Texas Register

RULE §535.65Responsibilities and Operations of Providers of Qualifying Courses
ISSUE 05/24/2019
ACTION Proposed
Preamble Texas Admin Code Rule

(a)(No change.)

(b)Use of Qualified [approved] Instructor.

  (1)Except as provided by this subsection, a provider must use an instructor that is currently qualified under §535.63 of this subchapter (relating to Approval of Instructors of Qualifying Courses) [approved by the Commission] to teach the specified course.

  (2)Each instructor shall be selected on the basis of expertise in the subject area of instruction and ability as an instructor.

  (3)A provider shall require specialized training or work experience for instructors teaching specialized subjects such as law, appraisal, investments, taxation or home inspection.

  (4)An instructor shall teach a course in substantially the same manner represented to the Commission in the instructor's manual or other documents filed with the application for course approval.

  (5)A provider may use the services of a guest instructor who does not meet the instructor qualifications under §535.63 of this subchapter [is not approved as an instructor by the Commission] for qualifying real estate or inspector courses provided that person instructs for no more than 10% of the total course time.


  (1)The following practices are prohibited:

    (A)using any advertising which does not clearly and conspicuously contain the provider's name on the first page or screen of the advertising;

    (B)representing that the provider's program is the only vehicle by which a person may satisfy educational requirements;

    (C)conveying a false impression of the provider's size, superiority, importance, location, equipment or facilities, except that a provider may use objective information published by the Commission regarding pass rates if the provider also displays next to the passage rate in a readily noticeable fashion:[;]

       (i)A hyperlink to the Commission website's Education Provider Exam Passage Rate page labeled "TREC Provider Exam Pass Rates" for digital media; or

       (ii)A URL to the Commission website's Education Provider Exam Passage Rate page labeled "TREC Provider Exam Pass Rates" for non-digital media;

    (D)promoting the provider directly or indirectly as a job placement agency, unless the provider is participating in a program recognized by federal, state, or local government and is providing job placement services to the extent the services are required by the program;

    (E)making any statement which is misleading, likely to deceive the public, or which in any manner tends to create a misleading impression;

    (F)advertising a course under a course name other than the course name approved by the Commission; or

    (G)advertising using a name that implies the course provider is the Texas Real Estate Commission, including use of the acronym "TREC", in all or part of the course provider's name.

  (2)Any written advertisement by a provider that includes a fee that the provider charges for a course must display any additional fees that the provider charges for the course in the same place in the advertisement and with the same degree of prominence.

  (3)The provider shall advertise a course for the full clock hours of time for which credit is awarded.

  (4)The provider is responsible for and subject to sanctions for any violation of this subsection by any affiliate or other third party marketer or web hosting site associated with or used by the provider.

(d)Pre-enrollment agreements for approved providers.

  (1)Prior to a student enrolling in a course, a provider approved by the Commission shall provide the student with a pre-enrollment agreement that includes all of the following information:

    (A)the tuition for the course;

    (B)an itemized list of any fees charged by the provider for supplies, materials, or books needed in course work;

    (C)the provider's policy regarding the refund of tuition and other fees, including a statement addressing refund policy when a student is dismissed or withdraws voluntarily;

    (D)the attendance requirements;

    (E)the acceptable makeup procedures, including any applicable time limits and any fees that may be charged for makeup sessions;

     (F)the procedure and fees, if applicable, associated with exam proctoring;

     (F)the procedure and fees for taking any permitted makeup final examination or any permitted re-examination, including any applicable time limits; and

     (G)the procedure and fees for taking any permitted makeup final examination or any permitted re-examination, including any applicable time limits; and

    (H)[(G)] the notices regarding potential ineligibility for a license based on criminal history required by Section 53.152, Texas Occupations Code.

  (2)A pre-enrollment agreement must be signed by a representative of the provider and the student.

(e)(No change.)

(f)Course materials.

  (1)Before the course starts, a provider shall give each student copies of or, if a student has online access, provide online access to any materials to be used for the course.

  (2)A provider shall update course materials to ensure that current and accurate information is provided to students as provided for under §535.62 of this title (relating to Approval of Qualifying Courses).

(g)Presentation of courses.

  (1)Classroom Delivery:

    (A)The location for the course must be:

      (i)conducive to instruction, such as a classroom, training room, conference room, or assembly hall that is separate and apart from work areas;

      (ii)adequate for the class size;

      (iii)pose no threat to the health or safety of students; and

      (iv)allow the instructor to see and hear each student and the students to see and hear the instructor, including when offered through the use of technology.

    (B)The provider must:

      (i)check the photo identification of each student at class sign up and when signing in for each subsequent meeting of the class;

      (ii)ensure the student is present for the course for the hours of time for which credit is awarded;

      (iii)provide a 10 minute break per hour at least every two hours; and

      (iv)not have daily course segments that exceed 12 hours.

    (C)If the course is a qualifying or non-elective continuing education course delivered through the use of technology and there are more than 20 students registered for the course, the provider will also use:

      (i)a monitor at the broadcast origination site to verify identification of each student, monitor active participation of each student and facilitate questions for the instructor; and

      (ii)a proctor at each remote site with more than 20 students to verify identification of each student, monitor active participation of each student and proctor any on-site examination.

    (D)Makeup Session for Classroom Courses.

      (i)A provider may permit a student who attends at least two-thirds of an originally scheduled qualifying course to complete a makeup session to satisfy attendance requirements.

      (ii)A member of the provider's staff must approve the makeup procedure to be followed. Acceptable makeup procedures are:

        (I)attendance in corresponding class sessions in a subsequent offering of the same course; or

        (II)the supervised presentation by audio or video recording of the class sessions actually missed.

      (iii)A student shall complete all class makeup sessions no later than the 90th day after the date of the completion of the original course.

      (iv)A student who attends less than two-thirds of the originally scheduled qualifying course is not eligible to complete a makeup session. The student shall automatically be dropped from the course with no credit.

  (2)Distance Education Delivery. The provider must ensure that:

    (A)the student taking all topics of the course and completing all quizzes and exercises is the student receiving credit for the course through a student identity verification process acceptable to the Commission;

    (B)a qualified [an approved] instructor is available to answer students' questions or provide assistance as necessary in a timely manner;

    (C)a student has completed all instructional modules and attended any hours of live instruction required for a given course; and

    (D)a qualified [an approved] instructor is responsible for providing answers and rationale for the grading of the written course work.

  (3)A provider is not required to present topics in the order outlined for a course on the corresponding course approval form.

  (4)The periods of time prescribed to each unit of a topic for a qualifying course as outlined on the corresponding course approval form are recommendations and may be altered to allow instructors flexibility to meet the particular needs of their students.

(h)(No change.)

(i)Subsequent final course examination.

  (1)If a student fails a final course examination, a provider may permit the student to take a subsequent final examination only after the student has[:]

     [(A)waited at least three calendar days; and]

    [(B)]completed any additional course work prescribed by the provider.

  (2)A student shall complete the subsequent final examination no later than the 90th day after the date the original class concludes. The subsequent final examination must be a different version of the original final examination given to the student and must comply with §535.62(b)(1)(G) and subsection (h) of this section.

  (3)If a student fails to timely complete the subsequent final examination as required by this subsection, the student shall be automatically dropped from the course with no credit.

  (4)A student who fails the final course examination a second time is required to retake the course and the final course examination.

(j)Course completion certificate.

  (1)Upon successful completion of a qualifying course, a provider shall issue a course completion certificate that a student can submit to the Commission. The course completion certificate shall show:

    (A)the provider's name and approval number;

    (B)the instructor's name [and instructor license number assigned by the Commission];

    (C)the course title;

    (D)course numbers;

    (E)the number of classroom credit hours;

    (F)the course delivery method;

    (G)the dates the student began and completed the course; and

    (H)printed name and signature of an official of the provider on record with the Commission.

  (2)A provider may withhold any official completion documentation required by this subsection from a student until the student has fulfilled all financial obligations to the provider.

  (3)A provider shall maintain adequate security against forgery for official completion documentation required by this subsection.

(k) - (m)(No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 8, 2019


Chelsea Buchholtz

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 23, 2019

For further information, please call: (512) 936-3177

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