By: Whitmire S.B. No. 853
73R4562 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to driver and traffic safety education.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3, Texas Driver and Traffic Safety
1-5 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
1-6 is amended by amending Subdivisions (3), (5), and (7) and adding
1-7 Subdivisions (16) and (17) to read as follows:
1-8 (3) "Commissioner" means the commissioner of education
1-9 or a person knowledgeable in the administration of regulating
1-10 driver training schools and driving safety schools and designated
1-11 by the commissioner to administer this Act.
1-12 (5) "Driver training school" <or "school"> means any
1-13 enterprise that maintains a place of business or solicits business
1-14 in the state, that is operated by an individual, association,
1-15 partnership, or corporation, for the education and training of
1-16 persons, at a primary location or extension, in driver education<,
1-17 driving safety, or any instructor development program, and> that is
1-18 not specifically exempted by this Act.
1-19 (7) "Extension" means an entity that geographically
1-20 extends the educational resources of a driving safety school by
1-21 offering a driving safety course in a location other than the main
1-22 business location of the school. An extension may use multiple
1-23 locations to teach a driving safety course if each location is
1-24 approved by the parent driving safety school and the agency. <A
2-1 driver education course may not be conducted at an extension.> An
2-2 extension of an extension is not permitted.
2-3 (16) "Driving safety school" means any enterprise not
2-4 specifically exempted by this Act that maintains a place of
2-5 business or solicits business in the state, that is operated by an
2-6 individual, association, partnership, or corporation, and that
2-7 provides education and training of persons in driving safety or any
2-8 instructor development program, at a primary location or extension.
2-9 (17) "School" means a driver training school or a
2-10 driving safety school.
2-11 SECTION 2. Section 6(a), Texas Driver and Traffic Safety
2-12 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
2-13 is amended to read as follows:
2-14 (a) The commissioner shall carry out the policies of this
2-15 Act, enforce rules adopted by the board, and certify those schools
2-16 meeting the requirements for a driver training school license or a
2-17 driving safety school license.
2-18 SECTION 3. Section 8, Texas Driver and Traffic Safety
2-19 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
2-20 is amended to read as follows:
2-21 Sec. 8. Competitive bidding; advertising. The board may not
2-22 adopt rules to restrict competitive bidding or advertising by a
2-23 driver training school or a driving safety school except to
2-24 prohibit false, misleading, or deceptive competitive bidding or
2-25 advertising practices. Specifically, no rule may restrict:
2-26 (1) the use of an advertising medium;
2-27 (2) the outside dimensions of a printed advertisement
3-1 or outdoor display;
3-2 (3) the duration of an advertisement; or
3-3 (4) advertisement under a trade name.
3-4 SECTION 4. Section 9, Texas Driver and Traffic Safety
3-5 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
3-6 is amended to read as follows:
3-7 Sec. 9. Prohibitions. A person may not:
3-8 (1) operate a driver training school without a driver
3-9 training school license or a driving safety school without a
3-10 driving safety school license issued by the commissioner;
3-11 (2) utilize advertising designed to mislead or deceive
3-12 a prospective student;
3-13 (3) fail to notify the commissioner of the
3-14 discontinuance of the operation of any school within three working
3-15 days after cessation of classes and make available accurate records
3-16 as required by this Act;
3-17 (4) sell, trade, or transfer a uniform certificate of
3-18 completion to any person, school, or extension not authorized to
3-19 possess it;
3-20 (5) sell, trade, or transfer a uniform certificate of
3-21 completion to a student who has not successfully completed an
3-22 agency-approved, six-hour <eight-hour> driving safety course;
3-23 (6) negotiate any promissory instrument received as
3-24 payment of tuition or other charge before completion of 75 percent
3-25 of the course, except that before that time, the instrument may be
3-26 assigned to a purchaser who will be subject to all the defenses
3-27 available against the school named as payee;
4-1 (7) conduct any part of an agency-approved driver
4-2 education or driving safety course without an instructor who is
4-3 physically present in appropriate proximity to the student for the
4-4 type of instruction being given; or
4-5 (8) violate any provision of this Act.
4-6 SECTION 5. Section 11, Texas Driver and Traffic Safety
4-7 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
4-8 is amended to read as follows:
4-9 Sec. 11. Locations authorized for instruction. Driving
4-10 safety courses complying with Section 143A, Uniform Act Regulating
4-11 Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes),
4-12 may be taught at an extension or in a driving safety <driver
4-13 training> school if the entity is approved by the agency.
4-14 Instructor preparation courses may be conducted at a course owner's
4-15 facilities. All other driver training courses must be conducted in
4-16 agency-approved schools.
4-17 SECTION 6. Section 12, Texas Driver and Traffic Safety
4-18 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
4-19 is amended to read as follows:
4-20 Sec. 12. Application for <driver training> school license.
4-21 (a) To operate or do business in this state, a school must make
4-22 written application to the commissioner for a <driver training
4-23 school> license. The application must be verified, be in the form
4-24 prescribed by the board, and include all information required. A
4-25 school that offers driving safety courses shall obtain approval
4-26 from the agency for any extension.
4-27 (b) A school may not maintain, advertise, solicit for, or
5-1 conduct any course of instruction in this state before the later
5-2 of:
5-3 (1) the 30th day after the date the school submits all
5-4 required documentation, information, and fees and a surety bond for
5-5 a <driver training school> license; or
5-6 (2) the date the school receives a <driver training
5-7 school> license from the commissioner.
5-8 (c) Any contract entered into with any person for a course
5-9 of instruction by or on behalf of any person operating any school
5-10 to which a <driver training school> license has not been issued
5-11 under this Act is unenforceable.
5-12 SECTION 7. Section 13, Texas Driver and Traffic Safety
5-13 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
5-14 is amended by amending Subsections (d), (e), (f), (g), and (h) and
5-15 adding Subsections (i) and (j) to read as follows:
5-16 (d)(1) The commissioner, on review of an application for a
5-17 <driver training> school license that is submitted in accordance
5-18 with this Act and that meets the requirements of this Act, shall
5-19 issue a <driver training> school license to the applicant. A
5-20 <driver training> school license shall be in a form recommended by
5-21 the commissioner and approved by the board and shall show in a
5-22 clear and conspicuous manner at least the following:
5-23 (A) the date of issuance, effective date, and
5-24 term of approval;
5-25 (B) the name and address of the school;
5-26 (C) the authority for approval and conditions of
5-27 approval;
6-1 (D) the signature of the commissioner; and
6-2 (E) any other fair and reasonable
6-3 representations that are consistent with this Act and considered
6-4 necessary by the commissioner.
6-5 (2) The term for which a <driver training> school
6-6 license is issued may not exceed one year.
6-7 (3) A <driver training> school license issued to an
6-8 owner of the applicant school is nontransferable and is the
6-9 property of the state. In the event of a change in ownership of
6-10 the school, a new owner shall, at least 30 days before the date of
6-11 the change in ownership, apply for a new <driver training> school
6-12 license.
6-13 (4) At least 30 days before the expiration of a
6-14 <driver training> school license, the school shall forward to the
6-15 commissioner an application for renewal. The commissioner may
6-16 reexamine the school premises and shall renew or cancel the
6-17 school's <driver training> school license. If a school fails to
6-18 file a complete application for renewal at least 30 days before the
6-19 expiration date of the <driver training> school license, the school
6-20 shall pay as a condition of renewal and in addition to any annual
6-21 renewal fee a late renewal fee in an amount established by board
6-22 rule of at least $100, subject to Subsection (b) of this section.
6-23 (5) The commissioner shall visit a school and
6-24 reexamine the school for compliance with the criteria adopted under
6-25 this Act not later than three months after the date a school begins
6-26 operation or after a change in ownership of a school.
6-27 (e)(1) If the commissioner determines the applicant for a
7-1 <driver training> school license to be unacceptable, the
7-2 commissioner shall state the reasons for denial, in writing, to the
7-3 applicant.
7-4 (2) Any applicant whose <driver training> school
7-5 license is denied has the right of appeal under Section 18 of this
7-6 Act.
7-7 (f)(1) The commissioner may revoke a <driver training>
7-8 school license or may place reasonable conditions on the continued
7-9 approval represented by the license. On revocation or imposition
7-10 of conditions on a <driver training> school license, the
7-11 commissioner shall notify the licensee, in writing, of the
7-12 impending action and state the grounds for the proposed action.
7-13 The commissioner may reexamine a school two or more times during
7-14 any year in which a notice relating to the school has been issued
7-15 or conditions have been imposed on the school under this
7-16 subsection.
7-17 (2) A <driver training> school license may be revoked
7-18 or be made conditional if the commissioner has reasonable cause to
7-19 believe that the school is guilty of a violation of this Act or any
7-20 rule adopted under this Act.
7-21 (g)(1) Before a <driver training> school license may be
7-22 issued under this Act, a bond shall be provided by the school for
7-23 the period for which the license is to be issued, and the
7-24 obligation of the bond shall be that neither a provision of this
7-25 Act nor any rule adopted under this Act shall be violated by the
7-26 school or any of its officers, agents, or employees.
7-27 (2) A school <that teaches driver education> shall
8-1 submit a bond in the amount of $50,000 <$10,000>. <All other
8-2 schools shall submit a bond in the amount of $5,000.> A bond must
8-3 be a corporate surety bond issued by a company authorized to do
8-4 business in the state, be payable to the state, and be used <only>
8-5 for payment of a refund due to a student or potential student. The
8-6 bond shall be filed with the commissioner and shall be in such form
8-7 as shall be approved by the commissioner.
8-8 (3) A school shall submit to the commissioner with the
8-9 school's application for a school license or for the renewal of a
8-10 school license a financial statement on the school that is prepared
8-11 in accordance with generally accepted accounting practices.
8-12 <Posting of these bond amounts shall satisfy the requirements for
8-13 financial stability for schools under this Act.>
8-14 (h)(1) As a condition for the granting of a <driver
8-15 training> school license, a school must maintain a cancellation and
8-16 settlement policy that provides a full refund of all money paid by
8-17 a student if:
8-18 (A) the student cancels the enrollment agreement
8-19 or contract before midnight of the third day, excluding Saturdays,
8-20 Sundays, and legal holidays, after the date the enrollment contract
8-21 is signed by the prospective student, unless the student has
8-22 completed the course and accepted a certificate of completion
8-23 during that period; or
8-24 (B) the enrollment of the student was procured
8-25 as a result of any misrepresentation in advertising, promotional
8-26 materials of the school, or representation made by an owner or
8-27 employee of the school.
9-1 (2) As <Unless only driving safety courses are
9-2 proposed to be provided, as> a condition for granting a <driver
9-3 training> school license, a school shall maintain a policy for the
9-4 refund of the unused portion of tuition, fees, and other charges if
9-5 a student, after expiration of the cancellation period described by
9-6 Subdivision (1) of this subsection, fails to enter the course,
9-7 withdraws, or is discontinued from the course at any time before
9-8 completion, and the policy must provide that:
9-9 (A) refunds are based on the period of
9-10 enrollment computed on the basis of course time expressed in clock
9-11 hours;
9-12 (B) the effective date of the termination for
9-13 refund purposes is the earliest of the following:
9-14 (i) the last day of attendance, if the
9-15 student's enrollment is terminated by the school;
9-16 (ii) the date of receipt of written notice
9-17 from the student; or
9-18 (iii) the 10th school day following the
9-19 last day of attendance;
9-20 (C) if tuition is collected in advance of
9-21 entrance and if, after expiration of the cancellation period
9-22 described by Subdivision (1) of this subsection, a student does not
9-23 enter the school, terminates enrollment, or withdraws, the school
9-24 may retain up to $50 as administrative expenses and, from the
9-25 remainder, shall refund that portion of the classroom tuition and
9-26 fees and behind-the-wheel tuition and fees for services not
9-27 previously received by the student;
10-1 (D) refunds of items of extra expense to the
10-2 student, including instructional supplies, books, laboratory fees,
10-3 service charges, rentals, deposits, and all other such ancillary
10-4 miscellaneous charges, will be made within 30 days after the
10-5 effective date of enrollment termination, if these items are
10-6 separately stated and shown in the data furnished the student
10-7 before enrollment; and
10-8 (E) refunds will be completed within 30 days
10-9 after the effective date of enrollment termination.
10-10 (3) If the course of instruction is discontinued by
10-11 the school, preventing a student from completing the course, all
10-12 tuition and fees paid are then due and refundable.
10-13 (4) If a refund is not made within the period required
10-14 by this subsection, the school shall pay interest on the refund for
10-15 the interval beginning with the first day following the expiration
10-16 of the refund period and ending with the day immediately preceding
10-17 the date the refund is made. The commissioner annually shall
10-18 establish the rate of interest at a rate sufficient to provide a
10-19 deterrent to the retention of student funds. The agency may except
10-20 a school from the payment of the interest if the school makes a
10-21 good-faith effort to refund tuition but is unable to locate the
10-22 student to whom the refund is owed. The school shall provide on
10-23 request of the agency documentation of the effort to locate a
10-24 student.
10-25 (i) An applicant for a driving safety school license must
10-26 include with the application a description of the manner in which
10-27 the applicant will control the issuance of state certificates of
11-1 course completion.
11-2 (j) As a condition of the granting of a school license, a
11-3 school must agree to submit to a performance audit when an audit is
11-4 requested by the commissioner and agree to bear the cost of the
11-5 audit. An audit under this subsection shall be performed by an
11-6 independent auditor designated by the commissioner.
11-7 SECTION 8. Chapter 173, Acts of the 47th Legislature,
11-8 Regular Session, 1941 (Article 6687b, Vernon's Texas Civil
11-9 Statutes), is amended by adding Section 4C to read as follows:
11-10 Sec. 4C. COURSE REQUIRED FOR ORIGINAL DRIVER'S LICENSE. The
11-11 department may not issue an original driver's license to any
11-12 applicant who has not successfully completed:
11-13 (1) the approved driver training course referred to in
11-14 Section 7 of this Act; or
11-15 (2) a driving safety course approved by the Central
11-16 Education Agency under the Texas Driver and Traffic Safety
11-17 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)
11-18 and its subsequent amendments.
11-19 SECTION 9. Section 10(c), Chapter 173, Acts of the 47th
11-20 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
11-21 Civil Statutes), is amended to read as follows:
11-22 (c) The Director may certify and set standards for
11-23 certification of certain employers, governmental agencies, and
11-24 other appropriate organizations to train and test for the ability
11-25 to operate certain types or general classes of vehicles. The
11-26 Department shall set standards for the training and testing of
11-27 applicants. The Director, in issuing the driver's licenses for
12-1 certain types or general classes of vehicles, may waive a driving
12-2 test for an applicant if the applicant has successfully completed
12-3 and passed the approved driver training course referred to in
12-4 Section 7 of this Act or a driving safety course approved by the
12-5 Central Education Agency under the Texas Driver and Traffic Safety
12-6 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)
12-7 and subsequent amendments to that Act <and testing by the certified
12-8 entity>.
12-9 SECTION 10. (a) This Act takes effect September 1, 1993.
12-10 (b) The changes in law made by Sections 1-7 of this Act
12-11 apply only to the requirements for licensure and to the operation
12-12 of a driving safety school or a driver training school on or after
12-13 September 1, 1993. A driving safety school or a driver training
12-14 school that was teaching a driving safety course on August 31,
12-15 1993, may not continue to teach the course unless on or before
12-16 January 1, 1994, the school applies for a driving safety school
12-17 license under the Texas Driver and Traffic Safety Education Act
12-18 (Article 4413(29c), Vernon's Texas Civil Statutes), as amended by
12-19 this Act. A driving safety school or a driver training school that
12-20 applies for a driving safety school license on or before January 1,
12-21 1994, may continue to operate during the period that the
12-22 application is pending.
12-23 (c) The changes in law made by Sections 8 and 9 of this Act
12-24 apply only to a person who applies for an original driver's license
12-25 on or after September 1, 1993.
12-26 SECTION 11. The importance of this legislation and the
12-27 crowded condition of the calendars in both houses create an
13-1 emergency and an imperative public necessity that the
13-2 constitutional rule requiring bills to be read on three several
13-3 days in each house be suspended, and this rule is hereby suspended.