Relating to liability insurance for career schools and colleges.
The impact of this bill is significant as it amends the Education Code, specifically Subchapter C, Chapter 132, by adding a new section related to liability insurance. Institutions looking to obtain or renew their certificate of approval from the Texas Workforce Commission will have to meet the increased insurance requirements stipulated by the legislation. The commission is also tasked with delineating the minimum coverage amounts and establishing rules related to maintaining proof of insurance, which aims to standardize the insurance process across career schools and colleges in Texas.
House Bill 1965 aims to introduce new requirements for liability insurance for career schools and colleges in Texas. Specifically, the bill mandates that these institutions must maintain a liability insurance policy issued by an authorized insurance company. This policy must cover any damages that arise from educational or other services provided by the school or college. The goal of the bill is to enhance the accountability and security of these educational institutions, protecting both the schools and their students from potential liability issues.
While the bill has been generally supported for enhancing protections, there are discussions about its potential implications on the operational costs for career schools and colleges. Some institutions may argue that the increased insurance requirements could lead to higher operational expenses, which might affect their financial stability. There is also concern about how the enforcement of these regulations will be managed and monitored by the Texas Workforce Commission, which could vary across different institutions.
Another notable point of the bill is its phased approach to implementation, with a specific effective date set for September 1, 2017. This timeline allows career schools and colleges to adapt to the new requirements gradually, addressing concerns surrounding compliance and administrative challenges that may arise from the transition to this new system.