The Texas Real Estate Commission (TREC) adopts amendments to §535.206, concerning the Texas Real Estate Inspector Committee; §535.208, concerning Application for a License; §535.209, concerning Examinations; §535.211, concerning Professional Liability Insurance, or Any Other Insurance That Provides Coverage for Violations of Subchapter G of Texas Occupations Code, Chapter 1102; and §535.216, concerning Renewal of License. Section 535.209 is adopted with changes to the proposed text as published in the August 30, 2013, issue of the Texas Register (38 TexReg 5668). Sections 535.206, 535.208, 535.211 and 535.216 are adopted without changes to the proposed text and will not be republished.

The difference between the sections as proposed and as adopted and comments received on each section are described below. All of the comments received were reviewed by the Texas Real Estate Inspector Committee and all of the changes to the language published in the Texas Register were recommended by the Texas Real Estate Inspector Committee.

Most of the amendments are adopted to implement the relevant provisions of House Bill (HB) 2911, 83rd Session, Texas Legislature, Regular Session (2013). The effective date of the relevant provisions of HB 2911 is September 1, 2013. In relevant part, HB 2911 amended Texas Occupations Code, Chapter 1102, regarding late renewals, examinations, financial responsibility, and fingerprinting. Many of the same amendments were adopted on an emergency basis because of the September 1, 2013 effective date.

The amendments to §535.206 add term limits for inspector and public members. No comments were received on this proposal and no changes were made to the amendments as published.

The amendments to §535.208 change the reference to professional responsibility requirements, change the period for completing all application requirements from six to 12 months, and add a new fingerprinting requirement for applicants to be consistent with new statutory requirements. No comments were received on this proposal and no changes were made to the amendments as published.

The amendments to §535.209 add a new subsection to the rule regarding additional education requirements for applicants who fail an exam three consecutive times to be consistent with new statutory requirements. No comments were received on this proposal but input from a third party vendor who administers the examinations and staff was received regarding difficulties of implementation and confusion between subsections (e) and (f) of the amendments as written. The differences between the amendments as proposed and as adopted are: subsection (d) is deleted as the date of applicability has already passed and proposed subsection (e) is adopted as (d). Subsection (f) is renumbered to (e) and is rewritten to be consistent with former subsection (e) (renumbered to (d)) and to better clarify when an examination is considered passed and the period examination results remain valid for an application. Former subsection (g) (renumbered to (f)) is rewritten to simplify the requirements for additional education following three consecutive examination failures.

The amendments to §535.211 add new proof of professional responsibility requirements to be consistent with new statutory requirements. No comments were received on this proposal and no changes were made to the amendments as published.

The amendments to §535.216 add new provisions for late renewals and fingerprinting to be consistent with new statutory requirements. No comments were received on this proposal and no changes were made to the amendments as published.

The revisions to the sections as adopted do not change the nature or scope so much that they could be deemed different rules. The amendments as adopted do not affect individuals other than those contemplated by the amendments as proposed. The sections as adopted do not impose more onerous requirements than the proposed sections.

The reasoned justification for the amendments to the sections is compliance with amendments to Texas Occupations Code, Chapter 1102, regarding late renewals, financial responsibility, reexamination and fingerprinting set out in HB 2911, 83rd Session, Texas Legislature, Regular Session (2013).

The amendments are adopted 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 statutes affected by the amendments are Texas Occupations Code, Chapters 1101 and 1102. No other statute, code or article is affected by the amendments.