S.B. No. 1534
AN ACT
relating to the operation, certification, and accountability of
career schools or colleges.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 61.0904, Education Code, is amended to
read as follows:
Sec. 61.0904. REVIEW OF INSTITUTIONAL GROUPINGS. (a) At
least once every 10 years, the board shall conduct a review of the
institutional groupings under the board's higher education
accountability system, including a review of the criteria for and
definitions assigned to those groupings.
(b) The board shall include within the board's higher
education accountability system any career schools and colleges in
this state that offer degree programs. Regardless of whether the
board is conducting a periodic review of institutional groupings as
required by Subsection (a), the board shall determine whether to
create one or more separate institutional groupings for entities to
which this subsection applies. In implementing this subsection,
the board shall:
(1) consult with affected career schools and colleges
regarding the imposition of reporting requirements on those
entities; and
(2) adopt rules that clearly define the types and
amounts of information to be reported to the board.
(c) In advance of each regular session of the legislature,
the board shall report to each standing legislative committee with
primary jurisdiction over higher education regarding any entities
to which Subsection (b) applies that do not participate in the
board's higher education accountability system as provided by that
subsection.
SECTION 2. 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 regional or
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 3. 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 4. Subchapter G, Chapter 132, Education Code, is
amended by adding Section 132.202 to read as follows:
Sec. 132.202. REQUIRED POSTING BY CERTAIN SCHOOLS OR
EDUCATIONAL INSTITUTIONS NOT OPERATING IN THIS STATE. A school or
educational institution described by Section 132.001(1)(B) shall
post a conspicuous notice on the home page of its website stating:
(1) that the career school or college is not regulated
in Texas under this chapter;
(2) the name of any regulatory agencies that approve
and regulate the school's programs in the state where the school is
physically located and in which it has legal authorization to
operate; and
(3) how to file complaints or make other contact with
applicable regulatory agencies.
SECTION 5. Subsection (d), Section 132.059, Education Code,
is repealed.
SECTION 6. The changes in law made by this Act apply only to
a certificate of approval issued, an action filed, or any 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 any 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 the other proceeding was commenced, and the former law is
continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1534 passed the Senate on
April 29, 2011, by the following vote: Yeas 29, Nays 2;
May 24, 2011, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 25, 2011, House
granted request of the Senate; May 28, 2011, Senate adopted
Conference Committee Report by the following vote: Yeas 29,
Nays 2.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1534 passed the House, with
amendments, on May 23, 2011, by the following vote: Yeas 145,
Nays 0, two present not voting; May 25, 2011, House granted request
of the Senate for appointment of Conference Committee;
May 28, 2011, House adopted Conference Committee Report by the
following vote: Yeas 147, Nays 0, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor