The Texas Real Estate Commission (TREC) adopts amendments to §535.71, concerning approval of mandatory continuing education (MCE) providers, courses and instructors and §535.72, concerning presentation of courses, advertising and records, without changes to the proposed text as published in the August 3, 2001, issue of the Texas Register (26 TexReg 5740).

The amendment to §535.71 clarifies how a course examination must be graded by the instructor or provider and permits the course provider to conduct the examination by use of a computer, thus allowing students to take the course examination online or at a site designated by the provider. Adoption of the amendment also permits correspondence course providers to employ the same examination alternatives that exist for providers who use alternative delivery systems, such as computers. The amendment to §535.71 adopts by reference a revised form, MCE 9-4, Alternative Instructional Methods Reporting Form, which will be used by the provider to report the student's passing of the examination and successful completion of the course. The report form has been rearranged for clarity, and additional language has been added to emphasize the provider's obligation to submit the form to TREC. If the provider administers the examination on line, the section relating to the proctor would not be completed. The amendment to §535.72 updates a reference to the revised reporting form. Adoption of the amendments to §535.71 and to §535.72 is necessary to avoid confusion in the reporting of completion of correspondence courses and to clarify how to report course completion if the course examination is completed by computer. Adoption of the amendment to §535.71 also permits a student to avoid travel and possible delay in obtaining course credit if the course examination is administered online by computer.

No written comments were received regarding the proposal. The Texas Association of Realtors suggested at a meeting of the commission on July 16, 2001, that §535.72 should be amended to permit a provider to report course completion electronically, particularly when the course was being conducted online by the provider, rather than by filing a written report signed by the student. The commission generally supported the concept but determined that since the change had not been addressed in the published proposal, the appropriate response would be to propose the desired amendment after adoption of the original proposal.

The amendments are adopted under Texas Civil Statutes, Article 6573a, §5(h), which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties.