III. Conclusions - Strategic

CS1: TDLRs response to Tex. Occ. Code 455.161 and 455.2035 is not effective for either the publics intended purpose or TDLR’s internal goals.

PALMS was created in response to the legislative addition of Tex. Occ. Code 455.161 and 455.2035 (A13), yet does not correctly implement these. It could be argued that permits are being successfully implemented, but TDLR relies on the school to establish identity of students (A14), which makes it ineffective for the intended purpose of combating human trafficking (A15). TDLR’s goals do not seem to reflect the 'combating human trafficking' thesis, and they have their own stated goals
(TDLR Statements T1-T4, TDLR Acts ACT1, ACT2). However, it has not been effective for those purposes either.

CS2: TDLRs efforts are resulting in wiping out student access to low cost loans and tuition

Texas requires that massage schools in Texas offer a 500 hour course, which is below the federal threshold for students to qualify for Federal Student Aid. Many Texas massage schools compensate for this discrepancy by offering low or interest free loans and payment plans, secured using the students transcript and licensure as collateral. This option is heavily used, especially by socio-economically disadvantaged demographics, and it is generally considered a superior alternative to using a credit card or loansharking mechanism.

TDLR is ending this practice by removing a students ability to use their licensure as collateral. Per TDLR Statement T8, Massage schools are not large businesses able to handle this sort of debt burden on unsecured debt.

The net effect will be pushing potential students out of the industry, to enroll in unncessarily long programs so they qualify for federal aid, or to use high interest loans.