The Texas Appraiser Licensing and Certification Board (TALCB) proposes amendments to 22 TAC §153.5, Fees; and §153.18, Appraiser Continuing Education (ACE); and new §153.40, Approval of Continuing Education Providers and Courses; and §153.41, ACE Providers: Compliance and Enforcement. The proposed amendments and new rules would create processes for TALCB to approve continuing education providers and courses for appraisers and collect fees for these processes as authorized by the Legislature in Texas Occupations Code §1103.153, §1103.156 and Chapter 1105, Texas Occupations Code. The proposed amendments and new rules would allow TALCB to approve continuing education providers and courses without relying on other states or the Appraiser Qualifications Board (AQB) to do so. The proposed amendments also clarify that continuing education providers need not provide a copy of the Uniform Standards of Professional Appraisal Practice (USPAP) to students enrolled in a 7-hour USPAP Update course, but must ensure that students have access to an electronic or paper copy of the current version of USPAP.

Section 1103.051, Texas Occupations Code, established TALCB as an independent subdivision of the Texas Real Estate Commission (TREC). Chapter 1105, Texas Occupations Code, grants self-directed, semi-independent (SDSI) status to TALCB and TREC. As an SDSI agency, Chapter 1105 removes TALCB from the legislative appropriations process and requires TALCB to be responsible for all direct and indirect costs of TALCB's existence and operations. Thus, TALCB must generate sufficient revenue through the collection of fees to fund its budget and operations. The fees to be collected under the proposed amendments will help TALCB to recover and fund only a portion of its operational costs to approve continuing education providers and courses.

Kristen Worman, General Counsel, has determined that for the first five-year period the proposed amendments and new rules are in effect, there will be fiscal implications for the state, but not for units of local government, as a result of enforcing or administering the proposed amendments and new rules. Jennifer Wheeler, Education Manager, has determined there are 19 education providers who may apply to become a continuing education provider under the proposed amendments and new rules, which would generate $3,800 of revenue over a two-year period. These education providers currently offer over 275 continuing education courses for appraisers. If education providers sought to register or obtain approval of these continuing education courses under the proposed amendments and new rules, the expected revenue would be $17,825 over a two-year period, which brings the total expected revenue generated by the fees to be collected under the proposed amendments and rules over a two-year period to $21,625. TALCB estimates its operational costs to approve continuing education providers and courses over a two-year period to be $60,192.

Ms. Worman has also determined there will be no anticipated impact on local or state employment or rural communities as a result of implementing the proposed amendments and new rules; however, there may be an impact on small businesses or micro-businesses. As noted above, there are currently 19 education providers who may seek approval to offer continuing education courses to appraisers under the proposed amendments and new rules, and these providers may register or seek to approve more than 275 continuing education courses. Approximately one-third of these education providers are small businesses or micro-businesses. The anticipated economic impact on these small businesses or micro-businesses will be negative due to the increased filing and new provider and course approval fees.

Under §2006.002, Texas Government Code, an agency must consider alternative regulatory methods only if such alternative methods are consistent with the health, safety, environmental and economic welfare of the state. TALCB proposes these amendments and rules to comply with the statutory requirements in Chapter 1105, Texas Occupations Code, that TALCB fund all of its direct and indirect operational costs through the collection of fees. Any variance from this legislative mandate would be inconsistent with the health, safety, environmental and economic welfare of the state. Because the proposed amendments and rules will not generate sufficient revenue to cover TALCB's operational costs, no additional alternative regulatory methods have been considered.

Ms. Worman has also determined that for each year of the first five years the proposed amendments and new rules are in effect the public benefits anticipated as a result of enforcing the proposed amendments and new rules will be providing consistent processes for approval of continuing education providers and courses for appraisers in Texas at an equal or lower cost for obtaining the same or similar approvals from the AQB or another state. In addition, TALCB will raise sufficient revenue to recover and fund a portion of its operational costs as required under Chapter 1105, Texas Occupations Code.

Growth Impact Statement:

For each year of the first five years the proposed amendments and new rules are in effect the amendments and new rules will not:

--create or eliminate a government program;

--require the creation of new employee positions or the elimination of existing employee positions; or

--require an increase or decrease in future legislative appropriations to the agency.

For each year of the first five years the proposed amendments and new rules are in effect the amendments and new rules will:

--increase the number of individuals subject to the rule's applicability because the proposed amendments and new rules will now require education providers to become approved to offer continuing education courses;

--require an increase of fees paid to the agency because the proposed rules establish fees for the approval of continuing education providers and courses; and

--create new regulations or expand existing regulations to establish the processes for approving continuing education providers and courses.

For each year of the first five years the proposed amendments and new rules are in effect, there will be a positive impact on the state's economy because the proposed amendments and new rules will provide an opportunity to become an approved continuing education provider and obtain approval of continuing education courses for those continuing education providers who seek to offer continuing education courses to Texas appraisers at a cost equal to or lower than the costs of obtaining the same or similar approvals from other states or the AQB. These lower costs will encourage education providers to register and seek approval of continuing education courses in Texas.

Comments on the proposed amendments may be submitted to Kristen Worman, General Counsel, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188 or emailed to: general.counsel@talcb.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments and new rules are proposed under Texas Occupations Code §1103.153, which authorizes TALCB to adopt rules relating to the requirements for approval of continuing education providers and courses, and §1103.156, which authorizes TALCB to establish reasonable fees to administer Chapter 1103, Texas Occupations Code.

The statute affected by these amendments is Chapter 1103, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.