TITLE 22. EXAMINING BOARDS

PART 8. TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD

CHAPTER 153. RULES RELATING TO PROVISIONS OF THE TEXAS APPRAISER LICENSING AND CERTIFICATION ACT

22 TAC §153.5

The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §153.5, Fees, without changes to the proposed text as published in the January 20, 2017, issue of the Texas Register (42 TexReg 201). The amendments change the reference in the rule from the fee for an evaluation of an applicant's criminal history to the fee for an evaluation of an applicant's moral character to align the rule with the statutory requirements in Chapter 1103, Texas Occupations Code, and current Board practice.

The reasoned justification for the amendments is to provide clarity for applicants and license holders and a requirement that is easier to understand and consistent with state and federal law.

No comments were received on the amendments as proposed.

The amendments are adopted under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules relating to certificates and licenses, and §1103.152, which authorizes TALCB to prescribe qualifications for appraisers that are consistent with the qualifications established by the AQB.

The statute affected by these amendments is Chapter 1103, Texas Occupations Code. No other statute, code or article is affected by the amendments.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 8, 2017.

TRD-201701824

Kristen Worman

General Counsel

Texas Appraiser Licensing and Certification Board

Effective date: May 28, 2017

Proposal publication date: January 20, 2017

For further information, please call: (512) 936-3652


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 adopts amendments to §341.2, Continuing Competence Requirements, and §341.3, Qualifying Continuing Competence Activities, without changes to the proposed text as published in the March 3, 2017, issue of the Texas Register (42 TexReg 958).

The amendments are adopted 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.

No comments were received regarding the proposed changes.

The amendments are adopted under the Physical Therapy Practice Act, Title 3, Subtitle H, Chapter 453, 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.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 2, 2017.

TRD-201701773

John P. Maline

Executive Director

Texas Board of Physical Therapy Examiners

Effective date: May 22, 2017

Proposal publication date: March 3, 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) adopts amendments to 22 TAC §535.5, License Not Required, and new §535.6, Equitable Interests in Real Property, in Chapter 535, General Provisions, without changes, as published in the March 3, 2017, issue of the Texas Register (42 TexReg 959).

The amendments remove the provision regarding selling and buying equitable interests in property from the "license not required" rule and creates 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.

There were two comments received on the proposal as published. One commenter supported the proposal but wanted an additional rule that requires anyone who intends to enter into an option or contract to purchase with the intent to resell to disclose that intention to the seller. The second commenter wanted to make the Commission aware of the practice of license holders listing option interests for sale in MLS for themselves or others. The Commission respectfully declines to make any changes to the proposal at this time since initial intent will be very difficult to discern and prove, and the Commission does not have jurisdiction over MLS.

The reasoned justification for the amendments is increased consumer protection.

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.

The statutes affected by this amendment are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701801

Kerri Lewis

General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 2017

For further information, please call: (512) 936-9032


SUBCHAPTER E. REQUIREMENTS FOR LICENSURE

22 TAC §535.53

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.53, Business Entity; Designated Broker, in Chapter 535, General Provisions, without changes, as published in the March 3, 2017, issue of the Texas Register (42 TexReg 960).

The amendments to §535.53 eliminate the word "directly" when referring to designated broker ownership requirements for a business entity. The amendment is adopted 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.

The reasoned justification for the amendments is greater clarity in the rules for those applying for business entity licenses.

No comments were received on the amendments as published.

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.

The statutes affected by this amendment are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701802

Kerri Lewis

General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 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) adopts amendments to 22 TAC §535.63, Approval of Instructors of Qualifying Courses, in Chapter 535, General Provisions, without changes, as published in the March 3, 2017, issue of the Texas Register (42 TexReg 961).

The 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 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.

The reason justification for the amendments is greater clarity in the rule and better quality adult education instructor training.

No comments were received on the amendments as published. The Texas Real Estate Inspector Advisory Committee recommends adoption of those amendments related to inspectors as published.

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; 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 adoption are Texas Occupations Code, Chapters 1101 and 1102. No other statute, code or article is affected by the amendments.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701803

Kerri Lewis

General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 2017

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


22 TAC §535.64

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.64, Content Requirements for Qualifying Real Estate Courses, in Chapter 535, General Provisions, without changes to the text as published in the March 24, 2017, issue of the Texas Register (42 TexReg 1334).

The amendments to §535.64 allows credit for an elective qualifying course that is an advanced version of a qualifying course listed in the rule or a combination course consisting of a variety of subject matter topics from qualifying courses listed in the rule.

The reasoned justification for the amendments is better quality education for new agents.

No comments were received on the amendments as published.

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.

The statutes affected by this amendment are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701804

Kerri Lewis

General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 24, 2017

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


22 TAC §535.65

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.65, Responsibilities and Operations of Providers of Qualifying Courses, in Chapter 535, General Provisions, without changes to the text as published in the March 3, 2017, issue of the Texas Register (42 TexReg 962).

The 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.

The reason justification for the amendments is greater clarity in the rules for education providers and consistency for students receiving instruction.

No comments were received on the amendments as published.

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.

The statutes affected by this amendment are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701805

Kerri Lewis

General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 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) adopts amendments to 22 TAC §535.72, Approval of Non-elective Continuing Education Courses in Chapter 535, General Provisions, without changes, as published in the March 3, 2017, issue of the Texas Register (42 TexReg 964).

The 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 amendments to §535.72 conform this section with the 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 amendments also specify course expiration dates and capitalize the Broker Responsibility course name.

The reasoned justification for the amendments is to conform this rule with changes made to §535.218 for consistency and to provide clarity and consistency for license holders.

No comments were received on the amendments as published, and the Texas Real Estate Inspector Advisory Committee recommends adoption of the amendments as published.

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 Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to continuing education requirements for inspectors.

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

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701807

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 2017

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


22 TAC §535.74

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.74, Approval of Continuing Education Instructors in Chapter 535, General Provisions, without changes, as published in the March 3, 2017, issue of the Texas Register (42 TexReg 966).

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

The reasoned justification for the amendments is to conform this rule with changes made to §535.218 for consistency and provide clarity for license holders.

No comments were received on the amendments as published, and the Texas Real Estate Inspector Advisory Committee recommends adopting the amendments as published.

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 Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to continuing education requirements for inspectors.

The statute affected by the amendment is Chapter 1102, Texas Occupations Code. No other statute, code or article is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701808

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 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) adopts amendments to 22 TAC §535.201, Definitions, and §535.212, Education and Experience Requirements for a License, in Subchapter R, Real Estate Inspectors, without changes, as published in the March 3, 2017, issue of the Texas Register (42 TexReg 966).

The 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 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.

The reasoned justification for the amendments is to conform these rules with changes made to §535.218 for consistency and provide clarity to license holders.

No comments were received on the amendments as published, and the Texas Real Estate Inspector Advisory Committee recommends adopting the rules as published.

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

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701809

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 2017

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


22 TAC §535.218

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.218, Continuing Education Required for Renewal, in Subchapter R, Real Estate Inspectors, with changes to the proposal as published in the March 3, 2017, issue of the Texas Register (42 TexReg 969).

The 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.

The Commission adopts two non-substantive typographical corrections to subsections (c)(1) and (d)(1) as published to delete a misplaced comma and change the term "licensee" to "license holder" for clarification and consistency with other Commission rules.

The revisions to the rules as adopted do not change the nature or scope so much that they could be deemed different rules. The rules as adopted do not affect individuals other than those contemplated by the rules as proposed. The rules as adopted do not impose more onerous requirements than the proposed rules.

The reasoned justification for the amendments is to improve the continuing education for license holders, so they may in turn provide better service to Texas consumers.

No comments were received on the amendments as published, and the Texas Real Estate Inspector Advisory Committee recommends adopting the amendments as published.

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 Texas Occupations Code §1102.058, which authorizes the Commission to adopt rules relating to continuing education requirements for inspectors.

The statute affected by the amendments is Chapter 1102, Texas Occupations Code. No other statute, code or article is affected by the 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 of the following coursework:

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

(ii) 4 hours of Legal and Ethics.

(2) A real estate inspector or professional inspector who files an application for reinstatement of 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) 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) Continuing education credit for students.

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

(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) 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) 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) 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) 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 adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701806

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 2017

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


22 TAC §535.227

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.227, Standards of Practice: General Provisions, in Subchapter R, Real Estate Inspectors, without changes, as published in the March 3, 2017, issue of the Texas Register (42 TexReg 970).

The 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.

The reasoned justification for the amendments is to provide greater clarity in the rules for license holders.

No comments were received on the amendment as published, and the Texas Real Estate Inspector Advisory Committee recommends adopting the amendments as published.

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 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 amendment is Chapter 1102, Texas Occupations Code. No other statute, code or article is affected by the amendments.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 4, 2017.

TRD-201701810

Kristen Worman

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 24, 2017

Proposal publication date: March 3, 2017

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