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