The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.54, Hearing on License Denial: Probationary Licenses; §535.55, Education and Sponsorship Requirements for a Sales Agent License; §535.56, Education and Experience Requirements for a Broker License; §535.91, Renewal of a Real Estate License; §535.101, Fees; and §535.132, Eligibility for Licensure, in Chapter 535, General Provisions, without changes, as published in the March 3, 2023, issue of the Texas Register (48 TexReg 1256) and will not be republished.

The amendments to §535.91 eliminate the "lookback period" currently found in §535.93 (currently being repealed), which allows a license holder to renew after the expiration date of their license without any lapse in active licensure, as long as certain certifications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. Under these changes, a license holder who late renews (meaning no later than 6 months after the expiration date) would automatically renew on inactive status. A corresponding change is made to §535.216 relating to inspector licenses. Section 535.91 also adds a new, single subsection addressing license reinstatement--the requirements of which are currently found in several different rule sections--as well as a subsection regarding renewing on inactive status, to be more consistent with §535.216. As a result, language related to license reinstatement is removed from §535.55 and §535.56.

The change to §535.54 reflects the repeal of §535.93. The change to §535.101 would remove the late reporting fee of $250 to reactivate a license, as a result of the elimination of the lookback period in §535.91.

In 22 TAC §535.132, changes are made to remove references to the waiver provisions in §535.55 and §535.56, as well as residency requirements, which were removed from Chapter 1101, Texas Occupations Code, as a result of the agency's most recent Sunset review.

In order to mirror the format of §535.216 (which relates to inspectors), the relevant language of §535.93 has been added to §535.91.

Subsection (b) of §535.55 also contains a change recommended by the Education Standards Advisory Committee that would require a sales agent to complete the 30-hour qualifying real estate brokerage course as part of the additional 90 hours of qualifying courses that must be completed by the expiration date of the sales agent's initial licensing period.

The remainder of the changes are either updates to terminology or form for consistency throughout the chapter or are made to reflect updated processes.

Fourteen comments were received on §535.55. Two comments opposed making the real estate brokerage course a mandatory component of a sales agent's initial license renewal stating that did not seem like the appropriate place for this information to be taught. Multiple comments did not like that broker applicants would now be required to take the course twice. One comment suggested the requirement to take the course would be better received during pre-licensure. Multiple comments were in support of the comment, noting the importance of the course in educating new sales agents. The Education Standard Advisory Committee (ESAC) discussed these comments, noting course is valuable to both new sales agents and broker applicants and that new sales agents would be introduced to concepts of the broker-agent relationship and responsibilities associated with both roles within the first two years of practice. One comment stated there would be an adverse effect on small and micro-businesses but did not provide any further detail. TREC General Counsel had conducted and provided the appropriate analysis regarding economic impact with the proposed rule and found no impact. ESAC declined to make changes in response to comments received on §535.55 and recommends adoption of the rule as published.

Four comments were received on §535.91. Two comments indicated confusion as to why the changes were being made. One comment was generally not in favor and one comment indicated concern a license holder would be set to inactive in the event TREC experienced technical issues prevent a license holder from timely renewal. The Commission declined to make changes based on the comments and noted TREC would not penalize a license holder for renewing late because of technical issues on the part of the agency.

The amendments 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; 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.