BILL ANALYSIS S.B. 964 By: Harris (Bailey) May 4, 1995 Committee Report (Amended) BACKGROUND Currently, driver education and driving safety courses are licensed and regulated by the Texas Education Agency. The increasing need for these schools has led to "black market" teachers and schools operating unlawfully in Texas. Minimum standards for licensing, responsibility and accountability are needed for all schools and instructors of driver education, driving safety, and driving safety course providers to prevent illegal operations of these programs. PURPOSE As proposed, S.B. 964 amends the licensing and regulation of driver education and safety schools by charging the Texas Higher Education Coordinating Board and the commissioner of higher education with the regulatory power. Provides penalties for any violation of the regulations. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the commissioner of higher education under SECTION 6 (Section 6(b), Article 4413(29c), V.T.C.S.), the Texas Higher Education Coordinating Board under SECTIONS 9, 28, and 29 (Section 9A, Art 4413(29c), V.T.C.S., and Sections 143A(d) and (f), Article 6701d, V.T.C.S.), the members of the Texas Higher Education Coordinating Board under SECTION 16 (Section 13B(e), Article 4413(29c), V.T.C.S.), the Department of Public Safety under SECTION 27 (Section 12(c), Article 6687b, V.T.C.S.) SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 21.102, Education Code, as follows: Sec. 21.102. DRIVER EDUCATION. (a) Requires the Texas Higher Education Coordinating Board, rather than the Central Education Agency, to develop a driver education and traffic safety instructional program for public school students. (b) Requires the commissioner of higher education (commissioner), with the approval of the members of the Texas Higher Education Coordinating Board, to establish standards for the certification of the personnel who conduct the programs in public schools. SECTION 2. Amends Chapter 51F, Education Code, by adding 51.307, as follows: Sec. 51.307. DRIVER EDUCATION. Authorizes a driver education course for the purpose of preparing students to obtain a driver's license to be offered by an institution of higher education, with the approval of the Texas Higher Education Coordinating Board. SECTION 3. Amends Section 2, Article 4413(29c), V.T.C.S. (Texas Driver and Traffic Safety Education Act), to make a conforming change. SECTION 4. Amends Section 3, Article 4413(29c), V.T.C.S., by amending Subdivisions (1)-(3), (5), (7), (8), (11), and (14) and adding Subdivisions (16)-(22), to redefine "agency," "board," "commissioner," "operator," "school employee," and "uniform certificate of completion." Defines "driver training," "school," "approved driving safety course," "course provider," "driver education school," "driver education school owner," "driving safety course owner," "driving safety school," and "primary consignee." SECTION 5. Amends Section 4(b), Article 4413(29c), V.T.C.S., to require the Texas Higher Education Coordinating Board, rather than the State Board of Education, to enter into a memorandum with the Texas Rehabilitation Commission and the Department of Public Safety for development of curricula and licensing criteria for hospital and rehabilitation facilities that teach driver education. Makes a conforming change. SECTION 6. Amends Section 6, Article 4413(29c), V.T.C.S., as follows: Sec. 6. DUTIES OF COMMISSIONER. (a) Requires the commissioner to carry out policies of this Act, enforce rules adopted by the members of the Texas Higher Education Coordinating Board, and certify those schools and course providers meeting the requirements for a driver education school license, driving safety school (safety school) license, or both, or for a course provider license, rather than driver training school license. (b) Requires the commissioner, by rule, to establish the curriculum and designate the textbooks that must be used in a driver education course (course). Makes a nonsubstantive change. SECTION 7. Amends Section 7(c), Article 4413(29c), V.T.C.S., to provide that a course may not be exempt from Section 9A of this Act, and that a course of study conducted by a college or university to train unlicensed individuals is not exempt from this Act. SECTION 8. Amends Section 9, Article 4413(29c), V.T.C.S., to prohibit, among others, a person from operating a school that provides a course without a driver education school license issued by the commissioner; operating a school that provides driving safety courses without a driving safety school license issued by the commissioner; operating as a course provider without a license issued by the commissioner; issuing, selling, trading, or transferring a uniform certificate of completion or driver education certificate to any person or school not authorized to possess it; or issuing, selling, trading, or transferring a driver education certificate to a person who has not successfully completed a driver education course approved by the members of the Higher Education Coordinating Board. Makes conforming and nonsubstantive changes. SECTION 9. Amends Article 4413(29c), V.T.C.S., by adding Section 9A, as follows: Sec. 9A. DRIVER EDUCATION CERTIFICATES. Requires the Texas Higher Education Coordinating Board to print and supply to licensed and exempt driver education schools serially numbered certificates to be used for certifying completion of an approved course. Requires the Texas Higher Education Coordinating Board, by rule, to provide for the design and distribution of the certificate in a manner that to the greatest extent possible prevents the unauthorized reproduction or misuse of the certificates. Authorizes the Texas Higher Education Coordinating Board to charge a fee of not more than $4 per certificate. SECTION 10. Amends Section 10, formerly Section 2, Article 4413(29c), V.T.C.S., to delete language prohibiting a person, firm, association, partnership, or corporation from operating a commercial school without the certificate of approval for the commercial school. Deletes exceptions to this provision. SECTION 11. Amends Section 10A, Article 4413(29c), V.T.C.S., to make nonsubstantive and conforming changes. SECTION 12. Amends Article 4413(29c), V.T.C.S., by adding Section 10B, as follows: Sec. 10B. COURSE AT PUBLIC OR PRIVATE SCHOOL. Authorizes a licensed school to conduct a course at a public or private school for students of the public or private school as provided by an agreement with the public or private school. Subjects the course to all requirements of the law applicable to a course conducted at the main business location of the school. SECTION 13. Amends Section 11, Article 4413(29c), V.T.C.S., to authorize the commissioner to approve an alternative method if the commissioner determines that an approved driving safety course can be taught by an alternative method that does not require the students to be present in a classroom and that includes testing and security measures that are at least as secure as the measures available in a usual classroom. Provides that on approval, the alternative delivery method is considered to satisfy the requirements of this Act for a driving safety course. Authorizes the school to use the alternative delivery method. Provides that a location at which a person receives supplies or equipment for the course is considered a classroom of the school providing the course. Makes a conforming change. Deletes provisions authorizing instructor preparation courses to be taught at a course owner's facilities, and requiring all other driver training courses to be conducted in Central Education Agency-approved schools. SECTION 14. Amends the section heading to Section 12 and Sections 12(a) and (b), Article 4413(29c), V.T.C.S., as follows: Sec. 12. New heading: APPLICATION FOR SCHOOL LICENSE. (a) Requires a driving safety school to obtain approval from the Texas Higher Education Coordinating Board for any multiple classroom locations. Makes a conforming change. (b) Makes a nonsubstantive change. SECTION 15. Amends Section 13, Article 4413(29c), V.T.C.S., by amending Subsections (a), (b), and (d)-(h) and adding Subsections (a-1) and (a-2), as follows: (a) Requires the commissioner to approve the application of a driver education school when the school is found, on investigation at the premises of the school, to meet specific criteria. (a-1) Requires the commissioner to approve the application of a safety school if on investigation the Texas Higher Education Coordinating Board finds that the school presents adequate achievement of the stated objective of the course, the school has the adequate tools to provide training of good quality, the instructors have adequate education and experience qualifications, the school keeps adequate records as prescribed by the commissioner, the school complies with all applicable codes and laws, the school's personnel are of good character, the school does not use erroneous or misleading advertising, the school does not use a name like or similar to that of another school, the school has and uses the approved contract and policies developed by the course provider, the school does not owe a civil penalty, the school does not provide the course for less than $25, and the school meets additional criteria required by the members of the Texas Higher Education Coordinating Board. (a-2) Requires the commissioner to approve the application of a person to be a course provider if on investigation the commissioner finds that the course provider has an approved course; can show that there is at least one licensed safety school that is willing to offer the course; has adequate experience; has specific rules and policies; mails a uniform certificate of completion to the student within 15 working days after course completion; maintains adequate records as prescribed by the commissioner; complies with all applicable codes and laws; is financially sound and able to fulfill training commitments; has a good reputation; has proper tuition and fee refunding policies; does not use erroneous or misleading advertising; does not use a name similar to another existing school; does not owe a civil penalty; and meets additional requirements of the members of the Texas Higher Education Coordinating Board. (b)(1) Requires the fees to be as follows: (A) Provides that the initial fee for a driver education school license is $1,000 plus $850 for each branch location; the initial fee for the school license is an appropriate amount to the members of the Texas Higher Education Coordinating Board to not exceed $200; and the initial fee for a course provider license is appropriate to the amount established by the members of the Texas Higher Education Coordinating Board not to exceed $2,000, except that the fee may be waived by the Texas Higher Education Coordinating Board if revenue received by the Texas Higher Education Coordinating Board from the course provider is sufficient to fund the cost of licensing the course provider. (B) Provides that the annual renewal fee for a course provider, driving safety school, driver education school, and branch school is an appropriate amount established by the members of the Texas Higher Education Coordinating Board not to exceed $200, but may be waived if the revenue generated by the issuance, rather than sale, of uniform certificates of completion and driver education certificates is sufficient to cover the cost of administering this Act and Section 143A, Article 6701d, V.T.C.S. (C) Provides that the fee for a change of address of a driver education school is $180 and of a school or course provider is $50. (D) Provides that the name change fee for a driver education school, its owner, or its course provider is $100, and the name change fee for a school or its owner is $50. (E) Provides that the fee for each additional driver education or safety course at a school is $25. (F) Makes no change. (G) Requires each application for a driving safety course that has not been evaluated by the members of the Texas Higher Education Coordinating Board to be accompanied by a $9,000 fee. (H) Requires each application for a driver education or driving safety instructor's license to be accompanied by a fee, except that the commissioner may not collect the processing fee for an applicant for a driving education instructor license who is currently teaching the course in a public school on this state. (I) Deletes language requiring the a fee to cover the cost of issuing a duplicate license. (2) and (3) Make no change. (4) Requires the fee for an investigation of a school or course provider to resolve a complaint filed against the school or course provider to be set by the commissioner and approved by the members of the Texas Higher Education Coordinating Board. Makes conforming changes. (5) Prohibits a course provider from charging an operator fee in excess of the fee paid to the Texas Higher Education Coordinating Board for a certificate. Requires the course provider to charge and retain a user fee of not less than $3 a student for the use of course materials, oversight, and administration of the course. Makes conforming changes. (6) Authorizes money in the special account of the general revenue fund to be appropriated only for payment of monetary awards for information concerning abuse of the driver education or certificates that leads to the conviction or removal of an approval, license, or authorization. Provides that this dedication is exempt from application of Sections 403.094 and 403.095, Government Code. Deletes existing Subdivision (6), and redesignates existing subdivision (7). (7) Requires duplicate certificates to be issued by the Texas Higher Education Coordinating Board. Requires an appropriate fee for issuing duplicate certificates to be determined by rule of the members of the Texas Higher Education Coordinating Board. (d)(1) Requires the commissioner, on review of an application for a driving safety or driver education school or coarse provider license, rather than training school license, to issue a license to the applicant. Makes nonsubstantive changes. (2)-(5) Make conforming and nonsubstantive changes. (e) Makes conforming changes. (f) Makes conforming changes. (g)(1) Deletes language requiring all schools besides a primary driver education school to submit a $5,000 bond. Requires posting of bonds to satisfy the requirements for financial stability for driver education schools. Makes conforming changes. (2) Provides that a school is not required to post a surety bond. (3) Requires, before a license may be issued, a bond to be provided by the course provider for the period for which the license is to be issued. Requires the obligation of the bond to be that no provision of this Act or Article 6701d, V.T.C.S., and no rule adopted under this Act may be violated by the course provider or any of its officers, agents or employees. Requires a course provider to submit the bond in the amount of $25,000. Requires the bond to be a corporate surety issued by a company authorized to do business in this state, payable to the state, and used for student refund payments, to cover any unpaid fees or fines assessed by the Texas Higher Education Coordinating Board, and to recover the costs associated with the certificates. (4) Authorizes the school, instead of the bond required by Subdivision (1), to provide another form of security that is approved by the commissioner, and in the amount required for a comparable bond under Subdivision (1) or (3) of this subsection. (h)(1) Requires the driver education school or course provider to maintain a cancellation and settlement policy unless the student has successfully completed the course or received a failing grade on the course examination, rather than accepted a certificate of completion. Makes conforming changes. (2) Requires a school, as a condition for granting a driver education school license, to maintain certain policies for the refund of the unused portion of driver education charges including a provision that refunds items of extra expense to the student that are separately stated and shown in data furnished to the student before enrollment and the student returns any school property in the student's possession to the school. Makes a conforming change. (3) and (4) Make conforming changes. SECTION 16. Amends Article 4413(29c), V.T.C.S., by adding Sections 13A, as follows: 13(A) Requires the driver education school to provide the Texas Higher Education Coordinating Board certificates of insurance evidencing the coverage required under Subsection (a). Requires the certificates to indicate the existence of the coverage policy limits and to provide for notification to the Texas Higher Education Coordinating Board by the insurance company or its authorized agent before the policy is canceled. Requires a certificate for motor vehicle or fleet coverage to also indicate automatic coverage for additions or replacements. Sec. 13B. COURSE PROVIDER RESPONSIBILITIES. Requires an issued certificate to be mailed to the student by the 15th day after completion of an approved driver safety course only by the course provider or authorized personnel at the course provider's facilities. (b) Requires data identified by the Texas Higher Education Coordinating Board pertaining to issued certificates to be submitted electronically by each course provider to the Texas Higher Education Coordinating Board in a manner determined by the Texas Higher Education Coordinating Board. (c) Requires the Texas Higher Education Coordinating Board to investigate options to develop and implement procedures to provide information pertaining to driving safety courses by electronic transmission to the state municipal and justice courts. (d) Requires a course provider to conduct driving safety instructor development courses for its approved driving safety course. (e) Authorizes the members of the Texas Higher Education Coordinating Board to adopt additional rules to ensure integrity of the course and enhance program quality. (f) Provides that a course provider license entitles a provider to purchase uniform certificates of completion for only one approved driving safety course. SECTION 17. Amends Section 15, Article 4413(29c), V.T.C.S., as follows: Sec. 15. New heading: LICENSE REQUIRED FOR INSTRUCTOR. (a) Prohibits a person from teaching or giving driver safety training, rather than driver training unless a driving safety instructor license has been secured from the Texas Higher Education Coordinating Board. Prohibits a person from teaching or giving driver education, either as an individual or in a school, or any phase of driver education unless a driver education instructor license has been secured from the Texas Higher Education Coordinating Board. Deletes existing Subdivisions (1) and (2) which provides exceptions to this subsection. Makes conforming and nonsubstantive changes. (b) Provides that a driver education or safety license, rather than training license, expires not more than, rather than automatically, 12 months after the date of issue. Requires license renewal applications to include evidence of completion of continuing education. Requires the continuing education to be in courses approved by the commissioner and be for a certain number of hours determined by the commissioner. (c) Requires a driver safety instructor license to be carried by the instructor at all times while instructing driving safety courses. Requires each license to be issued under the seal of the members of the Texas Higher Education Coordinating Board, rather than the Central Education Agency. Deletes language prohibiting a person from teaching or giving driver training without a license as a driver training instructor. Makes a nonsubstantive and a conforming change. SECTION 18. Amends Article 4416(29c), V.T.C.S., by adding Section 15A, as follows: Sec. 15A. DRIVER EDUCATION INSTRUCTOR TRAINING. (a) Requires the commissioner, with approval of the members of the Texas Higher Education Coordinating Board, to establish standards for certification of professional and paraprofessional personnel who conduct driver education programs in driver education schools. (b) Prohibits a driver education license from being issued authorizing a person to teach or give driver education in-car training unless the person has successfully completed six semester hours of driver and traffic safety education or a program of study in driver education approved by the members of the Texas Higher Education Coordinating Board from an approved driver education school. Authorizes a person holding a driver education instructor license (instructor license) authorizing in-car training to be approved to assist classroom instructors in the classroom phase of driver education if the person successfully completes the additional three semester hours of training required for a classroom instructor or a program of study in driver education approved by the members of the Texas Higher Education Coordinating Board that includes administering driver education programs and supervising and administering traffic safety education. (c) Prohibits a driver education instructor license from being issued authorizing a person to teach or give classroom driver education training unless the person has completed a required course or program of study approved by the members of the Texas Higher Education Coordinating Board and holds a teaching certificate and any additional certification required to teach driver education. (d) Authorizes a driver education instructor who has completed the educational requirements for a classroom driver education instructor to be approved to teach instructor training classes after successfully completing a supervising instructor development program consisting of at least six additional semester hours or a program of study in driver education approved by the members of the Texas Higher Education Coordinating Board that includes administering driver education programs and supervising and administering traffic safety education. (e) Authorizes an driver education school to submit for approval by the Texas Higher Education Coordinating Board a curriculum for an instructor development program for driver education instructors. Requires the program to be taught by a person who has successfully completed a supervising instructor development program under Subsection (d) of this section and has satisfied the requirements for the particular program or type of training to be provided. SECTION 19. Amends Section 16, Article 4413(29c), V.T.C.S., as follows: Sec. 16. DENIAL, SUSPENSION, REVOCATION GROUNDS. (a) Created from existing text. (b) Requires the Texas Higher Education Coordinating Board to notify the applicant or license holder by certified mail of the decision by the 10th day after the date of a decision. SECTION 20. Amends Section 17, Article 4413(29c), V.T.C.S., as follows: Sec. 17. HEARING. (a) Authorizes a person aggrieved by the denial, suspension, or revocation of a license to appeal the decision and request a hearing before the commissioner. Requires the request to be submitted by the 15th day after the date of receipt of the notice of the decision. Requires the commissioner, on receipt of a request for hearing, to set a time and place for the hearing and send notice to the person of the time and place. Requires a hearing to be held within 30 days after the date of the receipt of request. Authorizes the applicant or licensee to appear in person or by counsel and present evidence at the hearing. Authorizes any interested person to appear and present oral or documentary evidence. Deletes existing Subsection (a) relating to license revocation and the appeals hearing process. (b) Requires the commissioner, rather than the Central Education Agency, to conduct the administrative hearing except as provided by Subsection (c). Requires the commissioner to notify the applicant or license holder by certified mail of the commissioner's decision on the appeal. Makes nonsubstantive changes. (c) Authorizes the Texas Higher Education Coordinating Board to contract with another entity for the conducting of a hearing. SECTION 21. Amends Section 18, Article 4413(29c), V.T.C.S., as follows: Sec. 18. New heading: JUDICIAL REVIEW. (a) Authorizes the commissioner's decision on the appeal to be appealed to a district court in Travis County. Deletes existing Subsection (a) relating to the appeals process for an applicant before the commissioner. Redesignates existing Subsection (b). (b)-(e) Redesignate existing Subsections (c)-(f). SECTION 22. Amends Section 25, Article 4413(29c), V.T.C.S., as follows: Sec. 25. SANCTIONS. (a) Authorizes the Texas Higher Education Coordinating Board, if it believes that a driver education school or instructor has violated this Act or a rule adopted under this Act, without notice, to order a peer review, suspend the enrollment of students in the school or the offering of instruction by the instructor, or suspend the right to purchase driver education certificates of completion. (b) Authorizes the Texas Higher Education Coordinating Board, if it believes that a course provider, safety school, or driving safety instructor has violated this Act or the Uniform Act Regulating Traffic on Highways, without notice, to place specific sanctions on the course provider, safety school, or driver safety instructor. Makes conforming changes. (c) Makes conforming changes. Redesignates existing Subsection (b). SECTION 23. Amends Section 27, Article 4413(29c), V.T.C.S., to require any person who violates a provision of this Act, commits an offense, rather than being guilty of a misdemeanor, and except as otherwise provided by law, to be fined between $100 and $20,000, rather than $1,000, or by imprisonment in the county jail not to exceed 6 months, or both. SECTION 24. Amends Article 4413(29c), V.T.C.S., by adding Section 27A, as follows: Sec. 27A. UNAUTHORIZED TRANSFER OF CERTIFICATE. (a) Provides that a person who knowingly sells, trades, issues, or otherwise transfers, or possess as with intent to sell trade, issue, or otherwise transfer a certificate or driver education certificate to an individual, firm, or corporation not authorized to possess it commits an offense. (b) Provides that a person who knowingly possesses a uniform certificate of completion or driver education certificate and who is not authorized to possess the certificate commits an offense. (c) Requires a person adjudged guilty of an offense under this section to be punished by imprisonment in the institutional division of the Texas Department of Criminal Justice for a term not to exceed five years. SECTION 25. Amends Section 7(a), Article 6687(b), V.T.C.S., to include in the list of people eligible as a Class C driver, a person who has submitted to the Department of Public Safety (department) a driver education certificate indicating that the person has completed and passed a driver education course. Makes conforming changes. SECTION 26. Amends Section 10, Article 6687b, V.T.C.S., by adding Subsection (e), to authorize a licensed driver education school to administer the vision, highway sign, and traffic law parts of the examination to a student of the school. Provides that an examination administered under this subsection satisfies the examination requirements of the section as to the parts of the test administered. SECTION 27. Amends Section 12(c), Article 6687b, V.T.C.S., to authorize the department or a licensed driver education school to issue an instruction permit to persons who meet the requirements. Requires the department to provide a driver education school appropriate forms for the instruction permits authorized to be issued by the school. Provides that an applicant to the department for issuance of an instruction permit is not required for a permit issued by a driver education school. Requires the school to collect the applicable fee for an instruction permit and forward it to the department. Requires the department, by rule, to provide for administration of the issuance of instruction permits by driver education schools. Authorizes an instruction permit to be issued by a driver education school only to a student of the school. SECTION 28. Amends Section 143A, Article 6701d, V.T.C.S. (Uniform Act Regulating Traffic on Highways) by amending Subsections (a) and (d) and adding Subsections (h)-(l), as follows: (a) Requires the court to advise the defendant of his right to successfully complete a driving safety course. (1) Authorizes the court in its discretion to defer proceedings and allow the person 90 days to take a driving safety course approved by the Texas Higher Education Coordinating Board and 30 additional days to present a uniform certificate of course completion as evidence that the class was completed subsequent to the alleged act. (2) Makes a conforming change. (d) Requires the Texas Higher Education Coordinating Board to adopt and administer comprehensive rules governing driving safety courses and place on file such rules with the secretary of state. Makes conforming changes. (h) Requires an issued uniform certificate of completion to be mailed to the student by the 15th working day after completion of the approved driving safety course only by the course provider or authorized personnel at the course provider's facilities. (i) Requires data identified by the Texas Higher Education Coordinating Board pertaining to issued uniform certificates of completion to be submitted electronically by each course provider to the Texas Higher Education Coordinating Board in a manner determined by the Texas Higher Education Coordinating Board. (j) Requires duplicate uniform certificates of completion to be issued by the Texas Higher Education Coordinating Board. Requires an appropriate fee for issuing duplicate certificates to be determined by rule of the members of the Texas Higher Education Coordinating Board. (k) Requires the Texas Higher Education Coordinating Board to investigate options to develop and implement procedures to provide information pertaining to driving safety courses by electronic transmission to the state municipal and justice courts. (l) Prohibits a driving safety course from being provided to a student for a cost less than $25. SECTION 29. Amends Sections 143A(f) and (g), Article 6701d, V.T.C.S., as follows: (f) Requires the Texas Higher Education Coordinating Board, by rule, to provide for the design and distribution of the certificate in a manner that to the greatest extent possible prevents the unauthorized production or misuse of the certificate. Makes conforming changes. (g) Requires the Texas Higher Education Coordinating Board to print and supply the serially numbered uniform certificates to licensed course providers, rather than owners or primary consignees of approved courses. Authorizes the Texas Higher Education Coordinating Board to charge a fee not to exceed $4 for each certificate. Requires the members of the Texas Higher Education Coordinating Board, rather than the Central Education Agency, to deposit the fees with the state treasurer to be used for the expense of supplying the certificates, payments of monetary awards for information concerning abuse of the certificates that leads to the conviction or removal of an approval, license, or authorization. Requires the course provider to charge and retain a user fee of not less than $3 a student for the use of course materials, oversight, and administration of the course. Makes conforming changes. SECTION 30. Amends Articles 45.54(2) and (3), Code of Criminal Procedure, to require the justice to require the defendant to successfully complete a driving safety course if the defendant, among other requirements, has not completed an approved driving safety course within the 12 preceding months. Makes conforming changes. SECTION 31. (a) Effective date: September 1, 1995. (1) Provides that a rule of the State Board of Education is in effect as a rule of the Texas Higher Education Coordinating Board until superseded by a rule of the Texas Higher Education Coordinating Board. (2) Provides that a proposed rule of the State Board of Education regarding the regulation of driver training schools is considered to have been proposed by the Texas Higher Education Coordinating Board. Requires the Texas Higher Education Coordinating Board to continue the rulemaking process. (3) Provides that a certificate, license, approval, exemption, registration, or notice of adverse action in effect and issued by the Central Education Agency is continued in effect as if issued by the Texas Higher Education Coordinating Board until expiration, suspension, or revocation or until superseded by the Texas Higher Education Coordinating Board. (4) Provides that a complaint or investigation pending before the Central Education Agency is transferred without change in status to the Texas Higher Education Coordinating Board. (5) Provides that a contested case pending before the Central Education Agency is the Central Education Agency's responsibility until administratively final. Provides that a subsequent court proceeding on the matter is treated as if administrative action had been taken by the Texas Higher Education Coordinating Board, and in a pending case the Texas Higher Education Coordinating Board is substituted for the Central Education Agency. (6) Provides that a certificate of completion of a driving safety course authorized by law and issued by the Central Education Agency is considered issued by the Texas Higher Education Coordinating Board. (7) Provides that obligations of the Central Education Agency arising from implementation of this Act and equipment, furniture, and other property and personnel assigned to the administration of this Act are transferred to the Texas Higher Education Coordinating Board for purposes of the Texas Driver and Traffic Safety Education Act. (8) Provides that any unspent money appropriated to the Central Education Agency for implementation of the Texas Driver and Traffic Safety Education Act is transferred to the Texas Higher Education Coordinating Board for implementation of this Act. (9) Provides that a reference in law to the Central Education Agency in relation to regulation of driver training schools and an approved driver safety course means the Texas Higher Education Coordinating Board. (10) Provides that persons issued a certificate, license, approval, or notice of good standing by the Central Education Agency and a certificate of completion of a Central Education Agency-approved course are considered to maintain the same status that applied immediately before the effective date of this Act. (b) Requires a person who on the effective date of this Act has an application for a certificate, license, approval, exemption, or registration on file with the Central Education Agency to be treated by the Texas Higher Education Coordinating Board as if the application had been filed with the Texas Higher Education Coordinating board. (c) Requires the Central Education Agency, within two months after the effective date of this Act, to prepare an inventory of items covered by Subsections (a)(7) and (8) for review and approval by the Texas Higher Education Coordinating Board. (d) Authorizes the Central Education Agency to hire hearings officers or use the State Office of Administrative Hearings. Requires the Central Education Agency to reach a final disposition of each pending case on or before September 1, 1996. (e) Requires the Texas Higher Education Coordinating Board to adopt the necessary rules under the Texas Driver and Traffic Safety Education Act and begin issuing certificates of completion for approved driving safety courses on or before September 1, 1996. (f) and (g) Makes application of this Act prospective. SECTION 32. Emergency clause. EXPLANATION OF AMENDMENTS Amendment #1- Provides that a course provider must charge an operator the same fee that was paid to the agency for a certificate. Amendment #2- Strikes the language that requires the department to provide the proper forms. Strikes the language that requires the department to be responsible for collecting fees and issuing instruction permits. Provides for the agency to contract with the Department to investigate the actions which are prohibited under section (a). SUMMARY OF COMMITTEE ACTION SB 964 was considered by the committee in a public hearing on April 26, 1995. The committee considered 2 amendments to the bill. Both amendments were adopted without objection. The following people testified against the bill: Richard Martin, representing Drive Rite of North America. The bill was reported favorably as amended by a record vote of 6 ayes, 0 nays, 0 pnv, and 3 absent.