HBA-EDN C.S.S.B. 1205 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1205 By: Jackson Economic Development 5/3/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Current law defines the term "proprietary school" to mean "any business enterprise...that maintains a place of business within this state, or that solicits business within this state..." and that offers "a course or courses of instruction or study...for the purpose of preparing a person for a new field of endeavor in a business, trade, technical, or industrial occupation or for avocational or personal improvement." Although the definition of the term "proprietary school" in the regulations of the Texas Workforce Commission (TWC) is consistent with the statutory definition, TWC further defines "seminars and workshops" as "a course of instruction that enhances a student's career, in addition to a program that teaches skills and fundamental knowledge required for a state occupation." C.S.S.B. 1205 clarifies that a short course of instruction of 24 classroom hours or less and for which the tuition or fee is less than $500 is exempt from regulation under the provisions for proprietary schools provided that the course meets certain conditions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.S.B. 1205 amends the Education Code to provide that a course of instruction is exempt from provisions relating to proprietary schools if: _the length of the course is 24 classroom hours or less; _the fee for the course is less than $500; _the course is designed to teach knowledge or skills to maintain or enhance a person's competency or performance in a business, trade, or occupation, or to teach recreational or avocational subjects; _no credits or units are awarded on completion of the course toward the completion of another course of instruction of more than 24 classroom hours; _the person offering the course makes available to registrants a written description of the course content and any refund policy not later than the 14th day before the date the course begins; _the person offering the course offers in writing not later than the 14th day before the date the course begins a refund of the course fee to any registrant who completes the lesser of at least 8 classroom hours or one-half of the course, is dissatisfied with the course, and requests a refund and provides in writing to the person a reasonable basis for the registrant's dissatisfaction not later than the 14th day after the date the course is concluded; _for a course in which the instructor or the instructor's qualifications are different from the instructor or the instructor's qualifications stated in any advertising, publicity, or solicitation for the course, the person offering the course offers in writing not later than the 14th day before the date the course begins a refund of the course fee to any registrant who requests a refund before the course begins and for the three-year period following the date the course is concluded, maintains records sufficient to identify the differences between advertised and actual instructors and their qualifications; and _for the three-year period following the date the course is concluded, the person offering the course maintains a record of attendance of registrants, fees paid by registrants, and refunds paid to registrants. C.S.S.B. 1205 provides that a general refund policy for a full refund of fees satisfies the requirements for a refund based on discrepancies between the actual and advertised qualifications of an instructor if the general refund policy is made available in writing to registrants not later than the 14th day before the date the course begins. The bill provides that the refund policy requirements of these provisions prevail in case of any conflict with existing law regarding a refund policy. The bill also provides that a failure to produce records requested by the Texas Workforce Commission within the three-year record retention period by the person claiming an exemption for the course creates a rebuttable legal presumption that the course is not exempt. The bill provides that a course of instruction that is otherwise exempt from provisions relating to proprietary schools is not required to comply with the requirements of these provisions to qualify for an exemption. A course of instruction is not exempt from regulation under these provisions if the course is designed to teach or is represented by the person offering the course as teaching knowledge of building, electrical, plumbing, mechanical, fire, or other similar technical codes applicable to the construction, remodeling, or repair of a home, building, or any other structure or improvement to real property in this state. The bill provides that a business enterprise that offers exclusively courses of instruction that are exempt from regulation under provisions relating to proprietary schools is also exempt from such regulation. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 1205 modifies the original by providing that a course of instruction is not exempt from regulation under the provisions of the bill if the course is designed to teach or is represented by the person offering the course as teaching knowledge of building, electrical, plumbing, mechanical, fire, or other similar technical codes applicable to the construction, remodeling, or repair of a home, building, or any other structure or improvement to real property in this state. The substitute provides that a business enterprise that offers exclusively courses of instruction that are exempt from regulation under provisions relating to proprietary schools is also exempt from such regulation. The substitute provides that for a course to be exempt under the provisions of the bill, the person offering the course must offer the required refund of the course to any registrant who completes the lesser of at least eight classroom hours or one-half of the course, is dissatisfied with the course, and requests a refund and provides in writing a reasonable basis of the dissatisfaction within 14 days of the conclusion of the course. The substitute provides that the refund policy requirements of the provisions of the bill prevail in case of any conflict with existing law regarding a refund policy. The substitute removes the provision that a short course of instruction which meets requirements under the provisions of the bill is not within the definition of "proprietary school."