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.