85R4985 MM-D
By: Dutton H.B. No. 1965
A BILL TO BE ENTITLED
AN ACT
relating to liability insurance for career schools and colleges.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 132, Education Code, is
amended by adding Section 132.0552 to read as follows:
Sec. 132.0552. LIABILITY INSURANCE. (a) Notwithstanding
Section 132.055, the commission may not approve the application of
a career school or college for a certificate of approval or for the
renewal of a certificate of approval unless the career school or
college maintains a liability insurance policy:
(1) issued by an insurance company authorized to write
liability insurance in this state or an eligible surplus lines
insurer; and
(2) that will pay, on behalf of the career school or
college, any amount the career school or college becomes obligated
to pay as damages arising out of educational or other services
provided by the career school or college.
(b) The commission shall adopt rules relating to:
(1) the minimum amount of insurance coverage required
under this section, which may not be less than an aggregate limit of
$10 million per year;
(2) the method for filing proof of insurance and
obtaining the commission's approval under this section; and
(3) verification by the commission of a career
school's or college's continued maintenance of the required
insurance coverage.
SECTION 2. Section 132.056(a), Education Code, is amended
to read as follows:
(a) The commission, on [upon] review of an application for a
certificate of approval [duly] submitted in accordance with Section
132.052 and meeting the requirements of Sections [Section] 132.055
and 132.0552, shall issue a certificate of approval to the
applicant career school or college. The certificate of approval
shall be in a form prescribed by the commission and shall state in a
clear and conspicuous manner at least the following information:
(1) date of issuance, effective date, and term of
approval; and
(2) correct name and address of the school or college.
SECTION 3. (a) The change in law made by this Act applies
only to an application for an original or renewal certificate of
approval that is submitted on or after the effective date of this
Act. An application for an original or renewal certificate of
approval that is submitted before the effective date of this Act is
governed by the law in effect on the date the application was
submitted, and the former law is continued in effect for that
purpose.
(b) As soon as practicable after the effective date of this
Act, the Texas Workforce Commission shall adopt the rules required
by Section 132.0552(b), Education Code, as added by this Act.
SECTION 4. This Act takes effect September 1, 2017.