SRC-MKV S.B. 1205 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1205
By: Jackson
Education
7/9/2001
Enrolled


DIGEST AND PURPOSE 

Section 132.001 of the Texas Proprietary School Act defines the term
"proprietary school" to mean "any business enterprise...that maintains a
place of business within this state, or that solicits business within this
state..." and that offers "a course or courses of instruction or
study...for the purpose of preparing a person for a new field of endeavor
in a business, trade, technical, or industrial occupation or for
avocational or personal improvement."  Although the definition of the term
"proprietary school" in the regulations of the Texas Workforce Commission
(TWC)  is consistent with the statutory definition, TWC  further defines
"seminars and workshops" as "a course of instruction that enhances a
student's career, in addition to a program that teaches skills and
fundamental knowledge required for a state occupation."  S.B. 1205 makes it
clear that a short course of instruction of 24 classroom hours or less, and
for which the tuition or fee is less than $500,  is exempt from regulation
under Section 132.001 of the Education Code provided that the course meets
certain conditions. 

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 Chapter 132A, Education Code, by adding Sections 132.003
and 132.004, as follows: 

Sec. 132.003.  COURSE EXEMPTION: DEVELOPMENT OF CAREER SKILLS; RECREATIONAL
OR AVOCATIONAL SUBJECTS.  (a) Provides that, except as provided by
Subsection (f), a course of instruction is exempt from this chapter under
certain conditions. 

(b) Provides that a general refund policy that provides for a full refund
of fees at any time before the date the course begins satisfies the
requirements of Subsection (a)(7)(A), if the general refund policy is made
available in writing to registrants or potential registrants as required by
Subsection (a)(5). 

(c) Provides that if within the required three-year record retention period
the Texas Employment Commission (commission) requests the production of
records required under Subsection (a), a failure to produce the records for
the commission by the person claiming an exemption for the course creates a
rebuttable presumption that the course is not exempt from this  chapter. 

(d) Provides that a course of instruction that is otherwise exempt under
Section 132.002 is not required to comply with the requirements of this
section in order to qualify for an exemption from the definition of
"proprietary school." 

(e) Provides that in case of any conflict between the refund policy
requirements of this  section and the refund policy requirements of Section
132.061, this section prevails. 

(f) Provides that a course of instruction is not exempt under this section
if the  course is designed to teach or is represented by the person
offering the course as teaching knowledge of building, electrical,
plumbing, mechanical, fire, or other similar technical codes applicable to
the construction, remodeling, or repair of a home, building, or any other
structure or improvement to real property in this state. 

Sec. 132.004.   EXCLUSIVE OFFERING OF EXEMPTED COURSES BY BUSINESS
ENTERPRISE.  Provides that a business enterprise that offers exclusively
courses of instruction that are exempt under Section 132.002 or 132.003 is
exempt from this chapter. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date: September 1, 2001.