S.B. No. 1371
12-1 COMMITTEE AMENDMENT NO. 1
12-2 Amend SB 1371 by striking all below the enacting clause and
12-3 substituting the following:
12-4 PART 1. TEXAS PROPRIETARY SCHOOL ACT
12-5 SECTION 1.01. Section 32.02, Education Code, is amended to
12-6 read as follows:
12-7 Sec. 32.02. Purpose and Objectives. The aim in adopting
12-8 this Chapter is to provide licensing <certification> and regulation
12-9 of proprietary schools in Texas.
12-10 SECTION 1.02. Section 32.11, Education Code, is amended by
12-11 amending Subdivisions (1), (5), and (6) and adding Subdivisions
12-12 (10), (11), and (12) to read as follows:
12-13 (1) "Proprietary School," referred to as "school,"
12-14 means any business enterprise operated for a profit, or on a
12-15 nonprofit basis, which maintains a place of business within the
12-16 State of Texas, or solicits business within the State of Texas, and
12-17 which is not specifically exempted by the provisions of this
12-18 Chapter and;
12-19 (A) which offers or maintains a program <course
12-20 or courses> of instruction <or study>; or
12-21 (B) at which place of business such a program
12-22 <course or courses> of instruction <or study> is available through
12-23 classroom instruction or by correspondence, or both, to a person or
12-24 persons for the purpose of training or preparing the person for a
12-25 field of endeavor in a business, trade, technical, or industrial
12-26 occupation, or for avocational or personal improvement, except as
12-27 hereinafter excluded.
13-1 (5) "Administrator" means the commissioner of higher
13-2 education <State Commissioner of Education> or a person,
13-3 knowledgeable in the administration of regulating proprietary
13-4 schools, designated by the Commissioner to administer the
13-5 provisions of this chapter.
13-6 (6) "Notice to the school" means written
13-7 correspondence sent to the address of record for legal service
13-8 contained in the application for a license to operate <certificate
13-9 of approval>. "Date of Notice" means the date the notice is mailed
13-10 by the administrator.
13-11 (10) "Probation" means a limitation on the continued
13-12 approval of the license held by a school.
13-13 (11) "Central Education Agency" or "State Board of
13-14 Education" means the Texas Department of Licensing and Regulation.
13-15 (12) "Commissioner of Education" means the
13-16 commissioner of the Texas Department of Licensing and Regulation.
13-17 SECTION 1.03. Section 32.12, Education Code, is amended to
13-18 read as follows:
13-19 Sec. 32.12. EXEMPTIONS. (a) The following schools or
13-20 educational institutions are specifically exempt from the
13-21 provisions of this chapter and are not within the definition of
13-22 "proprietary school":
13-23 (1) a school or educational institution supported by
13-24 taxation from either a local or State source;
13-25 (2) nonprofit schools owned, controlled, operated, and
13-26 conducted by bona fide religious, denominational, or eleemosynary<,
13-27 or similar public> institutions exempt from property taxation under
14-1 the laws of this State, but such schools may choose to apply for a
14-2 license to operate <certificate of approval> hereunder, and upon
14-3 <approval and> issuance, shall be subject to the provisions of this
14-4 chapter as determined by the administrator;
14-5 (3) a school or training program which offers
14-6 instruction of purely avocational or recreational subjects as
14-7 determined by the administrator;
14-8 (4) a program <course or courses> of instruction <or
14-9 study> sponsored by an employer for the training and preparation of
14-10 its own employees, and for which no tuition fee is charged to the
14-11 student;
14-12 (5) a program <course or courses> of <study or>
14-13 instruction sponsored by a recognized trade, business, or
14-14 professional organization for the instruction of the members of the
14-15 organization with a closed membership;
14-16 (6) private colleges or universities which award a
14-17 recognized baccalaureate, or higher degree, and which maintain and
14-18 operate educational programs for which a majority of the credits
14-19 given are transferable to a college, junior college, or university
14-20 supported entirely or partly by taxation from either a local or
14-21 State source;
14-22 (7) a school which is otherwise regulated and approved
14-23 under and pursuant to any other law of the State, except as
14-24 provided by Subsection (c) of this section;
14-25 (8) aviation schools or instructors approved by and
14-26 under the supervision of the Federal Aviation Administration;
14-27 (9) a school which offers intensive review courses
15-1 designed to prepare students for certified public accountancy
15-2 tests, <public accountancy tests,> law school aptitude tests, bar
15-3 examinations, or medical college admissions tests;
15-4 (10) schools <(b) Schools> offering a program <course
15-5 or courses> of special <study or> instruction financed <and/>or
15-6 subsidized by local, state or federal funds or any person, firm,
15-7 association, or agency other than the student involved, on a
15-8 contract basis and having a closed enrollment that applies <may
15-9 apply> to the Administrator for exemption <of such course or
15-10 courses from the provisions of this Chapter> and that <such course
15-11 or courses may be declared exempt by> the Administrator declares
15-12 exempt because the program is <where he finds the course or courses
15-13 to be> outside the purview of this Chapter<.>; or
15-14 (11) schools offering a specialized course of
15-15 instruction that does not prepare a person for a field of endeavor
15-16 in a business, trade, technical, or industrial occupation as
15-17 determined by the State Board of Education.
15-18 (b) <(c)> If a State agency that issues a license or other
15-19 authorization for the practice of an occupation elects not to
15-20 regulate or approve subject <course> hours that exceed the minimum
15-21 education requirements for the issuance of the license or other
15-22 authorization, the licensing agency shall enter into a memorandum
15-23 of understanding with the Central Education Agency for the
15-24 regulation of those excess subject <course> hours under this
15-25 chapter. Any course taught under a letter of approval or other
15-26 written authorization issued by the licensing agency before the
15-27 effective date of the memorandum is authorized under State law
16-1 until the program <course> is reviewed by the Central Education
16-2 Agency. The licensing agency may terminate the memorandum of
16-3 understanding on notice to the Central Education Agency.
16-4 SECTION 1.04. Section 32.21(b), Education Code, is amended
16-5 to read as follows:
16-6 (b) The Central Education Agency shall prepare a comparison
16-7 of the cost to a student of <courses of instruction or training>
16-8 programs at proprietary schools to the cost to a student of similar
16-9 <courses or> programs at schools that are exempt from this chapter
16-10 under Section 32.12 of this code.
16-11 SECTION 1.05. Effective immediately, Subchapter C, Chapter
16-12 32, Education Code, is amended by adding Section 32.211 to read as
16-13 follows:
16-14 Sec. 32.211. TRANSFER OF ADMINISTRATION TO TEXAS DEPARTMENT
16-15 OF LICENSING AND REGULATION. (a) The Central Education Agency and
16-16 the commissioner of the Texas Department of Licensing and
16-17 Regulation shall enter into an interagency contract for the
16-18 transfer of the regulation of proprietary schools from the Central
16-19 Education Agency to the Texas Department of Licensing and
16-20 Regulation. The transfer shall take effect on a date specified in
16-21 the contract, but not later than February 1, 1994. On the
16-22 effective date of the transfer:
16-23 (1) all powers, duties, rights, and obligations of the
16-24 Central Education Agency relating to the regulation of proprietary
16-25 schools are transferred to the Texas Department of Licensing and
16-26 Regulation;
16-27 (2) all assets, liabilities, equipment, data,
17-1 documents, facilities, and other items of the Central Education
17-2 Agency relating to the regulation of proprietary schools are
17-3 transferred to the Texas Department of Licensing and Regulation;
17-4 and
17-5 (3) any appropriation to the Central Education Agency
17-6 relating to the regulation of proprietary schools is transferred to
17-7 the Texas Department of Licensing and Regulation.
17-8 (b) The commissioner of Texas Department of Licensing and
17-9 Regulation shall publish the contract in the Texas Register.
17-10 (c) The officers and employees of the Central Education
17-11 Agency shall cooperate fully with the reorganization.
17-12 (d) Until the effective date of a transfer under Subsection
17-13 (a) of this section, a reference in this chapter to the
17-14 commissioner of higher education is considered to be a reference to
17-15 the commissioner of education, and a reference to the Texas
17-16 Department of Licensing and Regulation is considered to be a
17-17 reference to the Central Education Agency.
17-18 (e) This section does not affect:
17-19 (1) the validity of any action taken by the Central
17-20 Education Agency under this chapter before the effective date of
17-21 the transfer described in Subsection (a) of this section; or
17-22 (2) a civil or administrative proceeding completed
17-23 before the effective date of the transfer.
17-24 (f) This section does not affect the validity of a civil or
17-25 administrative proceeding under this chapter, including
17-26 certification or rulemaking, in progress on the effective date of
17-27 the transfer described in Subsection (a) of this section. A civil
18-1 or administrative proceeding under this chapter that is in progress
18-2 on the effective date of the transfer described in Subsection (a)
18-3 of this section continues as if it had been initiated by the Texas
18-4 Department of Licensing and Regulation under the law in effect on
18-5 that date.
18-6 (g) All forms, rules, and procedures adopted by the Central
18-7 Education Agency for the administration and enforcement of this
18-8 chapter and in effect on the effective date of the transfer
18-9 described in Subsection (a) of this section remain in effect on or
18-10 after that date as if adopted by the Texas Department of Licensing
18-11 and Regulation until amended, repealed, withdrawn, or otherwise
18-12 superseded by the Texas Department of Licensing and Regulation. A
18-13 certificate of approval issued under this chapter and in effect on
18-14 the effective date of the transfer described in Subsection (a) of
18-15 this section remains in effect according to its terms as if issued
18-16 by the Texas Department of Licensing and Regulation until the
18-17 certificate expires or is revoked or surrendered.
18-18 SECTION 1.06. Section 32.23(c), Education Code, is amended
18-19 to read as follows:
18-20 (c) The commission shall meet regularly in Austin once each
18-21 month during the months of March, July, and November at a time and
18-22 on a date designated by the chair <at 10:00 a.m. on the second
18-23 Tuesday of January, May, and September>, and shall conduct special
18-24 meetings at the call of the chair, the administrator, or upon the
18-25 written petition of at least four members of the commission.
18-26 SECTION 1.07. Section 32.24(a), Education Code, is amended
18-27 to read as follows:
19-1 (a) The administrator shall carry out the policies of this
19-2 chapter and enforce the rules and regulations adopted by the State
19-3 Board of Education. He shall also certify the names of those
19-4 schools meeting the requirements for a license to operate
19-5 <certificate of approval>.
19-6 SECTION 1.08. Section 32.31, Education Code, is amended to
19-7 read as follows:
19-8 Sec. 32.31. LICENSE TO OPERATE <CERTIFICATE OF APPROVAL>.
19-9 (a) A school may not maintain, advertise, solicit for, or conduct
19-10 any program <course> of instruction in Texas before the later of:
19-11 (1) the 30th day after the date the school applies for
19-12 a license to operate <certificate of approval> under this chapter;
19-13 or
19-14 (2) the date the school receives a license to operate
19-15 <certificate of approval> from the administrator.
19-16 (b) Any contract entered into with any person for a program
19-17 <course> of instruction after the effective date of this chapter by
19-18 or on behalf of any person operating any school to which a license
19-19 to operate <certificate of approval> has not been issued pursuant
19-20 to the provisions of this chapter, shall be unenforceable in any
19-21 action brought thereon.
19-22 SECTION 1.09. Section 32.32, Education Code, is amended to
19-23 read as follows:
19-24 Sec. 32.32. APPLICATION FOR License to Operate <Certificate
19-25 of Approval>. (a) Every proprietary school desiring to operate in
19-26 the State of Texas or do business in the State shall make written
19-27 application to the administrator for a license to operate
20-1 <certificate of approval>. Such application shall be verified, be
20-2 in such form as may be prescribed by the State Board of Education,
20-3 and shall furnish the administrator such information as he may
20-4 require. The application must include a statement of any final
20-5 convictions of the owners, school directors, recruiters,
20-6 instructional faculty, or other selected personnel of the school as
20-7 determined by the administrator. The administrator may obtain
20-8 criminal history records of school directors or instructional
20-9 faculty from any law enforcement agency, including the United
20-10 States Department of Justice, the Department of Public Safety of
20-11 the State of Texas, the Texas Department of Criminal Justice, or
20-12 the police department of a municipality. The administrator may
20-13 deny, revoke, or disapprove the application for, or existing
20-14 license, registration, or approval of a person who has been
20-15 convicted of, entered a plea of nolo contendere, or guilty to, or
20-16 received deferred adjudication for, a felony or misdemeanor offense
20-17 for which a refusal may be issued under Article 6252-13c, Vernon's
20-18 Texas Civil Statutes.
20-19 (b) The State Board of Education may adopt rules providing
20-20 for the issuance of various classes of licenses based on the number
20-21 of students attending the school. The license classifications may
20-22 allow for stricter regulation and greater frequency of inspection
20-23 of large schools, as defined by board rule, and for limited
20-24 regulation of small schools, as defined by board rule.
20-25 (c) The administrator may not use the word "approval" or a
20-26 variation of that term on the license of a school. The terminology
20-27 must be "licensed" to operate, or a variation of that phrase.
21-1 SECTION 1.10. Section 32.33, Education Code, is amended to
21-2 read as follows:
21-3 Sec. 32.33. Criteria. Except for a school or program
21-4 intended to prepare a student for a course, school, or program
21-5 listed in Section 32.331 of this code, the <The> administrator may
21-6 approve the application of such proprietary school when the school
21-7 is found, upon investigation at the premises of the school, to have
21-8 met the following criteria:
21-9 (a) The subjects <courses>, programs <curriculum>, and
21-10 instruction are of such quality, content, and length as may
21-11 reasonably and adequately achieve the stated objective for which
21-12 the subjects <courses>, programs, <curriculum> or instruction are
21-13 offered.
21-14 (b) There is in the school adequate space, equipment,
21-15 instructional material and instructor personnel to provide training
21-16 of good quality.
21-17 (c) Educational and experience qualifications of
21-18 directors, administrators and instructors are adequate.
21-19 (d) The school maintains a written record of the
21-20 previous education and training of the applicant student and
21-21 clearly indicates that appropriate credit has been given by the
21-22 school for previous education and training, with the new training
21-23 period shortened where warranted through use of appropriate skills
21-24 or achievement tests and the student so notified.
21-25 (e) A copy of the program <course> outline; schedule
21-26 of tuition, fees, refund policy, and other charges; regulations
21-27 pertaining to absence, grading policy, and rules of operation and
22-1 conduct; regulations pertaining to incomplete grades; the name,
22-2 mailing address, and telephone number of the Central Education
22-3 Agency for the purpose of directing complaints to the agency; the
22-4 current rates of job placement and employment of students issued a
22-5 certificate of completion; and notification of the availability of
22-6 the cost comparison information prepared under Section 32.21(b) of
22-7 this code through the Central Education Agency will be furnished
22-8 the student prior to enrollment.
22-9 (f) Except as provided by Section 32.40 of this code,
22-10 on completion of training, the student is given a certificate by
22-11 the school indicating the program <course> and that training was
22-12 satisfactorily completed.
22-13 (g) Adequate records as prescribed by the
22-14 administrator are kept to show attendance and progress or grades,
22-15 and satisfactory standards relating to attendance, progress and
22-16 conduct are enforced.
22-17 (h) The school complies with all local, city, county,
22-18 municipal, state and federal regulations<, such as fire, building
22-19 and sanitation codes>. The administrator may require such evidence
22-20 of compliance as is deemed necessary.
22-21 (i) The school is financially sound and capable of
22-22 fulfilling its commitments for training.
22-23 (j) The school's administrators, directors, owners,
22-24 and instructors are of good reputation and character.
22-25 (k) The school has, maintains and publishes in its
22-26 catalogue and enrollment contract, the proper policy for the refund
22-27 of the unused portion of tuition, fees and other charges in the
23-1 event the student enrolled by the school fails to take the program
23-2 <course> or withdraws or is discontinued therefrom at any time
23-3 prior to completion.
23-4 (l) The school does not utilize erroneous or
23-5 misleading advertising, either by actual statement, omission, or
23-6 intimation as determined by the State Board of Education.
23-7 (m) Such additional criteria as may be required by the
23-8 State Board of Education.
23-9 (n) The school does not use a name like or similar to
23-10 an existing tax supported school in the same area.
23-11 (o) The school furnishes to the Central Education
23-12 Agency the current rates of students who receive a certificate of
23-13 completion and of job placement and employment of students issued a
23-14 certificate of completion.
23-15 (p) The school furnishes to the Central Education
23-16 Agency for approval or disapproval student admission requirements
23-17 for each course or program offered by the school.
23-18 (q) The school furnishes to the Central Education
23-19 Agency for approval or disapproval the program <course> hour
23-20 lengths and curriculum content for each program <course> offered by
23-21 the school.
23-22 (r) The school does not owe a civil penalty under
23-23 Section 32.611 of this code.
23-24 SECTION 1.11. Subchapter D, Chapter 32, Education Code, is
23-25 amended by adding Section 32.331 to read as follows:
23-26 Sec. 32.331. TEST PREPARATION PROGRAMS FOR HIGHER EDUCATION
23-27 ENTRANCE; PROFESSIONAL AND OCCUPATIONAL LICENSING; AND SHORT
24-1 COURSES. Test preparation courses, programs, or schools intended
24-2 to prepare students for undergraduate, graduate, or postgraduate
24-3 higher education, professional licensing and occupational entrance
24-4 examinations, and short courses not exceeding 40 hours in length
24-5 may be licensed by the administrator on the administrator's
24-6 determination that the applicant has met the following criteria:
24-7 (1) the school must be educationally sufficient;
24-8 (2) instructors of the school must have the necessary
24-9 educational qualifications;
24-10 (3) the school must be fiscally sound and have the
24-11 necessary assets to offer the programs; and
24-12 (4) the school must comply with other rules and
24-13 regulations the administrator may prescribe.
24-14 SECTION 1.12. Sections 32.34(a)-(e), Education Code, are
24-15 amended to read as follows:
24-16 (a) The administrator, upon review of an application for a
24-17 license to operate <certificate of approval> duly submitted in
24-18 accordance with the provisions of Section 32.32 and meeting the
24-19 requirements of Section 32.33 of this code <chapter>, shall issue a
24-20 license to operate <certificate of approval> to the applicant
24-21 school. The license to operate <certificate of approval> shall be
24-22 in a form recommended by the commission and approved by the State
24-23 Board of Education and shall state in a clear and conspicuous
24-24 manner at least the following information:
24-25 (1) date of issuance, effective date, and term of
24-26 licensing <approval>;
24-27 (2) correct name and address of the school;
25-1 (3) authority for the license <approval> and
25-2 conditions of licensing <approval>, if any, referring specifically
25-3 to the <approved> catalogue or bulletin published by the school;
25-4 (4) signature of the administrator or such person as
25-5 may have been designated by him to administer the provisions of
25-6 this chapter; and
25-7 (5) any other fair and reasonable representations that
25-8 are consistent with this chapter and deemed necessary by the
25-9 administrator.
25-10 (b) The term for which a license to operate <certificate of
25-11 approval> shall be issued shall not exceed one year.
25-12 (c) The license to operate <certificate of approval> shall
25-13 be issued to the owner of the applicant school and shall be
25-14 nontransferable. In the event of a change in ownership of the
25-15 school, a new owner must, at least 60 <thirty (30)> days prior to
25-16 the change in ownership, apply for a new license to operate
25-17 <certificate of approval>.
25-18 (d) At least 60 <thirty (30)> days prior to expiration of a
25-19 license to operate <certificate of approval>, the school shall
25-20 forward to the administrator an application for renewal. The
25-21 administrator shall reexamine the school at the premises of the
25-22 school and either renew or cancel the school's license to operate
25-23 <certificate of approval>. If a school fails to file a complete
25-24 application for renewal at least 60 <thirty (30)> days before the
25-25 expiration date of the license to operate <certificate of
25-26 approval>, the school, as a condition of renewal, must pay, in
25-27 addition to the annual renewal fee, a late renewal fee in an amount
26-1 established by State Board of Education rule of at least $100.
26-2 (e) A school not yet in operation when its application for
26-3 license to operate <certificate of approval> is filed may not begin
26-4 operation until receipt of the license to operate <certificate of
26-5 approval>.
26-6 SECTION 1.13. Section 32.35, Education Code, is amended to
26-7 read as follows:
26-8 Sec. 32.35. Denial of License to Operate <Certificate of
26-9 Approval>. (a) If the administrator, upon review and
26-10 consideration of an application for license to operate <certificate
26-11 of approval>, shall determine the applicant to be unacceptable, the
26-12 administrator shall set forth the reasons for denial, in writing,
26-13 to the applicant.
26-14 (b) Any applicant whose application for a license to operate
26-15 <certificate of approval> is denied shall have the right of appeal
26-16 under Subchapter E of this chapter.
26-17 SECTION 1.14. Section 32.36, Education Code, is amended to
26-18 read as follows:
26-19 Sec. 32.36. DENIAL OF, LIMITATION ON, OR Revocation of
26-20 License to Operate <Certificate of Approval>. (a) The
26-21 Administrator may revoke an issued license to operate <certificate
26-22 of approval> or place reasonable conditions upon <the> continued
26-23 licensing <approval represented by the certificate>. Prior to
26-24 revocation or imposition of conditions upon a license to operate
26-25 <certificate of approval>, the Administrator shall notify the
26-26 holder of the license <certificate>, in writing, of the impending
26-27 action and set forth the grounds for the action. The Administrator
27-1 may reexamine a school two or more times during each year in which
27-2 a notice relating to the school has been issued or conditions have
27-3 been imposed on the school under this subsection.
27-4 (b) A license to operate <certificate of approval> may be
27-5 revoked or made conditional if the Administrator has reasonable
27-6 cause to believe that the school is guilty of a violation of this
27-7 chapter or of any rules and regulations promulgated hereunder.
27-8 (c) The Administrator may deny, suspend, or revoke a license
27-9 to operate or place the school on probation if the school or a
27-10 representative of the school gives a prospective student
27-11 information relating to the school that is false, fraudulent,
27-12 deceptive, substantially inaccurate, or misleading.
27-13 (d) A holder of a license revoked or made conditional under
27-14 this section may appeal the revocation or imposition of conditions
27-15 decision under Subchapter E of this chapter.
27-16 (e) During any period a school is on probation under this
27-17 section, the school must state clearly in any student solicitation
27-18 that the school is on probation.
27-19 SECTION 1.15. Section 32.37(c), Education Code, is amended
27-20 to read as follows:
27-21 (c) Denial or revocation of registration of a representative
27-22 by the administrator shall be in accordance with the provisions of
27-23 this chapter applicable to denial or revocation of a license to
27-24 operate <certificate of approval>; provided, however, the
27-25 administrator may deny, suspend or revoke the registration of a
27-26 representative who has been convicted of a felony, whether within
27-27 or without the State of Texas.
28-1 SECTION 1.16. Section 32.39, Education Code, is amended by
28-2 amending Subsections (a), (b), (c), (d), and (e) and adding
28-3 Subsections (g), (h), and (i) to read as follows:
28-4 (a) As a condition for granting a license to operate
28-5 <certification> each school must maintain a cancellation and
28-6 settlement policy which must provide a full refund of all monies
28-7 paid by a student if:
28-8 (1) the student cancels the enrollment agreement or
28-9 contract within 72 hours (until midnight of the third day excluding
28-10 Saturdays, Sundays, and legal holidays) after the enrollment
28-11 contract is signed by the prospective student;
28-12 (2) the enrollment of the student was procured as the
28-13 result of any misrepresentation in advertising, promotional
28-14 materials of the school, or representations by the owner or
28-15 representatives of the school.
28-16 (b) As a condition for granting a license <certification>,
28-17 each school must maintain a policy for the refund of the unused
28-18 portion of tuition, fees, and other charges in the event the
28-19 student, after expiration of the 72-hour cancellation privilege
28-20 terminates enrollment or is terminated by the school, as provided
28-21 by this subsection, <fails to enter the course, or withdraws, or is
28-22 discontinued therefrom at any time prior to completion,> and such
28-23 policy must provide:
28-24 (1) refunds for resident programs <courses> will be
28-25 based on the period of enrollment computed on the basis of program
28-26 <course> time expressed in clock hours;
28-27 (2) the effective date of the termination for payment
29-1 of a refund <refund purposes> in residence schools will be the
29-2 earliest of the following:
29-3 (A) the last date of attendance, if the student
29-4 is terminated for failure to satisfy a school attendance, grade, or
29-5 work requirement <by the school>;
29-6 (B) the date of receipt of written notice from
29-7 the student;
29-8 (C) the 10th consecutive school day the student
29-9 has been absent, unless any of the absences are excused by the
29-10 school <ten school days following the last date of attendance>; or
29-11 (D) the date the student fails to return, as
29-12 scheduled, from a leave of absence;
29-13 (3) if tuition and fees are <is> collected in advance
29-14 of entrance, and if, after expiration of the 72-hour cancellation
29-15 privilege, the student does not enter the residence school, not
29-16 more than $100 shall be retained by the school;
29-17 (4) for the student who enters a residence program
29-18 <course> of not more than 12 months in length, terminates or
29-19 withdraws, the school may retain $100 of tuition and fees and the
29-20 minimum refund of the remaining tuition and fees will be:
29-21 (A) during the first week or one-tenth of the
29-22 program <course>, whichever is less, 90 percent of the remaining
29-23 tuition and fees;
29-24 (B) after the first week or one-tenth of the
29-25 program <course>, whichever is less, but within the first three
29-26 weeks of the program <course>, 80 percent of the remaining tuition
29-27 and fees;
30-1 (C) after the first three weeks of the program
30-2 <course>, but within the first quarter of the program <course>, 75
30-3 percent of the remaining tuition and fees;
30-4 (D) during the second quarter of the program
30-5 <course>, 50 percent of the remaining tuition and fees;
30-6 (E) during the third quarter of the program
30-7 <course>, 10 percent of the remaining tuition and fees;
30-8 (F) during the last quarter of the program
30-9 <course>, the student may be considered obligated for the full
30-10 tuition and fees;
30-11 (5) for residence programs <courses> more than 12
30-12 months in length, the refund shall be applied to each 12-month
30-13 period, or part thereof separately, in the manner provided by
30-14 Subsection (b)(4) of this section;
30-15 (6) refunds of items of extra expense to the student,
30-16 such as instructional supplies, books, student activities,
30-17 laboratory fees, service charges, rentals, deposits, and all other
30-18 such ancillary miscellaneous charges, where these items are
30-19 separately stated and shown in the data furnished the student
30-20 before enrollment, will be made in a reasonable manner acceptable
30-21 to the administrator;
30-22 (7) refunds based on enrollment in residence schools
30-23 will be totally consummated within 60 <30> days after the effective
30-24 date of termination, as determined under Subdivision (2) of this
30-25 subsection;
30-26 (8) refunds for correspondence programs <courses> will
30-27 be computed on the basis of the number of lessons in the program
31-1 <course>;
31-2 (9) the effective date of the termination for refund
31-3 purposes in correspondence programs <courses> will be the earliest
31-4 of the following:
31-5 (A) the date of notification to the student if
31-6 the student is terminated;
31-7 (B) the date of receipt of written notice from
31-8 the student;
31-9 (C) the end of the third calendar month
31-10 following the month in which the student's last lesson assignment
31-11 was received unless notification has been received from the student
31-12 that he wishes to remain enrolled;
31-13 (10) if tuition and fees are <is> collected before any
31-14 lessons have been completed, and if, after expiration of the
31-15 72-hour cancellation privilege, the student fails to begin the
31-16 program <course>, not more than $50 shall be retained by the
31-17 school;
31-18 (11) in cases of termination or withdrawal after the
31-19 student has begun the correspondence program <course>, the school
31-20 may retain $50 of tuition and fees, and the minimum refund policy
31-21 must provide that the student will be refunded the pro rata portion
31-22 of the remaining tuition fees and other charges that the number of
31-23 lessons completed and serviced by the school bears to the total
31-24 number of lessons in the program <course>;
31-25 (12) refunds based on enrollment in correspondence
31-26 schools will be totally consummated within 60 <30> days after the
31-27 effective date of termination, as determined under Subdivision (9)
32-1 of this subsection.
32-2 (c) In lieu of the refund policy herein set forth, <for
32-3 programs of instruction not regularly offered to the general
32-4 public,> the State Board of Education may, for good cause shown,
32-5 amend, modify, substitute and/or alter the terms of such policy due
32-6 to the specialized nature and objective of the subject school's
32-7 program <course> of instruction, including authorizing a refund on
32-8 a pro rata basis or the elimination of the 72-hour cancellation
32-9 privilege provided by Subsection (a) of this section, for a program
32-10 conducted for 40 or fewer hours, such as a seminar or workshop.
32-11 (d) If a program <course of instruction> is discontinued by
32-12 the school and this prevents the student from completing the
32-13 program <course>, all tuition and fees paid are <then> due and
32-14 refundable.
32-15 (e) If a refund is not made within the period required by
32-16 this section, the school shall pay, as a penalty, interest on the
32-17 refund for the interval beginning with the first day following the
32-18 expiration of the refund period and ending with the day immediately
32-19 preceding the date the refund is made. If the refund is made to a
32-20 lending institution, the interest shall also be paid to that
32-21 institution and applied against the student's loan. The
32-22 commissioner of education annually shall establish the level of
32-23 interest at a level sufficient to provide a deterrent to the
32-24 retention of student funds. The Central Education Agency may
32-25 exempt a school from the payment of the interest if the school
32-26 makes a good faith effort to refund the tuition but is unable to
32-27 locate the student. The school shall provide to the agency on
33-1 request documentation of the effort to locate the student.
33-2 (g) Refunds under this section shall be applied:
33-3 (1) first, to the repayment of federal student loans,
33-4 awards, and other Title IV student assistance, as prescribed by the
33-5 Student Consumer Requirements in the U.S. Department of Education
33-6 Higher Education Amendments of 1992;
33-7 (2) second, to the repayment of other government
33-8 loans;
33-9 (3) third, to the repayment of other financial loans;
33-10 and
33-11 (4) last, to the student's personal tuitional
33-12 expenditures.
33-13 (h) Not later than the 30th day after the date on which a
33-14 refund is due to a student who has received a student loan, the
33-15 school shall notify the guaranty agency and the lender of the
33-16 required refund and any refund previously made. The guaranty
33-17 agency and the lender shall notify the student and the school if
33-18 the student's loan has been transferred to another holder.
33-19 (i) The failure of a school or a person to pay a tuition and
33-20 fees refund as required by this section is a deceptive trade
33-21 practice under Subchapter E, Chapter 17, Business & Commerce Code.
33-22 SECTION 1.17. Section 32.401, Education Code, is amended to
33-23 read as follows:
33-24 Sec. 32.401. APPROVED DEGREES. (a) A proprietary school
33-25 may offer an associate of applied arts, (AAA), associate of applied
33-26 science, (AAS), or associate of occupational studies (AOS) <an
33-27 associate of applied arts or an associate of applied science>
34-1 degree approved by the Texas Higher Education Coordinating Board.
34-2 (b) A proprietary school may offer an applied technology
34-3 degree, (AT), or Occupational Studies Degree, (OS), approved by the
34-4 Texas Department of Licensing and Regulation. The Texas Department
34-5 of Licensing and Regulation shall have no authority to approve a
34-6 degree title that uses "associate," "bachelor's," "master's," or
34-7 "doctor's," in the title and shall consult with the Texas Higher
34-8 Education Coordinating Board to ensure that the titles of degrees
34-9 approved by the agency are distinctly different from the titles of
34-10 degrees approved by the board.
34-11 <(b) A proprietary school may offer an applied technology
34-12 degree, an occupational studies degree, or other degree approved by
34-13 the Central Education Agency. The Central Education Agency shall
34-14 have no authority to approve a degree title that uses "associate,"
34-15 "bachelor's," "master's," or "doctor's" in the title and shall
34-16 consult with the Texas Higher Education Coordinating Board to
34-17 ensure that the titles of degrees approved by the agency are
34-18 distinctly different from the titles of degrees approved by the
34-19 board.>
34-20 SECTION 1.18. Subchapter D, Chapter 32, Education Code, is
34-21 amended by adding Sections 32.402-32.4014 to read as follows:
34-22 Sec. 32.402. CONSUMER INFORMATION. (a) A school must
34-23 submit to the administrator for approval, on an annual basis, a
34-24 school catalog or comparable written documents detailing the
34-25 consumer information that must be given to a prospective student
34-26 before enrollment. The school catalog or document must include:
34-27 (1) the name and address of the school and the
35-1 school's governing body and officials;
35-2 (2) a calendar of the school year;
35-3 (3) school policies on enrollment;
35-4 (4) rules relating to absences;
35-5 (5) the school grading policy;
35-6 (6) the school's hours of operation and rules of
35-7 conduct;
35-8 (7) a schedule of the tuition and other fees assessed;
35-9 (8) the school's cancellation and refund policy;
35-10 (9) a general description of the programs offered;
35-11 (10) information on entrance testing and remedial
35-12 development plans;
35-13 (11) state licensing requirements for programs
35-14 intended to result in licensing of the student;
35-15 (12) starting range and reported average salaries for
35-16 the prior year's graduates in occupations for which programs are
35-17 offered, if the information is available;
35-18 (13) the current rates of job placement and employment
35-19 of students who complete a program;
35-20 (14) the school policy on credit for previous
35-21 education and training;
35-22 (15) school regulations relating to incomplete grades;
35-23 (16) information on the transferability of credits
35-24 earned;
35-25 (17) the name, mailing address, and telephone number
35-26 of the administrator for the purpose of directing complaints to the
35-27 administrator and the mechanism and procedures for resolving
36-1 grievances submitted to the administrator;
36-2 (18) a statement that the administrator has
36-3 information on cost comparison with similar schools;
36-4 (19) market and job availability information, if
36-5 available;
36-6 (20) the names of the members of any advisory council
36-7 of the school and the company for which they work; and
36-8 (21) other information required by the administrator
36-9 if reasonable notice has been given by the administrator to the
36-10 school of the additional requirements.
36-11 (b) A school may not accept a signed student enrollment
36-12 contract or accept a student into any school program until at least
36-13 24 hours after the student has received the catalog or comparable
36-14 written documents required under this section.
36-15 (c) A student must sign a receipt stating that:
36-16 (1) the catalog was received by the student before any
36-17 commitment made by the student to the school or by the school to
36-18 the student;
36-19 (2) the student was given an opportunity to discuss
36-20 the catalog with a representative of the school; and
36-21 (3) the student understands the contents and
36-22 implications of the catalog.
36-23 (d) The receipt required by Subsection (c) of this section
36-24 must be placed in the student's permanent school file, and a copy
36-25 of the receipt must be delivered to the student.
36-26 Sec. 32.403. PROGRAM LENGTH AND CURRICULUM. (a) A school
36-27 must submit to the administrator for approval the program lengths
37-1 and curriculum content for each program offered by the school. The
37-2 program lengths and content may not be implemented unless the
37-3 administrator approves them. The program lengths and content shall
37-4 reasonably ensure that students develop the job skills and
37-5 knowledge necessary for employment.
37-6 (b) The administrator shall require a school to fully
37-7 account for all curriculum contents and program lengths before
37-8 issuing or renewing a license to operate, and a school that is
37-9 offering program lengths below or above industry standards may be
37-10 issued a conditional license to operate.
37-11 Sec. 32.404. COMPLETION, EMPLOYMENT, AND PLACEMENT. (a)
37-12 The administrator shall set and enforce minimum standards for
37-13 completion and employment rates of programs, based on collected
37-14 data.
37-15 (b) In determining whether to renew a license to operate,
37-16 the administrator shall consider the completion, placement, and
37-17 employment rates of students of the programs.
37-18 (c) Before a school may begin offering a new program for
37-19 students, the school must show the administrator the opportunity
37-20 for jobs for graduates of the program and the possibility of
37-21 placement or employment.
37-22 (d) Before the administrator issues or renews a license to
37-23 operate involving a school that offers or advertises a placement
37-24 service, the administrator may require the school to file a true
37-25 and accurate copy of the school's placement records for the
37-26 previous year.
37-27 Sec. 32.405. ON-SITE INSPECTIONS. (a) The administrator
38-1 shall conduct on-site inspections of a school to determine the
38-2 normal operating conditions of the school.
38-3 (b) The inspection required by Subsection (a) of this
38-4 section shall be unannounced.
38-5 (c) The administrator may inspect such things as the
38-6 instructional books and records, classrooms, dormitories, tools,
38-7 equipment, and classes of a school or an applicant for a license to
38-8 operate at any reasonable time.
38-9 Sec. 32.406. LICENSING REQUIREMENTS DISCLOSURE. (a) A
38-10 school must disclose to all prospective students state licensing
38-11 requirements to practice the occupation for which the student is
38-12 training.
38-13 (b) A school must disclose to all prospective students the
38-14 performance of graduates from the school on any licensing
38-15 examination if that information is available.
38-16 Sec. 32.407. ENTRANCE REQUIREMENTS; MINIMUM SKILLS TEST.
38-17 (a) The administrator shall approve entrance requirements,
38-18 including minimum skills testing, for students who may be accepted
38-19 for a program in a school. The requirements must be specific and
38-20 provide that students who are allowed to enter a program will have
38-21 a reasonable chance of completing the program.
38-22 (b) The school shall administer a standardized test to
38-23 students entering the school, if testing for minimal skill
38-24 competency is determined by the administrator as appropriate and
38-25 necessary to determine if remediation is needed. The test must be
38-26 administered before enrollment and must be nationally recognized as
38-27 appropriate and effective for minimum skills testing. If the test
39-1 reveals the necessity for remediation, the school must implement a
39-2 plan to encourage the student to improve in basic general education
39-3 skills.
39-4 (c) A student must achieve a successful score on the test
39-5 required by this section before the student is obligated for
39-6 tuition and fees for the vocational portion of the school's
39-7 program.
39-8 (d) The school may, in accordance with federal statutory
39-9 provisions affecting guaranteed student loan programs, on a
39-10 case-by-case basis, refuse to provide the certification statements
39-11 required for guaranteed student loan eligibility, or reduce the
39-12 determination of need for a guaranteed student loan if the school
39-13 determines that the student's expenses to be covered by the loan
39-14 and the estimated cost of attendance, can be met more appropriately
39-15 by the school, directly by the student, or by other sources.
39-16 Sec. 32.408. STUDENTS IN NEED OF REMEDIAL HELP. (a) An
39-17 applicant without a high school diploma or high school equivalency
39-18 certificate must pass an entrance test approved by the
39-19 administrator and be considered to have the ability to benefit from
39-20 the school before the school may enroll the student.
39-21 (b) A school that admits a student who does not have a high
39-22 school diploma or high school equivalency certificate must develop
39-23 and implement a plan for counseling the student on curriculum,
39-24 student aid, employment opportunities, and the remediation
39-25 necessary for the student to obtain a high school equivalency
39-26 certificate and improve in basic general education skills.
39-27 (c) The school must assist the student in obtaining the
40-1 remediation necessary for the student to pass a standardized
40-2 minimum skills test, approved by the administrator, and the student
40-3 must pass the test before entering the final quarter of the
40-4 program.
40-5 Sec. 32.409. ENROLLMENT POLICIES. (a) The enrollment
40-6 contract of a school must contain:
40-7 (1) a disclosure that the contract is a legally
40-8 binding instrument on written acceptance of the student by the
40-9 school, unless canceled as provided by law;
40-10 (2) the school's cancellation and refund policy;
40-11 (3) the method of cancellation of the contract, the
40-12 effective date of any cancellation, and the name and address to
40-13 which the notice of cancellation should be sent or delivered;
40-14 (4) the total cost of the program, including tuition
40-15 and all other charges;
40-16 (5) a notification that the fair market value of
40-17 equipment or supplies furnished to the student that the student
40-18 fails to return in a condition suitable for resale not later than
40-19 the 10th business day after the date of cancellation may be
40-20 retained by the school and deducted from any refund of the student;
40-21 (6) a statement that if a student's enrollment is
40-22 canceled for any reason, the school will notify an agency known to
40-23 the school to be providing financial aid to the student of the
40-24 cancellation not later than the 30th day after the date of
40-25 cancellation;
40-26 (7) the name of the programs, including the number of
40-27 hours of classroom instruction or home study lessons.
41-1 (b) An enrollment contract may not contain a wage assignment
41-2 provision or a confession of judgment clause.
41-3 (c) Immediately after a prospective student has signed an
41-4 enrollment contract, the school shall give the prospective student
41-5 a copy of the contract, and a copy shall be placed in the student's
41-6 permanent school file.
41-7 Sec. 32.4010. LOAN COUNSELING. (a) A school shall conduct
41-8 loan counseling entrance interviews with each prospective student
41-9 seeking a loan during the enrollment process. A student borrower
41-10 shall be counseled before the initial disbursement of loan
41-11 proceeds, shortly before the student completes one-half of the
41-12 program, and before the student is issued a certificate of
41-13 completion.
41-14 (b) The school's financial aid officer or counselor shall
41-15 conduct the interviews required by Subsection (a) of this section.
41-16 The interview must include a discussion of:
41-17 (1) the rights and responsibilities of the student as
41-18 a borrower;
41-19 (2) what a loan is and the importance of repayment;
41-20 (3) the total cost of the program in which the student
41-21 will be enrolled;
41-22 (4) the availability of other forms of financial aid,
41-23 grants, and part-time work;
41-24 (5) the starting range and average reported salaries
41-25 of those in the occupation for which the student will be trained,
41-26 if available; and
41-27 (6) job placement services provided by the school and
42-1 the employment rate of persons who attended the school and were
42-2 enrolled in the program in which the student is enrolled.
42-3 (c) A school approved to accept state or federal educational
42-4 loans or grants shall adopt, in addition to the provisions in this
42-5 section, measures to reduce defaults and improve borrowers
42-6 understanding and respect for the loan repayment obligation as
42-7 provided in 34 C.F.R., Parts 668 and 682.
42-8 (d) The school must give a copy of the Texas Guaranteed
42-9 Student Loan Corporation's "Your Future" guide, or a comparable
42-10 document, approved by the administrator, to a prospective student
42-11 at a time and in a manner that provides the student with sufficient
42-12 opportunity to read the guide or other document and discuss the
42-13 contents with the school's financial aid officer, if necessary for
42-14 understanding and clarity, before signing an enrollment contract
42-15 and before the school accepts the student in a program.
42-16 (e) The prospective student must sign a document stating
42-17 that the student:
42-18 (1) attended a loan counseling entrance interview; and
42-19 (2) received a copy of the "Your Future" guide or
42-20 comparable document in the time provided by Subsection (d) of this
42-21 section.
42-22 (f) A copy of the signed document required by Subsection (e)
42-23 of this section must be sent to the student, guarantor, and lender
42-24 and must be placed in the student's permanent school file.
42-25 Sec. 32.4011. RECORDS. (a) A school shall maintain
42-26 permanent records for all students enrolled, as required by the
42-27 administrator.
43-1 (b) A school shall adopt a plan to preserve permanent
43-2 records and submit the plan to the administrator for approval. The
43-3 plan must:
43-4 (1) provide that at least one copy of the records will
43-5 be held in a secure depository; and
43-6 (2) designate an appropriate official to provide a
43-7 student with copies of records or transcripts on request.
43-8 (c) The school shall make the first copy of records or
43-9 transcripts at no charge to the student. The school may make a
43-10 reasonable charge to provide additional copies of records,
43-11 transcripts, or other student information.
43-12 (d) If a school closes, the records become the property of
43-13 the state.
43-14 Sec. 32.4012. DISPLAY OF LICENSE TO OPERATE; COMPLAINTS.
43-15 (a) A holder of a license to operate issued under this chapter
43-16 shall display the license in a conspicuous place at the premises of
43-17 the school.
43-18 (b) A school that has received a license to operate under
43-19 this chapter shall post on the premises of the school at a
43-20 prominent and conspicuous location the name, mailing address, and
43-21 telephone number of the administrator for the purpose of directing
43-22 complaints to the administrator.
43-23 Sec. 32.4013. FINANCIAL STABILITY. (a) A school may not
43-24 reflect unearned tuition as a current asset unless the amount shown
43-25 in current assets that reflects unearned tuition is offset by an
43-26 equal amount shown as a current liability. The school must meet
43-27 one of the following criteria in order to be determined as
44-1 financially sound and capable of fulfilling its commitments for
44-2 training:
44-3 (1) current assets must bear a relationship to current
44-4 liabilities in a ratio of at least one-to-one; or
44-5 (2) the school must have posted, or set aside in a
44-6 dedicated escrow account, a bond, certificate of deposit,
44-7 irrevocable letter of credit, or comparable security, acceptable to
44-8 the administrator, each made payable to the State of Texas, in an
44-9 amount sufficient to cover the school's record storage costs,
44-10 teachout, and tuition and fees refund and recovery exposure based
44-11 on the evidence the school submits proving its projected maximum
44-12 total unearned tuition during the period covered by the evidence of
44-13 indebtedness to the State.
44-14 (b) The school must demonstrate to the satisfaction of the
44-15 administrator its financial soundness and ability to fulfill its
44-16 commitments for training. If requested by the school and
44-17 administrator, the School Accounts Advisory Board shall investigate
44-18 the financial soundness of a school that does not meet the
44-19 requirements of (1) or (2) above in order to determine if the
44-20 school is capable of fulfilling its obligations under this Act.
44-21 Sec. 32.4014. COMPLAINTS. The administrator shall prepare
44-22 information of public interest describing the functions of the
44-23 agency and the procedures by which complaints are filed with and
44-24 resolved by the administrator against a proprietary school. The
44-25 agency shall make the information available to the public, to the
44-26 appropriate state agencies, and to the schools.
44-27 SECTION 1.19. Section 32.41, Education Code, is amended to
45-1 read as follows:
45-2 Sec. 32.41. Hearing. Should the applicant be dissatisfied
45-3 with the imposition of conditions on, or the denial or revocation
45-4 of, a license to operate <certificate of approval> by the
45-5 Administrator, the applicant shall have the right to appeal the
45-6 decision of the Administrator and request a hearing with the
45-7 Administrator within fifteen (15) days after receipt of notice.
45-8 Upon receipt of the request for a hearing, the Administrator shall
45-9 set a time and place for said hearing and then send notice to the
45-10 school of said time and place. Said hearing shall be held within
45-11 thirty (30) days from the receipt of the request for a hearing. At
45-12 said hearing, an applicant may appear in person or by counsel and
45-13 present evidence to the Administrator in support of the licensing
45-14 without conditions or the retaining or granting of the permit
45-15 specified herein. All interested persons may also appear and
45-16 present oral and documentary evidence to the Administrator,
45-17 concerning the issuance of a license to operate <certificate of
45-18 approval> to the applicant school. Within ten (10) days after the
45-19 hearing, the Administrator shall send notice to the school either
45-20 affirming or rescinding <revoking> the revocation or denial of, or
45-21 conditions imposed on, the license to operate <certificate of
45-22 approval>.
45-23 SECTION 1.20. Section 32.61, Education Code, is amended to
45-24 read as follows:
45-25 Sec. 32.61. Prohibitions. No person shall:
45-26 (1) operate a school without a license to operate or
45-27 assume ownership of an existing school without obtaining a new
46-1 license to operate <certificate of approval issued by the
46-2 Administrator>;
46-3 (2) solicit prospective students without being
46-4 licensed <bonded> as required by this Chapter;
46-5 (3) accept contracts or enrollment applications from a
46-6 representative who is not registered <bonded> as required by this
46-7 Chapter;
46-8 (4) utilize advertising designed to mislead or deceive
46-9 prospective students;
46-10 (5) fail to notify the Administrator of the
46-11 discontinuance of the operation of any school within 72 hours of
46-12 cessation of classes and make available accurate records as
46-13 required by this Chapter;
46-14 (6) fail to secure and file within 30 days an
46-15 increased bond as required by this Chapter;
46-16 (7) negotiate any promissory instrument received as
46-17 payment of tuition or other charge prior to completion of 75
46-18 percent of the course, provided that prior to such time, the
46-19 instrument may be transferred by assignment to a purchaser who
46-20 shall be subject to all the defenses available against the school
46-21 named as payee;
46-22 (8) enroll a student who fails to satisfy entrance
46-23 requirements; or
46-24 (9) <(8)> violate any provision of this Chapter or a
46-25 rule adopted under this Chapter.
46-26 SECTION 1.21. Section 32.611, Education Code, is amended to
46-27 read as follows:
47-1 Sec. 32.611. ADMINISTRATIVE <CIVIL> PENALTY. (a) The
47-2 administrator may impose an administrative penalty against a person
47-3 who violates Section 32.61 of this code.
47-4 (b) The penalty for a violation may be in an amount not to
47-5 exceed $10,000.
47-6 (c) The amount of the penalty shall be based on:
47-7 (1) the seriousness of the violation, including the
47-8 nature, circumstances, extent, and gravity of any prohibited acts;
47-9 (2) efforts to correct the violation; and
47-10 (3) any other matter that justice may require.
47-11 (d) If the administrator determines that a violation has
47-12 occurred, the administrator may issue a report that states the
47-13 facts on which the determination is based and the administrator's
47-14 recommendation on the imposition of a penalty, including a
47-15 recommendation on the amount of the penalty.
47-16 (e) Within 14 days after the date the report is issued, the
47-17 administrator shall give written notice of the report to the
47-18 person. The notice may be given by certified mail. The notice
47-19 must include a brief summary of the alleged violation and a
47-20 statement of the amount of the recommended penalty and must inform
47-21 the person that the person has a right to a hearing on the
47-22 occurrence of the violation, the amount of the penalty, or both the
47-23 occurrence of the violation and the amount of the penalty.
47-24 (f) Within 20 days after the date the person receives the
47-25 notice, the person in writing may accept the determination and
47-26 recommended penalty of the administrator or may make a written
47-27 request for a hearing on the occurrence of the violation, the
48-1 amount of the penalty, or both the occurrence of the violation and
48-2 the amount of the penalty.
48-3 (g) If the person accepts the determination and recommended
48-4 penalty of the administrator, the administrator by order shall
48-5 impose the recommended penalty.
48-6 (h) If the person requests a hearing or fails to respond
48-7 timely to the notice, the administrator shall set a hearing and
48-8 give notice of the hearing to the person. The hearing shall be
48-9 held by the administrator. The administrator shall make findings
48-10 of fact and conclusions of law and, based on the findings of fact
48-11 and conclusions of law, by order may find that a violation has
48-12 occurred and impose a penalty or find that no violation occurred.
48-13 (i) The notice of the administrator's order given to the
48-14 person under the Administrative Procedure and Texas Register Act
48-15 (Article 6252-13a, Vernon's Texas Civil Statutes) must include a
48-16 statement of the right of the person to judicial review of the
48-17 order.
48-18 (j) Within 30 days after the date the administrator's order
48-19 is final as provided by Section 16(c), Administrative Procedure and
48-20 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
48-21 Statutes), the person shall:
48-22 (1) pay the amount of the penalty;
48-23 (2) pay the amount of the penalty and file a petition
48-24 for judicial review contesting the occurrence of the violation, the
48-25 amount of the penalty, or both the occurrence of the violation and
48-26 the amount of the penalty; or
48-27 (3) without paying the amount of the penalty, file a
49-1 petition for judicial review contesting the occurrence of the
49-2 violation, the amount of the penalty, or both the occurrence of the
49-3 violation and the amount of the penalty.
49-4 (k) Within the 30-day period, a person who acts under
49-5 Subsection (j)(3) of this section may:
49-6 (1) stay enforcement of the penalty by:
49-7 (A) paying the amount of the penalty to the
49-8 court for placement in an escrow account; or
49-9 (B) giving to the court a supersedeas bond that
49-10 is approved by the court for the amount of the penalty and that is
49-11 effective until all judicial review of the board's order is final;
49-12 or
49-13 (2) request the court to stay enforcement of the
49-14 penalty by:
49-15 (A) filing with the court a sworn affidavit of
49-16 the person stating that the person is financially unable to pay the
49-17 amount of the penalty and is financially unable to give the
49-18 supersedeas bond; and
49-19 (B) giving a copy of the affidavit to the
49-20 administrator by certified mail.
49-21 (l) If the administrator receives a copy of an affidavit
49-22 under Subsection (k)(2) of this section, the administrator may file
49-23 with the court, within five days after the date the copy is
49-24 received, a contest to the affidavit. The court shall hold a
49-25 hearing on the facts alleged in the affidavit as soon as
49-26 practicable and shall stay the enforcement of the penalty on
49-27 finding that the alleged facts are true. The person who files an
50-1 affidavit has the burden of proving that the person is financially
50-2 unable to pay the amount of the penalty and to give a supersedeas
50-3 bond.
50-4 (m) If the person does not pay the amount of the penalty and
50-5 the enforcement of the penalty is not stayed, the administrator may
50-6 refer the matter to the attorney general for collection of the
50-7 amount of the penalty.
50-8 (n) Judicial review of the order of the administrator:
50-9 (1) is instituted by filing a petition as provided by
50-10 Section 19, Administrative Procedure and Texas Register Act
50-11 (Article 6252-13a, Vernon's Texas Civil Statutes); and
50-12 (2) is under the substantial evidence rule.
50-13 (o) If the court sustains the occurrence of the violation,
50-14 the court may uphold or reduce the amount of the penalty and order
50-15 the person to pay the full or reduced amount of the penalty. If
50-16 the court does not sustain the occurrence of the violation, the
50-17 court shall order that no penalty is owed.
50-18 (p) When the judgment of the court becomes final, the court
50-19 shall proceed under this subsection. If the person paid the amount
50-20 of the penalty and if that amount is reduced or is not upheld by
50-21 the court, the court shall order that the appropriate amount plus
50-22 accrued interest be remitted to the person. The rate of the
50-23 interest is the rate charged on loans to depository institutions by
50-24 the New York Federal Reserve Bank, and the interest shall be paid
50-25 for the period beginning on the date the penalty was paid and
50-26 ending on the date the penalty is remitted. If the person gave a
50-27 supersedeas bond and if the amount of the penalty is not upheld by
51-1 the court, the court shall order the release of the bond. If the
51-2 person gave a supersedeas bond and if the amount of the penalty is
51-3 reduced, the court shall order the release of the bond after the
51-4 person pays the amount.
51-5 (q) A penalty collected under this section shall be remitted
51-6 to the comptroller for deposit in the general revenue fund.
51-7 (r) All proceedings under this section are subject to the
51-8 Administrative Procedure and Texas Register Act (Article 6252-13a,
51-9 Vernon's Texas Civil Statutes). <If a person violates Section
51-10 32.61 of this code, the administrator may assess a civil penalty
51-11 against that person as provided by this section.>
51-12 <(b) The administrator may assess the civil penalty in an
51-13 amount not to exceed $1,000. In determining the amount of the
51-14 penalty, the administrator shall consider the seriousness of the
51-15 violation.>
51-16 <(c) If, after examination of a possible violation and the
51-17 facts relating to that possible violation, the administrator
51-18 concludes that a violation has occurred, the administrator shall
51-19 issue a preliminary report that states the facts on which the
51-20 conclusion is based, the fact that a civil penalty is to be
51-21 imposed, and the amount to be assessed. Not later than the 10th
51-22 day after the date on which the administrator issues the
51-23 preliminary report, the administrator shall send a copy of the
51-24 report to the person charged with the violation, together with a
51-25 statement of the right of the person to a hearing relating to the
51-26 alleged violation and the amount of the penalty.>
51-27 <(d) Not later than the 20th day after the date on which the
52-1 report is sent, the person charged must either make a written
52-2 request for a hearing or remit the amount of the civil penalty to
52-3 the administrator. Failure either to request a hearing or to remit
52-4 the amount of the civil penalty within the time provided by this
52-5 subsection results in a waiver of a right to a hearing under this
52-6 section. If the person charged requests a hearing, the hearing
52-7 shall be conducted in the same manner as a hearing on the denial of
52-8 certificate of approval under Section 32.41 of this code. If it is
52-9 determined after a hearing that the person has committed the
52-10 alleged violation, the administrator shall give written notice to
52-11 the person of the findings established by the hearing and the
52-12 amount of the penalty and shall enter an order requiring the person
52-13 to pay the penalty.>
52-14 <(e) Not later than the 30th day after the date on which the
52-15 notice is received, the person charged must pay the civil penalty
52-16 in full or, if the person wishes to contest either the amount of
52-17 the penalty or the fact of the violation, remit the assessed amount
52-18 to the administrator for deposit in an escrow account. If, after
52-19 judicial review, it is determined that no violation occurred or
52-20 that the amount of the penalty should be reduced, the administrator
52-21 shall remit the appropriate amount to the person charged with the
52-22 violation not later than the 30th day after the date on which the
52-23 judicial determination becomes final.>
52-24 <(f) Failure to remit the amount of the civil penalty to the
52-25 board within the time provided by Subsection (e) of this section
52-26 results in a waiver of all legal rights to contest the violation or
52-27 the amount of the penalty.>
53-1 <(g) A civil penalty owed under this section plus reasonable
53-2 attorney fees and court costs may be recovered in a civil action
53-3 brought by the attorney general at the request of the
53-4 administrator. Civil penalties recovered shall be deposited in the
53-5 General Revenue Fund. Attorney fees and court costs shall be
53-6 appropriated to the attorney general.>
53-7 SECTION 1.22. Section 32.612, Education Code, is amended to
53-8 read as follows:
53-9 Sec. 32.612. Competitive Bidding; Advertising. (a) The
53-10 State Board of Education may not adopt rules that <to> restrict
53-11 competitive bidding or advertising by a proprietary school except
53-12 to prohibit false, misleading, or deceptive competitive bidding or
53-13 advertising practices. The <Those> rules may not restrict:
53-14 (1) the use of an advertising medium;
53-15 (2) the size or duration of an advertisement; or
53-16 (3) advertisement under a trade name.
53-17 (b) A school, the representative of a school, or a recruiter
53-18 for the school may not advertise or represent, in writing or
53-19 orally, that a school is approved or accredited by the state.
53-20 Those entities or persons may advertise that the school has been
53-21 licensed to operate by the state.
53-22 (c) A school, representative of a school, or recruiter of a
53-23 school may not make or cause to be made a statement or
53-24 representation, written, oral, or visual, offering or publicizing a
53-25 subject, program, or school, if the school, representative, or
53-26 recruiter knew or reasonably should have known that the statement
53-27 or representation was false, fraudulent, deceptive, substantially
54-1 inaccurate, or misleading.
54-2 SECTION 1.23. Section 32.64, Education Code, is amended by
54-3 amending Subsection (a) and adding Subsection (c) to read as
54-4 follows:
54-5 (a) If the Central Education Agency has reasonable cause to
54-6 believe that a proprietary school has violated this chapter or a
54-7 rule adopted under this chapter, the agency may:
54-8 (1) order a peer review of the school; or
54-9 (2) suspend the admission of students to the school,
54-10 as provided by Subsection (c) of this section.
54-11 (c) The agency may suspend the admission of students to a
54-12 school under Subsection (a) of this section after the administrator
54-13 has given written notice to the applicant for or holder of a
54-14 license to operate a proprietary school of the suspension and of
54-15 the intent to deny or revoke the license, as provided by Section
54-16 32.35 or 32.36 of this code, as applicable. In addition, the
54-17 notice shall state that a hearing will be held at a time and place
54-18 and on a date specified in the notice to review the denial or
54-19 revocation decision. Except as provided by this subsection, the
54-20 hearing is in place of a hearing under Section 32.41 of this code,
54-21 and shall be held not later than the 20th day after the date notice
54-22 was given. If, after the hearing, the administrator upholds the
54-23 denial or revocation of the license, the applicant for or holder of
54-24 a license may appeal the decision, as provided by Section 32.42 of
54-25 this code. The admission of students is suspended during the
54-26 period the decision is being appealed. If the applicant for or
54-27 holder of a license appears and the agency fails to hold a timely
55-1 hearing, the agency may not continue to suspend the enrollment of
55-2 students without the consent of the applicant for or holder of a
55-3 license, and the applicant for or holder of a license is entitled
55-4 to a hearing under Section 32.41 of this code not later than the
55-5 30th day after the date the hearing under this subsection was to be
55-6 held. If the applicant for or holder of a license fails to appear,
55-7 the applicant for or holder of a license is not entitled to any
55-8 other hearing or to an appeal under Section 32.42 of this code, and
55-9 the administrator may make final the decision to deny or revoke the
55-10 license.
55-11 SECTION 1.24. Subchapter G, Chapter 32, Education Code, is
55-12 amended by adding Section 32.65 to read as follows:
55-13 Sec. 32.65. CRIMINAL PENALTIES. (a) A person commits an
55-14 offense if the person fails to comply with Section 32.61(1) or
55-15 32.39 of this code. Except as provided by Subsection (b) of this
55-16 section, an offense under this subsection is a Class A misdemeanor.
55-17 (b) A person commits an offense if the person intentionally
55-18 or knowingly uses for personal benefit funds in an amount greater
55-19 than $10,000 that are due as student refunds under Section 32.39 of
55-20 this code. An offense under this subsection is a felony of the
55-21 third degree.
55-22 SECTION 1.25. Subchapter G, Chapter 32, Education Code, is
55-23 amended by adding Section 32.66 to read as follows:
55-24 Sec. 32.66. INVESTIGATION OF STUDENT COMPLAINTS. The
55-25 administrator shall investigate complaints filed against a school
55-26 by a current or former student that identifies a possible violation
55-27 of statute or rule that occurred on a date not earlier than two
56-1 years before the date of the letter of complaint. If the school is
56-2 found to be at fault, the agency may, in addition to assessing an
56-3 appropriate penalty and fee as provided by this chapter, order the
56-4 school to provide a refund in an amount not to exceed the total
56-5 tuition and fee charge to the student.
56-6 SECTION 1.26. Section 32.91, Education Code, is amended to
56-7 read as follows:
56-8 Sec. 32.91. CONSOLIDATION OF FEES AND PROPRIETARY SCHOOL
56-9 ACCOUNT <TUITION PROTECTION FUND>. (a) At the beginning of each
56-10 fiscal year the <At the time that each school pays its annual
56-11 renewal fee, in the years provided by Subsection (c) of this
56-12 section, the> State Board of Education shall <also> collect a fee
56-13 from the school for deposit to the credit of a special account
56-14 <fund> in the general revenue fund in the state treasury to be
56-15 called the proprietary school account and to be administered by the
56-16 Central Education Agency <tuition protection fund>.
56-17 (b) The amount of the fee is determined by applying a
56-18 percentage established by the State Board of Education, based on
56-19 the recommendation of the school accounts advisory board, to each
56-20 school's annual gross tuition, with consideration given to the
56-21 school's size, expense of regulation, potential for teachouts,
56-22 tuition refund and recovery exposure, and loan default rates and
56-23 any other relevant factors <renewal fee>. The account shall be
56-24 used for:
56-25 (1) the administration of this chapter;
56-26 (2) the cost of teachouts as provided by Section 32.92
56-27 of this code;
57-1 (3) the cost of tuition and fees recovery and the cost
57-2 of student refunds that a school has not made in violation of
57-3 Section 32.39 of this code; and
57-4 (4) the cost of storing student records that have
57-5 become property of the state under this Act. <The percentage is
57-6 the rate as determined by the board that, when applied to the total
57-7 of all renewal fees, will result in the collection of $250,000 for
57-8 deposit in the fund in the first two years that the fee is
57-9 collected.>
57-10 (c) The administrator may grant an exemption from payment
57-11 into the account to a small school, as determined by the
57-12 administrator, or to a school that does not use guaranteed student
57-13 loans for tuition revenue. A school exempt as provided for by this
57-14 subsection must pay the necessary fees for regulation, as
57-15 determined by the administrator, and provide a bond, certificate of
57-16 deposit, or comparable security, as determined and approved by the
57-17 administrator, that is sufficient to cover the cost of the school's
57-18 record storage costs, teachout, and tuition and fees refund and
57-19 recovery exposure based on the evidence the school submits proving
57-20 its projected maximum total unearned tuition during the period of
57-21 the license to operate.
57-22 (d) The security shall be provided by the school for the
57-23 period during which the license to operate is issued, and the
57-24 obligation of the bond or other security must be that neither this
57-25 chapter nor any rule adopted under this chapter is violated by the
57-26 school or any of its officers, agents, or employees.
57-27 (e) The bond, certificate of deposit, or comparable security
58-1 must be issued by a company authorized to do business in the state,
58-2 conditioned that the parties to the transaction shall pay all
58-3 damages or expenses that the state or any governmental subdivision
58-4 or any student or potential student sustains resulting from a
58-5 violation. The bond, certificate of deposit, or comparable
58-6 security shall be to the state to be used only for payment for the
58-7 school's teachout and tuition and fees refund due to a student or
58-8 potential student. The security must be filed with the
58-9 administrator and shall be in such form as shall be approved by the
58-10 administrator.
58-11 (f) Schools domiciled, or having their principal place of
58-12 business, outside the state, that engage representatives to
58-13 canvass, solicit, or contract with any person in the state are
58-14 subject to the fee and security requirements of Subsection (c) of
58-15 this section.
58-16 (g) The administrator shall refer all expenses incurred by
58-17 the school account in administering Subsections (b)(2) and (3) of
58-18 this section to the attorney general's office for collection. The
58-19 amounts collected shall be deposited to the credit of the account.
58-20 Attorney's fees and court costs shall be appropriated to the
58-21 attorney general's office <Beginning on January 1, 1990, the board
58-22 shall collect the fee for two years. If on January 1, 1993, or any
58-23 subsequent year the amount in the fund is less than $200,000, the
58-24 board shall collect a fee during that year by applying a percentage
58-25 to each school's annual renewal fee at a rate that will bring the
58-26 balance of the fund to $250,000>.
58-27 (h) Interest the account earns shall be reinvested in the
59-1 account. <(d)> The state treasurer shall invest the account
59-2 <fund> in the same manner as other state funds. Sufficient funds
59-3 from the account, other fees collected by the agency, and earned
59-4 federal funds <tuition protection fund> shall be appropriated to
59-5 Central Education Agency administration for the purpose outlined in
59-6 this subchapter <section>.
59-7 (i) The administrator by rule shall establish and assess
59-8 reasonable and necessary fees to all persons and entities licensed
59-9 under this Act to be used for the regulation of those persons and
59-10 entities licensed under this Act and to supplement the
59-11 administration and purposes outlined by this Act.
59-12 (j) The administrator may permit payment of any fee
59-13 authorized under this section that exceeds $1,000 to be paid by
59-14 installment. The administrator shall provide for appropriate
59-15 interest charges and late penalties in addition to any other remedy
59-16 that is provided for by law for the late payment of a fee
59-17 installment authorized under this section. The administrator may
59-18 assess a reasonable service charge to be paid by a school that pays
59-19 a fee by installment in an amount not to exceed an annual rate of
59-20 10 percent of the fee that is to be paid by installment.
59-21 SECTION 1.27. Subchapter J, Education Code, is amended by
59-22 adding Section 32.911 to read as follows:
59-23 Sec. 32.911. SCHOOL ACCOUNTS ADVISORY BOARD. (a) The
59-24 school accounts advisory board is created. The board members
59-25 consist of:
59-26 (1) the attorney general or the designee of the
59-27 attorney general;
60-1 (2) the comptroller of public accounts or the designee
60-2 of the comptroller;
60-3 (3) the president of the Texas Guaranteed Student Loan
60-4 Corporation or the designee of the president;
60-5 (4) the commissioner of the Texas Higher Education
60-6 Coordinating Board or the designee of the commissioner;
60-7 (5) the president of the Association of Texas Lenders
60-8 for Education or the designee of the president;
60-9 (6) the president of the Texas Association of Student
60-10 Financial Aid Administrators or the designee of the president;
60-11 (7) the commissioner of the Texas Department of
60-12 Licensing and Regulation or the designee of the commissioner;
60-13 (7) the director of the division of the Texas
60-14 Department of Licensing and Regulation regulating proprietary
60-15 schools or the designee of the director;
60-16 (8) the executive director of the Texas Board of
60-17 Private Investigators and Private Security Agencies or the designee
60-18 of the executive director;
60-19 (9) the commissioner of health or the designee of the
60-20 commissioner;
60-21 (10) the executive director of the State Board of
60-22 Barber Examiners or the designee of the executive director;
60-23 (11) the executive director of the Texas Cosmetology
60-24 Commission or the designee of the executive director;
60-25 (12)-(17) one member each, elected by the recognized
60-26 constituent organization, representing schools regulated by the the
60-27 Texas Board of Private Investigators and Private Security Agencies,
61-1 the massage registration division of the Texas Department of Health
61-2 or its successor in that function, the State Board of Barber
61-3 Examiners, the Texas Cosmetology Commission, and two members
61-4 representing schools regulated by the Texas Department of Licensing
61-5 and Regulation, one of which shall be a representative of the
61-6 catagory of small and test prep schools.
61-7 (b) Each member of the school accounts advisory board has
61-8 one vote, and decisions shall be made on the basis of a majority of
61-9 the board. The school accounts advisory board shall meet, at the
61-10 call of the board's elected chairman, to recommend fees for and
61-11 expenditures from:
61-12 (1) the proprietary school account;
61-13 (2) the security officer school account;
61-14 (3) the massage school account;
61-15 (4) the barber school or college account; and
61-16 (5) the private beauty culture school account.
61-17 (c) The school accounts advisory board shall, on an annual
61-18 basis, recommend the percentage applied to annual gross tuition and
61-19 fees to be used in establishing the baseline amount, based on
61-20 anticipated needs sufficient to fully cover the purposes of the
61-21 school accounts listed in Subsection (b) of this section. The
61-22 school accounts advisory board shall monitor the administration of
61-23 the accounts and the schools or colleges contributing to the
61-24 accounts and make recommendations to the appropriate state agency
61-25 regarding the percentage of annual gross tuition to charge schools
61-26 or colleges for the appropriate account provided by Subsection (b)
61-27 of this section or other aspects of the administration of the
62-1 account or the schools or colleges.
62-2 (d) The school accounts advisory board may request an audit
62-3 of the appropriate state agency regarding the administration of the
62-4 appropriate account provided by Subsection (b) of this section.
62-5 (e) The school accounts advisory board shall serve as
62-6 arbitrator and shall hear appeals and mediate the resolution of
62-7 grievances regarding the administration of the accounts brought by
62-8 any member of the board. The school accounts advisory board shall
62-9 hear second appeals as provided by Subsection (k) of this section.
62-10 (f) The school accounts advisory board shall monitor the
62-11 default management of agencies administering school accounts,
62-12 including this Act and the rules in 34 C.F.R., Parts 668 and 682.
62-13 The board may, on findings that the default reduction initiatives
62-14 of an agency are not sufficient, as evidenced by a school that that
62-15 agency regulates exceeding the acceptable default rate as
62-16 determined by the board, require the agency to approve a default
62-17 prevention plan to be implemented by the affected school.
62-18 (g) The school accounts advisory board shall be funded by
62-19 the member organizations. Each member organization shall
62-20 appropriate funds to pay a portion of the cost to administer the
62-21 board and to pay the expenses incurred by that organization's
62-22 representative on the board.
62-23 (h) The school accounts advisory board may consider and rule
62-24 on any matter regarding the regulation of a school or licensee
62-25 under this chapter, the administration of an agency regulating
62-26 schools under this chapter, or the application by a school of a
62-27 policy regarding the students enrolled in a school regulated under
63-1 this chapter, if the board considers such consideration and ruling
63-2 are appropriate and necessary.
63-3 (i) Each state agency administering an account shall
63-4 consider the recommendations of the school accounts advisory board
63-5 when making decisions regarding the account administered by that
63-6 agency.
63-7 (j) Each state agency administering an account shall
63-8 recognize a constituent organization comprised of representatives
63-9 of schools regulated by the agency and the school's advisory
63-10 council if one exists. The recognized constituent organization
63-11 must be independent, both fiscally and administratively, from the
63-12 agency regulating constituent schools. The agency shall consider
63-13 the recommendations of the recognized constituent organization
63-14 regarding the regulation of the constituent schools.
63-15 (k) Each state agency administering an account shall
63-16 prepare, submit for approval of the school accounts advisory board,
63-17 and on approval shall publish the agency's mechanism and procedures
63-18 by which complaints may be brought before the agency by the
63-19 recognized constituent organization representing schools regulated
63-20 by the agency. The procedure shall include the investigation,
63-21 hearing, and appeals process of the agency to resolve grievances
63-22 brought against the agency or a school regulated by the agency,
63-23 regarding any aspect of the regulation of the constituent schools.
63-24 SECTION 1.28. Section 32.92, Education Code, is amended to
63-25 read as follows:
63-26 Sec. 32.92. Closed School. (a) The State Board of
63-27 Education shall adopt rules specifying the circumstances under
64-1 which the administrator may declare a school closed. If a
64-2 proprietary school closes, the Central Education Agency shall
64-3 attempt to arrange for students of the closed school to attend:
64-4 (1) another proprietary school with similar programs;
64-5 (2) a public or private school with similar programs;
64-6 (3) a similar program recognized by the Central
64-7 Education Agency; or
64-8 (4) a similar program established by private industry.
64-9 (b) The expense incurred by a school in providing a teachout
64-10 that is directly related to educating a student placed in the
64-11 school under this section, including the applicable tuition and
64-12 fees for the period of time for which the student has paid tuition
64-13 and fees, shall be paid in accordance with rules of the State Board
64-14 of Education <from the proprietary school tuition protection fund>.
64-15 (c) If the student cannot be placed in another school, the
64-16 student's tuition and fees shall be refunded under Section 32.39(d)
64-17 of this code.
64-18 (d) If a student does not accept a place that is available
64-19 and reasonable in another school, the student's tuition and fees
64-20 shall be refunded under the refund policy maintained by the closing
64-21 school under Section 32.39(b) of this code.
64-22 (e) The administrator shall make reasonable attempts to
64-23 ensure that schools under the administrator's jurisdiction,
64-24 including closed schools, fulfill the refund obligation as provided
64-25 by Section 32.39 of this code. If a school refuses to fulfill the
64-26 school's obligation or the school's bond is insufficient to pay the
64-27 cost of the teachout and refund expenses, the teachout or the
65-1 refund may be paid from the proprietary school account, except that
65-2 no school owned, either in whole or in part, by a person or
65-3 corporate entity who was an owner, in whole or in part, of a
65-4 previously closed school shall be permitted to receive compensation
65-5 for a teachout under this section <If the amount of the closed
65-6 school's bond under Section 32.38 of this code is less than the
65-7 amount required for student refunds under Subsections (c) and (d)
65-8 of this section, the refunds shall be paid from the proprietary
65-9 school tuition protection fund in an amount not to exceed $25,000>.
65-10 (f) <If another school assumes responsibility for the closed
65-11 school's students with no significant changes in the quality of
65-12 training, the student is not entitled to a refund under Subsection
65-13 (c) or (d) of this section.>
65-14 <(g)> Attorney's fees, court costs, or damages may not be
65-15 paid from the proprietary school <tuition protection> fund.
65-16 <(h) This section take effect January 1, 1992.>
65-17 SECTION 1.29. Sections 32.21(d), 32.23, 32.42(f), 32.71, and
65-18 32.92(f), Education Code, are repealed.
65-19 SECTION 1.30. (a) Section 32.38(a), Education Code, is
65-20 amended to read as follows:
65-21 (a) Before a license to operate <certificate of approval> is
65-22 issued under this chapter, a bond shall be provided by the school
65-23 for the period during which the license to operate <certificate of
65-24 approval> is issued, and the obligation of the bond shall be that
65-25 neither a provision of this chapter nor any rule or regulation
65-26 adopted pursuant thereto shall be violated by the school or any of
65-27 its officers, agents, or employees. The bond shall be in the penal
66-1 sum of $5,000 or a multiple of $5,000 that is not greater than
66-2 $25,000. The administrator shall determine the amount based on the
66-3 evidence the school submits of its projected maximum total unearned
66-4 tuition during the period of the license to operate <certificate of
66-5 approval>. The bond shall be a corporate surety bond issued by a
66-6 company authorized to do business in the State, conditioned that
66-7 the parties thereto shall pay all damages or expenses which the
66-8 State or any governmental subdivision thereof, or any student or
66-9 potential student may sustain resulting from a violation. The bond
66-10 shall be to the State to be used only for payment of a tuition
66-11 refund due to a student or potential student. The bond shall be
66-12 filed with the administrator and shall be in such form as shall be
66-13 approved by the administrator.
66-14 (b) Effective September 1, 1994, Section 32.38, Education
66-15 Code, is repealed. Any license to operate bond or any certificate
66-16 of approval bond submitted before repeal remains in full force and
66-17 effect. Any obligation under a license to operate bond or
66-18 certificate of approval bond submitted under Section 32.38 before
66-19 repeal is not impaired by repeal.
66-20 SECTION 1.31. Any balance remaining in the tuition
66-21 protection fund shall be transferred to the proprietary school
66-22 account on the effective date of this Act.
66-23 SECTION 1.32. A proprietary school that holds a certificate
66-24 of approval on the effective date of this Act is considered to hold
66-25 a license to operate under Chapter 32, Education Code, as amended
66-26 by this part. The administrator shall replace a certificate with a
66-27 license after the expiration of the certificate and on application
67-1 for renewal.
67-2 PART 2. SECURITY OFFICER SCHOOLS
67-3 SECTION 2.01. Section 20, Private Investigators and Private
67-4 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
67-5 Statutes), is amended to read as follows:
67-6 Sec. 20. SECURITY OFFICER SCHOOL LICENSE; APPLICATION;
67-7 REFUND POLICY <Training Programs>. (a) The board shall establish
67-8 a basic training course for security officers. The course must be
67-9 offered and taught by schools and instructors licensed <approved>
67-10 by the board. To receive a license <board approval,> a school or
67-11 an instructor must submit an application to the board on a form
67-12 provided by the board.
67-13 (b) The basic training course approved by the board shall
67-14 consist of a minimum of 30 hours and shall include:
67-15 (1) legal limitations on the use of firearms and on
67-16 the powers and authority of a security officer;
67-17 (2) familiarity with this Act;
67-18 (3) field note taking and report writing;
67-19 (4) range firing and procedure, and firearms safety
67-20 and maintenance; and
67-21 (5) any other topics of security officer training
67-22 curriculum which the board deems necessary.
67-23 (c) The board shall develop a commissioned security officer
67-24 training manual to be used in the instructing and training of
67-25 commissioned security officers.
67-26 (d) The board shall promulgate all rules necessary to
67-27 administer the provisions of this section concerning the training
68-1 requirements of this Act.
68-2 (e) An application for a license to instruct at a security
68-3 officer school must state the education and experience level of the
68-4 applicant in all courses or programs that the applicant will teach
68-5 or instruct and be on a form prescribed by the board. The board
68-6 shall review an application for competency, consistency, and the
68-7 overall quality of the applicant. An applicant for an instructor's
68-8 license must receive a passing grade on an examination administered
68-9 by the board.
68-10 (f) The board may not issue a security officer commission to
68-11 an applicant employed by a licensee unless the applicant submits
68-12 evidence satisfactory to the board that:
68-13 (1) he has completed the basic training course at a
68-14 school or under an instructor approved by the board;
68-15 (2) he meets all qualifications established by this
68-16 Act and by the rules of the board;
68-17 (3) he has satisfied his firearm training instructor
68-18 that he has attained with a handgun a minimum average marksmanship
68-19 competency of 160 out of 300 on an "Army L" target or a minimum of
68-20 80 out of 150 on an F.B.I. Silhouette target (N.R.A. B-27), at 50
68-21 feet with 10 shots slow fire, 10 shots time fire and 10 shots
68-22 double-action or complies with the standards of marksmanship set by
68-23 the board;
68-24 (4) he has satisfied his firearm training instructor
68-25 that he has complied with the standards of marksmanship set by the
68-26 board for minimum marksmanship competency with a shotgun.
68-27 (g) <(f)> In addition to the requirements of Subsection (f)
69-1 <(e)> of this section, the board by rules and regulations shall
69-2 establish other qualifications for persons who are employed in
69-3 positions requiring the carrying of firearms. These qualifications
69-4 may include physical and mental standards, standards of good moral
69-5 character, and other requirements that relate to the competency and
69-6 reliability of individuals to carry firearms. The board shall
69-7 prescribe appropriate forms and rules and regulations by which
69-8 evidence that the requirements are fulfilled is presented. The
69-9 board shall require commissioned security officers and applicants
69-10 for security officer commissions to demonstrate proficiency in the
69-11 use of firearms to the satisfaction of a firearm training
69-12 instructor who is employed by a board approved training school. An
69-13 applicant for a security officer commission must demonstrate
69-14 proficiency not earlier than the 90th day before the date on which
69-15 the security officer commission is to be issued. A commissioned
69-16 security officer must demonstrate proficiency not earlier than the
69-17 90th day before the date on which the commission is to be renewed.
69-18 The records of this proficiency shall be maintained by the school
69-19 and available for inspection by the board.
69-20 (h) <(g)> The board shall prescribe appropriate rules and
69-21 regulations for the maintenance of records relating to persons
69-22 issued security officer commissions by the board.
69-23 (i) An application for a security officer school license
69-24 must be verified by the applicant and must contain a statement of
69-25 any final convictions of the owners, school directors, recruiters,
69-26 instructional faculty, or other selected personnel of the security
69-27 officer school as determined by the board. The board may obtain
70-1 criminal history records of school directors or instructional
70-2 faculty from any law enforcement agency, including the United
70-3 States Department of Justice, the Department of Public Safety of
70-4 the State of Texas, the Texas Department of Criminal Justice, or
70-5 the police department of a municipality. The administrator may
70-6 deny, revoke, or disapprove the application for, or existing
70-7 license, registration, or approval of a person who has been
70-8 convicted of, entered a plea of nolo contendere, or guilty to, or
70-9 received deferred adjudication for, a felony or misdemeanor offense
70-10 for which a refusal may be issued under Article 6252-13c, Vernon's
70-11 Texas Civil Statutes.
70-12 (j) The board shall determine that an applicant for a
70-13 security officer school license is financially sound and capable of
70-14 fulfilling its commitments for training before granting the permit.
70-15 (k) Each licensed security officer school must maintain a
70-16 cancellation and settlement policy that provides a full refund of
70-17 all money paid by a student if:
70-18 (1) the student cancels the enrollment agreement or
70-19 contract not later than midnight of the third day after the date on
70-20 which the agreement or contract is signed by the prospective
70-21 student, excluding Saturdays, Sundays, and legal holidays; or
70-22 (2) the enrollment of the student was procured as a
70-23 result of a misrepresentation made in the advertising or
70-24 promotional materials of the school or a representation by an owner
70-25 or representative of the school.
70-26 (l) Each licensed security officer school must maintain a
70-27 refund policy for the refund of the unused part of tuition, fees,
71-1 and other charges assessed a student if the student, at the
71-2 expiration of the cancellation period established under Subsection
71-3 (k) of this section, terminates enrollment or is terminated by the
71-4 school, as provided by this subsection. The refund policy must
71-5 provide that:
71-6 (1) a refund is based on the period of the student's
71-7 enrollment, computed on the basis of course time expressed in clock
71-8 hours;
71-9 (2) the effective date of the termination for payment
71-10 of a refund is the earliest of:
71-11 (A) the last date of attendance, if the student
71-12 is terminated for failure to satisfy a school attendance, grade, or
71-13 work requirement;
71-14 (B) the date of receipt by the license holder of
71-15 written notice of withdrawal by the student;
71-16 (C) the 10th consecutive school day the student
71-17 has been absent, unless any of the absences are excused by the
71-18 school; or
71-19 (D) the date the student fails to return, as
71-20 scheduled, from a leave of absence; and
71-21 (3) if tuition is collected before beginning the
71-22 course of training, and if, after the expiration of the
71-23 cancellation period, the student does not begin the course of
71-24 training, the school may retain not more than $100.
71-25 (m) If a student who begins a course of training that is
71-26 scheduled to run not more than 12 months withdraws from the course
71-27 or is terminated from the course by the school, the security
72-1 officer school may retain $100 in tuition and fees paid by that
72-2 student and is not obligated to refund any additional outstanding
72-3 tuition if the student withdraws or is terminated during the last
72-4 quarter of the course. If the student withdraws or is terminated
72-5 before the last quarter of the course begins, the school shall
72-6 refund the following percentages of any outstanding tuition:
72-7 (1) for withdrawal or termination occurring during the
72-8 first week or first one-tenth of the course, whichever is less, 90
72-9 percent;
72-10 (2) for withdrawal or termination occurring after the
72-11 first week or first one-tenth of the course, whichever is less, but
72-12 within the first three weeks of the course, 80 percent;
72-13 (3) for withdrawal or termination occurring after the
72-14 first three weeks of the course but not later than the last date of
72-15 the first quarter of the course, 75 percent;
72-16 (4) for withdrawal or termination occurring during the
72-17 second quarter of the course, 50 percent; and
72-18 (5) for withdrawal or termination occurring during the
72-19 third quarter of the course, 10 percent.
72-20 (n) A refund owed under this section must be paid not later
72-21 than the 60th day after the date on which the student becomes
72-22 eligible for the refund, as determined under Subsection (l) of this
72-23 section.
72-24 (o) If a refund is not made within the period required by
72-25 this section, the school shall pay, as a penalty, interest on the
72-26 refund for the interval beginning with the first day following the
72-27 expiration of the refund period and ending with the day immediately
73-1 preceding the date the refund is made. If the refund is made to a
73-2 lending institution, the interest shall also be paid to that
73-3 institution and applied against the student's loan. The board
73-4 annually shall establish the level of interest at a level
73-5 sufficient to provide a deterrent to the retention of student
73-6 funds. The board may exempt a school from the payment of the
73-7 interest if the school makes a good faith effort to refund the
73-8 tuition but is unable to locate the student. The school shall
73-9 provide to the board on request documentation of the effort to
73-10 locate the student.
73-11 (p) A security officer school shall record a grade of
73-12 "incomplete" for a student who withdraws but is not entitled to a
73-13 refund under Subsection (m) of this section if the student requests
73-14 the grade at the time the student withdraws and the student
73-15 withdraws for an appropriate reason unrelated to the student's
73-16 academic status. A student who receives a grade of incomplete may
73-17 reenroll in the program during the 12-month period following the
73-18 date the student withdraws and may complete those incomplete
73-19 subjects without payment of additional tuition.
73-20 (q) If a course of instruction is discontinued by the school
73-21 and this prevents the student from completing the course, all
73-22 tuition and fees paid are due and refundable.
73-23 (r) Refunds under this section shall be applied:
73-24 (1) first, to the repayment of federal student loans,
73-25 awards, and other Title IV student assistance, as prescribed by the
73-26 Student Consumer Requirements in the U.S. Department of Education
73-27 Higher Education Amendments of 1992;
74-1 (2) second, to the repayment of other government
74-2 loans;
74-3 (3) third, to the repayment of other financial loans;
74-4 and
74-5 (4) last, to the student's personal tuitional
74-6 expenditures.
74-7 (s) Not later than the 30th day after the date on which a
74-8 refund is due to a student who has received a student loan, the
74-9 school shall notify the guaranty agency and the lender of the
74-10 required refund and any refund previously made. The guaranty
74-11 agency and the lender shall notify the student and the school if
74-12 the student's loan has been transferred to another holder.
74-13 (t) The failure of a school or a person to pay a tuition
74-14 refund as required by this section is a deceptive trade practice
74-15 under Subchapter E, Chapter 17, Business & Commerce Code.
74-16 SECTION 2.02. The Private Investigators and Private Security
74-17 Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes) is
74-18 amended by adding Sections 20A-20U to read as follows:
74-19 Sec. 20A. CRITERIA FOR SECURITY OFFICER SCHOOL LICENSE.
74-20 Before the board may approve the application of a person for a
74-21 security officer school license, the director must find, on
74-22 investigation at the premises of the school, that the school meets
74-23 the following criteria:
74-24 (1) the courses, curriculum, and instruction are of a
74-25 quality, content, and length as may reasonably and adequately
74-26 achieve the stated objective for which the courses, curriculum, or
74-27 instruction are offered;
75-1 (2) there is in the school adequate space, equipment,
75-2 instructional material, and instructor personnel to provide
75-3 training of good quality;
75-4 (3) educational and experience qualifications of
75-5 directors, administrators, and instructors are adequate;
75-6 (4) the school maintains a written record of the
75-7 previous education and training of the applicant student and
75-8 clearly indicates that appropriate credit has been given by the
75-9 school for previous education and training, with the new training
75-10 period shortened where warranted through use of appropriate skills
75-11 or achievement tests and the student notified;
75-12 (5) a copy of the course outline; schedule of tuition,
75-13 fees, refund policy, and other charges; regulations pertaining to
75-14 absence, grading policy, and rules of operation and conduct;
75-15 regulations pertaining to incomplete grades; the name, mailing
75-16 address, and telephone number of the board for the purpose of
75-17 directing complaints to the agency; the current rates of job
75-18 placement and employment of students issued a certificate of
75-19 completion; and notification of the availability of the cost
75-20 comparison information prepared under Section 20G of this Act will
75-21 be furnished to the student before enrollment;
75-22 (6) on completion of training, the student is given a
75-23 certificate by the school indicating the course and that training
75-24 was satisfactorily completed;
75-25 (7) adequate records as required by the director are
75-26 kept to show attendance and progress or grades, and satisfactory
75-27 standards relating to attendance, progress, and conduct are
76-1 enforced;
76-2 (8) the school complies with all local, city, county,
76-3 municipal, state, and federal regulations; the director may require
76-4 evidence of compliance as is necessary;
76-5 (9) the school is financially sound and capable of
76-6 fulfilling its commitments for training;
76-7 (10) the school's administrators, directors, owners,
76-8 and instructors are of good reputation and character;
76-9 (11) the school has, maintains, and publishes in its
76-10 catalog or comparable documents and enrollment contract the proper
76-11 policy for the refund of the unused portion of tuition, fees, and
76-12 other charges in the event the student enrolled by the school fails
76-13 to take the course or withdraws or is discontinued from the course
76-14 at any time before completion;
76-15 (12) the school does not use erroneous or misleading
76-16 advertising, either by actual statement, omission, or intimation as
76-17 determined by the board;
76-18 (13) additional criteria as may be required by the
76-19 board;
76-20 (14) the school does not use a name like or similar to
76-21 an existing tax-supported school in the same area;
76-22 (15) the school furnishes to the board the current
76-23 rates of students who receive a certificate of completion and of
76-24 job placement and employment of students issued a certificate of
76-25 completion;
76-26 (16) the school furnishes to the board for approval or
76-27 disapproval student admission requirements for each course or
77-1 program offered by the school;
77-2 (17) the school furnishes to the board for approval or
77-3 disapproval the course lengths and curriculum content for each
77-4 course offered by the school; and
77-5 (18) the school does not owe a civil penalty under
77-6 Section 20P of this Act.
77-7 Sec. 20B. CONSUMER INFORMATION. (a) A security officer
77-8 school must submit to the board for approval, on an annual basis, a
77-9 school catalog or comparable written documents detailing the
77-10 consumer information that must be given to a prospective student
77-11 before enrollment. The school catalog or documents must include:
77-12 (1) the name and address of the school and the
77-13 school's governing body and officials;
77-14 (2) a calendar of the school year;
77-15 (3) school policies on enrollment;
77-16 (4) rules relating to absences;
77-17 (5) the school grading policy;
77-18 (6) the school's hours of operation and rules of
77-19 conduct;
77-20 (7) a schedule of the tuition and other fees assessed;
77-21 (8) the school's cancellation and refund policy;
77-22 (9) a general description of the course or courses
77-23 offered;
77-24 (10) information on entrance testing and remedial
77-25 development plans;
77-26 (11) state licensing requirements for courses intended
77-27 to result in licensing of a student;
78-1 (12) starting range and reported average salaries for
78-2 the prior year's graduates in occupations for which courses are
78-3 offered, if the information is available;
78-4 (13) the current rates of job placement and employment
78-5 of students who complete a course of training;
78-6 (14) the school policy on credit for previous
78-7 education and training;
78-8 (15) school regulations relating to incomplete grades;
78-9 (16) information on the transferability of credits
78-10 earned;
78-11 (17) the name, mailing address, and telephone number
78-12 of the board for the purpose of directing complaints to the board
78-13 and the mechanism and procedures for resolving grievances submitted
78-14 to the board;
78-15 (18) a statement that the board has information on
78-16 cost comparison with similar schools;
78-17 (19) market and job availability information, if
78-18 available;
78-19 (20) the names of the members of any advisory council
78-20 of the school and the company for which they work; and
78-21 (21) other information required by the director or
78-22 board if reasonable notice has been given by the administrator to
78-23 the school of the additional requirement.
78-24 (b) A security officer school may not accept a signed
78-25 student enrollment contract or accept a student into any school
78-26 program until at least 24 hours after the student has received the
78-27 catalog or comparable written documents required under this
79-1 section.
79-2 (c) A student must sign a receipt stating that:
79-3 (1) the catalog was received by the student before any
79-4 commitment made by the student to the school or by the school to
79-5 the student;
79-6 (2) the student was given an opportunity to discuss
79-7 the catalog with a representative of the school; and
79-8 (3) the student understands the contents and
79-9 implications of the catalog.
79-10 (d) The receipt required by Subsection (c) of this section
79-11 must be placed in the student's permanent school file and a copy of
79-12 the receipt must be delivered to the student.
79-13 Sec. 20C. COURSE LENGTH AND CURRICULUM OF SECURITY OFFICER
79-14 SCHOOL. (a) A security officer school must submit to the board
79-15 for approval the course lengths and curriculum content for each
79-16 course offered by the school. The course lengths and content may
79-17 not be implemented unless the board approves them. The course
79-18 lengths and content shall reasonably ensure that students develop
79-19 the job skills and knowledge necessary for employment.
79-20 (b) The board shall require a school to fully account for
79-21 all curriculum contents and course lengths before issuing or
79-22 renewing a license and a school that is offering course lengths
79-23 below or above industry standards may be issued a conditional
79-24 license.
79-25 Sec. 20D. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
79-26 TO SECURITY OFFICER SCHOOL. (a) The board shall set and enforce
79-27 minimum standards for completion and employment rates of courses,
80-1 based on collected data.
80-2 (b) In determining whether to renew a security officer
80-3 school license, the board shall consider the completion, placement,
80-4 and employment rates of students of the course.
80-5 (c) Before a school may begin offering a new course of study
80-6 for students, the school must show the board the opportunity for
80-7 jobs for graduates of the course and the possibility of placement
80-8 or employment.
80-9 (d) Before the board issues or renews a security officer
80-10 school license involving a school that offers or advertises a
80-11 placement service, the board may require the school to file a true
80-12 and accurate copy of the school's placement records for the
80-13 previous year.
80-14 Sec. 20E. ON-SITE INSPECTIONS. (a) The board shall conduct
80-15 on-site inspections of a security officer school to determine the
80-16 normal operating conditions of the school.
80-17 (b) The inspection required by Subsection (a) of this
80-18 section shall be unannounced.
80-19 (c) The director or a designee of the director may inspect
80-20 such things as the instructional books and records, classrooms,
80-21 dormitories, tools, equipment, and classes of a security officer
80-22 school or an applicant for a license for a school at any reasonable
80-23 time.
80-24 Sec. 20F. CONSOLIDATION OF FEES AND SECURITY OFFICER SCHOOL
80-25 ACCOUNT. (a) At the beginning of each fiscal year the board shall
80-26 collect a fee from the school for deposit in a special account in
80-27 the general revenue fund in the state treasury called the security
81-1 officer school account and to be administered by the board.
81-2 (b) The amount of the fee is determined by applying a
81-3 percentage established by the board, based on the recommendation of
81-4 the school accounts advisory board, to each school's annual gross
81-5 tuition, with consideration given to the school's size, expense of
81-6 regulation, potential for teachouts, tuition and fees refund and
81-7 recovery expense, and loan default rates and any other relevant
81-8 factors. The account shall be used for:
81-9 (1) the administration of this Act;
81-10 (2) the cost of teachouts as provided by this Act;
81-11 (3) the cost of tuition and fees recovery and the cost
81-12 of student refunds that a school has not made; and
81-13 (4) the cost of storing student records that have
81-14 become property of the state under this Act.
81-15 (c) The board may grant an exemption from payment into the
81-16 account to a small school, as determined by the director, or to a
81-17 school that does not use guaranteed student loans for tuition
81-18 revenue. A school exempt as provided for by this subsection must
81-19 pay the necessary fees for regulation, as determined by the
81-20 director, and provide a bond, certificate of deposit, or comparable
81-21 security, as determined and approved by the board, that is
81-22 sufficient to cover the cost of the school's record storage,
81-23 teachout, and tuition and fees refund and recovery exposure based
81-24 on the evidence the school submits proving its projected maximum
81-25 total unearned tuition during the period of the license.
81-26 (d) The security shall be provided by the school for the
81-27 period during which the license is issued, and the obligation of
82-1 the bond or other security must be that neither this Act nor any
82-2 rule adopted under this Act is violated by the school or any of its
82-3 officers, agents, or employees.
82-4 (e) The bond, certificate of deposit, or comparable security
82-5 shall be issued by a company authorized to do business in the
82-6 state, conditioned that the parties to the transaction shall pay
82-7 all damages or expenses that the state or any governmental
82-8 subdivision or any student or potential student sustains resulting
82-9 from a violation. The bond, certificate of deposit, or comparable
82-10 security shall be to the state to be used only for payment for the
82-11 school's teachout and tuition and fees refund due to a student or
82-12 potential student. The security must be filed with the board and
82-13 must be in such form as shall be approved by the board.
82-14 (f) Schools domiciled, or having their principal place of
82-15 business, outside the state, that engage representatives to
82-16 canvass, solicit, or contract with any person in the state are
82-17 subject to the fee and security requirements of Subsection (c) of
82-18 this section.
82-19 (g) The board shall refer all expenses incurred by the
82-20 school account in administering Subsections (b)(2) and (3) of this
82-21 section to the attorney general's office for collection. The
82-22 amounts collected shall be deposited to the account. Attorney's
82-23 fees and court costs shall be appropriated to the attorney
82-24 general's office.
82-25 (h) Interest the account earns shall be reinvested in the
82-26 account. The state treasurer shall invest the account in the same
82-27 manner as other state funds. Sufficient funds from the account and
83-1 other fees collected by the board shall be appropriated to the
83-2 board for the purpose outlined in this section. The board shall
83-3 administer claims made against the account.
83-4 (i) If a school closes, the board shall attempt to arrange
83-5 for students of the closed school to attend another security
83-6 officer school. The board shall adopt rules specifying the
83-7 circumstances under which the director may declare a school closed.
83-8 (j) The expense incurred by a security officer school in
83-9 providing training that is directly related to educating a student
83-10 who was enrolled in a closed school and placed in the school under
83-11 this section, including the applicable tuition for the period of
83-12 time for which the student has paid tuition, shall be paid in
83-13 accordance with the rules of the board.
83-14 (k) The board shall make reasonable attempts to ensure that
83-15 schools under the board's jurisdiction, including closed schools,
83-16 fulfill the refund obligation as provided by Section 20 of this
83-17 Act. If a school refuses to fulfill the school's obligation or the
83-18 school's bond is insufficient to pay the cost of the teachout and
83-19 refund expenses, the teachout or the refund may be paid from the
83-20 security officer school account except that no school owned, either
83-21 in whole or in part, by a person or corporate entity who was an
83-22 owner, in whole or in part, of a previously closed school shall be
83-23 permitted to receive compensation for a teachout under this
83-24 section.
83-25 (l) If a student cannot be placed in another school, the
83-26 student's tuition and fees shall be refunded under Section 20(q) of
83-27 this Act.
84-1 (m) If a student does not accept a place that is available
84-2 and reasonable in another school, the student's tuition and fees
84-3 shall be refunded under the refund policy maintained by the closing
84-4 school under Sections 20(l) and (m) of this Act.
84-5 (n) Attorney's fees, court costs, or damages may not be paid
84-6 from the security officer school account.
84-7 (o) The board, by rule, shall establish and assess
84-8 reasonable and necessary fees to all persons and entities licensed
84-9 under this Act to be used for the regulation of those persons and
84-10 entities licensed under this Act and to supplement the
84-11 administration and purposes outlined by this Act.
84-12 (p) The board may permit payment of any fee authorized under
84-13 this section that exceeds $1,000 to be paid by installment. The
84-14 board shall provide for appropriate interest charges and late
84-15 penalties in addition to any other remedy that is provided for by
84-16 law for the late payment of a fee installment authorized under this
84-17 section. The board may assess a reasonable service charge to be
84-18 paid by a school that pays a fee by installment in an amount not to
84-19 exceed an annual rate of 10 percent of the fee that is to be paid
84-20 by installment.
84-21 Sec. 20G. COST COMPARISONS. (a) The board shall prepare a
84-22 comparison of the cost to a student of courses of instruction or
84-23 training programs at all security officer schools maintained by
84-24 persons who hold security officer school licenses issued by the
84-25 board.
84-26 (b) The cost comparison must include for each school a
84-27 description of:
85-1 (1) average class size;
85-2 (2) facilities and equipment;
85-3 (3) employment and placement rates;
85-4 (4) length of program; and
85-5 (5) faculty qualifications.
85-6 Sec. 20H. LICENSING REQUIREMENTS DISCLOSED BY SECURITY
85-7 OFFICER SCHOOL. (a) A security officer school must disclose to
85-8 all prospective students state licensing requirements to practice
85-9 the occupation for which the student is training.
85-10 (b) A school must disclose to all prospective students the
85-11 performance of graduates from the school on the licensing
85-12 examination of the board if that information is available.
85-13 Sec. 20I. ENTRANCE REQUIREMENTS FOR SECURITY OFFICER SCHOOL;
85-14 MINIMUM SKILLS TEST. (a) The board shall approve entrance
85-15 requirements, including minimum skills testing, for students who
85-16 may be accepted for a course of study in a security officer school.
85-17 The requirements must be specific and provide that students who are
85-18 allowed to enter a program will have a reasonable chance of
85-19 completing the program.
85-20 (b) The school shall administer a standardized test to
85-21 students entering the school, if testing for minimum skills
85-22 competency is determined by the board as appropriate and necessary
85-23 to determine if remediation is needed. The test must be
85-24 administered before enrollment and must be nationally recognized as
85-25 appropriate and effective for minimum skills testing. If the test
85-26 reveals the necessity for remediation, the school must implement a
85-27 plan to encourage the student to improve in basic general education
86-1 skills.
86-2 (c) A student must achieve a successful score on the test
86-3 required by this section before the student is obligated for
86-4 tuition and fees for the vocational portion of the school's
86-5 program.
86-6 (d) The school may, in accordance with federal statutory
86-7 provisions affecting guaranteed student loan programs, on a
86-8 case-by-case basis, refuse to provide the certification statements
86-9 required for guaranteed student loan eligibility, or reduce the
86-10 determination of need for a guaranteed student loan if the school
86-11 determines that the student's expenses to be covered by the loan
86-12 and the estimated cost of attendance, can be met more appropriately
86-13 by the school, directly by the student, or by other sources.
86-14 Sec. 20J. STUDENTS IN SECURITY OFFICER SCHOOLS IN NEED OF
86-15 REMEDIAL HELP. (a) An applicant without a high school diploma or
86-16 high school equivalency certificate must pass an entrance test
86-17 approved by the board and be considered to have the ability to
86-18 benefit from the school before the school may enroll the student.
86-19 (b) A school that admits a student who does not have a high
86-20 school diploma or high school equivalency certificate must develop
86-21 and implement a plan for counseling the student on curriculum,
86-22 student aid, employment opportunities, and the remediation
86-23 necessary for the student to obtain a high school equivalency
86-24 certificate and improve in basic general education skills.
86-25 (c) The school must assist the student in obtaining the
86-26 remediation necessary for the student to pass a standardized
86-27 minimum skills test approved by the board, and the student must
87-1 pass the test before entering the final quarter of the course.
87-2 Sec. 20K. ENROLLMENT POLICIES OF SECURITY OFFICER SCHOOL.
87-3 (a) The enrollment contract of a security officer school must
87-4 contain:
87-5 (1) a disclosure that the contract is a legally
87-6 binding instrument on written acceptance of the student by the
87-7 school, unless canceled as provided by law;
87-8 (2) the school's cancellation and refund policy;
87-9 (3) the method of cancellation of the contract, the
87-10 effective date of any cancellation, and the name and address to
87-11 which the notice of cancellation should be sent or delivered;
87-12 (4) the total cost of the course including tuition and
87-13 all other charges;
87-14 (5) a notification that the fair market value of
87-15 equipment or supplies furnished to the student that the student
87-16 fails to return in a condition suitable for resale not later than
87-17 the 10th business day after the date of cancellation may be
87-18 retained by the school and deducted from any refund of the student;
87-19 (6) a statement that if a student's enrollment is
87-20 canceled for any reason, the school will notify an agency known to
87-21 the school to be providing financial aid to the student of the
87-22 cancellation not later than the 30th day after the date of
87-23 cancellation;
87-24 (7) the name and description of the courses, including
87-25 the number of hours of classroom instruction or home study lessons.
87-26 (b) An enrollment contract may not contain a wage assignment
87-27 provision or a confession of judgment clause.
88-1 (c) Immediately after a prospective student has signed an
88-2 enrollment contract, the school shall give the prospective student
88-3 a copy of the contract, and a copy shall be placed in the student's
88-4 permanent school file.
88-5 Sec. 20L. LOAN COUNSELING BY SECURITY OFFICER SCHOOL. (a)
88-6 A school shall conduct loan counseling entrance interviews with
88-7 each prospective student seeking a loan during the enrollment
88-8 process. A student borrower shall be counseled before the initial
88-9 disbursement of loan proceeds, shortly before the student completes
88-10 one-half of the course, and before the student is issued a
88-11 certificate of completion.
88-12 (b) The school's financial aid officer or counselor shall
88-13 conduct the interviews required by Subsection (a) of this section.
88-14 The interview must include a discussion of:
88-15 (1) the rights and responsibilities of the student as
88-16 a borrower;
88-17 (2) what a loan is and the importance of repayment;
88-18 (3) the total cost of the program in which the student
88-19 will be enrolled;
88-20 (4) the availability of other forms of financial aid,
88-21 grants, and part-time work;
88-22 (5) the starting range and average reported salaries
88-23 of those in the occupation for which the student will be trained,
88-24 if available; and
88-25 (6) job placement services provided by the school and
88-26 the employment rate of persons who attended the school and were
88-27 enrolled in the program in which the student is enrolled.
89-1 (c) A school approved to accept state or federal educational
89-2 loans or grants shall adopt, in addition to the provisions in this
89-3 section, measures to reduce defaults and improve borrowers'
89-4 understanding and respect for the loan repayment obligation as
89-5 provided in 34 C.F.R., Parts 668 and 682.
89-6 (d) The school must give a copy of the Texas Guaranteed
89-7 Student Loan Corporation's "Your Future" guide, or a comparable
89-8 document approved by the board, to a prospective student at a time
89-9 and in a manner that provides the student with sufficient
89-10 opportunity to read the guide or other document and discuss the
89-11 contents with the school's financial aid officer, if necessary for
89-12 understanding and clarity, before signing an enrollment contract
89-13 and before the school accepts the student in a course of study.
89-14 (e) The prospective student must sign a document stating
89-15 that the student:
89-16 (1) attended a loan counseling entrance interview; and
89-17 (2) received a copy of the "Your Future" guide or
89-18 comparable document in the time provided by Subsection (d) of this
89-19 section.
89-20 (f) A copy of the signed document required by Subsection (e)
89-21 of this section must be sent to the student, guarantor, and lender
89-22 and must be placed in the student's permanent school file.
89-23 Sec. 20M. RECORDS OF SECURITY OFFICER SCHOOL. (a) A
89-24 security officer school shall maintain permanent records for all
89-25 students enrolled, as required by the board.
89-26 (b) A school shall adopt a plan to preserve permanent
89-27 records and submit the plan to the board for approval. The plan
90-1 must:
90-2 (1) provide that at least one copy of the records will
90-3 be held in a secure depository; and
90-4 (2) designate an appropriate official to provide a
90-5 student with copies of records or transcripts on request.
90-6 (c) The school shall make the first copy of records or
90-7 transcripts at no charge to the student. The school may make a
90-8 reasonable charge to provide additional copies of records,
90-9 transcripts, or other student information.
90-10 (d) If a school closes, the records become the property of
90-11 the state.
90-12 Sec. 20N. DISPLAY OF LICENSE. (a) Every holder of a
90-13 security officer school license issued under this Act shall display
90-14 the license in a conspicuous place at the premises of the school.
90-15 (b) The board may not use the word "approval" or a variation
90-16 of that term on the license of a security officer school. The
90-17 terminology must be "licensed" to operate, or a variation of that
90-18 phrase.
90-19 Sec. 20O. BOARD ADDRESS. A security officer school shall
90-20 post on the premises of the school at a prominent and conspicuous
90-21 location the name, mailing address, and telephone number of the
90-22 board for the purpose of directing complaints to the board.
90-23 Sec. 20P. REVOCATION AND SUSPENSION. The board may deny,
90-24 suspend, or revoke a security officer school license or place the
90-25 school on probation if the license holder, school, or a
90-26 representative of the school gives a prospective student
90-27 information relating to the school that is false, fraudulent,
91-1 deceptive, substantially inaccurate, or misleading.
91-2 Sec. 20Q. FINANCIAL STABILITY. (a) A school may not
91-3 reflect unearned tuition as a current asset unless the amount shown
91-4 in current assets that reflects unearned tuition is offset by an
91-5 equal amount shown as a current liability. The school must meet
91-6 one of the following criteria in order to be determined as
91-7 financially sound and capable of fulfilling its commitments for
91-8 training:
91-9 (1) current assets must bear a relationship to current
91-10 liabilities in a ratio of at least one-to-one; or
91-11 (2) the school must have posted, or set aside in a
91-12 dedicated escrow account, a bond, certificate of deposit,
91-13 irrevocable letter of credit, or comparable security, acceptable to
91-14 the board, each made payable to the state, in an amount sufficient
91-15 to cover the school's record storage costs, teachout, and tuition
91-16 and fees refund and recovery exposure based on the evidence the
91-17 school submits proving its projected maximum total unearned tuition
91-18 during the period of time covered by the evidence of indebtedness
91-19 to the state.
91-20 (b) The school must demonstrate to the satisfaction of the
91-21 board its financial soundness and ability to fulfill its
91-22 commitments for training. If requested by the school and
91-23 administrator, the School Accounts Advisory Board shall investigate
91-24 the financial soundness of a school that does not meet the
91-25 requirements of (1) or (2) above in order to determine if the
91-26 school is capable of fulfilling its obligations under this Act.
91-27 Sec. 20R. PROHIBITIONS. A person may not:
92-1 (1) operate a security officer school without a
92-2 license or assume ownership of an existing security officer school
92-3 without obtaining a new license;
92-4 (2) solicit prospective students for a security
92-5 officer school without being licensed as required by this Act;
92-6 (3) accept contracts or enrollment applications from a
92-7 representative of a security officer school who is not registered
92-8 as required by any board rule requiring registration;
92-9 (4) use advertising designed to mislead or deceive
92-10 prospective students of a security officer school;
92-11 (5) fail to notify the board of the discontinuance of
92-12 the operation of any security officer school not later than the
92-13 72nd hour after cessation of classes or make available accurate
92-14 records as required by this Act;
92-15 (6) fail to secure and file within 30 days any
92-16 increased bond required by this Act;
92-17 (7) negotiate any promissory instrument received as
92-18 payment of tuition for a security officer school or other charge
92-19 before completion of 75 percent of the course, provided that before
92-20 that time, the instrument may be transferred by assignment to a
92-21 purchaser who is subject to any defense available against the
92-22 school named as payee;
92-23 (8) enroll a student in a security officer school who
92-24 fails to satisfy entrance requirements; or
92-25 (9) violate any provision of this Act relating to a
92-26 security officer school or a rule adopted under this Act relating
92-27 to a security officer school.
93-1 Sec. 20S. ADMINISTRATIVE PENALTY. (a) The board may impose
93-2 an administrative penalty against a person who violates Section 20R
93-3 of this Act.
93-4 (b) The penalty for a violation may be in an amount not to
93-5 exceed $10,000.
93-6 (c) The amount of the penalty shall be based on:
93-7 (1) the seriousness of the violation, including the
93-8 nature, circumstances, extent, and gravity of any prohibited acts;
93-9 (2) efforts to correct the violation; and
93-10 (3) any other matter that justice may require.
93-11 (d) A director who determines that a violation has occurred
93-12 may issue to the board a report that states the facts on which the
93-13 determination is based and the director's recommendation on the
93-14 imposition of a penalty, including a recommendation on the amount
93-15 of the penalty.
93-16 (e) Within 14 days after the date the report is issued, the
93-17 director shall give written notice of the report to the person.
93-18 The notice may be given by certified mail. The notice must include
93-19 a brief summary of the alleged violation and a statement of the
93-20 amount of the recommended penalty and must inform the person that
93-21 the person has a right to a hearing on the occurrence of the
93-22 violation, the amount of the penalty, or both the occurrence of the
93-23 violation and the amount of the penalty.
93-24 (f) Within 20 days after the date the person receives the
93-25 notice, the person in writing may accept the determination and
93-26 recommended penalty of the director or may make a written request
93-27 for a hearing on the occurrence of the violation, the amount of the
94-1 penalty, or both the occurrence of the violation and the amount of
94-2 the penalty.
94-3 (g) If the person accepts the determination and recommended
94-4 penalty of the director, the board by order shall approve the
94-5 determination and impose the recommended penalty.
94-6 (h) If the person requests a hearing or fails to respond
94-7 timely to the notice, the director shall set a hearing and give
94-8 notice of the hearing to the person. The hearing shall be held by
94-9 an administrative law judge of the State Office of Administrative
94-10 Hearings. The administrative law judge shall make findings of fact
94-11 and conclusions of law and promptly issue to the board a proposal
94-12 for a decision about the occurrence of the violation and the amount
94-13 of a proposed penalty. Based on the findings of fact, conclusions
94-14 of law, and proposal for a decision, the board by order may find
94-15 that a violation has occurred and impose a penalty or may find that
94-16 no violation occurred.
94-17 (i) The notice of the board's order given to the person
94-18 under the Administrative Procedure and Texas Register Act (Article
94-19 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
94-20 amendments must include a statement of the right of the person to
94-21 judicial review of the order.
94-22 (j) Within 30 days after the date the board's order is final
94-23 as provided by Section 16(c), Administrative Procedure and Texas
94-24 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
94-25 its subsequent amendments, the person shall:
94-26 (1) pay the amount of the penalty;
94-27 (2) pay the amount of the penalty and file a petition
95-1 for judicial review contesting the occurrence of the violation, the
95-2 amount of the penalty, or both the occurrence of the violation and
95-3 the amount of the penalty; or
95-4 (3) without paying the amount of the penalty, file a
95-5 petition for judicial review contesting the occurrence of the
95-6 violation, the amount of the penalty, or both the occurrence of the
95-7 violation and the amount of the penalty.
95-8 (k) Within the 30-day period, a person who acts under
95-9 Subsection (j)(3) of this section may:
95-10 (1) stay enforcement of the penalty by:
95-11 (A) paying the amount of the penalty to the
95-12 court for placement in an escrow account; or
95-13 (B) giving to the court a supersedeas bond that
95-14 is approved by the court for the amount of the penalty and that is
95-15 effective until all judicial review of the board's order is final;
95-16 or
95-17 (2) request the court to stay enforcement of the
95-18 penalty by:
95-19 (A) filing with the court a sworn affidavit of
95-20 the person stating that the person is financially unable to pay the
95-21 amount of the penalty and is financially unable to give the
95-22 supersedeas bond; and
95-23 (B) giving a copy of the affidavit to the
95-24 director by certified mail.
95-25 (l) A director who receives a copy of an affidavit under
95-26 Subsection (k)(2) of this section may file with the court, within
95-27 five days after the date the copy is received, a contest to the
96-1 affidavit. The court shall hold a hearing on the facts alleged in
96-2 the affidavit as soon as practicable and shall stay the enforcement
96-3 of the penalty on finding that the alleged facts are true. The
96-4 person who files an affidavit has the burden of proving that the
96-5 person is financially unable to pay the amount of the penalty and
96-6 to give a supersedeas bond.
96-7 (m) If the person does not pay the amount of the penalty and
96-8 the enforcement of the penalty is not stayed, the director may
96-9 refer the matter to the attorney general for collection of the
96-10 amount of the penalty.
96-11 (n) Judicial review of the order of the board:
96-12 (1) is instituted by filing a petition as provided by
96-13 Section 19, Administrative Procedure and Texas Register Act
96-14 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
96-15 subsequent amendments; and
96-16 (2) is under the substantial evidence rule.
96-17 (o) If the court sustains the occurrence of the violation,
96-18 the court may uphold or reduce the amount of the penalty and order
96-19 the person to pay the full or reduced amount of the penalty. If
96-20 the court does not sustain the occurrence of the violation, the
96-21 court shall order that no penalty is owed.
96-22 (p) When the judgment of the court becomes final, the court
96-23 shall proceed under this subsection. If the person paid the amount
96-24 of the penalty and if that amount is reduced or is not upheld by
96-25 the court, the court shall order that the appropriate amount plus
96-26 accrued interest be remitted to the person. The rate of the
96-27 interest is the rate charged on loans to depository institutions by
97-1 the New York Federal Reserve Bank, and the interest shall be paid
97-2 for the period beginning on the date the penalty was paid and
97-3 ending on the date the penalty is remitted. If the person gave a
97-4 supersedeas bond and if the amount of the penalty is not upheld by
97-5 the court, the court shall order the release of the bond. If the
97-6 person gave a supersedeas bond and if the amount of the penalty is
97-7 reduced, the court shall order the release of the bond after the
97-8 person pays the amount.
97-9 (q) A penalty collected under this section shall be remitted
97-10 to the comptroller for deposit in the general revenue fund.
97-11 (r) All proceedings under this section are subject to the
97-12 Administrative Procedure and Texas Register Act (Article 6252-13a,
97-13 Vernon's Texas Civil Statutes) and its subsequent amendments.
97-14 Sec. 20T. CIVIL PENALTY. A security officer school that
97-15 violates this Act or a rule adopted under this Act is liable for a
97-16 civil penalty in addition to any injunctive relief or other remedy
97-17 provided by law. The civil penalty may not exceed $1,000 a day for
97-18 each violation. The attorney general, at the request of the board,
97-19 may bring a civil action to collect a civil penalty under this
97-20 subsection. Civil penalties recovered in a suit brought under this
97-21 subsection shall be deposited in the state treasury to the credit
97-22 of the general revenue fund.
97-23 Sec. 20U. CRIMINAL PENALTIES. (a) A person commits an
97-24 offense if the person fails to comply with Section 20 of this Act.
97-25 Except as provided by Subsection (b) of this section, an offense
97-26 under this section is a Class A misdemeanor.
97-27 (b) A person commits an offense if the person intentionally
98-1 or knowingly uses for personal benefit funds in an amount greater
98-2 than $10,000 that are due as student refunds under Section 20 of
98-3 this Act. An offense under this subsection is a felony of the
98-4 third degree.
98-5 SECTION 2.03. Section 30, Private Investigators and Private
98-6 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
98-7 Statutes), is amended by adding Subsections (c) and (d) to read as
98-8 follows:
98-9 (c) A security officer school, the representative of a
98-10 school, or a recruiter for the school may not advertise or
98-11 represent, in writing or orally, that a school is approved or
98-12 accredited by the state. Those entities or persons may advertise
98-13 that the school has been licensed by the state.
98-14 (d) A school, representative of a school, or recruiter of a
98-15 school may not make or cause to be made a statement or
98-16 representation, written, oral, or visual, offering or publicizing a
98-17 course, program, or school, if the school, representative, or
98-18 recruiter knew or reasonably should have known that the statement
98-19 or representation was false, fraudulent, deceptive, substantially
98-20 inaccurate, or misleading.
98-21 SECTION 2.04. Section 50A, Private Investigators and Private
98-22 Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
98-23 Statutes), is amended by adding Subsection (c) to read as follows:
98-24 (c) The board shall prepare information of public interest
98-25 describing the functions of the board and the procedures by which
98-26 complaints are filed with and resolved by the board against a
98-27 security officer school. The board shall make the information
99-1 available to the public and appropriate state agencies.
99-2 SECTION 2.05. Any balance remaining in funds designated for
99-3 the purposes outlined in this Act shall be transferred to the
99-4 Security Officer School Account in the General Revenue Fund on the
99-5 effective date of this Act.
99-6 PART 3. MASSAGE SCHOOLS
99-7 SECTION 3.01. Section 1(9), Chapter 752, Acts of the 69th
99-8 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
99-9 Civil Statutes), is amended to read as follows:
99-10 (9) "Massage school" means a person <an entity or
99-11 organization with at least two instructors> that teaches, at a
99-12 minimum, the course of instruction or any part of the course of
99-13 instruction required for registration as a massage therapist under
99-14 this Act.
99-15 SECTION 3.02. Section 2(b), Chapter 752, Acts of the 69th
99-16 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
99-17 Civil Statutes), is amended to read as follows:
99-18 (b) An individual who registers as a massage therapist under
99-19 this Act must present evidence satisfactory to the board that the
99-20 person:
99-21 (1) has satisfactorily completed massage therapy
99-22 studies in a 300 hour, supervised course of instruction provided by
99-23 a massage <therapy instructor, by a massage> school registered by
99-24 the department, by a state approved educational institution, or by
99-25 any combination of educational institutions <instructors> or
99-26 schools, in which 125 hours are dedicated to the study of Swedish
99-27 massage therapy techniques taught by a massage therapy instructor,
100-1 50 hours to the study of anatomy, 25 hours to the study of
100-2 physiology, 15 hours to the study of hydrotherapy, 15 hours to the
100-3 study of business practices and professional ethics standards, and
100-4 20 hours to the study of health and hygiene, and 50 hours to an
100-5 internship program;
100-6 (2) is registered as a massage therapist in another
100-7 state or country that has and maintains standards and requirements
100-8 of practice and licensing or registration that substantially
100-9 conform to those of this state, as determined by the department; or
100-10 (3) has practiced massage therapy as a profession for
100-11 not less than five years in another state or country that does not
100-12 have or maintain standards and requirements of practice and
100-13 licensing or registration that substantially conform to those of
100-14 this state, as determined by the department.
100-15 SECTION 3.03. Section 2A, Chapter 752, Acts of the 69th
100-16 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
100-17 Civil Statutes), is amended by amending Subsections (a) and (b) and
100-18 adding Subsection (n) to read as follows:
100-19 (a) A massage school that offers, at a minimum, the course
100-20 of instruction or any part of the course of instruction required
100-21 for registration as a massage therapist must register with the
100-22 department. A massage school must meet the minimum standards of
100-23 operation established by board rule. The registration must include
100-24 a statement of any final convictions of the owners, school
100-25 directors, recruiters, instructional faculty, or other selected
100-26 personnel of the massage school as determined by the department.
100-27 The board may obtain criminal history records of school directors
101-1 or instructional faculty from any law enforcement agency, including
101-2 the United States Department of Justice, the Department of Public
101-3 Safety of the State of Texas, the Texas Department of Criminal
101-4 Justice, or the police department of a municipality. The
101-5 administrator may deny, revoke, or disapprove the application for,
101-6 or existing license, registration, or approval of a person who has
101-7 been convicted of, entered a plea of nolo contendere, or guilty to,
101-8 or received deferred adjudication for, a felony or misdemeanor
101-9 offense for which a refusal may be issued under Article 6252-13c,
101-10 Vernon's Texas Civil Statutes.
101-11 (b) A massage therapy instructor must register with the
101-12 department as provided by this Act. The registration must state
101-13 the education and experience level of the applicant in all courses
101-14 or programs that the applicant will teach or instruct and be on a
101-15 form prescribed by the department. The department shall review a
101-16 registration for competency, consistency, and the overall quality
101-17 of the applicant.
101-18 (n) The department shall determine that an applicant for
101-19 massage school registration is financially sound and capable of
101-20 fulfilling its commitments for training before granting the
101-21 registration.
101-22 SECTION 3.04. Section 5, Chapter 752, Acts of the 69th
101-23 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
101-24 Civil Statutes), is amended by adding Subsections (c)-(e) to read
101-25 as follows:
101-26 (c) The department may not adopt rules that restrict
101-27 advertising by a massage school except to prohibit false,
102-1 misleading, or deceptive advertising practices. The rules may not
102-2 restrict:
102-3 (1) the use of an advertising medium;
102-4 (2) the size or duration of an advertisement; or
102-5 (3) advertisement under a trade name.
102-6 (d) A school, the representative of a school, or a recruiter
102-7 for the school may not advertise or represent, in writing or
102-8 orally, that a school is approved or accredited by the state.
102-9 Those entities or persons may advertise that the school has been
102-10 registered by the state.
102-11 (e) A school, representative of a school, or recruiter of a
102-12 school may not make or cause to be made a statement or
102-13 representation, written, oral, or visual, offering or publicizing a
102-14 course, program, or school, if the school, representative, or
102-15 recruiter knew or reasonably should have known that the statement
102-16 or representation was false, fraudulent, deceptive, substantially
102-17 inaccurate, or misleading.
102-18 SECTION 3.05. Section 7(b), Chapter 752, Acts of the 69th
102-19 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
102-20 Civil Statutes), is amended to read as follows:
102-21 (b) The department shall administer this Act. The
102-22 department and the Central Education Agency by agreement may
102-23 provide for the agency to assist the department in administering
102-24 the provisions of this Act relating to massage schools and massage
102-25 therapy instructors.
102-26 SECTION 3.06. Section 10, Chapter 752, Acts of the 69th
102-27 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
103-1 Civil Statutes), is amended by adding Subsection (g) to read as
103-2 follows:
103-3 (g) The department may not use the word "approval" or a
103-4 variation of that term on the certificate of a massage school. The
103-5 terminology must be "registered" or a variation of that phrase, and
103-6 a massage school must display the certificate in a conspicuous
103-7 place.
103-8 SECTION 3.07. Section 11, Chapter 752, Acts of the 69th
103-9 Legislature, Regular Session, 1985 (Article 4512k, Vernon's Texas
103-10 Civil Statutes), is amended by adding Subsection (e) to read as
103-11 follows:
103-12 (e) The department may deny, suspend, or revoke the
103-13 registration of a massage school or place the school on probation
103-14 if the certificate holder, school, or a representative of the
103-15 school gives a prospective student information relating to the
103-16 school that is false, fraudulent, deceptive, substantially
103-17 inaccurate, or misleading.
103-18 SECTION 3.08. Chapter 752, Acts of the 69th Legislature,
103-19 Regular Session, 1985 (Article 4512k, Vernon's Texas Civil
103-20 Statutes), is amended by adding Sections 20-39 to read as follows:
103-21 Sec. 20. CRITERIA FOR REGISTRATION AS MASSAGE SCHOOL.
103-22 Before the department may approve the application of a person to be
103-23 registered as a massage school, the department must find, on
103-24 investigation at the premises of the school, that the school meets
103-25 the following criteria:
103-26 (1) the courses, curriculum, and instruction are of a
103-27 quality, content, and length as may reasonably and adequately
104-1 achieve the stated objective for which the courses, curriculum, or
104-2 instruction are offered;
104-3 (2) there is in the school adequate space, equipment,
104-4 instructional material, and instructor personnel to provide
104-5 training of good quality;
104-6 (3) educational and experience qualifications of
104-7 directors, administrators, and instructors are adequate;
104-8 (4) the school maintains a written record of the
104-9 previous education and training of the applicant student and
104-10 clearly indicates that appropriate credit has been given by the
104-11 school for previous education and training in accordance with
104-12 department rules, with the new training period shortened where
104-13 warranted through use of appropriate skills or achievement tests
104-14 and the student notified;
104-15 (5) a copy of the course outline; schedule of tuition,
104-16 fees, refund policy, and other charges; regulations pertaining to
104-17 absence, grading policy, and rules of operation and conduct;
104-18 regulations pertaining to incomplete grades; the name, mailing
104-19 address, and telephone number of the department for the purpose of
104-20 directing complaints to the department; the current rates of job
104-21 placement and employment of students issued a certificate of
104-22 completion, if available; and notification of the availability of
104-23 the cost comparison information prepared under Section 27 of this
104-24 Act will be furnished to the student in the catalog before
104-25 enrollment;
104-26 (6) on completion of training, the student is given a
104-27 certificate by the school indicating the course and that training
105-1 was satisfactorily completed;
105-2 (7) adequate records as required by the department are
105-3 kept to show attendance and progress or grades, and satisfactory
105-4 standards relating to attendance, progress, and conduct are
105-5 enforced;
105-6 (8) the school complies with all local, city, county,
105-7 municipal, state, and federal regulations; the department may
105-8 require evidence of compliance as is necessary;
105-9 (9) the school is financially sound and capable of
105-10 fulfilling its commitments for training;
105-11 (10) the school's administrators, directors, owners,
105-12 and instructors are of good reputation and character;
105-13 (11) the school has, maintains, and publishes in its
105-14 catalog and enrollment contract the proper policy for the refund of
105-15 the unused portion of tuition, fees, and other charges in the event
105-16 the student enrolled by the school fails to take the course or
105-17 withdraws or is discontinued from the course at any time before
105-18 completion;
105-19 (12) the school does not use erroneous or misleading
105-20 advertising, either by actual statement, omission, or intimation as
105-21 determined by the commission;
105-22 (13) additional criteria as may be required by the
105-23 department;
105-24 (14) the school does not use a name like or similar to
105-25 an existing tax-supported school in the same area;
105-26 (15) the school furnishes to the department the
105-27 current rates of students who receive a certificate of completion
106-1 and of job placement and employment of students issued a
106-2 certificate of completion, if available;
106-3 (16) the school furnishes to the department for
106-4 approval or disapproval student admission requirements for each
106-5 course or program offered by the school;
106-6 (17) the school furnishes to the department for
106-7 approval or disapproval the course lengths and curriculum content
106-8 for each course offered by the school that meets the educational
106-9 requirements and curriculum established by the department;
106-10 (18) the physical facility used by the massage school
106-11 meets the requirements of the department which shall take into
106-12 consideration whether a school is based at a specific location or
106-13 at various locations around the state; and
106-14 (19) the school does not owe a civil penalty under
106-15 Section 13 of this Act.
106-16 Sec. 21. CONSUMER INFORMATION. (a) A massage school must
106-17 submit to the department for approval, on an annual basis, a school
106-18 catalog or comparable written documents detailing the consumer
106-19 information that must be given to a prospective student before
106-20 enrollment. The school catalog or documents must include:
106-21 (1) the name and address of the school and the
106-22 school's governing body and officials;
106-23 (2) a calendar of the school year;
106-24 (3) school policies on enrollment;
106-25 (4) rules relating to absences;
106-26 (5) the school grading policy;
106-27 (6) the school's hours of operation and rules of
107-1 conduct;
107-2 (7) a schedule of the tuition and other fees assessed;
107-3 (8) the school's cancellation and refund policy;
107-4 (9) a general description of the course or courses
107-5 offered;
107-6 (10) information on entrance testing and remedial
107-7 development plans;
107-8 (11) state licensing requirements for courses intended
107-9 to result in licensing of the student;
107-10 (12) starting range and reported average salaries for
107-11 the prior year's graduates in occupations for which courses are
107-12 offered, if the information is available;
107-13 (13) the current rates of job placement and employment
107-14 of students who complete a course of training, if available;
107-15 (14) the department policy on credit for previous
107-16 education and training;
107-17 (15) school regulations relating to incomplete grades;
107-18 (16) information on the transferability of credits
107-19 earned;
107-20 (17) the name, mailing address, and telephone number
107-21 of the department for the purpose of directing complaints to the
107-22 department and the mechanism and procedures for resolving
107-23 grievances submitted to the department;
107-24 (18) a statement that the department has information
107-25 on cost comparison with similar schools;
107-26 (19) market and job availability information, if
107-27 available;
108-1 (20) the names of the members of any advisory council
108-2 of the school and the company for which they work; and
108-3 (21) other information required by the department if
108-4 reasonable notice has been given by the department to the school of
108-5 the additional requirements.
108-6 (b) A massage school may not accept a signed student
108-7 enrollment contract or accept a student into any school program
108-8 until at least 24 hours after the student has received the catalog
108-9 or comparable written documents required under this section.
108-10 (c) A student must sign a receipt stating that:
108-11 (1) the catalog was received by the student before any
108-12 commitment made by the student to the school or by the school to
108-13 the student;
108-14 (2) the student was given an opportunity to discuss
108-15 the catalog with a representative of the school; and
108-16 (3) the student understands the contents and
108-17 implications of the catalog.
108-18 (d) The receipt required by Subsection (c) of this section
108-19 must be placed in the student's permanent school file and a copy of
108-20 the receipt must be delivered to the student.
108-21 Sec. 22. COURSE LENGTH AND CURRICULUM OF MASSAGE SCHOOL.
108-22 (a) A massage school must submit to the department for approval
108-23 the course lengths and curriculum content for each course offered
108-24 by the school that meets the educational requirements and
108-25 curriculum established by the department. The course lengths and
108-26 content may not be implemented unless the department approves them.
108-27 The course lengths and content shall reasonably ensure that
109-1 students develop the job skills and knowledge necessary for
109-2 employment.
109-3 (b) The department shall require a school to fully account
109-4 for all curriculum contents and course lengths before issuing or
109-5 renewing a license and a school that is offering course lengths
109-6 below or above industry standards may be issued a conditional
109-7 registration.
109-8 Sec. 23. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
109-9 TO MASSAGE SCHOOL. (a) The department shall set and enforce
109-10 minimum standards for completion and employment rates of courses
109-11 based on collected data.
109-12 (b) In determining whether to renew a massage school's
109-13 registration, the department shall consider the completion,
109-14 placement, and employment rates of students of the courses.
109-15 (c) Before a school may begin offering a new course of study
109-16 for students the school must show the department the opportunity
109-17 for jobs for graduates of the course and the possibility of
109-18 placement or employment except where the new course is offered to
109-19 credentialed professionals for professional continuing education.
109-20 (d) Before the department issues or renews a massage school
109-21 registration involving a school that offers or advertises a
109-22 placement service, the department may require the school to file a
109-23 true and accurate copy of the school's placement records for the
109-24 previous year.
109-25 Sec. 24. ON-SITE INSPECTIONS. (a) The department shall
109-26 conduct on-site inspections of a massage school to determine the
109-27 normal operating conditions of the school.
110-1 (b) The inspection required by Subsection (a) of this
110-2 section shall be unannounced.
110-3 (c) The commissioner or a designee of the commissioner may
110-4 inspect such things as the instructional books and records,
110-5 classrooms, dormitories, tools, equipment, and classes of a massage
110-6 school or an applicant for a license for a school at any reasonable
110-7 time.
110-8 Sec. 25. REFUND. (a) Each registered massage school must
110-9 maintain a cancellation and settlement policy that provides a full
110-10 refund of all money paid by a student if:
110-11 (1) the student cancels the enrollment agreement or
110-12 contract not later than midnight of the third day after the date on
110-13 which the agreement or contract is signed by the prospective
110-14 student, excluding Saturdays, Sundays, and legal holidays; or
110-15 (2) the enrollment of the student was procured as a
110-16 result of a misrepresentation made in the advertising or
110-17 promotional materials of the school or a representation by an owner
110-18 or representative of the school.
110-19 (b) Each registered massage school must maintain a refund
110-20 policy for the refund of the unused part of tuition, fees, and
110-21 other charges assessed a student if the student, at the expiration
110-22 of the cancellation period established under Subsection (a) of this
110-23 section, terminates enrollment or is terminated by the school, as
110-24 provided by this subsection. The refund policy must provide that:
110-25 (1) a refund is based on the period of the student's
110-26 enrollment, computed on the basis of course time expressed in clock
110-27 hours;
111-1 (2) the effective date of the termination for payment
111-2 of a refund is the earliest of:
111-3 (A) the last date of attendance, if the student
111-4 is terminated for failure to satisfy a school attendance, grade, or
111-5 work requirement;
111-6 (B) the date of receipt by the school of written
111-7 notice of withdrawal by the student;
111-8 (C) the 10th consecutive school day the student
111-9 has been absent, unless any of the absences are excused by the
111-10 school; or
111-11 (D) the date the student fails to return, as
111-12 scheduled, from a leave of absence; and
111-13 (3) if tuition is collected before beginning the
111-14 course of training, and if, after the expiration of the
111-15 cancellation period, the student does not begin the course of
111-16 training, the school may retain not more than $100.
111-17 (c) If a student who begins a course of training that is
111-18 scheduled to run not more than 12 months withdraws from the course
111-19 or is terminated from the course by the school, the school may
111-20 retain $100 in tuition and fees paid by that student and is not
111-21 obligated to refund any additional outstanding tuition if the
111-22 student withdraws or is terminated during the last quarter of the
111-23 course. If the student withdraws or is terminated before the last
111-24 quarter of the course begins, the school shall refund the following
111-25 percentages of any outstanding tuition:
111-26 (1) for withdrawal or termination occurring during the
111-27 first week or first one-tenth of the course, whichever is less, 90
112-1 percent;
112-2 (2) for withdrawal or termination occurring after the
112-3 first week or first one-tenth of the course, whichever is less, but
112-4 within the first three weeks of the course, 80 percent;
112-5 (3) for withdrawal or termination occurring after the
112-6 first three weeks of the course but not later than the last date of
112-7 the first quarter of the course, 75 percent;
112-8 (4) for withdrawal or termination occurring during the
112-9 second quarter of the course, 50 percent; and
112-10 (5) for withdrawal or termination occurring during the
112-11 third quarter of the course, 10 percent.
112-12 (d) A refund owed under this section must be paid not later
112-13 than the 60th day after the date on which the student becomes
112-14 eligible for the refund, as determined under Subsection (b) of this
112-15 section.
112-16 (e) If a refund is not made within the period required by
112-17 this section, the school shall pay, as a penalty, interest on the
112-18 refund for the interval beginning with the first day following the
112-19 expiration of the refund period and ending with the day immediately
112-20 preceding the date the refund is made. If the refund is made to a
112-21 lending institution, the interest shall also be paid to that
112-22 institution and applied against the student's loan. The board with
112-23 the advice of the advisory council annually shall establish the
112-24 level of interest at a level sufficient to provide a deterrent to
112-25 the retention of student funds. The board may exempt a school from
112-26 the payment of the interest if the school makes a good faith effort
112-27 to refund the tuition but is unable to locate the student. The
113-1 school shall provide to the department on request documentation of
113-2 the effort to locate the student.
113-3 (f) A massage school shall record a grade of "incomplete"
113-4 for a student who withdraws but is not entitled to a refund under
113-5 Subsection (c) of this section if the student requests the grade at
113-6 the time the student withdraws and the student withdraws for an
113-7 appropriate reason unrelated to the student's academic status. A
113-8 student who receives a grade of incomplete may reenroll in the
113-9 program during the 12-month period following the date the student
113-10 withdraws and may complete those incomplete subjects without
113-11 payment of additional tuition.
113-12 (g) If a course of instruction is discontinued by the school
113-13 and this prevents the student from completing the course, all
113-14 tuition and fees paid are due and refundable.
113-15 (h) Refunds under this section shall be applied:
113-16 (1) first, to the repayment of federal student loans,
113-17 awards, and other Title IV student assistance, as prescribed by the
113-18 Student Consumer Requirements in the U.S. Department of Education
113-19 Higher Education Amendments of 1992;
113-20 (2) second, to the repayment of other government
113-21 loans;
113-22 (3) third, to the repayment of other financial loans;
113-23 and
113-24 (4) last, to the student's personal tuitional
113-25 expenditures.
113-26 (i) Not later than the 30th day after the date on which a
113-27 refund is due to a student who has received a student loan, the
114-1 school shall notify the guaranty agency and the lender of the
114-2 required refund and any refund previously made. The guaranty
114-3 agency and the lender shall notify the student and the school if
114-4 the student's loan has been transferred to another holder.
114-5 (j) The failure of a school or a person to pay a tuition
114-6 refund as required by this section is a deceptive trade practice
114-7 under Subchapter E, Chapter 17, Business & Commerce Code, and its
114-8 subsequent amendments.
114-9 Sec. 26. CONSOLIDATION OF FEES AND MASSAGE SCHOOL ACCOUNT.
114-10 (a) At the beginning of each fiscal year the department shall
114-11 collect a fee from a school for deposit in a special account in the
114-12 general revenue fund in the state treasury called the massage
114-13 school account and to be administered by the department.
114-14 (b) The amount of the fee is determined by applying a
114-15 percentage established by the department, based on the
114-16 recommendation of the school accounts advisory board, to each
114-17 school's annual gross tuition, with consideration given to the
114-18 school's size, expense of regulation, potential for teachouts,
114-19 tuition and fees refund and recovery exposure, and loan default
114-20 rates and any other relevant factors. The account shall be used
114-21 for:
114-22 (1) the administration of this Act;
114-23 (2) the cost of teachouts as provided by this Act;
114-24 (3) the cost of tuition and fees recovery and the cost
114-25 of student refunds that a school has not made; and
114-26 (4) the cost of storing student records that have
114-27 become property of the state under this Act.
115-1 (c) The department may grant an exemption from payment into
115-2 the account to a small school, as determined by the department, or
115-3 to a school that does not use guaranteed student loans for tuition
115-4 revenue. A school exempt as provided for by this subsection must
115-5 pay the necessary fees for regulation, as determined by the
115-6 department, and provide a bond, certificate of deposit, or
115-7 comparable security, as determined and approved by the department,
115-8 that is sufficient to cover the cost of the school's record storage
115-9 costs, teachout, and tuition and fees refund and recovery exposure
115-10 based on the evidence the school submits proving its projected
115-11 maximum total unearned tuition during the period of registration.
115-12 (d) The security shall be provided by the school for the
115-13 period during which the registration is issued, and the obligation
115-14 of the bond or other security must be that neither this Act nor any
115-15 rule adopted under this Act is violated by the school or any of its
115-16 officers, agents, or employees.
115-17 (e) The bond, certificate of deposit, or comparable security
115-18 must be issued by a company authorized to do business in the state,
115-19 conditioned that the parties to the transaction shall pay all
115-20 damages or expenses that the state or any governmental subdivision
115-21 or any student or potential student sustains resulting from a
115-22 violation. The bond, certificate of deposit, or comparable
115-23 security shall be to the state to be used only for payment for the
115-24 school's teachout and tuition and fees refund due to a student or
115-25 potential student. The security must be filed with the department
115-26 and must be in such form as shall be approved by the department.
115-27 (f) Schools domiciled, or having their principal place of
116-1 business, outside the state, that engage representatives to
116-2 canvass, solicit, or contract with any person in the state are
116-3 subject to the fee and security requirements of Subsection (c) of
116-4 this section.
116-5 (g) The department shall refer all expenses incurred by the
116-6 school account in administering Subsections (b)(2) and (3) of this
116-7 section to the attorney general's office for collection. The
116-8 amounts collected shall be deposited to the account. Attorney's
116-9 fees and court costs shall be appropriated to the attorney
116-10 general's office.
116-11 (h) Interest the account earns shall be reinvested in the
116-12 account. The state treasurer shall invest the account in the same
116-13 manner as other state funds. Sufficient funds from the account and
116-14 fees collected by the department from massage instructors, massage
116-15 establishments, and massage schools shall be appropriated to the
116-16 department for the purpose outlined in this section. The
116-17 department shall administer claims made against the account.
116-18 (i) If a school closes, the department shall attempt to
116-19 arrange for students of the closed school to attend another massage
116-20 school. The department shall adopt rules specifying the
116-21 circumstances under which a school is considered closed.
116-22 (j) The expense incurred by a massage school in providing
116-23 training that is directly related to educating a student who was
116-24 enrolled in a closed school and placed in the school under this
116-25 section, including the applicable tuition for the period of time
116-26 for which the student has paid tuition, shall be paid in accordance
116-27 with rules of the department.
117-1 (k) The department shall make reasonable attempts to ensure
117-2 that schools under the department's jurisdiction, including closed
117-3 schools, fulfill the refund obligation as provided by Section 25 of
117-4 this Act. If a school refuses to fulfill the school's obligation
117-5 or the school's bond is insufficient to pay the cost of the
117-6 teachout and refund expenses, the teachout or the refund may be
117-7 paid from the massage school account except that no school owned,
117-8 either in whole or in part, by a person or corporate entity who was
117-9 an owner, in whole or in part, of a previously closed school shall
117-10 be permitted to receive compensation for a teachout under this
117-11 section.
117-12 (l) If a student cannot be placed in another school, the
117-13 student's tuition and fees shall be refunded under Section 25(g) of
117-14 this Act.
117-15 (m) If a student does not accept a place that is available
117-16 and reasonable in another school, the student's tuition and fees
117-17 shall be refunded under the refund policy maintained by the closing
117-18 school under Sections 25(b) and (c) of this Act.
117-19 (n) Attorney's fees, court costs, or damages may not be paid
117-20 from the massage school account.
117-21 (o) The department by rule shall establish and assess
117-22 reasonable and necessary fees to all persons and entities licensed
117-23 under this Act to be used for the regulation of those persons and
117-24 entities licensed under this Act and to supplement the
117-25 administration and purposes outlined by this Act.
117-26 (p) The department may permit payment of any fee authorized
117-27 under this section that exceeds $1,000 to be paid by installment.
118-1 The department shall provide for appropriate interest charges and
118-2 late penalties in addition to any other remedy that is provided for
118-3 by law for the late payment of a fee installment authorized under
118-4 this section. The department may assess a reasonable service
118-5 charge to be paid by a school that pays a fee by installment in an
118-6 amount not to exceed an annual rate of 10 percent of the fee that
118-7 is to be paid by installment.
118-8 Sec. 27. COST COMPARISONS. (a) The department shall
118-9 prepare a comparison of the cost to a student of courses of
118-10 instruction or training programs at all registered massage schools.
118-11 (b) The cost comparison must include for each school a
118-12 description of:
118-13 (1) average class size;
118-14 (2) facilities and equipment;
118-15 (3) employment and placement rates, if available;
118-16 (4) length of program; and
118-17 (5) faculty qualifications.
118-18 Sec. 28. LICENSING REQUIREMENTS DISCLOSED BY MASSAGE SCHOOL.
118-19 (a) A massage school must disclose to all prospective students
118-20 state requirements to practice the occupation for which the student
118-21 is training.
118-22 (b) A school must disclose to all prospective students the
118-23 performance of graduates from the school on the licensing
118-24 examination of the department if that information is available.
118-25 Sec. 29. ENTRANCE REQUIREMENTS FOR MASSAGE SCHOOL; MINIMUM
118-26 SKILLS TEST. (a) The department shall approve entrance
118-27 requirements, including minimum skills testing, for students who
119-1 may be accepted for a course of study in a massage school. The
119-2 requirements must be specific and provide that students who are
119-3 allowed to enter a course will have a reasonable chance of
119-4 completing the program.
119-5 (b) The school shall administer a standardized test to
119-6 students entering the school, if testing for minimum skill
119-7 competency is determined by the department as appropriate and
119-8 necessary to determine if remediation is needed. The test must be
119-9 administered before enrollment and must be nationally recognized as
119-10 appropriate and effective for minimum skills testing. If the test
119-11 reveals the necessity for remediation, the school must implement a
119-12 plan to encourage the student to improve in basic general education
119-13 skills.
119-14 (c) A student must achieve a successful score on the test
119-15 required by this section before the student is obligated for
119-16 tuition and fees for the vocational portion of the school's
119-17 program.
119-18 (d) The school may, in accordance with federal statutory
119-19 provisions affecting guaranteed student loan programs, on a
119-20 case-by-case basis, refuse to provide the certification statements
119-21 required for guaranteed student loan eligibility or reduce the
119-22 determination of need for a guaranteed student loan if the school
119-23 determines that the student's expenses to be covered by the loan
119-24 and the estimated cost of attendance can be met more appropriately
119-25 by the school, directly by the student, or by other sources.
119-26 Sec. 30. STUDENTS IN MASSAGE SCHOOLS IN NEED OF REMEDIAL
119-27 HELP. (a) An applicant without a high school diploma or high
120-1 school equivalency certificate must pass an entrance test approved
120-2 by the department and be considered to have the ability to benefit
120-3 from the school before the school may enroll the student.
120-4 (b) A school that admits a student who does not have a high
120-5 school diploma or high school equivalency certificate must develop
120-6 and implement a plan for counseling the student on curriculum,
120-7 student aid, employment opportunities, and the remediation
120-8 necessary for the student to obtain a high school equivalency
120-9 certificate and improve in basic general education skills.
120-10 (c) The school must assist the student in obtaining the
120-11 remediation necessary for the student to pass a standardized
120-12 minimum skills test, approved by the department, and the student
120-13 must pass the test before entering the final quarter of the course.
120-14 Sec. 31. ENROLLMENT POLICIES OF MASSAGE SCHOOL. (a) The
120-15 enrollment contract of a massage school must contain:
120-16 (1) a disclosure that the contract is a legally
120-17 binding instrument on written acceptance of the student by the
120-18 school, unless canceled as provided by law;
120-19 (2) the school's cancellation and refund policy;
120-20 (3) the method of cancellation of the contract, the
120-21 effective date of any cancellation, and the name and address to
120-22 which the notice of cancellation should be sent or delivered;
120-23 (4) the total cost of the course including tuition and
120-24 all other charges;
120-25 (5) a notification that the fair market value of
120-26 equipment or supplies furnished to the student that the student
120-27 fails to return in a condition suitable for resale not later than
121-1 the 10th business day after the date of cancellation may be
121-2 retained by the school and deducted from any refund of the student;
121-3 (6) a statement that if a student's enrollment is
121-4 canceled for any reason, the school will notify an agency known to
121-5 the school to be providing financial aid to the student of the
121-6 cancellation not later than the 30th day after the date of
121-7 cancellation;
121-8 (7) the name and description of the courses, including
121-9 the number of hours of classroom instruction or home study lessons.
121-10 (b) An enrollment contract may not contain a wage assignment
121-11 provision or a confession of judgment clause.
121-12 (c) Immediately after a prospective student has signed an
121-13 enrollment contract, the school shall give the prospective student
121-14 a copy of the contract, and a copy shall be placed in the student's
121-15 permanent school file.
121-16 Sec. 32. LOAN COUNSELING BY MASSAGE SCHOOL. (a) A school
121-17 shall conduct loan counseling entrance interviews with each
121-18 prospective student seeking a loan during the enrollment process.
121-19 A student borrower shall be counseled before the initial
121-20 disbursement of loan proceeds, shortly before the student ceases
121-21 one-half of the course, and before the student is issued a
121-22 certificate of completion.
121-23 (b) The school's financial aid officer or counselor shall
121-24 conduct the interviews required by Subsection (a) of this section.
121-25 The interview must include a discussion of:
121-26 (1) the rights and responsibilities of the student as
121-27 a borrower;
122-1 (2) what a loan is and the importance of repayment;
122-2 (3) the total cost of the program in which the student
122-3 will be enrolled;
122-4 (4) the availability of other forms of financial aid,
122-5 grants, and part-time work;
122-6 (5) the starting range and average reported salaries
122-7 of those in the occupation for which the student will be trained,
122-8 if available; and
122-9 (6) job placement services provided by the school and
122-10 the employment rate of persons who attended the school and were
122-11 enrolled in the program in which the student is enrolled.
122-12 (c) A school approved to accept state or federal educational
122-13 loans or grants shall adopt, in addition to the provisions in this
122-14 section, measures to reduce defaults and improve borrowers'
122-15 understanding and respect for the loan repayment obligation as
122-16 provided in 34 C.F.R., Parts 668 and 682.
122-17 (d) The school must give a copy of the Texas Guaranteed
122-18 Student Loan Corporation's "Your Future" guide, or a comparable
122-19 document approved by the department, to a prospective student at a
122-20 time and in a manner that provide the student with sufficient
122-21 opportunity to read the guide or other document and discuss the
122-22 contents with the school's financial aid officer, if necessary for
122-23 understanding and clarity, before signing an enrollment contract
122-24 and before the school accepts the student in a course of study.
122-25 (e) The prospective student must sign a document stating
122-26 that the student:
122-27 (1) attended a loan counseling entrance interview; and
123-1 (2) received a copy of the "Your Future" guide, or
123-2 comparable document in the time provided by Subsection (d) of this
123-3 section.
123-4 (f) A copy of the signed document required by Subsection (e)
123-5 of this section must be sent to the student, guarantor, and lender
123-6 and must be placed in the student's permanent school file.
123-7 Sec. 33. RECORDS OF MASSAGE SCHOOL. (a) A massage school
123-8 shall maintain permanent records for all students enrolled, as
123-9 required by the department.
123-10 (b) A school shall adopt a plan to preserve permanent
123-11 records and submit the plan to the department for approval. The
123-12 plan must:
123-13 (1) provide that at least one copy of the records will
123-14 be held in a secure depository; and
123-15 (2) designate an appropriate official to provide a
123-16 student with copies of records or transcripts on request.
123-17 (c) The school shall make the first copy of records or
123-18 transcripts at no charge to the student. The school may make a
123-19 reasonable charge to provide additional copies of records,
123-20 transcripts, or other student information.
123-21 (d) If a school closes, the records become the property of
123-22 the state.
123-23 Sec. 34. DEPARTMENT ADDRESS. A massage school shall post on
123-24 the premises of the school at a prominent and conspicuous location
123-25 the name, mailing address, and telephone number of the department
123-26 for the purpose of directing complaints to the department.
123-27 Sec. 35. COMPLAINTS. The department shall prepare
124-1 information of public interest describing the functions of the
124-2 department and the procedures by which complaints are filed with
124-3 and resolved by the department against a massage school. The
124-4 department shall make the information available to the public and
124-5 appropriate state agencies.
124-6 Sec. 36. FINANCIAL STABILITY. (a) A school may not reflect
124-7 unearned tuition as a current asset unless the amount shown in
124-8 current assets that reflects unearned tuition is offset by an equal
124-9 amount shown as a current liability. The school must meet one of
124-10 the following criteria in order to be determined as financially
124-11 sound and capable of fulfilling its commitments for training:
124-12 (1) current assets must bear a relationship to current
124-13 liabilities in a ratio of at least one-to-one; or
124-14 (2) the school must have posted, or set aside in a
124-15 dedicated escrow account, a bond, certificate of deposit,
124-16 irrevocable letter of credit or comparable security, acceptable to
124-17 the department, each made payable to the State of Texas, in an
124-18 amount sufficient to cover the school's record storage costs,
124-19 teachout, and tuition and fees refund and recovery exposure based
124-20 on the evidence the school submits proving its projected maximum
124-21 total unearned tuition during the period of time covered by the
124-22 evidence of indebtedness to the state.
124-23 (b) The school must demonstrate to the satisfaction of the
124-24 department its financial soundness and ability to fulfill its
124-25 commitments for training. If requested by the school and
124-26 administrator, the School Accounts Advisory Board shall investigate
124-27 the financial soundness of a school that does not meet the
125-1 requirements of (1) or (2) above in order to determine if the
125-2 school is capable of fulfilling its obligations under this Act.
125-3 Sec. 37. PROHIBITIONS. A person may not:
125-4 (1) operate a massage school without registering with
125-5 the department or assume ownership of an existing massage school
125-6 without registering with the department;
125-7 (2) solicit prospective students for a massage school
125-8 without being registered as required by this Act;
125-9 (3) accept contracts or enrollment applications from a
125-10 representative of a massage school who is not registered as
125-11 required by any department rule requiring registration;
125-12 (4) use advertising designed to mislead or deceive
125-13 prospective massage school students;
125-14 (5) fail to notify the department of the
125-15 discontinuance of the operation of any massage school not later
125-16 than the 72nd hour after cessation of classes or make available
125-17 accurate records as required by this Act;
125-18 (6) fail to secure and file within 30 days any
125-19 increased bond required by this Act;
125-20 (7) negotiate any promissory instrument received as
125-21 payment of tuition for a massage school or other charge before
125-22 completion of 75 percent of the course, provided that before that
125-23 time, the instrument may be transferred by assignment to a
125-24 purchaser who is subject to any defense available against the
125-25 school named as payee;
125-26 (8) enroll a student in a massage school who fails to
125-27 satisfy entrance requirements; or
126-1 (9) violate any provision of this Act relating to a
126-2 massage school or a rule adopted under this Act relating to a
126-3 massage school.
126-4 Sec. 38. ADMINISTRATIVE PENALTY. (a) The board may impose
126-5 an administrative penalty against a person who violates Section 37
126-6 of this Act.
126-7 (b) The penalty for a violation may be in an amount not to
126-8 exceed $10,000.
126-9 (c) The amount of the penalty shall be based on:
126-10 (1) the seriousness of the violation, including the
126-11 nature, circumstances, extent, and gravity of any prohibited acts;
126-12 (2) efforts to correct the violation; and
126-13 (3) any other matter that justice may require.
126-14 (d) If the commissioner of health determines that a
126-15 violation has occurred, the commissioner may issue to the board a
126-16 report that states the facts on which the determination is based
126-17 and the commissioner's recommendation on the imposition of a
126-18 penalty, including a recommendation on the amount of the penalty.
126-19 (e) Within 14 days after the date the report is issued, the
126-20 commissioner shall give written notice of the report to the person.
126-21 The notice may be given by certified mail. The notice must include
126-22 a brief summary of the alleged violation and a statement of the
126-23 amount of the recommended penalty and must inform the person that
126-24 the person has a right to a hearing on the occurrence of the
126-25 violation, the amount of the penalty, or both the occurrence of the
126-26 violation and the amount of the penalty.
126-27 (f) Within 20 days after the date the person receives the
127-1 notice, the person in writing may accept the determination and
127-2 recommended penalty of the commissioner or may make a written
127-3 request for a hearing on the occurrence of the violation, the
127-4 amount of the penalty, or both the occurrence of the violation and
127-5 the amount of the penalty.
127-6 (g) If the person accepts the determination and recommended
127-7 penalty of the commissioner, the board by order shall approve the
127-8 determination and impose the recommended penalty.
127-9 (h) If the person requests a hearing or fails to respond
127-10 timely to the notice, the commissioner shall set a hearing and give
127-11 notice of the hearing to the person. The hearing shall be held by
127-12 a hearings examiner appointed by the commissioner. The hearings
127-13 examiner shall make findings of fact and conclusions of law and
127-14 promptly issue to the board a proposal for a decision about the
127-15 occurrence of the violation and the amount of a proposed penalty.
127-16 Based on the findings of fact, conclusions of law, and proposal for
127-17 a decision, the board by order may find that a violation has
127-18 occurred and impose a penalty or may find that no violation
127-19 occurred.
127-20 (i) The notice of the board's order given to the person
127-21 under the Administrative Procedure and Texas Register Act (Article
127-22 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
127-23 amendments must include a statement of the right of the person to
127-24 judicial review of the order.
127-25 (j) Within 30 days after the date the board's order is final
127-26 as provided by Section 16(c), Administrative Procedure and Texas
127-27 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
128-1 its subsequent amendments, the person shall:
128-2 (1) pay the amount of the penalty;
128-3 (2) pay the amount of the penalty and file a petition
128-4 for judicial review contesting the occurrence of the violation, the
128-5 amount of the penalty, or both the occurrence of the violation and
128-6 the amount of the penalty; or
128-7 (3) without paying the amount of the penalty, file a
128-8 petition for judicial review contesting the occurrence of the
128-9 violation, the amount of the penalty, or both the occurrence of the
128-10 violation and the amount of the penalty.
128-11 (k) Within the 30-day period, a person who acts under
128-12 Subsection (j)(3) of this section may:
128-13 (1) stay enforcement of the penalty by:
128-14 (A) paying the amount of the penalty to the
128-15 court for placement in an escrow account; or
128-16 (B) giving to the court a supersedeas bond that
128-17 is approved by the court for the amount of the penalty and that is
128-18 effective until all judicial review of the board's order is final;
128-19 or
128-20 (2) request the court to stay enforcement of the
128-21 penalty by:
128-22 (A) filing with the court a sworn affidavit of
128-23 the person stating that the person is financially unable to pay the
128-24 amount of the penalty and is financially unable to give the
128-25 supersedeas bond; and
128-26 (B) giving a copy of the affidavit to the
128-27 commissioner by certified mail.
129-1 (l) If the commissioner receives a copy of an affidavit
129-2 under Subsection (k)(2) of this section the commissioner may file
129-3 with the court, within five days after the date the copy is
129-4 received, a contest to the affidavit. The court shall hold a
129-5 hearing on the facts alleged in the affidavit as soon as
129-6 practicable and shall stay the enforcement of the penalty on
129-7 finding that the alleged facts are true. The person who files an
129-8 affidavit has the burden of proving that the person is financially
129-9 unable to pay the amount of the penalty and to give a supersedeas
129-10 bond.
129-11 (m) If the person does not pay the amount of the penalty and
129-12 the enforcement of the penalty is not stayed, the commissioner may
129-13 refer the matter to the attorney general for collection of the
129-14 amount of the penalty.
129-15 (n) Judicial review of the order of the board:
129-16 (1) is instituted by filing a petition as provided by
129-17 Section 19, Administrative Procedure and Texas Register Act
129-18 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
129-19 subsequent amendments; and
129-20 (2) is under the substantial evidence rule.
129-21 (o) If the court sustains the occurrence of the violation,
129-22 the court may uphold or reduce the amount of the penalty and order
129-23 the person to pay the full or reduced amount of the penalty. If
129-24 the court does not sustain the occurrence of the violation, the
129-25 court shall order that no penalty is owed.
129-26 (p) When the judgment of the court becomes final, the court
129-27 shall proceed under this subsection. If the person paid the amount
130-1 of the penalty and if that amount is reduced or is not upheld by
130-2 the court, the court shall order that the appropriate amount plus
130-3 accrued interest be remitted to the person. The rate of the
130-4 interest is the rate charged on loans to depository institutions by
130-5 the New York Federal Reserve Bank, and the interest shall be paid
130-6 for the period beginning on the date the penalty was paid and
130-7 ending on the date the penalty is remitted. If the person gave a
130-8 supersedeas bond and if the amount of the penalty is not upheld by
130-9 the court, the court shall order the release of the bond. If the
130-10 person gave a supersedeas bond and if the amount of the penalty is
130-11 reduced, the court shall order the release of the bond after the
130-12 person pays the amount.
130-13 (q) A penalty collected under this section shall be remitted
130-14 to the comptroller for deposit in the general revenue fund.
130-15 (r) All proceedings under this section are subject to the
130-16 Administrative Procedure and Texas Register Act (Article 6252-13a,
130-17 Vernon's Texas Civil Statutes) and its subsequent amendments.
130-18 Sec. 39. CRIMINAL PENALTIES. (a) A person commits an
130-19 offense if the person fails to comply with Section 2A or 25 of this
130-20 Act.
130-21 (b) A person commits an offense if the person intentionally
130-22 or knowingly uses for personal benefit funds in an amount greater
130-23 than $10,000 that are due as student refunds under Section 25 of
130-24 this Act. An offense under this subsection is a felony of the
130-25 third degree. Except as provided by Subsection (b) of this
130-26 section, an offense under this section is a Class A misdemeanor.
130-27 SECTION 3.09. Any balance remaining in funds designated for
131-1 the purposes outlined in this Act shall be transferred to the
131-2 Massage School Account in the General Revenue Fund on the effective
131-3 date of this Act.
131-4 PART 4. BARBER SCHOOLS OR COLLEGES
131-5 SECTION 4.01. Sections 3(b) and (f), Chapter 65, Acts of the
131-6 41st Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
131-7 Texas Civil Statutes), are amended to read as follows:
131-8 (b) Any firm, corporation or person who opens a new barber
131-9 shop shall within three days submit an application in writing to
131-10 the board for a temporary barber shop permit together with an
131-11 inspection fee in an amount established by the board <not to exceed
131-12 $70>. The applicant must place in his application the permanent
131-13 address of his shop including a legal description of the premises
131-14 to be licensed and such other information as shall be required by
131-15 the board.
131-16 (f) To continue operating a barber shop, a person must renew
131-17 the permit issued to his shop by paying a renewal fee in an amount
131-18 established by the board <not to exceed $70>. All permits expire
131-19 on July 1 of odd-numbered years.
131-20 SECTION 4.02. (a) Effective September 1, 1994, Section
131-21 9(a), Chapter 65, Acts of the 41st Legislature, 1st Called Session,
131-22 1929 (Article 8407a, Vernon's Texas Civil Statutes), is amended to
131-23 read as follows:
131-24 (a) Any person desiring to conduct or operate a barber
131-25 school or college in this state shall first obtain a permit from
131-26 the board after demonstrating that said school or college has first
131-27 met the requirements of this section. Said permit shall be
132-1 prominently displayed at all times at such school or college. The
132-2 board shall determine that an applicant for a barber school or
132-3 college permit is financially sound and capable of fulfilling its
132-4 commitments for training before granting the permit. <Each
132-5 applicant shall furnish a surety bond in the amount of $10,000,
132-6 payable to the state, and conditioned to refund unpaid tuition if
132-7 the school or college closes or ceases operation before its courses
132-8 of instruction have been completed.>
132-9 (b) Any surety bond furnished under Section 9(a), Chapter
132-10 65, Acts of the 41st Legislature, 1st Called Session, 1929 (Article
132-11 8407a, Vernon's Texas Civil Statutes), as Section 9(a) existed
132-12 before amendment by this Act, remains in full force and effect.
132-13 Any obligation under a surety bond furnished under Section 9(a)
132-14 before amendment by this Act is not impaired by the amendment.
132-15 SECTION 4.03. Sections 9(b)-(y), Chapter 65, Acts of the
132-16 41st Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
132-17 Texas Civil Statutes), are amended to read as follows:
132-18 (b) No certificate or permit shall be issued as provided for
132-19 herein to an applicant to be a student in such a school or college
132-20 unless said applicant has completed at least a seventh grade
132-21 education and such other requirements as shall be specified by the
132-22 board. Each applicant to be a student must submit an enrollment
132-23 application to the board in the form prescribed by the board. The
132-24 application must be accompanied by a nonrefundable application fee
132-25 set by the board <in an amount not to exceed $25>. A separate
132-26 application is required for each enrollment, reenrollment, or
132-27 transfer enrollment. However, the application fee applies only to
133-1 the first enrollment and may not be charged for any later
133-2 enrollment, reenrollment, or transfer enrollment.
133-3 (c) The board may not approve a barber school or college
133-4 unless the school or college requires the following hours of
133-5 instruction as a prerequisite for graduation:
133-6 (1) Class A barber--1,500 hours of instruction
133-7 completed in a course of not less than nine months, with not less
133-8 than 800 hours in the actual practice of cutting hair as a primary
133-9 service;
133-10 (2) barber technician--300 hours of instruction
133-11 completed in a course of not less than eight weeks;
133-12 (3) wig instructor--200 hours of instruction completed
133-13 in a course of not less than eight weeks;
133-14 (4) wig specialist--300 hours of instruction completed
133-15 in a course of not less than eight weeks;
133-16 (5) manicurist--300 hours of instruction completed in
133-17 a course of not less than eight weeks; and
133-18 (6) teacher--1,000 hours of instruction completed in a
133-19 course of not less than six months.
133-20 (d) If a school or college offers a refresher course, that
133-21 course must require at least 300 hours of instruction. The board
133-22 by rule shall set the curriculum for a refresher course.
133-23 (e) A barber school or college shall submit a monthly
133-24 progress report to the board regarding each student in attendance
133-25 at the school or college. The report must certify the daily
133-26 attendance record of the student and the number of credit hours
133-27 earned by the student during the previous month. The school or
134-1 college may not increase, decrease, or withhold for any reason the
134-2 number of credit hours earned by a student. On completion by a
134-3 student of a prescribed course of instruction, the school or
134-4 college shall certify to the board that the student has completed
134-5 the required number of hours and is eligible to take the
134-6 appropriate examination. Each barber school or college permittee
134-7 shall furnish to the board:
134-8 (1) the current course completion rates of students
134-9 who attend a course of instruction offered by the school or
134-10 college; and
134-11 (2) job placement rates and employment rates of
134-12 students who complete a course of instruction.
134-13 (f) Such schools or colleges shall instruct students in the
134-14 theory and practice of such subjects as may be necessary and
134-15 beneficial in the practice of barbering, including the following:
134-16 (1) all laws governing the practice of barbering in
134-17 this state;
134-18 (2) scientific fundamentals of barbering;
134-19 (3) hygienic bacteriology;
134-20 (4) histology of the hair, skin, muscles, and nerves;
134-21 (5) the structure of the head, neck and face;
134-22 (6) elementary chemistry relating to sterilization and
134-23 antiseptics;
134-24 (7) common disorders of the skin and hair;
134-25 (8) massaging muscles of the scalp, face, and neck;
134-26 (9) hair-cutting;
134-27 (10) shaving, shampooing, and bleaching and dyeing of
135-1 the hair;
135-2 (11) manicuring, administering facial treatments, hair
135-3 weaving, servicing wigs; and
135-4 (12) any other skills, techniques, services,
135-5 treatments, or undertakings within the definition of the practice
135-6 of barbering provided for in this Act.
135-7 (g) No barber school or college which issues "Class A"
135-8 certificates shall be approved by the Board for the issuance of a
135-9 permit unless said school or college has the following:
135-10 (1) An adequate school site housed in a substantial
135-11 building of a permanent-type construction containing a minimum of
135-12 not less than two thousand, eight hundred (2,800) square feet of
135-13 floor space. Such space shall be divided into the following
135-14 separate departments: a senior department, a junior department, a
135-15 class theory room, a supply room, an office space, a dressing and
135-16 cloak room, and two (2) sanitary, modern separate rest rooms,
135-17 equipped with one (1) commode each and a urinal in one (1) rest
135-18 room.
135-19 (2) A hard-surface floor covering of tile or other
135-20 suitable material.
135-21 (3) A minimum of twenty (20) modern barber chairs with
135-22 cabinet and mirror for each chair.
135-23 (4) One (1) lavatory in back of each two (2) chairs.
135-24 (5) A liquid sterilizer for each chair.
135-25 (6) An adequate number of latherizers, vibrators, and
135-26 hair dryers for the use of students.
135-27 (7) Adequate lighting of all rooms.
136-1 (8) At least twenty (20) classroom chairs, a
136-2 blackboard, anatomical charts of the head, neck and face, and one
136-3 (1) barber chair in the class theory room.
136-4 (9) A library and library facilities available to
136-5 students, containing a medical dictionary and a standard work on
136-6 the human anatomy.
136-7 (10) Adequate drinking fountain facilities, but at
136-8 least one (1) to each floor.
136-9 (11) Adequate toilet facilities for the students.
136-10 (12) Adequate fire-fighting equipment to be maintained
136-11 in case of emergency.
136-12 (h) Anything to the contrary in this Act notwithstanding,
136-13 each such school shall place a sign on the front outside portion of
136-14 its building in a prominent place. Such sign shall read "BARBER
136-15 SCHOOL--STUDENT BARBERS", and shall be a minimum size of ten-inch
136-16 block letters. Printed signs containing the foregoing information
136-17 shall be prominently displayed upon each inside wall of the
136-18 establishment.
136-19 (i) A minimum of five (5) hours a week must be devoted to
136-20 the instruction of theory in the classroom, with Saturdays devoted
136-21 exclusively to practical work over the chair. If classes are
136-22 conducted five (5) days a week, one (1) hour each day must be
136-23 devoted to instruction in theory. If classes are conducted four
136-24 (4) days a week, one (1) hour and fifteen (15) minutes each day
136-25 must be devoted to instruction in theory. An attendance record
136-26 book must be maintained by the school showing a record of the
136-27 students' daily attendance. These records are subject to
137-1 inspection at any and all times by the Board.
137-2 (j) No barber school or college which issues "Class A"
137-3 certificates shall be approved by the Board unless it is under the
137-4 direct supervision and control of a barber who holds a current
137-5 registered "Class A" certificate to practice barbering under the
137-6 Texas Barber Law, and who can show evidence of at least five (5)
137-7 years experience as a practicing barber. Each school shall have at
137-8 least one (1) teacher who has a teacher's certificate issued by the
137-9 Board upon examination and who is capable and qualified to teach
137-10 the curriculum outlined herein to the students of such school. All
137-11 such teachers are required to obtain a teacher's certificate from
137-12 the Board and, in addition to requirements set forth by the Board,
137-13 must meet the following requirements:
137-14 (1) Demonstrate their ability to teach the said
137-15 curriculum outlined herein through a written and practical test to
137-16 be given by the Board.
137-17 (2) Hold a current certificate as a registered "Class
137-18 A" barber under this law.
137-19 (3) Demonstrate to the Board that such applicant is
137-20 qualified to teach and instruct, to be determined at the discretion
137-21 of the Board, and show evidence that the applicant has had at least
137-22 six (6) months experience as a teacher in an approved school or
137-23 college in Texas or in another state approved by the Board, or have
137-24 completed 1,000 hours of instruction in a postgraduate course as a
137-25 student teacher in an approved barber school or college in Texas.
137-26 (k) A licensed barber who presents evidence satisfactory to
137-27 the Board of at least five (5) years' experience as a practicing
138-1 barber in a barber shop operating under a permit issued by the
138-2 Board, with not less than two (2) years' experience occurring in
138-3 the period immediately before application, is also entitled to
138-4 apply to take the examination for a teacher's certificate.
138-5 Applicants desiring an examination for a teacher's certificate
138-6 shall make an application to the Board and accompany same with an
138-7 examination fee in an amount established by the Board <not to
138-8 exceed $100>. A new application and fee must be presented for each
138-9 examination taken by the applicant and fees paid are not
138-10 refundable. The application must state the education and
138-11 experience level of the applicant in all courses or programs that
138-12 the applicant will teach or instruct. The Board shall review an
138-13 application for competency, consistency, and the overall quality of
138-14 the applicant. A teacher's certificate shall be issued upon
138-15 satisfactory completion of the examination and payment of a
138-16 certificate fee in an amount established by the Board <not to
138-17 exceed $100 if the applicant fulfills the requirements during the
138-18 period from November 1 of an odd-numbered year and extending
138-19 through October 31 of the following even-numbered year or not to
138-20 exceed $50 if the applicant fulfills the requirements during the
138-21 period from November 1 of an even-numbered year and extending
138-22 through October 31 of the following odd-numbered year>. Teacher's
138-23 certificates shall be renewed biennially on or before November 1st
138-24 of odd-numbered years upon the payment of a renewal fee in an
138-25 amount established by the Board <not to exceed $100>.
138-26 (l) In addition to a minimum of one (1) teacher required in
138-27 Subsection (j)(3) of this Section, each barber school or college
139-1 which issues "Class A" certificates shall maintain at least one (1)
139-2 qualified instructor, holding a registered "Class A" certificate,
139-3 for each twenty (20) students or any fraction thereof for
139-4 instruction in practical work; provided, however, that a teacher
139-5 can also serve as an instructor in practical work in addition to
139-6 his position as a theory teacher. A barber school or college may
139-7 not enroll more than one (1) student teacher for each licensed
139-8 teacher who teaches at the school or college. A student teacher
139-9 must concentrate on teaching skills and may not be booked with
139-10 customers. Violation of this requirement constitutes a ground for
139-11 the revocation of the person's student teacher barber license.
139-12 (m) No barber school or college shall be issued a permit to
139-13 operate under the provisions of this Section until it has first
139-14 furnished the following evidence to the Board:
139-15 (1) A detailed drawing and chart of the proposed
139-16 physical layout of such school, showing the departments, floor
139-17 space, equipment, lights and outlets.
139-18 (2) Photographs of the proposed site for such school
139-19 including the interior and exterior of the building, rooms and
139-20 departments.
139-21 (3) A detailed copy of the training program.
139-22 (4) A copy of the school catalog and promotional
139-23 literature.
139-24 (5) A copy of the building lease or proposed building
139-25 lease where the building is not owned by the school or college.
139-26 (6) A sworn statement showing the true ownership of
139-27 the school or college.
140-1 (7) A permit fee in an amount established by the Board
140-2 <not to exceed $1,000>.
140-3 (8) A statement of any final convictions of the
140-4 owners, school directors, recruiters, instructional faculty, or
140-5 other selected personnel of the barber school or college as
140-6 determined by the Board. The Board may obtain criminal history
140-7 records of school directors or instructional faculty from any law
140-8 enforcement agency, including the United States Department of
140-9 Justice, the Department of Public Safety of the State of Texas, the
140-10 Texas Department of Criminal Justice, or the police department of a
140-11 municipality. The administrator may deny, revoke, or disapprove
140-12 the application for, or existing license, registration, or approval
140-13 of a person who has been convicted of, entered a plea of nolo
140-14 contendere, or guilty to, or received deferred adjudication for, a
140-15 felony or misdemeanor offense for which a refusal may be issued
140-16 under Article 6252-13c, Vernon's Texas Civil Statutes.
140-17 (n) A barber school or college shall post on the premises of
140-18 the school at a prominent and conspicuous location the name,
140-19 mailing address, and telephone number of the Board for the purpose
140-20 of directing complaints to the Board.
140-21 (o) <(n)> No such school or college shall be operated and no
140-22 students shall be solicited or enrolled by it until the Board shall
140-23 determine by inspection that the school has been set up and
140-24 established in accordance with this Section and Section 9A of this
140-25 Act and the proposal submitted to the Board and approved by it
140-26 prior to the issuance of a permit. A barber school or college that
140-27 is not approved by the Board on initial inspection is subject to
141-1 reinspection by the Board. For each reinspection, the Board shall
141-2 charge a reinspection fee set by the Board <in an amount not to
141-3 exceed $500>.
141-4 (p) <(o)> Any such school or college must obtain renewal of
141-5 its permit by September 1st each year by the payment of an annual
141-6 renewal fee in an amount established by the Board <not to exceed
141-7 $300>.
141-8 (q) <(p)> If a barber school or college changes ownership,
141-9 the Board shall be notified of the transfer not later than the 10th
141-10 day before the date on which the change becomes effective.
141-11 (r) <(q)> Any school or college desiring to change the
141-12 location of such school or college must first obtain approval by
141-13 the Board by showing that the proposed location meets the
141-14 requirements of this Section.
141-15 (s) <(r)> If said Board refuses to issue a permit to any
141-16 such school or college, such school or college may by written
141-17 request demand the reasons for said refusal and if said school or
141-18 college shall thereupon meet said requirements and makes a showing
141-19 that the requirements of this law have been complied with, then if
141-20 said Board refuses to issue said permit, a suit may be instituted
141-21 by such school or college in any of the District Courts of Travis
141-22 County, Texas, to require said Board to issue such permit. Any
141-23 such suit must be filed within twenty (20) days after the final
141-24 order of said Board refusing to issue such permit is entered,
141-25 provided registered notice is mailed or it is otherwise shown that
141-26 said school or college has notice within ten (10) days from the
141-27 entering or making of said order.
142-1 (t) <(s)> In the event such school or college after a permit
142-2 is issued to it violates any of the requirements of this law,
142-3 either directly or indirectly, then said Board shall suspend or
142-4 revoke the permit of any such school or college. Before suspending
142-5 or revoking any such permit, said Board must give such school or
142-6 college a hearing, notice of which hearing shall be delivered to
142-7 such school or college at least twenty (20) days prior to the date
142-8 of said hearing. If said Board suspends or revokes said permit at
142-9 said hearing, then such school or college may file suit to prevent
142-10 the same or to appeal from said order. Any and all suits filed
142-11 hereunder shall be filed within twenty (20) days from the date of
142-12 the order of said Board in any of the District Courts of Travis
142-13 County, Texas, and not elsewhere, and the order shall not become
142-14 effective until said twenty (20) days has expired.
142-15 (u) <(t)> The Attorney General may institute any injunction
142-16 proceedings or such other proceeding as to enforce the provisions
142-17 of this Act, and to enjoin any barber or school or college from
142-18 operating without having complied with the provisions hereof, and
142-19 each shall forfeit to the State of Texas the sum of Twenty-five
142-20 Dollars ($25) per day as a penalty for each day's violation, to be
142-21 recovered in a suit by the Attorney General. An action for an
142-22 injunction under this section must be brought in Travis County.
142-23 (v) <(u) A holder of a barber school or college permit shall
142-24 furnish each prospective student with:>
142-25 <(1) a copy of the course outline;>
142-26 <(2) a schedule of the tuition and other fees
142-27 assessed;>
143-1 <(3) the refund policy imposed under Section 9A of
143-2 this Act;>
143-3 <(4) regulations relating to absences;>
143-4 <(5) the grading policy;>
143-5 <(6) the rules of operation and conduct;>
143-6 <(7) regulations relating to incomplete grades;>
143-7 <(8) the name, mailing address, and telephone number
143-8 of the board for the purpose of directing complaints to the board;
143-9 and>
143-10 <(9) the current rates of job placement and employment
143-11 of students who complete a course of training.>
143-12 <(v) A holder of a barber school or college permit shall
143-13 publish in its catalogue and enrollment contract a description of
143-14 the refund policy required under Section 9A of this Act.>
143-15 <(w) If the board has reasonable cause to believe that a
143-16 barber school or college has violated this Act or a rule adopted
143-17 under this Act, the board may order a peer review of the school or
143-18 college or suspend the admission of students to the school or
143-19 college. A peer review ordered under this subsection shall be
143-20 conducted by a peer review team composed of knowledgeable persons
143-21 selected by the board. The board shall attempt to provide a
143-22 balance on each team between members assigned to the team who are
143-23 from this state and those who are from other states. The team
143-24 shall provide the board with an objective assessment of the content
143-25 of the curriculum and its application. The school or college under
143-26 review shall pay the costs of the peer review.>
143-27 <(x)> A barber school or college must submit to the board
144-1 for approval the course lengths and curriculum content for each
144-2 course offered by the school or college. The course lengths and
144-3 content may not be implemented unless the board approves them. The
144-4 course lengths and content shall reasonably ensure that students
144-5 develop the job skills and knowledge necessary for employment. The
144-6 board shall require a school or college to account fully for all
144-7 curriculum contents and course lengths before issuing or renewing a
144-8 permit, and a school or college that is manipulating course lengths
144-9 below or above industry standards shall be placed on probation
144-10 until justification for the deviation is proved or the practice
144-11 ceases.
144-12 (w) <(y)> A barber school or college that violates this Act
144-13 or a rule adopted under this Act is liable for a civil penalty in
144-14 addition to any injunctive relief or other remedy provided by law.
144-15 The civil penalty may not exceed $1,000 a day for each violation.
144-16 The Attorney General, at the request of the board, may bring a
144-17 civil action to collect a civil penalty under this subsection.
144-18 Civil penalties recovered in a suit brought under this subsection
144-19 shall be deposited in the state treasury to the credit of the
144-20 General Revenue Fund.
144-21 (x) The board may deny, suspend, or revoke a barber school
144-22 or college permit or place the holder of the permit on probation if
144-23 the permit holder, the school, or a representative of the school
144-24 gives a prospective student information relating to the school that
144-25 is false, fraudulent, deceptive, substantially inaccurate, or
144-26 misleading.
144-27 SECTION 4.04. Section 9A, Chapter 65, Acts of the 41st
145-1 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
145-2 Texas Civil Statutes), is amended by amending Subsections (b)-(g)
145-3 and adding Subsections (h)-(j) to read as follows:
145-4 (b) Each holder of a barber school or college permit must
145-5 maintain a refund policy for the refund of the unused part of
145-6 tuition, fees, and other charges assessed a student if the student,
145-7 at the expiration of the cancellation period established under
145-8 Subsection (a) of this section, terminates enrollment or is
145-9 terminated by the school or college, as provided by this subsection
145-10 <fails to enter the course of training, withdraws from the course
145-11 of training, or is terminated from the course of training before
145-12 completion of the course>. The refund policy must provide that:
145-13 (1) a refund is based on the period of the student's
145-14 enrollment, computed on the basis of course time expressed in clock
145-15 hours;
145-16 (2) the effective date of the termination for payment
145-17 of a refund <refund purposes> is the earliest of:
145-18 (A) the last date of attendance, if the student
145-19 is terminated for failure to satisfy an attendance, grade, or work
145-20 requirement <by the school or college>;
145-21 (B) the date of receipt by the permit holder of
145-22 written notice of withdrawal by the student; <or>
145-23 (C) the 10th consecutive <10> school day the
145-24 student has been absent, unless any of the absences are excused by
145-25 the school or college <days after the last date of attendance>; or
145-26 (D) the date the student fails to return, as
145-27 scheduled, from a leave of absence; and
146-1 (3) if tuition is collected before beginning the
146-2 course of training and if, after the expiration of the cancellation
146-3 period, the student does not begin the course of training, the
146-4 school or college may retain not more than $100.
146-5 (c) If a student who begins a course of training that is
146-6 scheduled to run not more than 12 months withdraws from the course
146-7 or is terminated from the course by the school or college, the
146-8 barber school or college may retain $100 in tuition and fees paid
146-9 by that student and is not obligated to refund any additional
146-10 outstanding tuition if the student withdraws or is terminated
146-11 during the last quarter <50 percent> of the course. If the student
146-12 withdraws or is terminated before the last quarter <50 percent> of
146-13 the course begins, the school or college shall refund the following
146-14 percentages of any outstanding tuition:
146-15 (1) for withdrawal or termination occurring during the
146-16 first week or first one-tenth of the course, whichever is less, 90
146-17 percent;
146-18 (2) for withdrawal or termination occurring after the
146-19 first week or first one-tenth of the course, whichever is less, but
146-20 within the first three weeks of the course, 80 percent;
146-21 (3) for withdrawal or termination occurring after the
146-22 first three weeks of the course but not later than the last date of
146-23 the first 25 percent of the course, 75 percent; <and>
146-24 (4) for withdrawal or termination occurring during
146-25 <not later than the completion of> the second 25 percent of the
146-26 course, 50 percent;
146-27 (5) for withdrawal or termination occurring during the
147-1 third 25 percent of the course, 10 percent; and
147-2 (6) for withdrawal or termination occurring after 50
147-3 percent of the course has been completed, the school must allow the
147-4 student to reenter at any time during the 48-month period following
147-5 the date of withdrawal or termination at no additional charge,
147-6 provided the full agreed-on tuition has been tendered.
147-7 (d) <For students withdrawing or terminating after 50
147-8 percent of the course has been completed, the school must allow
147-9 that student to reenter at any time during the 48-month period
147-10 following the date of withdrawal or termination.>
147-11 <(e)> A refund owed under this section must be paid not
147-12 later than the 60th <30th> day after the date on which the student
147-13 becomes eligible for the refund, as determined under Subsection (b)
147-14 of this section.
147-15 (e) <(f)> If a refund is not made within the period required
147-16 by this section, the school or college shall pay, as a penalty,
147-17 interest on the refund for the interval beginning with the first
147-18 day following the expiration of the refund period and ending with
147-19 the day immediately preceding the date the refund is made. If the
147-20 refund is made to a lending institution, the interest shall also be
147-21 paid to that institution and applied against the student's loan.
147-22 The board <commissioner of education> annually shall establish the
147-23 level of interest at a level sufficient to provide a deterrent to
147-24 the retention of student funds. The board may exempt a school or
147-25 college from the payment of the interest if the school or college
147-26 makes a good faith effort to refund the tuition but is unable to
147-27 locate the student. The school or college shall provide to the
148-1 agency on request documentation of the effort to locate the
148-2 student.
148-3 (f) <(g)> A barber school or college shall record a grade of
148-4 "incomplete" for a student who withdraws but is not entitled to a
148-5 refund under Subsection (c) of this section if the student requests
148-6 the grade at the time the student withdraws and the student
148-7 withdraws for an appropriate reason unrelated to the student's
148-8 academic status. A student who receives a grade of incomplete may
148-9 reenroll in the program during the 12-month <48-month> period
148-10 following the date the student withdraws and may complete those
148-11 incomplete subjects without payment of additional tuition.
148-12 (g) If a course of instruction is discontinued by the school
148-13 and this prevents the student from completing the course, all
148-14 tuition and fees paid are due and refundable.
148-15 (h) Refunds under this section shall be applied:
148-16 (1) first, to the repayment of federal student loans,
148-17 awards, and other Title IV student assistance, as prescribed by the
148-18 Student Consumer Requirements in the U.S. Department of Education
148-19 Higher Education Amendments of 1992;
148-20 (2) second, to the repayment of other government
148-21 loans;
148-22 (3) third, to the repayment of other financial loans;
148-23 and
148-24 (4) last, to the student's personal tuitional
148-25 expenditures.
148-26 (i) Not later than the 30th day after the date on which a
148-27 refund is due to a student who has received a student loan, the
149-1 school or college shall notify the guaranty agency and the lender
149-2 of the required refund and any refund previously made. The
149-3 guaranty agency and the lender shall notify the student and the
149-4 school or college if the student's loan has been transferred to
149-5 another holder.
149-6 (j) The failure of a school or college or a person to pay a
149-7 tuition refund as required by this section is a deceptive trade
149-8 practice under Subchapter E, Chapter 17, Business & Commerce Code.
149-9 SECTION 4.05. Chapter 65, Acts of the 41st Legislature, 1st
149-10 Called Session, 1929 (Article 8407a, Vernon's Texas Civil
149-11 Statutes), is amended by adding Sections 9B-9S to read as follows:
149-12 Sec. 9B. Before the board may approve the application of a
149-13 person for a barber school or college permit, the board must find,
149-14 on investigation at the premises of the school, that the school
149-15 meets the following criteria:
149-16 (1) the courses, curriculum, and instruction are of a
149-17 quality, content, and length as may reasonably and adequately
149-18 achieve the stated objective for which the courses, curriculum, or
149-19 instruction are offered;
149-20 (2) there is in the school adequate space, equipment,
149-21 instructional material, and instructor personnel to provide
149-22 training of good quality;
149-23 (3) educational and experience qualifications of
149-24 directors, administrators, and instructors are adequate;
149-25 (4) the school maintains a written record of the
149-26 previous education and training of the applicant student and
149-27 clearly indicates that appropriate credit has been given by the
150-1 school for previous education and training, with the new training
150-2 period shortened where warranted through use of appropriate skills
150-3 or achievement tests and the student notified;
150-4 (5) a copy of the course outline; schedule of tuition,
150-5 fees, refund policy, and other charges; regulations pertaining to
150-6 absence, grading policy, and rules of operation and conduct;
150-7 regulations pertaining to incomplete grades; the name, mailing
150-8 address, and telephone number of the board for the purpose of
150-9 directing complaints to the agency; the current rates of job
150-10 placement and employment of students issued a certificate of
150-11 completion; and notification of the availability of the cost
150-12 comparison information prepared under Section 9H of this Act will
150-13 be furnished to the student in the school catalog or comparable
150-14 written documents before enrollment;
150-15 (6) on completion of training, the student is given a
150-16 certificate by the school indicating the course and that training
150-17 was satisfactorily completed;
150-18 (7) adequate records as required by the board are kept
150-19 to show attendance and progress or grades, and satisfactory
150-20 standards relating to attendance, progress, and conduct are
150-21 enforced;
150-22 (8) the school complies with all local, city, county,
150-23 municipal, state, and federal regulations; the board may require
150-24 evidence of compliance as is necessary;
150-25 (9) the school is financially sound and capable of
150-26 fulfilling its commitments for training;
150-27 (10) the school's administrators, directors, owners,
151-1 and instructors are of good reputation and character;
151-2 (11) the school has, maintains, and publishes in its
151-3 catalog and enrollment contract the proper policy for the refund of
151-4 the unused portion of tuition, fees, and other charges in the event
151-5 the student enrolled by the school fails to take the course or
151-6 withdraws or is discontinued from the course at any time before
151-7 completion;
151-8 (12) the school does not use erroneous or misleading
151-9 advertising, either by actual statement, omission, or intimation as
151-10 determined by the board;
151-11 (13) additional criteria as may be required by the
151-12 commission;
151-13 (14) the school does not use a name like or similar to
151-14 an existing tax-supported school in the same area;
151-15 (15) the school furnishes to the board the current
151-16 rates of students who receive a certificate of completion and of
151-17 job placement and employment of students issued a certificate of
151-18 completion;
151-19 (16) the school furnishes to the board for approval or
151-20 disapproval student admission requirements for each course or
151-21 program offered by the school;
151-22 (17) the school furnishes to the board for approval or
151-23 disapproval the course lengths and curriculum content for each
151-24 course offered by the school; and
151-25 (18) the school does not owe a civil penalty under
151-26 Section 9 of this Act.
151-27 Sec. 9C. (a) A barber school or college must submit to the
152-1 board for approval, on an annual basis, a school catalog or
152-2 comparable written documents detailing the consumer information
152-3 that must be given to a prospective student before enrollment. The
152-4 school catalog or documents must include:
152-5 (1) the name and address of the school and the
152-6 school's governing body and officials;
152-7 (2) a calendar of the school year;
152-8 (3) school policies on enrollment;
152-9 (4) rules relating to absences;
152-10 (5) the school grading policy;
152-11 (6) the school's hours of operation and rules of
152-12 conduct;
152-13 (7) a schedule of the tuition and other fees assessed;
152-14 (8) the school's cancellation and refund policy;
152-15 (9) a general description of the course or courses
152-16 offered;
152-17 (10) information on entrance testing and remedial
152-18 development plans;
152-19 (11) state licensing requirements for courses intended
152-20 to result in licensing of the student;
152-21 (12) starting range and average reported salaries for
152-22 the prior year's graduates in occupations for which courses are
152-23 offered, if the information is available;
152-24 (13) the current rates of job placement and employment
152-25 of students who complete a course of training;
152-26 (14) the school policy on credit for previous
152-27 education and training;
153-1 (15) school regulations relating to incomplete grades;
153-2 (16) information on the transferability of credits
153-3 earned;
153-4 (17) the name, mailing address, and telephone number
153-5 of the board for the purpose of directing complaints to the board
153-6 and the mechanism and procedures for resolving grievances submitted
153-7 to the board;
153-8 (18) a statement that the board has information on
153-9 cost comparison with similar schools;
153-10 (19) market and job availability information, if
153-11 available;
153-12 (20) the names of the members of any advisory council
153-13 of the school and the company for which they work; and
153-14 (21) other information required by the executive
153-15 director or board if reasonable notice has been given by the board
153-16 to the school of the additional requirements.
153-17 (b) A barber school or college may not accept a signed
153-18 student enrollment contract or accept a student into any school
153-19 program until at least 24 hours after the student has received the
153-20 catalog or comparable written documents required under this
153-21 section.
153-22 (c) A student must sign a receipt stating that:
153-23 (1) the catalog was received by the student before any
153-24 commitment made by the student to the school or by the school to
153-25 the student;
153-26 (2) the student was given an opportunity to discuss
153-27 the catalog with a representative of the school; and
154-1 (3) the student understands the contents and
154-2 implications of the catalog.
154-3 (d) The receipt required by Subsection (c) of this section
154-4 must be placed in the student's permanent school file and a copy of
154-5 the receipt must be delivered to the student.
154-6 Sec. 9D. (a) A barber school or college must submit to the
154-7 board for approval the course lengths and curriculum content for
154-8 each course offered by the school or college. The course lengths
154-9 and content may not be implemented unless the board approves them.
154-10 The course lengths and content shall reasonably ensure that
154-11 students develop the job skills and knowledge necessary for
154-12 employment.
154-13 (b) The board shall require a school or college to fully
154-14 account for all curriculum contents and course lengths before
154-15 issuing or renewing a permit and a school or college that is
154-16 offering course lengths below or above industry standards may be
154-17 issued a conditional permit to operate.
154-18 Sec. 9E. (a) The board shall set and enforce minimum
154-19 standards for completion and employment rates of courses, based on
154-20 collected data.
154-21 (b) In determining whether to renew a barber school or
154-22 college permit, the board shall consider the completion, placement,
154-23 and employment rates of students of the courses.
154-24 (c) Before a school or college may begin offering a new
154-25 course of study for students the school or college must show the
154-26 board the opportunity for jobs for graduates of the course and the
154-27 possibility of placement or employment.
155-1 (d) Before the board issues or renews a barber school or
155-2 college permit involving a school or college that offers or
155-3 advertises a placement service, the board may require the school or
155-4 college to file a true and accurate copy of the school's or
155-5 college's placement records for the previous year.
155-6 Sec. 9F. (a) The board shall conduct on-site inspections of
155-7 a barber school or college to determine the normal operating
155-8 conditions of the school or college.
155-9 (b) The inspection required by Subsection (a) of this
155-10 section shall be unannounced.
155-11 (c) The executive director or a designee of the executive
155-12 director may inspect such things as the instructional books and
155-13 records, classrooms, dormitories, tools, equipment, and classes of
155-14 a barber school or college or an applicant for a permit for a
155-15 school or college at any reasonable time.
155-16 Sec. 9G. (a) At the beginning of each fiscal year the board
155-17 shall collect a fee from the school or college for deposit in a
155-18 special account in the general revenue fund of the state treasury
155-19 called the barber school or college account and to be administered
155-20 by the board.
155-21 (b) The amount of the fee is determined by applying a
155-22 percentage established by the board, based on the recommendation of
155-23 the school accounts advisory board, to each school's or college's
155-24 annual gross tuition, with consideration given to the school's
155-25 size, expense of regulation, potential for teachouts, tuition and
155-26 fees refund and recovery exposure, and loan default rates and any
155-27 other relevant factors. The account shall be used for:
156-1 (1) the administration of this Act;
156-2 (2) the cost of teachouts as provided by this Act;
156-3 (3) the cost of tuition and fees recovery and the cost
156-4 of student refunds that a school has not made; and
156-5 (4) the cost of storing student records that have
156-6 become property of the state under this Act.
156-7 (c) The board may grant an exemption from payment into the
156-8 account to a small school, as determined by the board, or to a
156-9 school that does not use guaranteed student loans for tuition
156-10 revenue. A school exempt as provided for by this subsection must
156-11 pay the necessary fees for regulation, as determined by the board,
156-12 and provide a bond, certificate of deposit, or comparable security,
156-13 as determined and approved by the board, that is sufficient to
156-14 cover the cost of the school's or college's record storage costs,
156-15 teachout, and tuition and fees refund and recovery exposure based
156-16 on the evidence the school or college submits proving its projected
156-17 maximum total unearned tuition during the period of the permit to
156-18 operate.
156-19 (d) The security shall be provided by the school or college
156-20 for the period during which the permit is issued, and the
156-21 obligation of the bond or other security must be that neither this
156-22 Act nor any rule adopted under this Act is violated by the school
156-23 or college or any of its officers, agents, or employees.
156-24 (e) The bond, certificate of deposit, or comparable security
156-25 must be issued by a company authorized to do business in the state,
156-26 conditioned that the parties to the transaction shall pay all
156-27 damages or expenses that the state or any governmental subdivision
157-1 or any student or potential student sustains resulting from a
157-2 violation. The bond, certificate of deposit, or comparable
157-3 security shall be to the state to be used only for payment for the
157-4 school's or college's teachout and tuition and fees refund due to a
157-5 student or potential student. The security shall be filed with the
157-6 board and must be in a form approved by the board.
157-7 (f) Schools domiciled, or having their principal place of
157-8 business, outside the state, that engage representatives to
157-9 canvass, solicit, or contract with any person in the state are
157-10 subject to the fee and security requirements of Subsection (c) of
157-11 this section.
157-12 (g) The board shall refer all expenses incurred by the
157-13 school or college account in administering Subsections (b)(2) and
157-14 (3) of this section to the attorney general's office for
157-15 collection. The amounts collected shall be deposited to the
157-16 account. Attorney's fees and court costs will be appropriated to
157-17 the attorney general's office.
157-18 (h) Interest the account earns shall be reinvested in the
157-19 account. The state treasurer shall invest the account in the same
157-20 manner as other state funds. Sufficient funds from the account
157-21 shall be appropriated to the board for the purpose outlined in this
157-22 section. The board shall administer claims made against the
157-23 account.
157-24 (i) If a school or college closes, the board shall attempt
157-25 to arrange for students of the closed school or college to attend
157-26 another barber school or college. The board shall adopt rules
157-27 specifying the circumstances under which a school is considered
158-1 closed.
158-2 (j) The expense incurred by a barber school or college in
158-3 providing training that is directly related to educating a student
158-4 who was enrolled in a closed school or college and placed in the
158-5 school or college under this section, including the applicable
158-6 tuition for the period of time for which the student has paid
158-7 tuition, shall be paid in accordance with rules of the board.
158-8 (k) The board shall make reasonable attempts to ensure that
158-9 schools under the board's jurisdiction, including closed schools,
158-10 fulfill the refund obligation as provided by Section 9A of this
158-11 Act. If a school refuses to fulfill the school's obligation or the
158-12 school's bond is insufficient to pay the cost of the teachout and
158-13 refund expenses, the teachout or the refund may be paid from the
158-14 barber school or college account except that no school owned,
158-15 either in whole or in part, by a person or corporate entity who was
158-16 an owner, in whole or in part, of a previously closed school shall
158-17 be permitted to receive compensation for a teachout under this
158-18 section.
158-19 (l) If a student cannot be placed in another school or
158-20 college, the student's tuition and fees shall be refunded under
158-21 Section 9A(g) of this Act.
158-22 (m) If a student does not accept a place that is available
158-23 and reasonable in another school or college, the student's tuition
158-24 and fees shall be refunded under the refund policy maintained by
158-25 the closing school under Sections 9A(b) and (c) of this Act.
158-26 (n) Attorney's fees, court costs, or damages may not be paid
158-27 from the barber school or college account.
159-1 (o) The board by rule shall establish and assess reasonable
159-2 and necessary fees to all persons and entities licensed under this
159-3 Act to be used for the regulation of those persons and entities
159-4 licensed under this Act and to supplement the administration and
159-5 purposes outlined by this Act.
159-6 (p) The board may permit payment of any fee authorized under
159-7 this section that exceeds $1,000 to be paid by installment. The
159-8 board shall provide for appropriate interest charges and late
159-9 penalties in addition to any other remedy that is provided for by
159-10 law for the late payment of a fee installment authorized under this
159-11 section. The board may assess a reasonable service charge to be
159-12 paid by a school that pays a fee by installment in an amount not to
159-13 exceed an annual rate of 10 percent of the fee that is to be paid
159-14 by installment.
159-15 Sec. 9H. (a) The board shall prepare a comparison of the
159-16 cost to a student of courses of instruction or training programs at
159-17 all barber schools or colleges maintained by persons who hold
159-18 barber school or college permits issued by the board.
159-19 (b) The cost comparison must include for each school or
159-20 college a description of:
159-21 (1) average class size;
159-22 (2) facilities and equipment;
159-23 (3) employment and placement rates;
159-24 (4) length of program; and
159-25 (5) faculty qualifications.
159-26 Sec. 9I. (a) A barber school or college must disclose to
159-27 all prospective students state licensing requirements to practice
160-1 the occupation for which the student is training.
160-2 (b) A school or college must disclose to all prospective
160-3 students the performance of graduates from the school or college on
160-4 the licensing examination of the board if that information is
160-5 available.
160-6 Sec. 9J. (a) The board shall approve entrance requirements,
160-7 including minimum skills testing, for students who may be accepted
160-8 for a course of study in a barber school or college. The
160-9 requirements must be specific and provide that students who are
160-10 allowed to enter a course will have a reasonable chance of
160-11 completing the program.
160-12 (b) The school or college shall administer a standardized
160-13 test to students entering the school, if testing for minimum skill
160-14 competency is determined by the board as appropriate and necessary
160-15 to determine if remediation is needed. The test must be
160-16 administered before enrollment and must be nationally recognized as
160-17 appropriate and effective for minimum skills testing. If the test
160-18 reveals the necessity for remediation, the school or college must
160-19 implement a plan to encourage the student to improve in basic
160-20 general education skills.
160-21 (c) A student must achieve a successful score on the test
160-22 required by this section before the student is obligated for
160-23 tuition and fees for the vocational portion of the school's
160-24 program.
160-25 (d) The school or college may, in accordance with federal
160-26 statutory provisions affecting guaranteed student loan programs, on
160-27 a case-by-case basis, refuse to provide the certification
161-1 statements required for guaranteed student loan eligibility, or
161-2 reduce the determination of need for a guaranteed student loan if
161-3 the school or college determines that the student's expenses to be
161-4 covered by the loan and the estimated cost of attendance, can be
161-5 met more appropriately by the school or college, directly by the
161-6 student, or by other sources.
161-7 Sec. 9K. (a) An applicant without a high school diploma or
161-8 high school equivalency certificate must pass an entrance test
161-9 approved by the board and be considered to have the ability to
161-10 benefit from the school or college before the school or college may
161-11 enroll the student.
161-12 (b) A school or college that admits a student who does not
161-13 have a high school diploma or high school equivalency certificate
161-14 must develop and implement a plan for counseling the student on
161-15 curriculum, student aid, employment opportunities, and the
161-16 remediation necessary for the student to obtain a high school
161-17 equivalency certificate and improve in basic general education
161-18 skills.
161-19 (c) The school or college must assist the student in
161-20 obtaining the remediation necessary for the student to pass a
161-21 standardized minimum skills test, approved by the board, and the
161-22 student must pass the test before entering the final quarter of the
161-23 course.
161-24 Sec. 9L. (a) The enrollment contract of a barber school or
161-25 college must contain:
161-26 (1) a disclosure that the contract is a legally
161-27 binding instrument on written acceptance of the student by the
162-1 school or college, unless canceled as provided by law;
162-2 (2) the school's or college's cancellation and refund
162-3 policy;
162-4 (3) the method of cancellation of the contract, the
162-5 effective date of any cancellation, and the name and address to
162-6 which the notice of cancellation should be sent or delivered;
162-7 (4) the total cost of the course including tuition and
162-8 all other charges;
162-9 (5) a notification that the fair market value of
162-10 equipment or supplies furnished to the student that the student
162-11 fails to return in a condition suitable for resale not later than
162-12 the 10th business day after the date of cancellation may be
162-13 retained by the school or college and deducted from any refund of
162-14 the student;
162-15 (6) a statement that if a student's enrollment is
162-16 canceled for any reason, the school or college will notify an
162-17 agency known to the school or college to be providing financial aid
162-18 to the student of the cancellation not later than the 30th day
162-19 after the date of cancellation;
162-20 (7) the name and description of the courses, including
162-21 the number of hours of classroom instruction or home study lessons.
162-22 (b) An enrollment contract may not contain a wage assignment
162-23 provision or a confession of judgment clause.
162-24 (c) Immediately after a prospective student has signed an
162-25 enrollment contract, the school or college shall give the
162-26 prospective student a copy of the contract, and a copy shall be
162-27 placed in the student's permanent school or college file.
163-1 Sec. 9M. (a) A school or college shall conduct loan
163-2 counseling entrance interviews with each prospective student
163-3 seeking a loan during the enrollment process. A student borrower
163-4 shall be counseled before the initial disbursement of loan
163-5 proceeds, shortly before the student completes one-half of the
163-6 course, and before the student is issued a certificate of
163-7 completion.
163-8 (b) The school's or college's financial aid officer or
163-9 counselor shall conduct the interviews required by Subsection (a)
163-10 of this section. The interview must include a discussion of:
163-11 (1) the rights and responsibilities of the student as
163-12 a borrower;
163-13 (2) what a loan is and the importance of repayment;
163-14 (3) the total cost of the program in which the student
163-15 will be enrolled;
163-16 (4) the availability of other forms of financial aid,
163-17 grants, and part-time work;
163-18 (5) the starting range and average reported salaries
163-19 of those in the occupation for which the student will be trained,
163-20 if available; and
163-21 (6) job placement services provided by the school or
163-22 college and the employment rate of persons who attended the school
163-23 or college and were enrolled in the program in which the student is
163-24 enrolled.
163-25 (c) A school approved to accept state or federal educational
163-26 loans or grants shall adopt, in addition to the provisions in this
163-27 section, measures to reduce defaults and improve borrowers
164-1 understanding and respect for the loan repayment obligation as
164-2 provided in 34 C.F.R., Parts 668 and 682.
164-3 (d) The school or college must give a copy of the Texas
164-4 Guaranteed Student Loan Corporation's "Your Future" guide, or a
164-5 comparable document approved by the board, to a prospective student
164-6 at a time and in a manner that provides the student with sufficient
164-7 opportunity to read the guide or other document and discuss the
164-8 contents with the school's financial aid officer, if necessary for
164-9 understanding and clarity, before signing an enrollment contract
164-10 and before the school accepts the student in a course of study.
164-11 (e) The prospective student must sign a document stating
164-12 that the student:
164-13 (1) attended a loan counseling entrance interview; and
164-14 (2) received a copy of the "Your Future" guide or
164-15 comparable document in the time provided by Subsection (d) of this
164-16 section.
164-17 (f) A copy of the signed document required by Subsection (e)
164-18 of this section must be sent to the student, guarantor, and lender
164-19 and must be placed in the student's permanent school or college
164-20 file.
164-21 Sec. 9N. (a) A barber school or college shall maintain
164-22 permanent records for all students enrolled, as required by the
164-23 board.
164-24 (b) A school or college shall adopt a plan to preserve
164-25 permanent records and submit the plan to the board for approval.
164-26 The plan must:
164-27 (1) provide that at least one copy of the records will
165-1 be held in a secure depository; and
165-2 (2) designate an appropriate official to provide a
165-3 student with copies of records or transcripts on request.
165-4 (c) The school or college shall make the first copy of
165-5 records or transcripts at no charge to the student. The school or
165-6 college may make a reasonable charge to provide additional copies
165-7 of records, transcripts, or other student information.
165-8 (d) If a school or college closes, the records become the
165-9 property of the state.
165-10 Sec. 9O. (a) The board may not adopt rules that restrict
165-11 advertising by a barber school or college except to prohibit false,
165-12 misleading, or deceptive advertising practices. The rules may not
165-13 restrict:
165-14 (1) the use of an advertising medium;
165-15 (2) the size or duration of an advertisement; or
165-16 (3) advertisement under a trade name.
165-17 (b) A school or college, the representative of a school or
165-18 college, or a recruiter for the school or college may not advertise
165-19 or represent, in writing or orally, that a school or college is
165-20 approved or accredited by the state. Those entities or persons may
165-21 advertise that the school or college has been granted a permit by
165-22 the state.
165-23 (c) A school or college, representative of a school or
165-24 college, or recruiter of a school or college may not make or cause
165-25 to be made a statement or representation, written, oral, or visual,
165-26 offering or publicizing a course, program, or school or college, if
165-27 the school or college, representative, or recruiter knew or
166-1 reasonably should have known that the statement or representation
166-2 was false, fraudulent, deceptive, substantially inaccurate, or
166-3 misleading.
166-4 Sec. 9P. (a) A school or college may not reflect unearned
166-5 tuition as a current asset unless the amount shown in current
166-6 assets that reflects unearned tuition is offset by an equal amount
166-7 shown as a current liability. The school or college must meet one
166-8 of the following criteria in order to be determined as financially
166-9 sound and capable of fulfilling its commitments for training:
166-10 (1) current assets must bear a relationship to current
166-11 liabilities in a ratio of at least one-to-one; or
166-12 (2) the school or college must have posted, or set
166-13 aside in a dedicated escrow account, a bond, certificate of
166-14 deposit, irrevocable letter of credit, or comparable security,
166-15 acceptable to the board, each made payable to the State of Texas,
166-16 in an amount sufficient to cover the school's or college's record
166-17 storage costs, teachout, and tuition and fees refund and recovery
166-18 exposure based on the evidence the school or college submits
166-19 proving its projected maximum total unearned tuition during the
166-20 period of time covered by the evidence of indebtedness to the
166-21 State.
166-22 (b) The school or college must demonstrate to the
166-23 satisfaction of the board its financial soundness and ability to
166-24 fulfill its commitments for training. If requested by the school
166-25 and administrator, the School Accounts Advisory Board shall
166-26 investigate the financial soundness of a school that does not meet
166-27 the requirements of (1) or (2) above in order to determine if the
167-1 school is capable of fulfilling its obligations under this Act.
167-2 Sec. 9Q. PROHIBITIONS. A person may not:
167-3 (1) operate a barber school or college without a
167-4 permit or assume ownership of an existing barber school or college
167-5 without obtaining a new permit;
167-6 (2) solicit prospective students for a barber school
167-7 or college without having a permit as required by this Act;
167-8 (3) accept contracts or enrollment applications from a
167-9 representative of a barber school or college who is not registered
167-10 as required by any board rule requiring registration;
167-11 (4) use advertising designed to mislead or deceive
167-12 prospective barber school or college students;
167-13 (5) fail to notify the board of the discontinuance of
167-14 the operation of any barber school or college not later than the
167-15 72nd hour after cessation of classes or make available accurate
167-16 records as required by this Act;
167-17 (6) fail to secure and file within 30 days any
167-18 increased bond required by this Act;
167-19 (7) negotiate any promissory instrument received as
167-20 payment of tuition for a barber school or college or other charge
167-21 before completion of 75 percent of the course, provided that before
167-22 that time, the instrument may be transferred by assignment to a
167-23 purchaser who is subject to any defense available against the
167-24 barber school or college named as payee;
167-25 (8) enroll a student in a barber school or college who
167-26 fails to satisfy entrance requirements; or
167-27 (9) violate any provision of this Act relating to a
168-1 barber school or college or a rule adopted under this Act relating
168-2 to a barber school or college.
168-3 Sec. 9R. ADMINISTRATIVE PENALTY. (a) The board may impose
168-4 an administrative penalty against a person who violates Section 9Q
168-5 of this Act.
168-6 (b) The penalty for a violation may be in an amount not to
168-7 exceed $10,000.
168-8 (c) The amount of the penalty shall be based on:
168-9 (1) the seriousness of the violation, including the
168-10 nature, circumstances, extent, and gravity of any prohibited acts;
168-11 (2) efforts to correct the violation; and
168-12 (3) any other matter that justice may require.
168-13 (d) An executive director who determines that a violation
168-14 has occurred may issue to the board a report that states the facts
168-15 on which the determination is based and the director's
168-16 recommendation on the imposition of a penalty, including a
168-17 recommendation on the amount of the penalty.
168-18 (e) Within 14 days after the date the report is issued, the
168-19 executive director shall give written notice of the report to the
168-20 person. The notice may be given by certified mail. The notice
168-21 must include a brief summary of the alleged violation and a
168-22 statement of the amount of the recommended penalty and must inform
168-23 the person that the person has a right to a hearing on the
168-24 occurrence of the violation, the amount of the penalty, or both the
168-25 occurrence of the violation and the amount of the penalty.
168-26 (f) Within 20 days after the date the person receives the
168-27 notice, the person in writing may accept the determination and
169-1 recommended penalty of the executive director or may make a written
169-2 request for a hearing on the occurrence of the violation, the
169-3 amount of the penalty, or both the occurrence of the violation and
169-4 the amount of the penalty.
169-5 (g) If the person accepts the determination and recommended
169-6 penalty of the executive director, the board by order shall approve
169-7 the determination and impose the recommended penalty.
169-8 (h) If the person requests a hearing or fails to respond
169-9 timely to the notice, the executive director shall set a hearing
169-10 and give notice of the hearing to the person. The hearing shall be
169-11 held by an administrative law judge of the State Office of
169-12 Administrative Hearings. The administrative law judge shall make
169-13 findings of fact and conclusions of law and promptly issue to the
169-14 board a proposal for a decision about the occurrence of the
169-15 violation and the amount of a proposed penalty. Based on the
169-16 findings of fact, conclusions of law, and proposal for a decision,
169-17 the board by order may find that a violation has occurred and
169-18 impose a penalty or may find that no violation occurred.
169-19 (i) The notice of the board's order given to the person
169-20 under the Administrative Procedure and Texas Register Act (Article
169-21 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
169-22 amendments must include a statement of the right of the person to
169-23 judicial review of the order.
169-24 (j) Within 30 days after the date the board's order is final
169-25 as provided by Section 16(c), Administrative Procedure and Texas
169-26 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
169-27 its subsequent amendments, the person shall:
170-1 (1) pay the amount of the penalty;
170-2 (2) pay the amount of the penalty and file a petition
170-3 for judicial review contesting the occurrence of the violation, the
170-4 amount of the penalty, or both the occurrence of the violation and
170-5 the amount of the penalty; or
170-6 (3) without paying the amount of the penalty, file a
170-7 petition for judicial review contesting the occurrence of the
170-8 violation, the amount of the penalty, or both the occurrence of the
170-9 violation and the amount of the penalty.
170-10 (k) Within the 30-day period, a person who acts under
170-11 Subsection (j)(3) of this section may:
170-12 (1) stay enforcement of the penalty by:
170-13 (A) paying the amount of the penalty to the
170-14 court for placement in an escrow account; or
170-15 (B) giving to the court a supersedeas bond that
170-16 is approved by the court for the amount of the penalty and that is
170-17 effective until all judicial review of the board's order is final;
170-18 or
170-19 (2) request the court to stay enforcement of the
170-20 penalty by:
170-21 (A) filing with the court a sworn affidavit of
170-22 the person stating that the person is financially unable to pay the
170-23 amount of the penalty and is financially unable to give the
170-24 supersedeas bond; and
170-25 (B) giving a copy of the affidavit to the
170-26 executive director by certified mail.
170-27 (l) An executive director who receives a copy of an
171-1 affidavit under Subsection (k)(2) of this section may file with the
171-2 court, within five days after the date the copy is received, a
171-3 contest to the affidavit. The court shall hold a hearing on the
171-4 facts alleged in the affidavit as soon as practicable and shall
171-5 stay the enforcement of the penalty on finding that the alleged
171-6 facts are true. The person who files an affidavit has the burden
171-7 of proving that the person is financially unable to pay the amount
171-8 of the penalty and to give a supersedeas bond.
171-9 (m) If the person does not pay the amount of the penalty and
171-10 the enforcement of the penalty is not stayed, the executive
171-11 director may refer the matter to the attorney general for
171-12 collection of the amount of the penalty.
171-13 (n) Judicial review of the order of the board:
171-14 (1) is instituted by filing a petition as provided by
171-15 Section 19, Administrative Procedure and Texas Register Act
171-16 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
171-17 subsequent amendments; and
171-18 (2) is under the substantial evidence rule.
171-19 (o) If the court sustains the occurrence of the violation,
171-20 the court may uphold or reduce the amount of the penalty and order
171-21 the person to pay the full or reduced amount of the penalty. If
171-22 the court does not sustain the occurrence of the violation, the
171-23 court shall order that no penalty is owed.
171-24 (p) When the judgment of the court becomes final, the court
171-25 shall proceed under this subsection. If the person paid the amount
171-26 of the penalty and if that amount is reduced or is not upheld by
171-27 the court, the court shall order that the appropriate amount plus
172-1 accrued interest be remitted to the person. The rate of the
172-2 interest is the rate charged on loans to depository institutions by
172-3 the New York Federal Reserve Bank, and the interest shall be paid
172-4 for the period beginning on the date the penalty was paid and
172-5 ending on the date the penalty is remitted. If the person gave a
172-6 supersedeas bond and if the amount of the penalty is not upheld by
172-7 the court, the court shall order the release of the bond. If the
172-8 person gave a supersedeas bond and if the amount of the penalty is
172-9 reduced, the court shall order the release of the bond after the
172-10 person pays the amount.
172-11 (q) A penalty collected under this section shall be remitted
172-12 to the comptroller for deposit in the general revenue fund.
172-13 (r) All proceedings under this section are subject to the
172-14 Administrative Procedure and Texas Register Act (Article 6252-13a,
172-15 Vernon's Texas Civil Statutes) and its subsequent amendments.
172-16 Sec. 9S. (a) A person commits an offense if the person
172-17 fails to comply with Section 9 or 9A of this Act. Except as
172-18 provided by Subsection (b) of this section, an offense under this
172-19 section is a Class A misdemeanor.
172-20 (b) A person commits an offense if the person intentionally
172-21 or knowingly uses for personal benefit funds in an amount greater
172-22 than $10,000 that are due as student refunds under Section 9A of
172-23 this Act. An offense under this subsection is a felony of the
172-24 third degree.
172-25 SECTION 4.06. Sections 15(c) and (d), Chapter 65, Acts of
172-26 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
172-27 Vernon's Texas Civil Statutes), are amended to read as follows:
173-1 (c) The application shall be made on a form prescribed by
173-2 the board and an <a $10> administration fee in an amount
173-3 established by the board must accompany the application.
173-4 (d) The applicant is entitled to a manicurist license if
173-5 such applicant possesses the qualifications enumerated in Section
173-6 15(b), satisfactorily completes the examination, pays a license fee
173-7 in an amount established by the board <not to exceed $30>, and has
173-8 not committed an act which constitutes grounds for denial of a
173-9 license under this Act.
173-10 SECTION 4.07. Sections 15A(b) and (g), Chapter 65, Acts of
173-11 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
173-12 Vernon's Texas Civil Statutes), are amended to read as follows:
173-13 (b) An applicant for a manicurist specialty shop permit must
173-14 submit a written application to the board. The application must be
173-15 accompanied by an inspection fee set by the board <in an amount not
173-16 to exceed $50>. The application must include the address of the
173-17 shop, a legal description of the premises for which the permit is
173-18 sought, and any other information required by the board. As soon
173-19 as practicable after receipt of the application and fee, the board
173-20 shall issue a temporary manicurist specialty shop permit to the
173-21 applicant.
173-22 (g) A permit issued under this section expires July 1 of
173-23 each odd-numbered year. A holder may renew the permit by
173-24 submitting a renewal application to the board, accompanied by a
173-25 renewal fee set by the board <not to exceed $50>.
173-26 SECTION 4.08. Sections 16(c) and (d), Chapter 65, Acts of
173-27 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
174-1 Vernon's Texas Civil Statutes), are amended to read as follows:
174-2 (c) The application shall be made on a form prescribed by
174-3 the board <commission> and an <a $10> administration fee in an
174-4 amount established by the board must accompany the application.
174-5 (d) The applicant is entitled to a wig specialist license if
174-6 he possesses the qualifications enumerated in Subsection (b) of
174-7 this section, satisfactorily completes the examination, pays a
174-8 license fee in an amount established by the board <not to exceed
174-9 $30>, and has not committed an act which constitutes grounds for
174-10 revocation of a license under this Act.
174-11 SECTION 4.09. Sections 17(c) and (d), Chapter 65, Acts of
174-12 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
174-13 Vernon's Texas Civil Statutes), are amended to read as follows:
174-14 (c) The application shall be made on a form prescribed by
174-15 the board, state the education and experience level of the
174-16 applicant in all courses or programs that the applicant will teach
174-17 or instruct, and an <a $5> administration fee in an amount
174-18 established by the board must accompany the application.
174-19 (d) The board shall review an application for competency,
174-20 consistency, and the overall quality of the applicant. The
174-21 applicant is entitled to a wig instructor license if he possesses
174-22 the qualifications enumerated in Subsection (b) of this section,
174-23 satisfactorily completes the examination, pays a license fee in an
174-24 amount established by the board <not to exceed $100>, and has not
174-25 committed any act constituting grounds for revocation of a license
174-26 under this Act.
174-27 SECTION 4.10. Sections 18(b) and (g), Chapter 65, Acts of
175-1 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
175-2 Vernon's Texas Civil Statutes), are amended to read as follows:
175-3 (b) An applicant for a wig specialty shop permit must submit
175-4 a written application to the board. The application must be
175-5 accompanied by an inspection fee set by the board <in an amount not
175-6 to exceed $50>. The application must include the address of the
175-7 shop, a legal description of the premises for which the permit is
175-8 sought, and any other information required by the board. As soon
175-9 as practicable after receipt of the application and fee, the board
175-10 shall issue a temporary wig specialty shop permit to the applicant.
175-11 (g) A permit issued under this section expires July 1 of
175-12 each odd-numbered year. A holder may renew the permit by
175-13 submitting a renewal application to the board, accompanied by a
175-14 renewal fee set by the board <not to exceed $50>.
175-15 SECTION 4.11. Section 18.1(c), Chapter 65, Acts of the 41st
175-16 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
175-17 Texas Civil Statutes), is amended to read as follows:
175-18 (c) The applicant is entitled to a wig school permit if the
175-19 application shows compliance with the rules and regulations of the
175-20 board, a <$100> permit fee in an amount established by the board is
175-21 paid, and applicant has not committed an act which constitutes
175-22 grounds for revocation of a license or permit under this Act.
175-23 SECTION 4.12. Section 19, Chapter 65, Acts of the 41st
175-24 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
175-25 Texas Civil Statutes), is amended to read as follows:
175-26 Sec. 19. DISPLAY OF CERTIFICATE. (a) Every holder of a
175-27 certificate of registration or license issued by the board shall
176-1 display the original certificate or license, together with an
176-2 attached photograph of the certificate holder or licensee, in a
176-3 conspicuous place adjacent to or near the certificate holder's or
176-4 licensee's work-chair in the shop in which the certificate holder
176-5 or licensee is working or employed.
176-6 (b) The board may not use the word "approval" or a variation
176-7 of that term on the permit of a barber school or college. The
176-8 terminology must be "permit" to operate, or a variation of that
176-9 phrase.
176-10 SECTION 4.13. Sections 20(a), (c), and (d), Chapter 65, Acts
176-11 of the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
176-12 Vernon's Texas Civil Statutes), are amended to read as follows:
176-13 (a) Each certificate of registration or license issued under
176-14 this Act expires two years from the date of issuance. Each
176-15 registered Class A barber, barber technician, teacher, wig
176-16 instructor, wig specialist, manicurist, or other licensed
176-17 specialist who continues in active practice or service must renew
176-18 the certificate or license on or before the expiration date. The
176-19 Board shall issue a renewal certificate or license on receipt of a
176-20 renewal application in the form prescribed by the Board,
176-21 accompanied by the renewal fee set by the Board in the amount for
176-22 an original certificate or license<, but not to exceed $100>.
176-23 (c) Any registered barber or licensee whose certificate of
176-24 registration or license has been expired for not more than five (5)
176-25 years may reinstate the certificate of registration or license by
176-26 making proper showing to the Board, supported by his personal
176-27 affidavit, which, in the opinion of the Board, would justify the
177-1 Board in issuing a certificate or license to such applicant as upon
177-2 an original application upon payment of a fee equal to the current
177-3 amount of the original certificate or license fee, plus a
177-4 delinquency fee in an amount established by the Board <of $30> for
177-5 each year or part of a year that the certificate or license has
177-6 been expired.
177-7 (d) Any registered barber or licensee who retires from
177-8 practice and whose certificate of registration or license has been
177-9 expired for more than five (5) years may qualify for a new
177-10 certificate of registration or license by making application to the
177-11 Board and by making proper showing to the Board, supported by his
177-12 personal affidavit, and by paying an examination fee in an amount
177-13 established by the Board <not to exceed $100>, passing a
177-14 satisfactory examination conducted by the Board, and paying the fee
177-15 for an original certificate of registration or license.
177-16 SECTION 4.14. Section 20a, Chapter 65, Acts of the 41st
177-17 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
177-18 Texas Civil Statutes), is amended to read as follows:
177-19 Sec. 20a. Any registered barber, barber technician, teacher,
177-20 manicurist, or wig specialist shall not be required to renew his
177-21 certificate of registration while serving on active duty in the
177-22 military, air or naval forces of the United States, and the Board
177-23 shall issue a renewal certificate upon application and payment of a
177-24 renewal fee within ninety (90) days from the date such registered
177-25 barber, barber technician, teacher, manicurist, or wig specialist
177-26 is released or discharged from active duty in the armed forces.
177-27 The renewal fee shall be in an amount established by the Board and
178-1 different renewal fees may be established depending on whether<:>
178-2 <(1) Ten Dollars ($10) if> the application and payment
178-3 is made:
178-4 (1) during the period from November 1 of an
178-5 odd-numbered year and extending through October 31 of the following
178-6 even-numbered year; or
178-7 (2) <Five Dollars ($5) if the application and payment
178-8 is made> during the period from November 1 of an even-numbered year
178-9 and extending through October 31 of the following odd-numbered
178-10 year.
178-11 SECTION 4.15. Sections 23(b) and (c), Chapter 65, Acts of
178-12 the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
178-13 Vernon's Texas Civil Statutes), are amended to read as follows:
178-14 (b) The fee <fees> to be paid to the Board by an applicant
178-15 for an examination to determine his fitness to receive a
178-16 certificate of registration to practice barbering or to practice as
178-17 a barber technician shall be in an amount established by the Board
178-18 <$10>.
178-19 (c) The fee <fees> to be paid to the Board by an applicant
178-20 who has satisfactorily passed the examination and complied with the
178-21 other provisions of this Act to receive a certificate of
178-22 registration to practice barbering or to practice as a barber
178-23 technician shall be set by the Board <in an amount not to exceed
178-24 $100>.
178-25 SECTION 4.16. Section 29A, Chapter 65, Acts of the 41st
178-26 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
178-27 Texas Civil Statutes), is amended to read as follows:
179-1 Sec. 29A. (a) The board shall keep an information file
179-2 about each complaint filed with the board that the board has
179-3 authority to resolve. If a written complaint is filed with the
179-4 board that the board has authority to resolve, the board, at least
179-5 quarterly and until final disposition of the complaint, shall
179-6 notify the parties to the complaint of the status of the complaint
179-7 unless the notice would jeopardize an undercover investigation.
179-8 (b) The board shall prepare information of public interest
179-9 describing the functions of the board and the procedures by which
179-10 complaints are filed with and resolved by the board against a
179-11 barber school or college. The board shall make the information
179-12 available to the public and appropriate state agencies.
179-13 SECTION 4.17. Section 29E, Chapter 65, Acts of the 41st
179-14 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
179-15 Texas Civil Statutes), is amended to read as follows:
179-16 Sec. 29E. A barber shop, specialty shop, or barber school
179-17 permit that has been expired for more than 30 days may be renewed
179-18 by filing a renewal application with the board, accompanied by the
179-19 regular renewal fee, and a delinquency fee in an amount established
179-20 by the board <of $30> for each year or part of a year that the
179-21 permit has been expired.
179-22 SECTION 4.18. Any balance remaining in funds designated for
179-23 the purposes of this Act shall be transferred to the Barber School
179-24 or College Account in the General Revenue Fund on the effective
179-25 date of this Act.
179-26 PART 5. PRIVATE BEAUTY CULTURE SCHOOLS
179-27 SECTION 5.01. Section 9(b), Chapter 1036, Acts of the 62nd
180-1 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
180-2 Civil Statutes), is amended to read as follows:
180-3 (b) A person may not conduct or operate a beauty shop,
180-4 private<,> beauty culture school, specialty shop, or any other
180-5 place of business in which the practice of cosmetology is taught or
180-6 practiced, conduct a vocational cosmetology program in a public
180-7 school, or lease space on the premises of a beauty shop to engage
180-8 in the practice of cosmetology as an independent contractor without
180-9 first obtaining a license.
180-10 SECTION 5.02. Section 10(d), Chapter 1036, Acts of the 62nd
180-11 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
180-12 Civil Statutes), is amended to read as follows:
180-13 (d) The applicant is entitled to an operator license if he
180-14 possesses the qualifications enumerated in Subsection (b) of this
180-15 section, satisfactorily completes the examination, pays a <$35>
180-16 license fee in an amount established by the commission, and has not
180-17 committed an act that constitutes a ground for denial of a license.
180-18 SECTION 5.03. Section 11(d), Chapter 1036, Acts of the 62nd
180-19 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
180-20 Civil Statutes), is amended to read as follows:
180-21 (d) The applicant is entitled to a manicurist license if he
180-22 possesses the qualifications enumerated in Subsection (b) of this
180-23 section, satisfactorily completes the examination, pays a <$35>
180-24 license fee in an amount established by the commission, and has not
180-25 committed an act that constitutes a ground for denial of a license.
180-26 SECTION 5.04. Sections 12(c) and (d), Chapter 1036, Acts of
180-27 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
181-1 Vernon's Texas Civil Statutes), are amended to read as follows:
181-2 (c) The application must state the education and experience
181-3 level of the applicant in all courses or programs that the
181-4 applicant will teach or instruct, be on a form prescribed by the
181-5 commission, and <must> be filed at least 10 days before the date
181-6 set for the examination.
181-7 (d) The commission shall review an application for
181-8 competency, consistency, and the overall quality of the applicant.
181-9 The applicant is entitled to an instructor license if he possesses
181-10 qualifications enumerated in Subsection (b) of this section,
181-11 satisfactorily completes the examination, pays a <$50> license fee
181-12 in an amount established by the commission, and has not committed
181-13 an act that constitutes a ground for denial of a license.
181-14 SECTION 5.05. Section 13(d), Chapter 1036, Acts of the 62nd
181-15 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
181-16 Civil Statutes), is amended to read as follows:
181-17 (d) The applicant is entitled to a specialty certificate if
181-18 he possesses the qualifications enumerated in Subsection (b) of
181-19 this section, pays a <$35> certificate fee in an amount established
181-20 by the commission, and has not committed an act that constitutes a
181-21 ground for denial of a certificate.
181-22 SECTION 5.06. Section 15(b), Chapter 1036, Acts of the 62nd
181-23 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
181-24 Civil Statutes), is amended to read as follows:
181-25 (b) A temporary license shall be issued on submission of an
181-26 application form prescribed by the commission and payment of a
181-27 <$45> temporary license fee in an amount established by the
182-1 commission if the applicant meets the requirements of Subsection
182-2 (a) of this section.
182-3 SECTION 5.07. Section 16, Chapter 1036, Acts of the 62nd
182-4 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
182-5 Civil Statutes), is amended to read as follows:
182-6 Sec. 16. Duplicate License or Certificate. (a) A duplicate
182-7 license or certificate shall be issued upon application on a form
182-8 prescribed by the commission and on the payment of a <$35> fee in
182-9 an amount established by the commission.
182-10 (b) A transcript shall be given to licensees under this Act
182-11 upon application on a form prescribed by the commission and payment
182-12 of a <$5> fee in an amount established by the commission.
182-13 SECTION 5.08. Section 17(b), Chapter 1036, Acts of the 62nd
182-14 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
182-15 Civil Statutes), is amended to read as follows:
182-16 (b) The applicant shall submit an application on a form
182-17 prescribed by the commission and pay a <$100> fee in an amount
182-18 established by the commission, plus the applicable license or
182-19 certification fee.
182-20 SECTION 5.09. Sections 18(b) and (c), Chapter 1036, Acts of
182-21 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
182-22 Vernon's Texas Civil Statutes), are amended to read as follows:
182-23 (b) A student permit shall be issued on submission of an
182-24 application form prescribed by the commission and payment of a
182-25 <$25> fee in an amount established by the commission which must
182-26 accompany the application.
182-27 (c) The cost of the permit shall also include one
183-1 examination fee in an amount established by the commission and a
183-2 transcript fee in an amount established by the commission and may
183-3 not be refunded.
183-4 SECTION 5.10. Sections 19(b) and (c), Chapter 1036, Acts of
183-5 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
183-6 Vernon's Texas Civil Statutes), are amended to read as follows:
183-7 (b) An applicant for a beauty shop license must submit an
183-8 application on a form prescribed by the commission. The
183-9 application must contain proof of the particular requisites for a
183-10 beauty shop as established by the commission and must be verified
183-11 by the applicant. With the application, the applicant must submit
183-12 an <a $35> inspection fee in an amount established by the
183-13 commission.
183-14 (c) The applicant is entitled to a beauty shop license if
183-15 the application shows compliance with the rules of the commission,
183-16 a <$45> license fee in an amount established by the commission is
183-17 paid, and he has not committed an act that constitutes a ground for
183-18 denial of a license.
183-19 SECTION 5.11. Sections 20(b) and (c), Chapter 1036, Acts of
183-20 the 62nd Legislature, Regular Session, 1971 (Article 8451a,
183-21 Vernon's Texas Civil Statutes), are amended to read as follows:
183-22 (b) An applicant for a specialty shop license must submit an
183-23 application on a form prescribed by the commission. The
183-24 application must contain proof of the particular requisites for a
183-25 specialty shop as established by the commission and must be
183-26 verified by the applicant. With the application, the applicant
183-27 must submit an <a $35> inspection fee in an amount established by
184-1 the commission.
184-2 (c) The applicant is entitled to a specialty shop license if
184-3 the application shows compliance with the rules and regulations of
184-4 the commission, a <$45> license fee in an amount established by the
184-5 commission is paid, and he has not committed an act that
184-6 constitutes a ground for denial of a license.
184-7 SECTION 5.12. Section 21, Chapter 1036, Acts of the 62nd
184-8 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
184-9 Civil Statutes), is amended to read as follows:
184-10 Sec. 21. PRIVATE BEAUTY CULTURE SCHOOL LICENSE; APPLICATION;
184-11 REFUND POLICY. (a) A person holding a private beauty culture
184-12 school license may maintain an establishment in which any practice
184-13 of cosmetology is taught.
184-14 (b) An applicant for a private beauty culture school license
184-15 must submit an application on a form prescribed by the commission.
184-16 Each application must be verified by the applicant and must
184-17 contain:
184-18 (1) a detailed floor plan of the school building
184-19 divided into three separate areas, one for instruction in theory,
184-20 one for practice work of senior students, and one for practice work
184-21 of juniors; <and>
184-22 (2) a statement that the building is fireproof and of
184-23 permanent type construction, contains a minimum of 3,500 square
184-24 feet of floor space, with separate restrooms for male and female
184-25 students, and contains or will contain before classes commence the
184-26 equipment established by rule of the commission as sufficient to
184-27 properly instruct a minimum of 50 students; and
185-1 (3) a statement of any final convictions of the
185-2 owners, school directors, recruiters, instructional faculty, or
185-3 other selected personnel of the private beauty culture school as
185-4 determined by the commission. The commission may obtain criminal
185-5 history records of school directors or instructional faculty from
185-6 any law enforcement agency, including the United States Department
185-7 of Justice, the Department of Public Safety of the State of Texas,
185-8 the Texas Department of Criminal Justice, or the police department
185-9 of a municipality. The administrator may deny, revoke, or
185-10 disapprove the application for, or existing license, registration,
185-11 or approval of a person who has been convicted of, entered a plea
185-12 of nolo contendere, or guilty to, or received deferred adjudication
185-13 for, a felony or misdemeanor offense for which a refusal may be
185-14 issued under Article 6252-13c, Vernon's Texas Civil Statutes.
185-15 (c) The commission shall determine that an applicant for a
185-16 private beauty culture school license is financially sound and
185-17 capable of fulfilling the school's commitments for training before
185-18 granting the license.
185-19 (d) Each application for a private beauty culture school
185-20 license must be accompanied by payment of a <$500> license fee and
185-21 an <a $200> inspection fee. Each application for certification as
185-22 a public secondary or public postsecondary beauty culture school
185-23 must be accompanied by an <a $200> inspection fee. The inspection
185-24 fee is charged for each inspection trip required before approval of
185-25 the license or certificate. The commission shall establish the
185-26 amount of the fees required under this section.
185-27 (e) The facilities of each applicant shall be inspected.
186-1 The applicant is entitled to a private beauty culture school
186-2 license if the inspection shows that this Act and the rules of the
186-3 commission have been met and the applicant has not committed an act
186-4 that constitutes a ground for denial of a license.
186-5 (f) Each holder of a private beauty culture school license
186-6 must maintain a cancellation and settlement policy that provides a
186-7 full refund of all money paid by a student if:
186-8 (1) the student cancels the enrollment agreement or
186-9 contract not later than midnight of the third day after the date on
186-10 which the agreement or contract is signed by the prospective
186-11 student, excluding Saturdays, Sundays, and legal holidays; or
186-12 (2) the enrollment of the student was procured as a
186-13 result of a misrepresentation made in the advertising or
186-14 promotional materials of the school or a representation by an owner
186-15 or representative of the school.
186-16 (g) Each holder of a private beauty culture school license
186-17 must maintain a refund policy for the refund of the unused part of
186-18 tuition, fees, and other charges assessed a student if the student,
186-19 at the expiration of the cancellation period established under
186-20 Subsection (f) of this section, terminates enrollment or is
186-21 terminated by the school, as provided by this subsection <fails to
186-22 enter the course of training, withdraws from the course of
186-23 training, or is terminated from the course of training before
186-24 completion of the course>. The refund policy must provide that:
186-25 (1) a refund is based on the period of the student's
186-26 enrollment, computed on the basis of course time expressed in clock
186-27 hours;
187-1 (2) the effective date of the termination for payment
187-2 of a refund <refund purposes> is the earliest of:
187-3 (A) the last date of attendance, if the student
187-4 is terminated for failure to satisfy a school attendance, grade, or
187-5 work requirement <by the school>;
187-6 (B) the date of receipt by the license holder of
187-7 written notice of withdrawal by the student; <or>
187-8 (C) the 10th consecutive <10> school day the
187-9 student has been absent, unless any of the absences have been
187-10 excused by the school <days after the last date of attendance>; or
187-11 (D) the date the student fails to return, as
187-12 scheduled, from a leave of absence; and
187-13 (3) if tuition is collected before beginning the
187-14 course of training and if, after the expiration of the cancellation
187-15 period, the student does not begin the course of training, the
187-16 school may retain not more than $100.
187-17 (h) If a student who begins a course of training that is
187-18 scheduled to run not more than 12 months withdraws from the course
187-19 or is terminated from the course by the school, the private beauty
187-20 culture school may retain $100 in tuition and fees paid by that
187-21 student and is not obligated to refund any additional outstanding
187-22 tuition if the student withdraws or is terminated during the last
187-23 quarter <50 percent> of the course. If the student withdraws or is
187-24 terminated before the last quarter <50 percent> of the course
187-25 begins, the school shall refund the following percentages of any
187-26 outstanding tuition:
187-27 (1) for withdrawal or termination occurring during the
188-1 first week or first one-tenth of the course, whichever is less, 90
188-2 percent;
188-3 (2) for withdrawal or termination occurring after the
188-4 first week or first one-tenth of the course, whichever is less, but
188-5 within the first three weeks of the course, 80 percent;
188-6 (3) for withdrawal or termination occurring after the
188-7 first three weeks of the course but not later than the completion
188-8 of the first 25 percent of the course, 75 percent; <and>
188-9 (4) for withdrawal or termination occurring during the
188-10 <not later than the completion of the> second quarter <25 percent>
188-11 of the course, 50 percent;
188-12 (5) for withdrawal or termination occurring during the
188-13 third quarter of the course, 10 percent; and
188-14 (6) for students withdrawing or terminating after 50
188-15 percent of the course has been completed, the school must allow
188-16 that student to reenter at any time during the 12-month period
188-17 following the date of withdrawal or termination at no additional
188-18 charge provided the full agreed on tuition has been tendered.
188-19 (i) <For students withdrawing or terminating after 50
188-20 percent of the course has been completed, the school must allow
188-21 that student to reenter at any time during the 48-month period
188-22 following the date of withdrawal or termination.>
188-23 <(j)> A refund owed under this section must be paid not
188-24 later than the 60th <30th> day after the date on which the student
188-25 becomes eligible for the refund, as determined under Subsection (g)
188-26 of this section.
188-27 (j) <(k)> If a refund is not made within the period required
189-1 by this section, the school shall pay, as a penalty, interest on
189-2 the refund for the interval beginning with the first day following
189-3 the expiration of the refund period and ending with the day
189-4 immediately preceding the date the refund is made. If the refund
189-5 is made to a lending institution, the interest shall also be paid
189-6 to that institution and applied against the student's loan. The
189-7 commissioner of education annually shall establish the level of
189-8 interest at a level sufficient to provide a deterrent to the
189-9 retention of student funds. The commission may exempt a school
189-10 from the payment of the interest if the school makes a good faith
189-11 effort to refund the tuition but is unable to locate the student.
189-12 The school shall provide to the commission on request documentation
189-13 of the effort to locate the student.
189-14 (k) <(l)> A private beauty culture school shall record a
189-15 grade of "incomplete" for a student who withdraws but is not
189-16 entitled to a refund under Subsection (h) of this section if the
189-17 student requests the grade at the time the student withdraws and if
189-18 the student withdraws for an appropriate reason unrelated to the
189-19 student's academic status. A student who receives a grade of
189-20 incomplete may re-enroll in the program during the 12-month
189-21 <48-month> period following the date the student withdraws and
189-22 complete those incomplete subjects without payment of additional
189-23 tuition.
189-24 (l) If a course of instruction is discontinued by the school
189-25 and this prevents the student from completing the course, all
189-26 tuition and fees paid are due and refundable.
189-27 (m) Refunds under this section shall be applied:
190-1 (1) first, to the repayment of federal student loans,
190-2 awards, and other Title IV student assistance, as prescribed by the
190-3 Student Consumer Requirements in the U.S. Department of Education
190-4 Higher Education Amendments of 1992;
190-5 (2) second, to the repayment of other government
190-6 loans;
190-7 (3) third, to the repayment of other financial loans;
190-8 and
190-9 (4) last, to the student's personal tuitional
190-10 expenditures.
190-11 (n) Not later than the 30th day after the date on which a
190-12 refund is due to a student who has received a student loan, the
190-13 school shall notify the guaranty agency and the lender of the
190-14 required refund and any refund previously made. The guaranty
190-15 agency and the lender shall notify the student and the school if
190-16 the student's loan has been transferred to another holder.
190-17 (o) The failure of a school or a person to pay a tuition
190-18 refund as required by this section is a deceptive trade practice
190-19 under Subchapter E, Chapter 17, Business & Commerce Code.
190-20 SECTION 5.13. Chapter 1036, Acts of the 62nd Legislature,
190-21 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
190-22 Statutes), is amended by adding Sections 21D-21L to read as
190-23 follows:
190-24 Sec. 21D. ADDITIONAL CRITERIA FOR PRIVATE BEAUTY CULTURE
190-25 SCHOOL LICENSE. Before the commission may approve the application
190-26 of a person for a private beauty culture school license, the
190-27 executive director must find, on investigation at the premises of
191-1 the school, that the school meets the following criteria:
191-2 (1) the courses, curriculum, and instruction are of a
191-3 quality, content, and length as may reasonably and adequately
191-4 achieve the stated objective for which the courses, curriculum, or
191-5 instruction are offered;
191-6 (2) there is in the school adequate space, equipment,
191-7 instructional material, and instructor personnel to provide
191-8 training of good quality;
191-9 (3) educational and experience qualifications of
191-10 directors, administrators, and instructors are adequate;
191-11 (4) the school maintains a written record of the
191-12 previous education and training of the applicant student and
191-13 clearly indicates that appropriate credit has been given by the
191-14 school for previous education and training, with the new training
191-15 period shortened where warranted through use of appropriate skills
191-16 or achievement tests and the student notified;
191-17 (5) a copy of the course outline; schedule of tuition,
191-18 fees, refund policy, and other charges; regulations pertaining to
191-19 absence, grading policy, and rules of operation and conduct;
191-20 regulations pertaining to incomplete grades; the name, mailing
191-21 address, and telephone number of the commission for the purpose of
191-22 directing complaints to the agency; the current rates of job
191-23 placement and employment of students issued a certificate of
191-24 completion; and notification of the availability of the cost
191-25 comparison information prepared under Section 21I of this Act will
191-26 be furnished to the student in the catalog before enrollment;
191-27 (6) on completion of training, the student is given a
192-1 certificate by the school indicating the course and that training
192-2 was satisfactorily completed;
192-3 (7) adequate records as required by the executive
192-4 director are kept to show attendance and progress or grades, and
192-5 satisfactory standards relating to attendance, progress, and
192-6 conduct are enforced;
192-7 (8) the school complies with all local, city, county,
192-8 municipal, state, and federal regulations; the executive director
192-9 may require evidence of compliance as is necessary;
192-10 (9) the school is financially sound and capable of
192-11 fulfilling its commitments for training;
192-12 (10) the school's administrators, directors, owners,
192-13 and instructors are of good reputation and character;
192-14 (11) the school has, maintains, and publishes in its
192-15 school catalog or comparable documents and enrollment contract the
192-16 proper policy for the refund of the unused portion of tuition,
192-17 fees, and other charges in the event the student enrolled by the
192-18 school fails to take the course or withdraws or is discontinued
192-19 from the course at any time before completion;
192-20 (12) the school does not use erroneous or misleading
192-21 advertising, either by actual statement, omission, or intimation as
192-22 determined by the commission;
192-23 (13) additional criteria as may be required by the
192-24 commission;
192-25 (14) the school does not use a name like or similar to
192-26 an existing tax-supported school in the same area;
192-27 (15) the school furnishes to the commission the
193-1 current rates of students who receive a certificate of completion
193-2 and of job placement and employment of students issued a
193-3 certificate of completion;
193-4 (16) on the graduation of a student from a course of
193-5 training offered by a private beauty culture school or the
193-6 student's withdrawal or transfer from a course of training without
193-7 completion of the training, the private beauty culture school shall
193-8 send the commission a certified written copy of the student's
193-9 record, indicating all course hours completed by the student and
193-10 whether the agreed tuition has been paid;
193-11 (17) the school furnishes to the commission for
193-12 approval or disapproval student admission requirements for each
193-13 course or program offered by the school;
193-14 (18) the school furnishes to the commission for
193-15 approval or disapproval the course lengths and curriculum content
193-16 for each course offered by the school; and
193-17 (19) the school does not owe a civil penalty under
193-18 Section 22 of this Act.
193-19 Sec. 21E. CONSUMER INFORMATION. (a) A private beauty
193-20 culture school must submit to the commission for approval, on an
193-21 annual basis, a school catalog or comparable written documents
193-22 detailing the consumer information that must be given to a
193-23 prospective student before enrollment. The school catalog or
193-24 documents must include:
193-25 (1) the name and address of the school and the
193-26 school's governing body and officials;
193-27 (2) a calendar of the school year;
194-1 (3) school policies on enrollment;
194-2 (4) rules relating to absences;
194-3 (5) the school grading policy;
194-4 (6) the school's hours of operation and rules of
194-5 conduct;
194-6 (7) a schedule of the tuition and other fees assessed;
194-7 (8) the school's cancellation and refund policy;
194-8 (9) a general description of the course or courses
194-9 offered;
194-10 (10) information on entrance testing and remedial
194-11 development plans;
194-12 (11) state licensing requirements for courses intended
194-13 to result in licensing of the student;
194-14 (12) starting range and reported average salaries for
194-15 the prior year's graduates in occupations for which courses are
194-16 offered, if the information is available;
194-17 (13) the current rates of job placement and employment
194-18 of students who complete a course of training;
194-19 (14) the school policy on credit for previous
194-20 education and training;
194-21 (15) school regulations relating to incomplete grades;
194-22 (16) information on the transferability of credits
194-23 earned;
194-24 (17) the name, mailing address, and telephone number
194-25 of the commission for the purpose of directing complaints to the
194-26 commission and the mechanism and procedures for resolving
194-27 grievances submitted to the commission;
195-1 (18) a statement that the commission has information
195-2 on cost comparison with similar schools;
195-3 (19) market and job availability information, if
195-4 available;
195-5 (20) the names of the members of any advisory council
195-6 of the school and the company for which they work; and
195-7 (21) other information required by the executive
195-8 director or commission if reasonable notice has been given by the
195-9 director or commission to the school of the additional
195-10 requirements.
195-11 (b) A private beauty culture school may not accept a signed
195-12 student enrollment contract or accept a student into any school
195-13 program until at least 24 hours after the student has received the
195-14 catalog or comparable written documents required under this
195-15 section.
195-16 (c) A student must sign a receipt stating that:
195-17 (1) the catalog was received by the student before any
195-18 commitment made by the student to the school or by the school to
195-19 the student;
195-20 (2) the student was given an opportunity to discuss
195-21 the catalog with a representative of the school; and
195-22 (3) the student understands the contents and
195-23 implications of the catalog.
195-24 (d) The receipt required by Subsection (c) of this section
195-25 must be placed in the student's permanent school file and a copy of
195-26 the receipt must be delivered to the student.
195-27 Sec. 21F. COMPLETION, EMPLOYMENT, AND PLACEMENT IN RELATION
196-1 TO PRIVATE BEAUTY CULTURE SCHOOL. (a) The commission shall set
196-2 and enforce minimum standards for completion and employment rates
196-3 of courses based on collected data.
196-4 (b) In determining whether to renew a private beauty culture
196-5 school license, the commission shall consider the completion,
196-6 placement, and employment rates of students of the courses.
196-7 (c) Before a school may begin offering a new course of study
196-8 for students, the school must show the commission the opportunity
196-9 for jobs for graduates of the course and the possibility of
196-10 placement or employment.
196-11 (d) Before the commission issues or renews a private beauty
196-12 culture school license involving a school that offers or advertises
196-13 a placement service, the commission may require the school to file
196-14 a true and accurate copy of the school's placement records for the
196-15 previous year.
196-16 Sec. 21G. ON-SITE INSPECTIONS. (a) The commission shall
196-17 conduct on-site inspections of a private beauty culture school to
196-18 determine the normal operating conditions of the school.
196-19 (b) The inspection required by Subsection (a) of this
196-20 section shall be unannounced.
196-21 (c) The executive director or a designee of the executive
196-22 director may inspect such things as the instructional books and
196-23 records, classrooms, dormitories, tools, equipment, and classes of
196-24 a private beauty culture school or an applicant for a license for a
196-25 school at any reasonable time.
196-26 Sec. 21H. CONSOLIDATION OF FEES AND PRIVATE BEAUTY CULTURE
196-27 SCHOOL ACCOUNT. (a) At the beginning of each fiscal year the
197-1 commission shall collect a fee from the school for deposit in a
197-2 special account in the general revenue fund in the state treasury
197-3 called the private beauty culture school account and to be
197-4 administered by the commission.
197-5 (b) The amount of the fee is determined by applying a
197-6 percentage established by the commission, based on the
197-7 recommendation of the school accounts advisory board, to each
197-8 school's annual gross tuition, with consideration given to the
197-9 school's size, expense of regulation, potential for teachouts,
197-10 tuition refund and recovery exposure, and loan default rates and
197-11 any other relevant factors. The account shall be used for:
197-12 (1) the administration of this Act;
197-13 (2) the cost of teachouts as provided by this Act;
197-14 (3) the cost of tuition and fees recovery and the cost
197-15 of student refunds that a school has not made; and
197-16 (4) the cost of storing student records that have
197-17 become property of the state under this Act.
197-18 (c) The commission may grant an exemption from payment into
197-19 the account to a small school as determined by the commission, or
197-20 to a school that does not use guaranteed student loans for tuition
197-21 revenue. A school exempt as provided for by this subsection must
197-22 pay the necessary fees for regulation, as determined by the
197-23 commission, and provide a bond, certificate of deposit, or
197-24 comparable security, as determined and approved by the commission,
197-25 that is sufficient to cover the cost of the school's record storage
197-26 costs, teachout, and tuition and fees refund and recovery exposure
197-27 based on the evidence the school submits proving its projected
198-1 maximum total unearned tuition during the period of the license to
198-2 operate.
198-3 (d) The security must be provided by the school for the
198-4 period during which the license to operate is issued, and the
198-5 obligation of the bond or other security must be that neither this
198-6 Act nor any rule adopted under this Act is violated by the school
198-7 or any of its officers, agents, or employees.
198-8 (e) The bond, certificate of deposit, or comparable security
198-9 must be issued by a company authorized to do business in the state,
198-10 conditioned that the parties to the transaction must pay all
198-11 damages or expenses that the state or any governmental subdivision,
198-12 or any student or potential student sustains resulting from a
198-13 violation. The bond, certificate of deposit, or comparable
198-14 security must be to the state to be used only for payment for the
198-15 school's teachout and tuition and fees refund due to a student or
198-16 potential student. The security must be filed with the commission
198-17 and shall be in a form approved by the commission.
198-18 (f) Schools domiciled, or having their principal place of
198-19 business, outside the state, that engage representatives to
198-20 canvass, solicit, or contract with any person in the state are
198-21 subject to the fee and security requirements of Subsection (c) of
198-22 this section.
198-23 (g) The commission shall refer all expenses incurred by the
198-24 school account in administering Subsections (b)(2) and (3) of this
198-25 section to the attorney general's office for collection. The
198-26 amounts collected shall be deposited to the account. Attorney's
198-27 fees and court costs shall be appropriated to the attorney
199-1 general's office.
199-2 (h) Interest the account earns shall be reinvested in the
199-3 account. The state treasurer shall invest the account in the same
199-4 manner as other state funds. Sufficient funds from the account and
199-5 other fees collected by the commission shall be appropriated to the
199-6 commission for the purpose outlined in this section. The
199-7 commission shall administer claims made against the account.
199-8 (i) If a school closes, the commission shall attempt to
199-9 arrange for students of the closed school to attend another private
199-10 beauty culture school. The commission shall adopt rules specifying
199-11 the circumstances under which a school is considered closed.
199-12 (j) The expense incurred by a private beauty culture school
199-13 in providing training that is directly related to educating a
199-14 student who was enrolled in a closed school and placed in the
199-15 school under this section, including the applicable tuition for the
199-16 period of time for which the student has paid tuition, shall be
199-17 paid in accordance with rules of the commission.
199-18 (k) The commission shall make reasonable attempts to ensure
199-19 that schools under the commission's jurisdiction, including closed
199-20 schools, fulfill the refund obligation as provided by Section 21 of
199-21 this Act. If a school refuses to fulfill the school's obligation
199-22 or the school's bond is insufficient to pay the cost of the
199-23 teachout and refund expenses, the teachout or the refund may be
199-24 paid from the private beauty culture school account except that no
199-25 school owned, either in whole or in part, by a person or corporate
199-26 entity who was an owner, in whole or in part, of a previously
199-27 closed school shall be permitted to receive compensation for a
200-1 teachout under this section.
200-2 (l) If a student cannot be placed in another school, the
200-3 student's tuition and fees shall be refunded under Section 21(k) of
200-4 this Act.
200-5 (m) If a student does not accept a place that is available
200-6 and reasonable in another school, the student's tuition and fees
200-7 shall be refunded under the refund policy maintained by the closing
200-8 school under Sections 21(f) and (g) of this Act.
200-9 (n) Attorney's fees, court costs, or damages may not be paid
200-10 from the private beauty culture school account.
200-11 (o) The commission by rule shall establish and assess
200-12 reasonable and necessary fees to all persons and entities licensed
200-13 under this Act to be used for the regulation of those persons and
200-14 entities licensed under this Act and to supplement the
200-15 administration and purposes outlined by this Act.
200-16 (p) The commission may permit payment of any fee authorized
200-17 under this section that exceeds $1,000 to be paid by installment.
200-18 The commission shall provide for appropriate interest charges and
200-19 late penalties in addition to any other remedy that is provided for
200-20 by law for the late payment of a fee installment authorized under
200-21 this section. The commission may assess a reasonable service
200-22 charge to be paid by a school that pays a fee by installment in an
200-23 amount not to exceed an annual rate of 10 percent of the fee that
200-24 is to be paid by installment.
200-25 Sec. 21I. COST COMPARISONS. (a) The commission shall
200-26 prepare a comparison of the cost to a student of courses of
200-27 instruction or training programs at all private beauty culture
201-1 schools maintained by persons who hold private beauty culture
201-2 school licenses issued by the commission.
201-3 (b) The cost comparison must include for each school a
201-4 description of:
201-5 (1) average class size;
201-6 (2) facilities and equipment;
201-7 (3) employment and placement rates;
201-8 (4) length of program; and
201-9 (5) faculty qualifications.
201-10 Sec. 21J. FINANCIAL STABILITY. (a) A school may not
201-11 reflect unearned tuition as a current asset unless the amount shown
201-12 in current assets that reflects unearned tuition is offset by an
201-13 equal amount shown as a current liability. The school must meet
201-14 one of the following criteria in order to be determined as
201-15 financially sound and capable of fulfilling its commitments for
201-16 training:
201-17 (1) current assets must bear a relationship to current
201-18 liabilities in a ratio of at least one-to-one; or
201-19 (2) the school must have posted, or set aside in a
201-20 dedicated escrow account, a bond, certificate of deposit,
201-21 irrevocable letter of credit, or comparable security, acceptable to
201-22 the commission, each made payable to the State of Texas, in an
201-23 amount sufficient to cover the school's record storage costs,
201-24 teachout, and tuition and fees refund and recovery exposure based
201-25 on the evidence the school submits proving its projected maximum
201-26 total unearned tuition during the period of time covered by the
201-27 evidence of indebtedness to the state.
202-1 (b) The school must demonstrate to the satisfaction of the
202-2 commission its financial soundness and ability to fulfill its
202-3 commitments for training. If requested by the school and
202-4 administrator, the School Accounts Advisory Board shall investigate
202-5 the financial soundness of a school that does not meet the
202-6 requirements of (1) or (2) above in order to determine if the
202-7 school is capable of fulfilling its obligations under this Act.
202-8 Sec. 21K. PROHIBITIONS. A person may not:
202-9 (1) operate a private beauty culture school without a
202-10 license or assume ownership of an existing private beauty culture
202-11 school without obtaining a new license to operate;
202-12 (2) solicit prospective students for a private beauty
202-13 culture school without being licensed as required by this Act;
202-14 (3) accept contracts or enrollment applications from a
202-15 representative of a private beauty culture school who is not
202-16 registered as required by any commission rule requiring
202-17 registration;
202-18 (4) use advertising designed to mislead or deceive
202-19 prospective private beauty culture school students;
202-20 (5) fail to notify the commission of the
202-21 discontinuance of the operation of any private beauty culture
202-22 school not later than the 72nd hour after cessation of classes or
202-23 make available accurate records as required by this Act;
202-24 (6) fail to secure and file within 30 days any
202-25 increased bond required by this Act;
202-26 (7) negotiate any promissory instrument received as
202-27 payment of tuition for a private beauty culture school or other
203-1 charge before completion of 75 percent of the course, provided that
203-2 before that time, the instrument may be transferred by assignment
203-3 to a purchaser who is subject to any defense available against the
203-4 school named as payee;
203-5 (8) enroll a student in a private beauty culture
203-6 school who fails to satisfy entrance requirements; or
203-7 (9) violate any provision of this Act relating to
203-8 private beauty culture schools or a rule adopted under this Act
203-9 relating to private beauty culture schools.
203-10 Sec. 21L. ADMINISTRATIVE PENALTY. (a) The commission may
203-11 impose an administrative penalty against a person who violates
203-12 Section 21K of this Act.
203-13 (b) The penalty for a violation may be in an amount not to
203-14 exceed $10,000.
203-15 (c) The amount of the penalty shall be based on:
203-16 (1) the seriousness of the violation, including the
203-17 nature, circumstances, extent, and gravity of any prohibited acts;
203-18 (2) efforts to correct the violation; and
203-19 (3) any other matter that justice may require.
203-20 (d) An executive director who determines that a violation
203-21 has occurred may issue to the commission a report that states the
203-22 facts on which the determination is based and the director's
203-23 recommendation on the imposition of a penalty, including a
203-24 recommendation on the amount of the penalty.
203-25 (e) Within 14 days after the date the report is issued, the
203-26 executive director shall give written notice of the report to the
203-27 person. The notice may be given by certified mail. The notice
204-1 must include a brief summary of the alleged violation and a
204-2 statement of the amount of the recommended penalty and must inform
204-3 the person that the person has a right to a hearing on the
204-4 occurrence of the violation, the amount of the penalty, or both the
204-5 occurrence of the violation and the amount of the penalty.
204-6 (f) Within 20 days after the date the person receives the
204-7 notice, the person in writing may accept the determination and
204-8 recommended penalty of the executive director or may make a written
204-9 request for a hearing on the occurrence of the violation, the
204-10 amount of the penalty, or both the occurrence of the violation and
204-11 the amount of the penalty.
204-12 (g) If the person accepts the determination and recommended
204-13 penalty of the executive director, the commission by order shall
204-14 approve the determination and impose the recommended penalty.
204-15 (h) If the person requests a hearing or fails to respond
204-16 timely to the notice, the executive director shall set a hearing
204-17 and give notice of the hearing to the person. The hearing shall be
204-18 held by an administrative law judge of the State Office of
204-19 Administrative Hearings. The administrative law judge shall make
204-20 findings of fact and conclusions of law and promptly issue to the
204-21 commission a proposal for a decision about the occurrence of the
204-22 violation and the amount of a proposed penalty. Based on the
204-23 findings of fact, conclusions of law, and proposal for a decision,
204-24 the commission by order may find that a violation has occurred and
204-25 impose a penalty or may find that no violation occurred.
204-26 (i) The notice of the commission's order given to the person
204-27 under the Administrative Procedure and Texas Register Act (Article
205-1 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
205-2 amendments must include a statement of the right of the person to
205-3 judicial review of the order.
205-4 (j) Within 30 days after the date the commission's order is
205-5 final as provided by Section 16(c), Administrative Procedure and
205-6 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
205-7 Statutes), and its subsequent amendments, the person shall:
205-8 (1) pay the amount of the penalty;
205-9 (2) pay the amount of the penalty and file a petition
205-10 for judicial review contesting the occurrence of the violation, the
205-11 amount of the penalty, or both the occurrence of the violation and
205-12 the amount of the penalty; or
205-13 (3) without paying the amount of the penalty, file a
205-14 petition for judicial review contesting the occurrence of the
205-15 violation, the amount of the penalty, or both the occurrence of the
205-16 violation and the amount of the penalty.
205-17 (k) Within the 30-day period, a person who acts under
205-18 Subsection (j)(3) of this section may:
205-19 (1) stay enforcement of the penalty by:
205-20 (A) paying the amount of the penalty to the
205-21 court for placement in an escrow account; or
205-22 (B) giving to the court a supersedeas bond that
205-23 is approved by the court for the amount of the penalty and that is
205-24 effective until all judicial review of the board's order is final;
205-25 or
205-26 (2) request the court to stay enforcement of the
205-27 penalty by:
206-1 (A) filing with the court a sworn affidavit of
206-2 the person stating that the person is financially unable to pay the
206-3 amount of the penalty and is financially unable to give the
206-4 supersedeas bond; and
206-5 (B) giving a copy of the affidavit to the
206-6 executive director by certified mail.
206-7 (l) An executive director who receives a copy of an
206-8 affidavit under Subsection (k)(2) of this section may file with the
206-9 court, within five days after the date the copy is received, a
206-10 contest to the affidavit. The court shall hold a hearing on the
206-11 facts alleged in the affidavit as soon as practicable and shall
206-12 stay the enforcement of the penalty on finding that the alleged
206-13 facts are true. The person who files an affidavit has the burden
206-14 of proving that the person is financially unable to pay the amount
206-15 of the penalty and to give a supersedeas bond.
206-16 (m) If the person does not pay the amount of the penalty and
206-17 the enforcement of the penalty is not stayed, the executive
206-18 director may refer the matter to the attorney general for
206-19 collection of the amount of the penalty.
206-20 (n) Judicial review of the order of the commission:
206-21 (1) is instituted by filing a petition as provided by
206-22 Section 19, Administrative Procedure and Texas Register Act
206-23 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
206-24 subsequent amendments; and
206-25 (2) is under the substantial evidence rule.
206-26 (o) If the court sustains the occurrence of the violation,
206-27 the court may uphold or reduce the amount of the penalty and order
207-1 the person to pay the full or reduced amount of the penalty. If
207-2 the court does not sustain the occurrence of the violation, the
207-3 court shall order that no penalty is owed.
207-4 (p) When the judgment of the court becomes final, the court
207-5 shall proceed under this subsection. If the person paid the amount
207-6 of the penalty and if that amount is reduced or is not upheld by
207-7 the court, the court shall order that the appropriate amount plus
207-8 accrued interest be remitted to the person. The rate of the
207-9 interest is the rate charged on loans to depository institutions by
207-10 the New York Federal Reserve Bank, and the interest shall be paid
207-11 for the period beginning on the date the penalty was paid and
207-12 ending on the date the penalty is remitted. If the person gave a
207-13 supersedeas bond and if the amount of the penalty is not upheld by
207-14 the court, the court shall order the release of the bond. If the
207-15 person gave a supersedeas bond and if the amount of the penalty is
207-16 reduced, the court shall order the release of the bond after the
207-17 person pays the amount.
207-18 (q) A penalty collected under this section shall be remitted
207-19 to the comptroller for deposit in the general revenue fund.
207-20 (r) All proceedings under this section are subject to the
207-21 Administrative Procedure and Texas Register Act (Article 6252-13a,
207-22 Vernon's Texas Civil Statutes) and its subsequent amendments.
207-23 SECTION 5.14. Section 22, Chapter 1036, Acts of the 62nd
207-24 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
207-25 Civil Statutes), is amended to read as follows:
207-26 Sec. 22. Additional Requirements Applying to Private Beauty
207-27 Culture Schools. (a) The holder of a private beauty culture
208-1 school license shall:
208-2 (1) maintain a sanitary establishment;
208-3 (2) maintain on its staff and on duty during business
208-4 hours not less than two full-time instructors licensed under this
208-5 Act, except that one instructor will be sufficient whenever the
208-6 student enrollment drops below 15;
208-7 (3) maintain a daily record of attendance of students;
208-8 (4) establish regular class and instruction hours and
208-9 grades, and hold examinations before issuing diplomas;
208-10 (5) require a school term of not less than nine months
208-11 and not less than 1,500 hours instruction for a complete course in
208-12 cosmetology;
208-13 (6) require a school term of not less than 250 hours
208-14 instruction for a complete course in manicuring;
208-15 (7) require no student to work or be instructed or
208-16 receive credit for more than eight hours of instruction in any one
208-17 day or for more than six days in any one calendar week;
208-18 (8) maintain a copy of its curriculum in a conspicuous
208-19 place and verify that this curriculum is being followed as to
208-20 subject matter being taught; and
208-21 (9) submit to the executive director the name of each
208-22 student within 10 days after enrollment in the school and notify
208-23 the executive director of the withdrawal or graduation of a student
208-24 within 10 days of the withdrawal or graduation.
208-25 (b) Each holder of a private beauty culture school license
208-26 shall furnish to the commission:
208-27 (1) the current course completion rates of students
209-1 who attend a course of instruction offered by the school; and
209-2 (2) job placement rates and employment rates of
209-3 students who complete a course of instruction.
209-4 (c) On the graduation of a student from a course of training
209-5 offered by a private beauty culture school or the student's
209-6 withdrawal or transfer from a course of training without completion
209-7 of the training, the private beauty culture school shall send the
209-8 commission a certified written copy of the student's record,
209-9 indicating all course hours completed by the student and whether
209-10 the agreed tuition has been paid.
209-11 (d) <A holder of a private beauty culture school license
209-12 shall furnish each prospective student with:>
209-13 <(1) a copy of the course outline;>
209-14 <(2) a schedule of the tuition and other fees
209-15 assessed;>
209-16 <(3) the refund policy required under Section 21 of
209-17 this Act;>
209-18 <(4) school regulations relating to absences;>
209-19 <(5) the school grading policy;>
209-20 <(6) the school rules of operation and conduct;>
209-21 <(7) school regulations relating to incomplete
209-22 grades;>
209-23 <(8) the name, mailing address, and telephone number
209-24 of the commission for the purpose of directing complaints to the
209-25 commission; and>
209-26 <(9) the current rates of job placement and employment
209-27 of students who complete a course of training.>
210-1 <(e) A holder of a private beauty culture school license
210-2 shall publish in its catalogue and enrollment contract a
210-3 description of the refund policy required under Section 21 of this
210-4 Act.>
210-5 <(f) If the commission has reasonable cause to believe that
210-6 a private beauty culture school has violated this Act or a rule
210-7 adopted under this Act, the commission may order a peer review of
210-8 the school or suspend the admission of students to the school. A
210-9 peer review ordered under this subsection shall be conducted by a
210-10 peer review team composed of knowledgeable persons selected by the
210-11 commission. The commission shall attempt to provide a balance on
210-12 each team between members assigned to the team who are from this
210-13 state and those who are from other states. The team shall provide
210-14 the commission with an objective assessment of the content of the
210-15 school's curriculum and its application. The school under review
210-16 shall pay the costs of the peer review.>
210-17 <(g)> A private beauty culture school that violates this Act
210-18 or a rule adopted under this Act is liable for a civil penalty in
210-19 addition to any injunctive relief or other remedy provided by law.
210-20 The civil penalty may not exceed $1,000 a day for each violation.
210-21 The attorney general, at the request of the commission, may bring a
210-22 civil action to collect a civil penalty under this subsection.
210-23 Civil penalties recovered in a suit brought under this subsection
210-24 shall be deposited in the state treasury to the credit of the
210-25 General Revenue Fund.
210-26 SECTION 5.15. Chapter 1036, Acts of the 62nd Legislature,
210-27 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
211-1 Statutes), is amended by adding Sections 22A-22F to read as
211-2 follows:
211-3 Sec. 22A. LICENSING REQUIREMENTS DISCLOSED BY PRIVATE BEAUTY
211-4 CULTURE SCHOOL. (a) A private beauty culture school must disclose
211-5 to all prospective students state licensing requirements to
211-6 practice the occupation for which the student is training.
211-7 (b) A school must disclose to all prospective students the
211-8 performance of graduates from the school on the licensing
211-9 examination of the commission if that information is available.
211-10 Sec. 22B. ENTRANCE REQUIREMENTS FOR PRIVATE BEAUTY CULTURE
211-11 SCHOOL; MINIMUM SKILLS TEST. (a) The commission shall approve
211-12 entrance requirements, including minimum skills testing, for
211-13 students who may be accepted for a course of study in a private
211-14 beauty culture school. The requirements must be specific and
211-15 provide that students who are allowed to enter a course will have a
211-16 reasonable chance of completing the program.
211-17 (b) The school shall administer a standardized test to
211-18 students entering the school, if testing for minimum skill
211-19 competency is determined by the commission as appropriate and
211-20 necessary to determine if remediation is needed. The test must be
211-21 administered before enrollment and must be nationally recognized as
211-22 appropriate and effective for minimum skills testing. If the test
211-23 reveals the necessity for remediation, the school must implement a
211-24 plan to encourage the student to improve in basic general education
211-25 skills.
211-26 (c) A student must achieve a successful score on the test
211-27 required by this section before the student is obligated for
212-1 tuition and fees for the vocational portion of the school's
212-2 program.
212-3 (d) The school may, in accordance with federal statutory
212-4 provisions affecting guaranteed student loan programs, on a
212-5 case-by-case basis, refuse to provide the certification statements
212-6 required for guaranteed student loan eligibility, or reduce the
212-7 determination of need for a guaranteed student loan if the school
212-8 determines that the student's expenses to be covered by the loan,
212-9 and the estimated cost of attendance, can be met more appropriately
212-10 by the school, directly by the student, or by other sources.
212-11 Sec. 22C. STUDENTS IN PRIVATE BEAUTY CULTURE SCHOOLS IN NEED
212-12 OF REMEDIAL HELP. (a) An applicant without a high school diploma
212-13 or high school equivalency certificate must pass an entrance test
212-14 approved by the commission and be considered to have the ability to
212-15 benefit from the school before the school may enroll the student.
212-16 (b) A school that admits a student who does not have a high
212-17 school diploma or high school equivalency certificate must develop
212-18 and implement a plan for counseling the student on curriculum,
212-19 student aid, employment opportunities, and the remediation
212-20 necessary for the student to obtain a high school equivalency
212-21 certificate and improve in basic general education skills.
212-22 (c) The school must assist the student in obtaining the
212-23 remediation necessary for the student to pass a standardized
212-24 minimum skills test, approved by the commission, and the student
212-25 must pass the test before entering the final quarter of the course.
212-26 Sec. 22D. ENROLLMENT POLICIES OF PRIVATE BEAUTY CULTURE
212-27 SCHOOL. (a) The enrollment contract of a private beauty culture
213-1 school must contain:
213-2 (1) a disclosure that the contract is a legally
213-3 binding instrument on written acceptance of the student by the
213-4 school, unless canceled as provided by law;
213-5 (2) the school's cancellation and refund policy;
213-6 (3) the method of cancellation of the contract, the
213-7 effective date of any cancellation, and the name and address to
213-8 which the notice of cancellation should be sent or delivered;
213-9 (4) the total cost of the course including tuition and
213-10 all other charges;
213-11 (5) a notification that the fair market value of
213-12 equipment or supplies furnished to the student that the student
213-13 fails to return in a condition suitable for resale not later than
213-14 the 10th business day after the date of cancellation may be
213-15 retained by the school and deducted from any refund of the student;
213-16 (6) a statement that if a student's enrollment is
213-17 canceled for any reason, the school will notify an agency known to
213-18 the school to be providing financial aid to the student of the
213-19 cancellation not later than the 30th day after the date of
213-20 cancellation;
213-21 (7) the name and description of the courses, including
213-22 the number of hours of classroom instruction.
213-23 (b) An enrollment contract may not contain a wage assignment
213-24 provision or a confession of judgment clause.
213-25 (c) Immediately after a prospective student has signed an
213-26 enrollment contract, the school shall give the prospective student
213-27 a copy of the contract, and a copy shall be placed in the student's
214-1 permanent school file.
214-2 Sec. 22E. LOAN COUNSELING BY PRIVATE BEAUTY CULTURE SCHOOL.
214-3 (a) A school shall conduct loan counseling entrance interviews
214-4 with each prospective student seeking a loan during the enrollment
214-5 process. A student borrower shall be counseled before the initial
214-6 disbursement of loan proceeds, shortly before the student completes
214-7 one-half of the course, and before the student is issued a
214-8 certificate of completion.
214-9 (b) The school's financial aid officer or counselor shall
214-10 conduct the interviews required by Subsection (a) of this section.
214-11 The interview must include a discussion of:
214-12 (1) the rights and responsibilities of the student as
214-13 a borrower;
214-14 (2) what a loan is and the importance of repayment;
214-15 (3) the total cost of the program in which the student
214-16 will be enrolled;
214-17 (4) the availability of other forms of financial aid,
214-18 grants, and part-time work;
214-19 (5) the starting range and average reported salaries
214-20 of those in the occupation for which the student will be trained,
214-21 if available; and
214-22 (6) job placement services provided by the school and
214-23 the employment rate of persons who attended the school and were
214-24 enrolled in the program in which the student is enrolled.
214-25 (c) A school approved to accept state or federal educational
214-26 loans or grants shall adopt, in addition to the provisions in this
214-27 section, measures to reduce defaults and improve borrower's
215-1 understanding and respect for the loan repayment obligation as
215-2 provided in 34 C.F.R., Parts 668 and 682.
215-3 (d) The school must give a copy of the Texas Guaranteed
215-4 Student Loan Corporation's "Your Future" guide, or a comparable
215-5 document approved by the commission, to a prospective student at a
215-6 time and in a manner that provides the student with sufficient
215-7 opportunity to read the guide or other document and discuss the
215-8 contents with the school's financial aid officer, if necessary for
215-9 understanding and clarity, before signing an enrollment contract
215-10 and before the school accepts the student in a course of study.
215-11 (e) The prospective student must sign a document stating
215-12 that the student:
215-13 (1) attended a loan counseling entrance interview; and
215-14 (2) received a copy of the "Your Future" guide, or
215-15 comparable document, in the time provided by Subsection (d) of this
215-16 section.
215-17 (f) A copy of the signed document required by Subsection (e)
215-18 of this section must be sent to the student, guarantor, and lender
215-19 and must be placed in the student's permanent school file.
215-20 Sec. 22F. RECORDS OF PRIVATE BEAUTY CULTURE SCHOOL. (a) A
215-21 private beauty culture school shall maintain permanent records for
215-22 all students enrolled, as required by the commission.
215-23 (b) A school shall adopt a plan to preserve permanent
215-24 records and submit the plan to the commission for approval. The
215-25 plan must:
215-26 (1) provide that at least one copy of the records will
215-27 be held in a secure depository; and
216-1 (2) designate an appropriate official to provide a
216-2 student with copies of records or transcripts on request.
216-3 (c) The school shall make the first copy of records or
216-4 transcripts at no charge to the student. The school may make a
216-5 reasonable charge to provide additional copies of records,
216-6 transcripts, or other student information.
216-7 (d) If the school closes, the records become the property of
216-8 the state.
216-9 SECTION 5.16. Section 27, Chapter 1036, Acts of the 62nd
216-10 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
216-11 Civil Statutes), is amended to read as follows:
216-12 Sec. 27. Display of License. (a) Every holder of a license
216-13 or certificate issued under this Act shall display the license or
216-14 certificate in a conspicuous place in his place of business or
216-15 employment.
216-16 (b) The commission may not use the word "approval" or a
216-17 variation of that term on the license of a private beauty culture
216-18 school. The terminology must be "licensed" to operate, or a
216-19 variation of that phrase.
216-20 SECTION 5.17. Section 30(a), Chapter 1036, Acts of the 62nd
216-21 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
216-22 Civil Statutes), is amended to read as follows:
216-23 (a) The commission shall use a written examination, selected
216-24 by the commission, to examine license applicants and shall <may>
216-25 require a practical examination for licenses and certificates
216-26 issued under this Act, as the commission considers necessary. The
216-27 written examination must be validated by independent testing
217-1 professionals or be purchased from a national testing service. The
217-2 commission shall prescribe the method and content of any practical
217-3 examination.
217-4 SECTION 5.18. Sections 33(c), (e), (f), and (g), Chapter
217-5 1036, Acts of the 62nd Legislature, Regular Session, 1971 (Article
217-6 8451a, Vernon's Texas Civil Statutes), are amended to read as
217-7 follows:
217-8 (c) A renewal license shall be issued on payment of the
217-9 renewal fee as established by the commission under this Act if the
217-10 licensee is not in violation of this Act at the time of renewal.
217-11 (e) A license that has been expired for less than 30 days
217-12 may be renewed. A renewal license shall be issued on submission
217-13 of a completed application form prescribed by the commission and
217-14 payment of the renewal fee, plus a <$10> delinquency fee in an
217-15 amount established by the commission.
217-16 (f) Except as provided by Subsection (h) of this section, a
217-17 license that has been expired for more than 30 days but less than
217-18 five years may be renewed. A renewal license shall be issued on
217-19 submission of an application, payment of the fee established by the
217-20 commission under this Act for each year the license has been
217-21 expired, and payment of a delinquency fee. Delinquency fees for
217-22 the following licenses shall be established by the commission
217-23 <under this subsection are>:
217-24 (1) operator or specialty license <$25>;
217-25 (2) instructor license <$50>;
217-26 (3) manicurist license <$25>; and
217-27 (4) beauty or specialty salon license <$35>.
218-1 (g) An applicant for renewal of a license that has been
218-2 expired for more than five years shall be issued a license on
218-3 submission of an application, payment of the examination fee,
218-4 satisfactory completion of the examination, and payment of a <$50>
218-5 reinstatement fee in an amount established by the commission.
218-6 SECTION 5.19. Section 34(a), Chapter 1036, Acts of the 62nd
218-7 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
218-8 Civil Statutes), is amended to read as follows:
218-9 (a) Renewal fees for the following licenses shall be
218-10 established by the commission <under this Act are>:
218-11 (1) Operator or specialty license <$35>;
218-12 (2) Instructor license <$50>;
218-13 (3) Manicurist license <$35>;
218-14 (4) Private beauty school license <$200 per year>; and
218-15 (5) Beauty or specialty shop license <$45>.
218-16 SECTION 5.20. Section 36, Chapter 1036, Acts of the 62nd
218-17 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
218-18 Civil Statutes), is amended to read as follows:
218-19 Sec. 36. Grounds for Denial, Suspension, or Revocation of a
218-20 Permit. (a) A license or certificate may be denied, or after a
218-21 hearing, suspended or revoked if the applicant or licensee has:
218-22 (1) secured a license or certificate by fraud or
218-23 deceit;
218-24 (2) violated or conspired to violate this Act or a
218-25 rule issued under this Act;
218-26 (3) knowingly made false or misleading statements in
218-27 any advertising of the licensee's services;
219-1 (4) advertised, practiced, or attempted to practice
219-2 under the name or trade name of another licensee under this Act; or
219-3 (5) engaged in gross malpractice in practicing
219-4 cosmetology.
219-5 (b) In addition to taking a disciplinary action under
219-6 Subsection (a) of this section, the commission may deny, suspend,
219-7 or revoke a private beauty culture school license or place the
219-8 holder of the license on probation if the license holder, the
219-9 school, or a representative of the school gives a prospective
219-10 student information relating to the school that is false,
219-11 fraudulent, deceptive, substantially inaccurate, or misleading.
219-12 SECTION 5.21. Section 41, Chapter 1036, Acts of the 62nd
219-13 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
219-14 Civil Statutes), is amended by amending Subsection (a) and adding
219-15 Subsections (c) and (d) to read as follows:
219-16 (a) The commission shall keep an information file about each
219-17 complaint filed with the commission relating to a cosmetologist,
219-18 <or> cosmetology establishment, or private beauty culture school.
219-19 (c) The commission shall prepare information of public
219-20 interest describing the functions of the commission and the
219-21 procedures by which complaints are filed with and resolved by the
219-22 commission against a private beauty culture school. The commission
219-23 shall make the information available to the public and appropriate
219-24 state agencies.
219-25 (d) A private beauty culture school shall post on the
219-26 premises of the school at a prominent and conspicuous location the
219-27 name, mailing address, and telephone number of the commission for
220-1 the purpose of directing complaints to the commission.
220-2 SECTION 5.22. Chapter 1036, Acts of the 62nd Legislature,
220-3 Regular Session, 1971 (Article 8451a, Vernon's Texas Civil
220-4 Statutes), is amended by adding Sections 42 and 43 to read as
220-5 follows:
220-6 Sec. 42. ADVERTISING. (a) The commission may not adopt
220-7 rules that restrict advertising by a private beauty culture school
220-8 except to prohibit false, misleading, or deceptive advertising
220-9 practices. The rules may not restrict:
220-10 (1) the use of an advertising medium;
220-11 (2) the size or duration of an advertisement; or
220-12 (3) advertisement under a trade name.
220-13 (b) A school, the representative of a school, or a recruiter
220-14 for the school may not advertise or represent, in writing or
220-15 orally, that a school is approved or accredited by the state.
220-16 Those entities or persons may advertise that the school has been
220-17 licensed by the state.
220-18 (c) A school, representative of a school, or recruiter of a
220-19 school may not make or cause to be made a statement or
220-20 representation, written, oral, or visual, offering or publicizing a
220-21 course, program, or school, if the school, representative, or
220-22 solicitor knew or reasonably should have known that the statement
220-23 or representation was false, fraudulent, deceptive, substantially
220-24 inaccurate, or misleading.
220-25 Sec. 43. CRIMINAL PENALTY. (a) A person commits an offense
220-26 if the person fails to comply with Section 21 of this Act. Except
220-27 as provided by Subsection (b) of this section, an offense under
221-1 this section is a Class A misdemeanor.
221-2 (b) A person commits an offense if the person intentionally
221-3 or knowingly uses for personal benefit funds in an amount greater
221-4 than $10,000 that are due as student refunds under Section 21 of
221-5 this Act. An offense under this subsection is a felony of the
221-6 third degree.
221-7 SECTION 5.23. Section 21A, Chapter 1036, Acts of the 62nd
221-8 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
221-9 Civil Statutes), as added by S.B. No. 378, Acts of the 72nd
221-10 Legislature, Regular Session, 1991, is repealed.
221-11 SECTION 5.24. Any balance remaining in funds designated for
221-12 the purposes of this Act shall be transferred to the Private Beauty
221-13 Culture School Account in the General Revenue Fund on the effective
221-14 date of this Act.
221-15 PART 6. MISCELLANEOUS PROVISIONS
221-16 SECTION 6.01. Section 32.45(a), Penal Code, is amended to
221-17 read as follows:
221-18 (a) For purposes of this section:
221-19 (1) "Fiduciary" includes:
221-20 (A) a trustee, guardian, administrator,
221-21 executor, conservator, and receiver;
221-22 (B) a proprietary school, or its owner, that
221-23 receives payment for tuition, fees, or other charges, including
221-24 guaranteed student loans;
221-25 (C) any other person acting in a fiduciary
221-26 capacity, but not a commercial bailee; and
221-27 (D) <(C)> an officer, manager, employee, or
222-1 agent carrying on fiduciary functions on behalf of a fiduciary.
222-2 (2) "Misapply" means deal with property contrary to:
222-3 (A) an agreement under which the fiduciary holds
222-4 the property; or
222-5 (B) a law prescribing the custody or disposition
222-6 of the property.
222-7 (3) "Proprietary school" means any business enterprise
222-8 operated for a profit, or on a nonprofit basis, which maintains a
222-9 place of business within the State of Texas, or solicits business
222-10 within the State of Texas, and:
222-11 (A) which offers or maintains a course or
222-12 courses of instruction or study; or
222-13 (B) at which place of business such a course or
222-14 courses of instruction or study is available through classroom
222-15 instruction or by correspondence, or both, to a person or persons
222-16 for the purpose of training or preparing the person for a field of
222-17 endeavor in a business, trade, technical, or industrial occupation,
222-18 or for avocational or personal improvement.
222-19 SECTION 6.02. (a) The changes in law made by this Act apply
222-20 only to an offense committed on or after the effective date of this
222-21 Act. For purposes of this section, an offense is committed before
222-22 the effective date of this Act if any element of the offense occurs
222-23 before the effective date.
222-24 (b) An offense committed before the effective date of this
222-25 Act is covered by the law in effect when the offense was committed,
222-26 and the former law is continued in effect for this purpose.
222-27 SECTION 6.03. Except as otherwise provided by this Act, this
223-1 Act takes effect January 1, 1994.
223-2 SECTION 6.04. The importance of this legislation and the
223-3 crowded condition of the calendars in both houses create an
223-4 emergency and an imperative public necessity that the
223-5 constitutional rule requiring bills to be read on three several
223-6 days in each house be suspended, and this rule is hereby suspended,
223-7 and that this Act take effect and be in force according to its
223-8 terms, and it is so enacted.