By Delco                                              H.B. No. 1705
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to proprietary schools; providing civil penalties.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter C, Chapter 32, Education Code, is
    1-5  amended by adding Section 32.211 to read as follows:
    1-6        Sec. 32.211.  TRANSFER OF ADMINISTRATION TO COORDINATING
    1-7  BOARD.  (a)  The Central Education Agency and the commissioner of
    1-8  higher education shall enter into an interagency contract for the
    1-9  transfer of the regulation of proprietary schools from the Central
   1-10  Education Agency to the Texas Higher Education Coordinating Board.
   1-11  The transfer shall take effect on a date specified in the contract,
   1-12  but not later than February 1, 1994.  On the effective date of the
   1-13  transfer:
   1-14              (1)  all powers, duties, rights, and obligations of the
   1-15  Central Education Agency relating to the regulation of proprietary
   1-16  schools are transferred to the Texas Higher Education Coordinating
   1-17  Board;
   1-18              (2)  all assets, liabilities, equipment, data,
   1-19  documents, facilities, and other items of the Central Education
   1-20  Agency relating to the regulation of proprietary schools are
   1-21  transferred to the Texas Higher Education Coordinating Board; and
   1-22              (3)  any appropriation to the Central Education Agency
   1-23  relating to the regulation of proprietary schools is transferred to
   1-24  the Texas Higher Education Coordinating Board.
    2-1        (b)  The commissioner of higher education shall publish the
    2-2  contract in the Texas Register.
    2-3        (c)  The officers and employees of the Central Education
    2-4  Agency shall cooperate fully with the reorganization.
    2-5        (d)  Until the effective date of a transfer under Subsection
    2-6  (a) of this section, a reference in this chapter to the
    2-7  commissioner of higher education is considered to be a reference to
    2-8  the commissioner of education, and a reference to the Texas Higher
    2-9  Education Coordinating Board is considered to be a reference to the
   2-10  Central Education Agency.
   2-11        (e)  This section does not affect:
   2-12              (1)  the validity of any action taken by the Central
   2-13  Education Agency under this chapter before the effective date of
   2-14  the transfer described in Subsection (a) of this section; or
   2-15              (2)  a civil or administrative proceeding completed
   2-16  before the effective date of the transfer.
   2-17        (f)  This section does not affect the validity of a civil or
   2-18  administrative proceeding under this chapter, including
   2-19  certification or rulemaking, in progress on the effective date of
   2-20  the transfer described in Subsection (a) of this section.  A civil
   2-21  or administrative proceeding under this chapter that is in progress
   2-22  on the effective date of the transfer described in Subsection (a)
   2-23  of this section continues as if it had been initiated by the Texas
   2-24  Higher Education Coordinating Board under the law in effect on that
   2-25  date.
   2-26        (g)  All forms, rules, and procedures adopted by the Central
   2-27  Education Agency for the administration and enforcement of this
    3-1  chapter and in effect on the effective date of the transfer
    3-2  described in Subsection (a) of this section remain in effect on or
    3-3  after that date as if adopted by the Texas Higher Education
    3-4  Coordinating Board until amended, repealed, withdrawn, or otherwise
    3-5  superseded by the Texas Higher Education Coordinating Board.  A
    3-6  certificate of approval issued under this chapter and in effect on
    3-7  the effective date of the transfer described in Subsection (a) of
    3-8  this section remains in effect according to its terms as if issued
    3-9  by the Texas Higher Education Coordinating Board until the
   3-10  certificate expires or is revoked or surrendered.
   3-11        SECTION 2.  Section 32.11, Education Code, is amended by
   3-12  amending Subdivision (5) and adding Subdivisions (10)-(12) to read
   3-13  as follows:
   3-14              (5)  "Administrator" means the commissioner of higher
   3-15  education <State Commissioner of Education> or a person,
   3-16  knowledgeable in the administration of regulating proprietary
   3-17  schools, designated by the Commissioner to administer the
   3-18  provisions of this chapter.
   3-19              (10)  "Small proprietary school" means a proprietary
   3-20  school that does not receive any payment from federal funds under
   3-21  20 U.S.C. Section 1070 et seq. and its subsequent amendments or a
   3-22  prepaid federal or state source as compensation in whole or in part
   3-23  for any student tuitions and fees or other charges and either:
   3-24                    (A)  has an annual gross income from student
   3-25  tuition and fees that is less than or equal to $100,000 for
   3-26  programs regulated by the agency;
   3-27                    (B)  exclusively offers programs to assist
    4-1  students to prepare for an undergraduate or graduate course of
    4-2  study at a college or university; or
    4-3                    (C)  exclusively offers programs to assist
    4-4  students, who have obtained, or who are in the process of
    4-5  obtaining, degrees after completing an undergraduate or graduate
    4-6  course of study at a college or university, to prepare for an
    4-7  examination.
    4-8              (11)  "Central Education Agency" or "State Board of
    4-9  Education" means the Texas Higher Education Coordinating Board.
   4-10              (12)  "Commissioner of Education" means the
   4-11  commissioner of higher education.
   4-12        SECTION 3.  Subchapter C, Chapter 32, Education Code, is
   4-13  amended by adding Section 32.241 to read as follows:
   4-14        Sec. 32.241.  COMPREHENSIVE REVIEW.  The administrator shall
   4-15  conduct a comprehensive review of the existing rules and policies
   4-16  governing proprietary schools and reduce regulation of small
   4-17  proprietary schools by January 1, 1995.  This section expires
   4-18  February 1, 1995.
   4-19        SECTION 4.  Subchapter D, Chapter 32, Education Code, is
   4-20  amended by adding Sections 32.321 and 32.322 to read as follows:
   4-21        Sec. 32.321.  STATUTORY WAIVER AUTHORITY.  (a)  The State
   4-22  Board of Education after consultation with the Proprietary School
   4-23  Advisory Commission may establish rules that waive, alter, suspend,
   4-24  or replace any of the following provisions governing small
   4-25  proprietary schools:
   4-26              (1)  the fee schedule authorized under Section 32.71 of
   4-27  this code, provided that fees under a fee schedule established by
    5-1  rule may not be less than the reasonable administrative cost for
    5-2  regulation or more than the amount that a small proprietary school
    5-3  would otherwise pay if it were not classified as a small
    5-4  proprietary school;
    5-5              (2)  participation in the proprietary school tuition
    5-6  protection fund required by Section 32.91 of this code;
    5-7              (3)  the refund policy provisions of Section 32.39 of
    5-8  this code;
    5-9              (4)  the bonding requirements of Section 32.38 of this
   5-10  code;
   5-11              (5)  the examination of a school for compliance under
   5-12  Section 32.34(f) of this code;
   5-13              (6)  the reporting requirements of Section 32.33(o) of
   5-14  this code; and
   5-15              (7)  the term for which a certificate of approval is
   5-16  issued under Section 32.34(b) of this code, provided that a rule
   5-17  adopted under this section may not provide for a term that exceeds
   5-18  three years or is less than one year.
   5-19        (b)  A rule proposed under this section may be adopted only
   5-20  if it will reduce the regulatory burden for small proprietary
   5-21  schools and will adequately safeguard the interests of the students
   5-22  of small proprietary schools to receive either the education for
   5-23  which they have contracted or an appropriate refund.
   5-24        Sec. 32.322.  SMALL SCHOOL EXEMPTION.  The administrator may
   5-25  exempt small proprietary schools from any requirement of this
   5-26  chapter to reduce the cost to small schools of receiving a
   5-27  certificate of approval.
    6-1        SECTION 5.  Section 32.39, Education Code, is amended by
    6-2  amending Subsections (a), (b), and (e) and adding Subsection (g) to
    6-3  read as follows:
    6-4        (a)  Except as provided by Subsection (g) of this section, as
    6-5  <As> a condition for granting certification each school must
    6-6  maintain a cancellation and settlement policy which must provide a
    6-7  full refund of all monies paid by a student if:
    6-8              (1)  the student cancels the enrollment agreement or
    6-9  contract within 72 hours (until midnight of the third day excluding
   6-10  Saturdays, Sundays, and legal holidays) after the enrollment
   6-11  contract is signed by the prospective student;
   6-12              (2)  the enrollment of the student was procured as the
   6-13  result of any misrepresentation in advertising, promotional
   6-14  materials of the school, or representations by the owner or
   6-15  representatives of the school.
   6-16        (b)  Except as provided by Subsection (g) of this section, as
   6-17  <As> a condition for granting certification, each school must
   6-18  maintain a policy for the refund of the unused portion of tuition,
   6-19  fees, and other charges in the event the student, after expiration
   6-20  of the 72-hour cancellation privilege, fails to enter the course,
   6-21  or withdraws, or is discontinued therefrom at any time prior to
   6-22  completion, and such policy must provide:
   6-23              (1)  refunds for resident courses will be based on the
   6-24  period of enrollment computed on the basis of course time expressed
   6-25  in clock hours;
   6-26              (2)  the effective date of the termination for refund
   6-27  purposes in residence schools will be the earliest of the
    7-1  following:
    7-2                    (A)  the last date of attendance, if the student
    7-3  is terminated by the school;
    7-4                    (B)  the date of receipt of written notice from
    7-5  the student;
    7-6                    (C)  ten school days following the last date of
    7-7  attendance;
    7-8              (3)  if tuition and fees are <is> collected in advance
    7-9  of entrance, and if, after expiration of the 72-hour cancellation
   7-10  privilege, the student does not enter the residence school, not
   7-11  more than $100 shall be retained by the school;
   7-12              (4)  for the student who enters a residence course of
   7-13  not more than 12 months in length, terminates or withdraws, the
   7-14  school may retain $100 of tuition and fees and the minimum refund
   7-15  of the remaining tuition and fees will be:
   7-16                    (A)  during the first week or one-tenth of the
   7-17  course, whichever is less, 90 percent of the remaining tuition and
   7-18  fees;
   7-19                    (B)  after the first week or one-tenth of the
   7-20  course, whichever is less, but within the first three weeks of the
   7-21  course, 80 percent of the remaining tuition and fees;
   7-22                    (C)  after the first three weeks of the course,
   7-23  but within the first quarter of the course, 75 percent of the
   7-24  remaining tuition and fees;
   7-25                    (D)  during the second quarter of the course, 50
   7-26  percent of the remaining tuition and fees;
   7-27                    (E)  during the third quarter of the course, 10
    8-1  percent of the remaining tuition and fees;
    8-2                    (F)  during the last quarter of the course, the
    8-3  student may be considered obligated for the full tuition and fees;
    8-4              (5)  for residence courses more than 12 months in
    8-5  length, the refund shall be applied to each 12-month period paid,
    8-6  or part thereof separately, and the student is entitled to a refund
    8-7  as provided by Subdivision (4) of this subsection;
    8-8              (6)  refunds of items of extra expense to the student,
    8-9  such as instructional supplies, books, student activities,
   8-10  laboratory fees, service charges, rentals, deposits, and all other
   8-11  such ancillary miscellaneous charges, where these items are
   8-12  separately stated and shown in the data furnished the student
   8-13  before enrollment, will be made in a reasonable manner acceptable
   8-14  to the administrator;
   8-15              (7)  refunds based on enrollment in residence schools
   8-16  will be totally consummated within 60 <30> days after the effective
   8-17  date of termination;
   8-18              (8)  refunds for correspondence courses will be
   8-19  computed on the basis of the number of lessons in the course;
   8-20              (9)  the effective date of the termination for refund
   8-21  purposes in correspondence courses will be the earliest of the
   8-22  following:
   8-23                    (A)  the date of notification to the student if
   8-24  the student is terminated;
   8-25                    (B)  the date of receipt of written notice from
   8-26  the student;
   8-27                    (C)  the end of the third calendar month
    9-1  following the month in which the student's last lesson assignment
    9-2  was received unless notification has been received from the student
    9-3  that he wishes to remain enrolled;
    9-4              (10)  if tuition and fees are <is> collected before any
    9-5  lessons have been completed, and if, after expiration of the
    9-6  72-hour cancellation privilege, the student fails to begin the
    9-7  course, not more than $50 shall be retained by the school;
    9-8              (11)  in cases of termination or withdrawal after the
    9-9  student has begun the correspondence course, the school may retain
   9-10  $50 of tuition and fees, and the minimum refund policy must provide
   9-11  that the student will be refunded the pro rata portion of the
   9-12  remaining tuition, fees, and other charges that the number of
   9-13  lessons completed and serviced by the school bears to the total
   9-14  number of lessons in the course;
   9-15              (12)  refunds based on enrollment in correspondence
   9-16  schools will be totally consummated within 60 <30> days after the
   9-17  effective date of termination.
   9-18        (e)  If a refund is not made within the period required by
   9-19  this section, the school shall pay a penalty <interest on the
   9-20  refund for the interval beginning with the first day following the
   9-21  expiration of the refund period and ending with the day immediately
   9-22  preceding the date the refund is made>.  If the refund is made to a
   9-23  lending institution, the penalty <interest> shall also be paid to
   9-24  that institution and applied against the student's loan.  The
   9-25  commissioner of education annually shall establish the level of the
   9-26  penalty <interest> at a level sufficient to provide a deterrent to
   9-27  the retention of student funds.  The Central Education Agency may
   10-1  exempt a school from the payment of the penalty <interest> if the
   10-2  school makes a good faith effort to refund the tuition, fees, and
   10-3  other charges but is unable to locate the student.  The school
   10-4  shall provide to the agency on request documentation of the effort
   10-5  to locate the student.
   10-6        (g)  A program that is 40 hours or less of class time, or a
   10-7  seminar or workshop, is exempt from the 72-hour rule provided by
   10-8  Subsection (b) of this section.  The school shall maintain a policy
   10-9  for the refund of the unused portion of tuition, fees, and other
  10-10  charges in the event the student fails to enter the course,
  10-11  withdraws from the course, or is discontinued from the class at any
  10-12  time before completion of the course as provided by this section.
  10-13  The policy must provide that:
  10-14              (1)  refunds are based on the period of enrollment
  10-15  computed on the basis of course time expressed in clock hours;
  10-16              (2)  the effective date of the termination for refund
  10-17  purposes is the earlier of:
  10-18                    (A)  the last date of attendance; or
  10-19                    (B)  the date the school receives written notice
  10-20  from the student that the student is withdrawing from the class;
  10-21  and
  10-22              (3)  the student will be refunded the pro rata portion
  10-23  of tuition, fees, and other charges that the number of class hours
  10-24  remaining in the course after the effective date of the termination
  10-25  bears to the total number of class hours in the course.
  10-26        SECTION 6.  Section 32.401, Education Code, is amended to
  10-27  read as follows:
   11-1        Sec. 32.401.  APPROVED DEGREES.  <(a)>  A proprietary school
   11-2  may offer a <an associate of applied arts or an associate of
   11-3  applied science> degree approved by the Texas Higher Education
   11-4  Coordinating Board.
   11-5        <(b)  A proprietary school may offer an applied technology
   11-6  degree, an occupational studies degree, or other degree approved by
   11-7  the Central Education Agency.  The Central Education Agency shall
   11-8  have no authority to approve a degree title that uses "associate,"
   11-9  "bachelor's," "master's," or "doctor's" in the title and shall
  11-10  consult with the Texas Higher Education Coordinating Board to
  11-11  ensure that the titles of degrees approved by the agency are
  11-12  distinctly different from the titles of degrees approved by the
  11-13  board.>
  11-14        SECTION 7.  Subchapter D, Chapter 32, Education Code, is
  11-15  amended by adding Section 32.402 to read as follows:
  11-16        Sec. 32.402.  NONQUALIFICATION AS PROPRIETARY SCHOOL.  (a)  A
  11-17  school operating as a small proprietary school but that has an
  11-18  annual gross income from tuition and fees that exceeds $100,000
  11-19  (other than a test preparation school as defined in Section
  11-20  32.11(10)(B) or (C)) that intends to receive a payment from federal
  11-21  funds under 20 U.S.C. Section 1070 et seq. or intends to receive
  11-22  prepayment of tuition, fees, or other charges from federal or state
  11-23  funds shall send written notice to the administrator.  The notice
  11-24  must be sent not later than the following date, as applicable:
  11-25              (1)  the 60th day after the date on which annual gross
  11-26  income is determined to exceed the maximum;
  11-27              (2)  the day before receiving a payment of federal
   12-1  funds under 20 U.S.C.  Section 1070 et seq.; or
   12-2              (3)  the day before enrolling a student who will prepay
   12-3  tuition, a fee, or another charge in whole or in part from federal
   12-4  or state funds.
   12-5        (b)  A school that no longer qualifies as a small proprietary
   12-6  school shall apply for an initial certificate of approval as a
   12-7  proprietary school within 30 days after the date the school has
   12-8  notified the administrator that it no longer qualifies as a small
   12-9  proprietary school.  The administrator may apply or prorate any
  12-10  fees paid by the school as a small proprietary school.
  12-11        (c)  A school that no longer qualifies as a small proprietary
  12-12  school shall submit to the administrator an amount of money equal
  12-13  to the difference between the fee for the small proprietary school
  12-14  certificate of approval submitted by the school and the fee that
  12-15  the school would be required to submit after its qualifications as
  12-16  a small proprietary school cease.
  12-17        (d)  The authority of a school to operate under a small
  12-18  proprietary school certificate of approval terminates on the final
  12-19  determination of issuance or denial of an initial certificate of
  12-20  approval.  If a school fails to file a complete application within
  12-21  the period required by Subsection (b) of this section, the school,
  12-22  as a condition of issuance, must pay a late fee in an amount
  12-23  established by State Board of Education rule of at least $100.
  12-24        SECTION 8.  Subchapter G, Chapter 32, Education Code, is
  12-25  amended by adding Section 32.65 to read as follows:
  12-26        Sec. 32.65.  PENALTY FOR SMALL PROPRIETARY SCHOOL.  (a)  If a
  12-27  school fails to timely comply with the requirements of Section
   13-1  32.402 of this code, in addition to any other penalties authorized
   13-2  by law, the administrator may assess a penalty in an amount not
   13-3  greater than two times the amount that the school would have paid
   13-4  in fees and other charges if the school had complied with the
   13-5  requirements of Section 32.402 or may assess a penalty in the
   13-6  amount of the tuition or fee charge to any students whose tuition
   13-7  or fees were contracted to be funded by a prepaid federal or state
   13-8  source.
   13-9        (b)  If the administrator finds that the school acted
  13-10  intentionally, the administrator may, in addition to any other
  13-11  remedy available under law, assess a penalty against the owner in
  13-12  an amount not greater than four times the amount of the fees and
  13-13  charges that the school should have paid or four times the amount
  13-14  of the student tuition that was contracted to be funded from a
  13-15  prepaid federal or state source.
  13-16        (c)  The failure to notify the administrator within four
  13-17  months after the school's earnings exceed that of a small
  13-18  proprietary school gives rise to a rebuttable presumption of intent
  13-19  for purposes of assessment of a penalty.
  13-20        (d)  The failure to notify the administrator within 10 days
  13-21  after a school has enrolled a student whose tuition or fees are
  13-22  paid in whole or in part from a prepaid federal or state source
  13-23  gives rise to a rebuttable presumption of intent for purposes of
  13-24  assessment of a penalty.
  13-25        (e)  A civil penalty under this section shall be assessed in
  13-26  accordance with the procedures stated in Section 32.611 of this
  13-27  code.  A penalty collected shall be deposited in the state treasury
   14-1  to the credit of the general revenue fund.
   14-2        SECTION 9.  Section 32.71,  Education Code, is amended by
   14-3  amending Subsections (a), (f), and (g) and adding Subsection (h) to
   14-4  read as follows:
   14-5        (a)  Certificate and registration fees, except those charged
   14-6  pursuant to Subsection (d) of this section, shall be collected by
   14-7  the Administrator and deposited with the State Treasurer.  Each fee
   14-8  shall be in an amount set by the Administrator and approved by the
   14-9  State Board of Education in an amount not to exceed 150 percent of
  14-10  each fee in the following schedule:
  14-11              (1)  the initial fee for a school:
  14-12                    (A)  for a certificate of approval <the initial
  14-13  fee for a school> is $2,000; or
  14-14                    (B)  for a small proprietary school certificate
  14-15  of approval is $1,000;
  14-16              (2)  the first <annual> renewal fee and each subsequent
  14-17  renewal  fee for a school is the greater of:
  14-18                    (A)  an amount that is determined by applying a
  14-19  percentage, not to exceed 0.3 percent, to the gross tuition and
  14-20  fees, excluding refunds as provided by Section 32.39 of this code,
  14-21  of the school; or
  14-22                    (B)  $500;
  14-23              (3)  the initial registration fee for a representative
  14-24  is $60;
  14-25              (4)  the annual renewal fee for a representative is
  14-26  $30;
  14-27              (5)  the fee for a change of a name of a school or
   15-1  owner is $100;
   15-2              (6)  the fee for a change of an address of a school is
   15-3  $180;
   15-4              (7)  the fee for a change in the name or address of a
   15-5  representative or a change in the name or address of a school that
   15-6  causes the reissuance of a representative permit is $10;
   15-7              (8)  the application fee for an additional course is
   15-8  $150, except for seminar and workshop courses, for which the fee is
   15-9  $25;
  15-10              (9)  the application fee for a director, administrative
  15-11  staff member, or instructor is $15;
  15-12              (10)  the application fee for the authority to grant
  15-13  degrees is $2,000;
  15-14              (11)  the application fee for an additional degree
  15-15  course is $250; and
  15-16              (12)  the fee for an inspection required by rule of the
  15-17  State Board of Education of classroom facilities that are separate
  15-18  from the main campus is $250.
  15-19        (f)  The administrator may allow payment of any fee
  15-20  authorized under this section or under Section 32.91 of this code
  15-21  that exceeds $1,000 to be paid by installment.  The administrator
  15-22  shall provide for appropriate interest charges and late penalties
  15-23  in addition to any other remedy that is provided for by law for the
  15-24  late payment of a fee installment authorized under this section.
  15-25  The administrator may assess a reasonable service charge or
  15-26  interest to be paid by a school that pays a fee by installment in
  15-27  an amount not to exceed 10 percent annually of the fee that is to
   16-1  be paid by installment  <The Administrator, with the approval of
   16-2  the State Board of Education, may increase any fee authorized under
   16-3  this section at a rate not to exceed the increase in the National
   16-4  Consumer Price Index For All Urban Consumers.  The calculation of
   16-5  the index in effect on September 1, 1989, shall be the base for
   16-6  calculating the rate at which fees may increase.  Fee increases
   16-7  under this subsection do not have to be made annually>.
   16-8        (g)  All fees, interest, or other charges collected under
   16-9  this section shall be used only for the administration of the Texas
  16-10  Proprietary School Act.
  16-11        (h)  The administrator may apply or prorate a fee paid by a
  16-12  small proprietary school that has complied with the notification
  16-13  requirements of Section 32.402 of this code toward an initial
  16-14  certificate as a proprietary school in the event that a school has
  16-15  ceased to qualify as a small proprietary school during a
  16-16  certification period.
  16-17        SECTION 10.  Section 32.91, Education Code, is amended by
  16-18  amending Subsection (a) and adding Subsection (e) to read as
  16-19  follows:
  16-20        (a)  Except as provided by Subsection (e) of this section, at
  16-21  <At> the time that each school pays its annual renewal fee, in the
  16-22  years provided by Subsection (c) of this section, the State Board
  16-23  of Education shall also collect a fee from the school for deposit
  16-24  to the credit of a special fund in the state treasury to be called
  16-25  the proprietary school tuition protection fund.
  16-26        (e)  A school is not required to pay the fee for the tuition
  16-27  protection fund under Subsection (a) of this section if, at the
   17-1  time the school pays the annual renewal fee, the bond provided by
   17-2  the school under Section 32.38 of this code is greater than the
   17-3  unearned tuition of the school.
   17-4        SECTION 11.  Section 32.12(a), Education Code, is amended to
   17-5  read as follows:
   17-6        (a)  The following schools or educational institutions are
   17-7  specifically exempt from the provisions of this chapter and are not
   17-8  within the definition of "proprietary school":
   17-9              (1)  a school or educational institution supported by
  17-10  taxation from either a local or State source;
  17-11              (2)  nonprofit schools owned, controlled, operated, and
  17-12  conducted by bona fide religious, denominational, eleemosynary, or
  17-13  similar public institutions exempt from property taxation under the
  17-14  laws of this State, but such schools may choose to apply for a
  17-15  certificate of approval hereunder, and upon approval and issuance,
  17-16  shall be subject to the provisions of this chapter as determined by
  17-17  the administrator;
  17-18              (3)  a school or training program which offers
  17-19  instruction of purely avocational or recreational subjects as
  17-20  determined by the administrator;
  17-21              (4)  a course or courses of instruction or study
  17-22  sponsored by an employer for the training and preparation of its
  17-23  own employees, and for which no tuition fee is charged to the
  17-24  student;
  17-25              (5)  a course or courses of study or instruction
  17-26  sponsored by a recognized trade, business, or professional
  17-27  organization for the instruction of the members of the organization
   18-1  with a closed membership;
   18-2              (6)  private colleges or universities which award a
   18-3  recognized baccalaureate, or higher degree, and which maintain and
   18-4  operate educational programs for which a majority of the credits
   18-5  given are transferable to a college, junior college, or university
   18-6  supported entirely or partly by taxation from either a local or
   18-7  State source;
   18-8              (7)  a school or course which is otherwise regulated
   18-9  and approved under and pursuant to any other law or rulemaking
  18-10  process of the State or approved for continuing education credit by
  18-11  an organization that accredits courses for the maintenance of a
  18-12  license, except as provided by Subsection (c) of this section;
  18-13              (8)  aviation schools or instructors approved by and
  18-14  under the supervision of the Federal Aviation Administration;
  18-15              (9)  a school which offers intensive review courses
  18-16  designed to prepare students for certified public accountancy
  18-17  tests, public accountancy tests, law school aptitude tests, bar
  18-18  examinations, or medical college admissions tests.
  18-19        SECTION 12.  Section 32.12, Education Code, is amended by
  18-20  adding Subsection (d) to read as follows:
  18-21        (d)  Notwithstanding the exemptions listed in Subsection (a)
  18-22  above, a dispute resolution organization, as defined by
  18-23  Section 154.001, Civil Practice and Remedies Code, may elect to
  18-24  seek a certificate of approval pursuant to Subchapter D of the
  18-25  Texas Proprietary Schools Act.
  18-26        SECTION 13.  Section 32.21(d), Education Code, is repealed.
  18-27        SECTION 14.  This Act applies beginning with the 1993-1994
   19-1  school year.
   19-2        SECTION 15.  The importance of this legislation and the
   19-3  crowded condition of the calendars in both houses create an
   19-4  emergency and an imperative public necessity that the
   19-5  constitutional rule requiring bills to be read on three several
   19-6  days in each house be suspended, and this rule is hereby suspended,
   19-7  and that this Act take effect and be in force from and after its
   19-8  passage, and it is so enacted.