By: Parker S.B. No. 1371
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation and operation of proprietary schools.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 32.61, Education Code, is amended to read
1-4 as follows:
1-5 Sec. 32.61. Prohibitions. No person shall:
1-6 (1) operate a school without a certificate of approval
1-7 issued by the Administrator;
1-8 (2) solicit prospective students without being bonded
1-9 as required by this Chapter;
1-10 (3) accept contracts or enrollment applications from a
1-11 representative who is not bonded as required by this Chapter;
1-12 (4) utilize advertising designed to mislead or deceive
1-13 prospective students;
1-14 (5) fail to notify the Administrator of the
1-15 discontinuance of the operation of any school within 72 hours of
1-16 cessation of classes and make available accurate records as
1-17 required by this Chapter;
1-18 (6) fail to secure and file within 30 days an
1-19 increased bond as required by this Chapter;
1-20 (7) negotiate any promissory instrument received as
1-21 payment of tuition or other charge prior to completion of 75
1-22 percent of the course, provided that prior to such time, the
1-23 instrument may be transferred by assignment to a purchaser who
2-1 shall be subject to all the defenses available against the school
2-2 named as payee;
2-3 (8) fail to provide financial statements or other
2-4 documentary evidence of school financial standing when so requested
2-5 by the Administrator, provided that all copies of such documents
2-6 shall be promptly returned to the school following inspection and
2-7 thereafter made readily available for such further review as may be
2-8 required by the Administrator;
2-9 (9) violate any provision of this Chapter.
2-10 SECTION 2. Section 32.34, Education Code, is amended by
2-11 adding Subsection (g) to read as follows:
2-12 (g) Except as provided in Subsection (f) of this section, a
2-13 school is not subject to on-site visits by the administrator more
2-14 often than once every three years unless during any three-year
2-15 period the school has substantially violated the provisions of this
2-16 chapter or applicable substantive rules and regulations of the
2-17 Central Education Agency. The administrator shall provide the
2-18 school or its owner at least 48 hours advance notice of any on-site
2-19 visit.
2-20 SECTION 3. Subsection (a), Section 32.71, Education Code, is
2-21 amended to read as follows:
2-22 (a) Certificate and registration fees, except those charged
2-23 pursuant to Subsection (d) of this section, shall be collected by
2-24 the Administrator and deposited with the State Treasurer according
2-25 to<. Each fee shall be in an amount set by the Administrator and
3-1 approved by the State Board of Education in an amount not to exceed
3-2 150 percent of each fee in> the following schedule:
3-3 (1) the initial fee for a school is $2,000;
3-4 (2) the first annual renewal fee and each subsequent
3-5 renewal fee for a school shall be the greater of $500 or the amount
3-6 <is> determined by applying a percentage, not to exceed 0.1 <0.3>
3-7 percent, to the gross tuition and fees, excluding refunds as
3-8 provided by Section 32.39 of this code, of the school;
3-9 (3) the initial registration fee for a representative
3-10 is $60;
3-11 (4) the annual renewal fee for a representative is
3-12 $30;
3-13 (5) the fee for a change of a name of a school or
3-14 owner is $100;
3-15 (6) the fee for a change of an address of a school is
3-16 $180;
3-17 (7) the fee for a change in the name or address of a
3-18 representative or a change in the name or address of a school that
3-19 causes the reissuance of a representative permit is $10;
3-20 (8) the application fee for an additional course is
3-21 $150, except for seminar and workshop courses, for which the fee is
3-22 $25;
3-23 (9) the application fee for a director, administrative
3-24 staff member, or instructor is $15;
3-25 (10) the application fee for the authority to grant
4-1 degrees is $2,000;
4-2 (11) the application fee for an additional degree
4-3 course is $250; and
4-4 (12) the fee for an inspection required by rule of the
4-5 State Board of Education of classroom facilities that are separate
4-6 from the main campus is $250.
4-7 SECTION 4. Subsections (c) and (d), Section 32.91, Education
4-8 Code, are amended to read as follows:
4-9 (c) Beginning on January 1, 1990, the board shall collect
4-10 the fee for two years. If on January 1, 1993, or any subsequent
4-11 odd-numbered year the amount in the fund is less than $200,000, the
4-12 board shall collect a fee during the ensuing two-year period, in no
4-13 more than quarterly installments, <that year> by applying a
4-14 percentage to each school's annual renewal fee at a rate that will
4-15 bring the balance of the fund to $250,000.
4-16 (d) The state treasurer shall invest the fund in the same
4-17 manner as other state funds. Sufficient funds from and including
4-18 all interest earned on the investment of the tuition protection
4-19 fund shall be appropriated to the Central Education Agency and used
4-20 solely <administration> for the purpose outlined in this section.
4-21 SECTION 5. Chapter 2, Education Code, is amended by adding
4-22 Section 2.14 to read as follows:
4-23 Sec. 2.14. TRANSFER OF ADMINISTRATION TO DEPARTMENT OF
4-24 LICENSING AND REGULATION. (a) The Central Education Agency and
4-25 the commissioner of licensing and regulation shall enter into an
5-1 interagency contract for the transfer of the regulation of
5-2 proprietary schools under Chapter 32 of this code including driver
5-3 training schools and driving safety courses and of veterans'
5-4 educational assistance programs from the Central Education Agency
5-5 to the Texas Department of Licensing and Regulation. The transfer
5-6 shall take effect on a date specified in the contract, but not
5-7 later than February 1, 1994. On the effective date of the
5-8 transfer:
5-9 (1) all powers, duties, rights, and obligations of the
5-10 Central Education Agency relating to the regulation of such
5-11 proprietary schools or of veterans' educational assistance programs
5-12 are transferred to the Texas Department of Licensing and
5-13 Regulation;
5-14 (2) all assets, liabilities, equipment, data,
5-15 documents, facilities, and other items of the Central Education
5-16 Agency relating to the regulation of such proprietary schools or of
5-17 veterans' educational assistance programs are transferred to the
5-18 Texas Higher Education Coordinating Board; and
5-19 (3) any appropriation to the Central Education Agency
5-20 relating to the regulation of such proprietary schools or of
5-21 veterans' educational assistance programs is transferred to the
5-22 Texas Department of Licensing and Regulation.
5-23 (b) The commissioner of licensing and regulation shall
5-24 publish the contract in the Texas Register.
5-25 (c) The officers and employees of the Central Education
6-1 Agency shall cooperate fully with the reorganization.
6-2 (d) This section does not affect:
6-3 (1) the validity of any action taken by the Central
6-4 Education Agency under Chapter 32 of this code before the effective
6-5 date of the transfer described in Subsection (a) of this section;
6-6 or
6-7 (2) a civil or administrative proceeding completed
6-8 before the effective date of the transfer.
6-9 (e) This section does not affect the validity of a civil or
6-10 administrative proceeding under Chapter 32 of this code, including
6-11 certification or rulemaking, in progress on the effective date of
6-12 the transfer described in Subsection (a) of this section. A civil
6-13 or administrative proceeding under Chapter 32 of this code that is
6-14 in progress on the effective date of the transfer described in
6-15 Subsection (a) of this section continues as if it had been
6-16 initiated by the Texas Department of Licensing and Regulation under
6-17 the law in effect on that date.
6-18 (f) All forms, rules, and procedures adopted by the Central
6-19 Education Agency for the administration and enforcement of Chapter
6-20 32 of this code and in effect on the effective date of the transfer
6-21 described in Subsection (a) of this section remain in effect on or
6-22 after that date as if adopted by the Texas Department of Licensing
6-23 and Regulation until amended, repealed, withdrawn, or otherwise
6-24 superseded by the Texas Department of Licensing and Regulation. A
6-25 certificate of approval issued under Chapter 32 of this code and in
7-1 effect on the effective date of the transfer described in
7-2 Subsection (a) of this section remains in effect according to its
7-3 terms as if issued by the Texas Department of Licensing and
7-4 Regulation until the certificate expires or is revoked or
7-5 surrendered.
7-6 (g) In this section, "veterans' educational assistance
7-7 program" means a program under 10 U.S.C. Chapter 106 or 38 U.S.C.
7-8 Chapter 30, 32, 34, or 36.
7-9 SECTION 6. Section 32.11, Education Code, is amended by
7-10 amending Subdivision (5) and adding Subdivisions (10) and (11) to
7-11 read as follows:
7-12 (5) "Administrator" means the commissioner of
7-13 licensing and regulation <State Commissioner of Education> or a
7-14 person, knowledgeable in the administration of regulating
7-15 proprietary schools, designated by the Commissioner to administer
7-16 the provisions of this chapter.
7-17 (10) "Central Education Agency" or "State Board of
7-18 Education" means the Texas Department of Licensing and Regulation.
7-19 (11) "Commissioner of Education" means the
7-20 commissioner of licensing and regulation.
7-21 SECTION 7. Subchapter C, Chapter 61, Education Code, is
7-22 amended by adding Section 61.083 to read as follows:
7-23 Sec. 61.083. APPROVAL OF VETERANS' EDUCATION COURSES. The
7-24 commissioner of licensing and regulation is designated to contract
7-25 with the United States Department of Veterans' Affairs for the
8-1 approval and supervision of courses offered by educational
8-2 institutions or training establishments under the provisions of 10
8-3 U.S.C. Chapter 106 or 38 U.S.C. Chapter 30, 32, 34, or 36, and
8-4 applicable federal regulations.
8-5 SECTION 8. The Texas Driver and Safety Education Act
8-6 (Article 4413(29c), Vernon's Texas Civil Statutes) is amended by
8-7 adding Section 28 to read as follows:
8-8 Sec. 28. TRANSFER OF ADMINISTRATION TO LICENSING AND
8-9 REGULATION. (a) The Central Education Agency and the commissioner
8-10 of licensing and regulation shall enter into an interagency
8-11 contract for the transfer of the regulation of proprietary schools
8-12 including driver training schools and driving safety courses and of
8-13 veterans' educational assistance programs from the Central
8-14 Education Agency to the Texas Department of Licensing and
8-15 Regulation. The transfer shall take effect on a date specified in
8-16 the contract, but not later than February 1, 1994. On the
8-17 effective date of the transfer:
8-18 (1) all powers, duties, rights, and obligations of the
8-19 Central Education Agency relating to the regulation of proprietary
8-20 schools including driver training schools and driving safety
8-21 courses and of veterans' educational assistance programs are
8-22 transferred to the Texas Department of Licensing and Regulation;
8-23 (2) all assets, liabilities, equipment, data,
8-24 documents, facilities, and other items of the Central Education
8-25 Agency relating to the regulation of proprietary schools including
9-1 driver training schools and driving safety courses and of veterans'
9-2 educational assistance programs are transferred to the Texas
9-3 Department of Licensing and Regulation; and
9-4 (3) any appropriation to the Central Education Agency
9-5 relating to the regulation of proprietary schools including driver
9-6 training schools and driving safety courses and of veterans'
9-7 educational assistance programs are transferred to the Texas
9-8 Department of Licensing and Regulation.
9-9 (b) The commissioner of licensing and regulation shall
9-10 publish the contract in the Texas Register.
9-11 (c) The officers and employees of the Central Education
9-12 Agency shall cooperate fully with the reorganization.
9-13 (d) Until the effective date of a transfer under Subsection
9-14 (a) of this section, a reference in this article to the
9-15 commissioner of licensing and regulation is considered to be a
9-16 reference to the commissioner of education, and a reference to the
9-17 Texas Department of Licensing and Regulation is considered to be a
9-18 reference to the Central Education Agency.
9-19 (e) This section does not affect:
9-20 (1) the validity of any action taken by the Central
9-21 Education Agency under this Act before the effective date of the
9-22 transfer described in Subsection (a) of this section; or
9-23 (2) a civil or administrative proceeding completed
9-24 before the effective date of the transfer.
9-25 (f) This section does not affect the validity of a civil or
10-1 administrative proceeding under this Act, including certification
10-2 or rulemaking, in progress on the effective date of the transfer
10-3 described in Subsection (a) of this section. A civil or
10-4 administrative proceeding under this Act that is in progress on the
10-5 effective date of the transfer described in Subsection (a) of this
10-6 section continues as if it had been initiated by the Texas
10-7 Department of Licensing and Regulation under the law in effect on
10-8 that date.
10-9 (g) All forms, rules, and procedures adopted by the Central
10-10 Education Agency for the administration and enforcement of this Act
10-11 and in effect on the effective date of the transfer described in
10-12 Subsection (a) of this section remain in effect on or after that
10-13 date as if adopted by the Texas Department of Licensing and
10-14 Regulation until amended, repealed, withdrawn, or otherwise
10-15 superseded by the Texas Department of Licensing and Regulation. A
10-16 certificate of approval issued under this Act and in effect on the
10-17 effective date of the transfer described in Subsection (a) of this
10-18 section remains in effect according to its terms as if issued by
10-19 the Texas Department of Licensing and Regulation until the
10-20 certificate expires or is revoked or surrendered.
10-21 SECTION 9. Section 3, Texas Driver and Traffic Safety
10-22 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
10-23 is amended by amending Subdivisions (1), (2), and (3) to read as
10-24 follows:
10-25 (1) "Agency" means the Texas Department of Licensing
11-1 and Regulation <Central Education Agency>, acting directly or
11-2 through its authorized officers and agents.
11-3 (2) "Commission" <"Board"> means the Texas Commission
11-4 of Licensing and Regulation <State Board of Education>.
11-5 (3) "Commissioner" means the commissioner of licensing
11-6 and regulation <education> or a person knowledgeable in the
11-7 administration of regulating driver training schools and designated
11-8 by the commissioner to administer this Act.
11-9 SECTION 10. The importance of this legislation and the
11-10 crowded condition of the calendars in both houses create an
11-11 emergency and an imperative public necessity that the
11-12 constitutional rule requiring bills to be read on three several
11-13 days in each house be suspended, and this rule is hereby suspended,
11-14 and that this Act take effect and be in force from and after its
11-15 passage, and it is so enacted.