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A BILL TO BE ENTITLED
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AN ACT
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relating to liability insurance for career schools and colleges. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 132, Education Code, is |
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amended by adding Section 132.0552 to read as follows: |
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Sec. 132.0552. LIABILITY INSURANCE. (a) Notwithstanding |
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Section 132.055, the commission may not approve the application of |
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a career school or college for a certificate of approval or for the |
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renewal of a certificate of approval unless the career school or |
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college maintains a liability insurance policy: |
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(1) issued by an insurance company authorized to write |
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liability insurance in this state or an eligible surplus lines |
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insurer; and |
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(2) that will pay, on behalf of the career school or |
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college, any amount the career school or college becomes obligated |
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to pay as damages arising out of educational or other services |
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provided by the career school or college. |
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(b) The commission shall adopt rules relating to: |
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(1) the minimum amount of insurance coverage required |
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under this section, which may not be less than an aggregate limit of |
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$10 million per year; |
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(2) the method for filing proof of insurance and |
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obtaining the commission's approval under this section; and |
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(3) verification by the commission of a career |
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school's or college's continued maintenance of the required |
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insurance coverage. |
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SECTION 2. Section 132.056(a), Education Code, is amended |
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to read as follows: |
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(a) The commission, on [upon] review of an application for a |
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certificate of approval [duly] submitted in accordance with Section |
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132.052 and meeting the requirements of Sections [Section] 132.055 |
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and 132.0552, shall issue a certificate of approval to the |
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applicant career school or college. The certificate of approval |
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shall be in a form prescribed by the commission and shall state in a |
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clear and conspicuous manner at least the following information: |
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(1) date of issuance, effective date, and term of |
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approval; and |
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(2) correct name and address of the school or college. |
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SECTION 3. (a) The change in law made by this Act applies |
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only to an application for an original or renewal certificate of |
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approval that is submitted on or after the effective date of this |
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Act. An application for an original or renewal certificate of |
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approval that is submitted before the effective date of this Act is |
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governed by the law in effect on the date the application was |
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submitted, and the former law is continued in effect for that |
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purpose. |
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(b) As soon as practicable after the effective date of this |
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Act, the Texas Workforce Commission shall adopt the rules required |
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by Section 132.0552(b), Education Code, as added by this Act. |
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SECTION 4. This Act takes effect September 1, 2017. |