82R21929 KYF-F
By: Alonzo H.B. No. 2784
Substitute the following for H.B. No. 2784:
By: Miles C.S.H.B. No. 2784
A BILL TO BE ENTITLED
AN ACT
relating to the refund policy for courses and programs at career
schools and colleges.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 132.061(b), (f), and (g), Education
Code, are 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 or programs will be based on the period
of enrollment computed on the basis of course or program time;
(2) the effective date of termination for refund
purposes in residence programs and synchronous distance education
courses or programs [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 or program 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 administrative [tuition and] fees charged 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 remaining in the portion of the course or program for which
the student paid after the effective date of termination bears to
the total number of hours in the portion of the course or program
for which the student paid[:
[(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 courses or programs [schools or
colleges] will be totally consummated within 60 days after the
effective date of termination;
(7) [(8)] refunds for asynchronous distance education
courses or programs will be computed on the basis of the number of
lessons in the course or program;
(8) [(9)] the effective date of termination for refund
purposes in asynchronous distance education courses or programs
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 courses [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 or program, 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 courses
[lessons] completed and serviced by the school or college bears to
the total number of courses [lessons] in the program [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.
(f) A career school or college shall record a grade of
"incomplete" for a student who withdraws during the last quarter of
a course or program [but is not entitled to a refund under
Subsection (b)(4)(F)] if the student requests the grade at the time
the student withdraws and the student withdraws for an appropriate
reason unrelated to the student's academic status. A student who
receives a grade of incomplete may re-enroll in the program during
the 12-month period following the date the student withdraws, pay
the amount of tuition refunded to the student under Subsection (b),
and complete those incomplete subjects [without payment of
additional tuition].
(g) A program that is 40 hours or less of course time, or a
seminar or workshop, is exempt from the 72-hour rule provided by
Subsection (a). The career school or college shall maintain a
policy for the refund of the unused portion of tuition, fees, and
other charges in the event the student fails to enter the program or
withdraws or is discontinued from the program at any time before
completion of the program as provided by this section. The policy
must provide that:
(1) refunds are based on the period of enrollment
computed on the basis of course or program time;
(2) the effective date of termination for refund
purposes is the earlier of:
(A) the last date of attendance; or
(B) the date the school or college receives
written notice from the student that the student is withdrawing
from the class; and
(3) the student will be refunded the pro rata portion
of tuition, fees, and other charges that the number of hours [of
course time] remaining in the portion of the [student's] program
for which the student paid after the effective date of termination
bears to the total number of hours in the portion of [of course time
in] the program for which the student paid.
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.