The Texas Real Estate Commission (TREC or the commission) proposes new §535.50, regarding Definitions; amendments to §535.53, regarding Corporations and Limited Liability Companies; new §535.54, regarding General Provisions Regarding Education and Experience for a License; new §535.55, regarding Education Requirements for a Salesperson License; new §535.56, regarding Education and Experience requirements for a Broker License; and new §535.57, regarding Examination Requirements for a License. The amendments and new rules are proposed as part of a comprehensive rule review of 22 TAC Chapter 535.

The definitions in §535.50 are moved from §535.71 and will apply to Subchapter E regarding Requirements for Licensure; Subchapter F regarding Pre-License Education and Examination, and Subchapter G regarding Mandatory Continuing Education. Subchapter F will only apply to examinations and accreditation of schools, instructors and courses in pre-license education programs.

The amendments to §535.53 clarify the requirements for obtaining and maintaining a broker license for a corporation or limited liability company. New subsection (c) of §535.53 provides that if a corporation or limited liability company is dissolved with the Office of the Secretary of State the license becomes null and void.

New §§535.54, 535.55, and 535.56 are moved from existing §535.63 in Subchapter F since these sections apply to general education, experience and examination requirements for a license and more appropriately fit under Subchapter E (Requirements for License). New subsection (b) in §535.54 provides that an associate's degree counts towards all the related education requirements (60 hours) for a salesperson license, and a bachelor's degree counts towards all the related education requirements (630 hours) for a broker license.

New §535.57 is moved from existing §535.61. The commission has the authority under §1101.362 of the Act to waive some or all of the education and experience requirements for someone who has been licensed within the six years preceding the date the application is filed. Under current §535.56, the commission has waived the education and experience required for a broker license for a broker who was licensed in the preceding six years (the maximum authorized under the Act) and otherwise meets the requirements of the section. The proposed rule would change the period from six years to four years so that a person who was licensed in the preceding four years and otherwise meets the requirements of the section (experience) could apply for a broker license. Under §535.57, the applicant would be required to take the examination if the applicant was licensed more than two years prior to the filing of the application.

Generally speaking, the amendment and new rules correct typographical errors, reorganize, clarify, and streamline existing rules, and update cites to new laws and codes.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the proposed amendment and new rules 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 amendment and new rules as proposed. There is no anticipated economic effect on small businesses, micro-businesses, persons, or local or state employment as a result of implementing the amendment and new rules.

Ms. DeHay also has determined that for each year of the first five years the amendment and new rules are in effect the public benefit anticipated as a result of enforcing the amendment and new rules will be more streamlined, consistent and readable rules.

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 deadline for comments is 30 days after publication in the Texas Register.

The amendment and new rules 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 ensure compliance with the provisions of the Act.

The statutes affected by this proposal are Texas Occupations Code, Chapter 1101 and Chapter 1102. No other statute, code or article is affected by the proposal.