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.