By Bailey                                             H.B. No. 1917
       74R6125 JMM-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of certain driver training schools and
    1-3  driving safety courses; providing a penalty.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  The Texas Driver and Traffic Safety Education Act
    1-6  (Article 4413(29c), Vernon's Texas Civil Statutes) is amended by
    1-7  adding Section 9A to read as follows:
    1-8        Sec. 9A.  DRIVER EDUCATION CERTIFICATES.  The agency shall
    1-9  print and supply to driver training schools serially numbered
   1-10  driver education certificates to be used for certifying completion
   1-11  of an approved driver education course.  The agency by rule shall
   1-12  provide for the design and distribution of the certificates in a
   1-13  manner that to the greatest extent possible prevents the
   1-14  unauthorized reproduction or misuse of the certificates.  The
   1-15  agency may charge a fee of $4 for each certificate.
   1-16        SECTION 2.  Section 13(b)(5), Texas Driver and Traffic Safety
   1-17  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   1-18  is amended to read as follows:
   1-19              (5)  The agency shall print and supply serially
   1-20  numbered uniform certificates of course completion to owners or
   1-21  primary consignees of courses approved under this Act.  The agency
   1-22  may charge a fee of $4 <$1> for each certificate.  An owner or
   1-23  consignee may not charge an operator a fee in excess of the fee
   1-24  paid to the agency for a certificate.
    2-1        SECTION 3.  Section 13(g), Texas Driver and Traffic Safety
    2-2  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
    2-3  is amended to read as follows:
    2-4        (g)  Before a driver training school license may be issued
    2-5  under this Act, a bond shall be provided by the school for the
    2-6  period for which the license is to be issued, and the obligation of
    2-7  the bond shall be that neither a provision of this Act nor any rule
    2-8  adopted under this Act shall be violated by the school or any of
    2-9  its officers, agents, or employees.  A driver training school that
   2-10  teaches driver education shall submit a bond in the amount of
   2-11  $10,000 for its primary driver training school and $5,000 for each
   2-12  branch location of the school.  All other schools shall submit a
   2-13  bond in the amount of $5,000.  In addition, a course owner shall
   2-14  provide a performance bond in an amount prescribed by the agency
   2-15  and conditioned on the payment of the liability of a course owner
   2-16  for failure to pay a penalty provided for under this Act.  Each <A>
   2-17  bond must be a corporate surety bond issued by a company authorized
   2-18  to do business in the state, be payable to the state, and be used
   2-19  only for payment of a refund due to a student or potential student
   2-20  or to pay a penalty provided for under this Act.  Each <The> bond
   2-21  shall be filed with the commissioner and shall be in such form as
   2-22  shall be approved by the commissioner.  Posting of these bond
   2-23  amounts shall satisfy the requirements for financial stability for
   2-24  schools under this Act.
   2-25        SECTION 4.  Section 15, Texas Driver and Traffic Safety
   2-26  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   2-27  is amended by adding Subsection (d) to read as follows:
    3-1        (d)  The agency shall require as a condition for issuance of
    3-2  a driver training instructor license that the applicant provide a
    3-3  performance bond in an amount prescribed by the agency conditioned
    3-4  on the faithful performance of the applicant's duties as a driver
    3-5  training instructor.  The bond must be a corporate surety bond
    3-6  issued by a company authorized to do business in this state, be
    3-7  payable to the state, and be used only as provided by agency rule.
    3-8        SECTION 5.  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 15A to read as follows:
   3-11        Sec. 15A.  CONTINUING EDUCATION.  (a) The agency shall
   3-12  require as a condition for renewal of a driver training instructor
   3-13  license under Section 15 of this Act that the license holder
   3-14  participate in continuing education as required by agency rule.
   3-15        (b)  The agency shall adopt rules under this section relating
   3-16  to:
   3-17              (1)  the number of hours of continuing education
   3-18  required to renew a license;
   3-19              (2)  the manner by which an applicant for renewal of a
   3-20  license shall report attendance at and completion of continuing
   3-21  education to the agency;
   3-22              (3)  the development of continuing education programs
   3-23  offered by the agency; and
   3-24              (4)  the approval of the content of continuing
   3-25  education programs offered by providers other than the agency.
   3-26        (c)  The agency may charge a reasonable fee to cover the
   3-27  costs of administering this section and the costs of providing
    4-1  continuing education programs under this section.
    4-2        SECTION 6.  Section 16, Texas Driver and Traffic Safety
    4-3  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
    4-4  is amended to read as follows:
    4-5        Sec. 16.  DENIAL, SUSPENSION, REVOCATION GROUNDS.  (a)  The
    4-6  agency may deny, suspend, or revoke the license of any instructor
    4-7  on any one or more of the following grounds:
    4-8              (1)  when the agency is satisfied that the applicant or
    4-9  licensee fails to meet the requirements to receive or hold a
   4-10  license under this Act;
   4-11              (2)  when the applicant or licensee permits fraud or
   4-12  engages in fraudulent practices with reference to the application
   4-13  to the agency, induces or countenances fraud or fraudulent
   4-14  practices on the part of any applicant for a driver's license or
   4-15  permit, or permits or engages in any other fraudulent practice in
   4-16  any action between the applicant or licensee and the public; or
   4-17              (3)  when the applicant or licensee fails to comply
   4-18  with the rules of the agency regarding the instruction of drivers
   4-19  in this state or fails to comply with any section of this Act.
   4-20        (b)  The agency may provide for the immediate temporary
   4-21  suspension of a license of a school or instructor under this Act
   4-22  after placing the license holder on notice of an intent to revoke
   4-23  the license for selling a uniform certificate of completion in
   4-24  violation of Section 9(4) of this Act.
   4-25        (c)  A license holder subject to an immediate temporary
   4-26  suspension under Subsection (b) of this section may not engage in
   4-27  the instruction of students while the suspension is in effect.  The
    5-1  license holder may request a hearing before the 11th day after the
    5-2  date of the suspension to show cause why the suspension should not
    5-3  be continued until a final decision on revocation of the license is
    5-4  made after a hearing under Section 17 of this Act.  If the license
    5-5  holder does not request a hearing under this subsection, the
    5-6  suspension shall continue until a final decision on revocation is
    5-7  made after a hearing under Section 17 of this Act.
    5-8        SECTION 7.  The Texas Driver and Traffic Safety Education Act
    5-9  (Article 4413(29c), Vernon's Texas Civil Statutes) is amended by
   5-10  adding Section 16A to read as follows:
   5-11        Sec. 16A.  REWARD.  The agency shall offer a monetary reward
   5-12  to a person who provides information that leads to the conviction
   5-13  of another for a violation of this Act or to the revocation of a
   5-14  license under this Act.
   5-15        SECTION 8.  The Texas Driver and Traffic Safety Education Act
   5-16  (Article 4413(29c), Vernon's Texas Civil Statutes) is amended by
   5-17  adding Section 16B to read as follows:
   5-18        Sec. 16B.  PROHIBITED SALE OF COMPLETION CERTIFICATES.  (a)
   5-19  The agency shall contract with the Department of Public Safety to
   5-20  provide undercover and investigative assistance in the enforcement
   5-21  of the prohibition of the sale of a uniform certificate of
   5-22  completion in violation of Section 9(4) of this Act.
   5-23        (b)  On receipt of evidence indicating that a driver training
   5-24  instructor licensed under this Act may be engaged in the illegal
   5-25  sale of a uniform certificate of completion, the agency shall
   5-26  notify the appropriate local law enforcement agency and the
   5-27  district court judges for the jurisdiction where the instructor
    6-1  resides or acts as an instructor.
    6-2        (c)  The agency shall develop a plan providing for a visit by
    6-3  a representative of the agency to each school licensed under this
    6-4  Act at least once annually.
    6-5        (d)  The owner of a school shall immediately discontinue the
    6-6  sale of a uniform certificate of completion to any instructor who
    6-7  has received from the agency a notice of intent to revoke the
    6-8  instructor's license for the illegal sale of a certificate.
    6-9        (e)  The agency shall suspend the sale of uniform
   6-10  certificates of completion to a course owner for whom the agency
   6-11  has evidence that the course owner:
   6-12              (1)  has sold certificates to an instructor whom the
   6-13  course owner knows has engaged in the illegal sale of certificates;
   6-14  or
   6-15              (2)  does not follow procedures adopted by the agency
   6-16  to adequately monitor the processing of certificates.
   6-17        (f)  In order to monitor the processing of certificates, the
   6-18  agency shall adopt rules requiring the positive identification of a
   6-19  student at a school before the student begins the course of
   6-20  instruction at the school.
   6-21        SECTION 9.  Section 27, Texas Driver and Traffic Safety
   6-22  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   6-23  is amended to read as follows:
   6-24        Sec. 27.  PENALTIES.  (a)  Except as provided by Subsection
   6-25  (b) of this section, any <Any> person who violates any provision of
   6-26  this Act shall be guilty of a misdemeanor and upon conviction
   6-27  thereof shall be punished by a fine of not less than $100 nor more
    7-1  than $1,000, or by imprisonment in the county jail for a term of
    7-2  not to exceed six months, or both.
    7-3        (b)  A person commits an offense if the person violates
    7-4  Section 9(4) of this Act.  An offense under this subsection is a
    7-5  felony of the third degree.
    7-6        SECTION 10.  (a) This Act takes effect September 1, 1995.
    7-7        (b)  The change in law made by this Act applies only to an
    7-8  offense that occurs on or after the effective date of this Act.
    7-9  For purposes of this section, an offense is committed before the
   7-10  effective date of this Act if any element of the offense occurs
   7-11  before that date.
   7-12        (c)  An offense committed before the effective date of this
   7-13  Act is covered by the law in effect when the offense was committed,
   7-14  and the former law is continued in effect for that purpose.
   7-15        (d)  The change in law made by this Act to Section 13(g),
   7-16  Texas Driver and Traffic Safety Education Act (Article 4413(29c),
   7-17  Vernon's Texas Civil Statutes), requiring a course owner to provide
   7-18  a performance bond applies only to an owner of a driver training
   7-19  school who applies for or renews a license on or after the
   7-20  effective date of this Act.
   7-21        SECTION 11.  The importance of this legislation and the
   7-22  crowded condition of the calendars in both houses create an
   7-23  emergency and an imperative public necessity that the
   7-24  constitutional rule requiring bills to be read on three several
   7-25  days in each house be suspended, and this rule is hereby suspended.