1-1     By:  Jackson                                          S.B. No. 1205
 1-2           (In the Senate - Filed March 7, 2001; March 8, 2001, read
 1-3     first time and referred to Committee on Education; March 29, 2001,
 1-4     reported adversely, with favorable Committee Substitute by the
 1-5     following vote:  Yeas 8, Nays 0; March 29, 2001, sent to printer.)
 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1205                  By:  Nelson
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the exemption of certain courses of instruction from
1-10     proprietary school certification.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subchapter A, Chapter 132, Education Code, is
1-13     amended by adding Section 132.003 to read as follows:
1-14           Sec. 132.003.  EXEMPTION:  ENHANCED CAREER SKILLS OR
1-15     RECREATIONAL OR AVOCATIONAL COURSES.  (a)  A course of instruction
1-16     is exempt from this chapter and is not within the definition of
1-17     "proprietary school" if:
1-18                 (1)  the length of the course is 24 classroom hours or
1-19     less;
1-20                 (2)  the fee for the course is less than $500;
1-21                 (3)  the course is designed to teach:
1-22                       (A)  knowledge or skills to maintain or enhance a
1-23     person's competency or performance in a business, trade, or
1-24     occupation; or
1-25                       (B)  recreational or avocational subjects;
1-26                 (4)  no credits or units are awarded on completion of
1-27     the course toward the completion of another course of instruction
1-28     of more than 24 classroom hours;
1-29                 (5)  the person offering the course makes available to
1-30     registrants a written description of the course content and refund
1-31     policy not later than the 14th day before the date the course
1-32     begins;
1-33                 (6)  for a course in which the instructor or the
1-34     instructor's qualifications are different from the instructor or
1-35     the instructor's qualifications stated in any advertising,
1-36     publicity, or solicitation for the course, the person offering the
1-37     course:
1-38                       (A)  offers in writing a refund of the course fee
1-39     to any registrant who, before the date the course begins, notifies
1-40     the person that the registrant elects not to attend and requests a
1-41     refund; and
1-42                       (B)  for the three-year period following the date
1-43     the course is concluded, maintains records sufficient to identify
1-44     the differences between advertised instructors and their
1-45     qualifications and actual instructors and their qualifications; and
1-46                 (7)  for the three-year period following the date the
1-47     course is concluded, the person offering the course maintains a
1-48     record of:
1-49                       (A)  attendance of registrants;
1-50                       (B)  fees paid by registrants; and
1-51                       (C)  refunds paid to registrants.
1-52           (b)  A general refund policy that provides for a full refund
1-53     of fees at any time before the date the course begins satisfies the
1-54     requirements of Subsection (a)(6)(A) if the general refund policy
1-55     is made available in writing to registrants or potential
1-56     registrants not later than the 14th day before the date the course
1-57     begins.
1-58           (c)  If within the three-year record retention period the
1-59     commission requests the production of records required under
1-60     Subsection (a), a failure to produce the records for the commission
1-61     by the person claiming an exemption for the course creates a
1-62     rebuttable presumption that the course is not exempt from this
1-63     chapter.
1-64           (d)  A course of instruction that is otherwise exempt under
 2-1     Section 132.002 is not required to comply with the requirements of
 2-2     this section in order to qualify for an exemption from the
 2-3     definition of "proprietary school."
 2-4           SECTION 2.  The change in law made by this Act applies only
 2-5     to a course of instruction beginning on or after the effective date
 2-6     of this Act.  A course of instruction beginning before the
 2-7     effective date of this Act is governed by the law in effect when
 2-8     the course began, and the former law is continued in effect for
 2-9     that purpose.
2-10           SECTION 3.  This Act takes effect September 1, 2001.
2-11                                  * * * * *