By:  Jackson                                          S.B. No. 1205
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the exemption of certain courses of instruction from
 1-3     proprietary school certification.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 132, Education Code, is
 1-6     amended by adding Section 132.003 to read as follows:
 1-7           Sec. 132.003.  EXEMPTION:  ENHANCED CAREER SKILLS OR
 1-8     RECREATIONAL OR AVOCATIONAL COURSES.  (a)  A course of instruction
 1-9     is exempt from this chapter and is not within the definition of
1-10     "proprietary school" if:
1-11                 (1)  the length of the course is 24 classroom hours or
1-12     less;
1-13                 (2)  the fee for the course is less than $500;
1-14                 (3)  the course is designed to teach:
1-15                       (A)  knowledge or skills to maintain or enhance a
1-16     person's competency or performance in a business, trade, or
1-17     occupation; or
1-18                       (B)  recreational or avocational subjects;
1-19                 (4)  no credits or units are awarded on completion of
1-20     the course toward the completion of another course of instruction
1-21     of more than 24 classroom hours;
1-22                 (5)  the person offering the course makes available to
1-23     registrants a written description of the course content and refund
1-24     policy not later than the 14th day before the date the course
1-25     begins;
 2-1                 (6)  for a course in which the instructor or the
 2-2     instructor's qualifications are different from the instructor or
 2-3     the instructor's qualifications stated in any advertising,
 2-4     publicity, or solicitation for the course, the person offering the
 2-5     course:
 2-6                       (A)  offers in writing a refund of the course fee
 2-7     to any registrant who, before the date the course begins, notifies
 2-8     the person that the registrant elects not to attend and requests a
 2-9     refund; and
2-10                       (B)  for the three-year period following the date
2-11     the course is concluded, maintains records sufficient to identify
2-12     the differences between advertised instructors and their
2-13     qualifications and actual instructors and their qualifications; and
2-14                 (7)  for the three-year period following the date the
2-15     course is concluded, the person offering the course maintains a
2-16     record of:
2-17                       (A)  attendance of registrants;
2-18                       (B)  fees paid by registrants; and
2-19                       (C)  refunds paid to registrants.
2-20           (b)  A general refund policy that provides for a full refund
2-21     of fees at any time before the date the course begins satisfies the
2-22     requirements of Subsection (a)(6)(A) if the general refund policy
2-23     is made available in writing to registrants or potential
2-24     registrants not later than the 14th day before the date the course
2-25     begins.
2-26           (c)  If within the three-year record retention period the
 3-1     commission requests the production of records required under
 3-2     Subsection (a), a failure to produce the records for the commission
 3-3     by the person claiming an exemption for the course creates a
 3-4     rebuttable presumption that the course is not exempt from this
 3-5     chapter.
 3-6           (d)  A course of instruction that is otherwise exempt under
 3-7     Section 132.002 is not required to comply with the requirements of
 3-8     this section in order to qualify for an exemption from the
 3-9     definition of "proprietary school."
3-10           SECTION 2.  The change in law made by this Act applies only
3-11     to a course of instruction beginning on or after the effective date
3-12     of this Act.  A course of instruction beginning before the
3-13     effective date of this Act is governed by the law in effect when
3-14     the course began, and the former law is continued in effect for
3-15     that purpose.
3-16           SECTION 3.  This Act takes effect September 1, 2001.