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.