TITLE 22.EXAMINING BOARDS

Part 23. TEXAS REAL ESTATE COMMISSION

Chapter 535. GENERAL PROVISIONS

Subchapter F. EDUCATION, EXPERIENCE, EDUCATIONAL PROGRAMS, TIME PERIODS AND TYPE OF LICENSE

22 TAC §535.64

The Texas Real Estate Commission (TREC) proposes amendments to §535.64, concerning Accreditation of Schools and Approval of Courses and Instructors. Section 535.64(g)(7) adopts by reference Form Ed 7-1 Instructor Manual Guidelines for Core Real Estate and Real Estate Related Courses. The amendments add to the rule a cite to the TREC's web site to download the form, and change the cites in the form to the relevant statutory provisions of Chapter 1101, Texas Occupations Code. The revisions also update the Instructor Manual for style and clarity and remove obsolete sections.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended section. There are no anticipated fiscal implications for units of local government. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the amended section.

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended section will be clarification of the underlying statutory authority for the rule and increased readability. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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 purposed 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.

§535.64.Accreditation of Schools and Approval of Courses and Instructors.

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

(g) Forms. The Texas Real Estate Commission adopts by reference the following forms approved by the commission. These documents are published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 , www.trec.state.tx.us .

(1) - (6) (No change.)

(7) Form ED 7-1 [ 7-0 ], Instructor Manual Guidelines.

(h) - (o) (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 February 15, 2006.

TRD-200600814

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2006

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


Subchapter I. LICENSES

22 TAC §535.91, §535.92

The Texas Real Estate Commission (TREC) proposes amendments to §535.91, concerning Renewal Applications and §535.92, concerning Renewal: Time for Filing; Satisfaction of Mandatory Continuing Education Requirements. The proposed amendments to §535.91 change the name of the "renewal application form" to "renewal notice" to make it clear that the commission will be notifying real estate salespersons and brokers of renewal requirements with a notice rather than with a form. The amendments to §535.91 also delete the subsection that adopts by reference the renewal application form as the form will no longer be used to renew a license. Presently, licensees return the form to the commission with the required fee to renew a license. The commission will notify licensees with a postcard that contains substantially the same information that is currently on the renewal form.

Under the proposed amendments to §535.92 all licensees will be required to renew online at the commission's web site with an appropriate payment method. All information required of the licensee to renew the license may be entered online. Currently, licensees have the option of renewing online or by mail. If a licensee is unable to renew online, they can obtain a renewal form by contacting the commission and a form will be mailed to them or they will be given directions on how to download a form from the TREC's web site.

The commission will continue to notify licensees of the renewal requirements three months before the expiration of the current license. The commission will also continue to notify licensees subject to Mandatory Continuing Education (MCE) of the hours the licensee has completed and the hours that are required for an active renewal.

The commission is mandating online renewals to save costs associated with mailing renewal notices and to meet statewide performance measures associated with online renewals required of all similarly situated licensing agencies.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the proposed amendments to the sections are in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended sections. There are no anticipated fiscal implications for units of local government. There will be no impact on small businesses, micro businesses or local or state employment as a result of implementing the amended sections.

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be an easier renewal process for licensees and decreased costs to the agency associated with mailing renewal notices. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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 purposed 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.

§535.91.Renewal Notices [ Applications ].

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

(c) The commission shall mail a renewal notice [ application form ] for an active broker or an inactive licensee to the last known permanent mailing address of the broker or licensee as shown in the commission's computerized records. The commission shall mail a renewal notice [ application form ] for an active salesperson to the permanent mailing address of the salesperson's sponsoring broker. The commission shall mail the notice [ form ] three months before the expiration of the current license. Each licensee shall furnish a permanent mailing address to the commission and report all subsequent address changes within 10 days after a change of address. If a licensee fails to provide a permanent mailing address, the last known mailing address provided by the licensee will be deemed to be the licensee's permanent mailing address. [ Applications must be made on the current renewal application form approved by the commission accompanied by the required fee. ] Failure to receive a license renewal notice [ application form ] does not relieve a licensee of the obligation to renew [ obtain the appropriate form and to apply for renewal of ] a license. A licensee shall provide information requested by the commission in connection with an application to renew a license within 30 days after the commission requests the information. Failure to provide information requested by the commission in connection with a renewal application within the required time is grounds for disciplinary action under the Act, §1101.656.

[(d) The Texas Real Estate Commission adopts by reference Renewal Application Forms SR 1-0 and BR 1-0, approved by the commission in 2004. These forms are published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.]

§535.92.Renewal: Time for Filing; Satisfaction of Mandatory Continuing Education Requirements.

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

(c) The commission shall advise each licensee of the time period for filing a renewal application and paying the renewal fee by mailing an appropriate notice to the licensee as prescribed by §535.91 of this chapter (relating to Renewal Notices [ Applications ]). If the licensee is subject to mandatory continuing education (MCE) requirements, the notice must also contain the number of MCE hours for which the licensee has been given credit and the number of additional MCE hours required for renewal of the license. The commission shall have no obligation to so notify an inactive licensee who has failed to furnish the commission with the person's permanent mailing address or a corporation, limited liability company or partnership that has failed to designate an officer, manager or partner who meets the requirements of the Real Estate License Act (the Act).

(d) A licensee shall [ may ] renew an unexpired license by accessing the commission's Internet web site, entering the required information on the renewal application form, satisfying applicable education requirements and paying the appropriate fee in accordance with the instructions provided at the site by the commission.

(e) - (k) (No change.)

(l) If a licensee is unable to renew a license on the commission's Internet website, the licensee may renew an unexpired license by obtaining a renewal application form from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 and complying with the requirements of this section and §535.91 of this chapter.

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 February 15, 2006.

TRD-200600815

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2006

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


Subchapter N. SUSPENSION AND REVOCATION OF LICENSURE

22 TAC §535.144

The Texas Real Estate Commission (TREC) proposes amendments to §535.144, concerning When Acquiring or Disposing of Own Property. The amendments are proposed to implement revisions to Texas Occupations Code Chapter 1101 enacted during the 79th Legislative Session, Regular Session, by Senate Bill 810 (2005).

In part, Senate Bill 810 revised §1101.652(a)(3), Texas Occupations Code, to authorize the commission to take disciplinary action against a licensee if the licensee engages in misrepresentation or fraud when selling, buying, trading or leasing real property in the name of the license holder's spouse or a person related to the license holder within the first degree by consanguinity. Prior to September 1, 2005, §1101.652(a)(3) applied only when a license holder engaged in misrepresentation or fraud when acting in his or her own name. Section 535.144, which is based on §1101.652(a)(3), requires a licensee to disclose in writing that he or she is a real estate salesperson or broker acting on his or her own behalf. The amendment to §535.144 would define "first degree of consanguinity" to mean a child or parent of the licensee; and would require a similar written disclosure when a licensee buys, sells, trades or leases real property in the name of the licensee's spouse, child or parent.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended section. There are no anticipated fiscal implications for units of local government. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the amended section.

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended section will be clarity in the implementation of the statutory provisions regarding the commission's authority to take disciplinary action against a licensee who fails to disclose his or her license status under limited circumstances. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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 and Senate Bill 810, 79th Legislature, Regular Session (2005). No other statute, code or article is affected by the proposed amendments.

§535.144.When Acquiring or Disposing of Own Property or Property of Spouse, Parent or Child .

(a) For purposes of §1101.652(a)(3), Texas Occupations Code, "a person related to the license holder within the first degree by consanguinity" means a license holder's parent or child.

(b) A licensee, when engaging in a real estate transaction on his or her own behalf, [ or ] on behalf of a business entity in which the licensee is more than a 10% owner, or on behalf of the licensee's spouse, parent, or child, is obligated to inform any person with whom the licensee deals that he or she is a licensed real estate broker or salesperson acting on his or her own behalf or on behalf of the licensee's spouse, parent, or child either by disclosure in any contract of sale or rental agreement, or by disclosure in any other writing given prior to entering into any contract of sales or rental agreement. A licensee shall not use the licensee's expertise to the disadvantage of a person with whom the licensee deals.

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 February 15, 2006.

TRD-200600816

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2006

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


Subchapter R. REAL ESTATE INSPECTORS

22 TAC §535.210

The Texas Real Estate Commission (TREC) proposes an amendment to §535.210, concerning Fees. The amendment is proposed to implement revisions to Texas Occupations Code Chapter 1102 enacted during the 79th Legislative Session, Regular Session (2005), by Senate Bill 810. Chapter 1102 was revised to required licensing and renewal of corporations and limited liability companies that engage in professional home inspecting for buyers and sellers in Texas.

The proposed amendment to §535.210 adds a $5 fee to be charged to corporations and limited liability companies licensed as Texas professional inspectors for the annual renewal of the license. Given that the home inspector license renewal period will change to a 2-year cycle in April, 2006, the total amount due for each renewal would be $10 to parallel an existing $10 application fee for those business entity licenses.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended section. There are no anticipated fiscal implications for units of local government. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the amended section except to the extent that a licensed corporation or limited liability company that engages in professional home inspecting for buyers and sellers in Texas would be required to pay the $10 fee every two years to renew its professional inspector license.

Ms. DeHay also has determined that for each year of the first five years the amendment as proposed is in effect the public benefit anticipated as a result of enforcing the amended section will be clarity in the implementation of the statutory requirements for licensing and renewal, and to assist interested person in the application process. The anticipated economic cost to persons who are required to comply with the proposed amendment is the $10 fee every two years to renew a license.

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 amendment 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 and Senate Bill 810, 79th Legislature, Regular Session. No other statute, code or article is affected by the proposed amendment.

§535.210.Fees.

(a) The commission shall charge and collect the following fees:

(1) - (9) (No change.)

(10) a fee of $5 for the annual renewal of the license of a professional inspector by a corporation or limited liability company;

(11) [ (10) ] a fee of $20 for requesting issuance of a license because of a change of name, return to active status, or change in sponsoring professional inspector; and

(12) [ (11) ] a fee of $100 for deposit in the real estate inspection recovery fund upon an applicant's successful completion of an examination. This fee does not apply to application for a license as a professional inspector by a corporation or limited liability company.

(b) (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 February 15, 2006.

TRD-200600817

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2006

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


Chapter 539. PROVISIONS OF THE RESIDENTIAL SERVICE COMPANY ACT

Subchapter H. MISCELLANEOUS FORMS

22 TAC §539.71

The Texas Real Estate Commission (TREC) proposes amendments to §539.71, concerning Miscellaneous Forms. The amendment changes the cites in Form RSC 2-3, Residential Service Company Bond to the relevant statutory provisions in Chapter 1303, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1303, a nonsubstantive codification of The Residential Service Company Act, and repealed Article 6573b, Texas Civil Statutes effective June 1, 2003.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended section. There are no anticipated fiscal implications for units of local government. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the amended section.

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended section will be clarification of the underlying statutory authority for the rule. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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, §1303.051, which authorizes the Texas Real Estate Commission to adopt rules necessary to implement Chapter 1303.

The statute affected by this proposal is Texas Occupations Code, Chapter 1303. No other statute, code or article is affected by the proposed amendments.

§539.71.Miscellaneous Forms.

The Texas Real Estate Commission adopts by reference the following forms approved by the commission [ in 2001 ]. These forms are published and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 , www.trec.state.tx.us .

(1) Residential Service Company Bond, Form RSC 2-3 [ 2-2 ]; and

(2) Application to Approve Evidence of Coverage/Schedule of Charges, Form RSC 3-1.

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 February 15, 2006.

TRD-200600818

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: April 2, 2006

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


Part 29. TEXAS BOARD OF PROFESSIONAL LAND SURVEYING

Chapter 661. GENERAL RULES OF PROCEDURES AND PRACTICES

Subchapter D. APPLICATIONS, EXAMINATIONS, AND LICENSING

22 TAC §661.55

The Texas Board of Professional Land Surveying (TBPLS) proposes a new rule §661.55, concerning Surveying Firms. This rule will establish the responsibility of firms offering land surveying services. It is proposed under authority of the Professional Land Surveying Practices Act, Section 1071.151 related to rule making, Section 1071.251 relating to registration, license or certification required, Section 1071.352 regarding surveying by a business entity and Section 1071.353 relating to Practice Under Assumed Name.

The new rule will clarify Section 1071.352 and 1071.353 regarding the responsibility of firms offering land surveying services.

Sandy Smith, Executive Director, has determined that for the first five year period the rule is in effect there will be no fiscal impact to state or local government as a result of enforcing or administering this new rule.

Ms. Smith has also determined that for each year of the first five years the rule is in effect the public will benefit from the rule because it will clarify the responsibility for firms offering land surveying services.

There will be no effect on small or micro businesses that are in compliance with the Board's Act and Rules. There are no anticipated costs to those who are required to comply with the rule as proposed.

Comments on the new rule may be submitted in writing to Sandy Smith, Executive Director, Texas Board of Professional Land Surveying, 12100 Park 35 Circle, Building A - Suite 156, Austin, TX 78753. Comments may also be faxed to Ms. Smith at the Board at (512) 239-5253 or may be sent electronically to sandy.smith@mail.capnet.state.tx.us. All requests for a public hearing on the proposed section submitted under the Administrative Procedure Act must be received by the Executive Director not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register .

The new rule is proposed pursuant to Section 1071.151, Title 6, Occupations Code, Subtitle C, which authorizes the Board to adopt and enforce reasonable and necessary rules to perform its duties.

The new rule implements the Texas Administrative Code, Title 22, Part 29, General Rules of Procedures and Practices.

§661.55.Surveying Firms.

(a) An association, partnership, or corporation offering surveying services shall file with the Board, on a form furnished by the Board:

(1) the business and legal names and addresses of the association, partnership, or corporation;

(2) the name of the owner or manager of the association, partnership, or corporation; and

(3) the names and license numbers of all persons registered or licensed under this Act employed by the association, partnership, or corporation.

(b) A person registered or licensed under the Act shall ensure that any association, partnership, or corporation employing them complies with the filing requirements set forth in subsection (a) of this section.

(c) A person registered or licensed under the Act and employed by an association, partnership, or corporation shall notify the Board in writing within five (5) business days prior to leaving employment or no later than 24 hours after leaving employment.

(d) The Board may refer to the Texas Attorney General for appropriate action any person registered or licensed under the Act or any association, partnership, or corporation offering surveying services that fails to comply with this section.

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 February 17, 2006.

TRD-200600860

Sandy Smith

Executive Director

Texas Board of Professional Land Surveying

Earliest possible date of adoption: April 2, 2006

For further information, please call: (512) 452-9427