| 1 | 1 | | 85R4985 MM-D |
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| 2 | 2 | | By: Dutton H.B. No. 1965 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to liability insurance for career schools and colleges. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter C, Chapter 132, Education Code, is |
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| 10 | 10 | | amended by adding Section 132.0552 to read as follows: |
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| 11 | 11 | | Sec. 132.0552. LIABILITY INSURANCE. (a) Notwithstanding |
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| 12 | 12 | | Section 132.055, the commission may not approve the application of |
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| 13 | 13 | | a career school or college for a certificate of approval or for the |
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| 14 | 14 | | renewal of a certificate of approval unless the career school or |
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| 15 | 15 | | college maintains a liability insurance policy: |
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| 16 | 16 | | (1) issued by an insurance company authorized to write |
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| 17 | 17 | | liability insurance in this state or an eligible surplus lines |
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| 18 | 18 | | insurer; and |
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| 19 | 19 | | (2) that will pay, on behalf of the career school or |
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| 20 | 20 | | college, any amount the career school or college becomes obligated |
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| 21 | 21 | | to pay as damages arising out of educational or other services |
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| 22 | 22 | | provided by the career school or college. |
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| 23 | 23 | | (b) The commission shall adopt rules relating to: |
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| 24 | 24 | | (1) the minimum amount of insurance coverage required |
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| 25 | 25 | | under this section, which may not be less than an aggregate limit of |
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| 26 | 26 | | $10 million per year; |
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| 27 | 27 | | (2) the method for filing proof of insurance and |
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| 28 | 28 | | obtaining the commission's approval under this section; and |
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| 29 | 29 | | (3) verification by the commission of a career |
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| 30 | 30 | | school's or college's continued maintenance of the required |
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| 31 | 31 | | insurance coverage. |
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| 32 | 32 | | SECTION 2. Section 132.056(a), Education Code, is amended |
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| 33 | 33 | | to read as follows: |
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| 34 | 34 | | (a) The commission, on [upon] review of an application for a |
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| 35 | 35 | | certificate of approval [duly] submitted in accordance with Section |
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| 36 | 36 | | 132.052 and meeting the requirements of Sections [Section] 132.055 |
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| 37 | 37 | | and 132.0552, shall issue a certificate of approval to the |
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| 38 | 38 | | applicant career school or college. The certificate of approval |
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| 39 | 39 | | shall be in a form prescribed by the commission and shall state in a |
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| 40 | 40 | | clear and conspicuous manner at least the following information: |
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| 41 | 41 | | (1) date of issuance, effective date, and term of |
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| 42 | 42 | | approval; and |
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| 43 | 43 | | (2) correct name and address of the school or college. |
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| 44 | 44 | | SECTION 3. (a) The change in law made by this Act applies |
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| 45 | 45 | | only to an application for an original or renewal certificate of |
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| 46 | 46 | | approval that is submitted on or after the effective date of this |
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| 47 | 47 | | Act. An application for an original or renewal certificate of |
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| 48 | 48 | | approval that is submitted before the effective date of this Act is |
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| 49 | 49 | | governed by the law in effect on the date the application was |
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| 50 | 50 | | submitted, and the former law is continued in effect for that |
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| 51 | 51 | | purpose. |
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| 52 | 52 | | (b) As soon as practicable after the effective date of this |
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| 53 | 53 | | Act, the Texas Workforce Commission shall adopt the rules required |
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| 54 | 54 | | by Section 132.0552(b), Education Code, as added by this Act. |
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| 55 | 55 | | SECTION 4. This Act takes effect September 1, 2017. |
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