(a) Pursuant to Subchapter H-1 of the Act, the Barbering
and Cosmetology School Tuition Protection Account is created to:
(1) refund tuition and fees to a student if a private
school closes and the school fails to pay the refund as required by
the Act; and
(2) pay the tuition costs and expenses incurred by
a private school in providing training directly related to educating
a student from a closed school.
(b) In each year in which the balance of the Barbering
and Cosmetology School Tuition Protection Account is less than $225,000
the department will determine a fee that must be paid by all private
schools to the account.
(c) The necessity for assessing the fee will be determined
by the department when it conducts its annual account balance review
prior to December 31st. The fee that is assessed by the department
will be in effect for a period of 12 months.
(d) The fee must be paid by each private school, upon
annual renewal of the license during the 12-month period and must
be paid in addition to the renewal fee. The renewal notice sent by
the department will reflect the fee due to the account.
(e) In addition to any other fees, all new schools
applying for a private school license must pay the prescribed fee
to the account as determined under subsection (b) before a license
will be issued.
(f) In the event a student from a closed school cannot
be placed or does not accept a place in another school, a refund,
calculated under the closed school's refund policy, may be paid from
the Barbering and Cosmetology School Tuition Protection Account and
the total payment of a claim may not exceed $35,000. The total amount
of claims paid against a single closed school may not exceed $100,000.
(g) The executive director may authorize payment to
a student from the Barbering and Cosmetology School Tuition Protection
Account if:
(1) the student makes a claim for payment on a form
approved by the executive director;
(2) a closed private school has failed to pay a refund
to the student within 30 days after the date the student became eligible
for the refund, and the student has not been placed or accepted a
place in another school with appropriate credit given to the student
for tuition and fees paid to the closed school;
(3) the executive director determines after investigation
that the student is owed the refund; and
(4) the student assigns to the department all rights
of the student against the closed school to the extent of the amount
paid to the student from the account.
(h) The executive director may authorize payment to
a private school from the Barbering and Cosmetology School Tuition
Protection Account if:
(1) the school makes a claim for payment on a form
approved by the executive director;
(2) the school has incurred expenses in providing training
directly related to educating a student from a closed private school,
including the applicable tuition for the period for which the student
paid tuition;
(3) the executive director determines after investigation
that the school is entitled to payment from the account; and
(4) the school assigns to the department all rights
of the school against the closed school to the extent of the amount
paid from the account.
(i) The department will pay claims on a pro rata basis
from appropriated money available in the account if:
(1) the account contains insufficient assets to pay
all claims;
(2) insufficient money has been appropriated to the
department from the account to pay all claims; or
(3) the total amount of claims against a single closed
school exceeds the amount specified in Subsection (f).
(j) The department will notify a closed private school
of any claim made against the closed school under this section. Before
the executive director may authorize any payment from the account,
the school must have 20 days from the date of notice of the claim
to dispute the claim and present evidence to the executive director
in opposition to the claim.
(k) If payment is made from the Barbering and Cosmetology
School Tuition Protection Account on a claim against a closed private
school:
(1) the school must reimburse the account immediately
or agree in writing to reimburse the account, on a schedule to be
determined by the executive director;
(2) the school must immediately pay the student any
additional amount due to the student under the Act or agree in writing
to pay the student on a schedule to be determined by the executive
director;
(3) payments made by a school to the account under
this subsection include interest accruing at the rate of eight percent
a year beginning on the date the executive director pays the claim;
(4) the department must be subrogated to all rights
of the claimant against the school to the extent of the amount paid
to the claimant; and
(5) the department may assess administrative penalties
or sanctions against the school and may deny an application for a
license, certificate, or permit or an application for renewal of a
license, certificate, or permit filed by the holder of the private
school license.
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Source Note: The provisions of this §83.40 adopted to be effective December 8, 2005, 30 TexReg 8082; amended to be effective March 1, 2006, 31 TexReg 1280; amended to be effective August 1, 2006, 31 TexReg 5952; amended to be effective October 11, 2007, 32 TexReg 7050; amended to be effective January 15, 2018, 43 TexReg 81; amended to be effective January 1, 2023, 47 TexReg 8640 |