The Texas Real Estate Commission (TREC) proposes amendments to §535.209, Examinations, new §535.212, Education and Experience Requirements for a License, new §535.213, Qualifying Real Estate Inspector Courses, and amendments to §535.218, Continuing Education Required for Renewal, in Chapter 535, General Provisions. These proposed amendments are recommended by the Texas Real Estate Inspector Committee. The amendments streamline inspector pre-licensing education requirements pursuant to the recent Sunset Advisory Commission's directive to ensure the rules are "meaningful, efficient, and not unnecessarily burdensome."

The proposed amendments to §535.209 allow the two part licensure examination to be taken at two separate times. The proposed amendment also clarifies that for an individual licensed in another state who has already passed the national examination, the coursework and examination portion associated with the national portion are not required for licensure in Texas. The amendment also specifies what courses must be retaken if an applicant thrice fails either the national or state portion of the examination.

The new proposed §535.212 significantly streamlines the pre-licensing requirement for inspectors. Currently, there are three license types for inspectors: apprentice, real estate and professional. The more experienced license types (real estate and professional) can be attained through experience and sponsorship or through substitute coursework. The new proposed §535.212 sets out each path in one place and reduces the total hours of coursework and field work for the substitute paths to be more in line with other states requirements. As an example, overall hours to become a professional inspector using the substitute path have been reduced to 194 from 394. Further, the new rule removes the requirement to repeat coursework for a higher level license.

The new proposed §535.213 details the new required coursework for licensure. The courses closely track the national guidelines for the national examination and create improved Texas modules and a practicum for the field work component of training. These redesigned courses should improve the quality and consistency of inspector licensure coursework.

The proposed amendments to §535.218 sets out the continuing education topics required for inspectors to renew their licenses that are currently cross referenced to §535.213, which is proposed for repeal. The proposed amendments also add the minimum requirements for receiving continuing education credit for a ride-along inspection course, which were contained in current §535.213 rule, which is proposed for repeal. Lastly, the proposed amendment expands the ability for an inspector to receive four hours per license period of continuing education by attending any Texas Real Estate Inspector Committee meeting.

Chelsea Buchholtz, 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 adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. Specifically, while the reduction in required hours may affect education provider businesses, a recent change in rule to reduce some class sizes could offset any need to reduce costs. In addition, the lower overall hour requirement could attract more students to take inspector licensure courses. So overall, no adverse economic effect is anticipated.

There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Buchholtz 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 the changes is a simplified licensing process without redundancies that existed previously for license holders and seekers.

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

create or eliminate a government program;

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

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

require an increase or decrease in fees paid to the agency;

create a new regulation;

expand, limit or repeal an existing regulation;

increase or decrease the number of individuals subject to the rule's applicability; or

positively or adversely affect the state's economy.

Comments on the proposal may be submitted to Chelsea Buchholtz, 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 license holders to fulfill the purposes of Chapters 1101 and 1102.

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