Part 20.
TEXAS WORKFORCE COMMISSION
Chapter 807.
CAREER SCHOOLS AND COLLEGES
Subchapter A. GENERAL PROVISIONS
The Texas Workforce Commission (Commission) adopts an amendment to §807.1
of Chapter 807 relating to Career Schools and Colleges with changes to the
proposed text as published in the January 23, 2004, issue of the
Texas Register
(29 TexReg 608).
The Commission adopts the repeal of §807.5 of Chapter 807 without
changes to the proposed text as published in the January 23, 2004, issue of
the
Texas Register
(29 TexReg 608).
The Commission adopts amendments to the following sections of Chapter 807
without changes to the proposed text as published in the January 23, 2004,
issue of the
Texas Register
(29 TexReg 608).
Subchapter A. General Provisions, §807.2;
Subchapter B. Certificates of Approval, §§807.11-807.12, §§807.16-807.17;
Subchapter C. Financial Requirements, §807.31, §807.33, and §807.35;
Subchapter E. School Director and Administrative Staff, §807.61 and §807.65;
Subchapter G. Courses of Instruction, §§807.103-807.104;
Subchapter J. Admission, §807.144;
Subchapter K. Progress Standards, §807.163;
Subchapter M. Cancellation and Refund Policy, §807.191 and §§807.193-807.194;
Subchapter Q. Closed Schools, §§807.251-807.252.
The Commission adopts new Subchapter R. Cease and Desist Orders of Chapter
807, Sections §807.271, §807.272, and §§807.274-807.282
without changes to the proposed text and new §807.273 with changes to
the proposed text as published in the January 23, 2004, issue of the
PART I. PURPOSE, BACKGROUND, AND AUTHORITY
A. Purpose
B. Background and Authority
PART II. EXPLANATION OF INDIVIDUAL PROVISIONS
PART III. COORDINATION ACTIVITIES
PART IV. PUBLIC COMMENTS AND RESPONSES
PART I. PURPOSE, BACKGROUND, AND AUTHORITY
A. Purpose
The purpose of the rule amendments is to address statutory changes, as
well as changes in the career schools and colleges industry from the last
revision of the rules. Since then, education-delivery methods have evolved
in a number of areas, particularly distance education. The Internet has created
new educational delivery techniques and new methods for advertising schools
and enrolling students.
B. Background
Effective January 1, 1972, the Texas Legislature enacted the Texas Proprietary
School Act (Act) to provide for protection of students in proprietary schools
and to provide certification and regulation of proprietary schools. The Act
was located in Chapter 32 of the Texas Education Code, and was administered
by the Texas Education Agency, Division of Proprietary Schools, Drivers Training,
and Veterans Education.
In 1995, Senate Bill 1, the 74th Texas Legislature, Regular Session, recodified
Chapter 32 to Chapter 132, Texas Education Code, and required that the Texas
Employment Commission assume the regulatory function of the proprietary schools
system. During the same legislative session, House Bill 1863 created the Texas
Workforce Commission to consolidate workforce employment and training services
and the licensing and regulation of proprietary schools. Consequently, as
of March 1, 1996, references in the law to the Texas Employment Commission
mean the Texas Workforce Commission.
In 2003, Senate Bills 280 and 1343, 78th Texas Legislature, Regular Session,
revised and amended Chapter 132, Texas Education Code, changing all references
to "proprietary schools" to "career schools and colleges" and references to
"correspondence" to "distance education." The statutory amendments added the
requirement that certain schools apply for, and receive, an exemption. The
amendments eliminated the requirement for surety bonds and the tuition protection
fund and created the career school or college tuition trust account (tuition
trust account) . The tuition trust account is a permanently dedicated trust
fund. It is more flexible than the tuition protection fund in handling the
payment of refunds to students of closed schools and the teach-out expenses
of schools that complete the training of the students of a closed school.
The remaining balance in the tuition protection fund on August 31, 2003, was
transferred to the tuition trust account.
The statutory amendments also gave the Commission the authority to issue
a cease and desist order against a career school or college operating without
a certificate of approval. The ability to issue a cease and desist order against
an unlicensed school after an administrative hearing gives the Commission
more flexibility in enforcing the Act's licensing requirements. Ensuring adherence
to the licensing requirements by all career schools and colleges increases
the protections available for students, provides students with better quality
training providers, and supplies employers with an improved pool of trained
employees and job applicants.
Through the Act and the Career Schools and Colleges rules, the Commission's
Career Schools and Colleges (CSC) Department licenses and regulates most private
postsecondary career schools that offer vocational training or continuing
education. The CSC Department also investigates complaints about schools,
monitors schools to ensure regulatory compliance, arranges for the disposition
of students affected by a school closure, and administers the tuition trust
account to pay tuition refunds to students when a school closes. In carrying
out its regulatory duties, the CSC Department seeks to provide customer protection
for Texas students as well as ensure quality training of the labor force to
meet the needs of Texas employers.
The adopted amendments to the Career Schools and Colleges rules address
these issues in order to remove unnecessary requirements and streamline processes
in the regulation of Texas career schools and colleges. The adopted amendments
completely implement the changes to the Act made by Senate Bills 280 and 1343,
78th Texas Legislature, Regular Session. These changes are consistent with
the Governor's vision of limited and efficient state government.
Generally, throughout the chapter the amendments change references to the
terms "proprietary schools" to "career schools and colleges"; "correspondence"
to "distance education"; and "protection fund" to "trust account" to be consistent
with legislative changes to the statute. The other specific amendments, as
well as the reason and purpose of each, are described as follows.
PART II. EXPLANATION OF INDIVIDUAL PROVISIONS
Section 807.1. Title and Purpose
The Commission changes §807.1 references to the term "proprietary
schools" to "career schools and colleges" to be consistent with legislative
changes to the statute. A technical change is also made to §807.1 for
clarity of the rules.
Section 807.2. Definitions
The Commission changes §807.2 references to the terms "proprietary
schools" to "career schools and colleges"; "correspondence" to distance education";
and "small school" to "small career school or college."
Section 807.5. Exemptions
The Commission repeals §807.5 relating to a school's requirement to
apply for an exemption as it is now redundant based on the legislative changes
to the statute.
Section 807.11. Original Approvals
The Commission changes §807.11 by deleting the surety bond requirement
as legislative changes to the statute no longer require a school to obtain
a surety bond.
Section 807.12. Renewal
The Commission changes §807.12 by deleting the surety bond requirement
as legislative changes to the statute no longer require a school to obtain
a surety bond.
Section 807.16. Associate Degrees
The Commission changes §807.16 by deleting the requirement for a school
to offer associate degree programs, deferring to the authority of the Texas
Higher Education Coordinating Board.
Section 807.17. Penalties and Sanctions Regarding Schools
The Commission changes §807.17 by deleting surety bond claims as a
form of penalty or sanction as legislative changes to the statute no longer
require a school to obtain a surety bond.
Section 807.31. Definitions Relating to Financial Requirements
The Commission changes §807.31 by deleting the reference to bonding
as legislative changes to the statute no longer require a school to obtain
a surety bond.
Section 807.33. Financial Requirements for Original Approvals
The Commission changes §807.33 to require new schools to submit a
projection of income in order to be assessed for the tuition trust account
in accordance with legislative changes to the statute.
Section 807.35. Financial Requirements
The Commission changes §807.35 by deleting the reference to bonding
and substitutes language that corresponds with legislative changes to the
statutory definition of a small school.
Section 807.61. School Director Requirements
The Commission changes §807.61 to require school directors to be present
the majority of the time the school is in operation so that they are accessible
to students.
Section 807.65. Director of Degree Programs Requirements
The Commission changes §807.65 by deleting certain requirements for
a director of degree programs, deferring to the authority of the Texas Higher
Education Coordinating Board.
Section 807.103. Program Requirements for Degree Granting Schools
The Commission changes §807.103 by deleting program requirements for
degree granting schools, deferring to the authority of the Texas Higher Education
Coordinating Board.
Section 807.104. Penalties Relating to Courses of Instruction
The Commission changes §807.104 references to the term "program" to
"course of instruction" to make it clear that both programs and seminars must
comply with this section concerning penalties related to courses of instruction.
Section 807.144. Enrollment Agreement
The Commission changes §807.144 to require enrollment agreements for
long-term seminars to facilitate investigations of student complaints and
compute refunds.
Section 807.163. Progress Requirements for Distance Education Schools
The Commission changes §807.163 references to the term "correspondence"
to "distance education" to be consistent with legislative changes to the statute.
Section 807.191. Right to Cancel after Tour
The Commission changes §807.191 references to the term "correspondence"
to "distance education" to be consistent with legislative changes to the statute.
Section 807.193. Refund Requirements for Residence Schools
The Commission changes §807.193 references to the term "correspondence"
to "distance education" to be consistent with legislative changes to the statute.
807.194. Penalties Relating to Refunds
The Commission changes §807.194 references to the term "protection
fund" to "trust account."
Section 807.251. School Closures
The Commission changes §807.251 to make technical corrections to language
and adds the requirements for a teach-out from §807.252 for continuity.
Section 807.252. Tuition Trust Account
The Commission changes §807.252 references to the term "tuition protection
fund" to "tuition trust account" to be consistent with legislative changes
to the statute, and clarifies the assessment method for new schools. The Commission
also deletes references to bonds, as legislative changes to the statute no
longer require a school to obtain a surety bond. The Commission further deletes
the requirements for a teach-out, which were moved to §807.251.
The recent legislative changes to the Act gave the Commission the ability
to issue cease and desist orders to schools that are operating without a certificate
of approval. The following new rules are adopted as a new Subchapter R with
the reason and purpose of each described as follows.
Section 807.271. Definitions Relating to Cease and Desist Orders
The Commission adds new §807.271 to provide definitions used in the
subsequent sections on cease and desist orders. This new subsection is added
as required by §132.306 of the Act.
Section 807.272. Statement of Charges and Notice of Hearing on Cease and
Desist Orders
The Commission adds new §807.272 to identify the Executive Director
of the Texas Workforce Commission as the individual who may issue a statement
of charges and hearing notice for the issuance of a cease and desist order.
This new subsection is added as required by §132.306 of the Act.
Section 807.273. Contents of Statement of Charges and Notice of Hearing
The Commission adds new §807.273 to detail the required contents of
the statement of charges and hearing notice. This new subsection is added
as required by §132.306 of the Act. A technical change is also made to §807.273
for clarity of the rules.
Section 807.274. Service of Statement and Charges and Hearing Notice for
the Issuance of Cease and Desist Orders
The Commission adds new §807.274 to set forth how the statement of
charges and hearing notice will be delivered. This new subsection is added
as required by §132.306 of the Act.
Section 807.275. Agreements to Hold the Hearing at a Later Date
The Commission adds new §807.275 to allow for a mutual agreement to
postpone a hearing. This new subsection is added as required by §132.306
of the Act.
Section 807.276. Hearing
The Commission adds new §807.276 to detail where and how the hearing
will be conducted. This new subsection is added as required by §132.306
of the Act.
Section 807.277. Evidence
The Commission adds new §807.277 to set forth the rules of evidence
for the hearing. This new subsection is added as required by §132.306
of the Act.
Section 807.278. Hearing Officer Disqualification and Withdrawal
The Commission adds new §807.278 to set out conditions under which
the hearing officer may be disqualified or withdraw. This new subsection is
added as required by §132.306 of the Act.
Section 807.279. Hearing Procedure
The Commission adds new §807.279 to set forth the hearing procedures.
This new subsection is added as required by §132.306 of the Act.
Section 807.280. Continuance of Hearing
The Commission adds new §807.280 to detail the permissible conditions
for granting a continuance of a hearing. This new subsection is added as required
by §132.306 of the Act.
Section 807.281. Hearing Decision and Final Review by the Commissioners
The Commission adds new §807.281 to specify how the hearing decision
will be rendered, become final, and the procedures for appeal. This new subsection
is added as required by §132.306 of the Act.
Section 807.282. Effect of the Cease and Desist Order
The Commission adds new §807.282 to set forth the effect of the cease
and desist order. This new subsection is added as required by §132.306
of the Act.
PART III. COORDINATION ACTIVITIES
In the development of these rules for publication and public comment, the
Commission sought and received the involvement of each of Texas' twenty-eight
Local Workforce Development Boards. The Commission provided policy concepts
to the Boards for consideration and review pursuant to Texas Labor Code Section
302.064 and the Commission's Resolution Regarding Board Coordination in Policy
Development adopted September 24, 2002. Prior and during this rulemaking process,
the Commission considered the Boards' contributions. In addition, the Commission
held discussions with the Career Schools and Colleges Workgroup and offered
to present the policy concepts to the Texas Association of Workforce Boards
Policy Committee (formerly known as the Workforce Leadership of Texas (WLT)
Policy Committee) regarding the development and implementation of these rules.
PART IV. PUBLIC COMMENTS AND RESPONSES
One comment was received on behalf of the association of the Career Colleges
and Schools of Texas.
Comment: The commenter thanked the Commission for including the schools
and colleges in the process of assessing the rules and expressed support of
the proposed rule revisions as published.
Response: The Commission thanks the Career Colleges and Schools of Texas
for its collaborative efforts to improve educational opportunities for the
citizens of Texas. The Commission also appreciates the positive comments and
agrees that the proposed rules should be adopted without change.
40 TAC §807.1, §807.2
The rules are adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted rules affect the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
§807.1.Title and Purpose.
(a)
These rules may be cited as the Career Schools and Colleges
rules.
(b)
The purpose of these rules is to implement and interpret
the provisions of the Texas Education Code, Chapter 132, Career Schools and
Colleges. The Commission shall evaluate each school according to the standards
of practice set forth in the Act and this chapter. The Commission will provide
assistance, whenever possible, in complying with this chapter.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 6, 2004.
TRD-200402346
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
40 TAC §807.5
The repeal is adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted repeal affects the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 6, 2004.
TRD-200402344
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
40 TAC §§807.11, 807.12, 807.16, 807.17
The rules are adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted rules affect the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 6, 2004.
TRD-200402349
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
40 TAC §§807.31, 807.33, 807.35
The rules are adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted rules affect the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 6, 2004.
TRD-200402354
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
40 TAC §807.61, §807.65
The rules are adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted rules affect the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 6, 2004.
TRD-200402355
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
40 TAC §807.103, §807.104
The rules are adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted rules affect the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 6, 2004.
TRD-200402356
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
40 TAC §807.144
The rules are adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted rules affect the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 6, 2004.
TRD-200402357
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
40 TAC §807.163
The rules are adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted rules affect the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 6, 2004.
TRD-200402358
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
40 TAC §§807.191, 807.193, 807.194
The rules are adopted under Texas Labor Code, Title 4, §301.0015
and §302.002(d), which provides the Texas Workforce Commission with the
authority to adopt, amend, or repeal such rules as it deems necessary for
the effective administration of the Commission and compliance with Texas Education
Code, Chapter 132, Career Schools and Colleges, and particularly §132.021,
which authorizes the Commission to adopt rules necessary to carry out this
chapter.
The adopted rules affect the Texas Labor Code, Title 4, §301.0015
and §302.002(d), and Texas Education Code, Chapter 132, Career Schools
and Colleges.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 6, 2004.
TRD-200402359
John Moore
General Counsel
Texas Workforce Commission
Effective date: April 26, 2004
Proposal publication date: January 23, 2004
For further information, please call: (512) 463-2573
Subchapter B. CERTIFICATES OF APPROVAL
Subchapter C. FINANCIAL REQUIREMENTS
Subchapter E. SCHOOL DIRECTOR AND ADMINISTRATIVE STAFF
Subchapter G. COURSES OF INSTRUCTION
Subchapter J. ADMISSION
Subchapter K. PROGRESS STANDARDS
Subchapter M. CANCELLATION AND REFUND POLICY
Subchapter Q. CLOSED SCHOOLS