Proposed Sections
Before an agency may permanently adopt a new or amended section, or repeal an 
existing section, a proposal detailing the action must be published in the Texas 
Register at least 30 days before any action may be taken. The 30-day time period 
gives interested persons an opportunity to review and make oral or written 
comments on the section. Also, in the case of substantive sections, a public 
hearing must be granted if requested by at least 25 persons, a governmental 
subdivision or agency, or an association having at least 25 members.
Symbology in proposed amendments. New language added to an existing section is 
indicated by the use of bold text. [Brackets] indicate deletion of existing 
material within a section.
TITLE 16. ECONOMIC REGULATION
Part IV. Texas Department of Licensing and Regulation
Chapter 67. Auctioneers
16 TAC sec.sec.67.1, 67.20, 67.21, 67.40, 67.100-67.102
The Texas Department of Licensing and Regulation proposes amendments to 
sec.sec.67.1, 67.20, 67.40, and 67.100; and new sec.sec.67.21, 67.101, and 
67.102, concerning auctioneers. The proposed rules are a revision of the 
existing rules by amending and adding to simplify, clarify, and organize the 
rules to conform to the Auctioneer Act.
Rudy Garcia, acting division director, inspections and investigations, has 
determined that for the first five-year period the sections are in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the sections.
Mr. Garcia also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be a simplification and clarification of existing rules. There 
will be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the sections as proposed.
Comments on the proposal may be submitted to Rudy Garcia, Acting Division 
Director, Inspections and Investigations, 920 Colorado, P.O. Box 12157, Austin, 
Texas 78711, (512) 463-2907.
The amendments and new sections are proposed under Texas Civil Statutes, 
Articles 8700 and 9100, which provide the Texas Department of Licensing and 
Regulation with the authority to regulate auctioneers.
sec.67.1. Authority.  These rules are promulgated under the authority of 
[Auctions and Auctioneering-Licensing and Regulation,] Texas Civil Statutes, 
Article 8700, and Texas Civil Statutes, Article 9100.
sec.67.20. License Requirements-General.
[(a) Any person who acts as an auction company or as a bid caller, with or 
without receiving or collecting a fee, commission, or other valuable 
consideration, and sells or offers to sell property at an auction must first 
obtain an auctioneer or associate auctioneer license from the Texas Department 
of Licensing and Regulation.
[(b) All applicants for an auctioneer or associate auctioneer license are to 
obtain all necessary forms from the Texas Department of Licensing and 
Regulation.
[(c) All licenses expire one year from date of issuance.]
<nl>(a)<ol>[(d)] Each license must be renewed within 30 days after expiration. A 
license not renewed within 30 days of the expiration date will not be issued 
without the applicant first taking and passing the written examination 
administered by the department. Any person who acts as an auctioneer within that 
30-day period after expiration of the license is subject to the penalties under 
Auctions and Auctioneering-Licensing and Regulation sec.11(a).
<nl>(b)<ol>[(e)] All licensees must report any change of address to the  
<nl>department.<ol> [Texas Department of Licensing and Regulation, Auctioneer 
Program, Austin.]
[(f) A limited sales tax permit number obtained from the Comptroller of Public 
Accounts of Texas must be furnished on each license application form. If no 
limited sales tax permit is required of an applicant by the Comptroller of 
Public Accounts, then the applicant must furnish the department a waiver from 
the Austin office of the comptroller stating the reasons no sales tax permit 
number is needed.]
sec.67.21. License Requirements-Associate Auctioneers.
(a)  Associate auctioneers must be employed by, and under the direct on-premises 
supervision of a licensed Texas auctioneer. An associate auctioneer shall offer 
his services only to a Texas licensed auctioneer. There must be a legitimate 
employee-employer relationship between the associate and the licensed 
auctioneer.
(b) Any change of employment by a licensed associate auctioneer must be 
submitted to the department's Austin office prior to such action, and a letter 
must be submitted by the former employer stating number of auction sales at 
which the associate participated as bid-caller.
sec.67.40. <nl>Education and Recovery Fund [Bond Requirements].
(a)<nl> On each December 31 beginning in 1991, the department will determine the 
pro-rata share to be paid into the education and recovery fund (the fund) in 
order to renew a license.<ol> [Licensees must post a $5,000 surety bond issued 
by a company licensed to transact business in the State of Texas. The bond must 
be on a form provided by the department.]
(b)<nl> The renewal notice sent by the department will reflect the amount due to 
the fund in order to renew the license. <ol> [A cash performance alternative 
filed in lieu of a surety bond, pursuant to the provisions of the Act, may be an 
irrevocable assignment of security issued by a national or state bank, or 
savings and loan association, subject to the express approval of the department. 
Each assignment shall remain in effect for a period of two years after the 
expiration of the license or replacement of the bond in order to be approved by 
the commissioner. The assignment of security must be on a form provided by the 
department.]
(c)<nl> All new applicants for an auctioneer or associate auctioneer license 
will pay a $100 fee to the fund before a license will be issued.<ol> [The surety 
bond or assignment of security shall be maintained in full during the entire 
time the license is in effect. Failure to do so will be cause for the 
commissioner to call an administrative hearing to suspend or revoke the 
auctioneer's license.]
sec.67.100. Technical Requirements-General.
(a) With regard to bid calling, a licensee may not [:
(1)] allow an unlicensed auctioneer or an unlicensed associate auctioneer to 
call bids at a sale<nl>. <ol> [; or
[(2) call bids for an auction company unless the owner or operator has a valid 
Texas auctioneer license.]
(b)-(c) (No change.)
(d) All auctioneers and auction companies shall notify consumers and service 
recipients of the name, mailing address, and telephone number of the department 
for purposes of directing complaints to the department. The licensees may use a 
sticker or rubber stamp to convey the required information. The notification 
shall be included on any seller or consignor contract and on at least one of the 
following:
<nl>(1)<ol>[(A)] a sign prominently displayed at the place of the auction;
<nl>(2)<ol>[(B)] any bill of sale or receipt to be given to the buyer; or
<nl>(3)<ol>[(C)] on bidder cards.
sec.67.101. Technical Requirements-Handling Funds. Every licensed auctioneer 
must:
(1) maintain a separate trust or escrow account in a federally insured bank or 
savings and loan association, in which shall be deposited all funds belonging to 
others which shall come into the auctioneers possession;
(2) deposit all proceeds from an auction into his trust or escrow account within 
72 hours of the auction unless the owner/consignor of the property auctioned is 
paid immediately after the sale or the written contract stipulates other terms, 
such as sight drafts;
(3) pay any public monies, including, but not limited to, state sales tax, 
received into the State Treasury at the times and as per the regulations 
prescribed by law; and
(4)  pay all amounts due the seller within 15 banking days of the auction unless 
otherwise required by statute or a written contract between license holder and 
seller.
sec.67.102. Technical Requirements-Record Keeping.
(a) Each licensed auctioneer shall keep records relative to all auctions for at 
least two years from the date of the sale.
(b) The records for each auction must state the name(s) and address of the 
owners of the property auctioned, the date of the sale, the name of the 
auctioneer and clerk for the sale, the gross proceeds, the location and account 
number of the auctioneer's trust or escrow account, an itemized list of all 
expenses charged to the consignor or seller, a list of all purchasers at the 
auction and a description and selling price for each item sold.
(c) In addition, the auctioneer shall keep, as part of the records for each 
auction, all documents relating to the auction. These documents shall include, 
but are not limited to, settlement sheets, written contracts, copies of 
advertising, and clerk sheets.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 6, 1991.
TRD-9114073
Larry E. Kosta
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: December 20, 1991
For further information, please call: (512) 463-3127
       
16 TAC sec.sec.67.10, 67.21-67.23, 67.30, 67.60, 67.61, 67.70, 67.90-67.92, 
67.94, 67.101-67.105
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Licensing and Regulation or in the Texas Register office, Room 
245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Licensing and Regulation proposes the repeal of 
sec.sec.67.10, 67.21-67.23, 67.30, 67.60, 67.61, 67.70, 67.90-67.92, 67.94, and 
67. 101-67.105, concerning Auctioneers. The repeal of some of the existing 
sections of the auctioneer rules is to simplify, clarify and organize the rules 
to conform to the Auctioneer Act.
Rudy Garcia, acting division director, inspections and investigations, has 
determined that for the first five-year period the repeals are in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the repeals.
Mr. Garcia also has determined that for each year of the first five years the 
repeals are in effect the public benefit anticipated as a result of enforcing 
the repeals will be a simplification and clarification of existing rules. There 
will be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the repeals as proposed.
Comments on the proposal may be submitted to Rudy Garcia, Acting Division 
Director, Inspections and Investigations, 920 Colorado, P.O. Box 12157, Austin, 
Texas 78711, (512) 463-2907.
The repeals are proposed under Texas Civil Statutes, Articles 8700 and 9100, 
which provide the Texas Department of Licensing and Regulation with the 
authority to regulate auctioneers.
sec.67.10. Definitions.
sec.67.21. License Requirements -Auctioneers.
sec.67.22. License Requirements -Associate Auctioneers.
sec.67.23. License Requirements -Reciprocity.
sec.67.30. Exemptions.
sec.67.60. Responsibilities of the Department-Investigations.
sec.67.61. Responsibilities of the Department-Examinations.
sec.67.70. Responsibilities of the Licensee-Records of An Auction or An Auction 
Company.
sec.67.90. Sanctions-Administrative Sanctions.
sec.67.91. Sanctions-Administrative Penalties.
sec.67.92. Sanctions-Injunctive Relief and Civil Penalties.
sec.67.94. Sanctions-Revocation, Suspension, or Denial because of a Criminal 
Conviction.
sec.67.101. Technical Requirements -Advertising.
sec.67.102. Technical Requirements -Handling Funds.
sec.67.103. Technical Requirements -Recordkeeping.
sec.67.104. Technical Requirements -Auction Companies.
sec.67.105. Technical Requirements -Other Statutes and Administrative Rules.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 6, 1991.
TRD-9114072
Larry E. Kosta
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: December 20, 1991
For further information, please call: (512) 463-3127
       
TITLE 22. EXAMINING BOARDS
Part VI. State Board of Registration for Professional Engineers
Chapter 131. Practice and Procedure
Application for Registration
22 TAC sec.131.54
The Texas State Board of Registration for Professional Engineers proposes an 
amendment to sec.131.54, concerning general application information.
The section as amended provides that an applicant who is a native of a country 
where the primary language is other than English may apply for an exemption from 
the TOEFL (Test of English as a Foreign Language) and the TSE (Test of Spoken 
English) examinations by submitting substantiating evidence satisfactory to the 
executive director that he or she is proficient in the English language.
Charles E. Nemir, P.E., executive director, has determined that for the first 
five-year period the section is in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
section.
Mr. Nemir also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be that the executive director may exempt applicants from the TOEFL 
and TSE examinations upon receipt of substantiating evidence and documented 
proof of an applicant's English proficiency. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the section as proposed.
Comments on the proposal may be submitted to Charles E. Nemir, P.E., Executive 
Director, Texas State Board of Registration for Professional Engineers, P.O. 
Drawer 18329, Austin, Texas 78760-8329.
The amendment is proposed under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the board with the authority to make and enforce all rules and 
regulations necessary for the performance of its duties.
sec.131.54. General Application Information.
(a)-(b) (No change.)
(c) Applicants must be able to speak and write the English language. An 
applicant who is a native of a country in which the primary language is other 
than English, shall be required to include with his application evidence that 
the applicant has passed a TOEFL (Test of English as a Foreign Language) with a 
score of 550 or above, and a TSE (Test of Spoken English) with a score of 200 or 
above. These tests shall have been taken within two years of the time the 
application is submitted if the applicant has lived in a non-English speaking 
country for more than two consecutive years after initially taking the test. An 
applicant who has received a four-year degree from an ABET-accredited course or 
who has successfully completed at least six semesters of full-time academic work 
toward an advanced engineering degree in the United States shall be exempted 
from this requirement. <nl>An applicant may request exemption from the TOEFL and 
TSE requirements for other reasons by submitting substantiating evidence and 
documentary proof of his English proficiency which is satisfactory to the 
executive director.
(d) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 12, 1991.
TRD-9114187
Charles E. Nemir, P.E.
Executive Director
Texas State Board of Registration for Professional Engineers
Proposed date of adoption: January 22, 1992
For further information, please call: (512) 440-7723
       
Part VIII. Texas Appraiser Licensing and Certification Board
Chapter 151. Practice and Procedure
22 TAC sec.sec.151.1-151.30
The Texas Appraiser Licensing and Certification Board (the board) proposes new 
sec.sec.151.1-151.30, concerning practice and procedure for the licensing and 
certification of real estate appraisers. These sections were previously adopted 
by the board on an emergency basis. The sections help implement the Texas 
Appraiser Licensing and Certification Act (the Act), Texas Civil Statutes, 
Article 6573a.2.
The sections help permit real estate appraisers to become licensed or certified 
and thereby remain eligible to appraise in federally related transactions. Title 
XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 
(FIRREA) requires the use of state certified or licensed appraisers in 
connection with federally related transactions performed after December 31, 
1991.
These sections provide for a simple and efficient system of procedure before the 
board; to insure uniform standards of practice and procedure, public 
participation and notice of board actions; and a fair and expeditious 
determination of causes.
Renil C. Liner, commissioner, has determined that for the first five-year period 
the sections are in effect there will be an additional cost to state government 
as a result of enforcing and administering the proposed sections, estimated to 
be approximately $265,000 annually for staff salaries and travel and operating 
expenses for the board. Anticipated fees will be sufficient to cover the cost. 
No fiscal implications are involved for local government.
Mr. Liner also has determined that for each year of the first five years the 
sections are in effect the public benefit will be the increased licensure and 
certification of real estate appraisers in compliance with the federal Title XI 
of FIRREA, allow for the appraisal of real property and federally related 
transactions and that enforcing the sections will provide for more qualified 
real estate appraisers.
There will be no effect on small businesses as a result of enforcing the 
sections. The anticipated economic cost to persons who become licensed or 
certified is $125 for filing an application for licensing or certification, $50 
for an examination, and $100 for a two-year renewal. An annual federal registry 
fee of $25 is required by the Appraisal Subcommittee of the Federal Financial 
Institutions Examination Council as provided in Title XI of FIRREA. Continuing 
education expenses are estimated to be $150 every two years.
There will be no local employment impact.
Comments may be submitted to Renil C. Liner, Commissioner, Texas Appraiser 
Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188.
The new sections are proposed under the Texas Appraiser Licensing and 
Certification Act provides the Texas Appraiser Licensing and Certification Board 
with authority to adopt rules and regulations necessary for the performance of 
its duties.
sec.151.1. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise.
 Applicant-A person seeking a certification, license, or approval as an 
appraiser trainee from the board.
 Board-The Texas Appraiser Licensing and Certification Board.
 Complaining witness -Any person who has made a written complaint to the board 
against any person subject to the jurisdiction of the board.
 Contested case -A proceeding in which the legal rights, duties, or privileges 
of a party are to be determined by the board after an opportunity for 
adjudicative hearing.
 License-The whole or a part of any board permit, certificate, approval, 
registration, or similar form of permission required by law.
 Licensing-Includes the board processes respecting the granting, disapproval, 
denial, renewal, certification, revocation, suspension, annulment, withdrawal, 
or amendment of a license.
 Party-The board and each person named or admitted as a party.
 Person-Any individual, partnership, corporation, association, governmental 
subdivision, or public or private organization of any character other than the 
board.
 Petitioner-The person seeking an advisory ruling, the person petitioning for 
the adoption of a rule, or the party seeking affirmative relief in a proceeding 
before the board.
 Record-All notices, pleadings, motions, and intermediate orders; questions and 
offers of proof; objections and rulings on them; any decision, opinion, or 
report by the board; and all staff memoranda submitted to or considered by the 
board.
 Respondent-Any person subject to the jurisdiction of the board against whom any 
complaint has been made.
sec.151.2. Object of Rules. The purpose of these rules is to provide for a 
simple and efficient system of procedure before the board, to insure uniform 
standards of practice and procedure, public participation and notice of board 
actions, and a fair and expeditious determination of causes. These rules shall 
be liberally construed, with a view towards the purpose for which they were 
adopted.
sec.151.3. Scope of Rules. These rules shall govern the procedure for the 
institution, conduct, and determination of all causes and proceedings before the 
board. They shall not be construed so as to enlarge, diminish, modify, or alter 
the jurisdiction, powers, or authority of the board or the substantive rights of 
any person.
sec.151.4. Filing of Documents. When a document is required to be filed in a 
contested case, rulemaking proceeding, or proceeding relating to a petition for 
declaratory ruling under these rules, it is deemed filed when received in the 
office of the Texas Appraiser Licensing and Certification Board, Austin.
sec.151.5. Computation of Time. In computing any period of time described or 
allowed by these sections, by order of the board, or by any applicable statute, 
the period shall begin on the day after the act, event, or default in 
controversy and conclude on the last day of such computed period, unless it be a 
Saturday, Sunday, or legal holiday, in which event the period runs until the end 
of the next day which is not a Saturday, Sunday, nor a legal holiday.
sec.151.6. Motions for Postponement, Continuance, Withdrawal, or Dismissal. 
Motions for postponement, continuance, withdrawal, or dismissal of matters which 
have been duly set for hearing shall be in writing and shall be filed with the 
board not less than five days prior to the designated date that the matter is to 
be heard. Such motion shall set forth, under oath, the specific grounds upon 
which the moving party seeks such action and shall make reference to all prior 
motions of the same nature filed in the same proceeding.
sec.151.7. Conduct and Decorum. Every party, witness, attorney, or other 
representative shall comport himself in all proceedings with proper dignity, 
courtesy, and respect for the board and all other parties. Disorderly conduct 
will not be tolerated. Attorneys and other representatives of parties shall 
observe and practice the standards of ethical behavior prescribed for attorneys 
at law by the State Bar of Texas.
sec.151.8. Petition for Declaratory Rulings. On written petition of any 
interested person the board may issue a declaratory ruling with respect to the 
applicability of any rule or statute enforceable by it to any person, property, 
or state of facts. The petition shall include a clear and concise statement of 
the facts and circumstances upon which a ruling is to be made. Within 60 days 
after the filing of a petition, the board shall issue a declaratory ruling or 
shall give written notice to the petitioner of its refusal to issue a ruling, 
stating its reason for the refusal. The board may amend or withdraw a 
declaratory ruling, which amendment or withdrawal shall have the force and 
effect of a declaratory ruling. A declaratory ruling, if stated to be binding, 
is binding between the board and the petitioner on the statement of facts 
enumerated in the ruling, and is subject to review in the manner provided for 
the review of final decisions in contested cases.
sec.151.9. Request for Advisory Opinions. Upon written or oral request, the 
board may issue written or oral advisory opinions. Such opinions are not binding 
on the board or on the person making the request, and may not be relied upon as 
an official board ruling. The board shall maintain a record of each advisory 
opinion, identifying the person to whom it was issued.
sec.151.10. Notice of Intent to Adopt Rules. <ol> Prior to the adoption of any 
rule, the board shall give at least 30 days notice of its intended action. 
Notice of the proposed rule will be filed with the secretary of state and with 
the lieutenant governor and the speaker of the house, and shall be mailed to any 
person making a timely written request therefor.
sec.151.11. Request for Comments; Hearing; Explanation of Board Action.   Prior 
to the adoption of any rule, all interested persons shall have reasonable 
opportunity to submit data, views, or arguments, orally or in writing. In the 
case of substantive rules, a public hearing shall be granted if requested in 
writing by at least 25 persons, by a governmental subdivision or agency, or by 
an association having at least 25 members; the request must be duly filed with 
the board within 15 days after publication of the notice of intent. All written 
and oral submissions concerning the proposed rule shall be considered fully. On 
the adoption of a rule, the board, if requested in writing by any interested 
person prior to or within 30 days after adoption, shall issue a concise 
statement of the principal reasons for and against its adoption, incorporating 
in the statement its reason for overruling the considerations urged against its 
adoption.
sec.151.12. Emergency Rules. <ol> The board may adopt emergency rules without 
prior notice or hearing, if it finds that an imminent peril to the public 
health, safety, or welfare requires adoption on fewer than 30 days notice and 
states in writing its reason for that finding. The rule may be effective for a 
period not longer than 120 days, renewable once for a period not exceeding 60 
days. An emergency rule adopted pursuant to this rule and the board's written 
reasons for the adoption shall be filed in the office of the Secretary of State.
sec.151.13. Petition for Adoption of Rules. Any interested person may in writing 
petition the board requesting the adoption of a rule. The petition must include 
the text of the proposed rule and a clear and concise statement of the reasons 
justifying its adoption. Within 60 days after the filing of a petition, the 
board shall give written notice to the petitioner of its denial, stating its 
reasons therefor, or shall initiate rulemaking proceedings pursuant to these 
rules.
sec.151.14. Informal Consultations. <ol> The board may use informal conferences 
and consultations as a means of obtaining the viewpoints and advice of 
interested persons concerning contemplated rulemaking. The board may appoint 
committees of experts or interested persons or representatives of the general 
public to advise it with respect to any contemplated rulemaking. The powers of 
these committees are advisory only.
sec.151.15. Denial of a License. Notice and hearings relating to denial of a 
license issued by the board shall be governed by the Texas Appraiser Licensing 
and Certification Act and by Texas Civil Statutes, Article 6252-13a. In the case 
of an application for approval as an appraiser trainee the board shall also 
notify a sponsoring certified or licensed appraiser of the denial, but a 
sponsoring appraiser is not required to request a hearing or to be named or 
admitted as a party in the proceeding before the board. A hearing pursuant to 
this section shall be held at a place designated by the board. Failure to 
request a hearing timely waives judicial appeal, and the board determination 
becomes final and unappealable.
sec.151.16. Suspension and Revocation of a License. <ol> A license issued by the 
board may not be suspended or revoked except after notice and opportunity for 
hearing pursuant to statutory obligation and these sections. If an appraiser 
trainee is a respondent, the board will also notify the trainee's sponsoring 
appraiser of the hearing. The hearing shall be held at a time and place 
designated by the board.
sec.151.17. Notice of Hearing. The notice of hearing shall be served by personal 
service or certified mail not less than 10 days prior to the date set for the 
hearing. The notice must include a statement of the time, place, and nature of 
the hearing; a statement of the legal authority and jurisdiction under which the 
hearing is to be held; a reference to the particular sections of the statutes 
and rules involved; and a short and plain statement of the matters asserted, or, 
if the board is unable to state the matters in detail at the time the notice is 
served, the initial notice may be limited to a statement of the issues involved. 
Thereafter, on timely written application, a more definite and detailed 
statement must be furnished not less than three days prior to the date set for 
the hearing.
sec.151.18. Hearings Before the Board. The chairman of the board or a member 
designated by the chair shall preside over hearings conducted by the board. The 
chairman of the board or a member designated by the chairman for that purpose 
shall rule on the admissibility of evidence or amendments to pleadings.
sec.151.19. Limitations on Number of Witnesses.  The chairman of the board or 
member designated by the chairman shall have the right in any proceeding to 
limit the number of witnesses whose testimony is merely cumulative.
sec.151.20. Right to Counsel; Right to Participate. <ol> All parties, at their 
own expense, may be represented by counsel, which right may be expressly waived. 
Parties are entitled to respond and present evidence and argument on all issues 
involved, and to conduct cross examinations for full and true disclosure of the 
facts.
sec.151.21. Ex Parte Consultations. A member of the board may not communicate, 
directly or indirectly, in connection with any issue of fact or law with any 
person, party, or their representative except on notice and opportunity for all 
parties to participate. A member of the board may communicate ex parte with 
employees of the board who have not participated in any hearing in the case for 
the purpose of utilizing the special skills or knowledge of the board and its 
staff in evaluating the evidence.
sec.151.22. Subpoenas; Depositions. <ol> The issuance of subpoenas and 
commissions and the taking and use of depositions in a contested case shall be 
governed by Texas Civil Statutes, Article 6252-13a, sec.14. Subpoenas and 
commissions may be issued by the chairman or a member designated by the 
chairman.
sec.151.23. Testimony.  In any contested case before the board, witnesses shall 
be sworn and their testimony shall be taken under oath.
sec.151.24. Rules of Evidence. Irrelevant, immaterial, and unduly repetitious 
evidence shall be excluded from consideration. The rules of evidence as applied 
in nonjury cases in the district court shall apply. When necessary to prove 
facts not reasonably susceptible of proof thereunder, evidence not admissible 
under the rules may be admitted, except where precluded by statute, if it is of 
a type commonly relied upon by reasonably prudent persons. The rules of 
privilege recognized by law shall be observed. Documentary evidence may be 
received in the form of copies or excerpts if the original is not readily 
available. Upon request, parties shall be given an opportunity to review the 
original. Official notice may be taken of all facts judicially cognizable and of 
generally recognized facts within the area of the board's special knowledge. 
Parties shall be notified of the material officially noticed and must be 
afforded an opportunity to contest the material so noticed.
sec.151.25. The Record. <ol> Stenographic notes must be made and a record 
maintained in all contested cases before the board.
sec.151.26. Informal Disposition. <ol> Informal disposition may be made of any 
contested case by stipulation, agreed settlement, consent order, or default. No 
stipulation or agreed settlement between the parties or their attorneys or 
representatives, with regard to any matter involved in any proceeding before the 
board shall be enforced unless it shall have been reduced to writing and signed 
by the parties or their authorized representatives and made a part of the record 
or unless it shall have been dictated into the record by them during the course 
of a hearing or incorporated in an order bearing their written approval.
sec.151.27. Final Decisions and Orders. A final decision or order adverse to a 
party in a contested case must be in writing or stated in the record. A final 
decision must include findings of fact and conclusions of law, separately 
stated. Findings of fact, if set forth in statutory language, must be 
accompanied by a concise and explicit statement of the underlying facts 
supporting the findings. Parties shall be notified either personally or by first 
class mail of any decision or order. When the board issues a final decision or 
order ruling on a motion for rehearing, the board shall send a copy of that 
final decision or order by first class mail to the attorneys of record and shall 
keep an appropriate record of that mailing. If a party is not represented by an 
attorney of record, then the board shall send a copy of a final decision or 
order ruling on a motion for rehearing by first class mail to that party, and 
the board shall keep an appropriate record of that mailing. A party or attorney 
of record notified by mail of a final decision or order as required by this 
section shall be presumed to have been notified on the date such notice is 
mailed. A final decision must be rendered within 60 days after the date the 
hearing is finally closed.
sec.151.28. Finality of Decisions. A decision is final, in the absence of a 
timely motion for rehearing, on the expiration of the period for filing a motion 
for rehearing. A decision is final and appealable on the date of rendition of 
the order overruling a motion for rehearing, or on the date the motion for 
rehearing is overruled by operation of law. A decision is final and appealable 
on the date rendered if the board finds that an imminent peril to the public 
health, safety, or welfare requires immediate effect, in which event the 
decision or order shall recite the finding and the fact that the decision is 
final and effective on the date rendered.
sec.151.29. Prerequisite to Judicial Review. Except in the case of an emergency 
decision or order, a motion for rehearing is a prerequisite to judicial review. 
A motion for rehearing must set forth specific grounds upon which the motion is 
based and must be sufficiently definite to apprise the board of any error 
claimed. A motion for rehearing must be filed within 20 days after the date the 
party or their attorney of record is notified of the final decision or order. 
Replies to a motion for rehearing must be filed with the board within 30 days 
after the date the party or their attorney of record is notified of the final 
decision or order. The board must act on the motion within 45 days after the 
date the party or their attorney of record is notified of the final decision or 
order. The board may, by written order extend the period of time for filing, 
replying to, and taking action on a motion for rehearing, not to exceed 90 days 
after the date the party or attorney of record is notified of the final decision 
or order. In the event of an extension of time, the motion for rehearing is 
overruled by operation of law on the date fixed by the written order of 
extension, or in the absence of a fixed date, go days after the date the party 
or their attorney of record is notified of the final decision or order. The 
board may modify this schedule with the consent of the parties.
sec.151.30. Judicial Review. <ol> A person who has exhausted all administrative 
remedies, and who is aggrieved by a final decision in a contested case is 
entitled to judicial review. The petition shall be filed in a district court of 
Travis County, within 30 days after the decision or order of the board is final 
and appealable. A copy of the petition must be served on the board and any other 
parties of record. After service of the petition on the board and within the 
time permitted for filing an answer (or such additional time as may be allowed 
by the court), the board shall transmit to the reviewing court the original or a 
certified copy of the entire record of the proceeding. If the court orders new 
evidence to be taken before the board, the board may modify its findings and 
decision by reason of the additional evidence, and shall file such evidence and 
any modifications, new findings, or decisions with the reviewing court.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 8, 1991.
TRD-9114171
Renil C. Liner
Commissioner
Texas Appraiser Licensing and Certification Board
Earliest possible  date of adoption: December 20, 1991
For further information, please call: (512) 465-3950
       
Chapter 153. Provisions of The Texas Appraiser Licensing and Certification Act
22 TAC sec.sec.153.1, 153.3, 153.5, 153.7, 153.9, 153.11, 153.13, 153.15, 
153.17, 153.21, 153.23
The Texas Appraiser Licensing and Certification Board (the board) proposes new 
sec.sec.513.1, 153.3, 153.5, 153.7, 153.9, 153.11, 153.13, 153.15, 153.17, 153. 
21, 153.21, and 153.23, concerning the licensing and certification of real 
estate appraisers. These sections were previously adopted by the board on an 
emergency basis. The sections implement the Texas Appraiser Licensing and 
Certification Act (the Act), Texas Civil Statutes, Article 6573a.2.
The sections permit real estate appraisers to become licensed or certified and 
thereby remain eligible to appraise in federally related transactions in 
compliance with the federal Title XI of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (FIRREA).
Section 153.1 defines terms employed in the appraisal of real property or in 
sections relating to licensing and certification.
Section 153.3 concerns the Texas Appraiser Licensing and Certification Board 
(the board), and establishes minimum number of meetings, establishes a quorum of 
five members, establishes board officers, and confirms that the meetings of the 
board are subject to the Texas Open Meetings Act.
Section 153.5 establishes various fees for licensing and certification of 
appraisers, for appraiser trainees, for nonresident temporary registration, for 
the federal registry fee, and for changing a business address.
Section 153.7 establishes two categories of certified appraisers, state 
certified general real estate appraiser, and state certified residential real 
estate appraiser.
Section 153.9 provides for the filing of applications; adopts application, 
experience verification, course approval, and change of address forms by 
reference; ground to disapprove applications; and provides for acceptance of 
applications transferred to the board pursuant to the Act, sec.24(d).
Section 153.11 provides for examinations for licensing and certification; 
establishes a minimum passing score; provides for the retaking of failed 
examinations after payment of another examination fee; provides for the 
administration of special examinations for those with physical limitations; and 
requires examinees to comply with instructions.
Section 153.13 provides for the acceptance of education for meeting licensing 
and certification requirements; establishes minimum levels of education 
required, 165 classroom hours for certified general appraisers, 105 classroom 
hours for certified residential appraiser, and 75 classroom hours for state 
licenses appraisers; and provides for the prior approval of courses by 
educational providers.
Section 153.15 establishes required appraisal experience for certification and 
licensing in accordance with the criteria established by the Appraiser 
Qualifications Board of the Appraisal Foundation and with the Act; and provides 
that applicants must submit experience on forms promulgated by the board.
Section 153.15 establishes requirements for renewal of licensure and 
certification; provides a procedure for notifying appraisers and trainees to 
file renewal applications; and requires licensed or certified appraisers to 
complete 20 hours of approved continuing education in order to renew a license 
or certification.
Section 153.19 establishes criminal offenses which are deemed to be directly 
related to the occupation of real estate appraisers.
Section 153.21 provides for appraiser trainees under the sponsorship of a 
certified or licensed appraiser; hold the sponsoring licensed or certified 
appraiser responsible for the conduct of the appraiser trainee; and provide for 
notice and hearing for sanctions against the sponsoring licensed or certified 
appraiser.
Section 153.23 provides for the certification and licensing of appraisers who 
met the requirements for certification under the previous law (the Real Estate 
License Act, Texas Civil Statutes, Article 6573a, sec.22).
Renil C. Liner, commissioner, has determined that for the first five-year period 
the sections are in effect there will be an additional cost to state government 
as a result of enforcing and administering the proposed sections, estimated to 
be approximately $265,000 annually for staff salaries and travel and operating 
expenses for the board. Anticipated fees will be sufficient to cover the cost. 
No fiscal implications are involved for local government.
Mr. Linear also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be the increased licensure and certificaton of real estate 
appraisers in compliance with the federal Title XI of FIRREA, allow for the 
appraisal of real property and federally related transactions, and that 
enforcing the sections will provide for more qualified real estate appraisers.
There will be no effect on small businesses. The anticipated economic cost to 
persons who become licensed or certified is $125 for filing an application for 
licensing or certification, $50 for an examination, and $100 for a two-year 
renewal. An annual federal registry fee of $25 is required by the Appraisal 
Subcommittee of the Federal Financial Institutions Examination Council as 
provided in Title XI of FIRREA. Continuing education expenses are estimated to 
be $150 every two years.
There will be no local employment impact.
Comments may be submitted to Renil C. Liner, Commissioner, Texas Appraiser 
Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188.
The new sections are proposed under the Texas Appraiser Licensing and 
Certification Act, which provides the Texas Appraiser Licensing and 
Certification Board with the authority to adopt rules and regulations necessary 
for the performance of its duties.
sec.153.1. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise.
 Act-The Texas Appraiser Licensing and Certification Act.
 Analysis-The act or process of providing information, recommendations, or 
conclusions on diversified problems in real estate other than estimating value.
 Applicant-A person seeking to be certified or licensed as an appraiser or 
approved as an appraiser trainee.
 Appraisal-A written statement used in connection with a federally related 
transaction that is independently and impartially prepared by a licensed or 
certified appraiser that states an opinion of the defined value of an adequately 
described property as of a specific date that is supported by the presentation 
and analysis of relevant market information.
 Appraisal Standards Board-The Appraisal Standards Board (ASB) of the Appraisal 
Foundation or its successor.
 Appraisal Subcommittee -The Appraisal Subcommittee of the Federal Financial 
Institutions Examination Council or its successor.
 Appraiser Qualifications Board-The Appraiser Qualifications Board (AQB) of the 
Appraisal Foundation or its successor.
 Appraiser trainee -A person approved by the Texas Appraiser Licensing and 
Certification Board to perform appraisals under the direction of a sponsoring 
certified or licensed appraiser.
 Board-The Texas Appraiser Licensing and Certification Board.
 Classroom hour -Fifty minutes of actual classroom session time.
 Client-Any party for whom an appraiser performs a service.
 College-A junior or community college, senior college, university, or any other 
postsecondary educational institution established by the Texas Legislature, 
which is accredited by the Commission on Colleges of the Southern Association of 
Colleges and Schools or like commissions of other regional accrediting 
associations, or is a candidate for such accreditation.
 Commissioner-The commissioner of the Texas Appraiser Licensing and 
Certification Board.
 Council-The Federal Financial Institutions Examination Council (FFIEC) or its 
successor.
 Feasibility analysis -A study of the cost-benefit relationship of an economic 
endeavor.
 Federal financial institution regulatory agency-The Board of Governors of the 
Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of 
the Comptroller of the Currency, the Office of Thrift Supervision, the National 
Credit Union Administration, or the successors of any of those agencies.
 Federally related transaction-Any real estate-related transaction engaged in, 
contract for, or regulated by a federal financial institution regulatory agency 
or the Resolution Trust Corporation that requires the services of an appraiser.
 Foundation-The Appraisal Foundation or its successor.
 Nonresidential property -A property which does not conform to the definition of 
residential property.
 Person-An individual.
 Personal property -Identifiable portable and tangible objects which are 
considered by the general public as being "personal;" for example, furnishings, 
artwork, antiques, gems and jewelry collectibles, machinery, and equipment.
 Real estate-An identified parcel or tract of land, including improvements, if 
any.
 Real estate-related financial transaction-Any transaction involving: the sale, 
lease, purchase, investment in, or exchange of real property, including an 
interest in property or the financing of property; the financing of real 
property or an interest in real property; or the use of real property or an 
interest in real property as security for a loan or investment including a 
mortgage-backed security.
 Real property-The interests, benefits, and rights inherent in the ownership of 
real estate.
 Report-Any communication, written or oral, of an appraisal, review, or 
analysis; the document that is transmitted to the client upon completion of an 
assignment.
 Residential property -Property that consists of at least one but not more than 
four residential units.
 Review-The act or process of critically studying a report prepared by another.
 State certified real estate appraiser-A person certified under the Texas 
Appraiser Licensing and Certification Act.
 State licensed real estate appraiser-A person licensed under the Texas 
Appraiser Licensing and Certification Act.
sec.153.3. The Board.
(a) The board shall meet in Austin in February of each year and at such other 
times and places as it deems necessary to discharge the responsibilities of the 
board. Meetings of the board are subject to the Texas Open Meetings Act, Texas 
Civil Statutes, Article 6252-17.
(b) A quorum of the board consists of five members.
(c) Meetings of the board may be called by the chairperson on a motion by the 
chairperson or upon the written request of five members. Meetings shall be 
conducted in accordance with Robert's Rules of Order.
(d) Officers of the board shall consist of a chairperson, a vice-chairperson, 
and a secretary. The board shall elect its officers at the February meeting or 
upon the creation of a vacancy in an office, whichever first occurs.
(e) Terms of office for members of the board are established when the members 
are appointed by the governor as provided by the Texas Appraiser Licensing and 
Certification Act, sec.6(f), and members shall continue to serve until their 
successors are qualified.
sec.153.5. Fees.
(a) The board shall charge and collect the following fees:
(1) an application fee for certification or licensing of $125;
(2) an examination fee of $50;
(3) a renewal fee for a certificate or license of $100;
(4) an application fee for approval as an appraiser trainee of $50;
(5) a renewal fee for appraiser trainee approval of $25;
(6) a fee for notifying the board of a change of office location of $10;
(7) a fee for nonresident appraiser registration of $25; and
(8) an annual federal registry fee of $25.
(b) Fees must be submitted in the form of a cashier's check or money order 
payable to the order at the Texas Appraiser Licensing and Certification Board. 
Fees are not refundable once an application has been accepted for filing.
(c)  Appraisers certified or licensed by the board shall pay any annual registry 
fee required under federal law within 30 days after the board mails a written 
request for payment of the fee to the appraiser's last known business address as 
shown in the board's records. If, however, the board requests payment of the 
registry fee in connection with renewal of a certification or license, the 
registry fee must be paid at the same time as the fee for certification or 
license renewal.
sec.153.7. Categories of Appraiser Certification.
(a) There is hereby created the category of state certified general real estate 
appraiser. To be eligible for certification as a state certified general real 
estate appraiser an applicant must meet the requirements for general 
certification set by these sections and the Texas Appraiser Licensing and 
Certification Act (the Act).
(b) There is hereby created the category of state certified residential real 
estate appraiser. To be eligible for certification as a state certified 
residential real estate appraiser an applicant must meet the requirements for 
residential certification set by these sections and the Act.
sec.153.9. Applications.
(a) A person desiring to be certified or licensed as an appraiser or approved as 
an appraiser trainee shall file an application using forms prescribed by the 
board; provided, however, forms implementing the prior law may be accepted so 
long as the applicant satisfies current requirements for certification or 
licensing. The board may decline to accept for filing an application which is 
materially incomplete or which is not accompanied by the appropriate fee. Except 
as provided by the Texas Appraiser Licensing and Certification Act (the Act), 
the board may not grant a certification, license or approval of trainee status 
to an applicant unless the applicant:
(1) pays the fees requested by the board;
(2)  satisfies any experience and education requirements established by the Act 
or by these sections;
(3) successfully completes any qualifying examination prescribed by the board; 
and
(4) provides all supporting documentation or information requested by the board 
in connection with the application.
(b) The Texas Appraiser Licensing and Certification Board adopts by reference 
the following forms approved by the board in 1991 and published by and available 
from the board, P.O. Box 12188, Austin, Texas 78711-2188:
(1) TALCB Form 1.0, Application for Appraiser Certification, Licensing and 
Examination;
(2) TALCB Form 2.1, Appraisal Experience Affidavit;
(3) TALCB Form 3.1, Appraisal Experience Log;
(4) TALCB Form 4.0, Application for Approval as an Appraiser Trainee;
(5) TALCB Form 5.0, Request for Course Approval and Renewal;
(6) TALCB Form 6.0, Temporary Non-Resident Appraiser Registration;
(7) TALCB Form 7.0, Joint Affidavit for Experience; and
(8) TALCB Form 8.0, Change of Office Address by a Licensed or Certified 
Appraiser.
(c) An application may be considered void and subject to no further evaluation 
or processing if an applicant fails to provide information or documentation 
within 60 days after the board makes written request for the information or 
documentation.
(d) A certification, license, or appraiser trainee approval is valid for the 
term for which it is issued by the board unless suspended or revoked for cause 
and unless revoked, may be renewed in accordance with the requirements of 
sec.153.17 of this title (relating to Renewals and Continuing Education).
(e) The board may deny certification, licensing, or approval as an appraiser 
trainee to an applicant who fails to satisfy the board as to the applicant's 
honesty, trustworthiness, and integrity.
(f) Applications transferred to the board pursuant to the Act, sec.24(d), shall 
be deemed filed with the board on the effective date of the Act. An application 
for general certification shall be considered an application to the board for 
general real estate appraiser certification. An application for residential 
certification shall be considered an application to the board for residential 
real estate appraiser certification. The board shall confirm satisfaction of 
requirements for certification or licensing imposed by the Act but may not 
require reapplication or payment of additional application fees.
sec.153.11. Examinations.
(a) Examinations administered by the board to applicants shall be administered 
in accordance with the provisions of this section and the Texas Appraiser 
Licensing and Certification Act (the Act) . If an examination is conducted by a 
testing service under contract with the board, the examination shall be 
conducted in accordance with the procedures specified in the contract.
(b) Each examination shall concern the subjects endorsed and approved for 
examinations by the Appraiser Qualifications Board for the category of license 
or certification sought and Texas law related to the appraisal of real property. 
Each applicant must achieve a score of at least 75% on the examination. An 
applicant may file an application to take the examination on the form approved 
by the board or may use the application form for certification or licensing. In 
either case, the applicant shall submit the appropriate examination fee set by 
the board.
(c) If an applicant fails the examination, the applicant must apply to take the 
examination again and pay the appropriate fee within one year from the date of 
the unsuccessful examination. If the applicant has not satisfied all examination 
requirements within one year from the time the board accepted an application for 
filing or timely applied to take the examination again, the application is 
terminated and a new application is required.
(d) The board or any testing service under contract with the board shall 
administer examinations at locations designated by the board. The board may 
assign an examination date and site to an applicant. An applicant who does not 
attend an assigned examination shall be deemed to have failed unless the board 
is notified at least one working day before the exam that the applicant will not 
appear on the assigned date.
(e) To be authorized for admittance to an examination, the applicant must 
present to the examination proctor an admission ticket issued by the board. 
Admission tickets will specify a date, time, and location for the examination 
and will be valid only for that date. In addition to the admission ticket, 
examination proctors shall require official photo-bearing personal 
identification of individuals appearing for an examination and shall deny 
entrance to anyone who cannot provide adequate identification. Proctors may 
refuse admittance to an examinee or dismiss an examinee prior to the completion 
of the examination, if in the proctor's opinion, the individual's conduct or 
demeanor is such that the proctor feels the individual would be a disruptive 
influence on the other examinees. Proctors may assign a specific seat or desk to 
each examinee. Proctors may require that an examinee be reseated during the 
course of the examination. Proctors may refuse admittance to an examinee who 
reports to the proctor for admittance to the examination after the time the 
examination is scheduled to begin.
(f) Examinees are permitted to use slide rules or silent, battery-operated, 
electronic, pocket-sized calculators. If a calculator has printout capability, 
the use of the calculator must be approved by the examination proctor prior to 
the examination. Calculators with alpha-numeric keyboards may not be used.
(g) Examination schedules shall be published periodically by the board.
(h) Special examinations based on verified physical limitations or other good 
cause as determined by the board may be arranged for applicants. Special 
examinations will be administered at the board headquarters in Austin, unless an 
applicant is physically incapable of traveling to Austin or of being transported 
to Austin. Requests for special examinations will be handled individually, 
requiring medical verification or confirmation by the board. The method of 
special examination will be determined by the board based on the particular 
circumstances of each case.
(i)  Examinees shall comply with all instructions from the board or an 
examination proctor. Proctors may confiscate examination materials of an 
examinee giving or receiving or attempting to give or receive unauthorized 
assistance or answers to examination questions and such examinee will be 
dismissed from the examination session with a failing grade. Dismissal may 
result in disapproval of an application. The board may file theft charges 
against any person who removes or attempts to remove an examination or any 
portion thereof or any written material furnished with the examination whether 
by actual physical removal or by transcription. The board may deny, suspend, or 
revoke a license or certification for disclosing to another person the content 
of any portion of an examination with the expectation that the disclosed 
information would be used by or made available to another applicant.
sec.153.13. Educational Requirements.
(a) The board may accept a course of study to satisfy educational requirements 
for certification or licensing established by the Texas Appraiser Licensing and 
Certification Act (the Act) or by this section if the board has approved the 
course and determined it to be a course related to real estate appraisal.
(b) The board may approve courses submitted or to be submitted by applicants for 
appraiser certification upon a determination of the board that:
(1) the subject matter of the course was appraisal-related; provided that core 
real estate courses set forth in Texas Civil Statutes, Article 6573a, 
sec.7(a)(1)-(4), (6), (8), and (9) shall be deemed appraisal-related;
(2) the course was offered by an accredited college or university, a school 
accredited by a real estate or appraiser certification or licensing agency of 
another state, a professional trade association, or a service-related school 
such as the United States Armed Forces Institute; or the course was offered or 
approved by a federal agency or commission or by an agency of this state;
(3) the applicant either obtained credit by challenge examination as permitted 
by the Act, sec.24(d), or received in a classroom presentation the hours of 
instruction for which credit was given and successfully completed a final 
examination for course credit; and
(4) the course was at least 15 classroom hours in duration, not including the 
time required for an examination.
(c) For the purposes of this section, a professional trade association is a 
nonprofit, cooperative, and voluntarily joined association of business or 
professional competitors that is designed to assist its members and its industry 
or profession in dealing with mutual business or professional problems and in 
promoting the common interest of its members.
(d) The board may require an applicant to furnish materials such as course 
outlines, syllabi, course descriptions, or official transcripts to verify course 
content or credit.
(e) Applicants for general real estate appraiser certification must have 
successfully completed 165 classroom hours in courses approved by the board. 
Applicants for residential real estate appraiser certification must have 
successfully completed 105 classroom hours in courses approved by the board. For 
either category of certification, the coursework submitted must have included a 
minimum of 15 hours of coverage of the "Uniform Standards of Professional 
Appraisal Practice" (USPAP).
(f) Applicants for a real estate appraiser license must have successfully 
completed 75 classroom hours in courses approved by the board, including 15 
hours of coverage of the USPAP.
(g)  Course providers may obtain prior approval of a course by filing form TALCB 
5.0 and submitting the following items to the board:
(1) a copy of any textbook, course outline, syllabus, or other written material 
used in the course;
(2) a copy of the question and answers to the written final examination; and
(3) such prior approval of courses will remain in effect for a period of two 
years after the date of approval.
(h) The board shall accept classroom hour units of instruction as shown on the 
transcript or other document evidencing course credit if the transcript reflects 
the actual hours of instruction the student received. Fifteen classroom hours of 
credit may be awarded for one semester hour of credit from an acceptable 
provider. Ten classroom hours of credit may be awarded for one quarter hour of 
credit from an acceptable provider. Ten classroom hours of credit may be awarded 
for each continuing education credit from an acceptable provider. The board may 
not accept courses repeated within three years of the original offering unless 
the subject matter has changed significantly.
(i) Teachers of appraisal courses may receive credit for either classroom hours 
or experience, but not for both. Applicants must provide documentation as 
requested by the board to establish credit for teaching appraisal courses. 
Education credit for teaching a particular course may be claimed only once in 
each three-year period.
sec.153.15. Experience Required for Certification or Licensing.
(a) An applicant for general real estate appraiser certification must provide 
evidence satisfactory to the board that the applicant possesses the equivalent 
of 2,000 hours of appraisal experience over a minimum of two calendar years. At 
least 1,000 hours of experience must be in non-residential work. Hours may be 
treated as cumulative in order to achieve the necessary hours of appraisal 
experience.
(b) An applicant for residential real estate appraiser certification must 
provide evidence satisfactory to the board that the applicant possesses the 
equivalent of 2,000 hours of appraisal experience over a minimum of two calendar 
years. Hours may be treated as cumulative in order to achieve the necessary 
hours of appraisal experience.
(c) An applicant for a state real estate appraiser license must provide evidence 
satisfactory to the board that the applicant possesses at least 2,000 hours of 
appraisal experience.
(d) Experience credit shall be awarded by the board in accordance with current 
criteria established by the Appraiser Qualifications Board and in accordance 
with the provisions of the Texas Appraiser Licensing and Certification Act (the 
Act) specifically relating to experience requirements.
(1) Experience credit may be awarded for a fee or staff appraisal when it is 
performed in accordance with the provisions of the "Uniform Standards of 
Professional Appraisal Practice" (USPAP) in effect at the time of the appraisal.
(2) Experience credit may be awarded for an ad valorem tax appraisal which:
(A) uses techniques to value properties similar to those used by appraisers; and
(B) effectively uses the appraisal process. The components of the mass appraisal 
process which may be awarded experience credit are the highest and best use 
analysis, model specification (developing the model) , and model calibration 
(developing adjustments to the model). Other components of the mass appraisal 
process, by themselves, are not eligible for experience credit. Mass appraisals 
must be performed in accordance with Standards Rule 6 of USPAP.
(3) Experience credit may be awarded for a review appraisal when the appraiser 
performs review(s) of appraisals prepared by either employees, associates, or 
others, provided the appraisal report was not signed by the review appraiser. 
Review appraisal credit shall not be awarded when the report is signed as a 
review appraiser as this should appropriately be considered as appraisal 
experience. Review appraisals must be performed in accordance with Standards 
Rule 3 of USPAP.
(4) Experience credit may be awarded for appraisal analysis. A market analysis 
typically performed by a real estate broker or salesperson may be awarded 
experience credit when the analysis is prepared in conformity with Standards 
Rules 1 and 2 of USPAP, and the individual can demonstrate that they are using 
similar techniques as appraisers to value properties and effectively utilize the 
appraisal process.
(5)  Experience credit may be granted for real estate counseling (consulting) 
when it is appraisal related and performed in accordance with Standards Rules 4 
and 5 of USPAP.
(6) Experience credit may be granted for highest and best use analysis.
(7) Experience credit may be awarded for a feasibility analysis or feasibility 
study when it is performed in accordance with Standards Rules 4 and 5 of USPAP.
(8) Experience credit may be awarded for teaching appraisal courses provided 
that an applicant may not receive more than 500 hours for teaching appraisal 
courses each year. Actual classroom time may be claimed, e.g., a three-semester 
credit course equates to 45 hours of appraisal teaching experience; a 15 
classroom-hour course equates to 15 hours of teaching experience. Teaching an 
appraisal course may be used either for experience credit or for education 
credit. Both experience credit and education credit may be granted for teaching 
multiple sections of the same course; that is, credit for teaching a particular 
section of a course may be applied toward education credit and teaching another 
section of the same course may be applied toward experience credit. 
Documentation shall be required.
(e) Experience claimed by an applicant must be submitted on forms promulgated by 
the board.
(1) If experience claimed by the applicant was gained under direct supervision 
of an appraiser, certified or licensed under the Act at the time of application, 
such evidence may be submitted by joint affidavit of the applicant and the 
supervisory appraiser, using TALCB Form 7.0.
(2) If experience claimed by the applicant is submitted upon affidavit of the 
applicant only, such affidavit must be accompanied by a detailed listing of 
experience supporting the affidavit, using TALCB Forms 2.1 and 3.1.
(3)  In exceptional situations, the board, at its discretion, may accept other 
evidence of experience claimed by the applicant.
sec.153.17. Renewal of Certification, License, or Trainee Approval; Continuing 
Education.
(a) A certified or licensed appraiser or appraiser trainee may renew the 
certification, license, or trainee approval by timely filing the prescribed 
application for renewal, paying the appropriate fee to the board, and satisfying 
continuing education requirements as provided by this section.
(b) The board shall mail the prescribed renewal application form to the 
appraiser or trainee's last known business address at least 90 days prior to the 
expiration of the certification, license, or approval. An appraiser trainee's 
business address is the address of the appraiser trainee's sponsoring appraiser. 
It is the responsibility of the appraiser or trainee to apply for renewal in 
accordance with these sections, and failure to receive a renewal application 
form from the board does not relieve the appraiser or trainee of the 
responsibility of applying for renewal.
(c) The board may not accept a renewal application filed after the expiration of 
the certification, license, or appraiser trainee approval. An appraiser or 
trainee who does not timely file a renewal application must reapply for 
certification, license, or approval as an appraiser trainee in accordance with 
the provisions of sec.153.9 of this title (relating to Applications). If the 
application is filed within one year of the expiration of a previous 
certification or license the applicant shall also provide satisfactory evidence 
of completion of any continuing education that would have been required for a 
timely renewal of the previous certification or license. If the application for 
certification or license is filed more than one year after the expiration of the 
previous certification or license, the applicant must successfully complete the 
examination required by sec.153.11 of this title (relating to Examinations).
(d) A renewal application is deemed filed when placed in the mails properly 
addressed to the board with appropriate postage paid.
(e) As a condition for renewing a certification or license, an appraiser must 
successfully complete the equivalent of at least 20 classroom hours of 
continuing education courses approved by the board during the two-year period 
preceding the expiration of the certification or license. The board shall base 
its review and approval of continuing education courses upon the current 
appraiser qualification criteria of the Appraiser Qualifications Board.
sec.153.19. Criminal Offense Guidelines. The Texas Appraiser Licensing and 
Certification Board deems the following felonies and misdemeanors directly 
related to the occupation of licensed or certified appraisers or appraiser 
trainees:
(1) offenses involving fraud or misrepresentation;
(2) offenses against real or personal property belonging to another, if 
committed knowingly or intentionally;
(3) offenses against public administration;
(4) offenses involving the sale or other disposition of real or personal 
property belonging to another with authorization of law;
(5) offenses involving moral turpitude; and
(6) offenses of attempting or conspiring to commit any of the foregoing 
offenses.
sec.153.21. Appraiser Trainees.
(a) A certified or licensed appraiser may apply to the board to sponsor an 
appraiser trainee on the application form prescribed by the board. Once a person 
is approved as an appraiser trainee by the board, the person may perform 
appraisals under the direction of the sponsoring appraiser unless one of the 
following events occurs:
(1) the appraiser trainee approval expires due to nonpayment of the annual 
renewal fee;
(2) the sponsorship is terminated by either the sponsor or the trainee; or
(3) the trainee's authority to act has been suspended or revoked by the board.
(b) The sponsoring appraiser shall immediately notify the board in writing of 
any termination of sponsorship of an appraiser trainee.
(c) If an appraiser trainee's approval has expired or been revoked by the board 
or the sponsorship of the appraiser trainee has been terminated, the appraiser 
trainee may not perform appraisals until an application to sponsor the trainee 
has been filed together with the appropriate fee by a certified or licensed 
appraiser and approved by the board.
(d) Certified or licensed appraisers who sponsor appraiser trainees are 
responsible to the public and to the board for the conduct of the appraiser 
trainee under the Texas Appraiser Licensing and Certification Act (the Act). 
After notice and hearing, the board may reprimand a sponsoring appraiser or may 
suspend or revoke a sponsoring appraiser's certification or license based on 
conduct by the appraiser trainee constituting a violation of the Act or a rule 
of the board.
sec.153.23. Appraisers Meeting Certification Requirements Under Prior Law; 
Transitional Licenses.
(a) The board shall issue a certification as a state certified general real 
estate appraiser to a person who has met the requirements for general 
certification before the effective date of the Texas Appraiser Licensing and 
Certification Act (the Act). The board may not require reapplication or payment 
of a fee for issuance of a certification under this subsection.
(b) The board shall issue a certification as a state certified residential real 
estate appraiser to a person who has met the requirements for residential 
certification before the effective date of the Act and who has within 90 days 
after the effective date of the Act satisfied the board that the person has met 
the hours of education required by the guidelines of the Appraiser 
Qualifications Board. If the person fails timely to satisfy the board of the 
completion of the required education or requests issuance of a state real estate 
appraiser license, the board shall issue a state real estate appraiser license 
to the person. The board may not require reapplication or payment of a fee for 
issuance of a certification or license under this subsection.
(c) The board shall issue a transitional license to a person who has passed the 
real estate appraiser examination offered by the Texas Real Estate Commission 
before the effective date of the Act but who has not met the requirements for 
general or residential certification under the prior law. The board may issue a 
transitional license to an applicant who passed the examination required for 
licensing under this Act but who lacks the education or experience requirements 
for licensing under this Act if the application is made to the board on or 
before the first anniversary of the effective date of this Act. A transitional 
license issued under this subsection shall be valid for not more than two years 
and may not be renewed by the board. A transitional license shall be equivalent 
to a license issued under this Act and the holder of a transitional license 
shall be held to the same standards and may perform the same duties as a state 
licensed real estate appraiser.
(d) A certification or license issued under this section is valid for two years 
from the date of issuance. Certifications and licenses issued under this section 
may be renewed only in accordance with the provisions of the Act.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 8, 1991.
TRD-9114172
Renil C. Liner
Commissioner
Texas Appraiser Licensing and Certification Board
Earliest possible date of adoption: December 20, 1991
For further information, please call: (512) 465-3950
       
Chapter 155. Standards of Practice
22 TAC sec.155.1
The Texas Appraiser Licensing and Certification Board (the board) proposes new 
sec.155.1, concerning standards of practice for licensed and certified real 
estate appraisers. The section was previously adopted by the board on an 
emergency basis. The section helps implement the Texas Appraiser Licensing and 
Certification Act (the Act), Texas Civil Statutes, Article 6573a.2.
The section helps permit real estate appraisers to become licensed or certified 
and thereby remain eligible to appraise in federally related transactions. Title 
XI of the Financial Institutions Reform, Recovery, and Enforcement act of 1989 
(FIRREA) requires the use of state certified or licensed appraisers in 
connection with federally related transactions performed after December 31, 
1991.
The section adopts the "Uniform Standards of Professional Appraisal Practice" 
(USPAP) and requires written appraisal reports for federally related 
transactions. The provisions are consistent with Title XI of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) requires the 
use of state certified or licensed appraisers in connection with federally 
related transactions performed after December 31, 1991.
The section adopts the "Uniform Standards of Professional Appraisal Practice " 
(USPAP) and requires written appraisal reports for federally related 
transactions. The provisions are consistent with Title XI of FIRREA. By December 
31, 1991, appraisals performed in connection with federally related transactions 
must be performed only by persons licensed or certified in accordance with Title 
XI who adhere to the USPAP standards.
Renil C. Liner, commissioner has determined that for the first five-year period 
the section is in effect there will be additional cost to state government as a 
result of enforcing and administering the proposed section, estimated to be 
approximately $265,000 annually for staff salaries and travel and operating 
expenses for the board. Anticipated fees will be sufficient to cover the cost. 
No fiscal implications are involved for local government.
Mr. Liner also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the increased licensure and certification of real estate 
appraisers in compliance with the federal Title XI of FIRREA, allow for the 
appraisal of real property and federally related transactions, and that 
enforcing the sections will provide for more qualified real estate appraisers.
There will be no effect on small businesses as a result of enforcing the 
section. The anticipated economic cost to persons who become licensed or 
certified is $125 for filing an application for licensing or certification, $50 
for an examination, and $100 for a two-year renewal. An annual federal registry 
fee of $25 is required by the Appraisal Subcommittee of the Federal Financial 
Institutions Examination Council as provided in Title XI of FIRREA. Continuing 
education expenses are estimated to be $150 every two years.
There will be no local employment impact.
Comments may be submitted to Renil C. Liner, Commissioner, Texas Appraiser 
Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188.
The new section is proposed under the Texas Appraiser Licensing and 
Certification Act, which provides the Texas Appraiser Licensing and 
Certification Board with the authority to adopt rules and regulations necessary 
for the performance of its duties.
sec.155.1. Standards of Practice.
(a) An appraisal performed by a person subject to the Texas Appraiser Licensing 
and Certification Act must conform with the "Uniform Standards of Professional 
Appraisal Practice" (USPAP) of the Appraisal Foundation in effect at the time of 
the appraisal.
(b) Appraisal reports prepared by state certified or licensed appraisers in 
connection with a federally related transaction under the jurisdiction of a 
federal financial institutions regulatory agency or the Resolution Trust 
Corporation shall be written reports.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 8, 1991.
TRD-9114173
Renil C. Liner
Commissioner
Texas Appraiser Licensing and Certification Board
Earliest possible date of adoption: December 20, 1991
For further information, please call: (512) 465-3950
       
 Texas Department of Insurance Exempt Filing 
Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L
(Editor's Note: As required by the Insurance Code, Article 5.96 and 5. 97, the 
Texas Register publishes notice of proposed actions by the Texas Board of 
Insurance. Notice of action proposed under Article 5.96 must be published in the 
Texas Register not later than the 30th day before the board adopts the proposal. 
Notice of action proposed under Article 5.97 must be published in the Texas 
Register not later than the 10th day before the Board of Insurance adopts the 
proposal. The Administrative Procedure and Texas Register Act, Article 6252-13a, 
Texas Civil Statutes, does not apply to board action under Articles 5. 96 and 
5.97.
The complete text of the proposal summarized here may be examined in the offices 
of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-
9104.)
Notice is hereby given that the Texas Department of Insurance will conduct 
public hearings under Docket Number 1840 and Number 1841 beginning at 9 a.m. on 
Thursday, December 19, 1991, to discuss the conduct of the hearing and will 
reconvene on Monday, January 13, 1992 at 9 a.m. and continuing thereafter each 
day at times and places designated by the board until conclusion. This hearing 
has been rescheduled from an earlier date. The purpose of the hearing will be 
consideration of the adoption of premium rates for the writing of title 
insurance in the State of Texas, consideration of possible revision of the 
formula for division of premium revenues between title insurance companies and 
title insurance agents, and consideration of possible amendments to sec.9.1 of 
Title 28 of the Texas Administrative Code and to the Basic Manual of Rules, and 
Forms for the Writing of Title Insurance in the State of Texas,<ol> which the 
State Board of Insurance has adopted under Title 28, Chapter 9, Texas 
Administrative Code. Under Docket Number 1840 and Number 1841, the hearings will 
commence in Room 100 on the first floor of the Texas Department of Insurance 
Office Building at 333 Guadalupe Street, Austin. Notice is hereby given that a 
second pre-hearing conference will be held before the general counsel or other 
designated representative of the State Board of Insurance 10 a.m. on Tuesday, 
November 26, 1991, in Room 100 of the Texas Department of Insurance Office 
Building, 333 Guadalupe Street, Austin. The prehearing conference will be held 
for the following purposes: consideration of formulation and simplification of 
issues; identification of expert witnesses and stipulations as to their 
respective qualifications; consideration of making admissions of certain 
averments of fact or stipulations concerning the use by parties of matters of 
public record; consideration of procedures at the hearing; agreement to limit, 
where possible, the number of witnesses; and agreeing to such other matters as 
may aid in the simplification of the proceedings, and in the disposition of 
matters in controversy, including rate matters, rule matters and discovery; and 
alignment of parties and grouping of agenda items. Among other matters which the 
general counsel may determine at the second pre-hearing conference will be 
grouping of parties with similar interests who will be required to make a common 
presentation through representation by one attorney or one speaker at the 
regular hearing. Anyone wishing to participate in the hearing as a party, that 
has not previously been admitted as a party in the initial pre-hearing 
conference, must demonstrate an extensive showing of exceptional circumstances 
before the board will accept additional motions for admission. Any prospective 
parties must by 5 p.m. on Monday, November 25, 1991, present a written motion 
for admission as a party to the Office of the General Counsel, Texas Department 
of Insurance, Mail Code 113-2A, P.O. Box 149104, Austin, Texas 78714-9104. The 
motion must contain a full explanation of the identifiable separate interest and 
separate contribution which would constitute sufficient justification for 
granting the motion for admission as a party.
Each admitted party shall file with the general counsel of the Texas Department 
of Insurance no later than Thursday, December 5, 1991, 12 copies of each exhibit 
that will be offered at the hearing. An admitted party that files its exhibits 
with the general counsel is entitled to obtain from the general counsel in a 
timely manner before the date of the hearing, one copy of each of the exhibits 
submitted by the other parties. Address all filings to Gloria Leal, General 
Counsel Mail Code 113-2A, Texas Department of Insurance, P.O. Box 149104, 
Austin, Texas 78714-9104.
Additional statements, briefs, arguments, and statistical information may be 
submitted at the hearing.
All deadlines in this notice are subject to change at the board's discretion 
except for items requiring statutory notice.
A copy of the entire notice of hearing as mailed pursuant to the Texas Insurance 
Code, Article 9.07, is on file in the Chief Clerk's Office of the Texas 
Department of Insurance and is available for public inspection.
The State Board of Insurance has jurisdiction over the promulgation of rules and 
premium rates, over amendments to or promulgation of approved forms, and over 
other matters to be considered in the writing of title insurance in the State of 
Texas pursuant to the Texas Insurance Code, Articles 1.02, 1.04, 9.01, 9.02, 
9.07, 9.21, and 9.30, and pursuant to the Texas Administrative Code, Title 28, 
sec.9.1 and sec.9.401.
The Administrative Procedure and Texas Register Act (Texas Civil Statutes, 
Article 6252-13a) and the rules of practice and procedure before the State Board 
of Insurance (Texas Administrative Code, Title 28, Chapter 1, Subchapter A) set 
forth the nature and requirements of procedures available for the consideration 
of proposed rates and rules to be presented to the State Board of Insurance at 
the public hearings.
Reference is further made to the statutes and rules cited in other paragraphs of 
this notice of hearing and to Chapter 9 and other articles of the Texas 
Insurance Code, to Chapter 9 and other sections of Title 28 of the Texas 
Administrative Code, and to the Basic Manual of Rules, Rates and Forms for the 
Writing of Title Insurance in the State of Texas<ol> (the Basic Manual) to the 
extent of specific provisions which are applicable to any proposed rule, rate or 
other matter asserted.
Under Docket Number 1840, beginning at 9 a.m. on Thursday, December 9, 1991, to 
discuss the conduct of the hearing and reconvening on Monday, January 13, 1991, 
at 9 a.m. and continuing thereafter each day from time to time and from place to 
place as designated by the board, the State Board of Insurance will hold a 
public hearing to consider the adoption of a formula to set premium rates. This 
consideration will include, but not be limited to, agenda Items 91-1 through 91-
5, and pertain to the adoption of a formula to set premium rates, the adoption 
of a Schedule of Basic Premium Rates for Title Insurance for 1991, and the 
division of premium between title insurance underwriters and agents, as set 
forth in the attached agenda list. Under Docket Number 1841 the State Board of 
Insurance will also consider agenda items including, but not limited to, Items 
91-6 through 91-69, pertaining to possible amendments or additions to the Basic 
Manual rules and forms, as set forth in the attached agenda list. Please direct 
inquiries for the hearing under Docket Number 1841 to Fabian S. Gomez, III, 
Texas Department of Insurance Title Insurance Manager, Mail Code 104-1C, P.O. 
Box 149104, Austin, Texas 78714-9104, (512) 322-3470.
Ratemaking, and rate implications of agenda items concerning rule changes, will 
be considered on a contested case basis as provided in the Administrative 
Procedure and Texas Register Act. Other rules changes will be considered under 
the rulemaking provisions of the Administrative Procedure and Texas Register 
Act. The rules of practice and procedure before the State Board of Insurance and 
the commissioner of insurance will apply in all cases. Different rules will 
apply depending on whether the matter under consideration is ratemaking or 
rulemaking.
Please direct inquiries regarding the hearing under Docket 1840 to Pamela 
Ponder, Staff Attorney for Legal Services, Mail Code 110-1C, Texas Department of 
Insurance, P.O. Box 149104, Austin, Texas 78714-9104, (512) 475-3017. Please 
direct inquiries for the hearing under Docket Number 1841 to Fabian S. Gomez, 
III, Title Insurance Manager, Mail Code 104-1C, Texas Department of Insurance, 
P. O. Box 149104, Austin, Texas 78714-9104, (512) 322-3470.
This agency hereby certifies that the rule as proposed has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on November 13, 1991.
TRD-9114226
Linda K. von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328