By Jackson                                            S.B. No. 1205
         77R6615 KEL-D                           
                                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:  ADVANCED 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 40 classroom hours or
1-12     less;
1-13                 (2)  the course is completed within five calendar days;
1-14                 (3)  the fee for the course is less than $1,000;
1-15                 (4)  the course is designed to teach:
1-16                       (A)  advanced knowledge or skills necessary to
1-17     maintain or enhance a person's competency or performance in a
1-18     business, trade, or occupation; or
1-19                       (B)  recreational or avocational subjects;
1-20                 (5)  no credits or units are awarded on completion of
1-21     the course toward the completion of another course of instruction
1-22     of more than 40 classroom hours;
1-23                 (6)  the person offering the course makes available to
1-24     registrants a written description of the course content not later
 2-1     than the 14th day before the date the course begins;
 2-2                 (7)  for a course in which the instructor or the
 2-3     instructor's qualifications are different from the instructor or
 2-4     the instructor's qualifications stated in any advertising,
 2-5     publicity, or solicitation for the course, the person offering the
 2-6     course:
 2-7                       (A)  offers in writing a refund of the course fee
 2-8     to any registrant who, before the date the course begins, notifies
 2-9     the person that the registrant elects not to attend and requests a
2-10     refund; and
2-11                       (B)  for the three-year period following the date
2-12     the course is concluded, maintains records sufficient to identify
2-13     the differences between advertised instructors and their
2-14     qualifications and actual instructors and their qualifications; and
2-15                 (8)  for the three-year period following the date the
2-16     course is concluded, the person offering the course maintains a
2-17     record of:
2-18                       (A)  attendance of registrants;
2-19                       (B)  fees paid by registrants; and
2-20                       (C)  refunds paid to registrants.
2-21           (b)  A general refund policy that provides for a full refund
2-22     of fees at any time before the date the course begins satisfies the
2-23     requirements of Subsection (a)(7)(A), if the general refund policy
2-24     is communicated in writing to registrants or potential registrants
2-25     before that date.
2-26           (c)  If within the three-year record retention period the
2-27     commission requests the production of records required under
 3-1     Subsection (a), a failure to produce the records for the commission
 3-2     by the person claiming an exemption for the course creates a
 3-3     rebuttable presumption that the course is not exempt from this
 3-4     chapter.
 3-5           (d)  A person engaged exclusively in offering courses of
 3-6     instruction that are exempt under this section is exempt from this
 3-7     chapter and not within the definition of "proprietary school."
 3-8           SECTION 2. The change in law made by this Act applies only to
 3-9     a course of instruction beginning on or after the effective date of
3-10     this Act.  A course of instruction  beginning before the effective
3-11     date of this Act is governed by the law in effect when the course
3-12     began, and the former law is continued in effect for that purpose.
3-13           SECTION 3. This Act takes effect September 1, 2001.