TITLE 22. EXAMINING BOARDS

PART 8. TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD

CHAPTER 157. RULES RELATING TO PRACTICE AND PROCEDURE

SUBCHAPTER A. GENERAL PROVISIONS

22 TAC §§157.4, 157.7, 157.8

The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §157.4, Computation of Time; Mailbox Rule, and §157.8, Order Modifications, without changes to the proposed text, as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1177). These rules will not be republished. The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §157.7, Denial of a License, Renewal or Reinstatement; Adverse Action Against a License Holder, with changes to correct referencing to the Texas Administrative Code. This rule will be republished. The amendments are adopted following a comprehensive review of this chapter to better reflect current TALCB procedures and to simplify and clarify where needed.

The amendments to §157.4 account for circumstances when the agency's physical building may be closed, but the agency is otherwise open for business. The amendments to §157.7 clarify the rule's applicability to unlicensed activity. The amendments to §157.8 clarify when a request for modification should be filed.

No comments were received on the amendments as published.

The amendments are adopted under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules for certifying or licensing an appraiser or appraiser trainee and §1103.154, which authorizes TALCB to adopt rules relating to professional conduct, and §1104.051, which authorizes TALCB to adopt rules necessary to administer the provisions of Chapter 1104.

§157.7.Denial of a License, Renewal or Reinstatement; Adverse Action.

(a) Denial of a License, Renewal, or Reinstatement.

(1) If the Board denies the issuance, renewal or reinstatement of a license, the Board shall promptly give written notice of denial to the applicant. If the applicant is supervised by another license holder, the Board shall send a copy of the notice of denial to the supervisory appraiser.

(2) The notice of denial shall include:

(A) a statement of the Board's action;

(B) a summary of the facts and laws on which the action is based;

(C) a statement of the right of the person to request a hearing; and

(D) the following language in capital letters in boldface type: IF YOU FAIL TO REQUEST A HEARING IN WRITING WITHIN 30 DAYS, THIS DETERMINATION WILL BECOME FINAL.

(3) If a person fails to request a hearing in writing within 30 days of receiving the notice, the Board's determination will become final.

(b) Adverse Action.

(1) If the Board proposes to take adverse action against a license holder, former license holder, registrant, or a person for unlicensed activity, the Board shall promptly give written notice to the person against whom the action is proposed to be taken. If an appraiser trainee is the respondent, the Board shall send a copy of the notice to the supervisory appraiser.

(2) The notice of adverse action shall include:

(A) a summary of the facts and laws on which the proposed action is based;

(B) a statement of the action proposed by the Board, including the proposed sanction and/or the amount of any administrative penalties; and

(C) a statement of the right of the person to a hearing.

(c) A license holder who has agreed in writing to suspension or revocation for failure to comply with the terms of a consent order, consent agreement, or agreed order in connection with an application or a previous disciplinary matter is deemed to have had notice and an opportunity for a hearing in a subsequent action resulting from failure to comply with an administrative requirement of probation, such as payment of a fee or completion of coursework.

(d) Notices sent under this section are complete and effective if sent in the manner described in §157.9 of this title (relating to Notice of Hearing).

(e) The mailbox rule described in §157.9 of this title applies to notices sent under this section if the notice was sent to the respondent's or applicant's mailing address or email address as shown in the Board's records in the manner described in §157.9 of this title.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 6, 2022.

TRD-202201801

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Effective date: May 26, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3652


SUBCHAPTER B. CONTESTED CASE HEARINGS

22 TAC §157.9, §157.10

The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §157.9, Notice of Hearing, and §157.10, Right to Counsel; Right to Participate, without changes to the proposed text, as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1179). The rules will not be republished. The amendments are adopted following a comprehensive review of this chapter to better reflect current TALCB procedures and to simplify and clarify where needed.

The amendments to §157.9 clarify TALCB's procedure for providing notice of hearing consistent with Section 1103.502 of the Texas Occupations Code.

No comments were received on the amendments as published.

The amendments are adopted under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules for certifying or licensing an appraiser or appraiser trainee and §1103.154, which authorizes TALCB to adopt rules relating to professional conduct, and §1104.051, which authorizes TALCB to adopt rules necessary to administer the provisions of Chapter 1104.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 6, 2022.

TRD-202201802

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Effective date: May 26, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3652


SUBCHAPTER C. POST HEARING

22 TAC §157.17, §157.18

The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §157.17, Final Decisions and Orders, and §157.18, Motions for Rehearing, without changes to the proposed text, as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1180). The rules will not be republished. The amendments are adopted following a comprehensive review of this chapter to better reflect current TALCB procedures and to simplify and clarify where needed.

The proposed amendments to §157.17 align the section more closely with the applicable statute (§ 2001.058(e), Government Code). The proposed amendments to §157.18 define the methods in which a motion for rehearing may be filed with TALCB.

No comments were received on the amendments as published

The amendments are adopted under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules for certifying or licensing an appraiser or appraiser trainee and §1103.154, which authorizes TALCB to adopt rules relating to professional conduct, and §1104.051, which authorizes TALCB to adopt rules necessary to administer the provisions of Chapter 1104.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 6, 2022.

TRD-202201803

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Effective date: May 26, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3652


SUBCHAPTER E. ALTERNATIVE DISPUTE RESOLUTION

22 TAC §§157.30 - 157.33, 157.36 - 157.38

The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §157.30, Alternative Dispute Resolution; §157.31, Investigative Conference; §157.32, Negotiated Settlement; §157.33, Mediation; §157.36, Stipulations; §157.37, Agreements; and §157.38, Confidentiality, without changes to the proposed text, as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1182). The rules will not be republished. The amendments are adopted following a comprehensive review of this chapter to better reflect current TALCB procedures and to simplify and clarify where needed.

The amendments to §§157.31(j); 157.33(a); and 157.37(b) reflect changes to TALCB division names. In §157.32, the amendments add an additional method for conducting negotiations, consistent with §157.31. Finally, the amendments to §157.33(e) clarify the equal splitting of fees incurred between parties attending mediation.

No comments were received on the amendments as published.

The amendments are adopted under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules for certifying or licensing an appraiser or appraiser trainee and §1103.154, which authorizes TALCB to adopt rules relating to professional conduct, and §1104.051, which authorizes TALCB to adopt rules necessary to administer the provisions of Chapter 1104.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 6, 2022.

TRD-202201804

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Effective date: May 26, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3652


PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 531. CANONS OF PROFESSIONAL ETHICS AND CONDUCT

22 TAC §§531.1 - 531.3

The Texas Real Estate Commission (TREC) adopts the repeal of 22 TAC §531.1, Fidelity; §531.2, Integrity; and §531.3, Competency, in Chapter 531, Canons of Professional Ethics and Conduct, without changes to the text, as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1185). The rules will not be republished.

The repeal of these sections is made as a result of the Commission's quadrennial rule review, and more specifically, is the result of a new definitions section in this chapter, which will require the renumbering of these sections. TREC will renumber and replace these rules, with some changes.

No comments were received on the repeal as published.

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

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201758

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


22 TAC §§531.1 - 531.4, 531.19, 531.20

The Texas Real Estate Commission (TREC) adopts new 22 TAC §531.1, Definitions; §531.2, Fidelity; §531.3, Integrity; §531.4, Competency; and amendments to §531.19, Discriminatory Practices, and §531.20, Information About Brokerage Services, in Chapter 531, Canons of Professional Ethics and Conduct. Sections 531.2 - 531.4, 531.19, and 531.20 are adopted without changes to the text as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1185). The rules will not be republished. Section 531.1 is adopted with one non-substantive change to the text (the insertion of the word "Texas" before "Occupations" in §531.1(2)) as published in the March 11, 2022, issue of the Texas Register. The rule will be republished.

The new rules and amendments to Chapter 531 are made as a result of the Commission's quadrennial rule review. The changes add a new definitions section for ease of reading and update terminology for consistency throughout the chapter. Importantly, the amendments to both 22 TAC §531.18, Consumer Information, and 22 TAC §531.20, Information About Brokerage Services, are not intended to change who must comply with these rules (i.e., active real estate brokers and sales agents), but merely to use more consistent and concise language.

No comments were received on the proposed new rules and amendments as published.

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

§531.1.Definitions.

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.

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

(2) License Holder--A real estate broker or sales agent licensed under Chapter 1101, Texas Occupations Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201759

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


22 TAC §531.18

The Texas Real Estate Commission (TREC) adopts amendments to §531.18, Consumer Information, in Chapter 531, Canons of Professional Ethics and Conduct, without changes to the text, as published in the March 25, 2022, issue of the Texas Register (47 TexReg 1587). The rule will not be republished.

The amendments to Chapter 531 are made as a result of the Commission's quadrennial rule review. Importantly, the amendments to 22 TAC 531.18, Consumer Information, are not intended to change who must comply with this rule i.e., active real estate brokers and sales agents), but merely to use more consistent and concise language.

No comments were received on the proposed amendments as published.

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201766

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


CHAPTER 533. PRACTICE AND PROCEDURE

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §533.2, Purpose and Scope; §533.3, Filing and Notice; §533.4, Failure to Answer, Failure to Attend Hearing and Default; §533.5, Transcript Cost; §533.7, Final Decisions and Orders; §533.21, Negotiated Settlement; §533.25, Informal Proceedings; §533.30, Staff Mediation; §533.32, Appointment of Mediator; §533.33, Outside Mediation; §533.36, Agreements; and §533.40, Negotiated Rulemaking, in Chapter 533, Practice and Procedure, without changes to the text as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1187). These rules will not be republished. The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §533.1, Definitions, and §533.8, Motions for Rehearing, in Chapter 533, Practice and Procedure, with changes to the text as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1187). These rules will be republished. The change to §533.1 was to correct alphabetization, while the change to §533.8 was to replace verbiage to make the rule clearer.

The amendments to Chapter 533 are made as a result of the Commission's quadrennial rule review. The proposed changes update terminology for consistency throughout the chapter. The language "Interpreters and Translators" is added to the title of 22 TAC §533.5, Transcript Cost, to better reflect the content of the section and language is removed from subsection (b) that was inconsistent with applicable law. Subsection (f) of 22 TAC §533.7, is amended to more closely align with the applicable statute (§2001.058(e), Government Code). Finally, subsection (d) of 22 TAC §533.8 is amended to increase transparency regarding the motion for rehearing process.

No comments were received on the proposed amendments as published.

SUBCHAPTER A. DEFINITIONS

22 TAC §533.1

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

§533.1.Definitions.

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.

(1) ADR--Alternative dispute resolution.

(2) ADR Procedures--Alternatives to judicial forums or administrative agency contested case proceedings for the voluntary settlement of contested matters through the facilitation of an impartial third-party.

(3) APA--The Administrative Procedure Act (Texas Government Code, Chapter 2001).

(4) Applicant--Any person seeking a license, certificate, registration, approval, or permit from the Commission.

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

(6) Complainant--Any person who has filed a complaint with the Commission against any person whose activities are subject to the jurisdiction of the Commission.

(7) Contested case or proceeding--A proceeding in which the legal rights, duties, or privileges of a party are to be determined by the Commission and/or the Executive Director after an opportunity for adjudicative hearing.

(8) Executive Director--The Executive Director of the Texas Real Estate Commission.

(9) License--The whole or part of any registration, license, certificate, approval, permit, or similar form of permission required or permitted by law issued by the Commission.

(10) Mailing Address--The mailing address as provided to the Commission by a license holder and maintained as required by the Commission's rules or as provided to the Commission by an applicant or as shown in the Commission's records for a respondent who is not a license holder. The mailing address for a respondent that holds an active sales agent license shall be the mailing address of the sales agent's sponsoring broker as shown in the Commission's records.

(11) Party--A person admitted to participate in a case before the Commission or the Executive Director.

(12) Person--Any individual, partnership, corporation, or other legal entity, including a state agency or governmental subdivision.

(13) Pleading--A written document submitted by a party, or a person seeking to participate in a case as a party, which requests procedural or substantive relief, makes claims, alleges facts, makes legal arguments, or otherwise addresses matters involved in the case.

(14) Respondent--Any person, licensed or unlicensed, who has been charged with violating a law that establishes a regulatory program administered by the Commission or a rule or order issued by the Commission.

(15) Sanctions--Any administrative penalty, disciplinary or remedial action imposed by the Commission for violations of Texas Occupations Code, Chapter 1101, 1102, or 1105 or the Rules adopted by the Commission pursuant to those chapters.

(16) SOAH--State Office of Administrative Hearings.

(17) TAC--Texas Administrative Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201768

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


SUBCHAPTER B. GENERAL PROVISIONS RELATING TO PRACTICE AND PROCEDURE

22 TAC §§533.2 - 533.5, 533.7, 533.8

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

§533.8.Motions for Rehearing.

(a) The timely filing of a motion for rehearing is a prerequisite to appeal. The motion must be filed with the Commission by:

(1) delivering the motion in-person to the Commission's headquarters;

(2) sending the motion via email to administration@trec.texas.gov; or

(3) sending the motion via fax to (512) 936-3788, ATTN: TREC General Counsel.

(b) Motions for rehearing are controlled by the APA, §§2001.145 - 2001.147 and this section.

(c) A motion for rehearing shall set forth the particular finding of fact, conclusion of law, ruling, or other action which the complaining party asserts caused substantial injustice to the party and was in error, such as violation of a constitutional or statutory provision, lack of authority, unlawful procedure, lack of substantial evidence, abuse of discretion, other error of law, or other good cause specifically described in the motion. In the absence of specific grounds in the motion, the Commission will take no action and the motion will be overruled by operation of law.

(d) The Commission delegates authority to hear and rule on motions for rehearing to the Commission's Enforcement Committee, consisting of three Commission members appointed by the Commission chair. A motion for rehearing may be ruled upon pursuant to §2001.146(d), Texas Government Code.

(e) Any party may request oral arguments before the Enforcement Committee prior to the final disposition of the motion for rehearing. If the Enforcement Committee grants a request for oral argument, oral arguments will be conducted in accordance with paragraphs (1) - (5) of this subsection.

(1) The chair of the Enforcement Committee or the member designated by the chair to preside (the presiding member) shall announce the case. Upon the request of any party, the presiding member may conduct a prehearing conference with the parties and their attorneys of record. The presiding member may announce reasonable time limits for any oral arguments to be presented by the parties.

(2) The hearing on the motion shall be limited to a consideration of the grounds set forth in the motion. Testimony by affidavit or documentary evidence, such as excerpts of the record before the presiding officer, may be offered in support of, or in opposition to, the motion; provided, however, a party offering affidavit testimony or documentary evidence must provide the other party with copies of the affidavits or documents at the time the motion is filed. New evidence may not be presented on the substance of the case unless the party submitting the evidence can establish that the new evidence was not reasonably available at the time of the original hearing, or the party offering the evidence was misled by a party regarding the necessity for offering the evidence at the original hearing.

(3) In presenting oral arguments, the party filing the motion will have the burden of proof and persuasion and shall open and close. The party responding to the motion may offer rebuttal arguments. Parties may request an opportunity for additional rebuttal, subject to the discretion of the presiding member.

(4) After being recognized by the presiding member, the members of the Enforcement Committee may ask questions of the parties. If a party is represented by counsel, the questions must be directed to the party's attorney. Questions must be limited to the grounds asserted for the motion to be granted and to the arguments made by the parties.

(5) Upon the conclusion of oral arguments, questions by the members of the Enforcement Committee, and any discussion by the members of the Enforcement Committee, the presiding member shall call for a vote on the motion. A member of the Enforcement Committee need not make a separate motion or second a motion filed by a party. The presiding member may vote on the motion. A motion may be granted only if a majority of the Enforcement Committee members are present and vote in favor of the motion. In the event of a tie vote, the presiding member shall announce that the motion is overruled.

(f) A petition for judicial review must be filed in a District Court of Travis County Texas as provided by the APA. A party filing a petition for judicial review must also comply with the requirements of Texas Occupations Code, §1101.707.

(g) A party who appeals a final decision in a contested case must pay all costs for the preparation of the original or a certified copy of the record of the agency proceeding that is required to be transmitted to the reviewing court.

(h) If, after judicial review, the administrative penalty is reduced or not assessed, the Executive Director shall remit to the person charged the appropriate amount, plus accrued interest if the administrative penalty has been paid, or shall execute a release of the bond if a supersedes bond has been posted. The accrued interest on amounts remitted by the Executive Director under this subsection shall be paid at a rate equal to the rate charged on loans to depository institutions by the New York Federal Reserve Bank, and shall be paid for the period beginning on the date that the assessed administrative penalty is paid to the Commission and ending on the date the administrative penalty is remitted.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201769

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


SUBCHAPTER C. ALTERNATIVE DISPUTE RESOLUTION

22 TAC §§533.21, 533.25, 533.30, 533.32, 533.33, 533.36

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201770

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


SUBCHAPTER D. NEGOTIATED RULEMAKING

22 TAC §533.40

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201771

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


CHAPTER 534. GENERAL ADMINISTRATION

22 TAC §534.1

The Texas Real Estate Commission (TREC) adopts the repeal of 22 TAC §534.1, Charges for Copies of Public Information, in Chapter 534, General Administration, without changes to the text, as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1193). The rule will not be republished.

The repeal is adopted as the result of TREC's quadrennial rule review. Specifically, the repeal is the result of a proposed new definitions section in this chapter, which will require the renumbering of this section. TREC will renumber and replace this repealed section.

No comments were received on the repeal as published.

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

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201761

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


22 TAC §§534.1 - 534.5, 534.7

The Texas Real Estate Commission (TREC) adopts new 22 TAC §534.1, Definitions; and §534.2, Charges for Copies of Public Information; and amendments to §534.3, Employee Training and Education; §534.4, Historically Underutilized Businesses Program; §534.5, Bid Opening and Tabulation; and §534.7, Vendor Protest Procedures, in Chapter 534, General Administration, without changes to the text, as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1193). The rules will not be republished.

The new rules and amendments to Chapter 534 are made as a result of the Commission's quadrennial rule review. The changes add a new definitions section for ease of reading and update terminology for consistency throughout the chapter. Additionally, 22 TAC §534.4, Historically Underutilized Businesses program, and 22 TAC §534.5, Bid Opening and Tabulation, are amended to correct references to applicable regulations.

No comments were received on the proposed new rules and amendments as published.

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

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201762

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


CHAPTER 535. GENERAL PROVISIONS

The Texas Real Estate Commission (TREC) adopts amendments to current 22 TAC §535.61, Approval of Providers of Qualifying Courses; §535.63, Qualifications for Instructors of Qualifying Courses; §535.65, Responsibilities and Operations of Providers of Qualifying Courses; §535.66, Credit for Courses Offered by Accredited Colleges or Universities; §535.71, Approval of CE Providers; §535.73, Approval of Elective Continuing Education Courses; §535.75, Responsibilities and Operations of Continuing Education Providers; §535.400, Registration of Easement or Right-of-Way Agents; and §535.403, Renewal of Registration; and adopts new 22 TAC §535.68, Content Requirements for Easement or Right-of-Way Qualifying Courses (NEW), in Chapter 535, General Provisions. Sections 535.66 and 535.68 are adopted with two non-substantive changes to the text (the insertion of the word "Texas" before "Occupations" in §535.66(e)(1) and §535.68), as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1196). The rules will be republished. Sections 535.61, 535.63, 535.65, 535.71, 535.73, 535.75, 535.400, and 535.403 are adopted without changes to the text as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1196). The rules will not be republished.

All amendments implement statutory changes enacted by the 87th Legislature in HB 2730. In §§535.61, 535.63, 535.65, 535.66, 535.71, 535.73, and 535.75, the amendments add the term "easement or right-of-way" to conform to statutory changes that require completion of qualifying and continuing education courses to obtain or maintain a certificate of registration. The amendments to §535.61 allow an accredited college or university, as well as a United States armed forces institute, to submit easement or right-of-way qualifying courses for approval for credit without becoming approved providers, similar to the exemptions that currently exist for both real estate and inspector qualifying courses. The changes also clarify that the calculation for the exam passage rate only includes license categories for which the provider offers courses and an examination is required. The amendments to §535.66 add a new subsection and make other conforming changes to address credit for easement or right-of way courses offered by an accredited college or university, consistent with the change in §535.61 and current rules related to real estate and inspection qualifying courses. New rule §535.68 mirrors the content requirements for the easement or right-of-way qualifying course as required by HB 2730 and adopts a course approval form by reference that outlines the units required to be addressed in each course topic.

The amendments to §535.400 add specific requirements for the issuance of a probationary certificate, as required by HB 2730. For consistency in application, this language mirrors rule language in 22 TAC §535.54, applicable to other license holders. Because HB 2730 requires certificate holders seeking to renew to successfully complete continuing education, the amendments to §535.403 clarify that a certificate holder who fails to timely renew, rather than simply failing to timely pay the renewal fee, must apply for and receive a new registration. These changes also modify the section that clarifies what happens if a registration expires on a Saturday, Sunday, or other day the Commission is not open for business to be consistent with rule language applicable to other license holders in 22 TAC §535.91.

No comments were received on the proposed amendments as published.

HB 2730 provides that while the Commission must adopt rules necessary to implement the statutory requirements by September 1, 2022, a person who has submitted an application for issuance or renewal of a certificate of registration before January 1, 2023, is not subject to the education requirements of those provisions until the first renewal of their certificate after March 1, 2023. As a result, the adopted rules will have an effective date of September 1, 2022, to provide education providers with additional time to meet the new requirements.

SUBCHAPTER F. REQUIREMENTS FOR EDUCATION PROVIDERS, COURSES AND INSTRUCTORS FOR QUALIFYING EDUCATION

22 TAC §§535.61, 535.63, 535.65, 535.66, 535.68

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also adopted under Texas Occupations Code, §1101.508, which requires the Commission to adopt by rule reasonable requirements for the issuance of a probationary certificate, and §1101.509, which requires the Commission to adopt rules for the approval of coursework that an applicant must successfully complete to be eligible for the issuance or renewal of a certificate of registration.

§535.66.Credit for Courses Offered by Accredited Colleges or Universities.

(a) For the purposes of this section, an "accredited college or university" is defined as 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 by a recognized national or international accrediting body.

(b) Exemption. Pursuant to §1101.301 of Tex. Occ. Code, the Commission does not approve qualifying educational programs or courses of study in real estate and real estate inspection offered by an accredited college or university; however, the Commission has the authority to determine whether a real estate or real estate inspection course satisfies the requirements of the Act and Chapter 1102.

(c) Credit for real estate courses offered by an accredited college or university. To be eligible to receive credit by the Commission, qualifying courses offered by an accredited college or university must meet the following requirements:

(1) cover the subject and topics set out in §1101.003 of Tex. Occ. Code in substantially the same manner as clarified by the Commission in §535.64; and

(2) comply with the curriculum accreditation standards required of the college or university by the applicable accreditation association for verification of clock/course hours, design and delivery method.

(d) Credit for real estate inspector courses offered by an accredited college or university. To be eligible to receive credit by the Commission, qualifying courses offered by an accredited college or university meet the following requirements:

(1) meet the subject and topic definitions set out in §1102.001(5) of Tex. Occ. Code as clarified by the Commission in §535.213; and

(2) comply with the curriculum accreditation standards required of the college or university by the applicable accreditation association for verification of clock/course hours, design and delivery method.

(3) any courses offered to fulfill the substitute experience requirements allowed under §1102.111 must meet the requirements set out in §535.212 of this title, including instructor qualifications.

(e) Credit for easement or right-of-way courses offered by an accredited college or university. To be eligible to receive credit by the Commission, qualifying courses offered by an accredited college or university must meet the following requirements:

(1) cover the subject and topics set out in §1101.509, Texas Occupations Code, in substantially the same manner as clarified by the Commission in §535.68; and

(2) comply with the curriculum accreditation standards required of the college or university by the applicable accreditation association for verification of clock/course hours, design, and delivery method.

(f) Preapproval of a course offered under subsections (c), (d), or (e).

(1) An accredited college and university may submit qualifying courses to the Commission for preapproval by filing a form approved by the Commission.

(2) Any course offered by an accredited college and university without preapproval by the Commission will be evaluated by the Commission, using the standards set out in this section, to determine whether it qualifies for credit at such time as a student submits a transcript with the course to the Commission for credit.

(3) An accredited college or university may not represent that a course qualifies for credit by the Commission unless the accredited college or university receives written confirmation from the Commission that the course has been preapproved for credit.

(g) Required approval of qualifying courses not offered under subsections (c), (d), or (e) or that are not subject to academic accreditation standards.

(1) To be eligible for credit from the Commission, a qualifying course offered by an accredited college and university that is not offered under subsections (c), (d), or (e) or that is not subject to academic accreditation standards is required to be submitted for approval by the Commission in accordance with §535.62 of this subchapter, including payment of any fee required.

(2) An accredited college or university may not represent that a course qualifies for credit by the Commission unless the accredited college or university receives written confirmation from the Commission that the course has been approved.

(h) Complaints and audits.

(1) If the Commission receives a complaint, or is presented with other evidence acceptable to the Commission, alleging that an accredited college or university is not in compliance with their accreditation association's curriculum accreditation standards for a real estate, easement or right-of-way, or real estate inspection course offered under subsections (c), (d), or (e), or is not complying with the requirements of this Subchapter for a real estate, easement or right-of-way, or real estate inspection course not offered under subsections (c), (d), or (e), the Commission may investigate the allegation and/or anonymously audit the course in question.

(2) If after an investigation and/or audit, the Commission determines that an accredited college or university is not in compliance with their accreditation association's curriculum accreditation standards for a real estate, easement or right-of-way, or real estate inspection course offered under subsections (c), (d), or (e), or is not complying with the requirements of this Subchapter for a real estate, easement or right-of-way, or real estate inspection course not offered under subsections (c), (d), or (e), the Commission will no longer issue credit to applicants for that course.

(i) Required approval of CE program and courses. An accredited college or university is not exempt from approval for real estate and real estate inspection CE programs and courses and must comply with all requirements for approval for providers, courses and instructors required by Subchapter G of this chapter.

§535.68.Content Requirements for Easement or Right-of-Way Qualifying Course.

To be approved by the Commission, the easement or right-of-way mandatory qualifying course must contain the topics required by §1101.509(b), Texas Occupations Code, and the units outlined in the ERW_QE-0, Qualifying Easement or Right-of-Way Course Approval (ERW--QE-0) Form, hereby adopted by reference.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201772

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: September 1, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


SUBCHAPTER G. REQUIREMENTS FOR CONTINUING EDUCATION PROVIDERS, COURSES AND INSTRUCTORS

22 TAC §§535.71, 535.73, 535.75

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also adopted under Texas Occupations Code, §1101.508, which requires the Commission to adopt by rule reasonable requirements for the issuance of a probationary certificate, and §1101.509, which requires the Commission to adopt rules for the approval of coursework that an applicant must successfully complete to be eligible for the issuance or renewal of a certificate of registration.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201773

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: September 1, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


SUBCHAPTER T. EASEMENT OR RIGHT-OF-WAY AGENTS

22 TAC §535.400, §535.403

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also adopted under Texas Occupations Code, §1101.508, which requires the Commission to adopt by rule reasonable requirements for the issuance of a probationary certificate, and §1101.509, which requires the Commission to adopt rules for the approval of coursework that an applicant must successfully complete to be eligible for the issuance or renewal of a certificate of registration.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201774

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: September 1, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


22 TAC §535.406

The Texas Real Estate Commission (TREC) adopts new 22 TAC §535.406, Continuing Education Requirements, in Chapter 535, General Provisions, with a non-substantive change to the text (the insertion of the word "Texas" before "Occupations"), as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1196). The rule will be republished.

The new rule implements statutory changes enacted by the 87th Legislature in HB 2730. New §535.406 is adopted to implement the continuing education requirements in HB 2730.

HB 2730 provides that while the Commission must adopt rules necessary to implement the statutory requirements by September 1, 2022, a person who has submitted an application for issuance or renewal of a certificate of registration before January 1, 2023, is not subject to the education requirements of those provisions until the first renewal of their certificate after March 1, 2023. As a result, new §535.406 will have an effective date of January 1, 2023.

No comments were received on the proposed rule as published.

The new rule is adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The rule is also adopted under Texas Occupations Code, §1101.508, which requires the Commission to adopt by rule reasonable requirements for the issuance of a probationary certificate, and §1101.509, which requires the Commission to adopt rules for the approval of coursework that an applicant must successfully complete to be eligible for the issuance or renewal of a certificate of registration.

§535.406.Continuing Education Requirements.

To renew a certificate under this subchapter, a certificate holder must have completed 16 hours of approved continuing education prior to renewal as required by §1101.509, Texas Occupations Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201764

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: January 1, 2023

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057


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

22 TAC §541.1, §541.2

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §541.1, Criminal Offense Guidelines; and §541.2, Criminal History Evaluation Letters, in Chapter 541, Rules Relating to the Provisions of Texas Occupations Code, Chapter 53, without changes as published in the March 11, 2022, issue of the Texas Register (47 TexReg 1208). The rules will not be republished.

The amendments to Chapter 541 are made as a result of the Commission's quadrennial rule review. The changes define "Texas Real Estate Commission" for ease of reading and consistency. Subsection (d) of 22 TAC §541.1 is amended to better reflect the applicable statutory requirements found in § 53.023, Occupations Code. Additionally, the title of 22 TAC §541.2, Criminal History Evaluation Letters, is amended to add "Determination of Fitness" to reflect the terminology used in section 1101.353, Occupations Code.

No comments were received on the proposed amendments as published.

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 Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also proposed pursuant to Chapter 53, Occupations Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 5, 2022.

TRD-202201765

Abby Lee

Deputy General Counsel

Texas Real Estate Commission

Effective date: May 25, 2022

Proposal publication date: March 11, 2022

For further information, please call: (512) 936-3057