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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to the qualification of certain nonprofit schools and  | 
      
      
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        educational institutions for exemption from state laws regulating  | 
      
      
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        career schools and colleges and to complaints made against those  | 
      
      
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        entities. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Section 132.002, Education Code, is amended by  | 
      
      
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        adding Subsections (d-1), (h), (i), (j), and (k) to read as follows: | 
      
      
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               (d-1)  A school or educational institution exempted from  | 
      
      
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        this chapter is authorized to offer training in this state allowed  | 
      
      
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        by the exemption. | 
      
      
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               (h)  A school or educational institution that participates  | 
      
      
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        or intends to participate in student financial aid programs under  | 
      
      
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        Title IV, Higher Education Act of 1965 (20 U.S.C. Section 1070 et  | 
      
      
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        seq.), may not be exempted from this chapter by the commission on  | 
      
      
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        the basis of Subsection (a)(2) unless the school or institution  | 
      
      
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        demonstrates to the commission that: | 
      
      
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                     (1)  either: | 
      
      
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                           (A)  the school or institution is accredited by a  | 
      
      
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        regional or national accrediting organization recognized by the  | 
      
      
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        United States secretary of education; or | 
      
      
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                           (B)  the school or institution, or the primary  | 
      
      
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        campus of the school or institution, has been operating  | 
      
      
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        continuously in this state for at least 20 years in compliance with  | 
      
      
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        state career school regulatory requirements, regardless of the  | 
      
      
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        amount of time the current owner has owned the school or  | 
      
      
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        institution; or | 
      
      
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                     (2)  the school or institution: | 
      
      
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                           (A)  is owned, controlled, operated, and  | 
      
      
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        maintained by a religious organization lawfully operating as a  | 
      
      
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        nonprofit religious corporation; and | 
      
      
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                           (B)  awards only degrees or certificates relating  | 
      
      
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        to religion, including a certificate of Talmudic studies, an  | 
      
      
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        associate of biblical studies degree, a master of divinity degree,  | 
      
      
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        or a doctor of divinity degree. | 
      
      
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               (i)  For purposes of Subsection (h)(1)(B), "primary campus"  | 
      
      
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        means, for two or more schools or educational institutions that are  | 
      
      
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        owned and operated by the same owner, the school or educational  | 
      
      
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        institution designated by the owner as the main or principal  | 
      
      
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        campus. | 
      
      
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               (j)  A school or educational institution may demonstrate  | 
      
      
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        compliance with Subsection (h): | 
      
      
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                     (1)  through the application process under Subsection  | 
      
      
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        (d); or | 
      
      
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                     (2)  if the school or institution has previously been  | 
      
      
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        granted an exemption from this chapter and the most recent  | 
      
      
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        exemption was granted before June 30, 2013, by an affidavit  | 
      
      
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        submitted to the commission by the owner of the school or  | 
      
      
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        institution. | 
      
      
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               (k)  The Texas Higher Education Coordinating Board shall  | 
      
      
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        take appropriate action, including by making appropriate referrals  | 
      
      
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        to an accrediting agency or to the attorney general, to address any  | 
      
      
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        complaint received by the coordinating board from a student or  | 
      
      
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        prospective student of a school or institution to which Subsection  | 
      
      
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        (h) applies that is: | 
      
      
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                     (1)  exempted from this chapter on the basis of  | 
      
      
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        Subsection (a)(2); and | 
      
      
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                     (2)  subject to regulation by the coordinating board. | 
      
      
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               SECTION 2.  This Act takes effect immediately if it receives  | 
      
      
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        a vote of two-thirds of all the members elected to each house, as  | 
      
      
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        provided by Section 39, Article III, Texas Constitution.  If this  | 
      
      
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        Act does not receive the vote necessary for immediate effect, this  | 
      
      
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        Act takes effect September 1, 2013. | 
      
      
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         | 
      
      
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        * * * * * |