The Texas Real Estate Commission (TREC) adopts 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 with changes to the proposed text as published in the March 5, 2004, issue of the Texas Register (29 TexReg 2174).

The amendments to §535.212 are adopted 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 recommended that the Commission increase the alternate education requirements for applicants for a professional inspector license that will require 320 additional education hours for professional inspector applications submitted after January 1, 2005. The alternate education hours will be in addition to the hours required under the traditional track application process. Thus, a professional inspector applicant under the alternate education track will be required to have completed 128 hours in core education courses and 320 additional education hours.

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

The Real Estate Inspector Committee recommended 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 adopted amendments to §535.218 permits 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 adopted amendments to §535.223 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 includes a specific disclosure in the alternate form which addresses the differences between a standard inspection and an inspection conducted under the exemption.

Seven comments were received by the Commission during the notice and comment period. One commenter stated that there will be a significant economic impact on education providers who will be required to develop additional curriculum and course materials for the required courses. The commenter also stated that it will be difficult to create the courses, get them approved, and offer the courses to applicants by the effective date of January 1, 2005. Finally, the commenter recommends a phase in period over three years rather than increasing the hours required for applications received on or after January 1, 2005, to address the concerns raised by the commenter. Several commenters suggested that the alternate track courses should include hands-on training in the field as applicants who enter the profession through the alternate education method may not have the comparable field experience as those who enter the profession 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 commission agrees with the commenters that course providers should have the flexibility to include on-site field training in each course for up to 10% of the course. However, the field work may not be included as part of correspondence or alternative delivery courses. Regarding the cost of creating the courses required to comply with the provisions, while there may be costs to providers associated with the initial development of the required courses, the costs will be recouped once the courses are offered to prospective applicants. The commission believes, and it is reflected in the legislative mandate that increased 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, that the consumer benefit of better educated applicants who pursue a license under the alternate education track method outweighs the increased cost to applicants for taking the courses.

The amendments are adopted 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 adoption is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the adopted amendments.