1-1 AN ACT 1-2 relating to the exemption of certain business enterprises and 1-3 courses of instruction from 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 Sections 132.003 and 132.004 to read as follows: 1-7 Sec. 132.003. COURSE EXEMPTION: DEVELOPMENT OF CAREER 1-8 SKILLS; RECREATIONAL OR AVOCATIONAL SUBJECTS. (a) Except as 1-9 provided by Subsection (f), a course of instruction is exempt from 1-10 this chapter 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) on completion of the course, there is not an award 1-20 of any credits or units toward the completion of another course of 1-21 instruction 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 any 1-24 refund policy not later than the 14th day before the date the 1-25 course begins; 2-1 (6) the person offering the course offers in writing 2-2 as required by Subdivision (5) a refund of the course fee to any 2-3 registrant who: 2-4 (A) completes at least eight classroom hours or 2-5 one-half of the course, whichever is less; 2-6 (B) is dissatisfied with the course; and 2-7 (C) requests a refund and provides in writing to 2-8 the person a reasonable basis for the registrant's dissatisfaction 2-9 not later than the 14th day after the date the course is concluded; 2-10 (7) for a course in which the instructor or the 2-11 instructor's qualifications are different from the instructor or 2-12 the instructor's qualifications stated in any advertising, 2-13 publicity, or solicitation for the course, the person offering the 2-14 course: 2-15 (A) offers in writing as required by Subdivision 2-16 (5) a refund of the course fee to any registrant who, before the 2-17 course begins, notifies the person that the registrant elects not 2-18 to attend and requests a refund; and 2-19 (B) for the three-year period following the date 2-20 the course is concluded, maintains records sufficient to identify 2-21 the differences between advertised instructors and their 2-22 qualifications and actual instructors and their qualifications; and 2-23 (8) for the three-year period following the date the 2-24 course is concluded, the person offering the course maintains a 2-25 record of: 2-26 (A) attendance of registrants; 3-1 (B) fees paid by registrants; and 3-2 (C) refunds paid to registrants. 3-3 (b) A general refund policy that provides for a full refund 3-4 of fees at any time before the course begins satisfies the 3-5 requirements of Subsection (a)(7)(A), if the general refund policy 3-6 is made available in writing to registrants or potential 3-7 registrants as required by Subsection (a)(5). 3-8 (c) If within the three-year record retention period the 3-9 commission requests the production of records required under 3-10 Subsection (a), a failure to produce the records for the commission 3-11 by the person claiming an exemption for the course creates a 3-12 rebuttable legal presumption that the course is not exempt from 3-13 this chapter. 3-14 (d) A course of instruction that is otherwise exempt under 3-15 Section 132.002 is not required to comply with the requirements of 3-16 this section to qualify for an exemption from this chapter. 3-17 (e) In case of any conflict between the refund policy 3-18 requirements of this section and the refund policy requirements of 3-19 Section 132.061, this section prevails. 3-20 (f) A course of instruction is not exempt under this section 3-21 if the course is designed to teach or is represented by the person 3-22 offering the course as teaching knowledge of building, electrical, 3-23 plumbing, mechanical, fire, or other similar technical codes 3-24 applicable to the construction, remodeling, or repair of a home, 3-25 building, or any other structure or improvement to real property in 3-26 this state. 4-1 Sec. 132.004. EXCLUSIVE OFFERING OF EXEMPTED COURSES BY 4-2 BUSINESS ENTERPRISE. A business enterprise that offers exclusively 4-3 courses of instruction that are exempt under Section 132.002 or 4-4 132.003 is exempt from this chapter. 4-5 SECTION 2. Section 132.003, Education Code, as added by this 4-6 Act, applies only to a course of instruction beginning on or after 4-7 the effective date of this Act. A course of instruction beginning 4-8 before the effective date of this Act is governed by the law in 4-9 effect when the course began, and the former law is continued in 4-10 effect for that purpose. 4-11 SECTION 3. This Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1205 passed the Senate on April 4, 2001, by a viva-voce vote; and that the Senate concurred in House amendment on May 24, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1205 passed the House, with amendment, on May 17, 2001, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor