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.