By: Delco H.B. No. 1259
73R1724 CAS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation and operation of proprietary schools;
1-3 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. Sections 32.11(1) and (6), Education Code, are
1-12 amended to read as follows:
1-13 (1) "Proprietary School," referred to as "school,"
1-14 means any business enterprise operated for a profit, or on a
1-15 nonprofit basis, which maintains a place of business within the
1-16 State of Texas, or solicits business within the State of Texas, and
1-17 which is not specifically exempted by the provisions of this
1-18 Chapter and;
1-19 (A) which offers or maintains a program <course
1-20 or courses> of instruction <or study>; or
1-21 (B) at which place of business such a program
1-22 <course or courses> of instruction <or study> is available through
1-23 classroom instruction or by correspondence, or both, to a person or
1-24 persons for the purpose of training or preparing the person for a
2-1 field of endeavor in a business, trade, technical, or industrial
2-2 occupation, or for avocational or personal improvement, except as
2-3 hereinafter excluded.
2-4 (6) "Notice to the school" means written
2-5 correspondence sent to the address of record for legal service
2-6 contained in the application for a license to operate <certificate
2-7 of approval>. "Date of Notice" means the date the notice is mailed
2-8 by the administrator.
2-9 SECTION 1.03. Section 32.12, Education Code, is amended to
2-10 read as follows:
2-11 Sec. 32.12. EXEMPTIONS. (a) The following schools or
2-12 educational institutions are specifically exempt from the
2-13 provisions of this chapter and are not within the definition of
2-14 "proprietary school":
2-15 (1) a school or educational institution supported by
2-16 taxation from either a local or State source;
2-17 (2) nonprofit schools owned, controlled, operated, and
2-18 conducted by bona fide religious, denominational, or eleemosynary<,
2-19 or similar public> institutions exempt from property taxation under
2-20 the laws of this State, but such schools may choose to apply for a
2-21 license to operate <certificate of approval> hereunder, and upon
2-22 <approval and> issuance, shall be subject to the provisions of this
2-23 chapter as determined by the administrator;
2-24 (3) a school or training program which offers
2-25 instruction of purely avocational or recreational subjects as
2-26 determined by the administrator;
2-27 (4) a program <course or courses> of instruction <or
3-1 study> sponsored by an employer for the training and preparation of
3-2 its own employees, and for which no tuition fee is charged to the
3-3 student;
3-4 (5) a program <course or courses> of <study or>
3-5 instruction sponsored by a recognized trade, business, or
3-6 professional organization for the instruction of the members of the
3-7 organization with a closed membership;
3-8 (6) private colleges or universities which award a
3-9 recognized baccalaureate, or higher degree, and which maintain and
3-10 operate educational programs for which a majority of the credits
3-11 given are transferable to a college, junior college, or university
3-12 supported entirely or partly by taxation from either a local or
3-13 State source;
3-14 (7) a school which is otherwise regulated and approved
3-15 under and pursuant to any other law of the State, except as
3-16 provided by Subsection (c) of this section;
3-17 (8) aviation schools or instructors approved by and
3-18 under the supervision of the Federal Aviation Administration;
3-19 (9) a school which offers intensive review courses
3-20 designed to prepare students for certified public accountancy
3-21 tests, <public accountancy tests,> law school aptitude tests, bar
3-22 examinations, or medical college admissions tests; and<.>
3-23 (10) schools <(b) Schools> offering a program <course
3-24 or courses> of special <study or> instruction financed <and/>or
3-25 subsidized by local, state or federal funds or any person, firm,
3-26 association, or agency other than the student involved, on a
3-27 contract basis and having a closed enrollment that applies <may
4-1 apply> to the Administrator for exemption <of such course or
4-2 courses from the provisions of this Chapter> and that <such course
4-3 or courses may be declared exempt by> the Administrator declares
4-4 exempt because the program is <where he finds the course or courses
4-5 to be> outside the purview of this Chapter.
4-6 (b) <(c)> If a State agency that issues a license or other
4-7 authorization for the practice of an occupation elects not to
4-8 regulate or approve subject <course> hours that exceed the minimum
4-9 education requirements for the issuance of the license or other
4-10 authorization, the licensing agency shall enter into a memorandum
4-11 of understanding with the Central Education Agency for the
4-12 regulation of those excess subject <course> hours under this
4-13 chapter. Any course taught under a letter of approval or other
4-14 written authorization issued by the licensing agency before the
4-15 effective date of the memorandum is authorized under State law
4-16 until the program <course> is reviewed by the Central Education
4-17 Agency. The licensing agency may terminate the memorandum of
4-18 understanding on notice to the Central Education Agency.
4-19 SECTION 1.04. Section 32.21(b), Education Code, is amended
4-20 to read as follows:
4-21 (b) The Central Education Agency shall prepare a comparison
4-22 of the cost to a student of <courses of instruction or training>
4-23 programs at proprietary schools to the cost to a student of similar
4-24 <courses or> programs at schools that are exempt from this chapter
4-25 under Section 32.12 of this code.
4-26 SECTION 1.05. Section 32.23(c), Education Code, is amended
4-27 to read as follows:
5-1 (c) The commission shall meet regularly in Austin once each
5-2 month during the months of March, July, and November at a time and
5-3 on a date designated by the chair <at 10:00 a.m. on the second
5-4 Tuesday of January, May, and September>, and shall conduct special
5-5 meetings at the call of the chair, the administrator, or upon the
5-6 written petition of at least four members of the commission.
5-7 SECTION 1.06. Section 32.24(a), Education Code, is amended
5-8 to read as follows:
5-9 (a) The administrator shall carry out the policies of this
5-10 chapter and enforce the rules and regulations adopted by the State
5-11 Board of Education. He shall also certify the names of those
5-12 schools meeting the requirements for a license to operate
5-13 <certificate of approval>.
5-14 SECTION 1.07. Section 32.31, Education Code, is amended to
5-15 read as follows:
5-16 Sec. 32.31. LICENSE TO OPERATE <CERTIFICATE OF APPROVAL>.
5-17 (a) A school may not maintain, advertise, solicit for, or conduct
5-18 any program <course> of instruction in Texas before the later of:
5-19 (1) the 30th day after the date the school applies for
5-20 a license to operate <certificate of approval> under this chapter;
5-21 or
5-22 (2) the date the school receives a license to operate
5-23 <certificate of approval> from the administrator.
5-24 (b) Any contract entered into with any person for a program
5-25 <course> of instruction after the effective date of this chapter by
5-26 or on behalf of any person operating any school to which a license
5-27 to operate <certificate of approval> has not been issued pursuant
6-1 to the provisions of this chapter, shall be unenforceable in any
6-2 action brought thereon.
6-3 SECTION 1.08. Section 32.32, Education Code, is amended to
6-4 read as follows:
6-5 Sec. 32.32. APPLICATION FOR License to Operate <Certificate
6-6 of Approval>. (a) Every proprietary school desiring to operate in
6-7 the State of Texas or do business in the State shall make written
6-8 application to the administrator for a license to operate
6-9 <certificate of approval>. Such application shall be verified, be
6-10 in such form as may be prescribed by the State Board of Education,
6-11 and shall furnish the administrator such information as he may
6-12 require. The application must include a statement of any final
6-13 convictions of the owners, school directors, recruiters,
6-14 instructional faculty, or other selected personnel of the school as
6-15 determined by the administrator. The administrator may obtain
6-16 criminal history records of school directors or instructional
6-17 faculty from any law enforcement agency, including the United
6-18 States Department of Justice, the Department of Public Safety of
6-19 the State of Texas, the Texas Department of Criminal Justice, or
6-20 the police department of a municipality.
6-21 (b) The State Board of Education may adopt rules providing
6-22 for the issuance of various classes of licenses based on the number
6-23 of students attending the school. The license classifications may
6-24 allow for stricter regulation and greater frequency of inspection
6-25 of large schools, as defined by board rule, and for limited
6-26 regulation of small schools, as defined by board rule.
6-27 (c) The administrator may not use the word "approval" or a
7-1 variation of that term on the license of a school. The terminology
7-2 must be "licensed" to operate, or a variation of that phrase.
7-3 SECTION 1.09. Section 32.33, Education Code, is amended to
7-4 read as follows:
7-5 Sec. 32.33. Criteria. Except for a school or program
7-6 intended to prepare a student for a course, school, or program
7-7 listed in Section 32.331 of this code, the <The> administrator may
7-8 approve the application of such proprietary school when the school
7-9 is found, upon investigation at the premises of the school, to have
7-10 met the following criteria:
7-11 (a) The subjects <courses>, programs <curriculum>, and
7-12 instruction are of such quality, content, and length as may
7-13 reasonably and adequately achieve the stated objective for which
7-14 the subjects <courses>, programs, <curriculum> or instruction are
7-15 offered.
7-16 (b) There is in the school adequate space, equipment,
7-17 instructional material and instructor personnel to provide training
7-18 of good quality.
7-19 (c) Educational and experience qualifications of
7-20 directors, administrators and instructors are adequate.
7-21 (d) The school maintains a written record of the
7-22 previous education and training of the applicant student and
7-23 clearly indicates that appropriate credit has been given by the
7-24 school for previous education and training, with the new training
7-25 period shortened where warranted through use of appropriate skills
7-26 or achievement tests and the student so notified.
7-27 (e) A copy of the program <course> outline; schedule
8-1 of tuition, fees, refund policy, and other charges; regulations
8-2 pertaining to absence, grading policy, and rules of operation and
8-3 conduct; regulations pertaining to incomplete grades; the name,
8-4 mailing address, and telephone number of the Central Education
8-5 Agency for the purpose of directing complaints to the agency; the
8-6 current rates of job placement and employment of students issued a
8-7 certificate of completion; and notification of the availability of
8-8 the cost comparison information prepared under Section 32.21(b) of
8-9 this code through the Central Education Agency will be furnished
8-10 the student prior to enrollment.
8-11 (f) Except as provided by Section 32.40 of this code,
8-12 on completion of training, the student is given a certificate by
8-13 the school indicating the program <course> and that training was
8-14 satisfactorily completed.
8-15 (g) Adequate records as prescribed by the
8-16 administrator are kept to show attendance and progress or grades,
8-17 and satisfactory standards relating to attendance, progress and
8-18 conduct are enforced.
8-19 (h) The school complies with all local, city, county,
8-20 municipal, state and federal regulations<, such as fire, building
8-21 and sanitation codes>. The administrator may require such evidence
8-22 of compliance as is deemed necessary.
8-23 (i) The school is financially sound and capable of
8-24 fulfilling its commitments for training.
8-25 (j) The school's administrators, directors, owners,
8-26 and instructors are of good reputation and character.
8-27 (k) The school has, maintains and publishes in its
9-1 catalogue and enrollment contract, the proper policy for the refund
9-2 of the unused portion of tuition, fees and other charges in the
9-3 event the student enrolled by the school fails to take the program
9-4 <course> or withdraws or is discontinued therefrom at any time
9-5 prior to completion.
9-6 (l) The school does not utilize erroneous or
9-7 misleading advertising, either by actual statement, omission, or
9-8 intimation as determined by the State Board of Education.
9-9 (m) Such additional criteria as may be required by the
9-10 State Board of Education.
9-11 (n) The school does not use a name like or similar to
9-12 an existing tax supported school in the same area.
9-13 (o) The school furnishes to the Central Education
9-14 Agency the current rates of students who receive a certificate of
9-15 completion and of job placement and employment of students issued a
9-16 certificate of completion.
9-17 (p) The school furnishes to the Central Education
9-18 Agency for approval or disapproval student admission requirements
9-19 for each course or program offered by the school.
9-20 (q) The school furnishes to the Central Education
9-21 Agency for approval or disapproval the program <course> hour
9-22 lengths and curriculum content for each program <course> offered by
9-23 the school.
9-24 (r) The school does not owe a civil penalty under
9-25 Section 32.611 of this code.
9-26 SECTION 1.10. Subchapter D, Chapter 32, Education Code, is
9-27 amended by adding Section 32.331 to read as follows:
10-1 Sec. 32.331. TEST PREPARATION PROGRAMS FOR HIGHER EDUCATION
10-2 ENTRANCE; PROFESSIONAL AND OCCUPATIONAL LICENSING; AND SHORT
10-3 COURSES. Test preparation courses, programs, or schools intended
10-4 to prepare students for undergraduate, graduate, or postgraduate
10-5 higher education, professional licensing and occupational entrance
10-6 examinations, and short courses not exceeding 40 hours in length
10-7 may be licensed by the administrator on the administrator's
10-8 determination that the applicant has met the following criteria:
10-9 (1) the school must be educationally sufficient;
10-10 (2) instructors of the school must have the necessary
10-11 educational qualifications;
10-12 (3) the school must be fiscally sound and have the
10-13 necessary assets to offer the programs; and
10-14 (4) the school must comply with other rules and
10-15 regulations the administrator may prescribe.
10-16 SECTION 1.11. Sections 32.34(a)-(e), Education Code, are
10-17 amended to read as follows:
10-18 (a) The administrator, upon review of an application for a
10-19 license to operate <certificate of approval> duly submitted in
10-20 accordance with the provisions of Section 32.32 and meeting the
10-21 requirements of Section 32.33 of this code <chapter>, shall issue a
10-22 license to operate <certificate of approval> to the applicant
10-23 school. The license to operate <certificate of approval> shall be
10-24 in a form recommended by the commission and approved by the State
10-25 Board of Education and shall state in a clear and conspicuous
10-26 manner at least the following information:
10-27 (1) date of issuance, effective date, and term of
11-1 licensing <approval>;
11-2 (2) correct name and address of the school;
11-3 (3) authority for the license <approval> and
11-4 conditions of licensing <approval>, if any, referring specifically
11-5 to the <approved> catalogue or bulletin published by the school;
11-6 (4) signature of the administrator or such person as
11-7 may have been designated by him to administer the provisions of
11-8 this chapter; and
11-9 (5) any other fair and reasonable representations that
11-10 are consistent with this chapter and deemed necessary by the
11-11 administrator.
11-12 (b) The term for which a license to operate <certificate of
11-13 approval> shall be issued shall not exceed one year.
11-14 (c) The license to operate <certificate of approval> shall
11-15 be issued to the owner of the applicant school and shall be
11-16 nontransferable. In the event of a change in ownership of the
11-17 school, a new owner must, at least 60 <thirty (30)> days prior to
11-18 the change in ownership, apply for a new license to operate
11-19 <certificate of approval>.
11-20 (d) At least 60 <thirty (30)> days prior to expiration of a
11-21 license to operate <certificate of approval>, the school shall
11-22 forward to the administrator an application for renewal. The
11-23 administrator shall reexamine the school at the premises of the
11-24 school and either renew or cancel the school's license to operate
11-25 <certificate of approval>. If a school fails to file a complete
11-26 application for renewal at least 60 <thirty (30)> days before the
11-27 expiration date of the license to operate <certificate of
12-1 approval>, the school, as a condition of renewal, must pay, in
12-2 addition to the annual renewal fee, a late renewal fee in an amount
12-3 established by State Board of Education rule of at least $100.
12-4 (e) A school not yet in operation when its application for
12-5 license to operate <certificate of approval> is filed may not begin
12-6 operation until receipt of the license to operate <certificate of
12-7 approval>.
12-8 SECTION 1.12. Section 32.35, Education Code, is amended to
12-9 read as follows:
12-10 Sec. 32.35. Denial of License to Operate <Certificate of
12-11 Approval>. (a) If the administrator, upon review and
12-12 consideration of an application for license to operate <certificate
12-13 of approval>, shall determine the applicant to be unacceptable, the
12-14 administrator shall set forth the reasons for denial, in writing,
12-15 to the applicant.
12-16 (b) Any applicant whose application for a license to operate
12-17 <certificate of approval> is denied shall have the right of appeal
12-18 under Subchapter E of this chapter.
12-19 SECTION 1.13. Section 32.36, Education Code, is amended to
12-20 read as follows:
12-21 Sec. 32.36. Revocation of License to Operate <Certificate of
12-22 Approval>. (a) The Administrator may revoke an issued license to
12-23 operate <certificate of approval> or place reasonable conditions
12-24 upon <the> continued licensing <approval represented by the
12-25 certificate>. Prior to revocation or imposition of conditions upon
12-26 a license to operate <certificate of approval>, the Administrator
12-27 shall notify the holder of the license <certificate>, in writing,
13-1 of the impending action and set forth the grounds for the action.
13-2 The Administrator may reexamine a school two or more times during
13-3 each year in which a notice relating to the school has been issued
13-4 or conditions have been imposed on the school under this
13-5 subsection.
13-6 (b) A license to operate <certificate of approval> may be
13-7 revoked or made conditional if the Administrator has reasonable
13-8 cause to believe that the school is guilty of a violation of this
13-9 chapter or of any rules and regulations promulgated hereunder.
13-10 (c) The Administrator may deny, suspend, or revoke a license
13-11 to operate or place the school on probation if the school or a
13-12 representative of the school gives a prospective student
13-13 information relating to the school that is false, fraudulent,
13-14 deceptive, substantially inaccurate, or misleading.
13-15 (d) A holder of a license revoked or made conditional under
13-16 this section may appeal the revocation or imposition of conditions
13-17 decision under Subchapter E of this chapter.
13-18 SECTION 1.14. Section 32.37(c), Education Code, is amended
13-19 to read as follows:
13-20 (c) Denial or revocation of registration of a representative
13-21 by the administrator shall be in accordance with the provisions of
13-22 this chapter applicable to denial or revocation of a license to
13-23 operate <certificate of approval>; provided, however, the
13-24 administrator may deny, suspend or revoke the registration of a
13-25 representative who has been convicted of a felony, whether within
13-26 or without the State of Texas.
13-27 SECTION 1.15. Section 32.39, Education Code, is amended by
14-1 amending Subsections (a), (b), (c), (d), and (e) and adding
14-2 Subsections (g), (h), and (i) to read as follows:
14-3 (a) As a condition for granting a license to operate
14-4 <certification> each school must maintain a cancellation and
14-5 settlement policy which must provide a full refund of all monies
14-6 paid by a student if:
14-7 (1) the student cancels the enrollment agreement or
14-8 contract within 72 hours (until midnight of the third day excluding
14-9 Saturdays, Sundays, and legal holidays) after the enrollment
14-10 contract is signed by the prospective student;
14-11 (2) the enrollment of the student was procured as the
14-12 result of any misrepresentation in advertising, promotional
14-13 materials of the school, or representations by the owner or
14-14 representatives of the school.
14-15 (b) As a condition for granting a license <certification>,
14-16 each school must maintain a policy for the refund of the unused
14-17 portion of tuition, fees, and other charges in the event the
14-18 student, after expiration of the 72-hour cancellation privilege
14-19 terminates enrollment or is terminated by the school, as provided
14-20 by this subsection, <fails to enter the course, or withdraws, or is
14-21 discontinued therefrom at any time prior to completion,> and such
14-22 policy must provide:
14-23 (1) refunds for resident programs <courses> will be
14-24 based on the period of enrollment computed on the basis of program
14-25 <course> time expressed in clock hours;
14-26 (2) the effective date of the termination for payment
14-27 of a refund <refund purposes> in residence schools will be the
15-1 earliest of the following:
15-2 (A) the last date of attendance, if the student
15-3 is terminated for failure to satisfy a school attendance, grade, or
15-4 work requirement <by the school>;
15-5 (B) the date of receipt of written notice from
15-6 the student;
15-7 (C) the 10th consecutive school day the student
15-8 has been absent, unless any of the absences are excused by the
15-9 school <ten school days following the last date of attendance>; or
15-10 (D) the date the student fails to return, as
15-11 scheduled, from a leave of absence;
15-12 (3) if tuition and fees are <is> collected in advance
15-13 of entrance, and if, after expiration of the 72-hour cancellation
15-14 privilege, the student does not enter the residence school, not
15-15 more than $100 shall be retained by the school;
15-16 (4) for the student who enters a residence program
15-17 <course> of not more than 12 months in length, terminates or
15-18 withdraws, the school may retain $100 of tuition and fees and the
15-19 minimum refund of the remaining tuition and fees will be:
15-20 (A) during the first week or one-tenth of the
15-21 program <course>, whichever is less, 90 percent of the remaining
15-22 tuition and fees;
15-23 (B) after the first week or one-tenth of the
15-24 program <course>, whichever is less, but within the first three
15-25 weeks of the program <course>, 80 percent of the remaining tuition
15-26 and fees;
15-27 (C) after the first three weeks of the program
16-1 <course>, but within the first quarter of the program <course>, 75
16-2 percent of the remaining tuition and fees;
16-3 (D) during the second quarter of the program
16-4 <course>, 50 percent of the remaining tuition and fees;
16-5 (E) during the third quarter of the program
16-6 <course>, 10 percent of the remaining tuition and fees;
16-7 (F) during the last quarter of the program
16-8 <course>, the student may be considered obligated for the full
16-9 tuition and fees;
16-10 (5) for residence programs <courses> more than 12
16-11 months in length, the refund shall be applied to each 12-month
16-12 period, or part thereof separately, in the manner provided by
16-13 Subsection (b)(4) of this section;
16-14 (6) refunds of items of extra expense to the student,
16-15 such as instructional supplies, books, student activities,
16-16 laboratory fees, service charges, rentals, deposits, and all other
16-17 such ancillary miscellaneous charges, where these items are
16-18 separately stated and shown in the data furnished the student
16-19 before enrollment, will be made in a reasonable manner acceptable
16-20 to the administrator;
16-21 (7) refunds based on enrollment in residence schools
16-22 will be totally consummated within 60 <30> days after the effective
16-23 date of termination, as determined under Subdivision (2) of this
16-24 subsection;
16-25 (8) refunds for correspondence programs <courses> will
16-26 be computed on the basis of the number of lessons in the program
16-27 <course>;
17-1 (9) the effective date of the termination for refund
17-2 purposes in correspondence programs <courses> will be the earliest
17-3 of the following:
17-4 (A) the date of notification to the student if
17-5 the student is terminated;
17-6 (B) the date of receipt of written notice from
17-7 the student;
17-8 (C) the end of the third calendar month
17-9 following the month in which the student's last lesson assignment
17-10 was received unless notification has been received from the student
17-11 that he wishes to remain enrolled;
17-12 (10) if tuition and fees are <is> collected before any
17-13 lessons have been completed, and if, after expiration of the
17-14 72-hour cancellation privilege, the student fails to begin the
17-15 program <course>, not more than $50 shall be retained by the
17-16 school;
17-17 (11) in cases of termination or withdrawal after the
17-18 student has begun the correspondence program <course>, the school
17-19 may retain $50 of tuition and fees, and the minimum refund policy
17-20 must provide that the student will be refunded the pro rata portion
17-21 of the remaining tuition fees and other charges that the number of
17-22 lessons completed and serviced by the school bears to the total
17-23 number of lessons in the program <course>;
17-24 (12) refunds based on enrollment in correspondence
17-25 schools will be totally consummated within 60 <30> days after the
17-26 effective date of termination, as determined under Subdivision (9)
17-27 of this subsection.
18-1 (c) In lieu of the refund policy herein set forth, <for
18-2 programs of instruction not regularly offered to the general
18-3 public,> the State Board of Education may, for good cause shown,
18-4 amend, modify, substitute and/or alter the terms of such policy due
18-5 to the specialized nature and objective of the subject school's
18-6 program <course> of instruction, including authorizing a refund on
18-7 a pro rata basis or the elimination of the 72-hour cancellation
18-8 privilege provided by Subsection (a) of this section, for a program
18-9 conducted for 40 or fewer hours, such as a seminar or workshop.
18-10 (d) If a program <course of instruction> is discontinued by
18-11 the school and this prevents the student from completing the
18-12 program <course>, all tuition and fees paid are <then> due and
18-13 refundable.
18-14 (e) If a refund is not made within the period required by
18-15 this section, the school shall pay, as a penalty, interest on the
18-16 refund for the interval beginning with the first day following the
18-17 expiration of the refund period and ending with the day immediately
18-18 preceding the date the refund is made. If the refund is made to a
18-19 lending institution, the interest shall also be paid to that
18-20 institution and applied against the student's loan. The
18-21 commissioner of education annually shall establish the level of
18-22 interest at a level sufficient to provide a deterrent to the
18-23 retention of student funds. The Central Education Agency may
18-24 exempt a school from the payment of the interest if the school
18-25 makes a good faith effort to refund the tuition but is unable to
18-26 locate the student. The school shall provide to the agency on
18-27 request documentation of the effort to locate the student.
19-1 (g) Refunds under this section shall be applied:
19-2 (1) first, to the repayment of student loans;
19-3 (2) second, to the repayment of other government
19-4 loans;
19-5 (3) third, to the repayment of other financial loans;
19-6 and
19-7 (4) last, to the student's personal tuitional
19-8 expenditures.
19-9 (h) Not later than the 30th day after the date on which a
19-10 refund is due to a student who has received a student loan, the
19-11 school shall notify the guaranty agency and the lender of the
19-12 required refund and any refund previously made. The guaranty
19-13 agency and the lender shall notify the student and the school if
19-14 the student's loan has been transferred to another holder.
19-15 (i) The failure of a school or a person to pay a tuition and
19-16 fees refund as required by this section is a deceptive trade
19-17 practice under Subchapter E, Chapter 17, Business & Commerce Code.
19-18 SECTION 1.16. Subchapter D, Chapter 32, Education Code, is
19-19 amended by adding Sections 32.402-32.4014 to read as follows:
19-20 Sec. 32.402. CONSUMER INFORMATION. (a) A school must
19-21 submit to the administrator for approval, on an annual basis, a
19-22 school catalog or comparable written documents detailing the
19-23 consumer information that must be given to a prospective student
19-24 before enrollment. The school catalog or document must include:
19-25 (1) the name and address of the school and the
19-26 school's governing body and officials;
19-27 (2) a calendar of the school year;
20-1 (3) school policies on enrollment;
20-2 (4) rules relating to absences;
20-3 (5) the school grading policy;
20-4 (6) the school's hours of operation and rules of
20-5 conduct;
20-6 (7) a schedule of the tuition and other fees assessed;
20-7 (8) the school's cancellation and refund policy;
20-8 (9) a general description of the programs offered;
20-9 (10) information on entrance testing and remedial
20-10 development plans;
20-11 (11) state licensing requirements for programs
20-12 intended to result in licensing of the student;
20-13 (12) starting range and reported average salaries for
20-14 the prior year's graduates in occupations for which programs are
20-15 offered, if the information is available;
20-16 (13) the current rates of job placement and employment
20-17 of students who complete a program;
20-18 (14) the school policy on credit for previous
20-19 education and training;
20-20 (15) school regulations relating to incomplete grades;
20-21 (16) information on the transferability of credits
20-22 earned;
20-23 (17) the name, mailing address, and telephone number
20-24 of the administrator for the purpose of directing complaints to the
20-25 administrator and the mechanism and procedures for resolving
20-26 grievances submitted to the administrator;
20-27 (18) a statement that the administrator has
21-1 information on cost comparison with similar schools;
21-2 (19) market and job availability information, if
21-3 available;
21-4 (20) the names of the members of any advisory council
21-5 of the school and the company for which they work; and
21-6 (21) other information required by the administrator
21-7 if reasonable notice has been given by the administrator to the
21-8 school of the additional requirements.
21-9 (b) A prospective student must receive the catalog or
21-10 comparable written documents at a time and in a manner that provide
21-11 the student with sufficient opportunity to read the catalog before
21-12 signing an enrollment contract and before the school accepts the
21-13 student in a program.
21-14 (c) A student must sign a receipt stating that:
21-15 (1) the catalog was received by the student before any
21-16 commitment made by the student to the school or by the school to
21-17 the student;
21-18 (2) the student was given an opportunity to discuss
21-19 the catalog with a representative of the school; and
21-20 (3) the student understands the contents and
21-21 implications of the catalog.
21-22 (d) The receipt required by Subsection (c) of this section
21-23 must be placed in the student's permanent school file, and a copy
21-24 of the receipt must be delivered to the student.
21-25 Sec. 32.403. PROGRAM LENGTH AND CURRICULUM. (a) A school
21-26 must submit to the administrator for approval the program lengths
21-27 and curriculum content for each program offered by the school. The
22-1 program lengths and content may not be implemented unless the
22-2 administrator approves them. The program lengths and content shall
22-3 reasonably ensure that students develop the job skills and
22-4 knowledge necessary for employment.
22-5 (b) The administrator shall require a school to fully
22-6 account for all curriculum contents and program lengths before
22-7 issuing or renewing a license to operate, and a school that is
22-8 offering program lengths below or above industry standards may be
22-9 issued a conditional license to operate.
22-10 Sec. 32.404. COMPLETION, EMPLOYMENT, AND PLACEMENT. (a)
22-11 The administrator shall set and enforce minimum standards for
22-12 completion and employment rates of programs, based on collected
22-13 data.
22-14 (b) In determining whether to renew a license to operate,
22-15 the administrator shall consider the completion, placement, and
22-16 employment rates of students of the programs.
22-17 (c) Before a school may begin offering a new program for
22-18 students, the school must show the administrator the opportunity
22-19 for jobs for graduates of the program and the possibility of
22-20 placement or employment.
22-21 (d) Before the administrator issues or renews a license to
22-22 operate involving a school that offers or advertises a placement
22-23 service, the administrator may require the school to file a
22-24 certified copy of the school's placement records for the previous
22-25 year.
22-26 Sec. 32.405. ON-SITE INSPECTIONS. (a) The administrator
22-27 shall conduct on-site inspections of a school to determine the
23-1 normal operating conditions of the school.
23-2 (b) The inspection required by Subsection (a) of this
23-3 section shall be unannounced.
23-4 (c) The administrator may inspect such things as the
23-5 instructional books and records, classrooms, dormitories, tools,
23-6 equipment, and classes of a school or an applicant for a license to
23-7 operate at any reasonable time.
23-8 Sec. 32.406. LICENSING REQUIREMENTS DISCLOSURE. (a) A
23-9 school must disclose to all prospective students state licensing
23-10 requirements to practice the occupation for which the student is
23-11 training.
23-12 (b) A school must disclose to all prospective students the
23-13 performance of graduates from the school on any licensing
23-14 examination if that information is available.
23-15 Sec. 32.407. ENTRANCE REQUIREMENTS; MINIMUM SKILLS TEST.
23-16 (a) The administrator shall approve entrance requirements,
23-17 including minimum skills testing, for students who may be accepted
23-18 for a program in a school. The requirements must be specific and
23-19 provide that students who are allowed to enter a program will have
23-20 a reasonable chance of completing the program.
23-21 (b) The school shall administer a standardized test to
23-22 students with a high school diploma or high school equivalency
23-23 certificate entering the school, if testing for minimal skill
23-24 competency is determined by the administrator as appropriate and
23-25 necessary to determine if remediation is needed. The test must be
23-26 administered before enrollment and must be nationally recognized as
23-27 appropriate and effective for minimum skills testing and high
24-1 school equivalency. If the test reveals the necessity for
24-2 remediation, the school must implement a plan to encourage the
24-3 student to improve in basic general education skills.
24-4 (c) A student must achieve a successful score on the test
24-5 required by this section before the student is obligated for
24-6 tuition and fees for the vocational portion of the school's
24-7 program.
24-8 (d) The school may, in accordance with federal statutory
24-9 provisions affecting guaranteed student loan programs, on a
24-10 case-by-case basis, refuse to provide the certification statements
24-11 required for guaranteed student loan eligibility, or reduce the
24-12 determination of need for a guaranteed student loan if the school
24-13 determines that the student's expenses to be covered by the loan
24-14 and the estimated cost of attendance, can be met more appropriately
24-15 by the school, directly by the student, or by other sources.
24-16 Sec. 32.408. STUDENTS IN NEED OF REMEDIAL HELP. (a) An
24-17 applicant without a high school diploma or high school equivalency
24-18 certificate must pass an entrance test approved by the
24-19 administrator and be considered to have the ability to benefit from
24-20 the school before the school may enroll the student.
24-21 (b) A school that admits a student who does not have a high
24-22 school diploma or high school equivalency certificate must develop
24-23 and implement a plan for counseling the student on curriculum,
24-24 student aid, employment opportunities, and the remediation
24-25 necessary for the student to obtain a high school equivalency
24-26 certificate and improve in basic general education skills.
24-27 (c) The school must assist the student in obtaining the
25-1 remediation necessary for the student to pass a standardized
25-2 minimum skills equivalency test, approved by the administrator, and
25-3 the student must pass the test before entering the final quarter of
25-4 the program.
25-5 Sec. 32.409. ENROLLMENT POLICIES. (a) The enrollment
25-6 contract of a school must contain:
25-7 (1) a disclosure that the contract is a legally
25-8 binding instrument on written acceptance of the student by the
25-9 school, unless canceled as provided by law;
25-10 (2) the school's cancellation and refund policy;
25-11 (3) the method of cancellation of the contract, the
25-12 effective date of any cancellation, and the name and address to
25-13 which the notice of cancellation should be sent or delivered;
25-14 (4) the total cost of the program, including tuition
25-15 and all other charges;
25-16 (5) a notification that the fair market value of
25-17 equipment or supplies furnished to the student that the student
25-18 fails to return in a condition suitable for resale not later than
25-19 the 10th business day after the date of cancellation may be
25-20 retained by the school and deducted from any refund of the student;
25-21 (6) a statement that if a student's enrollment is
25-22 canceled for any reason, the school will notify an agency known to
25-23 the school to be providing financial aid to the student of the
25-24 cancellation not later than the 30th day after the date of
25-25 cancellation;
25-26 (7) the name of the programs, including the number of
25-27 hours of classroom instruction or home study lessons; and
26-1 (8) the Federal Trade Commission statement for a
26-2 holder in due course.
26-3 (b) An enrollment contract may not contain a wage assignment
26-4 provision or a confession of judgment clause.
26-5 (c) Immediately after a prospective student has signed an
26-6 enrollment contract, the school shall give the prospective student
26-7 a copy of the contract, and a copy shall be placed in the student's
26-8 permanent school file.
26-9 (d) A promissory note signed by a student must include the
26-10 Federal Trade Commission statement required for a holder in due
26-11 course.
26-12 Sec. 32.4010. LOAN COUNSELING. (a) A school shall conduct
26-13 loan counseling entrance interviews with each prospective student
26-14 seeking a loan during the enrollment process. A student borrower
26-15 shall be counseled before the initial disbursement of loan
26-16 proceeds, shortly before the student completes one-half of the
26-17 program, and before the student is issued a certificate of
26-18 completion.
26-19 (b) The school's financial aid officer or counselor shall
26-20 conduct the interviews required by Subsection (a) of this section.
26-21 The interview must include a discussion of:
26-22 (1) the rights and responsibilities of the student as
26-23 a borrower;
26-24 (2) what a loan is and the importance of repayment;
26-25 (3) the total cost of the program in which the student
26-26 will be enrolled;
26-27 (4) the availability of other forms of financial aid,
27-1 grants, and part-time work;
27-2 (5) the starting range and average reported salaries
27-3 of those in the occupation for which the student will be trained,
27-4 if available; and
27-5 (6) job placement services provided by the school and
27-6 the employment rate of persons who attended the school and were
27-7 enrolled in the program in which the student is enrolled.
27-8 (c) A school approved to accept state or federal educational
27-9 loans or grants shall adopt, in addition to the provisions in this
27-10 section, measures to reduce defaults and improve borrowers
27-11 understanding and respect for the loan repayment obligation as
27-12 provided in 34 C.F.R., Parts 668 and 682.
27-13 (d) The school must give a copy of the Texas Guaranteed
27-14 Student Loan Corporation's "Your Future" guide, or a comparable
27-15 document, approved by the administrator, to a prospective student
27-16 at a time and in a manner that provides the student with sufficient
27-17 opportunity to read the guide or other document and discuss the
27-18 contents with the school's financial aid officer, if necessary for
27-19 understanding and clarity, before signing an enrollment contract
27-20 and before the school accepts the student in a program.
27-21 (e) The prospective student must sign a document stating
27-22 that the student:
27-23 (1) attended a loan counseling entrance interview; and
27-24 (2) received a copy of the "Your Future" guide or
27-25 comparable document in the time provided by Subsection (d) of this
27-26 section.
27-27 (f) A copy of the signed document required by Subsection (e)
28-1 of this section must be sent to the student, guarantor, and lender
28-2 and must be placed in the student's permanent school file.
28-3 Sec. 32.4011. RECORDS. (a) A school shall maintain
28-4 permanent records for all students enrolled, as required by the
28-5 administrator.
28-6 (b) A school shall adopt a plan to preserve permanent
28-7 records and submit the plan to the administrator for approval. The
28-8 plan must:
28-9 (1) provide that at least one copy of the records will
28-10 be held in a secure depository; and
28-11 (2) designate an appropriate official to provide a
28-12 student with copies of records or transcripts on request.
28-13 (c) The school shall make the first copy of records or
28-14 transcripts at no charge to the student. The school may make a
28-15 reasonable charge to provide additional copies of records,
28-16 transcripts, or other student information.
28-17 (d) If a school closes, the records become the property of
28-18 the state.
28-19 Sec. 32.4012. DISPLAY OF LICENSE TO OPERATE; COMPLAINTS.
28-20 (a) A holder of a license to operate issued under this chapter
28-21 shall display the license in a conspicuous place at the premises of
28-22 the school.
28-23 (b) A school that has received a license to operate under
28-24 this chapter shall post on the premises of the school at a
28-25 prominent and conspicuous location the name, mailing address, and
28-26 telephone number of the administrator for the purpose of directing
28-27 complaints to the administrator.
29-1 Sec. 32.4013. FINANCIAL STABILITY. (a) A school may not
29-2 reflect unearned tuition as a current asset unless the amount shown
29-3 in current assets that reflects unearned tuition is offset by an
29-4 equal amount shown as a current liability. The school must meet
29-5 one of the following criteria in order to be determined as
29-6 financially sound and capable of fulfilling its commitments for
29-7 training:
29-8 (1) current assets must bear a relationship to current
29-9 liabilities in a ratio of at least one-to-one;
29-10 (2) the equity of the owner of the school must be in
29-11 excess of $10,000,000; or
29-12 (3) the school must have posted, or set aside in a
29-13 dedicated escrow account, a bond, certificate of deposit,
29-14 irrevocable letter of credit, or comparable security, acceptable to
29-15 the administrator, each made payable to the State of Texas, in an
29-16 amount sufficient to cover the school's record storage costs,
29-17 teachout, and tuition and fees refund and recovery exposure based
29-18 on the evidence the school submits proving its projected maximum
29-19 total unearned tuition during the period covered by the evidence of
29-20 indebtedness to the State.
29-21 (b) The school must demonstrate to the satisfaction of the
29-22 administrator its financial soundness and ability to fulfill its
29-23 commitments for training.
29-24 Sec. 32.4014. COMPLAINTS. The administrator shall prepare
29-25 information of public interest describing the functions of the
29-26 agency and the procedures by which complaints are filed with and
29-27 resolved by the administrator against a proprietary school. The
30-1 agency shall make the information available to the public, to the
30-2 appropriate state agencies, and to the schools.
30-3 SECTION 1.17. Section 32.41, Education Code, is amended to
30-4 read as follows:
30-5 Sec. 32.41. Hearing. Should the applicant be dissatisfied
30-6 with the imposition of conditions on, or the denial or revocation
30-7 of, a license to operate <certificate of approval> by the
30-8 Administrator, the applicant shall have the right to appeal the
30-9 decision of the Administrator and request a hearing with the
30-10 Administrator within fifteen (15) days after receipt of notice.
30-11 Upon receipt of the request for a hearing, the Administrator shall
30-12 set a time and place for said hearing and then send notice to the
30-13 school of said time and place. Said hearing shall be held within
30-14 thirty (30) days from the receipt of the request for a hearing. At
30-15 said hearing, an applicant may appear in person or by counsel and
30-16 present evidence to the Administrator in support of the licensing
30-17 without conditions or the retaining or granting of the permit
30-18 specified herein. All interested persons may also appear and
30-19 present oral and documentary evidence to the Administrator,
30-20 concerning the issuance of a license to operate <certificate of
30-21 approval> to the applicant school. Within ten (10) days after the
30-22 hearing, the Administrator shall send notice to the school either
30-23 affirming or rescinding <revoking> the revocation or denial of, or
30-24 conditions imposed on, the license to operate <certificate of
30-25 approval>.
30-26 SECTION 1.18. Section 32.61, Education Code, is amended to
30-27 read as follows:
31-1 Sec. 32.61. Prohibitions. No person shall:
31-2 (1) operate a school without a license to operate or
31-3 assume ownership of an existing school without obtaining a new
31-4 license to operate <certificate of approval issued by the
31-5 Administrator>;
31-6 (2) solicit prospective students without being
31-7 licensed <bonded> as required by this Chapter;
31-8 (3) accept contracts or enrollment applications from a
31-9 representative who is not registered <bonded> as required by this
31-10 Chapter;
31-11 (4) utilize advertising designed to mislead or deceive
31-12 prospective students;
31-13 (5) fail to notify the Administrator of the
31-14 discontinuance of the operation of any school within 72 hours of
31-15 cessation of classes and make available accurate records as
31-16 required by this Chapter;
31-17 (6) <fail to secure and file within 30 days an
31-18 increased bond as required by this Chapter;>
31-19 <(7)> negotiate any promissory instrument received as
31-20 payment of tuition or other charge prior to completion of 75
31-21 percent of the course, provided that prior to such time, the
31-22 instrument may be transferred by assignment to a purchaser who
31-23 shall be subject to all the defenses available against the school
31-24 named as payee;
31-25 (7) enroll a student who fails to satisfy entrance
31-26 requirements; or
31-27 (8) violate any provision of this Chapter.
32-1 SECTION 1.19. Section 32.611, Education Code, is amended to
32-2 read as follows:
32-3 Sec. 32.611. ADMINISTRATIVE <CIVIL> PENALTY. (a) If a
32-4 person violates Section 32.61 of this code, the administrator may
32-5 assess an administrative <a civil> penalty against that person as
32-6 provided by this section.
32-7 (b) The administrator may assess the administrative <civil>
32-8 penalty in an amount not to exceed $1,000. In determining the
32-9 amount of the penalty, the administrator shall consider the
32-10 seriousness of the violation.
32-11 (c) If, after examination of a possible violation and the
32-12 facts relating to that possible violation, the administrator
32-13 concludes that a violation has occurred, the administrator shall
32-14 issue a preliminary report that states the facts on which the
32-15 conclusion is based, the fact that an administrative <a civil>
32-16 penalty is to be imposed, and the amount to be assessed. Not later
32-17 than the 10th day after the date on which the administrator issues
32-18 the preliminary report, the administrator shall send a copy of the
32-19 report to the person charged with the violation, together with a
32-20 statement of the right of the person to a hearing relating to the
32-21 alleged violation and the amount of the penalty.
32-22 (d) Not later than the 20th day after the date on which the
32-23 report is sent, the person charged must either make a written
32-24 request for a hearing or remit the amount of the administrative
32-25 <civil> penalty to the administrator. Failure either to request a
32-26 hearing or to remit the amount of the administrative <civil>
32-27 penalty within the time provided by this subsection results in a
33-1 waiver of a right to a hearing under this section. If the person
33-2 charged requests a hearing, the hearing shall be conducted in the
33-3 same manner as a hearing on the denial of certificate of approval
33-4 under Section 32.41 of this code. If it is determined after a
33-5 hearing that the person has committed the alleged violation, the
33-6 administrator shall give written notice to the person of the
33-7 findings established by the hearing and the amount of the penalty
33-8 and shall enter an order requiring the person to pay the penalty.
33-9 (e) Not later than the 30th day after the date on which the
33-10 notice is received, the person charged must pay the administrative
33-11 <civil> penalty in full or, if the person wishes to contest either
33-12 the amount of the penalty or the fact of the violation, remit the
33-13 assessed amount to the administrator for deposit in an escrow
33-14 account. If, after judicial review, it is determined that no
33-15 violation occurred or that the amount of the penalty should be
33-16 reduced, the administrator shall remit the appropriate amount to
33-17 the person charged with the violation not later than the 30th day
33-18 after the date on which the judicial determination becomes final.
33-19 (f) Failure to remit the amount of the administrative
33-20 <civil> penalty to the board within the time provided by Subsection
33-21 (e) of this section results in a waiver of all legal rights to
33-22 contest the violation or the amount of the penalty.
33-23 (g) An administrative <A civil> penalty owed under this
33-24 section plus reasonable attorney fees and court costs may be
33-25 recovered in a civil action brought by the attorney general at the
33-26 request of the administrator. Administrative <Civil> penalties
33-27 recovered shall be deposited in the General Revenue Fund. Attorney
34-1 fees and court costs shall be appropriated to the attorney general.
34-2 SECTION 1.20. Section 32.612, Education Code, is amended to
34-3 read as follows:
34-4 Sec. 32.612. Competitive Bidding; Advertising. (a) The
34-5 State Board of Education may not adopt rules that <to> restrict
34-6 competitive bidding or advertising by a proprietary school except
34-7 to prohibit false, misleading, or deceptive competitive bidding or
34-8 advertising practices. The <Those> rules may not restrict:
34-9 (1) the use of an advertising medium;
34-10 (2) the size or duration of an advertisement; or
34-11 (3) advertisement under a trade name.
34-12 (b) A school, the representative of a school, or a recruiter
34-13 for the school may not advertise or represent, in writing or
34-14 orally, that a school is approved or accredited by the state.
34-15 Those entities or persons may advertise that the school has been
34-16 licensed to operate by the state.
34-17 (c) A school, representative of a school, or recruiter of a
34-18 school may not make or cause to be made a statement or
34-19 representation, written, oral, or visual, offering or publicizing a
34-20 subject, program, or school, if the school, representative, or
34-21 recruiter knew or reasonably should have known that the statement
34-22 or representation was false, fraudulent, deceptive, substantially
34-23 inaccurate, or misleading.
34-24 SECTION 1.21. Section 32.64, Education Code, is amended by
34-25 amending Subsection (a) and adding Subsection (c) to read as
34-26 follows:
34-27 (a) If the Central Education Agency has reasonable cause to
35-1 believe that a proprietary school has violated this chapter or a
35-2 rule adopted under this chapter, the agency may:
35-3 (1) order a peer review of the school; or
35-4 (2) suspend the admission of students to the school,
35-5 as provided by Subsection (c) of this section.
35-6 (c) The agency may suspend the admission of students to a
35-7 school under Subsection (a) of this section after the administrator
35-8 has given written notice to the applicant for or holder of a
35-9 license to operate a proprietary school of the suspension and of
35-10 the intent to deny or revoke the license, as provided by Section
35-11 32.35 or 32.36 of this code, as applicable. In addition, the
35-12 notice shall state that a hearing will be held at a time and place
35-13 and on a date specified in the notice to review the denial or
35-14 revocation decision. Except as provided by this subsection, the
35-15 hearing is in place of a hearing under Section 32.41 of this code,
35-16 and shall be held not later than the 20th day after the date notice
35-17 was given. If, after the hearing, the administrator upholds the
35-18 denial or revocation of the license, the applicant for or holder of
35-19 a license may appeal the decision, as provided by Section 32.42 of
35-20 this code. The admission of students is suspended during the
35-21 period the decision is being appealed. If the applicant for or
35-22 holder of a license appears and the agency fails to hold a timely
35-23 hearing, the agency may not continue to suspend the enrollment of
35-24 students without the consent of the applicant for or holder of a
35-25 license, and the applicant for or holder of a license is entitled
35-26 to a hearing under Section 32.41 of this code not later than the
35-27 30th day after the date the hearing under this subsection was to be
36-1 held. If the applicant for or holder of a license fails to appear,
36-2 the applicant for or holder of a license is not entitled to any
36-3 other hearing or to an appeal under Section 32.42 of this code, and
36-4 the administrator may make final the decision to deny or revoke the
36-5 license.
36-6 SECTION 1.22. Subchapter G, Chapter 32, Education Code, is
36-7 amended by adding Section 32.65 to read as follows:
36-8 Sec. 32.65. CRIMINAL PENALTIES. (a) A person commits an
36-9 offense if the person fails to comply with Section 32.61(1) or
36-10 32.39 of this code. Except as provided by Subsection (b) of this
36-11 section, an offense under this subsection is a Class A misdemeanor.
36-12 (b) A person commits an offense if the person intentionally
36-13 or knowingly uses for personal benefit funds in an amount greater
36-14 than $10,000 that are due as student refunds under Section 32.39 of
36-15 this code. An offense under this subsection is a felony of the
36-16 third degree.
36-17 SECTION 1.23. Subchapter G, Chapter 32, Education Code, is
36-18 amended by adding Section 32.66 to read as follows:
36-19 Sec. 32.66. INVESTIGATION OF STUDENT COMPLAINTS. The
36-20 administrator shall investigate complaints filed against a school
36-21 by a current or former student that identifies a possible violation
36-22 of statute or rule that occurred on a date not earlier than two
36-23 years before the date of the letter of complaint. If the school is
36-24 found to be at fault, the agency may, in addition to assessing an
36-25 appropriate penalty and fee as provided by this chapter, order the
36-26 school to provide a refund in an amount not to exceed the total
36-27 tuition and fee charge to the student.
37-1 SECTION 1.24. Section 32.91, Education Code, is amended to
37-2 read as follows:
37-3 Sec. 32.91. CONSOLIDATION OF FEES AND PROPRIETARY SCHOOL
37-4 <Tuition Protection> FUND. (a) At the beginning of each fiscal
37-5 year the <At the time that each school pays its annual renewal fee,
37-6 in the years provided by Subsection (c) of this section, the> State
37-7 Board of Education shall <also> collect a fee from the school for
37-8 deposit to the credit of a special fund in the state treasury to be
37-9 called the proprietary school <tuition protection> fund and to be
37-10 administered by the Central Education Agency.
37-11 (b) The amount of the fee is determined by applying a
37-12 percentage, established by the school fund advisory board, to each
37-13 school's annual gross tuition, with consideration given to the
37-14 school's size, expense of regulation, potential for teachouts,
37-15 tuition refund and recovery exposure, and loan default rates (with
37-16 schools with high default rates paying higher fees), and any other
37-17 relevant factors <renewal fee>. The fund shall be used for:
37-18 (1) the administration of this chapter;
37-19 (2) the cost of teachouts as provided by Section 32.92
37-20 of this code;
37-21 (3) the cost of tuition and fees recovery and the cost
37-22 of student refunds that a school has not made in violation of
37-23 Section 32.39 of this code; and
37-24 (4) the cost of storing student records that have
37-25 become property of the state under this Act. <The percentage is
37-26 the rate as determined by the board that, when applied to the total
37-27 of all renewal fees, will result in the collection of $250,000 for
38-1 deposit in the fund in the first two years that the fee is
38-2 collected.>
38-3 (c) The administrator may grant an exemption from payment
38-4 into the fund to a small school, as determined by the
38-5 administrator, or to a school that does not use guaranteed student
38-6 loans for tuition revenue. A school exempt as provided for by this
38-7 subsection must pay the necessary fees for regulation, as
38-8 determined by the administrator, and provide a bond, certificate of
38-9 deposit, or comparable security, as determined and approved by the
38-10 administrator, that is sufficient to cover the cost of the school's
38-11 record storage costs, teachout, and tuition and fees refund and
38-12 recovery exposure based on the evidence the school submits proving
38-13 its projected maximum total unearned tuition during the period of
38-14 the license to operate.
38-15 (d) The security shall be provided by the school for the
38-16 period during which the license to operate is issued, and the
38-17 obligation of the bond or other security must be that neither this
38-18 chapter nor any rule adopted under this chapter is violated by the
38-19 school or any of its officers, agents, or employees.
38-20 (e) The bond, certificate of deposit, or comparable security
38-21 must be issued by a company authorized to do business in the state,
38-22 conditioned that the parties to the transaction shall pay all
38-23 damages or expenses that the state or any governmental subdivision
38-24 or any student or potential student sustains resulting from a
38-25 violation. The bond, certificate of deposit, or comparable
38-26 security shall be to the state to be used only for payment for the
38-27 school's teachout and tuition and fees refund due to a student or
39-1 potential student. The security must be filed with the
39-2 administrator and shall be in such form as shall be approved by the
39-3 administrator.
39-4 (f) Schools domiciled, or having their principal place of
39-5 business, outside the state, that engage representatives to canvas,
39-6 solicit, or contract with any person in the state are subject to
39-7 the fee and security requirements of Subsection (c) of this
39-8 section.
39-9 (g) The administrator shall refer all expenses incurred by
39-10 the school fund in administering Subsections (b)(2) and (3) of this
39-11 section to the attorney general's office for collection. The
39-12 amounts collected shall be deposited to the fund. Attorney's fees
39-13 and court costs shall be appropriated to the attorney general's
39-14 office <Beginning on January 1, 1990, the board shall collect the
39-15 fee for two years. If on January 1, 1993, or any subsequent year
39-16 the amount in the fund is less than $200,000, the board shall
39-17 collect a fee during that year by applying a percentage to each
39-18 school's annual renewal fee at a rate that will bring the balance
39-19 of the fund to $250,000>.
39-20 (h) Interest the fund earns shall be reinvested in the fund.
39-21 <(d) The state treasurer shall invest the fund in the same manner
39-22 as other state funds.> Sufficient funds from the <tuition
39-23 protection> fund, other fees collected by the agency, and earned
39-24 federal funds shall be appropriated to Central Education Agency
39-25 administration for the purpose outlined in this subchapter
39-26 <section>.
39-27 (i) The administrator by rule shall establish and access
40-1 reasonable and necessary fees to all persons and entities licensed
40-2 under this Act to be used for the regulation of those persons and
40-3 entities licensed under this Act and to supplement the
40-4 administration and purposes outlined for the proprietary school
40-5 fund.
40-6 SECTION 1.25. Subchapter J, Education Code, is amended by
40-7 adding Section 32.911 to read as follows:
40-8 Sec. 32.911. SCHOOL FUND ADVISORY BOARD. (a) The school
40-9 fund advisory board is created. The board members consist of:
40-10 (1) the attorney general or the designee of the
40-11 attorney general;
40-12 (2) the comptroller of public accounts or the designee
40-13 of the comptroller;
40-14 (3) the president of the Texas Guaranteed Student Loan
40-15 Corporation or the designee of the president;
40-16 (4) the commissioner of the Texas Higher Education
40-17 Coordinating Board or the designee of the commissioner;
40-18 (5) the president of the Association of Texas Lenders
40-19 for Education or the designee of the president;
40-20 (6) the president of the Texas Association of Student
40-21 Financial Aid Administrators or the designee of the president;
40-22 (7) the commissioner of the Texas Department of
40-23 Licensing and Regulation or the designee of the commissioner;
40-24 (8) the commissioner of education or the designee of
40-25 the commissioner;
40-26 (9) the director of the division of the Central
40-27 Education Agency that regulates proprietary schools or the designee
41-1 of the director;
41-2 (10) the executive director of the Texas Board of
41-3 Private Investigators and Private Security Agencies or the designee
41-4 of the executive director;
41-5 (11) the commissioner of health or the designee of the
41-6 commissioner;
41-7 (12) the executive director of the State Board of
41-8 Barber Examiners or the designee of the executive director;
41-9 (13) the executive director of the Texas Cosmetology
41-10 Commission or the designee of the executive director;
41-11 (14) one member each, elected by the recognized
41-12 constituent organization, representing schools regulated by the
41-13 Central Education Agency proprietary schools division, the Texas
41-14 Board of Private Investigators and Private Security Agencies, the
41-15 massage registration division of the Texas Department of Health or
41-16 its successor in that function, the State Board of Barber
41-17 Examiners, and the Texas Cosmetology Commission;
41-18 (15) two public members, not affiliated with
41-19 proprietary schools or state government, appointed by the governor;
41-20 (16) one public member, not affiliated with
41-21 proprietary schools or state government, appointed by the
41-22 lieutenant governor; and
41-23 (17) one public member, not affiliated with
41-24 proprietary schools or state government, appointed by the speaker
41-25 of the house of representatives.
41-26 (b) Each member of the school fund advisory board has one
41-27 vote, and decisions shall be made on the basis of a majority of the
42-1 board. The school fund advisory board shall meet, at the call of
42-2 the board's elected chairman, to recommend fees for and
42-3 expenditures from:
42-4 (1) the proprietary school fund;
42-5 (2) the security officer school fund;
42-6 (3) the massage school fund;
42-7 (4) the barber school or college fund; and
42-8 (5) the private beauty culture school fund.
42-9 (c) The school fund advisory board shall, on an annual
42-10 basis, determine the percentage applied to annual gross tuition and
42-11 fees to be used in establishing the baseline amount, based on
42-12 anticipated needs sufficient to fully cover the purposes of the
42-13 school funds listed in Subsection (b) of this section. The school
42-14 fund advisory board shall monitor the administration of the funds
42-15 and the schools or colleges contributing to the funds and make
42-16 recommendations to the appropriate state agency regarding the
42-17 percentage of annual gross tuition to charge schools or colleges
42-18 for the appropriate fund provided by Subsection (b) of this section
42-19 or other aspects of the administration of the fund or the schools
42-20 or colleges.
42-21 (d) The school fund advisory board may request an audit of
42-22 the appropriate state agency regarding the administration of the
42-23 appropriate fund provided by Subsection (b) of this section.
42-24 (e) The school fund advisory board shall serve as arbitrator
42-25 and shall hear appeals and mediate the resolution of grievances
42-26 regarding the administration of the funds brought by any member of
42-27 the board. The school fund advisory board shall hear second
43-1 appeals as provided by Subsection (k) of this section.
43-2 (f) The school fund advisory board shall monitor the default
43-3 management of agencies administering school funds, including this
43-4 Act and the rules in 34 C.F.R., Parts 668 and 682. The board may,
43-5 on findings that the default reduction initiatives of an agency are
43-6 not sufficient, as evidenced by a school that that agency regulates
43-7 exceeding the acceptable default rate as determined by the board,
43-8 require the agency to approve a default prevention plan to be
43-9 implemented by the affected school.
43-10 (g) The school fund advisory board shall be funded by the
43-11 member organizations. Each member organization shall appropriate
43-12 funds to pay a portion of the cost to administer the board and to
43-13 pay the expenses incurred by that organization's representative on
43-14 the board.
43-15 (h) The school fund advisory board may consider and rule on
43-16 any matter regarding the regulation of a school or licensee under
43-17 this chapter, the administration of an agency regulating schools
43-18 under this chapter, or the application by a school of a policy
43-19 regarding the students enrolled in a school regulated under this
43-20 chapter, if the board considers such consideration and ruling are
43-21 appropriate and necessary.
43-22 (i) Each state agency administering a fund shall consider
43-23 the recommendations of the school fund advisory board when making
43-24 decisions regarding the fund administered by that agency.
43-25 (j) Each state agency administering a fund shall recognize a
43-26 constituent organization comprised of representatives of schools
43-27 regulated by the agency and the school's advisory council if one
44-1 exists. The recognized constituent organization must be
44-2 independent, both fiscally and administratively, from the agency
44-3 regulating constituent schools. The agency shall consider the
44-4 recommendations of the recognized constituent organization
44-5 regarding the regulation of the constituent schools.
44-6 (k) Each state agency administering a fund shall prepare,
44-7 submit for approval of the school fund advisory board, and on
44-8 approval shall publish the agency's mechanism and procedures by
44-9 which complaints may be brought before the agency by the recognized
44-10 constituent organization representing schools regulated by the
44-11 agency. The procedure shall include the investigation, hearing,
44-12 and appeals process of the agency to resolve grievances brought
44-13 against the agency or a school regulated by the agency, regarding
44-14 any aspect of the regulation of the constituent schools.
44-15 SECTION 1.26. Section 32.92, Education Code, is amended to
44-16 read as follows:
44-17 Sec. 32.92. Closed School. (a) The State Board of
44-18 Education shall adopt rules specifying the circumstances under
44-19 which the administrator may declare a school closed. If a
44-20 proprietary school closes, the Central Education Agency shall
44-21 attempt to arrange for students of the closed school to attend:
44-22 (1) another proprietary school with similar programs;
44-23 (2) a public or private school with similar programs;
44-24 (3) a similar program recognized by the Central
44-25 Education Agency; or
44-26 (4) a similar program established by private industry.
44-27 (b) The expense incurred by a school in providing a teachout
45-1 that is directly related to educating a student placed in the
45-2 school under this section, including the applicable tuition and
45-3 fees for the period of time for which the student has paid tuition
45-4 and fees, shall be paid in accordance with rules of the State Board
45-5 of Education <from the proprietary school tuition protection fund>.
45-6 (c) If the student cannot be placed in another school, the
45-7 student's tuition and fees shall be refunded under Section 32.39(d)
45-8 of this code.
45-9 (d) If a student does not accept a place that is available
45-10 and reasonable in another school, the student's tuition and fees
45-11 shall be refunded under the refund policy maintained by the closing
45-12 school under Section 32.39(b) of this code.
45-13 (e) The administrator shall make reasonable attempts to
45-14 ensure that schools under the administrator's jurisdiction,
45-15 including closed schools, fulfill the refund obligation as provided
45-16 by Section 32.39 of this code. If a school refuses to fulfill the
45-17 school's obligation or the school's bond is insufficient to pay the
45-18 cost of the teachout and refund expenses, the teachout or the
45-19 refund may be paid from the proprietary school fund, except that no
45-20 school owned, either in whole or in part, by a person or corporate
45-21 entity who was an owner, in whole or in part, of a previously
45-22 closed school shall be permitted to receive compensation for a
45-23 teachout under this section <If the amount of the closed school's
45-24 bond under Section 32.38 of this code is less than the amount
45-25 required for student refunds under Subsections (c) and (d) of this
45-26 section, the refunds shall be paid from the proprietary school
45-27 tuition protection fund in an amount not to exceed $25,000>.
46-1 (f) <If another school assumes responsibility for the closed
46-2 school's students with no significant changes in the quality of
46-3 training, the student is not entitled to a refund under Subsection
46-4 (c) or (d) of this section.>
46-5 <(g)> Attorney's fees, court costs, or damages may not be
46-6 paid from the proprietary school <tuition protection> fund.
46-7 <(h) This section take effect January 1, 1992.>
46-8 SECTION 1.27. Sections 32.38, 32.42(f), 32.71, and 32.92(f),
46-9 Education Code, are repealed.
46-10 SECTION 1.28. Any balance remaining in the tuition
46-11 protection fund shall be transferred to the proprietary school fund
46-12 on the effective date of this Act.
46-13 SECTION 1.29. A proprietary school that holds a certificate
46-14 of approval on the effective date of this Act is considered to hold
46-15 a license to operate under Chapter 32, Education Code, as amended
46-16 by this part. The administrator shall replace a certificate with a
46-17 license after the expiration of the certificate and on application
46-18 for renewal.
46-19 PART 2. SECURITY OFFICER SCHOOLS
46-20 SECTION 2.01. Section 20, Private Investigators and Private
46-21 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
46-22 Statutes), is amended to read as follows:
46-23 Sec. 20. SECURITY OFFICER SCHOOL LICENSE; APPLICATION;
46-24 REFUND POLICY <Training Programs>. (a) The board shall establish
46-25 a basic training course for security officers. The course must be
46-26 offered and taught by schools and instructors licensed <approved>
46-27 by the board. To receive a license <board approval,> a school or
47-1 an instructor must submit an application to the board on a form
47-2 provided by the board.
47-3 (b) The basic training course approved by the board shall
47-4 consist of a minimum of 30 hours and shall include:
47-5 (1) legal limitations on the use of firearms and on
47-6 the powers and authority of a security officer;
47-7 (2) familiarity with this Act;
47-8 (3) field note taking and report writing;
47-9 (4) range firing and procedure, and firearms safety
47-10 and maintenance; and
47-11 (5) any other topics of security officer training
47-12 curriculum which the board deems necessary.
47-13 (c) The board shall develop a commissioned security officer
47-14 training manual to be used in the instructing and training of
47-15 commissioned security officers.
47-16 (d) The board shall promulgate all rules necessary to
47-17 administer the provisions of this section concerning the training
47-18 requirements of this Act.
47-19 (e) An application for a license to instruct at a security
47-20 officer school must state the education and experience level of the
47-21 applicant in all courses or programs that the applicant will teach
47-22 or instruct and be on a form prescribed by the board. The board
47-23 shall review an application for competency, consistency, and the
47-24 overall quality of the applicant. An applicant for an instructor's
47-25 license must receive a passing grade on an examination administered
47-26 by the board.
47-27 (f) The board may not issue a security officer commission to
48-1 an applicant employed by a licensee unless the applicant submits
48-2 evidence satisfactory to the board that:
48-3 (1) he has completed the basic training course at a
48-4 school or under an instructor approved by the board;
48-5 (2) he meets all qualifications established by this
48-6 Act and by the rules of the board;
48-7 (3) he has satisfied his firearm training instructor
48-8 that he has attained with a handgun a minimum average marksmanship
48-9 competency of 160 out of 300 on an "Army L" target or a minimum of
48-10 80 out of 150 on an F.B.I. Silhouette target (N.R.A. B-27), at 50
48-11 feet with 10 shots slow fire, 10 shots time fire and 10 shots
48-12 double-action or complies with the standards of marksmanship set by
48-13 the board;
48-14 (4) he has satisfied his firearm training instructor
48-15 that he has complied with the standards of marksmanship set by the
48-16 board for minimum marksmanship competency with a shotgun.
48-17 (g) <(f)> In addition to the requirements of Subsection (f)
48-18 <(e)> of this section, the board by rules and regulations shall
48-19 establish other qualifications for persons who are employed in
48-20 positions requiring the carrying of firearms. These qualifications
48-21 may include physical and mental standards, standards of good moral
48-22 character, and other requirements that relate to the competency and
48-23 reliability of individuals to carry firearms. The board shall
48-24 prescribe appropriate forms and rules and regulations by which
48-25 evidence that the requirements are fulfilled is presented. The
48-26 board shall require commissioned security officers and applicants
48-27 for security officer commissions to demonstrate proficiency in the
49-1 use of firearms to the satisfaction of a firearm training
49-2 instructor who is employed by a board approved training school. An
49-3 applicant for a security officer commission must demonstrate
49-4 proficiency not earlier than the 90th day before the date on which
49-5 the security officer commission is to be issued. A commissioned
49-6 security officer must demonstrate proficiency not earlier than the
49-7 90th day before the date on which the commission is to be renewed.
49-8 The records of this proficiency shall be maintained by the school
49-9 and available for inspection by the board.
49-10 (h) <(g)> The board shall prescribe appropriate rules and
49-11 regulations for the maintenance of records relating to persons
49-12 issued security officer commissions by the board.
49-13 (i) An application for a security officer school license
49-14 must be verified by the applicant and must contain a statement of
49-15 any final convictions of the owners, school directors, recruiters,
49-16 instructional faculty, or other selected personnel of the security
49-17 officer school as determined by the board. The board may obtain
49-18 criminal history records of school directors or instructional
49-19 faculty from any law enforcement agency, including the United
49-20 States Department of Justice, the Department of Public Safety of
49-21 the State of Texas, the Texas Department of Criminal Justice, or
49-22 the police department of a municipality.
49-23 (j) The board shall determine that an applicant for a
49-24 security officer school license is financially sound and capable of
49-25 fulfilling its commitments for training before granting the permit.
49-26 (k) Each licensed security officer school must maintain a
49-27 cancellation and settlement policy that provides a full refund of
50-1 all money paid by a student if:
50-2 (1) the student cancels the enrollment agreement or
50-3 contract not later than midnight of the third day after the date on
50-4 which the agreement or contract is signed by the prospective
50-5 student, excluding Saturdays, Sundays, and legal holidays; or
50-6 (2) the enrollment of the student was procured as a
50-7 result of a misrepresentation made in the advertising or
50-8 promotional materials of the school or a representation by an owner
50-9 or representative of the school.
50-10 (l) Each licensed security officer school must maintain a
50-11 refund policy for the refund of the unused part of tuition, fees,
50-12 and other charges assessed a student if the student, at the
50-13 expiration of the cancellation period established under Subsection
50-14 (k) of this section, terminates enrollment or is terminated by the
50-15 school, as provided by this subsection. The refund policy must
50-16 provide that:
50-17 (1) a refund is based on the period of the student's
50-18 enrollment, computed on the basis of course time expressed in clock
50-19 hours;
50-20 (2) the effective date of the termination for payment
50-21 of a refund is the earliest of:
50-22 (A) the last date of attendance, if the student
50-23 is terminated for failure to satisfy a school attendance, grade, or
50-24 work requirement;
50-25 (B) the date of receipt by the license holder of
50-26 written notice of withdrawal by the student;
50-27 (C) the 10th consecutive school day the student
51-1 has been absent, unless any of the absences are excused by the
51-2 school; or
51-3 (D) the date the student fails to return, as
51-4 scheduled, from a leave of absence; and
51-5 (3) if tuition is collected before beginning the
51-6 course of training, and if, after the expiration of the
51-7 cancellation period, the student does not begin the course of
51-8 training, the school may retain not more than $100.
51-9 (m) If a student who begins a course of training that is
51-10 scheduled to run not more than 12 months withdraws from the course
51-11 or is terminated from the course by the school, the security
51-12 officer school may retain $100 in tuition and fees paid by that
51-13 student and is not obligated to refund any additional outstanding
51-14 tuition if the student withdraws or is terminated during the last
51-15 quarter of the course. If the student withdraws or is terminated
51-16 before the last quarter of the course begins, the school shall
51-17 refund the following percentages of any outstanding tuition:
51-18 (1) for withdrawal or termination occurring during the
51-19 first week or first one-tenth of the course, whichever is less, 90
51-20 percent;
51-21 (2) for withdrawal or termination occurring after the
51-22 first week or first one-tenth of the course, whichever is less, but
51-23 within the first three weeks of the course, 80 percent;
51-24 (3) for withdrawal or termination occurring after the
51-25 first three weeks of the course but not later than the last date of
51-26 the first quarter of the course, 75 percent;
51-27 (4) for withdrawal or termination occurring during the
52-1 second quarter of the course, 50 percent; and
52-2 (5) for withdrawal or termination occurring during the
52-3 third quarter of the course, 10 percent.
52-4 (n) A refund owed under this section must be paid not later
52-5 than the 60th day after the date on which the student becomes
52-6 eligible for the refund, as determined under Subsection (l) of this
52-7 section.
52-8 (o) If a refund is not made within the period required by
52-9 this section, the school shall pay, as a penalty, interest on the
52-10 refund for the interval beginning with the first day following the
52-11 expiration of the refund period and ending with the day immediately
52-12 preceding the date the refund is made. If the refund is made to a
52-13 lending institution, the interest shall also be paid to that
52-14 institution and applied against the student's loan. The board
52-15 annually shall establish the level of interest at a level
52-16 sufficient to provide a deterrent to the retention of student
52-17 funds. The board may exempt a school from the payment of the
52-18 interest if the school makes a good faith effort to refund the
52-19 tuition but is unable to locate the student. The school shall
52-20 provide to the board on request documentation of the effort to
52-21 locate the student.
52-22 (p) A security officer school shall record a grade of
52-23 "incomplete" for a student who withdraws but is not entitled to a
52-24 refund under Subsection (m) of this section if the student requests
52-25 the grade at the time the student withdraws and the student
52-26 withdraws for an appropriate reason unrelated to the student's
52-27 academic status. A student who receives a grade of incomplete may
53-1 reenroll in the program during the 12-month period following the
53-2 date the student withdraws and may complete those incomplete
53-3 subjects without payment of additional tuition.
53-4 (q) If a course of instruction is discontinued by the school
53-5 and this prevents the student from completing the course, all
53-6 tuition and fees paid are due and refundable.
53-7 (r) Refunds under this section shall be applied:
53-8 (1) first, to the repayment of student loans;
53-9 (2) second, to the repayment of other government
53-10 loans;
53-11 (3) third, to the repayment of other financial loans;
53-12 and
53-13 (4) last, to the student's personal tuitional
53-14 expenditures.
53-15 (s) Not later than the 30th day after the date on which a
53-16 refund is due to a student who has received a student loan, the
53-17 school shall notify the guaranty agency and the lender of the
53-18 required refund and any refund previously made. The guaranty
53-19 agency and the lender shall notify the student and the school if
53-20 the student's loan has been transferred to another holder.
53-21 (t) The failure of a school or a person to pay a tuition
53-22 refund as required by this section is a deceptive trade practice
53-23 under Subchapter E, Chapter 17, Business & Commerce Code.
53-24 SECTION 2.02. The Private Investigators and Private Security
53-25 Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes) is
53-26 amended by adding Sections 20A-20S to read as follows:
53-27 Sec. 20A. CRITERIA FOR SECURITY OFFICER SCHOOL LICENSE.
54-1 Before the board may approve the application of a person for a
54-2 security officer school license, the director must find, on
54-3 investigation at the premises of the school, that the school meets
54-4 the following criteria:
54-5 (1) the courses, curriculum, and instruction are of a
54-6 quality, content, and length as may reasonably and adequately
54-7 achieve the stated objective for which the courses, curriculum, or
54-8 instruction are offered;
54-9 (2) there is in the school adequate space, equipment,
54-10 instructional material, and instructor personnel to provide
54-11 training of good quality;
54-12 (3) educational and experience qualifications of
54-13 directors, administrators, and instructors are adequate;
54-14 (4) the school maintains a written record of the
54-15 previous education and training of the applicant student and
54-16 clearly indicates that appropriate credit has been given by the
54-17 school for previous education and training, with the new training
54-18 period shortened where warranted through use of appropriate skills
54-19 or achievement tests and the student notified;
54-20 (5) a copy of the course outline; schedule of tuition,
54-21 fees, refund policy, and other charges; regulations pertaining to
54-22 absence, grading policy, and rules of operation and conduct;
54-23 regulations pertaining to incomplete grades; the name, mailing
54-24 address, and telephone number of the board for the purpose of
54-25 directing complaints to the agency; the current rates of job
54-26 placement and employment of students issued a certificate of
54-27 completion; and notification of the availability of the cost
55-1 comparison information prepared under Section 20G of this Act will
55-2 be furnished to the student before enrollment;
55-3 (6) on completion of training, the student is given a
55-4 certificate by the school indicating the course and that training
55-5 was satisfactorily completed;
55-6 (7) adequate records as required by the director are
55-7 kept to show attendance and progress or grades, and satisfactory
55-8 standards relating to attendance, progress, and conduct are
55-9 enforced;
55-10 (8) the school complies with all local, city, county,
55-11 municipal, state, and federal regulations; the director may require
55-12 evidence of compliance as is necessary;
55-13 (9) the school is financially sound and capable of
55-14 fulfilling its commitments for training;
55-15 (10) the school's administrators, directors, owners,
55-16 and instructors are of good reputation and character;
55-17 (11) the school has, maintains, and publishes in its
55-18 catalog or comparable documents and enrollment contract the proper
55-19 policy for the refund of the unused portion of tuition, fees, and
55-20 other charges in the event the student enrolled by the school fails
55-21 to take the course or withdraws or is discontinued from the course
55-22 at any time before completion;
55-23 (12) the school does not use erroneous or misleading
55-24 advertising, either by actual statement, omission, or intimation as
55-25 determined by the board;
55-26 (13) additional criteria as may be required by the
55-27 board;
56-1 (14) the school does not use a name like or similar to
56-2 an existing tax-supported school in the same area;
56-3 (15) the school furnishes to the board the current
56-4 rates of students who receive a certificate of completion and of
56-5 job placement and employment of students issued a certificate of
56-6 completion;
56-7 (16) the school furnishes to the board for approval or
56-8 disapproval student admission requirements for each course or
56-9 program offered by the school;
56-10 (17) the school furnishes to the board for approval or
56-11 disapproval the course lengths and curriculum content for each
56-12 course offered by the school; and
56-13 (18) the school does not owe a civil penalty under
56-14 Section 20P of this Act.
56-15 Sec. 20B. CONSUMER INFORMATION. (a) A security officer
56-16 school must submit to the board for approval, on an annual basis, a
56-17 school catalog or comparable written documents detailing the
56-18 consumer information that must be given to a prospective student
56-19 before enrollment. The school catalog or documents must include:
56-20 (1) the name and address of the school and the
56-21 school's governing body and officials;
56-22 (2) a calendar of the school year;
56-23 (3) school policies on enrollment;
56-24 (4) rules relating to absences;
56-25 (5) the school grading policy;
56-26 (6) the school's hours of operation and rules of
56-27 conduct;
57-1 (7) a schedule of the tuition and other fees assessed;
57-2 (8) the school's cancellation and refund policy;
57-3 (9) a general description of the course or courses
57-4 offered;
57-5 (10) information on entrance testing and remedial
57-6 development plans;
57-7 (11) state licensing requirements for courses intended
57-8 to result in licensing of a student;
57-9 (12) starting range and reported average salaries for
57-10 the prior year's graduates in occupations for which courses are
57-11 offered, if the information is available;
57-12 (13) the current rates of job placement and employment
57-13 of students who complete a course of training;
57-14 (14) the school policy on credit for previous
57-15 education and training;
57-16 (15) school regulations relating to incomplete grades;
57-17 (16) information on the transferability of credits
57-18 earned;
57-19 (17) the name, mailing address, and telephone number
57-20 of the board for the purpose of directing complaints to the board
57-21 and the mechanism and procedures for resolving grievances submitted
57-22 to the board;
57-23 (18) a statement that the board has information on
57-24 cost comparison with similar schools;
57-25 (19) market and job availability information, if
57-26 available;
57-27 (20) the names of the members of any advisory council
58-1 of the school and the company for which they work; and
58-2 (21) other information required by the director or
58-3 board if reasonable notice has been given by the administrator to
58-4 the school of the additional requirement.
58-5 (b) A prospective student must receive the catalog or
58-6 comparable written documents at a time and in a manner that
58-7 provides the student with sufficient opportunity to read the
58-8 catalog before signing an enrollment contract and before the school
58-9 accepts the student in a course of study.
58-10 (c) A student must sign a receipt stating that:
58-11 (1) the catalog was received by the student before any
58-12 commitment made by the student to the school or by the school to
58-13 the student;
58-14 (2) the student was given an opportunity to discuss
58-15 the catalog with a representative of the school; and
58-16 (3) the student understands the contents and
58-17 implications of the catalog.
58-18 (d) The receipt required by Subsection (c) of this section
58-19 must be placed in the student's permanent school file and a copy of
58-20 the receipt must be delivered to the student.
58-21 Sec. 20C. COURSE LENGTH AND CURRICULUM OF SECURITY OFFICER
58-22 SCHOOL. (a) A security officer school must submit to the board
58-23 for approval the course lengths and curriculum content for each
58-24 course offered by the school. The course lengths and content may
58-25 not be implemented unless the board approves them. The course
58-26 lengths and content shall reasonably ensure that students develop
58-27 the job skills and knowledge necessary for employment.
59-1 (b) The board shall require a school to fully account for
59-2 all curriculum contents and course lengths before issuing or
59-3 renewing a license and a school that is offering course lengths
59-4 below or above industry standards may be issued a conditional
59-5 license.
59-6 Sec. 20D. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
59-7 TO SECURITY OFFICER SCHOOL. (a) The board shall set and enforce
59-8 minimum standards for completion and employment rates of courses,
59-9 based on collected data.
59-10 (b) In determining whether to renew a security officer
59-11 school license, the board shall consider the completion, placement,
59-12 and employment rates of students of the course.
59-13 (c) Before a school may begin offering a new course of study
59-14 for students, the school must show the board the opportunity for
59-15 jobs for graduates of the course and the possibility of placement
59-16 or employment.
59-17 (d) Before the board issues or renews a security officer
59-18 school license involving a school that offers or advertises a
59-19 placement service, the board may require the school to file a
59-20 certified copy of the school's placement records for the previous
59-21 year.
59-22 Sec. 20E. ON-SITE INSPECTIONS. (a) The board shall conduct
59-23 on-site inspections of a security officer school to determine the
59-24 normal operating conditions of the school.
59-25 (b) The inspection required by Subsection (a) of this
59-26 section shall be unannounced.
59-27 (c) The director or a designee of the director may inspect
60-1 such things as the instructional books and records, classrooms,
60-2 dormitories, tools, equipment, and classes of a security officer
60-3 school or an applicant for a license for a school at any reasonable
60-4 time.
60-5 Sec. 20F. CONSOLIDATION OF FEES AND SECURITY OFFICER SCHOOL
60-6 FUND. (a) At the beginning of each fiscal year the board shall
60-7 collect a fee from the school for deposit in a special fund
60-8 established in the state treasury called the security officer
60-9 school fund and to be administered by the board.
60-10 (b) The amount of the fee is determined by applying a
60-11 percentage, established by the school fund advisory board, to each
60-12 school's annual gross tuition, with consideration given to the
60-13 school's size, expense of regulation, potential for teachouts,
60-14 tuition and fees refund and recovery expense, and loan default
60-15 rates (with schools with high default rates paying higher fees),
60-16 and any other relevant factors. The fund shall be used for:
60-17 (1) the administration of this Act;
60-18 (2) the cost of teachouts as provided by this Act;
60-19 (3) the cost of tuition and fees recovery and the cost
60-20 of student refunds that a school has not made; and
60-21 (4) the cost of storing student records that have
60-22 become property of the state under this Act.
60-23 (c) The board may grant an exemption from payment into the
60-24 fund to a small school, as determined by the director, or to a
60-25 school that does not use guaranteed student loans for tuition
60-26 revenue. A school exempt as provided for by this subsection must
60-27 pay the necessary fees for regulation, as determined by the
61-1 director, and provide a bond, certificate of deposit, or comparable
61-2 security, as determined and approved by the board, that is
61-3 sufficient to cover the cost of the school's record storage,
61-4 teachout, and tuition and fees refund and recovery exposure based
61-5 on the evidence the school submits proving its projected maximum
61-6 total unearned tuition during the period of the license.
61-7 (d) The security shall be provided by the school for the
61-8 period during which the license is issued, and the obligation of
61-9 the bond or other security must be that neither this Act nor any
61-10 rule adopted under this Act is violated by the school or any of its
61-11 officers, agents, or employees.
61-12 (e) The bond, certificate of deposit, or comparable security
61-13 shall be issued by a company authorized to do business in the
61-14 state, conditioned that the parties to the transaction shall pay
61-15 all damages or expenses that the state or any governmental
61-16 subdivision or any student or potential student sustains resulting
61-17 from a violation. The bond, certificate of deposit, or comparable
61-18 security shall be to the state to be used only for payment for the
61-19 school's teachout and tuition and fees refund due to a student or
61-20 potential student. The security must be filed with the board and
61-21 must be in such form as shall be approved by the board.
61-22 (f) Schools domiciled, or having their principal place of
61-23 business, outside the state, that engage representatives to
61-24 canvass, solicit, or contract with any person in the state are
61-25 subject to the fee and security requirements of Subsection (c) of
61-26 this section.
61-27 (g) The board shall refer all expenses incurred by the
62-1 school fund in administering Subsections (b)(2) and (3) of this
62-2 section to the attorney general's office for collection. The
62-3 amounts collected shall be deposited to the fund. Attorney's fees
62-4 and court costs shall be appropriated to the attorney general's
62-5 office.
62-6 (h) Interest the fund earns shall be reinvested in the fund.
62-7 Sufficient funds from the fund and other fees collected by the
62-8 board shall be appropriated to the board for the purpose outlined
62-9 in this section. The board shall administer claims made against
62-10 the fund.
62-11 (i) If a school closes, the board shall attempt to arrange
62-12 for students of the closed school to attend another security
62-13 officer school. The board shall adopt rules specifying the
62-14 circumstances under which the director may declare a school closed.
62-15 (j) The expense incurred by a security officer school in
62-16 providing training that is directly related to educating a student
62-17 who was enrolled in a closed school and placed in the school under
62-18 this section, including the applicable tuition for the period of
62-19 time for which the student has paid tuition, shall be paid in
62-20 accordance with the rules of the board.
62-21 (k) The board shall make reasonable attempts to ensure that
62-22 schools under the board's jurisdiction, including closed schools,
62-23 fulfill the refund obligation as provided by Section 20 of this
62-24 Act. If a school refuses to fulfill the school's obligation or the
62-25 school's bond is insufficient to pay the cost of the teachout and
62-26 refund expenses, the teachout or the refund may be paid from the
62-27 security officer school fund except that no school owned, either in
63-1 whole or in part, by a person or corporate entity who was an owner,
63-2 in whole or in part, of a previously closed school shall be
63-3 permitted to receive compensation for a teachout under this
63-4 section.
63-5 (l) If a student cannot be placed in another school, the
63-6 student's tuition and fees shall be refunded under Section 20(q) of
63-7 this Act.
63-8 (m) If a student does not accept a place that is available
63-9 and reasonable in another school, the student's tuition and fees
63-10 shall be refunded under the refund policy maintained by the closing
63-11 school under Sections 20(l) and (m) of this Act.
63-12 (n) Attorney's fees, court costs, or damages may not be paid
63-13 from the security officer school fund.
63-14 (o) The board, by rule, shall establish and access
63-15 reasonable and necessary fees to all persons and entities licensed
63-16 under this Act to be used for the regulation of those persons and
63-17 entities licensed under this Act and to supplement the
63-18 administration and purposes outlined for the fund.
63-19 Sec. 20G. COST COMPARISONS. (a) The board shall prepare a
63-20 comparison of the cost to a student of courses of instruction or
63-21 training programs at all security officer schools maintained by
63-22 persons who hold security officer school licenses issued by the
63-23 board.
63-24 (b) The cost comparison must include for each school a
63-25 description of:
63-26 (1) average class size;
63-27 (2) facilities and equipment;
64-1 (3) employment and placement rates;
64-2 (4) length of program; and
64-3 (5) faculty qualifications.
64-4 Sec. 20H. LICENSING REQUIREMENTS DISCLOSED BY SECURITY
64-5 OFFICER SCHOOL. (a) A security officer school must disclose to
64-6 all prospective students state licensing requirements to practice
64-7 the occupation for which the student is training.
64-8 (b) A school must disclose to all prospective students the
64-9 performance of graduates from the school on the licensing
64-10 examination of the board if that information is available.
64-11 Sec. 20I. ENTRANCE REQUIREMENTS FOR SECURITY OFFICER SCHOOL;
64-12 MINIMUM SKILLS TEST. (a) The board shall approve entrance
64-13 requirements, including minimum skills testing, for students who
64-14 may be accepted for a course of study in a security officer school.
64-15 The requirements must be specific and provide that students who are
64-16 allowed to enter a program will have a reasonable chance of
64-17 completing the program.
64-18 (b) The school shall administer a standardized test to
64-19 students with a high school diploma or high school equivalency
64-20 certificate entering the school, if testing for minimum skills
64-21 competency is determined by the board as appropriate and necessary
64-22 to determine if remediation is needed. The test must be
64-23 administered before enrollment and must be nationally recognized as
64-24 appropriate and effective for minimum skills testing and high
64-25 school equivalency. If the test reveals the necessity for
64-26 remediation, the school must implement a plan to encourage the
64-27 student to improve in basic general education skills.
65-1 (c) A student must achieve a successful score on the test
65-2 required by this section before the student is obligated for
65-3 tuition and fees for the vocational portion of the school's
65-4 program.
65-5 (d) The school may, in accordance with federal statutory
65-6 provisions affecting guaranteed student loan programs, on a
65-7 case-by-case basis, refuse to provide the certification statements
65-8 required for guaranteed student loan eligibility, or reduce the
65-9 determination of need for a guaranteed student loan if the school
65-10 determines that the student's expenses to be covered by the loan
65-11 and the estimated cost of attendance, can be met more appropriately
65-12 by the school, directly by the student, or by other sources.
65-13 Sec. 20J. STUDENTS IN SECURITY OFFICER SCHOOLS IN NEED OF
65-14 REMEDIAL HELP. (a) An applicant without a high school diploma or
65-15 high school equivalency certificate must pass an entrance test
65-16 approved by the board and be considered to have the ability to
65-17 benefit from the school before the school may enroll the student.
65-18 (b) A school that admits a student who does not have a high
65-19 school diploma or high school equivalency certificate must develop
65-20 and implement a plan for counseling the student on curriculum,
65-21 student aid, employment opportunities, and the remediation
65-22 necessary for the student to obtain a high school equivalency
65-23 certificate and improve in basic general education skills.
65-24 (c) The school must assist the student in obtaining the
65-25 remediation necessary for the student to pass a standardized
65-26 minimum skills equivalency test approved by the board, and the
65-27 student must pass the test before entering the final quarter of the
66-1 course.
66-2 Sec. 20K. ENROLLMENT POLICIES OF SECURITY OFFICER SCHOOL.
66-3 (a) The enrollment contract of a security officer school must
66-4 contain:
66-5 (1) a disclosure that the contract is a legally
66-6 binding instrument on written acceptance of the student by the
66-7 school, unless canceled as provided by law;
66-8 (2) the school's cancellation and refund policy;
66-9 (3) the method of cancellation of the contract, the
66-10 effective date of any cancellation, and the name and address to
66-11 which the notice of cancellation should be sent or delivered;
66-12 (4) the total cost of the course including tuition and
66-13 all other charges;
66-14 (5) a notification that the fair market value of
66-15 equipment or supplies furnished to the student that the student
66-16 fails to return in a condition suitable for resale not later than
66-17 the 10th business day after the date of cancellation may be
66-18 retained by the school and deducted from any refund of the student;
66-19 (6) a statement that if a student's enrollment is
66-20 canceled for any reason, the school will notify an agency known to
66-21 the school to be providing financial aid to the student of the
66-22 cancellation not later than the 30th day after the date of
66-23 cancellation;
66-24 (7) the name and description of the courses, including
66-25 the number of hours of classroom instruction or home study lessons;
66-26 and
66-27 (8) the Federal Trade Commission statement for a
67-1 holder in due course.
67-2 (b) An enrollment contract may not contain a wage assignment
67-3 provision or a confession of judgment clause.
67-4 (c) Immediately after a prospective student has signed an
67-5 enrollment contract, the school shall give the prospective student
67-6 a copy of the contract, and a copy shall be placed in the student's
67-7 permanent school file.
67-8 (d) A promissory note signed by a student must include the
67-9 Federal Trade Commission statement for a holder in due course.
67-10 Sec. 20L. LOAN COUNSELING BY SECURITY OFFICER SCHOOL. (a)
67-11 A school shall conduct loan counseling entrance interviews with
67-12 each prospective student seeking a loan during the enrollment
67-13 process. A student borrower shall be counseled before the initial
67-14 disbursement of loan proceeds, shortly before the student completes
67-15 one-half of the course, and before the student is issued a
67-16 certificate of completion.
67-17 (b) The school's financial aid officer or counselor shall
67-18 conduct the interviews required by Subsection (a) of this section.
67-19 The interview must include a discussion of:
67-20 (1) the rights and responsibilities of the student as
67-21 a borrower;
67-22 (2) what a loan is and the importance of repayment;
67-23 (3) the total cost of the program in which the student
67-24 will be enrolled;
67-25 (4) the availability of other forms of financial aid,
67-26 grants, and part-time work;
67-27 (5) the starting range and average reported salaries
68-1 of those in the occupation for which the student will be trained,
68-2 if available; and
68-3 (6) job placement services provided by the school and
68-4 the employment rate of persons who attended the school and were
68-5 enrolled in the program in which the student is enrolled.
68-6 (c) A school approved to accept state or federal educational
68-7 loans or grants shall adopt, in addition to the provisions in this
68-8 section, measures to reduce defaults and improve borrowers'
68-9 understanding and respect for the loan repayment obligation as
68-10 provided in 34 C.F.R., Parts 668 and 682.
68-11 (d) The school must give a copy of the Texas Guaranteed
68-12 Student Loan Corporation's "Your Future" guide, or a comparable
68-13 document approved by the board, to a prospective student at a time
68-14 and in a manner that provides the student with sufficient
68-15 opportunity to read the guide or other document and discuss the
68-16 contents with the school's financial aid officer, if necessary for
68-17 understanding and clarity, before signing an enrollment contract
68-18 and before the school accepts the student in a course of study.
68-19 (e) The prospective student must sign a document stating
68-20 that the student:
68-21 (1) attended a loan counseling entrance interview; and
68-22 (2) received a copy of the "Your Future" guide or
68-23 comparable document in the time provided by Subsection (d) of this
68-24 section.
68-25 (f) A copy of the signed document required by Subsection (e)
68-26 of this section must be sent to the student, guarantor, and lender
68-27 and must be placed in the student's permanent school file.
69-1 Sec. 20M. RECORDS OF SECURITY OFFICER SCHOOL. (a) A
69-2 security officer school shall maintain permanent records for all
69-3 students enrolled, as required by the board.
69-4 (b) A school shall adopt a plan to preserve permanent
69-5 records and submit the plan to the board for approval. The plan
69-6 must:
69-7 (1) provide that at least one copy of the records will
69-8 be held in a secure depository; and
69-9 (2) designate an appropriate official to provide a
69-10 student with copies of records or transcripts on request.
69-11 (c) The school shall make the first copy of records or
69-12 transcripts at no charge to the student. The school may make a
69-13 reasonable charge to provide additional copies of records,
69-14 transcripts, or other student information.
69-15 (d) If a school closes, the records become the property of
69-16 the state.
69-17 Sec. 20N. DISPLAY OF LICENSE. (a) Every holder of a
69-18 security officer school license issued under this Act shall display
69-19 the license in a conspicuous place at the premises of the school.
69-20 (b) The board may not use the word "approval" or a variation
69-21 of that term on the license of a security officer school. The
69-22 terminology must be "licensed" to operate, or a variation of that
69-23 phrase.
69-24 Sec. 20O. BOARD ADDRESS. A security officer school shall
69-25 post on the premises of the school at a prominent and conspicuous
69-26 location the name, mailing address, and telephone number of the
69-27 board for the purpose of directing complaints to the board.
70-1 Sec. 20P. CIVIL PENALTY. A security officer school that
70-2 violates this Act or a rule adopted under this Act is liable for a
70-3 civil penalty in addition to any injunctive relief or other remedy
70-4 provided by law. The civil penalty may not exceed $1,000 a day for
70-5 each violation. The attorney general, at the request of the board,
70-6 may bring a civil action to collect a civil penalty under this
70-7 subsection. Civil penalties recovered in a suit brought under this
70-8 subsection shall be deposited in the state treasury to the credit
70-9 of the general revenue fund.
70-10 Sec. 20Q. REVOCATION AND SUSPENSION. The board may deny,
70-11 suspend, or revoke a security officer school license or place the
70-12 school on probation if the license holder, school, or a
70-13 representative of the school gives a prospective student
70-14 information relating to the school that is false, fraudulent,
70-15 deceptive, substantially inaccurate, or misleading.
70-16 Sec. 20R. FINANCIAL STABILITY. (a) A school may not
70-17 reflect unearned tuition as a current asset unless the amount shown
70-18 in current assets that reflects unearned tuition is offset by an
70-19 equal amount shown as a current liability. The school must meet
70-20 one of the following criteria in order to be determined as
70-21 financially sound and capable of fulfilling its commitments for
70-22 training:
70-23 (1) current assets must bear a relationship to current
70-24 liabilities in a ratio of at least one-to-one;
70-25 (2) the equity of the owner of the school must be in
70-26 excess of $10,000,000; or
70-27 (3) the school must have posted, or set aside in a
71-1 dedicated escrow account, a bond, certificate of deposit,
71-2 irrevocable letter of credit, or comparable security, acceptable to
71-3 the board, each made payable to the state, in an amount sufficient
71-4 to cover the school's record storage costs, teachout, and tuition
71-5 and fees refund and recovery exposure based on the evidence the
71-6 school submits proving its projected maximum total unearned tuition
71-7 during the period of time covered by the evidence of indebtedness
71-8 to the state.
71-9 (b) The school must demonstrate to the satisfaction of the
71-10 board its financial soundness and ability to fulfill its
71-11 commitments for training.
71-12 Sec. 20S. CRIMINAL PENALTIES. (a) A person commits an
71-13 offense if the person fails to comply with Section 20 of this Act.
71-14 Except as provided by Subsection (b) of this section, an offense
71-15 under this section is a Class A misdemeanor.
71-16 (b) A person commits an offense if the person intentionally
71-17 or knowingly uses for personal benefit funds in an amount greater
71-18 than $10,000 that are due as student refunds under Sec. 20 of this
71-19 Act. An offense under this subsection is a felony of the third
71-20 degree.
71-21 SECTION 2.03. Section 30, Private Investigators and Private
71-22 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
71-23 Statutes), is amended by adding Subsections (c) and (d) to read as
71-24 follows:
71-25 (c) A security officer school, the representative of a
71-26 school, or a recruiter for the school may not advertise or
71-27 represent, in writing or orally, that a school is approved or
72-1 accredited by the state. Those entities or persons may advertise
72-2 that the school has been licensed by the state.
72-3 (d) A school, representative of a school, or recruiter of a
72-4 school may not make or cause to be made a statement or
72-5 representation, written, oral, or visual, offering or publicizing a
72-6 course, program, or school, if the school, representative, or
72-7 recruiter knew or reasonably should have known that the statement
72-8 or representation was false, fraudulent, deceptive, substantially
72-9 inaccurate, or misleading.
72-10 SECTION 2.04. Section 50A, Private Investigators and Private
72-11 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
72-12 Statutes), is amended by adding Subsection (c) to read as follows:
72-13 (c) The board shall prepare information of public interest
72-14 describing the functions of the board and the procedures by which
72-15 complaints are filed with and resolved by the board against a
72-16 security officer school. The board shall make the information
72-17 available to the public and appropriate state agencies.
72-18 PART 3. MASSAGE SCHOOLS
72-19 SECTION 3.01. Section 1(9), Chapter 752, Acts of the 69th
72-20 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
72-21 Civil Statutes), is amended to read as follows:
72-22 (9) "Massage school" means a person <an entity or
72-23 organization with at least two instructors> that teaches, at a
72-24 minimum, the course of instruction or any part of the course of
72-25 instruction required for registration as a massage therapist under
72-26 this Act.
72-27 SECTION 3.02. Section 2(b), Chapter 752, Acts of the 69th
73-1 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
73-2 Civil Statutes), is amended to read as follows:
73-3 (b) An individual who registers as a massage therapist under
73-4 this Act must present evidence satisfactory to the board that the
73-5 person:
73-6 (1) has satisfactorily completed massage therapy
73-7 studies in a 300 hour, supervised course of instruction provided by
73-8 a massage <therapy instructor, by a massage> school registered by
73-9 the department, by a state approved educational institution, or by
73-10 any combination of educational institutions <instructors> or
73-11 schools, in which 125 hours are dedicated to the study of Swedish
73-12 massage therapy techniques taught by a massage therapy instructor,
73-13 50 hours to the study of anatomy, 25 hours to the study of
73-14 physiology, 15 hours to the study of hydrotherapy, 15 hours to the
73-15 study of business practices and professional ethics standards, and
73-16 20 hours to the study of health and hygiene, and 50 hours to an
73-17 internship program;
73-18 (2) is registered as a massage therapist in another
73-19 state or country that has and maintains standards and requirements
73-20 of practice and licensing or registration that substantially
73-21 conform to those of this state, as determined by the department; or
73-22 (3) has practiced massage therapy as a profession for
73-23 not less than five years in another state or country that does not
73-24 have or maintain standards and requirements of practice and
73-25 licensing or registration that substantially conform to those of
73-26 this state, as determined by the department.
73-27 SECTION 3.03. Section 2A, Chapter 752, Acts of the 69th
74-1 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
74-2 Civil Statutes), is amended by amending Subsections (a) and (b) and
74-3 adding Subsection (n) to read as follows:
74-4 (a) A massage school that offers, at a minimum, the course
74-5 of instruction or any part of the course of instruction required
74-6 for registration as a massage therapist must register with the
74-7 department. A massage school must meet the minimum standards of
74-8 operation established by board rule. The registration must include
74-9 a statement of any final convictions of the owners, school
74-10 directors, recruiters, instructional faculty, or other selected
74-11 personnel of the massage school as determined by the department.
74-12 The board may obtain criminal history records of school directors
74-13 or instructional faculty from any law enforcement agency, including
74-14 the United States Department of Justice, the Department of Public
74-15 Safety of the State of Texas, the Texas Department of Criminal
74-16 Justice, or the police department of a municipality.
74-17 (b) A massage therapy instructor must register with the
74-18 department as provided by this Act. The registration must state
74-19 the education and experience level of the applicant in all courses
74-20 or programs that the applicant will teach or instruct and be on a
74-21 form prescribed by the department. The department shall review a
74-22 registration for competency, consistency, and the overall quality
74-23 of the applicant.
74-24 (n) The department shall determine that an applicant for
74-25 massage school registration is financially sound and capable of
74-26 fulfilling its commitments for training before granting the
74-27 registration.
75-1 SECTION 3.04. Section 5, Chapter 752, Acts of the 69th
75-2 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
75-3 Civil Statutes), is amended by adding Subsections (c)-(e) to read
75-4 as follows:
75-5 (c) The department may not adopt rules that restrict
75-6 advertising by a massage school except to prohibit false,
75-7 misleading, or deceptive advertising practices. The rules may not
75-8 restrict:
75-9 (1) the use of an advertising medium;
75-10 (2) the size or duration of an advertisement; or
75-11 (3) advertisement under a trade name.
75-12 (d) A school, the representative of a school, or a recruiter
75-13 for the school may not advertise or represent, in writing or
75-14 orally, that a school is approved or accredited by the state.
75-15 Those entities or persons may advertise that the school has been
75-16 registered by the state.
75-17 (e) A school, representative of a school, or recruiter of a
75-18 school may not make or cause to be made a statement or
75-19 representation, written, oral, or visual, offering or publicizing a
75-20 course, program, or school, if the school, representative, or
75-21 recruiter knew or reasonably should have known that the statement
75-22 or representation was false, fraudulent, deceptive, substantially
75-23 inaccurate, or misleading.
75-24 SECTION 3.05. Section 10, Chapter 752, Acts of the 69th
75-25 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
75-26 Civil Statutes), is amended by adding Subsection (g) to read as
75-27 follows:
76-1 (g) The department may not use the word "approval" or a
76-2 variation of that term on the certificate of a massage school. The
76-3 terminology must be "registered" or a variation of that phrase, and
76-4 a massage school must display the certificate in a conspicuous
76-5 place.
76-6 SECTION 3.06. Section 11, Chapter 752, Acts of the 69th
76-7 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
76-8 Civil Statutes), is amended by adding Subsection (e) to read as
76-9 follows:
76-10 (e) The department may deny, suspend, or revoke the
76-11 registration of a massage school or place the school on probation
76-12 if the certificate holder, school, or a representative of the
76-13 school gives a prospective student information relating to the
76-14 school that is false, fraudulent, deceptive, substantially
76-15 inaccurate, or misleading.
76-16 SECTION 3.07. Chapter 752, Acts of the 69th Legislature,
76-17 Regular Session, 1985 (Article 4512k, Vernon's Texas Civil
76-18 Statutes), is amended by adding Sections 20-37 to read as follows:
76-19 Sec. 20. CRITERIA FOR REGISTRATION AS MASSAGE SCHOOL.
76-20 Before the department may approve the application of a person to be
76-21 registered as a massage school, the department must find, on
76-22 investigation at the premises of the school, that the school meets
76-23 the following criteria:
76-24 (1) the courses, curriculum, and instruction are of a
76-25 quality, content, and length as may reasonably and adequately
76-26 achieve the stated objective for which the courses, curriculum, or
76-27 instruction are offered;
77-1 (2) there is in the school adequate space, equipment,
77-2 instructional material, and instructor personnel to provide
77-3 training of good quality;
77-4 (3) educational and experience qualifications of
77-5 directors, administrators, and instructors are adequate;
77-6 (4) the school maintains a written record of the
77-7 previous education and training of the applicant student and
77-8 clearly indicates that appropriate credit has been given by the
77-9 school for previous education and training in accordance with
77-10 department rules, with the new training period shortened where
77-11 warranted through use of appropriate skills or achievement tests
77-12 and the student notified;
77-13 (5) a copy of the course outline; schedule of tuition,
77-14 fees, refund policy, and other charges; regulations pertaining to
77-15 absence, grading policy, and rules of operation and conduct;
77-16 regulations pertaining to incomplete grades; the name, mailing
77-17 address, and telephone number of the department for the purpose of
77-18 directing complaints to the department; the current rates of job
77-19 placement and employment of students issued a certificate of
77-20 completion; and notification of the availability of the cost
77-21 comparison information prepared under Section 27 of this Act will
77-22 be furnished to the student in the catalog before enrollment;
77-23 (6) on completion of training, the student is given a
77-24 certificate by the school indicating the course and that training
77-25 was satisfactorily completed;
77-26 (7) adequate records as required by the department are
77-27 kept to show attendance and progress or grades, and satisfactory
78-1 standards relating to attendance, progress, and conduct are
78-2 enforced;
78-3 (8) the school complies with all local, city, county,
78-4 municipal, state, and federal regulations; the department may
78-5 require evidence of compliance as is necessary;
78-6 (9) the school is financially sound and capable of
78-7 fulfilling its commitments for training;
78-8 (10) the school's administrators, directors, owners,
78-9 and instructors are of good reputation and character;
78-10 (11) the school has, maintains, and publishes in its
78-11 catalog and enrollment contract the proper policy for the refund of
78-12 the unused portion of tuition, fees, and other charges in the event
78-13 the student enrolled by the school fails to take the course or
78-14 withdraws or is discontinued from the course at any time before
78-15 completion;
78-16 (12) the school does not use erroneous or misleading
78-17 advertising, either by actual statement, omission, or intimation as
78-18 determined by the commission;
78-19 (13) additional criteria as may be required by the
78-20 department;
78-21 (14) the school does not use a name like or similar to
78-22 an existing tax-supported school in the same area;
78-23 (15) the school furnishes to the department the
78-24 current rates of students who receive a certificate of completion
78-25 and of job placement and employment of students issued a
78-26 certificate of completion;
78-27 (16) the school furnishes to the department for
79-1 approval or disapproval student admission requirements for each
79-2 course or program offered by the school;
79-3 (17) the school furnishes to the department for
79-4 approval or disapproval the course lengths and curriculum content
79-5 for each course offered by the school that meets the educational
79-6 requirements and curriculum established by the department;
79-7 (18) the physical facility used by the massage school
79-8 meets the requirements of the department which shall take into
79-9 consideration whether a school is based at a specific location or
79-10 at various locations around the state; and
79-11 (19) the school does not owe a civil penalty under
79-12 Section 13 of this Act.
79-13 Sec. 21. CONSUMER INFORMATION. (a) A massage school must
79-14 submit to the department for approval, on an annual basis, a school
79-15 catalog or comparable written documents detailing the consumer
79-16 information that must be given to a prospective student before
79-17 enrollment. The school catalog or documents must include:
79-18 (1) the name and address of the school and the
79-19 school's governing body and officials;
79-20 (2) a calendar of the school year;
79-21 (3) school policies on enrollment;
79-22 (4) rules relating to absences;
79-23 (5) the school grading policy;
79-24 (6) the school's hours of operation and rules of
79-25 conduct;
79-26 (7) a schedule of the tuition and other fees assessed;
79-27 (8) the school's cancellation and refund policy;
80-1 (9) a general description of the course or courses
80-2 offered;
80-3 (10) information on entrance testing and remedial
80-4 development plans;
80-5 (11) state licensing requirements for courses intended
80-6 to result in licensing of the student;
80-7 (12) starting range and reported average salaries for
80-8 the prior year's graduates in occupations for which courses are
80-9 offered, if the information is available;
80-10 (13) the current rates of job placement and employment
80-11 of students who complete a course of training;
80-12 (14) the department policy on credit for previous
80-13 education and training;
80-14 (15) school regulations relating to incomplete grades;
80-15 (16) information on the transferability of credits
80-16 earned;
80-17 (17) the name, mailing address, and telephone number
80-18 of the department for the purpose of directing complaints to the
80-19 department and the mechanism and procedures for resolving
80-20 grievances submitted to the department;
80-21 (18) a statement that the department has information
80-22 on cost comparison with similar schools;
80-23 (19) market and job availability information, if
80-24 available;
80-25 (20) the names of the members of any advisory council
80-26 of the school and the company for which they work; and
80-27 (21) other information required by the department if
81-1 reasonable notice has been given by the department to the school of
81-2 the additional requirements.
81-3 (b) A prospective student must receive the catalog or
81-4 comparable written documents at a time and in a manner that provide
81-5 the student with sufficient opportunity to read the catalog before
81-6 signing an enrollment contract and before the school accepts the
81-7 student in a course of study.
81-8 (c) A student must sign a receipt stating that:
81-9 (1) the catalog was received by the student before any
81-10 commitment made by the student to the school or by the school to
81-11 the student;
81-12 (2) the student was given an opportunity to discuss
81-13 the catalog with a representative of the school; and
81-14 (3) the student understands the contents and
81-15 implications of the catalog.
81-16 (d) The receipt required by Subsection (c) of this section
81-17 must be placed in the student's permanent school file and a copy of
81-18 the receipt must be delivered to the student.
81-19 Sec. 22. COURSE LENGTH AND CURRICULUM OF MASSAGE SCHOOL.
81-20 (a) A massage school must submit to the department for approval
81-21 the course lengths and curriculum content for each course offered
81-22 by the school that meets the educational requirements and
81-23 curriculum established by the department. The course lengths and
81-24 content may not be implemented unless the department approves them.
81-25 The course lengths and content shall reasonably ensure that
81-26 students develop the job skills and knowledge necessary for
81-27 employment.
82-1 (b) The department shall require a school to fully account
82-2 for all curriculum contents and course lengths before issuing or
82-3 renewing a license and a school that is offering course lengths
82-4 below or above industry standards may be issued a conditional
82-5 registration.
82-6 Sec. 23. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
82-7 TO MASSAGE SCHOOL. (a) The department shall set and enforce
82-8 minimum standards for completion and employment rates of courses
82-9 based on collected data.
82-10 (b) In determining whether to renew a massage school's
82-11 registration, the department shall consider the completion,
82-12 placement, and employment rates of students of the courses.
82-13 (c) Before a school may begin offering a new course of study
82-14 for students the school must show the department the opportunity
82-15 for jobs for graduates of the course and the possibility of
82-16 placement or employment except where the new course is offered to
82-17 credentialed professionals for professional continuing education.
82-18 (d) Before the department issues or renews a massage school
82-19 registration involving a school that offers or advertises a
82-20 placement service, the department may require the school to file a
82-21 certified copy of the school's placement records for the previous
82-22 year.
82-23 Sec. 24. ON-SITE INSPECTIONS. (a) The department shall
82-24 conduct on-site inspections of a massage school to determine the
82-25 normal operating conditions of the school.
82-26 (b) The inspection required by Subsection (a) of this
82-27 section shall be unannounced.
83-1 (c) The executive director of the department or a designee
83-2 of the executive director may inspect such things as the
83-3 instructional books and records, classrooms, dormitories, tools,
83-4 equipment, and classes of a massage school or an applicant for a
83-5 license for a school at any reasonable time.
83-6 Sec. 25. REFUND. (a) Each registered massage school must
83-7 maintain a cancellation and settlement policy that provides a full
83-8 refund of all money paid by a student if:
83-9 (1) the student cancels the enrollment agreement or
83-10 contract not later than midnight of the third day after the date on
83-11 which the agreement or contract is signed by the prospective
83-12 student, excluding Saturdays, Sundays, and legal holidays; or
83-13 (2) the enrollment of the student was procured as a
83-14 result of a misrepresentation made in the advertising or
83-15 promotional materials of the school or a representation by an owner
83-16 or representative of the school.
83-17 (b) Each registered massage school must maintain a refund
83-18 policy for the refund of the unused part of tuition, fees, and
83-19 other charges assessed a student if the student, at the expiration
83-20 of the cancellation period established under Subsection (a) of this
83-21 section, terminates enrollment or is terminated by the school, as
83-22 provided by this subsection. The refund policy must provide that:
83-23 (1) a refund is based on the period of the student's
83-24 enrollment, computed on the basis of course time expressed in clock
83-25 hours;
83-26 (2) the effective date of the termination for payment
83-27 of a refund is the earliest of:
84-1 (A) the last date of attendance, if the student
84-2 is terminated for failure to satisfy a school attendance, grade, or
84-3 work requirement;
84-4 (B) the date of receipt by the school of written
84-5 notice of withdrawal by the student;
84-6 (C) the 10th consecutive school day the student
84-7 has been absent, unless any of the absences are excused by the
84-8 school; or
84-9 (D) the date the student fails to return, as
84-10 scheduled, from a leave of absence; and
84-11 (3) if tuition is collected before beginning the
84-12 course of training, and if, after the expiration of the
84-13 cancellation period, the student does not begin the course of
84-14 training, the school may retain not more than $100.
84-15 (c) If a student who begins a course of training that is
84-16 scheduled to run not more than 12 months withdraws from the course
84-17 or is terminated from the course by the school, the school may
84-18 retain $100 in tuition and fees paid by that student and is not
84-19 obligated to refund any additional outstanding tuition if the
84-20 student withdraws or is terminated during the last quarter of the
84-21 course. If the student withdraws or is terminated before the last
84-22 quarter of the course begins, the school shall refund the following
84-23 percentages of any outstanding tuition:
84-24 (1) for withdrawal or termination occurring during the
84-25 first week or first one-tenth of the course, whichever is less, 90
84-26 percent;
84-27 (2) for withdrawal or termination occurring after the
85-1 first week or first one-tenth of the course, whichever is less, but
85-2 within the first three weeks of the course, 80 percent;
85-3 (3) for withdrawal or termination occurring after the
85-4 first three weeks of the course but not later than the last date of
85-5 the first quarter of the course, 75 percent;
85-6 (4) for withdrawal or termination occurring during the
85-7 second quarter of the course, 50 percent; and
85-8 (5) for withdrawal or termination occurring during the
85-9 third quarter of the course, 10 percent.
85-10 (d) A refund owed under this section must be paid not later
85-11 than the 60th day after the date on which the student becomes
85-12 eligible for the refund, as determined under Subsection (b) of this
85-13 section.
85-14 (e) If a refund is not made within the period required by
85-15 this section, the school shall pay, as a penalty, interest on the
85-16 refund for the interval beginning with the first day following the
85-17 expiration of the refund period and ending with the day immediately
85-18 preceding the date the refund is made. If the refund is made to a
85-19 lending institution, the interest shall also be paid to that
85-20 institution and applied against the student's loan. The board with
85-21 the advice of the advisory council annually shall establish the
85-22 level of interest at a level sufficient to provide a deterrent to
85-23 the retention of student funds. The board may exempt a school from
85-24 the payment of the interest if the school makes a good faith effort
85-25 to refund the tuition but is unable to locate the student. The
85-26 school shall provide to the department on request documentation of
85-27 the effort to locate the student.
86-1 (f) A massage school shall record a grade of "incomplete"
86-2 for a student who withdraws but is not entitled to a refund under
86-3 Subsection (c) of this section if the student requests the grade at
86-4 the time the student withdraws and the student withdraws for an
86-5 appropriate reason unrelated to the student's academic status. A
86-6 student who receives a grade of incomplete may reenroll in the
86-7 program during the 12-month period following the date the student
86-8 withdraws and may complete those incomplete subjects without
86-9 payment of additional tuition.
86-10 (g) If a course of instruction is discontinued by the school
86-11 and this prevents the student from completing the course, all
86-12 tuition and fees paid are due and refundable.
86-13 (h) Refunds under this section shall be applied:
86-14 (1) first, to the repayment of student loans;
86-15 (2) second, to the repayment of other government
86-16 loans;
86-17 (3) third, to the repayment of other financial loans;
86-18 and
86-19 (4) last, to the student's personal tuitional
86-20 expenditures.
86-21 (i) Not later than the 30th day after the date on which a
86-22 refund is due to a student who has received a student loan, the
86-23 school shall notify the guaranty agency and the lender of the
86-24 required refund and any refund previously made. The guaranty
86-25 agency and the lender shall notify the student and the school if
86-26 the student's loan has been transferred to another holder.
86-27 (j) The failure of a school or a person to pay a tuition
87-1 refund as required by this section is a deceptive trade practice
87-2 under Subchapter E, Chapter 17, Business & Commerce Code.
87-3 Sec. 26. CONSOLIDATION OF FEES AND MASSAGE SCHOOL FUND. (a)
87-4 At the beginning of each fiscal year the department shall collect a
87-5 fee from a school for deposit in a special fund established in the
87-6 state treasury called the massage school fund and to be
87-7 administered by the department.
87-8 (b) The amount of the fee is determined by applying a
87-9 percentage, established by the school fund advisory board, to each
87-10 school's annual gross tuition, with consideration given to the
87-11 school's size, expense of regulation, potential for teachouts,
87-12 tuition and fees refund and recovery exposure, and loan default
87-13 rates (with schools with high default rates paying higher fees),
87-14 and any other relevant factors. The fund shall be used for:
87-15 (1) the administration of this Act;
87-16 (2) the cost of teachouts as provided by this Act;
87-17 (3) the cost of tuition and fees recovery and the cost
87-18 of student refunds that a school has not made; and
87-19 (4) the cost of storing student records that have
87-20 become property of the state under this Act.
87-21 (c) The department may grant an exemption from payment into
87-22 the fund to a small school, as determined by the department, or to
87-23 a school that does not use guaranteed student loans for tuition
87-24 revenue. A school exempt as provided for by this subsection must
87-25 pay the necessary fees for regulation, as determined by the
87-26 department, and provide a bond, certificate of deposit, or
87-27 comparable security, as determined and approved by the department,
88-1 that is sufficient to cover the cost of the school's record storage
88-2 costs, teachout, and tuition and fees refund and recovery exposure
88-3 based on the evidence the school submits proving its projected
88-4 maximum total unearned tuition during the period of registration.
88-5 (d) The security shall be provided by the school for the
88-6 period during which the registration is issued, and the obligation
88-7 of the bond or other security must be that neither this Act nor any
88-8 rule adopted under this Act is violated by the school or any of its
88-9 officers, agents, or employees.
88-10 (e) The bond, certificate of deposit, or comparable security
88-11 must be issued by a company authorized to do business in the state,
88-12 conditioned that the parties to the transaction shall pay all
88-13 damages or expenses that the state or any governmental subdivision
88-14 or any student or potential student sustains resulting from a
88-15 violation. The bond, certificate of deposit, or comparable
88-16 security shall be to the state to be used only for payment for the
88-17 school's teachout and tuition and fees refund due to a student or
88-18 potential student. The security must be filed with the department
88-19 and must be in such form as shall be approved by the department.
88-20 (f) Schools domiciled, or having their principal place of
88-21 business, outside the state, that engage representatives to
88-22 canvass, solicit, or contract with any person in the state is
88-23 subject to the fee and security requirements of Subsection (c) of
88-24 this section.
88-25 (g) The department shall refer all expenses incurred by the
88-26 school fund in administering Subsections (b)(2) and (3) of this
88-27 section to the attorney general's office for collection. The
89-1 amounts collected shall be deposited to the fund. Attorney's fees
89-2 and court costs shall be appropriated to the attorney general's
89-3 office.
89-4 (h) Interest the fund earns shall be reinvested in the fund.
89-5 Sufficient funds from the fund and fees collected by the department
89-6 from massage instructors, massage establishments, and massage
89-7 schools shall be appropriated to the department for the purpose
89-8 outlined in this section. The department shall administer claims
89-9 made against the fund.
89-10 (i) If a school closes, the department shall attempt to
89-11 arrange for students of the closed school to attend another massage
89-12 school. The department shall adopt rules specifying the
89-13 circumstances under which a school is considered closed.
89-14 (j) The expense incurred by a massage school in providing
89-15 training that is directly related to educating a student who was
89-16 enrolled in a closed school and placed in the school under this
89-17 section, including the applicable tuition for the period of time
89-18 for which the student has paid tuition, shall be paid in accordance
89-19 with rules of the department.
89-20 (k) The department shall make reasonable attempts to ensure
89-21 that schools under the department's jurisdiction, including closed
89-22 schools, fulfill the refund obligation as provided by Section 25 of
89-23 this Act. If a school refuses to fulfill the school's obligation
89-24 or the school's bond is insufficient to pay the cost of the
89-25 teachout and refund expenses, the teachout or the refund may be
89-26 paid from the massage school fund except that no school owned,
89-27 either in whole or in part, by a person or corporate entity who was
90-1 an owner, in whole or in part, of a previously closed school shall
90-2 be permitted to receive compensation for a teachout under this
90-3 section.
90-4 (l) If a student cannot be placed in another school, the
90-5 student's tuition and fees shall be refunded under Section 25(g) of
90-6 this Act.
90-7 (m) If a student does not accept a place that is available
90-8 and reasonable in another school, the student's tuition and fees
90-9 shall be refunded under the refund policy maintained by the closing
90-10 school under Sections 25(b) and (c) of this Act.
90-11 (n) Attorney's fees, court costs, or damages may not be paid
90-12 from the massage school fund.
90-13 (o) The department by rule shall establish and access
90-14 reasonable and necessary fees to all persons and entities licensed
90-15 under this Act to be used for the regulation of those persons and
90-16 entities licensed under this Act and to supplement the
90-17 administration and purposes outlined for the fund.
90-18 Sec. 27. COST COMPARISONS. (a) The department shall
90-19 prepare a comparison of the cost to a student of courses of
90-20 instruction or training programs at all registered massage schools.
90-21 (b) The cost comparison must include for each school a
90-22 description of:
90-23 (1) average class size;
90-24 (2) facilities and equipment;
90-25 (3) employment and placement rates;
90-26 (4) length of program; and
90-27 (5) faculty qualifications.
91-1 Sec. 28. LICENSING REQUIREMENTS DISCLOSED BY MASSAGE SCHOOL.
91-2 (a) A massage school must disclose to all prospective students
91-3 state requirements to practice the occupation for which the student
91-4 is training.
91-5 (b) A school must disclose to all prospective students the
91-6 performance of graduates from the school on the licensing
91-7 examination of the department if that information is available.
91-8 Sec. 29. ENTRANCE REQUIREMENTS FOR MASSAGE SCHOOL; MINIMUM
91-9 SKILLS TEST. (a) The department shall approve entrance
91-10 requirements, including minimum skills testing, for students who
91-11 may be accepted for a course of study in a massage school. The
91-12 requirements must be specific and provide that students who are
91-13 allowed to enter a course will have a reasonable chance of
91-14 completing the program.
91-15 (b) The school shall administer a standardized test to
91-16 students with a high school diploma or high school equivalency
91-17 certificate entering the school, if testing for minimum skill
91-18 competency is determined by the department as appropriate and
91-19 necessary to determine if remediation is needed. The test must be
91-20 administered before enrollment and must be nationally recognized as
91-21 appropriate and effective for minimum skills testing and high
91-22 school equivalency. If the test reveals the necessity for
91-23 remediation, the school must implement a plan to encourage the
91-24 student to improve in basic general education skills.
91-25 (c) A student must achieve a successful score on the test
91-26 required by this section before the student is obligated for
91-27 tuition and fees for the vocational portion of the school's
92-1 program.
92-2 (d) The school may, in accordance with federal statutory
92-3 provisions affecting guaranteed student loan programs, on a
92-4 case-by-case basis, refuse to provide the certification statements
92-5 required for guaranteed student loan eligibility or reduce the
92-6 determination of need for a guaranteed student loan if the school
92-7 determines that the student's expenses to be covered by the loan
92-8 and the estimated cost of attendance can be met more appropriately
92-9 by the school, directly by the student, or by other sources.
92-10 Sec. 30. STUDENTS IN MASSAGE SCHOOLS IN NEED OF REMEDIAL
92-11 HELP. (a) An applicant without a high school diploma or high
92-12 school equivalency certificate must pass an entrance test approved
92-13 by the department and be considered to have the ability to benefit
92-14 from the school before the school may enroll the student.
92-15 (b) A school that admits a student who does not have a high
92-16 school diploma or high school equivalency certificate must develop
92-17 and implement a plan for counseling the student on curriculum,
92-18 student aid, employment opportunities, and the remediation
92-19 necessary for the student to obtain a high school equivalency
92-20 certificate and improve in basic general education skills.
92-21 (c) The school must assist the student in obtaining the
92-22 remediation necessary for the student to pass a standardized
92-23 minimum skills equivalency test, approved by the department, and
92-24 the student must pass the test before entering the final quarter of
92-25 the course.
92-26 Sec. 31. ENROLLMENT POLICIES OF MASSAGE SCHOOL. (a) The
92-27 enrollment contract of a massage school must contain:
93-1 (1) a disclosure that the contract is a legally
93-2 binding instrument on written acceptance of the student by the
93-3 school, unless canceled as provided by law;
93-4 (2) the school's cancellation and refund policy;
93-5 (3) the method of cancellation of the contract, the
93-6 effective date of any cancellation, and the name and address to
93-7 which the notice of cancellation should be sent or delivered;
93-8 (4) the total cost of the course including tuition and
93-9 all other charges;
93-10 (5) a notification that the fair market value of
93-11 equipment or supplies furnished to the student that the student
93-12 fails to return in a condition suitable for resale not later than
93-13 the 10th business day after the date of cancellation may be
93-14 retained by the school and deducted from any refund of the student;
93-15 (6) a statement that if a student's enrollment is
93-16 canceled for any reason, the school will notify an agency known to
93-17 the school to be providing financial aid to the student of the
93-18 cancellation not later than the 30th day after the date of
93-19 cancellation;
93-20 (7) the name and description of the courses, including
93-21 the number of hours of classroom instruction or home study lessons;
93-22 and
93-23 (8) the Federal Trade Commission statement for a
93-24 holder in due course.
93-25 (b) An enrollment contract may not contain a wage assignment
93-26 provision or a confession of judgment clause.
93-27 (c) Immediately after a prospective student has signed an
94-1 enrollment contract, the school shall give the prospective student
94-2 a copy of the contract, and a copy shall be placed in the student's
94-3 permanent school file.
94-4 (d) A promissory note signed by a student must include the
94-5 Federal Trade Commission statement required for a holder in due
94-6 course.
94-7 Sec. 32. LOAN COUNSELING BY MASSAGE SCHOOL. (a) A school
94-8 shall conduct loan counseling entrance interviews with each
94-9 prospective student seeking a loan during the enrollment process.
94-10 A student borrower shall be counseled before the initial
94-11 disbursement of loan proceeds, shortly before the student ceases
94-12 one-half of the course, and before the student is issued a
94-13 certificate of completion.
94-14 (b) The school's financial aid officer or counselor shall
94-15 conduct the interviews required by Subsection (a) of this section.
94-16 The interview must include a discussion of:
94-17 (1) the rights and responsibilities of the student as
94-18 a borrower;
94-19 (2) what a loan is and the importance of repayment;
94-20 (3) the total cost of the program in which the student
94-21 will be enrolled;
94-22 (4) the availability of other forms of financial aid,
94-23 grants, and part-time work;
94-24 (5) the starting range and average reported salaries
94-25 of those in the occupation for which the student will be trained,
94-26 if available; and
94-27 (6) job placement services provided by the school and
95-1 the employment rate of persons who attended the school and were
95-2 enrolled in the program in which the student is enrolled.
95-3 (c) A school approved to accept state or federal educational
95-4 loans or grants shall adopt, in addition to the provisions in this
95-5 section, measures to reduce defaults and improve borrowers'
95-6 understanding and respect for the loan repayment obligation as
95-7 provided in 34 C.F.R., Parts 668 and 682.
95-8 (d) The school must give a copy of the Texas Guaranteed
95-9 Student Loan Corporation's "Your Future" guide, or a comparable
95-10 document approved by the department, to a prospective student at a
95-11 time and in a manner that provide the student with sufficient
95-12 opportunity to read the guide or other document and discuss the
95-13 contents with the school's financial aid officer, if necessary for
95-14 understanding and clarity, before signing an enrollment contract
95-15 and before the school accepts the student in a course of study.
95-16 (e) The prospective student must sign a document stating
95-17 that the student:
95-18 (1) attended a loan counseling entrance interview; and
95-19 (2) received a copy of the "Your Future" guide, or
95-20 comparable document in the time provided by Subsection (d) of this
95-21 section.
95-22 (f) A copy of the signed document required by Subsection (e)
95-23 of this section must be sent to the student, guarantor, and lender
95-24 and must be placed in the student's permanent school file.
95-25 Sec. 33. RECORDS OF MASSAGE SCHOOL. (a) A massage school
95-26 shall maintain permanent records for all students enrolled, as
95-27 required by the department.
96-1 (b) A school shall adopt a plan to preserve permanent
96-2 records and submit the plan to the department for approval. The
96-3 plan must:
96-4 (1) provide that at least one copy of the records will
96-5 be held in a secure depository; and
96-6 (2) designate an appropriate official to provide a
96-7 student with copies of records or transcripts on request.
96-8 (c) The school shall make the first copy of records or
96-9 transcripts at no charge to the student. The school may make a
96-10 reasonable charge to provide additional copies of records,
96-11 transcripts, or other student information.
96-12 (d) If a school closes, the records become the property of
96-13 the state.
96-14 Sec. 34. DEPARTMENT ADDRESS. A massage school shall post on
96-15 the premises of the school at a prominent and conspicuous location
96-16 the name, mailing address, and telephone number of the department
96-17 for the purpose of directing complaints to the department.
96-18 Sec. 35. COMPLAINTS. The department shall prepare
96-19 information of public interest describing the functions of the
96-20 department and the procedures by which complaints are filed with
96-21 and resolved by the department against a massage school. The
96-22 department shall make the information available to the public and
96-23 appropriate state agencies.
96-24 Sec. 36. FINANCIAL STABILITY. (a) A school may not reflect
96-25 unearned tuition as a current asset unless the amount shown in
96-26 current assets that reflects unearned tuition is offset by an equal
96-27 amount shown as a current liability. The school must meet one of
97-1 the following criteria in order to be determined as financially
97-2 sound and capable of fulfilling its commitments for training:
97-3 (1) current assets must bear a relationship to current
97-4 liabilities in a ratio of at least one-to-one;
97-5 (2) the equity of the owner of the school must be in
97-6 excess of $10,000,000; or
97-7 (3) the school must have posted, or set aside in a
97-8 dedicated escrow account, a bond, certificate of deposit,
97-9 irrevocable letter of credit or comparable security, acceptable to
97-10 the department, each made payable to the State of Texas, in an
97-11 amount sufficient to cover the school's record storage costs,
97-12 teachout, and tuition and fees refund and recovery exposure based
97-13 on the evidence the school submits proving its projected maximum
97-14 total unearned tuition during the period of time covered by the
97-15 evidence of indebtedness to the state.
97-16 (b) The school must demonstrate to the satisfaction of the
97-17 department its financial soundness and ability to fulfill its
97-18 commitments for training.
97-19 Sec. 37. CRIMINAL PENALTIES. (a) A person commits an
97-20 offense if the person fails to comply with Section 2A or 25 of this
97-21 Act.
97-22 (b) A person commits an offense if the person intentionally
97-23 or knowingly uses for personal benefit funds in an amount greater
97-24 than $10,000 that are due as student refunds under Section 25 of
97-25 this Act. An offense under this subsection is a felony of the
97-26 third degree. Except as provided by Subsection (b) of this
97-27 section, an offense under this section is a Class A misdemeanor.
98-1 PART 4. BARBER SCHOOLS OR COLLEGES
98-2 SECTION 4.01. Section 9, Chapter 65, Acts of the 41st
98-3 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
98-4 Texas Civil Statutes), is amended to read as follows:
98-5 Sec. 9. PERMIT TO OPERATE BARBER SCHOOL OR COLLEGE. (a)
98-6 Any person desiring to conduct or operate a barber school or
98-7 college in this state shall first obtain a permit from the board
98-8 after demonstrating that said school or college has first met the
98-9 requirements of this section. Said permit shall be prominently
98-10 displayed at all times at such school or college. The board shall
98-11 determine that an applicant for a barber school or college permit
98-12 is financially sound and capable of fulfilling its commitments for
98-13 training before granting the permit. <Each applicant shall furnish
98-14 a surety bond in the amount of $10,000, payable to the state, and
98-15 conditioned to refund unpaid tuition if the school or college
98-16 closes or ceases operation before its courses of instruction have
98-17 been completed.>
98-18 (b) No certificate or permit shall be issued as provided for
98-19 herein to an applicant to be a student in such a school or college
98-20 unless said applicant has completed at least a seventh grade
98-21 education and such other requirements as shall be specified by the
98-22 board. Each applicant to be a student must submit an enrollment
98-23 application to the board in the form prescribed by the board. The
98-24 application must be accompanied by a nonrefundable application fee
98-25 set by the board in an amount not to exceed $25. A separate
98-26 application is required for each enrollment, reenrollment, or
98-27 transfer enrollment. However, the application fee applies only to
99-1 the first enrollment and may not be charged for any later
99-2 enrollment, reenrollment, or transfer enrollment.
99-3 (c) The board may not approve a barber school or college
99-4 unless the school or college requires the following hours of
99-5 instruction as a prerequisite for graduation:
99-6 (1) Class A barber--1,500 hours of instruction
99-7 completed in a course of not less than nine months, with not less
99-8 than 800 hours in the actual practice of cutting hair as a primary
99-9 service;
99-10 (2) barber technician--300 hours of instruction
99-11 completed in a course of not less than eight weeks;
99-12 (3) wig instructor--200 hours of instruction completed
99-13 in a course of not less than eight weeks;
99-14 (4) wig specialist--300 hours of instruction completed
99-15 in a course of not less than eight weeks;
99-16 (5) manicurist--300 hours of instruction completed in
99-17 a course of not less than eight weeks; and
99-18 (6) teacher--1,000 hours of instruction completed in a
99-19 course of not less than six months.
99-20 (d) If a school or college offers a refresher course, that
99-21 course must require at least 300 hours of instruction. The board
99-22 by rule shall set the curriculum for a refresher course.
99-23 (e) A barber school or college shall submit a monthly
99-24 progress report to the board regarding each student in attendance
99-25 at the school or college. The report must certify the daily
99-26 attendance record of the student and the number of credit hours
99-27 earned by the student during the previous month. The school or
100-1 college may not increase, decrease, or withhold for any reason the
100-2 number of credit hours earned by a student. On completion by a
100-3 student of a prescribed course of instruction, the school or
100-4 college shall certify to the board that the student has completed
100-5 the required number of hours and is eligible to take the
100-6 appropriate examination. Each barber school or college permittee
100-7 shall furnish to the board:
100-8 (1) the current course completion rates of students
100-9 who attend a course of instruction offered by the school or
100-10 college; and
100-11 (2) job placement rates and employment rates of
100-12 students who complete a course of instruction.
100-13 (f) Such schools or colleges shall instruct students in the
100-14 theory and practice of such subjects as may be necessary and
100-15 beneficial in the practice of barbering, including the following:
100-16 (1) all laws governing the practice of barbering in
100-17 this state;
100-18 (2) scientific fundamentals of barbering;
100-19 (3) hygienic bacteriology;
100-20 (4) histology of the hair, skin, muscles, and nerves;
100-21 (5) the structure of the head, neck and face;
100-22 (6) elementary chemistry relating to sterilization and
100-23 antiseptics;
100-24 (7) common disorders of the skin and hair;
100-25 (8) massaging muscles of the scalp, face, and neck;
100-26 (9) hair-cutting;
100-27 (10) shaving, shampooing, and bleaching and dyeing of
101-1 the hair;
101-2 (11) manicuring, administering facial treatments, hair
101-3 weaving, servicing wigs; and
101-4 (12) any other skills, techniques, services,
101-5 treatments, or undertakings within the definition of the practice
101-6 of barbering provided for in this Act.
101-7 (g) No barber school or college which issues "Class A"
101-8 certificates shall be approved by the Board for the issuance of a
101-9 permit unless said school or college has the following:
101-10 (1) An adequate school site housed in a substantial
101-11 building of a permanent-type construction containing a minimum of
101-12 not less than two thousand, eight hundred (2,800) square feet of
101-13 floor space. Such space shall be divided into the following
101-14 separate departments: a senior department, a junior department, a
101-15 class theory room, a supply room, an office space, a dressing and
101-16 cloak room, and two (2) sanitary, modern separate rest rooms,
101-17 equipped with one (1) commode each and a urinal in one (1) rest
101-18 room.
101-19 (2) A hard-surface floor covering of tile or other
101-20 suitable material.
101-21 (3) A minimum of twenty (20) modern barber chairs with
101-22 cabinet and mirror for each chair.
101-23 (4) One (1) lavatory in back of each two (2) chairs.
101-24 (5) A liquid sterilizer for each chair.
101-25 (6) An adequate number of latherizers, vibrators, and
101-26 hair dryers for the use of students.
101-27 (7) Adequate lighting of all rooms.
102-1 (8) At least twenty (20) classroom chairs, a
102-2 blackboard, anatomical charts of the head, neck and face, and one
102-3 (1) barber chair in the class theory room.
102-4 (9) A library and library facilities available to
102-5 students, containing a medical dictionary and a standard work on
102-6 the human anatomy.
102-7 (10) Adequate drinking fountain facilities, but at
102-8 least one (1) to each floor.
102-9 (11) Adequate toilet facilities for the students.
102-10 (12) Adequate fire-fighting equipment to be maintained
102-11 in case of emergency.
102-12 (h) Anything to the contrary in this Act notwithstanding,
102-13 each such school shall place a sign on the front outside portion of
102-14 its building in a prominent place. Such sign shall read "BARBER
102-15 SCHOOL--STUDENT BARBERS", and shall be a minimum size of ten-inch
102-16 block letters. Printed signs containing the foregoing information
102-17 shall be prominently displayed upon each inside wall of the
102-18 establishment.
102-19 (i) A minimum of five (5) hours a week must be devoted to
102-20 the instruction of theory in the classroom, with Saturdays devoted
102-21 exclusively to practical work over the chair. If classes are
102-22 conducted five (5) days a week, one (1) hour each day must be
102-23 devoted to instruction in theory. If classes are conducted four
102-24 (4) days a week, one (1) hour and fifteen (15) minutes each day
102-25 must be devoted to instruction in theory. An attendance record
102-26 book must be maintained by the school showing a record of the
102-27 students' daily attendance. These records are subject to
103-1 inspection at any and all times by the Board.
103-2 (j) No barber school or college which issues "Class A"
103-3 certificates shall be approved by the Board unless it is under the
103-4 direct supervision and control of a barber who holds a current
103-5 registered "Class A" certificate to practice barbering under the
103-6 Texas Barber Law, and who can show evidence of at least five (5)
103-7 years experience as a practicing barber. Each school shall have at
103-8 least one (1) teacher who has a teacher's certificate issued by the
103-9 Board upon examination and who is capable and qualified to teach
103-10 the curriculum outlined herein to the students of such school. All
103-11 such teachers are required to obtain a teacher's certificate from
103-12 the Board and, in addition to requirements set forth by the Board,
103-13 must meet the following requirements:
103-14 (1) Demonstrate their ability to teach the said
103-15 curriculum outlined herein through a written and practical test to
103-16 be given by the Board.
103-17 (2) Hold a current certificate as a registered "Class
103-18 A" barber under this law.
103-19 (3) Demonstrate to the Board that such applicant is
103-20 qualified to teach and instruct, to be determined at the discretion
103-21 of the Board, and show evidence that the applicant has had at least
103-22 six (6) months experience as a teacher in an approved school or
103-23 college in Texas or in another state approved by the Board, or have
103-24 completed 1,000 hours of instruction in a postgraduate course as a
103-25 student teacher in an approved barber school or college in Texas.
103-26 (k) A licensed barber who presents evidence satisfactory to
103-27 the Board of at least five (5) years' experience as a practicing
104-1 barber in a barber shop operating under a permit issued by the
104-2 Board, with not less than two (2) years' experience occurring in
104-3 the period immediately before application, is also entitled to
104-4 apply to take the examination for a teacher's certificate.
104-5 Applicants desiring an examination for a teacher's certificate
104-6 shall make an application to the Board and accompany same with an
104-7 examination fee <not to exceed $100>. A new application and fee
104-8 must be presented for each examination taken by the applicant and
104-9 fees paid are not refundable. The application must state the
104-10 education and experience level of the applicant in all courses or
104-11 programs that the applicant will teach or instruct. The Board
104-12 shall review an application for competency, consistency, and the
104-13 overall quality of the applicant. A teacher's certificate shall be
104-14 issued upon satisfactory completion of the examination and payment
104-15 of a certificate fee <not to exceed $100 if the applicant fulfills
104-16 the requirements during the period from November 1 of an
104-17 odd-numbered year and extending through October 31 of the following
104-18 even-numbered year or not to exceed $50 if the applicant fulfills
104-19 the requirements during the period from November 1 of an
104-20 even-numbered year and extending through October 31 of the
104-21 following odd-numbered year>. Teacher's certificates shall be
104-22 renewed biennially on or before November 1st of odd-numbered years
104-23 upon the payment of a renewal fee <not to exceed $100>.
104-24 (l) In addition to a minimum of one (1) teacher required in
104-25 Subsection (j)(3) of this Section, each barber school or college
104-26 which issues "Class A" certificates shall maintain at least one (1)
104-27 qualified instructor, holding a registered "Class A" certificate,
105-1 for each twenty (20) students or any fraction thereof for
105-2 instruction in practical work; provided, however, that a teacher
105-3 can also serve as an instructor in practical work in addition to
105-4 his position as a theory teacher. A barber school or college may
105-5 not enroll more than one (1) student teacher for each licensed
105-6 teacher who teaches at the school or college. A student teacher
105-7 must concentrate on teaching skills and may not be booked with
105-8 customers. Violation of this requirement constitutes a ground for
105-9 the revocation of the person's student teacher barber license.
105-10 (m) No barber school or college shall be issued a permit to
105-11 operate under the provisions of this Section until it has first
105-12 furnished the following evidence to the Board:
105-13 (1) A detailed drawing and chart of the proposed
105-14 physical layout of such school, showing the departments, floor
105-15 space, equipment, lights and outlets.
105-16 (2) Photographs of the proposed site for such school
105-17 including the interior and exterior of the building, rooms and
105-18 departments.
105-19 (3) A detailed copy of the training program.
105-20 (4) A copy of the school catalog and promotional
105-21 literature.
105-22 (5) A copy of the building lease or proposed building
105-23 lease where the building is not owned by the school or college.
105-24 (6) A sworn statement showing the true ownership of
105-25 the school or college.
105-26 (7) A permit fee <not to exceed $1,000>.
105-27 (8) A statement of any final convictions of the
106-1 owners, school directors, recruiters, instructional faculty, or
106-2 other selected personnel of the barber school or college as
106-3 determined by the Board. The Board may obtain criminal history
106-4 records of school directors or instructional faculty from any law
106-5 enforcement agency, including the United States Department of
106-6 Justice, the Department of Public Safety of the State of Texas, the
106-7 Texas Department of Criminal Justice, or the police department of a
106-8 municipality.
106-9 (n) A barber school or college shall post on the premises of
106-10 the school at a prominent and conspicuous location the name,
106-11 mailing address, and telephone number of the Board for the purpose
106-12 of directing complaints to the Board.
106-13 (o) <(n)> No such school or college shall be operated and no
106-14 students shall be solicited or enrolled by it until the Board shall
106-15 determine by inspection that the school has been set up and
106-16 established in accordance with this Section and Section 9A of this
106-17 Act and the proposal submitted to the Board and approved by it
106-18 prior to the issuance of a permit. A barber school or college that
106-19 is not approved by the Board on initial inspection is subject to
106-20 reinspection by the Board. For each reinspection, the Board shall
106-21 charge a reinspection fee set by the Board <in an amount not to
106-22 exceed $500>.
106-23 (p) <(o)> Any such school or college must obtain renewal of
106-24 its permit by September 1st each year by the payment of an annual
106-25 renewal fee <not to exceed $300>.
106-26 (q) <(p)> If a barber school or college changes ownership,
106-27 the Board shall be notified of the transfer not later than the 10th
107-1 day before the date on which the change becomes effective.
107-2 (r) <(q)> Any school or college desiring to change the
107-3 location of such school or college must first obtain approval by
107-4 the Board by showing that the proposed location meets the
107-5 requirements of this Section.
107-6 (s) <(r)> If said Board refuses to issue a permit to any
107-7 such school or college, such school or college may by written
107-8 request demand the reasons for said refusal and if said school or
107-9 college shall thereupon meet said requirements and makes a showing
107-10 that the requirements of this law have been complied with, then if
107-11 said Board refuses to issue said permit, a suit may be instituted
107-12 by such school or college in any of the District Courts of Travis
107-13 County, Texas, to require said Board to issue such permit. Any
107-14 such suit must be filed within twenty (20) days after the final
107-15 order of said Board refusing to issue such permit is entered,
107-16 provided registered notice is mailed or it is otherwise shown that
107-17 said school or college has notice within ten (10) days from the
107-18 entering or making of said order.
107-19 (t) <(s)> In the event such school or college after a permit
107-20 is issued to it violates any of the requirements of this law,
107-21 either directly or indirectly, then said Board shall suspend or
107-22 revoke the permit of any such school or college. Before suspending
107-23 or revoking any such permit, said Board must give such school or
107-24 college a hearing, notice of which hearing shall be delivered to
107-25 such school or college at least twenty (20) days prior to the date
107-26 of said hearing. If said Board suspends or revokes said permit at
107-27 said hearing, then such school or college may file suit to prevent
108-1 the same or to appeal from said order. Any and all suits filed
108-2 hereunder shall be filed within twenty (20) days from the date of
108-3 the order of said Board in any of the District Courts of Travis
108-4 County, Texas, and not elsewhere, and the order shall not become
108-5 effective until said twenty (20) days has expired.
108-6 (u) <(t)> The Attorney General may institute any injunction
108-7 proceedings or such other proceeding as to enforce the provisions
108-8 of this Act, and to enjoin any barber or school or college from
108-9 operating without having complied with the provisions hereof, and
108-10 each shall forfeit to the State of Texas the sum of Twenty-five
108-11 Dollars ($25) per day as a penalty for each day's violation, to be
108-12 recovered in a suit by the Attorney General. An action for an
108-13 injunction under this section must be brought in Travis County.
108-14 (v) <(u) A holder of a barber school or college permit shall
108-15 furnish each prospective student with:>
108-16 <(1) a copy of the course outline;>
108-17 <(2) a schedule of the tuition and other fees
108-18 assessed;>
108-19 <(3) the refund policy imposed under Section 9A of
108-20 this Act;>
108-21 <(4) regulations relating to absences;>
108-22 <(5) the grading policy;>
108-23 <(6) the rules of operation and conduct;>
108-24 <(7) regulations relating to incomplete grades;>
108-25 <(8) the name, mailing address, and telephone number
108-26 of the board for the purpose of directing complaints to the board;
108-27 and>
109-1 <(9) the current rates of job placement and employment
109-2 of students who complete a course of training.>
109-3 <(v) A holder of a barber school or college permit shall
109-4 publish in its catalogue and enrollment contract a description of
109-5 the refund policy required under Section 9A of this Act.>
109-6 <(w) If the board has reasonable cause to believe that a
109-7 barber school or college has violated this Act or a rule adopted
109-8 under this Act, the board may order a peer review of the school or
109-9 college or suspend the admission of students to the school or
109-10 college. A peer review ordered under this subsection shall be
109-11 conducted by a peer review team composed of knowledgeable persons
109-12 selected by the board. The board shall attempt to provide a
109-13 balance on each team between members assigned to the team who are
109-14 from this state and those who are from other states. The team
109-15 shall provide the board with an objective assessment of the content
109-16 of the curriculum and its application. The school or college under
109-17 review shall pay the costs of the peer review.>
109-18 <(x)> A barber school or college must submit to the board
109-19 for approval the course lengths and curriculum content for each
109-20 course offered by the school or college. The course lengths and
109-21 content may not be implemented unless the board approves them. The
109-22 course lengths and content shall reasonably ensure that students
109-23 develop the job skills and knowledge necessary for employment. The
109-24 board shall require a school or college to account fully for all
109-25 curriculum contents and course lengths before issuing or renewing a
109-26 permit, and a school or college that is manipulating course lengths
109-27 below or above industry standards shall be placed on probation
110-1 until justification for the deviation is proved or the practice
110-2 ceases.
110-3 (w) <(y)> A barber school or college that violates this Act
110-4 or a rule adopted under this Act is liable for a civil penalty in
110-5 addition to any injunctive relief or other remedy provided by law.
110-6 The civil penalty may not exceed $1,000 a day for each violation.
110-7 The Attorney General, at the request of the board, may bring a
110-8 civil action to collect a civil penalty under this subsection.
110-9 Civil penalties recovered in a suit brought under this subsection
110-10 shall be deposited in the state treasury to the credit of the
110-11 General Revenue Fund.
110-12 (x) The board may deny, suspend, or revoke a barber school
110-13 or college permit or place the holder of the permit on probation if
110-14 the permit holder, the school, or a representative of the school
110-15 gives a prospective student information relating to the school that
110-16 is false, fraudulent, deceptive, substantially inaccurate, or
110-17 misleading.
110-18 SECTION 4.02. Section 9A, Chapter 65, Acts of the 41st
110-19 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
110-20 Texas Civil Statutes), is amended by amending Subsections (b)-(g)
110-21 and adding Subsections (h)-(j) to read as follows:
110-22 (b) Each holder of a barber school or college permit must
110-23 maintain a refund policy for the refund of the unused part of
110-24 tuition, fees, and other charges assessed a student if the student,
110-25 at the expiration of the cancellation period established under
110-26 Subsection (a) of this section, terminates enrollment or is
110-27 terminated by the school or college, as provided by this subsection
111-1 <fails to enter the course of training, withdraws from the course
111-2 of training, or is terminated from the course of training before
111-3 completion of the course>. The refund policy must provide that:
111-4 (1) a refund is based on the period of the student's
111-5 enrollment, computed on the basis of course time expressed in clock
111-6 hours;
111-7 (2) the effective date of the termination for payment
111-8 of a refund <refund purposes> is the earliest of:
111-9 (A) the last date of attendance, if the student
111-10 is terminated for failure to satisfy an attendance, grade, or work
111-11 requirement <by the school or college>;
111-12 (B) the date of receipt by the permit holder of
111-13 written notice of withdrawal by the student; <or>
111-14 (C) the 10th consecutive <10> school day the
111-15 student has been absent, unless any of the absences are excused by
111-16 the school or college <days after the last date of attendance>; or
111-17 (D) the date the student fails to return, as
111-18 scheduled, from a leave of absence; and
111-19 (3) if tuition is collected before beginning the
111-20 course of training and if, after the expiration of the cancellation
111-21 period, the student does not begin the course of training, the
111-22 school or college may retain not more than $100.
111-23 (c) If a student who begins a course of training that is
111-24 scheduled to run not more than 12 months withdraws from the course
111-25 or is terminated from the course by the school or college, the
111-26 barber school or college may retain $100 in tuition and fees paid
111-27 by that student and is not obligated to refund any additional
112-1 outstanding tuition if the student withdraws or is terminated
112-2 during the last quarter <50 percent> of the course. If the student
112-3 withdraws or is terminated before the last quarter <50 percent> of
112-4 the course begins, the school or college shall refund the following
112-5 percentages of any outstanding tuition:
112-6 (1) for withdrawal or termination occurring during the
112-7 first week or first one-tenth of the course, whichever is less, 90
112-8 percent;
112-9 (2) for withdrawal or termination occurring after the
112-10 first week or first one-tenth of the course, whichever is less, but
112-11 within the first three weeks of the course, 80 percent;
112-12 (3) for withdrawal or termination occurring after the
112-13 first three weeks of the course but not later than the last date of
112-14 the first 25 percent of the course, 75 percent; <and>
112-15 (4) for withdrawal or termination occurring during
112-16 <not later than the completion of> the second 25 percent of the
112-17 course, 50 percent;
112-18 (5) for withdrawal or termination occurring during the
112-19 third 25 percent of the course, 10 percent; and
112-20 (6) for withdrawal or termination occurring after 50
112-21 percent of the course has been completed, the school must allow the
112-22 student to reenter at any time during the 48-month period following
112-23 the date of withdrawal or termination at no additional charge,
112-24 provided the full agreed-on tuition has been tendered.
112-25 (d) <For students withdrawing or terminating after 50
112-26 percent of the course has been completed, the school must allow
112-27 that student to reenter at any time during the 48-month period
113-1 following the date of withdrawal or termination.>
113-2 <(e)> A refund owed under this section must be paid not
113-3 later than the 60th <30th> day after the date on which the student
113-4 becomes eligible for the refund, as determined under Subsection (b)
113-5 of this section.
113-6 (e) <(f)> If a refund is not made within the period required
113-7 by this section, the school or college shall pay, as a penalty,
113-8 interest on the refund for the interval beginning with the first
113-9 day following the expiration of the refund period and ending with
113-10 the day immediately preceding the date the refund is made. If the
113-11 refund is made to a lending institution, the interest shall also be
113-12 paid to that institution and applied against the student's loan.
113-13 The board <commissioner of education> annually shall establish the
113-14 level of interest at a level sufficient to provide a deterrent to
113-15 the retention of student funds. The board may exempt a school or
113-16 college from the payment of the interest if the school or college
113-17 makes a good faith effort to refund the tuition but is unable to
113-18 locate the student. The school or college shall provide to the
113-19 agency on request documentation of the effort to locate the
113-20 student.
113-21 (f) <(g)> A barber school or college shall record a grade of
113-22 "incomplete" for a student who withdraws but is not entitled to a
113-23 refund under Subsection (c) of this section if the student requests
113-24 the grade at the time the student withdraws and the student
113-25 withdraws for an appropriate reason unrelated to the student's
113-26 academic status. A student who receives a grade of incomplete may
113-27 reenroll in the program during the 12-month <48-month> period
114-1 following the date the student withdraws and may complete those
114-2 incomplete subjects without payment of additional tuition.
114-3 (g) If a course of instruction is discontinued by the school
114-4 and this prevents the student from completing the course, all
114-5 tuition and fees paid are due and refundable.
114-6 (h) Refunds under this section shall be applied:
114-7 (1) first, to the repayment of student loans;
114-8 (2) second, to the repayment of other government
114-9 loans;
114-10 (3) third, to the repayment of other financial loans;
114-11 and
114-12 (4) last, to the student's personal tuitional
114-13 expenditures.
114-14 (i) Not later than the 30th day after the date on which a
114-15 refund is due to a student who has received a student loan, the
114-16 school or college shall notify the guaranty agency and the lender
114-17 of the required refund and any refund previously made. The
114-18 guaranty agency and the lender shall notify the student and the
114-19 school or college if the student's loan has been transferred to
114-20 another holder.
114-21 (j) The failure of a school or college or a person to pay a
114-22 tuition refund as required by this section is a deceptive trade
114-23 practice under Subchapter E, Chapter 17, Business & Commerce Code.
114-24 SECTION 4.03. Chapter 65, Acts of the 41st Legislature, 1st
114-25 Called Session, 1929 (Article 8407a, Vernon's Texas Civil
114-26 Statutes), is amended by adding Sections 9B-9Q to read as follows:
114-27 Sec. 9B. Before the board may approve the application of a
115-1 person for a barber school or college permit, the board must find,
115-2 on investigation at the premises of the school, that the school
115-3 meets the following criteria:
115-4 (1) the courses, curriculum, and instruction are of a
115-5 quality, content, and length as may reasonably and adequately
115-6 achieve the stated objective for which the courses, curriculum, or
115-7 instruction are offered;
115-8 (2) there is in the school adequate space, equipment,
115-9 instructional material, and instructor personnel to provide
115-10 training of good quality;
115-11 (3) educational and experience qualifications of
115-12 directors, administrators, and instructors are adequate;
115-13 (4) the school maintains a written record of the
115-14 previous education and training of the applicant student and
115-15 clearly indicates that appropriate credit has been given by the
115-16 school for previous education and training, with the new training
115-17 period shortened where warranted through use of appropriate skills
115-18 or achievement tests and the student notified;
115-19 (5) a copy of the course outline; schedule of tuition,
115-20 fees, refund policy, and other charges; regulations pertaining to
115-21 absence, grading policy, and rules of operation and conduct;
115-22 regulations pertaining to incomplete grades; the name, mailing
115-23 address, and telephone number of the board for the purpose of
115-24 directing complaints to the agency; the current rates of job
115-25 placement and employment of students issued a certificate of
115-26 completion; and notification of the availability of the cost
115-27 comparison information prepared under Section 9H of this Act will
116-1 be furnished to the student in the school catalog or comparable
116-2 written documents before enrollment;
116-3 (6) on completion of training, the student is given a
116-4 certificate by the school indicating the course and that training
116-5 was satisfactorily completed;
116-6 (7) adequate records as required by the board are kept
116-7 to show attendance and progress or grades, and satisfactory
116-8 standards relating to attendance, progress, and conduct are
116-9 enforced;
116-10 (8) the school complies with all local, city, county,
116-11 municipal, state, and federal regulations; the board may require
116-12 evidence of compliance as is necessary;
116-13 (9) the school is financially sound and capable of
116-14 fulfilling its commitments for training;
116-15 (10) the school's administrators, directors, owners,
116-16 and instructors are of good reputation and character;
116-17 (11) the school has, maintains, and publishes in its
116-18 catalog and enrollment contract the proper policy for the refund of
116-19 the unused portion of tuition, fees, and other charges in the event
116-20 the student enrolled by the school fails to take the course or
116-21 withdraws or is discontinued from the course at any time before
116-22 completion;
116-23 (12) the school does not use erroneous or misleading
116-24 advertising, either by actual statement, omission, or intimation as
116-25 determined by the board;
116-26 (13) additional criteria as may be required by the
116-27 commission;
117-1 (14) the school does not use a name like or similar to
117-2 an existing tax-supported school in the same area;
117-3 (15) the school furnishes to the board the current
117-4 rates of students who receive a certificate of completion and of
117-5 job placement and employment of students issued a certificate of
117-6 completion;
117-7 (16) the school furnishes to the board for approval or
117-8 disapproval student admission requirements for each course or
117-9 program offered by the school;
117-10 (17) the school furnishes to the board for approval or
117-11 disapproval the course lengths and curriculum content for each
117-12 course offered by the school; and
117-13 (18) the school does not owe a civil penalty under
117-14 Section 9 of this Act.
117-15 Sec. 9C. (a) A barber school or college must submit to the
117-16 board for approval, on an annual basis, a school catalog or
117-17 comparable written documents detailing the consumer information
117-18 that must be given to a prospective student before enrollment. The
117-19 school catalog or documents must include:
117-20 (1) the name and address of the school and the
117-21 school's governing body and officials;
117-22 (2) a calendar of the school year;
117-23 (3) school policies on enrollment;
117-24 (4) rules relating to absences;
117-25 (5) the school grading policy;
117-26 (6) the school's hours of operation and rules of
117-27 conduct;
118-1 (7) a schedule of the tuition and other fees assessed;
118-2 (8) the school's cancellation and refund policy;
118-3 (9) a general description of the course or courses
118-4 offered;
118-5 (10) information on entrance testing and remedial
118-6 development plans;
118-7 (11) state licensing requirements for courses intended
118-8 to result in licensing of the student;
118-9 (12) starting range and average reported salaries for
118-10 the prior year's graduates in occupations for which courses are
118-11 offered, if the information is available;
118-12 (13) the current rates of job placement and employment
118-13 of students who complete a course of training;
118-14 (14) the school policy on credit for previous
118-15 education and training;
118-16 (15) school regulations relating to incomplete grades;
118-17 (16) information on the transferability of credits
118-18 earned;
118-19 (17) the name, mailing address, and telephone number
118-20 of the board for the purpose of directing complaints to the board
118-21 and the mechanism and procedures for resolving grievances submitted
118-22 to the board;
118-23 (18) a statement that the board has information on
118-24 cost comparison with similar schools;
118-25 (19) market and job availability information, if
118-26 available;
118-27 (20) the names of the members of any advisory council
119-1 of the school and the company for which they work; and
119-2 (21) other information required by the executive
119-3 director or board if reasonable notice has been given by the board
119-4 to the school of the additional requirements.
119-5 (b) A prospective student must receive the catalog or other
119-6 document at a time and in a manner that provides the student with
119-7 sufficient opportunity to read the catalog before signing an
119-8 enrollment contract and before the school accepts the student in a
119-9 course of study.
119-10 (c) A student must sign a receipt stating that:
119-11 (1) the catalog was received by the student before any
119-12 commitment made by the student to the school or by the school to
119-13 the student;
119-14 (2) the student was given an opportunity to discuss
119-15 the catalog with a representative of the school; and
119-16 (3) the student understands the contents and
119-17 implications of the catalog.
119-18 (d) The receipt required by Subsection (c) of this section
119-19 must be placed in the student's permanent school file and a copy of
119-20 the receipt must be delivered to the student.
119-21 Sec. 9D. (a) A barber school or college must submit to the
119-22 board for approval the course lengths and curriculum content for
119-23 each course offered by the school or college. The course lengths
119-24 and content may not be implemented unless the board approves them.
119-25 The course lengths and content shall reasonably ensure that
119-26 students develop the job skills and knowledge necessary for
119-27 employment.
120-1 (b) The board shall require a school or college to fully
120-2 account for all curriculum contents and course lengths before
120-3 issuing or renewing a permit and a school or college that is
120-4 offering course lengths below or above industry standards may be
120-5 issued a conditional permit to operate.
120-6 Sec. 9E. (a) The board shall set and enforce minimum
120-7 standards for completion and employment rates of courses, based on
120-8 collected data.
120-9 (b) In determining whether to renew a barber school or
120-10 college permit, the board shall consider the completion, placement,
120-11 and employment rates of students of the courses.
120-12 (c) Before a school or college may begin offering a new
120-13 course of study for students the school or college must show the
120-14 board the opportunity for jobs for graduates of the course and the
120-15 possibility of placement or employment.
120-16 (d) Before the board issues or renews a barber school or
120-17 college permit involving a school or college that offers or
120-18 advertises a placement service, the board may require the school or
120-19 college to file a certified copy of the school's or college's
120-20 placement records for the previous year.
120-21 Sec. 9F. (a) The board shall conduct on-site inspections of
120-22 a barber school or college to determine the normal operating
120-23 conditions of the school or college.
120-24 (b) The inspection required by Subsection (a) of this
120-25 section shall be unannounced.
120-26 (c) The executive director or a designee of the executive
120-27 director may inspect such things as the instructional books and
121-1 records, classrooms, dormitories, tools, equipment, and classes of
121-2 a barber school or college or an applicant for a permit for a
121-3 school or college at any reasonable time.
121-4 Sec. 9G. (a) At the beginning of each fiscal year the board
121-5 shall collect a fee from the school or college for deposit in a
121-6 special fund established in the state treasury called the barber
121-7 school or college fund and to be administered by the board.
121-8 (b) The amount of the fee is determined by applying a
121-9 percentage established by the school fund advisory board, to each
121-10 school's or college's annual gross tuition, with consideration
121-11 given to the school's size, expense of regulation, potential for
121-12 teachouts, tuition and fees refund and recovery exposure, and loan
121-13 default rates (with schools with high default rates paying higher
121-14 fees), and any other relevant factors. The fund shall be used for:
121-15 (1) the administration of this Act;
121-16 (2) the cost of teachouts as provided by this Act;
121-17 (3) the cost of tuition and fees recovery and the cost
121-18 of student refunds that a school has not made; and
121-19 (4) the cost of storing student records that have
121-20 become property of the state under this Act.
121-21 (c) The board may grant an exemption from payment into the
121-22 fund to a small school, as determined by the board, or to a school
121-23 that does not use guaranteed student loans for tuition revenue. A
121-24 school exempt as provided for by this subsection must pay the
121-25 necessary fees for regulation, as determined by the board, and
121-26 provide a bond, certificate of deposit, or comparable security, as
121-27 determined and approved by the board, that is sufficient to cover
122-1 the cost of the school's or college's record storage costs,
122-2 teachout, and tuition and fees refund and recovery exposure based
122-3 on the evidence the school or college submits proving its projected
122-4 maximum total unearned tuition during the period of the permit to
122-5 operate.
122-6 (d) The security shall be provided by the school or college
122-7 for the period during which the permit is issued, and the
122-8 obligation of the bond or other security must be that neither this
122-9 Act nor any rule adopted under this Act is violated by the school
122-10 or college or any of its officers, agents, or employees.
122-11 (e) The bond, certificate of deposit, or comparable security
122-12 must be issued by a company authorized to do business in the state,
122-13 conditioned that the parties to the transaction shall pay all
122-14 damages or expenses that the state or any governmental subdivision
122-15 or any student or potential student sustains resulting from a
122-16 violation. The bond, certificate of deposit, or comparable
122-17 security shall be to the state to be used only for payment for the
122-18 school's or college's teachout and tuition and fees refund due to a
122-19 student or potential student. The security shall be filed with the
122-20 board and must be in a form approved by the board.
122-21 (f) Schools domiciled, or having their principal place of
122-22 business, outside the state, that engage representatives to
122-23 canvass, solicit, or contract with any person in the state are
122-24 subject to the fee and security requirements of Subsection (c) of
122-25 this section.
122-26 (g) The board shall refer all expenses incurred by the
122-27 school or college fund in administering Subsections (b)(2) and (3)
123-1 of this section to the attorney general's office for collection.
123-2 The amounts collected shall be deposited to the fund. Attorney's
123-3 fees and court costs will be appropriated to the attorney general's
123-4 office.
123-5 (h) Interest the fund earns shall be reinvested in the fund.
123-6 Sufficient funds from the fund and the barber examiners fund no. 40
123-7 shall be appropriated to the board for the purpose outlined in this
123-8 section. The board shall administer claims made against the fund.
123-9 (i) If a school or college closes, the board shall attempt
123-10 to arrange for students of the closed school or college to attend
123-11 another barber school or college. The board shall adopt rules
123-12 specifying the circumstances under which a school is considered
123-13 closed.
123-14 (j) The expense incurred by a barber school or college in
123-15 providing training that is directly related to educating a student
123-16 who was enrolled in a closed school or college and placed in the
123-17 school or college under this section, including the applicable
123-18 tuition for the period of time for which the student has paid
123-19 tuition, shall be paid in accordance with rules of the board.
123-20 (k) The board shall make reasonable attempts to ensure that
123-21 schools under the board's jurisdiction, including closed schools,
123-22 fulfill the refund obligation as provided by Section 9A of this
123-23 Act. If a school refuses to fulfill the school's obligation or the
123-24 school's bond is insufficient to pay the cost of the teachout and
123-25 refund expenses, the teachout or the refund may be paid from the
123-26 barber school or college fund except that no school owned, either
123-27 in whole or in part, by a person or corporate entity who was an
124-1 owner, in whole or in part, of a previously closed school shall be
124-2 permitted to receive compensation for a teachout under this
124-3 section.
124-4 (l) If a student cannot be placed in another school or
124-5 college, the student's tuition and fees shall be refunded under
124-6 Section 9A(g) of this Act.
124-7 (m) If a student does not accept a place that is available
124-8 and reasonable in another school or college, the student's tuition
124-9 and fees shall be refunded under the refund policy maintained by
124-10 the closing school under Sections 9A(b) and (c) of this Act.
124-11 (n) Attorney's fees, court costs, or damages may not be paid
124-12 from the barber school or college fund.
124-13 (o) The board by rule shall establish and access reasonable
124-14 and necessary fees to all persons and entities licensed under this
124-15 Act to be used for the regulation of those persons and entities
124-16 licensed under this Act and to supplement the administration and
124-17 purposes outlined for the fund.
124-18 Sec. 9H. (a) The board shall prepare a comparison of the
124-19 cost to a student of courses of instruction or training programs at
124-20 all barber schools or colleges maintained by persons who hold
124-21 barber school or college permits issued by the board.
124-22 (b) The cost comparison must include for each school or
124-23 college a description of:
124-24 (1) average class size;
124-25 (2) facilities and equipment;
124-26 (3) employment and placement rates;
124-27 (4) length of program; and
125-1 (5) faculty qualifications.
125-2 Sec. 9I. (a) A barber school or college must disclose to
125-3 all prospective students state licensing requirements to practice
125-4 the occupation for which the student is training.
125-5 (b) A school or college must disclose to all prospective
125-6 students the performance of graduates from the school or college on
125-7 the licensing examination of the board if that information is
125-8 available.
125-9 Sec. 9J. (a) The board shall approve entrance requirements,
125-10 including minimum skills testing, for students who may be accepted
125-11 for a course of study in a barber school or college. The
125-12 requirements must be specific and provide that students who are
125-13 allowed to enter a course will have a reasonable chance of
125-14 completing the program.
125-15 (b) The school or college shall administer a standardized
125-16 test to students with a high school diploma or high school
125-17 equivalency certificate entering the school, if testing for minimum
125-18 skill competency is determined by the board as appropriate and
125-19 necessary to determine if remediation is needed. The test must be
125-20 administered before enrollment and must be nationally recognized as
125-21 appropriate and effective for minimum skills testing and high
125-22 school equivalency. If the test reveals the necessity for
125-23 remediation, the school or college must implement a plan to
125-24 encourage the student to improve in basic general education skills.
125-25 (c) A student must achieve a successful score on the test
125-26 required by this section before the student is obligated for
125-27 tuition and fees for the vocational portion of the school's
126-1 program.
126-2 (d) The school or college may, in accordance with federal
126-3 statutory provisions affecting guaranteed student loan programs, on
126-4 a case-by-case basis, refuse to provide the certification
126-5 statements required for guaranteed student loan eligibility, or
126-6 reduce the determination of need for a guaranteed student loan if
126-7 the school or college determines that the student's expenses to be
126-8 covered by the loan and the estimated cost of attendance, can be
126-9 met more appropriately by the school or college, directly by the
126-10 student, or by other sources.
126-11 Sec. 9K. (a) An applicant without a high school diploma or
126-12 high school equivalency certificate must pass an entrance test
126-13 approved by the board and be considered to have the ability to
126-14 benefit from the school or college before the school or college may
126-15 enroll the student.
126-16 (b) A school or college that admits a student who does not
126-17 have a high school diploma or high school equivalency certificate
126-18 must develop and implement a plan for counseling the student on
126-19 curriculum, student aid, employment opportunities, and the
126-20 remediation necessary for the student to obtain a high school
126-21 equivalency certificate and improve in basic general education
126-22 skills.
126-23 (c) The school or college must assist the student in
126-24 obtaining the remediation necessary for the student to pass a
126-25 standardized minimum skills equivalency test, approved by the
126-26 board, and the student must pass the test before entering the final
126-27 quarter of the course.
127-1 Sec. 9L. (a) The enrollment contract of a barber school or
127-2 college must contain:
127-3 (1) a disclosure that the contract is a legally
127-4 binding instrument on written acceptance of the student by the
127-5 school or college, unless canceled as provided by law;
127-6 (2) the school's or college's cancellation and refund
127-7 policy;
127-8 (3) the method of cancellation of the contract, the
127-9 effective date of any cancellation, and the name and address to
127-10 which the notice of cancellation should be sent or delivered;
127-11 (4) the total cost of the course including tuition and
127-12 all other charges;
127-13 (5) a notification that the fair market value of
127-14 equipment or supplies furnished to the student that the student
127-15 fails to return in a condition suitable for resale not later than
127-16 the 10th business day after the date of cancellation may be
127-17 retained by the school or college and deducted from any refund of
127-18 the student;
127-19 (6) a statement that if a student's enrollment is
127-20 canceled for any reason, the school or college will notify an
127-21 agency known to the school or college to be providing financial aid
127-22 to the student of the cancellation not later than the 30th day
127-23 after the date of cancellation;
127-24 (7) the name and description of the courses, including
127-25 the number of hours of classroom instruction or home study lessons;
127-26 and
127-27 (8) the Federal Trade Commission statement for a
128-1 holder in due course.
128-2 (b) An enrollment contract may not contain a wage assignment
128-3 provision or a confession of judgment clause.
128-4 (c) Immediately after a prospective student has signed an
128-5 enrollment contract, the school or college shall give the
128-6 prospective student a copy of the contract, and a copy shall be
128-7 placed in the student's permanent school or college file.
128-8 (d) A promissory note signed by a student must include the
128-9 Federal Trade Commission statement required for a holder in due
128-10 course.
128-11 Sec. 9M. (a) A school or college shall conduct loan
128-12 counseling entrance interviews with each prospective student
128-13 seeking a loan during the enrollment process. A student borrower
128-14 shall be counseled before the initial disbursement of loan
128-15 proceeds, shortly before the student completes one-half of the
128-16 course, and before the student is issued a certificate of
128-17 completion.
128-18 (b) The school's or college's financial aid officer or
128-19 counselor shall conduct the interviews required by Subsection (a)
128-20 of this section. The interview must include a discussion of:
128-21 (1) the rights and responsibilities of the student as
128-22 a borrower;
128-23 (2) what a loan is and the importance of repayment;
128-24 (3) the total cost of the program in which the student
128-25 will be enrolled;
128-26 (4) the availability of other forms of financial aid,
128-27 grants, and part-time work;
129-1 (5) the starting range and average reported salaries
129-2 of those in the occupation for which the student will be trained,
129-3 if available; and
129-4 (6) job placement services provided by the school or
129-5 college and the employment rate of persons who attended the school
129-6 or college and were enrolled in the program in which the student is
129-7 enrolled.
129-8 (c) A school approved to accept state or federal educational
129-9 loans or grants shall adopt, in addition to the provisions in this
129-10 section, measures to reduce defaults and improve borrowers
129-11 understanding and respect for the loan repayment obligation as
129-12 provided in 34 C.F.R., Parts 668 and 682.
129-13 (d) The school or college must give a copy of the Texas
129-14 Guaranteed Student Loan Corporation's "Your Future" guide, or a
129-15 comparable document approved by the board, to a prospective student
129-16 at a time and in a manner that provides the student with sufficient
129-17 opportunity to read the guide or other document and discuss the
129-18 contents with the school's financial aid officer, if necessary for
129-19 understanding and clarity, before signing an enrollment contract
129-20 and before the school accepts the student in a course of study.
129-21 (e) The prospective student must sign a document stating
129-22 that the student:
129-23 (1) attended a loan counseling entrance interview; and
129-24 (2) received a copy of the "Your Future" guide or
129-25 comparable document in the time provided by Subsection (d) of this
129-26 section.
129-27 (f) A copy of the signed document required by Subsection (e)
130-1 of this section must be sent to the student, guarantor, and lender
130-2 and must be placed in the student's permanent school or college
130-3 file.
130-4 Sec. 9N. (a) A barber school or college shall maintain
130-5 permanent records for all students enrolled, as required by the
130-6 board.
130-7 (b) A school or college shall adopt a plan to preserve
130-8 permanent records and submit the plan to the board for approval.
130-9 The plan must:
130-10 (1) provide that at least one copy of the records will
130-11 be held in a secure depository; and
130-12 (2) designate an appropriate official to provide a
130-13 student with copies of records or transcripts on request.
130-14 (c) The school or college shall make the first copy of
130-15 records or transcripts at no charge to the student. The school or
130-16 college may make a reasonable charge to provide additional copies
130-17 of records, transcripts, or other student information.
130-18 (d) If a school or college closes, the records become the
130-19 property of the state.
130-20 Sec. 9O. (a) The board may not adopt rules that restrict
130-21 advertising by a barber school or college except to prohibit false,
130-22 misleading, or deceptive advertising practices. The rules may not
130-23 restrict:
130-24 (1) the use of an advertising medium;
130-25 (2) the size or duration of an advertisement; or
130-26 (3) advertisement under a trade name.
130-27 (b) A school or college, the representative of a school or
131-1 college, or a recruiter for the school or college may not advertise
131-2 or represent, in writing or orally, that a school or college is
131-3 approved or accredited by the state. Those entities or persons may
131-4 advertise that the school or college has been granted a permit by
131-5 the state.
131-6 (c) A school or college, representative of a school or
131-7 college, or recruiter of a school or college may not make or cause
131-8 to be made a statement or representation, written, oral, or visual,
131-9 offering or publicizing a course, program, or school or college, if
131-10 the school or college, representative, or recruiter knew or
131-11 reasonably should have known that the statement or representation
131-12 was false, fraudulent, deceptive, substantially inaccurate, or
131-13 misleading.
131-14 Sec. 9P. (a) A school or college may not reflect unearned
131-15 tuition as a current asset unless the amount shown in current
131-16 assets that reflects unearned tuition is offset by an equal amount
131-17 shown as a current liability. The school or college must meet one
131-18 of the following criteria in order to be determined as financially
131-19 sound and capable of fulfilling its commitments for training:
131-20 (1) current assets must bear a relationship to current
131-21 liabilities in a ratio of at least one-to-one;
131-22 (2) the equity of the owner of the school or college
131-23 must be in excess of $10,000,000; or
131-24 (3) the school or college must have posted, or set
131-25 aside in a dedicated escrow account, a bond, certificate of
131-26 deposit, irrevocable letter of credit, or comparable security,
131-27 acceptable to the board, each made payable to the State of Texas,
132-1 in an amount sufficient to cover the school's or college's record
132-2 storage costs, teachout, and tuition and fees refund and recovery
132-3 exposure based on the evidence the school or college submits
132-4 proving its projected maximum total unearned tuition during the
132-5 period of time covered by the evidence of indebtedness to the
132-6 State.
132-7 (b) The school or college must demonstrate to the
132-8 satisfaction of the board its financial soundness and ability to
132-9 fulfill its commitments for training.
132-10 Sec. 9Q. (a) A person commits an offense if the person
132-11 fails to comply with Section 9 or 9A of this Act. Except as
132-12 provided by Subsection (b) of this section, an offense under this
132-13 section is a Class A misdemeanor.
132-14 (b) A person commits an offense if the person intentionally
132-15 or knowingly uses for personal benefit funds in an amount greater
132-16 than $10,000 that are due as student refunds under Section 9A of
132-17 this Act. An offense under this subsection is a felony of the
132-18 third degree.
132-19 SECTION 4.04. Sections 17(c) and (d), Chapter 65, Acts of
132-20 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
132-21 Vernon's Texas Civil Statutes), are amended to read as follows:
132-22 (c) The application shall be made on a form prescribed by
132-23 the board, state the education and experience level of the
132-24 applicant in all courses or programs that the applicant will teach
132-25 or instruct, and an <a $5> administration fee must accompany the
132-26 application.
132-27 (d) The board shall review an application for competency,
133-1 consistency, and the overall quality of the applicant. The
133-2 applicant is entitled to a wig instructor license if he possesses
133-3 the qualifications enumerated in Subsection (b) of this section,
133-4 satisfactorily completes the examination, pays a license fee <not
133-5 to exceed $100>, and has not committed any act constituting grounds
133-6 for revocation of a license under this Act.
133-7 SECTION 4.05. Section 19, Chapter 65, Acts of the 41st
133-8 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
133-9 Texas Civil Statutes), is amended to read as follows:
133-10 Sec. 19. DISPLAY OF CERTIFICATE. (a) Every holder of a
133-11 certificate of registration or license issued by the board shall
133-12 display the original certificate or license, together with an
133-13 attached photograph of the certificate holder or licensee, in a
133-14 conspicuous place adjacent to or near the certificate holder's or
133-15 licensee's work-chair in the shop in which the certificate holder
133-16 or licensee is working or employed.
133-17 (b) The board may not use the word "approval" or a variation
133-18 of that term on the permit of a barber school or college. The
133-19 terminology must be "permit" to operate, or a variation of that
133-20 phrase.
133-21 SECTION 4.06. Section 29A, Chapter 65, Acts of the 41st
133-22 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
133-23 Texas Civil Statutes), is amended to read as follows:
133-24 Sec. 29A. (a) The board shall keep an information file
133-25 about each complaint filed with the board that the board has
133-26 authority to resolve. If a written complaint is filed with the
133-27 board that the board has authority to resolve, the board, at least
134-1 quarterly and until final disposition of the complaint, shall
134-2 notify the parties to the complaint of the status of the complaint
134-3 unless the notice would jeopardize an undercover investigation.
134-4 (b) The board shall prepare information of public interest
134-5 describing the functions of the board and the procedures by which
134-6 complaints are filed with and resolved by the board against a
134-7 barber school or college. The board shall make the information
134-8 available to the public and appropriate state agencies.
134-9 PART 5. PRIVATE BEAUTY CULTURE SCHOOLS
134-10 SECTION 5.01. Section 9(b), Chapter 1036, Acts of the 62nd
134-11 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
134-12 Civil Statutes), is amended to read as follows:
134-13 (b) A person may not conduct or operate a beauty shop, a
134-14 private<,> beauty culture school, or a vocational cosmetology
134-15 program in a public school or lease space on the premises of a
134-16 beauty shop to engage in the practice of cosmetology as an
134-17 independent contractor<, specialty shop, or any other place of
134-18 business in which the practice of cosmetology is taught or
134-19 practiced> without first obtaining a license.
134-20 SECTION 5.02. Sections 11(c) and (d), Chapter 1036, Acts of
134-21 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
134-22 Vernon's Texas Civil Statutes), are amended to read as follows:
134-23 (c) The application must be made on a form prescribed by the
134-24 commission <and must be filed at least 10 days before the date set
134-25 for the examination>.
134-26 (d) The applicant is entitled to a manicurist license if he
134-27 possesses the qualifications enumerated in Subsection (b) of this
135-1 section, <satisfactorily completes the examination,> pays a <$35>
135-2 license fee, and has not committed an act that constitutes a ground
135-3 for denial of a license.
135-4 SECTION 5.03. Sections 12(c) and (d), Chapter 1036, Acts of
135-5 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
135-6 Vernon's Texas Civil Statutes), are amended to read as follows:
135-7 (c) The application must state the education and experience
135-8 level of the applicant in all courses or programs that the
135-9 applicant will teach or instruct, be on a form prescribed by the
135-10 commission, and <must> be filed at least 10 days before the date
135-11 set for the examination.
135-12 (d) The commission shall review an application for
135-13 competency, consistency, and the overall quality of the applicant.
135-14 The applicant is entitled to an instructor license if he possesses
135-15 qualifications enumerated in Subsection (b) of this section,
135-16 satisfactorily completes the examination, pays a <$50> license fee,
135-17 and has not committed an act that constitutes a ground for denial
135-18 of a license.
135-19 SECTION 5.04. Section 13(d), Chapter 1036, Acts of the 62nd
135-20 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
135-21 Civil Statutes), is amended to read as follows:
135-22 (d) The applicant is entitled to a specialty certificate if
135-23 he possesses the qualifications enumerated in Subsection (b) of
135-24 this section, pays a <$35> certificate fee, and has not committed
135-25 an act that constitutes a ground for denial of a certificate.
135-26 SECTION 5.05. Section 17(b), Chapter 1036, Acts of the 62nd
135-27 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
136-1 Civil Statutes), is amended to read as follows:
136-2 (b) The applicant shall submit an application on a form
136-3 prescribed by the commission and pay a <$100> fee, plus the
136-4 applicable license or certification fee.
136-5 SECTION 5.06. Section 21, Chapter 1036, Acts of the 62nd
136-6 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
136-7 Civil Statutes), is amended to read as follows:
136-8 Sec. 21. PRIVATE BEAUTY CULTURE SCHOOL LICENSE; APPLICATION;
136-9 REFUND POLICY. (a) A person holding a private beauty culture
136-10 school license may maintain an establishment in which any practice
136-11 of cosmetology is taught.
136-12 (b) An applicant for a private beauty culture school license
136-13 must submit an application on a form prescribed by the commission.
136-14 Each application must be verified by the applicant and must
136-15 contain:
136-16 (1) a detailed floor plan of the school building
136-17 divided into three separate areas, one for instruction in theory,
136-18 one for practice work of senior students, and one for practice work
136-19 of juniors; <and>
136-20 (2) a statement that the building is fireproof and of
136-21 permanent type construction, contains a minimum of 3,500 square
136-22 feet of floor space, with separate restrooms for male and female
136-23 students, and contains or will contain before classes commence the
136-24 equipment established by rule of the commission as sufficient to
136-25 properly instruct a minimum of 50 students; and
136-26 (3) a statement of any final convictions of the
136-27 owners, school directors, recruiters, instructional faculty, or
137-1 other selected personnel of the private beauty culture school as
137-2 determined by the commission. The board may obtain criminal
137-3 history records of school directors or instructional faculty from
137-4 any law enforcement agency, including the United States Department
137-5 of Justice, the Department of Public Safety of the State of Texas,
137-6 the Texas Department of Criminal Justice, or the police department
137-7 of a municipality.
137-8 (c) The commission shall determine that an applicant for a
137-9 private beauty culture school license is financially sound and
137-10 capable of fulfilling the school's commitments for training before
137-11 granting the license.
137-12 (d) <Each application for a private beauty culture school
137-13 license must be accompanied by payment of a $500 license fee and a
137-14 $200 inspection fee. Each application for certification as a
137-15 public secondary or public postsecondary beauty culture school must
137-16 be accompanied by a $200 inspection fee. The inspection fee is
137-17 charged for each inspection trip required before approval of the
137-18 license or certificate.>
137-19 <(e)> The facilities of each applicant shall be inspected.
137-20 The applicant is entitled to a private beauty culture school
137-21 license if the inspection shows that this Act and the rules of the
137-22 commission have been met and the applicant has not committed an act
137-23 that constitutes a ground for denial of a license.
137-24 (e) <(f)> Each holder of a private beauty culture school
137-25 license must maintain a cancellation and settlement policy that
137-26 provides a full refund of all money paid by a student if:
137-27 (1) the student cancels the enrollment agreement or
138-1 contract not later than midnight of the third day after the date on
138-2 which the agreement or contract is signed by the prospective
138-3 student, excluding Saturdays, Sundays, and legal holidays; or
138-4 (2) the enrollment of the student was procured as a
138-5 result of a misrepresentation made in the advertising or
138-6 promotional materials of the school or a representation by an owner
138-7 or representative of the school.
138-8 (f) <(g)> Each holder of a private beauty culture school
138-9 license must maintain a refund policy for the refund of the unused
138-10 part of tuition, fees, and other charges assessed a student if the
138-11 student, at the expiration of the cancellation period established
138-12 under Subsection (e) <(f)> of this section, terminates enrollment
138-13 or is terminated by the school, as provided by this subsection
138-14 <fails to enter the course of training, withdraws from the course
138-15 of training, or is terminated from the course of training before
138-16 completion of the course>. The refund policy must provide that:
138-17 (1) a refund is based on the period of the student's
138-18 enrollment, computed on the basis of course time expressed in clock
138-19 hours;
138-20 (2) the effective date of the termination for payment
138-21 of a refund <refund purposes> is the earliest of:
138-22 (A) the last date of attendance, if the student
138-23 is terminated for failure to satisfy a school attendance, grade, or
138-24 work requirement <by the school>;
138-25 (B) the date of receipt by the license holder of
138-26 written notice of withdrawal by the student; <or>
138-27 (C) the 10th consecutive <10> school day the
139-1 student has been absent, unless any of the absences have been
139-2 excused by the school <days after the last date of attendance>; or
139-3 (D) the date the student fails to return, as
139-4 scheduled, from a leave of absence; and
139-5 (3) if tuition is collected before beginning the
139-6 course of training and if, after the expiration of the cancellation
139-7 period, the student does not begin the course of training, the
139-8 school may retain not more than $100.
139-9 (g) <(h)> If a student who begins a course of training that
139-10 is scheduled to run not more than 12 months withdraws from the
139-11 course or is terminated from the course by the school, the private
139-12 beauty culture school may retain $100 in tuition and fees paid by
139-13 that student and is not obligated to refund any additional
139-14 outstanding tuition if the student withdraws or is terminated
139-15 during the last quarter <50 percent> of the course. If the student
139-16 withdraws or is terminated before the last quarter <50 percent> of
139-17 the course begins, the school shall refund the following
139-18 percentages of any outstanding tuition:
139-19 (1) for withdrawal or termination occurring during the
139-20 first week or first one-tenth of the course, whichever is less, 90
139-21 percent;
139-22 (2) for withdrawal or termination occurring after the
139-23 first week or first one-tenth of the course, whichever is less, but
139-24 within the first three weeks of the course, 80 percent;
139-25 (3) for withdrawal or termination occurring after the
139-26 first three weeks of the course but not later than the completion
139-27 of the first 25 percent of the course, 75 percent; <and>
140-1 (4) for withdrawal or termination occurring during the
140-2 <not later than the completion of the> second quarter <25 percent>
140-3 of the course, 50 percent;
140-4 (5) for withdrawal or termination occurring during the
140-5 third quarter of the course, 10 percent; and
140-6 (6) for students withdrawing or terminating after 50
140-7 percent of the course has been completed, the school must allow
140-8 that student to reenter at any time during the 48-month period
140-9 following the date of withdrawal or termination at no additional
140-10 charge provided the full agreed on tuition has been tendered.
140-11 (h) <(i) For students withdrawing or terminating after 50
140-12 percent of the course has been completed, the school must allow
140-13 that student to reenter at any time during the 48-month period
140-14 following the date of withdrawal or termination.>
140-15 <(j)> A refund owed under this section must be paid not
140-16 later than the 60th <30th> day after the date on which the student
140-17 becomes eligible for the refund, as determined under Subsection (f)
140-18 of this section.
140-19 (i) <(k)> If a refund is not made within the period required
140-20 by this section, the school shall pay, as a penalty, interest on
140-21 the refund for the interval beginning with the first day following
140-22 the expiration of the refund period and ending with the day
140-23 immediately preceding the date the refund is made. If the refund
140-24 is made to a lending institution, the interest shall also be paid
140-25 to that institution and applied against the student's loan. The
140-26 commissioner of education annually shall establish the level of
140-27 interest at a level sufficient to provide a deterrent to the
141-1 retention of student funds. The commission may exempt a school
141-2 from the payment of the interest if the school makes a good faith
141-3 effort to refund the tuition but is unable to locate the student.
141-4 The school shall provide to the commission on request documentation
141-5 of the effort to locate the student.
141-6 (j) <(l)> A private beauty culture school shall record a
141-7 grade of "incomplete" for a student who withdraws but is not
141-8 entitled to a refund under Subsection (g) <(h)> of this section if
141-9 the student requests the grade at the time the student withdraws
141-10 and if the student withdraws for an appropriate reason unrelated to
141-11 the student's academic status. A student who receives a grade of
141-12 incomplete may re-enroll in the program during the 12-month
141-13 <48-month> period following the date the student withdraws and
141-14 complete those incomplete subjects without payment of additional
141-15 tuition.
141-16 (k) If a course of instruction is discontinued by the school
141-17 and this prevents the student from completing the course, all
141-18 tuition and fees paid are due and refundable.
141-19 (l) Refunds under this section shall be applied:
141-20 (1) first, to the repayment of student loans;
141-21 (2) second, to the repayment of other government
141-22 loans;
141-23 (3) third, to the repayment of other financial loans;
141-24 and
141-25 (4) last, to the student's personal tuitional
141-26 expenditures.
141-27 (m) Not later than the 30th day after the date on which a
142-1 refund is due to a student who has received a student loan, the
142-2 school shall notify the guaranty agency and the lender of the
142-3 required refund and any refund previously made. The guaranty
142-4 agency and the lender shall notify the student and the school if
142-5 the student's loan has been transferred to another holder.
142-6 (n) The failure of a school or a person to pay a tuition
142-7 refund as required by this section is a deceptive trade practice
142-8 under Subchapter E, Chapter 17, Business & Commerce Code.
142-9 SECTION 5.07. Chapter 1036, Acts of the 62nd Legislature,
142-10 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
142-11 Statutes), is amended by adding Sections 21D-21J to read as
142-12 follows:
142-13 Sec. 21D. ADDITIONAL CRITERIA FOR PRIVATE BEAUTY CULTURE
142-14 SCHOOL LICENSE. Before the commission may approve the application
142-15 of a person for a private beauty culture school license, the
142-16 executive director must find, on investigation at the premises of
142-17 the school, that the school meets the following criteria:
142-18 (1) the courses, curriculum, and instruction are of a
142-19 quality, content, and length as may reasonably and adequately
142-20 achieve the stated objective for which the courses, curriculum, or
142-21 instruction are offered;
142-22 (2) there is in the school adequate space, equipment,
142-23 instructional material, and instructor personnel to provide
142-24 training of good quality;
142-25 (3) educational and experience qualifications of
142-26 directors, administrators, and instructors are adequate;
142-27 (4) the school maintains a written record of the
143-1 previous education and training of the applicant student and
143-2 clearly indicates that appropriate credit has been given by the
143-3 school for previous education and training, with the new training
143-4 period shortened where warranted through use of appropriate skills
143-5 or achievement tests and the student notified;
143-6 (5) a copy of the course outline; schedule of tuition,
143-7 fees, refund policy, and other charges; regulations pertaining to
143-8 absence, grading policy, and rules of operation and conduct;
143-9 regulations pertaining to incomplete grades; the name, mailing
143-10 address, and telephone number of the commission for the purpose of
143-11 directing complaints to the agency; the current rates of job
143-12 placement and employment of students issued a certificate of
143-13 completion; and notification of the availability of the cost
143-14 comparison information prepared under Section 21I of this Act will
143-15 be furnished to the student in the catalog before enrollment;
143-16 (6) on completion of training, the student is given a
143-17 certificate by the school indicating the course and that training
143-18 was satisfactorily completed;
143-19 (7) adequate records as required by the executive
143-20 director are kept to show attendance and progress or grades, and
143-21 satisfactory standards relating to attendance, progress, and
143-22 conduct are enforced;
143-23 (8) the school complies with all local, city, county,
143-24 municipal, state, and federal regulations; the executive director
143-25 may require evidence of compliance as is necessary;
143-26 (9) the school is financially sound and capable of
143-27 fulfilling its commitments for training;
144-1 (10) the school's administrators, directors, owners,
144-2 and instructors are of good reputation and character;
144-3 (11) the school has, maintains, and publishes in its
144-4 school catalog or comparable documents and enrollment contract the
144-5 proper policy for the refund of the unused portion of tuition,
144-6 fees, and other charges in the event the student enrolled by the
144-7 school fails to take the course or withdraws or is discontinued
144-8 from the course at any time before completion;
144-9 (12) the school does not use erroneous or misleading
144-10 advertising, either by actual statement, omission, or intimation as
144-11 determined by the commission;
144-12 (13) additional criteria as may be required by the
144-13 commission;
144-14 (14) the school does not use a name like or similar to
144-15 an existing tax-supported school in the same area;
144-16 (15) the school furnishes to the commission the
144-17 current rates of students who receive a certificate of completion
144-18 and of job placement and employment of students issued a
144-19 certificate of completion;
144-20 (16) on the graduation of a student from a course of
144-21 training offered by a private beauty culture school or the
144-22 student's withdrawal or transfer from a course of training without
144-23 completion of the training, the private beauty culture school shall
144-24 send the commission a certified written copy of the student's
144-25 record, indicating all course hours completed by the student and
144-26 whether the agreed tuition has been paid;
144-27 (17) the school furnishes to the commission for
145-1 approval or disapproval student admission requirements for each
145-2 course or program offered by the school;
145-3 (18) the school furnishes to the commission for
145-4 approval or disapproval the course lengths and curriculum content
145-5 for each course offered by the school; and
145-6 (19) the school does not owe a civil penalty under
145-7 Section 22 of this Act.
145-8 Sec. 21E. CONSUMER INFORMATION. (a) A private beauty
145-9 culture school must submit to the commission for approval, on an
145-10 annual basis, a school catalog or comparable written documents
145-11 detailing the consumer information that must be given to a
145-12 prospective student before enrollment. The school catalog or
145-13 documents must include:
145-14 (1) the name and address of the school and the
145-15 school's governing body and officials;
145-16 (2) a calendar of the school year;
145-17 (3) school policies on enrollment;
145-18 (4) rules relating to absences;
145-19 (5) the school grading policy;
145-20 (6) the school's hours of operation and rules of
145-21 conduct;
145-22 (7) a schedule of the tuition and other fees assessed;
145-23 (8) the school's cancellation and refund policy;
145-24 (9) a general description of the course or courses
145-25 offered;
145-26 (10) information on entrance testing and remedial
145-27 development plans;
146-1 (11) state licensing requirements for courses intended
146-2 to result in licensing of the student;
146-3 (12) starting range and reported average salaries for
146-4 the prior year's graduates in occupations for which courses are
146-5 offered, if the information is available;
146-6 (13) the current rates of job placement and employment
146-7 of students who complete a course of training;
146-8 (14) the school policy on credit for previous
146-9 education and training;
146-10 (15) school regulations relating to incomplete grades;
146-11 (16) information on the transferability of credits
146-12 earned;
146-13 (17) the name, mailing address, and telephone number
146-14 of the commission for the purpose of directing complaints to the
146-15 commission and the mechanism and procedures for resolving
146-16 grievances submitted to the commission;
146-17 (18) a statement that the commission has information
146-18 on cost comparison with similar schools;
146-19 (19) market and job availability information, if
146-20 available;
146-21 (20) the names of the members of any advisory council
146-22 of the school and the company for which they work; and
146-23 (21) other information required by the executive
146-24 director or commission if reasonable notice has been given by the
146-25 director or commission to the school of the additional
146-26 requirements.
146-27 (b) A prospective student must receive the catalog or
147-1 comparable written documents at a time and in a manner that
147-2 provides the student with sufficient opportunity to read the
147-3 catalog before signing an enrollment contract and before the school
147-4 accepts the student in a course of study.
147-5 (c) A student must sign a receipt stating that:
147-6 (1) the catalog was received by the student before any
147-7 commitment made by the student to the school or by the school to
147-8 the student;
147-9 (2) the student was given an opportunity to discuss
147-10 the catalog with a representative of the school; and
147-11 (3) the student understands the contents and
147-12 implications of the catalog.
147-13 (d) The receipt required by Subsection (c) of this section
147-14 must be placed in the student's permanent school file and a copy of
147-15 the receipt must be delivered to the student.
147-16 Sec. 21F. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
147-17 TO PRIVATE BEAUTY CULTURE SCHOOL. (a) The commission shall set
147-18 and enforce minimum standards for completion and employment rates
147-19 of courses based on collected data.
147-20 (b) In determining whether to renew a private beauty culture
147-21 school license, the commission shall consider the completion,
147-22 placement, and employment rates of students of the courses.
147-23 (c) Before a school may begin offering a new course of study
147-24 for students, the school must show the commission the opportunity
147-25 for jobs for graduates of the course and the possibility of
147-26 placement or employment.
147-27 (d) Before the commission issues or renews a private beauty
148-1 culture school license involving a school that offers or advertises
148-2 a placement service, the commission may require the school to file
148-3 a certified copy of the school's placement records for the previous
148-4 year.
148-5 Sec. 21G. ON-SITE INSPECTIONS. (a) The commission shall
148-6 conduct on-site inspections of a private beauty culture school to
148-7 determine the normal operating conditions of the school.
148-8 (b) The inspection required by Subsection (a) of this
148-9 section shall be unannounced.
148-10 (c) The executive director or a designee of the executive
148-11 director may inspect such things as the instructional books and
148-12 records, classrooms, dormitories, tools, equipment, and classes of
148-13 a private beauty culture school or an applicant for a license for a
148-14 school at any reasonable time.
148-15 Sec. 21H. CONSOLIDATION OF FEES AND PRIVATE BEAUTY CULTURE
148-16 SCHOOL FUND. (a) At the beginning of each fiscal year the
148-17 commission shall collect a fee from the school for deposit in a
148-18 special fund established in the state treasury called the private
148-19 beauty culture school fund and to be administered by the
148-20 commission.
148-21 (b) The amount of the fee is determined by applying a
148-22 percentage established by the school fund advisory board, to each
148-23 school's annual gross tuition, with consideration given to the
148-24 school's size, expense of regulation, potential for teachouts,
148-25 tuition refund and recovery exposure, and loan default rates (with
148-26 schools with high default rates paying higher fees), and any other
148-27 relevant factors. The fund shall be used for:
149-1 (1) the administration of this Act;
149-2 (2) the cost of teachouts as provided by this Act;
149-3 (3) the cost of tuition and fees recovery and the cost
149-4 of student refunds that a school has not made; and
149-5 (4) the cost of storing student records that have
149-6 become property of the state under this Act.
149-7 (c) The commission may grant an exemption from payment into
149-8 the fund to a small school as determined by the commission, or to a
149-9 school that does not use guaranteed student loans for tuition
149-10 revenue. A school exempt as provided for by this subsection must
149-11 pay the necessary fees for regulation, as determined by the
149-12 commission, and provide a bond, certificate of deposit, or
149-13 comparable security, as determined and approved by the commission,
149-14 that is sufficient to cover the cost of the school's record storage
149-15 costs, teachout, and tuition and fees refund and recovery exposure
149-16 based on the evidence the school submits proving its projected
149-17 maximum total unearned tuition during the period of the license to
149-18 operate.
149-19 (d) The security must be provided by the school for the
149-20 period during which the license to operate is issued, and the
149-21 obligation of the bond or other security must be that neither this
149-22 Act nor any rule adopted under this Act is violated by the school
149-23 or any of its officers, agents, or employees.
149-24 (e) The bond, certificate of deposit, or comparable security
149-25 must be issued by a company authorized to do business in the state,
149-26 conditioned that the parties to the transaction must pay all
149-27 damages or expenses that the state or any governmental subdivision,
150-1 or any student or potential student sustains resulting from a
150-2 violation. The bond, certificate of deposit, or comparable
150-3 security must be to the state to be used only for payment for the
150-4 school's teachout and tuition and fees refund due to a student or
150-5 potential student. The security must be filed with the commission
150-6 and shall be in a form approved by the commission.
150-7 (f) Schools domiciled, or having their principal place of
150-8 business, outside the state, that engage representatives to
150-9 canvass, solicit, or contract with any person in the state are
150-10 subject to the fee and security requirements of Subsection (c) of
150-11 this section.
150-12 (g) The commission shall refer all expenses incurred by the
150-13 school fund in administering Subsections (b)(2) and (3) of this
150-14 section to the attorney general's office for collection. The
150-15 amounts collected shall be deposited to the fund. Attorney's fees
150-16 and court costs shall be appropriated to the attorney general's
150-17 office.
150-18 (h) Interest the fund earns shall be reinvested in the fund.
150-19 Sufficient funds from the fund and other fees collected by the
150-20 commission shall be appropriated to the commission for the purpose
150-21 outlined in this section. The commission shall administer claims
150-22 made against the fund.
150-23 (i) If a school closes, the commission shall attempt to
150-24 arrange for students of the closed school to attend another private
150-25 beauty culture school. The commission shall adopt rules specifying
150-26 the circumstances under which a school is considered closed.
150-27 (j) The expense incurred by a private beauty culture school
151-1 in providing training that is directly related to educating a
151-2 student who was enrolled in a closed school and placed in the
151-3 school under this section, including the applicable tuition for the
151-4 period of time for which the student has paid tuition, shall be
151-5 paid in accordance with rules of the commission.
151-6 (k) The commission shall make reasonable attempts to ensure
151-7 that schools under the commission's jurisdiction, including closed
151-8 schools, fulfill the refund obligation as provided by Section 21 of
151-9 this Act. If a school refuses to fulfill the school's obligation
151-10 or the school's bond is insufficient to pay the cost of the
151-11 teachout and refund expenses, the teachout or the refund may be
151-12 paid from the private beauty culture school fund except that no
151-13 school owned, either in whole or in part, by a person or corporate
151-14 entity who was an owner, in whole or in part, of a previously
151-15 closed school shall be permitted to receive compensation for a
151-16 teachout under this section.
151-17 (l) If a student cannot be placed in another school, the
151-18 student's tuition and fees shall be refunded under Section 21(k) of
151-19 this Act.
151-20 (m) If a student does not accept a place that is available
151-21 and reasonable in another school, the student's tuition and fees
151-22 shall be refunded under the refund policy maintained by the closing
151-23 school under Sections 21(f) and (g) of this Act.
151-24 (n) Attorney's fees, court costs, or damages may not be paid
151-25 from the private beauty culture school fund.
151-26 (o) The commission by rule shall establish and access
151-27 reasonable and necessary fees to all persons and entities licensed
152-1 under this Act to be used for the regulation of those persons and
152-2 entities licensed under this Act and to supplement the
152-3 administration and purposes outlined for the fund.
152-4 Sec. 21I. COST COMPARISONS. (a) The commission shall
152-5 prepare a comparison of the cost to a student of courses of
152-6 instruction or training programs at all private beauty culture
152-7 schools maintained by persons who hold private beauty culture
152-8 school licenses issued by the commission.
152-9 (b) The cost comparison must include for each school a
152-10 description of:
152-11 (1) average class size;
152-12 (2) facilities and equipment;
152-13 (3) employment and placement rates;
152-14 (4) length of program; and
152-15 (5) faculty qualifications.
152-16 Sec. 21J. FINANCIAL STABILITY. (a) A school may not
152-17 reflect unearned tuition as a current asset unless the amount shown
152-18 in current assets that reflects unearned tuition is offset by an
152-19 equal amount shown as a current liability. The school must meet
152-20 one of the following criteria in order to be determined as
152-21 financially sound and capable of fulfilling its commitments for
152-22 training:
152-23 (1) current assets must bear a relationship to current
152-24 liabilities in a ratio of at least one-to-one;
152-25 (2) the equity of the owner of the school must be in
152-26 excess of $10,000,000; or
152-27 (3) the school must have posted, or set aside in a
153-1 dedicated escrow account, a bond, certificate of deposit,
153-2 irrevocable letter of credit, or comparable security, acceptable to
153-3 the commission, each made payable to the State of Texas, in an
153-4 amount sufficient to cover the school's record storage costs,
153-5 teachout, and tuition and fees refund and recovery exposure based
153-6 on the evidence the school submits proving its projected maximum
153-7 total unearned tuition during the period of time covered by the
153-8 evidence of indebtedness to the state.
153-9 (b) The school must demonstrate to the satisfaction of the
153-10 commission its financial soundness and ability to fulfill its
153-11 commitments for training.
153-12 SECTION 5.08. Section 22, Chapter 1036, Acts of the 62nd
153-13 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
153-14 Civil Statutes), is amended to read as follows:
153-15 Sec. 22. Additional Requirements Applying to Private Beauty
153-16 Culture Schools; CIVIL PENALTY. (a) The holder of a private
153-17 beauty culture school license shall:
153-18 (1) maintain a sanitary establishment;
153-19 (2) maintain on its staff and on duty during business
153-20 hours not less than two full-time instructors licensed under this
153-21 Act, except that one instructor will be sufficient whenever the
153-22 student enrollment drops below 15;
153-23 (3) maintain a daily record of attendance of students;
153-24 (4) establish regular class and instruction hours and
153-25 grades, and hold examinations before issuing diplomas;
153-26 (5) require a school term of not less than nine months
153-27 and not less than 1,500 hours instruction for a complete course in
154-1 cosmetology;
154-2 (6) require a school term of not less than 250 hours
154-3 instruction for a complete course in manicuring;
154-4 (7) require no student to work or be instructed or
154-5 receive credit for more than eight hours of instruction in any one
154-6 day or for more than six days in any one calendar week;
154-7 (8) maintain a copy of its curriculum in a conspicuous
154-8 place and verify that this curriculum is being followed as to
154-9 subject matter being taught; and
154-10 (9) submit to the executive director the name of each
154-11 student within 10 days after enrollment in the school and notify
154-12 the executive director of the withdrawal or graduation of a student
154-13 within 10 days of the withdrawal or graduation.
154-14 (b) Each holder of a private beauty culture school license
154-15 shall furnish to the commission:
154-16 (1) the current course completion rates of students
154-17 who attend a course of instruction offered by the school; and
154-18 (2) job placement rates and employment rates of
154-19 students who complete a course of instruction.
154-20 (c) On the graduation of a student from a course of training
154-21 offered by a private beauty culture school or the student's
154-22 withdrawal or transfer from a course of training without completion
154-23 of the training, the private beauty culture school shall send the
154-24 commission a certified written copy of the student's record,
154-25 indicating all course hours completed by the student and whether
154-26 the agreed tuition has been paid.
154-27 (d) <A holder of a private beauty culture school license
155-1 shall furnish each prospective student with:>
155-2 <(1) a copy of the course outline;>
155-3 <(2) a schedule of the tuition and other fees
155-4 assessed;>
155-5 <(3) the refund policy required under Section 21 of
155-6 this Act;>
155-7 <(4) school regulations relating to absences;>
155-8 <(5) the school grading policy;>
155-9 <(6) the school rules of operation and conduct;>
155-10 <(7) school regulations relating to incomplete
155-11 grades;>
155-12 <(8) the name, mailing address, and telephone number
155-13 of the commission for the purpose of directing complaints to the
155-14 commission; and>
155-15 <(9) the current rates of job placement and employment
155-16 of students who complete a course of training.>
155-17 <(e) A holder of a private beauty culture school license
155-18 shall publish in its catalogue and enrollment contract a
155-19 description of the refund policy required under Section 21 of this
155-20 Act.>
155-21 <(f) If the commission has reasonable cause to believe that
155-22 a private beauty culture school has violated this Act or a rule
155-23 adopted under this Act, the commission may order a peer review of
155-24 the school or suspend the admission of students to the school. A
155-25 peer review ordered under this subsection shall be conducted by a
155-26 peer review team composed of knowledgeable persons selected by the
155-27 commission. The commission shall attempt to provide a balance on
156-1 each team between members assigned to the team who are from this
156-2 state and those who are from other states. The team shall provide
156-3 the commission with an objective assessment of the content of the
156-4 school's curriculum and its application. The school under review
156-5 shall pay the costs of the peer review.>
156-6 <(g)> A private beauty culture school that violates this Act
156-7 or a rule adopted under this Act is liable for a civil penalty in
156-8 addition to any injunctive relief or other remedy provided by law.
156-9 The civil penalty may not exceed $1,000 a day for each violation.
156-10 The attorney general, at the request of the commission, may bring a
156-11 civil action to collect a civil penalty under this subsection.
156-12 Civil penalties recovered in a suit brought under this subsection
156-13 shall be deposited in the state treasury to the credit of the
156-14 General Revenue Fund.
156-15 SECTION 5.09. Chapter 1036, Acts of the 62nd Legislature,
156-16 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
156-17 Statutes), is amended by adding Sections 22A-22F to read as
156-18 follows:
156-19 Sec. 22A. LICENSING REQUIREMENTS DISCLOSED BY PRIVATE BEAUTY
156-20 CULTURE SCHOOL. (a) A private beauty culture school must disclose
156-21 to all prospective students state licensing requirements to
156-22 practice the occupation for which the student is training.
156-23 (b) A school must disclose to all prospective students the
156-24 performance of graduates from the school on the licensing
156-25 examination of the commission if that information is available.
156-26 Sec. 22B. ENTRANCE REQUIREMENTS FOR PRIVATE BEAUTY CULTURE
156-27 SCHOOL; MINIMUM SKILLS TEST. (a) The commission shall approve
157-1 entrance requirements, including minimum skills testing, for
157-2 students who may be accepted for a course of study in a private
157-3 beauty culture school. The requirements must be specific and
157-4 provide that students who are allowed to enter a course will have a
157-5 reasonable chance of completing the program.
157-6 (b) The school shall administer a standardized test to
157-7 students with a high school diploma or high school equivalency
157-8 certificate entering the school, if testing for minimum skill
157-9 competency is determined by the commission as appropriate and
157-10 necessary to determine if remediation is needed. The test must be
157-11 administered before enrollment and must be nationally recognized as
157-12 appropriate and effective for minimum skills testing and high
157-13 school equivalency. If the test reveals the necessity for
157-14 remediation, the school must implement a plan to encourage the
157-15 student to improve in basic general education skills.
157-16 (c) A student must achieve a successful score on the test
157-17 required by this section before the student is obligated for
157-18 tuition and fees for the vocational portion of the school's
157-19 program.
157-20 (d) The school may, in accordance with federal statutory
157-21 provisions affecting guaranteed student loan programs, on a
157-22 case-by-case basis, refuse to provide the certification statements
157-23 required for guaranteed student loan eligibility, or reduce the
157-24 determination of need for a guaranteed student loan if the school
157-25 determines that the student's expenses to be covered by the loan,
157-26 and the estimated cost of attendance, can be met more appropriately
157-27 by the school, directly by the student, or by other sources.
158-1 Sec. 22C. STUDENTS IN PRIVATE BEAUTY CULTURE SCHOOLS IN NEED
158-2 OF REMEDIAL HELP. (a) An applicant without a high school diploma
158-3 or high school equivalency certificate must pass an entrance test
158-4 approved by the commission and be considered to have the ability to
158-5 benefit from the school before the school may enroll the student.
158-6 (b) A school that admits a student who does not have a high
158-7 school diploma or high school equivalency certificate must develop
158-8 and implement a plan for counseling the student on curriculum,
158-9 student aid, employment opportunities, and the remediation
158-10 necessary for the student to obtain a high school equivalency
158-11 certificate and improve in basic general education skills.
158-12 (c) The school must assist the student in obtaining the
158-13 remediation necessary for the student to pass a standardized
158-14 minimum skills equivalency test, approved by the commission, and
158-15 the student must pass the test before entering the final quarter of
158-16 the course.
158-17 Sec. 22D. ENROLLMENT POLICIES OF PRIVATE BEAUTY CULTURE
158-18 SCHOOL. (a) The enrollment contract of a private beauty culture
158-19 school must contain:
158-20 (1) a disclosure that the contract is a legally
158-21 binding instrument on written acceptance of the student by the
158-22 school, unless canceled as provided by law;
158-23 (2) the school's cancellation and refund policy;
158-24 (3) the method of cancellation of the contract, the
158-25 effective date of any cancellation, and the name and address to
158-26 which the notice of cancellation should be sent or delivered;
158-27 (4) the total cost of the course including tuition and
159-1 all other charges;
159-2 (5) a notification that the fair market value of
159-3 equipment or supplies furnished to the student that the student
159-4 fails to return in a condition suitable for resale not later than
159-5 the 10th business day after the date of cancellation may be
159-6 retained by the school and deducted from any refund of the student;
159-7 (6) a statement that if a student's enrollment is
159-8 canceled for any reason, the school will notify an agency known to
159-9 the school to be providing financial aid to the student of the
159-10 cancellation not later than the 30th day after the date of
159-11 cancellation;
159-12 (7) the name and description of the courses, including
159-13 the number of hours of classroom instruction or home study lessons;
159-14 and
159-15 (8) the Federal Trade Commission statement for a
159-16 holder in due course.
159-17 (b) An enrollment contract may not contain a wage assignment
159-18 provision or a confession of judgment clause.
159-19 (c) Immediately after a prospective student has signed an
159-20 enrollment contract, the school shall give the prospective student
159-21 a copy of the contract, and a copy shall be placed in the student's
159-22 permanent school file.
159-23 (d) A promissory note signed by a student must include the
159-24 Federal Trade Commission statement required for a holder in due
159-25 course.
159-26 Sec. 22E. LOAN COUNSELING BY PRIVATE BEAUTY CULTURE SCHOOL.
159-27 (a) A school shall conduct loan counseling entrance interviews
160-1 with each prospective student seeking a loan during the enrollment
160-2 process. A student borrower shall be counseled before the initial
160-3 disbursement of loan proceeds, shortly before the student completes
160-4 one-half of the course, and before the student is issued a
160-5 certificate of completion.
160-6 (b) The school's financial aid officer or counselor shall
160-7 conduct the interviews required by Subsection (a) of this section.
160-8 The interview must include a discussion of:
160-9 (1) the rights and responsibilities of the student as
160-10 a borrower;
160-11 (2) what a loan is and the importance of repayment;
160-12 (3) the total cost of the program in which the student
160-13 will be enrolled;
160-14 (4) the availability of other forms of financial aid,
160-15 grants, and part-time work;
160-16 (5) the starting range and average reported salaries
160-17 of those in the occupation for which the student will be trained,
160-18 if available; and
160-19 (6) job placement services provided by the school and
160-20 the employment rate of persons who attended the school and were
160-21 enrolled in the program in which the student is enrolled.
160-22 (c) A school approved to accept state or federal educational
160-23 loans or grants shall adopt, in addition to the provisions in this
160-24 section, measures to reduce defaults and improve borrower's
160-25 understanding and respect for the loan repayment obligation as
160-26 provided in 34 C.F.R., Parts 668 and 682.
160-27 (d) The school must give a copy of the Texas Guaranteed
161-1 Student Loan Corporation's "Your Future" guide, or a comparable
161-2 document approved by the commission, to a prospective student at a
161-3 time and in a manner that provides the student with sufficient
161-4 opportunity to read the guide or other document and discuss the
161-5 contents with the school's financial aid officer, if necessary for
161-6 understanding and clarity, before signing an enrollment contract
161-7 and before the school accepts the student in a course of study.
161-8 (e) The prospective student must sign a document stating
161-9 that the student:
161-10 (1) attended a loan counseling entrance interview; and
161-11 (2) received a copy of the "Your Future" guide, or
161-12 comparable document, in the time provided by Subsection (d) of this
161-13 section.
161-14 (f) A copy of the signed document required by Subsection (e)
161-15 of this section must be sent to the student, guarantor, and lender
161-16 and must be placed in the student's permanent school file.
161-17 Sec. 22F. RECORDS OF PRIVATE BEAUTY CULTURE SCHOOL. (a) A
161-18 private beauty culture school shall maintain permanent records for
161-19 all students enrolled, as required by the commission.
161-20 (b) A school shall adopt a plan to preserve permanent
161-21 records and submit the plan to the commission for approval. The
161-22 plan must:
161-23 (1) provide that at least one copy of the records will
161-24 be held in a secure depository; and
161-25 (2) designate an appropriate official to provide a
161-26 student with copies of records or transcripts on request.
161-27 (c) The school shall make the first copy of records or
162-1 transcripts at no charge to the student. The school may make a
162-2 reasonable charge to provide additional copies of records,
162-3 transcripts, or other student information.
162-4 (d) If the school closes, the records become the property of
162-5 the state.
162-6 SECTION 5.10. Section 27, Chapter 1036, Acts of the 62nd
162-7 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
162-8 Civil Statutes), is amended to read as follows:
162-9 Sec. 27. Display of License. (a) Every holder of a license
162-10 or certificate issued under this Act shall display the license or
162-11 certificate in a conspicuous place in his place of business or
162-12 employment.
162-13 (b) The commission may not use the word "approval" or a
162-14 variation of that term on the license of a private beauty culture
162-15 school. The terminology must be "licensed" to operate, or a
162-16 variation of that phrase.
162-17 SECTION 5.11. Section 30(a), Chapter 1036, Acts of the 62nd
162-18 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
162-19 Civil Statutes), is amended to read as follows:
162-20 (a) The commission shall use a written examination, selected
162-21 by the commission, to examine license applicants and shall <may>
162-22 require a practical examination for licenses and certificates
162-23 issued under this Act, as the commission considers necessary. The
162-24 written examination must be validated by independent testing
162-25 professionals or be purchased from a national testing service. The
162-26 commission shall prescribe the method and content of any practical
162-27 examination.
163-1 SECTION 5.12. Section 31(a), Chapter 1036, Acts of the 62nd
163-2 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
163-3 Civil Statutes), is amended to read as follows:
163-4 (a) Every applicant for an original or renewal operator
163-5 or<,> instructor license or<,> reciprocal license<, or specialty
163-6 certificate> must submit a certificate of health signed by a
163-7 licensed physician, showing that the applicant is free from any
163-8 contagious disease as determined by an examination that included a
163-9 tuberculosis test.
163-10 SECTION 5.13. Section 36, Chapter 1036, Acts of the 62nd
163-11 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
163-12 Civil Statutes), is amended to read as follows:
163-13 Sec. 36. Grounds for Denial, Suspension, or Revocation of a
163-14 Permit. (a) A license or certificate may be denied, or after a
163-15 hearing, suspended or revoked if the applicant or licensee has:
163-16 (1) secured a license or certificate by fraud or
163-17 deceit;
163-18 (2) violated or conspired to violate this Act or a
163-19 rule issued under this Act;
163-20 (3) knowingly made false or misleading statements in
163-21 any advertising of the licensee's services;
163-22 (4) advertised, practiced, or attempted to practice
163-23 under the name or trade name of another licensee under this Act; or
163-24 (5) engaged in gross malpractice in practicing
163-25 cosmetology.
163-26 (b) In addition to taking a disciplinary action under
163-27 Subsection (a) of this section, the commission may deny, suspend,
164-1 or revoke a private beauty culture school license or place the
164-2 holder of the license on probation if the license holder, the
164-3 school, or a representative of the school gives a prospective
164-4 student information relating to the school that is false,
164-5 fraudulent, deceptive, substantially inaccurate, or misleading.
164-6 SECTION 5.14. Section 41, Chapter 1036, Acts of the 62nd
164-7 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
164-8 Civil Statutes), is amended by amending Subsection (a) and adding
164-9 Subsections (c) and (d) to read as follows:
164-10 (a) The commission shall keep an information file about each
164-11 complaint filed with the commission relating to a cosmetologist,
164-12 <or> cosmetology establishment, or private beauty culture school.
164-13 (c) The commission shall prepare information of public
164-14 interest describing the functions of the commission and the
164-15 procedures by which complaints are filed with and resolved by the
164-16 commission against a private beauty culture school. The commission
164-17 shall make the information available to the public and appropriate
164-18 state agencies.
164-19 (d) A private beauty culture school shall post on the
164-20 premises of the school at a prominent and conspicuous location the
164-21 name, mailing address, and telephone number of the commission for
164-22 the purpose of directing complaints to the commission.
164-23 SECTION 5.15. Chapter 1036, Acts of the 62nd Legislature,
164-24 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
164-25 Statutes), is amended by adding Sections 42 and 43 to read as
164-26 follows:
164-27 Sec. 42. ADVERTISING. (a) The commission may not adopt
165-1 rules that restrict advertising by a private beauty culture school
165-2 except to prohibit false, misleading, or deceptive advertising
165-3 practices. The rules may not restrict:
165-4 (1) the use of an advertising medium;
165-5 (2) the size or duration of an advertisement; or
165-6 (3) advertisement under a trade name.
165-7 (b) A school, the representative of a school, or a recruiter
165-8 for the school may not advertise or represent, in writing or
165-9 orally, that a school is approved or accredited by the state.
165-10 Those entities or persons may advertise that the school has been
165-11 licensed by the state.
165-12 (c) A school, representative of a school, or recruiter of a
165-13 school may not make or cause to be made a statement or
165-14 representation, written, oral, or visual, offering or publicizing a
165-15 course, program, or school, if the school, representative, or
165-16 solicitor knew or reasonably should have known that the statement
165-17 or representation was false, fraudulent, deceptive, substantially
165-18 inaccurate, or misleading.
165-19 Sec. 43. CRIMINAL PENALTY. (a) A person commits an offense
165-20 if the person fails to comply with Section 21 of this Act. Except
165-21 as provided by Subsection (b) of this section, an offense under
165-22 this section is a Class A misdemeanor.
165-23 (b) A person commits an offense if the person intentionally
165-24 or knowingly uses for personal benefit funds in an amount greater
165-25 than $10,000 that are due as student refunds under Section 21 of
165-26 this Act. An offense under this subsection is a felony of the
165-27 third degree.
166-1 SECTION 5.16. Section 21A, Chapter 1036, Acts of the 62nd
166-2 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
166-3 Civil Statutes), as added by S.B. No. 378, Acts of the 72nd
166-4 Legislature, Regular Session, 1991, is repealed.
166-5 PART 6. MISCELLANEOUS PROVISIONS
166-6 SECTION 6.01. Section 32.45(a), Penal Code, is amended to
166-7 read as follows:
166-8 (a) For purposes of this section:
166-9 (1) "Fiduciary" includes:
166-10 (A) a trustee, guardian, administrator,
166-11 executor, conservator, and receiver;
166-12 (B) a proprietary school, or its owner, that
166-13 receives payment for tuition, fees, or other charges, including
166-14 guaranteed student loans;
166-15 (C) any other person acting in a fiduciary
166-16 capacity, but not a commercial bailee; and
166-17 (D) <(C)> an officer, manager, employee, or
166-18 agent carrying on fiduciary functions on behalf of a fiduciary.
166-19 (2) "Misapply" means deal with property contrary to:
166-20 (A) an agreement under which the fiduciary holds
166-21 the property; or
166-22 (B) a law prescribing the custody or disposition
166-23 of the property.
166-24 (3) "Proprietary school" means any business enterprise
166-25 operated for a profit, or on a nonprofit basis, which maintains a
166-26 place of business within the State of Texas, or solicits business
166-27 within the State of Texas, and:
167-1 (A) which offers or maintains a course or
167-2 courses of instruction or study; or
167-3 (B) at which place of business such a course or
167-4 courses of instruction or study is available through classroom
167-5 instruction or by correspondence, or both, to a person or persons
167-6 for the purpose of training or preparing the person for a field of
167-7 endeavor in a business, trade, technical, or industrial occupation,
167-8 or for avocational or personal improvement.
167-9 SECTION 6.02. (a) The changes in law made by this Act apply
167-10 only to an offense committed on or after the effective date of this
167-11 Act. For purposes of this section, an offense is committed before
167-12 the effective date of this Act if any element of the offense occurs
167-13 before the effective date.
167-14 (b) An offense committed before the effective date of this
167-15 Act is covered by the law in effect when the offense was committed,
167-16 and the former law is continued in effect for this purpose.
167-17 SECTION 6.03. This Act takes effect January 1, 1994.
167-18 SECTION 6.04. The importance of this legislation and the
167-19 crowded condition of the calendars in both houses create an
167-20 emergency and an imperative public necessity that the
167-21 constitutional rule requiring bills to be read on three several
167-22 days in each house be suspended, and this rule is hereby suspended.