The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.51, General Requirements for a Real Estate License, §535.52, Moral Character Requirements for Individual Applicant, §535.57, Examinations, and new §535.58, License for Military Service Members, Veterans, or Military Spouses, in Chapter 535, General Provisions.

The proposed amendments to §535.51 eliminates the Texas residency requirement for real estate license eligibility pursuant to statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process. The proposed amendments to §535.51 also removes licensing provisions related to military service members, military veterans and military spouses to consolidate special provisions for these individuals into proposed new rule §535.58.

The proposed amendments to §535.52 implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and change the language in the caption and throughout the rule from "moral character" to "fitness."

In addition, the proposed amendment to §535.57 removes instructors from the list of those who can be disciplined for prohibited conduct during an examination. This change is part of a wider requirement to remove instructor oversight by the Commission pursuant to statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process.

Finally, new rule §535.58 was added to provide clarity to licensing requirements related to military service members, military veterans and military spouses ("military members") by consolidating into a separate rule focused specifically on military members. Accordingly, the proposed amendments address the expedited process for applicants who are military members, waives certain application and examination fees, allow the executive director to waive other requirements, accept alternative methods of demonstrating a military member's competency. New §535.58 also establishes limited reciprocity pursuant to statutory changes enacted by the 86th Legislature in SB 1200, which authorizes a spouse of an active member of the military to practice in Texas without a Texas license if they are currently licensed in good standing by another jurisdiction that has licensing requirements substantially equivalent to the requirements in Texas.

Chelsea Buchholtz, General Counsel, has determined that for the first five-year period the proposed amendments and new rule 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 and new rule. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments and new rule. 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 as proposed will be greater clarity in the rules, a more streamlined approach to licensing of military service members, veterans and military spouses, and compliance with statutory changes enacted by the 86th Legislature, including requirements that are consistent with the statute and easier to understand, apply and process.

For each year of the first five years the proposed amendments and new rule 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.