| (a) Application. A person desiring to offer educational programs
or courses of study under approval of the commission pursuant to Texas Civil
Statutes, Article 6573a, (the Act), §7(f), shall file an application
on forms adopted by the commission accompanied by the fee prescribed pursuant
to §11(9) of the Act. The commission may request additional information
from an applicant which the commission deems to be relevant and material to
the consideration of an application.
(b) Standards for approval of application for accreditation.
To be accredited as a school, 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, such as an independent contractor, to conduct or administer the courses,
the other person must meet this standard as if the other person were the applicant.
The applicant also must demonstrate that the applicant has sufficient financial
resources to conduct its proposed operations on a continuing basis without
risk of loss to students attending the school and that the proposed facilities
will be adequate and safe for conducting classes. If the applicant is currently
accredited, the applicant will be deemed to meet financial requirements imposed
by this subsection once the applicant has provided the statutory bond or other
security acceptable to the commission under Section 7(f) of the Act and there
are no unsatisfied final money judgments against the applicant; otherwise,
the application will be subject to the financial review provisions of this
section.
(c) Financial review. The commission shall review the financial
condition of each proposed school to determine whether the school has sufficient
financial resources to conduct its proposed operations on a continuing basis.
In making this determination, the commission shall be conservative in the
financial assumptions it makes concerning the school's proposed operations
and its future cash flows. The applicant shall provide the following information:
(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) on an initial application, a proposed budget for the first
year of operation; and
(3) on an initial application, a market survey indicating the
anticipated enrollment for the first year of operation.
(d) Approval of application for accreditation. If it determines
that the applicant meets the standards for accreditation and has furnished
the bond or other acceptable security required by the Act, §7(f), the
commission shall approve the application and provide a written notice of the
accreditation to the applicant. Unless surrendered or revoked for cause, the
accreditation will be valid for a period of five years.
(e) Subsequent application for accreditation. No more than
six months prior to the expiration of its current accreditation, a school
may apply for accreditation for another five year period. If a school was
accredited prior to the effective date of this section, the accreditation
of the school expires January 1, 2001, and the school may apply for accreditation
at any time.
(f) Disapproval of application. If it determines that an applicant
does not meet the standards for accreditation, the commission shall disapprove
the application in writing. An applicant may request a hearing before the
commission on the disapproval by filing a written request for hearing within
10 days following the applicant's receipt of the notice of disapproval. Following
the hearing, the commission shall issue an order which, in the opinion of
the commission, is appropriate in the matter concerned. Venue for any hearing
conducted under this section shall be in Travis County. The disapproval and
hearing are subject to the Administrative Procedure Act, Texas Government
Code, §2001.001, et. seq., and to Chapter 533 of this title (relating
to Practice and Procedure).
(g) Forms. The Texas Real Estate Commission adopts by reference
the following forms approved by the commission. These documents are published
by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin,
Texas 78711-2188.
(1) Form ED 1-0, Education Provider Application;
(2) Form ED 2-0, Principal Information Form;
(3) Form ED 3-0, Course Application;
(4) Form ED 4-0, Instructor Application;
(5) Form ED 5-0, Real Estate Provider Bond;
(6) Form ED 6-0; Evaluation Form; and
(7) Form ED 7-0, Instructor Manual Guidelines.
(h) Obtaining approval to offer course. An applicant shall
submit Form ED 3-0 the first time approval is sought to offer a course. Once
a course has been approved, no further approval is required for another accredited
school to offer the same course. Prior to advertising or offering the course,
however, the subsequent provider shall complete Form ED 3-0, file the form
with the commission and receive written or oral acknowledgment from the commission
that all necessary documentation has been filed. A school shall submit an
instructor's manual for each proposed course. The commission may require a
copy of the course materials and instructor's manual to be submitted for each
previously approved course the school intends to offer. Subsequent providers
shall offer the course as originally approved or as revised with the approval
of the commission and shall use all materials required in the original or
revised course. Each manual must comply with Form ED 7-0, Instructor Manual
Guidelines. Schools may offer a course using an alternative delivery method
such as computers if the course satisfies the requirements for such a course
contained in §535.71(r) of this title (relating to Mandatory Continuing
Education: Approval of Providers, Courses and Instructors.)
(i) Standards for instructor approval. The application for
commission approval of an instructor must be filed on forms adopted by the
commission. To be approved as an instructor, a person must satisfy the commission
as to the person's competency in the subject matter to be taught and ability
to teach effectively. Each instructor must also possess the following qualifications:
(1) a college degree in the subject area or five years professional
experience in the subject area; and
(2) three years experience in teaching or training; or
(3) the equivalent of paragraphs (1) and (2) of this subsection
as determined by the commission after due consideration of the applicant's
professional experience, research, authorship or other significant endeavors
in the subject area.
(j) Approval of instructor. If the commission determines that
the applicant meets the standards for instructor approval, the commission
shall approve the application and provide a written notice of the approval
to the applicant. Unless surrendered or revoked for cause, the approval will
be valid for a period of five years.
(k) Subsequent application for instructor approval. No more
than six months prior to the expiration of the current approval, an instructor
may apply for approval for another five year period. If an instructor was
approved prior to the effective date of this section, the approval of the
instructor expires January 1, 2001, and the instructor may apply for approval
at any time.
(l) Disapproval of application. The commission may
disapprove an application for approval of an instructor for failure to meet
the standard imposed by subsection (g) of this section, failure to satisfy
the commission as to the applicant's honesty, trustworthiness or integrity
, or for any reason which would be a ground to suspend or revoke a real estate
license. If an application is disapproved, the commission shall provide written
notice to the applicant detailing the basis of the decision. An applicant
may request a hearing before the commission by filing a written request for
hearing within 10 days following the applicant's receipt of the notice of
disapproval. Venue for any hearing conducted under this section is in Travis
County. Appeals from application disapprovals will be conducted in the manner
required by the Act, §10. Hearings are subject to the Administrative
Procedure Act, Texas Government Code, §2001.001, et. seq., and to Chapter
533 of this title (relating to Practice and Procedure).
(m) Additional information related to application. The commission
may request an applicant to provide additional information related to the
application, and the commission may terminate the application without further
notice if the applicant fails to provide the information within 60 days after
the mailing of a request by the commission.
(n) Delegation of authority. The commission may authorize its
director of licensing and education, or that person's designate, to determine
whether applications for schools, courses, and instructors should be approved.
(o) Examination preparation courses. No school may be accredited
or operate under commission approval for the sole purpose of offering courses
of instruction designed to prepare its students for the state examination
for any license issued by the commission. A school may offer an examination
preparation course on a non-credit basis, provided the requirements of subsection
(e) of this section have been met.
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