S.B. No. 309

AN ACT

relating to the requirement that a career school or college adopt a refund policy for students called to active military service.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 132, Education Code, is amended by adding Section 132.0611 to read as follows:

Sec. 132.0611. REFUND POLICY FOR STUDENTS CALLED TO ACTIVE MILITARY SERVICE. As a condition to receiving a certificate of approval under this chapter, including a renewal of a certificate of approval, a career school or college must maintain, and include in the school or college's catalogue and enrollment contract, a policy under which a student of the school or college who withdraws from the school or college as a result of the student being called to active duty in a military service of the United States or the Texas National Guard may elect one of the following options for each program in which the student is enrolled:

(1) if tuition and fees are collected in advance of the withdrawal, a pro rata refund of any tuition, fees, or other charges paid by the student for the program and a cancellation of any unpaid tuition, fees, or other charges owed by the student for the portion of the program the student does not complete following withdrawal;

(2) a grade of incomplete with the designation "withdrawn-military" for the courses in the program, other than courses for which the student has previously received a grade on the student's transcript, and the right to re-enroll in the program, or a substantially equivalent program if that program is no longer available, not later than the first anniversary of the date the student is discharged from active military duty without payment of additional tuition, fees, or other charges for the program other than any previously unpaid balance of the original tuition, fees, and charges for books for the program; or

(3) the assignment of an appropriate final grade or credit for the courses in the program, but only if the instructor or instructors of the program determine that the student has:

(A) satisfactorily completed at least 90 percent of the required coursework for the program; and

(B) demonstrated sufficient mastery of the program material to receive credit for completing the program.

SECTION 2. Subsection (b), Section 132.055, Education Code, is amended by adding Subdivision (19) to read as follows:

(19) The school or college maintains a policy regarding students called to active military service that meets the requirements prescribed by Section 132.0611.

SECTION 3. Subsection (a), Section 132.201, Education Code, is amended to read as follows:

(a) Certificate and registration fees, except those charged pursuant to Subsection (d), shall be collected by the commission. Each fee shall be in an amount set by the commission in an amount not to exceed 150 percent of each fee in the following schedule:

(1) the initial fee for a career school or college:

(A) for a certificate of approval is $2,000; or

(B) for a small career school or college certificate of approval is $1,000;

(2) the first renewal fee and each subsequent renewal fee for a career school or college is the greater of:

(A) an amount that is determined by applying a percentage, not to exceed 0.3 percent, to the gross tuition and fees, excluding refunds as provided by Section 132.061 or 132.0611, of the school or college; or

(B) $500;

(3) the initial registration fee for a representative is $60;

(4) the annual renewal fee for a representative is $30;

(5) the fee for a change of a name of a career school or college or owner is $100;

(6) the fee for a change of an address of a career school or college is $180;

(7) the fee for a change in the name or address of a representative or a change in the name or address of a career school or college that causes the reissuance of a representative permit is $10;

(8) the application fee for an additional program is $150, except for seminars and workshops, for which the fee is $25;

(9) the application fee for a director, administrative staff member, or instructor is $15;

(10) the application fee for the authority to grant degrees is $2,000;

(11) the application fee for an additional degree program is $250; and

(12) the fee for an inspection required by commission rule of classroom facilities that are separate from the main campus is $250.

SECTION 4. Subsection (b), Section 132.2415, Education Code, is amended to read as follows:

(b) The commission may collect annually a fee from each career school or college to be deposited to the credit of the career school or college tuition trust account. The total amount of the fees collected in a year shall be set by the commission in the amount estimated as necessary to pay the liabilities of the trust account during that year, not to exceed 0.2 percent of the gross amount of tuition and fees charged by career schools and colleges in that year, excluding amounts refunded under Section 132.061 or 132.0611.

SECTION 5. Section 132.0611, Education Code, as added by this Act, applies to a career school or college operating under a certificate of approval issued under Chapter 132, Education Code, beginning on the earlier of the following dates:

(1) November 1, 2007; or

(2) the earliest date on which the certificate of approval is issued or renewed that occurs on or after the effective date of this Act.

SECTION 6. This Act takes effect September 1, 2007.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 309 passed the Senate on April 23, 2007, by the following vote: Yeas 31, Nays 0.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 309 passed the House on May 23, 2007, by the following vote: Yeas 144, Nays 0, two present not voting.

______________________________ Chief Clerk of the House

Approved:

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Date

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Governor