The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.60, Definitions, §535.61, Approval of Providers of Qualifying Courses, §535.62, Approval of Qualifying Courses, §535.63, Approval of Instructors of Qualifying Courses, §535.64, Content Requirements for Qualifying Real Estate Courses, §535.65, Responsibilities and Operations of Providers of Qualifying Courses and §535.66, Credit for Courses Offered by Accredited Colleges or Universities, in Chapter 535, General Provisions.

The amendments to Chapter 535, Subchapter F are proposed to align the rules with statutory changes to Chapter 1101, Texas Occupations Code, adopted by the 84th Legislature in SB 699, and to clarify and improve performance and delivery standards for real estate and inspector education providers, courses and instructors recommend by the Commission's Education Standards Advisory Committee.

Significant changes are as follows:

Correspondence and Alternative delivery methods are now included in one category defined as "distance education delivery." This follows the norm in the education industry and provides a consistent approach to course review, delivery and examinations for all distance education. Because of the increased standards for review by the Commission and to keep requirements for all distance education courses the same, the requirement that correspondence courses be offered in association with an accredited college or university has been removed and a separate distance learning center certification is no longer required for online courses.

The exam passage rate benchmark is revised and provides a formula for satisfactory, probation or unsatisfactory performance levels by providers. A student will now be affiliated with the provider with which the student took the majority of course hours.

A provider may now apply for a course approval with multiple delivery methods and pay only one content and examination review fee.

Providers must satisfy the Commission at the time of course applications that the course design meets all course hour requirements, that certain minimum methods to assess a student's comprehension of the course material are included, and that final examination question banks meet the specified standards.

The adult education instructor training course required beginning January 1, 2016 must now be dated within four years of the date of application, instead of five years.

The instructor qualification requirements for non-elective continuing education courses were moved to Subchapter G, Requirements for Continuing Education Providers, Courses and Instructors.

Combined 60 hour real estate qualifying courses will no longer be accepted for approval.

A Qualifying Real Estate Course Approval Form, for Real Estate Brokerage is proposed, setting out specific topics and timeframes.

Rules regarding provider or course advertising were clarified and strengthened for better consumer protection.

The provision regarding the estimated earliest timeframe that the Commission might approve a course application was removed as it was only a notice and no longer relevant.

An approved instructor is required to be available to timely answer students' questions and for providing answers and rationale for the grading of the written course work.

Daily course hours were increased from 10 to 12 and a course completion certificate may not be issued to the student until at least twice the number of hours for which course credit is given has elapsed since the student registered for the course.

Final course examinations for all delivery methods must be proctored.

An approved provider must obtain the approval of the Commission at least 30 days in advance of any material change in the operation of the provider.

Clarification that the curriculum accreditation standards that colleges or universities courses must meet if they want their students to get license credit by the Commission are verification of clock/course hours, design and delivery method. If these standards are not met, the Commission will still give license credit for these courses if the college or universities follow the standards and procedures for course approval required under this subchapter for all other providers.

Kerri Lewis, 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 no significant anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

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 higher standards for and consistency in license education resulting in better educated license holders and therefore greater consumer protection.

Comments on the proposal may be submitted to Kerri Lewis, 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 statutes affected by this proposal are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendments.