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
3-3 -------------------------------------------------------------------
3-4 Name: Thomas E. Anderson x
3-5 Representing: TEA
3-6 City: Austin
3-7 -------------------------------------------------------------------
3-8 Name: Lesile Roberts x
3-9 Representing: Bish Mathis Institute
3-10 City: Longview
3-11 -------------------------------------------------------------------
3-12 Name: Carolyn S. Willard x
3-13 Representing: Court Reporting Institute
3-14 City: Dallas
3-15 -------------------------------------------------------------------