1-1  By:  Parker                                           S.B. No. 1371
    1-2        (In the Senate - Filed April 14, 1993; April 15, 1993, read
    1-3  first time and referred to Committee on Education; May 12, 1993,
    1-4  reported favorably by the following vote:  Yeas 7, Nays 0;
    1-5  May 12, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Ratliff            x                               
    1-9        Haley              x                               
   1-10        Barrientos         x                               
   1-11        Bivins                                         x   
   1-12        Harris of Tarrant  x                               
   1-13        Luna               x                               
   1-14        Montford                                       x   
   1-15        Shapiro                                        x   
   1-16        Sibley             x                               
   1-17        Turner             x                               
   1-18        Zaffirini                                      x   
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the regulation and operation of proprietary schools.
   1-22        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-23        SECTION 1.  Section 32.61, Education Code, is amended to read
   1-24  as follows:
   1-25        Sec. 32.61.  Prohibitions.  No person shall:
   1-26              (1)  operate a school without a certificate of approval
   1-27  issued by the Administrator;
   1-28              (2)  solicit prospective students without being bonded
   1-29  as required by this Chapter;
   1-30              (3)  accept contracts or enrollment applications from a
   1-31  representative who is not bonded as required by this Chapter;
   1-32              (4)  utilize advertising designed to mislead or deceive
   1-33  prospective students;
   1-34              (5)  fail to notify the Administrator of the
   1-35  discontinuance of the operation of any school within 72 hours of
   1-36  cessation of classes and make available accurate records as
   1-37  required by this Chapter;
   1-38              (6)  fail to secure and file within 30 days an
   1-39  increased bond as required by this Chapter;
   1-40              (7)  negotiate any promissory instrument received as
   1-41  payment of tuition or other charge prior to completion of 75
   1-42  percent of the course, provided that prior to such time, the
   1-43  instrument may be transferred by assignment to a purchaser who
   1-44  shall be subject to all the defenses available against the school
   1-45  named as payee;
   1-46              (8)  fail to provide financial statements or other
   1-47  documentary evidence of school financial standing when so requested
   1-48  by the Administrator, provided that all copies of such documents
   1-49  shall be promptly returned to the school following inspection and
   1-50  thereafter made readily available for such further review as may be
   1-51  required by the Administrator;
   1-52              (9)  violate any provision of this Chapter.
   1-53        SECTION 2.  Section 32.34, Education Code, is amended by
   1-54  adding Subsection (g) to read as follows:
   1-55        (g)  Except as provided in Subsection (f) of this section, a
   1-56  school is not subject to on-site visits by the administrator more
   1-57  often than once every three years unless during any three-year
   1-58  period the school has substantially violated the provisions of this
   1-59  chapter or applicable substantive rules and regulations of the
   1-60  Central Education Agency.  The administrator shall provide the
   1-61  school or its owner at least 48 hours advance notice of any on-site
   1-62  visit.
   1-63        SECTION 3.  Subsection (a), Section 32.71, Education Code, is
   1-64  amended to read as follows:
   1-65        (a)  Certificate and registration fees, except those charged
   1-66  pursuant to Subsection (d) of this section, shall be collected by
   1-67  the Administrator and deposited with the State Treasurer according
   1-68  to<.  Each fee shall be in an amount set by the Administrator and
    2-1  approved by the State Board of Education in an amount not to exceed
    2-2  150 percent of each fee in> the following schedule:
    2-3              (1)  the initial fee for a school is $2,000;
    2-4              (2)  the first annual renewal fee and each subsequent
    2-5  renewal fee for a school shall be the greater of $500 or the amount
    2-6  <is> determined by applying a percentage, not to exceed 0.1 <0.3>
    2-7  percent, to the gross tuition and fees, excluding refunds as
    2-8  provided by Section 32.39 of this code, of the school;
    2-9              (3)  the initial registration fee for a representative
   2-10  is $60;
   2-11              (4)  the annual renewal fee for a representative is
   2-12  $30;
   2-13              (5)  the fee for a change of a name of a school or
   2-14  owner is $100;
   2-15              (6)  the fee for a change of an address of a school is
   2-16  $180;
   2-17              (7)  the fee for a change in the name or address of a
   2-18  representative or a change in the name or address of a school that
   2-19  causes the reissuance of a representative permit is $10;
   2-20              (8)  the application fee for an additional course is
   2-21  $150, except for seminar and workshop courses, for which the fee is
   2-22  $25;
   2-23              (9)  the application fee for a director, administrative
   2-24  staff member, or instructor is $15;
   2-25              (10)  the application fee for the authority to grant
   2-26  degrees is $2,000;
   2-27              (11)  the application fee for an additional degree
   2-28  course is $250; and
   2-29              (12)  the fee for an inspection required by rule of the
   2-30  State Board of Education of classroom facilities that are separate
   2-31  from the main campus is $250.
   2-32        SECTION 4.  Subsections (c) and (d), Section 32.91, Education
   2-33  Code, are amended to read as follows:
   2-34        (c)  Beginning on January 1, 1990, the board shall collect
   2-35  the fee for two years.  If on January 1, 1993, or any subsequent
   2-36  odd-numbered year the amount in the fund is less than $200,000, the
   2-37  board shall collect a fee during the ensuing two-year period, in no
   2-38  more than quarterly installments, <that year> by applying a
   2-39  percentage to each school's annual renewal fee at a rate that will
   2-40  bring the balance of the fund to $250,000.
   2-41        (d)  The state treasurer shall invest the fund in the same
   2-42  manner as other state funds.  Sufficient funds from and including
   2-43  all interest earned on the investment of the tuition protection
   2-44  fund shall be appropriated to the Central Education Agency and used
   2-45  solely <administration> for the purpose outlined in this section.
   2-46        SECTION 5.  The importance of this legislation and the
   2-47  crowded condition of the calendars in both houses create an
   2-48  emergency and an imperative public necessity that the
   2-49  constitutional rule requiring bills to be read on three several
   2-50  days in each house be suspended, and this rule is hereby suspended,
   2-51  and that this Act take effect and be in force from and after its
   2-52  passage, and it is so enacted.
   2-53                               * * * * *
   2-54                                                         Austin,
   2-55  Texas
   2-56                                                         May 12, 1993
   2-57  Hon. Bob Bullock
   2-58  President of the Senate
   2-59  Sir:
   2-60  We, your Committee on Education to which was referred S.B.
   2-61  No. 1371, have had the same under consideration, and I am
   2-62  instructed to report it back to the Senate with the recommendation
   2-63  that it do pass and be printed.
   2-64                                                         Ratliff,
   2-65  Chairman
   2-66                               * * * * *
   2-67                               WITNESSES
   2-68                                                  FOR   AGAINST  ON
   2-69  ___________________________________________________________________
   2-70  Name:  Duncan Fox                                              x
    3-1  Representing:  TEA
    3-2  City:  Austin
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    3-4  Name:  Thomas E. Anderson                                      x
    3-5  Representing:  TEA
    3-6  City:  Austin
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    3-8  Name:  Lesile Roberts                            x
    3-9  Representing:  Bish Mathis Institute
   3-10  City:  Longview
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   3-12  Name:  Carolyn S. Willard                        x
   3-13  Representing:  Court Reporting Institute
   3-14  City:  Dallas
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