The Texas Real Estate Commission (TREC) adopts amendments to §535.92 concerning Renewal: Time for Filing; Satisfaction of Mandatory Continuing Education (MCE) Requirements and §535.95 concerning Miscellaneous Provisions Concerning License or Registration Renewals. The amendment to §535.92 is adopted with changes to the proposed text as published in the March 21, 2008, issue of the Texas Register (33 TexReg 2474). The proposed changes to §535.92(h) were needed to provide consistency with changes made in proposed §535.62 and §535.71. The proposed amendments to §535.62 and §535.71 are being withdrawn and the change to §535.92(h) is no longer needed. Section 535.95 is adopted without changes.

The amendments to §535.92(f) change the procedure for licensees who choose to pay an MCE deferral fee under §1101.457, Texas Occupations Code to defer MCE requirements for an additional 60 days after the date the license is renewed. If a licensee fails to timely pay the deferral fee or fails to complete the MCE requirements within the 60-day period, the license will be placed on inactive status. To reactivate the license, the licensee must pay an additional $250 fee, pay the original $200 deferral fee, complete the MCE requirements, certify that the licensee has not engaged in real estate brokerage activity, and pay the appropriate change fee.

The amendments to §535.95 clarify recent amendments to the Real Estate License Act (the Act), Texas Occupations Code, Chapter 1101, enacted by House Bill 1530, 80th Legislative Session, Regular Session, regarding fingerprinting requirements. The amendments would clarify fingerprinting procedures in cases where a licensee renews a license, has been fingerprinted, and the fingerprints have been rejected by the DPS or the FBI. The amendments amend the text of the title of the section and authorize the commission to renew a salesperson or broker license on active status if the licensee has provided at least one set of fingerprints to the Department of Public Safety (DPS), the fingerprints were rejected by the DPS or the Federal Bureau of Investigation (FBI), and the licensee has met all other requirements for renewal of the license including paying a renewal fee and completing or properly deferring MCE (MCE) requirements. In some cases the DPS or the FBI requires that the licensee, at no additional cost, submit additional data or more fingerprints if the first set of fingerprints were rejected for technical reasons. The amendments authorize the commission to issue the license in such cases if the licensee has otherwise complied with all other renewal requirements and require the commission to notify the licensee that the licensee needs to contact the DPS to submit additional fingerprints. The rule authorizes the commission to take disciplinary action against a licensee for failing to provide the requested data in a timely manner.

The reasoned justification for §535.92(f) as adopted is greater efficiency because fewer cases will be referred to enforcement for persons who fail to comply with the late MCE requirements, as such licenses will automatically go on inactive status if the licensee fails to timely comply.

The reasoned justification for §535.95 as adopted is that applicants for renewal who have complied with all requirements for renewal, but whose fingerprints have been rejected by the DPS or the FBI due to technical difficulties, may be issued a license, and the Commission will be able to obtain new fingerprints or other information necessary for renewal after the license is issued.

No comments were received regarding the amendments to §535.92(f) or §535.95 as proposed.

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