By: Shapleigh S.B. No. 1826
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of private postsecondary educational
1-2 institutions and educational or training establishments; providing
1-3 administrative and civil penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subdivisions (2), (5), and (9), Section 61.302,
1-6 Education Code, are amended to read as follows:
1-7 (2) "Private postsecondary educational institution" or
1-8 "institution" means an educational institution which:
1-9 (A) is not an institution of higher education as
1-10 defined by Section 61.003 [61.003(7) of this code];
1-11 (B) is incorporated under the laws of this
1-12 state, maintains a place of business in this state, has a
1-13 representative present in this state, or solicits business in this
1-14 state; and
1-15 (C) furnishes or offers to furnish courses of
1-16 instruction in person, by electronic media, or by correspondence
1-17 leading to a degree or providing credits alleged to be applicable
1-18 to a degree.
1-19 (5) "Board" means the Texas Higher Education
1-20 Coordinating Board[, Texas College and University System].
1-21 (9) "Educational or training establishment" means an
1-22 enterprise offering a course of instruction, education, or training
1-23 that the establishment does not represent [that would otherwise be
2-1 a private postsecondary educational institution, except the
2-2 enterprise does not provide courses or credits alleged] to be
2-3 applicable to a degree.
2-4 SECTION 2. Subsections (b), (d), (f), and (g), Section
2-5 61.303, Education Code, are amended to read as follows:
2-6 (b) The exemptions provided by Subsection (a) [(a)(1)] apply
2-7 only to the degree level for which [extent that] an institution is
2-8 accredited, and if an institution offers to award a degree at a
2-9 level for which it is not accredited, the exemption does not apply.
2-10 (d) An exempt institution or person would continue in that
2-11 status only so long as it maintained accreditation by a recognized
2-12 accrediting agency or otherwise met the provisions of Subsection
2-13 (a) [standards acceptable to the board].
2-14 (f) A private postsecondary educational institution may not
2-15 establish or operate a branch campus, extension center, or other
2-16 off-campus unit in Texas except as provided by this subsection
2-17 [Subsection (g) of this section] or [as provided under] the rules
2-18 of the board. This subsection [(g) Subsection (f) of this
2-19 section] does not apply to a private or independent institution of
2-20 higher education as defined by Section 61.003 [affect the exemption
2-21 under Subsection (a)(1) of this section of an accredited
2-22 institution or a separately accredited branch, extension center, or
2-23 off-campus unit of the institution if:]
2-24 [(1) the institution, branch, center, or unit was
2-25 accredited prior to January 1, 1981;]
3-1 [(2) the institution files with the board the name and
3-2 location of its home campus and each branch, center, or unit that
3-3 was accredited prior to that date; and]
3-4 [(3) the institution and each separately accredited
3-5 branch, center, or unit maintains accreditation by the accrediting
3-6 agency recognized by the board as of that date].
3-7 SECTION 3. Subsection (b), Section 61.307, Education Code,
3-8 is amended to read as follows:
3-9 (b) An institution which wishes to amend an existing program
3-10 of study to award a new or different degree during the period of
3-11 time covered by a current certificate may file an application for
3-12 amendment of the certificate with the board. The application shall
3-13 be accompanied by a fee set by the board [of $75] to cover the cost
3-14 of program evaluation. If the board finds that the new program of
3-15 study meets the required standards, the board may amend the
3-16 institution's certificate accordingly.
3-17 SECTION 4. Subsection (a), Section 61.308, Education Code,
3-18 is amended to read as follows:
3-19 (a) A private postsecondary educational institution which
3-20 desires to renew its certificate of authority shall apply to the
3-21 board at least 180 [60] days prior to the expiration of the current
3-22 certificate.
3-23 SECTION 5. Section 61.310, Education Code, is amended to
3-24 read as follows:
3-25 Sec. 61.310. APPEAL. [(a)] An institution whose application
4-1 for an original, amended, or renewal certificate of authority to
4-2 grant degrees is denied by the board is entitled to written notice
4-3 of the reasons for the denial and may request a hearing under
4-4 Chapter 2001, Government Code [before the board]. The hearing
4-5 shall be held within 120 days after written request is received by
4-6 the board.
4-7 [(b) The board shall conduct hearings, and a decision of the
4-8 board may be appealed, in accordance with Chapter 2001, Government
4-9 Code.]
4-10 SECTION 6. Subsection (a), Section 61.311, Education Code,
4-11 is amended to read as follows:
4-12 (a) The board shall promulgate standards, rules, and
4-13 regulations governing the administration of this subchapter
4-14 [issuance of certificates of authority].
4-15 SECTION 7. Section 61.313, Education Code, is amended to
4-16 read as follows:
4-17 Sec. 61.313. USE OF PROTECTED TERM IN NAME OF INSTITUTION
4-18 [THE TERM "COLLEGE" OR "UNIVERSITY"]. (a) Unless the institution
4-19 has been issued a certificate of authority under this subchapter, a
4-20 [A] person may not:
4-21 (1) use the term "college," [or] "university,"
4-22 "seminary," "school of medicine," "medical school," "health science
4-23 center," "school of law," "law school," or "law center" in the
4-24 official name or title of a nonexempt private postsecondary
4-25 educational institution; or
5-1 (2) describe an institution using a term listed in
5-2 Subdivision (1) or a term having a similar meaning [established
5-3 after the effective date of this subchapter unless the institution
5-4 has been issued a certificate of authority to grant a degree or
5-5 degrees].
5-6 (b) An institution not exempt from this subchapter that has
5-7 not been issued a certificate of authority, but is otherwise
5-8 legally operating, and that has in its official name or title a
5-9 term protected under Subsection (a) shall remove the protected term
5-10 from the name or title not later than September 1, 1999.
5-11 (c) [(b)] A person may not use the term "college," [or]
5-12 "university," "seminary," "school of medicine," "medical school,"
5-13 "health science center," "school of law," "law school," or "law
5-14 center" in the official name or title of an educational or training
5-15 establishment.
5-16 (d) This section does not apply to an institution of higher
5-17 education or a private institution of higher education as defined
5-18 by Section 61.003.
5-19 (e) This section does not apply to a person who on September
5-20 1, 1997, uses the term "college" or "university" in the official
5-21 name or title of a private postsecondary educational institution
5-22 that was established before September 1, 1975, and an institution
5-23 covered by this subsection is not required to remove the term
5-24 "college" or "university" from the name or title of the
5-25 institution.
6-1 SECTION 8. Subsection (a), Section 61.314, Education Code,
6-2 is amended to read as follows:
6-3 (a) The board shall appoint an advisory council on private
6-4 postsecondary educational institutions consisting of six members
6-5 with experience in the field of higher education, three of whom
6-6 must be representatives [and representative] of private
6-7 institutions of higher education as defined by Section 61.003
6-8 [61.003(15)] in the State of Texas which are exempt from the
6-9 provisions of this subchapter. Council members serve for terms of
6-10 two years from the date of their appointment and are entitled to
6-11 reimbursement for actual expenses incurred in carrying out the work
6-12 of the council.
6-13 SECTION 9. Sections 61.316 and 61.317, Education Code, are
6-14 amended and redesignated as Section 61.316 to read as follows:
6-15 Sec. 61.316. ADMINISTRATIVE PENALTIES [DUTY OF PROSECUTING
6-16 ATTORNEY]. (a) If a person violates a provision of this
6-17 subchapter, the commissioner may assess an administrative penalty
6-18 against the person as provided by this section. The commissioner
6-19 may adopt rules relating to the imposition of administrative
6-20 penalties under this section.
6-21 (b) [The board shall report any information concerning
6-22 possible violation of this subchapter to the appropriate
6-23 prosecuting attorney of the county in which the activity is
6-24 occurring or has occurred, and he shall make necessary
6-25 investigations. The appropriate prosecuting attorney shall
7-1 immediately prosecute or bring suit to enjoin any violation of this
7-2 subchapter which he discovers.]
7-3 [Sec. 61.317. PENALTIES. (a)] Any person who confers or
7-4 offers to confer a degree on behalf of a private postsecondary
7-5 educational institution subject to the provisions of this
7-6 subchapter which has not been issued a certificate of authority to
7-7 grant degrees or who represents that credits earned or granted by
7-8 that person or institution are applicable for credit toward a
7-9 degree to be granted by another person or institution except under
7-10 conditions and in a manner specified and approved by the board
7-11 shall be assessed an administrative penalty [is guilty of a
7-12 misdemeanor and upon conviction is subject to a fine] of not less
7-13 than $1,000 or [nor] more than $5,000. Each degree conferred
7-14 without authority constitutes a separate offense.
7-15 (c) [(b)] Any person who establishes a private postsecondary
7-16 educational institution that is not exempt from this subchapter and
7-17 uses a term protected under this subchapter [the term "college" or
7-18 "university"] in the official name of the institution without first
7-19 having been issued a certificate of authority [to grant degrees]
7-20 for the institution under this subchapter or any person who
7-21 establishes an educational or training establishment and uses a
7-22 term protected under this subchapter [the term "college" or
7-23 "university"] in the official name or title of the establishment
7-24 shall be assessed an administrative penalty [is guilty of a
7-25 misdemeanor and upon conviction is subject to a fine] of not less
8-1 than $1,000 or [nor] more than $3,000.
8-2 (d) [(c)] Any agent who solicits students for enrollment in
8-3 a private postsecondary educational institution subject to the
8-4 provisions of this subchapter without a certificate of registration
8-5 shall be assessed an administrative penalty [is guilty of a
8-6 misdemeanor and on conviction is subject to a fine] of not less
8-7 than $500 or [nor] more than $1,000. Each student solicited
8-8 without authority constitutes a separate offense.
8-9 (e) [(d)] Any operations which are found after due process
8-10 to be in [fraudulent] violation of this subchapter [Act] shall be
8-11 terminated.
8-12 (f) An institution that is assessed an administrative
8-13 penalty under this section is entitled to written notice of the
8-14 reasons for the penalty. An institution may appeal an
8-15 administrative penalty in the manner provided by Chapter 2001,
8-16 Government Code.
8-17 SECTION 10. Subchapter G, Chapter 61, Education Code, is
8-18 amended by adding Sections 61.318 and 61.319 to read as follows:
8-19 Sec. 61.318. INJUNCTIONS. (a) The commissioner may report
8-20 information concerning a possible violation of this subchapter to
8-21 the attorney general. The attorney general shall make the
8-22 necessary investigations and shall bring suit to enjoin any
8-23 violation of this subchapter.
8-24 (b) An action for an injunction under this section shall be
8-25 brought in a district court in Travis County.
9-1 Sec. 61.319. CIVIL PENALTY. (a) A person who violates this
9-2 subchapter or a rule adopted under this subchapter is liable for a
9-3 civil penalty in addition to any injunctive relief or any other
9-4 remedy. A civil penalty may not exceed $1,000 a day for each
9-5 violation.
9-6 (b) The attorney general, at the request of the board, shall
9-7 bring a civil action to collect a civil penalty under this section.
9-8 SECTION 11. (a) This Act takes effect September 1, 1997.
9-9 (b) The change in law made by this Act applies only to an
9-10 offense committed on or after the effective date of this Act. For
9-11 the purposes of this section, an offense is committed before the
9-12 effective date of this Act if any element of the offense occurs
9-13 before that date.
9-14 (c) An offense committed before the effective date of this
9-15 Act is covered by the law in effect when the offense was committed,
9-16 and the former law is continued in effect for that purpose.
9-17 SECTION 12. The importance of this legislation and the
9-18 crowded condition of the calendars in both houses create an
9-19 emergency and an imperative public necessity that the
9-20 constitutional rule requiring bills to be read on three several
9-21 days in each house be suspended, and this rule is hereby suspended.