TITLE 22.EXAMINING BOARDS

Part 11. BOARD OF NURSE EXAMINERS

Chapter 214. VOCATIONAL NURSING EDUCATION

22 TAC §§214.2, 214.3, 214.9

The Board of Nurse Examiners (Board) proposes amendments to 22 Texas Administrative Code §§214.2, 214.3, and 214.9, concerning Vocational Nursing Education. At the October 2004 Board meeting a question was raised regarding efficacy of the prior Board of Vocational Nurse Examiners' rule, 22 TAC Chapter 233, and current Rule 214 which allowed LVNs to be employed as vocational nursing faculty in nursing skills labs, nursing fundamentals theory courses and clinical instruction in all levels of clinical courses. A charge was issued to ACE to review Chapter 214 and to make a recommendation to the Board regarding educational preparation for vocational nursing faculty. On February 24, 2005, the Board's Advisory Committee on Education (ACE) met to consider continuing concerns arising from Chapter 214, Vocational Nursing Education.

ACE determined that: 1) based on excellent NCLEX passage rates and the recent change in ratios which may affect the vocational nursing programs' economic situation, a "vocational" educational model where LVN mentors are a core component of the program would be advantageous; and 2) LVNs should continue to teach in vocational nursing programs with guidelines formulated by board staff. ACE polled 37 vocational nursing programs identified as using vocational nurses in various aspects of instruction. A standardized set of questions was asked of each program. A total of seventeen (17) responses, representing twenty-five (25) vocational nursing programs were tabulated by an ACE member. The data reflected that 30.3% of the vocational nursing programs in the state utilize LVNs in some manner. The major rationales identified by programs for hiring LVNs included: difficulty in finding RN clinical instructors; strong clinical background/teaching experience; and LVN faculty have been in schools for a long time. In addition, programs utilizing LVNs as faculty have not experienced a negative effect on NCLEX-PN pass rates. The NCLEX-PN pass rates of programs utilizing LVNs exceed 80%.

ACE also recommended amending §214.3(b)(3), Program Development, Expansion, and Closure, to read, "when the extension program's curriculum deviates from the original program in any way, the proposed extension is viewed as a new program and Board guidelines for a new program apply." This statement would provide clarity and direction to board staff in defining the meaning of extension and new program, and would give programs the latitude to offer the approved vocational nursing curriculum in a variety of ways to meet the needs of the local community. For example, the program would not have to submit a full proposal to offer an extension program which mirrors the approved curriculum, hours and philosophy of the main program. For consistency and clarity, ACE recommended amending §214.2(39)(C), Definitions, to read "a newly created program of study in which the curriculum, teaching resources, or program hours required to complete the program differs from that of the main location," for purposes of clarity and consistency with §214.3(b)(3).

Finally, §214.9(k) should be deleted because it conflicts with the intent of §§214.6(h), 214.9(f) and 214.9(g). Section 214.6(h) gives the program director the authority to direct the program in all its phases, including approval of teaching staff, selection of appropriate clinical sites, admission, progression, etc. Section 214.9(k) would require informing board staff of all changes such as faculty selection, clinical site selection, revision of policies for admission, progression, etc. while §214.9(f) implies that programs have the latitude to implement minor curriculum changes without board staff approval. The required reporting would occur with submission of the annual report. However, §214.9(k) implies that all changes, even minor curriculum changes must be reported and approved; therefore, the Board proposes the deletion of this section.

Katherine Thomas, executive director, has determined that for the first five-year period the proposed amendments are adopted there will be no fiscal implications for state or local government as a result of implementing the proposed amendments.

Ms. Thomas has also determined that for each year of the first five years the proposed amendments are adopted, the public benefit will be that the new rules will safeguard the welfare of the public of this State through implementation of educational standards that provide assurance that nurses are safe practitioners. There will not be an effect on small businesses. There is no anticipated cost to affected individuals as a result of this proposed adoption.

Written comments on the proposal may be submitted to Katherine A. Thomas, MN, RN, Executive Director, Board of Nurse Examiners, 333 Guadalupe, Suite 3-460, Austin, Texas 78701.

The proposed amendments are pursuant to the authority of Texas Occupations Code §301.151 and §301.152 which authorizes the Board of Nurse Examiners to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act. These proposals will not affect any existing statute.

§214.2.Definitions.

Words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:

(1) - (38) (No change.)

(39) Vocational Nursing Education Program--a unit or entity within an educational setting which provides a program of study preparing graduates who are competent to practice safely and who are eligible to take the NCLEX-PN examination. Types of programs:

(A) - (B) (No change.)

(C) New program--a newly created program of study in which the curriculum, teaching resources, or program hours [ length of time ] required to complete the program differs from that of the main location.

§214.3.Program Development, Expansion, and Closure.

(a) (No change.)

(b) Extension Program.

(1) - (2) (No change.)

(3) When the extension program's curriculum [ program ] deviates from the original program in any way, the proposed extension is viewed as a new program and Board guidelines for a new program apply.

(4) - (5) (No change.)

(c) - (d) (No change.)

§214.9.Program of Study.

(a) - (j) (No change.)

[ (k) Programs shall apprise the Board office of any program changes. (Proposed amendment to Board to delete.) ]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 26, 2005.

TRD-200501719

Katherine Thomas

Executive Director

Board of Nurse Examiners

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 305-6823


Chapter 215. PROFESSIONAL NURSING EDUCATION

22 TAC §215.6, §215.7

The Board of Nurse Examiners (Board) proposes amendments to 22 Texas Administrative Code §215.6 and §215.7, concerning Professional Nursing Education. On February 24, 2005, the Board's Advisory Committee on Education (ACE) met regarding a charge from the Board to consider concerns arising from Chapter 214, Vocational Nursing Education, and Chapter 215, Professional Nursing Education. During the meeting amendments to Chapter 215 were considered. The proposal amends §215.6(f)(2) and §215.7(c) by adding an option of a doctorate degree in nursing to the requirements for a dean, director and nursing faculty, and the requirement that a dean or director be required to teach not more than three clock hours per week is moved from §215.7, Faculty Qualifications, to §215.6 under the Dean and Director qualifications. In addition, the existing language in §215.6(g)(1) is modified to provide clarity in the intent of the rule.

Katherine Thomas, executive director, has determined that for the first five-year period the proposed amendments are adopted there will be no fiscal implications for state or local government as a result of implementing the proposed amendments.

Ms. Thomas has also determined that for each year of the first five years the proposed amendments are adopted, the public benefit will be that the new rules will safeguard the welfare of the public of this State through implementation of educational standards that provide assurance that nurses are safe practitioners. There will not be an effect on small businesses. There is no anticipated cost to affected individuals as a result of this proposed adoption.

Written comments on the proposal may be submitted to Katherine A. Thomas, MN, RN, Executive Director, Board of Nurse Examiners, 333 Guadalupe, Suite 3-460, Austin, Texas 78701.

The proposed amendments are pursuant to the authority of Texas Occupations Code §301.151 and §301.152 which authorizes the Board of Nurse Examiners to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act. These proposals will not affect any existing statute.

§215.6.Administration and Organization.

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

(f) Each professional nursing education program shall be administered by a qualified individual who is accountable for the planning, implementation and evaluation of the professional nursing education program. The dean or director shall:

(1) (No change.)

(2) hold a master's degree or a doctorate degree in nursing;

(3) (No change.)

(4) have a minimum of three years teaching experience in a professional nursing education program; [ and ]

(5) have demonstrated knowledge, skills and abilities in administration within a professional nursing education program ; and [ . ]

(6) not carry a teaching load of more than three clock hours per week if required to teach.

(g) When the dean or director of the program changes, the dean or director shall submit to the Board office written notification of the change indicating the final date of employment.

(1) A new dean or director qualification form shall be submitted to the office by the governing institution for approval prior to the appointment of a new dean or director in an existing program or a new nursing program.

(2) - (4) (No change.)

(h) (No change.)

§215.7.Faculty Qualifications and Faculty Organization.

(a) There shall be written personnel policies for nursing faculty that are in keeping with accepted educational standards and are consistent with those of the governing institution. Policies which differ from those of the governing institution shall be consistent with nursing unit mission and goals (philosophy and outcomes).

(1) - (3) (No change.)

[ (4) If the dean or director is required to teach, he or she shall carry a teaching load of no more than three clock hours per week. ]

(b) (No change.)

(c) Faculty Qualifications and Responsibilities.

(1) Documentation of faculty qualifications shall be included in the official files of the programs. Each nurse faculty member shall:

(A) - (B) (No change.)

(C) Hold a master's degree or doctorate degree , preferably in nursing. [ A nurse faculty member holding a master's degree in a discipline other than nursing shall hold a bachelor's degree in nursing from an approved or accredited baccalaureate program in nursing; and ]

[ (i) if teaching in a diploma or associate degree nursing program, shall have at least six semester hours of graduate level content in nursing appropriate to assigned teaching responsibilities, or ]

[ (ii) if teaching in a baccalaureate level program, shall have at least 12 semester hours of graduate-level content in nursing appropriate to assigned teaching responsibilities. ]

(D) A nurse faculty member holding a master's degree in a discipline other than nursing shall hold a bachelor's degree in nursing from an approved or accredited baccalaureate program in nursing; and

(i) if teaching in a diploma or associate degree nursing program, shall have at least six semester hours of graduate level content in nursing appropriate to assigned teaching responsibilities, or

(ii) if teaching in a baccalaureate level program, shall have at least 12 semester hours of graduate-level content in nursing appropriate to assigned teaching responsibilities.

(E) [ (D) ] In fully approved programs, if an individual to be appointed as faculty member does not meet the requirements for faculty as specified in this subsection, the dean or director is permitted to petition for a waiver of the Board's requirements, according to Board guidelines, prior to the appointment of said individual.

(F) [ (E) ] In baccalaureate programs, an increasing number of faculty members should hold doctoral degrees appropriate to their responsibilities.

(2) - (3) (No change.)

(d) - (g) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 26, 2005.

TRD-200501718

Katherine Thomas

Executive Director

Board of Nurse Examiners

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 305-6823


Chapter 217. LICENSURE, PEER ASSISTANCE AND PRACTICE

22 TAC §217.6

The Board of Nurse Examiners proposes an amendment to 22 Texas Administrative Code §217.6, Failure to Renew License, addressing late renewal fees as it applies to individuals on active duty in the United States armed forces serving outside the state. Texas Occupations Code §55.002 requires a state agency that issues a license to "adopt rules to exempt an individual who holds a license issued by the agency from any increased fee or other penalty imposed by the agency for failing to renew the license in a timely manner if the individual establishes to the satisfaction of the agency that the individual failed to renew the license in a timely manner because the individual was on active duty in the United States armed forces serving outside this state." In compliance with this requirement, §217.6 is amended by adding new proposed subsection (g) and puts into rule the existing policy of the Board. In addition, a few modifications are made to subsections (b) and (c) for clarification only.

Katherine Thomas, executive director, has determined that for the first five-year period the proposed amendments are adopted there will be no fiscal implications for state or local government as a result of implementing the proposed amendments.

Ms. Thomas has also determined that for each year of the first five years the proposed amendments are adopted, the public benefit will be that the new rules will prevent actively deployed nurses from being penalized for late licensure renewals though the Board's practice has been to grant a waiver. There will not be an effect on small businesses. There is no anticipated cost to affected individuals as a result of this proposed adoption.

Written comments on the proposal may be submitted to Katherine A. Thomas, MN, RN, Executive Director, Board of Nurse Examiners, 333 Guadalupe, Suite 3-460, Austin, Texas 78701.

The proposed amendments are pursuant to the authority of Texas Occupations Code §301.151 which authorizes the Board of Nurse Examiners to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act. This proposal will comply with and affect Texas Occupations Code §55.002.

§217.6.Failure to Renew License.

(a) (No change.)

(b) A nurse who is not practicing nursing and who fails to maintain a current license from any licensing authority for four or more years will be required to:

(1) complete a [ board-approved ] refresher course[ , ] or extensive orientation to the practice of nursing, or completion of a nursing program of study. The applicant will submit an application for temporary permit for the limited purpose of completing a refresher course, extensive orientation to the practice of nursing, or program of study;

(2) - (4) (No change.)

(5) submit evidence of completion of 20 contact hours of acceptable continuing education for [ within ] the [ previous ] two years immediately preceding the application for relicensure .

(c) A nurse who fails to maintain a current Texas license for four years or more and who is licensed and has practiced in another state during [ a minimum of two of ] the previous four years preceding the application for relicensure in Texas, shall be exempt from requirements of subsection (b)(1) and (2) of this section.

(d) - (f) (No change.)

(g) Special Reactivation Provisions for Actively Deployed Nurses.

(1) If a nurse's license lapses and becomes delinquent while serving in the military whenever the United States is engaged in active military operations against any foreign power, the license may be reactivated without penalty or payment of the reactivation late renewal fee(s) under the following conditions:

(A) The license was active at the time of deployment.

(B) The application for reactivation is made while still in the armed services or no later than three months after discharge from active service or return to inactive military status.

(C) A copy of the military activation orders or other proof of active military service accompanies the application;

(D) The renewal fee is paid; and

(E) If the required continuing education contact hours were not earned for renewal during the earning period, the nurse shall be required to complete the required continuing education hours needed for renewal no later than three months after discharge from active service, return to inactive military status, or return to the United States from an active war zone.

(2) The continuing education contact hours used for reactivation may not be used for the next license renewal.

(3) The continuing education contact hours for the next license renewal following reactivation may not be prorated.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 26, 2005.

TRD-200501720

Katherine Thomas

Executive Director

Board of Nurse Examiners

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 305-6823


Chapter 227. PILOT PROGRAMS FOR INNOVATIVE APPLICATIONS TO PROFESSIONAL NURSING EDUCATION

22 TAC §§227.1 - 227.6

The Board of Nurse Examiners (Board) proposes new 22 Texas Administrative Code Chapter 227, §§227.1 - 227.6, Pilot Programs for Innovative Applications to Professional Nursing Education. The Board has the authority to approve and adopt rules regarding pilot programs for the innovative application in the practice and regulation of professional nursing as authorized by Texas Occupations Code §301.1605 which was enacted by Senate Bill 718, 78th Texas Legislature, Regular Session. The Board first acted with this authorization in April 2004 and approved an initial pilot program, the M.D. Anderson Patient Safety Pilot Program, designed to evaluate the efficacy and effect on the public of nursing error reporting systems and to encourage the identification of system errors.

The BNE consistently receives requests for flexibility and creativity from nursing education programs wanting to explore new approaches to nursing education. Consequently, offering a proposal process that will encourage the development, implementation and study of innovative approaches will support the efforts of nursing education programs to train and graduate competent, safe registered nurses. In January 2005, staff informed the Board of the approach by several entities inquiring about the process for obtaining Board permission for waiving certain requirements of the Board's Chapter 215, Professional Nursing Education, in order to develop and implement strategies designed to enhance enrollment in Texas schools of nursing. Subsequent to the adoption of this rule, the Board will issue a Request for Proposal for nursing education pilot programs.

Kathy Thomas, Executive Director, has determined that there are no fiscal implications for state or local government entities as a result of adopting this rule for the first five-year period.

Ms. Thomas has also determined that for each year of the first five years the new rule is adopted the public benefit is that these pilot programs may contribute to the development of alternative avenues to increase admission into schools of nursing, may elicit creative approaches for evidence-based nursing education, and may provide a stimulus for Board rule revision and/or development. There will be no cost to small businesses or individuals as a result of adopting this rule, except to those entities whose request for a pilot study is approved.

Comments on the proposed rule adoption must be made in writing to Kathy Thomas, Executive Director, Board of Nurse Examiners for the State of Texas, 333 Guadalupe, Suite 3-460, Austin, Texas 78701.

The proposal of new Chapter 227 is proposed under the authority of the Texas Occupations Code §301.151 and §301.152 which authorizes the Board of Nurse Examiners to adopt, enforce, and repeal rules consistent with its legislative authority under the NPA.

The proposed adoption of the new rules affect the NPA, Texas Occupations Code §301.1605 and §301.1606, as it pertains to pilot programs.

§227.1.Pilot Programs for Innovative Applications to Professional Nursing Education.

The purpose of this rule is to establish the procedures to assure that pilot programs for innovative applications to professional nursing education conducted under Tex. Occ. Code §301.1605 are conducted in a manner consistent with the Board's role of protection of the public and are structured appropriately to evaluate the efficacy and effect on professional nursing students through the innovative application of professional nursing education programs.

§227.2.Initiation of Approval for Innovative Applications to Professional Nursing Education Programs.

(a) Innovative Applications in Professional Nursing Education Programs under this rule may be conducted:

(1) by the Board on its own initiative; or

(2) by a third party either through an application or request for proposal process.

(b) If by application, the application must be submitted on an application form developed by the Board and comply with all conditions set by the Board for applying for a pilot.

(c) If by request for proposal, the submitted proposal must comply with all conditions set out in the request for proposal.

(d) The Board shall have the right to limit the number of pilots that are approved and to refuse to accept an application on the basis that the Board is not accepting new pilot program applications.

(e) If an application or proposal is submitted with incomplete information, the Board may:

(1) reject the application or proposal; or

(2) request the incomplete information be provided.

(f) As a condition of approving an application or proposal, the Board may request changes be made in how the pilot is designed so as to better meet the purpose for pilots conducted under this rule as set out in §227.1.

§227.3.General Selection Criteria.

(a) Applications will be approved based on the innovative application to a professional nursing program's ability to meet the purpose of the rules. Selection criteria shall be based on:

(1) Program quality as determined by the Board;

(2) Description of the pilot program, including the body of knowledge that has influenced the development of the proposed program and the financial support for the proposed program;

(3) Methodology of the pilot program, including research objectives and qualitative and/or quantitative metrics used to evaluate the program;

(4) Pilot program outcomes, including how the success of the program will improve nursing education and enhance nursing practice;

(5) Program innovation; and

(6) Controls to maintain quality education:

(A) Methods shall be incorporated into the plan to ensure that students in innovative programs receive an equivalent, quality education as do students in standard programs (comparative group);

(B) Ongoing evaluation shall be implemented to determine the students' progress in the innovative program; and

(C) If evidence indicates that students are not meeting objectives in innovative programs, a plan for corrective measures to re-mediate must be in place.

(7) Other factors including financial ability to perform the innovative professional nursing education pilot program, State and regional needs and priorities, ability to continue the professional nursing education pilot program after the initial application period, past performance of the applicant, and other related factors as determined by the Board.

(b) Programs shall have a defined length, not to exceed two years. Programs may be extended upon approval of a written application submitted to the Board.

§227.4.Application and Review Process.

(a) The Executive Director shall screen and evaluate the quality of applications and proposals to determine if they meet the criteria of §227.3. The Executive Director shall forward qualified applications and proposals to the Board for evaluation. Eliminated applicants shall be notified by the Board.

(b) The Board may approve the proposal, defer action on the proposal, or deny further consideration of the proposal.

(c) If the proposed pilot receives approval, the nursing education program must submit a written report of outcomes resulting from the innovative educational application within 90 days from completion of the pilot.

(d) If the nursing education program requests that the innovative professional nursing education pilot program become a permanent part of an approved nursing program, a proposal shall be submitted to the Board by the Director of the program after the final evaluation of the project has been submitted and no less then 60 days prior to a regularly scheduled meeting of the Board. The proposal shall include information outlined in Board guidelines.

§227.5.Monitoring and Evaluating Innovative Applications for Professional Nursing Education Programs.

(a) All nursing education pilot programs shall be subject to monitoring and evaluation by the Board to ensure compliance with the criteria of this rule and obtain evidence that research goals are being pursued.

(b) The Board may require that the entity conducting a nursing education pilot program under this rule reimburse the Board for the cost of monitoring and evaluating the nursing education pilot program.

(c) The Board may contract with a third party to perform the monitoring and evaluation of nursing education pilot programs.

(d) The Board may arrange for a nursing education pilot program to directly reimburse a third party for the monitoring and evaluation of a nursing education pilot program.

§227.6.Contract Discussions.

(a) Contracts following the approval of an application or proposal by the Board: the successful applicant must sign a contract issued by the Executive Director and based on the information contained in the application.

(b) Subcontracts with the prior written approval of the Board: the successful applicant may enter into third party contracts and subcontracts to conduct the nursing education pilot program.

(c) Cancellation or suspension of programs: the Board has the right to reject all applications and proposals, and cancel any nursing education pilot program solicitations before a contract is signed. Breach of contract will result in termination of the nursing education pilot program.

(d) Requirements for applications: the full text of the administrative regulations and funding requirements for this nursing education pilot program is contained in the official Request for Proposal available on request from the Board.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 26, 2005.

TRD-200501717

Katherine Thomas

Executive Director

Board of Nurse Examiners

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 305-6823


Part 23. TEXAS REAL ESTATE COMMISSION

Chapter 535. GENERAL PROVISIONS

Subchapter E. REQUIREMENTS FOR LICENSURE

22 TAC §535.51

The Texas Real Estate Commission (TREC) proposes amendments to §535.51, concerning General Requirements. The amendment revises subsection (c)(6) of §535.51 to clarify that an education evaluation must be obtained within one year of the date of application for a license. An applicant must submit a new request for evaluation and pay the $20 fee if an existing evaluation is obtained more than one year before the date of application for a license.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the section 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 section. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the section.

Ms. DeHay also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the amendment will be clarification of the requirements for timeliness of education evaluations. The anticipated economic cost to persons who are required to comply with the proposed amendment is $20 to the extent the person wishes to file an application for licensure with the commission and the applicant has not obtained an education evaluation within one year of the date of the application for licensure.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

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

§535.51.General Requirements.

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

(c) The commission shall return applications to applicants when it has been determined that the application fails to comply with one of the following requirements.

(1) - (5) (No change.)

(6) The applicant has not obtained , within one year from the date the application is filed, an evaluation from the commission showing the applicant meets education requirements or experience requirements have not been satisfied.

(d) - (e) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 27, 2005.

TRD-200501728

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 465-3900


Subchapter G. MANDATORY CONTINUING EDUCATION

22 TAC §535.71

The Texas Real Estate Commission (TREC) proposes amendments to §535.71, concerning Mandatory Continuing Education (MCE): Approval of Providers, Courses and Instructors. The amendment revises subsection (d)(11) of §535.71 which adopts by reference MCE Form 14-1, Individual MCE Partial Credit Request Form. The Commission proposes to revise the verification on the form to parallel existing language in §535.72(b)(1)(E). Under this subsection, an education provider must sign the partial credit request form as evidence that the provider has no reason to believe the amount of credit claimed is inaccurate. In addition, the amendment adds new subsection (hh) to allow accredited colleges and universities, and professional trade associations that are otherwise approved MCE providers, to use experts from other related fields, including those from outside Texas, to teach an MCE elective course without first registering as a commission-approved instructor. At the same time, the MCE elective course must be approved in advance by the Commission before any MCE elective credit would be authorized. Finally, a commission-approved instructor would be responsible for supervising and coordinating the course, and would also be responsible for verifying the attendance of those who request MCE elective credit.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the section 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 section. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the section.

Ms. DeHay also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the amendments will be better educated licensees who are taught relevant real estate related courses by experts in the appropriate field of expertise. There is no anticipated economic cost to persons who are required to comply with the proposed amendment.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

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

§535.71.Mandatory Continuing Education: Approval of Providers, Courses and Instructors.

(a) - (c) (No change.)

(d) Forms. The commission adopts by reference the following forms published and available from the commission, P.O. Box 12188, Austin, Texas, 78711-2188:

(1) - (10) (No change.)

(11) MCE Form 14- 1 [ 0 ], Individual MCE Partial Credit Request Form;

(12) - (13) (No change.)

(e) - (gg) (No change.)

(hh) A provider may use guest speakers who have not been approved as instructors to conduct a registered MCE elective credit course if:

(1) the provider is an accredited college or university or a professional trade association as defined by §535.62(b) of this chapter; and

(2) the course is supervised and coordinated by a commission-approved instructor who is responsible for verifying the attendance of all who request MCE credit.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 27, 2005.

TRD-200501729

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 465-3900


Subchapter L. TERMINATION OF SALESPERSON'S ASSOCIATION WITH SPONSORING BROKER

22 TAC §535.121

The Texas Real Estate Commission (TREC) proposes amendments to §535.121, concerning Inactive License. The amendment revises subsection (b) to clarify that a broker may notify the Commission that sponsorship of a salesperson has ended by either sending the license or a copy of the license to the Commission, or otherwise notifying the Commission that sponsorship has ended. Subsection (b) is revised because brokers are no longer required to display a salesperson's license certificate at the broker's place of business. In addition, due to budget constraints, the Commission no longer provides a license certificate and a duplicate pocket license on initial licensure. The Commission mails one license to the broker which the broker then gives to the licensee to use for identification purposes. The Commission recommends that the broker retain a copy of the license and the information provided with the license so that the broker can notify the Commission regarding sponsorship and renewal matters. Brokers may use an existing TREC form, Notice of Salesperson Sponsorship Termination, to notify the Commission that sponsorship has terminated. This form is available at no charge through the TREC web site at www.trec.state.tx.us.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the section 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 section. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the section.

Ms. DeHay also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the section will be clarification of the requirements for brokers to provide notice when their sponsorship of a salesperson ends. There is no anticipated economic cost to persons who are required to comply with the proposed amendment.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

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

§535.121.Inactive License.

(a) (No change.)

(b) When the sponsorship of a salesperson ends, the broker shall immediately return the salesperson's license or copy thereof [ certificate ] to the commission or otherwise notify the commission that the sponsorship has ended . The commission will no longer consider the broker to sponsor the salesperson upon receipt of the license [ certificate ] or upon receipt of a written request from a new sponsoring broker to sponsor the salesperson, whichever first occurs. If the sponsorship has ended because the broker has terminated the sponsorship, the broker shall immediately so notify the salesperson in writing. If the sponsorship has ended because the salesperson has left the sponsorship, the salesperson shall immediately so notify the broker in writing. If the commission receives a request from a broker to sponsor a salesperson shown in the commission's records as sponsored by another broker, the commission shall notify the former broker of the change in sponsorship [ and request the former broker to return the license certificate to the commission ].

(c) A salesperson's license becomes inactive when a broker returns a salesperson's license to the commission until a new sponsorship form for the salesperson is mailed or delivered to the commission.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 27, 2005.

TRD-200501730

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 465-3900


Subchapter R. REAL ESTATE INSPECTORS

22 TAC §535.217

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Real Estate Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Real Estate Commission (TREC) proposes the repeal of §535.217, concerning Dishonest Conduct as Grounds for Disciplinary Action. The repeal is proposed because the subjects addressed in these sections will be covered in new proposed revisions to §535.220 TREC is simultaneously proposing as part of the Real Estate Inspector Committee recommendations regarding Professional Conduct and Ethics. As the new subsections will comprehensively address the subjects of the proposed repealed rules as well implement the recommendations, repeal of the rules is necessary to avoid confusion and repetition.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the section 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 section. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the section.

Ms. DeHay also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the repeal will be clarification of inspector standards of real estate inspector professional conduct and ethics.

There is no anticipated economic cost to persons who are required to comply with the proposed repeal.

Comments on the proposed repeal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The repeal is proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

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

§535.217.Dishonest Conduct as Grounds for Disciplinary Action.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 27, 2005.

TRD-200501731

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 465-3900


22 TAC §535.220

The Texas Real Estate Commission (TREC) proposes amendments to §535.220, concerning Professional Conduct and Ethics. The Real Estate Inspector Committee has recommended that the Commission revise the real estate inspector professional conduct and ethics provisions to prohibit contingency arrangements in cases where compensation depends on specific findings or on closing or settlement; to prohibit an inspector from paying a fee to any person for referral of inspections; to prohibit an inspector from receiving an undisclosed fee for an inspection from more than one party without the consent of the inspector's client; to prohibit an inspector from accepting a fee for recommending services or products to the inspector's client or other parties with an interest in the inspected property; to prohibit an inspector from conducting repair for a fee of any systems or components of property covered by the Standards of Practice on which the inspector has performed an inspection under an earnest money contract, lease, or exchange of real property within 12 months of the date of the inspection; to require that inspectors perform services and provide opinions based only on areas in which they are educated, trained, or have experience; and to prohibit an inspector from disclosing inspection results or client information without prior approval from the client, except for observed immediate safety hazards to occupants exposed to such hazards.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the section 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 section. There is similarly no impact on local or state employment.

Ms. DeHay also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the amendments will be full transparency and disclosure of the cost of obtaining a real estate inspection in connection with the purchase or sale of real property. While there may be an economic cost to licensed persons, small businesses, micro businesses and large businesses, who currently rely on a business model that encourages payment or acceptance of referral fees, such impact is difficult to calculate as such information is generally only disclosed to the client. Those licensees whose business models are inconsistent with the proposed rules may need to reassess their business models to comply with the proposed amendments. Those licensees will be unable to either pay fees for referrals or accept fees from service providers for recommending services or products to the inspector's client or other parties with an interest in the inspected property.

There is no difference in the economic impact to small business, micro businesses, or large businesses.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

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.

§535.220.Professional Conduct and Ethics.

(a) The responsibility of those persons who engage in the business of performing independent inspections of improvements in real estate transactions imposes integrity beyond that of a person involved in ordinary commerce. Each inspector must maintain a high standard of professionalism, independence , objectivity and fairness while performing inspections in a real estate transaction. Each inspector licensee must also uphold, maintain, and improve the integrity, reputation, and practice of the home inspection profession.

(b) The relationship between an inspector and a client should at a minimum meet the following requirements [ guidelines ].

(1) - (3) (No change.)

(c) The relationship between an inspector and the public should at a minimum meet the following requirements [ guidelines ].

(1) - (3) (No change.)

(d) The relationship of the inspector with another inspector should at a minimum meet the following requirements [ guidelines ].

(1) - (3) (No change.)

(e) An inspector shall comply with the following requirements.

(1) An inspector shall not inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the closing or settlement of a property.

(2) An inspector shall not directly or indirectly pay a fee or other valuable consideration to any person for the referral of inspections.

(3) An inspector shall not receive a fee, compensation or other valuable consideration for an inspection in a real estate transaction from more than one party without the consent of the inspector's client.

(4) An inspector shall not accept a fee or other valuable consideration in a real estate transaction, directly or indirectly, for recommending contractors, services, or products to the inspector's client or other parties having an interest in inspected properties.

(5) An inspector shall not repair, replace, maintain or upgrade systems or components of property covered by the Standards of Practice under this Subchapter on which the inspector has performed an inspection under an earnest money contract, lease, or exchange of real property within 12 months of the date of the inspection.

(6) Inspectors shall perform services and express opinions based only within their areas of education, training, or experience.

(7) Inspectors shall not disclose inspection results or client information without prior approval from the client. Inspectors, at their discretion, may disclose observed immediate safety hazards to occupants exposed to such hazards, when feasible.

(f) [ (e) ] The inspector should make a reasonable attempt to cooperate with other professionals and related tradespersons [ tradesmen ] at all times and in all manners in a method that is conducive to the promotion of professionalism, independence and fairness to himself, his business, and the inspection industry.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 27, 2005.

TRD-200501732

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 465-3900