SRC-CTC H.B. 1985 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1985
By: Solis, Jim (Truan)
Education
5/8/2001
Engrossed


DIGEST AND PURPOSE 

In 1972, the Texas Legislature enacted the Texas Proprietary School Act to
provide protection for students in proprietary schools and to provide
certification and regulation of the schools.   Because of changes that have
occurred over the past 30 years there is a need to update the Act to better
protect the students.  H.B. 1985 makes revisions to the law governing the
regulation of proprietary schools.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 132.001(2), (5), and (11), Education Code, to
redefine "owner," "agency administrator," and "commission." 

SECTION 2.  Amends the heading to Section 132.021, Education Code, to read
as follows: 

Sec. 132.021.  TEXAS WORKFORCE COMMISSION.

SECTION 3.  Amends Section 132.056(d), Education Code, to require the Texas
Workforce Commission (commission) to reexamine the premises of the school
as frequently as the commission considers necessary and renew, revoke, or
deny renewal of the school's certificate of approval. 

SECTION 4.  Amends Section 132.060(a), Education Code, to require the bond
to be in the penal sum of $5,000, or a multiple of $5,000 that is not
greater than $35,000 for a certificate of approval issued for a period that
begins in the fiscal year ending August 31, 2002, and $50,000 for a
certificate of approval issued for a period that begins on or after
September 1, 2002, rather than $25,000. 

SECTION 5.  Amends Section 132.061(b), Education Code, to set forth the
minimum refund of tuition and fees for a student who terminates or
withdraws from a residence course of not more than 12 months in length.
Makes a nonsubstantive change. 

SECTION 6.  Amends the heading to Section 132.064, Education Code, to read
as follows: 

Sec. 132.064.  NONQUALIFICATION AS SMALL PROPRIETARY SCHOOL.

SECTION 7.  Amends Section 132.151, Education Code, to prohibit a person
from soliciting prospective students for or on behalf of a proprietary
school without being registered as a representative of the proprietary
school as required by this chapter. 

SECTION 8.  Amends Section 132.201, Education Code, by amending Subsection
(e) and adding Subsection (i), as follows: 

 (e) Increases the fee for an investigation at a proprietary school to
resolve a complaint filed against the school from $400 to $600.   

(i) Authorizes the commission to charge each proprietary school a fee for
the cost of a service that collects, analyzes, and reports student-level
data in order to assess the outcome of students who attend proprietary
schools.  Requires the total amount of the fees charged under this
subsection to not exceed the cost of the service to the commission. 

SECTION 9.  Amends Section 132.242(e), Education Code, to increase the
maximum amount of the refunds required to be paid from the proprietary
school tuition protection fund from $25,000 to $50,000. 

SECTION 10.  (a) Effective date: September 1, 2001.

 (b), (c), and (d) Make application of this Act prospective.