| (a) Application for approval.
(1) Unless otherwise exempt under subsection (b), a
person desiring to be approved by the Commission to offer real estate
or real estate inspection qualifying courses shall:
(A) file an application on the appropriate form approved
by the Commission, with all required documentation;
(B) submit the required fee under §535.101 or §535.210
of this title;
(C) submit the statutory bond or other security acceptable
to the Commission under §1101.302 of the Act; and
(D) maintain a fixed office in the state of Texas or
designate a resident of this state as attorney-in-fact to accept service
of process and act as custodian of any records in Texas which the
provider is required to maintain by this Subchapter.
(2) The Commission may:
(A) request additional information be provided to the
Commission relating to an application; and
(B) terminate an application without further notice
if the applicant fails to provide the additional information not later
than the 60th day after the Commission mails the request.
(3) An approved provider is permitted to offer courses
in both real estate and real estate inspection that have been approved
by the Commission.
(b) Exempt Providers.
(1) The following persons may submit real estate qualifying
courses for approval for credit under §535.62(i) of this subchapter
without becoming an approved provider of qualifying courses:
(A) a person approved by a real estate regulatory agency
to offer qualifying real estate courses in another state;
(B) an accredited college or university in accordance
with §535.66 of this subchapter;
(C) a post-secondary educational institution established
in and offering qualifying real estate courses in another state;
(D) a United States armed forces institute; and
(E) a nationally recognized professional designation
institute or council in the real estate industry.
(2) The following persons may submit real estate inspector
qualifying courses for approval for credit under §535.62(i) of
this subchapter without becoming an approved provider of qualifying
courses:
(A) a provider approved by an inspector regulatory
agency of another state;
(B) an accredited college or university in accordance
with §535.66 of this subchapter;
(C) a United States armed forces institute;
(D) a unit of federal, state or local government;
(E) a nationally recognized building, electrical, plumbing,
mechanical or fire code organization;
(F) a professional trade association in the inspection
field or in a related technical field; or
(G) an entity whose courses are approved and regulated
by an agency of this state.
(c) Standards for approval. To be approved as a provider
by the Commission, the applicant must meet the following standards:
(1) the applicant must satisfy the Commission as to
the applicant's ability to administer courses with competency, honesty,
trustworthiness and integrity. If the applicant proposes to employ
another person to manage the operation of the applicant, that person
must meet this standard as if that person were the applicant;
(2) the applicant must demonstrate that the applicant
has sufficient financial resources to conduct its proposed operations
on a continuing basis without risk of loss to students taking courses
from the approved provider; and
(3) that any proposed facilities will be adequate and
safe for conducting courses
(d) Financial review. An applicant shall provide the
following information to enable the Commission to determine if an
applicant has sufficient financial resources to conduct its proposed
operations:
(1) business financial statements prepared in accordance
with generally accepted accounting principles, which shall include
a current statement of financial condition and a current statement
of net worth;
(2) a proposed budget for the first year of operation;
and
(3) a market survey indicating the anticipated enrollment
for the first year of operation.
(e) Insufficient financial condition. The existence
of any of the following conditions shall constitute prima facie evidence
that an applicant's financial condition is insufficient:
(1) nonpayment of a liability when due, if the balance
due is greater than 5% of the approved provider's current assets in
the current or prior accounting period;
(2) nonpayment of three or more liabilities when due,
in the current or prior accounting period, regardless of the balance
due for each liability;
(3) a pattern of nonpayment of liabilities when due,
in two or more accounting periods, even if the liabilities ultimately
are repaid;
(4) a current ratio of less than 1.75 for the current
or prior accounting period, this ratio being total current assets
divided by total current liabilities;
(5) a quick ratio of less than 1.60 for the current
or prior accounting period, this ratio being the sum of all cash equivalents,
marketable securities, and net receivables divided by total current
liabilities;
(6) a cash ratio of less than 1.40 for the current
or prior accounting period, this ratio being the sum of cash equivalents
and marketable securities divided by total current liabilities;
(7) a debt ratio of more than .40 for the current or
prior accounting period, this ratio being total liabilities divided
by total assets;
(8) a debt-to-equity ratio of greater than .60 for
the current or prior accounting period, this ratio being total liabilities
divided by owners' or shareholders' equity;
(9) a final judgment obtained against the approved
provider for nonpayment of a liability which remains unpaid more than
30 days after becoming final; or
(10) the execution of a writ of garnishment on any
of the assets of the approved provider.
(f) Approval notice. An applicant shall not act as
or represent itself to be an approved provider until the applicant
has received written notice of approval from the Commission.
(g) Period of initial approval. The initial approval
of a provider of qualifying courses is valid for four years.
(h) Payment of annual operation fee.
(1) An approved provider shall pay an annual operation
fee prescribed by §535.101 of this title no later than each anniversary
of the date of the provider's approval.
(2) An approved provider who fails to pay the annual
operation fee as prescribed shall be placed on inactive status and
notified in writing by the Commission.
(3) The approved provider will remain on inactive status
until the annual fee is paid.
(4) The Commission will not give credit for courses
given by a provider on inactive status.
(i) Disapproval of application.
(1) If the Commission determines that an applicant
does not meet the standards for approval, the Commission will provide
written notice of disapproval to the applicant.
(2) The disapproval notice, applicant's request for
a hearing on the disapproval, and any hearing are governed by the
Administrative Procedure Act, Texas Government Code, Chapter 2001,
and Chapter 533 of this title (relating to Practice and Procedure).
Venue for any hearing conducted under this section shall be in Travis
County.
(j) Renewal.
(1) Not earlier than 90 days before the expiration
of its current approval, an approved provider may apply for renewal
for another four year period.
(2) Approval or disapproval of a renewal application
shall be subject to:
(A) the standards for initial applications for approval
set out in this section; and
(B) whether the approved provider has met or exceeded
the exam passage rate benchmark established by the Commission under
subsection (k).
(3) The Commission will not require a financial review
for renewal if the applicant has provided a statutory bond or other
security acceptable to the Commission under §1101.302 of the
Act, and there are no unsatisfied final money judgments against the
applicant.
(k) Exam passage rates.
Cont'd... |
