Resource Guide - Texas Workforce Commission

School Directors’ Resource Guide - Career Schools and Colleges
CSC History
(continued)
On September 1, 2003, Senate Bill 280 and Senate Bill
1343, 78th Texas Legislature amended the Texas Education
Code, Chapter 132 to:
• change all references from "proprietary schools" to
"career schools and colleges"
• change all references from "correspondence" to "distance
education"
• further define "distance education"
• require schools to apply for and be granted an exemption
• make sure any agreement with a student for an
educational loan or for the payment of tuition is
unenforceable if the school is unlicensed
• categorize distance education into synchronous or
asynchronous courses for the purpose of refunds
• clarify that a closing school owes a full refund to any
student that was prevented from completing training
• make owners of unlicensed schools that close personally
liable for any refunds
• move administrative hearings from State Office of
Administrative Hearings (SOAH) to the Commission, to
be held in the same manner as denial hearings
• authorize the Commission to issue Cease and Desist
orders
• replace the Tuition Protection Fund (General Revenue
Fund) with the Career School and College Tuition Trust
Account
• increase the maximum amount for student refunds for
each closing school to $150,000
• delete the requirement for bonds.
For a copy of the current law regarding CSC, refer to
Appendix 1.
Chapter 1
Introduction to CSC October 2004 Page 1.3