TITLE 22.EXAMINING BOARDS

Part 10. TEXAS FUNERAL SERVICE COMMISSION

Chapter 201. LICENSING AND ENFORCEMENT--PRACTICE AND PROCEDURE

22 TAC §201.16

The Texas Funeral Service Commission proposes an amendment to Title 22, Texas Administrative Code, Chapter 201, §201.16, concerning Memorandum of Understanding with the Texas Department of Health.

The amendment to §201.16 is proposed because subsection (d) delineates responsibility between the Commission and Texas Department of Health (TDH). The proposed amendment is a restatement of the Commission's enforcement authority over certain violations of the Health and Safety Code and clarifies that the Commission has authority to take disciplinary action for certain violations of TDH rules.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the amendment is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed amendment.

Mr. Robbins further has determined that for each year of the first five-year period the amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be eliminating redundancy. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with the amendment will be no more or less than the costs to the individuals under §201.16 before this amendment and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The amendment to §201.16 is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§201.16.Memorandum of Understanding with the Texas Department of Health.

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

(d) Delegation of responsibilities. The Department and TFSC agree that the agencies shall have the following responsibilities.

(1) (No change.)

(2) The Texas Funeral Service Commission (TFSC) shall have primary responsibility for the enforcement of the laws, rules, and policies governing the licensing of funeral directors, embalmers, funeral and commercial embalming establishments. Except as may be otherwise provided by law, the TFSC has authority:

(A) (No change.)

(B) to assess an administrative penalty or to reprimand, revoke, suspend, probate, deny or impose any combination of sanctions against a licensee in accordance with Texas Occupations Code Chapter 651, if the licensee has violated Chapter 193 or 195 of the Code or 25 TAC Chapter 181 of the Department rules [ before a hearing, assess an administrative penalty or after a hearing in accordance with Texas Occupations Code Chapter 651, to reprimand, revoke, suspend, or probate the suspension of a license, impose any combination of the sanctions against a licensed funeral director or funeral establishment if the licensee has violated Chapter 193 of the Code ];

(3) (No change.)

(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 June 10, 2004.

TRD-200403819

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


Chapter 203. LICENSING AND ENFORCEMENT--SPECIFIC SUBSTANTIVE RULES

22 TAC §203.6

The Texas Funeral Service Commission proposes an amendment to Title 22, Texas Administrative Code, Chapter 203, §203.6, concerning Provisional Licensees.

The amendment to §203.6 is proposed to assist staff in dealing with day-to-day problems that arise from the provisional program. The amendments also clarify instances when a licensee will need to restart the provisional program.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the amendment is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed amendment.

Mr. Robbins further has determined that for each year of the first five-year period the amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be eliminating redundancy. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with the amendment will be no more or less than the costs to the individuals under §203.6 before this amendment and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The amendment to §203.6 is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§203.6.Provisional Licensees.

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

(c) The provisional licensure period is a minimum of 12 and a maximum of 24 consecutive months, beginning on the date of the first training report filed with the commission. The licensure period may be [ unless ] extended pursuant to an exit interview . The [ , and the ] provisional licensure programs for funeral director and embalmer may be served simultaneously. If a provisional licensee does not complete a program in the prescribed time, the provisional licensee will be cancelled and may be reinstated only upon petition to the commission after retaking and passing the applicable examinations.

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

(f) A funeral director provisional licensee shall sign and affix the licensee's license number on all funeral purchase agreements for which credit is claimed in a case report.

(g) An embalmer provisional licensee shall submit the authorization to embalm form, the instructor's embalming affidavit, and the embalming case report for which credit is claimed in a training report.

(h) Provisional licensees shall submit a copy of the authorization to cremate for each cremation case for which credit is claimed in a training report.

(i) Provisional licensees shall retain copies of all training reports with supporting documentation for all case credit claimed for 2 years from the date of the training report.

(j) [ (f) ] A provisional embalmer shall assist in the embalming of six autopsied remains during the course of the provisional embalmer program. Autopsied cases completed while in an accredited mortuary college may count toward the six required autopsy cases if the college certifies to the commission that the cases were performed.

(k) [ (g) ] Provisional licensees must file with the commission a case report for each month of the provisional license program by the 10th day of the next month. Case report submission post marked after the 10th day of the month will not be accepted. The licensee will not be given credit for those case reports. In any month in which the provisional licensee does not perform a case, the provisional licensee must file a "notwithstanding" report with the commission, and that month will not count toward the 12 required months. If a provisional licensee files "notwithstanding" reports for two consecutive months, the licensee is required to restart the provisional licensee program. Similarly, provisional licensees who fail to file a case report within 90 days after receiving the provisional license shall submit a new provisional license application and pay a new provisional license fee [ commission may start the provisional licensee's program over ].

(l) [ (h) ] It is the responsibility of the sponsor of the provisional, the funeral director in charge of the establishment, and the provisional licensee to schedule case work sufficient for reporting in the provisional program. Penalties for failure to file case reports in a timely manner may lie against the sponsor of the provisional, the funeral director in charge of the establishment, and the provisional licensee. The commission may start a provisional licensure program over if the provisional licensee fails on two occasions to timely file a case report.

(m) [ (i) ] Each case report shall be certified by the licensee under whom the provisional licensee performed the work. The supervising licensee and the provisional licensee both are subject to disciplinary action if [ in ] the information submitted is not true and accurate.

(n) [ (j) ] Upon completion of a minimum of 12 months and 60 required cases of the provisional license program, each provisional licensee must appear before at least one member of the commission for an oral exit interview in order to demonstrate proficiency related to the duties of a funeral director and/or embalmer. Any person not recommended for licensure must undergo further exit interviews and extensions until recommended for licensure.

(o) [ (k) ] Before a provisional licensee is issued an embalmer's license, the provisional licensee must take and pass the National Board Examination with at least a grade of 75% on both portions of the test. Before a provisional licensee is issued a funeral director's license, the provisional licensee must take and pass the State Board Examination with at least a grade of 75%. Both tests are administered by the International Conference of Funeral Service Examining Boards, Inc.

(p) [ (l) ] Before a provisional licensee is issued a regular license, a provisional licensee must take and pass the Texas State Mortuary Law Exam with at least a grade of 75%. The test is administered by the commission.

(q) [ (m) ] If a provisional licensee leaves the employment of a funeral director or embalmer, the funeral director or embalmer must file an affidavit as described in Texas Occupations Code, Section 651.304(d) within fifteen (15) days of employment termination.

(r) [ (n) ] A student enrolled in an accredited mortuary college must have the college forward a letter of enrollment to the commission prior to entering the provisional program.

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403818

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


22 TAC §203.22

The Texas Funeral Service Commission proposes an amendment to Title 22, Texas Administrative Code, Chapter 203, §203.22, concerning Required Documentation for Embalming.

The amendment to §203.22 is proposed to require mortuary schools to retain embalming case reports and require establishments and provisional licensees to retain embalming documents for two years.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the amendment is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed amendment.

Mr. Robbins further has determined that for each year of the first five-year period the amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be eliminating redundancy. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with the amendment will be no more or less than the costs to the individuals under §203.22 before this amendment and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The amendment to §203.22 is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§203.22.Required Documentation for Embalming.

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

(g) A copy of the Embalming Authorization and the Instructors Affidavit case report shall [ should ] be retained by the Instructor of the school or college according to section 651.407 Texas Occupations Code. The funeral establishment or embalming establishment and provisional licensee shall [ should ] retain the documents for a minimum of two years [ or until the provisional becomes a regular licensee ].

(h) - (j) (No change.)

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403817

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


22 TAC §203.26, §203.34

(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 Funeral Service Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Funeral Service Commission proposes the repeal of §203.26, concerning Licensure of Funeral Directors and Embalmers and §203.34, concerning Reinstatement of License.

The proposed repeal of §203.26 and §203.34 is necessary in order to propose new §203.26. The new §203.26 will bring into a single rule the subject matter now covered by two rules. Further, new §203.26 is clearer to understand than its predecessor.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the repeal is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed repeal.

Mr. Robbins further has determined that for each year of the first five-year period the repeal is in effect, the public benefit anticipated as a result of enforcing the repeal of §203.26 and §203.34 will be eliminating redundancy. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with the repeal will be no more or less than the costs to the individuals under §203.26 and §203.34 before the repeal and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The repeal of §203.26 and §203.34 is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§203.26.Licensure of Funeral Directors and Embalmers.

§203.34.Reinstatement of License.

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403822

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


22 TAC §203.26

The Texas Funeral Service Commission proposes new Title 22, Texas Administrative Code, Chapter 203, §203.26, Funeral Directors and Embalmers License Requirements and Procedure. The proposed new §203.26 will bring into a single rule the subject matter that was previously covered by §203.26 and §203.34 which are simultaneously proposed for repeal in this issue of the Texas Register . Further, new §203.26 is clearer to understand than its predecessor.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the new section is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed section.

Mr. Robbins further has determined that for each year of the first five-year period the new section is in effect, the public benefits anticipated as a result of enforcing the section will be the clarification of chapel requirements for funeral establishments. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with the new section will be no more nor less than the costs to the individuals before this new section becomes effective and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The new §203.26 is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§203.26.Funeral Directors and Embalmers License Requirements and Procedure.

(a) License Required: A person may not engage in funeral directing or embalming in this state without holding a license issued by the Commission, unless the person is a mortuary student acting under the supervision and direction of a licensed funeral director or embalmer.

(b) Initial License and Fees:

(1) An applicant for an initial license must meet the eligibility requirements of Texas Occupations Code, §651.253.

(2) Initial licenses issued after March 5, 2003 expire on the last day of the licensee's birth month not less than one year nor more than two years following the license issue date. The monthly fee for the initial license, payable in a lump sum, is equal to one twenty-fourth (1/24) of the biennial license fee.

(3) The renewal period of a license issued under subsection (a) of this section is two years beginning on the 1st day of the month following the licensee's birth month.

(4) The licensing fee shall accompany the application for licensure. The amount of the licensing and renewal fees are posted on the commission's website at www.tfsc.state.tx.us.

(c) Outstanding Licenses

(1) Individual licenses outstanding on March 5, 2003 expire on May 31 or November 30 two years from their issue date.

(2) The first renewal period for a license described in paragraph (1) of this subsection is the number of months from its expiration date to the last day of the licensee's birth month not less than one year nor more than two years following the license issue date. The monthly fee for the initial license, payable in a lump sum, is equal to one twenty-fourth (1/24) the biennial license fee.

(3) A license described in paragraph (2) of this subsection must be renewed within two years following the last day of the licensee's birth month and biennially thereafter.

(d) Renewal Procedures and Conditions

(1) A license may be renewed prior to its expiration if the licensee has paid the renewal fee and met the requirements of §203.30 of this chapter (relating to Continuing Education).

(2) A person whose license is expired for more than 90 days or less may renew the license by meeting the requirements of this subsection, except that the renewal fee is 1-1/2 times the amount of the normal renewal fee

(e) A person whose license is expired for more than 90 days but less than one year may renew the license by meeting the requirements of subsection (d) of this section, except that the renewal fee is two times the amount of the normal renewal fee.

(f) A person whose license is expired for one year or more may not renew the license. The person may obtain a new license by again meeting the requirements, including the examination requirements, of Texas Occupations Code, §651.253 and the payment of the appropriate application fee.

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403825

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


22 TAC §203.36

The Texas Funeral Service Commission proposes new Title 22, Texas Administrative Code, Chapter 203, §203.36, concerning Temporary Operation Authorization--Damaged Establishments. New §203.36 provides a procedure for granting a temporary operation authorization to funeral or crematory establishments that are damaged by natural disasters.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the new section is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed section.

Mr. Robbins further has determined that for each year of the first five-year period the new section is in effect, the public benefits anticipated as a result of enforcing the section will be the clarification of chapel requirements for funeral establishments. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with this new section will be no more nor less than the costs to the individuals before this new section becomes effective and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The new §203.36 is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§203.36.Temporary Operation Authorization--Damaged Establishments.

(a) The commission may grant a temporary operation authorization to a licensed funeral or crematory establishment to operate at a temporary location if the establishment is damaged by fire, flood, or other natural disaster.

(b) The temporary location must meet the all requirements for funeral and crematory establishments under Texas Occupations Code, Chapter 651 and these rules.

(c) The application for a temporary operation authorization shall be in writing, shall detail the circumstances which prevent the conduct of business at the licensed location, and shall provide an estimated date by which the licensed location will be made ready for operation.

(d) All funeral services provided to the public during any grace period shall be performed by or under the supervision of a licensed funeral director.

(e) All crematory services shall be performed by a person certified to operate the cremation chamber whose name is on file with the commission as required by Texas Occupations Code, §651.657 and §205.3(a) of this title (relating to Crematory License Requirement and Procedure).

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403826

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


Chapter 205. REGISTRATION AND ENFORCEMENT--SPECIFIC SUBSTANTIVE RULES

22 TAC §§205.1 - 205.3

(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 Funeral Service Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Funeral Service Commission proposes the repeal of Title 22, Part 10, Chapter 205, §§205.1 - 205.3, concerning Registration of Cemeteries and Crematories.

The proposed repeal of Chapter 205 and the proposed new Chapter 205 will include in one rule the licensing and fee requirements for cemeteries and crematories and the crematory rules the Commission is authorized to adopt under House Bill 1538, 78th Legislature, Regular Session.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the repeal is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed repeal.

Mr. Robbins further has determined that for each year of the first five-year period the repeal is in effect, the public benefit anticipated as a result of enforcing the repeal will be eliminating redundancy. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with the repeal will be no more or less than the costs to the individuals under Chapter 205 before the repeal and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The repeal of §§205.1 - 205.3 is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§205.1.Registration of Cemeteries.

§205.2.Fees for Registration of Cemeteries.

§205.3.Fees for Licensing of Crematory Establishment.

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403821

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


Chapter 205. CEMETERIES AND CREMATORIES

22 TAC §§205.1, 205.3, 205.5, 205.7, 205.9, 205.11, 205.13, 205.15

The Texas Funeral Service Commission proposes new Title 22, Texas Administrative Code, Chapter 205, §§205.1, 205.3, 205.5, 205.7, 205.9, 205.11, 205.13, and 205.15, concerning Cemeteries and Crematories. The new chapter is proposed because the Commission is authorized to adopt rules under House Bill 1538 78th Legislature, Regular Session.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the new sections are in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed sections.

Mr. Robbins further has determined that for each year of the first five-year period the new sections are in effect, the public benefit anticipated as a result of enforcing the sections will be the implementation of a policy encouraging the use of alternative dispute resolution procedures for the resolution of internal and external disputes. There will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with the new sections will be no more nor less than the costs to the individuals before the new sections become effective and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The new sections are proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§205.1.Cemetery License Requirements and Procedure.

(a) All cemeteries that conduct business, other than those described in Texas Occupations Code, §651.353, are required to be licensed by the commission.

(b) The licensing fee for cemeteries shall accompany the application for licensure. The amount of the licensing and renewal fees are posted on the commission's website at www.tfsc.state.tx.us.

(c) A license is for one year and is automatically renewed upon timely receipt of the renewal fee by the commission.

(d) A cemetery that renews its license on or before the 30th day following the license expiration date shall pay, in addition to the renewal fee, a late payment penalty equal in amount to the renewal fee.

(e) A cemetery that fails to renew its license on or before the 30th day following the license renewal date may not renew the license and may not operate as a cemetery until receipt of a new license.

(f) The license of a perpetual care cemetery is automatically renewed upon receipt by the commission of a timely filed renewal form.

§205.3.Crematory License Requirement and Procedure.

(a) The crematory establishment license application shall be on a form furnished by the commission and shall contain all information required by Texas Occupations Code, §651.657, including:

(1) a statement that all operators of the cremation chamber are certified by a reputable organization approved by the Commission;

(2) the names of all persons certified to operate the cremation chamber and;

(3) must be submitted with all required documentation prior to the Commission inspection and payment of licensing fees.

(b) The establishment shall submit the licensing fee after it has passed inspection. The amount of the licensing and renewal fees are posted on the commission's website at www.tfsc.state.tx.us.

(c) A license is for one year.

(d) The license may be renewed by filing with the commission a renewal application accompanied by the renewal fee and the Crematory Annual Report required by Texas Occupations Code, §651.658(a)(1) and §205.7 of this chapter (relating to Crematory Annual Report, Extensions for Good Cause, and Late Fees).

(e) The renewal application must contain the information required by Texas Occupations Code §651.657 and subsection (a) of this section or a statement that the information previously furnished has not changed.

(f) The commission may not renew an application until the applicant has met the requirements of Texas Occupations Code §651.658(a).

(g) A crematory that fails to renew its license by its renewal date shall pay, in addition to the renewal fee, a late payment penalty equal in amount to the renewal fee.

(h) The license that is not renewed within 30 days of its expiration date may not be renewed. In this circumstance a new license is required.

§205.5.Acceptance of Remains.

A crematory not licensed as a funeral establishment may not accept deceased human remains for cremation until cremation is authorized by a justice of the peace or a medical examiner in the county in which the death occurred.

§205.7.Waiting Period for Cremation.

Cremation may not occur sooner than 48 hours following the time of death indicated on the death certificate unless the waiting period is waived in writing by a justice of the peace, a medical examiner in the county in which the death occurred or a court order.

§205.9.Crematory Annual Report, Extensions for Good Cause, and Late Fees.

(a) The annual report required by Texas Occupation Code §651.658 shall cover the period from January 1 to December 31.

(b) The report must be postmarked by January 30 of the following year.

(c) The commission shall grant an extension for filing the annual report for no more than 60 days upon proof of good cause.

(d) Good cause for purposes Texas Occupation Code §651.658(e) and subsection (c) of this section is an event beyond the control of the crematory owner or operator that prevents the owner or operator from timely completing and filing the annual report.

(e) Requests for extensions of time to file the annual report based on good cause will not be approved if received by the commission later than January 4 following the end of the year for which the report is due.

(f) A $100 late fee will be imposed for each day a crematory establishment fails to submit the annual report if the commission has not granted an extension of time for filing the report. The commission has no authority to waive or reduce the late fee.

§205.11.Prerequisites for Cremation.

(a) Health and Safety Code §715.051 provides that a crematory may cremate deceased human remains upon receipt of a cremation authorization form signed an authorizing agent and either a death certificate or a burial transit permit issued by a local registrar reflecting that the deceased human remains may be cremated.

(b) As a practical matter, however, three documents are required to accomplish the cremation of deceased human remains:

(1) a cremation authorization form;

(2) a death certificate or other death record; and

(3) a burial transit permit; a burial transit permit is not required under Texas Occupations Code Chapter 651 but the Texas Department of Health (TDH) remains authorized to regulate the transportation of dead bodies under Health and Safety Code §694.001. TDH 25 TAC §181.2 (relating to Assuming Custody of Body) requires a funeral director or person acting as such to obtain a burial transit permit from the local registrar if a body is to be cremated.

§205.13.Written Waiver of Identification Required.

A waiver of a right of identification under Health and Safety Code §715.104(b) is valid only if given in writing.

§205.15.Commingling Limitations.

A crematory may not simultaneously cremate deceased human remains and any other materials or remains unless the other materials or remains are specifically disclosed on the cremation authorization form.

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403823

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


Chapter 206. GUARANTEED STUDENT LOANS

22 TAC §206.1

The Texas Funeral Service Commission proposes new Title 22, Texas Administrative Code, Chapter 206, §206.1, concerning Guaranteed Student Loans. The new section is proposed because Texas Education Code §57.491 directs all regulatory licensing agencies to adopt rules on this subject.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the new section is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed section.

Mr. Robbins further has determined that for each year of the first five-year period the new section is in effect, there will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with this section will be no more nor less than the costs to the individuals before this new section becomes effective and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217 Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The new section is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§206.1.Default and Repayment Agreements.

Applicability of Education Code. All individual license renewals are subject Texas Education Code, §57.491 relating to defaults on guaranteed student loans and repayment agreements.

(1) The commission may issue an initial license to a person who is in default on a guaranteed student loan but shall not renew the license, unless the applicant furnishes a certification from the Texas Guaranteed Student Loan Corporation that the licensee has entered into a repayment plan on the loan or that the licensee is no longer in default on the loan.

(2) The commission shall not renew the license of a person who is in default on a guaranteed student loan, unless the renewal is the first renewal following the Commission's receipt of notice of the licensee's default or the licensee has furnished the certification described in paragraph (1) of this section.

(3) The commission shall not renew the license of a person who defaults on a repayment agreement on a defaulted loan, unless the Commission receives a certification that the licensee has entered into another repayment agreement or that the licensee is no longer in default.

(4) The commission shall give the licensee an opportunity for hearing before taking action concerning the non-renewal of a license for default on a guaranteed student loan or a repayment agreement.

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403820

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


Chapter 209. ETHICAL STANDARDS FOR PERSONS LICENSED BY THE COMMISSION

22 TAC §209.1

The Texas Funeral Service Commission proposes new Title 22, Texas Administrative Code, Chapter 209, §209.1, concerning Ethical Standards for Persons Licensed by the Commission. The new section is proposed because the Commission is authorized to develop ethic standards by §6 of House Bill 1538, 78th Legislature, Regular Session.

O. C. "Chet" Robbins, Executive Director, has determined that for the first five-year period the new section is in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the proposed section.

Mr. Robbins further has determined that for each year of the first five-year period the new section is in effect, there will be no effect on large, small or micro-businesses. The anticipated economic costs to persons who are required to comply with this section will be no more nor less than the costs to the individuals before this new section becomes effective and there is no impact on local employment.

Comments on the proposal may be submitted to Mr. Robbins at P.O. Box 12217, Capital Station, Austin, Texas 78711-1440, (512) 479-5064 (fax), or electronically to chet.robbins@tfsc.state.tx.us.

The new section is proposed under Texas Occupations Code, §651.152. The commission interprets §651.152 as authorizing it to adopt rules as necessary to administer Chapter 651.

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

§209.1.Ethical Standards.

(a) Persons regulated by the Commission should, as applicable:

(1) provide consumers with information concerning funerals, cremations, burials, pricing, merchandise, and services;

(2) make funeral services available in as wide a range of prices as will meet the needs of all segments of the community, regardless of gender, age, ethnicity, religion, sexual orientation, physical or mental disabilities, veteran status, or any other protected class of individuals.

(3) extend to consumers the privilege of inspecting and considering all services available;

(4) maintain qualified and competent staff, required materials, adequate facilities, and equipment required for contracted services;

(5) accurately communicate to consumers the terms of at-need and pre-need arrangements;

(6) honestly represent to consumers the need for an quality of goods and services;

(7) respect consumers' right of personal choice and decisions with regard to making arrangements;

(8) respect consumers' confidentiality;

(9) honor all agreements made with the consumer for funeral, cemetery, or cremation services; and

(10) avoid conflicts involving the regulated person's interest and the consumer's interest;

(11) maintain a workplace environment that promotes the health and safety to employees and consumers;

(12) show dignity, respect, and courtesy in caring for human remains and demonstrate compassion for the bereaved by conducting themselves in a trusting manner.

(b) A person regulated by the Commission shall not:

(1) engage in advertising that misleads or deceives the public or falsely represent that a person is licensed in violation of Texas Occupations Code, §651.453;

(2) solicit customers or business in violation of Texas Occupations Code, §651.454;

(3) use false or misleading statements regarding funeral merchandise, or funeral, cemetery, or cremation services in violation of Texas Occupations Code, §651.455;

(4) engage in conduct regarding custody of a dead human body or involving embalming in violation of Texas Occupations Code, §651.456 or §651.457; or

(5) engage in conduct that violates Texas Occupations Code §651.459; or

(c) A facility or establishment regulated by the Commission shall display these ethical standards in a conspicuous location in an area that is open to the general public.

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

Filed with the Office of the Secretary of State on June 10, 2004.

TRD-200403824

O. C. Robbins

Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-2474


Part 14. TEXAS OPTOMETRY BOARD

Chapter 277. PRACTICE AND PROCEDURE

22 TAC §277.2

The Texas Optometry Board proposes amendments to §277.2 to include specific procedures for imposing a default judgment against a party in a contested case who does not appear at a scheduled informal conference or administrative hearing. The additional procedures insure that the party in a contested case receives adequate notice. The proposed amendment clarifies the agency's ability to issue a default judgment as permitted by the Administrative Procedures Act and the rules of the State Office of Administrative Hearings, 1 TAC Chapter 155.

Chris Kloeris, Executive Director of the Texas Optometry Board, has determined that for the first five-year period the amendments are in effect, there will be no fiscal implications for state and local governments as a result of enforcing or administering the amendments.

Chris Kloeris also has determined that for each of the first five years the amendments are in effect, the public benefit anticipated as a result of enforcing the amendments is that the agency will be able to dispose of actions where the party in a contested case does not appear while insuring that proper notice is provided. It has been determined that the amendments do not impose additional costs to the persons affected by the rule since the amendments do not impose any additional duties on defaulting parties. No additional costs are foreseen for small or micro business. Comments regarding possible costs for those required to comply with the amendments may be submitted to the agency.

Comments on the proposal may be submitted to Chris Kloeris, Executive Director, Texas Optometry Board, 333 Guadalupe Street, Suite 2-420, Austin, Texas 78701-3942. The deadline for furnishing comments is 30 days after publication in the Texas Register .

The amendments are proposed under the Texas Optometry Act, Texas Occupations Code, §§351.151, 351.507, and 351.503, and Texas Government Code §2001.056 and §2003.050.

The Texas Optometry Board interprets §351.151 as authorizing the adoption of procedural and substantive rules for the regulation of the optometric profession. The agency interprets §351.507 as requiring rules regarding informal conferences and the informal disposition of contested cases, §351.503 to permit a party in a contested case to obtain an administrative hearing, §2001.056 as authorizing default judgments in informal conferences and §2003.050 as requiring the State Office of Administrative Hearings to adopt procedural rules.

No other sections are affected by the amendments.

§277.2.Disciplinary Proceedings.

(a) (No change.)

(b) Informal disposition of contested case. Prior to the imposition of disciplinary sanctions against a license, the licensee shall be offered an opportunity to attend an informal conference and show compliance with all requirements of law, in accordance with the APA.

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

(3) Notice of the informal conference shall include:

(A) a statement of the legal authority, jurisdiction, and alleged conduct under which the enforcement action is based, with a reference to the particular section(s) of the statutes and rules involved;

(B) an offer for the licensee to attend an informal conference at a specified time and place and show compliance with all requirements of law, in accordance with Chapter 2001 of the Administrative Procedure Act;

(C) a statement that the licensee has an opportunity for a hearing before the State Office of Administrative Hearings on the allegations; and

(D) the following statement in capital letters in 12 point boldface type: FAILURE TO RESPOND TO THE ALLEGATIONS, BY EITHER PERSONAL APPEARANCE AT THE INFORMAL CONFERENCE OR IN WRITING, WILL RESULT IN THE ALLEGATIONS BEING ADMITTED AS TRUE AND THE RECOMMENDED SANCTION MADE AT THE INFORMAL CONFERENCE BEING GRANTED BY DEFAULT. The notice shall be served by delivering a copy to the licensee in person, by courier receipted delivery, or by certified or registered mail, return receipt requested, to the licensee's last known address of record as shown by agency records, not less than 10 days prior to the date of the conference.

(4) The licensee shall respond by either personal appearance at the informal conference or in writing no later than the date of the informal conference. If the licensee chooses to respond in writing, the response shall admit or deny each of the allegations. If the licensee intends to deny only a part of an allegation, the licensee shall specify so much of it is true and shall deny only the remainder. The response shall also include any other matter, whether of law or fact, upon which the licensee intends to rely for his or her defense. If the licensee fails to respond to the notice specified in this subsection, the matter will be considered as a default case and the licensee will be deemed to have:

(A) admitted all the factual allegations in the notice specified in this subsection;

(B) waived the opportunity to show compliance with the law;

(C) waived notice of a hearing;

(D) waived the opportunity for a hearing on the allegations; and

(E) waived objection to the recommended sanctions made at the informal conference.

(5) The Investigation-Enforcement Committee may recommend that the board enter a default order, based upon the allegations set out in the notice specified in this subsection, adopting the recommended sanctions made at the informal conference. Upon consideration of the case, the Board may enter a default order under §2001.056 of the Administrative Procedure Act or direct that the case be set for a hearing at the State Office of Administrative Hearings.

(6) Any default judgment granted under this section will be entered on the basis of the factual allegations in the notice and upon proof of proper notice to the licensee's address of record as specified in paragraph (3) of this subsection.

(7) A motion for rehearing which requests that the Board vacate its default order under this section shall be granted if the motion presents convincing evidence that the failure to respond to the notice specified in this subsection was not intentional or the result of conscious indifference, but due to accident or mistake, provided that the licensee has a meritorious defense to the factual allegations contained in the notice specified in this subsection and the granting thereof will not result in delay or injury to the public or the Board.

(8) [ (3) ] Informal conferences shall not be deemed to be meetings of the board and no formal record of the proceedings at the conferences shall be made or maintained.

(9) [ (4) ] Any proposed order shall be presented to the board for its review. At the conclusion of its review, the board shall approve, amend, or disapprove the proposed order. Should the board approve the proposed order, the appropriate notation shall be made in the minutes of the board and the proposed order shall be entered as an official action of the board. Should the board amend the proposed order, the executive director shall contact the respondent to seek concurrence. If the respondent does not concur, the provisions of the next sentence shall apply. Should the board disapprove the proposed order, the case shall be rescheduled for purposes of reaching an agreed order or in the alternative forwarded to the State Office of Administrative Hearings for formal action.

(c) (No change.)

(d) If, after receiving notice of hearing, a party fails to appear in person or by representative on the day and time set for hearing, the Administrative Law Judge may proceed in that party's absence and, as authorized by applicable law, may issue a proposal for decision or order against the defaulting party in which the factual allegations against that party in the notice of hearing are deemed admitted as true without the requirement of submitting additional proof.

(e) Any default judgment entered under this section shall be issued only upon adequate proof that proper notice was provided to the defaulting party, and such notice includes disclosure, in 12 point, bold-faced type, of the fact that upon failure of the party to appear at the hearing, the factual allegations in the notice will be deemed admitted as true, and the relief sought in the notice of hearing may be granted by default. Proper notice may be established by proof that the Board complied with subsection (c)(1) and (2) of this section.

(f) This section does not preclude the agency from informally disposing of a case by default under the agency's statute or rules in the event the respondent fails to file a timely written response or other responsive pleading required by the agency's statute or rules.

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

Filed with the Office of the Secretary of State on June 14, 2004.

TRD-200403849

Chris Kloeris

Executive Director

Texas Optometry Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8502


Chapter 279. INTERPRETATIONS

22 TAC §279.2, §279.6

The Texas Optometry Board proposes new §279.6 and amendments to §279.2 to notify the public and licensees that some sections of §279.2 may be in conflict with recently enacted federal law, 15 U.S.C. Sections 7601 - 7610 (Public Law 108-164), and to refer all parties to new §279.6.

Chris Kloeris, Executive Director of the Texas Optometry Board, has determined that for the first five-year period the amendments and new section are in effect, there will be no fiscal implications for state and local governments as a result of enforcing or administering the amendments and new section.

Mr. Kloeris also has determined that for each of the first five years the amendments and new section are in effect, the public benefit anticipated as a result of enforcing the amendments and new section is that patients will receive contact lens prescriptions, and verification information will be provided, pursuant to the requirements of federal law. Since the amendments and new section are informational only, no costs are imposed on the agency's licensees by the amendments and new section. No additional costs are foreseen for small or micro business. Comments regarding possible costs for those required to comply with the amendments and new section may be submitted to the agency. The federal law preempts those sections of the rule in conflict with the federal law such that the agency may not enforce any conflicting section.

Comments on the proposal may be submitted to Chris Kloeris, Executive Director, Texas Optometry Board, 333 Guadalupe Street, Suite 2-420, Austin, Texas 78701-3942. The deadline for furnishing comments is 30 days after publication in the Texas Register .

The amendments and new section are proposed under the Texas Optometry Act, Texas Occupations Code, §351.151, and the Contact Lens Prescription Act, Texas Occupations Code, §§353.101, 353.103, 353.152, 353.156 and 353.204, and federal law, 15 U.S.C. Sections 7601 - 7610.

The Texas Optometry Board interprets §351.151 as authorizing the adoption of procedural and substantive rules for the regulation of the optometric profession. The agency interprets §§353.101, 353.103, 353.152, and 353.156 as setting up a comprehensive scheme to regulate the prescribing and dispensing of contact lenses, and §353.204 as authorizing the agency to discipline optometrists and therapeutic optometrists for violations of the Contact Lens Prescription Act. The agency interprets 15 U.S.C. Sections 7601 - 7610 as requiring licensees to issue contact lens prescriptions at the completion of a contact lens exam, and the verification of prescriptions when requested by a dispenser authorized by the patient to obtain the verification.

No other sections are affected by the amendment and new section.

§279.2.Contact Lens Prescriptions.

(a) Federal law, 15 U.S.C. Sections 7601 - 7610 (Public Law 108-164), imposes requirements on the prescribing and dispensing of contact lenses that supersede some of the provisions of the Texas Optometry Act and Contact Lens Prescription Act, including requirements on the release of a prescription and requirements to verify a prescription. Section 279.6 of this title (relating to Interpretation of Requirements of Federal Contact Lens Prescription Law) should therefore be consulted contemporaneously with this section.

(b) [ (a) ] A prescription for contact lenses is defined as a written order signed by the examining optometrist, therapeutic optometrist or physician, or a written order signed by an optometrist, therapeutic optometrist or physician authorized by the examining doctor to issue the prescription. If the prescription is signed by a doctor other than the examining optometrist, therapeutic optometrist or physician, the prescription must contain:

(1) the name of the examining doctor, and

(2) the license number of both the examining doctor and the doctor signing the prescription.

(c) [ (b) ] A contact lens prescription must comply with the requirements of the Texas Optometry Act, Sections 351.005, 351.356, 351.357, 351.359 and 351.607, and the Contact Lens Prescription Act, Sections 353.152, 353.153 and 353.158.

(d) [ (c) ] A fully written contact lens prescription must contain all information required to accurately dispense the contact lens, including:

(1) patient's name;

(2) date the prescription is issued;

(3) an expiration date of not less than one year, unless a shorter period is medically indicated;

(4) examining optometrist's signature or authorized signature

(5) name of the lens manufacturer, if required to accurately dispense the lens;

(6) lens brand name, including:

(A) a statement that brand substitution is permitted if the optometrist intends to authorize a contact lens dispenser to substitute the brand name, and

(B) a statement specifying a substitute brand name when the prescribed brand name is not available to the optical industry as a whole, unless the prescribing of a proprietary lens brand is medically indicated;

(7) lens power;

(8) lens diameter, unless set by the manufacturer;

(9) base curve, unless set by the manufacturer; and

(10) number of lenses and recommended replacement interval.

(e) [ (d) ] The Contact Lens Prescription Act requires the optometrist or therapeutic optometrist to release a prescription upon request once the parameters of the prescription are determined. An exception to this requirement exists if the optometrist or therapeutic optometrist determines that because of a medical indication further monitoring is required, and the optometrist or therapeutic optometrist gives the patient a verbal explanation of the reason the prescription is not released and documents in the patient's records a written explanation of the reason.

(f) [ (e) ] An optometrist or therapeutic optometrist may issue a prescription in the following manner:

(1) giving or delivering an original signed copy of the prescription to the patient or to another person when requested by the patient,

(2) faxing an original signed prescription to a person authorized to fill the prescription. When faxing a prescription, the optometrist or therapeutic optometrist shall write "by fax" or similar wording on the original prescription prior to faxing;

(3) transmitting a complete prescription as defined in this section, to a person authorized to fill the prescription, by e-mail or other computerized electronic means. When transmitting a prescription by computerized electronic means, including e-mail, the optometrist or therapeutic optometrist shall attach a digital signature in a commonly recognized format. The computerized electronic transmission shall also include the office address and license number of the optometrist or therapeutic optometrist; or

(4) under the Contact Lens Prescription Act, if the optometrist or therapeutic optometrist determines that the patient needs an emergency refill of the contact lens prescription, the prescription may be telephoned to a person authorized to fill the prescription.

(g) [ (f) ] The Contact Lens Prescription Act requires an optometrist or therapeutic optometrist to authorize, upon request of the patient, a one time, two month extension of the contact lens prescription. If the extension request also constitutes a request for an emergency refill, the optometrist or therapeutic optometrist may telephone the prescription extension to a person authorized to fill the prescription.

(h) [ (g) ] The prescribing optometrist or therapeutic optometrist has the authority to specify any and all parameters of an optical prescription for the therapeutic and visual health and welfare of a patient, but the prescription shall not contain restrictions limiting the parameters to private labels not available to the optical industry as a whole, unless the prescribing of a proprietary lens brand is medically indicated. The specifications of the prescription may not be altered without the consent of the prescribing doctor.

(i) [ (h) ] The Contact Lens Prescription Act (Act), prohibits an optometrist or therapeutic optometrist from charging the patient a fee in addition to the examination fee and the fitting fee as a condition for giving a contact lens prescription to the patient. An optometrist or therapeutic optometrist may not refuse to release a prescription solely because charges assigned or presented for payment to an insurance carrier, health maintenance organization, managed care entity, or similar entity have not been paid by that entity.

(j) [ (i) ] An optometrist or therapeutic optometrist may charge a fitting fee that includes fees for lenses required to be used in the fitting process. The fitting process may include the initial eye examination, an examination to determine the specifications of the contact lenses, and follow-up examinations that are medically necessary. Unless medically necessary, the optometrist or therapeutic optometrist may not require the patient to purchase a quantity of lenses in excess of the lenses the optometrist or therapeutic optometrist was required to purchase to complete the fitting process.

§279.6.Interpretation of Requirements of Federal Contact Lens Prescription Law.

(a) A contact lens prescription must comply with the requirements of the Texas Optometry Act, the Contact Lens Prescription Act, and federal contact lens prescription laws, 15 U.S.C. Sections 7601 - 7610 (Public Law 108-164).

(b) Where federal contact lens prescription laws conflict with state law, the federal law controls. This interpretation, based on the federal law and rules proposed by the Federal Trade Commission, is intended as a guide to the requirements of the federal law for writing and releasing contact lens prescriptions. Enforcement of the federal law is conducted by the Federal Trade Commission.

(c) The federal law requires an optometrist or therapeutic optometrist to release a prescription once the parameters of the prescription are determined, regardless of whether the release is requested by the patient. This requirement supersedes the general release requirement of state law and §279.2 of this title (Board Rule 279.2).

(d) A fully written contact lens prescription must contain the information required by §279.2 of this title (Board Rule 279.2). The federal law requires the following additional information:

(1) the name, postal address, telephone number, and facsimile telephone number of the prescribing optometrist or therapeutic optometrist;

(2) the date of examination; and

(3) if the prescription specifies a trade name of private label brand, the trade name of equivalent brand name, if applicable.

(e) When directed by a dispenser designated to act on behalf of the patient, the federal law requires an optometrist or therapeutic optometrist to fax an original signed prescription to the dispenser. When faxing a prescription, the optometrist or therapeutic optometrist shall write "by fax" or similar wording on the original prescription prior to faxing in accordance with §279.2 of this title (Board Rule 279.2).

(f) The federal contact lens prescription law requires an optometrist or therapeutic optometrist to verify a prescription to a dispenser designated to act on behalf of the patient, by telephone, facsimile or electronic mail.

(g) Under the federal law, a dispenser designated to act on behalf of the patient is required to provide the optometrist or therapeutic optometrist with the following information when seeking a verification of a prescription:

(1) patient's full name and address;

(2) contact lens power, manufacturer, base curve or appropriate designation, and diameter when appropriate;

(3) quantity of lenses ordered;

(4) date of patient request;

(5) date and time of verification request; and

(6) name of contact person at dispenser's company, including facsimile and telephone number.

(h) If the format of the verification request allows, the optometrist or therapeutic optometrist, when verifying a prescription, should provide the contact lens dispenser with all of the information required in subsection (c) of §279.2 of this title (Board Rule 279.2). An optometrist or therapeutic optometrist who did not perform the examination, may verify a prescription according to subsection (a) of §279.2 of this title (Board Rule 279.2), providing to the dispenser the name and license number of the examining doctor if the format of the verification request so allows. Each request for a prescription verification should be recorded in the patient record, including the name of the dispenser, the date verification is requested, number of lenses requested, and response of the optometrist or therapeutic optometrist.

(i) The federal law prohibits a contact lens dispenser seeking a contact lens prescription verification from filling the prescription if an optometrist or therapeutic optometrist informs a dispenser that the contact lens prescription is inaccurate, expired, or otherwise invalid. Federal law requires the optometrist or therapeutic optometrist to specify the basis for the inaccuracy or invalidity of the prescription. If the prescription communicated by the dispenser to the optometrist or therapeutic optometrist is inaccurate, federal law requires the optometrist or therapeutic optometrist to correct it. A dispenser may dispense lenses without verification if an optometrist or therapeutic optometrist fails to communicate with the dispenser within 8 business hours, or a similar time as defined by the Federal Trade Commission.

(j) An optometrist or therapeutic optometrist dispensing contact lenses shall record on the prescription the number of lenses dispensed and return the prescription to the person. If all the contact lenses authorized by the prescription are dispensed by an optometrist or therapeutic optometrist, the following procedure complies with state law and should not be in conflict with federal law: the optometrist or therapeutic optometrist writes on the prescription "All Lenses Dispensed," makes a copy of the prescription to retain in the licensee's records, and returns the original to the person presenting the prescription.

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

Filed with the Office of the Secretary of State on June 14, 2004.

TRD-200403848

Chris Kloeris

Executive Director

Texas Optometry Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8502


Part 15. TEXAS STATE BOARD OF PHARMACY

Chapter 283. LICENSING REQUIREMENTS FOR PHARMACISTS

22 TAC §283.9

The Texas State Board of Pharmacy proposes amendments to §283.9, concerning Fee Requirements for Licensure by Examination, Score Transfer, and Reciprocity. The proposed amendments, if adopted, will increase the initial application fees for licensure by exam or score transfer, and for the initial application fee for licensure by reciprocity to include a surcharge required for funding Texas Online. The proposed amendments, if adopted, will also implement a recommendation by the Sunset Advisory Commission making all fees non-refundable.

Gay Dodson, R.Ph., Executive Director/Secretary, has determined that, for the first five-year period the rule is in effect, there will be fiscal implications for state government as a result of enforcing or administering the rule as follows:

Figure: 22 TAC Chapter 283--Preamble

Economic cost to persons who are required to comply with these rules will be an increase of an additional $2.00 fee for an initial application for licensure by exam or score transfer, and an additional $5.00 fee for an initial application for licensure by reciprocity. There are no anticipated fiscal implications for local government.

Ms. Dodson has determined that, for each year of the first five-year period the rules will be in effect, the public benefit anticipated as a result of enforcing the rules will be to allow a pharmacist licensure applicant to submit their initial license application over the Internet. Eligible applicants will be able to apply for licensure online anytime, seven days a week, with payment submitted via credit card or electronic check. The development of this online application is scheduled to begin in September 2004 with implementation by December 2004.

The effect on large, small or micro-businesses (pharmacies) will be the same as the economic cost to an individual, if the pharmacy chooses to pay the fee for the individual.

Comments on the proposal may be submitted to Allison Benz, R.Ph., M.S., Director of Professional Services, Texas State Board of Pharmacy, 333 Guadalupe Street, Suite 3-600, Box 21, Austin, Texas, 78701, FAX 512/305-8082. Comments must be received by 5 pm, July 26, 2004.

The amendments are proposed under sections 551.002, 554.051, 558.051, and 558.101 of the Texas Pharmacy Act (Chapters 551-566 and 568-569 Texas Occupations Code). The Board interprets section 551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets section 554.051 as authorizing the agency to adopt rules for the proper administration and enforcement of the Act. The Board interprets section 558.051, and 558.101 as authorizing the agency to set application and licensure fees.

The statutes affected by these rules: Chapters 551-566 and 568-569, Texas Occupations Code.

§283.9.Fee Requirements for Licensure by Examination, Score Transfer and Reciprocity.

(a) The fees for licensure by examination, score transfer, and reciprocity shall include one exam administration . These fees are not refundable. The fees [ and ] are as follows:

(1) Examination Fee. The fee to submit an application for licensure by examination will include:

(A) An examination processing fee of $52 [ $50 ], which is to be paid to the Texas State Board of Pharmacy and includes the processing of the Texas application.

(B) NAPLEX administrative and examination fees as determined by NABP, which are to be paid to NABP in accordance with NABP policy.

(C) MPJE administrative and examination fees as determined by NABP, which are to be paid to NABP in accordance with NABP policy.

(2) Reciprocity Fee. The fee to submit an application for licensure by reciprocity will include.

(A) A reciprocity fee of $255 [ $250 ], which is to be paid to the Texas State Board of Pharmacy.

(B) MPJE administrative and examination fees as determined by NABP, which are to be paid to NABP in accordance with NABP policy.

(C) A license verification fee as determined by NABP, which is to be paid to NABP in accordance with NABP policy.

(3) Score Transfer Fee. The fees to transfer a score to Texas, using the NAPLEX Score Transfer system will include:

(A) An examination processing fee of $52 [ $50 ], which is to be paid to the Texas State Board of Pharmacy and includes the processing of the Texas application.

(B) MPJE administrative and examination fees as determined by NABP, which are to be paid to NABP in accordance with NABP policy.

(C) A score transfer fee as determined by NABP, which is to be paid to NABP in accordance with NABP policy.

(b) (No change.)

(c) Rescheduling or canceling an examination appointment.

[ (1) ] Refunds for fees charged by NABP for the administration of the NAPLEX and MPJE are in accordance with NABP policy. Rescheduling of an examination appointment shall be in accordance with NABP policy.

[ (2) $50 Texas examination processing fee is available if written notification is received in the board office no later than six weeks before the scheduled examination date. ]

[ (3) $250 Texas reciprocity fee is available if written notification is received in the board office no later than six weeks before the scheduled examination date. ]

(d) - (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 June 14, 2004.

TRD-200403854

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8028


Chapter 291. PHARMACIES

Subchapter B. COMMUNITY PHARMACY (CLASS A)

22 TAC §291.34

The Texas State Board of Pharmacy proposes amendments to §291.34, concerning Records. The amendments, if adopted, will ensure that prescriptions for controlled substances carried out by advance practice nurses and physician assistants contain the DEA number of the supervising practitioner.

Gay Dodson, R.Ph., Executive Director/Secretary, 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. Dodson has determined that, for each year of the first five-year period the rule will be in effect, the public benefit anticipated as a result of enforcing the rule will be to ensure that prescriptions for controlled substances carried out by advance practice nurses and physician assistants contain the DEA number of the supervising practitioner, ensuring that the prescriptions are issued under the proper authority. There is no fiscal impact for small or large businesses or to other entities who are required to comply with this section.

Comments on the proposal may be submitted to Allison Benz, R.Ph., M.S., Director of Professional Services, Texas State Board of Pharmacy, 333 Guadalupe Street, Suite 3-600, Box 21, Austin, Texas, 78701, FAX 512/305-8082. Comments must be received by 5 pm, July 26, 2004.

The amendments are proposed under sections 551.002 and 554.051 of the Texas Pharmacy Act (Chapters 551-566, and 568-569, Texas Occupations Code). The Board interprets section 551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets section 554.051 as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by this rule: Chapters 551-566 and 568-569, Texas Occupations Code.

§291.34.Records.

(a) (No change.)

(b) Prescriptions.

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

(6) Prescription drug order information.

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

(C) All original written prescriptions [ for dangerous drugs ] carried out or signed by an advanced practice nurse or physician assistant in accordance with Subtitle B, Chapter 157, Occupations Code, shall bear:

(i) name and address of the patient;

(ii) name, address, [ and ] telephone number , and if the prescription is for a controlled substance, the DEA number of the supervising practitioner;

(iii) name, identification number, original signature and if the prescription is for a controlled substance, the DEA number of the advanced practice nurse or physician assistant;

(iv) address and telephone number of the clinic at which the prescription drug order was carried out or signed;

(v) name, strength, and quantity of the dangerous drug;

(vi) directions for use;

(vii) indications for use, if appropriate;

(viii) date of issuance; and

(ix) number of refills authorized.

(D) (No change.)

(7) (No change.)

(c) - (k) (No change.)

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

Filed with the Office of the Secretary of State on June 14, 2004.

TRD-200403855

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8028


Chapter 297. PHARMACY TECHNICIANS

22 TAC §297.7

The Texas State Board of Pharmacy proposes amendments to §297.7 concerning Exemption from Pharmacy Technician Certification Requirements. The proposed amendments, if adopted, will clarify the status of pharmacy technicians exempted from certification.

Gay Dodson, R.Ph., Executive Director/Secretary, 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. Dodson has determined that, for each year of the first five-year period the rule will be in effect, the public benefit anticipated as a result of enforcing the rule will be to clarify the status of long-term exempt pharmacy technicians and clarify the status of rural county exempt pharmacy technicians whose exemption is cancelled. There is no fiscal impact for small or large businesses or to other entities who are required to comply with this section.

Comments on the proposal may be submitted to Allison Benz, R.Ph., M.S., Director of Professional Services, Texas State Board of Pharmacy, 333 Guadalupe Street, Suite 3-600, Box 21, Austin, Texas, 78701, FAX 512/305-8082. Comments must be received by 5 pm, July 26, 2004.

The amendments are proposed under Sections 551.002, 554.002(6), 554.051, and 568.002, Occupations Code. The Board interprets section 551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets section 554.002(6) as authorizing the agency to regulate the training, qualifications, and employment of a pharmacy technician. The Board interprets section 554.051 as authorizing the agency to adopt rules for the proper administration and enforcement of the Act. The Board interprets Section 568.002 as authorizing the agency to establish a system for the registration of pharmacy technicians including the issuance and renewal of registrations and to exempt pharmacy technicians from the certification requirement under conditions.

The statutes affected by this rule: Chapters 551-566 and 568-569, Texas Occupations Code.

§297.7.Exemption from Pharmacy Technician Certification Requirements.

(a) Purpose. The board encourages all pharmacy technicians to become certified by taking and passing the National Pharmacy Technician Certification Exam or other examination approved by the board. However, the board will consider petitions for exemption on a case by case basis. This section outlines procedures for pharmacy technicians to petition the board for an exemption to the certification requirements established by §568.002 of the Act (relating to Pharmacy Technician Registration Required).

(b) Long-term exempt pharmacy technicians. [ Employees. ] Long-term exempt pharmacy technicians are pharmacy [ Pharmacy ] technicians who, on September 1, 2001, had been continuously employed as a pharmacy technician in this state for at least 10 years and who received an exemption from the board. [ may only use the exemption at the pharmacy noted in the petition and may not transfer the exemption to another pharmacy. If the pharmacy technician ceases employment at the pharmacy or changes employment, the exemption is canceled ].

(c) Rural county exempt pharmacy technicians. [ counties. ] Rural county exempt pharmacy technicians are pharmacy [ Pharmacy ] technicians working in counties with a population of 50,000 or less and meet the following requirements .

(1) Eligibility. A pharmacy technician may petition the board for an exemption from the certification requirements established by §568.002 of the Act (relating to Pharmacy Technician Registration Required) if the technician works in a county with a population of 50,000 or less.

(2) Petition process.

(A) A pharmacy technician shall petition the board for the exemption. The petition shall contain the following:

(i) name of the pharmacy technician;

(ii) name, address, and license number of the pharmacy where the pharmacy technician is employed;

(iii) name of the county in which the pharmacy is located and the most recent official population estimate for the county from the Texas State Data Center;

(iv) a notarized statement signed by the pharmacy technician stating:

(I) the reason(s) the pharmacy technician is asking for the exemption, including reason(s) the pharmacy technician has not taken and passed the National Pharmacy Technician Certification Exam or other examination approved by the board; and

(II) that the information provided in the petition is true and correct; and

(v) a notarized statement signed by the pharmacist-in-charge of the pharmacy the pharmacy technician is currently working, stating that the:

(I) pharmacist-in-charge supports the pharmacy technician's petition for exemption;

(II) pharmacy technician has completed the pharmacy technician training program at the pharmacy; and

(III) pharmacist-in-charge has personally worked with and observed that the pharmacy technician is competent to perform the duties of a pharmacy technician.

(B) Each petition shall be considered on an individual basis. In determining whether to grant the exemption, the board shall consider the information contained in the petition and additional information including the following:

(i) the accuracy and completeness of the petition;

(ii) reason(s) the pharmacy technician is asking for the exemption;

(iii) the population of the county;

(iv) the number of pharmacies located in the county and adjacent counties and the number of pharmacy technicians working in these pharmacies;

(v) unemployment rate in the county and adjacent counties; and

(vi) the following information concerning the pharmacy where the pharmacy technician is currently working:

(I) the degree of compliance on previous compliance inspections; and

(II) history of disciplinary action by the board or other regulatory agencies against the licenses held by the pharmacy or pharmacists working at the pharmacy.

(C) After review of the petition, the pharmacy technician and the pharmacist-in-charge of the pharmacy where the technician is working shall be notified in writing of approval or denial of the petition.

(i) If the petition is approved, the pharmacy technician shall be sent an exemption certificate, which shall be displayed at the pharmacy where the pharmacy technician is working.

(ii) In lieu of the exemption, the board may grant the pharmacy technician up to an additional 12 months to take and pass the National Pharmacy Technician Certification Exam or other examination approved by the board. During this additional time, the pharmacy technician shall be designated a pharmacy technician trainee.

(3) Limitations.

(A) The exemption granted under this section may only be used at the pharmacy noted in the petition and may not be transferred to another pharmacy. If the pharmacy technician ceases employment at the pharmacy or changes employment, the exemption is canceled.

(B) If the population of the county exceeds 50,000, the board shall cancel the exemption. The pharmacy technician and the pharmacist-in-charge of the pharmacy shall be notified when an exemption is canceled.

(C) If the exemption granted under subparagraphs (A) or (B) of this paragraph is cancelled, the pharmacy technician's registration is void and the registration certificate must be surrendered to the Board.

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

Filed with the Office of the Secretary of State on June 14, 2004.

TRD-200403856

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8028


Part 23. TEXAS REAL ESTATE COMMISSION

Chapter 535. GENERAL PROVISIONS

Subchapter A. GENERAL PROVISIONS RELATING TO THE REQUIREMENTS OF LICENSURE

22 TAC §535.2

The Texas Real Estate Commission (TREC) proposes an amendment to §535.2, concerning Broker's Responsibility.

The amendment adds new subsections (d)-(e) to §535.2 to establish a written disclosure for a real estate broker to provide to a client, typically the seller in a real estate transaction, concerning the extent to which another broker, who typically represents the buyer in the transaction, may discuss the terms of the transaction or answer questions of the seller. The broker must provide the written notice to the client when the client has instructed the agent not to negotiate a transaction on behalf of the client.

This clarification is proposed based on concerns raised by various real estate industry organizations regarding limited service listing agreements. A limited service listing agreement is an agreement by which a broker provides fewer services than those services provided for in a traditional real estate listing agreement. A limited service agreement may provide for a menu of services or reduced fees for certain specified services rather than a full commission for the complete range of brokerage services generally provided in a traditional real estate agency relationship.

Under certain business models, a real estate broker may provide no service to the seller except to place the listing in a Multiple Listing Service. Typically, the listing broker instructs the cooperating broker to contact the seller directly for all purposes (showings, presentations of offers, and negotiations).

This practice raises several concerns for brokers who represent buyers interested in properties listed under limited service agreements. In some cases, the seller does not understand the complexities of the transaction and may wish to rely upon the cooperating broker for assistance and advice. The seller may be reluctant to approach the limited service broker for assistance at the risk of incurring significant additional fees; in some cases the limited service broker will not provide the additional service. When the other broker represents the buyer as the buyer's agent, the broker is prohibited from negotiating with a represented seller under §1101.652(b)(22) of the Occupations Code. Cooperating brokers also understand, however, that failing to provide the requested services to the seller may jeopardize the transaction or increase risks associated with the transaction.

The proposed disclosure would explain fully to a principal that the law precludes the other broker from providing any services to the principal and that the principal should contact his or her own broker if the principal needs help with the transaction. If a principal instructs a broker not to negotiate a transaction on behalf of principal, the broker must provide the notice to the principal at that time.

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

Ms. DeHay also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the section will be clarification to consumers of the fee for service business model in Texas. 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 purpose and intent of the Act to insure compliance with the provisions of the Act.

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

§535.2.Broker's Responsibility.

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

(d) If a broker's principal instructs the broker to not negotiate an offer or counter-offer and instructs the broker to inform other brokers to submit offers and counter-offers directly to the client, the broker must provide the following notice to the broker's principal: "NOTICE CONCERNING NEGOTIATIONS You have instructed your broker to not negotiate offers and counter-offers for you and to inform other brokers to submit offers and counter-offers directly to you. Please take note of the following. The other broker will represent the other party in the transaction and will not represent you The other broker will advise his or her client of relevant information related to the negotiations including but not limited to relevant market data, contractual duties, and negotiating strategies. The other broker will inform his or her client of any information the other broker received from you. You may be placed at a disadvantage if the other party retains the assistance of a broker or an attorney during negotiations and you do not. You should direct any questions about any offer, counter-offer, or any contractual obligation to your broker and not to the other broker. If you need assistance in preparing or responding to any offer, counter-offer, or notice or if you need assistance at any time through closing you should seek such assistance from your broker or your attorney and not the other broker. You should not rely on the other broker to coordinate the transaction, including but not limited to arranging for the completion of your obligations in the transaction and your performance under a contract. Your broker is obligated under law to provide assistance to you during negotiations. The amount you pay your broker is negotiable between you and your broker. The amount you pay your broker may depend on the type and amount of services your broker provides."

(e) A broker must provide the notice under subsection (d) of this section to the broker's principal at the time the broker receives the principal's instruction to not negotiate. The notice under subsection (d) of this section must be:

(1) in a separate, self-contained document;

(2) printed with at least 14-point type;

(3) signed and dated by the broker;

(4) contain a space or line for the broker's principal to sign as an acknowledgment of receipt.

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403786

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter E. REQUIREMENTS FOR LICENSURE

22 TAC §535.51

The Texas Real Estate Commission (TREC) proposes amendments to §535.51, concerning general requirements for licensure. The amendments propose to adopt by reference changes to a real estate broker corporation application form to change the fees referenced in the form. The amendments to the fee provisions in the form is proposed in conjunction with Government Code Chapter 2054, Subchapter I, §2054.252, which requires TREC to participate in an electronic system using the Internet for licensing applications and renewals. Section 2054.252 requires TREC to pay a subscription fee to the TexasOnline Authority for participation and to increase application and renewal fees to cover the cost of the subscription fees charged by the TexasOnline Authority. The proposed revisions include an additional $3 fee on corporation broker original applications that will be effective September 1, 2004.

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 a streamlined application filing process. 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 purpose and intent of the Act to insure compliance with the provisions of the Act and Government Code §2054.252(g) which requires TREC to increase occupational license issuance or renewal fees by an amount sufficient to cover the cost of the subscription fee imposed on TREC under subsection (e) of §2054.252.

The statutes affected by this proposal is Texas Occupations Code, Chapter 1101, and Texas Government Code, Chapter 2054. 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) (No change.)

(2) Effective September 1, 2004, Application for a Real Estate Broker License by a Corporation, TREC Form BLC- 5 [ 4 ];

(3) - (10) (No change.)

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403787

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter G. MANDATORY CONTINUING EDUCATION

22 TAC §§535.71 - 535.73

(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 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 §535.71, concerning mandatory continuing education: approval of providers, courses and instructors, §535.72, concerning mandatory continuing education: presentation of courses, advertising and records, and §535.73, concerning compliance and enforcement. The subjects addressed in these sections will be covered in new sections TREC is proposing to adopt as part of the Education Task Force recommendations regarding mandatory continuing education.

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 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 repeal.

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 increased knowledge of current real estate related case law and statutory provisions due to the proposed requirements to attend live presentations of commission created legal mandatory continuing education courses. 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 repeals are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

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

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

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

§535.73.Compliance and Enforcement.

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403788

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


22 TAC §§535.71 - 535.73

The Texas Real Estate Commission (TREC) proposes new §535.71, concerning mandatory continuing education: approval of providers, courses and instructors, §535.72, concerning mandatory continuing education: presentation of courses, advertising and records, and §535.73, concerning compliance and enforcement.

The proposed rules require all licensees to take a three hour legal update course and a three hour legal ethics course created for and approved by TREC to satisfy the 6 legal hours of mandatory continuing education required by Occupations Code §1101.455 (the Act). Instructors who teach the legal courses must be certified to teach the courses by attending an instructor training course to be offered by the Real Estate Center at Texas A&M University (the Center); instructors must be pre-approved by the Commission prior to attending the instructor training course and obtaining certification to teach the required courses. The required legal update and ethics courses will be replaced at the end of every odd numbered year (3 years for the first set of courses, every 2 years after). The required courses may be modified by certified instructors to supplement the courses with additional material, to create distance learning legal courses or to combine the legal courses with elective courses. Elective courses to be used as credit for the remaining 9 hours required by §1101.455 of the Act must be presentations of relevant issues that impact the practice of real estate or which increase or support the development of skill and competence; providers will be required to register all courses with the Commission. Core and mandatory continuing legal education courses may be accepted for satisfying MCE elective credit only. Correspondence and alternate delivery method courses may be registered to satisfy elective and required legal credit subject to certain conditions. A provider may grant partial credit to a student who attends less than the complete course registered with the commission only if the segments of the course for which partial credit may be granted are not less than one hour in length and the student attends the full class hour to get credit for attendance for that hour. Thus if a student is away or late for any portion of a 50 minute class hour the student may not receive credit for that hour except as provided in circumstances described in §535.72(c). The student will receive credit for any other full hours of that course that the student attends. Instructor applicants must satisfy the commission as to the applicant's honesty, trustworthiness and integrity; providers will be responsible for ensuring that instructors are competent to teach a particular subject. The proposed rules also propose to adopt by reference 13 MCE new or revised application forms that are consistent with the proposed rules; the forms have also been changed to reference the cites to Chapter 1101 Occupations Code and have been reformatted for style and consistency with other TREC forms.

The effective date of the new rules if adopted will be January 1, 2005. Distance learning courses may be offered for required legal course credit on or after July 1, 2005. Licensees on active status will be required to take the required legal update and legal ethics courses for their next and all subsequent renewals of their license after January 1, 2005. Thus a licensee may, but is not required to attend the required legal courses for his or her first renewal after the effective date, but the licensee is required to take the courses for the next and all subsequent renewals. For licenses granted after the effective date, the licensee must attend the required courses to renew a license on active status.

Loretta R. DeHay, general counsel, has determined that for the first five-year period the proposed revisions to 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 will be no 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 increased knowledge of current real estate related case law and statutory provisions due to the proposed requirements to attend commission created legal mandatory continuing education courses. 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 new sections are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

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

§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, Chapter 1101.

(2) Applicant--A person seeking approval to be a provider or instructor of a course for which mandatory continuing education credit is given.

(3) Hour--Fifty minutes of actual session time.

(4) Certified legal course instructor - an instructor approved by the Texas Real Estate Commission and certified to teach the required legal update course or the required ethics course.

(5) Commission--The Texas Real Estate Commission.

(6) Day--A calendar day.

(7) Distance learning course--A correspondence course or alternative delivery method course.

(8) Elective credits--The nine hours of non-legal mandatory continuing education required by §1101.455 of the Act.

(9) Instructor--A person approved by the Texas Real Estate Commission to teach mandatory continuing education courses.

(10) MCE--Mandatory Continuing Education.

(11) Person--An individual, partnership, or a corporation, foreign or domestic.

(12) Proctor--A person who monitors a final examination for a course offered by a provider under the guidelines contained in this section. A proctor may be a course instructor, the provider, an employee of a college or university testing center, a librarian, or other person approved by the commission.

(13) Provider--A person approved by the Texas Real Estate Commission to offer courses for which mandatory continuing education credit is given.

(14) Required legal ethics course--A required course created for and approved by the Texas Real Estate Commission to satisfy three of the six legal hours of mandatory continuing education required by §1101.455 of the Act.

(15) Required legal update course--A required course created for and approved by the Texas Real Estate Commission to satisfy three of the six legal hours of mandatory continuing education required by §1101.455 of the Act.

(16) Required legal course or legal credits--The required legal update or legal ethics courses or credits earned for attending such courses.

(17) Student--An individual taking an MCE course for credit.

(b) Mandatory Continuing Education Requirements. On or after January 1, 2005 and except as authorized by §535.92 of this chapter, for the next and all subsequent renewals of a license on active status that is not subject to the annual education requirements of §1101.454 of the Act, the license holder must attend during the term of the current license, at least two Commission-developed legal courses consisting of a three-hour legal update course and a three-hour legal ethics course to comply with the six legal hours of mandatory continuing education required by §1101.455 of the Act. The remaining nine hours required by §1101.455 of the Act may consist of elective credit courses registered with the commission under this section.

(c) Application. A person who wishes to offer courses accepted by the commission for MCE credit shall apply to the commission for approval to be an MCE provider and shall register each MCE course using application forms prepared by the commission. The commission may refuse to accept any application which is not complete or which is not accompanied by the appropriate filing fee. Each prospective provider shall submit a provider application and at least one principal information form.

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

(1) MCE Form 1A-2, MCE Provider Application;

(2) MCE Form 1B-2, MCE Provider Application Supplement;

(3) MCE Form 2-3, MCE Principal Information Form;

(4) MCE Form 3A-2, MCE Course Application;

(5) MCE Form 3B-3, MCD Course Application Supplement;

(6) MCE Form 8-4, MCE Course Completion Roster;

(7) MCE Form 9-7, Alternative Instructional Methods Reporting Form;

(8) MCE Form 10-2, MCE Credit Request For An Out of State Course;

(9) MCE Form 11-4, MCE Instructor Credit Request;

(10) MCE Form 12-2, Individual MCE Credit Request for State Bar Course;

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

(12) MCE Form 15-0, Individual MCE Elective Credit Request for Professional Designation Course; and

(13) MCE Form 16-0, Instructor Application Form.

(e) Provider application. To be approved as an MCE provider, a person must satisfy the commission as to the person's ability to administer with honesty, trustworthiness and integrity a course of continuing education in MCE subjects registered with the commission. If the person proposes to employ independent contractors to conduct or to administer the courses, any independent contractor named in the application must meet this standard as if the independent contractor were the applicant; however, the applicant is responsible for responding to communications from the commission relating to the application.

(f) Additional information related to application. An applicant may be requested to provide additional information, and the commission may terminate an application without further notice if the applicant fails to provide the additional information within 60 days of the mailing of a request by the commission.

(g) Fees. Fees shall be established by the commission in accordance with the provisions of the Act, §1101.152, 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.

(h) Approval of applicants. The commission may authorize the manager or director of the education division of the commission, or a designate, to determine whether applications for MCE providers or instructors should be approved or certified. The commission may disapprove an application for 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.

(i) Appeal. 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 Act, Texas Government Code, Chapter 2001. Venue for any hearing conducted under this section shall be in Travis County.

(j) Power of attorney. If a provider does not maintain a fixed office in this state for the duration of the provider's approval to offer courses, the provider shall designate a resident of this state as attorney-in-fact to accept service of process and act as custodian of any records in Texas which the provider is required to maintain by these sections. A power-of-attorney designating the resident must be filed with the commission in a form acceptable to the commission.

(k) Subsequent application for provider approval or course registration. Unless withdrawn earlier for cause as provided by these sections, a provider's authority to offer courses for which MCE credit is given expires two years from the date the provider is approved by the commission. Authority to offer any MCE courses ends with the expiration of the provider's approval, and the provider must pay current fees and reapply for approval as a provider in order to offer MCE courses again. An elective credit course registered with the commission may be offered by the provider for a period of two years after the course is registered or until the provider's authority to act as a provider finally expires or is withdrawn for cause, whichever first occurs. If a course was originally registered by another provider, the registration period is measured from the date of registration for the original provider. A provider may apply for approval to be a provider for another two years no sooner than six months prior to the expiration of existing provider approval.

(l) Approval of instructor. To be approved as an instructor of any MCE course, an applicant must satisfy the commission as to the applicant's honesty, trustworthiness and integrity. Subsections (f)-(i) of this section apply to an applicant for approval of an instructor.

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

(n) Subsequent application for instructor approval. No more than six months prior to the expiration of the current approval, an instructor may apply for approval for another five year period.

(o) Required legal update and ethics courses. The commission shall approve bi-annually a legal update course and a legal ethics course which shall be conducted through providers by instructors certified by the commission under this Subchapter. The subject matter and course materials for the courses shall be created for and approved by the commission. New courses must be offered during the two-year period ending on December 31 of each odd-numbered year. The new courses will automatically replace the previous courses and instructors must become recertified to teach the replacement course(s) by attending a new instructor training course prior to a provider offering the replacement course(s). Providers must acquire the Commission-developed course materials and utilize such materials to conduct the legal courses. The courses must be conducted as prescribed by the rules in this Subchapter and the course materials developed for the commission.

(p) Modification of required legal courses. Providers and instructors may modify a required legal course only to provide additional information on the same or similar topics covered in the course or to create distance learning courses that are substantially similar to the live courses developed for the commission. To the extent that a required legal course is modified or integrated into a longer course for which additional elective credit is requested, the commission shall grant elective and legal credit for the combined course.

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

(r) Elective credit courses. To be approved to offer a course for MCE elective credit, the provider must demonstrate that the course subject matter is appropriate for a continuing education course for real estate licensees and that the information provided in the course will be current and accurate. MCE elective credit courses must be presentations of relevant issues that impact the practice of real estate in the current market or topics which increase or support the licensee's development of skill and competence.

(s) Elective course application. A provider applicant must submit an MCE Form 3A-2, MCE Course Application and receive written acknowledgment from the commission prior to offering an MCE elective course. Prior to advertising or offering a course offered by another provider the subsequent provider must submit an MCE Form 3B-3, Course Application Supplement, and receive written acknowledgment from the commission.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) course description;

(2) learning objectives;

(3) evaluation techniques;

(4) lessons;

(5) learning activities;

(6) final examination;

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

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

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

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

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

(A) divide the material into major units as approved by the commission;

(B) divide each of the major units of content into modules of instruction for delivery on a computer or other approved interactive audio or audiovisual programs;

(C) specify the learning objectives for each module of instruction. The learning objectives must be comprehensive enough to ensure that if all the objectives are met, the entire content of the course will be mastered;

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

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

(F) provide a means of diagnostic assessment of each student's performance on an ongoing basis during each module of instruction, measuring what each student has learned and not learned at regular intervals throughout each module of instruction, and specifically assessing the mastery of each concept covered in the content material;

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

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

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

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

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

(A) those which consist primarily of text material;

(B) those which primarily consist of questions similar to those on the state licensing examination; or

(C) those which consist primarily of combinations of the elements in subparagraphs (A) and (B) of this paragraph.

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

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

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

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

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

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

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

(iii) has passed either:

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

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

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

(dd) For a distance learning course, the provider shall award the student credit for the course upon completion of the course 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 9-7 signed by the student, or submitting the information contained in MCE form 9-7 by electronic means acceptable to the commission.

(ee) A provider may use as guest speakers persons who have not been approved as instructors, provided that no more than a total of 25% of the course is taught by the unapproved persons during a registered MCE elective credit course. The commission-registered instructor must remain in the classroom during the guest speaker's presentation.

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

(a) Course completion roster. A provider offering each MCE course shall file an MCE Course Completion Roster, MCE Form 8-4 with the commission within 10 days following completion of the course for licensees who have attended the entire course registered with the commission. Course completion rosters may be transmitted for filing by facsimile machine. An authorized representative of the provider who was in attendance and for whom an authorized signature exemplar is on file with the commission shall sign MCE Form 8-4. Providers are responsible for the security of the course completion rosters. The commission may not accept signature stamps, unsigned forms or forms signed by persons for whom an authorized signature exemplar has not been previously filed with the commission. Providers must make every reasonable effort to ensure that no student is certified for full MCE credit who has not attended all class sessions.

(b) Partial credit. For elective credit courses only, providers may grant partial credit to students who attend less than the complete course registered with the commission only if the segments of the course for which partial credit may be granted are not less than one hour in length. Partial credit may be granted at the discretion of the provider; however partial credit shall not be awarded for any hour in which the student was not present in the classroom for at least 50 minutes of actual class time in a 50-minute class session. Partial credit may not be granted for any legal course segment of a combined legal and elective course. Requests for partial credit shall be filed on MCE Partial Credit Request Form 14-0 and the student and provider must verify that the student has attended the course for the number of hours for which credit is requested.

(c) Attendance. While a provider is expected to ensure that each student is present in the classroom for the hours of time for which credit is awarded, this section is not intended to penalize students who must leave the classroom for brief periods of time for personal reasons. Providers shall make every reasonable effort to ensure that no student is given course credit if the student persists in disrupting the orderly conduct of a class after being cautioned by the provider or the instructor to cease disruptive behavior. Providers may not use students for administration or monitoring duties during the course if the use prevents the student's participation in a significant portion of the course.

(d) Proof of distance learning course completion. In a distance learning course, the provider shall award the student credit for the course upon completion of the course 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 9-7, signed by the student, or submitting the information contained in MCE Form 9-7 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) Pre-course announcements. A provider shall, prior to commencement of a course, announce that the provider will not certify a student for full MCE credit unless the student attends all sessions of the course, that no makeups or written work will be allowed for MCE credit, that students may evaluate the course and instructor by downloading an evaluation form from the TREC web site and submitting the form electronically or by mail, and that the student must determine if the course is timely and appropriate for the student's MCE requirement. If the provider accepts partial credit for partial attendance at an elective credit course, the provider shall explain the procedure for granting partial credit. If the provider has not advertised or otherwise made students aware of the provider's refund policy, the pre-course announcement must also contain the refund policy. The provider may allow a ten-minute break for every 50 minutes of session time, but a break must be given at least every two hours, using all accumulated break time, and the daily course presentation may not exceed ten hours.

(f) Facilities. Facilities used by providers for classroom presentations must be adequate to accommodate students. Providers shall ensure each student has seating, a writing surface and writing materials. Rigid tablets or clipboards may be provided as a writing surface.

(g) Course materials. Providers must furnish students with copies, for students' permanent use, of any printed material which is the basis for a significant portion of the course. Ample space must be provided on handouts for note taking or completion of any written exercises. If a provider charges fees for supplies, materials, or books needed in course work, the fees must be itemized in a written statement provided to each student by the provider before the student registers for the course.

(h) Open enrollment. All MCE courses must be open to enrollment by the general public. Providers may give preference in enrollment to persons who need MCE credit to obtain, renew or activate a license and may enroll all others on a space available basis. For a classroom course, the provider must offer the course in a location conducive to instruction that is separate and apart from the work area, such as a classroom, training room, conference room, or assembly hall.

(i) Advertising. Advertising of MCE shall be subject to the following conditions.

(1) A provider applicant may not advertise a specific MCE course or represent in advertising that the applicant is a provider until the applicant has received written approval from the commission for the providership and registered at least one course. A provider applicant may advertise an intention to offer MCE courses if no specific course is described and the advertisement clearly indicates the applicant has not been approved as a provider.

(2) A provider may not offer a course until the provider has received written acknowledgment of registration of the course.

(3) Any advertisement or promotional material used by a provider must indicate the MCE provider's name or assumed business name as reflected in the commission's records and the MCE provider number assigned by the commission. The advertisement or promotional material also must include either the specific MCE course numbers and course titles or a statement that MCE course numbers and titles are available from the provider. When a provider offers a course that is hosted by another person or organization, the advertisement or promotional material must show clearly that the approved MCE provider is offering the course.

(4) A provider may not publish advertisements which are misleading or which are likely to deceive the public.

(5) Any name a provider uses in advertising must not be deceptively similar to the name of any other approved MCE provider or school accredited by the commission, or falsely imply a governmental relationship.

(6) Any written advertisement which contains a fee charged by the provider shall display all fees for the course in the same place in the advertisement and with the same degree of prominence. If a provider requires students to purchase course materials which are not included in the tuition, any such fees must appear in the advertisement of the course.

(j) Record retention. Providers shall retain student attendance records for a period of three years following the completion of a course and shall make copies of the records available to former students. A provider may charge a reasonable fee to defray the cost of copying student records. A provider's records must be kept at the location designated in the MCE Provider Application. Providers must obtain prior approval from the commission to change the location at which the provider's records are kept.

(k) Course administration. Providers of MCE courses are responsible to the commission for the conduct and administration of each course presentation, the punctuality of classroom sessions, verification of student attendance, and instructor performance. Providers shall ensure that the required legal courses are administered by instructors in substantially the same manner as disseminated and updated by the commission. During the presentation of a course, providers may not promote the sale of goods or services.

(l) Updates. If the commission determines that it is in the public interest to update the required legal courses about changes in the law, the commission may require the provider to furnish each student with a copy of the information. The commission also may require the provider to ensure that the provider's instructors include the material in the presentation of the course. The commission shall furnish the provider with a copy of the information and notify the provider that the commission requires compliance with this subsection in a required legal course or any elective course combined with a legal course offered after the provider's receipt of the notice. Failure to comply with this subsection constitutes grounds for disciplinary action against the provider and instructor under §535.73 of this chapter (relating to Compliance and Enforcement) or for disapproval of an application for approval as a provider under §535.71 of this chapter (relating to Mandatory Continuing Education: Approval of Providers, Courses and Instructors).

(m) Change in ownership. In the event of a change of ownership, the provider must obtain approval from the commission prior to the change, and proposed new owners shall submit an MCE Form 2-2, Principal Information Form. Providers shall report a change in business name, street or mailing address, person responsible for records or day-to-day operations, or persons authorized to sign MCE forms at least 15 days prior to the desired date of change. Providers shall report any change in refund policy, attorney-in-fact, address of attorney-in-fact or business telephone number as the change occurs.

(n) MCE credit for instructors. Providers may request MCE credit be given to instructors of MCE courses subject to the following guidelines.

(1) The instructors may receive credit for only those portions of the course that they teach by filing a completed MCE Form 11-4, Instructor Credit Request.

(2) The instructors may receive full course credit by attending all of the remainder of the course and signing the course completion roster.

(o) Written policies. Each provider shall establish written policies governing refunds and contingency plans in the event of course cancellation. If the provider cancels a course, the provider shall fully refund all fees collected from students, or at the student's option, the provider may credit the student for another course of equal or greater credit hours.

§535.73.Compliance and Enforcement.

(a) Complaints. The commission shall investigate complaints against MCE providers or instructors that allege acts constituting violations of these sections. Complaints must be in writing and the commission shall not initiate an investigation or take action against a provider or instructor based on an anonymous complaint. Commission employees may file written complaints against providers or instructors if documents filed with the commission provide reasonable cause to believe a violation of these sections has occurred.

(b) Complaint investigation. 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 Act, Texas Government Code, Chapter 2001 and the commission's general rules of practice and procedure. Venue for any hearing conducted under this section shall be in Travis County.

(c) Audits and evaluations. Commission employees may conduct on-site audits of any course offered by an approved MCE provider. Audits shall be conducted without prior notice to the MCE provider and commission employees may enroll and attend an MCE course without identifying themselves as employees of the commission. Commission employees also may evaluate the effectiveness of course materials or instructors through evaluations submitted by students to the commission. An audit report or evaluations indicating noncompliance with these sections will be treated as a written complaint against the provider or instructor concerned and will be referred to the enforcement division for appropriate resolution.

(d) Cooperation with investigation. A provider or instructor shall fully assist any employee of the commission engaged in the performance of an audit or investigation of a complaint and shall provide records in his possession for examination by the commission or provide such information as is requested by the commission within 15 days of receiving a request for examination of records or information.

(e) Disciplinary action. The commission may reprimand, suspend or revoke the authority of a provider to offer MCE courses or suspend or revoke the approval of an instructor to teach MCE courses when it has been determined that the provider or instructor has been guilty of:

(1) procuring or attempting to procure approval for a provider, course or instructor by fraud, misrepresentation or deceit, or by making a material misrepresentation of fact in an application filed with the commission;

(2) making a false representation to the commission, either intentionally or negligently, that a person had attended a course or portion of a course for which MCE credit was awarded, that a person had completed an examination, or that the person had completed any other requirement for an MCE course;

(3) aiding or abetting a person to circumvent the requirements for attendance established by these sections, the completion of any examination or any other requirement for completion of an MCE course;

(4) failing to provide within 15 days information requested by the commission as a result of a complaint which would indicate a violation of these sections;

(5) disregarding or violating a provision of these sections or the Act; or

(6) making a materially false statement to the commission in response to a request from the commission for information relating to a complaint against the provider or instructor.

(f) Instructor teaching skills. Instructors must conduct themselves in a professional and courteous manner when performing their instructional duties and must conduct classes in a manner that demonstrates a mastery of the following basic teaching skills:

(1) The ability to communicate effectively through speech, including the ability to speak clearly at an appropriate rate of speed and with appropriate voice inflection, grammar and vocabulary.

(2) The ability to present an effective visual image to a class, including appropriate appearance and physical mannerisms.

(3) The ability to present instruction in a thorough, accurate, logical, orderly and understandable manner, to utilize illustrative examples as appropriate, and to respond appropriately to questions from students.

(4) The ability to effectively utilize varied instructional techniques in addition to straight lecture, such as class discussion, role playing or other techniques.

(5) The ability to effectively utilize instructional aids, such as the overhead projector, to enhance learning.

(6) The ability to maintain an appropriate learning environment and effective control of a class.

(7) The ability to interact with adult students in a positive manner that encourages students to learn, that demonstrates an understanding of varied student backgrounds, that avoids offending the sensibilities of students, and that avoids personal criticism of any other person, agency or organization.

(g) Disciplinary action against instructors. The commission may reprimand, suspend or revoke the registration or certification of an instructor to teach MCE courses when it has been determined that the instructor has been guilty of violating subsection (f) of this section.

(h) Orders. An order of suspension or revocation issued under this section may be probated upon reasonable terms and conditions as determined by 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 June 9, 2004.

TRD-200403789

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter I. LICENSES

22 TAC §§535.91, 535.92, 535.94

The Texas Real Estate Commission (TREC) proposes amendments to §535.91, concerning renewal applications, §535.92, concerning renewal: time for filing; satisfaction of mandatory continuing education requirements, and §535.94, concerning hearing on application disapproval: probationary licenses. The amendments to §535.91, §535.92, and §535.94 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 definitions.

In addition, the proposed revisions to §535.91 and §535.92 require all licensees to take a three hour legal update course and a three hour legal ethics course created for and approved by TREC to satisfy the 6 legal hours of mandatory continuing education required by Occupations Code §1101.455 (the Act). Elective courses to be used as credit for the remaining 9 hours required by §1101.455 of the Act must be presentations of relevant issues that impact the practice of real estate or which increase or support the development of skill and competence. Core and mandatory continuing legal education courses may be accepted for satisfying MCE elective credit only. Correspondence and alternate delivery method courses may be taken to satisfy elective and legal credit subject to certain conditions. A provider may grant partial credit to a student who attends less than the complete course registered with the commission only if the segments of the course for which partial credit may be granted are not less than one hour in length; the student must attend at least 50 minutes of the class hour to get credit for attendance for that hour. Under the proposed revisions, the commission may approve on an individual basis for MCE credit specific professional designation courses that a licensee takes and applies for credit using an MCE Professional Designation Request Form.

Loretta R. DeHay, general counsel, has determined that for the first five-year period the proposed revisions to 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 will be no 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 increased knowledge of current real estate related case law and statutory provisions due to the proposed requirements to attend commission created legal mandatory continuing education courses. 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 purpose and intent of the Act to insure compliance with the provisions of the Act.

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

§535.91.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.

(b) On or after January 1, 2005 and except as authorized by §535.92 of this chapter, for the next and all subsequent renewals of a license on active status that is not subject to the annual education requirements of §1101.454 of the Act, the license holder must attend during the term of the current license, at least two Commission-developed legal courses consisting of a three-hour legal update course and a three-hour legal ethics course to comply with the six legal hours of mandatory continuing education required by §1101.455 of the Act. The remaining nine hours required by §1101.455 of the Act may consist of elective credit courses registered with the commission under subchapter G of this chapter.

(c) 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.

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

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

(a) (No change.)

(b) If an application is filed within one year after the expiration of an existing license, the commission may issue the new license prior to completing the investigation of any complaint pending against the applicant or of any matter revealed by the application. The commission may thereafter initiate an action to suspend or revoke the license after notice and hearing in accordance with the Administrative Procedure Act, Texas Government Code, Chapter 2001 [ Texas Civil Statutes, Article 6573a, (the Act, §17) ].

(c) (No change.)

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

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

(g) [ A real estate licensee may not receive MCE credit for a license renewal unless the licensee attends all of the MCE course. ] Credit will not be given for attendance of the same course more than once during the term of the current license or during the two-year period preceding the filing of an application for late renewal or return to active status. Each licensee attending all sessions of a course shall sign the course completion roster, MCE Form 8- 4 [ 3 ] and provide the information required for each licensee on the form. A real estate licensee may receive partial credit for partial attendance at an MCE elective credit course if the provider permits partial credit and the provider and student verify attendance on the Individual MCE Partial Credit Request Form. A false statement to the commission concerning attendance at an MCE course will be deemed a violation of the Act [ , §15(a)(2) ] and of this section.

(h) A course taken by a Texas licensee to satisfy continuing education requirements of another state may be approved on an individual basis for MCE elective credit in this state upon the commission's determination that:

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

(5) the Texas licensee has filed MCE Form 10- 2 [ 0 ], MCE Credit Request for an Out of State Course Credit Request, with the commission.

(i) If a Texas licensee residing in another state takes a course that meets the requirements of §535.92(h) that course may be approved on an individual basis to satisfy MCE elective credit in this state.

(j) [ (i) ] To request MCE elective credit for real estate related courses approved by the State Bar of Texas for minimum continuing legal education participatory credit, a licensee shall [ either ] file MCE Form 12- 2 [ 1 ], Individual MCE Credit Request for State Bar Course [ or sign MCE Form 12A-0, Provider MCE Credit Request for State Bar Course, which may be filed by the course provider with the commission. ]

(k) [ (j) ] Real estate licensees may receive MCE elective credit for core real estate courses or core real estate inspection courses that have been approved by TREC or that are accepted by TREC for satisfying educational requirements for obtaining or renewing a license. Core real estate courses must be at least 30 classroom hours in length to be accepted for MCE elective credit.

(l) A course taken by a licensee to obtain any of the following professional designations, or any other real estate related professional designation course deemed worthy by the commission, may be approved on an individual basis for MCE elective credit if the licensee files for credit for the course using MCE Form 15-0 Individual MCE Elective Credit Request for Professional Designation Course and provides the Commission with a copy of the course completion certificate.

(1) ABR - Accredited Buyer Representative

(2) CRE - Counselor in Real Estate

(3) CPM - Certified Property Manager

(4) CCIM - Certified Commercial-Investment Member

(5) CRB - Certified Residential Broker

(6) CRS - Certified Residential Specialist

(7) GRI - Graduate, Realtor Institute

(8) IREM - Institute of Real Estate Management

(9) SIOR - Society of Industrial and Office Realtors.

§535.94.Hearing on Application Disapproval: Probationary Licenses.

(a) For the purposes of the Real Estate License Act, Texas Government Code, Chapter 1101, (the Act) [ Texas Civil Statutes, Article 6573a, (the Act) ], §§1101.364 and 1101.505 [ §10 ], "denial of a license" [ "declines or fails to register or license an applicant" ] means to disapprove an applicant for a real estate license for failure to comply with the requirement of the Act , § 1101.354(2) [ 6(b) ] to satisfy the commission as to the applicant's honesty, trustworthiness and integrity, or, if the applicant seeks registration as an easement or right-of-way agent, to disapprove an application for registration under §535.400 of this title (relating to Registration of Easement or Right-of-Way Agents.

(b) If the commission or an employee of the commission authorized by it to conduct hearings and render final decisions in contested cases determines that issuance of a probationary license is appropriate, the order entered with regard to the application must set forth the terms and conditions for the probationary license. Terms and conditions for a probationary license may include any of the following:

(1) that the probationary licensee comply with the Act [ Texas Civil Statutes, Article 6573a ] and with the rules of the Texas Real Estate Commission;

(2) - (6) (No change.)

(c) - (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 June 9, 2004.

TRD-200403790

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter J. FEES

22 TAC §535.101

The Texas Real Estate Commission (TREC) proposes amendments to 535.101, concerning fees. The amendments to §535.101 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.

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

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

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

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

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

§535.101.Fees.

(a) (No change.)

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

(1) - (8) (No change.)

(9) a fee of $400 for filing an application for accreditation of an education program under Texas Occupations Code [ Civil Statutes, Article 6573a ] (the Act), §1101.301 [ §7(f) ];

(10) a fee of $200 a year for operation of a real estate education program under the Act, §1101.301 [ §7(f) ];

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

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403791

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


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

22 TAC §535.122, §535.123

The Texas Real Estate Commission (TREC) proposes amendments to §535.122, concerning reactivation of license and §535.123, concerning inactive broker status. 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 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.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended 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 amendments.

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended 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 amendments.

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

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

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

§535.122.Reactivation of License.

(a) (No change.)

(b) When a salesperson whose license status is inactive enters the sponsorship of a broker and the salesperson is subject to mandatory continuing education (MCE) requirements, the salesperson is not returned to active status until MCE requirements are satisfied and the commission has received documentation of course completion in a form satisfactory to the commission. A salesperson whose original application or renewal application was subject to educational requirements imposed by the Real Estate License Act , Texas Occupations Code, Chapter 1101 (Act) , §1101.358 and §1101.454 [ §7 ], is not subject to MCE requirements as a condition of returning to active status during the term of the license issued from the original application or renewal application.

§535.123.Inactive Broker Status.

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

(c) To return to active status a broker who has been placed on inactive status must apply to the commission for return to active status on a form approved by the commission, pay the appropriate fee[ , ] and satisfy mandatory continuing education (MCE) requirements specified in Texas Occupations Code, Chapter 1101 [ Civil Statutes, Article 6573a ], (the Act) §1101.455 and the Rules of the Texas Real Estate Commission [ , §7A ].

(d) A broker who has been on inactive status may resume practice once the broker has satisfied MCE requirements, and [ all ] the application for return to active status and appropriate fee have been mailed to or delivered to the commission. [ A broker on inactive status is not subject to the requirements of the Act, §12(c), regarding display of license. ]

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403794

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter M. NONRESIDENTS

22 TAC §535.131, §535.132

The Texas Real Estate Commission (TREC) proposes amendments to §535.131, concerning unlawful conduct; splitting fees and §535.132, concerning eligibility for licensure. 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 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.

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

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be 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 amendments.

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

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

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

§535.131.Unlawful Conduct; Splitting Fees.

(a) The Real Estate License Act, Texas Occupations Code, Chapter 1101 [ Civil Statutes, Article 6573a ], (the Act) permits Texas-licensed brokers to cooperate with and share earned commissions with persons licensed as brokers in other states, but all negotiations physically conducted within Texas must be handled by Texas licensees.

(b) As used in §1101.651 [ §14 ] of the Act, the word "state" refers to the states, territories, and possessions of the United States and any foreign country or governmental subdivision thereof.

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

(e) A resident of a foreign state that does not require a person to be licensed to act as a real estate broker is considered to be licensed as a broker for the purposes of the Act, §1101.651 [ §14(a) ], if the person complies with the law of the foreign state and practices there as a real estate broker.

§535.132.Eligibility for Licensure.

(a) A person residing in another state may apply for a license under the provisions of Texas Occupations Code, Chapter 1101 [ Civil Statutes, Article 6573a ], (the Act), Subchapter H [ §14(b) ] and this section if the person:

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

(b) - (d) (No change.)

(e) To be eligible to receive a license and maintain an active license, a limited liability company or corporation created or chartered in another state must designate a person to act for it who meets the requirements of the Act, §1101.453 [ §6(c) ], although the designated person is not required to be a resident of Texas. Foreign corporations and limited liability companies also must be permitted to engage in business in this state to receive a Texas real estate broker license.

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403793

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter N. SUSPENSION AND REVOCATION OF LICENSURE

22 TAC §§535.141, 535.143, 535.147, 535.153, 535.154

The Texas Real Estate Commission (TREC) proposes amendments to §535.141, concerning initiation of investigation, §535.143, concerning fraudulent procurement of license; §535.147, concerning splitting fee with unlicensed person; §535.153, concerning violating an exclusive agency; and §535.154, concerning misleading advertising. 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 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.

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

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be 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 amendments.

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

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

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

§535.141.Initiation of Investigation.

(a) (No change.)

(b) If the Texas Real Estate Commission (the commission) receives a complaint, and such complaint on its face alleges a possible violation of the Real Estate License Act, Texas Occupations Code, Chapter 1101 [ Civil Statutes, Article 6573a ], (the Act), the commission shall investigate the complaint. The commission, on its own motion, with reasonable cause, may initiate an investigation of the actions and records of a licensee.

(c) - (j) (No change.)

§535.143.Fraudulent Procurement of License.

A violation of Texas Occupations Code [ the Act ], §1101.652(a)(2) [ §15(a)(2) ], occurs if an applicant for licensure for the applicant or a salesperson omits material information or makes material misstatements, written or oral, in connection with the filing of an application to obtain licensure. This does not include an unintentional mistake of fact; however, a broker submitting an application as sponsor of a proposed salesperson has an affirmative duty to ascertain that all information called for in the application is given and is true, correct and complete, whether the application is filled out by the broker or the prospective salesperson.

§535.147.Splitting Fee with Unlicensed Person.

(a) (No change.)

(b) "Commission or fees" includes any form of compensation received for engaging in an act for which a license is required by Texas Occupations Code, Chapter 1101 [ Civil Statutes, Article 6573a ].

(c) (No change.)

§535.153.Violating an Exclusive Agency.

Although a licensee, including one acting as agent for a prospective buyer or prospective tenant, may not attempt to negotiate a sale, exchange, lease, or rental of property under exclusive listing with another broker, Texas Occupations Code [ the Real Estate License Act, (Act) ], §1101.652(b)(22) [ §15(a)(6)(N), ] does not prohibit a licensee from soliciting a listing from the owner while the owner's property is subject to an exclusive listing with another broker.

§535.154.Misleading Advertising.

(a) - (g) (No change.)

(h) An advertisement placed where it is likely to attract the attention of passing motorists or pedestrians must contain language that clearly and conspicuously identifies as a real estate broker or agent the person publishing the advertisement. Advertisements in which the required language is not clear and conspicuous shall be deemed by the commission to be deceptive and likely to mislead the public for the purposes of Texas Occupations Code, Chapter 1101 [ Civil Statutes, Article 6573a ] (the Act), §1101.652(b)(23) [ §15(a)(6)(P) ]. The commission shall consider language as clear and conspicuous if it is in at least the same size of type or print as the largest telephone number in the advertisement, or it otherwise clearly and conspicuously identifies as a real estate broker or agent the person who published it. The commission shall consider advertisements not to be in compliance with this subsection if the required language is in print or type so small that it cannot be easily read from the street or sidewalk. This subsection does not apply to signs placed on real property listed for sale, rental or lease with the broker who has placed the sign, provided the signs otherwise comply with this section and the provisions of the Act regarding advertising.

(i) A real estate licensee placing an advertisement on the Internet, electronic bulletin board, or similar mechanism must include on each page on which the licensee's advertisement appears any information required by this section and the disclosure relating to the advertiser's status as a broker or agent required by §1101.652(b)(23) [ §15(a)(6)(P) ] of the Act.

(j) A real estate licensee placing an advertisement by using any electronic communication, including but not limited to E-mail and E-mail discussion groups, must include in the communication and in any attachment which is an advertisement the information required by this section and the disclosure relating to the advertiser's status as a broker or agent required by §1101.652(b)(23) [ §15(a)(6)(P) ] of the Act.

(k) - (l) (No change.)

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403795

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter O. HEARING ON SUSPENSION OR REVOCATION OF LICENSURE

22 TAC §535.171

The Texas Real Estate Commission (TREC) proposes amendments to §535.171, concerning subpoenas and fees. The amendments require a party appealing a final decision of the Texas Real Estate Commission in a contested case to pay the costs of preparing the original or certified copy of a record of the contested case proceedings. Under Government Code, §2001.177, an agency is required to clarify by rule if a party is required to pay the costs of preparing a transcript.

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

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended section will be clarification that the party appealing a decision in a contested case proceeding is responsible for the costs of preparing a transcript of the proceedings. There is an anticipated economic cost to persons who are required to comply with the proposed amendments as such persons will be responsible for bearing the transcription costs.

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

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

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

§535.171.Subpoenas and Fees.

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

(c) Pursuant to Texas Government Code §2001.177, a party seeking judicial review of a final decision of the Texas Real Estate Commission in a contested case shall pay all costs of preparing the original or certified copy of a record of the contested case proceedings.

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403796

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter R. REAL ESTATE INSPECTORS

22 TAC §§535.206, 535.208, 535.213 - 535.216, 535.220, 535.224, 535.227

The Texas Real Estate Commission (TREC) proposes amendments to §535.206, concerning The Texas Real Estate Inspector Committee, §535.208, concerning Application for a License, §535.213, concerning Schools and Courses of Study in Real Estate Inspection, §535.214, concerning Examinations, §535.215, concerning Inactive Inspector Status, §535.216, concerning Renewal of License or Registration, §535.220, concerning Professional Conduct and Ethics, §535.224, concerning Proceedings before the Committee, and §535.227, concerning Standards of Practice: General Provisions. 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 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.

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

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be 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 amendments.

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

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

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

§535.206.The Texas Real Estate Inspector Committee.

(a) The composition and functions of the committee are as prescribed by Texas Occupations Code, Chapter 1102 [ Civil Statutes, Article 6573a, §23 ].

(b) - (f) (No change.)

§535.208.Application for a License.

(a) A person desiring to be licensed shall file an application using forms prescribed by the commission. Prior to filing an application for a real estate inspector license or for a professional inspector license, the applicant must pay the required fee for evaluation of the education completed by the person and must obtain a written response from the commission showing the applicant meets current education requirements for the license. The commission may require an applicant to furnish materials such as source outlines, syllabi, course descriptions or official transcripts to verify course content or credit. The commission may not accept an application for filing if the application is materially incomplete or the application is not accompanied by the appropriate fee. The commission may not issue a license unless the applicant:

(1) (No change.)

(2) satisfies any experience or education requirements established by Texas Occupations Code, Chapter 1102 (Chapter 1102) [ the Real Estate License Act (the Act), §23 ], or by these sections;

(3) successfully completes any qualifying examination required by Chapter 1102 [ the Act ];

(4) (No change.)

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

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

(e) An application for a license may be denied if the commission determines that the applicant has failed to satisfy the commission as to the applicant's honesty, trustworthiness and integrity or if the applicant has been convicted of a criminal offense which is grounds for disapproval of an application under §541.1 of this title (relating to Criminal Offense Guidelines). Notice of the denial and any hearing on the denial shall be as provided in Texas Occupations Code, §1101.364, [ the Act, §10 ] and §533.34 of this title (relating to Disapproval of an Application for a License or Registration). For the purposes of this section, the term "late renewal" means an application for a license by a person who held the same type of license no more than two years prior to the filing of the application.

(f) (No change.)

§535.213.Schools and Courses of Study in Real Estate Inspection.

(a) Except as provided by this section, the accreditation and regulation of schools and courses of study in real estate inspection and the approval of instructors will be conducted as required for real estate schools by §535.64 of this title (relating to Accreditation of Schools and Approval of Courses and Instructors, §535.65 of this title (relating to Changes in Ownership or Operation of School; Presentation of Courses, Advertising, and Records) and §535.66 of this title (relating to Payment of Annual Fee, Audits, Investigations and Enforcement Actions). [ If an instructor was approved prior to the effective date of this section, the approval of the instructor expires May 1, 2001, and the instructor may apply for approval at any time. ]

(b) (No change.)

§535.214.Examinations.

(a) There shall be an examination for a real estate inspector license and for a professional inspector license. Questions shall be used which will measure competency in the subject areas required for a license by Texas Occupations Code, Chapter 1102 (Chapter 1102), [ Civil Statutes, Article 6573a, §23, (the Act) ] and which will demonstrate an awareness of its provisions relating to inspectors. Each real estate inspector applicant must achieve a score of at least 70% on the examination. Each professional inspector applicant must achieve a score of at least 80% on the examination.

(b) Except as otherwise required by Chapter 1102 [ the Act ] or this section, examinations shall be conducted as provided by §535.61 of this title (relating to Examinations).

§535.215.Inactive Inspector Status.

(a) For the purposes of this section, an "inactive" inspector is a licensed professional inspector, real estate inspector, or apprentice inspector who is not authorized by law to engage in the business of performing real estate inspections as defined by Texas Occupations Code, Chapter 1102, [ Civil Statutes, Article 6573a, §23, (the Act), ] and who has been placed on inactive status by the commission for any of the following reasons:

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

(b) - (f) (No change.)

§535.216.Renewal of License or Registration.

(a) A person licensed by the commission under Texas Occupations Code, Chapter 1102 (Chapter 1102) [ Civil Statutes, Article 6573a (the Act), §23 ], may renew the license by timely filing the prescribed application for renewal, paying the appropriate fee to the commission and satisfying applicable continuing education requirements as required by Chapter 1102 [ the Act, §23(k) ], and by §535.218 of this title (relating to Continuing Education).

(b) (No change.)

(c) A [ If the commission develops a system whereby licenses may be renewed electronically, a ] licensee also may renew an unexpired license by accessing the commission's Internet web site, entering the required information on the renewal application form, satisfying applicable education requirements and paying the appropriate fee in accordance with the instructions provided at the site by the commission.

(d) 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 Texas Occupations Code, §1101.656 [ the Act, §15B(b) ].

(e) Renewal applications filed after expiration of the license are subject to the increased fees provided by Chapter 1102 [ the Act, §23(f) ].

(f) - (g) (No change.)

§535.220.Professional Conduct and Ethics.

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

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

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

(3) If an inspector has knowledge of a possible violation of the rules of the Texas Real Estate Commission or Texas Occupations Code, Chapter 1102 [ Civil Statutes, Article 6573a, §23 ], the inspector should report the possible violation to the Texas Real Estate Commission.

(e) (No change.)

§535.224.Proceedings before the Committee.

(a) The committee may be authorized by the commission to conduct administrative hearings or recommend the entry of final orders by the commission, or both, in contested cases regarding:

(1) professional inspectors, real estate inspectors, or apprentice inspectors who are alleged to have violated a provision of Texas Occupations Code, Chapter 1102 (Chapter 1102) [ Civil Statutes, Article 6573a, (the Act), §23 ] or a rule of the commission;

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

(b) If the committee determines after a hearing that disciplinary action is warranted, the committee may recommend that the commission issue a reprimand, or suspend or revoke a license. The committee may recommend that an order of suspension or revocation be probated in whole or in part by the commission or that the probation be subject to reasonable terms and conditions in the manner contemplated by Texas Occupations Code, Chapter 1101, §1101.656 [ the Act, §15B(d) ]. The committee may recommend that the commission enter a final order denying a license or that a probationary license be issued in the manner contemplated by §535.94 of this title (relating to Hearing on Application Disapproval; Probationary License).

(c) (No change.)

(d) In addition to the grounds for disciplinary action provided in Chapter 1102 [ the Act, §23(l) ], a license of an inspector may be suspended or revoked by the commission if the inspector:

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

§535.227.Standards of Practice: General Provisions.

(a) Definition of terms. The following words have the following meanings, unless the context clearly indicates otherwise.

(1) Chapter 1102--Texas Occupations Code, Chapter 1102 [ Act--The Real Estate License Act, Article 6573a, Texas Civil Statutes ].

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

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

(d) Enforcement. Failure to comply with §535.227 of this title (relating to Standards of Practice: General Provisions), §535.228 of this title (relating to Standards of Practice: Inspection Guidelines for Structural Systems, §535.229 of this title (relating to Standards of Practice: Inspection Guidelines for Mechanical Systems: Appliances, Cooling Systems, Heating Systems, Ducts, Vents and Flues, and Plumbing Systems), §535.230 of this title (relating to Standards of Practice: Inspection Guidelines for Electrical Systems) and §535.231 of this title (relating to Standards of Practice: Optional Systems) is a ground for disciplinary action as prescribed by Chapter 1102 [ the Act, §23(1)(7) ] and §535.224 of this title (relating to Proceedings before the Committee).

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403797

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter S. RESIDENTIAL RENTAL LOCATORS

22 TAC §535.300

The Texas Real Estate Commission (TREC) proposes amendments to §535.300, concerning advertising by residential rental locators. 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 are also proposed in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rule.

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

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

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

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

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

§535.300.Advertising by Residential Rental Locators.

(a) This section is intended to establish standards relating to permissible forms of advertising by a person licensed as a real estate broker or salesperson and functioning as a residential rental locator ("locator"). For the purposes of this section, the term "residential rental locator" shall have the meaning provided by Texas Occupations Code, Chapter 1101 [ Civil Statutes, Article 6573a ] (the Act), §1101.002(6) [ §24 ]. For the purposes of this section, the term "advertisement" includes, but is not limited to advertising in printed form, signs, or advertising using radio, television or personal computers.

(b) - (d) (No change.)

(e) Advertising by locators must also comply with the provisions of the Act, §1101.652(b)(23) [ §15(a)(6)(P), ] and §535.154 of this title (relating to Misleading Advertising).

(f) Failure to comply with this section is grounds for the commission to reprimand a licensee, to suspend or revoke a license, or to impose an administrative penalty in accordance with the Act, §1101.757 [ §19 ].

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403799

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Subchapter T. EASEMENT OR RIGHT-OF-WAY AGENTS

22 TAC §§535.400, 535.402, 535.403

The Texas Real Estate Commission (TREC) proposes amendments to Subchapter T, §§535.400, 535.402, 535.403, concerning Easement or Right-of-Way Agents. 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 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.

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

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be 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 amendments.

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

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

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

§535.400.Registration of Easement or Right-of-Way Agents.

(a) (No change.)

(b) An individual desiring to be registered by the commission as an easement or right-of-way agent must file form ERW 1-2 with the commission. If the applicant is a business, the applicant must file form ERW 2-2. All applicants must submit the applicable fees set forth in The Real Estate License Act, Texas Occupations Code, Chapter 1101 [ Civil Statutes, Article 6573a ], (the Act). The commission will not accept an application which has been submitted without the correct filing fees or which has been submitted in pencil. A [ If the commission develops a system whereby a person may electronically file an application for registration, a ] person also may apply for registration by accessing the commission's Internet web site, entering the required information on the application form and paying the appropriate fee in accordance with the instructions provided at the site by the commission. If the person is an individual, the person must provide the commission with the person's photograph and signature prior to issuance of a registration certificate. The person may provide the photograph and signature prior to the submission of an electronic application. If the applicant does not complete the application process as required by this subsection, the commission shall terminate the application.

(c) (No change.)

(d) The commission shall assign a registration number to each registrant and shall provide each registrant with a certificate of registration. Each registration issued by the commission is valid until the last day of the month one year from the day the registration was issued. Each registrant shall display the certificate of registration issued by the commission in a prominent location in the registrant's place of business, as required by the Act, §1101.507 [ §12(e) ]. If the registrant maintains more than one place of business, the registrant shall display either the certificate or a copy of the certificate in each place of business.

(e) (No change.)

(f) The commission may disapprove an application for registration with written notice to the applicant if the applicant has been convicted of a criminal offense which is grounds for disapproval of an application under §541.1 of this title (relating to Criminal Offense Guidelines) or the applicant has engaged in conduct prohibited by the Act. Provided a timely written request for a hearing is made by the applicant in accordance with the Act, §1101.364 [ §10 ], an applicant whose application for registration has been disapproved is entitled to a hearing. The hearing on the application will be conducted in accordance with the provisions of the Act, §1101.364 [ §10 ], and Chapter 533 of this title (relating to Practice and Procedure).

§535.402.Complaints, Disciplinary Action and Appeals.

(a) (No change.)

(b) Appeals from disciplinary orders against a registrant will be governed by the Act, §1101.658 [ §18 ] and by Chapter 533 of this title (relating to Practice and Procedure).

§535.403.Renewal of Registration.

(a) The commission shall establish a time period for renewal of each registration, which shall end with the expiration date of the current registration. Each registrant has the responsibility to apply for renewal of a registration by making proper application as specified by this section. Applications must be made on the current renewal application form approved by the commission accompanied by an annual fee of $83. Failure to receive a registration renewal application form from the commission does not relieve a registrant of the obligation to obtain the appropriate form and to apply for renewal to maintain registration. A [ If the commission develops a system whereby registrations may be renewed electronically, a ] registrant also may renew an unexpired registration by accessing the commission's Internet web site, entering the required information on the renewal application form and paying the appropriate fee in accordance with the instructions provided at the site by the commission. Failure to provide information requested by the commission in connection with a renewal application is grounds for disciplinary action under the Act, §1101.653 [ §9A(c)(4) ]. A registrant who fails timely to pay a renewal fee must apply for and receive a new registration in order to act as an easement or right-of-way agent.

(b) (No change.)

(c) The commission shall advise each registrant of the time period for filing a renewal application and paying the renewal fee by mailing a renewal application form to the registrant's last known permanent mailing address as shown in the commission's computerized records at least three months before expiration of the current registration. Each registrant shall furnish a permanent mailing address to the commission and report a change in permanent mailing address within 10 days after the change occurs. If a registrant fails to provide a permanent mailing address, the last known mailing address for the registrant will be deemed to be the registrant's permanent mailing address. The commission shall have no obligation to so notify a business entity such as a corporation, limited liability company or partnership, that has failed to designate an officer, manager or partner who meets the requirements of Section 1101.502 [ 6(d) ] of the Act. The commission may not renew a registration issued to a business entity unless the entity has designated an officer, manager or partner who meets the requirements of the Act.

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

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

Filed with the Office of the Secretary of State on June 9, 2004.

TRD-200403800

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Chapter 537. PROFESSIONAL AGREEMENTS AND STANDARD CONTRACTS

22 TAC §537.11, §537.46

The Texas Real Estate Commission (TREC) proposes amendments to §537.11 and §537.46, concerning standard contract forms. These amendments would adopt by reference a revised contract form to be used by Texas real estate licensees.

Texas real estate licensees are generally required to use forms promulgated by TREC when negotiating contacts for the sale of real property. These forms are drafted by the Texas Real Estate Broker-Lawyer Committee, an advisory body consisting of six attorneys appointed by the President of the State Bar of Texas, six brokers appointed by TREC, and a public member appointed by the governor.

The amendment to §537.11 would renumber the revised form promulgated by TREC.

The amendment to §537.46 would adopt by reference Standard Contract Form TREC No. 39-4, Amendment. The form would be revised to delete Paragraph 3 regarding the option fee, add a new paragraph to extend the date for buyer to give written notice to seller that buyer cannot obtain financing approval as set forth in the Third Party Financing Condition, and renumber the form accordingly.

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

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be the availability of current standard contract forms. There is no anticipated economic cost to persons who are required to comply with the proposed amendments, other than the costs of obtaining copies of the forms, which would be available at no charge through the TREC web site, and available from private printers at an estimated cost of $7.50 per set of 50 copies.

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 adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapter 1101 and Chapter 1102; and to establish standards of conduct and ethics for its licensees to fulfill the purposes of Chapter 1101 and Chapter 1102 and ensure compliance with Chapter 1101 and Chapter 1102.

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

§537.11.Use of Standard Contract Forms.

(a) Standard Contract Form TREC No. 9-5 is promulgated for use in the sale of unimproved property where intended use is for one to four family residences. Standard Contract Form TREC No. 10-4 is promulgated for use as an addendum concerning sale of other property by a buyer to be attached to promulgated forms of contracts. Standard Contract Form TREC No. 11-5 is promulgated for use as an addendum to be attached to promulgated forms of contracts which are second or "back-up" contracts. Standard Contract Form TREC No. 12-1 is promulgated for use as an addendum to be attached to promulgated forms of contracts where there is a Veterans Administration release of liability or restoration entitlement. Standard Contract Form TREC No. 15-3 is promulgated for use as a residential lease when a seller temporarily occupies property after closing. Standard Contract Form TREC No. 16-3 is promulgated for use as a residential lease when a buyer temporarily occupies property prior to closing. Standard Contract Form 20-6 is promulgated for use in the resale of residential real estate. Standard Contract Form TREC No. 23-5 is promulgated for use in the sale of a new home where construction is incomplete. Standard Contract Form TREC No. 24-5 is promulgated for use in the sale of a new home where construction is completed. Standard Contract Form TREC No. 25-4 is promulgated for use in the sale of a farm or ranch. Standard Contract Form TREC No. 26-4 is promulgated for use as an addendum concerning seller financing. Standard Contract Form TREC No. 28-0 is promulgated for use as an addendum to be attached to promulgated forms of contracts where reports are to be obtained relating to environmental assessments, threatened or endangered species, or wetlands. Standard Contract Form TREC No. 30-4 is promulgated for use in the resale of a residential condominium unit Standard Contract Form TREC No. 32-0 is promulgated for use as a condominium resale certificate. Standard Contract Form TREC No. 33-0 is promulgated for use as an addendum to be added to promulgated forms of contracts in the sale of property adjoining and sharing a common boundary with the tidally influenced submerged lands of the state. Standard Contract Form TREC Form No. 34-1 is promulgated for use as an addendum to be added to promulgated forms of contracts in the sale of property located seaward of the Gulf Intracoastal Waterway. Standard Contract Form TREC Form No. 36-3 is promulgated for use as an addendum to be added to promulgated forms in the sale of property subject to mandatory membership in an owners' association. Standard Contract Form TREC Form No. 37-1 is promulgated for use as a resale certificate when the property is subject to mandatory membership in an owners' association. Standard Contract Form TREC Form No. 38-1 is promulgated for use as a notice of termination of contract. Standard Contract Form TREC Form No. 39-5 [ 39-4 ] is promulgated for use as an amendment to promulgated forms of contracts. TREC Form No. 40-1 is promulgated for use as an addendum to be added to promulgated forms of contracts when there is a condition for third party financing. TREC Form No. 41-0 is promulgated for use as an addendum to be added to promulgated forms of contracts when there is an assumption of a loan. TREC Form No. 42-0 is promulgated for use as a notice that buyer cannot obtain financing pursuant to the Third Party Financing Condition Addendum.

(b) - (j) (No change.)

§537.46.Standard Contract Form TREC No. 39-5 [ 39-4 ].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 39-5 [ 39-4 ] approved by the Texas Real Estate Commission in 2003. This document 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 June 9, 2004.

TRD-200403801

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: July 25, 2004

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


Part 25. STRUCTURAL PEST CONTROL BOARD

Chapter 591. GENERAL PROVISIONS

22 TAC §591.5

The Texas Structural Pest Control Board proposes an amendment to §591.5, concerning Board Meetings. The proposal will change the number of days notice required for a meeting.

Dale Burnett, Executive Director, has determined that there will be no fiscal implications as result of enforcing or administering the rule. There is no estimated additional cost or estimated reduction in cost for state government. There will be no estimated increase in revenue to state government for the first five-year period the rule will be in effect. There will be no estimated additional cost, estimated reduction in cost or estimated increase in revenue on local government for the first five-year period the rule will be in effect. There will be no cost of compliance for small businesses since the rule proposal does not affect them. There is no cost comparison for small or large businesses since they will not be affected by the rule proposal.

Dale Burnett, Executive Director, has determined that for each of the first five years the rule as proposed is in effect, the public benefits anticipated as a result of enforcing the rule as proposed will be that the agency can meet requirements of the Open Meetings Act. There are no economic costs to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Frank M. Crull, General Counsel, Structural Pest Control Board, P.O. Box 1927, Austin, TX 78767.

The amendment is proposed under the Texas Occupations Code, Chapter 1951, which provides the Structural Pest Control Board with the authority to license and regulate the structural pest control industry.

No other statute, code or article is affected by this proposal.

§591.5.Board Meetings.

(a) The board shall hold at least four regular meetings each year as authorized by the chairman. A special meeting shall be called when two or more members petition the chairman, in writing, to call such meeting.

(b) All board meetings will be held in Austin, Texas, unless a change of place is determined by the board.

(c) The executive director shall notify each board member of the date and place of meeting at least eight [ seven ] days prior to the date.

(d) There shall be a majority of board members present at any board meeting in order to have a quorum to transact business. All decisions of the board will be by simple majority of board members present.

(e) The minutes of the board shall be kept in such form and manner as the board may prescribe.

(f) In its deliberations, the board shall be governed by the current edition of Robert's Rules of Order unless the board by rule adopts a different procedure.

(g) The Board may order a public hearing in any pending matter other than a contested case where the public interest would be best served thereby.

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

Filed with the Office of the Secretary of State on June 8, 2004.

TRD-200403740

Dale Burnett

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8270


22 TAC §591.6

The Texas Structural Pest Control Board proposes an amendment to §591.6, concerning the Board Seal. The proposal will comply with the interpretation of the Texas Secretary of State on the appearance of the State Seal used by state agencies.

Dale Burnett, Executive Director, has determined that there will be no fiscal implications as result of enforcing or administering the rule. There is no estimated additional cost or estimated reduction in cost for state government. There will be no estimated increase in revenue to state government for the first five-year period the rule will be in effect. There will be no estimated additional cost, estimated reduction in cost or estimated increase in revenue on local government for the first five-year period the rule will be in effect. There will be no cost of compliance for small businesses since the rule proposal does not affect them. There is no cost comparison for small or large businesses since they will not be affected by the rule proposal.

Dale Burnett, Executive Director, has determined that for each of the first five years the rule as proposed is in effect, the public benefits anticipated as a result of enforcing the rule as proposed will be that a Board Seal approved by the Secretary of State to be used by all state agencies including the Board will be more recognizable to the public. There are no economic costs to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Frank M. Crull, General Counsel, Structural Pest Control Board, P.O. Box 1927, Austin, TX 78767.

The amendment is proposed under the Texas Occupations Code, Chapter 1951, which provides the Structural Pest Control Board with the authority to license and regulate the structural pest control industry.

No other statute, code or article is affected by this proposal.

§591.6.Board Seal.

The seal of the board shall be a circle with the words "The Texas Structural Pest Control Board" circularly arranged about the inner edge, and in the center of the circle, there shall be a five-pointed star, together with the live oak and olive branches [ common to other official state seals ].

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

Filed with the Office of the Secretary of State on June 8, 2004.

TRD-200403741

Dale Burnett

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8270


22 TAC §591.7

The Texas Structural Pest Control Board proposes an amendment to §591.7, concerning the Board records. The proposal will reflect the changes in the law from Open Records Act to Public Information Act and General Services Commission to Texas Building and Procurement Commission. The other change will allow other individuals besides the Executive Director to certify documents.

Dale Burnett, Executive Director, has determined that there will be no fiscal implications as result of enforcing or administering the rule. There is no estimated additional cost or estimated reduction in cost for state government. There will be no estimated increase in revenue to state government for the first five-year period the rule will be in effect. There will be no estimated additional cost, estimated reduction in cost or estimated increase in revenue on local government for the first five-year period the rule will be in effect. There will be no cost of compliance for small businesses since the rule proposal does not affect them. There is no cost comparison for small or large businesses since they will not be affected by the rule proposal.

Dale Burnett, Executive Director, has determined that for each of the first five years the rule as proposed is in effect, the public benefits anticipated as a result of enforcing the rule as proposed will be that the current and correct statute and commission will be identified to the public. The option for the Executive Director to designate someone else to certify records will make certified records more available to the public. There are no economic costs to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Frank M. Crull, General Counsel, Structural Pest Control Board, P.O. Box 1927, Austin, TX 78767.

The amendment is proposed under the Texas Occupations Code, Chapter 1951, which provides the Structural Pest Control Board with the authority to license and regulate the structural pest control industry.

No other statute, code or article is affected by this proposal.

§591.7.Board Records.

(a) All official records of the Board shall be public records open to inspection at any reasonable time by any person under the provisions of the Texas Public Information Act [ Open Records Act ]; but such records shall not be taken from the Board office.

(b) Copies of official records may be made and certified by the Chairman, Vice-Chairman, or the Executive Director or the Executive Director's designee , the expense thereof to be borne by the person or party requesting same. The cost of all such copies is set according to Texas Building and Procurement Commission [ General Services Commission ] rules.

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

Filed with the Office of the Secretary of State on June 8, 2004.

TRD-200403742

Dale Burnett

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8270


22 TAC §591.10

The Texas Structural Pest Control Board proposes an amendment to §591.10, concerning administrative penalties. The proposal will reflect the changes in codifying the Structural Pest Control Act from Art. 135b-6 to Occupations Code, Chapter 1951. The other change corrects the spelling of Executive Director in the rule to a uniform standard.

Dale Burnett, Executive Director, has determined that there will be no fiscal implications as result of enforcing or administering the rule. There is no estimated additional cost or estimated reduction in cost for state government. There will be no estimated increase in revenue to state government for the first five-year period the rule will be in effect. There will be no estimated additional cost, estimated reduction in cost or estimated increase in revenue on local government for the first five-year period the rule will be in effect. There will be no cost of compliance for small businesses since the rule proposal does not affect them. There is no cost comparison for small or large businesses since they will not be affected by the rule proposal.

Dale Burnett, Executive Director, has determined that for each of the first five years the rule as proposed is in effect, the public benefits anticipated as a result of enforcing the rule as proposed will be that the current and correct statute will be identified to the public. The title for the Executive Director's will also be corrected. There are no economic costs to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Frank M. Crull, General Counsel, Structural Pest Control Board, P.O. Box 1927, Austin, TX 78767.

The amendment is proposed under the Texas Occupations Code, Chapter 1951, which provides the Structural Pest Control Board with the authority to license and regulate the structural pest control industry.

No other statute, code or article is affected by this proposal.

§591.10.Administrative Penalties.

(a) The Executive Director shall be responsible, after investigation by the agency staff, for determining whether a violation of the Structural Pest Control Act (The Act) or a rule or order adopted by the Board has occurred which allows the assessment of an administrative penalty. If it is found a violation has occurred, the Executive Director may issue a violation report as described in the Act, Occ. Code, Chapter 1951 [ §10B ].

(b) The executive director shall base the recommended amount of the proposed penalty on the factors provided by the Act, Occ. Code, Chapter 1951 [ §10B(c) ].

(c) Within the time limits stated and the manner described in Occ. Code, Chapter 1951 [ §10B ], the executive director shall give written notice of the report to the person charged.

(d) If the person charged with the violation accepts the determination of the executive director, the executive director shall issue an order approving the determination and ordering payment of the recommended penalty.

(e) If the person charged requests a hearing or fails to respond in a timely manner, the executive director shall set a hearing to be conducted in the manner described in the Act, Occ. Code, Chapter 1951 [ §10B ]. The findings of fact, conclusions of law, and proposal for decision of such hearing shall be issued to the Structural Pest Control Board for its consideration.

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

Filed with the Office of the Secretary of State on June 8, 2004.

TRD-200403743

Dale Burnett

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8270


22 TAC §591.12

The Texas Structural Pest Control Board proposes an amendment to 22 TAC §591.12 concerning settlements. The first portion of the proposal will recognize that legal representatives can bind their clients to a settlement. The second portion of the proposal removes authority from a state investigator to propose informal settlements. This change is proposed because the practice has shifted to the enforcement staff.

Dale Burnett, Executive Director, has determined that there will be no fiscal implications as result of enforcing or administering the rule. There is no estimated additional cost or estimated reduction in cost for state government. There will be no estimated increase in revenue to state government for the first five-year period the rule will be in effect. There will be no estimated additional cost, estimated reduction in cost or estimated increase in revenue on local government for the first five-year period the rule will be in effect. There will be no cost of compliance for small businesses since the rule proposal does not affect them. There is no cost comparison for small or large businesses since they will not be affected by the rule proposal.

Dale Burnett, Executive Director, has determined that for each of the first five years the rule as proposed is in effect, the public benefits anticipated as a result of enforcing the rule as proposed will be that it will be clear to the public and licensees that the enforcement staff will be responsible for proposing informal settlements, not the investigators. The change also makes clear that a legal representative can bind his client to a settlement with the Board. There are no economic costs to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Frank M. Crull, General Counsel, Structural Pest Control Board, P.O. Box 1927, Austin, TX 78767.

The amendment is proposed under the Texas Occupations Code, Chapter 1951, which provides the Structural Pest Control Board with the authority to license and regulate the structural pest control industry.

No other statute, code or article is affected by this proposal.

§591.12.Settlements.

(a) It is Board policy to encourage resolution of complaints against structural pest control licenses. This provision provides procedures for the settlement of complaints.

(b) At the request of the licensee or the Executive Director, the Executive Director may designate a time and place for a settlement conference of a complaint investigated by the Board. A licensee shall be notified in writing of the time and place of the settlement conference and the alleged violations. Licensees or their legal representatives attending the conference shall be empowered to act on behalf of the licensee and bind the licensee to any settlement.

(c) Settlements may include any combination of sanctions available to the Board. They may also include requiring extra training and education and refunds not exceeding the original contracted amounts or services not different from the original contracted services.

(d) [ Informal settlements may be proposed by state investigators when authorized by the Executive Director. The settlements must follow the guidelines set out in this section, except that a state investigator shall not settle a complaint involving a misapplication. ] State investigators shall propose retreatments and/or refunds only as terms of their informal settlements. The retreatments and/or refunds shall not exceed the amounts or be different from the treatments agreed upon in the original contract for services.

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

Filed with the Office of the Secretary of State on June 8, 2004.

TRD-200403744

Dale Burnett

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8270


22 TAC §591.13

The Texas Structural Pest Control Board proposes an amendment to 22 TAC §591.13 concerning public comment. The proposal is made to change "shall" to "may" to reflect the permissive requirements of the Public Meetings Act on allowing a member of the public to speak at a public meeting of the Board.

Dale Burnett, Executive Director, has determined that there will be no fiscal implications as result of enforcing or administering the rule. There is no estimated additional cost or estimated reduction in cost for state government. There will be no estimated increase in revenue to state government for the first five-year period the rule will be in effect. There will be no estimated additional cost, estimated reduction in cost or estimated increase in revenue on local government for the first five-year period the rule will be in effect. There will be no cost of compliance for small businesses since the rule proposal does not affect them. There is no cost comparison for small or large businesses since they will not be affected by the rule proposal.

Dale Burnett, Executive Director, has determined that for each of the first five years the rule as proposed is in effect, the public benefits anticipated as a result of enforcing the rule as proposed will be that the regulation follows the law. There are no economic costs to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Frank M. Crull, General Counsel, Structural Pest Control Board, P.O. Box 1927, Austin, TX 78767.

The amendment is proposed under the Texas Occupations Code, Chapter 1951, which provides the Structural Pest Control Board with the authority to license and regulate the structural pest control industry.

No other statute, code or article is affected by this proposal.

§591.13.Public Comment.

A person may [ shall ] be permitted to appear before the Board during the public comment period regarding any issue under the jurisdiction of the Board. The Chairman may recognize any person to speak and reserves the right to limit the time allotted to the speaker.

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

Filed with the Office of the Secretary of State on June 8, 2004.

TRD-200403745

Dale Burnett

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8270


22 TAC §591.21

The Texas Structural Pest Control Board proposes an amendment to 22 TAC §591.21 concerning definition of terms. The first proposal reflects the codification to the Occupations Code of the Structural Pest Control Act. The second change is made to change add the definitions of "inactive license" and "unit". Those two terms reflects words in the regulations and Board policy that have not been defined previously.

Dale Burnett, Executive Director, has determined that there will be no fiscal implications as result of enforcing or administering the rule. There is no estimated additional cost or estimated reduction in cost for state government. There will be no estimated increase in revenue to state government for the first five-year period the rule will be in effect. There will be no estimated additional cost, estimated reduction in cost or estimated increase in revenue on local government for the first five-year period the rule will be in effect. There will be no cost of compliance for small businesses since the rule proposal does not affect them. There is no cost comparison for small or large businesses since they will not be affected by the rule proposal.

Dale Burnett, Executive Director, has determined that for each of the first five years the rule as proposed is in effect, the public benefits anticipated is that additional clarification to the Board's regulations and policies will be provided. There are no economic costs to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Frank M. Crull, General Counsel, Structural Pest Control Board, P.O. Box 1927, Austin, TX 78767.

The amendment is proposed under the Texas Occupations Code, Chapter 1951, which provides the Structural Pest Control Board with the authority to license and regulate the structural pest control industry.

No other statute, code or article is affected by this proposal.

§591.21.Definition of Terms.

In addition to the definitions set out in the Structural Pest Control Act[ , Section 2, ] the following words, names, and terms shall have the following meanings, unless the context clearly indicates otherwise.

(1) Act--The Texas Structural Pest Control Act, Occ. Code, Chpt. 1951 [ Texas Civil Statutes, Article 135b-6 ], as amended.

(2) Apprentice--A sales or service employee who has been registered with the Structural Pest Control Board, but has not yet passed a technician examination. An apprentice card is valid for a maximum of twelve (12) months.

(3) Bait Process--The use of food or other requisite that may be treated with a pesticide and/or other mitigating agent that will adversely affect the pest.

(4) Barrier--For the purposes of a termite treatment, an area of soil or other material which has been treated with a termiticide.

(5) Board--The Structural Pest Control Board

(6) Category--The type of service or services a person or business entity is authorized to perform.

(7) Chairman--An individual appointed by the Governor, who presides at the Board meetings.

(8) Contract--A binding agreement between two or more persons or parties that spell out in writing, the terms and conditions or such agreement, and will include, but not limited to, warranties or guarantees for pest control work.

(9) Document--any original or official application for technician exam, application for technician license, application for exam and certified applicator license, contract, electronic forms, drawing, guarantee, invoice, map, notice of pre-construction treatment, report, service agreement, termination notice, termite pre-treatment disclosure document, training records, Wood Destroying Insect report, warranty or other paperwork required by the Board. Relevant sections of the document must be filled out in its entirety when provided or presented by a licensee to either the customer or the Board. Documents required to be maintained by a licensee must be made available to the Board upon request.

(10) Executive Director--The person employed by the Board who administers the provisions of this of this Act and the rules and regulations promulgated by the Board.

(11) Investigator--A structural pest control investigator employed by the Board.

(12) Inactive license--license that reflects certification, but which prohibits the technician or certified applicator from doing any pest control services for compensation. [ License--A document issued by the Board to a person authorizing the practicing and/or supervising of the professional service or services indicated thereon. ]

(13) License--A document issued by the Board to a person authorizing the practicing and/or supervising of the professional service or services indicated thereon. [ Licensee--The holder of a valid license. ]

(14) Licensee--The holder of a valid license. [ Personal Contact--Physical presence at a work location. ]

(15) Personal Contact--Physical presence at a work location. [ Revoke--To cancel a license issued under authority of the Structural Pest Control Act. When a business license is revoked, the holder of said license must acquire a new license by completing a new application, and paying the required fee. In the case of the certified applicator, the holder of such certified applicator's license must acquire a new license by completing a new application, paying a required fee, and being re-examined in each category desired by said person. ]

(16) Revoke--To cancel a license issued under authority of the Structural Pest Control Act. When a business license is revoked, the holder of said license must acquire a new license by completing a new application, and paying the required fee. In the case of the certified applicator, the holder of such certified applicator's license must acquire a new license by completing a new application, paying a required fee, and being re-examined in each category desired by said person. [ Suspend--To cease operations for a period of time as specified by the Board. ]

(17) Suspend--To cease operations for a period of time as specified by the Board. [ Vice-Chairman--An individual appointed Board member elected by the Board who presides at the Board meeting in the absence of the Chairman. ]

(18) Unit--One hour of time.

(19) Vice-Chairman--An individual appointed Board member elected by the Board who presides at the Board meeting in the absence of the Chairman.

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

Filed with the Office of the Secretary of State on June 8, 2004.

TRD-200403746

Dale Burnett

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8270


22 TAC §591.23

The Texas Structural Pest Control Board proposes an amendment to 22 TAC §591.23 concerning historically underutilized businesses. The proposal will reflect the changes in the law from General Services Commission to Texas Building and Procurement Commission.

Dale Burnett, Executive Director, has determined that there will be no fiscal implications as result of enforcing or administering the rule. There is no estimated additional cost or estimated reduction in cost for state government. There will be no estimated increase in revenue to state government for the first five-year period the rule will be in effect. There will be no estimated additional cost, estimated reduction in cost or estimated increase in revenue on local government for the first five-year period the rule will be in effect. There will be no cost of compliance for small businesses since the rule proposal does not affect them. There is no cost comparison for small or large businesses since they will not be affected by the rule proposal.

Dale Burnett, Executive Director, has determined that for each of the first five years the rule as proposed is in effect, the public benefits is that the current and correct commission will be identified to the public. There are no economic costs to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Frank M. Crull, General Counsel, Structural Pest Control Board, P.O. Box 1927, Austin, TX 78767.

The amendment is proposed under the Texas Occupations Code, Chapter 1951, which provides the Structural Pest Control Board with the authority to license and regulate the structural pest control industry.

No other statute, code or article is affected by this proposal.

§591.23.Historically Underutilized Businesses.

The Structural Pest Control Board adopts by reference, the rules promulgated by the Texas Building and Procurement [ General Services ] Commission as set forth in Title 1, Part 5 [ V ], Chapter 111, Subchapter B, §§111.11-111.24. of the Texas Administrative Code regarding the Historically Underutilized Business Certification Program".

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

Filed with the Office of the Secretary of State on June 8, 2004.

TRD-200403747

Dale Burnett

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 305-8270