By: Harris, C. S.B. No. 1391
73R9063 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of driver training schools.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3(7), Texas Driver and Traffic Safety
1-5 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
1-6 is amended to read as follows:
1-7 (7) "Extension" means an entity that geographically
1-8 extends the educational resources of a driver training school by
1-9 offering a driving safety course in a location other than the main
1-10 business location of the school. An extension may use multiple
1-11 locations to teach a driving safety course if each location is
1-12 approved by the parent school and the agency. A driver education
1-13 course may not be conducted at an extension. An extension of an
1-14 extension is not permitted.
1-15 SECTION 2. Section 8, Texas Driver and Traffic Safety
1-16 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
1-17 is amended to read as follows:
1-18 Sec. 8. COMPETITIVE BIDDING; ADVERTISING. (a) The board
1-19 may not adopt rules to restrict competitive bidding or advertising
1-20 by a driver training school except to prohibit false, misleading,
1-21 or deceptive competitive bidding or advertising practices.
1-22 Specifically, no rule may restrict:
1-23 (1) the use of an advertising medium;
1-24 (2) the outside dimensions of a printed advertisement
2-1 or outdoor display;
2-2 (3) the duration of an advertisement; or
2-3 (4) advertisement under a trade name.
2-4 (b) The board may adopt rules to restrict advertising by a
2-5 branch location of a school so that the branch location adequately
2-6 identifies its primary driver training school in any solicitation.
2-7 SECTION 3. Section 9, Texas Driver and Traffic Safety
2-8 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
2-9 is amended to read as follows:
2-10 Sec. 9. Prohibitions. A person may not:
2-11 (1) operate a school without a driver training school
2-12 license issued by the commissioner;
2-13 (2) utilize advertising designed to mislead or deceive
2-14 a prospective student;
2-15 (3) fail to notify the commissioner of the
2-16 discontinuance of the operation of any school within three working
2-17 days after cessation of classes and make available accurate records
2-18 as required by this Act;
2-19 (4) sell, trade, or transfer a uniform certificate of
2-20 completion to any person, school, or extension not authorized to
2-21 possess it;
2-22 (5) sell, trade, or transfer a uniform certificate of
2-23 completion to a student who has not successfully completed an
2-24 agency-approved, six-hour <eight-hour> driving safety course;
2-25 (6) negotiate any promissory instrument received as
2-26 payment of tuition or other charge before completion of 75 percent
2-27 of the course, except that before that time, the instrument may be
3-1 assigned to a purchaser who will be subject to all the defenses
3-2 available against the school named as payee;
3-3 (7) conduct any part of an agency-approved driver
3-4 education or driving safety course without an instructor who is
3-5 physically present in appropriate proximity to the student for the
3-6 type of instruction being given; or
3-7 (8) violate any provision of this Act.
3-8 SECTION 4. The Texas Driver and Traffic Safety Education Act
3-9 (Article 4413(29c), Vernon's Texas Civil Statutes) is amended by
3-10 adding Section 10A to read as follows:
3-11 Sec. 10A. BRANCH LOCATIONS. A driver training school that
3-12 teaches a driver education course at one or more branch locations
3-13 other than the main business location of the school must obtain a
3-14 driver training school license for the main business location of
3-15 the school and a driver training school license for each branch
3-16 location. An extension or a branch location of a branch location
3-17 is not permitted.
3-18 SECTION 5. Sections 13(b), (d), and (g), Texas Driver and
3-19 Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
3-20 Civil Statutes), are amended to read as follows:
3-21 (b)(1) License, application, and registration fees shall be
3-22 collected by the commissioner and deposited with the state
3-23 treasurer. Fees shall be sufficient to cover administrative costs
3-24 and may not be subject to refund. Each fee shall be set by the
3-25 commissioner and approved by the board in an amount not to exceed
3-26 150 percent of the following:
3-27 (A) the initial fee for a driver training school
4-1 license is $1,700 plus $850 for each branch location;
4-2 (B)(i) annual renewal fees as specified in this
4-3 subsection may be waived by the agency if revenue generated by the
4-4 sale of uniform certificates of completion is sufficient to fund
4-5 the cost of administering this Act and Section 143A, Uniform Act
4-6 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
4-7 Statutes); and
4-8 (ii) the annual renewal fee for a school
4-9 license shall be determined by the board in an amount sufficient to
4-10 fund the cost of administering this Act and Section 143A, Uniform
4-11 Act Regulating Traffic on Highways (Article 6701d, Vernon's Texas
4-12 Civil Statutes);
4-13 (C) the fee for a change of address of a school
4-14 is $180;
4-15 (D) the fee for a change of name of a school or
4-16 owner is $100;
4-17 (E) the application fee for each additional
4-18 course is $25;
4-19 (F) the application fee for each director is
4-20 $30, and for each assistant director, or administrative staff
4-21 member is $15;
4-22 (G) the fee for each extension is $35;
4-23 (H) each application for an original driver
4-24 training instructor's license shall be accompanied by a processing
4-25 fee of $50 and an annual license fee of $25; and
4-26 (I) the fee for a duplicate license, which may
4-27 be issued if the original is lost or destroyed and an affidavit of
5-1 that fact is filed with the agency, shall be set by the board in an
5-2 amount sufficient to cover the costs of issuing the duplicate
5-3 license.
5-4 (2) A driver education instructor who teaches driver
5-5 education courses in a county having a population of 50,000 or
5-6 less, according to the most recent federal census, and who has no
5-7 more than 200 students annually, shall be regulated by the agency
5-8 as a school. An instructor described by this subdivision shall
5-9 submit a school application or renewal form plus all required
5-10 documentation and information to the agency. The commissioner may
5-11 waive initial school fees, annual school renewal fees, or
5-12 director's or administrative staff member's fees. An instructor
5-13 described by this subdivision is not exempt from licensing
5-14 requirements or fees.
5-15 (3) The commissioner shall periodically review and
5-16 recommend adjustments in the level of fees to the board and
5-17 legislature.
5-18 (4) The fee for an investigation at a school to
5-19 resolve a complaint filed against the school shall be set by the
5-20 commissioner and approved by the board. The complaint
5-21 investigation fee may be charged only if:
5-22 (A) the complaint could not have been resolved
5-23 solely by telephone or written correspondence;
5-24 (B) a representative of the agency visited the
5-25 school as a part of the complaint resolution process; and
5-26 (C) the school is found to be at fault.
5-27 (5) The agency shall print and supply serially
6-1 numbered uniform certificates of course completion to owners or
6-2 primary consignees of courses approved under this Act. The agency
6-3 may charge a fee of $1 for each certificate. An owner or consignee
6-4 may not charge an operator a fee in excess of the fee paid to the
6-5 agency for a certificate.
6-6 (6) The commissioner, with approval of the board, may
6-7 increase any fee authorized under this subsection at a rate that
6-8 does not exceed the increase in the Consumer Price Index for All
6-9 Urban Consumers published by the Department of Labor. Fees under
6-10 this subsection do not have to be increased annually.
6-11 (7) Fees collected under this subsection shall be
6-12 deposited in the state treasury in a special account in the General
6-13 Revenue Fund. Money in the account may be appropriated only for
6-14 the administration of this Act and Section 143A, Uniform Act
6-15 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
6-16 Statutes).
6-17 (d)(1) The commissioner, on review of an application for a
6-18 driver training school license that is submitted in accordance with
6-19 this Act and that meets the requirements of this Act, shall issue a
6-20 driver training school license to the applicant. A driver training
6-21 school license shall be in a form recommended by the commissioner
6-22 and approved by the board and shall show in a clear and conspicuous
6-23 manner at least the following:
6-24 (A) the date of issuance, effective date, and
6-25 term of approval;
6-26 (B) the name and address of the school;
6-27 (C) the authority for approval and conditions of
7-1 approval;
7-2 (D) the signature of the commissioner; and
7-3 (E) any other fair and reasonable
7-4 representations that are consistent with this Act and considered
7-5 necessary by the commissioner.
7-6 (2) The term for which a driver training school
7-7 license is issued may not exceed one year.
7-8 (3)(A) A driver training school license issued to an
7-9 owner of the applicant school is nontransferable and is the
7-10 property of the state. In the event of a change in ownership of
7-11 the school, a new owner shall, at least 30 days before the date of
7-12 the change in ownership, apply for a new driver training school
7-13 license. Instead of the fees required by Subsection (b) of this
7-14 section, the fee for a new license required under this subdivision
7-15 is $500, plus $200 for each branch location, if the purchasing
7-16 entity is substantially similar to the transferring entity and
7-17 there is no significant change in the management or control of the
7-18 school.
7-19 (B) The commissioner is not required to
7-20 reinspect a school or a branch location after a change of its
7-21 ownership.
7-22 (4) At least 30 days before the expiration of a driver
7-23 training school license, the school shall forward to the
7-24 commissioner an application for renewal. The commissioner may
7-25 reexamine the school premises and shall renew or cancel the
7-26 school's driver training school license. If a school fails to file
7-27 a complete application for renewal at least 30 days before the
8-1 expiration date of the driver training school license, the school
8-2 shall pay as a condition of renewal and in addition to any annual
8-3 renewal fee a late renewal fee in an amount established by board
8-4 rule of at least $100, subject to Subsection (b) of this section.
8-5 (5) The commissioner shall visit a school and
8-6 reexamine the school for compliance with the criteria adopted under
8-7 this Act <not later than three months after the date a school
8-8 begins operation or after a change in ownership of a school>.
8-9 (g) Before a driver training school license may be issued
8-10 under this Act, a bond shall be provided by the school for the
8-11 period for which the license is to be issued, and the obligation of
8-12 the bond shall be that neither a provision of this Act nor any rule
8-13 adopted under this Act shall be violated by the school or any of
8-14 its officers, agents, or employees. A driver training school that
8-15 teaches driver education shall submit a bond in the amount of
8-16 $10,000 for its primary driver training school and $5,000 for each
8-17 branch location of the school. All other schools shall submit a
8-18 bond in the amount of $5,000. A bond must be a corporate surety
8-19 bond issued by a company authorized to do business in the state, be
8-20 payable to the state, and be used only for payment of a refund due
8-21 to a student or potential student. The bond shall be filed with
8-22 the commissioner and shall be in such form as shall be approved by
8-23 the commissioner. Posting of these bond amounts shall satisfy the
8-24 requirements for financial stability for schools under this Act.
8-25 SECTION 6. This Act takes effect September 1, 1993. The
8-26 change in law made by this Act applies only to an application for
8-27 an original or the renewal of a driver training school license that
9-1 is made on or after that date. An application for an original or
9-2 the renewal of a driver training school license made before the
9-3 effective date of this Act is covered by the law in effect when the
9-4 application was filed, and the former law is continued in effect
9-5 for this purpose.
9-6 SECTION 7. The importance of this legislation and the
9-7 crowded condition of the calendars in both houses create an
9-8 emergency and an imperative public necessity that the
9-9 constitutional rule requiring bills to be read on three several
9-10 days in each house be suspended, and this rule is hereby suspended.