(a) A person or institution may not:
(1) Granting of Degrees--Grant, award, or offer to
award a degree on behalf of a nonexempt institution unless the institution
has been issued a Certificate of Authority to grant the degree by
the Board;
(2) Transferability of Credit--Represent that credits
earned or granted by that person or institution are applicable for
credit toward a degree to be granted by some other person or institution
unless the institution is operating under a Certificate of Authority
or Certificate of Authorization and has written agreement(s) with
the institution which will accept the credit in transfer;
(3) Honorary Degrees--Award or offer to award an honorary
degree on behalf of a private postsecondary institution subject to
the provisions of this subchapter, unless the institution has been
awarded a Certificate of Authority or Certificate of Authorization
to award such a degree, or solicits another person to seek or accept
an honorary degree and, further, unless the degree shall plainly state
on its face that it is honorary;
(4) Protected Terms--Use a protected term in the official
name or title of a nonexempt private postsecondary institution, an
educational or training establishment, or describe an institution
using any of these terms or a term having a similar meaning, except
as authorized by the Board, or solicit another person to seek a degree
or to earn a credit that is offered by an institution or training
establishment that is using a term in violation of this section;
(5) Agent--Act as an agent who solicits students for
enrollment in a private postsecondary institution subject to the provisions
of this subchapter without a Certificate of Registration, if required
by this chapter;
(6) Fraudulent Degree--Use or claim to hold a degree
that the person knows is a fraudulent, substandard, or is a fictitious
degree:
(A) in a written or oral advertisement or other promotion
of a business; or
(B) with the intent to:
(i) obtain employment;
(ii) obtain a license or certificate to practice a
trade, profession, or occupation;
(iii) obtain a promotion, compensation or other benefit,
or an increase in compensation or other benefit, in employment or
in the practice of a trade, profession, or occupation;
(iv) obtain admission to an educational program in
this state; or
(v) gain a position in government with authority over
another person, regardless of whether the actor receives compensation
for the position.
(C) The use of fictitious, fraudulent, or substandard
degrees--The Board shall provide the following information through
the Board's Internet website:
(i) the accreditation status or the status regarding
authorization or approval under this subchapter, to the extent known
by the Board, of each exempt institution operating in the state, each
postsecondary educational institution or other person that is regulated
under §§7.7 - 7.11 of this chapter or for which a determination
is made under §7.12 of this chapter (relating to Review and Use
of Degrees from Institutions Not Eligible for Certificates of Authority),
and any institution offering fraudulent, substandard, or fictitious
degrees, including:
(I) the name of each educational institution accredited,
authorized, or approved to offer or grant degrees in this state;
(II) the name of each educational institution whose
degrees the Board has determined may not be legally used in this state;
(III) the name of each educational institution that
the Board has determined to be operating in this state in violation
of this chapter; and
(IV) any other information considered by the Commissioner
to be useful to protect the public from fraudulent, substandard, or
fictitious degrees.
(ii) the Board shall utilize such usual and customary
sources for determining the accreditation status of institutions,
such as: guides to international education; the Board's knowledge
of legal actions taken against institutions, either by an agency of
the state of Texas or agencies of other states or nations; or civil
actions against institutions brought by governmental agencies or individuals.
(D) In determining the legitimacy of institutions headquartered
or operating outside of Texas, the Board may determine if the state
or nation in which the person or institution is headquartered, operates,
or holds legal authorization to operate has standards and practices
that are as rigorous as those of the Board's. A determination that
a particular state or nation's standards or practices are not appropriately
rigorous shall be sufficient reason to disapprove the use of the degrees
of a person or institution.
(b) Institutions Located on Federal Land in Texas--An
institution that is operating on land in Texas over which the federal
government has exclusive jurisdiction:
(1) shall limit to the confines of the federal land
and to the military or civilian employees and their dependents who
work or live on that land:
(A) the recruitment of students;
(B) advertising of the postsecondary educational institution
or its programs or courses; and
(C) providing degree programs or courses leading to
degrees.
(2) shall be subject to compliance with all rules under
this chapter when recruiting students, advertising the postsecondary
institution or its programs or courses, or providing degree programs
or courses leading to degrees on land over which the federal government
does not have exclusive jurisdiction.
(c) Associate of Occupational Studies (AOS) Degree-
Texas has two career schools or colleges awarding the AOS degree:
Universal Technical Institute and Western Technical College, and Golf
Academy of America. The AOS degree shall be awarded in only the following
fields: automotive mechanics, diesel mechanics, refrigeration, electronics,
and business and golf complex operations and management. Each of the
two Institutions may continue to award the AOS degree for those fields
listed in this subsection and shall be restricted to those fields.
The Board shall not consider new AOS degree programs from any other
career schools or colleges. A career school or college authorized
to grant the AOS degree shall not represent such degree by using the
terms "associate" or "associate's" without including the words "occupational
studies." An institution authorized to grant the AOS degree shall
not represent such degree as being the equivalent of the AAS or AAA
degrees.
(d) Offenses--A violation of this subsection may constitute
a violation of the Texas Penal Code, §32.52, or Texas Education
Code §§61.312, 61.313. An offense under subsection (a)(1)
- (5) of this section may be a Class A misdemeanor and an offense
under subsection (a)(6) of this section may be a Class B misdemeanor.
(e) Administrative Penalties--If a person or institution
violates a provision of this subchapter, the Commissioner may assess
an administrative penalty against the person or institution as provided
in this section.
(f) Notice of Violation--The Commissioner shall send
written notice by certified mail to the person or institution charged
with the violation. The notice shall state the facts on which the
penalty is based, the amount of the penalty assessed, and the right
of the person or institution to request a hearing.
(g) Appeal of Assessment--The Commissioner's assessment
shall become final and binding unless, within forty-five (45) days
of receipt of the notice of assessment, the person or institution
invokes the administrative remedies contained in Chapter 1, Subchapter
B of this title (relating to Dispute Resolution).
(h) Collection of Assessment--If the person or institution
does not pay the amount of the penalty within thirty (30) days of
the date on which the assessment becomes final, the Commissioner may
refer the matter to the attorney general for collection of the penalty,
plus court costs and attorney fees.
(i) Specific Administrative Penalty--Any person or
institution that is neither exempt nor the holder of a Certificate
of Authority to grant degrees, shall be assessed an administrative
penalty of not less than $1,000 or more than $5,000 for, either individually
or through an agent or representative:
(1) conferring or offering to confer a degree;
(2) awarding or offering to award credits purported
to be applicable toward a degree to be awarded by another person or
institution (except under conditions and in a manner specified and
approved by the Board);
(3) representing that any credits offered are collegiate
in nature subject to the provisions of this subchapter; and
(4) with regard to assessment of such specific administrative
penalties, each degree conferred without authority, and each person
enrolled in a course or courses at the institution whose decision
to enroll was influenced by the misrepresentations, constitutes a
separate offense.
(j) Other Administrative Penalties-
(1) Any person or institution that violates subsection
(a)(4) of this section shall be assessed an administrative penalty
of not less than $1,000 or more than $3,000.
(2) Any person or institution that fails to maintain
in a manner specified by the Board in §7.15 of this chapter (relating
to Academic Records Maintenance, Protection, and Repository of Last
Resort) the academic records of enrolled or former students, including
records of credits and degrees awarded, or that fails to protect the
personally identifiable information of enrolled or former students
shall be assessed an administrative penalty of not less than $100
or more than $500 for each student whose academic record was not maintained
or whose personally identifiable information was not protected.
(k) Specific Administrative Penalties for Agents--Any
agent who solicits students for enrollment in an institution subject
to the provisions of this subchapter without a Certificate of Registration
shall be assessed an administrative penalty of not less than $500
or more than $1,000. Each student solicited without authority constitutes
a separate offense.
(l) Termination of Operation--Any operations which
are found to be in violation of the law shall be terminated.
(m) Report to Attorney General--The Commissioner may
report possible violations of this subchapter to the attorney general.
The attorney general, after investigation and consultation with the
Board, shall bring suit to enjoin further violations.
(n) Venue--An action for an injunction under this section
shall be brought in a district court in Travis County.
(o) Civil Penalties--A person who violates this subchapter
or a rule adopted under this subchapter is liable for a civil penalty
in addition to any injunctive relief or any other remedy allowed by
law. A civil penalty may not exceed $1,000 a day for each violation.
(p) Civil Litigation--The attorney general, at the
request of the Board, shall bring a civil action to collect a civil
penalty under this section.
(q) Deceptive Trade Practice Act--A person who violates
this subchapter commits a false, misleading, or deceptive act or practice
within the meaning of the Texas Business and Commerce Code, §17.46.
(r) Applicability of Other Law--A public or private
right or remedy under the Texas Business and Commerce Code, Chapter
17, may be used to enforce this section.
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