TITLE 22. EXAMINING BOARDS

PART 16.TEXAS BOARD OF PHYSICAL THERAPY EXAMINERS

CHAPTER 341. LICENSE RENEWAL

22 TAC §341.2, §341.3

The Texas Board of Physical Therapy Examiners (PT Board) proposes amendments to §341.2, Continuing Competence Requirements, and §341.3, Qualifying Continuing Competence Activities.

The amendments are proposed to allow for the required jurisprudence examination for initial licensure and license renewals and the ethics/professional responsibility license renewal requirement to be combined into one jurisprudence assessment learning module. Additionally, the amendments clarify the core documents for physical therapy ethics standards, authorizes the PT Board to establish a continuing competence value for the module for license renewal credit, and eliminates the need to have an ethics/professional responsibility course approved to meet the renewal requirement.

John P. Maline, Executive Director, has determined that for the first five-year period these amendments are in effect there will be no additional costs to state or local governments as a result of enforcing or administering these amendments and that there will be no adverse effect on public safety.

Mr. Maline has determined that there will be no costs or adverse economic effects to small or micro businesses, therefore an economic impact statement or regulatory flexibility analysis is not required for the amendment. There are no anticipated costs to individuals who are seeking initial license, and a cost commensurate with other available ethics courses to licensees upon renewal.

Comments on the proposed amendments may be submitted to Karen Gordon, PT Coordinator, Texas Board of Physical Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas 78701; email: karen@ptot.texas.gov. Comments must be received no later than 30 days from the date this proposed amendment is published in the Texas Register.

The amendments are proposed under the Physical Therapy Practice Act, Title 3, Subtitle H, Chapter 453, Texas Occupations Code, which provides the Texas Board of Physical Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

§341.2.Continuing Competence Requirements.

(a) - (e) (No change.)

(f) All licensees must complete a [two CCUs in] board-approved jurisprudence assessment module [programs in ethics and professional responsibility] as part of their total continuing competence requirement. The jurisprudence assessment module shall be assigned a CCU value and standard approval number by the board and [Only programs receiving approval specifically for content in ethics and professional responsibility meet this requirement. In addition to the meeting the requirements described in §341.3 of this title, activities submitted to meet the ethics and professional responsibility requirements for license renewal] shall include at a minimum the following components.

(1) (No change.)

(2) APTA's Code of Ethics for the Physical Therapist and Guide for Professional Conduct, and the Guide for Conduct of the Physical Therapist Assistant and Standards of Ethical Conduct for the Physical Therapist Assistant;

(3) - (4) (No change.)

(g) (No change.)

(h) Pursuant to a Memorandum of Understanding (MOU) with the board, the Texas Physical Therapy Association (TPTA) shall act as a [the] board-approved organization and shall be authorized to accredit providers and to evaluate and approve continuing competence activities for purposes of compliance with mandatory CC requirements as set by the board. This authority shall include authority to give, deny, withdraw and limit accreditation of providers and approval of competence activities, and to charge and collect fees as set forth in the MOU and in the statute and rules governing the board and the practice of physical therapy in Texas.

(1) (No change.)

[(2) A program taken to meet the ethics and professional responsibility requirements must have individual course approval.]

(2) [(3)] To apply for continuing competence review, the licensee or sponsor/provider must submit a fee as approved by the board with the CC review application and any additional documentation as specified in this section to the TPTA. Interested parties may contact the TPTA in Austin, Texas, (512) 477-1818, www.tpta.org.

(A) Accredited providers and course sponsors are authorized to use the following statements to notify licensees of approval.

(i) (No change.)

[(ii) Sponsors or accredited providers of activities approved as meeting the ethics and professional responsibility content requirement.]

[(I) The following statement is authorized for use in publicity: "This activity has been approved by the Texas Board of Physical Therapy Examiners for ____ CCUs toward the ethics and professional responsibility requirement for PTs and PTAs."]

[(II) The following statement is authorized for use on certificates of completion only: "This activity has been approved by the Texas Board of Physical Therapy Examiners, approval #____, for ____ CCUs toward the ethics and professional responsibility requirement for PTs and PTAs."]

(ii) [(iii)] Accredited providers.

(I) - (II) (No change.)

(B) - (C) (No change.)

(3) [(4)] Interested parties may contact the TPTA to inquire if a particular activity is approved. A list of approved activities is available on the TPTA web site.

(4) [(5)] Pursuant to the MOU, the TPTA shall provide quarterly reports to the board of its activities. Additionally, the TPTA shall report to the board the results of periodic quality assurance follow-up or review of a representative sample of approved continuing competence activities. In the event of sponsor/provider noncompliance, results will be reported to the board in writing for further investigation and direction.

§341.3.Qualifying Continuing Competence Activities.

Licensees may select from a variety of activities to fulfill the requirements for continuing competence. These activities include the following:

(1) (No change.)

(2) College or university courses.

(A) (No change.)

[(B) Courses submitted to meet the ethics/professional responsibility requirement must be approved as stated in §341.2 of this chapter (relating to Continuing Competence Requirements).]

(B) [(C)] College or university sponsored CE programs (no grade, no official transcript) must comply with paragraph (1)(A) of this subsection.

(C) [(D)] College or university courses that are part of a post-professional physical therapy degree program, or are part of a CAPTE-accredited program bridging from PTA to PT, are automatically approved and are assigned a standard approval number by the board-approved organization. If selected for an audit, the licensee must submit an official transcript.

(3) - (6) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 16, 2017.

TRD-201700657

John P. Maline

Executive Director

Texas Board of Physical Therapy Examiners

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 305-6900


PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 535. GENERAL PROVISIONS

SUBCHAPTER B. GENERAL PROVISIONS RELATING TO THE REQUIREMENTS OF LICENSURE

22 TAC §535.5, §535.6

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.5, License Not Required, and new §535.6, Equitable Interests in Real Property, in Chapter 535, General Provisions.

The proposed amendments remove the provision regarding selling and buying equitable interests in property from the "license not required" rule and create a new rule dealing with equitable interest in property, disclosures, and the circumstances under which buying and selling equitable interests will and will not require a real estate license.

Kerri Lewis, General Counsel, has determined that for the first five-year period the proposal 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 significant anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposal.

Ms. Lewis also has determined that for each year of the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the sections will be honest disclosure to the public and increased protection for consumers.

Comments on the proposal may be submitted to Kerri Lewis, 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 new rule and 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, Chapter 1101. No other statute, code or article is affected by the proposal.

§535.5.License Not Required.

(a) (No change.)

[(b) A person may acquire an option or contract to purchase real estate and then sell the option or contract, or offer to sell the option or contract, without having a real estate license provided the person does not use the options or contracts to purchase to engage in the real estate brokerage business.]

(b) [(c)] A person who owns property jointly may sell and convey title to his or her interest in the property, but to act for compensation or with the expectation of compensation as an agent for the other owner, the person must be licensed unless otherwise exempted by the Act.

(c) [(d)] A real estate license is not required for an individual employed by a business entity for the purpose of buying, selling, or leasing real property for the entity. An entity is considered to be an owner if it holds record title to the property or has an equitable title or right acquired by contract with the record title holder. An individual employed by a business entity means a person employed and directly compensated by the business entity. An independent contractor is not an employee.

(d) [(e)] Trade associations or other organizations that provide an electronic listing service for their members, but do not receive compensation when the real estate is sold, are not required to be licensed under the Act.

(e) [(f)] Auctioneers are not required to be licensed under the Act when auctioning real property for sale. However, a licensed auctioneer may not show the real property, prepare offers, or negotiate contracts unless the auctioneer is also licensed under the Act.

(f) [(g)] An answering service or clerical or secretarial employees identified to callers as such to confirm information concerning the size, price and terms of property advertised are not required to be licensed under the Act.

§535.6.Equitable Interests in Real Property.

(a) A person may acquire an option or enter into a contract to purchase real property and then sell or offer to sell the option or assign or offer to assign the interest in the contract without having a real estate license if the person:

(1) does not use the option or contract to purchase to engage in real estate brokerage; and

(2) discloses the nature of their equitable interest to any potential buyer.

(b) A person selling or offering to sell an option or assigning or offering to assign an interest in a contract to purchase real property without disclosing the nature of that interest to a potential buyer is engaging in real estate brokerage.

(c) A license holder who is engaging in real estate brokerage by selling or buying or offering to sell or buy an option or assigning or offering to assign an interest in a contract to purchase real property must disclose to any potential seller or buyer that the principal is selling or buying an option or assigning an interest in a contract and does not have legal title to the real property.

(d) A license holder acting on his or her own behalf or in a capacity described by §535.144(a) who is selling an option or assigning an interest in a contract to purchase real property must disclose to any potential buyer that the license holder is selling an option or assigning an interest in a contract and that the license holder does not have legal title to the real property.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700646

Kerri Lewis

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3092


SUBCHAPTER E. REQUIREMENTS FOR LICENSURE

22 TAC §535.53

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.53, Business Entity; Designated Broker, in Chapter 535, General Provisions.

The proposed amendments to §535.53 eliminates the word "directly" when referring to designated broker ownership requirements for a business entity. The amendment is proposed to avoid confusion regarding the requirement since a designated broker may own at least 10% of the business entity through a verified ownership chain in other business entities.

Kerri Lewis, 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 significant anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

Ms. Lewis 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 greater clarity in the rule.

Comments on the proposal may be submitted to Kerri Lewis, 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, Chapter 1101. No other statute, code or article is affected by the proposed amendments.

§535.53.Business Entity; Designated Broker.

(a) (No change.)

(b) Designated Broker.

(1) For the purposes of qualifying for, maintaining, or renewing a license, a business entity must designate an individual holding an active Texas real estate broker license in good standing with the Commission to act for it.

(2) An individual licensed broker is not in good standing with the Commission if:

(A) the broker's license is revoked or suspended, including probated revocation or suspension;

(B) a business entity licensed by the Commission while the broker was the designated broker for that business entity had its license revoked or suspended, including probated revocation or suspension, in the past two years;

(C) the broker has any unpaid or past due monetary obligations to the Commission, including administrative penalties and recovery fund payments; or

(D) a business entity licensed by the Commission has any unpaid or past due monetary obligations to the Commission, including administrative penalties and recovery fund payments, that were incurred while the broker was the designated broker for the entity;

(3) Regardless of the type of business entity, the designated broker must be a managing officer of the business entity.

(4) The business entity may not act as a broker during any period in which it does not have a designated broker to act for it who meets the requirements of the Act.

(5) To obtain or renew a license, or upon any change in the business entity's designated broker, the entity must provide to the Commission:

(A) proof of the designated broker's current status as an officer, manager or general partner for that entity; and

(B) if the designated broker does not own [directly] at least 10 percent of the business entity, proof that the business entity maintains errors and omissions insurance:

(i) in at least the minimum coverage limits required by the Act; and

(ii) that provides coverage for losses due to a violation of the Act or this Chapter.

(6) A broker may not act as a designated broker at any time while the broker's license is inactive, expired, suspended, or revoked.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700647

Kerri Lewis

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3092


SUBCHAPTER F. REQUIREMENTS FOR EDUCATION PROVIDERS, COURSES AND INSTRUCTORS FOR QUALIFYING EDUCATION

22 TAC §535.63

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.63, Approval of Instructors of Qualifying Courses, in Chapter 535, General Provisions.

The proposed amendments to §535.63 clarify the three years of experience in teaching or training applies whether you have a college degree in the subject area or have five years of active experience as a license holder and that the required adult education instructor training class must be taken in person in a classroom setting. The proposed amendments to §535.63 also change references to inspector course names to conform this section with corresponding amendments proposed for §535.218, Continuing Education Required for Renewal.

Kerri Lewis, 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 significant anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

Ms. Lewis 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 better trained instructors of real estate qualifying courses resulting in better trained real estate license holders and consistent requirements that are easier for consumers and license holders to read and understand.

Comments on the proposal may be submitted to Kerri Lewis, 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; and Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to qualifying and continuing education requirements for inspectors.

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.

§535.63.Approval of Instructors of Qualifying Courses.

(a) Application for approval.

(1) A person desiring to be approved by the Commission to teach real estate or real estate inspection qualifying courses shall:

(A) file an application on the appropriate form approved by the Commission; and

(B) submit the required fee required by §535.101 or §535.210 of this title.

(2) The Commission may:

(A) request additional information be provided to the Commission relating to an application; and

(B) terminate an application without further notice if the applicant fails to provide the additional information not later than the 60th day after the Commission mails the request.

(b) Standards for instructor approval. To be approved as an instructor by the Commission to teach real estate or real estate inspection qualifying courses, the applicant must meet the following standards:

(1) The applicant must satisfy the Commission as to:

(A) the applicant's honesty, trustworthiness, and integrity; and

(B) the person's competency in the subject matter to be taught and ability to teach effectively.

(2) Except as provided by paragraph (3) of this subsection, the applicant must possess the following qualifications:

(A) a college degree in the subject area [or five years of active experience as a license holder] and three years of experience in teaching or training;

(B) five years of active experience as a license holder and three years of experience in teaching or training; or

(C) [(B)] the equivalent of paragraph (2)(A) or (B) of this subsection as determined by the Commission after consideration of the applicant's professional experience, research, authorship, or other significant endeavors in real estate or real estate inspection; and

(D) [(C)] [beginning January 1, 2016,] provide a completion certificate from an in-person classroom adult education instructor training course of at least 8 hours that is acceptable to the Commission and dated within four years of the date of application.

(3) To be approved as an instructor of Texas Standards of Practice, Standards of Practice Review, Inspector Legal and Ethics, [Texas Standards of Practice/Legal/Ethics Update,] or as an instructor of a ride along inspection course as defined in §535.218 of this title, an applicant must have five years of active licensure as a Texas professional inspector, and have:

(A) performed a minimum of 200 real estate inspections as a Texas professional inspector; or

(B) three years of experience in teaching and/or sponsoring trainees or inspectors.

(4) To be approved as an instructor of a Commission approved adult education instructor training course, an applicant must satisfy the Commission that the applicant:

(A) is currently approved to teach an adult education certification course accepted by the Commission for credit under paragraph (2)(D) of this subsection, (2)(C), such as CREI orITI;

(B) has a college degree in adult education from an accredited college or university and two years of recent experience training adult educators; or

(C) the equivalent of paragraph (4)(A) or (B) of this subsection as determined by the Commission after consideration of the applicant's professional experience, references, research, authorship, or other significant endeavors in training adult educators.

(c) - (f) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700648

Kerri Lewis

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3092


22 TAC §535.65

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.65, Responsibilities and Operations of Providers of Qualifying Courses, in Chapter 535, General Provisions.

The proposed amendments to §535.65 set out additional requirements providers must follow when a classroom course is being delivered to remote locations through the use of technology. These amendments were recommended by the Education Standards Advisory Committee to ensure that live classroom courses being delivered through the use of technology were properly administered to ensure the students were getting the true equivalent of classroom instruction.

Kerri Lewis, 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 significant anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

Ms. Lewis 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 better administration of live webinar courses to ensure the students get all the benefits of classroom instruction.

Comments on the proposal may be submitted to Kerri Lewis, 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, Chapter 1101. No other statute, code or article is affected by the proposed amendments.

§535.65.Responsibilities and Operations of Providers of Qualifying Courses.

(a) - (f) (No change.)

(g) Presentation of courses.

(1) Classroom Delivery:

(A) The location for the course must be:

(i) conducive to instruction, such as a classroom, training room, conference room, or assembly hall that is separate and apart from work areas;

(ii) adequate for the class size;

(iii) pose no threat to the health or safety of students; and

(iv) allow the instructor to see and hear each student and the students to see and hear the instructor, including when offered through the use of technology.

(B) The provider must:

(i) check the photo identification of each student at class sign up and when signing in for each subsequent meeting of the class;

(ii) ensure the student is present for the course for the hours of time for which credit is awarded;

(iii) provide a 10 minute break per hour at least every two hours; and

(iv) not have daily course segments that exceed 12 hours.

(C) If the course is a qualifying or non-elective continuing education course delivered through the use of technology and there are more than 20 students registered for the course, the provider will also use:

(i) a monitor at the broadcast origination site to verify identification of each student, monitor active participation of each student and facilitate questions for the instructor; and

(ii) a proctor at each remote site with more than 20 students to verify identification of each student, monitor active participation of each student and proctor any on-site examination.

(D) [(C)] Makeup Session for Classroom Courses.

(i) A provider may permit a student who attends at least two-thirds of an originally scheduled qualifying course to complete a makeup session to satisfy attendance requirements.

(ii) A member of the provider's staff must approve the makeup procedure to be followed. Acceptable makeup procedures are:

(I) attendance in corresponding class sessions in a subsequent offering of the same course; or

(II) the supervised presentation by audio or video recording of the class sessions actually missed.

(iii) A student shall complete all class makeup sessions no later than the 90th day after the date of the completion of the original course.

(iv) Dropped status may not be changed by makeup sessions, and any hours accumulated by a student may not be transferred to any other course, prior to being dropped from a course.

(v) A student who attends less than two-thirds of the originally scheduled qualifying course is not eligible to complete a makeup session. The student shall automatically be dropped from the course with no credit and the provider shall report the student's status to the Commission.

(2) Distance Education Delivery. The provider must ensure that:

(A) the student taking all topics of the course and completing all quizzes and exercises is the student receiving credit for the course through a validation process that meets guidelines approved by the Commission;

(B) an approved instructor is available to answer students' questions or provide assistance as necessary in a timely manner;

(C) a student has completed all instructional modules and attended any hours of live instruction required for a given course; and

(D) an approved instructor is responsible for providing answers and rationale for the grading of the written course work.

(3) A provider is not required to present topics and units in the order outlined for a course on the corresponding course approval form.

(4) The periods of time prescribed to each unit of a topic for a qualifying course as outlined on the corresponding course approval form are recommendations and may be altered to allow instructors flexibility to meet the particular needs of their students.

(h) - (m) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700649

Kerri Lewis

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3092


SUBCHAPTER G. REQUIREMENTS FOR CONTINUING EDUCATION PROVIDERS, COURSES AND INSTRUCTORS

22 TAC §535.72

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.72, Approval of Non-elective Continuing Education Courses in Chapter 535, General Provisions.

The proposed amendments change the real estate inspector continuing education requirements for non-elective coursework to include a four-hour course developed by providers in accordance with a TREC approved course outline and a four-hour course developed by the Commission in conjunction with the Texas A&M University Real Estate Center. The proposed amendments to §535.72 conform this section with the proposed amendments to §535.218, Continuing Education Required for Renewal, for consistency and clarify procedures for education providers to seek approval of these two continuing education courses. The proposed amendments also specify course expiration dates and capitalize the Broker Responsibility course name.

Kristen Worman, Deputy 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 anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

Ms. Worman 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 will be improved continuing education requirements for license holders and consistent requirements that are easier for education providers to understand and follow.

Comments on the proposal may be submitted to Kristen Worman, Deputy 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 Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to continuing education requirements for inspectors.

The statutes affected by this proposal are Chapters 1101 and 1102, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§535.72.Approval of Non-elective Continuing Education Courses.

(a) General requirements.

(1) The non-elective continuing education courses must be conducted as prescribed by the rules in this Subchapter.

(2) Elective continuing education course are approved and regulated under §535.73 of this subchapter.

(b) Application for approval to offer non-elective real estate or inspector CE courses.

(1) A CE provider seeking to offer a specific non-elective real estate or inspector CE course as outlined in this section shall:

(A) for a non-elective real estate course:

(i) submit a Real Estate Non-Elective Continuing Education CE Course Application [Supplement] to the Commission; and

(ii) pay the fee required by §535.101 of this title; and

(B) for a non-elective real estate inspection course: [pay the fee required by §535.101 of this title.]

(i) submit an Inspector Non-Elective Continuing Education CE Course Application to the Commission; and

(ii) pay the fee required by §535.210 of this title.

(2) A provider may file a single application for a CE course offered through multiple delivery methods. A fee is required for content review of each CE course and for each distinct delivery method utilized by a provider for that course.

(3) A provider who seeks approval of a new delivery method for a currently approved CE course must submit a new application, and pay all required fees, including a fee for content review.

(4) The Commission may:

(A) request additional information be provided to the Commission relating to an application; and

(B) terminate an application without further notice if the applicant fails to provide the additional information not later than the 60th day after the Commission mails the request.

(c) Commission approval of non-elective course materials. [Real estate non-elective CE courses.] Every two years, the Commission shall approve subject matter and course materials to be used for the following non-elective [real estate] continuing education courses [as required by the Act]:

(1) a four-hour Legal Update I: Laws, Rules and Forms course;

(2) a four-hour Legal Update II: Agency, Ethics and Hot Topics course; [and]

(3) a six-hour Broker Responsibility [broker responsibility] course; and[.]

(4) a four-hour Inspector Legal and Ethics course.

(d) Course expiration.

(1) Each legal update course expires on December 31 of each odd-numbered year.

(2) Each broker responsibility course expires on December 31 of each even-numbered year.

(3) Each Inspector Legal and Ethics course expires on August 31 of each odd-numbered year.

(e) Instructors. A CE provider must use:

(1) For non-elective real estate CE courses, a CE instructor who has been certified as required under §535.74 of this title; and [received certification to teach the version of the real estate non-elective CE course being offered.]

(2) For non-elective inspector CE courses, a CE instructor who has been approved as required under §535.74 of this title.

[(e) Application for approval to offer non-elective inspector CE courses.]

[(1) A CE provider seeking to offer a specific non elective inspector CE course as outlined in this section shall:]

[(A) submit:]

[(i) ICE Course Application form and the Texas Standards of Practice/Legal/Ethics Update Course approval form (PIEAC-SP_LEU-1); or]

[(ii) Qualifying Real Estate (or Inspector) Qualifying Course Application form and the Texas Standards of Practice/Legal/Ethics Update course approval form (PIEAC-SP_LEU-1); and]

[(B) pay the fee required by §535.210 of this title.]

[(2) A separate application is required for each course delivery method.]

[(f) Requirements for inspector non-elective CE courses.]

[(1) A Texas Standards of Practice/Legal/Ethics Update course shall contain the following topics, the units of which are outlined the Texas Standards of Practice/Legal/Ethics Update Course Approval form (PIEAC-SP_LEU-1), adopted herein by reference:]

[(A) 4 hours of Standards of Practice;]

[(B) 2 hours of Legal; and]

[(C) 2 hours of Ethics.]

[(2) A Texas Standards of Practice/Legal/Ethics Update course expires two years from the date of approval and providers must reapply and meet all current requirements of this section to offer the course for another two years.]

(f) [(g)] Delivery method. Non-elective CE courses must be delivered by one of the following delivery methods:

(1) classroom delivery;

(2) distance education delivery; or

(3) a combination of (1) and (2) of this subsection if at least 50% of the combined course is offered by classroom delivery.

(g) [(h)] Except as provided in this section, non-elective CE courses must meet the presentation requirements of §535.65(g) of this title.

(1) Classroom Delivery. The provider must submit a course completion roster in accordance with §535.75(d) of this subchapter.

(2) Distance Education Delivery.[:]

(A) Non-elective real estate courses are designed by the Commission for interactive classroom delivery. Acceptable demonstration of a method to engage distance education delivery students in interactive discussions and group activities, as well as additional material to meet the course objectives and time requirements are required for approval.

(B) The provider must submit a course completion roster in accordance with §535.75(d) of this subchapter.

(h) [(i)] Course examinations.

(1) A provider must administer a final examination promulgated by the Commission for non-elective CE courses beginning January 1, 2017 as follows:

(A) For classroom delivery, the examination will be given as a part of class instruction time with each student answering the examination questions independently followed by a review of the correct answers by the instructor. There is no minimum passing grade required to receive credit.

(B) For distance education delivery, the examination will be given after completion of regular course work and must be:

(i) proctored by a member of the provider faculty or staff, or third party proctor set out in §535.65(h)(5) of this title, who is present at the test site and has positively identified that the student taking the examination is the student registered for and who took the course; or

(ii) administered using a computer under conditions that satisfy the Commission that the student taking the examination is the student registered for and who took the course; and

(iii) graded with a pass rate of 70% in order for a student to receive credit for the course; and

(iv) kept confidential.

(2) A provider may not give credit to a student who fails a final examination and subsequent final examination as provided for in subsection (j) of this section.

(i) [(j)] Subsequent final course examination.

(1) If a student fails a final course examination, a provider may permit the student to take one subsequent final examination.

(2) A student shall complete the subsequent final examination no later than the 30th day after the date the original class concludes. The subsequent final examination must be different from the first examination.

(3) A student who fails the subsequent final course examination is required to retake the course and the final course examination.

(j) [(k)] Approval of currently approved courses by a subsequent provider.

(1) If a CE provider wants to offer a course currently approved for another provider, that subsequent provider must:

(A) submit the CE course application supplement form(s);

(B) submit written authorization to the Commission from the author or provider for whom the course was initially approved granting permission for the subsequent provider to offer the course; and

(C) pay the fee required by §535.101 or §535.210 of this title.

(2) If approved to offer the currently approved course, the subsequent provider is required to:

(A) offer the course as originally approved, including expiration date, with any approved revisions, using all materials required for the course; and

(B) meet the requirements of §535.75 of this subchapter.

(k) [(l)] Approval notice. A CE Provider shall not offer non-elective continuing education courses until the provider has received written notice of the approval from the Commission.

(l) [(m)] Required revision of a currently approved non-elective CE course. Providers are responsible for keeping current on changes to the Act and Commission Rules and must supplement materials for approved non-elective CE courses to present the current version of all applicable statutes and rules on or before the effective date of those statutes or rules.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700651

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3093


22 TAC §535.74

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.74, Approval of Continuing Education Instructors in Chapter 535, General Provisions.

The proposed amendments to §535.74 conform this section with the proposed amendments to §535.218, Continuing Education Required for Renewal, for consistency.

Kristen Worman, Deputy 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 anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

Ms. Worman 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 will be improved education requirements for license holders and consistent requirements that are easier for consumers and license holders to understand and follow.

Comments on the proposal may be submitted to Kristen Worman, Deputy 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 Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to continuing education requirements for inspectors.

The statute affected by this proposal is Chapter 1102, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§535.74.Approval of Continuing Education Instructors.

(a) - (b) (No change.)

(c) To be approved as an instructor of Standards of Practice Review, Inspector Legal and Ethics, [Texas Standards of Practice/Legal/Ethics Update,] or as an instructor of a ride along inspection course as defined in §535.218 of this title, an applicant must have five years of active licensure as a Texas professional inspector, and have:

(1) performed a minimum of 200 real estate inspections as a Texas professional inspector; or

(2) three years of experience in teaching and/or sponsoring trainees or inspectors.

(d) - (i) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700652

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3093


SUBCHAPTER R. REAL ESTATE INSPECTORS

22 TAC §535.201, §535.212

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.201, Definitions, and §535.212, Education and Experience Requirements for a License, in Subchapter R, Real Estate Inspectors.

The proposed amendments to §535.201 add a definition for the term "standards of practice," which is used throughout Subchapter R of this title and deletes the definition for Texas Standards of Practice/Legal/Ethics Update since this course was restructured and renamed. The proposed amendments to §535.212 conform this section with the proposed amendments to §535.218, Continuing Education Required for Renewal, for consistency. In addition, the proposed amendments to §535.212 delete references throughout this section to an option for obtaining substitute experience that has expired and is no longer available to license holders.

Kristen Worman, Deputy 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 anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

Ms. Worman 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 will be consistent and up-to-date requirements that are easier for consumers and license holders to read and understand.

Comments on the proposal may be submitted to Kristen Worman, Deputy 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 Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to education, experience, and continuing education requirements for inspectors.

The statute affected by this proposal is Chapter 1102, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§535.201.Definitions.

The following definitions shall apply to this subchapter.

(1) Code organization--A non-profit organization whose primary mission is to develop and advocate scientifically-based codes and standards relating to one or more of the systems found in an improvement to real estate.

(2) Committee--The Texas Real Estate Inspector Committee.

(3) Standards of Practice (SOPs)--refers to §§535.227 - 535.332 of this title, which establish the minimum requirements for a real estate inspection conducted under Chapter 1102, Occupations Code, and this Subchapter. [Texas Standards of Practice/Legal/Ethics Update--Course addressing developments related to the inspection field, including the requirements of Chapter 1102, rules of the Commission, case law, and agency enforcement actions.]

(4) Trade association--A cooperative, voluntarily joined association of business or professional competitors that is designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest.

§535.212.Education and Experience Requirements for a License.

(a) To become licensed as a real estate inspector or professional inspector, a person must satisfy:

(1) the education and experience requirements outlined in §1102.108 and §1102.109 of Chapter 1102; or

(2) the education requirements outlined in §1102.108 and §1102.109 of Chapter 1102 and the substitute experience requirements established by the Commission pursuant to §1102.111 in subsection (f) or (g) of this section.

(b) A person may satisfy the 90-hour education requirement for licensure as a real estate inspector pursuant to subsection (a)(1) or (2) of this section by completing the following coursework:

(1) 10 hours in foundations;

(2) 8 hours in framing;

(3) 10 hours in building enclosure;

(4) 10 hours in roof systems;

(5) 8 hours in plumbing systems;

(6) 10 hours in electrical systems;

(7) 10 hours in heating, ventilation, and air conditioning systems;

(8) 8 hours in appliances;

(9) 4 hours in Texas Standards of Practice;

(10) 4 hours in Texas Standard Report Form/Report Writing; and

(11) 8 hours in Texas Legal/Ethics.

(c) A [Effective January 1, 2013, a] person may satisfy the 130-hour education requirement for licensure as a professional inspector pursuant to subsection (a)(1) or (2) of this section by completing the following coursework:

(1) the courses required for licensure as a real estate inspector in subsection (b) of this section;

(2) 8 additional hours in Texas Standard Report Form/Report Writing;

(3) 8 additional hours in non-elective coursework in legal, ethics, SOPs, and report writing [Texas Standards of Practice /Legal/Ethics Update] as defined in §535.218 of this title [(relating to Continuing Education)]; and

(4) 24 additional hours in any core inspection subject(s).

(d) For the purpose of measuring the number of inspections required to receive a license or to sponsor apprentice inspectors or real estate inspectors, the Commission considers an improvement to real property to be any unit capable of being separately rented, leased or sold, subject to the following restrictions:

(1) An inspection of an improvement to real property that includes the structural and equipment/systems of the unit constitutes a single inspection.

(2) Half credit will be given for an inspection limited to structural components only or to equipment/systems only.

(3) No more than 80% of the inspections for which experience credit is given may be limited to structural components only or to equipment/systems components only.

(4) A report addressing two or more improvements is considered a single inspection.

(5) The Commission may not give experience credit to the same applicant or professional inspector for more than three complete or six partial inspections per day. No more than three applicants may receive credit for the inspection of the same unit within a 30 day period, and no more than three apprentice inspectors may receive credit for an inspection of the same unit on the same day.

(e) For the purpose of satisfying any requirement that an applicant hold a license for a period of time in order to be eligible for a license as a real estate inspector or professional inspector, the Commission shall not give credit for periods in which a license was on inactive status. An applicant for a real estate inspector license must have been licensed on active status for a total of at least three months within the 12 month period prior to the filing of the application. An applicant for a professional inspector license must have been licensed on active status for a total of at least 12 months within the 24 month period prior to the filing of the application.

(f) A [Effective January 1, 2014, a] person may satisfy the substitute experience requirements for licensure as a real estate inspector pursuant to subsection (a)(2) of this section as follows:

(1) A person who does not have two years of experience as an architect, engineer, or engineer-in-training must:

(A) complete a total of 32 additional hours of core inspection coursework, which must include the following:

(i) 8 hours in Texas Standard Report Form/Report Writing;

(ii) 8 hours in non-elective coursework in legal, ethics, SOPs, and report writing [Texas Standards of Practice /Legal/Ethics Update] as defined in §535.218 of this title;

(iii) 16 hours in any core inspection subject(s); and

(B) either:

(i) complete 20 hours of field work through ride along inspection course sessions as defined in §535.218 of this title, except there may be up to 10 students per session and 12 hours of an approved interactive experience training module;

(ii) complete 8 hours of field work through ride along inspection course sessions as defined in §535.218 of this title, except there may be up to 10 students per session and 30 hours of an approved interactive experience training module; or

[(iii) upon delivery of a Commission approved affidavit form that the applicant is unable to reasonably complete clause (i) or (ii) of this subparagraph, complete 60 hours of an approved interactive experience training module presented by a licensed professional inspector; or]

(iii) [(iv)] have three years of experience in a field directly related to home inspection, including but not limited to installing, servicing, repairing or maintaining the structural, mechanical and electrical systems found in improvements to real property and provide two affidavits from persons who have personal knowledge of the applicant's work, detailing the time and nature of the applicant's relevant experience.

(2) A person who has at least two years of experience as an active practicing licensed or registered architect, professional engineer, or engineer-in-training must:

(A) complete a total of 16 additional hours of core inspection coursework, which must include the following:

(i) 8 hours in Texas Standard Report Form/Report Writing; and

(ii) 8 hours in non-elective coursework in legal, ethics, SOPs, and report writing as defined in §535.218 of this title [Texas Standards of Practice /Legal/Ethics Update]; and

(B) submit a license history from the regulatory agency that issued the license or registration documenting the period of practice as a licensed or registered architect, professional engineer, or engineer-in-training.

[(3) Subsection (f)(1)(B)(iii) of this section will only be accepted to satisfy the substitute experience requirement if completed prior to March 1, 2015.]

(g) A [Effective January 1, 2014, a] person may satisfy the substitute experience requirements for licensure as a professional inspector pursuant to subsection (a)(2) of this section as follows:

(1) A person who does not have three years of experience as an architect, engineer, or engineer-in-training must:

(A) complete a total of 200 additional hours of core inspection coursework, which must include the following:

(i) 30 hours in foundations;

(ii) 30 hours in framing;

(iii) 24 hours in building enclosure;

(iv) 24 hours in roof systems;

(v) 16 hours in plumbing systems;

(vi) 24 hours in electrical systems;

(vii) 24 hours in heating, ventilation, and air conditioning systems;

(viii) 6 hours in appliances;

(ix) 8 hours in non-elective coursework in legal, ethics, SOPs, and report writing [Texas Standards of Practice /Legal/Ethics Update;] as defined in §535.218 of this title;

(x) 8 hours in Standard Report Form/Report writing; and

(xi) 6 hours in any core inspection subject(s); and

(B) either:

(i) complete 40 hours of field work through ride along inspection course sessions as defined in §535.218 of this title, except there may be up to 10 students per session and 24 hours of an approved interactive experience training module;

(ii) complete 16 hours of field work through ride along inspection course sessions as defined in §535.218 of this title, except there may be up to 10 students per session and 60 hours of an approved interactive experience training module;

[(iii) upon delivery of a Commission approved affidavit form that the applicant is unable to reasonably complete clause (i) or (ii) of this subparagraph, complete 60 hours of an approved interactive experience training module presented by a licensed professional inspector; or]

(iii) [(iv)] have five years of experience in a field directly related to home inspection, including but not limited to installing, servicing, repairing or maintaining the structural, mechanical and electrical systems found in improvements to real property, and provide two affidavits from persons who have personal knowledge of the applicant's work, detailing the time and nature of the applicant's relevant experience.

(2) A person who has at least three years of experience as an active practicing licensed or registered architect, professional engineer, or engineer-in-training must:

(A) complete a total of 16 additional hours of core inspection coursework, which must include the following:

(i) 8 hours in Texas Standard Report Form/Report Writing; and

(ii) 8 hours in non-elective coursework in legal, ethics, SOPs, and report writing [Texas Standards of Practice /Legal/Ethics Update] as defined in §535.218 of this title; and

(B) submit a license history from the regulatory agency that issued the license or registration documenting the period of practice as a licensed or registered architect, professional engineer, or engineer-in-training.

[(3) Subsection (g)(1)(B)(iii) of this section will only be accepted to satisfy the substitute experience requirement if completed prior to March 1, 2016.]

(h) For purposes of this section:

(1) "core inspection coursework" means course work on the subject matters listed in §535.213(e) of this title; and

(2) "interactive experience training module" means education that provides regular and substantive interaction between the students and the instructor, either synchronously or asynchronously, and is delivered:

(A) in-person to students in the classroom; or

(B) through the use of one or more of the following technologies:

(i) the internet;

(ii) one-way and two-way transmissions through open broadcast, closed circuit, cable, microwave, broadband lines, fiber optics, satellite or wireless communications devices;

(iii) audio conferencing; or

(iv) video cassettes, DVDs, and CD-ROMs, if the cassettes, DVDs, or CD-ROMs are used in a course in conjunction with any of the technologies listed in subparagraphs (B)(i) through (B)(iii) of this paragraph.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700653

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3093


22 TAC §535.218

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.218, Continuing Education Required for Renewal in Subchapter R, Real Estate Inspectors.

The proposed amendments to §535.218 change the real estate inspector continuing education requirements for non-elective coursework to include a four-hour course developed by providers in accordance with a TREC approved course outline and a four-hour course developed by the Commission in conjunction with the Texas A&M University Real Estate Center.

Kristen Worman, Deputy 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 anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

Ms. Worman 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 improved education for license holders.

Comments on the proposal may be submitted to Kristen Worman, Deputy 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 Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to continuing education requirements for inspectors.

The statute affected by this proposal is Chapter 1102, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§535.218.Continuing Education Required for Renewal.

(a) Continuing education required for renewal.

(1) Prior to renewal of a real estate inspector or professional inspector license, a license holder must take the 32 hours of continuing education which shall include the following:

(A) 24 hours of qualifying course subjects as described in §535.213(e)(1) - (8), (11) and (12) of this title, with a maximum of 16 hours on any one single subject; and

(B) eight hours of non-elective coursework in legal, ethics, SOPs, and report writing consisting [Texas Standards of Practice /Legal/Ethics Update. The Texas Standards of Practice/Legal/Ethics Update is a non-elective course and must consist] of the following coursework:

(i) 4 hours of Standards of Practice Review [Standards of Practice]; and

(ii) 4 [2] hours of Legal and Ethics.[; and]

(iii) 2 hours of Ethics.

(2) A real estate inspector or professional inspector who files an application for reinstatement of a [an] expired license within two years of the expiration date of the previous license, must provide evidence satisfactory to the Commission that the applicant has completed any continuing education that would have been otherwise required for timely renewal of the previous license had that license not expired

(b) Ride-along inspection course.

(1) Up to eight hours of continuing education credit per two year license period can be given to a license holder for completion of ride-along inspection course.

(2) At a minimum, a ride-along inspection course must:

(A) consist of one full residential property inspection; and

(B) review applicable standards of practice and departure provisions contained in §§535.227 - 535.233 of this title.

(3) In order to qualify for real estate inspector continuing education credit, a ride-along inspection course shall consist of no more than two students per session.

(4) The instructor of a ride-along inspection course may:

(A) review report writing;

(B) deliver a notice regarding the ride-along session on a form approved by the Commission to the prospective buyer or seller of the home being inspected.

(c) Mandatory Standards of Practice Review course.

(1) 0 To be approved by the Commission, the Standards of Practice Review course shall contain the topics and the units outlined in the, SOP-1, CE Course Approval Form, Standards of Practice Review, hereby adopted by reference.

(2) Each Standards of Practice Review course expires on August 31 of each odd-numbered year.

(d) [(c)] Continuing education credit for students.

(1) Courses submitted for inspector continuing education credit must be successfully completed during the term of the current license.

(2) The Commission may not grant continuing education credit twice for a course with the same course content taken by a licensee within a two year period.

(3) Unless a real estate inspection continuing education course is offered by alternative delivery methods, completion of a final examination is not required for a license holder to receive continuing education credit for a course.

(4) The commission will not grant partial credit to an inspector who attends a portion of a course.

(e) [(d)] Continuing education credit for course taken outside of Texas. An inspector may receive continuing education elective credit for a course taken to satisfy the continuing education requirements of a country, territory, or state other than Texas if:

(1) the real estate inspector or professional inspector licensed in Texas held an active inspector license in a country, territory, or state other than Texas at the time the course was taken;

(2) the course was approved for continuing education credit for an inspector license by a country, territory, or state other than Texas at the time the course was taken;

(3) the successful completion of the course has been evidenced by a course completion certificate, a letter from the provider or such other proof satisfactory to the Commission;

(4) the subject matter of the course was predominately devoted to a subject acceptable for continuing education credit for a real estate inspector or professional inspector licensed in Texas; and

(5) the real estate inspector or professional inspector licensed in Texas has filed a Continuing Education (CE) Credit Request for an Out of State Course, with the Commission.

(f) [(e)] Continuing education credit for course offered by an exempt provider. An inspector may receive continuing education elective credit for a course not approved under §535.73 if the course is:

(1) offered by an exempt provider listed under §535.71(b); and

(2) the Commission determines the course:

(A) covers subject matter appropriate for an inspector continuing education course;

(B) and is current and accurate.

(g) [(f)] Continuing education credit for instructors.

(1) Providers may request continuing education credit be given to instructors of real estate inspection courses subject to the following guidelines:

(A) instructors may receive credit for only those portions of the course which they teach; and

(B) instructors may receive full course credit by attending all of the remainder of the course.

(2) An Instructor of a ride-along inspection course is eligible to receive continuing education credit for a ride-along inspection course conducted by the instructor if the Commission is provided a certification of course completion within one week of completion of the course, on a form approved by the Commission.

(3) Instructors of ride-along inspection course sessions may only receive up to 8 hours of continuing education credit for teaching the course per license period.

(h) [(g)] Continuing education credit for attendance at a meeting of the Texas Real Estate Inspector Committee. A real estate inspector or professional inspector licensed in Texas may receive up to four hours of continuing education elective credit per license period for attendance in person at the February meeting of the Texas Real Estate Inspector Committee.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700650

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3093


22 TAC §535.227

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.227, Standards of Practice: General Provisions, in Subchapter R, Real Estate Inspectors.

The proposed amendments to §535.227 correct a clerical error that occurred when this section was recently amended as part of a comprehensive review of the standards of practice in Subchapter R.

Kristen Worman, Deputy 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 anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated significant economic cost to persons who are required to comply with the proposed amendments.

Ms. Worman 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 will be improved clarity and requirements that are easier for consumers and license holders to read and understand.

Comments on the proposal may be submitted to Kristen Worman, Deputy 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, as well as to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102; and Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to the standards of practice for real estate inspection.

The statute affected by this proposal is Chapter 1102, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§535.227.Standards of Practice: General Provisions.

(a) - (e) (No change.)

(f) Departure provision.

(1) An inspector may depart from the inspection of a component or system required by the standards of practice only if:

(A) the inspector and client agree the item is not to be inspected;

(B) the inspector is not qualified to inspect the item;

(C) in the reasonable judgment of the inspector, the inspector determines that:

(i) conditions exist that prevent inspection of an item;

(ii) conditions or materials are hazardous to the health or safety of the inspector; or

(iii) the actions of the inspector may cause damage to the property; or

(D) the item is a common element of a multi-family development and is not in physical contact with the unit being inspected, such as the foundation under another building or a part of the foundation under another unit in the same building;

(2) If an inspector departs from the inspection of a component or system required by the standards of practice, the inspector shall:

(A) notify the client at the earliest practical opportunity that the component or system will not be inspected; and

(B) make an appropriate notation on the inspection report form, stating the reason the component or system was not inspected.

(3) If the inspector routinely departs from inspection of a component or system required by the standards of practice, and the inspector has reason to believe that the property being inspected includes that component or system, the earliest practical opportunity for the notice required by this subsection is the first contact the inspector makes with the prospective client.

(g) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2017.

TRD-201700654

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2017

For further information, please call: (512) 936-3093