The Texas Real Estate Commission (TREC) proposes amendments to §§535.212 concerning education and experience requirements for an inspector license, 535.218 concerning continuing education, and 535.223 concerning standard inspection reports.

The amendments to §535.212 are proposed in conjunction with the passage of H.B. 1508 by the 78th Legislature (2003), which, in part amended Texas Occupations Code section 1102.111 to increase from 60 to 320 the number of additional classroom hours that the commission may require of inspector applicants for substitution of additional education in lieu of the number of inspections and previous licensure requirements for licensing. An applicant for a real estate inspector or professional inspector license may substitute professional experience ("alternate experience") or additional education ("alternate education") in lieu of the number of real estate inspections required by Chapter 1102, Texas Occupations Code and in lieu of the requirement that the applicant has previously been licensed for a specified time as an apprentice inspector or a real estate inspector. Under section 1102.111 the alternate education requirement may not exceed 320 hours. In addition, under Chapter 1102, the commission by rule may specify the length and content of core courses, including alternate education courses under section 1102.111.

The Real Estate Inspector Committee has recommended that the Commission increase the alternate education requirements for applicants for a professional inspector license that would require 320 additional education hours for professional inspector applications submitted after January 1, 2005. The alternate education hours would be in addition to the hours required under the traditional track application process. Thus, a professional inspector applicant under the proposed alternate education track would be required to have completed 128 hours in core education courses and 320 additional education hours.

Professional Inspector applicants under the alternate education track would be required to take specific courses with the course content and length as defined in the proposed rule. The alternate education courses would be considered core education courses for purposes of licensure through traditional track licensure, but applicants could not use the alternate education courses more than once. In addition, a course approved to satisfy the additional education requirements could be used by a licensee to satisfy continuing education requirements as long as the licensee completed the full course.

The Real Estate Inspector Committee recommends these changes to the Commission due to concerns that applicants for professional inspector licenses who apply based on additional education do not have sufficient education or experience compared to those who apply through the traditional process which requires both education and experience, or the alternate experience process which requires both traditional education requirements and additional experience in related construction fields.

The proposed amendments to §535.218 would permit currently licensed inspectors to use a course approved as an alternate education course to satisfy continuing education requirements as long the as the licensee attended the entire course.

The proposed amendments to §535.223 would exempt an inspector licensee who conducts a code compliance inspection of a new home for a builder from using the standard inspection report form if the builder required use of the builder's form and the inspector included a specific disclosure in the alternate form which addresses the differences between a standard inspection and an inspection conducted under the exemption.

Loretta R. DeHay, general counsel, has determined that for the first five-year period the section is in effect there will be no fiscal implications for the state as a result of enforcing or administering the sections. There are no anticipated fiscal implications for units of local government. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the sections.

Ms. DeHay also has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be better educated licensed professional inspectors who become licensed under the alternate education track under Chapter 1102. The anticipated economic cost to persons who are required to comply with the proposed sections would be the cost of taking the additional education hours for licensure as a professional inspector under the alternate education track.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purposed and intent of the Act to insure compliance with the provisions of the Act.

The statute affected by this proposal is Texas Occupations Code, Chapter 1102. No other statute, code or article is affected by the adopted amendments.