By Kubiak H.B. No. 2990 74R8157 CAS-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the regulation of certain proprietary schools; 1-3 providing a criminal penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. DEFINITIONS. In this Act: 1-6 (1) "Commission" means the Commission on Proprietary 1-7 School Regulation. 1-8 (2) "Person" means an individual, corporation, 1-9 partnership, association, or other legal entity. 1-10 (3) "Proprietary school" means a business enterprise 1-11 operated for a profit that offers or maintains a course of 1-12 instruction or study for adult, driver, or aviation education. 1-13 SECTION 2. COMMISSION. (a) The Commission on Proprietary 1-14 School Regulation consists of seven members appointed by the 1-15 governor with the advice and consent of the senate. Each member is 1-16 appointed for a term of two years, with three members' terms 1-17 expiring on February 1 of each odd-numbered year and four members' 1-18 terms expiring on February 1 of each even-numbered year. The 1-19 governor shall make the appointments without regard to the race, 1-20 color, disability, age, sex, religion, or national origin of the 1-21 appointee. The governor shall appoint members so that each member 1-22 has expertise in a field of adult, driver, or aviation education 1-23 and so that a member with expertise in each of those fields serves 1-24 on the commission. 2-1 (b) Except as provided by Subsection (c), a person may not 2-2 serve as a member of the commission or act as the general counsel 2-3 to the commission if the person is required to register as a 2-4 lobbyist under Chapter 305, Government Code, because of the 2-5 person's activities for compensation on behalf of a profession 2-6 related to the operation of the commission. 2-7 (c) A member may not consecutively serve more than two full 2-8 terms. 2-9 (d) The commission shall elect one of its members to serve 2-10 as presiding officer for a period of one year. The presiding 2-11 officer may vote on all matters before the commission. 2-12 (e) A majority of the full membership of the commission 2-13 constitutes a quorum for the transaction of business. 2-14 (f) A commission member serves without compensation, but is 2-15 entitled to reimbursement for all actual and necessary expenses 2-16 incurred in performing the functions of the commission, subject to 2-17 any applicable limitation of reimbursement provided by the General 2-18 Appropriations Act. 2-19 (g) The commission shall meet at least every four months and 2-20 may meet at other times at the call of the presiding officer or as 2-21 provided by the rules of the commission. 2-22 (h) In addition, it is a ground for removal from the 2-23 commission if a member: 2-24 (1) does not have at the time of appointment the 2-25 qualifications required by this section for appointment to the 2-26 commission; 2-27 (2) does not maintain during the service on the 3-1 commission the qualifications required by this section for 3-2 appointment to the commission; or 3-3 (3) violates a prohibition established by Subsection 3-4 (b) of this section. 3-5 (i) The validity of an action of the commission is not 3-6 affected by the fact that it was taken when a ground for removal of 3-7 a member of the commission existed. 3-8 (j) If the executive director has knowledge that a potential 3-9 ground for removal exists, the executive director shall notify the 3-10 presiding officer of the commission of the ground. The presiding 3-11 officer shall then notify the governor that a potential ground for 3-12 removal exists. 3-13 (k) The commission is subject to Chapter 551, Government 3-14 Code, and Chapter 2001, Government Code. 3-15 (l) The commission is subject to Chapter 325, Government 3-16 Code (Texas Sunset Act). Unless continued in existence as provided 3-17 by that chapter, the commission is abolished and this Act expires 3-18 September 1, 2007. 3-19 SECTION 3. POWERS AND DUTIES. The commission shall: 3-20 (1) employ an executive director who may hire the 3-21 personnel necessary to administer the duties of the commission; 3-22 (2) adopt rules consistent with this Act; 3-23 (3) establish and collect reasonable and necessary 3-24 fees designed to defray administrative costs for examinations, 3-25 licenses, license renewals, and renewal penalties; 3-26 (4) file with the governor and the presiding officer 3-27 of each house of the legislature a complete and detailed written 4-1 report in January of each year accounting for all funds received 4-2 and disbursed by the commission during the preceding year; 4-3 (5) provide to its members and employees as often as 4-4 is necessary information regarding their qualifications under this 4-5 Act and their responsibilities under applicable laws relating to 4-6 standards of conduct for state officers or employees; and 4-7 (6) take other action as necessary to administer and 4-8 enforce this Act. 4-9 SECTION 4. CAREER LADDER PROGRAM. (a) The executive 4-10 director or the executive director's designee shall develop an 4-11 intra-agency career ladder program, one part of which shall be the 4-12 intra-agency posting of all nonentry level positions for at least 4-13 10 days before any public posting. 4-14 (b) The executive director or designee shall develop a 4-15 system of annual performance evaluations based on measurable job 4-16 tests. All merit pay for commission employees must be based on the 4-17 system established under this subsection. 4-18 SECTION 5. COMPLAINTS; CONSUMER INFORMATION. (a) The 4-19 commission shall prepare information of public interest describing 4-20 the functions of the commission and the commission's procedures by 4-21 which complaints are filed with and resolved by the commission. 4-22 The commission shall make the information available to students 4-23 enrolling in proprietary schools and appropriate state agencies. 4-24 (b) The commission by rule shall establish methods by which 4-25 consumers are notified of the name, mailing address, and telephone 4-26 number of the commission for the purpose of directing complaints to 4-27 the commission. The commission may provide for that notification: 5-1 (1) on each registration form, application, or written 5-2 contract for services of a person regulated under this Act; 5-3 (2) on a sign prominently displayed in the place of 5-4 business of each person regulated under this Act; or 5-5 (3) in a bill for service provided by a person 5-6 regulated under this Act. 5-7 (c) The commission shall develop and implement policies that 5-8 provide the public with a reasonable opportunity to appear before 5-9 the commission and to speak on any issue under the jurisdiction of 5-10 the commission. 5-11 SECTION 6. LICENSE REQUIRED. Except as otherwise provided 5-12 by this Act, a person may not operate a proprietary school unless 5-13 the person holds a license issued under this Act. 5-14 SECTION 7. EXEMPTIONS. This Act does not apply to a school 5-15 or educational institution supported by local or state taxation. 5-16 SECTION 8. APPLICATION REQUIREMENTS. An applicant for a 5-17 license to operate a proprietary school must: 5-18 (1) submit to the commission a completed application 5-19 on a form prescribed by the commission; 5-20 (2) submit to the commission any other information 5-21 required by commission rule; and 5-22 (3) pay any application fees. 5-23 SECTION 9. LICENSE. (a) The commission shall issue a 5-24 license to operate a proprietary school to a person who complies 5-25 with the application requirements of this Act. 5-26 (b) The commission may issue different classes of licenses 5-27 based on the type of proprietary school for which an applicant has 6-1 submitted an application to operate. 6-2 (c) A license issued by the commission is valid throughout 6-3 this state but is not assignable or transferable. 6-4 SECTION 10. LICENSE RENEWAL. (a) A license is valid for 6-5 one year and may be renewed annually on or before December 31 on 6-6 payment of the required fee. 6-7 (b) The commission by rule may adopt a system under which 6-8 licenses expire on various dates during the year. For the year in 6-9 which the license expiration date is changed, license fees payable 6-10 on or before December 31 shall be prorated on a monthly basis so 6-11 that each license holder pays only that portion of the license fee 6-12 that is applicable to the number of months during which the license 6-13 is valid. On renewal of the license on the new expiration date, 6-14 the total license renewal fee is due. 6-15 (c) At least 30 days before the expiration of a person's 6-16 license, the commission shall notify the person in writing, at the 6-17 person's last known mailing address, of the impending license 6-18 expiration. A person may renew an unexpired license by paying to 6-19 the commission, before the expiration date of the license, the 6-20 required renewal fee. If a person's license has been expired for 6-21 not longer than 90 days, the person may renew the license by paying 6-22 to the commission the required renewal fee and a late fee in an 6-23 amount equal to one-half of the examination fee for the license. 6-24 If a person's license has been expired for longer than 90 days but 6-25 less than two years, the person may renew the license by paying to 6-26 the commission all unpaid renewal fees and a late fee in an amount 6-27 equal to the examination fee for the license. If a person's 7-1 license has been expired for two years or longer, the person may 7-2 not renew the license. The person may obtain a new license by 7-3 complying with requirements and procedures for obtaining an 7-4 original license. 7-5 SECTION 11. DENIAL, SUSPENSION, AND REVOCATION OF LICENSE. 7-6 (a) The commission, as necessary to protect the public health, 7-7 safety, or welfare, shall adopt rules establishing the grounds for 7-8 the denial, suspension, or revocation of a license, reprimands of a 7-9 license holder, or placement of a license holder on probation and 7-10 shall adopt rules establishing procedures for disciplinary actions. 7-11 (b) The commission may deny, suspend, or revoke a license, 7-12 place on probation a license holder whose license has been 7-13 suspended, reprimand a license holder, or reinstate a license. 7-14 (c) If the commission proposes to take any disciplinary 7-15 action against a license holder, the license holder is entitled to 7-16 a hearing before the commission. Proceedings of the commission 7-17 relating to the suspension or revocation of a license issued under 7-18 this Act are governed by Chapter 2001, Government Code. 7-19 (d) A license holder whose license has been revoked may 7-20 apply for a new license after the expiration of one year after the 7-21 date of the revocation. 7-22 SECTION 12. CRIMINAL PENALTY. (a) A person commits an 7-23 offense if the person violates a licensing requirement imposed by 7-24 or adopted under this Act. 7-25 (b) An offense under this section is a Class C misdemeanor. 7-26 SECTION 13. INITIAL APPOINTMENTS. In making the initial 7-27 appointments to the commission, the governor shall designate four 8-1 members for terms expiring on February 1, 1996, and three members 8-2 for terms expiring on February 1, 1997. 8-3 SECTION 14. REPEALER. Chapter 32, Education Code, and the 8-4 Texas Driver and Traffic Safety Education Act (Article 4413(29c), 8-5 Vernon's Texas Civil Statutes) are repealed. 8-6 SECTION 15. EFFECTIVE DATE. (a) Except as provided by 8-7 Subsection (b) of this section, this Act takes effect September 1, 8-8 1995. 8-9 (b) Sections 6 and 12 of this Act take effect January 1, 8-10 1996. 8-11 SECTION 16. EMERGENCY. The importance of this legislation 8-12 and the crowded condition of the calendars in both houses create an 8-13 emergency and an imperative public necessity that the 8-14 constitutional rule requiring bills to be read on three several 8-15 days in each house be suspended, and this rule is hereby suspended.