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From the 2005 Regular Session of the Texas Legislature

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	H.B. No. 1173



AN ACT



relating to the regulation of the use of
postsecondary credits and degrees, persons offering
or granting certain postsecondary credits and degrees,
and the manner of offering or granting those credits
and degrees; providing criminal penalties.


BE IT ENACTED BY THE LEGISLATURE OF THE
STATE OF TEXAS:


SECTION 1.  Section 61.302, Education Code,
is amended by adding Subdivision (11) to read as follows:


	(11)  "Fraudulent or substandard degree"
means:


		(A)  a degree conferred by a private
postsecondary educational institution or other person
that, at the time the degree was conferred, was operating
in this state in violation of this subchapter;


		(B)  if the degree is not approved through
the review process described by Section 61.3021, a
degree conferred by a private educational institution
or other person that, at the time the degree was conferred,
was not eligible to receive a certificate of authority
under this subchapter and was operating in another
state:


			(i)  in violation of a law regulating
the conferral of degrees in that state or in the state
in which the degree recipient was residing;  or


			(ii)  without accreditation by a recognized
accrediting agency;  or


		(C)  if conferred by a private educational
institution or other person not described by Paragraph
(A) or (B), including a private educational institution
or other person that, at the time the degree was conferred,
was not eligible to receive a certificate of authority
under this subchapter and was operating outside the
United States, a degree that the board, through the
review process described by Section 61.3021, determines
is not the equivalent of an accredited or authorized
degree as described by that section.


SECTION 2.  Subchapter G, Chapter 61, Education
Code, is amended by adding Section 61.3021 to read
as follows:


Sec. 61.3021.  REVIEW OF DEGREE NOT
OTHERWISE REGULATED BY SUBCHAPTER.  (a)  The board
by rule shall establish a process for reviewing and
approving a degree conferred by a person described
by Section 61.302(11)(B) or (C).  The review process
must include a determination by the board whether the
degree is the equivalent of a degree granted by a private
postsecondary educational institution or other person
in accordance with the person's accreditation by a
recognized accrediting agency or with the person's
certificate of authority under this subchapter.


(b)  The board may charge an applicant
for a review under this section a fee in an amount
the board determines will cover the cost of conducting
the review.


SECTION 3.  Section 61.304, Education Code,
is amended to read as follows:


Sec. 61.304.  REQUISITE AUTHORITY TO GRANT
DEGREES AND OFFER COURSES; OFFENSES.  (a)
 A person may not grant or award a degree or offer
to grant or award a degree on behalf of a private
postsecondary educational institution unless the institution
has been issued a certificate of authority to grant
the degree by the board in accordance with the provisions
of this subchapter.


(b)  A person may not 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 except under conditions
and in a manner specified and approved by the board.


(c)  The board is empowered to specify
and regulate the manner, condition, and language used
by an institution or person or agents thereof in making
known that the person or institution holds a certificate
of authority and the interpretation of the significance
of such certificate.


(d)  A person commits an offense if
the person:


	(1)  grants or awards a degree or offers
to grant or award a degree in violation of this section;


	(2)  represents in violation of this
section that a credit earned or granted by the person
can be applied toward a degree offered by another person;


	(3)  grants or offers to grant a credit
for which a representation is made as described by
Subdivision (2);  or


	(4)  solicits another person to seek
a degree or to earn a credit the actor knows is offered
in violation of this section.


(e)  An offense under Subsection (d)
is a Class A misdemeanor.


(f)  In addition to any other venue
authorized by law, venue for the prosecution of an
offense under Subsection (d) is in the county in which
an element of the offense occurs or in Travis County.


SECTION 4.  Section 61.312, Education Code,
is amended to read as follows:


Sec. 61.312.  HONORARY DEGREES; OFFENSES.
 (a)  No person may award or offer to award
an honorary degree on behalf of a private postsecondary
educational institution subject to the provisions of
this subchapter unless the institution has been issued
a certificate of authority to award such a degree.
 The honorary degree shall plainly state on its face
that it is honorary.


(b)  A person commits an offense if
the person:


	(1)  grants or offers to grant an honorary
degree in violation of this section;  or


	(2)  solicits another person to seek
or accept an honorary degree the actor knows is offered
in violation of this section.


(c)  An offense under Subsection (b)
is a Class A misdemeanor.


(d)  In addition to any other venue
authorized by law, venue for the prosecution of an
offense under Subsection (b) is in the county in which
an element of the offense occurs or in Travis County.


SECTION 5.  The heading to Section 61.313,
Education Code, is amended to read as follows:


Sec. 61.313.  USE OF PROTECTED TERM IN
NAME OF INSTITUTION; OFFENSES.


SECTION 6.  Section 61.313, Education Code,
is amended by adding Subsections (h), (i), and (j)
to read as follows:


(h)  A person commits an offense if
the person:


	(1)  uses a term in violation of this
section;  or


	(2)  solicits another person to seek
a degree or to earn a credit the actor knows is offered
by an institution or establishment that is using a
term in violation of this section.


(i)  An offense under Subsection (h)
is a Class A misdemeanor.


(j)  In addition to any other venue
authorized by law, venue for the prosecution of an
offense under Subsection (h) is in the county in which
an element of the offense occurs or in Travis County.


SECTION 7.  Subchapter G, Chapter 61, Education
Code, is amended by adding Sections 61.320 and 61.321
to read as follows:


Sec. 61.320.  APPLICATION OF DECEPTIVE
TRADE PRACTICES ACT.  (a)  A person who violates this
subchapter commits a false, misleading, or deceptive
act or practice within the meaning of Section 17.46,
Business & Commerce Code.


(b)  A public or private right or remedy
under Chapter 17, Business & Commerce Code, may be
used to enforce this subchapter.


Sec. 61.321.  INFORMATION PROVIDED TO
PROTECT PUBLIC FROM FRAUDULENT, SUBSTANDARD, OR FICTITIOUS
DEGREES.  To protect the public from private postsecondary
educational institutions or other persons that confer
or offer to confer fraudulent or substandard degrees
and from persons that use or hold fraudulent or substandard
degrees or that use or claim to hold fictitious degrees,
the board shall disseminate the following information
through the board's Internet website:


	(1)  to the extent known by the board,
the accreditation status or the status regarding authorization
or approval under this subchapter, as applicable, of
each private postsecondary educational institution
or other person that is regulated by this subchapter
or for which a determination is made under Section
61.3021, including:


		(A)  the name of each educational institution
accredited, authorized, or approved to offer or grant
degrees in this state;


		(B)  the name of each educational institution
whose degrees the board has determined may not be legally
used in this state;  and


		(C)  the name of each educational institution
that the board has determined to be operating in this
state in violation of this subchapter;  and


	(2)  any other information considered
by the commissioner to be useful to protect the public
from fraudulent, substandard, or fictitious degrees.


SECTION 8.  Subchapter D, Chapter 32, Penal
Code, is amended by adding Section 32.52 to read as
follows:


Sec. 32.52.  FRAUDULENT, SUBSTANDARD,
OR FICTITIOUS DEGREE. (a) In this section, "fraudulent
or substandard degree" has the meaning assigned by
Section 61.302, Education Code.


(b)  A person commits an offense if
the person:


	(1)  uses or claims to hold a postsecondary
degree that the person knows:


		(A)  is a fraudulent or substandard
degree;


		(B)  is fictitious or has otherwise
not been granted to the person; or


		(C)  has been revoked; and


	(2)  uses or claims to hold that 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, a 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)  An offense under this section is
a Class B misdemeanor.


(d)  If conduct that constitutes an
offense under this section also constitutes an offense
under any other law, the actor may be prosecuted under
this section or the other law.


SECTION 9.  Chapter 13, Code of Criminal
Procedure, is amended by adding Article 13.30 to read
as follows:


Art. 13.30.  FRAUDULENT, SUBSTANDARD,
OR FICTITIOUS DEGREE.  An offense under Section 32.52,
Penal Code, may be prosecuted in the county in which
an element of the offense occurs or in Travis County.


SECTION 10.  This Act takes effect September
1, 2005.




______________________________	______________________________


   President of the Senate	Speaker of the
House      


I certify that H.B. No. 1173 was passed
by the House on May 13, 2005, by a non-record vote.



______________________________




Chief Clerk of the
House   



I certify that H.B. No. 1173 was passed
by the Senate on May 25, 2005, by the following vote:
 Yeas 31, Nays 0.



______________________________




Secretary of the Senate
   



APPROVED:  _____________________


                    Date          


           _____________________


                  Governor