85R2386 KSD-D By: Menéndez S.B. No. 234 A BILL TO BE ENTITLED AN ACT relating to a prohibition against the use by a career school or college of certain advertising designed to mislead or deceive prospective students. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 132.151, Education Code, is amended to read as follows: 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, including any advertising that infers an endorsement or sponsorship by, or an affiliation with, the United States military or a federal or state government program for veterans, including through the use of any: (A) military insignia, seal, or logo; or (B) military-related terminology in the career school or college's uniform resource locator (URL) address; (5) fail to notify the commission of the closure 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 2. This Act takes effect September 1, 2017.