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Texas Register Preamble


The Texas Real Estate Commission (TREC) proposes amendments to §535.208, Application for a License; §535.209, Examinations; §535.212, Education and Experience Requirements for a License; §535.213, Qualifying Real Estate Inspector Courses; new rule §535.214, Education and Experience Requirements for a License; §535.216. Renewal of License; and §535.219, Schedule of Administrative Penalties, in Subchapter R of Chapter 535, General Provisions.

The proposed amendments to §535.208 remove the Texas residency requirement for inspectors to receive a license. They also eliminate provisions relating to applicants who are military service members, military veterans, and military spouses to consolidate those provisions in a new rule before the Commission for proposal that addresses the topic for all license holders regulated by the Commission. These proposed amendments are recommended by the Texas Real Estate Inspector Committee.

The proposed amendments to §535.209 create an expiration date of April 30, 2020, to rule provisions sections (c) through (g) and establish new examination eligibility requirements to applicants who take the examination on or after May 1, 2020. The amendments make the following additional changes for examinations taken on or after May 1, 2020: the two-part licensure examination may be taken at two separate times, but the national examination portion must be taken before the state, if taken on separate occasions; the amendments clarify 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; and specify what courses must be retaken if an applicant thrice fails either the national or state portion of the examination. These proposed amendments are recommended by the Texas Real Estate Inspector Committee.

The proposed amendments to §535.212 limit the rules applicability for education started before May 1, 2020, and completed and submitted in conjunction with an application filed by July 31, 2020. These proposed amendments are recommended by the Texas Real Estate Inspector Committee.

The proposed amendments to §535.213 strike a reference to the requirement for instructors to be approved because of the elimination of instructor approval by the Commission pursuant to statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process. The proposed amendments also create an expiration date of April 30, 2020, to rule provisions sections (a) through (g) and establish new education requirements for applicants who begin coursework on or after May 1, 2020. 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. These proposed amendments are recommended by the Texas Real Estate Inspector Committee.

The proposed new rule §535.214 takes effect May 1, 2020, to replace the education requirements in §535.212. The proposed new rule 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 §535.214 sets out each path in one place and reduces the total hours of coursework and field work for the substitute professional path to be more in line with other states requirements. 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. These proposed amendments are recommended by the Texas Real Estate Inspector Committee.

The proposed amendment to §535.219 changes a statutory reference to the inspector penalty matrix to address statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process.

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 and new rule. Specifically, while the reduction in required hours in coursework may affect education provider businesses, a recent change in rule to reduce some class sizes may offset this potential impact to providers. In addition, the lower overall hour requirement could attract more students to take inspector licensure courses. As such, no adverse economic effect is anticipated. 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 the changes is increased efficiency, improved clarity and 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 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 and new rule 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 and new rule.



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