The Texas Real Estate Commission (TREC) proposes an amendment to §535.223, concerning standard inspection report forms. The amendment would adopt by reference a standard inspection report form. TREC has a statutory duty to adopt standard inspection report forms and to adopt rules requiring licensed inspectors to use the report forms under Senate Bill Number 1100, 75th Legislature (1997).

The proposed revisions to the report form, Inspection Report Form REI 7A-1, have been recommended by the Texas Real Estate Inspector Committee, an advisory committee of nine professional inspectors appointed by TREC, to correspond to proposed revisions to the inspector standards of practice that are otherwise explained in this issue of the Texas Register.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended section. 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 section except to the extent that a licensed corporation or limited liability company that engages in professional home inspecting for buyers and sellers in Texas would be required to pay the $10 fee every two years to renew its professional inspector license.

Ms. DeHay also has determined that for each year of the first five years the amendment as proposed is in effect the public benefit anticipated as a result of enforcing the amended section will be clarity in the implementation of the statutory requirements for licensing and renewal, 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 every two years to renew 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, Chapters 1101 and 1102. No other statute, code or article is affected by the proposed amendments.