Chapter 46 PROPRIETARY SCHOOLS
This chapter is and shall be deemed an exercise of the police power of the state and of the city for the public safety, comfort, convenience, welfare and protection of the city and the citizens thereof, and all of the provisions of this chapter shall be construed for the accomplishment of that purpose.
(Code 1958, § 28A-1; Ord. No. 9797, § 1, 6-17-1970)
As used in this chapter, the following terms shall have the respective meanings ascribed to them:
(1) Proprietary school (hereinafter referred to as "school"): Any business enterprise operated for a profit or on a nonprofit basis which maintains a place of business within the city; and (a) which offers or maintains a course or courses of instruction or study; and (b) at which place of business such a course or courses of instruction or study is available through classroom instruction; to a person or persons for the purpose of training or preparing such person for a field of endeavor in a business, trade, technical or industrial occupation, except as hereinafter excluded.
The definition of a proprietary school shall not include the following:
(i) A school or educational institution supported entirely or partly by taxation from either a local or state source;
(ii) A parochial, denominational or eleemosynary school or institution;
(iii) A course or courses of instruction or study sponsored by an employer for the training and preparation of its own employees;
(iv) A course or courses of study or instruction sponsored by a recognized trade, business or professional organization for the instruction of the members of such organization;
(v) Private colleges and universities which award a baccalaureate, or higher degree, and which maintain and operate educational programs for which credits are given. A majority of said credits must be transferable to a college, junior college or university supported entirely or partly by taxation from either a local or state source;
(vi) A private school which provides a basic academic education comparable to that provided in the public schools of the state;
(vii) A school offering a program only for children six (6) years of age or younger;
(viii) A school which is regulated and licensed under the laws of the State of Texas.
(2) Owner: Every person having a legal or equitable interest in the assets, or income or both, of such school--If the school is owned by an individual--That individual; if the school is owned by a partnership--All full, silent and limited partners; if the school is owned by a corporation--The officers and directors of the corporation.
(3) School employee: All instructors, administrators, solicitors, clerical and office personnel employed by the school.
(4) Shop course: A course of instruction in one of the manual arts or industrial arts, sometimes called a "ski,: including but not limited to welding, metalworking, woodworking, automotive mechanics, appliance servicing and repair.
(5) Solicitor: A person who solicits business for a proprietary school, or who offers to sell or sells any instruction or course of instruction offered by a proprietary school.
(6) Notice to the school: Written correspondence sent to the address contained in the application or affidavit.
(Code 1958, § 28A-2; Ord. No. 9797, § 1, 6-17-1970; Ord. No. 9858, § 1, 7-29-1970)
The city secretary is hereby commissioned, authorized and directed to enforce this chapter, receive all applications for permits issuable hereunder, and receive and receipt for permit fees tendered therefor. The city secretary shall promulgate such rules and regulations as he deems appropriate to govern hearings before him under the terms of this chapter.
(Code 1958, § 28A-3; Ord. No. 9797, § 1, 6-17-1970)
Every owner desiring to obtain a permit to operate a proprietary school within the city shall make a verified application to the city secretary (upon forms furnished by the city secretary) setting forth the following information:
(1) The name or title of the proprietary school;
(2) The addresses of the school or schools, administrative offices, dormitories and cafeterias, and other food service and housing establishments connected in any way to the school;
(3) The legal structure of the school (individually owned, partnership or corporation) and the names and addresses of all owners of the school, and if owned by a corporation, the date and state of incorporation, the charter number, the names and addresses of the officers, directors and all stockholders owning more than five (5) per cent of the outstanding shares of the corporation;
(4) A current balance sheet of the school, certified by a certified public accountant;
(5) The names, addresses, educational and teaching qualifications and teaching fields of all instructors employed by the school;
(6) A list of equipment available for instruction in each course of study taught by the school;
(7) The maximum number of students to be enrolled in each course of instruction offered by the school and the ratio of equipment and instructors to students;
(8) The specific fields and courses of instruction which will be offered and the specific purpose of such instruction;
(9) Copies of all contracts or agreements which will be signed by students attending said school;
(10) Copies of all current catalogues, bulletins, published materials, form letters, circulars and all advertising copy which is transmitted to the public or prospective students;
(11) An affidavit by each owner, solicitor and school employee sworn to before a notary public, containing the following information:
(a) Full name and address of said person and the capacity in which he serves the school; and
(b) The city, county and state of said person's permanent residence and places of residence for the past five (5) years; and
(c) The name and address of said person's employer or employers for the past five (5) years; and
(d) Whether or not said person has ever been convicted of a felony or a misdemeanor other than traffic violations, or a crime involving fraud; and
(e) Three (3) persons who may be contacted concerning said person's good moral character; and
In the case of office and clerical personnel, the owner may submit an affidavit setting forth the above information concerning all clerical and office personnel, which information shall be based upon the owner's investigation and knowledge. Information submitted to the city secretary pursuant to subsection (11) shall not be open to public inspection.
(12) A copy of all written contracts or written outlines of all oral commitments or agreements made by the applicant with an apartment house owner for student housing, or with the owner of an establishment serving food to students, or with any other person planning to perform services for the students to be enrolled and to whom the students may be referred by the school.
(13) The applicant shall attach to the application a permit fee in the amount of twenty-five dollars ($25.00).
(Code 1958, § 28A-4; Ord. No. 9797, § 1, 6-17-1970; Ord. No. 9858, §§ 4, 5, 7-29-1970)
Any proprietary school accredited by a nationally recognized accrediting agency approved by the United States Office of Education under the provisions of Chapter 33, Title 38, U.S. Code, and subsequent legislation which requires the evaluation of such agencies and the issuance of an official list by that office and those schools approved by the veterans approval agency of the Texas Education Agency shall not be required to file the matters set out in section 46-4, subsections (5) through (12); provided, however, that the city secretary may, after due notice to the school, require the filing of the information contained in such subsections (5) through (12). In lieu thereof, such school may file an affidavit attesting to its accreditation or approval as herein set out with the twenty-five dollar ($25.00) permit fee attached thereto. In the event said approval or accreditation is withdrawn, the owner shall immediately notify the city secretary of the withdrawal of accreditation or approval and file with the city secretary within ten (10) days the information set forth in section 46-4.
(Code 1958, § 28A-5; Ord. No. 9797, § 1, 6-17-1970)
No proprietary school located in the city shall be issued a permit to operate under the provisions of this chapter until the city secretary shall have determined that said school is maintained and operated, or in the event of a new school that said school can be reasonably maintained and operated, in substantial compliance with the following minimum standards:
(1) That the school applying for a permit is in solvent condition;
(2) That the school has presently available, of quality and kind customary for the type of schooling proposed, space, equipment and instructional materials to train the number of students proposed to be enrolled in the courses that are advertised and scheduled;
(3) (a) That, for each shop course offered by a school, there shall be not less than one qualified teacher or instructor for each class of twenty (20) students, or less; provided, however, that whenever such teacher or instructor is assisted by an adult aide, working in his presence in the class, such class may include not more than thirty (30) students. A nonshop course shall have a ratio of not less than one teacher to thirty (30) students.
(b) During the conduct of a class the teacher or instructor in charge shall have full visibility of the entire classroom and the classroom shall be arranged to afford such visibility.
(c) Every school instructor shall possess the training, by education and/or experience, customary for teachers of the course he professes and for which he is assigned by the school.
(4) That all advertising and representations made on behalf of the school to prospective students are truthful and free from misrepresentation and fraud;
(5) That any dormitory or eating facility offered by the school or with which the school has any contractual connection, is clean, healthful, safe and adequate for the number of students proposed to be served and that the supervision of the same is adequately maintained at all times;
(6) That the premises and conditions under which the students work or study shall be sanitary, healthful and safe according to the standards required by the health department of the city and of the state and by the fire prevention code of the city;
(7) That prior to enrollment, the student has been presented with a published statement of total tuition charges and/or part payments thereof, fees required, and all charges to be made for books, equipment, and supplies needed by the student, and if housing is provided for the students, all charges therefor, or if housing is not furnished, a statement to that effect;
(8) That the school adheres to a tuition refund schedule, if any, as presented to the student in published form prior to enrollment in the event that the student shall discontinue the training or be excluded therefrom;
(9) That the school is equipped and able at all times to comply with its contractual relationships with the enrolled students;
(10) That the facilities, class instruction rooms, housing quarters, and eating facilities shall at all reasonable times be open to inspection by city secretary or his designated agents;
(11) That all equipment furnished shall be suitable and modern in nature, similar to that which is customarily used in the work that would be performed by a student taking that course of instruction upon completion of the course;
(12) Such other reasonable standards as the city secretary may promulgate and publish, and which are adopted by ordinance of the city council, after notice to the affected schools and a reasonable time allowed for compliance.
(Code 1958, § 28A-6; Ord. No. 9797, § 1, 6-17-1970; Ord. No. 9858, § 2, 7-29-1970)
(1) On the final passage of this chapter, each proprietary school as defined herein, shall within thirty (30) days make application for a permit under the provisions of this chapter. Failure to make such application shall be considered a violation of this chapter, and each day that the applicant fails to make application shall be considered a separate violation.
(2) Upon receipt of the application specified in section 46-4 hereof, the city secretary shall within twenty-one (21) days consider said application and either issue or deny a permit to operate a proprietary school. An assistant city attorney and the chief of police shall aid the city secretary in evaluating and investigating any application upon request by the city secretary. The director of planning and urban development and director of finance shall provide written comments to the city secretary about the application within fourteen (14) days of its receipt by the city secretary. The city secretary may consider both oral and documentary evidence concerning the issuance of said permit from any interested person.
(3) If the city secretary is of the opinion that the applicant has complied with the provisions of this chapter, then he shall issue a permit to operate a proprietary school to said applicant.
(4) If the city secretary, after considering said application, shall determine to deny the applicant a permit, the city secretary shall specify the reasons therefor, provided, however, that said reasons for denial shall not be binding upon the city secretary in any subsequent proceeding. He may deny an applicant a permit on the ground that an owner or solicitor of the school has been convicted of a felony or a misdemeanor involving moral turpitude, or a crime involving fraud. Pending the final determination of the issuance or denial of a permit under the provisions of this chapter, a school in operation when the permit application is filed with the city secretary may continue to operate. Any school which is not in operation when said application is filed may not begin operation until its application is granted.
(5) The permit shall be issued to the owners of said proprietary school and shall be nontransferable. The permit specified for herein shall be for a period of one (1) year. Thereafter, each owner of a proprietary school shall make application for a permit at least thirty (30) days prior to the expiration of the current permit. In the event of a change of ownership of the proprietary school, the permit specified herein shall be revoked by operation of law and the new owner of the proprietary school must within ten (10) days after the change of ownership, apply for a permit to operate a proprietary school.
(6) After the issuance of the permit, the school shall file with the city secretary all contracts and agreements specified in subsections (9) and (12) of section 46-4 hereof which are to be used by the school and which have not heretofore been filed with him.
(Code 1958, § 28A-7; Ord. No. 9797, § 1, 6-17-1970)
Should the applicant be dissatisfied with the denial of the permit by the city secretary, the applicant shall within seven (7) days after receipt of notice, file with the city secretary a request for an administrative hearing before the city secretary on said denial, which officer shall, within five (5) days after the receipt of said notice, set a time and place for said administrative hearing on the denial. Said hearing shall be held within twenty-one (21) days from the receipt of the request for a hearing. At said administrative hearing, the applicant may appear in person or by counsel and present evidence to the city secretary in support of the granting of the permit specified herein. The city secretary, upon his request, shall be furnished counsel by the city legal department. All interested persons may also appear and present oral and documentary evidence to the city secretary concerning the issuance of a permit to the applicant, and all parties shall have the right to cross-examine. The city secretary shall within seven (7) days issue an order granting or denying a permit for the operation of a proprietary school in the city and stating the reasons therefor.
(Code 1958, § 28A-8; Ord. No. 9797, § 1, 6-17-1970; Ord. No. 9858, § 3, 7-29-1970)
If the applicant for a permit under this chapter is dissatisfied with the order of finding of the city secretary after an administrative hearing before the city secretary, he shall have the right to appeal to the city council by filing a written notice of such appeal with the city secretary within ten (10) days after receipt of the notice that his permit has been denied or revoked. Upon the filing of such notice of appeal, the application for said permit and all papers possessed by the city secretary in connection with such application and such permit shall be delivered to the city council and such matters as may be in controversy shall be heard by the council within fourteen (14) days after receipt of notice of appeal and the council shall, within ten (10) days thereafter, affirm, reverse or modify the order of the city secretary. The parties may appear in person or by attorney, present evidence and have the right of cross-examination.
(Code 1958, § 28A-9; Ord. No. 9797, § 1, 6-17-1970; Ord. No. 9858, § 6, 7-29-1970)
The city secretary shall have the authority to revoke the permit theretofore issued by him or to place reasonable conditions upon the continued operation thereunder. Before revoking or conditioning said permit, the city secretary shall afford the applicant or holder of such permit an opportunity to be heard in connection therewith in person or by counsel and that officer shall, at least thirty (30) days prior to the date set for a hearing on such revoking or restriction, notify in writing the holder of such permit of the date and purpose of said hearing and assign therein the grounds for the action contemplated to be taken and as to which inquiries shall be made on the date of such hearing. After decision of revoking or conditioning by the city secretary, a proprietary school permit may be revoked or conditioned by the city secretary for the following reasons:
(1) The failure of the permit holder to comply with the minimum standards required of a proprietary school under the provisions of section 46-6 hereof; or
(2) The use by an employee, solicitor or representative of the school with the knowledge of the owner of fraud or misrepresentation in procuring a student's enrollment; or if any such incident is called to the attention of the owner and remedial steps are not taken by the owner including restitution of fees collected and expenses incurred by the prospective student; or
(3) The failure on the part of the school to carry out and comply with each and every contract and agreement made and entered into by said school with any student; or
(4) The use by the school of deceptive or fraudulent advertising in any form; or
(5) The violation by the owner of a school of section 46-14(1)(c) hereof; or
(6) The filing of false information with the city secretary by an owner of a school; or
(7) The failure of the owner of the school to notify the city secretary in writing of the withdrawal of accreditation or approval as required in section 46-5 hereof.
(Code 1958, § 28A-10; Ord. No. 9797, § 1, 6-17-1970)
(1) The city secretary shall not issue a permit to operate a proprietary school until the applicant has filed with the city secretary a bond in the sum of ten thousand dollars ($10,000.00) signed by a solvent surety company authorized to do business in the state, payable to the city, conditioned to provide indemnification to any student or enrollee or his parent or guardian suffering loss or damage as a result of:
(a) Any fraud or misrepresentation used in procuring his enrollment; or
(b) The failure on the part of the school to carry out and comply with each and every contract and agreement made and entered into by said school, acting by and through its officers and agents with any student or enrollee; or
(c) The student's inability to complete the course or courses because the school ceased operation, or failed to furnish the facilities advertised or included in the contracted agreement.
(2) The aggregate liability of the surety as to the total of all claims and demands under the bond is limited to the penal sum of ten thousand dollars ($10,000.00).
(3) A surety on said bond may be released therefrom after said surety shall have made a written notice thereof directed to the city secretary at least thirty (30) days prior to said release, provided, however, that such release shall not affect the surety's liability for acts arising prior to the surety's release.
(4) The surety bond shall cover the period of the permit except when said surety shall be released in the manner provided by subsection (3) hereof.
(5) The permit shall be suspended by operation of law when said proprietary school is no longer covered by a surety bond as required by this section; but the city secretary shall cause said proprietary school to receive at least ten (10) days' written notice prior to the release of said surety to the effect that said approval shall be suspended by operation of law until another surety bond shall be filed in the same manner and like amount as required for the initial surety bond.
(6) Each solicitor shall have a bond in the amount of one thousand dollars ($1,000.00) conditioned that he will reimburse any student or prospective student for any money paid or expenses incurred as a result of fraud, or misrepresentation in securing the enrollment of the student. All such bonds and any action thereon shall have venue in Corpus Christi, Nueces County, Texas, and shall be filed with the city secretary. Any solicitor who solicits business for a proprietary school, or who offers to sell or sells any instruction or course of instruction within the city offered by a proprietary school located outside of the city shall file a bond as herein provided. The aggregate liability of the surety as to the total of all claims and demands under the bond is limited to the penal sum of one thousand dollars ($1,000.00).
(7) The city secretary may notify the affected surety company of any alleged violation of the bond required by section 46-11(1) which may come to his attention.
(Code 1958, § 28A-11; Ord. No. 9797, § 1, 6-17-1970)
The violation of subsections (1)(a), (1)(b) or (1)(c) of section 46-14 hereof is declared to be public nuisances.
(Code 1958, § 28A-12; Ord. No. 9797, § 1, 6-17-1970)
Whenever the city secretary has probable cause to believe that any proprietary school has committed any of the acts declared in section 46-12 hereof to be a public nuisance, the city secretary shall have the duty to make application to a court of competent jurisdiction for an injunction restraining the commission of such acts.
(Code 1958, § 28A-13; Ord. No. 9797, § 1, 6-17-1970)
(1) It shall be unlawful for any owner or school employee of a proprietary school within the city to:
(a) Operate such school without a valid permit to do so issued by the city secretary; or
(b) Utilize advertising designed to mislead or deceive prospective students; or
(c) Accept a contract from a solicitor who does not have a bond as required in section 46-11(5) hereof in effect and on file with the city secretary.
(2) It shall be unlawful for a solicitor to:
(a) Solicit a prospective student without having a bond as required in section 46-11(5) hereof in effect and on file with the city secretary; or
(b) Use fraud or misrepresentation in procuring a student's enrollment.
(3) It shall be unlawful for any owner or school employee to violate any provision of this chapter.
(Code 1958, § 28A-14; Ord. No. 9797, § 1, 6-17-1970)
Any owner or school employee who commits any prohibited act as set out in section 46-14 hereof shall be guilty of a misdemeanor and upon conviction thereof shall be subject to a fine as provided in section 1-6, and each day that any prohibited act continues shall constitute a separate offense.
(Ord. No. 9797, § 1, 6-17-1970)
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