TITLE 22.EXAMINING BOARDS

Part 21. TEXAS STATE BOARD OF EXAMINERS OF PSYCHOLOGISTS

Chapter 463. APPLICATIONS AND EXAMINATIONS

22 TAC §463.13

The Texas State Board of Examiners of Psychologists proposes amendments to §463.13, concerning Requirements for Experienced Out-of-State Applicants. These amendments are being proposed to correct technical errors in the text of these rules.

Sherry L. Lee, Executive Director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Lee also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be to make the rules easier for the licensees and public to follow and understand. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Brenda Skiff, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, TX 78701, (512) 305-7700.

The amendments are proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

The proposed amendment does not affect other statutes, articles, or codes.

§463.13.Requirements for Experienced Out-of-State Applicants.

(a) An applicant who provides documentation that the applicant has been actively licensed and in good standing as a psychologist in another jurisdiction for at least 5 [ years ] consecutive years immediately preceding the filing of the application, must meet the following requirements, which are a substitute for Board rule §463.11:

(1) The applicant must have already obtained provisional licensure and must document that the applicant is a provisionally licensed psychologist in good standing.

(2) Supervised experience. The applicant must affirm that the applicant has received 3,000 hours of experience supervised by a psychologist licensed in the state where the supervision took place. At least half of these hours (1,500 hours) must have been completed after the doctoral degree was conferred or completed. The formal internship year may be met either before or after the doctoral degree was conferred or completed, as indicated on the official transcript.

(3) The applicant must document that the applicant has not received any disciplinary action by any other jurisdiction and that there is no pending action or complaint against the applicant in any other jurisdiction.

(b) Licensees holding the Certification of Professional Qualification in Psychology (CPQ) Credential Granted by the Association of State and Provincial Psychology Boards (ASPPB). An out-of-state licensee holding a CPQ credential granted by the ASPPB meets the requirements of Board rule §463.11. In addition, out-of-state licensees who hold a CPQ credential must meet requirements (a)(1) and (a)(3) listed above. The Board reserves the right to [ too ] accept or reject licensure for persons holding the CPQ credential.

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 August 12, 2003.

TRD-200305053

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Earliest possible date of adoption: September 28, 2003

For further information, please call: (512) 305-7700


22 TAC §463.25

The Texas State Board of Examiners of Psychologists proposes amendments to §463.25, concerning Foreign Graduates. These amendments are being proposed to clarify that certified copies of foreign graduates' diplomas may be accepted during the application process.

Sherry L. Lee, Executive Director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Lee also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be to make the rules easier for the licensees and public to follow and understand. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Brenda Skiff, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, TX 78701, (512) 305-7700.

The amendments are proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

The proposed amendment does not affect other statutes, articles, or codes.

§463.25.Foreign Graduates.

(a) Prior to submitting an application for licensure, the potential applicant shall provide the Board with documents and evidence to establish that his/her formal education is equivalent to a masters or doctoral degree, as required by the Psychologists' Licensing Act and Rules and Regulations of the Board, granted by a United States university that is regionally accredited. The registrar of the University of Texas at Austin must certify that, after reviewing the required documentation, the degree is equivalent to a masters or doctoral degree granted from a regionally accredited educational institution. The potential applicant shall provide the Board with the following:

(1) An original or certified copy of a diploma or other certificate of graduation, which will be returned, and a photostatic copy of such a document, which shall be retained.

(2)-(7) (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 August 12, 2003.

TRD-200305054

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Earliest possible date of adoption: September 28, 2003

For further information, please call: (512) 305-7700


Chapter 471. RENEWALS

22 TAC §471.2

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

The Texas State Board of Examiners of Psychologists proposes the repeal of §471.2, concerning Renewal Forms. The rule is being repealed in order to add a new rule to clarify information required on renewal forms.

Sherry L. Lee, Executive Director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Lee also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be to make the rules easier for the licensees and public to follow and understand. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Brenda Skiff, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, TX 78701, (512) 305-7700.

The repeal is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

The proposed repeal does not affect other statutes, articles, or codes.

§471.2.Renewal Forms.

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 August 12, 2003.

TRD-200305055

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Earliest possible date of adoption: September 28, 2003

For further information, please call: (512) 305-7700


22 TAC §471.2

The Texas State Board of Examiners of Psychologists proposes new §471.2, concerning Renewal Forms. This new rule is being proposed to clarify information that is required on renewal forms.

Sherry L. Lee, Executive Director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Lee also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be to make the rules easier for the licensees and public to follow and understand. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Brenda Skiff, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, TX 78701, (512) 305-7700.

The new rule is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

The proposed new rule does not affect other statutes, articles, or codes.

§471.2.Renewal Forms.

Licensed psychological associates and provisionally licensed psychologists who do not practice in an exempt setting must include the name and license number of their supervisor on renewal forms. Licensed psychologists and licensed specialists in school psychology must list their supervisees on their renewal forms. Licensed psychologists must indicate on their renewal forms that they have updated their online profile information. All licensees should indicate their current employment setting on their renewal forms.

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 August 12, 2003.

TRD-200305056

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Earliest possible date of adoption: September 28, 2003

For further information, please call: (512) 305-7700


Chapter 473. FEES

22 TAC §473.1

The Texas State Board of Examiners of Psychologists proposes amendments to §473.1, concerning Application Fees (Not Refundable). These amendments are being proposed in order to implement HB 2985 which requires Health Profession Council member agencies to raise initial application fees by $5 to fund a new Office of Patient Protection.

Sherry L. Lee, Executive Director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Lee also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be to make the rules easier for the licensees and public to follow and understand. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Brenda Skiff, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, TX 78701, (512) 305-7700.

The amendments are proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

The proposed amendment does not affect other statutes, articles, or codes.

§473.1.Application Fees (Not Refundable).

(a) Psychological Associate Licensure-- $185 [ $180 ]

(b) Provisionally Licensed Psychologist-- $335 [ $330 ]

(c) Licensure-- $175 [ $170 ]

(d) Reciprocity-- $475 [ $470 ]

(e) Licensed Specialist in School Psychology-- $215 [ $210 ]

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 August 12, 2003.

TRD-200305057

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Earliest possible date of adoption: September 28, 2003

For further information, please call: (512) 305-7700


22 TAC §473.3

The Texas State Board of Examiners of Psychologists proposes amendments to §473.3, concerning Annual Renewal Fees (Not Refundable). These amendments are being proposed in order to implement HB 2985 which requires Health Profession Council member agencies to raise annual renewal fees by $1 to fund a new Office of Patient Protection.

Sherry L. Lee, Executive Director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Lee also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be to make the rules easier for the licensees and public to follow and understand. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Brenda Skiff, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, TX 78701, (512) 305-7700.

The amendments are proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

The proposed amendment does not affect other statutes, articles, or codes.

§473.3.Annual Renewal Fees (Not Refundable).

(a) Psychological Associate Licensure-- $91 [ $90 ]

(b) Psychological Associate Licensure over the age of 70-- $16 [ $15 ]

(c) Provisionally Licensed Psychologist-- $86 [ $85 ]

(d) Provisionally Licensed Psychologist over the age of 70-- $16 [ $15 ]

(e) Psychologist Licensure-- $181 [ $180 ]

(f) Psychologist Licensure over the age of 70-- $16 [ $15 ]

(g) Psychologist Health Service Provider Status-- $21 [ $20 ]

(h) Psychologist Health Service Provider status over the age of 70--No Fee

(i) Licensees Special in School Psychology-- $34 [ $33 ]

(j) Licensed Specialist in School Psychology over the age of 70-- $14 [ $13 ]

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 August 12, 2003.

TRD-200305058

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Earliest possible date of adoption: September 28, 2003

For further information, please call: (512) 305-7700


Part 23. TEXAS REAL ESTATE COMMISSION

Chapter 535. GENERAL PROVISIONS

Subchapter A. GENERAL PROVISIONS RELATING TO THE REQUIREMENT OF LICENSURE

22 TAC §535.1

The Texas Real Estate Commission (TREC) proposes amendments to Chapter 535 concerning provisions of the Real Estate License Act and §535.1 concerning when a real estate license is required. The amendment to Chapter 535 changes the title to General Provisions to more accurately reflect the content of the chapter. The amendments to §535.1 change the cites to the relevant statutory provisions in Chapter 1101, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1101, a nonsubstantive codification of The Real Estate License Act (the Act), and repealed Article 6573a, Texas Civil Statutes, effective June 1, 2003. The amendments are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules concerning general provisions relating to the requirements of licensure.

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

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

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§535.1.License Required.

(a) Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ] (the Act) applies to persons acting as real estate brokers or salespersons while physically within this state, regardless of the location of the real estate involved or the residence of the person's customers or clients. For the purposes of the Act, a person conducting brokerage business from another state by mail, telephone, the Internet, e-mail or other medium is also considered acting within this state if all the prospective buyers, sellers, landlords, or tenants are legal residents of this state, and the real property concerned is located wholly or in part within this state.

(b) This section does not prohibit cooperative arrangements between non-resident brokers and Texas brokers pursuant to the Act, § 1101.651(a)(2) [ 14(a) ] and §535.131 of this title (relating to Unlawful Conduct: Splitting Fees).

(c) Unless otherwise exempted by the Act, a person must be licensed as a real estate broker or salesperson to show a broker's listings, solicit listings of real property , or perform any act defined as that of a real estate broker by the Act. An unlicensed person may be hired by a broker to act as a host or hostess at a property being offered for sale by the broker, provided the unlicensed person engages in no activity for which a license is required.

(d) The employees, agents or associates of a licensed broker, including a corporation or limited liability company licensed as a broker, must be licensed as real estate brokers or salespersons if they direct or supervise other persons who perform [ in the performance of ] acts for which a license is required. A license is not required for the performance of secretarial, clerical, or administrative tasks, such as training personnel, performing duties generally associated with office administration and personnel matters. Unlicensed employees, agents, or associates may not solicit business for the broker or hold themselves out as authorized to act as real estate brokers or salespersons.

(e) (No change.)

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

Filed with the Office of the Secretary of State on August 14, 2003.

TRD-200305200

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


Subchapter B. DEFINITIONS

22 TAC §§535.12, 535.13, 535.16, 535.17, 535.21

The Texas Real Estate Commission (TREC) proposes amendments to §535.12 concerning general definitions, §535.13 concerning dispositions of real estate, §535.16 concerning listings, §535.17 concerning appraisals, and §535.21 concerning unimproved lot sales; listing publications. The amendments to §535.12, §535.13, §535.16, §535.17, and §535.21 change the cites to the relevant statutory provisions in Chapter 1101, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1101, a nonsubstantive codification of The Real Estate License Act (the Act), and repealed Article 6573a, Texas Civil Statutes, effective June 1, 2003. The amendments are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules concerning definitions.

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

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

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§535.12.General.

(a) (No change.)

(b) A person who owns property jointly may sell and convey title to his or her interest in the property, but the person must be licensed to act for compensation as an agent for the other owner unless otherwise exempted by Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ], (the Act).

§535.13.Dispositions of Real Estate.

(a) (No change.)

(b) Unless otherwise exempted by Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ] (the Act), a person who manages real property or collects rentals for an owner of real property and for a valuable consideration must be licensed if the person also rents or leases the property for the owner.

(c) (No change.)

(d) A real estate license is not required for an individual employed by a corporation or other business entity for the purpose of buying , [ real property for the entity or ] selling , or leasing real property for [ owned by ] the entity. An entity is considered to be an owner if it holds record title to the property or has an equitable title or right acquired by contract with the record title holder. A corporation or limited liability company is considered to be acting as a broker and is required to be licensed under the Act if it or its employee receives, or expects to receive, a valuable consideration from the record title holder for negotiating a sale or other disposition of the property.

(e) (No change.)

(f) Arranging for a person to occupy a vacant residential property is an act requiring a real estate license if the actor:

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

(3) is not exempted from the requirement of a license by the Act, § 1101.005 [ 3 ].

§535.16.Listings.

(a) Trade associations or other organizations which provide a computerized listing service for their members, but which do not receive compensation when the real estate is sold would not be required to be licensed under Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ] (the Act).

(b)-(c) (No change.)

§535.17.Appraisals.

(a) (No change.)

(b) Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ] (the Act) does not apply to appraisals performed by the employees of a financial institution or investment firm in connection with a contemplated loan or investment by their employers.

(c)-(e) (No change.)

§535.21.Unimproved Lot Sales; Listing Publications.

(a) (No change.)

(b) A person may contract to advertise real estate for purchase, sale, lease or rental in a publication without being licensed under Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ], (the Act), unless payment of any fee or consideration the person receives is contingent upon the purchase, sale, lease, or rental of the property advertised in the publication. For the purposes of this section an advance fee is a contingent fee if the person is obligated to return the fee if the property is not purchased, sold, leased or rented. This section shall be narrowly construed to effectuate the purposes for which this section was adopted.

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 August 14, 2003.

TRD-200305201

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


Subchapter C. EXEMPTIONS TO REQUIREMENTS OF LICENSURE

22 TAC §535.31

The Texas Real Estate Commission (TREC) proposes amendments to §535.31 concerning attorneys at law. The amendments to §535.31 change the cites to the relevant statutory provisions in Chapter 1101, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1101, a nonsubstantive codification of The Real Estate License Act (the Act), and repealed Article 6573a, Texas Civil Statutes, effective June 1, 2003. The amendments are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules concerning exemptions to requirements of licensure.

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

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

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§535.31.Attorneys at Law.

A licensed attorney is exempt from the requirements of Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ], (the Act) but cannot sponsor real estate salespersons or serve as the designated officer or manager of a licensed corporation or limited liability company unless the attorney is also licensed as a real estate broker. This provision is not a waiver of the standards of eligibility and qualification elsewhere established in the Act.

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 August 14, 2003.

TRD-200305202

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


Subchapter D. THE COMMISSION

22 TAC §535.41, §535.42

The Texas Real Estate Commission (TREC) proposes amendments to §535.41 concerning procedures, and §535.42 concerning jurisdiction and authority. The amendments change the cites to the relevant statutory provisions in Chapter 1101, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1101, a nonsubstantive codification of The Real Estate License Act (the Act), and repealed Article 6573a, Texas Civil Statutes, effective June 1, 2003. The amendments are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules concerning general provisions relating to the commission.

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

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

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§535.41.Procedures.

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

(d) Order of business.

(1) (No change.)

(2) Proceedings in contested cases will be conducted in accordance with the Administrative Procedure Act, Texas Government Code, Chapter 2001 [ §§2001.001 et seq ] and Chapter 533 of this title (relating to Practice and Procedure).

§535.42.Jurisdiction and Authority.

(a) (No change.)

(b) An employee of the commission specifically authorized by it pursuant to Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ], (the Act), §1101.151(b)(3) [ §5(t) ], to conduct hearings and render final decisions in contested cases may order issuance of a probationary license under §535.94 of this title (relating to Hearing on Application Disapproval: Probationary Licenses) and may suspend or revoke a license or reprimand or place on probation a licensee for a violation of the Act or a rule of the commission.

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

Filed with the Office of the Secretary of State on August 14, 2003.

TRD-200305203

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


Subchapter E. REQUIREMENTS FOR LICENSURE

22 TAC §535.51, §535.53

The Texas Real Estate Commission (TREC) proposes amendments to §535.51 concerning general requirements, and §535.53 concerning corporations and limited liability companies. The amendments to §535.51 are proposed in connection with the passage of H.B. 1508 by the 78th Legislature (2003), increasing the maximum fee for application for salesperson's license to not more than $75. The amendment to §535.51 proposes to adopt by reference two revised application forms to reflect a salesperson application fee of $70 and a renewal application for broker license by a limited liability company to amend minor typographical errors in the form. The amendments to §535.53 change the cites to the relevant statutory provisions in Chapter 1101, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1101, a nonsubstantive codification of The Real Estate License Act, and repealed Article 6573a, Texas Civil Statutes, effective June 1, 2003. The amendments are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules concerning requirements for licensure.

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

Ms. DeHay also has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be clarification of the underlying statutory authority for the rules and to update the application forms to reflect a change in fees, authorized by recent legislative amendments to the Act. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§535.51.General Requirements

(a)-(d) (No change.)

(e) The commission adopts by reference the following forms approved by the commission which are published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188:

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

(5) Application for Real Estate Salesperson License, TREC Form SL- 9 [ 8 ];

(6) Application for Late Renewal of Real Estate Salesperson License, TREC Form SLR- 8 [ 7 ];

(7) (No change.)

(8) Application for Real Estate Broker License by a Limited Liability Company, TREC Form BLLLC- 5 [ 4 ];

(9)-(10) (No change.)

§535.53.Corporations and Limited Liability Companies.

(a) For the purposes of qualifying for, maintaining, or renewing a license, a corporation or limited liability company must designate one person holding an active Texas real estate broker license to act for it. The corporation or limited liability company may not act as a broker during any period in which it has not designated a person to act for it who meets the requirements of Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ] (the Act). A broker may not act as a designated person at any time while the broker's license is inactive, expired, suspended or revoked.

(b) Section 1101.355 [ 6 ] of the Act applies only to corporations or limited liability companies which are created under the laws of this state, provided, however, that a corporation or limited liability company formed under the laws of a state other than Texas will be considered to be a Texas resident for purposes of this section if it is qualified to do business in Texas; its officers or managers, its principal place of business and all of its assets are located in Texas; and all of its officers and directors or managers and members are Texas residents.

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 August 14, 2003.

TRD-200305204

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


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

22 TAC §§535.61 - 535.66

The Texas Real Estate Commission (TREC) proposes amendments to §535.61 concerning examinations, §535.62 concerning acceptable courses of study, §535.63 concerning education and experience requirements for a license, §535.64 concerning accreditation of schools and approval of courses and instructors; §535.65 concerning changes in ownership or operation of school; presentation of courses, advertising, and records, and §535.66 concerning payment of annual fee, audits, investigations and enforcement actions. The amendments change the cites to the relevant statutory provisions in Chapter 1101, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1101, a nonsubstantive codification of The Real Estate License Act (the Act), and repealed Article 6573a, Texas Civil Statutes effective June 1, 2003. The amendment to §535.64(g) is proposed in connection with the passage of H.B. 1508 by the 78th Legislature (2003), setting the maximum fee for application for real estate instructor and proposes to adopt by reference a revised application form to reflect an instructor application fee of $25. The amendment to §535.65(i) permits a school to provide a roster of students who take alternate delivery method courses 10 days after the end of the month in which the course was taken. The amendments are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules concerning education, experience, educational programs, time periods and type of license.

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

Ms. DeHay also has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be clarification of the underlying statutory authority for the rules and to update a form to reflect a change in fees authorized by recent legislative amendments to the Act. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§535.61.Examinations.

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

(d) Applicants may use [ slide rules or ] silent, battery-operated, electronic, pocket sized calculators which are nonprogrammable. If a calculator has printout capability, the testing service must approve use of such calculator prior to the examination. Applicants may not use calculators with alphabetic keyboards.

(e)-(f) (No change.)

§535.62.Acceptable Courses of Study.

(a) Acceptable core real estate courses are those courses prescribed by Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ] (the Act), § 1101.003 [ 7(a) ] and by this section. Acceptable real estate related courses are those courses which have been determined to be acceptable by the commission. The commission will periodically publish lists of acceptable real estate related courses.

(b)-(c) (No change.)

(d) A core real estate course also must meet each of the following requirements to be accepted.

(1) The course contained the content required by Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ], (the Act), § 1101.003 [ 7(a) ], or this section.

(2)-(9) (No change.)

(e) (No change)

(f) In addition to the courses of study specified in the Act, § 1101.003 [ 7(a) ], the following shall be considered core real estate courses.

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

§535.63.Education and Experience Requirements for a License.

(a) (No change.)

(b) Education and experience requirements for a broker license.

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

(3) Under the Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ] (the Act), § 1101.357 [ 7(g) ] a person who is the designated officer of a corporation or limited liability company which is licensed as a real estate broker in another state is deemed to be a licensed real estate broker in another state. The term "state" means one of the states, territories, and possessions of the United States and any foreign country or governmental subdivision thereof. A person licensed in another state may derive the required two years' experience from periods in which the person was licensed in two or more states. [ A person whose real estate broker license is on inactive status is deemed to be a licensed real estate broker in another state. ]

(4) The commission shall require not less than 18 semester hours (270 classroom hours) in courses reflecting course titles or course descriptions in the real estate disciplines including, but not limited to, the statutory subject areas identified in the Act, § 1101.003 [ 7(a) and §7(j) ]. The commission will publish periodically guidelines as to the acceptability of related courses. [ Provided, however, that an applicant for a broker license who was licensed as a salesperson subject to the annual education requirements set forth in this Act must provide the commission satisfactory evidence of having completed 18 semester hours (270 classroom hours) of core real estate courses. ]

(c) (No change.)

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

(a) Application. A person desiring to offer educational programs or courses of study under approval of the commission pursuant to Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ], (the Act), § 1101.301 [ 7(f) ], shall file an application on forms adopted by the commission accompanied by the fee prescribed pursuant to § 1101.152(a)(10) [ 11(9) ] of the Act. The commission may request additional information from an applicant which the commission deems to be relevant and material to the consideration of an application.

(b) Standards for approval of application for accreditation. To be accredited as a school, the applicant must satisfy the commission as to the applicant's ability to administer courses with competency, honesty, trustworthiness and integrity. If the applicant proposes to employ another person, such as an independent contractor, to conduct or administer the courses, the other person must meet this standard as if the other person were the applicant. The applicant also must demonstrate that the applicant has sufficient financial resources to conduct its proposed operations on a continuing basis without risk of loss to students attending the school and that the proposed facilities will be adequate and safe for conducting classes. If the applicant is currently accredited, the applicant will be deemed to meet financial requirements imposed by this subsection once the applicant has provided the statutory bond or other security acceptable to the commission under Section 1101.301 [ 7(f) ] of the Act and there are no unsatisfied final money judgments against the applicant; otherwise, the application will be subject to the financial review provisions of this section.

(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 [ 7(f) ]), 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 five years.

(e) (No change.)

(f) Disapproval of application. If it determines that an applicant does not meet the standards for accreditation, the commission shall disapprove the application in writing. An applicant may request a hearing before the commission on the disapproval by filing a written request for hearing within 10 days following the applicant's receipt of the notice of disapproval. Following the hearing, the commission shall issue an order which, in the opinion of the commission, is appropriate in the matter concerned. Venue for any hearing conducted under this section shall be in Travis County. The disapproval and hearing are subject to the Administrative Procedure Act, Texas Government Code, Chapter 2001 [ §2001.001, et. seq. ], and to Chapter 533 of this title (relating to Practice and Procedure).

(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.

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

(4) Form ED 4- 1 [ 0 ], Instructor Application;

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

(h)-(k) (No change.)

(l) Disapproval of application. The commission may disapprove an application for approval of an instructor for failure to meet the standard imposed by subsection (g) of this section, failure to satisfy the commission as to the applicant's honesty, trustworthiness or integrity, or for any reason which would be a ground to suspend or revoke a real estate license. If an application is disapproved, the commission shall provide written notice to the applicant detailing the basis of the decision. An applicant may request a hearing before the commission by filing a written request for hearing within 10 days following the applicant's receipt of the notice of disapproval. Venue for any hearing conducted under this section is in Travis County. Appeals from application disapprovals will be conducted in the manner required by the Act, § 1101.364 [ 10 ]. Hearings are subject to the Administrative Procedure Act, Texas Government Code, Chapter 2001 [ §2001.001, et. seq. ], and to Chapter 533 of this title (relating to Practice and Procedure).

(m)-(o) (No change.)

§535.65.Changes in Ownership or Operation of School; Presentation of Courses, Advertising, and Records.

(a) Changes in Ownership or Operation. A school shall obtain the approval of the commission in advance of any material change in the operation of the school, including but not limited to, ownership, location of main office and any other locations where courses are offered, management, and course formats. A request for approval of a change of ownership will be considered as if each proposed new owner had applied for accreditation of the school, and each new owner must meet the standards imposed by §535.64 of this title (relating to Accreditation of Schools and Approval of Instructors). A school requesting approval of a change in ownership shall provide all of the following information or documents to the commission:

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

(5) a new bond in the amount of $10,000 for the proposed new owner(s), a statement from the bonding company indicating that the former bond will transfer to the proposed new owner(s), or other security acceptable to the commission under the Texas Occupations Code, Chapter 1101, ( the Act ) , § 1101.302 [ 7(f) ].

(6)-(7) (No change.)

(b)-(g) (No change.)

(h) Presentation of courses.

(1) A school shall present core real estate courses prescribed by the Act, § 1101.003 [ 7(a) ] and real estate related courses accepted by the commission in no less than 30 classroom hours of instruction. The school shall advertise and schedule a course for the full clock hours of time for which credit is awarded.

(2) (No change.)

(i) Course credit and records.

(1) Within ten days following the completion of other than an alternative delivery method [ a ] course, a school shall provide the commission with a class roster in a format approved by the commission. For an alternative delivery method course, a school shall provide a roster of those students completing the course within 10 days after the end of the month in which the student completed the course. The listing of students must be numbered and in alphabetical order, with each student's last name shown first, and must show after each student's name the final grade of either passed, failed, incomplete, or dropped, in language or symbols that can be correlated with these categories. The school shall explain any other grade concisely but clearly. The school shall list all instructors used in the course on the roster.

(A)-(D) (No change.)

(2)-(5) (No change.)

(j) (No change.)

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

(a) Payment of annual fee. A school shall pay the fee prescribed by Section 1101.152(a)(11) [ 11(a)(10) ] of Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ] (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.

(b) (No change.)

(c) Complaints, investigations and hearings. The commission shall investigate complaints against schools or instructors which allege acts constituting violations of these sections. Complaints must be in writing, and the commission may not initiate an investigation or take action against a school or instructor based on an anonymous complaint. Complaints against a school or instructor received by any division of the commission will be referred to the enforcement division for appropriate resolution. Commission employees may file written complaints against a school or instructor if course completion rosters or other documents filed with the commission provide reasonable cause to believe a violation of these sections has occurred. The school or instructor named in the complaint will be provided with a copy of the complaint. Proceedings against schools and instructors will be conducted in the manner required by the Act, § 1101.657 [ 17 ], the Administrative Procedure Act, Texas Government Code, Chapter 2001 [ §2001, et. seq. ], and Chapter 533 of this title (relating to Practice and Procedure). Venue for any hearing conducted under this section will be in Travis County.

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

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

Filed with the Office of the Secretary of State on August 14, 2003.

TRD-200305205

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


Subchapter G. MANDATORY CONTINUING EDUCATION

22 TAC §§535.71 - 535.73

The Texas Real Estate Commission (TREC) proposes amendments to §535.71 concerning mandatory continuing education: approval of providers, courses and instructors, §535.72 concerning presentation of courses, advertising, and records, and §535.73 concerning compliance and enforcement. The amendments change the cites to the relevant statutory provisions in Chapter 1101, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1101, a nonsubstantive codification of The Real Estate License Act, and repealed Article 6573a, Texas Civil Statutes effective June 1, 2003. The amendments to §535.71 propose to adopt by reference MCE form 9-6 to change a cite referenced in the form to the relevant Occupations Code provision. The amendments to §535.72 propose to change two references to the updated form proposed by §535.71. The amendments are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules concerning mandatory continuing education.

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

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

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

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

(a) The following words and terms, when used in these sections, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Act--The Real Estate License Act, Texas Occupations Code [ Civil Statutes ], Chapter 1101 [ Article 6573a ].

(2)-(11) (No change.)

(b) (No change.)

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

(1)-(7) (No change.)

(8) MCE Form 9- 6 [ 5 ] , Alternative Instructional Methods Reporting Form;

(9) MCE Form 10- 1 [ 0 ] , MCE [ Out of State Course ] Credit Request For An Out of State Course ;

(10)-(13) (No change.)

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

(f) To be approved as an instructor of any MCE course, a person must satisfy the commission as to the person's competency in the subject matter to be taught and ability to teach effectively. Except as provided in subsection (s) of this section and for instructors of single course offerings, if the person is not currently approved by the commission to teach the subject areas of the course, the person must submit Form ED 4- 1 [ 0 ], Instructor Application, and meet the requirements of §535.64 (i) [ (I) ] of this title (relating to Accreditation of Schools and Approval of Courses and Instructors). A person who has received a credential as a certified real estate instructor (CREI), distinguished real estate instructor (DREI), an instructor of the Realtor Institute (GRI), or an instructor who has received a comparable credential from another organization as determined by the commission will be deemed to have met the requirements of §535.64 (i) [ (I) ] as regards teaching experience and education. The commission may also approve an instructor for a single offering of a course. The provider must submit an MCE Form 3C-1, MCE Single Course Offering Application, and provide a resume to show that the proposed instructor is qualified to teach the subject matter.

(g) (No change.)

(h) Fees shall be established by the commission in accordance with the provisions of the Act, § 1101.152 [ 7A ], at such times as the commission deems appropriate. Fees are not refundable and must be submitted in the form of a check or money order, or, in the case of state agencies, colleges or universities, in a form of payment acceptable to the commission.

(i) (No change.)

(j) An applicant may appeal a disapproval by filing with the commission a written request for a hearing within 10 days after the receipt of the notice of disapproval. Following the hearing, the commission may sustain or withdraw the disapproval or establish conditions for the approval of a provider, course or instructor. Proceedings involving applications shall be conducted in accordance with the Administrative Procedure [ and Texas Register ]Act, Texas Government Code, Chapter 2001 [ Civil Statutes, Article 6252-13a ]. Venue for any hearing conducted under this section shall be in Travis County.

(k) A course offered by a provider to satisfy all or part of the six hours of legal topics required by the Act, § 1101.455 [ 7A ], must include one or more of the legal topics listed in the Act or approved by the commission. The commission shall periodically publish lists of additional legal topics approved for MCE credit.

(l) A course must be devoted to one or more of the subjects specified under the course titles in the Act, § 1101.003(1) and §1101.003(4)-(9) [ 7(a)(2)-(4) and §7(a)(7)-(10) ], to real estate professionalism and ethics or to other subjects approved by the commission for MCE credit. MCE courses must be presentations of relevant issues and changes within the subject areas as they apply to the practice of real estate in the current market or topics which increase or support the licensee's development of skill and competence. Courses approved by the commission for core real estate course credit provided in the Act, § 1101.356 and §1101.358 [ 7(d)-(e) ], may be accepted for satisfying MCE requirements provided the student files a course completion certificate with the commission. MCE courses may be accepted by the commission as real estate related courses for satisfying the education requirements of § 1101.356 and §1101.358 [ 7(d)-(e) ], of the Act. Courses related to technology, such as the use of personal computers, must be primarily devoted to the application of technology to the practice of the licensee.

(m)-(o) (No change.)

(p) Correspondence courses. The commission may approve a provider to offer an MCE course by correspondence subject to the following conditions:

(1) (No change.)

(2) the content of the course must satisfy the requirements of the Act, § 1101.455 [ 7A ], and these sections;

(3)-(4) (No change.)

(q)-(s) (No change.)

§535.72.Mandatory Continuing Education: Presentation of Courses, Advertising and Records.

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

(d) In a course offered by correspondence or alternative delivery method, the provider shall award the student credit for the course upon completion of the course examination and all other requirements for credit and shall report the awarding of credit to the commission. Course credit must be reported either by the provider filing a completed MCE Form 9- 6 [ 5 ], signed by the student, or submitting the information contained in MCE Form 9- 6 [ 5 ] by electronic means acceptable to the commission. If the provider chooses to use an electronic reporting process, the process must ensure that only students who complete the course are reported to the commission as receiving course credit and that the process does not compromise the security of commission records.

(e)-(o) (No change.)

§535.73.Compliance and Enforcement.

(a) (No change.)

(b) Complaints received by the MCE section of the education division of the commission or by any other division of the commission shall be referred to the enforcement division for appropriate resolution. The provider or instructor named in the complaint shall be provided with a copy of the complaint. Proceedings involving MCE providers or instructors shall be conducted in accordance with the Administrative Procedure [ and Texas Register ] Act, Texas Government Code, Chapter 2001 [ Article 6252-13a, Texas Civil Statutes ] and the commission's general rules of practice and procedure. Venue for any hearing conducted under this section shall be in Travis County.

(c)-(f) (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 August 14, 2003.

TRD-200305206

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


Subchapter I. LICENSES

22 TAC §535.91

The Texas Real Estate Commission (TREC) proposes amendments to §535.91 concerning renewal applications. The amendments to §535.91 propose to adopt by reference two new application renewal forms to modify and update the forms for clarity. The current renewal form is mailed to real estate salespersons and brokers to use for a timely renewal of their licenses. The commission proposes separate renewal forms for brokers and salespersons to provide more accurate and individualized information to each license type. The amendments also change the cites in the rule to the relevant statutory provisions in Chapter 1101, Texas Occupations Code. House Bill 2813, 77th Legislature (2001), added Chapter 1101, a nonsubstantive codification of The Real Estate License Act, and repealed Article 6573a, Texas Civil Statutes effective June 1, 2003.

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

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

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§535.91.Renewal Applications.

(a) Each real estate license expires on the date shown on the face of the license certificate issued to the licensee. The licensee has the responsibility to apply for renewal of a license by making proper application, paying the fee set by the commission and completing mandatory continuing education (MCE) courses within the time periods required by the Act, § 1101.455 [ 7A ]. The commission shall mail a renewal application form for an active broker or an inactive licensee to the last known permanent mailing address of the broker or licensee as shown in the commission's computerized records. The commission shall mail a renewal application form for an active salesperson to the permanent mailing address of the salesperson's sponsoring broker. The commission shall mail the form three months before the expiration of the current license. Each licensee shall furnish a permanent mailing address to the commission and report all subsequent address changes within 10 days after a change of address. If a licensee fails to provide a permanent mailing address, the last known mailing address provided by the licensee will be deemed to be the licensee's permanent mailing address. Applications must be made on the current renewal application form approved by the commission accompanied by the required fee. Failure to receive a license renewal application form does not relieve a licensee of the obligation to obtain the appropriate form and to apply for renewal of a license. A licensee shall provide information requested by the commission in connection with an application to renew a license within 30 days after the commission requests the information. Failure to provide information requested by the commission in connection with a renewal application within the required time is grounds for disciplinary action under the Act, § 1101.656 [ 15B(b) ].

(b) The Texas Real Estate Commission adopts by reference Renewal Application Forms SR 1-0 and BR 1-0 [ Form 1-3 ], approved by the commission in 2003 [ 2000 ]. These forms are [ This form is ] published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

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 August 14, 2003.

TRD-200305207

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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 paid by licensees and applicants.

The amendments to §535.101 are proposed in connection with the passage of H.B. 1508 by the 78th Legislature (2003), increasing various fees, including setting a maximum fee of $75 for the filing of an original application for a real estate salesperson license, setting a maximum fee of $20 for preparing a license history, and setting a new maximum fee of $40 for the filing of a core or continuing education instructor application. Section 535.101 would be amended to reflect a $70 fee for a salesperson application, a $20 fee for preparing a license history certification, and a $25 fee for the filing of a core or continuing education instructor application that would be effective on or after November 1, 2003.

Alan Waters, Staff Services Director, has determined that for the first five-year period the section is in effect there will be fiscal implications for the state as a result of enforcing or administering the section. Increasing the original application for salesperson license fee to $70 will have a revenue neutral effect because the current $20 sponsorship fee required of a salesperson to go from inactive to active status once licensure is obtained from an original application will be eliminated by the amendment to Section 1101.152(c). Subsection (c) prohibits the commission from charging a fee to a salesperson or broker for filing a sponsorship request in conjunction with an inactive license issued to a salesperson. The fiscal impact of increasing the license history certification fee to $20 will be 800 license history certifications at an additional $10 each producing $8,000 additional revenue per fiscal year. Section 535.101(b)(14) proposes to set a fee of $25 for the filing of a core or continuing education instructor application. Mr. Waters estimates that the combined additional revenue per fiscal year will be $12,500 for 2004 (500 applications), $10,000 for 2005 (400 applications), $7,500 for 2006 (300 applications), $20,000 for 2007 (800 applications), and $20,000 for 2008 (800 applications). There are no anticipated fiscal implications for units of local government. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the section.

Ms. DeHay has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the section will be conforming TREC rules to recent statutory changes to the Act. Mr. Waters has determined that the anticipated economic cost to persons who are required to comply with the proposed section is the payment of the required statutory increase in fees. The increase in fees will be an additional $20 for the filing of a salesperson application, an additional $10 for the filing of a license history certification, and a new fee of $25 for the filing of a core or continuing education instructor application.

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§535.101.Fees.

(a) (No change.)

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

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

(3) a fee of $ 70 [ 50 ] for the filing of an original application for a real estate salesperson license;

(4)-(11) (No change.)

(12) a fee of $ 20 [ 10 ] for preparing a license history; [ and ]

(13) a fee of $25 for the filing of an application for a moral character determination ; and [ . ]

(14) a fee of $25 for the filing of an instructor application.

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 August 14, 2003.

TRD-200305208

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


Subchapter K. PLACE OF BUSINESS

22 TAC §535.113

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

The Texas Real Estate Commission (TREC) proposes the repeal of §535.113, concerning display of licenses.

The repeal is proposed in connection with the passage of H.B. 1508 by the 78th Legislature (2003), which, in part, repealed the statutory provision that required a broker to display the broker's and the sponsored salespersons' licenses at the broker's place of business. Residential locators are still required to display their licenses.

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

Ms. DeHay also has determined that for each year of the first five years the repeal as proposed is in effect the public benefit anticipated as a result of enforcing the repeal will be to conform the rule to recent statutory changes. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed repeal.

§535.113.Display of Licenses.

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 August 14, 2003.

TRD-200305209

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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


Chapter 541. RULES RELATING TO THE PROVISIONS OF TEXAS OCCUPATIONS CODE, CHAPTER 53

22 TAC §541.1

The Texas Real Estate Commission (TREC) proposes amendments to chapter 541 concerning rules relating to the provisions of Texas Occupations Code Chapter 53 and §541.1 concerning criminal offense guidelines.

The amendments change the cites to the relevant statutory provisions of Chapter 53, a nonsubstantive codification of article 6252-13c, Texas Civil Statutes effective September 1, 1999. The amendments are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules concerning criminal offense guidelines.

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

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

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

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

The statute affected by this proposal is Texas Occupations Code, Chapter 1101.

No other statute, code or article is affected by the proposed amendments.

§541.1.Criminal Offense Guidelines.

(a) For the purposes of Texas Occupations Code, Chapter 53 [ Civil Statutes Article 6252-13c ], the Texas Real Estate Commission considers the following felonies or misdemeanors to be criminal offenses which may be directly related to the duties and responsibilities of the occupation of real estate broker, real estate salesperson, easement or right-of-way agent, professional inspector, real estate inspector or apprentice inspector for the reason that the commission of the following criminal offenses tends to demonstrate inability to represent the interest of another with honesty, trustworthiness and integrity:

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

(b)-(d) (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 August 14, 2003.

TRD-200305210

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2003

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