The Texas Real Estate Commission (TREC) proposes amendments to current 22 TAC §535.61, Approval of Providers of Qualifying Courses; §535.63, Qualifications for Instructors of Qualifying Courses; §535.65, Responsibilities and Operations of Providers of Qualifying Courses; §535.66, Credit for Courses Offered by Accredited Colleges or Universities; §535.71, Approval of CE Providers; §535.73, Approval of Elective Continuing Education Courses; §535.75, Responsibilities and Operations of Continuing Education Providers; §535.400, Registration of Easement or Right-of-Way Agents; §535.403, Renewal of Registration; and proposes the addition of two new sections: 22 TAC §535.68, Content Requirements for Easement or Right-of-Way Qualifying Courses (NEW), and 22 TAC §535.406, Continuing Education Requirements, in Chapter 535, General Provisions. All proposed amendments implement statutory changes enacted by the 87th Legislature in HB 2730. In §§535.61, 535.63, 535.65, 535.66, 535.71, 535.73, and 535.75, the proposed amendments add the term "easement or right-of-way" to conform to statutory changes that require completion of qualifying and continuing education courses to obtain or maintain a certificate of registration. The proposed amendments to §535.61 allow an accredited college or university, as well as a United States armed forces institute, to submit easement or right-of-way qualifying courses for approval for credit without becoming approved providers, similar to the exemptions that currently exist for both real estate and inspector qualifying courses. The proposed changes also clarify that the calculation for the exam passage rate only includes license categories for which the provider offers courses and an examination is required. The proposed amendments to §535.66 add a new subsection and make other conforming changes to address credit for easement or right-of way courses offered by an accredited college or university, consistent with the proposed change in §535.61 and current rules related to real estate and inspection qualifying courses. New rule §535.68 mirrors the content requirements for the easement or right-of-way qualifying course as required by HB 2730 and adopts a course approval form by reference that outlines the units required to be addressed in each course topic.

The proposed amendments to §535.400 add specific requirements for the issuance of a probationary certificate, as required by HB 2730. For consistency in application, this proposed language mirrors rule language in 22 TAC §535.54 applicable to other license holders. Because HB 2730 requires certificate holders seeking to renew to successfully complete continuing education, the proposed amendments to §535.403 clarify that a certificate holder who fails to timely renew, rather than simply failing to timely pay the renewal fee, must apply for and receive a new registration. These proposed changes also modify the section that clarifies what happens if a registration expires on a Saturday, Sunday, or other day the Commission is not open for business to be consistent with rule language applicable to other license holders in 22 TAC §535.91. Lastly, new §535.406 is proposed to implement the continuing education requirements in HB 2730.

Vanessa 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 benefit anticipated as a result of enforcing the sections will be increased efficiency within the Commission, improved clarity and greater transparency for members of the public, certificate holders, and education providers, as well as requirements that are consistent with the statute.

Except as noted below, 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.

The proposed amendments to §§535.61, 535.63, 535.65, 535.66, 535.71, 535.73, and 535.75 will expand an existing regulation, and new §§ 535.68 and 535.406, as well as the proposed changes to 535.400, will create a new regulation, all as a result of the requirements of HB 2730.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Vanessa Burgess, 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.