Bill Text: TX HB4068 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to the regulation of barber schools and beauty culture schools; amending provisions subject to a criminal penalty.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-05-13 - Placed on General State Calendar [HB4068 Detail]
Download: Texas-2015-HB4068-Comm_Sub.html
84R21905 MAW-F | |||
By: Smith | H.B. No. 4068 | ||
Substitute the following for H.B. No. 4068: | |||
By: Smith | C.S.H.B. No. 4068 |
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relating to the regulation of barber schools and beauty culture | ||
schools; amending provisions subject to a criminal penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 1601.001(a), Occupations Code, is | ||
amended by amending Subdivisions (1-a), (4-b), and (6) and adding | ||
Subdivisions (1-b), (4-c), (4-d), (6-a), (6-b), and (7-a) to read | ||
as follows: | ||
(1-a) "Barber establishment" means a barbershop, | ||
mini-barbershop, specialty shop, dual shop, mini-dual shop, mobile | ||
shop, or barber school that is subject to regulation under this | ||
chapter. | ||
(1-b) "Barber school" means a place that holds a | ||
permit issued under Subchapter H to teach the practice of barbering | ||
and may be privately or publicly funded. The term includes a barber | ||
college. | ||
(4-b) "Course" means an identifiable unit of | ||
instruction that is part of a course of training. | ||
(4-c) "Course of training" means the curriculum | ||
offered by a barber school to satisfy licensure requirements. | ||
(4-d) "Department" means the Texas Department of | ||
Licensing and Regulation. | ||
(6) "Enrollment agreement" means the written terms | ||
under which a student agrees to attend a course of training. | ||
(6-a) "Executive director" means the executive | ||
director of the department. | ||
(6-b) "Manager" means the person who controls or | ||
directs the business of a barbershop or directs the work of a person | ||
employed in a barbershop. | ||
(7-a) "Owner" means, with respect to a barber | ||
establishment: | ||
(A) the individual owner of the barber | ||
establishment; | ||
(B) any partner of a partnership that owns the | ||
barber establishment; | ||
(C) the corporation that owns the barber | ||
establishment and its directors, its officers, and each shareholder | ||
owning shares of issued and outstanding stock aggregating at least | ||
10 percent of the total of the issued and outstanding shares; | ||
(D) the beneficiary of a trust that holds an | ||
ownership interest in the barber establishment; or | ||
(E) each person who owns not less than 10 percent | ||
of a legal entity that owns the barber establishment. | ||
SECTION 2. Section 1601.3571(b), Occupations Code, is | ||
amended to read as follows: | ||
(b) The comptroller shall invest the account in the same | ||
manner as other state funds. Sufficient money from the account | ||
shall be appropriated to the department for the purpose of | ||
refunding unearned [ |
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operation before its course of instruction is complete. The | ||
department shall administer claims made against the account. In | ||
this subsection, "unearned tuition" has the meaning assigned by | ||
Section 1601.550. | ||
SECTION 3. Subchapter L, Chapter 1601, Occupations Code, is | ||
amended by adding Section 1601.550 to read as follows: | ||
Sec. 1601.550. DEFINITIONS. In this subchapter: | ||
(1) "Earned tuition" means the portion of tuition and | ||
fees owed by a student to a barber school for instruction the | ||
student has received. | ||
(2) "Fees" means charges assessed by a barber school | ||
that are in addition to tuition. The term includes charges for | ||
instructional supplies, books, and kits, student activity fees, | ||
laboratory fees, services charges, and deposits. | ||
(3) "Tuition" means the agreed amount to be charged | ||
for a complete course of training. | ||
(4) "Unearned tuition" means the portion of tuition | ||
and fees charged by a barber school to a student for which the | ||
student has not yet received instruction. | ||
SECTION 4. Section 1601.556, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1601.556. INFORMATION PROVIDED TO PROSPECTIVE | ||
STUDENT. The holder of a barber school permit shall furnish each | ||
prospective student with: | ||
(1) a course outline; | ||
(2) a schedule of the tuition and each fee [ |
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assessed; | ||
(3) the school's policies [ |
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under Sections 1601.562 and [ |
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provided by Section 1601.564; | ||
(4) the school's grading policy and rules relating to | ||
incomplete grades; | ||
(5) the school's rules of operation and conduct, | ||
including rules relating to absences; | ||
(6) the department's name, mailing address, and | ||
telephone number for the purpose of directing complaints to the | ||
department; and | ||
(7) the current rates of job placement and employment | ||
of students who complete a course of training. | ||
SECTION 5. Section 1601.563, Occupations Code, is amended | ||
by amending Subsections (a) and (c) and adding Subsections (b-1), | ||
(d), (e), and (f) to read as follows: | ||
(a) A barber school permit holder shall maintain a refund | ||
policy to provide for the refund of the unearned [ |
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tuition charged to [ |
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who, after the expiration of the cancellation period established | ||
under Section 1601.562: | ||
(1) fails to begin the course of training; | ||
(2) withdraws from the course of training; or | ||
(3) is terminated from the course of training before | ||
completion of the course of training. | ||
(b-1) The minimum refund of unearned tuition to a student is | ||
calculated by dividing the number of hours remaining in the course | ||
for which the student has been charged after the effective date of | ||
the termination by the total number of hours in the course for which | ||
the student has been charged, and then multiplying the resulting | ||
number by the amount of the tuition. | ||
(c) A barber school permit holder shall publish in the | ||
catalogue and enrollment agreement of the school a description of | ||
the refund policies [ |
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(d) The owner of a barber school shall calculate the refund | ||
on a form approved by the department or in a manner acceptable to | ||
the department. | ||
(e) Refunds for fees charged to the student shall be made in | ||
a reasonable manner. | ||
(f) The owner of a barber school may seek recovery from a | ||
student of the unpaid portion of earned tuition owed by the student. | ||
SECTION 6. Sections 1601.564(a) and (c), Occupations Code, | ||
are amended to read as follows: | ||
(a) If a student who begins a course of training [ |
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terminated from the course by the barber school, the school: | ||
(1) may retain 100 percent of the earned [ |
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tuition [ |
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(2) is not obligated to refund any unearned | ||
[ |
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terminated during the last 25 [ |
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(c) If a student withdraws or is terminated after 50 percent | ||
of the course has been completed, the school shall allow the student | ||
to reenter the school at any time before the second [ |
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anniversary of the date of withdrawal or termination. | ||
SECTION 7. Section 1601.565(b), Occupations Code, is | ||
amended to read as follows: | ||
(b) A student who receives a grade of incomplete may | ||
reenroll in the course of training before the second [ |
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anniversary of the date the student withdraws and may complete the | ||
subjects without incurring [ |
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SECTION 8. Sections 1601.566(a), (b), and (d), Occupations | ||
Code, are amended to read as follows: | ||
(a) A barber school shall pay a refund owed under this | ||
subchapter not later than the 30th day after the later of: | ||
(1) the effective date of the termination; or | ||
(2) the date the student otherwise becomes eligible | ||
for the refund. | ||
(b) A school that fails to pay the refund within the period | ||
required by this section shall pay penalty interest on the amount of | ||
the refund for the period beginning on the first [ |
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the date the school was required to pay the refund under Subsection | ||
(a) [ |
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preceding the date the refund is made. The Texas Workforce | ||
Commission [ |
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penalty interest rate at a rate sufficient to deter a school from | ||
retaining money paid by a student. | ||
(d) The executive director [ |
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good faith effort to refund the tuition but is unable to locate the | ||
student. The school shall provide to the department on request | ||
documentation of the school's effort to locate the student. | ||
SECTION 9. Subchapter L, Chapter 1601, Occupations Code, is | ||
amended by adding Section 1601.567 to read as follows: | ||
Sec. 1601.567. EFFECT OF SCHOOL CLOSURE. (a) A school that | ||
ceases to operate shall refund unearned tuition. | ||
(b) A refund under this section may be paid from the barber | ||
school tuition protection account. The amount paid from the | ||
account may not exceed $1,000 per student. | ||
SECTION 10. Section 1602.001, Occupations Code, is amended | ||
by amending Subdivision (1) and adding Subdivisions (1-a), (2-a), | ||
(2-b), (2-c), (3-b), and (4-a) to read as follows: | ||
(1) "Beauty culture school" means a cosmetology | ||
school, public or private, that is subject to regulation under this | ||
chapter. | ||
(1-a) "Board" means the Advisory Board on Cosmetology. | ||
(2-a) "Cosmetology establishment" means a beauty | ||
salon, beauty shop, specialty salon, specialty shop, mini-salon, | ||
dual shop, mini dual-shop, mobile shop, or beauty culture school, | ||
public or private, that is subject to regulation under this | ||
chapter. | ||
(2-b) "Course" means an identifiable unit of | ||
instruction that is part of a course of training. | ||
(2-c) "Course of training" means the curriculum | ||
offered by a beauty culture school to satisfy licensure | ||
requirements. | ||
(3-b) "Enrollment agreement" means the written terms | ||
under which a student agrees to attend a course of training. | ||
(4-a) "Owner" means, with respect to a cosmetology | ||
establishment: | ||
(A) the individual owner of the cosmetology | ||
establishment; | ||
(B) any partner of a partnership that owns the | ||
cosmetology establishment; | ||
(C) the corporation that owns the cosmetology | ||
establishment and its directors, its officers, and each shareholder | ||
owning shares of issued and outstanding stock aggregating at least | ||
10 percent of the total of the issued and outstanding shares; | ||
(D) the beneficiary of a trust that holds an | ||
ownership interest in the cosmetology establishment; or | ||
(E) each person who owns not less than 10 percent | ||
of a legal entity that owns the cosmetology establishment. | ||
SECTION 11. Subchapter J, Chapter 1602, Occupations Code, | ||
is amended by adding Section 1602.450 to read as follows: | ||
Sec. 1602.450. DEFINITIONS. In this subchapter: | ||
(1) "Earned tuition" means the portion of tuition and | ||
fees owed by a student to a beauty culture school for instruction | ||
the student has received. | ||
(2) "Fees" means charges assessed by a beauty culture | ||
school that are in addition to tuition. The term includes charges | ||
for instructional supplies, books, and kits, student activity fees, | ||
laboratory fees, services charges, and deposits. | ||
(3) "Tuition" means the agreed amount to be charged | ||
for a complete course of training. | ||
(4) "Unearned tuition" means the portion of tuition | ||
and fees charged by a beauty culture school to a student for which | ||
the student has not yet received instruction. | ||
SECTION 12. Section 1602.452, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1602.452. INFORMATION PROVIDED TO PROSPECTIVE | ||
STUDENT. The holder of a private beauty culture school license | ||
shall furnish each prospective student with: | ||
(1) a course outline; | ||
(2) a schedule of the tuition and each fee [ |
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assessed; | ||
(3) the policies [ |
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Sections 1602.457 and [ |
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provided by Section 1602.459; | ||
(4) the school grading policy and rules relating to | ||
incomplete grades; | ||
(5) the school rules of operation and conduct, | ||
including rules relating to absences; | ||
(6) the name, mailing address, and telephone number of | ||
the department for the purpose of directing complaints to the | ||
department; and | ||
(7) the current rates of job placement and employment | ||
of students who complete a course of training. | ||
SECTION 13. Section 1602.455(d), Occupations Code, is | ||
amended to read as follows: | ||
(d) The department may [ |
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to the school to which the student seeks a transfer that: | ||
(1) the stated courses and hours have been | ||
successfully completed; and | ||
(2) the student is not required to repeat the hours of | ||
instruction. | ||
SECTION 14. Section 1602.458, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1602.458. REFUND POLICY. (a) The holder of a private | ||
beauty culture school license shall maintain a refund policy to | ||
provide for the refund of any unearned [ |
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charged to [ |
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expiration of the cancellation period established under Section | ||
1602.457: | ||
(1) fails to enter the course of training; | ||
(2) withdraws from the course of training; or | ||
(3) is terminated from the course of training before | ||
completion of the course of training. | ||
(b) The refund policy must provide that: | ||
(1) the refund is based on the period of the student's | ||
enrollment, computed on the basis of course time expressed in | ||
scheduled hours, as specified by an enrollment agreement, contract, | ||
or other document acceptable to the department; | ||
(2) the effective date of the termination for refund | ||
purposes is the earliest of: | ||
(A) the last date of attendance, if the student | ||
is terminated by the school; | ||
(B) the date the license holder receives the | ||
student's written notice of withdrawal; or | ||
(C) 10 school days after the last date of | ||
attendance; and | ||
(3) the school may retain not more than $100 if: | ||
(A) tuition is collected before the course of | ||
training begins; and | ||
(B) the student does not begin [ |
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expires. | ||
(c) The minimum refund of unearned tuition to a student is | ||
calculated by dividing the number of hours remaining in the course | ||
for which the student has been charged after the effective date of | ||
the termination by the total number of hours in the course for which | ||
the student has been charged, and then multiplying the resulting | ||
number by the amount of the tuition. | ||
(d) The owner of a beauty culture school shall calculate the | ||
refund on a form approved by the department or in a manner | ||
acceptable to the department. | ||
(e) Refunds for fees charged to the student shall be made in | ||
a reasonable manner. | ||
(f) The owner of a beauty culture school may seek recovery | ||
from a student of the unpaid portion of earned tuition owed by the | ||
student. | ||
SECTION 15. Section 1602.459(a), Occupations Code, is | ||
amended to read as follows: | ||
(a) If a student begins a course of training at a private | ||
beauty culture school [ |
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withdraws from the course or is terminated by the school, the | ||
school: | ||
(1) may retain 100 percent of the earned tuition and | ||
fees paid by the student; and | ||
(2) is not obligated to refund unearned [ |
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SECTION 16. Section 1602.460, Occupations Code, is amended | ||
by amending Subsections (a), (c), and (d) and adding Subsection | ||
(a-1) to read as follows: | ||
(a) A beauty culture school shall pay a refund owed under | ||
this subchapter not later than the 30th day after the later of: | ||
(1) the effective date of the termination; or | ||
(2) the date the student otherwise becomes eligible | ||
for the refund. | ||
(a-1) If tuition is not refunded within the period required | ||
by this section [ |
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interest on the amount of the refund for the period beginning the | ||
first day after the date the school was required to pay the refund | ||
under Subsection (a) [ |
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the date the refund is made. | ||
(c) The Texas Workforce Commission [ |
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sufficient to deter a school from retaining money paid by a student. | ||
(d) The executive director [ |
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good faith effort to refund the tuition but is unable to locate the | ||
student. The school shall provide to the department on request | ||
documentation of the effort to locate the student. | ||
SECTION 17. Section 1602.461, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1602.461. REENTRY OF STUDENT AFTER WITHDRAWAL OR | ||
TERMINATION. If a student voluntarily withdraws or is terminated | ||
after completing 50 percent of the course at a private beauty | ||
culture school, the school shall allow the student to reenter at any | ||
time during the 24-month [ |
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withdrawal or termination. | ||
SECTION 18. Section 1602.462(b), Occupations Code, is | ||
amended to read as follows: | ||
(b) A student who receives a grade of incomplete may | ||
reenroll in the program during the 24-month [ |
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following the date the student withdraws and complete the subjects | ||
without incurring [ |
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SECTION 19. Sections 1602.463(a), (b), and (c), Occupations | ||
Code, are amended to read as follows: | ||
(a) If a private beauty culture school ceases to operate | ||
[ |
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enrolled in the closed school to attend another [ |
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(b) If a student from a closed school is placed in another [ |
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receiving school in providing training directly related to | ||
educating the student, including the applicable tuition for the | ||
period for which the student paid tuition, shall be paid from the | ||
private beauty culture school tuition protection account. | ||
(c) A school that ceases to operate shall refund unearned | ||
tuition. [ |
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the private beauty culture school tuition protection account. The | ||
amount of the refund may not exceed $35,000. | ||
SECTION 20. The following provisions of the Occupations | ||
Code are repealed: | ||
(1) Section 1601.001(b); | ||
(2) Section 1601.564(b); | ||
(3) Section 1602.455(e); and | ||
(4) Sections 1602.459(b) and (c). | ||
SECTION 21. Not later than December 1, 2015, the Texas | ||
Commission of Licensing and Regulation shall adopt rules | ||
implementing Chapters 1601 and 1602, Occupations Code, as amended | ||
by this Act. | ||
SECTION 22. The changes in law made by this Act apply only | ||
to a student enrolling in a barber school or beauty culture school | ||
on or after February 1, 2016. A student enrolling in a barber | ||
school or beauty culture school before that date is governed by the | ||
law in effect immediately before the effective date of this Act, and | ||
the former law is continued in effect for that purpose. | ||
SECTION 23. This Act takes effect September 1, 2015. |