By Grusendorf H.B. No. 2410
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of driver training schools.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3(7), Texas Driver and Traffic Safety
1-5 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
1-6 is amended to read as follows:
1-7 (7) "Extension" means an entity that geographically
1-8 extends the educational resources of a driver training school by
1-9 offering a driving safety course in a location other than the main
1-10 business location of the school. An extension may use multiple
1-11 locations to teach a driving safety course if each location is
1-12 approved by the parent school and the agency. A driver education
1-13 course may not be conducted at an extension. An extension of an
1-14 extension is not permitted.
1-15 SECTION 2. Section 8, Texas Driver and Traffic Safety
1-16 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
1-17 is amended to read as follows:
1-18 Sec. 8. COMPETITIVE BIDDING; ADVERTISING. (a) The board
1-19 may not adopt rules to restrict competitive bidding or advertising
1-20 by a driver training school except to prohibit false, misleading,
1-21 or deceptive competitive bidding or advertising practices.
1-22 Specifically, no rule may restrict:
1-23 (1) the use of an advertising medium;
2-1 (2) the outside dimensions of a printed advertisement
2-2 or outdoor display;
2-3 (3) the duration of an advertisement; or
2-4 (4) advertisement under a trade name.
2-5 (b) The board may adopt rules to restrict advertising by a
2-6 branch location of a school so that the branch location adequately
2-7 identifies its primary driver training school in any solicitation.
2-8 SECTION 3. Section 9, Texas Driver and Traffic Safety
2-9 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
2-10 is amended to read as follows:
2-11 Sec. 9. Prohibitions. A person may not:
2-12 (1) operate a school without a driver training school
2-13 license issued by the commissioner;
2-14 (2) utilize advertising designed to mislead or deceive
2-15 a prospective student;
2-16 (3) fail to notify the commissioner of the
2-17 discontinuance of the operation of any school within three working
2-18 days after cessation of classes and make available accurate records
2-19 as required by this Act;
2-20 (4) sell, trade, or transfer a uniform certificate of
2-21 completion to any person, school, or extension not authorized to
2-22 possess it;
2-23 (5) sell, trade, or transfer a uniform certificate of
2-24 completion to a student who has not successfully completed an
2-25 agency-approved, six-hour <eight-hour> driving safety course;
3-1 (6) negotiate any promissory instrument received as
3-2 payment of tuition or other charge before completion of 75 percent
3-3 of the course, except that before that time, the instrument may be
3-4 assigned to a purchaser who will be subject to all the defenses
3-5 available against the school named as payee;
3-6 (7) conduct any part of an agency-approved driver
3-7 education or driving safety course without an instructor who is
3-8 physically present in appropriate proximity to the student for the
3-9 type of instruction being given; or
3-10 (8) violate any provision of this Act.
3-11 SECTION 4. The Texas Driver and Traffic Safety Education Act
3-12 (Article 4413(29c), Vernon's Texas Civil Statutes) is amended by
3-13 adding Section 10A to read as follows:
3-14 Sec. 10A. BRANCH LOCATIONS. A driver training school that
3-15 teaches a driver education course at one or more branch locations
3-16 other than the main business location of the school must obtain a
3-17 driver training school license for the main business location of
3-18 the school and a driver training school license for each branch
3-19 location. An extension or a branch location of a branch location
3-20 is not permitted.
3-21 SECTION 5. Sections 13(b), (d), and (g), Texas Driver and
3-22 Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
3-23 Civil Statutes), are amended to read as follows:
3-24 (b)(1) License, application, and registration fees shall be
3-25 collected by the commissioner and deposited with the state
4-1 treasurer. Fees shall be sufficient to cover administrative costs
4-2 and may not be subject to refund. Each fee shall be set by the
4-3 commissioner and approved by the board in an amount not to exceed
4-4 150 percent of the following:
4-5 (A) the initial fee for a driver training school
4-6 license is $1,700 plus $850 for each branch location;
4-7 (B)(i) annual renewal fees as specified in this
4-8 subsection may be waived by the agency if revenue generated by the
4-9 sale of uniform certificates of completion is sufficient to fund
4-10 the cost of administering this Act and Section 143A, Uniform Act
4-11 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
4-12 Statutes); and
4-13 (ii) the annual renewal fee for a school
4-14 license shall be determined by the board in an amount sufficient to
4-15 fund the cost of administering this Act and Section 143A, Uniform
4-16 Act Regulating Traffic on Highways (Article 6701d, Vernon's Texas
4-17 Civil Statutes);
4-18 (C) the fee for a change of address of a school
4-19 is $180;
4-20 (D) the fee for a change of name of a school or
4-21 owner is $100;
4-22 (E) the application fee for each additional
4-23 course is $25;
4-24 (F) the application fee for each director is
4-25 $30, and for each assistant director, or administrative staff
5-1 member is $15;
5-2 (G) the fee for each extension is $35;
5-3 (H) each application for an original driver
5-4 training instructor's license shall be accompanied by a processing
5-5 fee of $50 and an annual license fee of $25; and
5-6 (I) the fee for a duplicate license, which may
5-7 be issued if the original is lost or destroyed and an affidavit of
5-8 that fact is filed with the agency, shall be set by the board in an
5-9 amount sufficient to cover the costs of issuing the duplicate
5-10 license.
5-11 (2) A driver education instructor who teaches driver
5-12 education courses in a county having a population of 50,000 or
5-13 less, according to the most recent federal census, and who has no
5-14 more than 200 students annually, shall be regulated by the agency
5-15 as a school. An instructor described by this subdivision shall
5-16 submit a school application or renewal form plus all required
5-17 documentation and information to the agency. The commissioner may
5-18 waive initial school fees, annual school renewal fees, or
5-19 director's or administrative staff member's fees. An instructor
5-20 described by this subdivision is not exempt from licensing
5-21 requirements or fees.
5-22 (3) The commissioner shall periodically review and
5-23 recommend adjustments in the level of fees to the board and
5-24 legislature.
5-25 (4) The fee for an investigation at a school to
6-1 resolve a complaint filed against the school shall be set by the
6-2 commissioner and approved by the board. The complaint
6-3 investigation fee may be charged only if:
6-4 (A) the complaint could not have been resolved
6-5 solely by telephone or written correspondence;
6-6 (B) a representative of the agency visited the
6-7 school as a part of the complaint resolution process; and
6-8 (C) the school is found to be at fault.
6-9 (5) The agency shall print and supply serially
6-10 numbered uniform certificates of course completion to owners or
6-11 primary consignees of courses approved under this Act. The agency
6-12 may charge a fee of $1 for each certificate. An owner or consignee
6-13 may not charge an operator a fee in excess of the fee paid to the
6-14 agency for a certificate.
6-15 (6) The commissioner, with approval of the board, may
6-16 increase any fee authorized under this subsection at a rate that
6-17 does not exceed the increase in the Consumer Price Index for All
6-18 Urban Consumers published by the Department of Labor. Fees under
6-19 this subsection do not have to be increased annually.
6-20 (7) Fees collected under this subsection shall be
6-21 deposited in the state treasury in a special account in the General
6-22 Revenue Fund. Money in the account may be appropriated only for
6-23 the administration of this Act and Section 143A, Uniform Act
6-24 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
6-25 Statutes).
7-1 (d)(1) The commissioner, on review of an application for a
7-2 driver training school license that is submitted in accordance with
7-3 this Act and that meets the requirements of this Act, shall issue a
7-4 driver training school license to the applicant. A driver training
7-5 school license shall be in a form recommended by the commissioner
7-6 and approved by the board and shall show in a clear and conspicuous
7-7 manner at least the following:
7-8 (A) the date of issuance, effective date, and
7-9 term of approval;
7-10 (B) the name and address of the school;
7-11 (C) the authority for approval and conditions of
7-12 approval;
7-13 (D) the signature of the commissioner; and
7-14 (E) any other fair and reasonable
7-15 representations that are consistent with this Act and considered
7-16 necessary by the commissioner.
7-17 (2) The term for which a driver training school
7-18 license is issued may not exceed one year.
7-19 (3)(A) A driver training school license issued to an
7-20 owner of the applicant school is nontransferable and is the
7-21 property of the state. In the event of a change in ownership of
7-22 the school, a new owner shall, at least 30 days before the date of
7-23 the change in ownership, apply for a new driver training school
7-24 license. Instead of the fees required by Subsection (b) of this
7-25 section, the fee for a new license required under this subdivision
8-1 is $500, plus $200 for each branch location, if the purchasing
8-2 entity is substantially similar to the transferring entity and
8-3 there is no significant change in the management or control of the
8-4 school.
8-5 (B) The commissioner is not required to
8-6 reinspect a school or a branch location after a change of its
8-7 ownership.
8-8 (4) At least 30 days before the expiration of a driver
8-9 training school license, the school shall forward to the
8-10 commissioner an application for renewal. The commissioner may
8-11 reexamine the school premises and shall renew or cancel the
8-12 school's driver training school license. If a school fails to file
8-13 a complete application for renewal at least 30 days before the
8-14 expiration date of the driver training school license, the school
8-15 shall pay as a condition of renewal and in addition to any annual
8-16 renewal fee a late renewal fee in an amount established by board
8-17 rule of at least $100, subject to Subsection (b) of this section.
8-18 (5) The commissioner shall visit a school and
8-19 reexamine the school for compliance with the criteria adopted under
8-20 this Act <not later than three months after the date a school
8-21 begins operation or after a change in ownership of a school>.
8-22 (g) Before a driver training school license may be issued
8-23 under this Act, a bond shall be provided by the school for the
8-24 period for which the license is to be issued, and the obligation of
8-25 the bond shall be that neither a provision of this Act nor any rule
9-1 adopted under this Act shall be violated by the school or any of
9-2 its officers, agents, or employees. A driver training school that
9-3 teaches driver education shall submit a bond in the amount of
9-4 $10,000 for its primary driver training school and $5,000 for each
9-5 branch location of the school. All other schools shall submit a
9-6 bond in the amount of $5,000. A bond must be a corporate surety
9-7 bond issued by a company authorized to do business in the state, be
9-8 payable to the state, and be used only for payment of a refund due
9-9 to a student or potential student. The bond shall be filed with
9-10 the commissioner and shall be in such form as shall be approved by
9-11 the commissioner. Posting of these bond amounts shall satisfy the
9-12 requirements for financial stability for schools under this Act.
9-13 SECTION 6. This Act takes effect September 1, 1993. The
9-14 change in law made by this Act applies only to an application for
9-15 an original or the renewal of a driver training school license that
9-16 is made on or after that date. An application for an original or
9-17 the renewal of a driver training school license made before the
9-18 effective date of this Act is covered by the law in effect when the
9-19 application was filed, and the former law is continued in effect
9-20 for this purpose.
9-21 SECTION 7. The importance of this legislation and the
9-22 crowded condition of the calendars in both houses create an
9-23 emergency and an imperative public necessity that the
9-24 constitutional rule requiring bills to be read on three several
9-25 days in each house be suspended, and this rule is hereby suspended.