1-1     By:  Harris                                            S.B. No. 328
 1-2           (In the Senate - Filed January 29, 1999; February 2, 1999,
 1-3     read first time and referred to Committee on Education;
 1-4     March 15, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; March 15, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 328                     By:  Cain
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the regulation of driver's training courses and the
1-11     issuance of certain driver's licenses.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 2, Texas Driver and Traffic Safety
1-14     Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
1-15     is amended to read as follows:
1-16           Sec. 2.  PURPOSE AND OBJECTIVES.  Traffic crashes in Texas
1-17     annually take the lives of thousands of people and cause billions
1-18     of dollars in economic losses.  These alarming facts make safe
1-19     driving a concern for all citizens of the state.  Deaths, injuries,
1-20     and property damage must be reduced.  The attitudes and skills of
1-21     drivers must be improved through effective driver education and
1-22     training.  It is a matter of vital public importance to identify
1-23     and implement all reasonable means to reduce the toll in human
1-24     suffering and property loss that is inflicted by vehicle crashes.
1-25     The purpose of this Act is to improve driver knowledge and skills
1-26     through the licensing and regulation by the Texas [Central]
1-27     Education Agency of driver training schools and driver training
1-28     instructors in Texas.  It is additionally intended that state
1-29     agency rules affecting schools that qualify as small businesses be
1-30     established and administered so as to have the least possible
1-31     adverse economic effect on those establishments.
1-32           SECTION 2.  Section 3, Texas Driver and Traffic Safety
1-33     Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
1-34     is amended to read as follows:
1-35           Sec. 3.  DEFINITIONS.  In this Act:
1-36                 (1)  "Agency" means the Texas [Central] Education
1-37     Agency, acting directly or through its authorized officers and
1-38     agents.
1-39                 (2)  ["Board" means the State Board of Education.]
1-40                 [(3)]  "Commissioner" means the commissioner of
1-41     education or a person knowledgeable in the administration of
1-42     regulating driver training schools and designated by the
1-43     commissioner to administer this Act.
1-44                 (3) [(4)]  "Driver education" means a nonvocational
1-45     course of instruction that provides the knowledge and hands-on
1-46     experience to prepare persons for written and practical driving
1-47     tests that lead to authorization to operate a vehicle.
1-48                 (4) [(5)]  "Driver training" means driver education
1-49     provided by a driver education school and driving safety training
1-50     provided by a driving safety school.
1-51                 (5) [(6)]  "Driving safety course" means a course of
1-52     instruction intended to improve a driver's knowledge, perceptions,
1-53     and attitudes about driving.
1-54                 (6) [(7)]  "School" means a driver education school or
1-55     driving safety school.
1-56                 (7) [(8)]  "Operator" means a person approved by a
1-57     driving safety course owner or consignee to conduct an approved
1-58     driving safety course.
1-59                 (8) [(9)]  "Owner" means:
1-60                       (A)  in the case of a school owned by an
1-61     individual, the individual;
1-62                       (B)  in the case of a school owned by a
1-63     partnership, all full, silent, or limited partners; or
1-64                       (C)  in the case of a school owned by a
 2-1     corporation, the corporation, its directors, officers, and each
 2-2     shareholder owning at least 10 percent of the total of the issued
 2-3     and outstanding shares.
 2-4                 (9) [(10)]  "Person" means an individual, firm,
 2-5     partnership, association, corporation, or other private entity or
 2-6     combination of persons.
 2-7                 (10) [(11)]  "School employee" means any person, other
 2-8     than an owner, who directly or indirectly receives compensation
 2-9     from the school for instructional or other services rendered.
2-10                 (11) [(12)]  "Support" means the primary source and
2-11     means by which a school derives revenue.
2-12                 (12) [(13)]  "Suspension of enrollment" means a ruling
2-13     by the commissioner that restricts a school from accepting
2-14     enrollments or reenrollments, advertising, soliciting, or directly
2-15     or indirectly advising prospective students of its program or
2-16     course offerings.
2-17                 (13) [(14)]  "Uniform certificate of completion" means
2-18     a document that is printed, administered, and supplied by the
2-19     agency to owners or primary consignees for issuance to students who
2-20     successfully complete an approved driving safety course and that
2-21     meets the requirements of Subchapter B, Chapter 543, Transportation
2-22     Code [Section 143A, Uniform Act Regulating Traffic on Highways
2-23     (Article 6701d, Vernon's Texas Civil Statutes)].
2-24                 (14) [(15)]  "Instructor" means an individual who has
2-25     been licensed by the agency for the type of instruction being
2-26     given.
2-27                 (15) [(16)]  "Approved driving safety course" means a
2-28     driving safety course approved by the agency [board].
2-29                 (16) [(17)]  "Course provider" means an enterprise that
2-30     maintains a place of business or solicits business in this state,
2-31     that is operated by an individual, association, partnership, or
2-32     corporation, and that is a driving safety course owner or primary
2-33     consignee.
2-34                 (17) [(18)]  "Driver education school" means an
2-35     enterprise that maintains a place of business or solicits business
2-36     in this state, that is operated by an individual, association,
2-37     partnership, [or] corporation, or public school district for the
2-38     education and training of persons at a primary or branch location
2-39     in driver education or driver education instructor development, and
2-40     that is not specifically exempted by this Act.
2-41                 (18) [(19)]  "Driver education school owner" means a
2-42     person who has been approved by the commissioner to own and operate
2-43     a driver education school.
2-44                 (19) [(20)]  "Driving safety course owner" means an
2-45     enterprise that is operated by an individual, association,
2-46     partnership, or corporation that has received an approval for a
2-47     driving safety course from the agency [board].
2-48                 (20) [(21)]  "Driving safety school" means an
2-49     enterprise that maintains a place of business or solicits business
2-50     in this state, that is operated by an individual, association,
2-51     partnership, or corporation for the education and training of
2-52     persons in driving safety, and that is not specifically exempted by
2-53     this Act.  A driving safety school may use multiple classroom
2-54     locations to teach a driving safety course if each location is
2-55     approved by the parent school and the agency and bears the same
2-56     name and has the same ownership as the parent school.
2-57                 (21) [(22)]  "Primary consignee" means any enterprise
2-58     that is operated by an individual, association, partnership, or
2-59     corporation that has been designated by a driving safety course
2-60     owner to conduct business and represent the course owner in this
2-61     state.
2-62           SECTION 3.  Subsection (b), Section 4, Texas Driver and
2-63     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
2-64     Civil Statutes), is amended to read as follows:
2-65           (b)  The agency shall enter into a memorandum of
2-66     understanding with the Texas Rehabilitation Commission and the
2-67     Department of Public Safety for the interagency development of
2-68     curricula and licensing criteria for hospital and rehabilitation
2-69     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 agency [board], the Texas
 3-3     Rehabilitation Commission, and the Department of Public Safety.
 3-4     The agency shall file the rules with the secretary of state.
 3-5           SECTION 4.  Sections 6, 8, 9, and 9A, Texas Driver and
 3-6     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
 3-7     Civil Statutes), are amended to read as follows:
 3-8           Sec. 6.  DUTIES OF COMMISSIONER.  (a)  The commissioner shall
 3-9     carry out the policies of this Act, adopt rules necessary to
3-10     implement this Act, enforce rules adopted by the commissioner or
3-11     agency [board], and certify those schools and course providers
3-12     meeting the requirements for a driver education school license,
3-13     driving safety 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
3-17     education course.  [In addition, the commissioner may adopt and
3-18     enforce temporary rules under this Act, but the temporary rules are
3-19     valid only until the next meeting of the board.]
3-20           Sec. 8.  COMPETITIVE BIDDING; ADVERTISING.  (a)  The agency
3-21     [board] may not adopt rules to restrict competitive bidding or
3-22     advertising by a driver training school except to prohibit false,
3-23     misleading, or deceptive competitive bidding or advertising
3-24     practices.  Specifically, no rule may restrict:
3-25                 (1)  the use of an advertising medium;
3-26                 (2)  the outside dimensions of a printed advertisement
3-27     or outdoor display;
3-28                 (3)  the duration of an advertisement; or
3-29                 (4)  advertisement under a trade name.
3-30           (b)  The agency [board] may adopt rules to restrict
3-31     advertising by a branch location of a school so that the branch
3-32     location adequately identifies its primary driver training school
3-33     in any solicitation.
3-34           Sec. 9.  PROHIBITIONS.  A person may not:
3-35                 (1)  operate a school that provides a driver education
3-36     course without a driver education school license issued by the
3-37     commissioner;
3-38                 (2)  operate a school that provides driving safety
3-39     courses without a driving safety school license issued by the
3-40     commissioner;
3-41                 (3)  operate as a course provider without a course
3-42     provider license issued by the commissioner;
3-43                 (4)  utilize advertising designed to mislead or deceive
3-44     a prospective student;
3-45                 (5)  fail to notify the commissioner of the
3-46     discontinuance of the operation of any school within three working
3-47     days after cessation of classes and make available accurate records
3-48     as required by this Act;
3-49                 (6)  issue, sell, trade, or transfer a uniform
3-50     certificate of completion or driver education certificate to any
3-51     person or school not authorized to possess it;
3-52                 (7)  issue, sell, trade, or transfer:
3-53                       (A)  a uniform certificate of completion to a
3-54     person who has not successfully completed an approved, six-hour
3-55     driving safety course; or
3-56                       (B)  except as provided by Section 521.2225,
3-57     Transportation Code, a driver education certificate to a person who
3-58     has not successfully completed an agency-approved [a
3-59     board-approved] driver education course;
3-60                 (8)  negotiate any promissory instrument received as
3-61     payment of tuition or other charge before completion of 75 percent
3-62     of the course, except that before that time, the instrument may be
3-63     assigned to a purchaser who will be subject to all the defenses
3-64     available against the school named as payee;
3-65                 (9)  conduct any part of an approved driver education
3-66     or driving safety course without an instructor who is physically
3-67     present in appropriate proximity to the student for the type of
3-68     instruction being given; or
3-69                 (10)  violate any provision of this Act.
 4-1           Sec. 9A.  DRIVER EDUCATION CERTIFICATES.  (a)  The agency
 4-2     shall print and supply to licensed and exempt driver education
 4-3     schools serially numbered driver education certificates to be used
 4-4     for certifying completion of an approved driver education course
 4-5     for the purposes of Section 521.204, Transportation Code [7(a),
 4-6     Chapter 173, Acts of the 47th Legislature, Regular Session, 1941
 4-7     (Article 6687b, Vernon's Texas Civil Statutes)].  The agency by
 4-8     rule shall provide for the design and distribution of the
 4-9     certificates in a manner that to the greatest extent possible
4-10     prevents the unauthorized reproduction or misuse of the
4-11     certificates.  The agency may charge a fee of not more than $6 [$4]
4-12     for each certificate.
4-13           (b)  The agency shall establish a database that contains
4-14     information pertinent to driver education certificates and shall
4-15     make the database available electronically to the Department of
4-16     Public Safety.  The information must include for each driver
4-17     education certificate issued:
4-18                 (1)  the control number and date of issuance of the
4-19     certificate;
4-20                 (2)  the name and identification number of the driver
4-21     education school;
4-22                 (3)  the name and agency license number of the driver
4-23     education instructor; and
4-24                 (4)  the name, date of birth, sex, and social security
4-25     number of the student to whom the certificate is issued.
4-26           (c)  Each driver education school shall submit electronically
4-27     to the agency, at the time and in the manner determined by the
4-28     agency, the information required by Subsection (b) of this section.
4-29           SECTION 5.  Subsection (a), Section 12, Texas Driver and
4-30     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
4-31     Civil Statutes), is amended to read as follows:
4-32           (a)  To operate or do business in this state, a public school
4-33     district, driver education school, or driving safety school must
4-34     make written application to the commissioner for a driver education
4-35     or driving safety school license.  The application must be
4-36     verified, be in the form prescribed by the agency [board], and
4-37     include all information required.  A driving safety school shall
4-38     obtain approval from the agency for any multiple classroom
4-39     locations.
4-40           SECTION 6.  Subsections (a), (a-1), and (a-2), Section 13,
4-41     Texas Driver and Traffic Safety Education Act (Article 4413(29c),
4-42     Vernon's Texas Civil Statutes), are amended to read as follows:
4-43           (a)  The commissioner shall approve the application of a
4-44     driver education school when the school is found, on investigation
4-45     at the premises of the school, to meet the following criteria:
4-46                 (1)  the courses, curriculum, and instruction are of
4-47     such quality, content, and length as may reasonably and adequately
4-48     achieve the stated objective for which the courses, curriculum, and
4-49     instruction are offered;
4-50                 (2)  there are in the school, and in the provision for
4-51     behind-the-wheel instruction, adequate space, equipment,
4-52     instructional material, and instructors to provide training of good
4-53     quality;
4-54                 (3)  educational and experience qualifications of
4-55     directors, instructors, and administrators are adequate;
4-56                 (4)  a copy of the schedule of tuition, fees, refund
4-57     policy, and other charges, regulations pertaining to absence,
4-58     grading policy, and rules of operation and conduct, and the name,
4-59     mailing address, and telephone number of the agency for the purpose
4-60     of directing complaints to the agency is furnished to each student
4-61     before enrollment;
4-62                 (5)  on completion of training, each student is given a
4-63     certificate by the school indicating the course name and
4-64     satisfactory completion;
4-65                 (6)  adequate records as prescribed by the commissioner
4-66     are kept to show attendance and progress or grades, and
4-67     satisfactory standards relating to attendance, progress, and
4-68     conduct are enforced;
4-69                 (7)  the school complies with all county, municipal,
 5-1     state, and federal regulations, including fire, building, and
 5-2     sanitation codes and assumed name registration;
 5-3                 (8)  the school is financially sound and capable of
 5-4     fulfilling its commitments for training;
 5-5                 (9)  the school's administrators, directors, owners,
 5-6     and instructors are of good reputation and character;
 5-7                 (10)  the school has, maintains, and publishes as part
 5-8     of its student enrollment contract the proper policy for the refund
 5-9     of the unused portion of tuition, fees, and other charges if a
5-10     student enrolled by the school fails to take the course or
5-11     withdraws or is discontinued from the school at any time before
5-12     completion;
5-13                 (11)  the school does not use erroneous or misleading
5-14     advertising, either by actual statement, omission, or intimation,
5-15     as determined by the agency [board];
5-16                 (12)  the school does not use a name like or similar to
5-17     the name of another existing school or tax-supported educational
5-18     establishment in this state, unless specifically approved in
5-19     writing by the commissioner;
5-20                 (13)  the school submits to the agency for approval the
5-21     applicable course hour lengths and curriculum content for each
5-22     course offered by the school;
5-23                 (14)  the school does not owe a civil penalty under
5-24     this Act; and
5-25                 (15)  additional criteria as may be required by the
5-26     agency.
5-27           (a-1)  The commissioner shall approve the application of a
5-28     driving safety school if on investigation the agency finds that:
5-29                 (1)  the school presents the driving safety course,
5-30     curriculum, and instruction in a quality, content, and length that
5-31     reasonably and adequately achieve the stated objective for which
5-32     the course, curriculum, and instruction are developed by the course
5-33     provider;
5-34                 (2)  the school has adequate space, equipment,
5-35     instructional material, and instructors to provide training of good
5-36     quality;
5-37                 (3)  the school's instructors and administrators have
5-38     adequate educational and experience qualifications;
5-39                 (4)  the school keeps and maintains adequate records as
5-40     prescribed by the commissioner to show attendance and progress of
5-41     grades and that satisfactory standards relating to attendance,
5-42     progress, and conduct are enforced;
5-43                 (5)  the school complies with all county, municipal,
5-44     state, and federal law, including fire, building, and sanitation
5-45     codes and assumed name registration;
5-46                 (6)  the school's administrators, owners, and
5-47     instructors are of good reputation and character;
5-48                 (7)  the school does not use erroneous or misleading
5-49     advertising, either by actual statement, omission, or intimation,
5-50     as determined by the agency [board];
5-51                 (8)  the school does not use a name like or similar to
5-52     the name of another existing school or tax-supported educational
5-53     establishment in this state unless specifically approved in writing
5-54     by the commissioner;
5-55                 (9)  the school has, maintains, and uses the approved
5-56     contract and policies developed by the course provider;
5-57                 (10)  the school does not owe a civil penalty under
5-58     this Act;
5-59                 (11)  the school will not provide a driving safety
5-60     course to any person for a cost less than $25; and
5-61                 (12)  the school meets additional criteria required by
5-62     the agency [board].
5-63           (a-2)  The commissioner shall approve the application of a
5-64     person to be a course provider if on investigation the agency finds
5-65     that:
5-66                 (1)  the course provider has an approved course;
5-67                 (2)  the course provider can show evidence that there
5-68     is at least one licensed driving safety school that is willing to
5-69     offer the course;
 6-1                 (3)  the course provider has adequate educational and
 6-2     experience qualifications;
 6-3                 (4)  the course provider will develop and provide to
 6-4     driving safety schools that offer the approved course a refund
 6-5     policy, regulations pertaining to absence, grading policy, rules of
 6-6     operation, and conduct, and the name, mailing address, and
 6-7     telephone number of the agency for the purpose of directing
 6-8     complaints to the agency and that copies of these will be furnished
 6-9     to each student by the schools before enrollment;
6-10                 (5)  not later than the 15th working day after the date
6-11     of completion of the course by a person, the course provider mails
6-12     a uniform certificate of completion to the person indicating the
6-13     course name and successful completion;
6-14                 (6)  the course provider keeps and maintains adequate
6-15     records as prescribed by the commissioner to show attendance and
6-16     progress or grades and that satisfactory standards relating to
6-17     attendance, progress, and conduct are enforced;
6-18                 (7)  the course provider complies with all county,
6-19     municipal, state, and federal law, including assumed name
6-20     registration and other applicable requirements;
6-21                 (8)  the course provider is financially sound and
6-22     capable of fulfilling its commitments for training;
6-23                 (9)  the course provider is of good reputation and
6-24     character;
6-25                 (10)  the course provider has, maintains, and publishes
6-26     as a part of its student enrollment contract the proper policy for
6-27     the refund of the unused portion of tuition, fees, and other
6-28     charges if a person enrolled by the school fails to take the course
6-29     or withdraws or is discontinued from the school at any time before
6-30     completion;
6-31                 (11)  the course provider does not use erroneous or
6-32     misleading advertising, either by actual statement, omission, or
6-33     intimation, as determined by the agency [board];
6-34                 (12)  the course provider does not use a name like or
6-35     similar to the name of another existing school or tax-supported
6-36     educational establishment in this state unless specifically
6-37     approved in writing by the commissioner;
6-38                 (13)  the course provider does not owe a civil penalty
6-39     under this Act; and
6-40                 (14)  the course provider meets additional criteria
6-41     required by the agency [board].
6-42           SECTION 7.  Subsection (b), Section 13, Texas Driver and
6-43     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
6-44     Civil Statutes), is amended by amending Subdivisions (1), (3), (4),
6-45     and (7) and adding Subdivision (8) to read as follows:
6-46                 (1)  License, application, and registration fees shall
6-47     be collected by the commissioner and deposited with the
6-48     comptroller.  Fees shall be sufficient to cover administrative
6-49     costs and may not be subject to refund.  Fees shall be as follows:
6-50                       (A)(i)  the initial fee for a driver education
6-51     school license is $1,000 plus $850 for each branch location;
6-52                             (ii)  the initial fee for a driving safety
6-53     school license is an appropriate amount established by the agency
6-54     [board] not to exceed $200; and
6-55                             (iii)  the initial fee for a course
6-56     provider license is an appropriate amount established by the agency
6-57     [board] not to exceed $2,000, except that this fee may be waived by
6-58     the agency if revenue received by the agency from the course
6-59     provider is sufficient to fund the cost of licensing the course
6-60     provider;
6-61                       (B)  the annual renewal fee for a course
6-62     provider, driving safety school, driver education school, and
6-63     branch school is an appropriate amount established by the agency
6-64     [board] not to exceed $200, but may be waived by the agency if
6-65     revenue generated by the issuance of uniform certificates of
6-66     completion and driver education certificates is sufficient to fund
6-67     the cost of administering this Act and Subchapter B, Chapter 543,
6-68     Transportation Code;
6-69                       (C)  the fee for a change of address of a driver
 7-1     education school is $180 and of a driving safety school or course
 7-2     provider is $50;
 7-3                       (D)  the fee for a change of name of:
 7-4                             (i)  a driver education school or course
 7-5     provider or an owner of a driver education school or course
 7-6     provider is $100; and
 7-7                             (ii)  a driving safety school or owner of a
 7-8     driving safety school is $50;
 7-9                       (E)  the application fee for each additional
7-10     driver education or driving safety course at a school is $25;
7-11                       (F)  the application fee for each director is
7-12     $30, and for each assistant director, or administrative staff
7-13     member is $15;
7-14                       (G)  each application for approval of a driving
7-15     safety course that has not been evaluated by the agency [board]
7-16     shall be accompanied by a nonrefundable fee of $9,000;
7-17                       (H)  each application for an original driver
7-18     education or driving safety instructor's license shall be
7-19     accompanied by a processing fee of $50 and an annual license fee of
7-20     $25, except that the commissioner may not collect the processing
7-21     fee from an applicant for a driver education instructor license who
7-22     is currently teaching a driver education course in a public school
7-23     in this state; and
7-24                       (I)  the fee for a duplicate license, which may
7-25     be issued if the original is lost or destroyed and an affidavit of
7-26     that fact is filed with the agency, shall be set by the agency
7-27     [board].
7-28                 (3)  The commissioner shall periodically review and
7-29     recommend adjustments in the level of fees to the agency [board]
7-30     and legislature.
7-31                 (4)  The fee for an investigation of a school or course
7-32     provider to resolve a complaint filed against the school or course
7-33     provider shall be set by the commissioner [and approved by the
7-34     board].  The complaint investigation fee may be charged only if:
7-35                       (A)  the complaint could not have been resolved
7-36     solely by telephone or written correspondence;
7-37                       (B)  a representative of the agency visited the
7-38     school or course provider as a part of the complaint resolution
7-39     process; and
7-40                       (C)  the school or course provider is found to be
7-41     at fault.
7-42                 (7)  Duplicate uniform certificates of completion shall
7-43     be issued by the agency.  An appropriate fee for issuing duplicate
7-44     certificates shall be determined by agency [board] rule.
7-45                 (8)  A public school district is exempt from license,
7-46     application, and registration fees.
7-47           SECTION 8.  Subsection (c), Section 13, Texas Driver and
7-48     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
7-49     Civil Statutes), is amended to read as follows:
7-50           (c)  The cost of administration of this Act shall be included
7-51     in the state budget allowance for the agency [board].
7-52           SECTION 9.  Subdivisions (1) and (4), Subsection (d), Section
7-53     13,  Texas Driver and Traffic Safety Education Act (Article
7-54     4413(29c), Vernon's Texas Civil Statutes), are amended to read as
7-55     follows:
7-56                 (1)  The commissioner, on review of an application for
7-57     a driver education school, driving safety school, or course
7-58     provider license that is submitted in accordance with this Act and
7-59     that meets the requirements of this Act, shall issue a license to
7-60     the applicant.  Each license shall be in a form determined by the
7-61     commissioner [and approved by the board] and shall show in a clear
7-62     and conspicuous manner at least the following:
7-63                       (A)  the date of issuance, effective date, and
7-64     term of approval;
7-65                       (B)  the name and address of the school or course
7-66     provider;
7-67                       (C)  the authority for approval and conditions of
7-68     approval;
7-69                       (D)  the signature of the commissioner; and
 8-1                       (E)  any other fair and reasonable
 8-2     representations that are consistent with this Act and considered
 8-3     necessary by the commissioner.
 8-4                 (4)  At least 30 days before the expiration of a driver
 8-5     education school, driving safety school, or course provider
 8-6     license, the school or course provider shall forward to the
 8-7     commissioner an application for renewal.  The commissioner may
 8-8     reexamine a driver education school's premises.  The commissioner
 8-9     shall renew or cancel the driver education school, driving safety
8-10     school, or course provider license.  If a school or course provider
8-11     fails to file a complete application for renewal at least 30 days
8-12     before the expiration date of the driver education school, driving
8-13     safety school, or course provider license, the school or course
8-14     provider shall pay as a condition of renewal and in addition to any
8-15     annual renewal fee a late renewal fee in an amount established by
8-16     agency [board] rule of at least $100, subject to Subsection (b) of
8-17     this section.
8-18           SECTION 10.  Subdivision (2), Subsection (g), Section 13,
8-19     Texas Driver and Traffic Safety Education Act (Article 4413(29c),
8-20     Vernon's Texas Civil Statutes), is amended to read as follows:
8-21                 (2)  A driving safety school, or a public school
8-22     district that teaches driver education, is not required to post a
8-23     surety bond.
8-24           SECTION 11.  Subsection (e), Section 13A, Texas Driver and
8-25     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
8-26     Civil Statutes), as added by Section 16, Chapter 1009, Acts of the
8-27     74th Legislature, Regular Session, 1995, is amended to read as
8-28     follows:
8-29           (e)  The agency [board] may adopt additional rules to ensure
8-30     integrity of the course and enhance program quality.
8-31           SECTION 12.  Subsection (c), Section 15, Texas Driver and
8-32     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
8-33     Civil Statutes), is amended to read as follows:
8-34           (c)  A driver education instructor license shall be carried
8-35     by the instructor at all times while instructing driver education
8-36     courses.  A driving safety instructor license shall be carried by
8-37     the instructor at all times while instructing driving safety
8-38     courses.  Each license shall be signed by the commissioner and
8-39     issued under the seal of the agency [board].
8-40           SECTION 13.  Subsections (a), (b), (c), and (d), Section 15A,
8-41     Texas Driver and Traffic Safety Education Act (Article 4413(29c),
8-42     Vernon's Texas Civil Statutes), are amended to read as follows:
8-43           (a)  The [With approval of the board, the] commissioner shall
8-44     establish standards for certification of professional and
8-45     paraprofessional personnel who conduct driver education programs in
8-46     driver education schools.
8-47           (b)  A driver education instructor license may not be issued
8-48     authorizing a person to teach or give driver education in-car
8-49     training unless the person has successfully completed six semester
8-50     hours of driver and traffic safety education or a program of study
8-51     in driver education approved by the agency [board] from an approved
8-52     driver education school.  A person holding a driver education
8-53     instructor license authorizing in-car training may be approved to
8-54     assist classroom instructors, or in an emergency may be approved to
8-55     substitute for classroom instructors under rules established by the
8-56     agency, in the classroom phase of driver education if the person
8-57     successfully completes the additional three semester hours of
8-58     training required for a classroom instructor or a program of study
8-59     in driver education approved by the agency [board].
8-60           (c)  A driver education instructor license may not be issued
8-61     authorizing a person to teach or give classroom driver education
8-62     training unless the person:
8-63                 (1)  has completed nine semester hours of driver and
8-64     traffic safety education or a program of study in driver education
8-65     approved by the agency [board] from an approved driver education
8-66     school; and
8-67                 (2)  holds a bachelor's degree [teaching certificate
8-68     and any additional certification required to teach driver
8-69     education].
 9-1           (d)  A driver education instructor who has completed the
 9-2     educational requirements for a classroom driver education
 9-3     instructor under Subsection (c)(1) of this section may be approved
 9-4     to teach instructor training classes after successfully completing
 9-5     a supervising instructor development program consisting of at least
 9-6     six additional semester hours or a program of study in driver
 9-7     education approved by the agency [board] that includes
 9-8     administering driver education programs and supervising and
 9-9     administering traffic safety education.
9-10           SECTION 14.  The Texas Driver and Traffic Safety Education
9-11     Act (Article 4413(29c), Vernon's Texas Civil Statutes) is amended
9-12     by adding Section 16A to read as follows:
9-13           Sec. 16A.  SUBPOENAS.  (a)  The commissioner may issue a
9-14     subpoena or subpoena duces tecum for purposes of:
9-15                 (1)  conducting an investigation or contested
9-16     proceeding related to:
9-17                       (A)  alleged misconduct by a person or school
9-18     regulated by this Act; or
9-19                       (B)  an alleged violation of this Act or another
9-20     law related to driver education, driver training, or driving safety
9-21     education;
9-22                 (2)  issuing, suspending, restricting, revoking, or
9-23     canceling a license authorized by this Act; or
9-24                 (3)  denying or granting an application for a license
9-25     under this Act.
9-26           (b)  Failure to timely comply with a subpoena issued under
9-27     this section is a ground for:
9-28                 (1)  disciplinary action by the agency; and
9-29                 (2)  the denial of a license application.
9-30           SECTION 15.  Subsection (c), Section 18, Texas Driver and
9-31     Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
9-32     Civil Statutes), is amended to read as follows:
9-33           (c)  On filing of the lawsuit, citation shall be served on
9-34     the commissioner, who shall cause to be made a complete record of
9-35     all proceedings had before the commissioner and certify a copy of
9-36     the proceedings to the court.  Trial before the court shall be on
9-37     the basis of the record made before the commissioner, and the court
9-38     shall make its decision based on the record.  The commissioner's
9-39     decision shall be affirmed by the court if the court finds
9-40     substantial evidence in the record to justify the decision, unless
9-41     the court finds the denial of the license to be:
9-42                 (1)  arbitrary and capricious;
9-43                 (2)  in violation of the constitution or laws of the
9-44     United States or this state; or
9-45                 (3)  in violation of rules adopted by the agency
9-46     [board] under this Act.
9-47           SECTION 16.  Section 29.902, Education Code, is amended to
9-48     read as follows:
9-49           Sec. 29.902.  DRIVER EDUCATION.  (a)  The agency shall
9-50     develop a program of organized instruction in driver education and
9-51     traffic safety for public school students consistent with the Texas
9-52     Driver and Traffic Safety Education Act (Article 4413(29c),
9-53     Vernon's Texas Civil Statutes).  A student who will be 15 years of
9-54     age or older before a driver education and traffic safety course
9-55     ends may enroll in the course.
9-56           (b)  The agency shall establish standards for the
9-57     certification of professional and paraprofessional personnel who
9-58     conduct the programs in the public schools consistent with the
9-59     Texas Driver and Traffic Safety Education Act (Article 4413(29c),
9-60     Vernon's Texas Civil Statutes).
9-61           SECTION 17.  Section 521.204, Transportation Code, is amended
9-62     to read as follows:
9-63           Sec. 521.204.  RESTRICTIONS ON MINOR.  The department may
9-64     issue a Class C driver's license to an applicant under 18 years of
9-65     age only if the applicant:
9-66                 (1)  is 16 years of age or older;
9-67                 (2)  has submitted to the department a driver education
9-68     certificate issued under Section 9A, Texas Driver and Traffic
9-69     Safety Education Act (Article 4413(29c), Vernon's Texas Civil
 10-1    Statutes), that states that the person has completed and passed a
 10-2    driver education course approved by the department under Section
 10-3    521.205 or by the Texas Education Agency;
 10-4                (3)  has obtained a high school diploma or its
 10-5    equivalent or is a student:
 10-6                      (A)  enrolled in a public school, home school, or
 10-7    private school who attended school for at least 90 percent of the
 10-8    [80] days classes were offered at the school in the fall or spring
 10-9    semester preceding the date of the driver's license application; or
10-10                      (B)  who has been enrolled for at least 45 days,
10-11    and is enrolled as of the date of the application, in a program to
10-12    prepare persons to pass the high school equivalency exam; and
10-13                (4)  has passed the examination required by Section
10-14    521.161.
10-15          SECTION 18.  Subsection (a), Section 521.222, Transportation
10-16    Code, is amended to read as follows:
10-17          (a)  The department or a driver education school licensed
10-18    under the Texas Driver and Traffic Safety Education Act (Article
10-19    4413(29c), Vernon's Texas Civil Statutes) may issue an instruction
10-20    permit, including a Class A or Class B driver's license instruction
10-21    permit, to a person who:
10-22                (1)  is 15 years of age or older but under 18 years of
10-23    age;
10-24                (2)  has, with regard to [satisfactorily completed and
10-25    passed the classroom phase of] an approved driver education course,
10-26    which may be a course approved under Section 521.205:
10-27                      (A)  satisfactorily completed and passed the
10-28    classroom phase of the course if the classroom and laboratory
10-29    phases of the course are conducted successively; or
10-30                      (B)  satisfactorily completed six hours of
10-31    classroom instruction regarding driving laws and procedures if the
10-32    classroom and laboratory phases of the course are conducted
10-33    concurrently;
10-34                (3)  meets the requirements imposed under Section
10-35    521.204(3); and
10-36                (4)  has passed each examination required under Section
10-37    521.161 other than the driving test.
10-38          SECTION 19.  Subchapter K, Chapter 521, Transportation Code,
10-39    is amended by adding Section 521.2225 to read as follows:
10-40          Sec. 521.2225.  TEMPORARY INSTRUCTION PERMIT.  (a)  A driver
10-41    education school licensed under the Texas Driver and Traffic Safety
10-42    Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)
10-43    may issue, as an instruction permit under Section 521.222, the
10-44    instruction permit portion of a driver education certificate issued
10-45    under Section 9A, Texas Driver and Traffic Safety Education Act
10-46    (Article 4413(29c), Vernon's Texas Civil Statutes), to a person
10-47    who:
10-48                (1)  is 15 years of age or older but under 18 years of
10-49    age;
10-50                (2)  has satisfactorily completed and passed the
10-51    classroom phase of an approved driver education course or has
10-52    enrolled in an approved driver education course of at least 32
10-53    hours in which the classroom and laboratory phases are conducted
10-54    concurrently;
10-55                (3)  has obtained a high school diploma or its
10-56    equivalent or is a student:
10-57                      (A)  enrolled in a public school, home school, or
10-58    private school who attended school for at least 90 percent of the
10-59    days classes were offered at the school in the fall or spring
10-60    semester preceding the date of application; or
10-61                      (B)  who has been enrolled for at least 45 days
10-62    and is enrolled as of the date of the application in a program to
10-63    prepare persons to pass the high school equivalency exam; and
10-64                (4)  has passed each examination required under Section
10-65    521.161 other than the driving test.
10-66          (b)  Notwithstanding Section 521.271, an instruction permit
10-67    issued under this section expires on the 45th day after the date of
10-68    issuance.
10-69          (c)  A driver education school that issues, as an instruction
 11-1    permit under Section 521.222, the instruction permit portion of a
 11-2    driver education certificate shall notify the Texas Education
 11-3    Agency.  The agency shall maintain the information in the database
 11-4    required by Section 9A(b), Texas Driver and Traffic Safety
 11-5    Education Act (Article 4413(29c), Vernon's Texas Civil Statutes).
 11-6          SECTION 20.  Subsection (a), Section 543.111, Transportation
 11-7    Code, is amended to read as follows:
 11-8          (a)  The commissioner of education [State Board of Education]
 11-9    shall enter into a memorandum of understanding with the Texas
11-10    Department of Insurance for the interagency development of a
11-11    curriculum for driving safety courses.
11-12          SECTION 21.  Subsection (c), Section 543.112, Transportation
11-13    Code, is amended to read as follows:
11-14          (c)  The Texas Education Agency shall issue duplicate uniform
11-15    certificates of course completion.  The agency [State Board of
11-16    Education] by rule shall determine the amount of the fee to be
11-17    charged for issuance of a duplicate certificate.
11-18          SECTION 22.  Section 5, Texas Driver and Traffic Safety
11-19    Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
11-20    is repealed.
11-21          SECTION 23.  This Act takes effect September 1, 1999.
11-22          SECTION 24.  The importance of this legislation and the
11-23    crowded condition of the calendars in both houses create an
11-24    emergency and an imperative public necessity that the
11-25    constitutional rule requiring bills to be read on three several
11-26    days in each house be suspended, and this rule is hereby suspended.
11-27                                 * * * * *