(a) Payment of annual fee. A school shall pay the fee prescribed
by Section 11(a)(10) of Texas Civil Statutes, Article 6573a (the Act) and
by §535.101 of this title (relating to Fees) no later than the anniversary
of the date of the school's accreditation. At least 30 days prior to the day
the fee is due, the commission shall send a written notice to the school to
pay the fee, but the school's obligation to pay the fee is not affected by
any failure to receive the notice.
(b) Audits and evaluations. Schools are subject to audit by
commission employees. Commission employees may conduct on-site audits without
prior notice to the school, and may enroll and attend a course without identifying
themselves as employees of the commission. Commission employees also may evaluate
the effectiveness of course materials or instructors through surveys of students.
The commission may require a school to furnish students with an evaluation
form approved by the commission and to request that the students complete
and return the form directly to the licensing and education division of the
commission. An audit report or evaluation indicating noncompliance with these
sections will be treated as a written complaint against the school or instructor
concerned and will be referred to the enforcement division of the commission
for appropriate resolution.
(c) Complaints, investigations and hearings. The commission
shall investigate complaints against schools or instructors which allege acts
constituting violations of these sections. Complaints must be in writing,
and the commission may not initiate an investigation or take action against
a school or instructor based on an anonymous complaint. Complaints against
a school or instructor received by any division of the commission will be
referred to the enforcement division for appropriate resolution. Commission
employees may file written complaints against a school or instructor if course
completion rosters or other documents filed with the commission provide reasonable
cause to believe a violation of these sections has occurred. The school or
instructor named in the complaint will be provided with a copy of the complaint.
Proceedings against schools and instructors will be conducted in the manner
required by the Act, §17, the Administrative Procedure Act, Texas Government
Code, §2001, et. seq., and Chapter 533 of this title (relating to Practice
and Procedure). Venue for any hearing conducted under this section will be
in Travis County.
(d) Grounds for disciplinary action against a school. The commission
may issue a reprimand, place on probation, suspend or revoke accreditation
of a school, or impose an administrative penalty when it has been determined
that the school has been guilty of engaging in any of the following acts:
(1) procuring or attempting to procure approval for a school,
course or instructor by fraud, misrepresentation or deceit, or by making a
material misrepresentation of fact in an application filed with the commission;
(2) making a false representation to the commission, either
intentionally or negligently, that a person had attended a course or a portion
of a course for which credit was awarded, that a person had completed an examination,
or that the person had completed any other requirement for course credit;
(3) aiding or abetting a person to circumvent the requirements
for attendance established by these sections, the completion of any examination,
or any other requirement for course credit;
(4) failing to provide within 15 days information requested
by the commission as a result of a complaint which would indicate a violation
of these sections;
(5) making a materially false statement to the commission
in response to a request from the commission for information relating to a
complaint against the school or instructor;
(6) disregarding or violating a provision of these sections
or of the Act; or
(7) failing to maintain sufficient financial resources
to continue operation of the school without placing students at risk of financial
loss.
(e) The existence of any of the following conditions shall
constitute prima facie evidence that a school's financial condition is insufficient
for continuing operation:
(1) nonpayment of a liability when due, if the balance due
is greater than 5% of the school's current assets in the current or prior
accounting period;
(2) nonpayment of three or more liabilities when due,
in the current or prior accounting period, regardless of the balance due for
each liability;
(3) a pattern of nonpayment of liabilities when due, in
two or more accounting periods, even if the liabilities ultimately are repaid;
(4) a current ratio of less than 1.75 for the current
or prior accounting period, this ratio being total current assets divided
by total current liabilities;
(5) a quick ratio of less than 1.60 for the current or
prior accounting period, this ratio being the sum of all cash equivalents,
marketable securities, and net receivables divided by total current liabilities;
(6) a cash ratio of less than 1.40 for the current or
prior accounting period, this ratio being the sum of cash equivalents and
marketable securities divided by total current liabilities;
(7) a debt ratio of more than .40 for the current or prior
accounting period, this ratio being total liabilities divided by total assets;
(8) a debt-to-equity ratio of greater than .60 for the
current or prior accounting period, this ratio being total liabilities divided
by owners' or shareholders' equity;
(9) a final judgment obtained against the school for nonpayment
of a liability which remains unpaid more than 30 days after becoming final;
or
(10) execution of a writ of garnishment on any of the
assets of the school.
(f) Grounds for disciplinary action against instructor. The
commission may issue a reprimand, place on probation, suspend or revoke approval
of an instructor, or impose an administrative penalty when it has been determined
that the instructor has been guilty of engaging in any of the following acts:
(1) making a false representation to the commission, either
intentionally or negligently, that a person had attended a course or a portion
of a course for which credit was awarded, that a person had completed an examination,
or that the person had completed any other requirement for course credit;
(2) aiding or abetting a person to circumvent the requirements
for attendance established by these sections, the completion of any examination,
or any other requirement for course credit;
(3) failing to provide within 15 days information requested
by the commission as a result of a complaint which would indicate a violation
of these sections;
(4) making a materially false statement to the commission
in response to a request from the commission for information relating to a
complaint against a school or instructor; or
(5) violating or disregarding any provision of the Act
or a rule of the commission.
(g) Probation. An order of suspension or revocation issued
under this section may be probated upon reasonable terms and conditions as
determined by the commission.
|