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 school by offering a driving
    1-9  safety course or a driver education course in a location other than
   1-10  the main business location of the school.  An extension may use
   1-11  multiple locations to teach a driving safety course or a driver
   1-12  education course if each location is approved by the parent school
   1-13  and the agency.  <A driver education course may not be conducted at
   1-14  an extension.>  An extension of an extension is not permitted.
   1-15        SECTION 2.  Section 11, 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. 11.  LOCATIONS AUTHORIZED FOR INSTRUCTION.  Driving
   1-19  safety courses complying with Section 143A, Uniform Act Regulating
   1-20  Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes),
   1-21  and driver education courses may be taught at an extension or in a
   1-22  driver training school if the entity is approved by the agency.
   1-23  Instructor preparation courses may be conducted at a course owner's
    2-1  facilities.  All other driver training courses must be conducted in
    2-2  agency-approved schools.
    2-3        SECTION 3.  Section 13(g), Texas Driver and Traffic Safety
    2-4  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
    2-5  is amended to read as follows:
    2-6        (g)  Before a driver training school license may be issued
    2-7  under this Act, a bond shall be provided by the school for the
    2-8  period for which the license is to be issued, and the obligation of
    2-9  the bond shall be that neither a provision of this Act nor any rule
   2-10  adopted under this Act shall be violated by the school or any of
   2-11  its officers, agents, or employees.  A school that teaches driver
   2-12  education shall submit a bond in the amount of $10,000 for each
   2-13  location, but the total bond amounts for a school with multiple
   2-14  locations shall not exceed $25,000.  All other schools shall submit
   2-15  a bond in the amount of $5,000.  A bond must be a corporate surety
   2-16  bond issued by a company authorized to do business in the state, be
   2-17  payable to the state, and be used only for payment of a refund due
   2-18  to a student or potential student.  The bond shall be filed with
   2-19  the commissioner and shall be in such form as shall be approved by
   2-20  the commissioner.  Posting of these bond amounts shall satisfy the
   2-21  requirements for financial stability for schools under this Act.
   2-22        SECTION 4.  This Act takes effect September 1, 1993.  The
   2-23  change in law made by this Act applies only to an application for
   2-24  an original or the renewal of a driver training school license that
   2-25  is made on or after that date.  An application for an original or
    3-1  the renewal of a driver training school license made before the
    3-2  effective date of this Act is covered by the law in effect when the
    3-3  application was filed, and the former law is continued in effect
    3-4  for this purpose.
    3-5        SECTION 5.  The importance of this legislation and the
    3-6  crowded condition of the calendars in both houses create an
    3-7  emergency   and   an   imperative   public   necessity   that   the
    3-8  constitutional rule requiring bills to be read on three several
    3-9  days in each house be suspended, and this rule is hereby suspended.