The Texas Real Estate Commission (TREC) proposes an amendment to §535.64, concerning accreditation of schools. The amendment would permit a currently accredited school to apply for accreditation for a new five-year period without providing detailed financial information if the school has provided the statutory surety bond or its equivalent and there are no unsatisfied final money judgments against the school.

Under §535.64, TREC accredits schools for five-year periods. A school must regularly apply for accreditation to continue to offer courses which would be accepted by TREC. As part of the regulation of the school, its finances are reviewed in TREC audits and in investigations if complaints are filed against the school. School owners have questioned whether it is necessary to provide additional information when filing an application if the school is currently accredited in good standing. The proposed amendment would simplify the reaccreditation process by lessening the amount of information that must be provided by currently accredited applicants. Schools which are unable to maintain the required $10,000 surety bond or its equivalent or which have not satisfied any final money judgments against them would be required to provide the detailed financial information set forth in the section.

Mark A. Moseley, General Counsel, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the section.

Mr. Moseley also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the section will be a simplified process for accrediting existing schools. There is no anticipated economic cost to persons who are required to comply with the proposed section. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the section.

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

The amendment is proposed under Texas Civil Statutes, Article 6573a, §5(h), which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties.

The statute which is affected by this proposal is Texas Civil Statutes, Article 6573a.