1-1 By: Shapleigh S.B. No. 1826
1-2 (In the Senate - Filed March 14, 1997; March 24, 1997, read
1-3 first time and referred to Committee on Education; April 11, 1997,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 10, Nays 0; April 11, 1997, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1826 By: Shapleigh
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the regulation of private postsecondary educational
1-10 institutions and educational or training establishments; providing
1-11 administrative and civil penalties.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subdivisions (2), (5), and (9), Section 61.302,
1-14 Education Code, are amended to read as follows:
1-15 (2) "Private postsecondary educational institution" or
1-16 "institution" means an educational institution which:
1-17 (A) is not an institution of higher education as
1-18 defined by Section 61.003 [61.003(7) of this code];
1-19 (B) is incorporated under the laws of this
1-20 state, maintains a place of business in this state, has a
1-21 representative present in this state, or solicits business in this
1-22 state; and
1-23 (C) furnishes or offers to furnish courses of
1-24 instruction in person, by electronic media, or by correspondence
1-25 leading to a degree or providing credits alleged to be applicable
1-26 to a degree.
1-27 (5) "Board" means the Texas Higher Education
1-28 Coordinating Board[, Texas College and University System].
1-29 (9) "Educational or training establishment" means an
1-30 enterprise offering a course of instruction, education, or training
1-31 that the establishment does not represent [that would otherwise be
1-32 a private postsecondary educational institution, except the
1-33 enterprise does not provide courses or credits alleged] to be
1-34 applicable to a degree.
1-35 SECTION 2. Subsections (b), (d), (f), and (g), Section
1-36 61.303, Education Code, are amended to read as follows:
1-37 (b) The exemptions provided by Subsection (a) [(a)(1)] apply
1-38 only to the degree level for which [extent that] an institution is
1-39 accredited, and if an institution offers to award a degree at a
1-40 level for which it is not accredited, the exemption does not apply.
1-41 (d) An exempt institution or person would continue in that
1-42 status only so long as it maintained accreditation by a recognized
1-43 accrediting agency or otherwise met the provisions of Subsection
1-44 (a) [standards acceptable to the board].
1-45 (f) A private postsecondary educational institution may not
1-46 establish or operate a branch campus, extension center, or other
1-47 off-campus unit in Texas except as provided by this subsection
1-48 [Subsection (g) of this section] or [as provided under] the rules
1-49 of the board. This subsection [(g) Subsection (f) of this
1-50 section] does not apply to a private or independent institution of
1-51 higher education as defined by Section 61.003 [affect the exemption
1-52 under Subsection (a)(1) of this section of an accredited
1-53 institution or a separately accredited branch, extension center, or
1-54 off-campus unit of the institution if:]
1-55 [(1) the institution, branch, center, or unit was
1-56 accredited prior to January 1, 1981;]
1-57 [(2) the institution files with the board the name and
1-58 location of its home campus and each branch, center, or unit that
1-59 was accredited prior to that date; and]
1-60 [(3) the institution and each separately accredited
1-61 branch, center, or unit maintains accreditation by the accrediting
1-62 agency recognized by the board as of that date].
1-63 SECTION 3. Subsection (b), Section 61.307, Education Code,
1-64 is amended to read as follows:
2-1 (b) An institution which wishes to amend an existing program
2-2 of study to award a new or different degree during the period of
2-3 time covered by a current certificate may file an application for
2-4 amendment of the certificate with the board. The application shall
2-5 be accompanied by a fee set by the board [of $75] to cover the cost
2-6 of program evaluation. If the board finds that the new program of
2-7 study meets the required standards, the board may amend the
2-8 institution's certificate accordingly.
2-9 SECTION 4. Subsection (a), Section 61.308, Education Code,
2-10 is amended to read as follows:
2-11 (a) A private postsecondary educational institution which
2-12 desires to renew its certificate of authority shall apply to the
2-13 board at least 180 [60] days prior to the expiration of the current
2-14 certificate.
2-15 SECTION 5. Section 61.310, Education Code, is amended to
2-16 read as follows:
2-17 Sec. 61.310. APPEAL. [(a)] An institution whose application
2-18 for an original, amended, or renewal certificate of authority to
2-19 grant degrees is denied by the board is entitled to written notice
2-20 of the reasons for the denial and may request a hearing under
2-21 Chapter 2001, Government Code [before the board]. The hearing
2-22 shall be held within 120 days after written request is received by
2-23 the board.
2-24 [(b) The board shall conduct hearings, and a decision of the
2-25 board may be appealed, in accordance with Chapter 2001, Government
2-26 Code.]
2-27 SECTION 6. Subsection (a), Section 61.311, Education Code,
2-28 is amended to read as follows:
2-29 (a) The board shall promulgate standards, rules, and
2-30 regulations governing the administration of this subchapter
2-31 [issuance of certificates of authority].
2-32 SECTION 7. Section 61.313, Education Code, is amended to
2-33 read as follows:
2-34 Sec. 61.313. USE OF PROTECTED TERM IN NAME OF INSTITUTION
2-35 [THE TERM "COLLEGE" OR "UNIVERSITY"]. (a) Unless the institution
2-36 has been issued a certificate of authority under this subchapter, a
2-37 [A] person may not:
2-38 (1) use the term "college," [or] "university,"
2-39 "seminary," "school of medicine," "medical school," "health science
2-40 center," "school of law," "law school," or "law center" in the
2-41 official name or title of a nonexempt private postsecondary
2-42 educational institution; or
2-43 (2) describe an institution using a term listed in
2-44 Subdivision (1) or a term having a similar meaning [established
2-45 after the effective date of this subchapter unless the institution
2-46 has been issued a certificate of authority to grant a degree or
2-47 degrees].
2-48 (b) An institution not exempt from this subchapter that has
2-49 not been issued a certificate of authority, but is otherwise
2-50 legally operating, and that has in its official name or title a
2-51 term protected under Subsection (a) shall remove the protected term
2-52 from the name or title not later than September 1, 1999.
2-53 (c) [(b)] A person may not use the term "college," [or]
2-54 "university," "seminary," "school of medicine," "medical school,"
2-55 "health science center," "school of law," "law school," or "law
2-56 center" in the official name or title of an educational or training
2-57 establishment.
2-58 (d) This section does not apply to an institution of higher
2-59 education or a private institution of higher education as defined
2-60 by Section 61.003.
2-61 SECTION 8. Subsection (a), Section 61.314, Education Code,
2-62 is amended to read as follows:
2-63 (a) The board shall appoint an advisory council on private
2-64 postsecondary educational institutions consisting of six members
2-65 with experience in the field of higher education, three of whom
2-66 must be representatives [and representative] of private
2-67 institutions of higher education as defined by Section 61.003
2-68 [61.003(15)] in the State of Texas which are exempt from the
2-69 provisions of this subchapter. Council members serve for terms of
3-1 two years from the date of their appointment and are entitled to
3-2 reimbursement for actual expenses incurred in carrying out the work
3-3 of the council.
3-4 SECTION 9. Sections 61.316 and 61.317, Education Code, are
3-5 amended and redesignated as Section 61.316 to read as follows:
3-6 Sec. 61.316. ADMINISTRATIVE PENALTIES [DUTY OF PROSECUTING
3-7 ATTORNEY]. (a) If a person violates a provision of this
3-8 subchapter, the commissioner may assess an administrative penalty
3-9 against the person as provided by this section. The commissioner
3-10 may adopt rules relating to the imposition of administrative
3-11 penalties under this section.
3-12 (b) [The board shall report any information concerning
3-13 possible violation of this subchapter to the appropriate
3-14 prosecuting attorney of the county in which the activity is
3-15 occurring or has occurred, and he shall make necessary
3-16 investigations. The appropriate prosecuting attorney shall
3-17 immediately prosecute or bring suit to enjoin any violation of this
3-18 subchapter which he discovers.]
3-19 [Sec. 61.317. PENALTIES. (a)] Any person who confers or
3-20 offers to confer a degree on behalf of a private postsecondary
3-21 educational institution subject to the provisions of this
3-22 subchapter which has not been issued a certificate of authority to
3-23 grant degrees or who represents that credits earned or granted by
3-24 that person or institution are applicable for credit toward a
3-25 degree to be granted by another person or institution except under
3-26 conditions and in a manner specified and approved by the board
3-27 shall be assessed an administrative penalty [is guilty of a
3-28 misdemeanor and upon conviction is subject to a fine] of not less
3-29 than $1,000 or [nor] more than $5,000. Each degree conferred
3-30 without authority constitutes a separate offense.
3-31 (c) [(b)] Any person who establishes a private postsecondary
3-32 educational institution that is not exempt from this subchapter and
3-33 uses a term protected under this subchapter [the term "college" or
3-34 "university"] in the official name of the institution without first
3-35 having been issued a certificate of authority [to grant degrees]
3-36 for the institution under this subchapter or any person who
3-37 establishes an educational or training establishment and uses a
3-38 term protected under this subchapter [the term "college" or
3-39 "university"] in the official name or title of the establishment
3-40 shall be assessed an administrative penalty [is guilty of a
3-41 misdemeanor and upon conviction is subject to a fine] of not less
3-42 than $1,000 or [nor] more than $3,000.
3-43 (d) [(c)] Any agent who solicits students for enrollment in
3-44 a private postsecondary educational institution subject to the
3-45 provisions of this subchapter without a certificate of registration
3-46 shall be assessed an administrative penalty [is guilty of a
3-47 misdemeanor and on conviction is subject to a fine] of not less
3-48 than $500 or [nor] more than $1,000. Each student solicited
3-49 without authority constitutes a separate offense.
3-50 (e) [(d)] Any operations which are found after due process
3-51 to be in [fraudulent] violation of this subchapter [Act] shall be
3-52 terminated.
3-53 (f) An institution that is assessed an administrative
3-54 penalty under this section is entitled to written notice of the
3-55 reasons for the penalty. An institution may appeal an
3-56 administrative penalty in the manner provided by Chapter 2001,
3-57 Government Code.
3-58 SECTION 10. Subchapter G, Chapter 61, Education Code, is
3-59 amended by adding Sections 61.318 and 61.319 to read as follows:
3-60 Sec. 61.318. INJUNCTIONS. (a) The commissioner may report
3-61 information concerning a possible violation of this subchapter to
3-62 the attorney general. The attorney general shall make the
3-63 necessary investigations and shall bring suit to enjoin any
3-64 violation of this subchapter.
3-65 (b) An action for an injunction under this section shall be
3-66 brought in a district court in Travis County.
3-67 Sec. 61.319. CIVIL PENALTY. (a) A person who violates this
3-68 subchapter or a rule adopted under this subchapter is liable for a
3-69 civil penalty in addition to any injunctive relief or any other
4-1 remedy. A civil penalty may not exceed $1,000 a day for each
4-2 violation.
4-3 (b) The attorney general, at the request of the board, shall
4-4 bring a civil action to collect a civil penalty under this section.
4-5 SECTION 11. (a) This Act takes effect September 1, 1997.
4-6 (b) The change in law made by this Act applies only to an
4-7 offense committed on or after the effective date of this Act. For
4-8 the purposes of this section, an offense is committed before the
4-9 effective date of this Act if any element of the offense occurs
4-10 before that date.
4-11 (c) An offense committed before the effective date of this
4-12 Act is covered by the law in effect when the offense was committed,
4-13 and the former law is continued in effect for that purpose.
4-14 SECTION 12. The importance of this legislation and the
4-15 crowded condition of the calendars in both houses create an
4-16 emergency and an imperative public necessity that the
4-17 constitutional rule requiring bills to be read on three several
4-18 days in each house be suspended, and this rule is hereby suspended.
4-19 * * * * *