The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.52, Fitness Requirements for Individual Applicant, without changes, and §535.51, General Requirements for a Real Estate License, §535.57, Examinations, and new §535.58, License for Military Service Members, Veterans, or Military Spouses, in Chapter 535, General Provisions, with changes to the proposed text as published in the August 30, 2019, issue of the Texas Register (44 TexReg 4632). Sections 535.51, 535.57 and 535.58 will be republished.

The amendments to §535.51 eliminate 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 amendments to §535.51 also remove 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 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 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 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.

Eight comments were received on the amendments as published. Four comments were received regarding §535.51 relating to the elimination of the residency requirement. One commenter asked how the removal of the residency requirement comported with the geographic competency requirement. Another asked for clarification as to how to apply the proposed rule. One commented that lifting the residency requirement created an unfair advantage and another requested that the residency requirement remain. Additionally, one comment was received regarding §535.52 and another regarding §535.57 relating to the change of the term "moral character" to "fitness." Lastly, the Commission received a comment in support of the changes to the provisions relating to the military and one request for clarifying language. The Commission declined to make changes because doing so would go against the statutory mandates of the 86th Texas Legislature.

The amendments and new rule are adopted 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.