By Shapleigh S.B. No. 1826
75R7553 CAG-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of private postsecondary educational
1-3 institutions; providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 61.302, Education Code, is amended by
1-6 amending Subdivisions (2), (5), and (9) 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
1-24 a private postsecondary educational institution, except the
2-1 enterprise does not provide courses or credits alleged] to be
2-2 applicable to a degree.
2-3 SECTION 2. Sections 61.303(b), (d), (f), and (g), Education
2-4 Code, are amended to read as follows:
2-5 (b) The exemptions provided by Subsection (a) [(a)(1)] apply
2-6 only to the degree level for which [extent that] an institution is
2-7 accredited, and if an institution offers to award a degree at a
2-8 level for which it is not accredited, the exemption does not apply.
2-9 (d) An exempt institution or person would continue in that
2-10 status only so long as it maintained accreditation by a recognized
2-11 accrediting agency [standards acceptable to the board].
2-12 (f) A private postsecondary educational institution may not
2-13 establish or operate a branch campus, extension center, or other
2-14 off-campus unit in Texas except as provided by this subsection
2-15 [Subsection (g) of this section] or [as provided under] the rules
2-16 of the board. This subsection [(g) Subsection (f) of this section]
2-17 does not apply to a private or independent institution of higher
2-18 education as defined by Section 61.003 [affect the exemption under
2-19 Subsection (a)(1) of this section of an accredited institution or a
2-20 separately accredited branch, extension center, or off-campus unit
2-21 of the institution if:]
2-22 [(1) the institution, branch, center, or unit was
2-23 accredited prior to January 1, 1981;]
2-24 [(2) the institution files with the board the name and
2-25 location of its home campus and each branch, center, or unit that
2-26 was accredited prior to that date; and]
2-27 [(3) the institution and each separately accredited
3-1 branch, center, or unit maintains accreditation by the accrediting
3-2 agency recognized by the board as of that date].
3-3 SECTION 3. Section 61.307(b), Education Code, is amended to
3-4 read as follows:
3-5 (b) An institution which wishes to amend an existing program
3-6 of study to award a new or different degree during the period of
3-7 time covered by a current certificate may file an application for
3-8 amendment of the certificate with the board. The application shall
3-9 be accompanied by a fee set by the board [of $75] to cover the cost
3-10 of program evaluation. If the board finds that the new program of
3-11 study meets the required standards, the board may amend the
3-12 institution's certificate accordingly.
3-13 SECTION 4. Section 61.308(a), Education Code, is amended to
3-14 read as follows:
3-15 (a) A private postsecondary educational institution which
3-16 desires to renew its certificate of authority shall apply to the
3-17 board at least 180 [60] days prior to the expiration of the current
3-18 certificate.
3-19 SECTION 5. Section 61.310, Education Code, is amended to
3-20 read as follows:
3-21 Sec. 61.310. APPEAL. [(a)] An institution whose application
3-22 for an original, amended, or renewal certificate of authority to
3-23 grant degrees is denied by the board is entitled to written notice
3-24 of the reasons for the denial and may request a hearing under
3-25 Chapter 2001, Government Code [before the board]. The hearing
3-26 shall be held within 120 days after written request is received by
3-27 the board.
4-1 [(b) The board shall conduct hearings, and a decision of the
4-2 board may be appealed, in accordance with Chapter 2001, Government
4-3 Code.]
4-4 SECTION 6. Section 61.311(a), Education Code, is amended to
4-5 read as follows:
4-6 (a) The board shall promulgate standards, rules, and
4-7 regulations governing the administration of this subchapter
4-8 [issuance of certificates of authority].
4-9 SECTION 7. Section 61.313, Education Code, is amended to
4-10 read as follows:
4-11 Sec. 61.313. USE OF PROTECTED TERM IN NAME OF INSTITUTION
4-12 [THE TERM "COLLEGE" OR "UNIVERSITY"]. (a) Unless the institution
4-13 has been issued a certificate of authority under this subchapter, a
4-14 [A] person may not:
4-15 (1) use the term "college," [or] "university,"
4-16 "seminary," "school of medicine," "medical school," "health science
4-17 center," "school of law," "law school," or "law center" in the
4-18 official name or title of a nonexempt private postsecondary
4-19 educational institution [established after the effective date of
4-20 this subchapter]; or
4-21 (2) describe an institution using a term listed in
4-22 Subdivision (1) or a term having a similar meaning [unless the
4-23 institution has been issued a certificate of authority to grant a
4-24 degree or degrees].
4-25 (b) An institution that has not been issued a certificate of
4-26 authority, but is otherwise legally operating, and that has in its
4-27 official name or title a term protected under Subsection (a), shall
5-1 remove the protected term from the name or title not later than
5-2 September 1, 1999.
5-3 (c) [(b)] A person may not use the term "college," [or]
5-4 "university," "seminary," "school of medicine," "medical school,"
5-5 "health science center," "school of law," "law school," or "law
5-6 center" in the official name or title of an educational or training
5-7 establishment.
5-8 (d) This section does not apply to an institution of higher
5-9 education or a private institution of higher education as defined
5-10 by Section 61.003.
5-11 SECTION 8. Section 61.314(a), Education Code, is amended to
5-12 read as follows:
5-13 (a) The board shall appoint an advisory council on private
5-14 postsecondary educational institutions consisting of six members
5-15 with experience in the field of higher education, three of whom
5-16 must be representatives [and representative] of private
5-17 institutions of higher education as defined by Section 61.003
5-18 [61.003(15)] in the State of Texas which are exempt from the
5-19 provisions of this subchapter. Council members serve for terms of
5-20 two years from the date of their appointment and are entitled to
5-21 reimbursement for actual expenses incurred in carrying out the work
5-22 of the council.
5-23 SECTION 9. Sections 61.316 and 61.317, Education Code, are
5-24 amended and redesignated as Section 61.316 to read as follows:
5-25 Sec. 61.316. ADMINISTRATIVE PENALTIES [DUTY OF PROSECUTING
5-26 ATTORNEY]. (a) If a person violates a provision of this
5-27 subchapter, the commissioner may assess an administrative penalty
6-1 against the person as provided by this section. The commissioner
6-2 may adopt rules relating to the imposition of administrative
6-3 penalties under this section.
6-4 (b) [The board shall report any information concerning
6-5 possible violation of this subchapter to the appropriate
6-6 prosecuting attorney of the county in which the activity is
6-7 occurring or has occurred, and he shall make necessary
6-8 investigations. The appropriate prosecuting attorney shall
6-9 immediately prosecute or bring suit to enjoin any violation of this
6-10 subchapter which he discovers.]
6-11 [Sec. 61.317. PENALTIES. (a)] Any person who confers or
6-12 offers to confer a degree on behalf of a private postsecondary
6-13 educational institution subject to the provisions of this
6-14 subchapter which has not been issued a certificate of authority to
6-15 grant degrees or who represents that credits earned or granted by
6-16 that person or institution are applicable for credit toward a
6-17 degree to be granted by another person or institution except under
6-18 conditions and in a manner specified and approved by the board
6-19 shall be assessed an administrative penalty [is guilty of a
6-20 misdemeanor and upon conviction is subject to a fine] of not less
6-21 than $1,000 or [nor] more than $5,000. Each degree conferred
6-22 without authority constitutes a separate offense.
6-23 (c) [(b)] Any person who establishes a private postsecondary
6-24 educational institution and uses a term protected under this
6-25 subchapter [the term "college" or "university"] in the official
6-26 name of the institution without first having been issued a
6-27 certificate of authority [to grant degrees] for the institution
7-1 under this subchapter or any person who establishes an educational
7-2 or training establishment and uses a term protected under this
7-3 subchapter [the term "college" or "university"] in the official
7-4 name or title of the establishment shall be assessed an
7-5 administrative penalty [is guilty of a misdemeanor and upon
7-6 conviction is subject to a fine] of not less than $1,000 or [nor]
7-7 more than $3,000.
7-8 (d) [(c)] Any agent who solicits students for enrollment in
7-9 a private postsecondary educational institution subject to the
7-10 provisions of this subchapter without a certificate of registration
7-11 shall be assessed an administrative penalty [is guilty of a
7-12 misdemeanor and on conviction is subject to a fine] of not less
7-13 than $500 or [nor] more than $1,000. Each student solicited without
7-14 authority constitutes a separate offense.
7-15 (e) [(d)] Any operations which are found after due process
7-16 to be in [fraudulent] violation of this subchapter [Act] shall be
7-17 terminated.
7-18 (f) An institution that is assessed an administrative
7-19 penalty under this section is entitled to written notice of the
7-20 reasons for the penalty. An institution may appeal an
7-21 administrative penalty in the manner provided by Chapter 2001,
7-22 Government Code.
7-23 SECTION 10. Subchapter G, Chapter 61, Education Code, is
7-24 amended by adding Sections 61.318 and 61.319 to read as follows:
7-25 Sec. 61.318. INJUNCTIONS. (a) The commissioner may report
7-26 information concerning a possible violation of this subchapter to
7-27 the attorney general. The attorney general shall make the necessary
8-1 investigations and shall bring suit to enjoin any violation of this
8-2 subchapter.
8-3 (b) An action for an injunction under this section shall be
8-4 brought in a district court in Travis County.
8-5 Sec. 61.319. CIVIL PENALTY. (a) A person who violates this
8-6 subchapter or a rule adopted under this subchapter is liable for a
8-7 civil penalty in addition to any injunctive relief or any other
8-8 remedy. A civil penalty may not exceed $1,000 a day for each
8-9 violation.
8-10 (b) The attorney general, at the request of the board, shall
8-11 bring a civil action to collect a civil penalty under this section.
8-12 SECTION 11. (a) This Act takes effect September 1, 1997.
8-13 (b) The change in law made by this Act applies only to an
8-14 offense committed on or after the effective date of this Act. For
8-15 the purposes of this section, an offense is committed before the
8-16 effective date of this Act if any element of the offense occurs
8-17 before that date.
8-18 (c) An offense committed before the effective date of this
8-19 Act is covered by the law in effect when the offense was committed,
8-20 and the former law is continued in effect for that purpose.
8-21 SECTION 12. The importance of this legislation and the
8-22 crowded condition of the calendars in both houses create an
8-23 emergency and an imperative public necessity that the
8-24 constitutional rule requiring bills to be read on three several
8-25 days in each house be suspended, and this rule is hereby suspended.