1-1  By:  Harris                                            S.B. No. 964
    1-2        (In the Senate - Filed March 7, 1995; March 8, 1995, read
    1-3  first time and referred to Committee on Economic Development;
    1-4  April 6, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 7, Nays 0; April 6, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 964                   By:  Harris
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the regulation of driver training; providing a penalty.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Section 21.102, Education Code, is amended to
   1-13  read as follows:
   1-14        Sec. 21.102.  Driver Education.  (a)  The Texas Higher
   1-15  Education Coordinating Board <Central Education Agency> shall
   1-16  develop a program of organized instruction in driver education and
   1-17  traffic safety for public school students.  A student who will be
   1-18  15 years of age or older before a driver education and traffic
   1-19  safety course ends may enroll in the course.
   1-20        (b)  With the approval of the board <State Board of
   1-21  Education>, the commissioner of higher education shall establish
   1-22  standards for the certification of professional and
   1-23  paraprofessional personnel who conduct the programs in the public
   1-24  schools.
   1-25        SECTION 2.  Subchapter F, Chapter 51, Education Code, is
   1-26  amended by adding Section 51.307 to read as follows:
   1-27        Sec. 51.307.  DRIVER EDUCATION.  A driver education course
   1-28  for the purpose of preparing students to obtain a driver's license
   1-29  may be offered by an institution of higher education, as defined by
   1-30  Section 61.003, with the approval of the Texas Higher Education
   1-31  Coordinating Board.
   1-32        SECTION 3.  Section 2, Texas Driver and Traffic Safety
   1-33  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   1-34  as added by Chapter 835, Acts of the 72nd Legislature, Regular
   1-35  Session, 1991, is amended to read as follows:
   1-36        Sec. 2.  Purpose and objectives.  Traffic crashes in Texas
   1-37  annually take the lives of thousands of people and cause billions
   1-38  of dollars in economic losses.  These alarming facts make safe
   1-39  driving a concern for all citizens of the state.  Deaths, injuries,
   1-40  and property damage must be reduced.  The attitudes and skills of
   1-41  drivers must be improved through effective driver education and
   1-42  training.  It is a matter of vital public importance to identify
   1-43  and implement all reasonable means to reduce the toll in human
   1-44  suffering and property loss that is inflicted by vehicle crashes.
   1-45  The purpose of this Act is to improve driver knowledge and skills
   1-46  through the licensing and regulation by the Texas Higher Education
   1-47  Coordinating Board of driver training schools and driver training
   1-48  instructors in Texas.  It is additionally intended that state
   1-49  agency rules affecting schools that qualify as small businesses be
   1-50  established and administered so as to have the least possible
   1-51  adverse economic effect on those establishments.
   1-52        SECTION 4.  Section 3, Texas Driver and Traffic Safety
   1-53  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   1-54  is amended by amending Subdivisions (1), (2), (3), (5), (7), (8),
   1-55  (11), and (14) and by adding Subdivisions  (16), (17), (18), (19),
   1-56  (20), (21), and (22) to read as follows:
   1-57              (1)  "Agency" means the Texas Higher Education
   1-58  Coordinating Board <Central Education Agency>, acting directly or
   1-59  through its authorized officers and agents.
   1-60              (2)  "Board" means the members of the Texas Higher
   1-61  Education Coordinating Board <State Board of Education>.
   1-62              (3)  "Commissioner" means the commissioner of higher
   1-63  education or a person knowledgeable in the administration of
   1-64  regulating driver training schools and designated by the
   1-65  commissioner to administer this Act.
   1-66              (5)  "Driver training" <training school" or "school">
   1-67  means driver education provided by a  driver education school and
   1-68  driving safety training provided by a driving safety school <any
    2-1  enterprise that maintains a place of business or solicits business
    2-2  in the state, that is operated by an individual, association,
    2-3  partnership, or corporation, for the education and training of
    2-4  persons, at a primary location or extension, in driver education,
    2-5  driving safety, or any instructor development program, and that is
    2-6  not specifically exempted by this Act>.
    2-7              (7)  "School" <"Extension"> means a driver education
    2-8  school or driving safety school <an entity that geographically
    2-9  extends the educational resources of a driver training school by
   2-10  offering a driving safety course in a location other than the main
   2-11  business location of the school.  An extension may use multiple
   2-12  locations to teach a driving safety course if each location is
   2-13  approved by the parent school and the agency.  A driver education
   2-14  course may not be conducted at an extension.  An extension of an
   2-15  extension is not permitted>.
   2-16              (8)  "Operator" means a person approved by a driving
   2-17  safety course owner or consignee to conduct an approved
   2-18  <agency-approved> driving safety course.
   2-19              (11)  "School employee" means any person, other than an
   2-20  owner, who directly or indirectly receives compensation from the
   2-21  school for instructional or other services rendered.
   2-22              (14)  "Uniform certificate of completion" means a
   2-23  document that is printed, administered, and supplied by the agency
   2-24  to owners or primary consignees for issuance to students who
   2-25  successfully complete an approved <agency-approved> driving safety
   2-26  course and that meets the requirements of Section 143A, Uniform Act
   2-27  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
   2-28  Statutes).
   2-29              (16)  "Approved driving safety course" means a driving
   2-30  safety course approved by the board.
   2-31              (17)  "Course provider" means an enterprise that
   2-32  maintains a place of business or solicits business in this state,
   2-33  that is operated by an individual, association, partnership, or
   2-34  corporation, and that is a driving safety course owner or primary
   2-35  consignee.
   2-36              (18)  "Driver education school" means an enterprise
   2-37  that maintains a place of business or solicits business in this
   2-38  state, that is operated by an individual, association, partnership,
   2-39  or corporation for the education and training of persons at a
   2-40  primary or branch location in driver education or driver education
   2-41  instructor development, and that is not specifically exempted by
   2-42  this Act.
   2-43              (19)  "Driver education school owner" means a person
   2-44  who has been approved by the commissioner to own and operate a
   2-45  driver education school.
   2-46              (20)  "Driving safety course owner" means an enterprise
   2-47  that is operated by an individual, association, partnership, or
   2-48  corporation that has received an approval for a driving safety
   2-49  course from the board.
   2-50              (21)  "Driving safety school" means an enterprise that
   2-51  maintains a place of business or solicits business in this state,
   2-52  that is operated by an individual, association, partnership, or
   2-53  corporation for the education and training of persons in driving
   2-54  safety, and that is not specifically exempted by this Act.  A
   2-55  driving safety school may use multiple classroom locations to teach
   2-56  a driving safety course if each location is approved by the parent
   2-57  school and the agency and bears the same name and has the same
   2-58  ownership as the parent school.
   2-59              (22)  "Primary consignee" means any enterprise that is
   2-60  operated by an individual, association, partnership, or corporation
   2-61  that has been designated by a driving safety course owner to
   2-62  conduct business and represent the course owner in this state.
   2-63        SECTION 5.  Subsection (b), Section 4, Texas Driver and
   2-64  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
   2-65  Civil Statutes), is amended to read as follows:
   2-66        (b)  The agency <board> shall enter into a memorandum of
   2-67  understanding with the Texas Rehabilitation Commission and the
   2-68  Department of Public Safety for the interagency development of
   2-69  curricula and licensing criteria for hospital and rehabilitation
   2-70  facilities that teach driver education.  The agency shall
    3-1  administer comprehensive rules governing driver education courses
    3-2  adopted by mutual agreement between the board, the Texas
    3-3  Rehabilitation Commission, and the Department of Public Safety.
    3-4  The agency <board> shall file the rules with the secretary of
    3-5  state.
    3-6        SECTION 6.  Section 6, Texas Driver and Traffic Safety
    3-7  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
    3-8  is amended to read as follows:
    3-9        Sec. 6.  DUTIES OF COMMISSIONER.  (a)  The commissioner shall
   3-10  carry out the policies of this Act, enforce rules adopted by the
   3-11  board, and certify those schools and course providers meeting the
   3-12  requirements for a driver education school license, driving safety
   3-13  <training> school license, or both, or for a  course provider
   3-14  license.
   3-15        (b)  The commissioner by rule shall establish the curriculum
   3-16  and designate the textbooks that must be used in a driver education
   3-17  course.  In addition, the <The> commissioner may adopt and enforce
   3-18  temporary rules under this Act, but the temporary rules are valid
   3-19  only until the next meeting of the board.
   3-20        SECTION 7.  Subsection (c), Section 7, Texas Driver and
   3-21  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
   3-22  Civil Statutes), is amended to read as follows:
   3-23        (c)  A driver education course is exempt from this Act,
   3-24  except Section  9A of this Act, if it is:
   3-25              (1)  a vocational driver training school operated to
   3-26  train or prepare a person for a field of endeavor in a business,
   3-27  trade, technical, or industrial occupation;
   3-28              (2)  a school or training program that offers only
   3-29  instruction of purely avocational or recreational subjects as
   3-30  determined by the commissioner;
   3-31              (3)  a course of instruction or study sponsored by an
   3-32  employer for the training of its own employees, and no tuition is
   3-33  charged to a student;
   3-34              (4)  a course of study or instruction sponsored by a
   3-35  recognized trade, business, or professional organization for the
   3-36  instruction of the members of the organization with a closed
   3-37  membership; or
   3-38              (5)  a school that is otherwise regulated and approved
   3-39  under any other state law<; or>
   3-40              <(6)  a course of study conducted by a college or
   3-41  university to train unlicensed individuals>.
   3-42        SECTION 8.  Section 9, Texas Driver and Traffic Safety
   3-43  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   3-44  is amended to read as follows:
   3-45        Sec. 9.  Prohibitions.  A person may not:
   3-46              (1)  operate a school that provides a driver education
   3-47  course without a driver education <training> school license issued
   3-48  by the commissioner;
   3-49              (2)  operate a school that provides driving safety
   3-50  courses without a driving safety school license issued by the
   3-51  commissioner;
   3-52              (3)  operate as a course provider without a course
   3-53  provider license issued by the commissioner;
   3-54              (4)  utilize advertising designed to mislead or deceive
   3-55  a prospective student;
   3-56              (5) <(3)>  fail to notify the commissioner of the
   3-57  discontinuance of the operation of any school within three working
   3-58  days after cessation of classes and make available accurate records
   3-59  as required by this Act;
   3-60              (6)  issue, <(4)>  sell, trade, or transfer a uniform
   3-61  certificate of completion or driver education certificate to any
   3-62  person or<,> school<, or extension> not authorized to possess it;
   3-63              (7)  issue, <(5)>  sell, trade, or transfer:
   3-64                    (A)  a uniform certificate of completion to a
   3-65  person <student> who has not successfully completed an approved
   3-66  <agency-approved>, six-hour driving safety course; or
   3-67                    (B)  a driver education certificate to a person
   3-68  who has not successfully completed a board-approved driver
   3-69  education course;
   3-70              (8) <(6)>  negotiate any promissory instrument received
    4-1  as payment of tuition or other charge before completion of 75
    4-2  percent of the course, except that before that time, the instrument
    4-3  may be assigned to a purchaser who will be subject to all the
    4-4  defenses available against the school named as payee;
    4-5              (9) <(7)>  conduct any part of an approved
    4-6  <agency-approved> driver education or driving safety course without
    4-7  an instructor who is physically present in appropriate proximity to
    4-8  the student for the type of instruction being given; or
    4-9              (10) <(8)>  violate any provision of this Act.
   4-10        SECTION 9.  The Texas Driver and Traffic Safety Education Act
   4-11  (Article 4413(29c), Vernon's Texas Civil Statutes) is amended by
   4-12  adding Section 9A to read as follows:
   4-13        Sec. 9A.  DRIVER EDUCATION CERTIFICATES.  The agency shall
   4-14  print and supply to licensed and exempt driver education schools
   4-15  serially numbered driver education certificates to be used for
   4-16  certifying completion of an approved driver education course for
   4-17  the purposes of Section 7(a), Chapter 173, Acts of the 47th
   4-18  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
   4-19  Civil Statutes).  The agency by rule shall provide for the design
   4-20  and distribution of the certificates in a manner that to the
   4-21  greatest extent possible prevents the unauthorized reproduction or
   4-22  misuse of the certificates.  The agency may charge a fee of not
   4-23  more than $4 for each certificate.
   4-24        SECTION 10.  Section 10, formerly Section 2, Texas Driver and
   4-25  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
   4-26  Civil Statutes), as amended by Chapters 835 and 867, Acts of the
   4-27  72nd Legislature, Regular Session, 1991, is amended to read as
   4-28  follows:
   4-29        Sec. 10.  LICENSE REQUIRED FOR DRIVER TRAINING SCHOOL.  A
   4-30  person may not operate a driver training school unless a driver
   4-31  training school license for the school has been secured.
   4-32        <No person, firm, association, partnership, or corporation
   4-33  shall operate a commercial driver-training school unless a
   4-34  certificate of approval for the commercial driver-training school
   4-35  has been secured under the Texas Proprietary School Act (Chapter
   4-36  32, Education Code). This section does not apply to training or
   4-37  classes conducted by:>
   4-38              <(1)  colleges, universities, high schools, and junior
   4-39  high schools for students as a part of the normal program for such
   4-40  institutions; or>
   4-41              <(2)  an organization with 50,000 or more members that
   4-42  qualifies for a tax exemption under Section 501(a), Internal
   4-43  Revenue Code of 1986 (26 U.S.C.  Section 501), based on being
   4-44  listed under Section 501(c)(4), Internal Revenue Code of 1986 (26
   4-45  U.S.C. Section 501), and conducts a driving safety course for its
   4-46  members and other individuals who are at least 50 years of age that
   4-47  is not utilized for the dismissal of certain misdemeanor charges as
   4-48  provided by Section 143A, Uniform Act Regulating Traffic on
   4-49  Highways (Article 6701d, Vernon's Texas Civil Statutes).>
   4-50        SECTION 11.  Section 10A, Texas Driver and Traffic Safety
   4-51  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   4-52  is amended to read as follows:
   4-53        Sec. 10A.  BRANCH LOCATIONS.  A driver education <training>
   4-54  school that teaches a driver education course at one or more branch
   4-55  locations other than the main business location of the school must
   4-56  obtain a driver education <training> school license for the main
   4-57  business location of the school and a driver education <training>
   4-58  school license for each branch location.  A <An extension or a>
   4-59  branch location of a branch location is not permitted.
   4-60        SECTION 12.  The Texas Driver and Traffic Safety Education
   4-61  Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
   4-62  by adding Section 10B to read as follows:
   4-63        Sec. 10B.  COURSE AT PUBLIC OR PRIVATE SCHOOL.  A licensed
   4-64  driver training school may conduct a driver training course at a
   4-65  public or private school for students of the public or private
   4-66  school as provided by an agreement with the public or private
   4-67  school.  The course is subject to all requirements of law
   4-68  applicable to a course conducted at the main business location of
   4-69  the driver training school.
   4-70        SECTION 13.  Section 11, Texas Driver and Traffic Safety
    5-1  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
    5-2  is amended to read as follows:
    5-3        Sec. 11.  LOCATIONS AUTHORIZED FOR INSTRUCTION.  Driving
    5-4  safety courses complying with Section 143A, Uniform Act Regulating
    5-5  Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes),
    5-6  may be taught at a driving safety <an extension or in a driver
    5-7  training> school if the entity is approved by the agency.   If the
    5-8  commissioner determines that an approved driving safety course can
    5-9  be taught by an alternative delivery method that does not require
   5-10  the students to be present in a classroom and that includes testing
   5-11  and security measures that are at least as secure as the measures
   5-12  available in a usual classroom, the commissioner may approve the
   5-13  alternative method.  On approval, the alternative delivery method
   5-14  is considered to satisfy the requirements of this Act for a driving
   5-15  safety course, and the school may use the alternative delivery
   5-16  method.  A location at which a person taking the course by the
   5-17  alternative method receives supplies or equipment for the course is
   5-18  considered a classroom of the school providing the course.
   5-19  <Instructor preparation courses may be conducted at a course
   5-20  owner's facilities.  All other driver training courses must be
   5-21  conducted in agency approved schools.>
   5-22        SECTION 14.  The section heading and Subsections (a) and (b),
   5-23  Section 12,  Texas Driver and Traffic Safety Education Act (Article
   5-24  4413(29c), Vernon's Texas Civil Statutes), are amended to read as
   5-25  follows:
   5-26        Sec. 12.  APPLICATION FOR <DRIVER TRAINING> SCHOOL LICENSE.
   5-27  (a)  To operate or do business in this state, a school must make
   5-28  written application to the commissioner for a driver education or
   5-29  driving safety <training> school license.  The application must be
   5-30  verified, be in the form prescribed by the board, and include all
   5-31  information required.  A driving safety school <that offers driving
   5-32  safety courses> shall obtain approval from the agency for any
   5-33  multiple classroom locations <extension>.
   5-34        (b)  A school may not maintain, advertise, solicit for, or
   5-35  conduct any course of instruction in this state before the later
   5-36  of:
   5-37              (1)  the 30th day after the date the school applies
   5-38  <submits all required documentation, information, and fees and a
   5-39  surety bond> for a driver training school license; or
   5-40              (2)  the date the school receives a driver training
   5-41  school license from the commissioner.
   5-42        SECTION 15.  Section 13, Texas Driver and Traffic Safety
   5-43  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   5-44  is amended by amending Subsections (a), (b), (d), (e), (f), (g),
   5-45  and (h) and by adding Subsections (a-1) and (a-2) to read as
   5-46  follows:
   5-47        (a)  The commissioner shall approve the application of a
   5-48  driver education school when the school is found, on investigation
   5-49  at the premises of the school, to meet the following criteria:
   5-50              (1)  the courses, curriculum, and instruction are of
   5-51  such quality, content, and length as may reasonably and adequately
   5-52  achieve the stated objective for which the courses, curriculum, and
   5-53  instruction are offered;
   5-54              (2)  there are in the school, and in the provision for
   5-55  behind-the-wheel instruction, adequate space, equipment,
   5-56  instructional material, and instructors to provide training of good
   5-57  quality;
   5-58              (3)  educational and experience qualifications of
   5-59  directors, instructors, and administrators are adequate;
   5-60              (4)  a copy of the schedule of tuition, fees, refund
   5-61  policy, and other charges, regulations pertaining to absence,
   5-62  grading policy, and rules of operation and conduct, and the name,
   5-63  mailing address, and telephone number of the agency for the purpose
   5-64  of directing complaints to the agency is furnished to each student
   5-65  before enrollment;
   5-66              (5)  on completion of training, each student is given a
   5-67  certificate by the school indicating the course name and
   5-68  satisfactory completion;
   5-69              (6)  adequate records as prescribed by the commissioner
   5-70  are kept to show attendance and progress or grades, and
    6-1  satisfactory standards relating to attendance, progress, and
    6-2  conduct are enforced;
    6-3              (7)  the school complies with all county, municipal,
    6-4  state, and federal regulations, including fire, building, and
    6-5  sanitation codes and assumed name registration;
    6-6              (8)  the school is financially sound and capable of
    6-7  fulfilling its commitments for training;
    6-8              (9)  the school's administrators, directors, owners,
    6-9  and instructors are of good reputation and character;
   6-10              (10)  the school has, maintains, and publishes as part
   6-11  of its student enrollment contract the proper policy for the refund
   6-12  of the unused portion of tuition, fees, and other charges if a
   6-13  student enrolled by the school fails to take the course or
   6-14  withdraws or is discontinued from the school at any time before
   6-15  completion;
   6-16              (11)  the school does not use erroneous or misleading
   6-17  advertising, either by actual statement, omission, or intimation,
   6-18  as determined by the board;
   6-19              (12)  the school does not use a name like or similar to
   6-20  the name of another existing school or tax-supported educational
   6-21  establishment in this state, unless specifically approved in
   6-22  writing by the commissioner;
   6-23              (13)  the school submits to the agency for approval the
   6-24  applicable course hour lengths and curriculum content for each
   6-25  course offered by the school;
   6-26              (14)  the school does not owe a civil penalty under
   6-27  this Act; and
   6-28              (15)  additional criteria as may be required by the
   6-29  agency <board>.
   6-30        (a-1)  The commissioner shall approve the application of a
   6-31  driving safety school if on investigation the agency finds that:
   6-32              (1)  the school presents the driving safety course,
   6-33  curriculum, and instruction in a quality, content, and length that
   6-34  reasonably and adequately achieve the stated objective for which
   6-35  the course, curriculum, and instruction are  developed by the
   6-36  course provider;
   6-37              (2)  the school has adequate space, equipment,
   6-38  instructional material, and instructors to provide training of good
   6-39  quality;
   6-40              (3)  the school's instructors and administrators have
   6-41  adequate educational and experience qualifications;
   6-42              (4)  the school keeps and maintains adequate records as
   6-43  prescribed by the commissioner to show attendance and progress of
   6-44  grades and that satisfactory standards relating to attendance,
   6-45  progress, and conduct are enforced;
   6-46              (5)  the school complies with all county, municipal,
   6-47  state, and federal law, including fire, building, and sanitation
   6-48  codes and assumed name registration;
   6-49              (6)  the school's administrators, owners, and
   6-50  instructors are of good reputation and character;
   6-51              (7)  the school does not use erroneous or misleading
   6-52  advertising, either by actual statement, omission, or intimation,
   6-53  as determined by the board;
   6-54              (8)  the school does not use a name like or similar to
   6-55  the name of another existing school or tax-supported educational
   6-56  establishment in this state unless specifically approved in writing
   6-57  by the commissioner;
   6-58              (9)  the school has, maintains, and uses the approved
   6-59  contract and policies developed by the course provider;
   6-60              (10)  the school does not owe a civil penalty under
   6-61  this Act;
   6-62              (11)  the school will not provide a driving safety
   6-63  course to any person for a cost less than $25; and
   6-64              (12)  the school meets additional criteria required by
   6-65  the board.
   6-66        (a-2)  The commissioner shall approve the application of  a
   6-67  person to be a course provider if on investigation the agency finds
   6-68  that:
   6-69              (1)  the course provider has an approved course;
   6-70              (2)  the course provider can show evidence that there
    7-1  is at least one licensed driving safety school that is willing to
    7-2  offer the course;
    7-3              (3)  the course provider has adequate educational and
    7-4  experience qualifications;
    7-5              (4)  the course provider will develop and provide to
    7-6  driving safety schools that offer the approved course a refund
    7-7  policy, regulations pertaining to absence, grading policy, rules of
    7-8  operation, and conduct, and the name, mailing address, and
    7-9  telephone number of the agency for the purpose of directing
   7-10  complaints to the agency and that copies of these will be furnished
   7-11  to each student by the schools before enrollment;
   7-12              (5)  not later than the 15th working day after the date
   7-13  of completion of the course by a person, the course provider mails
   7-14  a uniform certificate of completion to the person indicating the
   7-15  course name and successful completion;
   7-16              (6)  the course provider keeps and maintains adequate
   7-17  records as prescribed by the commissioner to show attendance and
   7-18  progress or grades and that satisfactory standards relating to
   7-19  attendance, progress, and conduct are enforced;
   7-20              (7)  the course provider complies with all county,
   7-21  municipal, state, and federal law, including assumed name
   7-22  registration and other applicable requirements;
   7-23              (8)  the course provider is financially sound and
   7-24  capable of fulfilling its commitments for training;
   7-25              (9)  the course provider is of good reputation and
   7-26  character;
   7-27              (10)  the course provider has, maintains, and publishes
   7-28  as a part of its student enrollment contract the proper policy for
   7-29  the refund of the unused portion of tuition, fees, and other
   7-30  charges if a person enrolled by the school fails to take the course
   7-31  or withdraws or is discontinued from the school at any time before
   7-32  completion;
   7-33              (11)  the course provider does not use erroneous or
   7-34  misleading advertising, either by actual statement, omission, or
   7-35  intimation, as determined by the board;
   7-36              (12)  the course provider does not use a name like or
   7-37  similar to the name of another existing school or tax-supported
   7-38  educational establishment in this state unless specifically
   7-39  approved in writing by the commissioner;
   7-40              (13)  the course provider does not owe a civil penalty
   7-41  under this Act; and
   7-42              (14)  the course provider meets additional criteria
   7-43  required by the board.
   7-44        (b)(1)  License, application, and registration fees shall be
   7-45  collected by the commissioner and deposited with the state
   7-46  treasurer.  Fees shall be sufficient to cover administrative costs
   7-47  and may not be subject to refund.  Fees shall be as follows <Each
   7-48  fee shall be set by the commissioner and approved by the board in
   7-49  an amount not to exceed 150 percent of the following>:
   7-50                    (A)(i)  the initial fee for a driver education
   7-51  <training> school license is $1,000 <$1,700> plus $850 for each
   7-52  branch location;
   7-53                          (ii)  the initial fee for a driving safety
   7-54  school license is an appropriate amount established by the board
   7-55  not to exceed $200; and
   7-56                          (iii)  the initial fee for a course
   7-57  provider license is an appropriate amount established by the board
   7-58  not to exceed $2,000, except that this fee may be waived by the
   7-59  agency if revenue received by the agency from the course provider
   7-60  is sufficient to fund the cost of licensing the course provider;
   7-61                    (B)  the <(i)>  annual renewal fee for a  course
   7-62  provider, driving safety school, driver education school, and
   7-63  branch school is an appropriate amount established by the board not
   7-64  to exceed $200, but <fees as specified in this subsection> may be
   7-65  waived by the agency if revenue generated by the issuance <sale> of
   7-66  uniform certificates of completion and driver education
   7-67  certificates is sufficient to fund the cost of administering this
   7-68  Act and Section 143A, Uniform Act Regulating Traffic on Highways
   7-69  (Article 6701d, Vernon's Texas Civil Statutes); <and>
   7-70                          <(ii)  the annual renewal fee for a school
    8-1  license shall be determined by the board in an amount sufficient to
    8-2  fund the cost of administering this Act and Section 143A, Uniform
    8-3  Act Regulating Traffic on Highways (Article 6701d, Vernon's Texas
    8-4  Civil Statutes);>
    8-5                    (C)  the fee for a change of address of a driver
    8-6  education school is $180 and of a driving safety school or course
    8-7  provider is $50;
    8-8                    (D)  the fee for a change of name of:
    8-9                          (i)  a driver education school or course
   8-10  provider or an owner of a driver education school or course
   8-11  provider is $100; and
   8-12                          (ii)  a driving safety school or owner of a
   8-13  driving safety school is $50;
   8-14                    (E)  the application fee for each additional
   8-15  driver education or driving safety course at a school is $25;
   8-16                    (F)  the application fee for each director is
   8-17  $30, and for each assistant director, or administrative staff
   8-18  member is $15;
   8-19                    (G)  each application for approval of a driving
   8-20  safety course that has not been evaluated by the board shall be
   8-21  accompanied by a nonrefundable fee of $9,000 <the fee for each
   8-22  extension is $35>;
   8-23                    (H)  each application for an original driver
   8-24  education or driving safety <training> instructor's license shall
   8-25  be accompanied by a processing fee of $50 and an annual license fee
   8-26  of $25, except that the commissioner may not collect the processing
   8-27  fee from an applicant for a driver education instructor license who
   8-28  is currently teaching a driver education course in a public school
   8-29  in this state; and
   8-30                    (I)  the fee for a duplicate license, which may
   8-31  be issued if the original is lost or destroyed and an affidavit of
   8-32  that fact is filed with the agency, shall be set by the board <in
   8-33  an amount sufficient to cover the costs of issuing the duplicate
   8-34  license>.
   8-35              (2)  A driver education instructor who teaches driver
   8-36  education courses in a county having a population of 50,000 or
   8-37  less, according to the most recent federal census, and who has no
   8-38  more than 200 students annually, shall be regulated by the agency
   8-39  as a school.  An instructor described by this subdivision shall
   8-40  submit a school application or renewal form plus all required
   8-41  documentation and information to the agency.  The commissioner may
   8-42  waive initial school fees, annual school renewal fees, or
   8-43  director's or administrative staff member's fees.  An instructor
   8-44  described by this subdivision is not exempt from licensing
   8-45  requirements or fees.
   8-46              (3)  The commissioner shall periodically review and
   8-47  recommend adjustments in the level of fees to the board and
   8-48  legislature.
   8-49              (4)  The fee for an investigation of <at> a school or
   8-50  course provider to resolve a complaint filed against the school or
   8-51  course provider shall be set by the commissioner and approved by
   8-52  the board.  The complaint investigation fee may be charged only if:
   8-53                    (A)  the complaint could not have been resolved
   8-54  solely by telephone or written correspondence;
   8-55                    (B)  a representative of the agency visited the
   8-56  school or course provider as a part of the complaint resolution
   8-57  process; and
   8-58                    (C)  the school or course provider is found to be
   8-59  at fault.
   8-60              (5)  The agency shall print and supply to licensed
   8-61  course providers serially numbered uniform certificates of course
   8-62  completion <to owners or primary consignees of courses approved
   8-63  under this Act>.  The agency may charge a fee of not more than $4
   8-64  <$1> for each certificate.  A course provider <An owner or
   8-65  consignee> may not charge an operator a fee in excess of the fee
   8-66  paid to the agency for a certificate.  The course provider shall
   8-67  charge and retain a user fee of not less than $3 a student for the
   8-68  use of course materials, oversight, and administration of the
   8-69  course.
   8-70              (6)  <The commissioner, with approval of the board, may
    9-1  increase any fee authorized under this subsection at a rate that
    9-2  does not exceed the increase in the Consumer Price Index for All
    9-3  Urban Consumers published by the Department of Labor.  Fees under
    9-4  this subsection do not have to be increased annually.>
    9-5              <(7)>  Fees collected under this subsection shall be
    9-6  deposited in the state treasury in a special account in the General
    9-7  Revenue Fund.  Money in the account may be appropriated only for
    9-8  payment of monetary awards for information concerning abuse of the
    9-9  driver education or uniform certificates of completion that leads
   9-10  to the conviction or removal of an approval, license, or
   9-11  authorization and for the administration of this Act and Section
   9-12  143A, Uniform Act Regulating Traffic on Highways (Article 6701d,
   9-13  Vernon's Texas Civil Statutes).  This dedication is exempt from the
   9-14  application of Sections 403.094 and 403.095, Government Code.
   9-15              (7)  Duplicate uniform certificates of completion shall
   9-16  be issued by the agency.  An appropriate fee for issuing duplicate
   9-17  certificates shall be determined by board rule.
   9-18        (d)(1)  The commissioner, on review of an application for a
   9-19  driver education school, driving safety school, or course provider
   9-20  <training school> license that is submitted in accordance with this
   9-21  Act and that meets the requirements of this Act, shall issue a
   9-22  <driver training school> license to the applicant.  Each <A driver
   9-23  training school> license shall be in a form determined
   9-24  <recommended> by the commissioner and approved by the board and
   9-25  shall show in a clear and conspicuous manner at least the
   9-26  following:
   9-27                    (A)  the date of issuance, effective date, and
   9-28  term of approval;
   9-29                    (B)  the name and address of the school or course
   9-30  provider;
   9-31                    (C)  the authority for approval and conditions of
   9-32  approval;
   9-33                    (D)  the signature of the commissioner; and
   9-34                    (E)  any other fair and reasonable
   9-35  representations that are consistent with this Act and considered
   9-36  necessary by the commissioner.
   9-37              (2)  The term for which a driver education school,
   9-38  driving safety school, or course provider <training school> license
   9-39  is issued may not exceed one year.
   9-40              (3)(A)  A driver education school, driving safety
   9-41  school, or course provider <training school> license issued to an
   9-42  owner of the applicant school or course provider is nontransferable
   9-43  and is the property of the state.  In the event of a change in
   9-44  ownership of the school or course provider, a new owner shall, at
   9-45  least 30 days before the date of the change in ownership, apply for
   9-46  a new driver education school, driving safety school, or course
   9-47  provider <training school> license.  Instead of the fees required
   9-48  by Subsection (b) of this section, the fee for a new driver
   9-49  education school or course provider license required under this
   9-50  subdivision is $500, plus $200 for each branch location, if the
   9-51  purchasing entity is substantially similar to the transferring
   9-52  entity and there is no significant change in the management or
   9-53  control of the driver education school or course provider.
   9-54                    (B)  The commissioner is not required to
   9-55  reinspect a school or a branch location after a change of its
   9-56  ownership.
   9-57              (4)  At least 30 days before the expiration of a driver
   9-58  education school, driving safety school, or course provider
   9-59  <training school> license, the school or course provider shall
   9-60  forward to the commissioner an application for renewal.  The
   9-61  commissioner may reexamine a driver education school's <the school>
   9-62  premises.  The commissioner <and> shall renew or cancel the
   9-63  <school's> driver education school, driving safety school, or
   9-64  course provider <training school> license.  If a school or course
   9-65  provider fails to file a complete application for renewal at least
   9-66  30 days before the expiration date of the driver education school,
   9-67  driving safety school, or course provider <training school>
   9-68  license, the school or course provider shall pay as a condition of
   9-69  renewal and in addition to any annual renewal fee a late renewal
   9-70  fee in an amount established by board rule of at least $100,
   10-1  subject to Subsection (b) of this section.
   10-2              (5)  The commissioner shall visit a school or course
   10-3  provider and reexamine the school or course provider for compliance
   10-4  with the criteria adopted under this Act.
   10-5        (e)(1)  If the commissioner determines the applicant for a
   10-6  driver education school, driving safety school, or course provider
   10-7  <training school> license to be unacceptable, the commissioner
   10-8  shall state the reasons for denial, in writing, to the applicant.
   10-9              (2)  Any applicant whose driver education school,
  10-10  driving safety school, or course provider <training school> license
  10-11  is denied has the right of appeal under Section 17 <18> of this
  10-12  Act.
  10-13        (f)(1)  The commissioner may revoke a driver education
  10-14  school, driving safety school, or course provider <training school>
  10-15  license or may place reasonable conditions on the continued
  10-16  approval represented by the license.  On revocation or imposition
  10-17  of conditions on a driver education school, driving safety school,
  10-18  or course provider <training school> license, the commissioner
  10-19  shall notify the licensee, in writing, of the impending action and
  10-20  state the grounds for the proposed action.  The commissioner may
  10-21  reexamine a school or course provider two or more times during any
  10-22  year in which a notice relating to the school or course provider
  10-23  has been issued or conditions have been imposed on the school under
  10-24  this subsection.
  10-25              (2)  A driver education school, driving safety school,
  10-26  or course provider <training school> license may be revoked or be
  10-27  made conditional if the commissioner has reasonable cause to
  10-28  believe that the school or course provider is guilty of a violation
  10-29  of this Act or any rule adopted under this Act.
  10-30        (g)(1)  Before a driver education <training> school license
  10-31  may be issued under this Act, a bond shall be provided by the
  10-32  school for the period for which the license is to be issued, and
  10-33  the obligation of the bond shall be that neither a provision of
  10-34  this Act nor any rule adopted under this Act shall be violated by
  10-35  the school or any of its officers, agents, or employees.  A driver
  10-36  education <training> school <that teaches driver education> shall
  10-37  submit a bond in the amount of $10,000 for its primary driver
  10-38  education <training> school and $5,000 for each branch location of
  10-39  the school.  <All other schools shall submit a bond in the amount
  10-40  of $5,000.>  A bond must be a corporate surety bond issued by a
  10-41  company authorized to do business in the state, be payable to the
  10-42  state, and be used only for payment of a refund due to a student or
  10-43  potential student.  The bond shall be filed with the commissioner
  10-44  and shall be in such form as shall be approved by the commissioner.
  10-45  Posting of these bond amounts shall satisfy the requirements for
  10-46  financial stability for driver education schools under this Act.
  10-47              (2)  A driving safety school is not required to post a
  10-48  surety bond.
  10-49              (3)  Before a course provider license may be issued
  10-50  under this Act, a bond shall be provided by the course provider for
  10-51  the period for which the license is to be issued, and the
  10-52  obligation of the bond shall be that no provision of this Act or
  10-53  the Uniform Act Regulating Traffic on Highways (Article 6701d,
  10-54  Vernon's Texas Civil Statutes) and no rule adopted under this Act
  10-55  may be violated by the course provider or any of its officers,
  10-56  agents, or employees.  A course provider shall submit the bond in
  10-57  the amount of $25,000.  The bond must be a corporate surety bond
  10-58  issued by a company authorized to do business in this state,
  10-59  payable to the state, and used:
  10-60                    (A)  for payment of a refund due to any student
  10-61  of the course provider's approved course;
  10-62                    (B)  to cover the payment of any unpaid fees,
  10-63  penalties, and fines assessed by the agency; and
  10-64                    (C)  to recover the cost of any uniform
  10-65  certificates of completion demanded by the agency to be returned or
  10-66  any cost associated with the certificates.
  10-67              (4)  Instead of the bond required by Subdivision (1) of
  10-68  this subsection, the school may provide another form of security
  10-69  that is:
  10-70                    (A)  approved by the commissioner; and
   11-1                    (B)  in the amount required for a comparable bond
   11-2  under Subdivision (1) or (3) of this subsection.
   11-3        (h)(1)  As a condition for the granting of a driver education
   11-4  <training> school or course provider license, a school or course
   11-5  provider must maintain a cancellation and settlement policy that
   11-6  provides a full refund of all money paid by a student if:
   11-7                    (A)  the student cancels the enrollment agreement
   11-8  or contract before midnight of the third day, excluding Saturdays,
   11-9  Sundays, and legal holidays, after the date the enrollment contract
  11-10  is signed by the prospective student, unless the student has
  11-11  successfully completed the course or received a failing grade on
  11-12  the course examination <and accepted a certificate of completion
  11-13  during that period>; or
  11-14                    (B)  the enrollment of the student was procured
  11-15  as a result of any misrepresentation in advertising, promotional
  11-16  materials of the school or course provider, or representation made
  11-17  by an owner or employee of the school or course provider.
  11-18              (2)  As <Unless only driving safety courses are
  11-19  proposed to be provided, as> a condition for granting a driver
  11-20  education <training> school license, a school shall maintain a
  11-21  policy for the refund of the unused portion of driver education
  11-22  tuition, fees, and other charges if a student, after expiration of
  11-23  the cancellation period described by Subdivision (1) of this
  11-24  subsection, fails to enter the course, withdraws, or is
  11-25  discontinued from the course at any time before completion, and the
  11-26  policy must provide that:
  11-27                    (A)  refunds are based on the period of
  11-28  enrollment computed on the basis of course time expressed in clock
  11-29  hours;
  11-30                    (B)  the effective date of the termination for
  11-31  refund purposes is the earliest of the following:
  11-32                          (i)  the last day of attendance, if the
  11-33  student's enrollment is terminated by the school;
  11-34                          (ii)  the date of receipt of written notice
  11-35  from the student; or
  11-36                          (iii)  the 10th school day following the
  11-37  last day of attendance;
  11-38                    (C)  if tuition is collected in advance of
  11-39  entrance and if, after expiration of the cancellation period
  11-40  described by Subdivision (1) of this subsection, a student does not
  11-41  enter the school, terminates enrollment, or withdraws, the school
  11-42  may retain up to $50 as administrative expenses and, from the
  11-43  remainder, shall refund that portion of the classroom tuition and
  11-44  fees and behind-the-wheel tuition and fees for services not
  11-45  previously received by the student;
  11-46                    (D)  refunds of items of extra expense to the
  11-47  student, including instructional supplies, books, laboratory fees,
  11-48  service charges, rentals, deposits, and all other such ancillary
  11-49  miscellaneous charges, will be made within 30 days after the
  11-50  effective date of enrollment termination, if these items are
  11-51  separately stated and shown in the data furnished the student
  11-52  before enrollment and the student returns any school property in
  11-53  the student's possession to the school; and
  11-54                    (E)  refunds will be completed within 30 days
  11-55  after the effective date of enrollment termination.
  11-56              (3)  If the course of instruction is discontinued by
  11-57  the school or course provider, preventing a student from completing
  11-58  the course, all tuition and fees paid are then due and refundable.
  11-59              (4)  If a refund is not made within the period required
  11-60  by this subsection, the school or course provider shall pay
  11-61  interest on the refund for the interval beginning with the first
  11-62  day following the expiration of the refund period and ending with
  11-63  the day immediately preceding the date the refund is made.  The
  11-64  commissioner annually shall establish the rate of interest at a
  11-65  rate sufficient to provide a deterrent to the retention of student
  11-66  funds.  The  agency may except a school or course provider from the
  11-67  payment of the interest if the school or course provider makes a
  11-68  good-faith effort to refund tuition but is unable to locate the
  11-69  student to whom the refund is owed.  The school or course provider
  11-70  shall provide on request of the  agency documentation of the effort
   12-1  to locate a student.
   12-2        SECTION 16.  The Texas Driver and Traffic Safety Education
   12-3  Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
   12-4  by adding Sections 13A and 13B to read as follows:
   12-5        Sec. 13A.  INSURANCE.  (a)  A driver education school shall
   12-6  maintain insurance issued by an insurance company authorized to do
   12-7  business in this state in at least the following amounts:
   12-8              (1)  motor vehicle liability insurance in the amount of
   12-9  $300,000 for each occurrence;
  12-10              (2)  personal injury protection in the amount of
  12-11  $10,000 for each person in each occurrence;
  12-12              (3)  uninsured or underinsured motorist insurance in
  12-13  the amount of $100,000 for each occurrence; and
  12-14              (4)  workers' compensation insurance in the amount of
  12-15  $500,000 for each occurrence.
  12-16        (b)  The school shall provide the agency certificates of
  12-17  insurance evidencing the coverage required under Subsection (a) of
  12-18  this section.  The certificates must indicate the existence of
  12-19  coverage and policy limits and shall provide for notification to
  12-20  the agency by the insurance company or its authorized agent before
  12-21  a policy is canceled.  A certificate for motor vehicle or fleet
  12-22  coverage must also indicate automatic coverage for additions or
  12-23  replacements.
  12-24        Sec. 13B.  COURSE PROVIDER RESPONSIBILITIES.  (a)  An issued
  12-25  uniform certificate of completion shall be mailed to the student
  12-26  not later than the 15th working day after the date of completion of
  12-27  an approved driving safety course only by the course provider or
  12-28  authorized personnel at the course provider's facilities.
  12-29        (b)  Data identified by the agency pertaining to issued
  12-30  uniform certificates of completion shall be submitted
  12-31  electronically by each course provider to the agency in a manner
  12-32  determined by the agency.
  12-33        (c)  The agency shall investigate options to develop and
  12-34  implement procedures to provide information pertaining to driving
  12-35  safety courses by electronic transmission to the state municipal
  12-36  and justice courts.
  12-37        (d)  A course provider shall conduct driving safety
  12-38  instructor development courses for its approved driving safety
  12-39  course.
  12-40        (e)  The board may adopt additional rules to ensure integrity
  12-41  of the course and enhance program quality.
  12-42        (f)  A course provider license entitles a provider to
  12-43  purchase uniform certificates of completion for only one approved
  12-44  driving safety course.
  12-45        SECTION 17.  Section 15, formerly Section 5, Texas Driver and
  12-46  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
  12-47  Civil Statutes), as amended by Chapters 835 and 867, Acts of the
  12-48  72nd Legislature, Regular Session, 1991, is amended to read as
  12-49  follows:
  12-50        Sec. 15.  License required for <driver training> instructor.
  12-51  (a)  A person may not teach or give driving safety <driver>
  12-52  training, either as an individual or in a driving safety <driver
  12-53  training> school, or any phase of driving safety <driver training
  12-54  or> education, unless a driving safety instructor license <as an
  12-55  instructor> has been secured from the agency, except that<:>
  12-56              <(1)  a driver education instructor teaching in a
  12-57  public secondary school supported by taxation from either a local
  12-58  or state source is exempt from this section;>
  12-59              <(2)  a driver education instructor in a college or
  12-60  university regulated by the Texas Higher Education Coordinating
  12-61  Board is exempt; and>
  12-62              <(3)>  an instructor of <in> a driving safety course
  12-63  <program> that does not provide a uniform certificate of completion
  12-64  to its graduates is exempt from this section.  A person may not
  12-65  teach or give driver education, either as an individual or in a
  12-66  driver education school, or any phase of driver education unless a
  12-67  driver education instructor license has been secured from the
  12-68  agency.
  12-69        (b)  A license issued to a driver education or driving safety
  12-70  <training> instructor expires not more than <automatically> 12
   13-1  months after the date of issue, unless sooner suspended or revoked.
   13-2  License renewal applications must include evidence of completion of
   13-3  continuing education and shall be postmarked at least 30 days
   13-4  before the date of expiration or a late renewal fee of $25 will be
   13-5  imposed.  The continuing education must be in courses approved by
   13-6  the commissioner and be for a certain number of hours determined by
   13-7  the commissioner.
   13-8        (c)  A driver education <training> instructor license shall
   13-9  be carried by the instructor at all times while instructing driver
  13-10  education courses.  A driving safety instructor license shall be
  13-11  carried by the instructor at all times while instructing driving
  13-12  safety courses.  Each license shall be signed by the commissioner
  13-13  and issued under the seal of the board <agency>.
  13-14        <No person shall teach or give driver-training for hire or
  13-15  for tuition, either as an individual or in a commercial
  13-16  driver-training school, or any phase of driver-training or
  13-17  education, unless a license as a driver-training instructor or
  13-18  supervisory driver-training instructor has been secured from the
  13-19  Department, provided that instructors in classes conducted by an
  13-20  entity exempt under Section 2 of this Act shall be exempt.>
  13-21        SECTION 18.  The Texas Driver and Traffic Safety Education
  13-22  Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
  13-23  by adding Section 15A to read as follows:
  13-24        Sec. 15A.  DRIVER EDUCATION INSTRUCTOR TRAINING.  (a)  With
  13-25  approval of the board, the commissioner shall establish standards
  13-26  for certification of professional and paraprofessional personnel
  13-27  who conduct driver education programs in driver education schools.
  13-28        (b)  A driver education instructor license may not be issued
  13-29  authorizing a person to teach or give driver education in-car
  13-30  training unless the person has successfully completed six semester
  13-31  hours of driver and traffic safety education or a program of study
  13-32  in driver education approved by the board from an approved driver
  13-33  education school.  A person holding a driver education instructor
  13-34  license authorizing in-car training may be approved to assist
  13-35  classroom instructors in the classroom phase of driver education if
  13-36  the person successfully completes the additional three semester
  13-37  hours of training required for a classroom instructor or a program
  13-38  of study in driver education approved by the board.
  13-39        (c)  A driver education instructor license may not be issued
  13-40  authorizing a person to teach or give classroom driver education
  13-41  training unless the person:
  13-42              (1)  has completed nine semester hours of driver and
  13-43  traffic safety education or a program of study in driver education
  13-44  approved by the board from an approved driver education school; and
  13-45              (2)  holds a teaching certificate and any additional
  13-46  certification required to teach driver education.
  13-47        (d)  A driver education instructor who has completed the
  13-48  educational requirements for a classroom driver education
  13-49  instructor under Subsection (c)(1) of this section may be approved
  13-50  to teach instructor training classes after successfully completing
  13-51  a supervising instructor development program consisting of at least
  13-52  six additional semester hours or a program of study in driver
  13-53  education approved by the board that includes administering driver
  13-54  education programs and supervising and administering traffic safety
  13-55  education.
  13-56        (e)  A driver education school may submit for agency approval
  13-57  a curriculum for an instructor development program for driver
  13-58  education instructors.  The program must be taught by a person who
  13-59  has successfully completed a supervising instructor development
  13-60  program under Subsection (d) of this section and must satisfy the
  13-61  requirements of this section for the particular program or type of
  13-62  training to be provided.
  13-63        SECTION 19.  Section 16, Texas Driver and Traffic Safety
  13-64  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  13-65  is amended to read as follows:
  13-66        Sec. 16.  Denial, suspension, revocation grounds.  (a)  The
  13-67  agency may deny, suspend, or revoke the license of any instructor
  13-68  on any one or more of the following grounds:
  13-69              (1)  when the agency is satisfied that the applicant or
  13-70  licensee fails to meet the requirements to receive or hold a
   14-1  license under this Act;
   14-2              (2)  when the applicant or licensee permits fraud or
   14-3  engages in fraudulent practices with reference to the application
   14-4  to the agency, induces or countenances fraud or fraudulent
   14-5  practices on the part of any applicant for a driver's license or
   14-6  permit, or permits or engages in any other fraudulent practice in
   14-7  any action between the applicant or licensee and the public; or
   14-8              (3)  when the applicant or licensee fails to comply
   14-9  with the rules of the agency regarding the instruction of drivers
  14-10  in this state or fails to comply with any section of this Act.
  14-11        (b)  Not later than the 10th day after the date of a decision
  14-12  under this section the agency shall notify the applicant or license
  14-13  holder by certified mail of the decision.
  14-14        SECTION 20.  Section 17, Texas Driver and Traffic Safety
  14-15  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  14-16  is amended to read as follows:
  14-17        Sec. 17.  HEARING.  (a)  A person aggrieved by the denial,
  14-18  suspension, or revocation of a license may appeal the decision and
  14-19  request a hearing before the commissioner.  The request must be
  14-20  submitted not later than the 15th day after the date of receipt of
  14-21  notice of a decision made under Section 16 of this Act.  On receipt
  14-22  of a request for a hearing, the commissioner shall set a time and
  14-23  place for the hearing and send notice to the person of the time and
  14-24  place.  A hearing shall be held within 30 days after the date of
  14-25  receipt of the request.  At the hearing, an applicant or licensee
  14-26  may appear in person or by counsel and present evidence.   Any
  14-27  interested person may appear and present oral or documentary
  14-28  evidence.  <When there is cause to deny an application or to
  14-29  suspend or revoke any license, the agency, not less than 15 days
  14-30  before the date denial, suspension, or revocation action is taken,
  14-31  shall notify the person in writing, in person, or by certified mail
  14-32  at the last address supplied to the agency by the person, of the
  14-33  impending denial, suspension, or revocation, the reasons therefor,
  14-34  and of the person's right to an administrative hearing for the
  14-35  purpose of determining whether or not the evidence is sufficient to
  14-36  warrant the denial, suspension, or revocation action proposed to be
  14-37  taken by the agency.  If, within 20 days after the date of personal
  14-38  service of notice or the date notice was deposited in the United
  14-39  States mail, the person has not made a written request to the
  14-40  agency for an administrative hearing, the agency is authorized to
  14-41  deny, suspend, or revoke the license without a hearing.  On receipt
  14-42  by the agency of a written request of the person within the 20-day
  14-43  period, an opportunity for an administrative hearing shall be
  14-44  afforded.  In no case shall the hearing be held less than 10 days
  14-45  after the date written notification thereof, including a copy of
  14-46  the charges, shall have been given the person by personal service
  14-47  or by certified mail sent to the last address supplied to the
  14-48  agency by the applicant or licensee.>
  14-49        (b)  Except as provided by Subsection (c), the commissioner
  14-50  <The agency> shall conduct the administrative hearing and is
  14-51  authorized to administer oaths and issue subpoenas for the
  14-52  attendance of witnesses and the production of relevant books,
  14-53  papers, and documents.  On the basis of the evidence submitted at
  14-54  the hearing, the commissioner <agency> shall take whatever action
  14-55  the commissioner <it> deems necessary in denying the application or
  14-56  suspending or revoking the license.  Not later than the 10th day
  14-57  after the date of the hearing the commissioner shall notify the
  14-58  applicant or license holder by certified mail of the commissioner's
  14-59  decision on the appeal.
  14-60        (c)  The agency may contract with another entity for the
  14-61  conducting of a hearing required under this Act.
  14-62        SECTION 21.  Section 18, Texas Driver and Traffic Safety
  14-63  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  14-64  is amended to read as follows:
  14-65        Sec. 18.  JUDICIAL REVIEW <APPEAL>.  (a)  <An applicant
  14-66  aggrieved by the denial of any license by the commissioner has the
  14-67  right to appeal the decision of the commissioner and request a
  14-68  hearing before the commissioner within 15 days after the date of
  14-69  receipt of notice.  On receipt of a request for a hearing, the
  14-70  commissioner shall set a time and place for the hearing and send
   15-1  notice to the school of the time and place.  A hearing shall be
   15-2  held within 30 days after the date of receipt of the request.  At
   15-3  the hearing, an applicant may appear in person or by counsel and
   15-4  present evidence in support of the granting of the license.  Any
   15-5  interested person may appear and present oral or documentary
   15-6  evidence to the commissioner concerning the issuance of a driver
   15-7  training school license to the applicant.  Within 10 days after the
   15-8  date of the hearing, the commissioner shall notify the applicant of
   15-9  the commissioner's affirmance or revocation of the denial of any
  15-10  license.>
  15-11        <(b)>  The commissioner's decision on the appeal may be
  15-12  appealed to a district court in Travis County.
  15-13        (b) <(c)>  Unless stayed by the court on showing of good
  15-14  cause, the commissioner's decision may not be superseded during
  15-15  appeal.
  15-16        (c) <(d)>  On filing of the lawsuit, citation shall be served
  15-17  on the commissioner, who shall cause to be made a complete record
  15-18  of all proceedings had before the commissioner and certify a copy
  15-19  of the proceedings to the court.   Trial before the court shall be
  15-20  on the basis of the record made before the commissioner, and the
  15-21  court shall make its decision based on the record.  The
  15-22  commissioner's decision shall be affirmed by the court if the court
  15-23  finds substantial evidence in the record to justify the decision,
  15-24  unless the court finds the denial of the license to be:
  15-25              (1)  arbitrary and capricious;
  15-26              (2)  in violation of the constitution or laws of the
  15-27  United States or this state; or
  15-28              (3)  in violation of rules adopted by the board under
  15-29  this Act.
  15-30        (d) <(e)>  A decision of the trial court is subject to appeal
  15-31  in the same manner as is any civil lawsuit.
  15-32        (e) <(f)>  An appeal concerning suspension or revocation of
  15-33  any license shall be prosecuted in the same manner and under the
  15-34  same provisions as provided by this Act for appeals from denial of
  15-35  licenses.
  15-36        SECTION 22.  Section 25, Texas Driver and Traffic Safety
  15-37  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  15-38  is amended to read as follows:
  15-39        Sec. 25.  Sanctions.  (a)  If the agency believes that a
  15-40  driver education school or instructor has violated this Act or a
  15-41  rule adopted under this Act, the agency may, without notice:
  15-42              (1)  order a peer review <of the school>; <or>
  15-43              (2)  suspend the enrollment <admission> of students in
  15-44  <to> the school or the offering of instruction by the instructor;
  15-45  or
  15-46              (3)  suspend the right to purchase driver education
  15-47  certificates of completion.
  15-48        (b)  If the agency believes that a course provider, driving
  15-49  safety school, or driving safety instructor has violated this Act
  15-50  or the Uniform Act Regulating Traffic on Highways (Article 6701d,
  15-51  Vernon's Texas Civil Statutes) or a rule adopted under one of those
  15-52  Acts, the agency may, without notice:
  15-53              (1)  order a peer review of the course provider,
  15-54  driving safety school, or driving safety instructor;
  15-55              (2)  suspend the enrollment of students in the school
  15-56  or the offering of instruction by the instructor; or
  15-57              (3)  suspend the right to purchase uniform certificates
  15-58  of completion.
  15-59        (c) <(b)>  A peer review ordered under this section shall be
  15-60  conducted by a peer review team composed of knowledgeable persons
  15-61  selected by the agency.  The team shall provide the agency with an
  15-62  objective assessment of the content of the school's or course
  15-63  provider's curriculum and its application.  The costs of providing
  15-64  a peer review team shall be paid by the school or course provider,
  15-65  as appropriate.
  15-66        SECTION 23.  Section 27, Texas Driver and Traffic Safety
  15-67  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  15-68  is amended to read as follows:
  15-69        Sec. 27.  Penalties.  Any person who violates any provision
  15-70  of this Act commits an offense <shall be guilty of a misdemeanor>
   16-1  and, except as otherwise provided by law, upon conviction thereof
   16-2  shall be punished by a fine of not less than $100 nor more than
   16-3  $20,000 <$1,000>, or by imprisonment in the county jail for a term
   16-4  of not to exceed six months, or both.
   16-5        SECTION 24.  The Texas Driver and Traffic Safety Education
   16-6  Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
   16-7  by adding Section 27A to read as follows:
   16-8        Sec. 27A.  UNAUTHORIZED TRANSFER OF CERTIFICATE.  (a)  A
   16-9  person who knowingly sells, trades, issues, or otherwise transfers,
  16-10  or possesses with intent to sell, trade, issue, or otherwise
  16-11  transfer, a uniform certificate of completion or driver education
  16-12  certificate to an individual, firm, or corporation not authorized
  16-13  to possess it commits an offense.
  16-14        (b)  A person who knowingly possesses a uniform certificate
  16-15  of completion or driver education certificate and who is not
  16-16  authorized to possess the certificate commits an offense.
  16-17        (c)  A person adjudged guilty of an offense under this
  16-18  section shall be punished by imprisonment in the institutional
  16-19  division of the Texas Department of Criminal Justice for a term of
  16-20  not more than five years.
  16-21        SECTION 25.  Subsection (a), Section 7, Chapter 173, Acts of
  16-22  the 47th Legislature, Regular Session, 1941 (Article 6687b,
  16-23  Vernon's Texas Civil Statutes), is amended to read as follows:
  16-24        (a)  The Department may license a person as a Class C driver
  16-25  who is under the age of eighteen (18) years, provided the person:
  16-26              (1)  is sixteen (16) years of age or older;
  16-27              (2)  has submitted to the Department a driver education
  16-28  certificate provided for by Section 9A, Texas Driver and Traffic
  16-29  Safety Education Act (Article 4413(29c), Vernon's Texas Civil
  16-30  Statutes), indicating that the person has completed and passed a
  16-31  driver education <training> course approved by the Texas Higher
  16-32  Education Coordinating Board <Central Education Agency>;
  16-33              (3)  has obtained a high school diploma or its
  16-34  equivalent or is a student enrolled in a public or private school
  16-35  who attended school for at least 80 days in the fall or spring
  16-36  semester preceding the date of application, or has been enrolled
  16-37  for at least 45 days, and is currently enrolled, in a program to
  16-38  prepare persons to pass the high school equivalency exam; and
  16-39              (4)  has passed the examination required by Section 10
  16-40  of this Act.
  16-41        SECTION 26.  Section 10, Chapter 173, Acts of the 47th
  16-42  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
  16-43  Civil Statutes), is amended by adding Subsection (e) to read as
  16-44  follows:
  16-45        (e)  A driver education school licensed under the Texas
  16-46  Driver and Traffic Safety Education Act (Article 4413(29c),
  16-47  Vernon's Texas Civil Statutes) may administer the vision, highway
  16-48  sign, and traffic law parts of the examination to a student of the
  16-49  school.  An examination administered under this subsection
  16-50  satisfies the examination requirements of this Section as to the
  16-51  parts of the test administered.
  16-52        SECTION 27.  Subsection (c), Section 12, Chapter 173, Acts of
  16-53  the 47th Legislature, Regular Session, 1941 (Article 6687b,
  16-54  Vernon's Texas Civil Statutes), is amended to read as follows:
  16-55        (c)  The Department or a driver education school licensed
  16-56  under the Texas Driver and Traffic Safety Education Act (Article
  16-57  4413(29c), Vernon's Texas Civil Statutes) may issue an instruction
  16-58  permit without photograph to any person fifteen (15) years of age
  16-59  or older but younger than eighteen (18) years of age who has
  16-60  satisfactorily completed and passed the classroom phase of an
  16-61  approved driver education course, has obtained a high school
  16-62  diploma or its equivalent or is a student enrolled in a public or
  16-63  private school who attended school for at least 80 days in the fall
  16-64  or spring semester preceding the date of application, or has been
  16-65  enrolled for at least 45 days, and is currently enrolled, in a
  16-66  program to prepare persons to pass the high school equivalency
  16-67  exam, and who has successfully passed all parts of the driver
  16-68  examination required in Section 10 of this Act other than the
  16-69  driving test.  The Department or driver education school may issue
  16-70  an instruction permit without photograph to any person eighteen
   17-1  (18) years of age or older who has successfully passed all parts of
   17-2  the driver examination required in Section 10 of this Act other
   17-3  than the driving test.  The instruction permit shall entitle the
   17-4  applicant while having the permit in his immediate possession to
   17-5  drive a type or general class of motor vehicle upon the public
   17-6  highways when accompanied by a licensed driver, whose license
   17-7  qualifies him to operate that type or general class of vehicle, who
   17-8  is at least eighteen (18) years of age, who has at least one (1)
   17-9  year of driving experience, and who is occupying a seat by the
  17-10  driver.  The Department shall provide a driver education school
  17-11  appropriate forms for instruction permits authorized to be issued
  17-12  by the school.  An application to the Department for issuance of an
  17-13  instruction permit is not required for a permit issued by a driver
  17-14  education school.  The school shall collect the applicable fee for
  17-15  an instruction permit and forward it to the Department.  The
  17-16  Department by rule shall provide for administration of the issuance
  17-17  of instruction permits by driver education schools.  An instruction
  17-18  permit may be issued by a driver education school only to a student
  17-19  of the school.
  17-20        SECTION 28.  Section 143A, Uniform Act Regulating Traffic on
  17-21  Highways (Article 6701d, Vernon's Texas Civil Statutes), is amended
  17-22  by amending Subsections (a) and (d) and by adding Subsections (h),
  17-23  (i), (j), (k), and (l) to read as follows:
  17-24        (a)  When a person is charged with a misdemeanor offense
  17-25  under this Act, other than a violation of Section 39, 40, 51, 104,
  17-26  or 186 or a serious traffic violation as defined in Section 3(26),
  17-27  Texas Commercial Driver's License Act (Article 6687b-2, Revised
  17-28  Statutes), committed while operating a motor vehicle, the defendant
  17-29  shall be advised by the court of his right to successfully complete
  17-30  a driving safety course and the court:
  17-31              (1)  in its discretion may defer proceedings and allow
  17-32  the person 90 days to take a driving safety course approved by the
  17-33  Texas Higher Education Coordinating Board and 30 additional days to
  17-34  present a uniform certificate of course completion as evidence
  17-35  that, subsequent to the alleged act, the person has successfully
  17-36  completed a driving safety course approved under the Texas Driver
  17-37  and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
  17-38  Civil Statutes); or
  17-39              (2)  shall defer proceedings and allow the person 90
  17-40  days to take a driving safety course approved by the Texas Higher
  17-41  Education Coordinating Board and 30 additional days to present a
  17-42  uniform certificate of course completion as written evidence that,
  17-43  subsequent to the alleged act, the person has successfully
  17-44  completed a driving safety course approved under the Texas Driver
  17-45  and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
  17-46  Civil Statutes), if:
  17-47                    (A)  the person enters a plea in person or in
  17-48  writing of No Contest or Guilty and presents to the court an oral
  17-49  request or a written request, in person or by mail postmarked on or
  17-50  before the answer date on the citation, to take a course;
  17-51                    (B)  the court enters judgment on the person's
  17-52  plea of No Contest or Guilty at the time the plea is made but
  17-53  defers imposition of the judgment for 90 days;
  17-54                    (C)  the person has a valid Texas driver's
  17-55  license or permit;
  17-56                    (D)  the person's driving record as maintained by
  17-57  the Texas Department of Public Safety does not indicate successful
  17-58  completion of a driving safety course under this subdivision within
  17-59  the one year immediately preceding the date of the alleged offense;
  17-60                    (E)  the person files an affidavit with the court
  17-61  stating that the person is not in the process of taking a course
  17-62  under this subdivision and has not completed a course under this
  17-63  subdivision that is not yet reflected on the person's driving
  17-64  record;
  17-65                    (F)  the offense charged is for an offense
  17-66  covered by this section other than speeding 25 miles per hour or
  17-67  more over the posted speed limit at the place where the alleged
  17-68  offense occurred; and
  17-69                    (G)  the person provides proof of financial
  17-70  responsibility as required by Section 1A, Texas Motor Vehicle
   18-1  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
   18-2  Statutes).
   18-3        (d)  The Texas Higher Education Coordinating Board <State
   18-4  Board of Education> shall enter into a memorandum of understanding
   18-5  with the State Board of Insurance for the interagency development
   18-6  of a curriculum for driving safety courses.  The Texas Higher
   18-7  Education Coordinating Board <Central Education Agency> shall adopt
   18-8  and administer comprehensive rules governing driving safety courses
   18-9  <adopted by the State Board of Education> and <the board shall>
  18-10  place on file such rules with the secretary of state.
  18-11        (h)  An issued uniform certificate of completion shall be
  18-12  mailed to the student not later than the 15th working day after the
  18-13  date of completion of an approved driving safety course only by the
  18-14  course provider or authorized personnel at the course provider's
  18-15  facilities.
  18-16        (i)  Data identified by the agency pertaining to issued
  18-17  uniform certificates of completion must be submitted electronically
  18-18  by each course provider to the agency in a manner determined by the
  18-19  agency.
  18-20        (j)  Duplicate uniform certificates of completion shall be
  18-21  issued by the agency.  An appropriate fee for issuing duplicate
  18-22  certificates shall be determined by board rule.
  18-23        (k)  The agency shall investigate options to develop and
  18-24  implement procedures to provide information pertaining to driving
  18-25  safety courses by electronic transmission to the state municipal
  18-26  and justice courts.
  18-27        (l)  A driving safety course may not be provided to a student
  18-28  for a cost less than $25.
  18-29        SECTION 29.  Subsections (f) and (g), Section 143A, as added
  18-30  by Chapters 156 and 813, Acts of the 71st Legislature, Regular
  18-31  Session, 1989, Uniform Act Regulating Traffic on Highways (Article
  18-32  6701d, Vernon's Texas Civil Statutes), are amended to read as
  18-33  follows:
  18-34        (f)  The agency by rule shall provide for the design and
  18-35  distribution of the uniform certificate of course completion in a
  18-36  manner that to the greatest extent possible prevents the
  18-37  unauthorized production or misuse of the certificate <shall be
  18-38  printed on copy-resistant paper in not fewer than two self-copying
  18-39  parts to provide a control copy of the certificate that shall be
  18-40  retained by the course provider under rules adopted by the State
  18-41  Board of Education>.  Each certificate <may not be more than 8 1/2
  18-42  inches by 3 1/2 inches in size and> shall include an identifying
  18-43  number by which the Texas Higher Education Coordinating Board
  18-44  <Central Education Agency>, the court, or the department may verify
  18-45  its authenticity with the course provider.  The certificate shall
  18-46  be in a form promulgated by the Texas Higher Education Coordinating
  18-47  Board <Central Education Agency>.
  18-48        (g)  The Texas Higher Education Coordinating Board <Central
  18-49  Education Agency> shall print and supply the serially numbered
  18-50  uniform certificates to licensed course providers <owners or
  18-51  primary consignees> of courses approved under the Texas Driver and
  18-52  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
  18-53  Civil Statutes).  The Texas Higher Education Coordinating Board
  18-54  <Central Education Agency> may charge a fee not to exceed $4 <of
  18-55  $1> for each certificate.  A course provider <An owner or
  18-56  consignee> may not charge an operator a fee in excess of the fee
  18-57  paid to the board <agency> for a certificate.  The board <agency>
  18-58  shall deposit the fees with the state treasurer to be used only for
  18-59  the expense of supplying the certificates, payments of monetary
  18-60  awards for information concerning abuse of the certificates that
  18-61  leads to the conviction or removal of an approval, license, or
  18-62  authorization, and administering the Texas Driver and Traffic
  18-63  Safety Education Act (Article 4413(29c), Vernon's Texas Civil
  18-64  Statutes).  The course provider shall charge and retain a user fee
  18-65  of not less than $3 a student for the use of course materials,
  18-66  oversight, and administration of the course.
  18-67        SECTION 30.  Subdivisions (2) and (3), Article 45.54, Code of
  18-68  Criminal Procedure, are amended to read as follows:
  18-69        (2)  During the deferral period, the justice shall require
  18-70  the defendant to successfully complete a <Central Education
   19-1  Agency-approved> driving safety course approved by the Texas Higher
   19-2  Education Coordinating Board, if the offense alleged is an offense
   19-3  involving the operation of a motor vehicle, other than a commercial
   19-4  motor vehicle, as defined in Subdivision (6), Section 3, Texas
   19-5  Commercial Driver's License Act (Article 6687b-2, Revised
   19-6  Statutes), and the defendant:
   19-7              (A)  has not completed an approved driving safety
   19-8  course within the preceding 12 months; or
   19-9              (B)  is a first-time offender who elects deferred
  19-10  adjudication.
  19-11        (3)  During said deferral period, the justice may require the
  19-12  defendant to:
  19-13              (a)  post a bond in the amount of the fine assessed to
  19-14  secure payment of the fine;
  19-15              (b)  pay restitution to the victim of the offense in an
  19-16  amount not to exceed the fine assessed;
  19-17              (c)  submit to professional counseling;
  19-18              (d)  comply with any other reasonable condition; and
  19-19              (e)  require the defendant to successfully complete a
  19-20  Texas Higher Education Coordinating Board <Central Education
  19-21  Agency> approved driving safety course, if:
  19-22                    (1)  the offense alleged is an offense involving
  19-23  the operation of a motor vehicle, other than a commercial motor
  19-24  vehicle, as defined in Subdivision (6), Section 3, Texas Commercial
  19-25  Driver's License Act (Article 6687b-2, Revised Statutes); and
  19-26                    (2)  the defendant has <not> completed an
  19-27  approved driving safety course within the preceding 12 months.
  19-28        SECTION 31.  (a)  This Act takes effect September 1, 1995,
  19-29  and on that date:
  19-30              (1)  a rule of the State Board of Education regarding
  19-31  regulation of driver training schools is continued in effect as a
  19-32  rule of the Texas Higher Education Coordinating Board until
  19-33  superseded by rule of the Texas Higher Education Coordinating
  19-34  Board;
  19-35              (2)  a proposed rule of the State Board of Education
  19-36  regarding the regulation of driver training schools is considered
  19-37  to have been proposed by the Texas Higher Education Coordinating
  19-38  Board, and the Texas Higher Education Coordinating Board shall
  19-39  continue the rulemaking process;
  19-40              (3)  a certificate, license, approval, exemption,
  19-41  registration, or notice of adverse action in effect and issued by
  19-42  the Central Education Agency is continued in effect as a
  19-43  certificate, license, approval, exemption, registration, or notice
  19-44  of adverse action issued by the Texas Higher Education Coordinating
  19-45  Board until expiration, suspension, or revocation or until it is
  19-46  superseded by later action of the Texas Higher Education
  19-47  Coordinating Board;
  19-48              (4)  a complaint or investigation pending before the
  19-49  Central Education Agency is transferred without change in status to
  19-50  the Texas Higher Education Coordinating Board;
  19-51              (5)  a contested case pending before the Central
  19-52  Education Agency remains the responsibility of the Central
  19-53  Education Agency until the case is administratively final, at which
  19-54  time the responsibility is transferred to the Texas Higher
  19-55  Education Coordinating Board; a subsequent court proceeding on the
  19-56  matter is treated as if the administrative action had been taken by
  19-57  the Texas Higher Education Coordinating Board; and in a pending
  19-58  court case the Texas Higher Education Coordinating Board is
  19-59  substituted as a party in the place of the Central Education
  19-60  Agency;
  19-61              (6)  a certificate of completion of a driving safety
  19-62  course authorized by law and issued by the Central Education Agency
  19-63  is considered issued by the Texas Higher Education Coordinating
  19-64  Board;
  19-65              (7)  the following are transferred to the Texas Higher
  19-66  Education Coordinating Board for purposes of the Texas Driver and
  19-67  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
  19-68  Civil Statutes):
  19-69                    (A)  an obligation, including a payroll
  19-70  obligation, right, or contract of the Central Education Agency
   20-1  arising from implementation of that Act; and
   20-2                    (B)  equipment, furniture, and other property and
   20-3  personnel, including legal counsel, assigned to administration of
   20-4  that Act;
   20-5              (8)  any unspent money, including surplus funds from
   20-6  prior years, student refund protection funds, and proceeds from
   20-7  bond claims, appropriated to the Central Education Agency for the
   20-8  purposes of the Texas Driver and Traffic Safety Education Act
   20-9  (Article 4413(29c), Vernon's Texas Civil Statutes) is transferred
  20-10  to the Texas Higher Education Coordinating Board for use in
  20-11  administering that Act;
  20-12              (9)  a reference in law to the Central Education Agency
  20-13  in relation to regulation of driver training schools means the
  20-14  Texas Higher Education Coordinating Board, and a reference in law
  20-15  to a driving safety course approved by the Central Education Agency
  20-16  means a course approved by the Texas Higher Education Coordinating
  20-17  Board; and
  20-18              (10)  persons issued a certificate, license, approval,
  20-19  or notice of good standing by the Central Education Agency and a
  20-20  certification of completion indicating successful completion of a
  20-21  Central Education Agency-approved course are considered to maintain
  20-22  the same status that applied immediately before the effective date
  20-23  of this Act.
  20-24        (b)  A person who on the effective date of this Act has an
  20-25  application for a certificate, license, approval, exemption, or
  20-26  registration on file with the Central Education Agency shall be
  20-27  treated by the Texas Higher Education Coordinating Board as if the
  20-28  application had been filed with the Texas Higher Education
  20-29  Coordinating Board.
  20-30        (c)  Not later than two months after the effective date of
  20-31  this Act, the Central Education Agency shall prepare an inventory
  20-32  of items covered by Subdivisions (7) and (8) of Subsection (a) of
  20-33  this section for review and approval by the Texas Higher Education
  20-34  Coordinating Board.
  20-35        (d)  To administer hearings in pending cases, the Central
  20-36  Education Agency may hire hearings officers or use the State Office
  20-37  of Administrative Hearings.   The Central Education Agency shall
  20-38  reach a final disposition of each pending case on or before
  20-39  September 1, 1996.
  20-40        (e)  The Texas Higher Education Coordinating Board shall
  20-41  adopt necessary rules under the Texas Driver and Traffic Safety
  20-42  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)
  20-43  and begin issuing certificates of completion for approved driving
  20-44  safety courses on or before September 1, 1996.
  20-45        (f)  A change in law made by this Act applies only to an
  20-46  offense committed on or after September 1, 1995.  For the purposes
  20-47  of this subsection, an offense is committed before September 1,
  20-48  1995, if any element of the offense occurs before that date.
  20-49        (g)  An offense committed before September 1, 1995, is
  20-50  covered by the law in effect when the offense was committed, and
  20-51  the former law is continued in effect for that purpose.
  20-52        SECTION 32.  The importance of this legislation and the
  20-53  crowded condition of the calendars in both houses create an
  20-54  emergency and an imperative public necessity that the
  20-55  constitutional rule requiring bills to be read on three several
  20-56  days in each house be suspended, and this rule is hereby suspended.
  20-57                               * * * * *