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


Senate Research Center   S.B. 1205
77R6615 KEL-DBy: Jackson
Education
3/26/2001
As Filed


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 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." As proposed, 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 Section 132.003,
as follows: 

Sec. 132.003.  EXEMPTION: ADVANCED CAREER SKILLS OR RECREATIONAL OR
AVOCATIONAL COURSES.  (a) Provides that a course of instruction is exempt
from this chapter and is not within the definition of "proprietary school"
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
communicated in writing to registrants or potential registrants before that
date. 

(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 person engaged exclusively in offering courses of
instruction that are exempt under this section is exempt from this chapter
and not within the definition of "proprietary school." 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date: September 1, 2001.