By:  Harris                                            S.B. No. 328
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the regulation of driver's training courses and the
 1-2     issuance of certain driver's licenses.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 2, Texas Driver and Traffic Safety
 1-5     Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
 1-6     is amended to read as follows:
 1-7           Sec. 2.  PURPOSE AND OBJECTIVES.  Traffic crashes in Texas
 1-8     annually take the lives of thousands of people and cause billions
 1-9     of dollars in economic losses.  These alarming facts make safe
1-10     driving a concern for all citizens of the state.  Deaths, injuries,
1-11     and property damage must be reduced.  The attitudes and skills of
1-12     drivers must be improved through effective driver education and
1-13     training.  It is a matter of vital public importance to identify
1-14     and implement all reasonable means to reduce the toll in human
1-15     suffering and property loss that is inflicted by vehicle crashes.
1-16     The purpose of this Act is to improve driver knowledge and skills
1-17     through the licensing and regulation by the Texas [Central]
1-18     Education Agency of driver training schools and driver training
1-19     instructors in Texas.  It is additionally intended that state
1-20     agency rules affecting schools that qualify as small businesses be
1-21     established and administered so as to have the least possible
1-22     adverse economic effect on those establishments.
1-23           SECTION 2.  Section 3, Texas Driver and Traffic Safety
1-24     Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
 2-1     is amended to read as follows:
 2-2           Sec. 3.  DEFINITIONS.  In this Act:
 2-3                 (1)  "Agency" means the Texas [Central] Education
 2-4     Agency, acting directly or through its authorized officers and
 2-5     agents.
 2-6                 (2)  ["Board" means the State Board of Education.]
 2-7                 [(3)]  "Commissioner" means the commissioner of
 2-8     education or a person knowledgeable in the administration of
 2-9     regulating driver training schools and designated by the
2-10     commissioner to administer this Act.
2-11                 (3) [(4)]  "Driver education" means a nonvocational
2-12     course of instruction that provides the knowledge and hands-on
2-13     experience to prepare persons for written and practical driving
2-14     tests that lead to authorization to operate a vehicle.
2-15                 (4) [(5)]  "Driver training" means driver education
2-16     provided by a driver education school and driving safety training
2-17     provided by a driving safety school.
2-18                 (5) [(6)]  "Driving safety course" means a course of
2-19     instruction intended to improve a driver's knowledge, perceptions,
2-20     and attitudes about driving.
2-21                 (6) [(7)]  "School" means a driver education school or
2-22     driving safety school.
2-23                 (7) [(8)]  "Operator" means a person approved by a
2-24     driving safety course owner or consignee to conduct an approved
2-25     driving safety course.
2-26                 (8) [(9)]  "Owner" means:
 3-1                       (A)  in the case of a school owned by an
 3-2     individual, the individual;
 3-3                       (B)  in the case of a school owned by a
 3-4     partnership, all full, silent, or limited partners; or
 3-5                       (C)  in the case of a school owned by a
 3-6     corporation, the corporation, its directors, officers, and each
 3-7     shareholder owning at least 10 percent of the total of the issued
 3-8     and outstanding shares.
 3-9                 (9) [(10)]  "Person" means an individual, firm,
3-10     partnership, association, corporation, or other private entity or
3-11     combination of persons.
3-12                 (10) [(11)]  "School employee" means any person, other
3-13     than an owner, who directly or indirectly receives compensation
3-14     from the school for instructional or other services rendered.
3-15                 (11) [(12)]  "Support" means the primary source and
3-16     means by which a school derives revenue.
3-17                 (12) [(13)]  "Suspension of enrollment" means a ruling
3-18     by the commissioner that restricts a school from accepting
3-19     enrollments or reenrollments, advertising, soliciting, or directly
3-20     or indirectly advising prospective students of its program or
3-21     course offerings.
3-22                 (13) [(14)]  "Uniform certificate of completion" means
3-23     a document that is printed, administered, and supplied by the
3-24     agency to owners or primary consignees for issuance to students who
3-25     successfully complete an approved driving safety course and that
3-26     meets the requirements of Subchapter B, Chapter 543, Transportation
 4-1     Code [Section 143A, Uniform Act Regulating Traffic on Highways
 4-2     (Article 6701d, Vernon's Texas Civil Statutes)].
 4-3                 (14) [(15)]  "Instructor" means an individual who has
 4-4     been licensed by the agency for the type of instruction being
 4-5     given.
 4-6                 (15) [(16)]  "Approved driving safety course" means a
 4-7     driving safety course approved by the agency [board].
 4-8                 (16) [(17)]  "Course provider" means an enterprise that
 4-9     maintains a place of business or solicits business in this state,
4-10     that is operated by an individual, association, partnership, or
4-11     corporation, and that is a driving safety course owner or primary
4-12     consignee.
4-13                 (17) [(18)]  "Driver education school" means an
4-14     enterprise that maintains a place of business or solicits business
4-15     in this state, that is operated by an individual, association,
4-16     partnership, [or] corporation, or public school district for the
4-17     education and training of persons at a primary or branch location
4-18     in driver education or driver education instructor development, and
4-19     that is not specifically exempted by this Act.
4-20                 (18) [(19)]  "Driver education school owner" means a
4-21     person who has been approved by the commissioner to own and operate
4-22     a driver education school.
4-23                 (19) [(20)]  "Driving safety course owner" means an
4-24     enterprise that is operated by an individual, association,
4-25     partnership, or corporation that has received an approval for a
4-26     driving safety course from the agency [board].
 5-1                 (20) [(21)]  "Driving safety school" means an
 5-2     enterprise that maintains a place of business or solicits business
 5-3     in this state, that is operated by an individual, association,
 5-4     partnership, or corporation for the education and training of
 5-5     persons in driving safety, and that is not specifically exempted by
 5-6     this Act.  A driving safety school may use multiple classroom
 5-7     locations to teach a driving safety course if each location is
 5-8     approved by the parent school and the agency and bears the same
 5-9     name and has the same ownership as the parent school.
5-10                 (21) [(22)]  "Primary consignee" means any enterprise
5-11     that is operated by an individual, association, partnership, or
5-12     corporation that has been designated by a driving safety course
5-13     owner to conduct business and represent the course owner in this
5-14     state.
5-15           SECTION 3.  Subsection (b), Section 4, Texas Driver and
5-16     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
5-17     Civil Statutes), is amended to read as follows:
5-18           (b)  The agency shall enter into a memorandum of
5-19     understanding with the Texas Rehabilitation Commission and the
5-20     Department of Public Safety for the interagency development of
5-21     curricula and licensing criteria for hospital and rehabilitation
5-22     facilities that teach driver education.  The agency shall
5-23     administer comprehensive rules governing driver education courses
5-24     adopted by mutual agreement between the agency [board], the Texas
5-25     Rehabilitation Commission, and the Department of Public Safety.
5-26     The agency shall file the rules with the secretary of state.
 6-1           SECTION 4.  Sections 6, 8, 9, and 9A, Texas Driver and
 6-2     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
 6-3     Civil Statutes), are amended to read as follows:
 6-4           Sec. 6.  DUTIES OF COMMISSIONER.  (a)  The commissioner shall
 6-5     carry out the policies of this Act, adopt rules necessary to
 6-6     implement this Act, enforce rules adopted by the commissioner or
 6-7     agency [board], and certify those schools and course providers
 6-8     meeting the requirements for a driver education school license,
 6-9     driving safety school license, or both, or for a course provider
6-10     license.
6-11           (b)  The commissioner by rule shall establish the curriculum
6-12     [and designate the textbooks] that must be used in a driver
6-13     education course.  [In addition, the commissioner may adopt and
6-14     enforce temporary rules under this Act, but the temporary rules are
6-15     valid only until the next meeting of the board.]
6-16           Sec. 8.  COMPETITIVE BIDDING; ADVERTISING.  (a)  The agency
6-17     [board] may not adopt rules to restrict competitive bidding or
6-18     advertising by a driver training school except to prohibit false,
6-19     misleading, or deceptive competitive bidding or advertising
6-20     practices.  Specifically, no rule may restrict:
6-21                 (1)  the use of an advertising medium;
6-22                 (2)  the outside dimensions of a printed advertisement
6-23     or outdoor display;
6-24                 (3)  the duration of an advertisement; or
6-25                 (4)  advertisement under a trade name.
6-26           (b)  The agency [board] may adopt rules to restrict
 7-1     advertising by a branch location of a school so that the branch
 7-2     location adequately identifies its primary driver training school
 7-3     in any solicitation.
 7-4           Sec. 9.  PROHIBITIONS.  A person may not:
 7-5                 (1)  operate a school that provides a driver education
 7-6     course without a driver education school license issued by the
 7-7     commissioner;
 7-8                 (2)  operate a school that provides driving safety
 7-9     courses without a driving safety school license issued by the
7-10     commissioner;
7-11                 (3)  operate as a course provider without a course
7-12     provider license issued by the commissioner;
7-13                 (4)  utilize advertising designed to mislead or deceive
7-14     a prospective student;
7-15                 (5)  fail to notify the commissioner of the
7-16     discontinuance of the operation of any school within three working
7-17     days after cessation of classes and make available accurate records
7-18     as required by this Act;
7-19                 (6)  issue, sell, trade, or transfer a uniform
7-20     certificate of completion or driver education certificate to any
7-21     person or school not authorized to possess it;
7-22                 (7)  issue, sell, trade, or transfer:
7-23                       (A)  a uniform certificate of completion to a
7-24     person who has not successfully completed an approved, six-hour
7-25     driving safety course; or
7-26                       (B)  except as provided by Section 521.2225,
 8-1     Transportation Code, a driver education certificate to a person who
 8-2     has not successfully completed an agency-approved [a
 8-3     board-approved] driver education course;
 8-4                 (8)  negotiate any promissory instrument received as
 8-5     payment of tuition or other charge before completion of 75 percent
 8-6     of the course, except that before that time, the instrument may be
 8-7     assigned to a purchaser who will be subject to all the defenses
 8-8     available against the school named as payee;
 8-9                 (9)  conduct any part of an approved driver education
8-10     or driving safety course without an instructor who is physically
8-11     present in appropriate proximity to the student for the type of
8-12     instruction being given; or
8-13                 (10)  violate any provision of this Act.
8-14           Sec. 9A.  DRIVER EDUCATION CERTIFICATES.  (a)  The agency
8-15     shall print and supply to licensed and exempt driver education
8-16     schools serially numbered driver education certificates to be used
8-17     for certifying completion of an approved driver education course
8-18     for the purposes of Section 521.204, Transportation Code [7(a),
8-19     Chapter 173, Acts of the 47th Legislature, Regular Session, 1941
8-20     (Article 6687b, Vernon's Texas Civil Statutes)].  The agency by
8-21     rule shall provide for the design and distribution of the
8-22     certificates in a manner that to the greatest extent possible
8-23     prevents the unauthorized reproduction or misuse of the
8-24     certificates.  The agency may charge a fee of not more than $6 [$4]
8-25     for each certificate.
8-26           (b)  The agency shall establish a database that contains
 9-1     information pertinent to driver education certificates and shall
 9-2     make the database available electronically to the Department of
 9-3     Public Safety.  The information must include for each driver
 9-4     education certificate issued:
 9-5                 (1)  the control number and date of issuance of the
 9-6     certificate;
 9-7                 (2)  the name and identification number of the driver
 9-8     education school;
 9-9                 (3)  the name and agency license number of the driver
9-10     education instructor; and
9-11                 (4)  the name, date of birth, sex, and social security
9-12     number of the student to whom the certificate is issued.
9-13           (c)  Each driver education school shall submit electronically
9-14     to the agency, at the time and in the manner determined by the
9-15     agency, the information required by Subsection (b) of this section.
9-16           SECTION 5.  Subsection (a), Section 12, Texas Driver and
9-17     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
9-18     Civil Statutes), is amended to read as follows:
9-19           (a)  To operate or do business in this state, a public school
9-20     district, driver education school, or driving safety school must
9-21     make written application to the commissioner for a driver education
9-22     or driving safety school license.  The application must be
9-23     verified, be in the form prescribed by the agency [board], and
9-24     include all information required.  A driving safety school shall
9-25     obtain approval from the agency for any multiple classroom
9-26     locations.
 10-1          SECTION 6.  Subsections (a), (a-1), and (a-2), Section 13,
 10-2    Texas Driver and Traffic Safety Education Act (Article 4413(29c),
 10-3    Vernon's Texas Civil Statutes), are amended to read as follows:
 10-4          (a)  The commissioner shall approve the application of a
 10-5    driver education school when the school is found, on investigation
 10-6    at the premises of the school, to meet the following criteria:
 10-7                (1)  the courses, curriculum, and instruction are of
 10-8    such quality, content, and length as may reasonably and adequately
 10-9    achieve the stated objective for which the courses, curriculum, and
10-10    instruction are offered;
10-11                (2)  there are in the school, and in the provision for
10-12    behind-the-wheel instruction, adequate space, equipment,
10-13    instructional material, and instructors to provide training of good
10-14    quality;
10-15                (3)  educational and experience qualifications of
10-16    directors, instructors, and administrators are adequate;
10-17                (4)  a copy of the schedule of tuition, fees, refund
10-18    policy, and other charges, regulations pertaining to absence,
10-19    grading policy, and rules of operation and conduct, and the name,
10-20    mailing address, and telephone number of the agency for the purpose
10-21    of directing complaints to the agency is furnished to each student
10-22    before enrollment;
10-23                (5)  on completion of training, each student is given a
10-24    certificate by the school indicating the course name and
10-25    satisfactory completion;
10-26                (6)  adequate records as prescribed by the commissioner
 11-1    are kept to show attendance and progress or grades, and
 11-2    satisfactory standards relating to attendance, progress, and
 11-3    conduct are enforced;
 11-4                (7)  the school complies with all county, municipal,
 11-5    state, and federal regulations, including fire, building, and
 11-6    sanitation codes and assumed name registration;
 11-7                (8)  the school is financially sound and capable of
 11-8    fulfilling its commitments for training;
 11-9                (9)  the school's administrators, directors, owners,
11-10    and instructors are of good reputation and character;
11-11                (10)  the school has, maintains, and publishes as part
11-12    of its student enrollment contract the proper policy for the refund
11-13    of the unused portion of tuition, fees, and other charges if a
11-14    student enrolled by the school fails to take the course or
11-15    withdraws or is discontinued from the school at any time before
11-16    completion;
11-17                (11)  the school does not use erroneous or misleading
11-18    advertising, either by actual statement, omission, or intimation,
11-19    as determined by the agency [board];
11-20                (12)  the school does not use a name like or similar to
11-21    the name of another existing school or tax-supported educational
11-22    establishment in this state, unless specifically approved in
11-23    writing by the commissioner;
11-24                (13)  the school submits to the agency for approval the
11-25    applicable course hour lengths and curriculum content for each
11-26    course offered by the school;
 12-1                (14)  the school does not owe a civil penalty under
 12-2    this Act; and
 12-3                (15)  additional criteria as may be required by the
 12-4    agency.
 12-5          (a-1)  The commissioner shall approve the application of a
 12-6    driving safety school if on investigation the agency finds that:
 12-7                (1)  the school presents the driving safety course,
 12-8    curriculum, and instruction in a quality, content, and length that
 12-9    reasonably and adequately achieve the stated objective for which
12-10    the course, curriculum, and instruction are developed by the course
12-11    provider;
12-12                (2)  the school has adequate space, equipment,
12-13    instructional material, and instructors to provide training of good
12-14    quality;
12-15                (3)  the school's instructors and administrators have
12-16    adequate educational and experience qualifications;
12-17                (4)  the school keeps and maintains adequate records as
12-18    prescribed by the commissioner to show attendance and progress of
12-19    grades and that satisfactory standards relating to attendance,
12-20    progress, and conduct are enforced;
12-21                (5)  the school complies with all county, municipal,
12-22    state, and federal law, including fire, building, and sanitation
12-23    codes and assumed name registration;
12-24                (6)  the school's administrators, owners, and
12-25    instructors are of good reputation and character;
12-26                (7)  the school does not use erroneous or misleading
 13-1    advertising, either by actual statement, omission, or intimation,
 13-2    as determined by the agency [board];
 13-3                (8)  the school does not use a name like or similar to
 13-4    the name of another existing school or tax-supported educational
 13-5    establishment in this state unless specifically approved in writing
 13-6    by the commissioner;
 13-7                (9)  the school has, maintains, and uses the approved
 13-8    contract and policies developed by the course provider;
 13-9                (10)  the school does not owe a civil penalty under
13-10    this Act;
13-11                (11)  the school will not provide a driving safety
13-12    course to any person for a cost less than $25; and
13-13                (12)  the school meets additional criteria required by
13-14    the agency [board].
13-15          (a-2)  The commissioner shall approve the application of a
13-16    person to be a course provider if on investigation the agency finds
13-17    that:
13-18                (1)  the course provider has an approved course;
13-19                (2)  the course provider can show evidence that there
13-20    is at least one licensed driving safety school that is willing to
13-21    offer the course;
13-22                (3)  the course provider has adequate educational and
13-23    experience qualifications;
13-24                (4)  the course provider will develop and provide to
13-25    driving safety schools that offer the approved course a refund
13-26    policy, regulations pertaining to absence, grading policy, rules of
 14-1    operation, and conduct, and the name, mailing address, and
 14-2    telephone number of the agency for the purpose of directing
 14-3    complaints to the agency and that copies of these will be furnished
 14-4    to each student by the schools before enrollment;
 14-5                (5)  not later than the 15th working day after the date
 14-6    of completion of the course by a person, the course provider mails
 14-7    a uniform certificate of completion to the person indicating the
 14-8    course name and successful completion;
 14-9                (6)  the course provider keeps and maintains adequate
14-10    records as prescribed by the commissioner to show attendance and
14-11    progress or grades and that satisfactory standards relating to
14-12    attendance, progress, and conduct are enforced;
14-13                (7)  the course provider complies with all county,
14-14    municipal, state, and federal law, including assumed name
14-15    registration and other applicable requirements;
14-16                (8)  the course provider is financially sound and
14-17    capable of fulfilling its commitments for training;
14-18                (9)  the course provider is of good reputation and
14-19    character;
14-20                (10)  the course provider has, maintains, and publishes
14-21    as a part of its student enrollment contract the proper policy for
14-22    the refund of the unused portion of tuition, fees, and other
14-23    charges if a person enrolled by the school fails to take the course
14-24    or withdraws or is discontinued from the school at any time before
14-25    completion;
14-26                (11)  the course provider does not use erroneous or
 15-1    misleading advertising, either by actual statement, omission, or
 15-2    intimation, as determined by the agency [board];
 15-3                (12)  the course provider does not use a name like or
 15-4    similar to the name of another existing school or tax-supported
 15-5    educational establishment in this state unless specifically
 15-6    approved in writing by the commissioner;
 15-7                (13)  the course provider does not owe a civil penalty
 15-8    under this Act; and
 15-9                (14)  the course provider meets additional criteria
15-10    required by the agency [board].
15-11          SECTION 7.  Subsection (b), Section 13, Texas Driver and
15-12    Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
15-13    Civil Statutes), is amended by amending Subdivisions (1), (3), (4),
15-14    and (7) and adding Subdivision (8) to read as follows:
15-15                (1)  License, application, and registration fees shall
15-16    be collected by the commissioner and deposited with the
15-17    comptroller.  Fees shall be sufficient to cover administrative
15-18    costs and may not be subject to refund.  Fees shall be as follows:
15-19                      (A)(i)  the initial fee for a driver education
15-20    school license is $1,000 plus $850 for each branch location;
15-21                            (ii)  the initial fee for a driving safety
15-22    school license is an appropriate amount established by the agency
15-23    [board] not to exceed $200; and
15-24                            (iii)  the initial fee for a course
15-25    provider license is an appropriate amount established by the agency
15-26    [board] not to exceed $2,000, except that this fee may be waived by
 16-1    the agency if revenue received by the agency from the course
 16-2    provider is sufficient to fund the cost of licensing the course
 16-3    provider;
 16-4                      (B)  the annual renewal fee for a course
 16-5    provider, driving safety school, driver education school, and
 16-6    branch school is an appropriate amount established by the agency
 16-7    [board] not to exceed $200, but may be waived by the agency if
 16-8    revenue generated by the issuance of uniform certificates of
 16-9    completion and driver education certificates is sufficient to fund
16-10    the cost of administering this Act and Subchapter B, Chapter 543,
16-11    Transportation Code;
16-12                      (C)  the fee for a change of address of a driver
16-13    education school is $180 and of a driving safety school or course
16-14    provider is $50;
16-15                      (D)  the fee for a change of name of:
16-16                            (i)  a driver education school or course
16-17    provider or an owner of a driver education school or course
16-18    provider is $100; and
16-19                            (ii)  a driving safety school or owner of a
16-20    driving safety school is $50;
16-21                      (E)  the application fee for each additional
16-22    driver education or driving safety course at a school is $25;
16-23                      (F)  the application fee for each director is
16-24    $30, and for each assistant director, or administrative staff
16-25    member is $15;
16-26                      (G)  each application for approval of a driving
 17-1    safety course that has not been evaluated by the agency [board]
 17-2    shall be accompanied by a nonrefundable fee of $9,000;
 17-3                      (H)  each application for an original driver
 17-4    education or driving safety instructor's license shall be
 17-5    accompanied by a processing fee of $50 and an annual license fee of
 17-6    $25, except that the commissioner may not collect the processing
 17-7    fee from an applicant for a driver education instructor license who
 17-8    is currently teaching a driver education course in a public school
 17-9    in this state; and
17-10                      (I)  the fee for a duplicate license, which may
17-11    be issued if the original is lost or destroyed and an affidavit of
17-12    that fact is filed with the agency, shall be set by the agency
17-13    [board].
17-14                (3)  The commissioner shall periodically review and
17-15    recommend adjustments in the level of fees to the agency [board]
17-16    and legislature.
17-17                (4)  The fee for an investigation of a school or course
17-18    provider to resolve a complaint filed against the school or course
17-19    provider shall be set by the commissioner [and approved by the
17-20    board].  The complaint investigation fee may be charged only if:
17-21                      (A)  the complaint could not have been resolved
17-22    solely by telephone or written correspondence;
17-23                      (B)  a representative of the agency visited the
17-24    school or course provider as a part of the complaint resolution
17-25    process; and
17-26                      (C)  the school or course provider is found to be
 18-1    at fault.
 18-2                (7)  Duplicate uniform certificates of completion shall
 18-3    be issued by the agency.  An appropriate fee for issuing duplicate
 18-4    certificates shall be determined by agency [board] rule.
 18-5                (8)  A public school district is exempt from license,
 18-6    application, and registration fees.
 18-7          SECTION 8.  Subsection (c), Section 13, Texas Driver and
 18-8    Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
 18-9    Civil Statutes), is amended to read as follows:
18-10          (c)  The cost of administration of this Act shall be included
18-11    in the state budget allowance for the agency [board].
18-12          SECTION 9.  Subdivisions (1) and (4), Subsection (d), Section
18-13    13,  Texas Driver and Traffic Safety Education Act (Article
18-14    4413(29c), Vernon's Texas Civil Statutes), are amended to read as
18-15    follows:
18-16                (1)  The commissioner, on review of an application for
18-17    a driver education school, driving safety school, or course
18-18    provider license that is submitted in accordance with this Act and
18-19    that meets the requirements of this Act, shall issue a license to
18-20    the applicant.  Each license shall be in a form determined by the
18-21    commissioner [and approved by the board] and shall show in a clear
18-22    and conspicuous manner at least the following:
18-23                      (A)  the date of issuance, effective date, and
18-24    term of approval;
18-25                      (B)  the name and address of the school or course
18-26    provider;
 19-1                      (C)  the authority for approval and conditions of
 19-2    approval;
 19-3                      (D)  the signature of the commissioner; and
 19-4                      (E)  any other fair and reasonable
 19-5    representations that are consistent with this Act and considered
 19-6    necessary by the commissioner.
 19-7                (4)  At least 30 days before the expiration of a driver
 19-8    education school, driving safety school, or course provider
 19-9    license, the school or course provider shall forward to the
19-10    commissioner an application for renewal.  The commissioner may
19-11    reexamine a driver education school's premises.  The commissioner
19-12    shall renew or cancel the driver education school, driving safety
19-13    school, or course provider license.  If a school or course provider
19-14    fails to file a complete application for renewal at least 30 days
19-15    before the expiration date of the driver education school, driving
19-16    safety school, or course provider license, the school or course
19-17    provider shall pay as a condition of renewal and in addition to any
19-18    annual renewal fee a late renewal fee in an amount established by
19-19    agency [board] rule of at least $100, subject to Subsection (b) of
19-20    this section.
19-21          SECTION 10.  Subdivision (2), Subsection (g), Section 13,
19-22    Texas Driver and Traffic Safety Education Act (Article 4413(29c),
19-23    Vernon's Texas Civil Statutes), is amended to read as follows:
19-24                (2)  A driving safety school, or a public school
19-25    district that teaches driver education, is not required to post a
19-26    surety bond.
 20-1          SECTION 11.  Subsection (e), Section 13A, Texas Driver and
 20-2    Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
 20-3    Civil Statutes), as added by Section 16, Chapter 1009, Acts of the
 20-4    74th Legislature, Regular Session, 1995, is amended to read as
 20-5    follows:
 20-6          (e)  The agency [board] may adopt additional rules to ensure
 20-7    integrity of the course and enhance program quality.
 20-8          SECTION 12.  Subsection (c), Section 15, Texas Driver and
 20-9    Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
20-10    Civil Statutes), is amended to read as follows:
20-11          (c)  A driver education instructor license shall be carried
20-12    by the instructor at all times while instructing driver education
20-13    courses.  A driving safety instructor license shall be carried by
20-14    the instructor at all times while instructing driving safety
20-15    courses.  Each license shall be signed by the commissioner and
20-16    issued under the seal of the agency [board].
20-17          SECTION 13.  Subsections (a), (b), (c), and (d), Section 15A,
20-18    Texas Driver and Traffic Safety Education Act (Article 4413(29c),
20-19    Vernon's Texas Civil Statutes), are amended to read as follows:
20-20          (a)  The [With approval of the board, the] commissioner shall
20-21    establish standards for certification of professional and
20-22    paraprofessional personnel who conduct driver education programs in
20-23    driver education schools.
20-24          (b)  A driver education instructor license may not be issued
20-25    authorizing a person to teach or give driver education in-car
20-26    training unless the person has successfully completed six semester
 21-1    hours of driver and traffic safety education or a program of study
 21-2    in driver education approved by the agency [board] from an approved
 21-3    driver education school.  A person holding a driver education
 21-4    instructor license authorizing in-car training may be approved to
 21-5    assist classroom instructors, or in an emergency may be approved to
 21-6    substitute for classroom instructors under rules established by the
 21-7    agency, in the classroom phase of driver education if the person
 21-8    successfully completes the additional three semester hours of
 21-9    training required for a classroom instructor or a program of study
21-10    in driver education approved by the agency [board].
21-11          (c)  A driver education instructor license may not be issued
21-12    authorizing a person to teach or give classroom driver education
21-13    training unless the person:
21-14                (1)  has completed nine semester hours of driver and
21-15    traffic safety education or a program of study in driver education
21-16    approved by the agency [board] from an approved driver education
21-17    school; and
21-18                (2)  holds a bachelor's degree [teaching certificate
21-19    and any additional certification required to teach driver
21-20    education].
21-21          (d)  A driver education instructor who has completed the
21-22    educational requirements for a classroom driver education
21-23    instructor under Subsection (c)(1) of this section may be approved
21-24    to teach instructor training classes after successfully completing
21-25    a supervising instructor development program consisting of at least
21-26    six additional semester hours or a program of study in driver
 22-1    education approved by the agency [board] that includes
 22-2    administering driver education programs and supervising and
 22-3    administering traffic safety education.
 22-4          SECTION 14.  The Texas Driver and Traffic Safety Education
 22-5    Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
 22-6    by adding Section 16A to read as follows:
 22-7          Sec. 16A.  SUBPOENAS.  (a)  The commissioner may issue a
 22-8    subpoena or subpoena duces tecum for purposes of:
 22-9                (1)  conducting an investigation or contested
22-10    proceeding related to:
22-11                      (A)  alleged misconduct by a person or school
22-12    regulated by this Act; or
22-13                      (B)  an alleged violation of this Act or another
22-14    law related to driver education, driver training, or driving safety
22-15    education;
22-16                (2)  issuing, suspending, restricting, revoking, or
22-17    canceling a license authorized by this Act; or
22-18                (3)  denying or granting an application for a license
22-19    under this Act.
22-20          (b)  Failure to timely comply with a subpoena issued under
22-21    this section is a ground for:
22-22                (1)  disciplinary action by the agency; and
22-23                (2)  the denial of a license application.
22-24          SECTION 15.  Subsection (c), Section 18, Texas Driver and
22-25    Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
22-26    Civil Statutes), is amended to read as follows:
 23-1          (c)  On filing of the lawsuit, citation shall be served on
 23-2    the commissioner, who shall cause to be made a complete record of
 23-3    all proceedings had before the commissioner and certify a copy of
 23-4    the proceedings to the court.  Trial before the court shall be on
 23-5    the basis of the record made before the commissioner, and the court
 23-6    shall make its decision based on the record.  The commissioner's
 23-7    decision shall be affirmed by the court if the court finds
 23-8    substantial evidence in the record to justify the decision, unless
 23-9    the court finds the denial of the license to be:
23-10                (1)  arbitrary and capricious;
23-11                (2)  in violation of the constitution or laws of the
23-12    United States or this state; or
23-13                (3)  in violation of rules adopted by the agency
23-14    [board] under this Act.
23-15          SECTION 16.  Section 29.902, Education Code, is amended to
23-16    read as follows:
23-17          Sec. 29.902.  DRIVER EDUCATION.  (a)  The agency shall
23-18    develop a program of organized instruction in driver education and
23-19    traffic safety for public school students consistent with the Texas
23-20    Driver and Traffic Safety Education Act (Article 4413(29c),
23-21    Vernon's Texas Civil Statutes).  A student who will be 15 years of
23-22    age or older before a driver education and traffic safety course
23-23    ends may enroll in the course.
23-24          (b)  The agency shall establish standards for the
23-25    certification of professional and paraprofessional personnel who
23-26    conduct the programs in the public schools consistent with the
 24-1    Texas Driver and Traffic Safety Education Act (Article 4413(29c),
 24-2    Vernon's Texas Civil Statutes).
 24-3          SECTION 17.  Section 521.204, Transportation Code, is amended
 24-4    to read as follows:
 24-5          Sec. 521.204.  RESTRICTIONS ON MINOR.  The department may
 24-6    issue a Class C driver's license to an applicant under 18 years of
 24-7    age only if the applicant:
 24-8                (1)  is 16 years of age or older;
 24-9                (2)  has submitted to the department a driver education
24-10    certificate issued under Section 9A, Texas Driver and Traffic
24-11    Safety Education Act (Article 4413(29c), Vernon's Texas Civil
24-12    Statutes), that states that the person has completed and passed a
24-13    driver education course approved by the department under Section
24-14    521.205 or by the Texas Education Agency;
24-15                (3)  has obtained a high school diploma or its
24-16    equivalent or is a student:
24-17                      (A)  enrolled in a public school, home school, or
24-18    private school who attended school for at least 90 percent of the
24-19    [80] days classes were offered at the school in the fall or spring
24-20    semester preceding the date of the driver's license application; or
24-21                      (B)  who has been enrolled for at least 45 days,
24-22    and is enrolled as of the date of the application, in a program to
24-23    prepare persons to pass the high school equivalency exam; and
24-24                (4)  has passed the examination required by Section
24-25    521.161.
24-26          SECTION 18.  Subsection (a), Section 521.222, Transportation
 25-1    Code, is amended to read as follows:
 25-2          (a)  The department or a driver education school licensed
 25-3    under the Texas Driver and Traffic Safety Education Act (Article
 25-4    4413(29c), Vernon's Texas Civil Statutes) may issue an instruction
 25-5    permit, including a Class A or Class B driver's license instruction
 25-6    permit, to a person who:
 25-7                (1)  is 15 years of age or older but under 18 years of
 25-8    age;
 25-9                (2)  has, with regard to [satisfactorily completed and
25-10    passed the classroom phase of] an approved driver education course,
25-11    which may be a course approved under Section 521.205:
25-12                      (A)  satisfactorily completed and passed the
25-13    classroom phase of the course if the classroom and laboratory
25-14    phases of the course are conducted successively; or
25-15                      (B)  satisfactorily completed six hours of
25-16    classroom instruction regarding driving laws and procedures if the
25-17    classroom and laboratory phases of the course are conducted
25-18    concurrently;
25-19                (3)  meets the requirements imposed under Section
25-20    521.204(3); and
25-21                (4)  has passed each examination required under Section
25-22    521.161 other than the driving test.
25-23          SECTION 19.  Subchapter K, Chapter 521, Transportation Code,
25-24    is amended by adding Section 521.2225 to read as follows:
25-25          Sec. 521.2225.  TEMPORARY INSTRUCTION PERMIT.  (a)  A driver
25-26    education school licensed under the Texas Driver and Traffic Safety
 26-1    Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)
 26-2    may issue, as an instruction permit under Section 521.222, the
 26-3    instruction permit portion of a driver education certificate issued
 26-4    under Section 9A, Texas Driver and Traffic Safety Education Act
 26-5    (Article 4413(29c), Vernon's Texas Civil Statutes), to a person
 26-6    who:
 26-7                (1)  is 15 years of age or older but under 18 years of
 26-8    age;
 26-9                (2)  has satisfactorily completed and passed the
26-10    classroom phase of an approved driver education course or has
26-11    enrolled in an approved driver education course of at least 32
26-12    hours in which the classroom and laboratory phases are conducted
26-13    concurrently;
26-14                (3)  has obtained a high school diploma or its
26-15    equivalent or is a student:
26-16                      (A)  enrolled in a public school, home school, or
26-17    private school who attended school for at least 90 percent of the
26-18    days classes were offered at the school in the fall or spring
26-19    semester preceding the date of application; or
26-20                      (B)  who has been enrolled for at least 45 days
26-21    and is enrolled as of the date of the application in a program to
26-22    prepare persons to pass the high school equivalency exam; and
26-23                (4)  has passed each examination required under Section
26-24    521.161 other than the driving test.
26-25          (b)  Notwithstanding Section 521.271, an instruction permit
26-26    issued under this section expires on the 45th day after the date of
 27-1    issuance.
 27-2          (c)  A driver education school that issues, as an instruction
 27-3    permit under Section 521.222, the instruction permit portion of a
 27-4    driver education certificate shall notify the Texas Education
 27-5    Agency.  The agency shall maintain the information in the database
 27-6    required by Section 9A(b), Texas Driver and Traffic Safety
 27-7    Education Act (Article 4413(29c), Vernon's Texas Civil Statutes).
 27-8          SECTION 20.  Subsection (a), Section 543.111, Transportation
 27-9    Code, is amended to read as follows:
27-10          (a)  The commissioner of education [State Board of Education]
27-11    shall enter into a memorandum of understanding with the Texas
27-12    Department of Insurance for the interagency development of a
27-13    curriculum for driving safety courses.
27-14          SECTION 21.  Subsection (c), Section 543.112, Transportation
27-15    Code, is amended to read as follows:
27-16          (c)  The Texas Education Agency shall issue duplicate uniform
27-17    certificates of course completion.  The agency [State Board of
27-18    Education] by rule shall determine the amount of the fee to be
27-19    charged for issuance of a duplicate certificate.
27-20          SECTION 22.  Section 5, Texas Driver and Traffic Safety
27-21    Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
27-22    is repealed.
27-23          SECTION 23.  This Act takes effect September 1, 1999.
27-24          SECTION 24.  The importance of this legislation and the
27-25    crowded condition of the calendars in both houses create an
27-26    emergency and an imperative public necessity that the
 28-1    constitutional rule requiring bills to be read on three several
 28-2    days in each house be suspended, and this rule is hereby suspended.