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; and new rule §535.214, Education and Experience Requirements for a License, in Subchapter R of Chapter 535, General Provisions.

The proposed amendments to §535.208 eliminate an obsolete requirement for an applicant for an apprentice inspector license to provide a photo to the Commission prior to issuance of a license. The proposed amendments also eliminate certain requirements and waivers for Military Service Members, Veterans, or Military Spouses that are now addressed under §535.58.

The proposed amendments to §535.209 move the one-year period for exam results to remain valid to a new subsection and create certain eligibility and course requirements for candidates in order to be able to take the state portion of the real estate inspector exam. Replaces specific hourly course requirements for someone who fails the exam three times with specific inspector modules addressed in the proposed amendments to §535.213. The proposed amendments also allow for an out of state inspector who has already passed the national portion of the licensing exam to simply take the state portion of the exam after completion of certain Texas specific coursework.

The proposed amendments to §535.212 specifies the timeframe for education submitted under this rule is valid.

The proposed amendments to §535.213 provide a transition period for which education completed under the current requirements will be accepted. The proposed amendments lay out in detail the topics that must be covered in the new module courses, and the in-person Texas Practicum. The proposed amendments detail the required qualifications for an individual to supervise the Texas Practicum. The proposed amendments also establish a Commission audit processes related to the Texas Practicum credit request form.

The proposed new rule §535.214 establishes the education and experience requirements for a real estate inspector license after March 1, 2021. The new rule maintains the education and number of inspections currently required under the sponsorship pathway to licensure. The rule also details the substitute experience required for education in obtaining an inspector license based on the modules and practicum proposed in §535.213.

The proposed amendments and new rule were recommended by the Texas Real Estate Inspector Committee.

The proposed amendments and new rule were submitted to the Governor's Office of Regulatory Compliance in accordance with Chapter 57 of the Texas Occupations Code. The Governor's Office of Regulatory Compliance provided the agency with a determination letter on February 21, 2020. Concerns raised in this determination letter were brought to the Texas Real Estate Inspector Committee who subsequently addressed those issues.

Vanessa E. Burgess, 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. Burgess also has determined that for each year of the first five years the sections as proposed are in effect, the public benefits anticipated as a result of enforcing the sections as proposed will be improved clarity and precision of rule references for members of the public, military service members, veterans, military spouses, license holders, and education providers.

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 Vanessa E. Burgess, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 or by 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.