Bill Text: TX HB1965 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to liability insurance for career schools and colleges.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-15 - Referred to Higher Education [HB1965 Detail]
Download: Texas-2017-HB1965-Introduced.html
85R4985 MM-D | ||
By: Dutton | H.B. No. 1965 |
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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 [ |
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certificate of approval [ |
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132.052 and meeting the requirements of Sections [ |
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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. |