S.B. No. 964
                                        AN ACT
    1-1  relating to the regulation of driver training; providing a penalty.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 21.102, Education Code, is amended to
    1-4  read as follows:
    1-5        Sec. 21.102.  Driver Education.  (a)  The Central Education
    1-6  Agency shall develop a program of organized instruction in driver
    1-7  education and traffic safety for public school students.  A student
    1-8  who will be 15 years of age or older before a driver education and
    1-9  traffic safety course ends may enroll in the course.
   1-10        (b)  With the approval of the State Board of Education, the
   1-11  commissioner of education shall establish standards for the
   1-12  certification of professional and paraprofessional personnel who
   1-13  conduct the programs in the public schools.
   1-14        (c)  A public school offering a driver's education program
   1-15  shall make the program accessible to all children who are exempt
   1-16  from the requirements of compulsory attendance under Section
   1-17  21.033.
   1-18        SECTION 2.  Subchapter F, Chapter 51, Education Code, is
   1-19  amended by adding Section 51.307 to read as follows:
   1-20        Sec. 51.307.  DRIVER EDUCATION.  A driver education course
   1-21  for the purpose of preparing students to obtain a driver's license
   1-22  may be offered by an institution of higher education, as defined by
   1-23  Section 61.003, with the approval of the Central Education Agency.
   1-24        SECTION 3.  Section 2, Texas Driver and Traffic Safety
    2-1  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
    2-2  as added by Chapter 835, Acts of the 72nd Legislature, Regular
    2-3  Session, 1991, is amended to read as follows:
    2-4        Sec. 2.  Purpose and objectives.  Traffic crashes in Texas
    2-5  annually take the lives of thousands of people and cause billions
    2-6  of dollars in economic losses.  These alarming facts make safe
    2-7  driving a concern for all citizens of the state.  Deaths, injuries,
    2-8  and property damage must be reduced.  The attitudes and skills of
    2-9  drivers must be improved through effective driver education and
   2-10  training.  It is a matter of vital public importance to identify
   2-11  and implement all reasonable means to reduce the toll in human
   2-12  suffering and property loss that is inflicted by vehicle crashes.
   2-13  The purpose of this Act is to improve driver knowledge and skills
   2-14  through the licensing and regulation by the Central Education
   2-15  Agency of driver training schools and driver training instructors
   2-16  in Texas.  It is additionally intended that state agency rules
   2-17  affecting schools that qualify as small businesses be established
   2-18  and administered so as to have the least possible adverse economic
   2-19  effect on those establishments.
   2-20        SECTION 4.  Section 3, Texas Driver and Traffic Safety
   2-21  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   2-22  is amended by amending Subdivisions (5), (7), (8), (11), and (14)
   2-23  and by adding Subdivisions (16), (17), (18), (19), (20), (21), and
   2-24  (22) to read as follows:
   2-25              (5)  "Driver training" <training school" or "school">
   2-26  means driver education provided by a driver education school and
   2-27  driving safety training provided by a driving safety school <any
    3-1  enterprise that maintains a place of business or solicits business
    3-2  in the state, that is operated by an individual, association,
    3-3  partnership, or corporation, for the education and training of
    3-4  persons, at a primary location or extension, in driver education,
    3-5  driving safety, or any instructor development program, and that is
    3-6  not specifically exempted by this Act>.
    3-7              (7)  "School" <"Extension"> means a driver education
    3-8  school or driving safety school <an entity that geographically
    3-9  extends the educational resources of a driver training school by
   3-10  offering a driving safety course in a location other than the main
   3-11  business location of the school.  An extension may use multiple
   3-12  locations to teach a driving safety course if each location is
   3-13  approved by the parent school and the agency.  A driver education
   3-14  course may not be conducted at an extension.  An extension of an
   3-15  extension is not permitted>.
   3-16              (8)  "Operator" means a person approved by a driving
   3-17  safety course owner or consignee to conduct an approved
   3-18  <agency-approved> driving safety course.
   3-19              (11)  "School employee" means any person, other than an
   3-20  owner, who directly or indirectly receives compensation from the
   3-21  school for instructional or other services rendered.
   3-22              (14)  "Uniform certificate of completion" means a
   3-23  document that is printed, administered, and supplied by the agency
   3-24  to owners or primary consignees for issuance to students who
   3-25  successfully complete an approved <agency-approved> driving safety
   3-26  course and that meets the requirements of Section 143A, Uniform Act
   3-27  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
    4-1  Statutes).
    4-2              (16)  "Approved driving safety course" means a driving
    4-3  safety course approved by the board.
    4-4              (17)  "Course provider" means an enterprise that
    4-5  maintains a place of business or solicits business in this state,
    4-6  that is operated by an individual, association, partnership, or
    4-7  corporation, and that is a driving safety course owner or primary
    4-8  consignee.
    4-9              (18)  "Driver education school" means an enterprise
   4-10  that maintains a place of business or solicits business in this
   4-11  state, that is operated by an individual, association, partnership,
   4-12  or corporation for the education and training of persons at a
   4-13  primary or branch location in driver education or driver education
   4-14  instructor development, and that is not specifically exempted by
   4-15  this Act.
   4-16              (19)  "Driver education school owner" means a person
   4-17  who has been approved by the commissioner to own and operate a
   4-18  driver education school.
   4-19              (20)  "Driving safety course owner" means an enterprise
   4-20  that is operated by an individual, association, partnership, or
   4-21  corporation that has received an approval for a driving safety
   4-22  course from the board.
   4-23              (21)  "Driving safety school" means an enterprise that
   4-24  maintains a place of business or solicits business in this state,
   4-25  that is operated by an individual, association, partnership, or
   4-26  corporation for the education and training of persons in driving
   4-27  safety, and that is not specifically exempted by this Act.  A
    5-1  driving safety school may use multiple classroom locations to teach
    5-2  a driving safety course if each location is approved by the parent
    5-3  school and the agency and bears the same name and has the same
    5-4  ownership as the parent school.
    5-5              (22)  "Primary consignee" means any enterprise that is
    5-6  operated by an individual, association, partnership, or corporation
    5-7  that has been designated by a driving safety course owner to
    5-8  conduct business and represent the course owner in this state.
    5-9        SECTION 5.  Subsection (b), Section 4, Texas Driver and
   5-10  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
   5-11  Civil Statutes), is amended to read as follows:
   5-12        (b)  The agency <board> shall enter into a memorandum of
   5-13  understanding with the Texas Rehabilitation Commission and the
   5-14  Department of Public Safety for the interagency development of
   5-15  curricula and licensing criteria for hospital and rehabilitation
   5-16  facilities that teach driver education.  The agency shall
   5-17  administer comprehensive rules governing driver education courses
   5-18  adopted by mutual agreement between the board, the Texas
   5-19  Rehabilitation Commission, and the Department of Public Safety.
   5-20  The agency <board> shall file the rules with the secretary of
   5-21  state.
   5-22        SECTION 6.  Section 6, Texas Driver and Traffic Safety
   5-23  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   5-24  is amended to read as follows:
   5-25        Sec. 6.  DUTIES OF COMMISSIONER.  (a)  The commissioner shall
   5-26  carry out the policies of this Act, enforce rules adopted by the
   5-27  board, and certify those schools and course providers meeting the
    6-1  requirements for a driver education school license, driving safety
    6-2  <training> school license, or both, or for a course provider
    6-3  license.
    6-4        (b)  The commissioner by rule shall establish the curriculum
    6-5  and designate the textbooks that must be used in a driver education
    6-6  course.  In addition, the <The> commissioner may adopt and enforce
    6-7  temporary rules under this Act, but the temporary rules are valid
    6-8  only until the next meeting of the board.
    6-9        SECTION 7.  Subsection (c), Section 7, Texas Driver and
   6-10  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
   6-11  Civil Statutes), is amended to read as follows:
   6-12        (c)  A driver education course is exempt from this Act,
   6-13  except Section 9A of this Act, if it is:
   6-14              (1)  a vocational driver training school operated to
   6-15  train or prepare a person for a field of endeavor in a business,
   6-16  trade, technical, or industrial occupation;
   6-17              (2)  a school or training program that offers only
   6-18  instruction of purely avocational or recreational subjects as
   6-19  determined by the commissioner;
   6-20              (3)  a course of instruction or study sponsored by an
   6-21  employer for the training of its own employees, and no tuition is
   6-22  charged to a student;
   6-23              (4)  a course of study or instruction sponsored by a
   6-24  recognized trade, business, or professional organization for the
   6-25  instruction of the members of the organization with a closed
   6-26  membership; or
   6-27              (5)  a school that is otherwise regulated and approved
    7-1  under any other state law<; or>
    7-2              <(6)  a course of study conducted by a college or
    7-3  university to train unlicensed individuals>.
    7-4        SECTION 8.  Section 9, Texas Driver and Traffic Safety
    7-5  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
    7-6  is amended to read as follows:
    7-7        Sec. 9.  Prohibitions.  A person may not:
    7-8              (1)  operate a school that provides a driver education
    7-9  course without a driver education <training> school license issued
   7-10  by the commissioner;
   7-11              (2)  operate a school that provides driving safety
   7-12  courses without a driving safety school license issued by the
   7-13  commissioner;
   7-14              (3)  operate as a course provider without a course
   7-15  provider license issued by the commissioner;
   7-16              (4)  utilize advertising designed to mislead or deceive
   7-17  a prospective student;
   7-18              (5) <(3)>  fail to notify the commissioner of the
   7-19  discontinuance of the operation of any school within three working
   7-20  days after cessation of classes and make available accurate records
   7-21  as required by this Act;
   7-22              (6)  issue, <(4)>  sell, trade, or transfer a uniform
   7-23  certificate of completion or driver education certificate to any
   7-24  person or<,> school<, or extension> not authorized to possess it;
   7-25              (7)  issue, <(5)>  sell, trade, or transfer:
   7-26                    (A)  a uniform certificate of completion to a
   7-27  person <student> who has not successfully completed an approved
    8-1  <agency-approved>, six-hour driving safety course; or
    8-2                    (B)  a driver education certificate to a person
    8-3  who has not successfully completed a board-approved driver
    8-4  education course;
    8-5              (8) <(6)>  negotiate any promissory instrument received
    8-6  as payment of tuition or other charge before completion of 75
    8-7  percent of the course, except that before that time, the instrument
    8-8  may be assigned to a purchaser who will be subject to all the
    8-9  defenses available against the school named as payee;
   8-10              (9) <(7)>  conduct any part of an approved
   8-11  <agency-approved> driver education or driving safety course without
   8-12  an instructor who is physically present in appropriate proximity to
   8-13  the student for the type of instruction being given; or
   8-14              (10) <(8)>  violate any provision of this Act.
   8-15        SECTION 9.  The Texas Driver and Traffic Safety Education Act
   8-16  (Article 4413(29c), Vernon's Texas Civil Statutes) is amended by
   8-17  adding Section 9A to read as follows:
   8-18        Sec. 9A.  DRIVER EDUCATION CERTIFICATES.  The agency shall
   8-19  print and supply to licensed and exempt driver education schools
   8-20  serially numbered driver education certificates to be used for
   8-21  certifying completion of an approved driver education course for
   8-22  the purposes of Section 7(a), Chapter 173, Acts of the 47th
   8-23  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
   8-24  Civil Statutes).  The agency by rule shall provide for the design
   8-25  and distribution of the certificates in a manner that to the
   8-26  greatest extent possible prevents the unauthorized reproduction or
   8-27  misuse of the certificates.  The agency may charge a fee of not
    9-1  more than $4 for each certificate.
    9-2        SECTION 10.  Section 10, formerly Section 2, Texas Driver and
    9-3  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
    9-4  Civil Statutes), as amended by Chapters 835 and 867, Acts of the
    9-5  72nd Legislature, Regular Session, 1991, is amended to read as
    9-6  follows:
    9-7        Sec. 10.  LICENSE REQUIRED FOR DRIVER TRAINING SCHOOL.  A
    9-8  person may not operate a driver training school unless a driver
    9-9  training school license for the school has been secured.
   9-10        <No person, firm, association, partnership, or corporation
   9-11  shall operate a commercial driver-training school unless a
   9-12  certificate of approval for the commercial driver-training school
   9-13  has been secured under the Texas Proprietary School Act (Chapter
   9-14  32, Education Code). This section does not apply to training or
   9-15  classes conducted by:>
   9-16              <(1)  colleges, universities, high schools, and junior
   9-17  high schools for students as a part of the normal program for such
   9-18  institutions; or>
   9-19              <(2)  an organization with 50,000 or more members that
   9-20  qualifies for a tax exemption under Section 501(a), Internal
   9-21  Revenue Code of 1986 (26 U.S.C. Section 501), based on being listed
   9-22  under Section 501(c)(4), Internal Revenue Code of 1986 (26 U.S.C.
   9-23  Section 501), and conducts a driving safety course for its members
   9-24  and other individuals who are at least 50 years of age that is not
   9-25  utilized for the dismissal of certain misdemeanor charges as
   9-26  provided by Section 143A, Uniform Act Regulating Traffic on
   9-27  Highways (Article 6701d, Vernon's Texas Civil Statutes).>
   10-1        SECTION 11.  Section 10A, Texas Driver and Traffic Safety
   10-2  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   10-3  is amended to read as follows:
   10-4        Sec. 10A.  BRANCH LOCATIONS.  A driver education <training>
   10-5  school that teaches a driver education course at one or more branch
   10-6  locations other than the main business location of the school must
   10-7  obtain a driver education <training> school license for the main
   10-8  business location of the school and a driver education <training>
   10-9  school license for each branch location.  A <An extension or a>
  10-10  branch location of a branch location is not permitted.
  10-11        SECTION 12.  The Texas Driver and Traffic Safety Education
  10-12  Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
  10-13  by adding Section 10B to read as follows:
  10-14        Sec. 10B.  COURSE AT PUBLIC OR PRIVATE SCHOOL.  A licensed
  10-15  driver training school may conduct a driver training course at a
  10-16  public or private school for students of the public or private
  10-17  school as provided by an agreement with the public or private
  10-18  school.  The course is subject to all requirements of law
  10-19  applicable to a course conducted at the main business location of
  10-20  the driver training school.
  10-21        SECTION 13.  Section 11, Texas Driver and Traffic Safety
  10-22  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  10-23  is amended to read as follows:
  10-24        Sec. 11.  LOCATIONS AUTHORIZED FOR INSTRUCTION.  Driving
  10-25  safety courses complying with Section 143A, Uniform Act Regulating
  10-26  Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes),
  10-27  may be taught at a driving safety <an extension or in a driver
   11-1  training> school if the entity is approved by the agency.  If the
   11-2  commissioner determines that an approved driving safety course can
   11-3  be taught by an alternative delivery method that does not require
   11-4  the students to be present in a classroom and that includes testing
   11-5  and security measures that are at least as secure as the measures
   11-6  available in a usual classroom, the commissioner may approve the
   11-7  alternative method.  On approval, the alternative delivery method
   11-8  is considered to satisfy the requirements of this Act for a driving
   11-9  safety course, and the school may use the alternative delivery
  11-10  method.  A location at which a person taking the course by the
  11-11  alternative method receives supplies or equipment for the course is
  11-12  considered a classroom of the school providing the course.
  11-13  <Instructor preparation courses may be conducted at a course
  11-14  owner's facilities.  All other driver training courses must be
  11-15  conducted in agency approved schools.>
  11-16        SECTION 14.  The section heading and Subsections (a) and (b),
  11-17  Section 12, Texas Driver and Traffic Safety Education Act (Article
  11-18  4413(29c), Vernon's Texas Civil Statutes), are amended to read as
  11-19  follows:
  11-20        Sec. 12.  APPLICATION FOR <DRIVER TRAINING> SCHOOL LICENSE.
  11-21  (a)  To operate or do business in this state, a school must make
  11-22  written application to the commissioner for a driver education or
  11-23  driving safety <training> school license.  The application must be
  11-24  verified, be in the form prescribed by the board, and include all
  11-25  information required.  A driving safety school <that offers driving
  11-26  safety courses> shall obtain approval from the agency for any
  11-27  multiple classroom locations <extension>.
   12-1        (b)  A school may not maintain, advertise, solicit for, or
   12-2  conduct any course of instruction in this state before the later
   12-3  of:
   12-4              (1)  the 30th day after the date the school applies
   12-5  <submits all required documentation, information, and fees and a
   12-6  surety bond> for a driver training school license; or
   12-7              (2)  the date the school receives a driver training
   12-8  school license from the commissioner.
   12-9        SECTION 15.  Section 13, Texas Driver and Traffic Safety
  12-10  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  12-11  is amended by amending Subsections (a), (b), (d), (e), (f), (g),
  12-12  and (h) and by adding Subsections (a-1) and (a-2) to read as
  12-13  follows:
  12-14        (a)  The commissioner shall approve the application of a
  12-15  driver education school when the school is found, on investigation
  12-16  at the premises of the school, to meet the following criteria:
  12-17              (1)  the courses, curriculum, and instruction are of
  12-18  such quality, content, and length as may reasonably and adequately
  12-19  achieve the stated objective for which the courses, curriculum, and
  12-20  instruction are offered;
  12-21              (2)  there are in the school, and in the provision for
  12-22  behind-the-wheel instruction, adequate space, equipment,
  12-23  instructional material, and instructors to provide training of good
  12-24  quality;
  12-25              (3)  educational and experience qualifications of
  12-26  directors, instructors, and administrators are adequate;
  12-27              (4)  a copy of the schedule of tuition, fees, refund
   13-1  policy, and other charges, regulations pertaining to absence,
   13-2  grading policy, and rules of operation and conduct, and the name,
   13-3  mailing address, and telephone number of the agency for the purpose
   13-4  of directing complaints to the agency is furnished to each student
   13-5  before enrollment;
   13-6              (5)  on completion of training, each student is given a
   13-7  certificate by the school indicating the course name and
   13-8  satisfactory completion;
   13-9              (6)  adequate records as prescribed by the commissioner
  13-10  are kept to show attendance and progress or grades, and
  13-11  satisfactory standards relating to attendance, progress, and
  13-12  conduct are enforced;
  13-13              (7)  the school complies with all county, municipal,
  13-14  state, and federal regulations, including fire, building, and
  13-15  sanitation codes and assumed name registration;
  13-16              (8)  the school is financially sound and capable of
  13-17  fulfilling its commitments for training;
  13-18              (9)  the school's administrators, directors, owners,
  13-19  and instructors are of good reputation and character;
  13-20              (10)  the school has, maintains, and publishes as part
  13-21  of its student enrollment contract the proper policy for the refund
  13-22  of the unused portion of tuition, fees, and other charges if a
  13-23  student enrolled by the school fails to take the course or
  13-24  withdraws or is discontinued from the school at any time before
  13-25  completion;
  13-26              (11)  the school does not use erroneous or misleading
  13-27  advertising, either by actual statement, omission, or intimation,
   14-1  as determined by the board;
   14-2              (12)  the school does not use a name like or similar to
   14-3  the name of another existing school or tax-supported educational
   14-4  establishment in this state, unless specifically approved in
   14-5  writing by the commissioner;
   14-6              (13)  the school submits to the agency for approval the
   14-7  applicable course hour lengths and curriculum content for each
   14-8  course offered by the school;
   14-9              (14)  the school does not owe a civil penalty under
  14-10  this Act; and
  14-11              (15)  additional criteria as may be required by the
  14-12  agency <board>.
  14-13        (a-1)  The commissioner shall approve the application of a
  14-14  driving safety school if on investigation the agency finds that:
  14-15              (1)  the school presents the driving safety course,
  14-16  curriculum, and instruction in a quality, content, and length that
  14-17  reasonably and adequately achieve the stated objective for which
  14-18  the course, curriculum, and instruction are developed by the course
  14-19  provider;
  14-20              (2)  the school has adequate space, equipment,
  14-21  instructional material, and instructors to provide training of good
  14-22  quality;
  14-23              (3)  the school's instructors and administrators have
  14-24  adequate educational and experience qualifications;
  14-25              (4)  the school keeps and maintains adequate records as
  14-26  prescribed by the commissioner to show attendance and progress of
  14-27  grades and that satisfactory standards relating to attendance,
   15-1  progress, and conduct are enforced;
   15-2              (5)  the school complies with all county, municipal,
   15-3  state, and federal law, including fire, building, and sanitation
   15-4  codes and assumed name registration;
   15-5              (6)  the school's administrators, owners, and
   15-6  instructors are of good reputation and character;
   15-7              (7)  the school does not use erroneous or misleading
   15-8  advertising, either by actual statement, omission, or intimation,
   15-9  as determined by the board;
  15-10              (8)  the school does not use a name like or similar to
  15-11  the name of another existing school or tax-supported educational
  15-12  establishment in this state unless specifically approved in writing
  15-13  by the commissioner;
  15-14              (9)  the school has, maintains, and uses the approved
  15-15  contract and policies developed by the course provider;
  15-16              (10)  the school does not owe a civil penalty under
  15-17  this Act;
  15-18              (11)  the school will not provide a driving safety
  15-19  course to any person for a cost less than $25; and
  15-20              (12)  the school meets additional criteria required by
  15-21  the board.
  15-22        (a-2)  The commissioner shall approve the application of a
  15-23  person to be a course provider if on investigation the agency finds
  15-24  that:
  15-25              (1)  the course provider has an approved course;
  15-26              (2)  the course provider can show evidence that there
  15-27  is at least one licensed driving safety school that is willing to
   16-1  offer the course;
   16-2              (3)  the course provider has adequate educational and
   16-3  experience qualifications;
   16-4              (4)  the course provider will develop and provide to
   16-5  driving safety schools that offer the approved course a refund
   16-6  policy, regulations pertaining to absence, grading policy, rules of
   16-7  operation, and conduct, and the name, mailing address, and
   16-8  telephone number of the agency for the purpose of directing
   16-9  complaints to the agency and that copies of these will be furnished
  16-10  to each student by the schools before enrollment;
  16-11              (5)  not later than the 15th working day after the date
  16-12  of completion of the course by a person, the course provider mails
  16-13  a uniform certificate of completion to the person indicating the
  16-14  course name and successful completion;
  16-15              (6)  the course provider keeps and maintains adequate
  16-16  records as prescribed by the commissioner to show attendance and
  16-17  progress or grades and that satisfactory standards relating to
  16-18  attendance, progress, and conduct are enforced;
  16-19              (7)  the course provider complies with all county,
  16-20  municipal, state, and federal law, including assumed name
  16-21  registration and other applicable requirements;
  16-22              (8)  the course provider is financially sound and
  16-23  capable of fulfilling its commitments for training;
  16-24              (9)  the course provider is of good reputation and
  16-25  character;
  16-26              (10)  the course provider has, maintains, and publishes
  16-27  as a part of its student enrollment contract the proper policy for
   17-1  the refund of the unused portion of tuition, fees, and other
   17-2  charges if a person enrolled by the school fails to take the course
   17-3  or withdraws or is discontinued from the school at any time before
   17-4  completion;
   17-5              (11)  the course provider does not use erroneous or
   17-6  misleading advertising, either by actual statement, omission, or
   17-7  intimation, as determined by the board;
   17-8              (12)  the course provider does not use a name like or
   17-9  similar to the name of another existing school or tax-supported
  17-10  educational establishment in this state unless specifically
  17-11  approved in writing by the commissioner;
  17-12              (13)  the course provider does not owe a civil penalty
  17-13  under this Act; and
  17-14              (14)  the course provider meets additional criteria
  17-15  required by the board.
  17-16        (b)(1)  License, application, and registration fees shall be
  17-17  collected by the commissioner and deposited with the state
  17-18  treasurer.  Fees shall be sufficient to cover administrative costs
  17-19  and may not be subject to refund.  Fees shall be as follows <Each
  17-20  fee shall be set by the commissioner and approved by the board in
  17-21  an amount not to exceed 150 percent of the following>:
  17-22                    (A)(i)  the initial fee for a driver education
  17-23  <training> school license is $1,000 <$1,700> plus $850 for each
  17-24  branch location;
  17-25                          (ii)  the initial fee for a driving safety
  17-26  school license is an appropriate amount established by the board
  17-27  not to exceed $200; and
   18-1                          (iii)  the initial fee for a course
   18-2  provider license is an appropriate amount established by the board
   18-3  not to exceed $2,000, except that this fee may be waived by the
   18-4  agency if revenue received by the agency from the course provider
   18-5  is sufficient to fund the cost of licensing the course provider;
   18-6                    (B)  the <(i)>  annual renewal fee for a course
   18-7  provider, driving safety school, driver education school, and
   18-8  branch school is an appropriate amount established by the board not
   18-9  to exceed $200, but <fees as specified in this subsection> may be
  18-10  waived by the agency if revenue generated by the issuance <sale> of
  18-11  uniform certificates of completion and driver education
  18-12  certificates is sufficient to fund the cost of administering this
  18-13  Act and Section 143A, Uniform Act Regulating Traffic on Highways
  18-14  (Article 6701d, Vernon's Texas Civil Statutes); <and>
  18-15                          <(ii)  the annual renewal fee for a school
  18-16  license shall be determined by the board in an amount sufficient to
  18-17  fund the cost of administering this Act and Section 143A, Uniform
  18-18  Act Regulating Traffic on Highways (Article 6701d, Vernon's Texas
  18-19  Civil Statutes);>
  18-20                    (C)  the fee for a change of address of a driver
  18-21  education school is $180 and of a driving safety school or course
  18-22  provider is $50;
  18-23                    (D)  the fee for a change of name of:
  18-24                          (i)  a driver education school or course
  18-25  provider or an owner of a driver education school or course
  18-26  provider is $100; and
  18-27                          (ii)  a driving safety school or owner of a
   19-1  driving safety school is $50;
   19-2                    (E)  the application fee for each additional
   19-3  driver education or driving safety course at a school is $25;
   19-4                    (F)  the application fee for each director is
   19-5  $30, and for each assistant director, or administrative staff
   19-6  member is $15;
   19-7                    (G)  each application for approval of a driving
   19-8  safety course that has not been evaluated by the board shall be
   19-9  accompanied by a nonrefundable fee of $9,000 <the fee for each
  19-10  extension is $35>;
  19-11                    (H)  each application for an original driver
  19-12  education or driving safety <training> instructor's license shall
  19-13  be accompanied by a processing fee of $50 and an annual license fee
  19-14  of $25, except that the commissioner may not collect the processing
  19-15  fee from an applicant for a driver education instructor license who
  19-16  is currently teaching a driver education course in a public school
  19-17  in this state; and
  19-18                    (I)  the fee for a duplicate license, which may
  19-19  be issued if the original is lost or destroyed and an affidavit of
  19-20  that fact is filed with the agency, shall be set by the board <in
  19-21  an amount sufficient to cover the costs of issuing the duplicate
  19-22  license>.
  19-23              (2)  A driver education instructor who teaches driver
  19-24  education courses in a county having a population of 50,000 or
  19-25  less, according to the most recent federal census, and who has no
  19-26  more than 200 students annually, shall be regulated by the agency
  19-27  as a school.  An instructor described by this subdivision shall
   20-1  submit a school application or renewal form plus all required
   20-2  documentation and information to the agency.  The commissioner may
   20-3  waive initial school fees, annual school renewal fees, or
   20-4  director's or administrative staff member's fees.  An instructor
   20-5  described by this subdivision is not exempt from licensing
   20-6  requirements or fees.
   20-7              (3)  The commissioner shall periodically review and
   20-8  recommend adjustments in the level of fees to the board and
   20-9  legislature.
  20-10              (4)  The fee for an investigation of <at> a school or
  20-11  course provider to resolve a complaint filed against the school or
  20-12  course provider shall be set by the commissioner and approved by
  20-13  the board.  The complaint investigation fee may be charged only if:
  20-14                    (A)  the complaint could not have been resolved
  20-15  solely by telephone or written correspondence;
  20-16                    (B)  a representative of the agency visited the
  20-17  school or course provider as a part of the complaint resolution
  20-18  process; and
  20-19                    (C)  the school or course provider is found to be
  20-20  at fault.
  20-21              (5)  The agency shall print and supply to licensed
  20-22  course providers serially numbered uniform certificates of course
  20-23  completion <to owners or primary consignees of courses approved
  20-24  under this Act>.  The agency may charge a fee of not more than $4
  20-25  <$1> for each certificate.  A course provider shall <An owner or
  20-26  consignee may not> charge an operator a fee equal to <in excess of>
  20-27  the fee paid to the agency for a certificate.  The course provider
   21-1  shall charge and retain a user fee of not less than $3 a student
   21-2  for the use of course materials, oversight, and administration of
   21-3  the course.
   21-4              (6)  <The commissioner, with approval of the board, may
   21-5  increase any fee authorized under this subsection at a rate that
   21-6  does not exceed the increase in the Consumer Price Index for All
   21-7  Urban Consumers published by the Department of Labor.  Fees under
   21-8  this subsection do not have to be increased annually.>
   21-9              <(7)>  Fees collected under this subsection shall be
  21-10  deposited in the state treasury in a special account in the General
  21-11  Revenue Fund.  Money in the account may be appropriated only for
  21-12  payment of monetary awards for information concerning abuse of the
  21-13  driver education or uniform certificates of completion that leads
  21-14  to the conviction or removal of an approval, license, or
  21-15  authorization and for the administration of this Act and Section
  21-16  143A, Uniform Act Regulating Traffic on Highways (Article 6701d,
  21-17  Vernon's Texas Civil Statutes).  This dedication is exempt from the
  21-18  application of Sections 403.094 and 403.095, Government Code.
  21-19              (7)  Duplicate uniform certificates of completion shall
  21-20  be issued by the agency.  An appropriate fee for issuing duplicate
  21-21  certificates shall be determined by board rule.
  21-22        (d)(1)  The commissioner, on review of an application for a
  21-23  driver education school, driving safety school, or course provider
  21-24  <training school> license that is submitted in accordance with this
  21-25  Act and that meets the requirements of this Act, shall issue a
  21-26  <driver training school> license to the applicant.  Each <A driver
  21-27  training school> license shall be in a form determined
   22-1  <recommended> by the commissioner and approved by the board and
   22-2  shall show in a clear and conspicuous manner at least the
   22-3  following:
   22-4                    (A)  the date of issuance, effective date, and
   22-5  term of approval;
   22-6                    (B)  the name and address of the school or course
   22-7  provider;
   22-8                    (C)  the authority for approval and conditions of
   22-9  approval;
  22-10                    (D)  the signature of the commissioner; and
  22-11                    (E)  any other fair and reasonable
  22-12  representations that are consistent with this Act and considered
  22-13  necessary by the commissioner.
  22-14              (2)  The term for which a driver education school,
  22-15  driving safety school, or course provider <training school> license
  22-16  is issued may not exceed one year.
  22-17              (3)(A)  A driver education school, driving safety
  22-18  school, or course provider <training school> license issued to an
  22-19  owner of the applicant school or course provider is nontransferable
  22-20  and is the property of the state.  In the event of a change in
  22-21  ownership of the school or course provider, a new owner shall, at
  22-22  least 30 days before the date of the change in ownership, apply for
  22-23  a new driver education school, driving safety school, or course
  22-24  provider <training school> license.  Instead of the fees required
  22-25  by Subsection (b) of this section, the fee for a new driver
  22-26  education school or course provider license required under this
  22-27  subdivision is $500, plus $200 for each branch location, if the
   23-1  purchasing entity is substantially similar to the transferring
   23-2  entity and there is no significant change in the management or
   23-3  control of the driver education school or course provider.
   23-4                    (B)  The commissioner is not required to
   23-5  reinspect a school or a branch location after a change of its
   23-6  ownership.
   23-7              (4)  At least 30 days before the expiration of a driver
   23-8  education school, driving safety school, or course provider
   23-9  <training school> license, the school or course provider shall
  23-10  forward to the commissioner an application for renewal.  The
  23-11  commissioner may reexamine a driver education school's <the school>
  23-12  premises.  The commissioner <and> shall renew or cancel the
  23-13  <school's> driver education school, driving safety school, or
  23-14  course provider <training school> license.  If a school or course
  23-15  provider fails to file a complete application for renewal at least
  23-16  30 days before the expiration date of the driver education school,
  23-17  driving safety school, or course provider <training school>
  23-18  license, the school or course provider shall pay as a condition of
  23-19  renewal and in addition to any annual renewal fee a late renewal
  23-20  fee in an amount established by board rule of at least $100,
  23-21  subject to Subsection (b) of this section.
  23-22              (5)  The commissioner shall visit a school or course
  23-23  provider and reexamine the school or course provider for compliance
  23-24  with the criteria adopted under this Act.
  23-25        (e)(1)  If the commissioner determines the applicant for a
  23-26  driver education school, driving safety school, or course provider
  23-27  <training school> license to be unacceptable, the commissioner
   24-1  shall state the reasons for denial, in writing, to the applicant.
   24-2              (2)  Any applicant whose driver education school,
   24-3  driving safety school, or course provider <training school> license
   24-4  is denied has the right of appeal under Section 17 <18> of this
   24-5  Act.
   24-6        (f)(1)  The commissioner may revoke a driver education
   24-7  school, driving safety school, or course provider <training school>
   24-8  license or may place reasonable conditions on the continued
   24-9  approval represented by the license.  On revocation or imposition
  24-10  of conditions on a driver education school, driving safety school,
  24-11  or course provider <training school> license, the commissioner
  24-12  shall notify the licensee, in writing, of the impending action and
  24-13  state the grounds for the proposed action.  The commissioner may
  24-14  reexamine a school or course provider two or more times during any
  24-15  year in which a notice relating to the school or course provider
  24-16  has been issued or conditions have been imposed on the school under
  24-17  this subsection.
  24-18              (2)  A driver education school, driving safety school,
  24-19  or course provider <training school> license may be revoked or be
  24-20  made conditional if the commissioner has reasonable cause to
  24-21  believe that the school or course provider is guilty of a violation
  24-22  of this Act or any rule adopted under this Act.
  24-23        (g)(1)  Before a driver education <training> school license
  24-24  may be issued under this Act, a bond shall be provided by the
  24-25  school for the period for which the license is to be issued, and
  24-26  the obligation of the bond shall be that neither a provision of
  24-27  this Act nor any rule adopted under this Act shall be violated by
   25-1  the school or any of its officers, agents, or employees.  A driver
   25-2  education <training> school <that teaches driver education> shall
   25-3  submit a bond in the amount of $10,000 for its primary driver
   25-4  education <training> school and $5,000 for each branch location of
   25-5  the school.  <All other schools shall submit a bond in the amount
   25-6  of $5,000.>  A bond must be a corporate surety bond issued by a
   25-7  company authorized to do business in the state, be payable to the
   25-8  state, and be used only for payment of a refund due to a student or
   25-9  potential student.  The bond shall be filed with the commissioner
  25-10  and shall be in such form as shall be approved by the commissioner.
  25-11  Posting of these bond amounts shall satisfy the requirements for
  25-12  financial stability for driver education schools under this Act.
  25-13              (2)  A driving safety school is not required to post a
  25-14  surety bond.
  25-15              (3)  Before a course provider license may be issued
  25-16  under this Act, a bond shall be provided by the course provider for
  25-17  the period for which the license is to be issued, and the
  25-18  obligation of the bond shall be that no provision of this Act or
  25-19  the Uniform Act Regulating Traffic on Highways (Article 6701d,
  25-20  Vernon's Texas Civil Statutes) and no rule adopted under this Act
  25-21  may be violated by the course provider or any of its officers,
  25-22  agents, or employees.  A course provider shall submit the bond in
  25-23  the amount of $25,000.  The bond must be a corporate surety bond
  25-24  issued by a company authorized to do business in this state,
  25-25  payable to the state, and used:
  25-26                    (A)  for payment of a refund due to any student
  25-27  of the course provider's approved course;
   26-1                    (B)  to cover the payment of any unpaid fees,
   26-2  penalties, and fines assessed by the agency; and
   26-3                    (C)  to recover the cost of any uniform
   26-4  certificates of completion demanded by the agency to be returned or
   26-5  any cost associated with the certificates.
   26-6              (4)  Instead of the bond required by Subdivision (1) of
   26-7  this subsection, the school may provide another form of security
   26-8  that is:
   26-9                    (A)  approved by the commissioner; and
  26-10                    (B)  in the amount required for a comparable bond
  26-11  under Subdivision (1) or (3) of this subsection.
  26-12        (h)(1)  As a condition for the granting of a driver education
  26-13  <training> school or course provider license, a school or course
  26-14  provider must maintain a cancellation and settlement policy that
  26-15  provides a full refund of all money paid by a student if:
  26-16                    (A)  the student cancels the enrollment agreement
  26-17  or contract before midnight of the third day, excluding Saturdays,
  26-18  Sundays, and legal holidays, after the date the enrollment contract
  26-19  is signed by the prospective student, unless the student has
  26-20  successfully completed the course or received a failing grade on
  26-21  the course examination <and accepted a certificate of completion
  26-22  during that period>; or
  26-23                    (B)  the enrollment of the student was procured
  26-24  as a result of any misrepresentation in advertising, promotional
  26-25  materials of the school or course provider, or representation made
  26-26  by an owner or employee of the school or course provider.
  26-27              (2)  As <Unless only driving safety courses are
   27-1  proposed to be provided, as> a condition for granting a driver
   27-2  education <training> school license, a school shall maintain a
   27-3  policy for the refund of the unused portion of driver education
   27-4  tuition, fees, and other charges if a student, after expiration of
   27-5  the cancellation period described by Subdivision (1) of this
   27-6  subsection, fails to enter the course, withdraws, or is
   27-7  discontinued from the course at any time before completion, and the
   27-8  policy must provide that:
   27-9                    (A)  refunds are based on the period of
  27-10  enrollment computed on the basis of course time expressed in clock
  27-11  hours;
  27-12                    (B)  the effective date of the termination for
  27-13  refund purposes is the earliest of the following:
  27-14                          (i)  the last day of attendance, if the
  27-15  student's enrollment is terminated by the school;
  27-16                          (ii)  the date of receipt of written notice
  27-17  from the student; or
  27-18                          (iii)  the 10th school day following the
  27-19  last day of attendance;
  27-20                    (C)  if tuition is collected in advance of
  27-21  entrance and if, after expiration of the cancellation period
  27-22  described by Subdivision (1) of this subsection, a student does not
  27-23  enter the school, terminates enrollment, or withdraws, the school
  27-24  may retain up to $50 as administrative expenses and, from the
  27-25  remainder, shall refund that portion of the classroom tuition and
  27-26  fees and behind-the-wheel tuition and fees for services not
  27-27  previously received by the student;
   28-1                    (D)  refunds of items of extra expense to the
   28-2  student, including instructional supplies, books, laboratory fees,
   28-3  service charges, rentals, deposits, and all other such ancillary
   28-4  miscellaneous charges, will be made within 30 days after the
   28-5  effective date of enrollment termination, if these items are
   28-6  separately stated and shown in the data furnished the student
   28-7  before enrollment and the student returns any school property in
   28-8  the student's possession to the school; and
   28-9                    (E)  refunds will be completed within 30 days
  28-10  after the effective date of enrollment termination.
  28-11              (3)  If the course of instruction is discontinued by
  28-12  the school or course provider, preventing a student from completing
  28-13  the course, all tuition and fees paid are then due and refundable.
  28-14              (4)  If a refund is not made within the period required
  28-15  by this subsection, the school or course provider shall pay
  28-16  interest on the refund for the interval beginning with the first
  28-17  day following the expiration of the refund period and ending with
  28-18  the day immediately preceding the date the refund is made.  The
  28-19  commissioner annually shall establish the rate of interest at a
  28-20  rate sufficient to provide a deterrent to the retention of student
  28-21  funds.  The agency may except a school or course provider from the
  28-22  payment of the interest if the school or course provider makes a
  28-23  good-faith effort to refund tuition but is unable to locate the
  28-24  student to whom the refund is owed.  The school or course provider
  28-25  shall provide on request of the agency documentation of the effort
  28-26  to locate a student.
  28-27        SECTION 16.  The Texas Driver and Traffic Safety Education
   29-1  Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
   29-2  by adding Section 13A to read as follows:
   29-3        Sec. 13A.  COURSE PROVIDER RESPONSIBILITIES.  (a)  An issued
   29-4  uniform certificate of completion shall be mailed to the student
   29-5  not later than the 15th working day after the date of completion of
   29-6  an approved driving safety course only by the course provider or
   29-7  authorized personnel at the course provider's facilities.
   29-8        (b)  Data identified by the agency pertaining to issued
   29-9  uniform certificates of completion shall be submitted
  29-10  electronically by each course provider to the agency in a manner
  29-11  determined by the agency.
  29-12        (c)  The agency shall investigate options to develop and
  29-13  implement procedures to provide information pertaining to driving
  29-14  safety courses by electronic transmission to the state municipal
  29-15  and justice courts.
  29-16        (d)  A course provider shall conduct driving safety
  29-17  instructor development courses for its approved driving safety
  29-18  course.
  29-19        (e)  The board may adopt additional rules to ensure integrity
  29-20  of the course and enhance program quality.
  29-21        (f)  A course provider license entitles a provider to
  29-22  purchase uniform certificates of completion for only one approved
  29-23  driving safety course.
  29-24        SECTION 17.  Section 15, formerly Section 5, Texas Driver and
  29-25  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
  29-26  Civil Statutes), as amended by Chapters 835 and 867, Acts of the
  29-27  72nd Legislature, Regular Session, 1991, is amended to read as
   30-1  follows:
   30-2        Sec. 15.  License required for <driver training> instructor.
   30-3  (a)  A person may not teach or give driving safety <driver>
   30-4  training, either as an individual or in a driving safety <driver
   30-5  training> school, or any phase of driving safety <driver training
   30-6  or> education, unless a driving safety instructor license <as an
   30-7  instructor> has been secured from the agency, except that<:>
   30-8              <(1)  a driver education instructor teaching in a
   30-9  public secondary school supported by taxation from either a local
  30-10  or state source is exempt from this section;>
  30-11              <(2)  a driver education instructor in a college or
  30-12  university regulated by the Texas Higher Education Coordinating
  30-13  Board is exempt; and>
  30-14              <(3)>  an instructor of <in> a driving safety course
  30-15  <program> that does not provide a uniform certificate of completion
  30-16  to its graduates is exempt from this section.  A person may not
  30-17  teach or give driver education, either as an individual or in a
  30-18  driver education school, or any phase of driver education unless a
  30-19  driver education instructor license has been secured from the
  30-20  agency.
  30-21        (b)  A license issued to a driver education or driving safety
  30-22  <training> instructor expires not more than <automatically> 12
  30-23  months after the date of issue, unless sooner suspended or revoked.
  30-24  License renewal applications must include evidence of completion of
  30-25  continuing education and shall be postmarked at least 30 days
  30-26  before the date of expiration or a late renewal fee of $25 will be
  30-27  imposed.  The continuing education must be in courses approved by
   31-1  the commissioner and be for a certain number of hours determined by
   31-2  the commissioner.
   31-3        (c)  A driver education <training> instructor license shall
   31-4  be carried by the instructor at all times while instructing driver
   31-5  education courses.  A driving safety instructor license shall be
   31-6  carried by the instructor at all times while instructing driving
   31-7  safety courses.  Each license shall be signed by the commissioner
   31-8  and issued under the seal of the board <agency>.
   31-9        <No person shall teach or give driver-training for hire or
  31-10  for tuition, either as an individual or in a commercial
  31-11  driver-training school, or any phase of driver-training or
  31-12  education, unless a license as a driver-training instructor or
  31-13  supervisory driver-training instructor has been secured from the
  31-14  Department, provided that instructors in classes conducted by an
  31-15  entity exempt under Section 2 of this Act shall be exempt.>
  31-16        SECTION 18.  The Texas Driver and Traffic Safety Education
  31-17  Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
  31-18  by adding Section 15A to read as follows:
  31-19        Sec. 15A.  DRIVER EDUCATION INSTRUCTOR TRAINING.  (a)  With
  31-20  approval of the board, the commissioner shall establish standards
  31-21  for certification of professional and paraprofessional personnel
  31-22  who conduct driver education programs in driver education schools.
  31-23        (b)  A driver education instructor license may not be issued
  31-24  authorizing a person to teach or give driver education in-car
  31-25  training unless the person has successfully completed six semester
  31-26  hours of driver and traffic safety education or a program of study
  31-27  in driver education approved by the board from an approved driver
   32-1  education school.  A person holding a driver education instructor
   32-2  license authorizing in-car training may be approved to assist
   32-3  classroom instructors in the classroom phase of driver education if
   32-4  the person successfully completes the additional three semester
   32-5  hours of training required for a classroom instructor or a program
   32-6  of study in driver education approved by the board.
   32-7        (c)  A driver education instructor license may not be issued
   32-8  authorizing a person to teach or give classroom driver education
   32-9  training unless the person:
  32-10              (1)  has completed nine semester hours of driver and
  32-11  traffic safety education or a program of study in driver education
  32-12  approved by the board from an approved driver education school; and
  32-13              (2)  holds a teaching certificate and any additional
  32-14  certification required to teach driver education.
  32-15        (d)  A driver education instructor who has completed the
  32-16  educational requirements for a classroom driver education
  32-17  instructor under Subsection (c)(1) of this section may be approved
  32-18  to teach instructor training classes after successfully completing
  32-19  a supervising instructor development program consisting of at least
  32-20  six additional semester hours or a program of study in driver
  32-21  education approved by the board that includes administering driver
  32-22  education programs and supervising and administering traffic safety
  32-23  education.
  32-24        (e)  A driver education school may submit for agency approval
  32-25  a curriculum for an instructor development program for driver
  32-26  education instructors.  The program must be taught by a person who
  32-27  has successfully completed a supervising instructor development
   33-1  program under Subsection (d) of this section and must satisfy the
   33-2  requirements of this section for the particular program or type of
   33-3  training to be provided.
   33-4        SECTION 19.  Section 16, Texas Driver and Traffic Safety
   33-5  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   33-6  is amended to read as follows:
   33-7        Sec. 16.  Denial, suspension, revocation grounds.  (a)  The
   33-8  agency may deny, suspend, or revoke the license of any instructor
   33-9  on any one or more of the following grounds:
  33-10              (1)  when the agency is satisfied that the applicant or
  33-11  licensee fails to meet the requirements to receive or hold a
  33-12  license under this Act;
  33-13              (2)  when the applicant or licensee permits fraud or
  33-14  engages in fraudulent practices with reference to the application
  33-15  to the agency, induces or countenances fraud or fraudulent
  33-16  practices on the part of any applicant for a driver's license or
  33-17  permit, or permits or engages in any other fraudulent practice in
  33-18  any action between the applicant or licensee and the public; or
  33-19              (3)  when the applicant or licensee fails to comply
  33-20  with the rules of the agency regarding the instruction of drivers
  33-21  in this state or fails to comply with any section of this Act.
  33-22        (b)  Not later than the 10th day after the date of a decision
  33-23  under this section the agency shall notify the applicant or license
  33-24  holder by certified mail of the decision.
  33-25        SECTION 20.  Section 17, Texas Driver and Traffic Safety
  33-26  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  33-27  is amended to read as follows:
   34-1        Sec. 17.  HEARING.  (a)  A person aggrieved by the denial,
   34-2  suspension, or revocation of a license may appeal the decision and
   34-3  request a hearing before the commissioner.  The request must be
   34-4  submitted not later than the 15th day after the date of receipt of
   34-5  notice of a decision made under Section 16 of this Act.  On receipt
   34-6  of a request for a hearing, the commissioner shall set a time and
   34-7  place for the hearing and send notice to the person of the time and
   34-8  place.  A hearing shall be held within 30 days after the date of
   34-9  receipt of the request.  At the hearing, an applicant or licensee
  34-10  may appear in person or by counsel and present evidence.  Any
  34-11  interested person may appear and present oral or documentary
  34-12  evidence.  <When there is cause to deny an application or to
  34-13  suspend or revoke any license, the agency, not less than 15 days
  34-14  before the date denial, suspension, or revocation action is taken,
  34-15  shall notify the person in writing, in person, or by certified mail
  34-16  at the last address supplied to the agency by the person, of the
  34-17  impending denial, suspension, or revocation, the reasons therefor,
  34-18  and of the person's right to an administrative hearing for the
  34-19  purpose of determining whether or not the evidence is sufficient to
  34-20  warrant the denial, suspension, or revocation action proposed to be
  34-21  taken by the agency.  If, within 20 days after the date of personal
  34-22  service of notice or the date notice was deposited in the United
  34-23  States mail, the person has not made a written request to the
  34-24  agency for an administrative hearing, the agency is authorized to
  34-25  deny, suspend, or revoke the license without a hearing.  On receipt
  34-26  by the agency of a written request of the person within the 20-day
  34-27  period, an opportunity for an administrative hearing shall be
   35-1  afforded.  In no case shall the hearing be held less than 10 days
   35-2  after the date written notification thereof, including a copy of
   35-3  the charges, shall have been given the person by personal service
   35-4  or by certified mail sent to the last address supplied to the
   35-5  agency by the applicant or licensee.>
   35-6        (b)  Except as provided by Subsection (c), the commissioner
   35-7  <The agency> shall conduct the administrative hearing and is
   35-8  authorized to administer oaths and issue subpoenas for the
   35-9  attendance of witnesses and the production of relevant books,
  35-10  papers, and documents.  On the basis of the evidence submitted at
  35-11  the hearing, the commissioner <agency> shall take whatever action
  35-12  the commissioner <it> deems necessary in denying the application or
  35-13  suspending or revoking the license.  Not later than the 10th day
  35-14  after the date of the hearing the commissioner shall notify the
  35-15  applicant or license holder by certified mail of the commissioner's
  35-16  decision on the appeal.
  35-17        (c)  The agency may contract with another entity for the
  35-18  conducting of a hearing required under this Act.
  35-19        SECTION 21.  Section 18, Texas Driver and Traffic Safety
  35-20  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  35-21  is amended to read as follows:
  35-22        Sec. 18.  JUDICIAL REVIEW <APPEAL>.  (a)  <An applicant
  35-23  aggrieved by the denial of any license by the commissioner has the
  35-24  right to appeal the decision of the commissioner and request a
  35-25  hearing before the commissioner within 15 days after the date of
  35-26  receipt of notice.  On receipt of a request for a hearing, the
  35-27  commissioner shall set a time and place for the hearing and send
   36-1  notice to the school of the time and place.  A hearing shall be
   36-2  held within 30 days after the date of receipt of the request.  At
   36-3  the hearing, an applicant may appear in person or by counsel and
   36-4  present evidence in support of the granting of the license.  Any
   36-5  interested person may appear and present oral or documentary
   36-6  evidence to the commissioner concerning the issuance of a driver
   36-7  training school license to the applicant.  Within 10 days after the
   36-8  date of the hearing, the commissioner shall notify the applicant of
   36-9  the commissioner's affirmance or revocation of the denial of any
  36-10  license.>
  36-11        <(b)>  The commissioner's decision on the appeal may be
  36-12  appealed to a district court in Travis County.
  36-13        (b) <(c)>  Unless stayed by the court on showing of good
  36-14  cause, the commissioner's decision may not be superseded during
  36-15  appeal.
  36-16        (c) <(d)>  On filing of the lawsuit, citation shall be served
  36-17  on the commissioner, who shall cause to be made a complete record
  36-18  of all proceedings had before the commissioner and certify a copy
  36-19  of the proceedings to the court.  Trial before the court shall be
  36-20  on the basis of the record made before the commissioner, and the
  36-21  court shall make its decision based on the record.  The
  36-22  commissioner's decision shall be affirmed by the court if the court
  36-23  finds substantial evidence in the record to justify the decision,
  36-24  unless the court finds the denial of the license to be:
  36-25              (1)  arbitrary and capricious;
  36-26              (2)  in violation of the constitution or laws of the
  36-27  United States or this state; or
   37-1              (3)  in violation of rules adopted by the board under
   37-2  this Act.
   37-3        (d) <(e)>  A decision of the trial court is subject to appeal
   37-4  in the same manner as is any civil lawsuit.
   37-5        (e) <(f)>  An appeal concerning suspension or revocation of
   37-6  any license shall be prosecuted in the same manner and under the
   37-7  same provisions as provided by this Act for appeals from denial of
   37-8  licenses.
   37-9        SECTION 22.  Section 25, Texas Driver and Traffic Safety
  37-10  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  37-11  is amended to read as follows:
  37-12        Sec. 25.  Sanctions.  (a)  If the agency believes that a
  37-13  driver education school or instructor has violated this Act or a
  37-14  rule adopted under this Act, the agency may, without notice:
  37-15              (1)  order a peer review <of the school>; <or>
  37-16              (2)  suspend the enrollment <admission> of students in
  37-17  <to> the school or the offering of instruction by the instructor;
  37-18  or
  37-19              (3)  suspend the right to purchase driver education
  37-20  certificates of completion.
  37-21        (b)  If the agency believes that a course provider, driving
  37-22  safety school, or driving safety instructor has violated this Act
  37-23  or the Uniform Act Regulating Traffic on Highways (Article 6701d,
  37-24  Vernon's Texas Civil Statutes) or a rule adopted under one of those
  37-25  Acts, the agency may, without notice:
  37-26              (1)  order a peer review of the course provider,
  37-27  driving safety school, or driving safety instructor;
   38-1              (2)  suspend the enrollment of students in the school
   38-2  or the offering of instruction by the instructor; or
   38-3              (3)  suspend the right to purchase uniform certificates
   38-4  of completion.
   38-5        (c) <(b)>  A peer review ordered under this section shall be
   38-6  conducted by a peer review team composed of knowledgeable persons
   38-7  selected by the agency.  The team shall provide the agency with an
   38-8  objective assessment of the content of the school's or course
   38-9  provider's curriculum and its application.  The costs of providing
  38-10  a peer review team shall be paid by the school or course provider,
  38-11  as appropriate.
  38-12        SECTION 23.  Section 27, Texas Driver and Traffic Safety
  38-13  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  38-14  is amended to read as follows:
  38-15        Sec. 27.  Penalties.  Any person who violates any provision
  38-16  of this Act commits an offense <shall be guilty of a misdemeanor>
  38-17  and, except as otherwise provided by law, upon conviction thereof
  38-18  shall be punished by a fine of not less than $100 nor more than
  38-19  $20,000 <$1,000>, or by imprisonment in the county jail for a term
  38-20  of not to exceed six months, or both.
  38-21        SECTION 24.  The Texas Driver and Traffic Safety Education
  38-22  Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
  38-23  by adding Section 27A to read as follows:
  38-24        Sec. 27A.  UNAUTHORIZED TRANSFER OF CERTIFICATE.  (a)  A
  38-25  person who knowingly sells, trades, issues, or otherwise transfers,
  38-26  or possesses with intent to sell, trade, issue, or otherwise
  38-27  transfer, a uniform certificate of completion or driver education
   39-1  certificate to an individual, firm, or corporation not authorized
   39-2  to possess it commits an offense.
   39-3        (b)  A person who knowingly possesses a uniform certificate
   39-4  of completion or driver education certificate and who is not
   39-5  authorized to possess the certificate commits an offense.
   39-6        (c)  A person adjudged guilty of an offense under this
   39-7  section shall be punished by imprisonment in the institutional
   39-8  division of the Texas Department of Criminal Justice for a term of
   39-9  not more than five years.
  39-10        (d)  The agency shall contract with the Department of Public
  39-11  Safety to provide undercover and investigative assistance in the
  39-12  enforcement of the prohibition provided by Subsection (a) of this
  39-13  section.
  39-14        SECTION 25.  Subsection (a), Section 7, Chapter 173, Acts of
  39-15  the 47th Legislature, Regular Session, 1941 (Article 6687b,
  39-16  Vernon's Texas Civil Statutes), is amended to read as follows:
  39-17        (a)  The Department may license a person as a Class C driver
  39-18  who is under the age of eighteen (18) years, provided the person:
  39-19              (1)  is sixteen (16) years of age or older;
  39-20              (2)  has submitted to the Department a driver education
  39-21  certificate provided for by Section 9A, Texas Driver and Traffic
  39-22  Safety Education Act (Article 4413(29c), Vernon's Texas Civil
  39-23  Statutes), indicating that the person has completed and passed a
  39-24  driver education <training> course approved by the Department under
  39-25  Section 7A of this Act or by the Central Education Agency;
  39-26              (3)  has obtained a high school diploma or its
  39-27  equivalent or is a student enrolled in a public, home, or private
   40-1  school who attended school for at least 80 days in the fall or
   40-2  spring semester preceding the date of application, or has been
   40-3  enrolled for at least 45 days, and is currently enrolled, in a
   40-4  program to prepare persons to pass the high school equivalency
   40-5  exam; and
   40-6              (4)  has passed the examination required by Section 10
   40-7  of this Act.
   40-8        SECTION 26.  Section 10, Chapter 173, Acts of the 47th
   40-9  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
  40-10  Civil Statutes), is amended by adding Subsections (e) and (f) to
  40-11  read as follows:
  40-12        (e)  A driver education school licensed under the Texas
  40-13  Driver and Traffic Safety Education Act (Article 4413(29c),
  40-14  Vernon's Texas Civil Statutes) may administer the vision, highway
  40-15  sign, and traffic law parts of the examination to a student of the
  40-16  school.  An examination administered under this subsection
  40-17  satisfies the examination requirements of this Section as to the
  40-18  parts of the test administered.
  40-19        (f)  Each applicant shall be given the option of taking the
  40-20  traffic law and highway sign part of the examination in writing in
  40-21  addition to or instead of by a mechanical, electronic, or other
  40-22  testing method.  If the applicant takes that part of the
  40-23  examination in writing in addition to another testing method, the
  40-24  applicant is considered to have passed that part of the examination
  40-25  if the applicant passes either version.  The Department shall
  40-26  inform each person taking the examination of the person's rights
  40-27  under this subsection.
   41-1        SECTION 27.  Subsection (c), Section 12, Chapter 173, Acts of
   41-2  the 47th Legislature, Regular Session, 1941 (Article 6687b,
   41-3  Vernon's Texas Civil Statutes), is amended to read as follows:
   41-4        (c)  The Department or a driver education school licensed
   41-5  under the Texas Driver and Traffic Safety Education Act (Article
   41-6  4413(29c), Vernon's Texas Civil Statutes) may issue an instruction
   41-7  permit without photograph to any person fifteen (15) years of age
   41-8  or older but younger than eighteen (18) years of age who has
   41-9  satisfactorily completed and passed the classroom phase of an
  41-10  approved driver education course, which may be a course approved
  41-11  under Section 7A of this Act, has obtained a high school diploma or
  41-12  its equivalent or is a student enrolled in a public, home, or
  41-13  private school who attended school for at least 80 days in the fall
  41-14  or spring semester preceding the date of application, or has been
  41-15  enrolled for at least 45 days, and is currently enrolled, in a
  41-16  program to prepare persons to pass the high school equivalency
  41-17  exam, and who has successfully passed all parts of the driver
  41-18  examination required in Section 10 of this Act other than the
  41-19  driving test.  The Department may issue an instruction permit
  41-20  without photograph to any person eighteen (18) years of age or
  41-21  older who has successfully passed all parts of the driver
  41-22  examination required in Section 10 of this Act other than the
  41-23  driving test.  A driver education school may issue an instruction
  41-24  permit without photograph to any person eighteen (18) years of age
  41-25  or older who has successfully completed and passed a Central
  41-26  Education Agency approved six-hour adult classroom driver education
  41-27  course and successfully passed all parts of the driver examination
   42-1  required in Section 10 of this Act other than the driving test. The
   42-2  instruction permit shall entitle the applicant while having the
   42-3  permit in his immediate possession to drive a type or general class
   42-4  of motor vehicle upon the public highways when accompanied by a
   42-5  licensed driver, whose license qualifies him to operate that type
   42-6  or general class of vehicle, who is at least eighteen (18) years of
   42-7  age, who has at least one (1) year of driving experience, and who
   42-8  is occupying a seat by the driver.
   42-9        SECTION 28.  Section 143A, Uniform Act Regulating Traffic on
  42-10  Highways (Article 6701d, Vernon's Texas Civil Statutes), is amended
  42-11  by amending Subsections (a) and (d) and by adding Subsections (h),
  42-12  (i), (j), (k), and (l) to read as follows:
  42-13        (a)  When a person is charged with a misdemeanor offense
  42-14  under this Act, other than a violation of Section 39, 40, 51, 104,
  42-15  or 186 or a serious traffic violation as defined in Section 3(26),
  42-16  Texas Commercial Driver's License Act (Article 6687b-2, Revised
  42-17  Statutes), committed while operating a motor vehicle, the defendant
  42-18  shall be advised by the court of his right to successfully complete
  42-19  a driving safety course and the court:
  42-20              (1)  in its discretion may defer proceedings and allow
  42-21  the person 90 days to take a driving safety course approved by the
  42-22  Central Education Agency and 30 additional days to present a
  42-23  uniform certificate of course completion as evidence that,
  42-24  subsequent to the alleged act, the person has successfully
  42-25  completed a driving safety course approved under the Texas Driver
  42-26  and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
  42-27  Civil Statutes); or
   43-1              (2)  shall defer proceedings and allow the person 90
   43-2  days to take a driving safety course approved by the Central
   43-3  Education Agency and 30 additional days to present a uniform
   43-4  certificate of course completion as written evidence that,
   43-5  subsequent to the alleged act, the person has successfully
   43-6  completed a driving safety course approved under the Texas Driver
   43-7  and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
   43-8  Civil Statutes), if:
   43-9                    (A)  the person enters a plea in person or in
  43-10  writing of No Contest or Guilty and presents to the court an oral
  43-11  request or a written request, in person or by mail postmarked on or
  43-12  before the answer date on the citation, to take a course;
  43-13                    (B)  the court enters judgment on the person's
  43-14  plea of No Contest or Guilty at the time the plea is made but
  43-15  defers imposition of the judgment for 90 days;
  43-16                    (C)  the person has a valid Texas driver's
  43-17  license or permit;
  43-18                    (D)  the person's driving record as maintained by
  43-19  the Texas Department of Public Safety does not indicate successful
  43-20  completion of a driving safety course under this subdivision within
  43-21  the one year immediately preceding the date of the alleged offense;
  43-22                    (E)  the person files an affidavit with the court
  43-23  stating that the person is not in the process of taking a course
  43-24  under this subdivision and has not completed a course under this
  43-25  subdivision that is not yet reflected on the person's driving
  43-26  record;
  43-27                    (F)  the offense charged is for an offense
   44-1  covered by this section other than speeding 25 miles per hour or
   44-2  more over the posted speed limit at the place where the alleged
   44-3  offense occurred; and
   44-4                    (G)  the person provides proof of financial
   44-5  responsibility as required by Section 1A, Texas Motor Vehicle
   44-6  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
   44-7  Statutes).
   44-8        (d)  The State Board of Education shall enter into a
   44-9  memorandum of understanding with the State Board of Insurance for
  44-10  the interagency development of a curriculum for driving safety
  44-11  courses.  The Central Education Agency shall adopt and administer
  44-12  comprehensive rules governing driving safety courses <adopted by
  44-13  the State Board of Education> and <the board shall> place on file
  44-14  such rules with the secretary of state.
  44-15        (h)  An issued uniform certificate of completion shall be
  44-16  mailed to the student not later than the 15th working day after the
  44-17  date of completion of an approved driving safety course only by the
  44-18  course provider or authorized personnel at the course provider's
  44-19  facilities.
  44-20        (i)  Data identified by the agency pertaining to issued
  44-21  uniform certificates of completion must be submitted electronically
  44-22  by each course provider to the agency in a manner determined by the
  44-23  agency.
  44-24        (j)  Duplicate uniform certificates of completion shall be
  44-25  issued by the agency.  An appropriate fee for issuing duplicate
  44-26  certificates shall be determined by board rule.
  44-27        (k)  The agency shall investigate options to develop and
   45-1  implement procedures to provide information pertaining to driving
   45-2  safety courses by electronic transmission to the state municipal
   45-3  and justice courts.
   45-4        (l)  A driving safety course may not be provided to a student
   45-5  for a cost less than $25.
   45-6        SECTION 29.  Subsections (f) and (g), Section 143A, as added
   45-7  by Chapters 156 and 813, Acts of the 71st Legislature, Regular
   45-8  Session, 1989, Uniform Act Regulating Traffic on Highways (Article
   45-9  6701d, Vernon's Texas Civil Statutes), are amended to read as
  45-10  follows:
  45-11        (f)  The agency by rule shall provide for the design and
  45-12  distribution of the uniform certificate of course completion in a
  45-13  manner that to the greatest extent possible prevents the
  45-14  unauthorized production or misuse of the certificate <shall be
  45-15  printed on copy-resistant paper in not fewer than two self-copying
  45-16  parts to provide a control copy of the certificate that shall be
  45-17  retained by the course provider under rules adopted by the State
  45-18  Board of Education>.  Each certificate <may not be more than 8 1/2
  45-19  inches by 3 1/2 inches in size and> shall include an identifying
  45-20  number by which the Central Education Agency, the court, or the
  45-21  department may verify its authenticity with the course provider.
  45-22  The certificate shall be in a form promulgated by the Central
  45-23  Education Agency.
  45-24        (g)  The Central Education Agency shall print and supply the
  45-25  serially numbered uniform certificates to licensed course providers
  45-26  <owners or primary consignees> of courses approved under the Texas
  45-27  Driver and Traffic Safety Education Act (Article 4413(29c),
   46-1  Vernon's Texas Civil Statutes).  The Central Education Agency may
   46-2  charge a fee not to exceed $4 <of $1> for each certificate.  A
   46-3  course provider shall <An owner or consignee may not> charge an
   46-4  operator a fee equal to <in excess of> the fee paid to the agency
   46-5  for a certificate.  The agency shall deposit the fees with the
   46-6  state treasurer to be used only for the expense of supplying the
   46-7  certificates, payments of monetary awards for information
   46-8  concerning abuse of the certificates that leads to the conviction
   46-9  or removal of an approval, license, or authorization, and
  46-10  administering the Texas Driver and Traffic Safety Education Act
  46-11  (Article 4413(29c), Vernon's Texas Civil Statutes).  The course
  46-12  provider shall charge and retain a user fee of not less than $3 a
  46-13  student for the use of course materials, oversight, and
  46-14  administration of the course.
  46-15        SECTION 30.  Chapter 173, Acts of the 47th Legislature,
  46-16  Regular Session, 1941 (Article 6687b, Vernon's Texas Civil
  46-17  Statutes), is amended by adding Section 7A to read as follows:
  46-18        Sec. 7A.  DEPARTMENT-APPROVED COURSES.  (a)  The Department
  46-19  by rule shall provide for approval of a driver training course
  46-20  given by the parent or legal guardian of a person who is required
  46-21  to complete successfully a driver training course to obtain a Class
  46-22  C license.  The rules must provide that:
  46-23              (1)  the parent or guardian be a licensed driver;
  46-24              (2)  the student driver spend a minimum number of hours
  46-25  in:
  46-26                    (A)  classroom instruction; and
  46-27                    (B)  behind-the-wheel instruction;
   47-1              (3)  the parent or guardian not be convicted of:
   47-2                    (A)  criminally negligent homicide; or
   47-3                    (B)  driving while intoxicated; and
   47-4              (4)  the parent or guardian not be disabled because of
   47-5  mental illness.
   47-6        (b)  The Department may not approve a course unless it
   47-7  determines that the course materials are at least equal to those
   47-8  required in a course approved by the Central Education Agency,
   47-9  except that the Department may not require that:
  47-10              (1)  the classroom instruction be provided in a room
  47-11  having particular characteristics or equipment; or
  47-12              (2)  the vehicle used for the behind-the-wheel
  47-13  instruction have equipment other than the equipment otherwise
  47-14  required by law for operation of the vehicle on a highway while the
  47-15  vehicle is not being used for driver training.
  47-16        (c)  The rules must provide a method by which:
  47-17              (1)  approval of a course is obtained; and
  47-18              (2)  an applicant submits proof of completion of the
  47-19  course.
  47-20        (d)  Completion of a driver training course approved under
  47-21  this section has the same effect under this Act as completion of a
  47-22  driver training course approved by the Central Education Agency.
  47-23        SECTION 31.  Subdivision (2), Subsection (d), Section 12,
  47-24  Chapter 173, Acts of the 47th Legislature, Regular Session, 1941
  47-25  (Article 6687b, Vernon's Texas Civil Statutes), is amended to read
  47-26  as follows:
  47-27              (2)  An applicant for a license under this subsection
   48-1  must:
   48-2                    (A)  be at least fifteen (15) years of age;
   48-3                    (B)  satisfactorily complete and pass a driver
   48-4  training course approved by the Department, which may be a course
   48-5  approved under Section 7A of this Act; and
   48-6                    (C)  pass the examination required by Section 10
   48-7  or 10A of this Act.
   48-8        SECTION 32.  (a)  This Act takes effect September 1, 1995.  A
   48-9  change in law made by this Act applies only to an offense committed
  48-10  on or after that date.  For purposes of this section, an offense
  48-11  was committed before September 1, 1995, if any element of the
  48-12  offense occurred before that date.  An offense committed before
  48-13  September 1, 1995, is covered by the law in effect when the offense
  48-14  was committed, and the former law is continued in effect for that
  48-15  purpose.
  48-16        (b)  Notwithstanding Paragraph (G), Subdivision (1),
  48-17  Subsection (b), Section 13, Texas Driver and Traffic Safety
  48-18  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  48-19  as amended by this Act, a driving safety course approved before the
  48-20  effective date of this Act by the Central Education Agency is not
  48-21  required to be reapproved after the effective date of this Act, and
  48-22  no fee is owed in relation to approval of the course unless the fee
  48-23  became due before the effective date of this Act.
  48-24        SECTION 33.  The importance of this legislation and the
  48-25  crowded condition of the calendars in both houses create an
  48-26  emergency and an imperative public necessity that the
  48-27  constitutional rule requiring bills to be read on three several
   49-1  days in each house be suspended, and this rule is hereby suspended.