The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.61, Approval of Providers of Qualifying Courses, and §535.65, Responsibilities and Operations of Providers of Qualifying Courses, in Chapter 535, General Provisions. The proposed amendments to §535.61 add clarifying terms or timeframes for greater understanding and compliance. The proposed amendments also provide that a provider cannot enroll students in a course 60 days before the expiration of the provider's approval, unless they have submitted an application for a subsequent approval at least 60 days prior to the expiration of the current approval. This will offer greater protection for students who enroll in courses near the end of a provider's approval term and give providers a way to avoid any business disruption when applying for a subsequent approval. The Education Standards Advisory Committee looked at the passage rate calculation rule and related statute as directed by the Commission and concluded that the current calculation is appropriate and able to be readily calculated. They also concluded that displaying the passage rates on the website is helpful to consumers. Therefore, no changes were made to the passage rate section except to add how many decimal points are used for the figures.

The proposed amendments to §535.65 add that a provider must provide a hyperlink or URL to the TREC website when displaying exam passage rates in any advertisement. This will ensure that the consumers can verify the most current passage rate figures and related information for any or all providers. In addition, amendments to §535.65 eliminate the waiting period before retesting for students who fail a course exam, leaving the decision as to remedial course work before the retest to the providers. Finally, §535.65 was updated to reflect the changes made to §535.63 due to the Sunset Advisory Commission Report directive that instructors of courses be approved by providers and not licensed by the Commission, but retains the ability of the Commission to set qualifications and standards of instructors for TREC approved courses.

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. 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 enforcing the sections will be greater clarity in the rules, making it easier for providers to submit applications and acceptable courses without any disruption to their business, and compliance with Sunset Advisory Commission directives.

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;

--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 and ensure compliance with Chapters 1101 and 1102.

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