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.