By: Shapiro S.B. No. 1534
(In the Senate - Filed March 10, 2011; March 22, 2011, read
first time and referred to Committee on Economic Development;
April 26, 2011, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 5, Nays 0; April 26, 2011,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1534 By: Harris
A BILL TO BE ENTITLED
AN ACT
relating to the operation and certification of career schools or
colleges.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subdivisions (1) and (4), Section 132.001,
Education Code, are amended to read as follows:
(1) "Career school or college":
(A) means any business enterprise operated for a
profit or on a nonprofit basis that maintains a physical place of
business within this state or solicits business within this state,
that is not specifically exempted by this chapter, and:
(i) [(A)] that offers or maintains a course
or courses of instruction or study; or
(ii) [(B)] at which place of business such
a course or courses of instruction or study are available through
classroom instruction or by distance education, or both, to a
person for the purpose of training or preparing the person for a
field of endeavor in a business, trade, technical, or industrial
occupation, or for avocational or personal improvement; and
(B) does not include a school or educational
institution that:
(i) is physically located in another state;
(ii) is legally authorized by the state of
its physical location to offer postsecondary education and award
degrees;
(iii) is accredited by a national
accrediting organization recognized by the United States secretary
of education under the Higher Education Act of 1965 (20 U.S.C.
Section 1001 et seq.); and
(iv) offers in this state only
postsecondary distance or correspondence programs of instruction.
(4) "Representative" means a person employed by a
career school or college[, whether the school or college is located
within or without this state,] to act as an agent, solicitor,
broker, or independent contractor to directly procure students for
the school or college by solicitation within [or without] this
state at any place.
SECTION 2. Sections 132.052 and 132.151, Education Code,
are amended to read as follows:
Sec. 132.052. APPLICATION FOR CERTIFICATE OF APPROVAL.
Every career school or college desiring to operate in this state [or
do business in this state] shall make written application to the
commission for a certificate of approval. Such application shall
be verified, be in such form as may be prescribed by the commission,
and shall furnish the commission such information as the commission
may require.
Sec. 132.151. PROHIBITIONS. A person may not:
(1) operate a career school or college without a
certificate of approval issued by the commission;
(2) solicit prospective students for or on behalf of a
career school or college without being registered as a
representative of the career school or college as required by this
chapter;
(3) accept contracts or enrollment applications for or
on behalf of a career school or college from a representative who is
not bonded as required by this chapter;
(4) utilize advertising designed to mislead or deceive
prospective students;
(5) fail to notify the commission of the closure
[discontinuance of the operation] of any career school or college
within 72 hours of cessation of classes and make available accurate
records as required by this chapter;
(6) negotiate any promissory instrument received as
payment of tuition or other charge by a career school or college
prior to completion of 75 percent of the applicable program,
provided that prior to such time, the instrument may be transferred
by assignment to a purchaser who shall be subject to all the
defenses available against the career school or college named as
payee; or
(7) violate any provision of this chapter.
SECTION 3. Subchapter G, Chapter 132, Education Code, is
amended by adding Section 132.202 to read as follows:
Sec. 132.202. REGISTRATION FEES FOR CERTAIN SCHOOLS OR
EDUCATIONAL INSTITUTIONS NOT OPERATING IN THIS STATE. (a) A
school or educational institution described by Section
132.001(1)(B) shall register with the commission before enrolling
any student who, at the time of enrollment, is a resident of this
state for purposes of Subchapter B, Chapter 54.
(b) The school or educational institution must pay to the
commission an annual registration fee in an amount to be determined
by the commission.
(c) The commission may adopt rules to implement this
section.
SECTION 4. Subsection (d), Section 132.059, Education Code,
is repealed.
SECTION 5. The changes in law made by this Act apply only to
a certificate of approval issued, an action filed, or other
proceeding commenced under Chapter 132, Education Code, on or after
the effective date of this Act. A certificate of approval issued,
an action filed, or other proceeding commenced before the effective
date of this Act is covered by the law in effect at the time the
certificate of approval was issued, the action was filed, or other
proceeding was commenced, and the former law is continued in effect
for that purpose.
SECTION 6. This Act takes effect September 1, 2011.
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