Floor Packet Page No. 267                                                   
	
Amend HB 2 by inserting a new appropriately numbered  ARTICLE 
to read as follows:
ARTICLE ___
DRIVER AND TRAFFIC SAFETY EDUCATION
	SECTION __.01.  Section 1001.001, Education Code, is amended 
by amending Subdivisions (2), (3), (4), and (5) and adding 
Subdivision (13-a) to read as follows:
		(2)  "Approved driving safety course" means a driving 
safety course approved by the department [commissioner].
		(3)  "Commission" ["Commissioner"] means the Texas 
Commission of Licensing and Regulation [commissioner of 
education].
		(4)  "Course provider" means an enterprise that:                              
			(A)  maintains a place of business or solicits 
business in this state;     
			(B)  is operated by an individual, association, 
partnership, or corporation; and
			(C)  has received an approval for a driving safety 
course from the department [commissioner] or has been designated by 
a person who has received that approval to conduct business and 
represent the person in this state.
		(5)  "Department" means the Texas Department of 
Licensing and Regulation [Public Safety].
	(13-a)  "Executive director" means the executive director of 
the department.
	SECTION __.02.  Section 1001.002(c), Education Code, is 
amended to read as follows:
	(c)  A driver education course is exempt from this chapter, 
other than Section 1001.055, if the course is:
		(1)  conducted by a vocational driver training school 
operated to train or prepare a person for a field of endeavor in a 
business, trade, technical, or industrial occupation;
		(2)  conducted by a school or training program that 
offers only instruction of purely avocational or recreational 
subjects as determined by the department [commissioner];
		(3)  sponsored by an employer to train its own 
employees without charging tuition;
		(4)  sponsored by a recognized trade, business, or 
professional organization with a closed membership to instruct the 
members of the organization; or
		(5)  conducted by a school regulated and approved under 
another law of this state.
	SECTION __.03.  Sections 1001.003 and 1001.004, Education 
Code, are amended to read as follows:
	Sec. 1001.003.  LEGISLATIVE INTENT REGARDING SMALL 
BUSINESSES.  It is the intent of the legislature that commission 
[agency] rules that affect driver training schools that qualify as 
small businesses be adopted and administered so as to have the least 
possible adverse economic effect on the schools.
	Sec. 1001.004.  COST OF ADMINISTERING CHAPTER.  The cost of 
administering this chapter shall be included in the state budget 
allowance for the department [agency].
	SECTION __.04.  Sections 1001.051 and 1001.052, Education 
Code, are amended to read as follows:
	Sec. 1001.051.  JURISDICTION OVER SCHOOLS.  The department
[agency] has jurisdiction over and control of driver training 
schools regulated under this chapter.
	Sec. 1001.052.  RULES.  The commission [agency] shall adopt 
[and administer] comprehensive rules governing driving safety 
courses, including rules to ensure the integrity of approved 
driving safety courses and enhance program quality.
	SECTION __.05.  The heading to Section 1001.053, Education 
Code, is amended to read as follows:
	Sec. 1001.053.  POWERS AND DUTIES OF DEPARTMENT                         
[COMMISSIONER].                                              
	SECTION __.06.  Section 1001.053(a), Education Code, is 
amended to read as follows:
	(a)  The department [commissioner] shall:              
		(1)  administer [the policies of] this chapter;              
		(2)  enforce minimum standards for driver training 
schools under this chapter; and
		(3)  [adopt and] enforce rules adopted by the 
commission necessary to administer this chapter[; and
		[(4)  visit a driver training school or course provider 
and reexamine the school or course provider for compliance with 
this chapter].
	SECTION __.07.  The heading to Section 1001.054, Education 
Code, is amended to read as follows:
	Sec. 1001.054.  RULES RESTRICTING ADVERTISING [OR             
[COMPETITIVE BIDDING].                                       
	SECTION __.08.  Section 1001.054(c), Education Code, is 
amended to read as follows:
	(c)  The commission [commissioner] by rule may restrict 
advertising by a branch location of a driver training school so that 
the location adequately identifies the primary location of the 
school in a solicitation.
	SECTION __.09.  Section 1001.055, Education Code, is amended 
to read as follows:
	Sec. 1001.055.  DRIVER EDUCATION CERTIFICATES.  (a) The 
department [agency] shall print and supply to each licensed or 
exempt driver education school driver education certificates to be 
used for certifying completion of an approved driver education 
course to satisfy the requirements of Section 521.204(a)(2), 
Transportation Code. The certificates must be numbered serially.
	(b)  The commission [agency] by rule shall provide for the 
design and distribution of the certificates in a manner that, to the 
greatest extent possible, prevents the unauthorized reproduction 
or misuse of the certificates.
	(c)  The department [agency] may charge a fee of not more 
than $4 for each certificate.
	SECTION ___.10.  Subsections (b), (c), (e) and (g), Section 
1001.056, Education Code, are amended to read as follows:
	(b)  The department [agency] shall provide each licensed 
course provider with course completion certificate numbers to 
enable the provider to print and issue [agency-approved] 
department-approved uniform certificates of course completion.  
The certificates must be serial.
	(c)  The department [agency] by rule shall provide for the 
design of the certificates and the distribution of certificate 
numbers in a manner that, to the greatest extent possible, prevents 
the unauthorized production or the misuse of the certificates or 
certificate numbers.
	(e)  The department [agency] may charge a fee of not more 
than $4 for each course completion certificate number.  A course 
provider that supplies a certificate to an operator shall collect 
from the operator a fee equal to the amount of the fee paid to the 
agency for the certificate number.
	(g)  A course provider shall issue a duplicate certificate by 
mail or commercial delivery.  The department [commissioner] by rule 
shall determine the amount of the fee for issuance of a duplicate 
certificate under this subsection.
	SECTION __.11.  Section 1001.057, Education Code, is amended 
to read as follows:
	Sec. 1001.057.  ELECTRONIC TRANSMISSION OF DRIVING SAFETY 
COURSE INFORMATION.  The department [agency] shall investigate 
options to develop and implement procedures to electronically 
transmit information relating to driving safety courses to 
municipal and justice courts.
	SECTION __.12.  Subchapter B, Chapter 1001, Education Code, 
is amended by adding Section 1001.058 to read as follows:
	Sec. 1001.058.  DESIGNATION OF PERSON TO ADMINISTER CHAPTER.  
The executive director may designate a person knowledgeable in the 
administration of regulating driver training schools to administer 
this chapter for the department.
	SECTION __.13.  Sections 1001.101 and 1001.102, Education 
Code, are amended to read as follows:
	Sec. 1001.101.  DRIVER EDUCATION COURSE CURRICULUM AND 
TEXTBOOKS.  The commission [commissioner] by rule shall establish 
the curriculum and designate the textbooks to be used in a driver 
education course.
	Sec. 1001.102.  ALCOHOL AWARENESS INFORMATION.  (a) The 
commission [agency] by rule shall require that information relating 
to alcohol awareness and the effect of alcohol on the effective 
operation of a motor vehicle be included in the curriculum of any 
driver education course or driving safety course.
	(b)  In developing rules under this section, the commission
[agency] shall consult with the Department of Public Safety
[department].
	SECTION __.14.  Sections 1001.103(b), (d), and (e), Education 
Code, are amended to read as follows:
	(b)  The department [agency] shall develop standards for a 
separate school certification and approve curricula for drug and 
alcohol driving awareness programs that include one or more 
courses.  Except as provided by commission [agency] rule, a program 
must be offered in the same manner as a driving safety course.
	(d)  In accordance with Section 461.013(b), Health and 
Safety Code, the department [agency] and the Texas Commission on 
Alcohol and Drug Abuse shall enter into a memorandum of 
understanding for the interagency approval of the required 
curricula.
	(e)  The commission [Notwithstanding Section 1001.056, 
Subchapter D, and Sections 1001.213 and 1001.303, the commissioner] 
may establish fees in connection with the programs under this 
section.  The fees must be in amounts reasonable and necessary to 
administer the department's [agency's] duties under this section.
	SECTION __.15.  Sections 1001.104 and 1001.105, Education 
Code, are amended to read as follows:
	Sec. 1001.104.  HOSPITAL AND REHABILITATION FACILITIES.  (a)  
The department [agency] shall enter into a memorandum of 
understanding with the Texas Department of Assistive and 
Rehabilitative Services [Rehabilitation Commission] and the 
Department of Public Safety [department] for the interagency 
development of curricula and licensing criteria for hospital and 
rehabilitation facilities that teach driver education.
	(b)  The department [agency] shall administer comprehensive 
rules governing driver education courses adopted by mutual 
agreement among the commission [agency], the Texas Department of 
Assistive and Rehabilitative Services [Rehabilitation Commission], 
and the Department of Public Safety [department].
	Sec. 1001.105.  TEXAS DEPARTMENT OF INSURANCE.  The 
commission [agency] shall enter into a memorandum of understanding 
with the Texas Department of Insurance for the interagency 
development of a curriculum for driving safety courses.
	SECTION __.16.  Sections 1001.106(b), (c), and (d), Education 
Code, are amended to read as follows:
	(b)  The commission [commissioner] by rule shall provide 
minimum standards of curriculum relating to operation of vehicles 
at railroad and highway grade crossings.
	(c)  Subchapter F, Chapter 51, Occupations Code, Section 
51.353, Occupations Code, and Section [Sections 1001.454,] 
1001.456 of this code[, and 1001.553] do not apply to a violation of 
this section or a rule adopted under this section.
	(d)  Section 51.352, Occupations Code, and Sections 
[1001.455(a)(6),] 1001.501[, 1001.551, 1001.552,] and 1001.554 of 
this code do not apply to a violation of this section.
	SECTION __.17.  Section 1001.107, Education Code, is amended 
to read as follows:
	Sec. 1001.107.  INFORMATION RELATING TO LITTER PREVENTION.  
(a)  The commission [commissioner] by rule shall require that 
information relating to litter prevention be included in the 
curriculum of each driver education and driving safety course.
	(b)  In developing rules under this section, the commission
[commissioner] shall consult the Department of Public Safety
[department].
	SECTION __.18.  Sections 1001.108(a) and (c), Education Code, 
are amended to read as follows:
	(a)  The commission [commissioner] by rule shall require 
that information relating to anatomical gifts be included in the 
curriculum of each driver education course and driving safety 
course.
	(c)  In developing rules under this section, the commission
[commissioner] shall consult with the Department of Public Safety
[department] and the [Texas] Department of State Health Services.
	SECTION __.19.  Section 1001.151, Education Code, is amended 
to read as follows:
	Sec. 1001.151.  APPLICATION, LICENSE, AND REGISTRATION 
FEES.  (a)  The commission [commissioner] shall establish [collect] 
application, license, and registration fees.  The fees must be in 
amounts sufficient to cover administrative costs and are 
nonrefundable.  The department shall collect the application, 
license, and registration fees.
	(b)  The commission shall establish a fee for:                   
		(1)  an initial driver education school license and [is 
$1,000 plus $850] for each branch location; [.]
		(2)  [(c)  The fee for] an initial driving safety     
school license; [is an appropriate amount established by the 
commissioner not to exceed $200.]
		(3)  [(d)  The fee for] an initial course provider 
license [is an appropriate amount established by the commissioner 
not to exceed $2,000], except that the commission [agency] may 
waive the fee if revenue received from the course provider is 
sufficient to cover the cost of licensing the course provider; [.]
		(4)  the [(e)  The] annual renewal [fee] for a course 
provider, driving safety school, driver education school, or branch 
location [is an appropriate amount established by the commissioner 
not to exceed $200], except that the commission [agency] may waive 
the fee if revenue generated by the issuance of course completion 
certificate numbers and driver education certificates is 
sufficient to cover the cost of administering this chapter and 
Article 45.0511, Code of Criminal Procedure; [.]
		(5)  [(f)  The fee for] a change of address of[:
			[(1)]  a driver education school, [is $180;  and
			[(2)]  a driving safety school, or course 
provider; [is $50.]
		(6)  [(g)  The fee for] a change of name of:          
			(A)  [(1)]  a driver education school or course 
provider or an owner of a driver education school or course provider 
[is $100]; or [and]
			(B)  [(2)]  a driving safety school or owner of a 
driving safety school; [is $50.]
		(7)  [(h)  The application fee for] each additional 
driver education or driving safety course at a driver training 
school; [is $25.]
		(8)  an  [(i)  The] application of a [fee for:
			[(1)  each] director, [is $30; and  
			[(2)  each] assistant director, or administrative 
staff member; and [is $15.]
		(9)  an [(j)  Each] application for approval of a 
driving safety course that has not been evaluated by the department
[commissioner must be accompanied by a nonrefundable fee of 
$9,000];
		(10)  an application for approval to teach an approved 
driving safety course by an alternative method.
	(c)  [(k)]  An application for an original driver education or 
driving safety instructor license must be accompanied by a 
processing fee [of $50] and an annual license fee [of $25], except 
that the department [commissioner] may not collect the processing 
fee from an applicant for a driver education instructor license who 
is currently teaching a driver education course in a public school 
in this state.
	(d)  [(l)]  The commission [commissioner] shall establish the 
amount of the fee for a duplicate license.
	SECTION __.20.  Section 1001.153, Education Code, is amended 
to read as follows:
	Sec. 1001.153.  COMPLAINT INVESTIGATION FEE.  (a) The 
commission [commissioner] shall establish the amount of the fee to 
investigate a driver training school or course provider to resolve 
a complaint against the school or course provider.
	(b)  The fee may be charged only if:                                           
		(1)  the complaint could not have been resolved solely 
by telephone or in writing;
		(2)  a representative of the department [agency] 
visited the school or course provider as a part of the complaint 
resolution process; and
		(3)  the school or course provider was found to be at 
fault.                
	SECTION __.21.  Section 1001.202(b), Education Code, is 
amended to read as follows:
	(b)  A driving safety school may use multiple classroom 
locations to teach a driving safety course if each location:
		(1)  is approved by the parent school and the 
department [agency];
		(2)  has the same name as the parent school; and                              
		(3)  has the same ownership as the parent school.                             
	SECTION __.22.  Sections 1001.203, 1001.204, 1001.205, and 
1001.206, Education Code, are amended to read as follows:
	Sec. 1001.203.  APPLICATION.  To operate or do business in 
this state, a driver training school must apply to the department
[commissioner] for the appropriate license.  The application must:
		(1)  be in writing;                                                           
		(2)  be in the form prescribed by the department 
[commissioner];
		(3)  include all required information; and                                    
		(4)  be verified.                                                             
	Sec. 1001.204.  REQUIREMENTS FOR DRIVER EDUCATION SCHOOL 
LICENSE.  The department [commissioner] shall approve an 
application for a driver education school license if, on 
investigation of the premises of the school, it is determined that 
the school:
		(1)  has courses, curricula, and instruction of a 
quality, content, and length that reasonably and adequately achieve 
the stated objective for which the courses, curricula, and 
instruction are offered;
		(2)  has adequate space, equipment, instructional 
material, and instructors to provide training of good quality in 
the classroom and behind the wheel;
		(3)  has directors, instructors, and administrators 
who have adequate educational qualifications and experience;
		(4)  provides to each student before enrollment:                              
			(A)  a copy of:                                                              
				(i)  the refund policy;                                                     
				(ii)  the schedule of tuition, fees, and 
other charges; and               
				(iii)  the regulations relating to absence, 
grading policy, and rules of operation and conduct; and
			(B)  the department's name, mailing address, 
[and] telephone number, and Internet website address [of the 
[agency] for the purpose of directing complaints to the department
[agency];
		(5)  maintains adequate records as prescribed by the 
department [commissioner] to show attendance and progress or grades 
and enforces satisfactory standards relating to attendance, 
progress, and conduct;
		(6)  on completion of training, issues each student a 
certificate indicating the course name and satisfactory 
completion;
		(7)  complies with all county, municipal, state, and 
federal regulations, including fire, building, and sanitation 
codes and assumed name registration;
		(8)  is financially sound and capable of fulfilling its 
commitments for training;
		(9)  has administrators, directors, owners, and 
instructors who are of good reputation and character;
		(10)  maintains and publishes as part of its student 
enrollment contract the proper policy for the refund of the unused 
portion of tuition, fees, and other charges if a student fails to 
take the course or withdraws or is discontinued from the school at 
any time before completion;
		(11)  does not use erroneous or misleading advertising, 
either by actual statement, omission, or intimation, as determined 
by the department [commissioner];
		(12)  does not use a name similar to the name of another 
existing school or tax-supported educational institution in this 
state, unless specifically approved in writing by the executive 
director [commissioner];
		(13)  submits to the department [agency] for approval 
the applicable course hour lengths and curriculum content for each 
course offered by the school;
		(14)  does not owe an administrative penalty for a 
violation of [under] this chapter; and
		(15)  meets any additional criteria required by the 
department [agency].
	Sec. 1001.205.  REQUIREMENTS FOR DRIVING SAFETY SCHOOL 
LICENSE.  The department [commissioner] shall approve an 
application for a driving safety school license if on investigation 
the department [agency] determines that the school:
		(1)  has driving safety courses, curricula, and 
instruction of a quality, content, and length that reasonably and 
adequately achieve the stated objective for which the course, 
curricula, and instruction are developed by the course provider;
		(2)  has adequate space, equipment, instructional 
material, and instructors to provide training of good quality;
		(3)  has instructors and administrators who have 
adequate educational qualifications and experience;
		(4)  maintains adequate records as prescribed by the 
department [commissioner] to show attendance and progress or grades 
and enforces satisfactory standards relating to attendance, 
progress, and conduct;
		(5)  complies with all county, municipal, state, and 
federal laws, including fire, building, and sanitation codes and 
assumed name registration;
		(6)  has administrators, owners, and instructors who 
are of good reputation and character;
		(7)  does not use erroneous or misleading advertising, 
either by actual statement, omission, or intimation, as determined 
by the department [commissioner];
		(8)  does not use a name similar to the name of another 
existing school or tax-supported educational establishment in this 
state, unless specifically approved in writing by the executive 
director [commissioner];
		(9)  maintains and uses the approved contract and 
policies developed by the course provider;
		(10)  does not owe an administrative penalty for a                     
violation of [under] this chapter;                    
		(11)  will not provide a driving safety course to a 
person for less than $30 [$25]; and
		(12)  meets additional criteria required by the 
department [commissioner].
	Sec. 1001.206.  REQUIREMENTS FOR COURSE PROVIDER LICENSE.  
The department [commissioner] shall approve an application for a 
course provider license if on investigation the department [agency] 
determines that:
		(1)  the course provider has an approved course that at 
least one licensed driving safety school is willing to offer;
		(2)  the course provider has adequate educational                             
qualifications and experience;                                                
		(3)  the course provider will:                                                
			(A)  develop and provide to each driving safety 
school that offers the approved course a copy of:
				(i)  the refund policy; and                                                 
				(ii)  the regulations relating to absence, 
grading policy, and rules of operation and conduct; and
			(B)  provide to the driving safety school the 
department's name, mailing address, [and] telephone number, and 
Internet website address [of the agency] for the purpose of 
directing complaints to the department [agency];
		(4)  a copy of the information provided to each driving 
safety school under Subdivision (3) will be provided to each 
student by the school before enrollment;
		(5)  not later than the 15th working day after the date 
the person successfully completes the course, the course provider 
[will mail] shall issue a uniform certificate of course completion 
by United States mail or commercial delivery to the person 
indicating the course name and successful completion;
		(6)  the course provider maintains adequate records as 
prescribed by the department [commissioner] to show attendance and 
progress or grades and enforces satisfactory standards relating to 
attendance, progress, and conduct;
		(7)  the course provider complies with all county, 
municipal, state, and federal laws, including assumed name 
registration and other applicable requirements;
		(8)  the course provider is financially sound and 
capable of fulfilling its commitments for training;
		(9)  the course provider is of good reputation and 
character;               
		(10)  the course provider maintains and publishes as a 
part of its student enrollment contract the proper policy for the 
refund of the unused portion of tuition, fees, and other charges if 
a student fails to take the course or withdraws or is discontinued 
from the school at any time before completion;
		(11)  the course provider does not use erroneous or 
misleading advertising, either by actual statement, omission, or 
intimation, as determined by the department [commissioner];
		(12)  the course provider does not use a name similar to 
the name of another existing school or tax-supported educational 
institution in this state, unless specifically approved in writing 
by the executive director [commissioner];
		(13)  the course provider does not owe an 
administrative penalty for a violation of [under] this chapter; and
		(14)  the course provider meets additional criteria 
required by the department [commissioner].
	SECTION __.23.  Sections 1001.207(a) and (b), Education Code, 
are amended to read as follows:
	(a)  Before a driver education school may be issued a 
license, the school must file a corporate surety bond with the 
department [commissioner] in the amount of:
		(1)  $10,000 for the primary location of the school;                          
and                                                                           
		(2)  $5,000 for each branch location.                                         
	(b)  A bond issued under Subsection (a) must be:                               
		(1)  issued in a form approved by the department
[commissioner];
		(2)  issued by a company authorized to do business in 
this state;           
		(3)  payable to the state to be used only for payment of 
a refund due to a student or potential student;
		(4)  conditioned on the compliance of the school and 
its officers, agents, and employees with this chapter and rules 
adopted under this chapter; and
		(5)  issued for a period corresponding to the term of 
the license.          
	SECTION __.24.  Section 1001.209(b), Education Code, is 
amended to read as follows:
	Section 1001.209(b), Education Code, is amended to read as 
follows:          
	(b)  A bond issued under Subsection (a) must be:                               
		(1)  issued by a company authorized to do business in 
this state;           
		(2)  payable to the state to be used:                                         
			(A)  for payment of a refund due a student of the 
course provider's approved course;
			(B)  to cover the payment of unpaid fees or 
penalties assessed by the department [agency]; or
			(C)  to recover any cost associated with providing 
course completion certificate numbers, including the cancellation 
of certificate numbers;
		(3)  conditioned on the compliance of the course 
provider and its officers, agents, and employees with this chapter 
and rules adopted under this chapter; and
		(4)  issued for a period corresponding to the term of 
the license.          
	SECTION __.25.  Section 1001.210, Education Code, is amended 
to read as follows:
	Sec. 1001.210.  ALTERNATE FORM OF SECURITY.  Instead of the 
bond required by Section 1001.207 or 1001.209, a driver education 
school or course provider may provide another form of security that 
is:
		(1) [(A)]  approved by the department [commissioner]; 
and
		(2) [(B)]  in the amount required for a comparable bond 
under Section 1001.207 or 1001.209.
	SECTION __.26.  Sections 1001.211(a) and (b), Education Code, 
are amended to read as follows:
	(a)  The department [commissioner] shall issue a license to 
an applicant for a license under this subchapter if:
		(1)  the application is submitted in accordance with 
this subchapter; and   
		(2)  the applicant meets the requirements of this 
chapter.                  
	(b)  A license must be in a form determined by the department
[commissioner] and must show in a clear and conspicuous manner:
		(1)  the date of issuance, effective date, and term of 
the license;         
		(2)  the name and address of the driver training school 
or course provider; 
		(3)  the authority for and conditions of approval;                            
		(4)  the executive director's [commissioner's]        
signature; and                                                                
		(5)  any other fair and reasonable representation that 
is consistent with this chapter and that the department
[commissioner] considers necessary.
	SECTION __.27.  Section 1001.212, Education Code, is amended 
to read as follows:
	Sec. 1001.212.  NOTICE OF DENIAL OF LICENSE.  The department
[commissioner] shall provide a person whose application for a 
license under this subchapter is denied a written statement of the 
reasons for the denial.
	SECTION __.28.  Sections 1001.213(c) and (d), Education Code, 
are amended to read as follows:
	(c)  The commission may establish [Instead of the] fees 
[required by Section 1001.151, the fee] for a new driver education 
school or course provider license under Subsection (b) and [is 
$500, plus $200] for each branch location that are different from 
the amounts established under Section 1001.151[,] if:
		(1)  the new owner is substantially similar to the 
previous owner;  and     
		(2)  there is no significant change in the management 
or control of the driver education school or course provider.
	(d)  The department [commissioner] is not required to 
reinspect a school or a branch location after a change of ownership.
	SECTION __.29.  Section 1001.214, Education Code, is amended 
to read as follows:
	Sec. 1001.214.  DUPLICATE LICENSE.  A duplicate license may 
be issued to a driver training school or course provider if:
		(1)  the original license is lost or destroyed; and                           
		(2)  an affidavit of that fact is filed with the 
department [agency].
	SECTION __.30.  Sections 1001.251, 1001.252, and 1001.253, 
Education Code, are amended to read as follows:
	Sec. 1001.251.  LICENSE REQUIRED FOR INSTRUCTOR.  (a) A 
person may not teach or provide driver education, either as an 
individual or in a driver education school, or conduct any phase of 
driver education, unless the person holds a driver education 
instructor license issued by the department [agency].
	(b)  A person may not teach or provide driving safety 
training, either as an individual or in a driving safety school, or 
conduct any phase of driving safety education, unless the person 
holds a driving safety instructor license issued by the department
[agency].  This subsection does not apply to an instructor of a 
driving safety course that does not provide a uniform certificate 
of course completion to its graduates.
	Sec. 1001.252.  SIGNATURE AND SEAL ON LICENSE REQUIRED.  A 
license under this subchapter must be signed by the executive 
director [commissioner].
	Sec. 1001.253.  DRIVER EDUCATION INSTRUCTOR TRAINING. (a)  
The department [commissioner] shall establish standards for 
certification of professional and paraprofessional personnel who 
conduct driver education programs in driver education schools.
	(b)  A driver education instructor license authorizing a 
person to teach or provide behind-the-wheel training may not be 
issued unless the person has successfully completed six semester 
hours of driver and traffic safety education or a program of study 
in driver education approved by the department [commissioner] from 
an approved driver education school.
	(c)  A person who holds a driver education instructor license 
authorizing behind-the-wheel training may not be approved to 
[assist a classroom instructor] provide instruction in the 
classroom phase of driver education, under the certification of a 
classroom instructor, unless the person has successfully completed 
the three additional semester hours of training required for a 
classroom instructor or a program of study in driver education 
approved by the department [commissioner].
	(d)  Except as provided by Section 1001.254, a driver 
education instructor license authorizing a person to teach or 
provide classroom training may not be issued unless the person:
		(1)  has completed nine semester hours of driver and 
traffic safety education or a program of study in driver education 
approved by the department [commissioner] from an approved driver 
education school; and
		(2)  holds a teaching certificate and any additional 
certification required to teach driver education.
	(e)  A driver education instructor who has completed the 
educational requirements prescribed by Subsection (d)(1) may not 
teach instructor training classes unless the instructor has 
successfully completed a supervising instructor development 
program consisting of at least six additional semester hours or a 
program of study in driver education approved by the department
[commissioner] that includes administering driver education 
programs and supervising and administering traffic safety 
education, except that the supervising teacher may allow driver 
education teachers and teaching assistants to provide training in 
areas appropriate for their level of certification or licensure.
	(f)  A driver education school may submit for department
[agency] approval a curriculum for an instructor development 
program for driver education instructors.  The program must:
		(1)  be taught by a person who has completed a 
supervising instructor development program under Subsection (e); 
and
		(2)  satisfy the requirements of this section for the 
particular program or type of training to be provided.
	SECTION __.31.  Section 1001.254(a), Education Code, is 
amended to read as follows:
	(a)  A temporary driver education instructor license may be 
issued authorizing a person to teach or provide classroom driver 
education training if the person:
		(1)  has completed the educational requirements 
prescribed by Section 1001.253(d)(1);
		(2)  holds a Texas teaching certificate with an 
effective date before February 1, 1986;
		(3)  meets all license requirements, other than 
successful completion of the examination required under rules 
adopted by the State Board for Educator Certification to revalidate 
the teaching certificate; and
		(4)  demonstrates, in a manner prescribed by the 
department [commissioner], the intention to comply with the 
examination requirement at the first available opportunity.
	SECTION __.32.  Sections 1001.255(a), (b), and (c), Education 
Code, are amended to read as follows:
	(a)  The department [agency] shall regulate as a driver 
education school a driver education instructor who:
		(1)  teaches driver education courses in a county 
having a population of 50,000 or less; and
		(2)  does not teach more than 200 students annually.                          
	(b)  An instructor described by Subsection (a) must submit to 
the department [agency] an application for an initial or renewal 
driver education school license, together with all required 
documentation and information.
	(c)  The department [commissioner] may waive initial or 
renewal driver education school license fees or the fee for a 
director or administrative staff member.
	SECTION __.33.  Section 1001.256, Education Code, is amended 
to read as follows:
	Sec. 1001.256.  DUPLICATE LICENSE.  A duplicate license may 
be issued to a driver education instructor or driving safety 
instructor if:
		(1)  the original license is lost or destroyed; and                           
		(2)  an affidavit of that fact is filed with the 
department [agency].
	SECTION __.34.  The heading to Subchapter G, Chapter 1001, 
Education Code, is amended to read as follows:
SUBCHAPTER G.  LICENSE EXPIRATION [AND RENEWAL]              
	SECTION __.35.  Sections 1001.351(b), Education Code, are 
amended to read as follows:
	(b)  A course provider shall electronically submit to the 
department [agency] in the manner established by the department
[agency] data identified by the department [agency] relating to 
uniform certificates of course completion issued by the course 
provider.
	SECTION __.36. Section 1001.352, Education Code, is amended 
to read as follows:
	Sec. 1001.352.  FEES FOR DRIVING SAFETY COURSE. (a)  A course 
provider shall charge each student:
		(1)  at least $26 [$25] for a driving safety course;  
and
		(2)  a fee of at least $4, [$3] which shall be retained 
by the course provider to be used solely for course materials and 
for supervising and administering the course as required by this 
chapter and the rules of the commission.
	(b)  The department shall periodically audit course 
providers to verify compliance with this subsection.  A course 
provider shall make its books and records available to the 
department as needed to verify compliance with this section and 
failure to do so may be enforced pursuant to Subchapter J.
	SECTION __.37.  Sections 1001.354(a) and (b), Education Code, 
are amended to read as follows:
	(a)  A driving safety course may be taught at a driving 
safety school if the school is approved by the department [agency].
	(b)  A driving safety school may teach an approved driving 
safety course by an alternative method that does not require 
students to be present in a classroom if the department
[commissioner] approves the alternative method.  The department
[commissioner] may approve the alternative method if:
		(1)  the department [commissioner] determines that the 
approved driving safety course can be taught by the alternative 
method; and
		(2)  the alternative method includes testing and 
security measures that are at least as secure as the measures 
available in the usual classroom setting.
	SECTION __.38.  Sections 1001.404(b) and (c), Education Code, 
are amended to read as follows:
	(b)  The department [commissioner] shall establish annually 
the rate of interest for a refund at a rate sufficient to provide a 
deterrent to the retention of student money.
	(c)  The department [agency] may except a driver education 
school or course provider from the payment of interest if the school 
or course provider makes a good-faith effort to refund tuition, 
fees, and other charges but is unable to locate the student to whom 
the refund is owed.  On request of the department [agency], the 
school or course provider shall document the effort to locate a 
student.
	SECTION __.39.  Sections 1001.451 and 1001.452, Education 
Code, are amended to read as follows:
	Sec. 1001.451.  PROHIBITED PRACTICES.  A person may not:                       
		(1)  use advertising designed to mislead or deceive a                         
prospective student;                                                          
		(2)  fail to notify the department [commissioner] of 
the discontinuance of the operation of a driver training school 
before the fourth working day after the date of cessation of classes 
and make available accurate records as required by this chapter;
		(3)  issue, sell, trade, or transfer:                                         
			(A)  a uniform certificate of course completion or 
driver education certificate to a person or driver training school 
not authorized to possess the certificate;
			(B)  a uniform certificate of course completion to 
a person who has not successfully completed an approved, six-hour 
driving safety course; or
			(C)  a driver education certificate to a person 
who has not successfully completed a department-approved
[commissioner-approved] driver education course;
		(4)  negotiate a promissory instrument received as 
payment of tuition or another charge before the student completes 
75 percent of the course, except that before that time the 
instrument may be assigned to a purchaser who becomes subject to any 
defense available against the school named as payee; or
		(5)  conduct any part of an approved driver education 
course or driving safety course without having an instructor 
physically present in appropriate proximity to the student for the 
type of instruction being given.
	Sec. 1001.452.  COURSE OF INSTRUCTION.  A driver education
[training] school shall [may] not enroll a student[ [maintain, 
advertise, solicit for,] or conduct a course of instruction in this 
state before [the later of]:
		(1)  the 30th day after the date the school applies for 
a driver training school license; [or]
		(2)  the date the school receives a driver education
[training] school license from the department [commissioner]; and
		(3)  the facilities and equipment are inspected and 
approved by the department.
	SECTION __.40.  Sections 1001.453(d) and (e), Education Code, 
are amended to read as follows:
	(d)  Subchapter F, Chapter 51, Occupations Code, Section 
51.353, Occupations Code, and Section [Sections 1001.454,] 
1001.456(a) of this code [, and 1001.553] do not apply to a 
violation of this section or a rule adopted under this section.
	(e)  Section 51.352, Occupations Code, and Sections 
[1001.455(a)(6),] 1001.501[, 1001.551, 1001.552,] and 1001.554 of 
this code do not apply to a violation of this section.
	SECTION __.41.  Section 1001.456, Education Code, is amended 
to read as follows:
	Sec. 1001.456.  OTHER DISCIPLINARY ACTIONS.  (a)  If the 
department [agency] believes that a driver education school or 
instructor has violated this chapter or a rule or order of the 
commission or executive director [adopted under this chapter], the 
department [agency] may, without notice:
		(1)  order a peer review;                                                     
		(2)  suspend the enrollment of students in the school 
or the offering of instruction by the instructor; or
		(3)  suspend the right to purchase driver education 
certificates.           
	(b)  If the department [agency] believes that a course 
provider, driving safety school, or driving safety instructor has 
violated this chapter or a rule or order of the commission or 
executive director [adopted under this chapter], the department
[agency] may, without notice:
		(1)  order a peer review of the course provider, 
driving safety school, or driving safety instructor;
		(2)  suspend the enrollment of students in the school 
or the offering of instruction by the instructor; or
		(3)  suspend the right to purchase course completion 
certificate numbers.   
	 (c)  A peer review ordered under this section must be 
conducted by a team of knowledgeable persons selected by the 
department [agency].  The team shall provide the department
[agency] with an objective assessment of the content of the 
school's or course provider's curriculum and its application.  The 
school or course provider shall pay the costs of the peer review.
	(d)  A suspension of enrollment under Subsection (a)(2) or 
(b)(2) means a ruling by the executive director [commissioner] that 
restricts a school from:
		(1)  accepting enrollments or reenrollments;                                  
		(2)  advertising;                                                             
		(3)  soliciting; or                                                           
		(4)  directly or indirectly advising prospective 
students of its program or course offerings.
	SECTION __.42.  The heading to Subchapter L, Chapter 1001, 
Education Code, is amended to read as follows:
SUBCHAPTER L.  PENALTIES [AND ENFORCEMENT PROVISIONS]        
	SECTION __.43.  Section 1001.555, Education Code, is amended 
to read as follows:
	(a)  A person commits an offense if the person knowingly 
sells, trades, issues, or otherwise transfers, or possesses with 
intent to sell, trade, issue, or otherwise transfer, a uniform 
certificate of course completion, including a duplicate 
certificate, a course completion certificate number, including a 
duplicate number, or a driver education certificate to an 
individual, firm, or corporation not authorized to possess the 
certificate or number.
	(b)  The department [agency] shall contract with the 
Department of Public Safety [department] to provide undercover and 
investigative assistance in the enforcement of Subsection (a).
	(c)  A person commits an offense if the person knowingly 
possesses a uniform certificate of course completion, including a 
duplicate certificate, a course completion certificate number, 
including a duplicate number, or a driver education certificate and 
is not authorized to possess the certificate or number.
	SECTION __.44.  Article 45.0511(b), Code of Criminal 
Procedure, is amended to read as follows:
	(b)  The judge shall require the defendant to successfully 
complete a driving safety course approved by the Texas Department 
of Licensing and Regulation [Education Agency] or a course under 
the motorcycle operator training and safety program approved by the 
designated state agency under Chapter 662, Transportation Code, if:
		(1)  the defendant elects driving safety course or 
motorcycle operator training course dismissal under this article;
		(2)  the defendant has not completed an approved 
driving safety course or motorcycle operator training course, as 
appropriate, within the 12 months preceding the date of the 
offense;
		(3)  the defendant enters a plea under Article 45.021 
in person or in writing of no contest or guilty on or before the 
answer date on the notice to appear and:
			(A)  presents in person or by counsel to the court 
a request to take a course; or
			(B)  sends to the court by certified mail, return 
receipt requested, postmarked on or before the answer date on the 
notice to appear, a written request to take a course;
		(4)  the defendant has a valid Texas driver's license or 
permit;            
		(5)  the defendant is charged with an offense to which 
this article applies, other than speeding 25 miles per hour or more 
over the posted speed limit; and
		(6)  the defendant provides evidence of financial 
responsibility as required by Chapter 601, Transportation Code.
	SECTION __.45.  Section 51.308, Education Code, is amended to 
read as follows:
	Sec. 51.308.  DRIVER EDUCATION.  A driver education course 
for the purpose of preparing students to obtain a driver's license 
may be offered by an institution of higher education, as defined by 
Section 61.003, with the approval of the Texas Department of 
Licensing and Regulation [Central Education Agency].
	SECTION __.46.  Section 521.1655(a), Transportation Code, is 
amended to read as follows:
	(a)  A driver education school licensed under Chapter 1001, 
Education Code, [the Texas Driver and Traffic Safety Education Act 
(Article 4413(29c), Vernon's Texas Civil Statutes)] may administer 
to a student of that school the vision, highway sign, and traffic 
law parts of the examination required by Section 521.161.
	SECTION __.47.  Section 521.203, Transportation Code, is 
amended to read as follows:
	Sec. 521.203.  RESTRICTIONS ON CLASS A AND B LICENSES.  The 
department may not issue a Class A or Class B driver's license to a 
person who:
		(1)  is under 17 years of age;                                                
		(2)  is under 18 years of age unless the person has 
completed a driver training course approved by the Texas Department 
of Licensing and Regulation [Central Education Agency]; or
		(3)  has not provided the department with an affidavit, 
on a form prescribed by the department, that states that no vehicle 
that the person will drive that requires a Class A or Class B 
license is a commercial motor vehicle as defined by Section 
522.003.
	SECTION __.48. Subsection 521.204(a), Transportation Code, 
is amended to read as follows:
	Sec. 521.204.  RESTRICTIONS ON MINOR.  (a)  The department 
may issue a Class C driver's license to an applicant under 18 years 
of age only if the applicant:
		(1)  is 16 years of age or older;                                             
		(2)  has submitted to the department a driver education 
certificate issued under Section 1001.055, Education Code [Section 
9A, Texas Driver and Traffic Safety Education Act (Article 
4413(29c), Vernon's Texas Civil Statutes)], that states that the 
person has completed and passed a driver education course approved 
by the department under Section 521.205 or by the Texas Department 
of Licensing and Regulation [Education Agency];
		(3)  has obtained a high school diploma or its 
equivalent or is a student:  
			(A)  enrolled in a public school, home school, or 
private school who attended school for at least 80 days in the fall 
or spring semester preceding the date of the driver's license 
application;  or
			(B)  who has been enrolled for at least 45 days, 
and is enrolled as of the date of the application, in a program to 
prepare persons to pass the high school equivalency exam;  and
		(4)  has passed the examination required by Section 
521.161.                
	SECTION __.49.  Sections 521.205(b) and (d), Transportation 
Code, are amended to read as follows:
	(b)  The department may not approve a course unless it 
determines that the course materials are at least equal to those 
required in a course approved by the Texas Department of Licensing 
and Regulation [Education Agency], except that the department may 
not require that:
		(1)  the classroom instruction be provided in a room 
with particular characteristics or equipment; or
		(2)  the vehicle used for the behind-the-wheel 
instruction have equipment other than the equipment otherwise 
required by law for operation of the vehicle on a highway while the 
vehicle is not being used for driver training.
	(d)  Completion of a driver education course approved under 
this section has the same effect under this chapter as completion of 
a driver education course approved by the Texas Department of 
Licensing and Regulation [Education Agency].
	SECTION __.50.  Subsections 521.222(a) and (c), 
Transportation Code, are amended to read as follows:
	Sec. 521.222.  INSTRUCTION PERMIT.  (a)  The department or a 
driver education school licensed under Chapter 1001, Education 
Code, [the Texas Driver and Traffic Safety Education Act (Article 
4413(29c), Vernon's Texas Civil Statutes)] may issue an instruction 
permit, including a Class A or Class B driver's license instruction 
permit, to a person who:
		(1)  is 15 years of age or older but under 18 years of 
age;                 
		(2)  has satisfactorily completed and passed the 
classroom phase of an approved driver education course, which may 
be a course approved under Section 521.205;
		(3)  meets the requirements imposed under Section 
521.204(3);  and          
		(4)  has passed each examination required under Section 
521.161 other than the driving test.
	 (c)  A driver education school may issue an instruction 
permit to a person 18 years of age or older who has successfully 
passed:
		(1)  a six-hour adult classroom driver education course 
approved by the Texas Department of Licensing and Regulation
[Education Agency];  and
		(2)  each part of the driver's examination required by 
Section 521.161 other than the driving test.
	SECTION __.51.  Sections 1001.001(1), 1001.053(b) and (c), 
1001.054(a) and (b), 1001.152, 1001.303, 1001.454, 1001.455, 
1001.457, 1001.458, 1001.459, 1001.460, 1001.461, 1001.551, 
1001.552, and 1001.553, Education Code, and Subchapter B, Chapter 
543, Transportation Code, are repealed.
	SECTION __.52.  (a)  As soon as practicable after the 
effective date of this Act, the Texas Education Agency and the Texas 
Department of Licensing and Regulation shall develop a transition 
plan for transferring the functions performed by the Texas 
Education Agency under Chapter 1001, Education Code, to the Texas 
Department of Licensing and Regulation.  The transition plan must 
include a timetable with specific steps and deadlines needed to 
complete the transfer.
	(b)  In accordance with the transition plan developed by the 
Texas Education Agency and the Texas Department of Licensing and 
Regulation under Subsection (a) of this section, on January 1, 
2006:
		(1)  all functions and activities relating to Chapter 
1001, Education Code, performed by the Texas Education Agency 
immediately before that date are transferred to the Texas 
Department of Licensing and Regulation;
		(2)  a rule or form adopted by the commissioner of 
education that relates to Chapter 1001, Education Code, is a rule or 
form of the Texas Commission of Licensing and Regulation or the 
Texas Department of Licensing and Regulation, as applicable, and 
remains in effect until amended or replaced by that commission or 
department;
		(3)  a reference in law to or an administrative rule of 
the Texas Education Agency that relates to Chapter 1001, Education 
Code, means the Texas Commission of Licensing and Regulation or the 
Texas Department of Licensing and Regulation, as applicable;
		(4)  a complaint, investigation, or other proceeding 
before the Texas Education Agency that is related to Chapter 1001, 
Education Code, is transferred without change in status to the 
Texas Department of Licensing and Regulation, and the Texas 
Department of Licensing and Regulation assumes, as appropriate and 
without a change in status, the position of the Texas Education 
Agency in an action or proceeding to which the Texas Education 
Agency is a party;
		(5)  any employee of the Texas Education Agency who is 
primarily involved in administering Chapter 1001, Education Code, 
becomes an employee of the Texas Department of Licensing and 
Regulation at the discretion of the department;
		(6)  all money, contracts, leases, property, and 
obligations of the Texas Education Agency related to Chapter 1001, 
Education Code, are transferred to the Texas Department of 
Licensing and Regulation;
		(7)  all property in the custody of the Texas Education 
Agency related to Chapter 1001, Education Code, is transferred to 
the Texas Department of Licensing and Regulation; and
		(8)  the unexpended and unobligated balance of any 
money appropriated by the legislature for the Texas Education 
Agency related to Chapter 1001, Education Code, is transferred to 
the Texas Department of Licensing and Regulation.
	(c)  Before January 1, 2006, the Texas Education Agency may 
agree with the Texas Department of Licensing and Regulation to 
transfer any property of the Texas Education Agency to the Texas 
Department of Licensing and Regulation to implement the transfer 
required by this Act.
	(d)  In the period beginning with the effective date of this 
Act and ending on January 1, 2006, the Texas Education Agency shall 
continue to perform functions and activities under Chapter 1001, 
Education Code, as if that chapter had not been amended by this Act, 
and the former law is continued in effect for that purpose.
	SECTION __.53. Before December 31, 2007, the department shall 
perform a complete review and approval of each six-hour driving 
safety course and alternative delivery method approved before July 
1, 2005, to verify compliance with Chapter 1001, Education Code, 
and the rules of the department applicable to the course or method.  
The department shall charge each course provider and alternative 
method owner the fee applicable to an application for initial 
approval of a driving safety course, which is appropriated to the 
department to administer the requirements of this subsection. The 
department may revoke the approval of any course or alternative 
delivery method that is not in compliance. This section does not 
apply to a specialized driving safety course approved by the Texas 
Education Agency that includes four hours of instruction that 
encourages the use of child passenger safety seat systems and the 
wearing of seat belts.
	SECTION __.54.  The changes in law made by this article apply 
only to a fee charged on or after January 1, 2006.  A fee charged 
before January 1, 2006, is governed by the law in effect immediately 
before that date, and the former law is continued in effect for that 
purpose.
	SECTION __.55.  The changes in law made by this article apply 
only to a license issued or renewed on or after January 1, 2005.  An 
issuance or renewal that occurs before January 1, 2005, is governed 
by the law in effect immediately before that date, and the former 
law is continued in effect for that purpose.