The Texas Real Estate Commission (TREC) adopts amendments to §535.64, Accreditation of Schools and Approval of Courses and Instructors, with changes from the proposed text as published in the June 26, 2009, issue of the Texas Register (34 TexReg 4271).

The proposed amendments would have addressed two distinct issues related to accreditation of schools and approval of courses and instructors: (1) the calculation and publication of exam passage rates and change to a two-year accreditation to facilitate the passage rate requirements; and (2) new requirements for instructors of the required legal update and ethics course. The exam passage rate provisions are not being adopted because it was determined that further consideration of this issue is necessary. The amendments adopt a revised application for instructor approval pursuant to changes to requirements to teach the required legal update and ethics courses, adopted elsewhere in this issue in §535.71, and also make minor stylistic changes to another provision to improve readability.

One comment was received regarding the amendments as proposed. The commenter suggested that the proposed two-year approval will cost schools more in rent than the current five-year approval because concern over non-renewal after two years will be a deterrent from entering into longer-term leases for school facilities. The commenter expressed concerns about how pass/fail results will be counted toward or against providers when a provider regulated by TREC partners with an exempt college or university, and further concern about the delegation of enforcement functions to agency staff and a perceived lack of due process if an educator's approval were not renewed. The Commission agreed with some of these concerns and determined that further evaluation was appropriate.

In not adopting unrelated parts of the proposed amendments, the revisions to the rules as adopted do not change the nature or scope so much that they could be deemed different rules. The rules as adopted do not affect individuals other than those contemplated by the rules as proposed. The rules as adopted do not impose more onerous requirements than the proposed version and do not materially alter the issues raised in the proposed rules. Changes in the adopted rules respond to public comments.

The reasoned justification for the amendments is increased quality in the required legal update and ethics courses through the establishment of increased standards for instructors.

No comments were received regarding the portions of the proposed amendments that are being adopted.

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.

The statute affected by this adoption is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments.