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


Senate Research CenterC.S.S.B. 1205
2001S0870/2By: Jackson
Education
3/28/2001
Committee Report (Substituted)


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."  C.S.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: ENHANCED 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)(6)(A), if the general refund policy is made
available in writing to registrants or potential registrants not later than
the 14th day before the date the course begins. 

(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." 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date: September 1, 2001.
 

SUMMARY OF COMMITTEE CHANGES

Differs from the original in SECTION 1, as follows:

_(a) Changes the length of a course from 40 classroom hours to 24 classroom
hours and the fee for a course from being less than $1,000 to less than
$500 in order for the course of instruction to be exempt from the
definition of "proprietary school."  Further differs from original by
adding language relating to another reason for exemption from the
definition of "proprietary school" to include a written description of the
refund policy being made available to registrants.   

_(b) Changes the language relating to the general refund policy satisfying
the requirements of Subsection (a)(6)(A) if the policy is made available in
writing to registrants or potential registrants not later than the 14th day
before the date the course begins. 

_(d) Changes the language to provide 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."