1. (a) Pursuant to §1602.463 of the Act, in the event that a student from a closed school is placed in another beauty culture school, the Private Beauty Culture School Tuition Protection Account is created to pay the tuition costs and expenses incurred by a school in providing training directly related to educating the student from the closed school.
2. (b) In each year in which the balance of the Private Beauty Culture School Tuition Protection Account is less than $200,000 the department will determine a fee that shall be paid by all private beauty culture schools to the account.
3. (c) The necessity for assessing the fee will be determined by the department when it conducts it's annual account balance review prior to December 31st. The fee that is assessed by the department shall be in effect for a period of 12 months.
4. (d) The fee shall be paid by each private beauty culture school, upon annual renewal of the license during the 12-month period and shall be paid in addition to the renewal fee. The renewal notice sent by the department will reflect the fee due to the account.
5. (e) In addition to any other fees, all new schools applying for a private beauty culture school license shall pay the prescribed fee to the account as determined under subsection (b) before a license will be issued.
6. (f) In the event a student from a closed school cannot be placed or does not accept a place in another school, a refund, calculated under the closed school's refund policy, will be paid from the Private Beauty Culture School Tuition Protection Account and the total payment of a claim may not exceed $35,000.

Source Note:The provisions of this §83.40 adopted to be effective December 8, 2005, 30 TexReg 8082; amended to be effective March 1, 2006, 31 TexReg 1280; amended to be effective August 1, 2006, 31 TexReg 5952.