TITLE 22. EXAMINING BOARDS

PART 3. TEXAS BOARD OF CHIROPRACTIC EXAMINERS

CHAPTER 71. APPLICATIONS AND APPLICANTS

22 TAC §71.15

The Texas Board of Chiropractic Examiners (Board) proposes new §71.15, relating to recognized specialties, to list the specialty in chiropractic radiology approved by the Board at its meeting on February 26, 2009, and to set forth the qualifications and continuing education requirements for this specialty. At this time, the Board is not imposing a fee for specialties.

Mr. Glenn Parker, Executive Director of the Texas Board of Chiropractic Examiners, has determined that for each year of the first five years that this rule will be in effect there will be no additional cost to state or local governments.

Mr. Parker has also determined that for each year of the first five years that this rule will be in effect that the public benefit of this rule will be greater clarity in the qualifications of chiropractic radiologists. Mr. Parker has also determined that there will be no adverse economic effect to individuals, small or micro businesses during the first five years that this rule will be in effect as this rule imposes no burdens.

Comments on the proposed rule and/or a request for a public hearing on the proposed rule may be submitted to Glenn Parker, Executive Director, Texas State Board of Chiropractic Examiners, 333 Guadalupe St., Tower III, Suite 825, Austin, TX 78701, (512) 305-6705 fax, no later than 30 days from the date that this amendment is published in the Texas Register.

The new rule is proposed under Texas Occupations Code §201.152, relating to rules. Section 201.152 authorizes the Board to adopt rules necessary to regulate the practice of chiropractic.

No other statutes, articles, or codes are affected by the proposed rule.

§71.15.Recognized Specialties.

The following chiropractic specialties have been approved by the board: Chiropractic Radiology.

(1) Requirements: Diplomate, American Chiropractic Board of Radiology

(2) Continuing education requirements:

(A) Sixty continuing education credits over a period of five years in the field of diagnostic imaging;

(B) Successfully completing an American Chiropractic Board of Radiology certification examination; or

(C) Another manner recognized and approved by the American Chiropractic Board of Radiology.

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 June 10, 2009.

TRD-200902328

Glenn Parker

Executive Director

Texas Board of Chiropractic Examiners

Earliest possible date of adoption: July 26, 2009

For further information, please call: (512) 305-6901


CHAPTER 76. FORMAL SOAH PROCEEDINGS

22 TAC §76.21

The Texas Board of Chiropractic Examiners (Board) proposes new §76.21, relating to extensions of time, to delegate to the Executive Director the authority to enter into agreements to modify time limits as provided under the Administrative Procedure Act (APA), Texas Government Code §2001.147. This new rule will allow the Board to better coordinate the presentation of proposed decisions in contested cases at the regularly scheduled quarterly meetings of the Board.

Mr. Glenn Parker, Executive Director of the Texas Board of Chiropractic Examiners, has determined that for each year of the first five years that this rule will be in effect there will be no additional cost to state or local governments.

Mr. Parker has also determined that for each year of the first five years that this rule will be in effect that the public benefit of this rule will be better coordination of the timely presentation of proposals for decision to the Board. Mr. Parker has also determined that there will be no adverse economic effect to individuals, small or micro businesses during the first five years that this rule will be in effect. This rule will only affect the scheduling of an existing contested case.

Comments on the proposed rule and/or a request for a public hearing on the proposed rule may be submitted to Glenn Parker, Executive Director, Texas State Board of Chiropractic Examiners, 333 Guadalupe St., Tower III, Suite 825, Austin, TX 78701, (512) 305-6705 fax, no later than 30 days from the date that this amendment is published in the Texas Register.

The new rule is proposed under Texas Occupations Code §201.152, relating to rules, and §201.501, relating to disciplinary powers of the Board. Section 201.152 authorizes the Board to adopt rules necessary to regulate the practice of chiropractic. Section 201.501(d) provides that the Board's disciplinary proceedings are governed by the APA, Texas Government Code Chapter 2001.

No other statutes, articles, or codes are affected by the proposed rule.

§76.21.Extensions of Time.

The Executive Director may enter into an agreement with parties to a contested case to modify time limits as provided under the Administrative Procedure Act, Texas Government Code §2001.147.

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 June 10, 2009.

TRD-200902329

Glenn Parker

Executive Director

Texas Board of Chiropractic Examiners

Earliest possible date of adoption: July 26, 2009

For further information, please call: (512) 305-6901


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 amendments would correct and clarify the requirements for obtaining an education evaluation and submitting an application for licensure. The proposed amendments also include stylistic changes to improve readability and restore to subsection (e) (relettered as subsection (f)) text that was inadvertently omitted at the time of the last amendments to this section.

The proposed amendments also change the fee schedule on the late renewal application forms adopted by reference to reflect an increase in late renewal fees from $45 to $51 for the annual late renewal of a real estate salesperson or broker license for a person whose license has been expired 90 days or less; and late renewal fee from $60 to $68 for the annual late renewal of a real estate salesperson or broker license for a person whose license has been expired more than 90 days but less than one year. The fee increases are concurrently being proposed in amendments to §535.101. The 81st Legislature in the 2010-2011 General Appropriations Act and riders thereto approved budget appropriations for the commission contingent on those appropriations being paid through fee collections.

The proposed amendments also change the fee schedule on the salesperson original application, late renewal application forms, and the broker step down application form adopted by reference to reflect an increase in the fee paid by such applicants to the Real Estate Center from $17.50 to $20. The fee was increased during the 81st Legislative Session, Regular Session, by Senate Bill 862 which amended Texas Occupations Code §1101.152.

Devon V. Bijansky, Assistant 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 or for units of local government as a result of enforcing or administering the amendments. There is no anticipated economic cost to persons who are required to comply with the proposed amendments. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the amendments.

Ms. Bijansky 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 amendments will be increased clarity for applicants regarding the requirements for licensure.

Comments on the proposal may be submitted to Devon V. Bijansky, Assistant 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 ensure 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) A person who wishes to be licensed by the commission must file an application for the license on the form adopted by the commission for that purpose. [Prior to filing the application, the applicant must pay the required fee for evaluation of the education completed by the person and must obtain a written response from the commission showing the applicant meets current education requirements for the license.]

(b) Prior to submitting an application, an applicant must submit a completed education evaluation request form along with the appropriate fee. If the commission determines that the applicant has met current education requirements for the applicable license, it shall notify the applicant that his or her education has been approved. Any such approval shall then remain valid for one year from the date the commission received the education evaluation request. If the commission determines that the applicant has not completed all required education, the applicant has until one year from the date the commission received the request to meet all education requirements and submit an application for licensure or the education evaluation request will expire. If the education requirements change while the education evaluation request is pending, any evaluation issued by the commission after the new requirements take effect will be based on then-current requirements. If the education requirements change after the commission has notified the applicant that his or her education satisfies the commission's requirements but before the applicant submits an application, the applicant must meet any additional education requirements before the application will be processed.

(c) [(b)] A [If the commission develops a system whereby a person may electronically file an application for a license, a ] person who has previously satisfied applicable education requirements and obtained an evaluation from the commission also may apply for a license by accessing the commission's Internet web site, entering the required information on the application form and paying the appropriate fee in accordance with the instructions provided at the site by the commission. If the person is an individual, the person must provide the commission with the person's signature prior to issuance of a license certificate. The person may provide the signature prior to the submission of an electronic application.

(d) [(c)] The commission shall return the application of an applicant who: [ applications to applicants when it has been determined that the application fails to comply with one of the following requirements.]

(1) [The applicant] is not 18 years of age;[.]

(2) [The applicant] does not meet any applicable residency requirement;[.]

(3) is not a citizen of the United States or a lawfully admitted alien; [An incorrect filing fee or no filing fee is received.]

(4) submits the application [The application is submitted] in pencil;[.]

(5) submits an incorrect filing fee or no filing fee; or [The applicant is not a citizen of the United States or a lawfully admitted alien.]

(6) has not satisfied applicable education requirements. [ 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.]

(e) [(d)] An application is considered void and is subject to no further evaluation or processing when one of the following events occurs:

(1) the applicant fails to satisfy an examination requirement within six months from the date the application is filed;

(2) the applicant, having satisfied any examination requirement, fails to submit a required fee within sixty (60) days after the commission makes written request for payment;

(3) the applicant, having satisfied any examination requirement, fails to provide information or documentation within sixty (60) days after the commission makes written request for correct or additional information or documentation;

(4) the applicant fails to provide fingerprints to the Department of Public Safety within six months from the date the application is filed.

(f) [(e)] The commission adopts by reference the following forms published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.state.tx.us [approved by the commission which are as 78711-2188]:

(1) Application for a Real Estate Broker License, TREC Form BL-9;

(2) Application for a Real Estate Broker License by a Corporation, TREC Form BLC-6;

(3) Application for Late Renewal of A Real Estate Broker License, TREC Form BLR-10 [9];

(4) Application for Late Renewal of Real Estate Broker License by a Corporation, TREC Form BLRC-7 [6];

(5) Application for Real Estate Salesperson License, TREC Form SL-13 [12];

(6) Application for Late Renewal of Real Estate Salesperson License, TREC Form SLR-11 [10];

(7) Application for Moral Character Determination, TREC Form MCD-6;

(8) Application for Real Estate Broker License by a Limited Liability Company, TREC Form BLLLC-6;

(9) Application of Currently Licensed Real Estate Broker for Salesperson License, TREC Form BSL-8 [7]; and

(10) Application for Late Renewal of a Real Estate Broker License by a Limited Liability Company, TREC Form BLRLLC-7 [6].

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 June 12, 2009.

TRD-200902386

Devon V. Bijansky

Assistant General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 26, 2009

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


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

22 TAC §535.64, §535.66

The Texas Real Estate Commission (TREC) proposes amendments to §535.64, concerning Accreditation of Schools and Approval of Courses and Instructors, and §535.66, concerning Payment of Annual Fee, Audits, Investigations and Enforcement Actions. The amendments would reduce the period of accreditation of schools from five years to two years in order to better implement the statutory requirement that schools demonstrate a 55% examination passage rate to renew their accreditation. The proposed rules also define how a school's passage rate will be calculated and published by the commission and clarify that the commission will consider a number of factors in determining whether to renew the accreditation of a school with a pass rate below 55%. The amendments would also update the Education Provider Application, form ED 1-0, to form ED 1-1 to reflect a revised fee for a two-year accreditation instead of a 5-year accreditation plus annual fees. Elsewhere in this issue, proposed amendments to §535.101 would change the accreditation fee to $480 for a two-year period, incorporating the previous $400 fee for a 5-year accreditation and the $200 annual fee paid at the beginning of years 2-5 of the accreditation period. The amendments would eliminate the annual fee for schools that are accredited for a 2-year period but retains the annual fee for the duration of any remaining 5-year accreditation periods. Last, the amendments propose to adopt a revised application for instructor approval pursuant to changes to requirements to teach the required legal update and ethics courses, proposed elsewhere in this issue in §535.71.

Devon V. Bijansky, Assistant 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 or for units of local government as a result of enforcing or administering the amendments. There is no anticipated economic cost to persons who are required to comply with the proposed amendments. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the amendments.

Ms. Bijansky 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 amendments will be compliance with the statutory requirement to consider examination pass rate in reaccrediting real estate schools and greater efficiency in regulating these schools.

Comments on the proposal may be submitted to Devon V. Bijansky, Assistant 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 ensure 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) - (c) (No change.)

(d) Approval of application for accreditation. If it determines that the applicant meets the standards for accreditation and has furnished the bond or other acceptable security required by the Act, §1101.302, the commission shall approve the application and provide a written notice of the accreditation to the applicant. Unless surrendered or revoked for cause, the accreditation will be valid for a period of two [five] years.

(e) Subsequent application for accreditation. No more than six months prior to the expiration of its current accreditation, a school may apply for accreditation for another two-year [ five year] period.

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

(4) A school's passage rate will be calculated and published quarterly by dividing the number of that school's graduates, as defined in paragraph (2) of this subsection, who passed the examination on their first attempt in the two-year period ending on the last day of the previous quarter by the total number of the school's graduates who took the exam for the first time in the same period. If a school offers courses toward multiple license types, the exam results for that school will be calculated and posted by license type and aggregated into the school's overall passage rate for that period. The passage rate that will be used to determine whether the accreditation standard has been met is the most current aggregate rate published by the commission as of the date the commission receives the timely application for reaccreditation or, if the accreditation expired before being renewed, the most recent rate published by the commission as of the expiration date of the school's accreditation.

(5) In determining whether a school qualifies for reaccreditation based on its examination passage rate, the commission or a committee established pursuant to Texas Occupations Code §1101.305 shall consider multiple factors, including the separate passage rates for sales, broker, and inspector applicants and trends within the school's passage rate over the course of the two-year accreditation period.

(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) Form ED 1-1 [0], Education Provider Application;

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

(4) Form ED 4-2 [1], Instructor Application - Core, Legal Update and Ethics;

(5) - (7) (No change.)

(h) (No change.)

(i) Standards for instructor approval. The application for commission approval of an instructor must be filed on forms adopted by the commission. To be approved as an instructor, a person must satisfy the commission as to the person's competency in the subject matter to be taught and ability to teach effectively. Each instructor must also possess the following qualifications:

(1) a college degree in the subject area or five years professional experience in the subject area[;] and

[(2)] three years experience in teaching or training; or

(2) [(3)] the equivalent of paragraph [paragraphs] (1) [ and (2)] of this subsection as determined by the commission after due consideration of the applicant's professional experience, research, authorship or other significant endeavors in the subject area.

(j) - (o) (No change.)

§535.66.Payment of Annual Fee, Audits, Investigations and Enforcement Actions.

(a) Payment of annual fee. A school that is within a five-year accreditation period shall pay the fee prescribed by § [Section] 1101.152(a)(11) of Texas Occupations Code, Chapter 1101 (the Act) and by §535.101 of this title (relating to Fees) no later than the anniversary of the date of the school's accreditation. At least 30 days prior to the day the fee is due, the commission shall send a written notice to the school to pay the fee, but the school's obligation to pay the fee is not affected by any failure to receive the notice. There is no annual fee for schools operating within a two-year accreditation period.

(b) - (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 June 12, 2009.

TRD-200902385

Devon V. Bijansky

Assistant General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 26, 2009

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: Approval of Providers, Courses and Instructors. The amendments to §535.71 add the TREC web site address to subsection (d) concerning availability of forms and adopts by reference MCE Form 16-1 which has been revised for use as an instructor application for MCE elective courses only. The amendments to §535.71 also change the requirements for approval of instructors of Mandatory Continuing Education required legal update and ethics courses. Currently instructors of such courses meet minimum requirements by certifying attendance at an instructor training course. The amendments would require persons to have a college degree in the subject area of real estate or five years professional experience in the subject areas of Principles of Real Estate, Law of Agency, and Law of Contracts; and three years experience in teaching or training; or the equivalent of those requirements as determined by the commission.

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 or for units of local government as a result of enforcing or administering the amendments. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the amendments.

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 amendments will be better qualified instructors of required MCE legal courses. There is no anticipated economic cost to persons who are required to comply with the proposed amendments other than the costs of obtaining copies of the forms, which would be available at no charge through the TREC web site.

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 adopt and enforce rules necessary to administer Chapter 1101; and to establish standards of conduct and ethics for its licensees to fulfill the purposes of Chapter 1101 and ensure compliance with Chapter 1101.

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, www.trec.state.tx.us:

(1) - (12) (No change.)

(13) MCE Form 16-1 [0], [MCE] Instructor Application-MCE Elective.

(e) - (p) (No change.)

(q) Instructor certification. Only instructors certified by the commission may teach the required legal courses or develop distance learning courses for the presentation of required legal courses. An instructor must obtain prior commission approval under subsection (r) [(m)] of this section prior to attending an instructor training program. The commission shall issue a written certification to an instructor to teach the applicable required legal course(s) upon the instructor's satisfactory completion of a training program to teach the required legal course(s) that is acceptable to the commission. An instructor may obtain certification to teach either one or both required legal courses. A certified legal course instructor may teach the required legal courses for any approved provider after the instructor has attended an instructor training program. A certified legal course instructor may not independently conduct a required legal course unless the instructor has also obtained approval as a provider. An instructor must obtain written certification from the commission prior to teaching the required legal courses and prior to representing to any provider or other party that he or she is certified or may be certified as a legal course instructor. An instructor's certification to teach a required legal course expires on December 31 of every odd-numbered year. An instructor may obtain recertification by attending a new instructor training program.

(r) Standards for approval of instructors of required legal courses. Prior to attending an instructor training course, a person must obtain commission approval to be an instructor using Form ED 4-2, Instructor Application - Core, Legal Update, and Ethics, adopted by the commission. To be approved as an instructor of a required legal update or ethics course, a person must possess the following qualifications:

(1) a college degree in the subject area of Real Estate, or five years professional experience in the subject areas of Principles of Real Estate, Law of Agency, and Law of Contracts; and

(2) three years experience in teaching or training; or

(3) the equivalent of paragraphs (1) and (2) of this subsection as determined by the commission after due consideration of the applicant's professional experience, research, authorship or other significant endeavors in the subject area.

(s) Approval of instructor. If the commission determines that the applicant meets the standards for instructor approval, the commission shall approve the application and provide a written notice of the approval to the applicant. Unless surrendered or revoked for cause, the approval will be valid for a period of five years.

(t) [(r)] Elective credit courses. To be approved to offer a course for MCE elective credit, the provider must demonstrate that the course subject matter is appropriate for a continuing education course for real estate licensees and that the information provided in the course will be current and accurate by submitting a brief statement that describes the objective of the course and explains how the subject matter is related to activities for which a real estate license is required, including but not limited to relevant issues in the real estate market or topics which increase or support the licensee's development of skill and competence.

(u) [(s)] Elective course application. A provider applicant must submit an MCE Form 3A-3, MCE Course Application and receive written acknowledgment from the commission prior to offering an MCE elective course. Prior to advertising or offering a course offered by another provider, the subsequent provider must submit an MCE Form 3B-3, Course Application Supplement and receive written acknowledgment from the commission.

(v) [(t)] Legal update and legal ethics course application. A provider must submit an MCE form 3B-3, Course Application Supplement and receive written acknowledgment from the commission prior to offering a required legal update or required legal ethics course.

(w) [(u)] Core courses for elective credit. Courses approved by the commission for core real estate course credit provided in the Act, §1101.356 and §1101.358, may be accepted for satisfying MCE elective credit course requirements provided the student files a course completion certificate with the commission.

(x) [(v)] Acceptable combined courses. An elective credit course offered by a provider to satisfy all or part of the nine hours of other than legal topics required by the Act, §1101.455, may be offered with the required legal update course or required legal ethics course.

(y) [(w)] Required legal courses for real estate related courses. MCE legal update and legal ethics courses may be accepted by the commission as real estate related courses for satisfying the education requirements of §1101.356 and §1101.358, of the Act.

(z) [(x)] Correspondence courses for elective credit. An MCE provider may register an MCE elective course by correspondence with the commission if the course is subject to the following conditions:

(1) the course must be offered by a college or university accredited by a regional accrediting association, such as the Commission on Colleges of the Southern Association of Colleges and Schools, or its equivalent, which offers correspondence courses, whether credit or noncredit, in other disciplines;

(2) the content of the course must satisfy the requirements of the Act, §1101.455, and these sections; and

(3) the course does not include a request for required legal course credit.

(aa) [(y)] Alternative delivery method courses for elective credit. An MCE provider may register an MCE elective course by alternative delivery method with the commission if the course is subject to the following conditions:

(1) the content of the course must satisfy the requirements of the Act, §1101.455, and these sections;

(2) the course does not include a request for required legal course credit; and

(3) every provider offering a registered course under this subsection shall:

(A) ensure that a qualified person is available to answer students' questions or provide assistance as necessary;

(B) provide that procedures are in place to ensure that the student who completes the work is the student who is enrolled in the course; and

(C) certify students as successfully completing the course only if the student:

(i) has completed all instructional modules; and

(ii) has attended any hours of live instruction and/or testing required for a given course.

(bb) [(z)] Correspondence courses for required legal credit. The commission may approve a provider to offer an MCE required legal ethics course by correspondence subject to the following conditions:

(1) the course must be offered by a college or university accredited by a regional accrediting association, such as the Commission on Colleges of the Southern Association of Colleges and Schools, or its equivalent, which offers correspondence courses, whether credit or noncredit, in other disciplines;

(2) the content of the course must satisfy the requirements of the Act, §1101.455 and these sections, and must be substantially similar to the legal courses disseminated and updated by the Commission;

(3) students receiving MCE credit for the course must pass either:

(A) a proctored final examination administered under controlled conditions to positively identified students, at a location and by an official approved by the commission and graded by the instructor or, if the examination is being graded mechanically or by use of a computer, by the provider, using answer keys approved by the instructor or provider; or

(B) an examination by use of a computer under conditions that satisfy the commission that the examinee is the same person who seeks MCE credit; and

(4) written course work required of students must be graded by an approved instructor or the provider's coordinator or director, who is available to answer students' questions or provide assistance as necessary, using answer keys approved by the instructor or provider.

(cc) [(aa)] Each required legal course offered by correspondence must contain the following:

(1) course description;

(2) learning objectives;

(3) evaluation techniques;

(4) lessons;

(5) learning activities;

(6) final examination;

(7) source materials disseminated by the Commission including all updates; and

(8) instructor grading guidelines, including acceptable answers for lessons, assessments and examinations.

(dd) [(bb)] Alternative delivery method courses for required legal credit. The commission may accept required legal courses offered by alternative delivery method subject to the following conditions.

(1) The content of the course must satisfy the requirements of the Act, §1101.455 and these sections, and must be substantially similar to the legal courses disseminated and updated by the Commission.

(2) Every course accepted under this subsection shall teach to mastery. Teaching to mastery means that the course must, at a minimum:

(A) divide the material into major units of instruction that follows the outline of the applicable required legal course for delivery on a computer or other approved interactive audio or audiovisual programs;

(B) specify the learning objectives for each unit of instruction;

(C) specify an objective, quantitative criterion for mastery used for each learning objective;

(D) implement a structured learning method by which each student is able to attain each learning objective;

(E) provide a means of diagnostic assessment of each student's performance on an ongoing basis during each unit of instruction, measuring what each student has learned and not learned at regular intervals throughout each unit of instruction;

(F) provide a means of tailoring the instruction to the needs of each student as identified in subparagraph (D) of this paragraph. The process of tailoring the instruction shall ensure that each student receives adequate remediation for specific deficiencies identified by the diagnostic assessment;

(G) continue the appropriate remediation on an individualized basis until the student demonstrates achievement of mastery of each unit; and

(H) require that the student demonstrate mastery of all material covered by the learning objectives for the module before the module is completed.

(3) The commission must approve the method by which each of the above elements of mastery in paragraph (2)(A) - (H) of this subsection is accomplished.

(4) The rationale for the education processes implemented in the course must be based on sound instructional strategies which have been systematically designed and proven effective through educational research and development. The basis and rationale for any proposed instructional approach must be specified in the application for approval. Programs which consist primarily of text material will not be approved.

(5) An approved instructor or the provider's coordinator/director shall grade the written course work.

(6) Every provider offering an approved course under this subsection shall:

(A) ensure that a qualified person is available to answer students' questions or provide assistance as necessary;

(B) satisfy the commission that procedures are in place to ensure that the student who completes the work is the student who is enrolled in the course;

(C) certify students as successfully completing the course only if the student;

(i) has completed all instructional modules required to demonstrate mastery of the material;

(ii) has attended any hours of live instruction and/or testing required for a given course; and

(iii) has passed either:

(I) a proctored final examination administered under controlled conditions to positively identified students, at a location and by an official approved by the commission and graded by the instructor or, if the examination is being graded mechanically or by use of a computer, by the provider, using answer keys approved by the instructor or provider; or

(II) an examination by use of a computer under conditions that satisfy the commission that the examinee is the same person who seeks MCE credit; and

(D) provide the students with the same materials given to students who attend the same course by live instruction.

(ee) [(cc)] Supervised Video Instruction for elective course credit. A provider may register a course under subsection (u) [(s)] of this section to be taught by supervised video instruction if:

(1) the provider complies with §535.72 of this chapter when offering and advertising the course and when completing rosters and retaining records;

(2) a proctor is present during the time the video is shown; and

(3) the provider discloses in any advertisement for the course that the instruction will be by supervised video instruction

(ff) [(dd)] Supervised Video Instruction for required legal course credit. A provider may register a course under subsection (o) of this section to be taught by supervised video instruction if the provider:

(1) complies with subsection (ee) [(cc)](1) - (3) of this section;

(2) ensures that a certified instructor is available to answer students' questions or provide assistance as necessary; and

(3) ensures that students receiving MCE credit for the course passed a proctored final examination administered under controlled conditions to positively identified students, at a location and by an official approved by the commission and graded by the instructor or, if the examination is being graded mechanically or by use of a computer, by the provider, using answer keys approved by the instructor or provider.

(gg) [(ee)] An applicant must submit an MCE Form 3B-3, MCE Course Application Supplement to seek approval to offer an MCE distance learning required legal course and receive written acknowledgment from the commission prior to offering the course. Distance learning legal courses may be offered on or after July 1, 2005.

(hh) [(ff)] For a distance learning course, an online course will not be considered complete until credit is awarded by the provider. The provider shall award the student credit for the course no earlier than 24 hours after the student starts the course and after the student completes the course requirements for credit. The provider shall report the awarding of credit to the commission either by filing a completed MCE Form 9-8, Alternative Instructional Methods Reporting Form, signed by the student, or submitting the information contained in MCE Form 9-8 by electronic means acceptable to the commission.

(ii) [(gg)] A provider may use as guest speakers persons who have not been approved as instructors, provided that no more than a total of 50% of the course is taught by the unapproved persons for a registered MCE elective credit course. The commission-registered instructor must remain in the classroom during the guest speaker's presentation.

(jj) [(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 June 12, 2009.

TRD-200902384

Loretta R. DeHay

Interim Administrator and General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 26, 2009

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


SUBCHAPTER J. FEES

22 TAC §535.101

The Texas Real Estate Commission (TREC) proposes amendments to §535.101, concerning Fees. The amendments would increase the salesperson and broker annual renewal fees from $30 to $34; late renewal fee from $45 to $51 for the annual late renewal of a real estate salesperson or broker license for a person whose license has been expired 90 days or less; and late renewal fee from $60 to $68 for the annual late renewal of a real estate salesperson or broker license for a person whose license has been expired more than 90 days but less than one year.

The justification for the amendments is to generate sufficient revenue to fund appropriations by the 81st Legislature (2009).

In addition, the amendments would change the accreditation fee for education programs from $400 to $480 and limit the $200 renewal fee for education programs to those who are subject to a 5-year accreditation under the rules in place before they were amended to better implement the statutory requirement that schools demonstrate a 55% examination passage rate to renew their accreditation. The fees are adjusted for a two-year accreditation instead of a 5-year accreditation plus annual fees. Amendments to §535.64 and §535.66 to set the accreditation period to two years are concurrently being proposed and are published elsewhere in this issue of the Texas Register.

The 81st Legislature in the 2010-2011 General Appropriations Act and riders thereto approved budget appropriations for the commission contingent on those appropriations being paid through fee collections. The amendments would permit TREC to raise the necessary revenue to offset the additional costs incurred by the commission to implement new programs required by laws passed by the 81st Legislature.

Karen Alexander, Staff Services Director, has determined that for the first five-year period subsection (b)(2), (4), (15), and (16) are in effect there will be fiscal implications for the state, but not to units of local government as a result of enforcing or administering the amendments. The amendments would increase the salesperson and broker annual renewal fees from $30 to $34; late renewal fee from $45 to $51 for the annual late renewal of a real estate salesperson or broker license for a person whose license has been expired 90 days or less; and late renewal fee from $60 to $68 for the annual late renewal of a real estate salesperson or broker license for a person whose license has been expired more than 90 days but less than one year.

Approximately 60,000 licensees and 8,000 late applicants may be required to pay the increased fees in Fiscal Year 2010 for a total estimated revenue of $569,200. For Fiscal Year 2011, approximately 60,000 licensees and 8,000 late applicants are estimated to be required to pay the fees for total estimated revenue of $569,200. For each of the three years after (2012-2014), approximately 60,000 applicants, and 8,000 late applicants are estimated to be required to pay the fees for a total estimated revenue of $569,200 per year.

Ms. Alexander has determined that there is no anticipated impact on local or state employment as a result of implementing the amendments. However, there is an anticipated impact on small businesses and micro-businesses. The Commission has approximately 150,000 real estate brokers and salespersons licensed in Texas. It is estimated that nearly all of these entities are small businesses and many of them are micro-businesses. The projected economic impact of this rule amendment on these small businesses will be slightly negative due to the increased renewal and late renewal fee under §2006.002, Texas Government Code, an agency is required to consider alternative regulatory methods only if the alternative methods would be consistent with the health, safety and environmental and economic welfare of the state. TREC has developed this proposed rule in accordance with a legislative mandate under contingent revenue riders for TREC appropriations under Senate Bill 1, 81st Legislature, Regular Session (2009). Consequently, any variance from the legislative mandate would not be consistent with the health, safety, and environmental and economic welfare of the state, and no alternative regulatory methods have been considered.

Ms. Alexander also has determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of enforcing the amendments is that the agency will raise sufficient revenue to fund the items requested by the agency in its Legislative Appropriations request and granted under Senate Bill 1, 81st Legislature, Regular Session, 2009.

Comments on the proposal may be submitted to Devon V. Bijansky, Assistant 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 ensure 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.

§535.101.Fees.

(a) (No change.)

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

(1) (No change.)

(2) a fee of $34 [$30] for annual renewal of a real estate broker license;

(3) (No change.)

(4) a fee of $34 [$30] for annual renewal of a real estate salesperson license;

(5) - (8) (No change.)

(9) a fee of $480 [$400] for filing an application for accreditation of an education program under Texas Occupations Code (the Act), §1101.301;

(10) a fee of $200 a year for operation of a real estate education program under the Act, §1101.301, if the school is operating under a five-year accreditation;

(11) - (14) (No change.)

(15) a fee of $51 [$45] for the annual late renewal of a real estate salesperson or broker license for a person whose license has been expired 90 days or less;

(16) a fee of $68 [$60] for the annual late renewal of a real estate salesperson or broker license for a person whose license has been expired more than 90 days but less than one year;

(17) - (18) (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 June 12, 2009.

TRD-200902383

Devon V. Bijansky

Assistant General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 26, 2009

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


SUBCHAPTER R. REAL ESTATE INSPECTORS

22 TAC §535.212

The Texas Real Estate Commission (TREC) proposes an amendment to §535.212, concerning Education and Experience Requirements for an Inspector License. The amendment updates a reference to the recently revised standard inspection report form, which was not changed when the REI 7A-0 form was replaced by the REI 7A-1, effective February 1, 2009, and adds a reference to form REI 7-2, concurrently being proposed as an amendment to 22 TAC §535.223.

Devon V. Bijansky, Assistant General Counsel, has determined that for the first five-year period the amendment is in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the amendment. There is no anticipated economic cost to persons who are required to comply with the proposed amendment. There is no anticipated impact on small businesses, micro-businesses, or local or state employment as a result of implementing the amendment.

Ms. Bijansky 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 amendment is to ensure that education providers are offering training, and persons pursuing licensure as inspectors are properly trained, in the use of the current inspection report form.

Comments on the proposed amendment may be submitted to Devon V. Bijansky, Assistant 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 ensure 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 amendment.

§535.212.Education and Experience Requirements for an Inspector License.

(a) Education requirements.

(1) - (4) (No change.)

(5) The following subjects shall be considered core real estate inspection courses for purposes of additional education requirements under subsection (b)(1)(B) of this section.

(A) - (I) (No change.)

(J) Standard Report Form/Report Writing, which shall include the following topics:

(i) required use of report form REI 7A- 1 [0] or REI 7-2;

(ii) - (vi) (No change.)

(K) (No change.)

(6) - (9) (No change.)

(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 June 12, 2009.

TRD-200902381

Devon V. Bijansky

Assistant General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 26, 2009

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


22 TAC §535.223

The Texas Real Estate Commission (TREC) proposes amendments to §535.223, concerning standard inspection report forms. The amendments would adopt by reference a revised standard inspection report form. TREC has a statutory duty to adopt standard inspection report forms and to adopt rules requiring licensed inspectors to use the report forms under Senate Bill Number 1100, 75th Legislature (1997). To create a grace period during which inspectors may use either the new form, REI 7-2, or the old form, REI 7A-1, the rule will require inspectors to use either the 7-2 form or the 7A-1 form for inspections of one-to-four family residential properties. The amended form corrects the rule reference on the first page of the form, modifies the header on pages 3-6 to indicate that "D=Deficient," and makes minor stylistic revisions to the form.

The proposed amendments have been recommended by the Texas Real Estate Inspector Committee, an advisory committee of six professional inspectors and three public members appointed by TREC, resulting from revisions to the inspector standards of practice that became effective on February 1, 2009.

Devon V. Bijansky, Assistant 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 or for units of local government as a result of enforcing or administering the amendments. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the amendments.

Ms. Bijansky 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 amendments will be increased clarity for consumers regarding the inspection process.

Comments on the proposal may be submitted to Devon V. Bijansky, Assistant 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 ensure 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.

§535.223.Standard Inspection Report Form.

The Texas Real Estate Commission adopts by reference Property Inspection Report Form REI 7A-1, approved by the Commission in 2008, and Property Inspection Report Form REI 7-2, approved by the Commission in 2009, for use in reporting inspection results. These documents are [This document is] published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

(1) Except as provided by this section, inspections performed for a prospective buyer or prospective seller of one-to-four family residential property shall be reported on Form REI 7A-1 or Form REI 7-2 adopted by the Commission ("the standard form").

(2) - (6) (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 June 12, 2009.

TRD-200902379

Devon V. Bijansky

Assistant General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 26, 2009

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