-6 curriculum contents and course lengths before issuing or renewing a
132-7 permit, and a school or college that is manipulating course lengths
132-8 below or above industry standards shall be placed on probation
132-9 until justification for the deviation is proved or the practice
132-10 ceases.
132-11 (w) <(y)> A barber school or college that violates this Act
132-12 or a rule adopted under this Act is liable for a civil penalty in
132-13 addition to any injunctive relief or other remedy provided by law.
132-14 The civil penalty may not exceed $1,000 a day for each violation.
132-15 The Attorney General, at the request of the board, may bring a
132-16 civil action to collect a civil penalty under this subsection.
132-17 Civil penalties recovered in a suit brought under this subsection
132-18 shall be deposited in the state treasury to the credit of the
132-19 General Revenue Fund.
132-20 (x) The board may deny, suspend, or revoke a barber school
132-21 or college permit or place the holder of the permit on probation if
132-22 the permit holder, the school, or a representative of the school
132-23 gives a prospective student information relating to the school that
132-24 is false, fraudulent, deceptive, substantially inaccurate, or
132-25 misleading.
132-26 SECTION 4.04. Section 9A, Chapter 65, Acts of the 41st
132-27 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
133-1 Texas Civil Statutes), is amended by amending Subsections (b)-(g)
133-2 and adding Subsections (h)-(j) to read as follows:
133-3 (b) Each holder of a barber school or college permit must
133-4 maintain a refund policy for the refund of the unused part of
133-5 tuition, fees, and other charges assessed a student if the student,
133-6 at the expiration of the cancellation period established under
133-7 Subsection (a) of this section, terminates enrollment or is
133-8 terminated by the school or college, as provided by this subsection
133-9 <fails to enter the course of training, withdraws from the course
133-10 of training, or is terminated from the course of training before
133-11 completion of the course>. The refund policy must provide that:
133-12 (1) a refund is based on the period of the student's
133-13 enrollment, computed on the basis of course time expressed in clock
133-14 hours;
133-15 (2) the effective date of the termination for payment
133-16 of a refund <refund purposes> is the earliest of:
133-17 (A) the last date of attendance, if the student
133-18 is terminated for failure to satisfy an attendance, grade, or work
133-19 requirement <by the school or college>;
133-20 (B) the date of receipt by the permit holder of
133-21 written notice of withdrawal by the student; <or>
133-22 (C) the 10th consecutive <10> school day the
133-23 student has been absent, unless any of the absences are excused by
133-24 the school or college <days after the last date of attendance>; or
133-25 (D) the date the student fails to return, as
133-26 scheduled, from a leave of absence; and
133-27 (3) if tuition is collected before beginning the
134-1 course of training and if, after the expiration of the cancellation
134-2 period, the student does not begin the course of training, the
134-3 school or college may retain not more than $100.
134-4 (c) If a student who begins a course of training that is
134-5 scheduled to run not more than 12 months withdraws from the course
134-6 or is terminated from the course by the school or college, the
134-7 barber school or college may retain $100 in tuition and fees paid
134-8 by that student and is not obligated to refund any additional
134-9 outstanding tuition if the student withdraws or is terminated
134-10 during the last quarter <50 percent> of the course. If the student
134-11 withdraws or is terminated before the last quarter <50 percent> of
134-12 the course begins, the school or college shall refund the following
134-13 percentages of any outstanding tuition:
134-14 (1) for withdrawal or termination occurring during the
134-15 first week or first one-tenth of the course, whichever is less, 90
134-16 percent;
134-17 (2) for withdrawal or termination occurring after the
134-18 first week or first one-tenth of the course, whichever is less, but
134-19 within the first three weeks of the course, 80 percent;
134-20 (3) for withdrawal or termination occurring after the
134-21 first three weeks of the course but not later than the last date of
134-22 the first 25 percent of the course, 75 percent; <and>
134-23 (4) for withdrawal or termination occurring during
134-24 <not later than the completion of> the second 25 percent of the
134-25 course, 50 percent;
134-26 (5) for withdrawal or termination occurring during the
134-27 third 25 percent of the course, 10 percent; and
135-1 (6) for withdrawal or termination occurring after 50
135-2 percent of the course has been completed, the school must allow the
135-3 student to reenter at any time during the 48-month period following
135-4 the date of withdrawal or termination at no additional charge,
135-5 provided the full agreed-on tuition has been tendered.
135-6 (d) <For students withdrawing or terminating after 50
135-7 percent of the course has been completed, the school must allow
135-8 that student to reenter at any time during the 48-month period
135-9 following the date of withdrawal or termination.>
135-10 <(e)> A refund owed under this section must be paid not
135-11 later than the 60th <30th> day after the date on which the student
135-12 becomes eligible for the refund, as determined under Subsection (b)
135-13 of this section.
135-14 (e) <(f)> If a refund is not made within the period required
135-15 by this section, the school or college shall pay, as a penalty,
135-16 interest on the refund for the interval beginning with the first
135-17 day following the expiration of the refund period and ending with
135-18 the day immediately preceding the date the refund is made. If the
135-19 refund is made to a lending institution, the interest shall also be
135-20 paid to that institution and applied against the student's loan.
135-21 The board <commissioner of education> annually shall establish the
135-22 level of interest at a level sufficient to provide a deterrent to
135-23 the retention of student funds. The board may exempt a school or
135-24 college from the payment of the interest if the school or college
135-25 makes a good faith effort to refund the tuition but is unable to
135-26 locate the student. The school or college shall provide to the
135-27 agency on request documentation of the effort to locate the
136-1 student.
136-2 (f) <(g)> A barber school or college shall record a grade of
136-3 "incomplete" for a student who withdraws but is not entitled to a
136-4 refund under Subsection (c) of this section if the student requests
136-5 the grade at the time the student withdraws and the student
136-6 withdraws for an appropriate reason unrelated to the student's
136-7 academic status. A student who receives a grade of incomplete may
136-8 reenroll in the program during the 12-month <48-month> period
136-9 following the date the student withdraws and may complete those
136-10 incomplete subjects without payment of additional tuition.
136-11 (g) If a course of instruction is discontinued by the school
136-12 and this prevents the student from completing the course, all
136-13 tuition and fees paid are due and refundable.
136-14 (h) Refunds under this section shall be applied:
136-15 (1) first, to the repayment of student loans;
136-16 (2) second, to the repayment of other government
136-17 loans;
136-18 (3) third, to the repayment of other financial loans;
136-19 and
136-20 (4) last, to the student's personal tuitional
136-21 expenditures.
136-22 (i) Not later than the 30th day after the date on which a
136-23 refund is due to a student who has received a student loan, the
136-24 school or college shall notify the guaranty agency and the lender
136-25 of the required refund and any refund previously made. The
136-26 guaranty agency and the lender shall notify the student and the
136-27 school or college if the student's loan has been transferred to
137-1 another holder.
137-2 (j) The failure of a school or college or a person to pay a
137-3 tuition refund as required by this section is a deceptive trade
137-4 practice under Subchapter E, Chapter 17, Business & Commerce Code.
137-5 SECTION 4.05. Chapter 65, Acts of the 41st Legislature, 1st
137-6 Called Session, 1929 (Article 8407a, Vernon's Texas Civil
137-7 Statutes), is amended by adding Sections 9B-9S to read as follows:
137-8 Sec. 9B. Before the board may approve the application of a
137-9 person for a barber school or college permit, the board must find,
137-10 on investigation at the premises of the school, that the school
137-11 meets the following criteria:
137-12 (1) the courses, curriculum, and instruction are of a
137-13 quality, content, and length as may reasonably and adequately
137-14 achieve the stated objective for which the courses, curriculum, or
137-15 instruction are offered;
137-16 (2) there is in the school adequate space, equipment,
137-17 instructional material, and instructor personnel to provide
137-18 training of good quality;
137-19 (3) educational and experience qualifications of
137-20 directors, administrators, and instructors are adequate;
137-21 (4) the school maintains a written record of the
137-22 previous education and training of the applicant student and
137-23 clearly indicates that appropriate credit has been given by the
137-24 school for previous education and training, with the new training
137-25 period shortened where warranted through use of appropriate skills
137-26 or achievement tests and the student notified;
137-27 (5) a copy of the course outline; schedule of tuition,
138-1 fees, refund policy, and other charges; regulations pertaining to
138-2 absence, grading policy, and rules of operation and conduct;
138-3 regulations pertaining to incomplete grades; the name, mailing
138-4 address, and telephone number of the board for the purpose of
138-5 directing complaints to the agency; the current rates of job
138-6 placement and employment of students issued a certificate of
138-7 completion; and notification of the availability of the cost
138-8 comparison information prepared under Section 9H of this Act will
138-9 be furnished to the student in the school catalog or comparable
138-10 written documents before enrollment;
138-11 (6) on completion of training, the student is given a
138-12 certificate by the school indicating the course and that training
138-13 was satisfactorily completed;
138-14 (7) adequate records as required by the board are kept
138-15 to show attendance and progress or grades, and satisfactory
138-16 standards relating to attendance, progress, and conduct are
138-17 enforced;
138-18 (8) the school complies with all local, city, county,
138-19 municipal, state, and federal regulations; the board may require
138-20 evidence of compliance as is necessary;
138-21 (9) the school is financially sound and capable of
138-22 fulfilling its commitments for training;
138-23 (10) the school's administrators, directors, owners,
138-24 and instructors are of good reputation and character;
138-25 (11) the school has, maintains, and publishes in its
138-26 catalog and enrollment contract the proper policy for the refund of
138-27 the unused portion of tuition, fees, and other charges in the event
139-1 the student enrolled by the school fails to take the course or
139-2 withdraws or is discontinued from the course at any time before
139-3 completion;
139-4 (12) the school does not use erroneous or misleading
139-5 advertising, either by actual statement, omission, or intimation as
139-6 determined by the board;
139-7 (13) additional criteria as may be required by the
139-8 commission;
139-9 (14) the school does not use a name like or similar to
139-10 an existing tax-supported school in the same area;
139-11 (15) the school furnishes to the board the current
139-12 rates of students who receive a certificate of completion and of
139-13 job placement and employment of students issued a certificate of
139-14 completion;
139-15 (16) the school furnishes to the board for approval or
139-16 disapproval student admission requirements for each course or
139-17 program offered by the school;
139-18 (17) the school furnishes to the board for approval or
139-19 disapproval the course lengths and curriculum content for each
139-20 course offered by the school; and
139-21 (18) the school does not owe a civil penalty under
139-22 Section 9 of this Act.
139-23 Sec. 9C. (a) A barber school or college must submit to the
139-24 board for approval, on an annual basis, a school catalog or
139-25 comparable written documents detailing the consumer information
139-26 that must be given to a prospective student before enrollment. The
139-27 school catalog or documents must include:
140-1 (1) the name and address of the school and the
140-2 school's governing body and officials;
140-3 (2) a calendar of the school year;
140-4 (3) school policies on enrollment;
140-5 (4) rules relating to absences;
140-6 (5) the school grading policy;
140-7 (6) the school's hours of operation and rules of
140-8 conduct;
140-9 (7) a schedule of the tuition and other fees assessed;
140-10 (8) the school's cancellation and refund policy;
140-11 (9) a general description of the course or courses
140-12 offered;
140-13 (10) information on entrance testing and remedial
140-14 development plans;
140-15 (11) state licensing requirements for courses intended
140-16 to result in licensing of the student;
140-17 (12) starting range and average reported salaries for
140-18 the prior year's graduates in occupations for which courses are
140-19 offered, if the information is available;
140-20 (13) the current rates of job placement and employment
140-21 of students who complete a course of training;
140-22 (14) the school policy on credit for previous
140-23 education and training;
140-24 (15) school regulations relating to incomplete grades;
140-25 (16) information on the transferability of credits
140-26 earned;
140-27 (17) the name, mailing address, and telephone number
141-1 of the board for the purpose of directing complaints to the board
141-2 and the mechanism and procedures for resolving grievances submitted
141-3 to the board;
141-4 (18) a statement that the board has information on
141-5 cost comparison with similar schools;
141-6 (19) market and job availability information, if
141-7 available;
141-8 (20) the names of the members of any advisory council
141-9 of the school and the company for which they work; and
141-10 (21) other information required by the executive
141-11 director or board if reasonable notice has been given by the board
141-12 to the school of the additional requirements.
141-13 (b) A barber school or college may not accept a signed
141-14 student enrollment contract or accept a student into any school
141-15 program until at least 24 hours after the student has received the
141-16 catalog or comparable written documents required under this
141-17 section.
141-18 (c) A student must sign a receipt stating that:
141-19 (1) the catalog was received by the student before any
141-20 commitment made by the student to the school or by the school to
141-21 the student;
141-22 (2) the student was given an opportunity to discuss
141-23 the catalog with a representative of the school; and
141-24 (3) the student understands the contents and
141-25 implications of the catalog.
141-26 (d) The receipt required by Subsection (c) of this section
141-27 must be placed in the student's permanent school file and a copy of
142-1 the receipt must be delivered to the student.
142-2 Sec. 9D. (a) A barber school or college must submit to the
142-3 board for approval the course lengths and curriculum content for
142-4 each course offered by the school or college. The course lengths
142-5 and content may not be implemented unless the board approves them.
142-6 The course lengths and content shall reasonably ensure that
142-7 students develop the job skills and knowledge necessary for
142-8 employment.
142-9 (b) The board shall require a school or college to fully
142-10 account for all curriculum contents and course lengths before
142-11 issuing or renewing a permit and a school or college that is
142-12 offering course lengths below or above industry standards may be
142-13 issued a conditional permit to operate.
142-14 Sec. 9E. (a) The board shall set and enforce minimum
142-15 standards for completion and employment rates of courses, based on
142-16 collected data.
142-17 (b) In determining whether to renew a barber school or
142-18 college permit, the board shall consider the completion, placement,
142-19 and employment rates of students of the courses.
142-20 (c) Before a school or college may begin offering a new
142-21 course of study for students the school or college must show the
142-22 board the opportunity for jobs for graduates of the course and the
142-23 possibility of placement or employment.
142-24 (d) Before the board issues or renews a barber school or
142-25 college permit involving a school or college that offers or
142-26 advertises a placement service, the board may require the school or
142-27 college to file a certified copy of the school's or college's
143-1 placement records for the previous year.
143-2 Sec. 9F. (a) The board shall conduct on-site inspections of
143-3 a barber school or college to determine the normal operating
143-4 conditions of the school or college.
143-5 (b) The inspection required by Subsection (a) of this
143-6 section shall be unannounced.
143-7 (c) The executive director or a designee of the executive
143-8 director may inspect such things as the instructional books and
143-9 records, classrooms, dormitories, tools, equipment, and classes of
143-10 a barber school or college or an applicant for a permit for a
143-11 school or college at any reasonable time.
143-12 Sec. 9G. (a) At the beginning of each fiscal year the board
143-13 shall collect a fee from the school or college for deposit in a
143-14 special account in the general revenue fund of the state treasury
143-15 called the barber school or college account and to be administered
143-16 by the board.
143-17 (b) The amount of the fee is determined by applying a
143-18 percentage established by the board, based on the recommendation of
143-19 the school accounts advisory board, to each school's or college's
143-20 annual gross tuition, with consideration given to the school's
143-21 size, expense of regulation, potential for teachouts, tuition and
143-22 fees refund and recovery exposure, and loan default rates (with
143-23 schools with high default rates paying higher fees), and any other
143-24 relevant factors. The account shall be used for:
143-25 (1) the administration of this Act;
143-26 (2) the cost of teachouts as provided by this Act;
143-27 (3) the cost of tuition and fees recovery and the cost
144-1 of student refunds that a school has not made; and
144-2 (4) the cost of storing student records that have
144-3 become property of the state under this Act.
144-4 (c) The board may grant an exemption from payment into the
144-5 account to a small school, as determined by the board, or to a
144-6 school that does not use guaranteed student loans for tuition
144-7 revenue. A school exempt as provided for by this subsection must
144-8 pay the necessary fees for regulation, as determined by the board,
144-9 and provide a bond, certificate of deposit, or comparable security,
144-10 as determined and approved by the board, that is sufficient to
144-11 cover the cost of the school's or college's record storage costs,
144-12 teachout, and tuition and fees refund and recovery exposure based
144-13 on the evidence the school or college submits proving its projected
144-14 maximum total unearned tuition during the period of the permit to
144-15 operate.
144-16 (d) The security shall be provided by the school or college
144-17 for the period during which the permit is issued, and the
144-18 obligation of the bond or other security must be that neither this
144-19 Act nor any rule adopted under this Act is violated by the school
144-20 or college or any of its officers, agents, or employees.
144-21 (e) The bond, certificate of deposit, or comparable security
144-22 must be issued by a company authorized to do business in the state,
144-23 conditioned that the parties to the transaction shall pay all
144-24 damages or expenses that the state or any governmental subdivision
144-25 or any student or potential student sustains resulting from a
144-26 violation. The bond, certificate of deposit, or comparable
144-27 security shall be to the state to be used only for payment for the
145-1 school's or college's teachout and tuition and fees refund due to a
145-2 student or potential student. The security shall be filed with the
145-3 board and must be in a form approved by the board.
145-4 (f) Schools domiciled, or having their principal place of
145-5 business, outside the state, that engage representatives to
145-6 canvass, solicit, or contract with any person in the state are
145-7 subject to the fee and security requirements of Subsection (c) of
145-8 this section.
145-9 (g) The board shall refer all expenses incurred by the
145-10 school or college account in administering Subsections (b)(2) and
145-11 (3) of this section to the attorney general's office for
145-12 collection. The amounts collected shall be deposited to the
145-13 account. Attorney's fees and court costs will be appropriated to
145-14 the attorney general's office.
145-15 (h) Interest the account earns shall be reinvested in the
145-16 account. The state treasurer shall invest the account in the same
145-17 manner as other state funds. Sufficient funds from the account
145-18 shall be appropriated to the board for the purpose outlined in this
145-19 section. The board shall administer claims made against the
145-20 account.
145-21 (i) If a school or college closes, the board shall attempt
145-22 to arrange for students of the closed school or college to attend
145-23 another barber school or college. The board shall adopt rules
145-24 specifying the circumstances under which a school is considered
145-25 closed.
145-26 (j) The expense incurred by a barber school or college in
145-27 providing training that is directly related to educating a student
146-1 who was enrolled in a closed school or college and placed in the
146-2 school or college under this section, including the applicable
146-3 tuition for the period of time for which the student has paid
146-4 tuition, shall be paid in accordance with rules of the board.
146-5 (k) The board shall make reasonable attempts to ensure that
146-6 schools under the board's jurisdiction, including closed schools,
146-7 fulfill the refund obligation as provided by Section 9A of this
146-8 Act. If a school refuses to fulfill the school's obligation or the
146-9 school's bond is insufficient to pay the cost of the teachout and
146-10 refund expenses, the teachout or the refund may be paid from the
146-11 barber school or college account except that no school owned,
146-12 either in whole or in part, by a person or corporate entity who was
146-13 an owner, in whole or in part, of a previously closed school shall
146-14 be permitted to receive compensation for a teachout under this
146-15 section.
146-16 (l) If a student cannot be placed in another school or
146-17 college, the student's tuition and fees shall be refunded under
146-18 Section 9A(g) of this Act.
146-19 (m) If a student does not accept a place that is available
146-20 and reasonable in another school or college, the student's tuition
146-21 and fees shall be refunded under the refund policy maintained by
146-22 the closing school under Sections 9A(b) and (c) of this Act.
146-23 (n) Attorney's fees, court costs, or damages may not be paid
146-24 from the barber school or college account.
146-25 (o) The board by rule shall establish and assess reasonable
146-26 and necessary fees to all persons and entities licensed under this
146-27 Act to be used for the regulation of those persons and entities
147-1 licensed under this Act and to supplement the administration and
147-2 purposes outlined by this Act.
147-3 (p) The board may permit payment of any fee authorized under
147-4 this section that exceeds $1,000 to be paid by installment. The
147-5 board shall provide for appropriate interest charges and late
147-6 penalties in addition to any other remedy that is provided for by
147-7 law for the late payment of a fee installment authorized under this
147-8 section. The board may assess a reasonable service charge to be
147-9 paid by a school that pays a fee by installment in an amount not to
147-10 exceed an annual rate of 10 percent of the fee that is to be paid
147-11 by installment.
147-12 Sec. 9H. (a) The board shall prepare a comparison of the
147-13 cost to a student of courses of instruction or training programs at
147-14 all barber schools or colleges maintained by persons who hold
147-15 barber school or college permits issued by the board.
147-16 (b) The cost comparison must include for each school or
147-17 college a description of:
147-18 (1) average class size;
147-19 (2) facilities and equipment;
147-20 (3) employment and placement rates;
147-21 (4) length of program; and
147-22 (5) faculty qualifications.
147-23 Sec. 9I. (a) A barber school or college must disclose to
147-24 all prospective students state licensing requirements to practice
147-25 the occupation for which the student is training.
147-26 (b) A school or college must disclose to all prospective
147-27 students the performance of graduates from the school or college on
148-1 the licensing examination of the board if that information is
148-2 available.
148-3 Sec. 9J. (a) The board shall approve entrance requirements,
148-4 including minimum skills testing, for students who may be accepted
148-5 for a course of study in a barber school or college. The
148-6 requirements must be specific and provide that students who are
148-7 allowed to enter a course will have a reasonable chance of
148-8 completing the program.
148-9 (b) The school or college shall administer a standardized
148-10 test to students with a high school diploma or high school
148-11 equivalency certificate entering the school, if testing for minimum
148-12 skill competency is determined by the board as appropriate and
148-13 necessary to determine if remediation is needed. The test must be
148-14 administered before enrollment and must be nationally recognized as
148-15 appropriate and effective for minimum skills testing and high
148-16 school equivalency. If the test reveals the necessity for
148-17 remediation, the school or college must implement a plan to
148-18 encourage the student to improve in basic general education skills.
148-19 (c) A student must achieve a successful score on the test
148-20 required by this section before the student is obligated for
148-21 tuition and fees for the vocational portion of the school's
148-22 program.
148-23 (d) The school or college may, in accordance with federal
148-24 statutory provisions affecting guaranteed student loan programs, on
148-25 a case-by-case basis, refuse to provide the certification
148-26 statements required for guaranteed student loan eligibility, or
148-27 reduce the determination of need for a guaranteed student loan if
149-1 the school or college determines that the student's expenses to be
149-2 covered by the loan and the estimated cost of attendance, can be
149-3 met more appropriately by the school or college, directly by the
149-4 student, or by other sources.
149-5 Sec. 9K. (a) An applicant without a high school diploma or
149-6 high school equivalency certificate must pass an entrance test
149-7 approved by the board and be considered to have the ability to
149-8 benefit from the school or college before the school or college may
149-9 enroll the student.
149-10 (b) A school or college that admits a student who does not
149-11 have a high school diploma or high school equivalency certificate
149-12 must develop and implement a plan for counseling the student on
149-13 curriculum, student aid, employment opportunities, and the
149-14 remediation necessary for the student to obtain a high school
149-15 equivalency certificate and improve in basic general education
149-16 skills.
149-17 (c) The school or college must assist the student in
149-18 obtaining the remediation necessary for the student to pass a
149-19 standardized minimum skills equivalency test, approved by the
149-20 board, and the student must pass the test before entering the final
149-21 quarter of the course.
149-22 Sec. 9L. (a) The enrollment contract of a barber school or
149-23 college must contain:
149-24 (1) a disclosure that the contract is a legally
149-25 binding instrument on written acceptance of the student by the
149-26 school or college, unless canceled as provided by law;
149-27 (2) the school's or college's cancellation and refund
150-1 policy;
150-2 (3) the method of cancellation of the contract, the
150-3 effective date of any cancellation, and the name and address to
150-4 which the notice of cancellation should be sent or delivered;
150-5 (4) the total cost of the course including tuition and
150-6 all other charges;
150-7 (5) a notification that the fair market value of
150-8 equipment or supplies furnished to the student that the student
150-9 fails to return in a condition suitable for resale not later than
150-10 the 10th business day after the date of cancellation may be
150-11 retained by the school or college and deducted from any refund of
150-12 the student;
150-13 (6) a statement that if a student's enrollment is
150-14 canceled for any reason, the school or college will notify an
150-15 agency known to the school or college to be providing financial aid
150-16 to the student of the cancellation not later than the 30th day
150-17 after the date of cancellation;
150-18 (7) the name and description of the courses, including
150-19 the number of hours of classroom instruction or home study lessons;
150-20 and
150-21 (8) the Federal Trade Commission statement for a
150-22 holder in due course.
150-23 (b) An enrollment contract may not contain a wage assignment
150-24 provision or a confession of judgment clause.
150-25 (c) Immediately after a prospective student has signed an
150-26 enrollment contract, the school or college shall give the
150-27 prospective student a copy of the contract, and a copy shall be
151-1 placed in the student's permanent school or college file.
151-2 (d) A promissory note signed by a student must include the
151-3 Federal Trade Commission statement required for a holder in due
151-4 course.
151-5 Sec. 9M. (a) A school or college shall conduct loan
151-6 counseling entrance interviews with each prospective student
151-7 seeking a loan during the enrollment process. A student borrower
151-8 shall be counseled before the initial disbursement of loan
151-9 proceeds, shortly before the student completes one-half of the
151-10 course, and before the student is issued a certificate of
151-11 completion.
151-12 (b) The school's or college's financial aid officer or
151-13 counselor shall conduct the interviews required by Subsection (a)
151-14 of this section. The interview must include a discussion of:
151-15 (1) the rights and responsibilities of the student as
151-16 a borrower;
151-17 (2) what a loan is and the importance of repayment;
151-18 (3) the total cost of the program in which the student
151-19 will be enrolled;
151-20 (4) the availability of other forms of financial aid,
151-21 grants, and part-time work;
151-22 (5) the starting range and average reported salaries
151-23 of those in the occupation for which the student will be trained,
151-24 if available; and
151-25 (6) job placement services provided by the school or
151-26 college and the employment rate of persons who attended the school
151-27 or college and were enrolled in the program in which the student is
152-1 enrolled.
152-2 (c) A school approved to accept state or federal educational
152-3 loans or grants shall adopt, in addition to the provisions in this
152-4 section, measures to reduce defaults and improve borrowers
152-5 understanding and respect for the loan repayment obligation as
152-6 provided in 34 C.F.R., Parts 668 and 682.
152-7 (d) The school or college must give a copy of the Texas
152-8 Guaranteed Student Loan Corporation's "Your Future" guide, or a
152-9 comparable document approved by the board, to a prospective student
152-10 at a time and in a manner that provides the student with sufficient
152-11 opportunity to read the guide or other document and discuss the
152-12 contents with the school's financial aid officer, if necessary for
152-13 understanding and clarity, before signing an enrollment contract
152-14 and before the school accepts the student in a course of study.
152-15 (e) The prospective student must sign a document stating
152-16 that the student:
152-17 (1) attended a loan counseling entrance interview; and
152-18 (2) received a copy of the "Your Future" guide or
152-19 comparable document in the time provided by Subsection (d) of this
152-20 section.
152-21 (f) A copy of the signed document required by Subsection (e)
152-22 of this section must be sent to the student, guarantor, and lender
152-23 and must be placed in the student's permanent school or college
152-24 file.
152-25 Sec. 9N. (a) A barber school or college shall maintain
152-26 permanent records for all students enrolled, as required by the
152-27 board.
153-1 (b) A school or college shall adopt a plan to preserve
153-2 permanent records and submit the plan to the board for approval.
153-3 The plan must:
153-4 (1) provide that at least one copy of the records will
153-5 be held in a secure depository; and
153-6 (2) designate an appropriate official to provide a
153-7 student with copies of records or transcripts on request.
153-8 (c) The school or college shall make the first copy of
153-9 records or transcripts at no charge to the student. The school or
153-10 college may make a reasonable charge to provide additional copies
153-11 of records, transcripts, or other student information.
153-12 (d) If a school or college closes, the records become the
153-13 property of the state.
153-14 Sec. 9O. (a) The board may not adopt rules that restrict
153-15 advertising by a barber school or college except to prohibit false,
153-16 misleading, or deceptive advertising practices. The rules may not
153-17 restrict:
153-18 (1) the use of an advertising medium;
153-19 (2) the size or duration of an advertisement; or
153-20 (3) advertisement under a trade name.
153-21 (b) A school or college, the representative of a school or
153-22 college, or a recruiter for the school or college may not advertise
153-23 or represent, in writing or orally, that a school or college is
153-24 approved or accredited by the state. Those entities or persons may
153-25 advertise that the school or college has been granted a permit by
153-26 the state.
153-27 (c) A school or college, representative of a school or
154-1 college, or recruiter of a school or college may not make or cause
154-2 to be made a statement or representation, written, oral, or visual,
154-3 offering or publicizing a course, program, or school or college, if
154-4 the school or college, representative, or recruiter knew or
154-5 reasonably should have known that the statement or representation
154-6 was false, fraudulent, deceptive, substantially inaccurate, or
154-7 misleading.
154-8 Sec. 9P. (a) A school or college may not reflect unearned
154-9 tuition as a current asset unless the amount shown in current
154-10 assets that reflects unearned tuition is offset by an equal amount
154-11 shown as a current liability. The school or college must meet one
154-12 of the following criteria in order to be determined as financially
154-13 sound and capable of fulfilling its commitments for training:
154-14 (1) current assets must bear a relationship to current
154-15 liabilities in a ratio of at least one-to-one;
154-16 (2) the equity of the owner of the school or college
154-17 must be in excess of $10,000,000; or
154-18 (3) the school or college must have posted, or set
154-19 aside in a dedicated escrow account, a bond, certificate of
154-20 deposit, irrevocable letter of credit, or comparable security,
154-21 acceptable to the board, each made payable to the State of Texas,
154-22 in an amount sufficient to cover the school's or college's record
154-23 storage costs, teachout, and tuition and fees refund and recovery
154-24 exposure based on the evidence the school or college submits
154-25 proving its projected maximum total unearned tuition during the
154-26 period of time covered by the evidence of indebtedness to the
154-27 State.
155-1 (b) The school or college must demonstrate to the
155-2 satisfaction of the board its financial soundness and ability to
155-3 fulfill its commitments for training.
155-4 Sec. 9Q. PROHIBITIONS. A person may not:
155-5 (1) operate a barber school or college without a
155-6 permit or assume ownership of an existing barber school or college
155-7 without obtaining a new permit;
155-8 (2) solicit prospective students for a barber school
155-9 or college without having a permit as required by this Act;
155-10 (3) accept contracts or enrollment applications from a
155-11 representative of a barber school or college who is not registered
155-12 as required by any board rule requiring registration;
155-13 (4) use advertising designed to mislead or deceive
155-14 prospective barber school or college students;
155-15 (5) fail to notify the board of the discontinuance of
155-16 the operation of any barber school or college not later than the
155-17 72nd hour after cessation of classes or make available accurate
155-18 records as required by this Act;
155-19 (6) fail to secure and file within 30 days any
155-20 increased bond required by this Act;
155-21 (7) negotiate any promissory instrument received as
155-22 payment of tuition for a barber school or college or other charge
155-23 before completion of 75 percent of the course, provided that before
155-24 that time, the instrument may be transferred by assignment to a
155-25 purchaser who is subject to any defense available against the
155-26 barber school or college named as payee;
155-27 (8) enroll a student in a barber school or college who
156-1 fails to satisfy entrance requirements; or
156-2 (9) violate any provision of this Act relating to a
156-3 barber school or college or a rule adopted under this Act relating
156-4 to a barber school or college.
156-5 Sec. 9R. ADMINISTRATIVE PENALTY. (a) The board may impose
156-6 an administrative penalty against a person who violates Section 9Q
156-7 of this Act.
156-8 (b) The penalty for a violation may be in an amount not to
156-9 exceed $10,000.
156-10 (c) The amount of the penalty shall be based on:
156-11 (1) the seriousness of the violation, including the
156-12 nature, circumstances, extent, and gravity of any prohibited acts;
156-13 (2) efforts to correct the violation; and
156-14 (3) any other matter that justice may require.
156-15 (d) An executive director who determines that a violation
156-16 has occurred may issue to the board a report that states the facts
156-17 on which the determination is based and the director's
156-18 recommendation on the imposition of a penalty, including a
156-19 recommendation on the amount of the penalty.
156-20 (e) Within 14 days after the date the report is issued, the
156-21 executive director shall give written notice of the report to the
156-22 person. The notice may be given by certified mail. The notice
156-23 must include a brief summary of the alleged violation and a
156-24 statement of the amount of the recommended penalty and must inform
156-25 the person that the person has a right to a hearing on the
156-26 occurrence of the violation, the amount of the penalty, or both the
156-27 occurrence of the violation and the amount of the penalty.
157-1 (f) Within 20 days after the date the person receives the
157-2 notice, the person in writing may accept the determination and
157-3 recommended penalty of the executive director or may make a written
157-4 request for a hearing on the occurrence of the violation, the
157-5 amount of the penalty, or both the occurrence of the violation and
157-6 the amount of the penalty.
157-7 (g) If the person accepts the determination and recommended
157-8 penalty of the executive director, the board by order shall approve
157-9 the determination and impose the recommended penalty.
157-10 (h) If the person requests a hearing or fails to respond
157-11 timely to the notice, the executive director shall set a hearing
157-12 and give notice of the hearing to the person. The hearing shall be
157-13 held by an administrative law judge of the State Office of
157-14 Administrative Hearings. The administrative law judge shall make
157-15 findings of fact and conclusions of law and promptly issue to the
157-16 board a proposal for a decision about the occurrence of the
157-17 violation and the amount of a proposed penalty. Based on the
157-18 findings of fact, conclusions of law, and proposal for a decision,
157-19 the board by order may find that a violation has occurred and
157-20 impose a penalty or may find that no violation occurred.
157-21 (i) The notice of the board's order given to the person
157-22 under the Administrative Procedure and Texas Register Act (Article
157-23 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
157-24 amendments must include a statement of the right of the person to
157-25 judicial review of the order.
157-26 (j) Within 30 days after the date the board's order is final
157-27 as provided by Section 16(c), Administrative Procedure and Texas
158-1 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
158-2 its subsequent amendments, the person shall:
158-3 (1) pay the amount of the penalty;
158-4 (2) pay the amount of the penalty and file a petition
158-5 for judicial review contesting the occurrence of the violation, the
158-6 amount of the penalty, or both the occurrence of the violation and
158-7 the amount of the penalty; or
158-8 (3) without paying the amount of the penalty, file a
158-9 petition for judicial review contesting the occurrence of the
158-10 violation, the amount of the penalty, or both the occurrence of the
158-11 violation and the amount of the penalty.
158-12 (k) Within the 30-day period, a person who acts under
158-13 Subsection (j)(3) of this section may:
158-14 (1) stay enforcement of the penalty by:
158-15 (A) paying the amount of the penalty to the
158-16 court for placement in an escrow account; or
158-17 (B) giving to the court a supersedeas bond that
158-18 is approved by the court for the amount of the penalty and that is
158-19 effective until all judicial review of the board's order is final;
158-20 or
158-21 (2) request the court to stay enforcement of the
158-22 penalty by:
158-23 (A) filing with the court a sworn affidavit of
158-24 the person stating that the person is financially unable to pay the
158-25 amount of the penalty and is financially unable to give the
158-26 supersedeas bond; and
158-27 (B) giving a copy of the affidavit to the
159-1 executive director by certified mail.
159-2 (l) An executive director who receives a copy of an
159-3 affidavit under Subsection (k)(2) of this section may file with the
159-4 court, within five days after the date the copy is received, a
159-5 contest to the affidavit. The court shall hold a hearing on the
159-6 facts alleged in the affidavit as soon as practicable and shall
159-7 stay the enforcement of the penalty on finding that the alleged
159-8 facts are true. The person who files an affidavit has the burden
159-9 of proving that the person is financially unable to pay the amount
159-10 of the penalty and to give a supersedeas bond.
159-11 (m) If the person does not pay the amount of the penalty and
159-12 the enforcement of the penalty is not stayed, the executive
159-13 director may refer the matter to the attorney general for
159-14 collection of the amount of the penalty.
159-15 (n) Judicial review of the order of the board:
159-16 (1) is instituted by filing a petition as provided by
159-17 Section 19, Administrative Procedure and Texas Register Act
159-18 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
159-19 subsequent amendments; and
159-20 (2) is under the substantial evidence rule.
159-21 (o) If the court sustains the occurrence of the violation,
159-22 the court may uphold or reduce the amount of the penalty and order
159-23 the person to pay the full or reduced amount of the penalty. If
159-24 the court does not sustain the occurrence of the violation, the
159-25 court shall order that no penalty is owed.
159-26 (p) When the judgment of the court becomes final, the court
159-27 shall proceed under this subsection. If the person paid the amount
160-1 of the penalty and if that amount is reduced or is not upheld by
160-2 the court, the court shall order that the appropriate amount plus
160-3 accrued interest be remitted to the person. The rate of the
160-4 interest is the rate charged on loans to depository institutions by
160-5 the New York Federal Reserve Bank, and the interest shall be paid
160-6 for the period beginning on the date the penalty was paid and
160-7 ending on the date the penalty is remitted. If the person gave a
160-8 supersedeas bond and if the amount of the penalty is not upheld by
160-9 the court, the court shall order the release of the bond. If the
160-10 person gave a supersedeas bond and if the amount of the penalty is
160-11 reduced, the court shall order the release of the bond after the
160-12 person pays the amount.
160-13 (q) A penalty collected under this section shall be remitted
160-14 to the comptroller for deposit in the general revenue fund.
160-15 (r) All proceedings under this section are subject to the
160-16 Administrative Procedure and Texas Register Act (Article 6252-13a,
160-17 Vernon's Texas Civil Statutes) and its subsequent amendments.
160-18 Sec. 9S. (a) A person commits an offense if the person
160-19 fails to comply with Section 9 or 9A of this Act. Except as
160-20 provided by Subsection (b) of this section, an offense under this
160-21 section is a Class A misdemeanor.
160-22 (b) A person commits an offense if the person intentionally
160-23 or knowingly uses for personal benefit funds in an amount greater
160-24 than $10,000 that are due as student refunds under Section 9A of
160-25 this Act. An offense under this subsection is a felony of the
160-26 third degree.
160-27 SECTION 4.06. Sections 15(c) and (d), Chapter 65, Acts of
161-1 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
161-2 Vernon's Texas Civil Statutes), are amended to read as follows:
161-3 (c) The application shall be made on a form prescribed by
161-4 the board and an <a $10> administration fee in an amount
161-5 established by the board must accompany the application.
161-6 (d) The applicant is entitled to a manicurist license if
161-7 such applicant possesses the qualifications enumerated in Section
161-8 15(b), satisfactorily completes the examination, pays a license fee
161-9 in an amount established by the board <not to exceed $30>, and has
161-10 not committed an act which constitutes grounds for denial of a
161-11 license under this Act.
161-12 SECTION 4.07. Sections 15A(b) and (g), Chapter 65, Acts of
161-13 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
161-14 Vernon's Texas Civil Statutes), are amended to read as follows:
161-15 (b) An applicant for a manicurist specialty shop permit must
161-16 submit a written application to the board. The application must be
161-17 accompanied by an inspection fee set by the board <in an amount not
161-18 to exceed $50>. The application must include the address of the
161-19 shop, a legal description of the premises for which the permit is
161-20 sought, and any other information required by the board. As soon
161-21 as practicable after receipt of the application and fee, the board
161-22 shall issue a temporary manicurist specialty shop permit to the
161-23 applicant.
161-24 (g) A permit issued under this section expires July 1 of
161-25 each odd-numbered year. A holder may renew the permit by
161-26 submitting a renewal application to the board, accompanied by a
161-27 renewal fee set by the board <not to exceed $50>.
162-1 SECTION 4.08. Sections 16(c) and (d), Chapter 65, Acts of
162-2 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
162-3 Vernon's Texas Civil Statutes), are amended to read as follows:
162-4 (c) The application shall be made on a form prescribed by
162-5 the board <commission> and an <a $10> administration fee in an
162-6 amount established by the board must accompany the application.
162-7 (d) The applicant is entitled to a wig specialist license if
162-8 he possesses the qualifications enumerated in Subsection (b) of
162-9 this section, satisfactorily completes the examination, pays a
162-10 license fee in an amount established by the board <not to exceed
162-11 $30>, and has not committed an act which constitutes grounds for
162-12 revocation of a license under this Act.
162-13 SECTION 4.09. Sections 17(c) and (d), Chapter 65, Acts of
162-14 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
162-15 Vernon's Texas Civil Statutes), are amended to read as follows:
162-16 (c) The application shall be made on a form prescribed by
162-17 the board, state the education and experience level of the
162-18 applicant in all courses or programs that the applicant will teach
162-19 or instruct, and an <a $5> administration fee in an amount
162-20 established by the board must accompany the application.
162-21 (d) The board shall review an application for competency,
162-22 consistency, and the overall quality of the applicant. The
162-23 applicant is entitled to a wig instructor license if he possesses
162-24 the qualifications enumerated in Subsection (b) of this section,
162-25 satisfactorily completes the examination, pays a license fee in an
162-26 amount established by the board <not to exceed $100>, and has not
162-27 committed any act constituting grounds for revocation of a license
163-1 under this Act.
163-2 SECTION 4.10. Sections 18(b) and (g), Chapter 65, Acts of
163-3 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
163-4 Vernon's Texas Civil Statutes), are amended to read as follows:
163-5 (b) An applicant for a wig specialty shop permit must submit
163-6 a written application to the board. The application must be
163-7 accompanied by an inspection fee set by the board <in an amount not
163-8 to exceed $50>. The application must include the address of the
163-9 shop, a legal description of the premises for which the permit is
163-10 sought, and any other information required by the board. As soon
163-11 as practicable after receipt of the application and fee, the board
163-12 shall issue a temporary wig specialty shop permit to the applicant.
163-13 (g) A permit issued under this section expires July 1 of
163-14 each odd-numbered year. A holder may renew the permit by
163-15 submitting a renewal application to the board, accompanied by a
163-16 renewal fee set by the board <not to exceed $50>.
163-17 SECTION 4.11. Section 18.1(c), Chapter 65, Acts of the 41st
163-18 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
163-19 Texas Civil Statutes), is amended to read as follows:
163-20 (c) The applicant is entitled to a wig school permit if the
163-21 application shows compliance with the rules and regulations of the
163-22 board, a <$100> permit fee in an amount established by the board is
163-23 paid, and applicant has not committed an act which constitutes
163-24 grounds for revocation of a license or permit under this Act.
163-25 SECTION 4.12. Section 19, Chapter 65, Acts of the 41st
163-26 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
163-27 Texas Civil Statutes), is amended to read as follows:
164-1 Sec. 19. DISPLAY OF CERTIFICATE. (a) Every holder of a
164-2 certificate of registration or license issued by the board shall
164-3 display the original certificate or license, together with an
164-4 attached photograph of the certificate holder or licensee, in a
164-5 conspicuous place adjacent to or near the certificate holder's or
164-6 licensee's work-chair in the shop in which the certificate holder
164-7 or licensee is working or employed.
164-8 (b) The board may not use the word "approval" or a variation
164-9 of that term on the permit of a barber school or college. The
164-10 terminology must be "permit" to operate, or a variation of that
164-11 phrase.
164-12 SECTION 4.13. Sections 20(a), (c), and (d), Chapter 65, Acts
164-13 of the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
164-14 Vernon's Texas Civil Statutes), are amended to read as follows:
164-15 (a) Each certificate of registration or license issued under
164-16 this Act expires two years from the date of issuance. Each
164-17 registered Class A barber, barber technician, teacher, wig
164-18 instructor, wig specialist, manicurist, or other licensed
164-19 specialist who continues in active practice or service must renew
164-20 the certificate or license on or before the expiration date. The
164-21 Board shall issue a renewal certificate or license on receipt of a
164-22 renewal application in the form prescribed by the Board,
164-23 accompanied by the renewal fee set by the Board in the amount for
164-24 an original certificate or license<, but not to exceed $100>.
164-25 (c) Any registered barber or licensee whose certificate of
164-26 registration or license has been expired for not more than five (5)
164-27 years may reinstate the certificate of registration or license by
165-1 making proper showing to the Board, supported by his personal
165-2 affidavit, which, in the opinion of the Board, would justify the
165-3 Board in issuing a certificate or license to such applicant as upon
165-4 an original application upon payment of a fee equal to the current
165-5 amount of the original certificate or license fee, plus a
165-6 delinquency fee in an amount established by the Board <of $30> for
165-7 each year or part of a year that the certificate or license has
165-8 been expired.
165-9 (d) Any registered barber or licensee who retires from
165-10 practice and whose certificate of registration or license has been
165-11 expired for more than five (5) years may qualify for a new
165-12 certificate of registration or license by making application to the
165-13 Board and by making proper showing to the Board, supported by his
165-14 personal affidavit, and by paying an examination fee in an amount
165-15 established by the Board <not to exceed $100>, passing a
165-16 satisfactory examination conducted by the Board, and paying the fee
165-17 for an original certificate of registration or license.
165-18 SECTION 4.14. Section 20a, Chapter 65, Acts of the 41st
165-19 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
165-20 Texas Civil Statutes), is amended to read as follows:
165-21 Sec. 20a. Any registered barber, barber technician, teacher,
165-22 manicurist, or wig specialist shall not be required to renew his
165-23 certificate of registration while serving on active duty in the
165-24 military, air or naval forces of the United States, and the Board
165-25 shall issue a renewal certificate upon application and payment of a
165-26 renewal fee within ninety (90) days from the date such registered
165-27 barber, barber technician, teacher, manicurist, or wig specialist
166-1 is released or discharged from active duty in the armed forces.
166-2 The renewal fee shall be in an amount established by the Board and
166-3 different renewal fees may be established depending on whether<:>
166-4 <(1) Ten Dollars ($10) if> the application and payment
166-5 is made:
166-6 (1) during the period from November 1 of an
166-7 odd-numbered year and extending through October 31 of the following
166-8 even-numbered year; or
166-9 (2) <Five Dollars ($5) if the application and payment
166-10 is made> during the period from November 1 of an even-numbered year
166-11 and extending through October 31 of the following odd-numbered
166-12 year.
166-13 SECTION 4.15. Sections 23(b) and (c), Chapter 65, Acts of
166-14 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
166-15 Vernon's Texas Civil Statutes), are amended to read as follows:
166-16 (b) The fee <fees> to be paid to the Board by an applicant
166-17 for an examination to determine his fitness to receive a
166-18 certificate of registration to practice barbering or to practice as
166-19 a barber technician shall be in an amount established by the Board
166-20 <$10>.
166-21 (c) The fee <fees> to be paid to the Board by an applicant
166-22 who has satisfactorily passed the examination and complied with the
166-23 other provisions of this Act to receive a certificate of
166-24 registration to practice barbering or to practice as a barber
166-25 technician shall be set by the Board <in an amount not to exceed
166-26 $100>.
166-27 SECTION 4.16. Section 29A, Chapter 65, Acts of the 41st
167-1 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
167-2 Texas Civil Statutes), is amended to read as follows:
167-3 Sec. 29A. (a) The board shall keep an information file
167-4 about each complaint filed with the board that the board has
167-5 authority to resolve. If a written complaint is filed with the
167-6 board that the board has authority to resolve, the board, at least
167-7 quarterly and until final disposition of the complaint, shall
167-8 notify the parties to the complaint of the status of the complaint
167-9 unless the notice would jeopardize an undercover investigation.
167-10 (b) The board shall prepare information of public interest
167-11 describing the functions of the board and the procedures by which
167-12 complaints are filed with and resolved by the board against a
167-13 barber school or college. The board shall make the information
167-14 available to the public and appropriate state agencies.
167-15 SECTION 4.17. Section 29E, Chapter 65, Acts of the 41st
167-16 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
167-17 Texas Civil Statutes), is amended to read as follows:
167-18 Sec. 29E. A barber shop, specialty shop, or barber school
167-19 permit that has been expired for more than 30 days may be renewed
167-20 by filing a renewal application with the board, accompanied by the
167-21 regular renewal fee, and a delinquency fee in an amount established
167-22 by the board <of $30> for each year or part of a year that the
167-23 permit has been expired.
167-24 PART 5. PRIVATE BEAUTY CULTURE SCHOOLS
167-25 SECTION 5.01. Section 9(b), Chapter 1036, Acts of the 62nd
167-26 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
167-27 Civil Statutes), is amended to read as follows:
168-1 (b) A person may not conduct or operate a beauty shop,
168-2 private<,> beauty culture school, specialty shop, or any other
168-3 place of business in which the practice of cosmetology is taught or
168-4 practiced, conduct a vocational cosmetology program in a public
168-5 school, or lease space on the premises of a beauty shop to engage
168-6 in the practice of cosmetology as an independent contractor without
168-7 first obtaining a license.
168-8 SECTION 5.02. Section 10(d), Chapter 1036, Acts of the 62nd
168-9 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
168-10 Civil Statutes), is amended to read as follows:
168-11 (d) The applicant is entitled to an operator license if he
168-12 possesses the qualifications enumerated in Subsection (b) of this
168-13 section, satisfactorily completes the examination, pays a <$35>
168-14 license fee in an amount established by the commission, and has not
168-15 committed an act that constitutes a ground for denial of a license.
168-16 SECTION 5.03. Section 11(d), Chapter 1036, Acts of the 62nd
168-17 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
168-18 Civil Statutes), is amended to read as follows:
168-19 (d) The applicant is entitled to a manicurist license if he
168-20 possesses the qualifications enumerated in Subsection (b) of this
168-21 section, satisfactorily completes the examination, pays a <$35>
168-22 license fee in an amount established by the commission, and has not
168-23 committed an act that constitutes a ground for denial of a license.
168-24 SECTION 5.04. Sections 12(c) and (d), Chapter 1036, Acts of
168-25 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
168-26 Vernon's Texas Civil Statutes), are amended to read as follows:
168-27 (c) The application must state the education and experience
169-1 level of the applicant in all courses or programs that the
169-2 applicant will teach or instruct, be on a form prescribed by the
169-3 commission, and <must> be filed at least 10 days before the date
169-4 set for the examination.
169-5 (d) The commission shall review an application for
169-6 competency, consistency, and the overall quality of the applicant.
169-7 The applicant is entitled to an instructor license if he possesses
169-8 qualifications enumerated in Subsection (b) of this section,
169-9 satisfactorily completes the examination, pays a <$50> license fee
169-10 in an amount established by the commission, and has not committed
169-11 an act that constitutes a ground for denial of a license.
169-12 SECTION 5.05. Section 13(d), Chapter 1036, Acts of the 62nd
169-13 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
169-14 Civil Statutes), is amended to read as follows:
169-15 (d) The applicant is entitled to a specialty certificate if
169-16 he possesses the qualifications enumerated in Subsection (b) of
169-17 this section, pays a <$35> certificate fee in an amount established
169-18 by the commission, and has not committed an act that constitutes a
169-19 ground for denial of a certificate.
169-20 SECTION 5.06. Section 15(b), Chapter 1036, Acts of the 62nd
169-21 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
169-22 Civil Statutes), is amended to read as follows:
169-23 (b) A temporary license shall be issued on submission of an
169-24 application form prescribed by the commission and payment of a
169-25 <$45> temporary license fee in an amount established by the
169-26 commission if the applicant meets the requirements of Subsection
169-27 (a) of this section.
170-1 SECTION 5.07. Section 16, Chapter 1036, Acts of the 62nd
170-2 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
170-3 Civil Statutes), is amended to read as follows:
170-4 Sec. 16. Duplicate License or Certificate. (a) A duplicate
170-5 license or certificate shall be issued upon application on a form
170-6 prescribed by the commission and on the payment of a <$35> fee in
170-7 an amount established by the commission.
170-8 (b) A transcript shall be given to licensees under this Act
170-9 upon application on a form prescribed by the commission and payment
170-10 of a <$5> fee in an amount established by the commission.
170-11 SECTION 5.08. Section 17(b), Chapter 1036, Acts of the 62nd
170-12 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
170-13 Civil Statutes), is amended to read as follows:
170-14 (b) The applicant shall submit an application on a form
170-15 prescribed by the commission and pay a <$100> fee in an amount
170-16 established by the commission, plus the applicable license or
170-17 certification fee.
170-18 SECTION 5.09. Sections 18(b) and (c), Chapter 1036, Acts of
170-19 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
170-20 Vernon's Texas Civil Statutes), are amended to read as follows:
170-21 (b) A student permit shall be issued on submission of an
170-22 application form prescribed by the commission and payment of a
170-23 <$25> fee in an amount established by the commission which must
170-24 accompany the application.
170-25 (c) The cost of the permit shall also include one
170-26 examination fee in an amount established by the commission and a
170-27 transcript fee in an amount established by the commission and may
171-1 not be refunded.
171-2 SECTION 5.10. Sections 19(b) and (c), Chapter 1036, Acts of
171-3 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
171-4 Vernon's Texas Civil Statutes), are amended to read as follows:
171-5 (b) An applicant for a beauty shop license must submit an
171-6 application on a form prescribed by the commission. The
171-7 application must contain proof of the particular requisites for a
171-8 beauty shop as established by the commission and must be verified
171-9 by the applicant. With the application, the applicant must submit
171-10 an <a $35> inspection fee in an amount established by the
171-11 commission.
171-12 (c) The applicant is entitled to a beauty shop license if
171-13 the application shows compliance with the rules of the commission,
171-14 a <$45> license fee in an amount established by the commission is
171-15 paid, and he has not committed an act that constitutes a ground for
171-16 denial of a license.
171-17 SECTION 5.11. Sections 20(b) and (c), Chapter 1036, Acts of
171-18 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
171-19 Vernon's Texas Civil Statutes), are amended to read as follows:
171-20 (b) An applicant for a specialty shop license must submit an
171-21 application on a form prescribed by the commission. The
171-22 application must contain proof of the particular requisites for a
171-23 specialty shop as established by the commission and must be
171-24 verified by the applicant. With the application, the applicant
171-25 must submit an <a $35> inspection fee in an amount established by
171-26 the commission.
171-27 (c) The applicant is entitled to a specialty shop license if
172-1 the application shows compliance with the rules and regulations of
172-2 the commission, a <$45> license fee in an amount established by the
172-3 commission is paid, and he has not committed an act that
172-4 constitutes a ground for denial of a license.
172-5 SECTION 5.12. Section 21, Chapter 1036, Acts of the 62nd
172-6 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
172-7 Civil Statutes), is amended to read as follows:
172-8 Sec. 21. PRIVATE BEAUTY CULTURE SCHOOL LICENSE; APPLICATION;
172-9 REFUND POLICY. (a) A person holding a private beauty culture
172-10 school license may maintain an establishment in which any practice
172-11 of cosmetology is taught.
172-12 (b) An applicant for a private beauty culture school license
172-13 must submit an application on a form prescribed by the commission.
172-14 Each application must be verified by the applicant and must
172-15 contain:
172-16 (1) a detailed floor plan of the school building
172-17 divided into three separate areas, one for instruction in theory,
172-18 one for practice work of senior students, and one for practice work
172-19 of juniors; <and>
172-20 (2) a statement that the building is fireproof and of
172-21 permanent type construction, contains a minimum of 3,500 square
172-22 feet of floor space, with separate restrooms for male and female
172-23 students, and contains or will contain before classes commence the
172-24 equipment established by rule of the commission as sufficient to
172-25 properly instruct a minimum of 50 students; and
172-26 (3) a statement of any final convictions of the
172-27 owners, school directors, recruiters, instructional faculty, or
173-1 other selected personnel of the private beauty culture school as
173-2 determined by the commission. The commission may obtain criminal
173-3 history records of school directors or instructional faculty from
173-4 any law enforcement agency, including the United States Department
173-5 of Justice, the Department of Public Safety of the State of Texas,
173-6 the Texas Department of Criminal Justice, or the police department
173-7 of a municipality.
173-8 (c) The commission shall determine that an applicant for a
173-9 private beauty culture school license is financially sound and
173-10 capable of fulfilling the school's commitments for training before
173-11 granting the license.
173-12 (d) Each application for a private beauty culture school
173-13 license must be accompanied by payment of a <$500> license fee and
173-14 an <a $200> inspection fee. Each application for certification as
173-15 a public secondary or public postsecondary beauty culture school
173-16 must be accompanied by an <a $200> inspection fee. The inspection
173-17 fee is charged for each inspection trip required before approval of
173-18 the license or certificate. The commission shall establish the
173-19 amount of the fees required under this section.
173-20 (e) The facilities of each applicant shall be inspected.
173-21 The applicant is entitled to a private beauty culture school
173-22 license if the inspection shows that this Act and the rules of the
173-23 commission have been met and the applicant has not committed an act
173-24 that constitutes a ground for denial of a license.
173-25 (f) Each holder of a private beauty culture school license
173-26 must maintain a cancellation and settlement policy that provides a
173-27 full refund of all money paid by a student if:
174-1 (1) the student cancels the enrollment agreement or
174-2 contract not later than midnight of the third day after the date on
174-3 which the agreement or contract is signed by the prospective
174-4 student, excluding Saturdays, Sundays, and legal holidays; or
174-5 (2) the enrollment of the student was procured as a
174-6 result of a misrepresentation made in the advertising or
174-7 promotional materials of the school or a representation by an owner
174-8 or representative of the school.
174-9 (g) Each holder of a private beauty culture school license
174-10 must maintain a refund policy for the refund of the unused part of
174-11 tuition, fees, and other charges assessed a student if the student,
174-12 at the expiration of the cancellation period established under
174-13 Subsection (f) of this section, terminates enrollment or is
174-14 terminated by the school, as provided by this subsection <fails to
174-15 enter the course of training, withdraws from the course of
174-16 training, or is terminated from the course of training before
174-17 completion of the course>. The refund policy must provide that:
174-18 (1) a refund is based on the period of the student's
174-19 enrollment, computed on the basis of course time expressed in clock
174-20 hours;
174-21 (2) the effective date of the termination for payment
174-22 of a refund <refund purposes> is the earliest of:
174-23 (A) the last date of attendance, if the student
174-24 is terminated for failure to satisfy a school attendance, grade, or
174-25 work requirement <by the school>;
174-26 (B) the date of receipt by the license holder of
174-27 written notice of withdrawal by the student; <or>
175-1 (C) the 10th consecutive <10> school day the
175-2 student has been absent, unless any of the absences have been
175-3 excused by the school <days after the last date of attendance>; or
175-4 (D) the date the student fails to return, as
175-5 scheduled, from a leave of absence; and
175-6 (3) if tuition is collected before beginning the
175-7 course of training and if, after the expiration of the cancellation
175-8 period, the student does not begin the course of training, the
175-9 school may retain not more than $100.
175-10 (h) If a student who begins a course of training that is
175-11 scheduled to run not more than 12 months withdraws from the course
175-12 or is terminated from the course by the school, the private beauty
175-13 culture school may retain $100 in tuition and fees paid by that
175-14 student and is not obligated to refund any additional outstanding
175-15 tuition if the student withdraws or is terminated during the last
175-16 quarter <50 percent> of the course. If the student withdraws or is
175-17 terminated before the last quarter <50 percent> of the course
175-18 begins, the school shall refund the following percentages of any
175-19 outstanding tuition:
175-20 (1) for withdrawal or termination occurring during the
175-21 first week or first one-tenth of the course, whichever is less, 90
175-22 percent;
175-23 (2) for withdrawal or termination occurring after the
175-24 first week or first one-tenth of the course, whichever is less, but
175-25 within the first three weeks of the course, 80 percent;
175-26 (3) for withdrawal or termination occurring after the
175-27 first three weeks of the course but not later than the completion
176-1 of the first 25 percent of the course, 75 percent; <and>
176-2 (4) for withdrawal or termination occurring during the
176-3 <not later than the completion of the> second quarter <25 percent>
176-4 of the course, 50 percent;
176-5 (5) for withdrawal or termination occurring during the
176-6 third quarter of the course, 10 percent; and
176-7 (6) for students withdrawing or terminating after 50
176-8 percent of the course has been completed, the school must allow
176-9 that student to reenter at any time during the 48-month period
176-10 following the date of withdrawal or termination at no additional
176-11 charge provided the full agreed on tuition has been tendered.
176-12 (i) <For students withdrawing or terminating after 50
176-13 percent of the course has been completed, the school must allow
176-14 that student to reenter at any time during the 48-month period
176-15 following the date of withdrawal or termination.>
176-16 <(j)> A refund owed under this section must be paid not
176-17 later than the 60th <30th> day after the date on which the student
176-18 becomes eligible for the refund, as determined under Subsection (g)
176-19 of this section.
176-20 (j) <(k)> If a refund is not made within the period required
176-21 by this section, the school shall pay, as a penalty, interest on
176-22 the refund for the interval beginning with the first day following
176-23 the expiration of the refund period and ending with the day
176-24 immediately preceding the date the refund is made. If the refund
176-25 is made to a lending institution, the interest shall also be paid
176-26 to that institution and applied against the student's loan. The
176-27 commissioner of education annually shall establish the level of
177-1 interest at a level sufficient to provide a deterrent to the
177-2 retention of student funds. The commission may exempt a school
177-3 from the payment of the interest if the school makes a good faith
177-4 effort to refund the tuition but is unable to locate the student.
177-5 The school shall provide to the commission on request documentation
177-6 of the effort to locate the student.
177-7 (k) <(l)> A private beauty culture school shall record a
177-8 grade of "incomplete" for a student who withdraws but is not
177-9 entitled to a refund under Subsection (h) of this section if the
177-10 student requests the grade at the time the student withdraws and if
177-11 the student withdraws for an appropriate reason unrelated to the
177-12 student's academic status. A student who receives a grade of
177-13 incomplete may re-enroll in the program during the 12-month
177-14 <48-month> period following the date the student withdraws and
177-15 complete those incomplete subjects without payment of additional
177-16 tuition.
177-17 (l) If a course of instruction is discontinued by the school
177-18 and this prevents the student from completing the course, all
177-19 tuition and fees paid are due and refundable.
177-20 (m) Refunds under this section shall be applied:
177-21 (1) first, to the repayment of student loans;
177-22 (2) second, to the repayment of other government
177-23 loans;
177-24 (3) third, to the repayment of other financial loans;
177-25 and
177-26 (4) last, to the student's personal tuitional
177-27 expenditures.
178-1 (n) Not later than the 30th day after the date on which a
178-2 refund is due to a student who has received a student loan, the
178-3 school shall notify the guaranty agency and the lender of the
178-4 required refund and any refund previously made. The guaranty
178-5 agency and the lender shall notify the student and the school if
178-6 the student's loan has been transferred to another holder.
178-7 (o) The failure of a school or a person to pay a tuition
178-8 refund as required by this section is a deceptive trade practice
178-9 under Subchapter E, Chapter 17, Business & Commerce Code.
178-10 SECTION 5.13. Chapter 1036, Acts of the 62nd Legislature,
178-11 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
178-12 Statutes), is amended by adding Sections 21D-21L to read as
178-13 follows:
178-14 Sec. 21D. ADDITIONAL CRITERIA FOR PRIVATE BEAUTY CULTURE
178-15 SCHOOL LICENSE. Before the commission may approve the application
178-16 of a person for a private beauty culture school license, the
178-17 executive director must find, on investigation at the premises of
178-18 the school, that the school meets the following criteria:
178-19 (1) the courses, curriculum, and instruction are of a
178-20 quality, content, and length as may reasonably and adequately
178-21 achieve the stated objective for which the courses, curriculum, or
178-22 instruction are offered;
178-23 (2) there is in the school adequate space, equipment,
178-24 instructional material, and instructor personnel to provide
178-25 training of good quality;
178-26 (3) educational and experience qualifications of
178-27 directors, administrators, and instructors are adequate;
179-1 (4) the school maintains a written record of the
179-2 previous education and training of the applicant student and
179-3 clearly indicates that appropriate credit has been given by the
179-4 school for previous education and training, with the new training
179-5 period shortened where warranted through use of appropriate skills
179-6 or achievement tests and the student notified;
179-7 (5) a copy of the course outline; schedule of tuition,
179-8 fees, refund policy, and other charges; regulations pertaining to
179-9 absence, grading policy, and rules of operation and conduct;
179-10 regulations pertaining to incomplete grades; the name, mailing
179-11 address, and telephone number of the commission for the purpose of
179-12 directing complaints to the agency; the current rates of job
179-13 placement and employment of students issued a certificate of
179-14 completion; and notification of the availability of the cost
179-15 comparison information prepared under Section 21I of this Act will
179-16 be furnished to the student in the catalog before enrollment;
179-17 (6) on completion of training, the student is given a
179-18 certificate by the school indicating the course and that training
179-19 was satisfactorily completed;
179-20 (7) adequate records as required by the executive
179-21 director are kept to show attendance and progress or grades, and
179-22 satisfactory standards relating to attendance, progress, and
179-23 conduct are enforced;
179-24 (8) the school complies with all local, city, county,
179-25 municipal, state, and federal regulations; the executive director
179-26 may require evidence of compliance as is necessary;
179-27 (9) the school is financially sound and capable of
180-1 fulfilling its commitments for training;
180-2 (10) the school's administrators, directors, owners,
180-3 and instructors are of good reputation and character;
180-4 (11) the school has, maintains, and publishes in its
180-5 school catalog or comparable documents and enrollment contract the
180-6 proper policy for the refund of the unused portion of tuition,
180-7 fees, and other charges in the event the student enrolled by the
180-8 school fails to take the course or withdraws or is discontinued
180-9 from the course at any time before completion;
180-10 (12) the school does not use erroneous or misleading
180-11 advertising, either by actual statement, omission, or intimation as
180-12 determined by the commission;
180-13 (13) additional criteria as may be required by the
180-14 commission;
180-15 (14) the school does not use a name like or similar to
180-16 an existing tax-supported school in the same area;
180-17 (15) the school furnishes to the commission the
180-18 current rates of students who receive a certificate of completion
180-19 and of job placement and employment of students issued a
180-20 certificate of completion;
180-21 (16) on the graduation of a student from a course of
180-22 training offered by a private beauty culture school or the
180-23 student's withdrawal or transfer from a course of training without
180-24 completion of the training, the private beauty culture school shall
180-25 send the commission a certified written copy of the student's
180-26 record, indicating all course hours completed by the student and
180-27 whether the agreed tuition has been paid;
181-1 (17) the school furnishes to the commission for
181-2 approval or disapproval student admission requirements for each
181-3 course or program offered by the school;
181-4 (18) the school furnishes to the commission for
181-5 approval or disapproval the course lengths and curriculum content
181-6 for each course offered by the school; and
181-7 (19) the school does not owe a civil penalty under
181-8 Section 22 of this Act.
181-9 Sec. 21E. CONSUMER INFORMATION. (a) A private beauty
181-10 culture school must submit to the commission for approval, on an
181-11 annual basis, a school catalog or comparable written documents
181-12 detailing the consumer information that must be given to a
181-13 prospective student before enrollment. The school catalog or
181-14 documents must include:
181-15 (1) the name and address of the school and the
181-16 school's governing body and officials;
181-17 (2) a calendar of the school year;
181-18 (3) school policies on enrollment;
181-19 (4) rules relating to absences;
181-20 (5) the school grading policy;
181-21 (6) the school's hours of operation and rules of
181-22 conduct;
181-23 (7) a schedule of the tuition and other fees assessed;
181-24 (8) the school's cancellation and refund policy;
181-25 (9) a general description of the course or courses
181-26 offered;
181-27 (10) information on entrance testing and remedial
182-1 development plans;
182-2 (11) state licensing requirements for courses intended
182-3 to result in licensing of the student;
182-4 (12) starting range and reported average salaries for
182-5 the prior year's graduates in occupations for which courses are
182-6 offered, if the information is available;
182-7 (13) the current rates of job placement and employment
182-8 of students who complete a course of training;
182-9 (14) the school policy on credit for previous
182-10 education and training;
182-11 (15) school regulations relating to incomplete grades;
182-12 (16) information on the transferability of credits
182-13 earned;
182-14 (17) the name, mailing address, and telephone number
182-15 of the commission for the purpose of directing complaints to the
182-16 commission and the mechanism and procedures for resolving
182-17 grievances submitted to the commission;
182-18 (18) a statement that the commission has information
182-19 on cost comparison with similar schools;
182-20 (19) market and job availability information, if
182-21 available;
182-22 (20) the names of the members of any advisory council
182-23 of the school and the company for which they work; and
182-24 (21) other information required by the executive
182-25 director or commission if reasonable notice has been given by the
182-26 director or commission to the school of the additional
182-27 requirements.
183-1 (b) A private beauty culture school may not accept a signed
183-2 student enrollment contract or accept a student into any school
183-3 program until at least 24 hours after the student has received the
183-4 catalog or comparable written documents required under this
183-5 section.
183-6 (c) A student must sign a receipt stating that:
183-7 (1) the catalog was received by the student before any
183-8 commitment made by the student to the school or by the school to
183-9 the student;
183-10 (2) the student was given an opportunity to discuss
183-11 the catalog with a representative of the school; and
183-12 (3) the student understands the contents and
183-13 implications of the catalog.
183-14 (d) The receipt required by Subsection (c) of this section
183-15 must be placed in the student's permanent school file and a copy of
183-16 the receipt must be delivered to the student.
183-17 Sec. 21F. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
183-18 TO PRIVATE BEAUTY CULTURE SCHOOL. (a) The commission shall set
183-19 and enforce minimum standards for completion and employment rates
183-20 of courses based on collected data.
183-21 (b) In determining whether to renew a private beauty culture
183-22 school license, the commission shall consider the completion,
183-23 placement, and employment rates of students of the courses.
183-24 (c) Before a school may begin offering a new course of study
183-25 for students, the school must show the commission the opportunity
183-26 for jobs for graduates of the course and the possibility of
183-27 placement or employment.
184-1 (d) Before the commission issues or renews a private beauty
184-2 culture school license involving a school that offers or advertises
184-3 a placement service, the commission may require the school to file
184-4 a certified copy of the school's placement records for the previous
184-5 year.
184-6 Sec. 21G. ON-SITE INSPECTIONS. (a) The commission shall
184-7 conduct on-site inspections of a private beauty culture school to
184-8 determine the normal operating conditions of the school.
184-9 (b) The inspection required by Subsection (a) of this
184-10 section shall be unannounced.
184-11 (c) The executive director or a designee of the executive
184-12 director may inspect such things as the instructional books and
184-13 records, classrooms, dormitories, tools, equipment, and classes of
184-14 a private beauty culture school or an applicant for a license for a
184-15 school at any reasonable time.
184-16 Sec. 21H. CONSOLIDATION OF FEES AND PRIVATE BEAUTY CULTURE
184-17 SCHOOL ACCOUNT. (a) At the beginning of each fiscal year the
184-18 commission shall collect a fee from the school for deposit in a
184-19 special account in the general revenue fund in the state treasury
184-20 called the private beauty culture school account and to be
184-21 administered by the commission.
184-22 (b) The amount of the fee is determined by applying a
184-23 percentage established by the commission, based on the
184-24 recommendation of the school accounts advisory board, to each
184-25 school's annual gross tuition, with consideration given to the
184-26 school's size, expense of regulation, potential for teachouts,
184-27 tuition refund and recovery exposure, and loan default rates (with
185-1 schools with high default rates paying higher fees), and any other
185-2 relevant factors. The account shall be used for:
185-3 (1) the administration of this Act;
185-4 (2) the cost of teachouts as provided by this Act;
185-5 (3) the cost of tuition and fees recovery and the cost
185-6 of student refunds that a school has not made; and
185-7 (4) the cost of storing student records that have
185-8 become property of the state under this Act.
185-9 (c) The commission may grant an exemption from payment into
185-10 the account to a small school as determined by the commission, or
185-11 to a school that does not use guaranteed student loans for tuition
185-12 revenue. A school exempt as provided for by this subsection must
185-13 pay the necessary fees for regulation, as determined by the
185-14 commission, and provide a bond, certificate of deposit, or
185-15 comparable security, as determined and approved by the commission,
185-16 that is sufficient to cover the cost of the school's record storage
185-17 costs, teachout, and tuition and fees refund and recovery exposure
185-18 based on the evidence the school submits proving its projected
185-19 maximum total unearned tuition during the period of the license to
185-20 operate.
185-21 (d) The security must be provided by the school for the
185-22 period during which the license to operate is issued, and the
185-23 obligation of the bond or other security must be that neither this
185-24 Act nor any rule adopted under this Act is violated by the school
185-25 or any of its officers, agents, or employees.
185-26 (e) The bond, certificate of deposit, or comparable security
185-27 must be issued by a company authorized to do business in the state,
186-1 conditioned that the parties to the transaction must pay all
186-2 damages or expenses that the state or any governmental subdivision,
186-3 or any student or potential student sustains resulting from a
186-4 violation. The bond, certificate of deposit, or comparable
186-5 security must be to the state to be used only for payment for the
186-6 school's teachout and tuition and fees refund due to a student or
186-7 potential student. The security must be filed with the commission
186-8 and shall be in a form approved by the commission.
186-9 (f) Schools domiciled, or having their principal place of
186-10 business, outside the state, that engage representatives to
186-11 canvass, solicit, or contract with any person in the state are
186-12 subject to the fee and security requirements of Subsection (c) of
186-13 this section.
186-14 (g) The commission shall refer all expenses incurred by the
186-15 school account in administering Subsections (b)(2) and (3) of this
186-16 section to the attorney general's office for collection. The
186-17 amounts collected shall be deposited to the account. Attorney's
186-18 fees and court costs shall be appropriated to the attorney
186-19 general's office.
186-20 (h) Interest the account earns shall be reinvested in the
186-21 account. The state treasurer shall invest the account in the same
186-22 manner as other state funds. Sufficient funds from the account and
186-23 other fees collected by the commission shall be appropriated to the
186-24 commission for the purpose outlined in this section. The
186-25 commission shall administer claims made against the account.
186-26 (i) If a school closes, the commission shall attempt to
186-27 arrange for students of the closed school to attend another private
187-1 beauty culture school. The commission shall adopt rules specifying
187-2 the circumstances under which a school is considered closed.
187-3 (j) The expense incurred by a private beauty culture school
187-4 in providing training that is directly related to educating a
187-5 student who was enrolled in a closed school and placed in the
187-6 school under this section, including the applicable tuition for the
187-7 period of time for which the student has paid tuition, shall be
187-8 paid in accordance with rules of the commission.
187-9 (k) The commission shall make reasonable attempts to ensure
187-10 that schools under the commission's jurisdiction, including closed
187-11 schools, fulfill the refund obligation as provided by Section 21 of
187-12 this Act. If a school refuses to fulfill the school's obligation
187-13 or the school's bond is insufficient to pay the cost of the
187-14 teachout and refund expenses, the teachout or the refund may be
187-15 paid from the private beauty culture school account except that no
187-16 school owned, either in whole or in part, by a person or corporate
187-17 entity who was an owner, in whole or in part, of a previously
187-18 closed school shall be permitted to receive compensation for a
187-19 teachout under this section.
187-20 (l) If a student cannot be placed in another school, the
187-21 student's tuition and fees shall be refunded under Section 21(k) of
187-22 this Act.
187-23 (m) If a student does not accept a place that is available
187-24 and reasonable in another school, the student's tuition and fees
187-25 shall be refunded under the refund policy maintained by the closing
187-26 school under Sections 21(f) and (g) of this Act.
187-27 (n) Attorney's fees, court costs, or damages may not be paid
188-1 from the private beauty culture school account.
188-2 (o) The commission by rule shall establish and assess
188-3 reasonable and necessary fees to all persons and entities licensed
188-4 under this Act to be used for the regulation of those persons and
188-5 entities licensed under this Act and to supplement the
188-6 administration and purposes outlined by this Act.
188-7 (p) The commission may permit payment of any fee authorized
188-8 under this section that exceeds $1,000 to be paid by installment.
188-9 The commission shall provide for appropriate interest charges and
188-10 late penalties in addition to any other remedy that is provided for
188-11 by law for the late payment of a fee installment authorized under
188-12 this section. The commission may assess a reasonable service
188-13 charge to be paid by a school that pays a fee by installment in an
188-14 amount not to exceed an annual rate of 10 percent of the fee that
188-15 is to be paid by installment.
188-16 Sec. 21I. COST COMPARISONS. (a) The commission shall
188-17 prepare a comparison of the cost to a student of courses of
188-18 instruction or training programs at all private beauty culture
188-19 schools maintained by persons who hold private beauty culture
188-20 school licenses issued by the commission.
188-21 (b) The cost comparison must include for each school a
188-22 description of:
188-23 (1) average class size;
188-24 (2) facilities and equipment;
188-25 (3) employment and placement rates;
188-26 (4) length of program; and
188-27 (5) faculty qualifications.
189-1 Sec. 21J. FINANCIAL STABILITY. (a) A school may not
189-2 reflect unearned tuition as a current asset unless the amount shown
189-3 in current assets that reflects unearned tuition is offset by an
189-4 equal amount shown as a current liability. The school must meet
189-5 one of the following criteria in order to be determined as
189-6 financially sound and capable of fulfilling its commitments for
189-7 training:
189-8 (1) current assets must bear a relationship to current
189-9 liabilities in a ratio of at least one-to-one;
189-10 (2) the equity of the owner of the school must be in
189-11 excess of $10,000,000; or
189-12 (3) the school must have posted, or set aside in a
189-13 dedicated escrow account, a bond, certificate of deposit,
189-14 irrevocable letter of credit, or comparable security, acceptable to
189-15 the commission, each made payable to the State of Texas, in an
189-16 amount sufficient to cover the school's record storage costs,
189-17 teachout, and tuition and fees refund and recovery exposure based
189-18 on the evidence the school submits proving its projected maximum
189-19 total unearned tuition during the period of time covered by the
189-20 evidence of indebtedness to the state.
189-21 (b) The school must demonstrate to the satisfaction of the
189-22 commission its financial soundness and ability to fulfill its
189-23 commitments for training.
189-24 Sec. 21K. PROHIBITIONS. A person may not:
189-25 (1) operate a private beauty culture school without a
189-26 license or assume ownership of an existing private beauty culture
189-27 school without obtaining a new license to operate;
190-1 (2) solicit prospective students for a private beauty
190-2 culture school without being licensed as required by this Act;
190-3 (3) accept contracts or enrollment applications from a
190-4 representative of a private beauty culture school who is not
190-5 registered as required by any commission rule requiring
190-6 registration;
190-7 (4) use advertising designed to mislead or deceive
190-8 prospective private beauty culture school students;
190-9 (5) fail to notify the commission of the
190-10 discontinuance of the operation of any private beauty culture
190-11 school not later than the 72nd hour after cessation of classes or
190-12 make available accurate records as required by this Act;
190-13 (6) fail to secure and file within 30 days any
190-14 increased bond required by this Act;
190-15 (7) negotiate any promissory instrument received as
190-16 payment of tuition for a private beauty culture school or other
190-17 charge before completion of 75 percent of the course, provided that
190-18 before that time, the instrument may be transferred by assignment
190-19 to a purchaser who is subject to any defense available against the
190-20 school named as payee;
190-21 (8) enroll a student in a private beauty culture
190-22 school who fails to satisfy entrance requirements; or
190-23 (9) violate any provision of this Act relating to
190-24 private beauty culture schools or a rule adopted under this Act
190-25 relating to private beauty culture schools.
190-26 Sec. 21L. ADMINISTRATIVE PENALTY. (a) The commission may
190-27 impose an administrative penalty against a person who violates
191-1 Section 21K of this Act.
191-2 (b) The penalty for a violation may be in an amount not to
191-3 exceed $10,000.
191-4 (c) The amount of the penalty shall be based on:
191-5 (1) the seriousness of the violation, including the
191-6 nature, circumstances, extent, and gravity of any prohibited acts;
191-7 (2) efforts to correct the violation; and
191-8 (3) any other matter that justice may require.
191-9 (d) An executive director who determines that a violation
191-10 has occurred may issue to the commission a report that states the
191-11 facts on which the determination is based and the director's
191-12 recommendation on the imposition of a penalty, including a
191-13 recommendation on the amount of the penalty.
191-14 (e) Within 14 days after the date the report is issued, the
191-15 executive director shall give written notice of the report to the
191-16 person. The notice may be given by certified mail. The notice
191-17 must include a brief summary of the alleged violation and a
191-18 statement of the amount of the recommended penalty and must inform
191-19 the person that the person has a right to a hearing on the
191-20 occurrence of the violation, the amount of the penalty, or both the
191-21 occurrence of the violation and the amount of the penalty.
191-22 (f) Within 20 days after the date the person receives the
191-23 notice, the person in writing may accept the determination and
191-24 recommended penalty of the executive director or may make a written
191-25 request for a hearing on the occurrence of the violation, the
191-26 amount of the penalty, or both the occurrence of the violation and
191-27 the amount of the penalty.
192-1 (g) If the person accepts the determination and recommended
192-2 penalty of the executive director, the commission by order shall
192-3 approve the determination and impose the recommended penalty.
192-4 (h) If the person requests a hearing or fails to respond
192-5 timely to the notice, the executive director shall set a hearing
192-6 and give notice of the hearing to the person. The hearing shall be
192-7 held by an administrative law judge of the State Office of
192-8 Administrative Hearings. The administrative law judge shall make
192-9 findings of fact and conclusions of law and promptly issue to the
192-10 commission a proposal for a decision about the occurrence of the
192-11 violation and the amount of a proposed penalty. Based on the
192-12 findings of fact, conclusions of law, and proposal for a decision,
192-13 the commission by order may find that a violation has occurred and
192-14 impose a penalty or may find that no violation occurred.
192-15 (i) The notice of the commission's order given to the person
192-16 under the Administrative Procedure and Texas Register Act (Article
192-17 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
192-18 amendments must include a statement of the right of the person to
192-19 judicial review of the order.
192-20 (j) Within 30 days after the date the commission's order is
192-21 final as provided by Section 16(c), Administrative Procedure and
192-22 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
192-23 Statutes), and its subsequent amendments, the person shall:
192-24 (1) pay the amount of the penalty;
192-25 (2) pay the amount of the penalty and file a petition
192-26 for judicial review contesting the occurrence of the violation, the
192-27 amount of the penalty, or both the occurrence of the violation and
193-1 the amount of the penalty; or
193-2 (3) without paying the amount of the penalty, file a
193-3 petition for judicial review contesting the occurrence of the
193-4 violation, the amount of the penalty, or both the occurrence of the
193-5 violation and the amount of the penalty.
193-6 (k) Within the 30-day period, a person who acts under
193-7 Subsection (j)(3) of this section may:
193-8 (1) stay enforcement of the penalty by:
193-9 (A) paying the amount of the penalty to the
193-10 court for placement in an escrow account; or
193-11 (B) giving to the court a supersedeas bond that
193-12 is approved by the court for the amount of the penalty and that is
193-13 effective until all judicial review of the board's order is final;
193-14 or
193-15 (2) request the court to stay enforcement of the
193-16 penalty by:
193-17 (A) filing with the court a sworn affidavit of
193-18 the person stating that the person is financially unable to pay the
193-19 amount of the penalty and is financially unable to give the
193-20 supersedeas bond; and
193-21 (B) giving a copy of the affidavit to the
193-22 executive director by certified mail.
193-23 (l) An executive director who receives a copy of an
193-24 affidavit under Subsection (k)(2) of this section may file with the
193-25 court, within five days after the date the copy is received, a
193-26 contest to the affidavit. The court shall hold a hearing on the
193-27 facts alleged in the affidavit as soon as practicable and shall
194-1 stay the enforcement of the penalty on finding that the alleged
194-2 facts are true. The person who files an affidavit has the burden
194-3 of proving that the person is financially unable to pay the amount
194-4 of the penalty and to give a supersedeas bond.
194-5 (m) If the person does not pay the amount of the penalty and
194-6 the enforcement of the penalty is not stayed, the executive
194-7 director may refer the matter to the attorney general for
194-8 collection of the amount of the penalty.
194-9 (n) Judicial review of the order of the commission:
194-10 (1) is instituted by filing a petition as provided by
194-11 Section 19, Administrative Procedure and Texas Register Act
194-12 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
194-13 subsequent amendments; and
194-14 (2) is under the substantial evidence rule.
194-15 (o) If the court sustains the occurrence of the violation,
194-16 the court may uphold or reduce the amount of the penalty and order
194-17 the person to pay the full or reduced amount of the penalty. If
194-18 the court does not sustain the occurrence of the violation, the
194-19 court shall order that no penalty is owed.
194-20 (p) When the judgment of the court becomes final, the court
194-21 shall proceed under this subsection. If the person paid the amount
194-22 of the penalty and if that amount is reduced or is not upheld by
194-23 the court, the court shall order that the appropriate amount plus
194-24 accrued interest be remitted to the person. The rate of the
194-25 interest is the rate charged on loans to depository institutions by
194-26 the New York Federal Reserve Bank, and the interest shall be paid
194-27 for the period beginning on the date the penalty was paid and
195-1 ending on the date the penalty is remitted. If the person gave a
195-2 supersedeas bond and if the amount of the penalty is not upheld by
195-3 the court, the court shall order the release of the bond. If the
195-4 person gave a supersedeas bond and if the amount of the penalty is
195-5 reduced, the court shall order the release of the bond after the
195-6 person pays the amount.
195-7 (q) A penalty collected under this section shall be remitted
195-8 to the comptroller for deposit in the general revenue fund.
195-9 (r) All proceedings under this section are subject to the
195-10 Administrative Procedure and Texas Register Act (Article 6252-13a,
195-11 Vernon's Texas Civil Statutes) and its subsequent amendments.
195-12 SECTION 5.14. Section 22, Chapter 1036, Acts of the 62nd
195-13 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
195-14 Civil Statutes), is amended to read as follows:
195-15 Sec. 22. Additional Requirements Applying to Private Beauty
195-16 Culture Schools. (a) The holder of a private beauty culture
195-17 school license shall:
195-18 (1) maintain a sanitary establishment;
195-19 (2) maintain on its staff and on duty during business
195-20 hours not less than two full-time instructors licensed under this
195-21 Act, except that one instructor will be sufficient whenever the
195-22 student enrollment drops below 15;
195-23 (3) maintain a daily record of attendance of students;
195-24 (4) establish regular class and instruction hours and
195-25 grades, and hold examinations before issuing diplomas;
195-26 (5) require a school term of not less than nine months
195-27 and not less than 1,500 hours instruction for a complete course in
196-1 cosmetology;
196-2 (6) require a school term of not less than 250 hours
196-3 instruction for a complete course in manicuring;
196-4 (7) require no student to work or be instructed or
196-5 receive credit for more than eight hours of instruction in any one
196-6 day or for more than six days in any one calendar week;
196-7 (8) maintain a copy of its curriculum in a conspicuous
196-8 place and verify that this curriculum is being followed as to
196-9 subject matter being taught; and
196-10 (9) submit to the executive director the name of each
196-11 student within 10 days after enrollment in the school and notify
196-12 the executive director of the withdrawal or graduation of a student
196-13 within 10 days of the withdrawal or graduation.
196-14 (b) Each holder of a private beauty culture school license
196-15 shall furnish to the commission:
196-16 (1) the current course completion rates of students
196-17 who attend a course of instruction offered by the school; and
196-18 (2) job placement rates and employment rates of
196-19 students who complete a course of instruction.
196-20 (c) On the graduation of a student from a course of training
196-21 offered by a private beauty culture school or the student's
196-22 withdrawal or transfer from a course of training without completion
196-23 of the training, the private beauty culture school shall send the
196-24 commission a certified written copy of the student's record,
196-25 indicating all course hours completed by the student and whether
196-26 the agreed tuition has been paid.
196-27 (d) <A holder of a private beauty culture school license
197-1 shall furnish each prospective student with:>
197-2 <(1) a copy of the course outline;>
197-3 <(2) a schedule of the tuition and other fees
197-4 assessed;>
197-5 <(3) the refund policy required under Section 21 of
197-6 this Act;>
197-7 <(4) school regulations relating to absences;>
197-8 <(5) the school grading policy;>
197-9 <(6) the school rules of operation and conduct;>
197-10 <(7) school regulations relating to incomplete
197-11 grades;>
197-12 <(8) the name, mailing address, and telephone number
197-13 of the commission for the purpose of directing complaints to the
197-14 commission; and>
197-15 <(9) the current rates of job placement and employment
197-16 of students who complete a course of training.>
197-17 <(e) A holder of a private beauty culture school license
197-18 shall publish in its catalogue and enrollment contract a
197-19 description of the refund policy required under Section 21 of this
197-20 Act.>
197-21 <(f) If the commission has reasonable cause to believe that
197-22 a private beauty culture school has violated this Act or a rule
197-23 adopted under this Act, the commission may order a peer review of
197-24 the school or suspend the admission of students to the school. A
197-25 peer review ordered under this subsection shall be conducted by a
197-26 peer review team composed of knowledgeable persons selected by the
197-27 commission. The commission shall attempt to provide a balance on
198-1 each team between members assigned to the team who are from this
198-2 state and those who are from other states. The team shall provide
198-3 the commission with an objective assessment of the content of the
198-4 school's curriculum and its application. The school under review
198-5 shall pay the costs of the peer review.>
198-6 <(g)> A private beauty culture school that violates this Act
198-7 or a rule adopted under this Act is liable for a civil penalty in
198-8 addition to any injunctive relief or other remedy provided by law.
198-9 The civil penalty may not exceed $1,000 a day for each violation.
198-10 The attorney general, at the request of the commission, may bring a
198-11 civil action to collect a civil penalty under this subsection.
198-12 Civil penalties recovered in a suit brought under this subsection
198-13 shall be deposited in the state treasury to the credit of the
198-14 General Revenue Fund.
198-15 SECTION 5.15. Chapter 1036, Acts of the 62nd Legislature,
198-16 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
198-17 Statutes), is amended by adding Sections 22A-22F to read as
198-18 follows:
198-19 Sec. 22A. LICENSING REQUIREMENTS DISCLOSED BY PRIVATE BEAUTY
198-20 CULTURE SCHOOL. (a) A private beauty culture school must disclose
198-21 to all prospective students state licensing requirements to
198-22 practice the occupation for which the student is training.
198-23 (b) A school must disclose to all prospective students the
198-24 performance of graduates from the school on the licensing
198-25 examination of the commission if that information is available.
198-26 Sec. 22B. ENTRANCE REQUIREMENTS FOR PRIVATE BEAUTY CULTURE
198-27 SCHOOL; MINIMUM SKILLS TEST. (a) The commission shall approve
199-1 entrance requirements, including minimum skills testing, for
199-2 students who may be accepted for a course of study in a private
199-3 beauty culture school. The requirements must be specific and
199-4 provide that students who are allowed to enter a course will have a
199-5 reasonable chance of completing the program.
199-6 (b) The school shall administer a standardized test to
199-7 students with a high school diploma or high school equivalency
199-8 certificate entering the school, if testing for minimum skill
199-9 competency is determined by the commission as appropriate and
199-10 necessary to determine if remediation is needed. The test must be
199-11 administered before enrollment and must be nationally recognized as
199-12 appropriate and effective for minimum skills testing and high
199-13 school equivalency. If the test reveals the necessity for
199-14 remediation, the school must implement a plan to encourage the
199-15 student to improve in basic general education skills.
199-16 (c) A student must achieve a successful score on the test
199-17 required by this section before the student is obligated for
199-18 tuition and fees for the vocational portion of the school's
199-19 program.
199-20 (d) The school may, in accordance with federal statutory
199-21 provisions affecting guaranteed student loan programs, on a
199-22 case-by-case basis, refuse to provide the certification statements
199-23 required for guaranteed student loan eligibility, or reduce the
199-24 determination of need for a guaranteed student loan if the school
199-25 determines that the student's expenses to be covered by the loan,
199-26 and the estimated cost of attendance, can be met more appropriately
199-27 by the school, directly by the student, or by other sources.
200-1 Sec. 22C. STUDENTS IN PRIVATE BEAUTY CULTURE SCHOOLS IN NEED
200-2 OF REMEDIAL HELP. (a) An applicant without a high school diploma
200-3 or high school equivalency certificate must pass an entrance test
200-4 approved by the commission and be considered to have the ability to
200-5 benefit from the school before the school may enroll the student.
200-6 (b) A school that admits a student who does not have a high
200-7 school diploma or high school equivalency certificate must develop
200-8 and implement a plan for counseling the student on curriculum,
200-9 student aid, employment opportunities, and the remediation
200-10 necessary for the student to obtain a high school equivalency
200-11 certificate and improve in basic general education skills.
200-12 (c) The school must assist the student in obtaining the
200-13 remediation necessary for the student to pass a standardized
200-14 minimum skills equivalency test, approved by the commission, and
200-15 the student must pass the test before entering the final quarter of
200-16 the course.
200-17 Sec. 22D. ENROLLMENT POLICIES OF PRIVATE BEAUTY CULTURE
200-18 SCHOOL. (a) The enrollment contract of a private beauty culture
200-19 school must contain:
200-20 (1) a disclosure that the contract is a legally
200-21 binding instrument on written acceptance of the student by the
200-22 school, unless canceled as provided by law;
200-23 (2) the school's cancellation and refund policy;
200-24 (3) the method of cancellation of the contract, the
200-25 effective date of any cancellation, and the name and address to
200-26 which the notice of cancellation should be sent or delivered;
200-27 (4) the total cost of the course including tuition and
201-1 all other charges;
201-2 (5) a notification that the fair market value of
201-3 equipment or supplies furnished to the student that the student
201-4 fails to return in a condition suitable for resale not later than
201-5 the 10th business day after the date of cancellation may be
201-6 retained by the school and deducted from any refund of the student;
201-7 (6) a statement that if a student's enrollment is
201-8 canceled for any reason, the school will notify an agency known to
201-9 the school to be providing financial aid to the student of the
201-10 cancellation not later than the 30th day after the date of
201-11 cancellation;
201-12 (7) the name and description of the courses, including
201-13 the number of hours of classroom instruction or home study lessons;
201-14 and
201-15 (8) the Federal Trade Commission statement for a
201-16 holder in due course.
201-17 (b) An enrollment contract may not contain a wage assignment
201-18 provision or a confession of judgment clause.
201-19 (c) Immediately after a prospective student has signed an
201-20 enrollment contract, the school shall give the prospective student
201-21 a copy of the contract, and a copy shall be placed in the student's
201-22 permanent school file.
201-23 (d) A promissory note signed by a student must include the
201-24 Federal Trade Commission statement required for a holder in due
201-25 course.
201-26 Sec. 22E. LOAN COUNSELING BY PRIVATE BEAUTY CULTURE SCHOOL.
201-27 (a) A school shall conduct loan counseling entrance interviews
202-1 with each prospective student seeking a loan during the enrollment
202-2 process. A student borrower shall be counseled before the initial
202-3 disbursement of loan proceeds, shortly before the student completes
202-4 one-half of the course, and before the student is issued a
202-5 certificate of completion.
202-6 (b) The school's financial aid officer or counselor shall
202-7 conduct the interviews required by Subsection (a) of this section.
202-8 The interview must include a discussion of:
202-9 (1) the rights and responsibilities of the student as
202-10 a borrower;
202-11 (2) what a loan is and the importance of repayment;
202-12 (3) the total cost of the program in which the student
202-13 will be enrolled;
202-14 (4) the availability of other forms of financial aid,
202-15 grants, and part-time work;
202-16 (5) the starting range and average reported salaries
202-17 of those in the occupation for which the student will be trained,
202-18 if available; and
202-19 (6) job placement services provided by the school and
202-20 the employment rate of persons who attended the school and were
202-21 enrolled in the program in which the student is enrolled.
202-22 (c) A school approved to accept state or federal educational
202-23 loans or grants shall adopt, in addition to the provisions in this
202-24 section, measures to reduce defaults and improve borrower's
202-25 understanding and respect for the loan repayment obligation as
202-26 provided in 34 C.F.R., Parts 668 and 682.
202-27 (d) The school must give a copy of the Texas Guaranteed
203-1 Student Loan Corporation's "Your Future" guide, or a comparable
203-2 document approved by the commission, to a prospective student at a
203-3 time and in a manner that provides the student with sufficient
203-4 opportunity to read the guide or other document and discuss the
203-5 contents with the school's financial aid officer, if necessary for
203-6 understanding and clarity, before signing an enrollment contract
203-7 and before the school accepts the student in a course of study.
203-8 (e) The prospective student must sign a document stating
203-9 that the student:
203-10 (1) attended a loan counseling entrance interview; and
203-11 (2) received a copy of the "Your Future" guide, or
203-12 comparable document, in the time provided by Subsection (d) of this
203-13 section.
203-14 (f) A copy of the signed document required by Subsection (e)
203-15 of this section must be sent to the student, guarantor, and lender
203-16 and must be placed in the student's permanent school file.
203-17 Sec. 22F. RECORDS OF PRIVATE BEAUTY CULTURE SCHOOL. (a) A
203-18 private beauty culture school shall maintain permanent records for
203-19 all students enrolled, as required by the commission.
203-20 (b) A school shall adopt a plan to preserve permanent
203-21 records and submit the plan to the commission for approval. The
203-22 plan must:
203-23 (1) provide that at least one copy of the records will
203-24 be held in a secure depository; and
203-25 (2) designate an appropriate official to provide a
203-26 student with copies of records or transcripts on request.
203-27 (c) The school shall make the first copy of records or
204-1 transcripts at no charge to the student. The school may make a
204-2 reasonable charge to provide additional copies of records,
204-3 transcripts, or other student information.
204-4 (d) If the school closes, the records become the property of
204-5 the state.
204-6 SECTION 5.16. Section 27, Chapter 1036, Acts of the 62nd
204-7 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
204-8 Civil Statutes), is amended to read as follows:
204-9 Sec. 27. Display of License. (a) Every holder of a license
204-10 or certificate issued under this Act shall display the license or
204-11 certificate in a conspicuous place in his place of business or
204-12 employment.
204-13 (b) The commission may not use the word "approval" or a
204-14 variation of that term on the license of a private beauty culture
204-15 school. The terminology must be "licensed" to operate, or a
204-16 variation of that phrase.
204-17 SECTION 5.17. Section 30(a), Chapter 1036, Acts of the 62nd
204-18 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
204-19 Civil Statutes), is amended to read as follows:
204-20 (a) The commission shall use a written examination, selected
204-21 by the commission, to examine license applicants and shall <may>
204-22 require a practical examination for licenses and certificates
204-23 issued under this Act, as the commission considers necessary. The
204-24 written examination must be validated by independent testing
204-25 professionals or be purchased from a national testing service. The
204-26 commission shall prescribe the method and content of any practical
204-27 examination.
205-1 SECTION 5.18. Sections 33(c), (e), (f), and (g), Chapter
205-2 1036, Acts of the 62nd Legislature, Regular Session, 1971 (Article
205-3 8451a, Vernon's Texas Civil Statutes), are amended to read as
205-4 follows:
205-5 (c) A renewal license shall be issued on payment of the
205-6 renewal fee as established by the commission under this Act if the
205-7 licensee is not in violation of this Act at the time of renewal.
205-8 (e) A license that has been expired for less than 30 days
205-9 may be renewed. A renewal license shall be issued on submission
205-10 of a completed application form prescribed by the commission and
205-11 payment of the renewal fee, plus a <$10> delinquency fee in an
205-12 amount established by the commission.
205-13 (f) Except as provided by Subsection (h) of this section, a
205-14 license that has been expired for more than 30 days but less than
205-15 five years may be renewed. A renewal license shall be issued on
205-16 submission of an application, payment of the fee established by the
205-17 commission under this Act for each year the license has been
205-18 expired, and payment of a delinquency fee. Delinquency fees for
205-19 the following licenses shall be established by the commission
205-20 <under this subsection are>:
205-21 (1) operator or specialty license <$25>;
205-22 (2) instructor license <$50>;
205-23 (3) manicurist license <$25>; and
205-24 (4) beauty or specialty salon license <$35>.
205-25 (g) An applicant for renewal of a license that has been
205-26 expired for more than five years shall be issued a license on
205-27 submission of an application, payment of the examination fee,
206-1 satisfactory completion of the examination, and payment of a <$50>
206-2 reinstatement fee in an amount established by the commission.
206-3 SECTION 5.19. Section 34(a), Chapter 1036, Acts of the 62nd
206-4 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
206-5 Civil Statutes), is amended to read as follows:
206-6 (a) Renewal fees for the following licenses shall be
206-7 established by the commission <under this Act are>:
206-8 (1) Operator or specialty license <$35>;
206-9 (2) Instructor license <$50>;
206-10 (3) Manicurist license <$35>;
206-11 (4) Private beauty school license <$200 per year>; and
206-12 (5) Beauty or specialty shop license <$45>.
206-13 SECTION 5.20. Section 36, Chapter 1036, Acts of the 62nd
206-14 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
206-15 Civil Statutes), is amended to read as follows:
206-16 Sec. 36. Grounds for Denial, Suspension, or Revocation of a
206-17 Permit. (a) A license or certificate may be denied, or after a
206-18 hearing, suspended or revoked if the applicant or licensee has:
206-19 (1) secured a license or certificate by fraud or
206-20 deceit;
206-21 (2) violated or conspired to violate this Act or a
206-22 rule issued under this Act;
206-23 (3) knowingly made false or misleading statements in
206-24 any advertising of the licensee's services;
206-25 (4) advertised, practiced, or attempted to practice
206-26 under the name or trade name of another licensee under this Act; or
206-27 (5) engaged in gross malpractice in practicing
207-1 cosmetology.
207-2 (b) In addition to taking a disciplinary action under
207-3 Subsection (a) of this section, the commission may deny, suspend,
207-4 or revoke a private beauty culture school license or place the
207-5 holder of the license on probation if the license holder, the
207-6 school, or a representative of the school gives a prospective
207-7 student information relating to the school that is false,
207-8 fraudulent, deceptive, substantially inaccurate, or misleading.
207-9 SECTION 5.21. Section 41, Chapter 1036, Acts of the 62nd
207-10 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
207-11 Civil Statutes), is amended by amending Subsection (a) and adding
207-12 Subsections (c) and (d) to read as follows:
207-13 (a) The commission shall keep an information file about each
207-14 complaint filed with the commission relating to a cosmetologist,
207-15 <or> cosmetology establishment, or private beauty culture school.
207-16 (c) The commission shall prepare information of public
207-17 interest describing the functions of the commission and the
207-18 procedures by which complaints are filed with and resolved by the
207-19 commission against a private beauty culture school. The commission
207-20 shall make the information available to the public and appropriate
207-21 state agencies.
207-22 (d) A private beauty culture school shall post on the
207-23 premises of the school at a prominent and conspicuous location the
207-24 name, mailing address, and telephone number of the commission for
207-25 the purpose of directing complaints to the commission.
207-26 SECTION 5.22. Chapter 1036, Acts of the 62nd Legislature,
207-27 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
208-1 Statutes), is amended by adding Sections 42 and 43 to read as
208-2 follows:
208-3 Sec. 42. ADVERTISING. (a) The commission may not adopt
208-4 rules that restrict advertising by a private beauty culture school
208-5 except to prohibit false, misleading, or deceptive advertising
208-6 practices. The rules may not restrict:
208-7 (1) the use of an advertising medium;
208-8 (2) the size or duration of an advertisement; or
208-9 (3) advertisement under a trade name.
208-10 (b) A school, the representative of a school, or a recruiter
208-11 for the school may not advertise or represent, in writing or
208-12 orally, that a school is approved or accredited by the state.
208-13 Those entities or persons may advertise that the school has been
208-14 licensed by the state.
208-15 (c) A school, representative of a school, or recruiter of a
208-16 school may not make or cause to be made a statement or
208-17 representation, written, oral, or visual, offering or publicizing a
208-18 course, program, or school, if the school, representative, or
208-19 solicitor knew or reasonably should have known that the statement
208-20 or representation was false, fraudulent, deceptive, substantially
208-21 inaccurate, or misleading.
208-22 Sec. 43. CRIMINAL PENALTY. (a) A person commits an offense
208-23 if the person fails to comply with Section 21 of this Act. Except
208-24 as provided by Subsection (b) of this section, an offense under
208-25 this section is a Class A misdemeanor.
208-26 (b) A person commits an offense if the person intentionally
208-27 or knowingly uses for personal benefit funds in an amount greater
209-1 than $10,000 that are due as student refunds under Section 21 of
209-2 this Act. An offense under this subsection is a felony of the
209-3 third degree.
209-4 SECTION 5.23. Section 21A, Chapter 1036, Acts of the 62nd
209-5 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
209-6 Civil Statutes), as added by S.B. No. 378, Acts of the 72nd
209-7 Legislature, Regular Session, 1991, is repealed.
209-8 PART 6. MISCELLANEOUS PROVISIONS
209-9 SECTION 6.01. Section 32.45(a), Penal Code, is amended to
209-10 read as follows:
209-11 (a) For purposes of this section:
209-12 (1) "Fiduciary" includes:
209-13 (A) a trustee, guardian, administrator,
209-14 executor, conservator, and receiver;
209-15 (B) a proprietary school, or its owner, that
209-16 receives payment for tuition, fees, or other charges, including
209-17 guaranteed student loans;
209-18 (C) any other person acting in a fiduciary
209-19 capacity, but not a commercial bailee; and
209-20 (D) <(C)> an officer, manager, employee, or
209-21 agent carrying on fiduciary functions on behalf of a fiduciary.
209-22 (2) "Misapply" means deal with property contrary to:
209-23 (A) an agreement under which the fiduciary holds
209-24 the property; or
209-25 (B) a law prescribing the custody or disposition
209-26 of the property.
209-27 (3) "Proprietary school" means any business enterprise
210-1 operated for a profit, or on a nonprofit basis, which maintains a
210-2 place of business within the State of Texas, or solicits business
210-3 within the State of Texas, and:
210-4 (A) which offers or maintains a course or
210-5 courses of instruction or study; or
210-6 (B) at which place of business such a course or
210-7 courses of instruction or study is available through classroom
210-8 instruction or by correspondence, or both, to a person or persons
210-9 for the purpose of training or preparing the person for a field of
210-10 endeavor in a business, trade, technical, or industrial occupation,
210-11 or for avocational or personal improvement.
210-12 SECTION 6.02. (a) The changes in law made by this Act apply
210-13 only to an offense committed on or after the effective date of this
210-14 Act. For purposes of this section, an offense is committed before
210-15 the effective date of this Act if any element of the offense occurs
210-16 before the effective date.
210-17 (b) An offense committed before the effective date of this
210-18 Act is covered by the law in effect when the offense was committed,
210-19 and the former law is continued in effect for this purpose.
210-20 SECTION 6.03. Except as otherwise provided by this Act, this
210-21 Act takes effect January 1, 1994.
210-22 SECTION 6.04. The importance of this legislation and the
210-23 crowded condition of the calendars in both houses create an
210-24 emergency and an imperative public necessity that the
210-25 constitutional rule requiring bills to be read on three several
210-26 days in each house be suspended, and this rule is hereby suspended,
210-27 and that this Act take effect and be in force according to its
211-1 terms, and it is so enacted.