The Texas Real Estate Commission (TREC) proposes the repeal of 22 TAC §535.93, Late Renewal Applications, in Chapter 535, General Provisions.

The purpose of the proposed repeal is to eliminate the "lookback period" currently found in §535.93, which currently allows a license holder to renew after the expiration date of their license without any lapse in active licensure, as long as certain certifications are made. With this repeal and the additional proposed changes in 22 TAC Chapter 535, a license holder who late renews (meaning no later than 6 months after the expiration date) would automatically renew on inactive status. In order to mirror the format of rule 22 TAC §535.216 (which relates to inspectors), the relevant language of §535.93 has been added to 22 TAC §535.91. As a result, §535.93 is no longer necessary.

Vanessa Burgess, General Counsel, has determined that for the first five-year period the proposed repeal is 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 repeal. There is no significant economic cost anticipated for persons who are required to comply with the proposed repeal. 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 repeal as proposed is in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity and consistency in the rules, ensuring relevant education for new license holders, and greater consumer protection by eliminating the "lookback period."

Except as noted below, for each year of the first five years the proposed repeal is in effect, the repeal 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 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 repeal of §535.93 technically repeals an existing regulation; however, a majority of that language is consolidated in 22 TAC §535.91, which also has proposed changes.

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 repeal is 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 repeal.