Historical Rule for the Texas Administrative Code

RULE §535.65Changes in Ownership or Operation of School; Presentation of Courses, Advertising, and Records

(a) Changes in Ownership or Operation. A school shall obtain the approval of the commission in advance of any material change in the operation of the school, including but not limited to, ownership, location of main office and any other locations where courses are offered, management, and course formats. A request for approval of a change of ownership will be considered as if each proposed new owner had applied for accreditation of the school, and each new owner must meet the standards imposed by §535.64 of this title (relating to Accreditation of Schools and Approval of Instructors). A school requesting approval of a change in ownership shall provide all of the following information or documents to the commission:

  (1) the proportion of ownership of each proposed new owner,

  (2) a professional resume of each proposed new owner who would hold at least a 10% interest in the school;

  (3) business financial statements of each proposed new owner who would hold at least a 10% interest in the school, which shall include the statement of financial condition and statement of net worth for the accounting period in which the application is made, prepared in accordance with generally accepted accounting principles;

  (4) a statement of any proposed changes in the operation or location of the school;

  (5) a new bond in the amount of $10,000 for the proposed new owner(s), a statement from the bonding company indicating that the former bond will transfer to the proposed new owner(s), or other security acceptable to the commission under Texas Occupations Code, Chapter 1101, (the Act), §1101.302.

  (6) a completed Form ED 1-0, Education Provider Application, reflecting all required information for the proposed new owner(s); and

  (7) a completed Form ED 2-0, Principal Information Form, for each proposed new owner who would hold at least a 10% interest in the school.

(b) School facilities.

  (1) A school shall maintain a fixed office in the State of Texas. The office must be large enough for maintenance of all records, office equipment, files, telephone equipment, and office space for customer service. A school shall ensure that its classroom facilities are adequate for the needs of the school and pose no threat to the health or safety of students.

  (2) Except as provided by this section, every school shall be open to the public, and shall advertise all courses publicly so as to encourage reasonably an open enrollment. A school may obtain approval from the commission, however, to hold classes in facilities to which access has been limited by a governmental unit.

(c) Responsibility of schools. A school is responsible to the commission for the conduct and administration of each course presentation, punctuality of classroom sessions, student attendance records, instructor performance and attendance, examination administration, proper student certification, and certification of records. A school shall establish business hours during which school staff are available for public inquiry and assistance. A school shall ensure that instructors or other persons do not recruit or solicit prospective salespersons or brokers in a classroom during class time.

(d) Instructors.

  (1) A school shall select each instructor on the basis of expertise in the subject area of instruction and ability as an instructor. Except as provided by this section, a school may not utilize an instructor unless the instructor has been approved by the commission. A school shall require specialized training or work experience for instructors for specialized subjects such as law, appraisal, investments, or taxation. A school may use as a guest speaker a person who has not been approved as an instructor, provided that no more than a total of three hours of instruction in a 30-hour course are taught by persons who are not approved instructors.

  (2) An instructor shall teach a course in substantially the same manner represented to the commission in the instructor's manual or other documents filed with the application for course approval.

  (3) A school shall provide instructor evaluation forms for completion by students in every class and establish procedures for instructional review. The school shall file in the school records any comments by the school's management relevant to instructor evaluation reports. On demand by the commission the school shall produce student instructor evaluation forms for inspection.

  (4) A school shall ensure that at the beginning of each examination preparation course, the instructor reads aloud to all students the provisions of subsection (a) of §535.61 of this title (relating to Examinations).

  (5) Schools may request MCE credit be given to instructors of real estate core courses subject to the following guidelines.

    (A) The instructors may receive credit for only those portions of the course which they teach by filing a completed MCE Form 11-3, Instructor Credit Request.

    (B) The instructors may receive full course credit by attending all of the remainder of the course.

(e) Course examinations.

  (1) A school shall administer an examination approved by the commission in each course as a component of determining successful completion of a course of study. A school may not permit a student to take a final examination prior to the completion of any makeup required by this section. In the event of failure of a course final examination, a school may permit a student to retake a final examination once after at least a seven day waiting period and completion of additional course work prescribed by the school. A school shall require a student who fails the examination a second time to retake the course. A school shall require makeup final examinations to be completed within 90 days of the termination of the original class or report the students who do not timely complete the examination requirement as dropped from the class with no credit.

  (2) Except in the case of math courses which require a minimum of 20 questions, a school shall use final examinations consisting of at least 60 questions with an unweighted passing score of 70%. A school shall revise final course examinations for active courses at least annually and shall furnish the commission copies of all revisions. Each of the subjects required by statute or commission rule for a core course must be covered in the exam of that course. A school shall ensure that an examination proctor who is either a member of the school staff or faculty is present with the class during all regularly scheduled final course examinations.

(f) Pre-enrollment agreements, tuition and fees.

  (1) Prior to the start of a course, a school shall provide each student with a pre-enrollment agreement signed by a representative of the school and the student. The agreement must include all of the following information:

    (A) the tuition for the course;

    (B) any fees charged by the school for supplies, materials, or books needed in course work, shown in an itemized fashion;

    (C) the school's policy regarding the refund of tuition and other fees, including a statement addressing refund policy when a student is dismissed or withdraws voluntarily;

    (D) attendance requirements;

    (E) acceptable makeup procedures, including any applicable time limits and any fees that may be charged for makeup sessions; and

    (F) the procedure and fees for taking any permitted makeup final examination or any permitted re-examination, including any applicable time limits.

  (2) If the school cancels a course, the school shall fully refund all fees collected from students or, at the student's option, the school may credit the student for another course. The school shall inform the commission when a student requests a refund because of a withdrawal due to the student's dissatisfaction with the quality of the course.

  (3) Any written advertisement by the school which contains a fee charged by the school must display all fees for the course in the same place in the advertisement and with the same degree of prominence.

(g) Course materials.

  (1) A school shall update course materials during the period of time a course may be given to ensure that current and accurate information is provided to students. The school shall file updated course materials and revisions of the course outline with the commission prior to implementation, and the commission may direct a school to revise the materials further or cease use of materials. The commission may direct that the school withdraw texts.

  (2) A school shall provide each student with copies for the student's permanent use of any printed material which is the basis for a significant portion of the course. The school shall provide ample space on handouts for notetaking or completion of any written exercises.

(h) Presentation of courses.


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