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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation and certification of career schools or |
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colleges. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subdivisions (1) and (4), Section 132.001, |
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Education Code, are amended to read as follows: |
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(1) "Career school or college": |
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(A) means any business enterprise operated for a |
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profit or on a nonprofit basis that maintains a physical place of |
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business within this state or solicits business within this state, |
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that is not specifically exempted by this chapter, and: |
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(i) [(A)] that offers or maintains a course |
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or courses of instruction or study; or |
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(ii) [(B)] at which place of business such |
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a course or courses of instruction or study are available through |
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classroom instruction or by distance education, or both, to a |
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person for the purpose of training or preparing the person for a |
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field of endeavor in a business, trade, technical, or industrial |
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occupation, or for avocational or personal improvement; and |
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(B) does not include a school or educational |
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institution that: |
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(i) is physically located in another state; |
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(ii) is legally authorized by the state of |
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its physical location to offer postsecondary education and award |
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degrees; |
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(iii) is accredited by a national |
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accrediting organization recognized by the United States secretary |
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of education under the Higher Education Act of 1965 (20 U.S.C. |
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Section 1001 et seq.); and |
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(iv) offers in this state only |
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postsecondary distance or correspondence programs of instruction. |
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(4) "Representative" means a person employed by a |
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career school or college[, whether the school or college is located
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within or without this state,] to act as an agent, solicitor, |
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broker, or independent contractor to directly procure students for |
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the school or college by solicitation within [or without] this |
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state at any place. |
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SECTION 2. Sections 132.052 and 132.151, Education Code, |
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are amended to read as follows: |
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Sec. 132.052. APPLICATION FOR CERTIFICATE OF APPROVAL. |
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Every career school or college desiring to operate in this state [or
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do business in this state] shall make written application to the |
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commission for a certificate of approval. Such application shall |
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be verified, be in such form as may be prescribed by the commission, |
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and shall furnish the commission such information as the commission |
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may require. |
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Sec. 132.151. PROHIBITIONS. A person may not: |
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(1) operate a career school or college without a |
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certificate of approval issued by the commission; |
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(2) solicit prospective students for or on behalf of a |
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career school or college without being registered as a |
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representative of the career school or college as required by this |
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chapter; |
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(3) accept contracts or enrollment applications for or |
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on behalf of a career school or college from a representative who is |
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not bonded as required by this chapter; |
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(4) utilize advertising designed to mislead or deceive |
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prospective students; |
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(5) fail to notify the commission of the closure |
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[discontinuance of the operation] of any career school or college |
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within 72 hours of cessation of classes and make available accurate |
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records as required by this chapter; |
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(6) negotiate any promissory instrument received as |
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payment of tuition or other charge by a career school or college |
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prior to completion of 75 percent of the applicable program, |
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provided that prior to such time, the instrument may be transferred |
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by assignment to a purchaser who shall be subject to all the |
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defenses available against the career school or college named as |
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payee; or |
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(7) violate any provision of this chapter. |
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SECTION 3. Subchapter G, Chapter 132, Education Code, is |
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amended by adding Section 132.202 to read as follows: |
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Sec. 132.202. REGISTRATION FEES FOR CERTAIN SCHOOLS OR |
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EDUCATIONAL INSTITUTIONS NOT OPERATING IN THIS STATE. (a) A |
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school or educational institution described by Section |
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132.001(1)(B) shall register with the commission before enrolling |
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any student who, at the time of enrollment, is a resident of this |
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state for purposes of Subchapter B, Chapter 54. |
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(b) The school or educational institution must pay to the |
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commission an annual registration fee in an amount to be determined |
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by the commission. |
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(c) The commission may adopt rules to implement this |
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section. |
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SECTION 4. Subsection (d), Section 132.059, Education Code, |
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is repealed. |
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SECTION 5. The changes in law made by this Act apply only to |
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a certificate of approval issued, an action filed, or other |
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proceeding commenced under Chapter 132, Education Code, on or after |
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the effective date of this Act. A certificate of approval issued, |
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an action filed, or other proceeding commenced before the effective |
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date of this Act is covered by the law in effect at the time the |
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certificate of approval was issued, the action was filed, or other |
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proceeding was commenced, and the former law is continued in effect |
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for that purpose. |
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SECTION 6. This Act takes effect September 1, 2011. |