The Texas Real Estate Commission (TREC or the commission) adopts amendments to §535.210 regarding Inspector Fees without changes to the proposed text as published in the August 19, 2011, issue of the Texas Register (36 TexReg 5195). The section will not be republished.

The amendments increase the professional inspector application fee from $90 to $104, the real estate inspector application fee from $75 to $89, the apprentice inspector application fee from $35 to $84, the annual renewal fees for professional and real estate inspectors from $27 to $32, and the annual renewal fee for an apprentice inspector from $22 to $27.

Senate Bill 1000 makes the Texas Real Estate Commission self-directed and semi-independent. The bill removes the agency from the legislative budgeting process, and requires the commission to adopt and approve an annual budget. The bill requires that the commission collect sufficient fees to fund operations to carry out its function and to fund the budget. In relevant part, the bill also requires the agency to remit $750,000 to the general revenue fund not later than August 31 of each fiscal year, to remit a nonrefundable retainer to the State Auditor of $10,000 per fiscal year, a nonrefundable retainer to the Attorney General of $75,000 per fiscal year, and a nonrefundable retainer to the State Office of Administrative Hearings of $75,000 per fiscal year. TREC will be required to reimburse each agency for all costs incurred in excess of the retainers for providing services to the commission. In addition, the bill requires the agency to pay rent in a reasonable amount to be determined by the Texas Facilities Commission with aggregate rent payments to be not less than $550,000 per fiscal year for state fiscal years ending August 31, 2012 and August 31, 2013; and not less than $425,000 per fiscal year for each year ending August 31, 2014, August 31, 2015, and August 31, 2016.

The reasoned justification for the fee increases is to raise sufficient revenue to fund costs of agency operations and required payments to the General Revenue Fund and other state agencies under Senate Bill 1000, 82nd Legislature, Regular Session (2011).

No comments were received on the rule 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. The statutes affected by this adoption are Texas Occupations Code, Chapters 1101, 1102, and 1303, and Texas Property Code, Chapter 221. No other statute, code or article is affected by the amendments.