The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.70, Definitions, §535.71, Approval of CE Providers, §535.72, Approval of Non-elective Continuing Education Courses, §535.73, Approval of Elective Continuing Education Courses, §535.74, Approval of continuing Education Instructors for Elective Courses, and §535.75, Responsibilities and Operations of Continuing Education Providers in Chapter 535, General Provisions.

The amendments to Chapter 535, Subchapter G 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 recommended 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.

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

Non-elective real estate legal update courses were increased from 6 hours to 8 hours and renamed. Starting in January 2017, final examinations for non-elective courses will be required for instructors of the courses and courses taken by distance education delivery with specific passing score requirements. The final examination will be given by the instructor as part of the instruction for classroom delivery courses.

Non-elective real estate courses designed for distance delivery must demonstrate a method to engage distance education delivery students in interactive discussions and group activities, as well as additional material to meet the course objectives and time requirements before approval by the Commission.

The instructor qualification requirements for non-elective continuing education courses were moved from Subchapter F to this subchapter.

A course completion certificate may not be issued to the student until at least the number of hours for which course credit is given has elapsed since the student registered for the course instead of the 24 hour period in the current rule.

Final course examinations for distance delivery must contain at least four questions per course credit hour.

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.

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 anticipated significant 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 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.