The Texas Real Estate Commission (TREC or the commission) adopts amendments to §535.210, concerning Fees, with changes to the proposed text as published in the June 1, 2012, issue of the Texas Register (37 TexReg 3982).

The adopted amendments add a fee of $230 for taking the licensing examination which consists of a national and state part or retaking the national section of the examination; increase from $20 to $50 the fee to request an inactive professional inspector license be returned to active status; add a fee of $40 for preparing a license history; add a fee of $50 for the filing of a moral character determination; add a fee of $50 plus $10 per classroom hour for each core education course for a period of four years; add a fee of $50 plus $10 per classroom hour for each Inspector Continuing Education (ICE) course for a period of two years; add a fee of $50 for the filing of an application for approval as an instructor for a two-year period for real estate core or ICE courses, or both; clarify the fee required by the Department of Information Resources as a subscription or convenience fee for use of an online payment system; and add a fee of $30 for processing a returned check. The effective date for the amendments is January 1, 2013. The Inspector Committee agrees with and recommends the increase in fees as well as the changes between the rule as proposed and as adopted.

The difference between the rule as proposed and adopted is subsection (a)(8) is changed to clarify the fee for taking the license examination that consists of one part only;" the phrase "terminate or" is deleted in subsection (a)(9); subsection (a)(10) is deleted from the rule as proposed and the subsequent paragraphs are renumbered; the term "professional inspector" is added to renumbered subsection (a)(10) between "inactive" and "license"; and the reference to Chapter 1102 is changed to Chapter 1101 in renumbered subsection (a)(14) and (15).

The revision to the rule as adopted does not change the nature or scope so much that it could be deemed a different rule. The rule as adopted does not affect individuals other than those contemplated by the rule as proposed. The rule as adopted does not impose more onerous requirements than the proposed rule.

The justification for the fee increases is to generate sufficient revenue to fund operations of the agency and to comply with requirements of Senate Bill 1000, 82nd Texas Legislature, Regular Session (2011).

Senate Bill 1000 makes the 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 non-refundable retainer to the State Auditor of $10,000 per fiscal year, a non-refundable retainer to the Attorney General of $75,000 per fiscal year, and a non-refundable 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 $555,100 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.

As of July 20, 2012, two comments were received on the rule as proposed, including one from the Texas Professional Real Estate Inspector Association.

Comments: The commenters questioned whether professional trade associations would be required to apply and pay for accreditation by the commission under the rules as proposed. In addition, the commenters asked whether a trade association would be required to apply and pay for approval of courses offered by the association, or apply and pay for approval of instructors of such courses.

Response: Under the current rules and the fees as proposed, a trade association as defined in the rules would not be required to pay for accreditation as a core provider, would not be required to apply and pay for pre-approval of core courses offered by the association, and would not be required to apply and pay for approval of instructors of such courses.

The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes TREC 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 and 1102. No other statute, code or article is affected by the amendments.