The Texas Real Estate Commission (TREC) proposes amendments to §535.212, concerning Education and Experience Requirements for a License; §535.213, concerning Approval of Courses in Real Estate Inspection; §535.214, concerning Providers of Real Estate Inspection Courses; and §535.218, concerning Continuing Education.

The amendments are proposed to implement the relevant provisions of House Bill (HB) 2911, 83rd Session, Texas Legislature, Regular Session (2013) and to implement a more comprehensive continuing education program for inspectors. The effective date of the relevant provisions of HB 2911 is September 1, 2013. In relevant part, HB 747 amended Texas Occupations Code, Chapter 1102, regarding education requirements for professional inspectors and substitute experience requirements.

The amendments to §535.212 increase the number of hours required for education for a professional inspector license by two hours and change the specific requirements for substitute experience requirements for real estate and professional inspectors by adding required interactive module hours and field work component to be consistent with new statutory requirements. The amendments also correct and clarify the language of the rule to increase comprehension.

The amendments to §535.213 clarify that the rule applies to core courses, define certain terms, clarify the qualifications for correspondence course and increase the time frame that an applicant cannot receive repeat credit for a course from two years to three years.

The amendment to §535.214 clarifies that the rule applies to providers of core education courses.

The amendments to §535.218 provide a process and requirements for approval of real estate inspector courses, providers and instructors and set out requirements for the Texas Standards of Practice/Legal /Ethics Update course and a ride along inspection course. The amendments also increase the time frame that an applicant cannot receive repeat credit for a course from two years to three years.

Kerri Lewis, Deputy General Counsel, has determined that for the first five-year period the proposed amendments 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 sections. There is an anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections as providers, instructors and courses would have to be approved by the commission, which requires payment of a fee as previously established by rule. There is an anticipated economic cost to persons who are required to comply with the proposed amendments as there could be an additional cost to licensees for the required field work component for substitute experience requirements.

Ms. Lewis also has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be consistency with new legislative requirements, guaranteeing that applicants have some hands-on experience prior to becoming licensed and providing a more robust continuing education program for inspectors, all of which will provide better educated inspectors resulting in greater consumer protection.

Comments on the proposal may be submitted to Kerri Lewis, Deputy General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its licensees to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

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