82R9211 JRH-F
By: Alonzo H.B. No. 2784
A BILL TO BE ENTITLED
AN ACT
relating to the refund policy for courses at career schools and
colleges.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 132.061(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (g), as a condition for
granting certification each career school or college must maintain
a policy for the refund of the unused portion of tuition, fees, and
other charges in the event the student, after expiration of the
72-hour cancellation privilege, fails to enter a program in which
the student is enrolled or withdraws or is discontinued from the
program at any time prior to completion, and such policy must
provide:
(1) refunds for resident programs and synchronous
distance education courses will be based on the period of
enrollment computed on the basis of course time;
(2) the effective date of termination for refund
purposes in residence career schools or colleges will be the
earliest of the following:
(A) the last date of attendance, if the student
is terminated by the school or college;
(B) the date of receipt of written notice of
withdrawal from the student; or
(C) 10 school days following the last date of
attendance;
(3) if tuition and fees are collected in advance of
entrance, and if, after expiration of the 72-hour cancellation
privilege, the student does not enter the residence career school
or college, not more than $100 shall be retained by the school or
college;
(4) for the student who enters a residence program or a
synchronous distance education course and who [of not more than 12
months in length, terminates, or] withdraws or is otherwise
terminated, the school or college may retain not more than $100 of
tuition and fees and the minimum refund of the remaining tuition and
fees will be the pro rata portion of tuition, fees, and other
charges that the number of hours of course time remaining in the
student's program after the effective date of termination bears to
the total number of hours of course time in the program, except that
a student may not collect a refund if the student has completed 75
percent or more of the total number of hours of course time in the
program on the effective date of termination[:
[(A) during the first week or one-tenth of the
program or course, whichever is less, 90 percent of the remaining
tuition and fees;
[(B) after the first week or one-tenth of the
program or course, whichever is less, but within the first three
weeks or one-fifth of the program or course, whichever is less, 80
percent of the remaining tuition and fees;
[(C) after the first three weeks or one-fifth of
the program or course, whichever is less, but within the first
quarter of the program or course, 75 percent of the remaining
tuition and fees;
[(D) during the second quarter of the program or
course, 50 percent of the remaining tuition and fees;
[(E) during the third quarter of the program or
course, 10 percent of the remaining tuition and fees; or
[(F) during the last quarter of the program or
course, the student may be considered obligated for the full
tuition and fees];
(5) [for residence programs or synchronous distance
education courses more than 12 months in length, the refund shall be
applied to each 12-month period paid, or part thereof separately,
and the student is entitled to a refund as provided by Subdivision
(4);
[(6)] refunds of items of extra expense to the
student, such as instructional supplies, books, student
activities, laboratory fees, service charges, rentals, deposits,
and all other such ancillary miscellaneous charges, where these
items are separately stated and shown in the data furnished the
student before enrollment, will be made in a reasonable manner
acceptable to the commission;
(6) [(7)] refunds based on enrollment in residence and
synchronous distance education schools or colleges will be totally
consummated within 60 days after the effective date of termination;
(7) [(8)] refunds for asynchronous distance education
courses will be computed on the basis of the number of lessons in
the course;
(8) [(9)] the effective date of termination for refund
purposes in residence programs and synchronous and asynchronous
distance education courses will be the earliest of the following:
(A) the date of notification to the student if
the student is terminated;
(B) the date of receipt of written notice of
withdrawal from the student; or
(C) the end of the third calendar month following
the month in which the student's last lesson assignment was
received unless notification has been received from the student
that the student wishes to remain enrolled;
(9) [(10)] if tuition and fees are collected before
any lessons for a program have been completed, and if, after
expiration of the 72-hour cancellation privilege, the student fails
to begin the program, not more than $50 shall be retained by the
school or college;
(10) [(11)] in cases of termination or withdrawal
after the student has begun the asynchronous distance education
course, the school or college may retain $50 of tuition and fees,
and the minimum refund policy must provide that the student will be
refunded the pro rata portion of the remaining tuition, fees, and
other charges that the number of lessons completed and serviced by
the school or college bears to the total number of lessons in the
course; and
(11) [(12)] refunds based on enrollment in
asynchronous distance education schools or colleges will be totally
consummated within 60 days after the effective date of termination.
SECTION 2. (a) The change in law made by this Act to Section
132.061, Education Code, applies only to the refund policy of a
career school or college to which a certificate of approval is
granted or for which a certificate of approval is renewed on or
after the date this Act takes effect.
(b) The refund policy of a career school or college to which
a certificate of approval is granted or for which a certificate of
approval is renewed before the date this Act takes effect is
governed by the law in effect on the most recent date the
certificate of approval was granted or renewed until the
certificate of approval expires or is renewed on or after the date
this Act takes effect, and the former law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2011.