Part 23. TEXAS REAL ESTATE COMMISSION
Chapter 535. GENERAL PROVISIONS
Subchapter I. LICENSES
The Texas Real Estate Commission (TREC) adopts amendments to §535.92 concerning Renewal: Time for Filing; Satisfaction of Mandatory Continuing Education (MCE) Requirements and §535.95 concerning Miscellaneous Provisions Concerning License or Registration Renewals. The amendment to §535.92 is adopted with changes to the proposed text as published in the March 21, 2008, issue of the Texas Register (33 TexReg 2474). The proposed changes to §535.92(h) were needed to provide consistency with changes made in proposed §535.62 and §535.71. The proposed amendments to §535.62 and §535.71 are being withdrawn and the change to §535.92(h) is no longer needed. Section 535.95 is adopted without changes.
The amendments to §535.92(f) change the procedure for licensees who choose to pay an MCE deferral fee under §1101.457, Texas Occupations Code to defer MCE requirements for an additional 60 days after the date the license is renewed. If a licensee fails to timely pay the deferral fee or fails to complete the MCE requirements within the 60-day period, the license will be placed on inactive status. To reactivate the license, the licensee must pay an additional $250 fee, pay the original $200 deferral fee, complete the MCE requirements, certify that the licensee has not engaged in real estate brokerage activity, and pay the appropriate change fee.
The amendments to §535.95 clarify recent amendments to the Real Estate License Act (the Act), Texas Occupations Code, Chapter 1101, enacted by House Bill 1530, 80th Legislative Session, Regular Session, regarding fingerprinting requirements. The amendments would clarify fingerprinting procedures in cases where a licensee renews a license, has been fingerprinted, and the fingerprints have been rejected by the DPS or the FBI. The amendments amend the text of the title of the section and authorize the commission to renew a salesperson or broker license on active status if the licensee has provided at least one set of fingerprints to the Department of Public Safety (DPS), the fingerprints were rejected by the DPS or the Federal Bureau of Investigation (FBI), and the licensee has met all other requirements for renewal of the license including paying a renewal fee and completing or properly deferring MCE (MCE) requirements. In some cases the DPS or the FBI requires that the licensee, at no additional cost, submit additional data or more fingerprints if the first set of fingerprints were rejected for technical reasons. The amendments authorize the commission to issue the license in such cases if the licensee has otherwise complied with all other renewal requirements and require the commission to notify the licensee that the licensee needs to contact the DPS to submit additional fingerprints. The rule authorizes the commission to take disciplinary action against a licensee for failing to provide the requested data in a timely manner.
The reasoned justification for §535.92(f) as adopted is greater efficiency because fewer cases will be referred to enforcement for persons who fail to comply with the late MCE requirements, as such licenses will automatically go on inactive status if the licensee fails to timely comply.
The reasoned justification for §535.95 as adopted is that applicants for renewal who have complied with all requirements for renewal, but whose fingerprints have been rejected by the DPS or the FBI due to technical difficulties, may be issued a license, and the Commission will be able to obtain new fingerprints or other information necessary for renewal after the license is issued.
No comments were received regarding the amendments to §535.92(f) or §535.95 as proposed.
The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to ensure compliance with the provisions of the Act.
§535.92.Renewal: Time for Filing; Satisfaction of Mandatory Continuing Education Requirements.
(a) A renewal application is timely filed if it is received by the commission or postmarked on or before the expiration date of the license. If the license expires on a Saturday, Sunday or other day on which the headquarters office of the commission is not open for business, the renewal application is timely filed if the application is received or postmarked no later than the first business day after the expiration date of the license.
(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.
(c) The commission shall advise each licensee of the time period for filing a renewal application and paying the renewal fee by mailing an appropriate notice to the licensee as prescribed by §535.91 of this title (Relating to Renewal Notices). If the licensee is subject to mandatory continuing education (MCE) requirements, the notice must also contain the number of MCE hours for which the licensee has been given credit and the number of additional MCE hours required for renewal of the license. The commission shall have no obligation to so notify an inactive licensee who has failed to furnish the commission with the person's permanent mailing address or a corporation, limited liability company or partnership that has failed to designate an officer, manager or partner who meets the requirements of the Real Estate License Act (the Act).
(d) A licensee shall 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) The commission may not renew a license issued to a corporation, limited liability company or partnership unless the corporation, limited liability company or partnership has designated an officer, manager or partner who meets the requirements of the Act, including satisfaction of MCE requirements. No person may act as designated officer, manager or partner if the person has failed to meet MCE requirements. For the purpose of this section, MCE requirements for the designated officer, manager or partner must be satisfied during the term of any individual broker license held by the officer, manager or partner. A designated partner who is not licensed individually as a broker must complete MCE required for a two-year license within the term of the partnership's license in order to renew the license of the partnership. If the individual real estate broker license of a designated partner expires, the partnership may only renew its license if the designated partner has satisfied MCE requirements that would have been imposed if the license of the designated partner had not expired.
(f) Notwithstanding any provisions of the Act to the contrary, when a licensee in an active status files a timely application to renew a current license and has satisfied all requirements other than the completion of applicable MCE requirements, the commission shall renew the current license in an active status.
(1) If the licensee has not completed MCE requirements prior to the expiration of the current license, the licensee must, within 60 days after the effective date of the new license, pay an additional MCE deferral fee of $200 AND complete the required number of MCE hours.
(2) If, within 15 days after the end of the 60 day period set out in paragraph (1) of this subsection, the commission has not been provided with evidence that the licensee has completed the required number of MCE hours and paid the MCE deferral fee of $200, the renewed license shall be placed on inactive status.
(3) In order to reactivate a license placed on inactive status under this subsection, the licensee must:
(A) provide the commission with evidence that the licensee has completed the required MCE hours;
(B) certify, on a form acceptable to the commission, that the licensee has not engaged in activity requiring a license at any time after the license became inactive;
(C)complete and submit a Request to Return to Active Status Form if a broker or a Salesperson Sponsorship Form if a salesperson and pay the appropriate fee;
(D) if the license was placed on inactive status because the licensee failed to timely pay the $200 MCE deferral fee required by paragraph (1) of this subsection, the licensee must, because the licensee received the benefits of the 60-day deferral, pay the $200 MCE deferral fee; and
(E) pay a late reporting fee of $250.
(4) For the purpose of this section, a renewed license is effective the day following the expiration of the current license. MCE courses completed after expiration of the current license under this provision may not be applied to the following renewal of the license.
(g) 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 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 MCE Form 14-0, 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 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) the Texas licensee held an active real estate license in the other state at the time the course was taken;
(2) the course was approved for continuing education credit for a real estate license by the other state and, if a correspondence course, was offered by an accredited college or university;
(3) the Texas licensee's successful completion of the course has been evidenced by a course completion certificate, a letter from the provider or such other proof as is satisfactory to the commission;
(4) the subject matter of the course was predominately devoted to a subject acceptable for MCE credit in this state; and
(5) the Texas licensee has filed MCE Form 10-2, MCE Credit Request for an Out of State Course Credit Request, with the commission.
(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 file MCE Form 12-2, Individual MCE Credit Request for State Bar Course.
(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.
(k) 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
(l) Effective September 1, 2007, a member of the Texas Legislature who is a licensee need only take three (3) hours in legal ethics to the satisfy the legal mandatory continuing education requirements. To obtain an exemption, the licensee must be a current member of the Legislature.
(m) If a licensee is unable to renew a license on the commission's Internet website, the licensee may renew an unexpired license by obtaining a renewal application form from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 and complying with the requirements of this section and §535.91 of this chapter.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 12, 2008.
TRD-200802461
Loretta DeHay
General Counsel and Assistant Administrator
Texas Real Estate Commission
Effective date: June 1, 2008
Proposal publication date: March 21, 2008
For further information, please call: (512) 465-3900
The Texas Real Estate Commission (TREC) adopts amendments to §535.101 regarding Fees without changes to the proposed text as published in the March 21, 2008, issue of the Texas Register (33 TexReg 2476). The text of the rule will not be republished.
The amendments add a fee charged by the Federal Bureau of Investigation for a national criminal history check in connection with a license renewal. The fee is variable, but is currently set at $19.25. The amendments also impose a late reporting fee of $250 for licensees who fail to timely comply with the requirements of 22 TAC §535.92(f). Under §1101.457, Texas Occupations Code, a licensee may pay a $200 MCE deferral fee to defer MCE requirements for an additional 60 days after the date the license is renewed. If a licensee fails to timely pay the deferral fee or fails to complete the MCE requirements within the 60-day period, the license will be placed on inactive status under amendments to 22 TAC §535.92(f) (adopted elsewhere in this issue of the Texas Register). To reactivate the license, the licensee must pay the $250 late reporting fee, pay the original $200 deferral fee, complete the MCE requirements, certify that the licensee has not engaged in real estate brokerage activity, and pay the appropriate change fee.
The reasoned justification for the rule as adopted is to provide for a national criminal history check to be conducted on every renewal of a real estate salesperson and broker license as required by law, and that fewer cases will be referred to enforcement for persons who fail to comply with the late MCE requirements as such licenses will automatically go on inactive status if the licensee fails to timely comply.
No comments were received regarding the amendments as proposed.
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 to establish standards of conduct and ethics for its licensees to fulfill the purposes of Chapter 1101 and ensure compliance with Chapter 1101.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 12, 2008.
TRD-200802462
Loretta DeHay
General Counsel and Assistant Administrator
Texas Real Estate Commission
Effective date: June 1, 2008
Proposal publication date: March 21, 2008
For further information, please call: (512) 465-3900