78R6517 KSD-D

By:  Zedler                                                       H.B. No. 2832



A BILL TO BE ENTITLED

AN ACT

relating to exempting certain institutions offering religious 
education from state regulation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Subchapter G, Chapter 61, Education Code, is 
amended by adding Section 61.3031 to read as follows:
	Sec. 61.3031.  EXEMPTION FOR CERTAIN RELIGIOUS 
INSTITUTIONS.  (a)  The board shall grant an exemption under this 
section to an institution that applies to the board in accordance 
with board rules, meets the eligibility requirements prescribed by 
Subsection (b), and complies with Subsection (c).  An institution 
that receives an exemption under this section is exempt from this 
subchapter and from any other regulation by an agency or political 
subdivision of this state with respect to the content or character 
of the educational programs of the institution.
	(b)  To be eligible for an exemption under this section, an 
institution must:
		(1)  be organized as or operated by a nonprofit 
corporation under the Texas Non-Profit Corporation Act (Article 
1396-1.01 et seq., Vernon's Texas Civil Statutes);
		(2)  be operated as an independent institution or in 
conjunction with a local organization whose primary purpose is to 
maintain and operate a church, synagogue, temple, mosque, or other 
place of worship;
		(3)  be under the direction of a stewardship board or 
corporate board of directors;
		(4)  offer degrees solely for the purpose of 
ministerial and religious training;
		(5)  include in the institution's course catalog a 
statement describing the religious training purpose or purposes of 
the institution;
		(6)  ensure that each course for which the institution 
grants credit toward a degree has a religious purpose that is 
described in the institution's course catalog; and
		(7)  ensure that the course titles, curriculum content, 
and objectives of the institution's degree programs reflect a 
strictly religious purpose.
	(c)  The chief academic officer of an institution seeking an 
exemption under this section shall:
		(1)  meet with the staff of the board to discuss the 
requirements and procedures for receiving an exemption under this 
section; and
		(2)  provide to the board in the manner prescribed by 
the board the following information to be used by the board to 
verify the institution's compliance with the eligibility 
requirements prescribed by Subsection (b):
			(A)  a copy of the institution's current course 
catalog and any other official publication that describes the 
purpose of the institution and its programs; and
			(B)  any other information required by the board 
to help the board determine the institution's eligibility for the 
exemption.
	(d)  An institution that receives an exemption under this 
section shall place the following statement in a prominent position 
on the front page of any general bulletin or course catalog or 
schedule of the institution:  "The Texas Higher Education 
Coordinating Board has granted the (name of institution) a 
religious exemption that exempts the institution and its programs 
from regulation by an agency or political subdivision of this 
state.  Any person seeking information regarding the state law that 
authorizes the exemption or the applicability of that law to this 
institution may contact the Texas Higher Education Coordinating 
Board at P.O. Box 12788, Austin, TX, 78711-2788."
	(e)  Not later than September 1 of each even-numbered year, 
an institution that receives an exemption under this section shall 
submit a report to the board in the form prescribed by the board 
regarding the institution's continued compliance with the 
eligibility requirements prescribed by Subsection (b).
	(f)  An institution that receives an exemption under this 
section may not represent that the institution is accredited unless 
the institution is accredited by an appropriate accrediting 
institution or  association recognized by the board.
	(g)  Except as provided by Subsection (h), the board shall 
suspend or revoke an exemption granted to an institution by the 
board for at least eight weeks if the board finds that:
		(1)  the institution has failed to maintain compliance 
with one or more of the eligibility requirements prescribed by 
Subsection (b);
		(2)  the institution has provided false information to 
the board; or 
		(3)  an advertisement or other representation made on 
behalf of and sanctioned by the institution is deceptive or 
misleading.
	(h)  The board may suspend or revoke an exemption under 
Subsection (g)(1) only if:
		(1)  the board has notified the institution in writing 
regarding the institution's failure to maintain compliance with one 
or more of the eligibility requirements prescribed by Subsection 
(b); and
		(2)  the board determines that the institution has 
failed to comply within a reasonable time after receipt of the 
notice under Subdivision (1).
	(i)  The board shall adopt rules for the administration of 
this section.
	SECTION 2.  The Texas Higher Education Coordinating Board 
shall adopt initial rules for the administration of Section 
61.3031, Education Code, as added by this Act, as soon as 
practicable after the effective date of this Act.  The coordinating 
board may adopt those initial rules in the manner provided by law 
for emergency rules.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.