By: Parker S.B. No. 1371
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation and operation of proprietary schools.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 32.61, Education Code, is amended to read
1-4 as follows:
1-5 Sec. 32.61. Prohibitions. No person shall:
1-6 (1) operate a school without a certificate of approval
1-7 issued by the Administrator;
1-8 (2) solicit prospective students without being bonded
1-9 as required by this Chapter;
1-10 (3) accept contracts or enrollment applications from a
1-11 representative who is not bonded as required by this Chapter;
1-12 (4) utilize advertising designed to mislead or deceive
1-13 prospective students;
1-14 (5) fail to notify the Administrator of the
1-15 discontinuance of the operation of any school within 72 hours of
1-16 cessation of classes and make available accurate records as
1-17 required by this Chapter;
1-18 (6) fail to secure and file within 30 days an
1-19 increased bond as required by this Chapter;
1-20 (7) negotiate any promissory instrument received as
1-21 payment of tuition or other charge prior to completion of 75
1-22 percent of the course, provided that prior to such time, the
1-23 instrument may be transferred by assignment to a purchaser who
2-1 shall be subject to all the defenses available against the school
2-2 named as payee;
2-3 (8) fail to provide financial statements or other
2-4 documentary evidence of school financial standing when so requested
2-5 by the Administrator, provided that all copies of such documents
2-6 shall be promptly returned to the school following inspection and
2-7 thereafter made readily available for such further review as may be
2-8 required by the Administrator;
2-9 (9) violate any provision of this Chapter.
2-10 SECTION 2. Section 32.34, Education Code, is amended by
2-11 adding Subsection (g) to read as follows:
2-12 (g) Except as provided in Subsection (f) of this section, a
2-13 school is not subject to on-site visits by the administrator more
2-14 often than once every three years unless during any three-year
2-15 period the school has substantially violated the provisions of this
2-16 chapter or applicable substantive rules and regulations of the
2-17 Central Education Agency. The administrator shall provide the
2-18 school or its owner at least 48 hours advance notice of any on-site
2-19 visit.
2-20 SECTION 3. Subsection (a), Section 32.71, Education Code, is
2-21 amended to read as follows:
2-22 (a) Certificate and registration fees, except those charged
2-23 pursuant to Subsection (d) of this section, shall be collected by
2-24 the Administrator and deposited with the State Treasurer according
2-25 to<. Each fee shall be in an amount set by the Administrator and
3-1 approved by the State Board of Education in an amount not to exceed
3-2 150 percent of each fee in> the following schedule:
3-3 (1) the initial fee for a school is $2,000;
3-4 (2) the first annual renewal fee and each subsequent
3-5 renewal fee for a school shall be the greater of $500 or the amount
3-6 <is> determined by applying a percentage, not to exceed 0.1 <0.3>
3-7 percent, to the gross tuition and fees, excluding refunds as
3-8 provided by Section 32.39 of this code, of the school;
3-9 (3) the initial registration fee for a representative
3-10 is $60;
3-11 (4) the annual renewal fee for a representative is
3-12 $30;
3-13 (5) the fee for a change of a name of a school or
3-14 owner is $100;
3-15 (6) the fee for a change of an address of a school is
3-16 $180;
3-17 (7) the fee for a change in the name or address of a
3-18 representative or a change in the name or address of a school that
3-19 causes the reissuance of a representative permit is $10;
3-20 (8) the application fee for an additional course is
3-21 $150, except for seminar and workshop courses, for which the fee is
3-22 $25;
3-23 (9) the application fee for a director, administrative
3-24 staff member, or instructor is $15;
3-25 (10) the application fee for the authority to grant
4-1 degrees is $2,000;
4-2 (11) the application fee for an additional degree
4-3 course is $250; and
4-4 (12) the fee for an inspection required by rule of the
4-5 State Board of Education of classroom facilities that are separate
4-6 from the main campus is $250.
4-7 SECTION 4. Subsections (c) and (d), Section 32.91, Education
4-8 Code, are amended to read as follows:
4-9 (c) Beginning on January 1, 1990, the board shall collect
4-10 the fee for two years. If on January 1, 1993, or any subsequent
4-11 odd-numbered year the amount in the fund is less than $200,000, the
4-12 board shall collect a fee during the ensuing two-year period, in no
4-13 more than quarterly installments, <that year> by applying a
4-14 percentage to each school's annual renewal fee at a rate that will
4-15 bring the balance of the fund to $250,000.
4-16 (d) The state treasurer shall invest the fund in the same
4-17 manner as other state funds. Sufficient funds from and including
4-18 all interest earned on the investment of the tuition protection
4-19 fund shall be appropriated to the Central Education Agency and used
4-20 solely <administration> for the purpose outlined in this section.
4-21 SECTION 5. The importance of this legislation and the
4-22 crowded condition of the calendars in both houses create an
4-23 emergency and an imperative public necessity that the
4-24 constitutional rule requiring bills to be read on three several
4-25 days in each house be suspended, and this rule is hereby suspended,
5-1 and that this Act take effect and be in force from and after its
5-2 passage, and it is so enacted.