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Amend CSHB 3325 (house committee report) by adding the following appropriately numbered SECTIONS to the bill and renumbering subsequent SECTIONS of the bill accordingly:
SECTION ____. Subchapter J, Chapter 1602, Occupations Code, is amended by adding Section 1602.450 to read as follows:
Sec. 1602.450. DEFINITIONS. In this subchapter:
(1) "Earned tuition" means the portion of tuition owed by a student to a beauty culture school for instruction the student has been scheduled to receive.
(2) "Fees" means charges assessed by a beauty culture school that are in addition to tuition. The term includes charges for instructional supplies, books, and kits, student activity fees, laboratory fees, services charges, and deposits.
(3) "Tuition" means the agreed amount to be charged for a complete course of training.
(4) "Unearned tuition" means the portion of tuition collected by a beauty culture school from a student or owed to a beauty culture school by a student for instruction that the student has not yet been scheduled to receive.
SECTION ____. Sections 1602.459(a) and (b), Occupations Code, are amended to read as follows:
(a) If a student begins a course of training at a private beauty culture school and [that is scheduled to run not more than 12 months and, during the last
50
percent of the course,] withdraws from [the course] or is terminated by the school, the school:
(1) may retain 100 percent of the earned tuition [and fees paid by the student]; and
(2) shall refund:
(A) 90 percent of the unearned tuition if the withdrawal or termination occurs during the shorter of the first week or first ten percent of the course;
(B) 70 percent of the unearned tuition if the withdrawal or termination occurs after the first 10 percent and before 30 percent of the course is completed; or
(C) 50 percent of the unearned tuition if the withdrawal or termination occurs after the first 30 percent and before 50 percent of the course is completed [is not obligated to refund any additional outstanding tuition].
(b) If a student [begins a course of training at a private beauty culture school that is scheduled to run not more than 12 months and, before the last
50
percent of the course,] withdraws from [the course] or is terminated by the school after 50 percent of a course is completed, the school may retain all earned and unearned tuition [shall refund:
[(1)
90 percent of any outstanding tuition for a withdrawal or termination that occurs during the first week or first one-tenth of the course, whichever period is shorter;
[(2)
80 percent of any outstanding tuition for a withdrawal or termination that occurs after the first week or first one-tenth of the course, whichever period is shorter, but within the first three weeks of the course;
[(3)
75 percent of any outstanding tuition for a withdrawal or termination that occurs after the first three weeks of the course but not later than the completion of the first 25 percent of the course; and
[(4)
50 percent of any outstanding tuition for a withdrawal or termination that occurs not later than the completion of the first 50 percent of the course].