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(a)Application. A person desiring to offer educational programs or courses of study under approval of the commission pursuant to Texas Occupations Code, Chapter 1101, (the Act), §1101.301, shall file an application on forms adopted by the commission accompanied by the fee prescribed pursuant to §1101.152(a)(10) 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 1101.301 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, §1101.302, 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, Chapter 2001, 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, www.trec.state.tx.us. (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 4-1, Instructor Application; (5)Form ED 5-1, Real Estate Provider Bond; (6)Form ED 6-0; Evaluation Form; and (7)Form ED 7-1, 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 §535.62(d)(6) of this chapter. (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, §1101.364. Hearings are subject to the Administrative Procedure Act, Texas Government Code, Chapter 2001, 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. (1)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 (h) of this section have been met. (2)Once an examination preparation course has been approved by the commission, the school may offer the course until the course approval expires. The approval for a course expires December 31 of the odd-numbered year following approval of the course. A school may apply for approval to offer a subsequent course no earlier than September 1 of the year in which the course approval expires. If the course was approved by the commission prior to the effective date of this subsection, the approval of the course expires December 31, 2001, and the school may apply for approval of another course beginning September 1, 2001. The commission is not required to approve a course sooner than 30 days after the filing of an application for course approval. (3)Schools shall update examination preparation course materials in the manner required by §535.65 of this title (Relating to Change in Ownership or Operation of School; Presentation of Courses, Advertising, and Records). (4)In the presentation of examination preparation courses, schools must ensure that the students are advised of the confidentiality of the contents of examinations administered for the commission and of the punishments for a violation of §535.61 of this title (Relating to Examinations).
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of
the Secretary of State on May 4, 2006
TRD-200602499 Loretta R. DeHay
General Counsel
Texas Real Estate Commission
Effective date: May 24, 2006
Proposal publication date: March 3, 2006
For further information, please call: (512) 465-3900
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