The Texas Real Estate Commission (TREC) proposes an amendment to §535.208, Application for a License. The amendment is proposed to adopt by reference a revised Certificate of Insurance, Form REI 8-1, which includes revisions to the Certificate of Insurance form for inspectors to use in showing proof of liability insurance coverage to the Commission.

The proposed amendment modifies the Certificate of Insurance form in order to clarify the types of conduct for which coverage is required, to clarify that the aggregate limit is as specified in the policy, and to extend the time period within which insurers must notify TREC of canceled or non-renewed policies from 10 days to 30 days.

Devon V. Bijansky, Assistant General Counsel, has determined that for the first five-year period the amendment as proposed is 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 amendment. There is no anticipated impact on local or state employment as a result of implementing the amendment. There is an anticipated impact on small businesses or micro-businesses as a result of implementing the amendment. There is no anticipated economic cost to persons who are required to comply with the proposed amendment.

Ms. Bijansky has also 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 sections will be greater clarity regarding the type of coverage that inspectors must carry and, therefore, increased availability of insurance coverage for inspectors. The increased time period for insurers to notify TREC of canceled or non-renewed policies reflects the current practices of insurers regarding the processing of policy renewals.

Comments on the proposed amendment may be submitted to Devon V. Bijansky, Assistant General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendment is 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 the proposed amendment are Texas Occupations Code, Chapter and 1102. No other statute, code, or article is affected by the proposed amendment.