Texas Register

TITLE 22 EXAMINING BOARDS
PART 23TEXAS REAL ESTATE COMMISSION
CHAPTER 535GENERAL PROVISIONS
SUBCHAPTER FREQUIREMENTS FOR EDUCATION PROVIDERS, COURSES AND INSTRUCTORS FOR QUALIFYING EDUCATION
RULE §535.61Approval of Providers of Qualifying Courses
ISSUE 09/20/2019
ACTION Proposed
Preamble Texas Admin Code Rule

(a) - (j)(No change.)

(k)Renewal [Subsequent Approval].

  (1)A provider may not enroll a student in a course during the 60-day period immediately before the expiration of the provider's current approval unless the provider has submitted an application for renewal [subsequent approval] for another four year period not later than the 60th day before the date of expiration of its current approval.

  (2)Approval or disapproval of a renewal [ subsequent 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 (l) of this section.

  (3)The Commission will not require a financial review for renewal [subsequent approval] 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.

   (4)The Commission may deny an application for renewal if the provider is in violation of a Commission order.

(l)Exam passage rates and benchmark.

  (1)The exam passage rate for an approved provider shall be:

    (A)calculated for each license category for which the provider offers courses; and

    (B)displayed on the Commission website by license category.

  (2)A student is affiliated with a provider under this subsection if the student took the majority of his or her qualifying education with the provider in the two year period prior to taking the exam for the first time.

  (3)The Commission will calculate the exam passage rate of an approved provider on a monthly basis, rounded to two decimal places on the final calculated figure, by:

    (A)determining the number of students affiliated with that approved provider who passed the examination on their first attempt in the two-year period ending on the last day of the previous month; and

    (B)dividing that number by the total number of students affiliated with that provider who took the exam for the first time during that same period.

  (4)For purposes of approving a renewal [subsequent ] application under subsection (j), the established exam passage rate benchmark for each license category is 80% of the average percentage of the total examinees for that license category who passed the examination on the first attempt in the two year period ending on the last day of the previous month.

  (5)If at the time the Commission receives a renewal [ subsequent] application from the provider requesting approval for another four year term, the provider's exam passage rate does not meet the established benchmark for a license category the provider will be:

    (A)denied approval to continue offering courses for that license category if the provider's exam passage rate is less than 50% of the average percentage of the total examinees for that license category who passed the examination on the first attempt in the two year period ending on the last day of the previous month; or

    (B)placed on probation by the Commission if the provider's exam passage rate is greater than 50% but less than 80% of the average percentage of the total examinees for that license category who passed the examination on the first attempt in the two year period ending on the last day of the previous month.

  (6)The exam passage rate of a provider on probation will be reviewed annually at the time the annual operating fee is due to determine if the provider can be removed from probation, remain on probation or have its license revoked, based on the criteria set out in paragraph (5) of this subsection.

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 September 3, 2019

TRD-201903060

Chelsea Buchholtz

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: October 20, 2019

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



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