By Gallegos H.B. No. 2290
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of driver and traffic safety education
1-3 by the Texas Department of Licensing and Regulation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 3, Article 4413(29c), Vernon's Texas
1-6 Civil Statutes, is amended by amending subsections (1), (2), and
1-7 (3) to read as follows:
1-8 (1) "Agency" means the Texas Department of Licensing
1-9 and Regulation <Central Education Agency>, acting directly or
1-10 through its authorized officers and agents.
1-11 (2) "Commission" <"Board"> means the Commission of
1-12 Licensing and Regulation <State Board of Education>.
1-13 (3) "Commissioner" means the commissioner of licensing
1-14 and regulation <education> or a person knowledgeable in the
1-15 administration of regulating driver training schools and designated
1-16 by the commissioner to administer this Act.
1-17 SECTION 2. Section 4, Article 4413(29c), Vernon's Texas
1-18 Civil Statutes, is amended to read as follows:
1-19 Sec. 4. GENERAL POWERS AND DUTIES. (a) The agency shall
1-20 exercise jurisdiction and control of the system of schools, and the
1-21 commissioner shall administer this Act and enforce minimum
1-22 standards for schools under this Act. The commission <board> shall
1-23 adopt rules necessary to carry out this Act in consultation with
2-1 the Driver Training School Advisory Commission.
2-2 (b) The commission <board> shall enter into a memorandum of
2-3 understanding with the Texas Rehabilitation Commission and the
2-4 Department of Public Safety for the interagency development of
2-5 curricula and licensing criteria for hospital and rehabilitation
2-6 facilities that teach driver education. The agency shall
2-7 administer comprehensive rules governing driver education courses
2-8 adopted by mutual agreement between the commission <board>, the
2-9 Texas Rehabilitation Commission, and the Department of Public
2-10 Safety. The commission <board> shall file the rules with the
2-11 secretary of state.
2-12 SECTION 3. Section 5, Article 4413(29c), Vernon's Texas
2-13 Civil Statutes, is amended to read as follows:
2-14 Sec. 5. DRIVER TRAINING SCHOOL ADVISORY COMMITTEE
2-15 (COMMISSION.
2-16 (a) The Driver Training School Advisory Committee
2-17 <Commission> is created. The committee <commission> is composed of
2-18 12 members appointed by the commission <board> for terms of two
2-19 years expiring on January 31 of each odd-numbered year. Members
2-20 may serve two consecutive terms but are restricted to a total of
2-21 four years on the committee <commission>. If a committee
2-22 <commission> member resigns or is otherwise unable to serve, a new
2-23 member shall be appointed by the commission <board> to fill the
2-24 position for the unexpired term. Three members of the committee
2-25 <commission> shall be owners or employees employed in a managerial
3-1 or executive capacity and shall include at least one person from a
3-2 school that teaches only driver education, one person from a school
3-3 that teaches only driving safety, and one person from a school that
3-4 teaches both driver education and driving safety. One member must
3-5 be an employee but must not be a course owner, primary consignee,
3-6 or school owner and must have no connection to any other member.
3-7 Of the remaining eight members, two members must be distinguished
3-8 Texas residents who have no direct connection to driver training,
3-9 two shall have direct connections to the Texas court system, one
3-10 shall be a Texas public school official with experience in driver
3-11 education, two shall have primary duties in the Department of
3-12 Public Safety, and one shall have a direct connection to the
3-13 insurance industry in Texas. All members appointed by the
3-14 commission <board> shall have been recommended by the commissioner
3-15 to the commission <board>. In making a recommendation, the
3-16 commissioner shall consider any recommendations made by parties
3-17 interested in the committee <commission>.
3-18 (b) The committee <commission> shall elect one member as
3-19 chairman. A majority of the members at the call of the chairman
3-20 shall organize and elect other necessary officers.
3-21 (c) The committee <commission> shall meet in Austin on the
3-22 third Thursday of each March, May, and October and shall conduct
3-23 special meetings at the call of the chairman or commissioner or on
3-24 the written petition of at least six members of the committee
3-25 <commission>.
4-1 (d) A member of the committee <commission> serves without
4-2 compensation but is entitled to receive reimbursement for actual
4-3 expenses incurred while traveling on official business in
4-4 accordance with the General Appropriations Act.
4-5 (e) A majority of the committee <commission> is a quorum for
4-6 the conduct of business. No fewer than six members must concur in
4-7 any matter.
4-8 (f) The committee <commission> is advisory and shall act
4-9 with advice and assistance from the commissioner. It may hold
4-10 hearings on substantive changes in rules and minimum standards.
4-11 The advice of the committee <commission> with respect to the
4-12 policies, minimum standards, and rules for carrying out this Act
4-13 shall be forwarded by the commissioner to the commission <board>.
4-14 SECTION 4. Subsections (a) and (b), Section 6, Article
4-15 4413(29c), Vernon's Texas Civil Statutes, are amended to read as
4-16 follows:
4-17 Sec. 6. DUTIES OF COMMISSIONER. (a) The commissioner shall
4-18 carry out the policies of this Act, enforce rules adopted by the
4-19 commission <board>, and certify those schools meeting the
4-20 requirements for a driver training school license.
4-21 (b) The commissioner may adopt and enforce temporary rules
4-22 under this Act, but the temporary rules are valid only until the
4-23 next meeting of the commission <board>.
4-24 SECTION 5. Section 8, Article 4413(29c), Vernon's Texas
4-25 Civil Statutes, is amended to read as follows:
5-1 Sec. 8. COMPETITIVE BIDDING; ADVERTISING. The commission
5-2 <board> may not adopt rules to restrict competitive bidding or
5-3 advertising by a driver training school except to prohibit false,
5-4 misleading, or deceptive competitive bidding or advertising
5-5 practices. Specifically, no rule may restrict:
5-6 (1) the use of an advertising medium;
5-7 (2) the outside dimensions of a printed advertisement
5-8 or outdoor display;
5-9 (3) the duration of an advertisement; or
5-10 (4) advertisement under a trade name.
5-11 SECTION 6. Subsection (a), Section 12, Article 4413(29c),
5-12 Vernon's Texas Civil Statutes, is amended to read as follows:
5-13 Sec. 12. APPLICATION FOR DRIVER TRAINING SCHOOL LICENSE.
5-14 (a) To operate or do business in this state, a school must make
5-15 written application to the commissioner for a driver training
5-16 school license. The application must be verified, be in the form
5-17 prescribed by the commission <board>, and include all information
5-18 required. A school that offers driving safety courses shall obtain
5-19 approval from the agency for any extension.
5-20 SECTION 7. Subsections (a), (b), (c), and (d), Section 13,
5-21 Article 4413(29c), Vernon's Texas Civil Statutes, are amended to
5-22 read as follows:
5-23 Sec. 13. REQUISITES FOR LICENSE. (a) The commissioner
5-24 shall approve the application of a school when the school is found,
5-25 on investigation at the premises of the school, to meet the
6-1 following criteria:
6-2 (1) the courses, curriculum, and instruction are of
6-3 such quality, content, and length as may reasonably and adequately
6-4 achieve the stated objective for which the courses, curriculum, and
6-5 instruction are offered;
6-6 (2) there are in the school, and in the provision for
6-7 behind-the-wheel instruction, adequate space, equipment,
6-8 instructional material, and instructors to provide training of good
6-9 quality;
6-10 (3) educational and experience qualifications of
6-11 directors, instructors, and administrators are adequate;
6-12 (4) a copy of the schedule of tuition, fees, refund
6-13 policy, and other charges, regulations pertaining to absence,
6-14 grading policy, and rules of operation and conduct, and the name,
6-15 mailing address, and telephone number of the agency for the purpose
6-16 of directing complaints to the agency is furnished to each student
6-17 before enrollment;
6-18 (5) on completion of training, each student is given a
6-19 certificate by the school indicating the course name and
6-20 satisfactory completion;
6-21 (6) adequate records as prescribed by the commissioner
6-22 are kept to show attendance and progress or grades, and
6-23 satisfactory standards relating to attendance, progress, and
6-24 conduct are enforced;
6-25 (7) the school complies with all county, municipal,
7-1 state, and federal regulations, including fire, building, and
7-2 sanitation codes and assumed name registration;
7-3 (8) the school is financially sound and capable of
7-4 fulfilling its commitments for training;
7-5 (9) the school's administrators, directors, owners,
7-6 and instructors are of good reputation and character;
7-7 (10) the school has, maintains, and publishes as part
7-8 of its student enrollment contract the proper policy for the refund
7-9 of the unused portion of tuition, fees, and other charges if a
7-10 student enrolled by the school fails to take the course or
7-11 withdraws or is discontinued from the school at any time before
7-12 completion;
7-13 (11) the school does not use erroneous or misleading
7-14 advertising, either by actual statement, omission, or intimation,
7-15 as determined by the commission <board>;
7-16 (12) the school does not use a name like or similar to
7-17 the name of another existing school or tax-supported educational
7-18 establishment in this state, unless specifically approved in
7-19 writing by the commissioner;
7-20 (13) the school submits to the agency for approval the
7-21 applicable course hour lengths and curriculum content for each
7-22 course offered by the school;
7-23 (14) the school does not owe a civil penalty under
7-24 this Act; and
7-25 (15) additional criteria as may be required by the
8-1 commission <board>.
8-2 (b)(1) License, application, and registration fees shall be
8-3 collected by the commissioner and deposited with the state
8-4 treasurer. Fees shall be sufficient to cover administrative costs
8-5 and may not be subject to refund. Each fee shall be set by the
8-6 commissioner and approved by the commission <board> in an amount
8-7 not to exceed 150 percent of the following:
8-8 (A) the initial fee for a school is $1,700;
8-9 (B)(i) annual renewal fees as specified in this
8-10 subsection may be waived by the agency if revenue generated by the
8-11 sale of uniform certificates of completion is sufficient to fund
8-12 the cost of administering this Act and Section 143A, Uniform Act
8-13 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
8-14 Statutes); and
8-15 (ii) the annual renewal fee for a school
8-16 shall be determined by the commission <board> in an amount
8-17 sufficient to fund the cost of administering this Act and Section
8-18 143A, Uniform Act Regulating Traffic on Highways (Article 6701d,
8-19 Vernon's Texas Civil Statutes);
8-20 (C) the fee for a change of address of a school
8-21 is $180;
8-22 (D) the fee for a change of name of a school or
8-23 owner is $100;
8-24 (E) the application fee for each additional
8-25 course is $25;
9-1 (F) the application fee for each director,
9-2 assistant director, or administrative staff member is $15;
9-3 (G) the fee for each extension is $35;
9-4 (H) each application for an original driver
9-5 training instructor's license shall be accompanied by a processing
9-6 fee of $50 and an annual license fee of $25; and
9-7 (I) the fee for a duplicate license, which may
9-8 be issued if the original is lost or destroyed and an affidavit of
9-9 that fact is filed with the agency, shall be set by the commission
9-10 <board> in an amount sufficient to cover the costs of issuing the
9-11 duplicate license.
9-12 (2) A driver education instructor who teaches driver
9-13 education courses in a county having a population of 50,000 or
9-14 less, according to the most recent federal census, and who has no
9-15 more than 200 students annually, shall be regulated by the agency
9-16 as a school. An instructor described by this subdivision shall
9-17 submit a school application or renewal form plus all required
9-18 documentation and information to the agency. The commissioner may
9-19 waive initial school fees, annual school renewal fees, or
9-20 director's or administrative staff member's fees. An instructor
9-21 described by this subdivision is not exempt from licensing
9-22 requirements or fees.
9-23 (3) The commissioner shall periodically review and
9-24 recommend adjustments in the level of fees to the commission
9-25 <board> and legislature.
10-1 (4) The fee for an investigation at a school to
10-2 resolve a complaint filed against the school shall be set by the
10-3 commissioner and approved by the commission <board>. The complaint
10-4 investigation fee may be charged only if:
10-5 (A) the complaint could not have been resolved
10-6 solely by telephone or written correspondence;
10-7 (B) a representative of the agency visited the
10-8 school as a part of the complaint resolution process; and
10-9 (C) the school is found to be at fault.
10-10 (5) The agency shall print and supply serial numbered
10-11 uniform certificates of course completion to owners or primary
10-12 consignees of courses approved under this Act. The agency may
10-13 charge a fee of $1 for each certificate. An owner or consignee may
10-14 not charge an operator a fee in excess of the fee paid to the
10-15 agency for a certificate.
10-16 (6) The commissioner, with approval of the commission
10-17 <board>, may increase any fee authorized under this subsection at a
10-18 rate that does not exceed the increase in the Consumer Price Index
10-19 for All Urban Consumers published by the Department of Labor. Fees
10-20 under this subsection do not have to be increased annually.
10-21 (7) Fees collected under this subsection shall be
10-22 deposited in the state treasury in a special account in the General
10-23 Revenue Fund. Money in the account may be appropriated only for
10-24 the administration of this Act and Section 143A, Uniform Act
10-25 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
11-1 Statutes).
11-2 (c) The cost of administration of this Act shall be included
11-3 in the state budget allowance for the commission <board>.
11-4 (d)(1) The commissioner, on review of an application for a
11-5 driver training school license that is submitted in accordance with
11-6 this Act and that meets the requirements of this Act, shall issue a
11-7 driver training school license to the applicant. A driver training
11-8 school license shall be in a form recommended by the commissioner
11-9 and approved by the commission <board> and shall show in a clear
11-10 and conspicuous manner at least the following:
11-11 (A) the date of issuance, effective date, and
11-12 term of approval;
11-13 (B) the name and address of the school;
11-14 (C) the authority for approval and conditions of
11-15 approval;
11-16 (D) the signature of the commissioner; and
11-17 (E) any other fair and reasonable
11-18 representations that are consistent with this Act and considered
11-19 necessary by the commissioner.
11-20 (2) The term for which a driver training school
11-21 license is issued may not exceed one year.
11-22 (3) A driver training school license issued to an
11-23 owner of the applicant school is nontransferable and is the
11-24 property of the state. In the event of a change in ownership of
11-25 the school, a new owner shall, at least 30 days before the date of
12-1 the change in ownership, apply for a new driver training school
12-2 license.
12-3 (4) At least 30 days before the expiration of a driver
12-4 training school license, the school shall forward to the
12-5 commissioner an application for renewal. The commissioner may
12-6 reexamine the school premises and shall renew or cancel the
12-7 school's driver training school license. If a school fails to file
12-8 a complete application for renewal at least 30 days before the
12-9 expiration date of the driver training school license, the school
12-10 shall pay as a condition of renewal and in addition to any annual
12-11 renewal fee a late renewal fee in an amount established by
12-12 commission <board> rule of at least $100, subject to Subsection (b)
12-13 of this section.
12-14 (5) The commissioner shall visit a school and
12-15 reexamine the school for compliance with the criteria adopted under
12-16 this Act not later than three months after the date a school begins
12-17 operation or after a change in ownership of a school.
12-18 SECTION 8. Subsection (d), Section 18, Article 4413(29c),
12-19 Vernon's Texas Civil Statutes, is amended to read as follows:
12-20 (d) On filing of the lawsuit, citation shall be served on
12-21 the commissioner, who shall cause to be made a complete record of
12-22 all proceedings had before the commissioner and certify a copy of
12-23 the proceedings to the court. Trial before the court shall be on
12-24 the basis of the record made before the commissioner, and the court
12-25 shall make its decision based on the record. The commissioner's
13-1 decision shall be affirmed by the court if the court finds
13-2 substantial evidence in the record to justify the decision, unless
13-3 the court finds the denial of the license to be:
13-4 (1) arbitrary and capricious;
13-5 (2) in violation of the constitution or laws of the
13-6 United States or this state; or
13-7 (3) in violation of rules adopted by the commission
13-8 <board> under this Act.
13-9 SECTION 9. This Act takes effect September 1, 1993.
13-10 SECTION 10. (a) The administration and regulation of driver
13-11 training schools and driver training instructors under Article
13-12 4413(29c) is transferred to the Texas Department of Licensing and
13-13 Regulation on the effective date of this Act.
13-14 (b) All property and records in the custody of the Central
13-15 Education Agency relating to the administration or regulation of
13-16 driver training schools and driver training instructors under
13-17 Article 4413(29c), Vernon's Texas Civil Statutes, shall be
13-18 transferred to the Texas Department of Licensing and Regulation on
13-19 the effective date of this Act.
13-20 (c) Any unspent appropriations to the Central Education
13-21 Agency for the administration or regulation of driver training
13-22 schools and driver training instructors under Article 4413(29c),
13-23 Vernon's Texas Civil Statutes, are transferred to the Texas
13-24 Department of Licensing and Regulation on the effective date of
13-25 this Act. The comptroller shall determine the amount subject to
14-1 the transfer.
14-2 (d) The rules, regulations, policies, procedures, and
14-3 standards of the State Board of Education relating to the
14-4 administration or regulation of driver training schools and driver
14-5 training instructors under Article 4413(29c), Vernon's Texas Civil
14-6 Statutes, are continued in effect as if adopted by the commissioner
14-7 of licensing and regulation or by the Texas Commission of Licensing
14-8 and Regulation until superseded by an action taken by the
14-9 commissioner or commission on or after the effective date of this
14-10 Act.
14-11 (e) A memorandum of understanding or other agreement between
14-12 the Central Education Agency and any other entity relating to the
14-13 administration and regulation of driver training schools and driver
14-14 training instructors in effect on the effective date of this Act
14-15 remains in effect on or after that date. The Texas Department of
14-16 Licensing and Regulation shall assume the rights, powers, and
14-17 duties of the Central Education Agency under the memorandum of
14-18 understanding or other agreement on that date.
14-19 (f) A member of the Driver Training School Advisory
14-20 Commission who was appointed by the State Board of Education and
14-21 who serves on the commission immediately before the effective date
14-22 of this Act is entitled to serve on the Driver Training School
14-23 Committee created by this Act until the expiration of the term for
14-24 which the member was appointed. As the terms of those members
14-25 expire or as their positions onthe commission become vacant, the
15-1 Texas Commission of Licensing and Regulation shall appoint members
15-2 to the committee.
15-3 SECTION 11. The importance of this legislation and the
15-4 crowded condition of the calendars in both houses create an
15-5 emergency and an imperative public necessity that the
15-6 constitutional rule requiring bills to be read on three several
15-7 days in each house be suspended, and this rule is hereby suspended.