The Texas Real Estate Commission (TREC) proposes amendments to §535.210, concerning Fees, §535.216, concerning Renewal of License or Registration, and §535.218, concerning Continuing Education. The amendments are proposed to implement revisions to Texas Occupations Code Chapter 1102 enacted during the 79th Legislative Session, Regular Session, by Senate Bill 810, and to reflect the fact that home inspector licenses will go from a one-year renewal to a two-year renewal cycle in 2006 as authorized by revisions to Texas Occupations Code Chapter 1102 enacted during the 78th Legislative Session, Regular Session, by House Bill 1508.

Chapter 1102 was revised to require licensing and renewal of corporations and limited liability companies that engage in professional home inspecting for buyers and sellers in Texas. The proposed amendments to §535.210 add a $10 fee to be charged corporations and limited liability companies applying for a Texas professional inspector license, and clarify that the $100 Inspector Recovery Fund fee does not apply to corporations and limited liability companies that apply for a professional inspector license. The proposed amendments to §535.216 clarify that in order to renew a professional inspector license issued to a corporation or limited liability company, the entity must designate an officer, manager, or employee of the entity who meets the requirements of Chapter 1102, including continuing education requirements. The proposed amendments to §535.218 clarify that a licensed apprentice, real estate or professional inspector must take the required hours of continuing education within the term of the current license, and further clarifies that the commission may not give continuing education course credit twice for the same course taken by a licensee within a 2-year period. The commission was given authority under House Bill 1508 during the 78th Legislative Session to issue or renew an inspector license for a period not to exceed 24 months. Given this authority, the commission plans to implement the 2-year licensing and renewal program in April 2006. The amendments to §535.218 change the references from a 1-year period to a 2-year period for completion of continuing education to parallel the 2-year license.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended 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 amended sections except to the extent that a corporation or limited liability company that engages in professional home inspecting for buyers and sellers in Texas would be required to pay the $10 application fee in order to be licensed as a professional inspector in Texas.

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be clarity in the implementation of the statutory requirements for licensing and to assist interested person in the application process. The anticipated economic cost to persons who are required to comply with the proposed amendments is the $10 fee to apply for a license.

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 purpose and intent of the Act to insure compliance with the provisions of the Act.

The statutes affected by this proposal are Texas Occupations Code, Chapter 1101 and Chapter 1102 and Senate Bill 810, 79th Legislature, Regular Session. No other statute, code or article is affected by the proposed amendments.