TITLE 22. EXAMINING BOARDS

PART 8. TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD

CHAPTER 153. RULES RELATING TO PROVISIONS OF THE TEXAS APPRAISER LICENSING AND CERTIFICATION ACT

22 TAC §§153.1, 153.5, 153.6, 153.9, 153.15, 153.20, 153.21, 153.24, 153.28, 153.241

The Texas Appraiser Licensing and Certification Board (TALCB) adopts new and amendments to 22 TAC §153.1, Definitions; §153.5, Fees; §153.6, Military Service Member, Veteran, or Military Spouse Applications; §153.9, Applications; §153.15, Experience Required for Licensing; §153.20, Guidelines for Disciplinary Action, Denial of License; Probationary License; §153.21, Appraiser Trainees and Supervisory Appraisers; §153.24, Complaint Processing; §153.28, Peer Investigative Committee Review; and §153.241, Sanctions Guidelines.

The amendments to §§153.1, 153.5, 153.9 153.15, 153.20, 153.21, 153.24, 153.28 and 153.241 are adopted without changes to the proposed text as published in the September 1, 2023 issue of the Texas Register (48 TexReg 4753) and will not be republished. The amendments to §153.6 are adopted with nonsubstantive changes to the proposed text and will be republished.

The amendments to §§153.1, 153.5, 153.9, 153.24 and 153.28 implement statutory changes enacted by the 88th Legislature in SB 1577, which becomes effective on January 1, 2024, and which changes the title of the TALCB "Commissioner" to "Executive Director."

New §153.6 and amendments to §153.9 implement statutory changes enacted by the 88th Legislature in SB 422 and become effective on September 1, 2023. SB 422 expands out-of-state occupational license recognition to include military service members, as long as certain criteria are met. SB 422 also modifies the time period within which verification of good standing occurs, as well as issuance of a license after certain conditions are satisfied, from "as soon as practicable" to no later than 30 days. The bill also addresses the term of the license in situations of divorce or other events impacting the military spouse's status. The amendments reflect these statutory changes. Specifically, new rule 153.6 is intended to replace and consolidated language struck from §153.9 related specifically to applicants who are military service members, veterans, and military spouses for greater clarity and organization, in unison with the reciprocity process in Occupations Code 1103, requirements established by the Appraisal Qualifications Board, and Appraisal Subcommittee. The amendments eliminate references to a residency requirement and references to alternative methods of demonstrating competency inapplicable to appraiser applicants. Finally, a statement of purpose is being added to the rule to make clear that this rule addresses the requirements provided under Chapter 55, Occupations Code, and is not intended to alter or modify licensure requirements governed by federal law.

The amendments to §§153.15, 153.20 and 153.21 implement statutory changes enacted by the 88th Legislature in SB 1222, which becomes effective on September 1, 2023, and which eliminates the requirement that experience required for licensing be submitted on an affidavit. As a result, references to this requirement are removed from TALCB rules and replaced by a certification. Additionally, the amendments to §153.15 remove a requirement that an applicant submit experience performed within five years of the date of application.

The amendments to §153.241 allow for greater flexibility in sanctions.

No comments were received regarding adoption of the amendments.

The amendments and new rule are adopted under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules related to certificates and licenses that are consistent with applicable federal law and guidelines adopted by the AQB; §1103.152, which authorizes TALCB to prescribe qualifications for appraisers that are consistent with the qualifications established by the Appraiser Qualifications Board; §1103.154, which authorizes TALCB to adopt rules relating to professional conduct; and §1103.156 which authorizes TALCB to establish reasonable fees to administer Chapter 1103, Texas Occupations Code.

§153.6.Military Service Member, Veteran, or Military Spouse Applications.

(a) Definitions.

(1) "Military service member" means a person who is on current full-time military service in the armed forces of the United States or active duty military service as a member of the Texas military forces, as defined by Section 437.001, Government Code, or similar military service of another state.

(2) "Military spouse" means a person who is married to a military service member.

(3) "Veteran" means a person who has served as a military service member and who was discharged or released from active duty.

(b) The purpose of this section is to establish procedures authorized or required by Texas Occupations Code Chapter 55 and is not intended to modify or alter rights or legal requirements that may be provided under federal law, Chapter 1103 of the Occupations Code, or requirements established by the AQB.

(c) Expedited application.

(1) The Board will process an application for a military service member, veteran, or military spouse on an expedited basis.

(2) If an applicant under this section holds a current license issued by another state or jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the license or certification issued in this state, the Board will issue the license not later than the 30th day after receipt of the application.

(d) Waiver of fees.

(1) The Board will waive the license application fee and examination fees for an applicant who is:

(A) a military service member or veteran whose military service, training, or education substantially meets all of the requirements for a license; and

(B) a military service member, veteran, or military spouse who holds a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the same license in this state.

(2) The executive director or his or her designee may waive the application fee of a military service member, veteran, or military spouse who is not currently licensed, but within the five years preceding the application date held a license in this state and applies for reinstatement in accordance with subsection (f)(2) of this section.

(e) Credit for military experience.

(1) For an applicant who is a military service member or veteran, the Board shall credit any verifiable military service, training, or education toward the licensing requirements, other than an examination requirement.

(2) The Board shall award credit under this subsection consistent with the criteria adopted by the AQB and any exceptions to those criteria as authorized by the AQB.

(3) This subsection does not apply to an applicant who holds a restricted license issued by another jurisdiction.

(f) Reciprocity and reinstatement.

(1) For a military service member, veteran, or military spouse who holds a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the license in this state may apply by submitting an application for license by reciprocity and any required supplemental documents for military service members, military veterans, or military spouses.

(2) For a military service member, veteran, or military spouse who is not currently licensed, but within the five years preceding the application date held a license in this state may submit an application for reinstatement and any required supplemental documents for military service members, military veterans, or military spouses.

(3) For a military service member and military spouse who wants to practice in Texas in accordance with 55.0041, Occupations Code:

(A) the Board will issue a license by reciprocity if:

(i) the applicant submits:

(I) notice to the Board of the applicant's intent to practice in Texas by submitting an application for reciprocity and any supplemental document for military service members or military spouses; and

(II) a copy of the member's military identification card; and

(ii) no later than 30 days upon receipt of the documents required under subparagraph (A) of this paragraph, the Board verifies that the member or spouse is currently licensed and in good standing with the other state or jurisdiction.

(B) a person authorized to practice in this state under this subsection must comply with all other laws and regulations applicable to the license.

(C) The event of a divorce or similar event that affects a person's status as a military spouse shall not affect the validity of a license issued under this subsection.

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 November 13, 2023.

TRD-202304209

Kathleen Santos

General Counsel

Texas Appraiser Licensing Certification Board

Effective date: December 3, 2023

Proposal publication date: September 1, 2023

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


CHAPTER 157. RULES RELATING TO PRACTICE AND PROCEDURE

SUBCHAPTER A. GENERAL PROVISIONS

22 TAC §157.6

The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §157.6, Request for Advisory Opinions.

The amendments are adopted without changes to the proposed text as published in the September 1, 2023 issue of the Texas Register (48 TexReg 4765) and will not be republished.

The amendments add language to the rule to reflect a process for Advisory Opinions issued by TALCB to be reviewed and determine whether to be withdrawn or superseded.

No comments were received regarding adoption of the amendments.

The amendments are adopted under Texas Occupations Code 1103.151, Rules Relating to Certificates and Licenses and §1103.154, which authorizes TALCB to adopt rules related to professional conduct.

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 November 13, 2023.

TRD-202304202

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Effective date: December 3, 2023

Proposal publication date: September 1, 2023

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


SUBCHAPTER F. RULEMAKING

22 TAC §157.50

The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §157.50, Negotiated Rulemaking.

The amendments are adopted without changes to the proposed text as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4765) and will not be republished.

The amendments implement statutory changes enacted by the 88th Legislature in SB 1577, which becomes effective on January 1, 2024, and which changes the title of the TALCB "Commissioner" to "Executive Director."

No comments were received regarding adoption of the amendments.

The amendments are adopted under Texas Occupations Code §1103.162, which required the Board to develop a policy to encourage the use of negotiated rulemaking.

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 November 13, 2023.

TRD-202304203

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Effective date: December 3, 2023

Proposal publication date: September 1, 2023

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


CHAPTER 159. RULES RELATING TO THE PROVISIONS OF THE TEXAS APPRAISAL MANAGEMENT COMPANY REGISTRATION AND REGULATION ACT

22 TAC §§159.1, 159.52, 159.104, 159.105, 159.155, 159.201, 159.202, 159.204

The Texas Appraiser Licensing and Certification Board (TALCB) adopts new and amendments to 22 TAC §159.1, Definitions; §159.52, Fees; §159.104, Primary Contact; Appraiser Contact; Controlling Person; Contact Information; §159.105, Denial of Registration or Renewal of Registration; §159.155, Periodic Review of Appraisals; §159.201, Guidelines for Disciplinary Action; §159.202, AMC Investigative Committee; and §159.204, Complaint Processing.

The amendments are adopted without changes to the proposed text as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4766) and will not be republished.

The amendments to §§159.1, 159.52, 159.104, 159.105 and 159.204 implement statutory changes enacted by the 88th Legislature in SB 1577, which becomes effective on January 1, 2024, and which changes the title of the TALCB "Commissioner" to "Executive Director."

The new rule §159.202, AMC Investigative Committee is proposed to implement statutory changes enacted by the 88th Legislature in SB 1222, which becomes effective on September 1, 2023, and which authorizes a process for a committee to review of complaints received under chapter 1104 of the Occupations Code, involving AMCs. The new rule identifies who may serve on the committee, delineates functions of the committee members and TALCB staff in the review process, and establishes process deadlines. The rule also specifies the types of complaints that are subject or not subject to the review of the AMC Investigative Committee, and the manner committee members and staff may communicate during the review process. The process outlined in the proposed rule is modeled after an existing process on governing the committee review of complaints under 1103 of the Occupations Code, involving appraisers.

The amendments to §159.155 remove a specified percentage requirement for the periodic review of appraisal that AMCs perform on appraisers performing appraisal services. The amendments require AMCs to have a written policy in place for conducting periodic reviews and make the policy and documentation demonstrating compliance with the policy available upon request by the Board.

The amendments to §159.201 and §159.204 clarify the applicability of USPAP as it relates to AMCs and the obligation to submit certain information to the ASC. The amendments to §159.204 also update language related to the statute of limitations to align with statute and allow greater flexibility in sanctions.

Two comments were received regarding adoption of the amendments. Both comments were in support of the changes to the chapter in general and in favor of the amendments to §159.155, Periodic Review of Appraisals, specifically.

The new and amendments are adopted under Texas Occupations Code §1104.151, which authorizes TALCB to adopt rules necessary to administer the provisions of Chapter 1104, 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 November 13, 2023.

TRD-202304204

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Effective date: December 3, 2023

Proposal publication date: September 1, 2023

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


PART 11. TEXAS BOARD OF NURSING

CHAPTER 214. VOCATIONAL NURSING EDUCATION

22 TAC §§214.2 - 214.10, 214.12, 214.13

The Texas Board of Nursing (Board) adopts amendments to 22 Texas Administrative Code §§214.2 - 214.10, 214.12 and 214.13, without changes to the proposed text as published in the June 30, 2023, issue of the Texas Register (48 TexReg 3481). The rules will not be republished.

Reasoned Justification. The amendments are adopted under the Board's authority to adopt and enforce rules necessary to regulate the practice of vocational nursing under Occupations Code §301.151(2), and in accordance with the Board's duty under Occupations Code §301.157(b)(3) to prescribe rules necessary for the conduct of approved schools of nursing and educational programs for vocational nurses. The adopted amendments are necessary to correct outdated references, provide clarifying and editorial changes, and simplify the existing numbering system for the Board's educational guidelines, contained in Chapter 214, Vocational Nursing Education.

Section 214.2 contains the definitions for the chapter. Adopted §214.2 clarifies existing definitions within the section and corrects outdated references. Additionally, adopted §214.2 adds a definition of nursing clinical judgment for use in the chapter: The term is nationally recognized and refers to the process by which nurses make decisions based on nursing knowledge. In 2012, the NCSBN National Council Licensing Examination (NCLEX) Committee (an advisory committee to monitor the exam reviewed findings from the practice analysis), examined nursing decision-making in the provision of ongoing nursing care to patients. The committee studied the decision making of nurses through the processes of critical thinking and making judgments about the patient's response to nursing care and patient needs for continuing or adjusting the nursing care. Over the following decade, NCSBN studied the steps in the nursing process for making nursing assessments and planning care accordingly, and further researched the possibility of measuring nursing clinical judgment as a part of an updated version of the national licensure examinations for vocational and professional nursing. NCSBN provides the following definition of nursing clinical judgment: a nurse engages in an iterative multistep process that uses nursing knowledge to observe and assess presenting situations, identify a prioritized client concern, and generate the best possible evidence-based solutions to deliver safe client care. On the national licensure examination, nursing clinical judgment content may be represented as a case study or as an individual stand-alone item.

The Board's definition provides clarity in discussing nursing clinical judgment as a key concept of vocational and professional nursing that is tested on the national licensure examination. In application the term is necessarily limited to nursing solutions for client care that fall within the scope of the nurse's practice and is not intended to include medical diagnoses or any final resolution of a patient's condition for care.

Section 214.3 contains the Board's requirements for nursing education program development, expansion, and closure. First, adopted §214.3 clarifies factors that will be considered by the Board when determining whether to approve a new nursing education program. Second, the adopted amendments to that section simplify the existing numbering system for the Board's education guidelines that are currently referenced in the rule. Third, the adopted amendments clarify factors that will be considered by the Board when determining whether a nursing education program is high-risk. Adopted §214.3 also specifies that the Board may require the appointment of a mentor to assist the director of a nursing education program who does not have prior experience in the director role in an effort to ensure the success of a high-risk program. Finally, the adopted section clarifies how NCLEX-PN® examination testing codes will be addressed in the event of program consolidation.

Section 214.4 addresses nursing education program approval status. Consistent with other changes made throughout the chapter, adopted §214.4 simplifies the existing numbering system for the Board's education guidelines that are currently referenced in the rule. The remaining changes made in adopted §214.4 are non-substantive in nature and clarify existing provisions within the section.

Adopted §214.5 updates an outdated reference.

Adopted §214.6 simplifies the existing numbering system for the Board's education guidelines that are currently referenced in the rule.

Adopted §214.7 includes editorial changes made for better readability within the section.

Adopted §214.8 clarifies existing requirements related to increases in enrollment of 25% or more for accredited and non-accredited programs; simplifies the existing numbering system for the Board's education guidelines that are currently referenced in the rule; and includes editorial changes.

Adopted §214.9 updates an outdated reference, removes obsolete provisions from the section, and simplifies the existing numbering system for the Board's education guidelines that are currently referenced in the rule.

Adopted §214.10 adds clarity to the section and removes obsolete provisions from the section.

Adopted §214.12 makes editorial changes.

Adopted §214.13 includes a reference to the Board's guidelines for additional clarity in the section.

Summary of Comments and Agency Response

Comment: A commenter representing the Texas Medical Association (TMA) states TMA has questions and concerns regarding the addition of the term "nursing clinical judgment" as a defined term in the Definitions sections of Chapter 214 and Chapter 215. The commenter states that the basis for the changes is not clear and that there is no legislative support for this terminology in that the term is not used in statute. TMA opposes the adoption of this amendment. Additionally, TMA has objections to the language contained within the definition indicating that there is a belief that the language of the definition could create scope of practice confusion. TMA objects specifically to the term "generate the best possible evidence-based solutions" as those solutions may require medical diagnosis and prescription of therapeutic or corrective measures. Further, TMA states that the term "solutions" implies a final resolution to the patient's concern or situation, which TMA states is inconsistent with a nurse's role as part of the continuum of care. TMA suggests that the term "nursing act" be used in place of the term "solutions."

TMA also raises concerns regarding the term "nursing diagnoses" in its comment regarding the simultaneously proposed amendments to both Chapters 214 and 215. That term is not used in Chapter 214 and the adopted amendments do not add the term. The comment applies only regarding Chapter 215, Professional Nursing Education.

Agency Response to Comments:

The Board declines to make the commenter's specific requested changes related to the Nursing Clinical Judgment definition. The Board does not agree that the language would reasonably generate any scope of practice confusion nor is the Board aware of any requirement that a term be used in statute to be adopted as a definition in a rule.

The commenter seeks additional background information for the addition of this definition. The National Council for State Boards of Nursing (NCSBN) provides the national licensing examination for pre-licensure nursing education programs in the United States, territories, and other countries. The examinations are designed at the vocational nursing (VN) level as well as at the professional nursing level for registered nurses (RN). In 2012, the NCSBN National Council Licensing Examination (NCLEX) Committee (an advisory committee to monitor the exam reviewed findings from the practice analysis), examined nursing decision making in the provision of ongoing nursing care to patients. The committee studied the decision making of nurses through the processes of critical thinking and making judgments about the patient's response to nursing care and patient needs for continuing or adjusting the nursing care. Over the following decade, NCSBN studied the steps in the nursing process for making nursing assessments and planning care accordingly, and further researched the possibility of measuring nursing clinical judgment as a part of an updated version of the national licensure examinations for vocational and professional nursing. NCSBN provides the following definition of nursing clinical judgment: a nurse engages in an iterative multistep process that uses nursing knowledge to observe and assess presenting situations, identify a prioritized client concern, and generate the best possible evidence-based solutions to deliver safe client care. On the national licensure examination, nursing clinical judgment content may be represented as a case study or as an individual stand-alone item. This nationally recognized definition informs the Board's proposed definition.

Beginning on April 1, 2023, both VN and RN candidates received a portion of Next Generation NCLEX (NGN) questions on their NCLEX examination. These new NGN items serve to measure the nursing clinical judgment of nursing applicants. Regulated schools of nursing must prepare their students for the NGN, which includes a nursing clinical judgment component.

The commenter's concern regarding the term "nursing diagnosis" does not apply to the amendments adopted to Chapter 214, Vocational Nursing Education. The term is contained only in Chapter 215, Professional Nursing Education.

Statutory Authority. The amendments are adopted under the authority of the Occupations Code, §301.151 and §301.157(b)(3).

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 November 10, 2023.

TRD-202304190

James W. Johnston

General Counsel

Texas Board of Nursing

Effective date: November 30, 2023

Proposal publication date: June 30, 2023

For further information, please call: (512) 305-6879


CHAPTER 215. PROFESSIONAL NURSING EDUCATION

22 TAC §§215.2 - 215.10, 215.12, 215.13

Introduction. The Texas Board of Nursing (Board) adopts amendments to 22 Texas Administrative Code §§215.2 - 215.10, 215.12 and 215.13, without changes to the adopted text as published in the June 30, 2023, issue of the Texas Register (48 TexReg 3489). The rules will not be republished.

Reasoned Justification. The amendments are adopted under the Board's authority to adopt and enforce rules necessary to regulate the practice of professional nursing under Occupations Code §301.151(2), and in accordance with the Board's duty under Occupations Code §301.157(b)(3) to prescribe rules necessary for the conduct of approved schools of nursing and educational programs for professional nurses. The adopted amendments are necessary to correct outdated references; contain clarifying and editorial changes; and simplify the existing numbering system for the Board's educational guidelines, contained Professional Nursing Education.

Section 215.2 contains the definitions for the chapter. Adopted §215.2 clarifies existing definitions within the section and corrects outdated references. Additionally, adopted 215.2 adds the following new definition of nursing clinical judgment for use in the chapter. The term is nationally recognized and refers to the process by which nurses make decisions based on nursing knowledge. In 2012, the NCSBN National Council Licensing Examination (NCLEX) Committee (an advisory committee to monitor the exam reviewed findings from the practice analysis), examined nursing decision-making in the provision of ongoing nursing care to patients. The committee studied the decision making of nurses through the processes of critical thinking and making judgments about the patient's response to nursing care and patient needs for continuing or adjusting the nursing care. Over the following decade, NCSBN studied the steps in the nursing process for making nursing assessments and planning care accordingly, and further researched the possibility of measuring nursing clinical judgment as a part of an updated version of the national licensure examinations for vocational and professional nursing. NCSBN provides the following definition of nursing clinical judgment: a nurse engages in an iterative multistep process that uses nursing knowledge to observe and assess presenting situations, identify a prioritized client concern, and generate the best possible evidence-based solutions to deliver safe client care. On the national licensure examination, nursing clinical judgment content may be represented as a case study or as an individual stand-alone item.

The Board's definition provides clarity in discussing nursing clinical judgment as a key concept of vocational and professional nursing that is tested on the national licensure examination. In application the term is necessarily limited to nursing solutions for client care that fall within the scope of the nurse's practice and does not include medical diagnoses or imply a final resolution of a patient's condition and need for care.

The adopted amendments refer to nursing diagnoses. The term is commonly used in nursing practice and in professional nursing education in this state. A nursing diagnosis provides the basis for selection of nursing interventions to achieve outcomes for which the nurse is accountable. It is easily distinguishable from medical diagnosis and historically has not caused scope of practice confusion for doctors or nurses.

Section 215.3 contains the Board's requirements for nursing education program development, expansion, and closure. First, adopted §215.3 clarifies factors that will be considered by the Board when determining whether to approve a new nursing education program. Second, the adopted amendments to that section simplify the existing numbering system for the Board's education guidelines that are currently referenced in the rule. Third, the adopted amendments clarify factors that will be considered by the Board when determining whether a nursing education program is high-risk. Adopted §215.3 also specifies that the Board may require the appointment of a mentor to assist the director of a nursing education program who does not have prior experience in the director role in an effort to ensure the success of a high-risk program. Finally, the adopted amendments correct typographical errors in the section.

Section 215.4 addresses nursing education program approval status. Consistent with other changes made throughout the chapter, the adopted amendments simplify the existing numbering system for the Board's education guidelines that are currently referenced in the rule. The remaining changes are non-substantive in nature and clarify existing provisions within the section and make editorial edits.

Adopted §215.5 updates an outdated reference.

Adopted §215.6 simplifies the existing numbering system for the Board's education guidelines that are currently referenced in the rule.

Adopted §215.7 makes editorial changes for better readability within the section.

Adopted §215.8 clarifies existing requirements related to increases in enrollment of 25% or more for accredited and non-accredited programs. The remaining proposed amendments also simplify the existing numbering system for the Board's education guidelines that are currently referenced in the rule and include editorial changes.

Adopted §215.9 updates an outdated reference and simplify the existing numbering system for the Board's education guidelines that are currently referenced in the rule.

Adopted §215.10 adds reference to an education guideline for additional guidance and clarity.

Adopted §215.12 makes editorial changes.

Adopted §215.13 includes a reference to the Board's guidelines for additional clarity in the section.

Summary of Comments and Agency Response

Comment: A commenter representing the Texas Medical Association (TMA) states TMA has questions and concerns regarding the addition of the term "nursing clinical judgment" as a defined term in the Definitions sections of Chapter 214 and Chapter 215. The commenter states that the basis for the changes is not clear and that there is no legislative support for this terminology in that the term is not used in statute. TMA opposes the adoption of this amendment. Additionally, TMA has objections to the language contained within the definition indicating that there is a belief that the language of the definition could create scope of practice confusion. TMA objects specifically to the term "generat[ing] the best possible evidence-based solutions" as those solutions may require medical diagnosis and prescription of therapeutic or corrective measures. Further, TMA states that the term "solutions" implies a final resolution to the patient's concern or situation, which TMA states is inconsistent with a nurse's role as part of the continuum of care. TMA suggests that the term "nursing act" be used in place of the term "solutions."

TMA also raises concerns regarding the term "nursing diagnoses." TMA raises concern that the term is not found in statute and has the potential to cause confusion with scope of practice limitations in the Nursing Practice Act. TMA suggests the term "nursing assessments" be used instead.

Agency Response to Comments:

The Board declines to make the commenter's specific requested changes related to the Nursing Clinical Judgment definition. The Board does not agree that the language would reasonably generate any scope of practice confusion nor is the Board aware of any requirement that a term be used in statute to be adopted as a definition in a rule.

The commenter seeks additional background information for the addition of this definition. The National Council for State Boards of Nursing (NCSBN) provides the national licensing examination for pre-licensure nursing education programs in the United States, territories, and other countries. The examinations are designed at the vocational nursing (VN) level as well as at the professional nursing level for registered nurses (RN). In 2012, the NCSBN National Council Licensing Examination (NCLEX) Committee (an advisory committee to monitor the exam reviewed findings from the practice analysis), examined nursing decision making in the provision of ongoing nursing care to patients. The committee studied the decision making of nurses through the processes of critical thinking and making judgments about the patient's response to nursing care and patient needs for continuing or adjusting the nursing care. Over the following decade, NCSBN studied the steps in the nursing process for making nursing assessments and planning care accordingly, and further researched the possibility of measuring nursing clinical judgment as a part of an updated version of the national licensure examinations for vocational and professional nursing. NCSBN provides the following definition of nursing clinical judgment: a nurse engages in an iterative multistep process that uses nursing knowledge to observe and assess presenting situations, identify a prioritized client concern, and generate the best possible evidence-based solutions to deliver safe client care. On the national licensure examination, nursing clinical judgment content may be represented as a case study or as an individual stand-alone item. This nationally recognized definition informs the Board's proposed definition.

Beginning on April 1, 2023, both VN and RN candidates received a portion of Next Generation NCLEX (NGN) questions on their NCLEX examination. These new NGN items serve to measure the nursing clinical judgment of nursing applicants. Regulated schools of nursing must prepare their students for the NGN, which includes a nursing clinical judgment component.

Nursing diagnoses provide the basis for selection of nursing interventions to achieve outcomes for which the nurse is accountable. The Board disagrees that the term would reasonably cause scope of practice confusion as the term includes the word "nursing," which serves to distinguish the term from "medical diagnosis," which appears to be the thrust of the commenter's concern. This rule, in no way, would expand or is intended to expand the scope of nursing practice. Further, the term "nursing diagnosis" has been used in nursing practice since the 1970's without generating scope of practice confusion.

Statutory Authority. The amendments are adopted under the authority of the Occupations Code §301.151 and §301.157(b).

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 November 10, 2023.

TRD-202304191

James W. Johnston

General Counsel

Texas Board of Nursing

Effective date: November 30, 2023

Proposal publication date: June 30, 2023

For further information, please call: (512) 305-6879


PART 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY

CHAPTER 511. ELIGIBILITY

SUBCHAPTER C. EDUCATIONAL REQUIREMENTS

22 TAC §511.57

The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.57 concerning Qualified Accounting Courses, with changes to the proposed text published in the July 28, 2023 issue of the Texas Register (48 TexReg 4060) and will be republished.

With the revision to the Public Accountancy Act (Act) permitting a candidate to sit for the exam at 120 semester hours, the number of upper level accounting courses is being reduced to 21 semester hours of course work. With the reduction of upper level accounting course work, the number of hours in the separate disciplines is correspondingly being reduced to implement the revisions to the Act.

Three comments were received regarding the adoption of the amendment.

The Board received comments from Melanie Thompson.

Ms. Thompson asked for clarification regarding the required ethics class. She understood that the ethics class would not be used for satisfying the 120 hours needed to sit for the exam. She posed the question as to whether the ethics class could be used toward the 24 hours of business classes needed for licensing.

Response: It was the committee's intent that the ethics class not be applied toward the number of hours needed for business classes. Ms. Thompson also recommended that the two-hour research class be a requirement of licensing and not for exam eligibility.

Response: The rule revision as proposed will be a requirement for licensing and not exam eligibility.

The Board also received comments from the TXCPA.

Proposed §511.57(e) requires a minimum of 12 hours of upper level accounting to take the UCPAE. The 12 upper level accounting hours includes intermediate accounting. Because most schools have two intermediate accounting courses this equates to six hours plus the additional upper level accounting classes. So instead of 21 hours of upper level accounting classes the result is a requirement of 24 hours of upper level accounting classes to take the exam.

Another comment concerned the requirement that a student must take two semester hours in research and analysis in order to be eligible to take the exam. This is in addition to the 21 hours of upper level accounting. The comment suggests that the requirement for research and analysis makes it more difficult for the student to be determined eligible to take the exam which was not the intent of SB 159.

The comment also suggests that requiring the research and analysis class earlier in their education causes problems in many university accounting programs and is not consistent with the current practice to take the class toward the end of their education program. It will therefor interfere with many students' ability to take advantage of the intent of SB 159.

An additional comment was included which expressed concern that the proposed rule does not permit internships in the educational program for students in the state's community colleges.

Response:

The proposed revision reflects the Board's agreement with the comments except that the issue regarding internships in community colleges will be examined at a later date.

The Board received comments from Trinity University

Commenter expressed the belief that the Accounting/Tax Research and Analysis be a requirement to become certified and not a requirement to sit for the exam.

Commenter also expressed the belief that internships should be counted toward the required upper level accounting hours or required upper division business courses.

Response: The Accounting/Tax Research and Analysis will not be a requirement to sit for the exam but will be a requirement to become licensed. Also internships from community colleges will be examined at a future date.

The amendment is adopted under the Act, Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.

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

§511.57.Qualified Accounting Courses to take the UCPAE.

(a) An applicant shall meet the board's accounting course requirements in one of the following ways:

(1) Hold a baccalaureate or higher degree from a board-recognized institution of higher education as defined by §511.52 of this chapter (relating to Recognized Institutions of Higher Education) and present official transcript(s) from board-recognized institution(s) that show degree credit for no fewer than 21 semester credit hours of upper division accounting courses as defined in subsections (e), (f) and (g) of this section; or

(2) Hold a baccalaureate or higher degree from a board-recognized institution of higher education as defined by §511.52 of this chapter, and after obtaining the degree, complete the requisite 21 semester credit hours of upper division accounting courses, as defined in subsections (e), (f) and (g) of this section, from four-year degree granting institutions, or accredited community colleges, provided that all such institutions are recognized by the board as defined by §511.52 or §511.54 of this chapter (relating to Recognized Texas Community Colleges).

(b) Credit for hours taken at board-recognized institutions of higher education using the quarter system shall be counted as 2/3 of a semester credit hour for each hour of credit received under the quarter system.

(c) The board will accept no fewer than 21 semester credit hours of accounting courses from the courses listed in subsections (e), (f) and (g) of this section. The hours from a course that has been repeated will be counted only once toward the required 21 semester hours. The courses must meet the board's standards by containing sufficient accounting knowledge and application to be useful to candidates taking the UCPAE. A board-recognized institution of higher education must have accepted the courses for purposes of obtaining a baccalaureate or higher degree or its equivalent, and they must be shown on an official transcript.

(d) Upper level accounting coursework recognized by the board and in effect prior to January 1, 2024, may be found in §511.60 of this chapter (relating to Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE).

(e) Effective January 1, 2024, the subject-matter content should be derived from the UCPAE Blueprint. A minimum of 12 semester hours with at least three semester hours in each of the following accounting course content areas is required:

(1) financial accounting and reporting for business organizations or intermediate accounting;

(2) financial statement auditing;

(3) taxation; and

(4) accounting information systems or accounting data analytics.

(f) Effective January 1, 2024, a minimum of 9 hours in any of the following accounting course content areas is required:

(1) up to 6 semester credit hours of additional financial accounting and reporting for business organizations or intermediate accounting;

(2) advanced accounting;

(3) accounting theory;

(4) managerial or cost accounting (excluding introductory level courses);

(5) auditing and attestation services;

(6) internal accounting control and risk assessment;

(7) financial statement analysis;

(8) accounting research and analysis;

(9) up to 9 semester credit hours of taxation (including tax research and analysis);

(10) financial accounting and reporting for governmental and/or other nonprofit entities;

(11) up to 9 semester credit hours of accounting information systems, including management information systems ("MIS"), provided the MIS courses are listed or cross-listed as accounting courses, and the institution of higher education accepts these courses as satisfying the accounting course requirements for graduation with a degree in accounting;

(12) up to 9 semester credit hours of accounting data analytics, provided the institution of higher education accepts these courses as satisfying the accounting course requirements for graduation with a degree in accounting; business data analytics may be considered provided the courses are listed or cross-listed as accounting courses, and the institution of higher education accepts these courses as satisfying the accounting course requirements for graduation with a degree in accounting; (while data analytics tools may be taught in the courses, application of the tools should be the primary objective of the courses);

(13) fraud examination;

(14) international accounting and financial reporting;

(15) mergers and acquisitions;

(16) financial planning;

(17) at its discretion, the board may accept up to three semester hours of credit of accounting course work with substantial merit in the context of a career in public accounting, provided the course work is predominantly accounting or auditing in nature but not included in paragraphs (1) - (16) of this subsection. For any course submitted under this provision, the Accounting Faculty Head or Chair must affirm to the board in writing the course's merit and content; and

(18) at its discretion, the board may accept up to three semester credit hours of independent study in accounting selected or designed by the student under faculty supervision. The curriculum for the course shall not repeat the curriculum of another accounting course that the student has completed.

(g) The following types of introductory courses do not meet the accounting course definition in subsections (e) and (f) of this section:

(1) elementary accounting;

(2) principles of accounting;

(3) financial and managerial accounting;

(4) introductory accounting courses; and

(5) accounting software courses.

(h) Any CPA review course offered by an institution of higher education or a proprietary organization shall not be used to meet the accounting course definition.

(i) CPE courses shall not be used to meet the accounting course definition.

(j) An ethics course required in §511.58(d) of this chapter (relating to Definitions of Related Business Subjects to take the UCPAE) shall not be used to meet the accounting course definition in subsections (e) and (f) of this section.

(k) Accounting courses completed through an extension school of a board recognized educational institution may be accepted by the board provided that the courses are accepted for a business baccalaureate or higher degree conferred by that educational institution.

(l) The board may review the content of accounting courses and determine if they meet the requirements of this section.

(m) Credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirements of this chapter:

(1) American College Education (ACE);

(2) Prior Learning Assessment (PLA);

(3) Defense Activity for Non-Traditional Education Support (DANTES);

(4) Defense Subject Standardized Test (DSST); and

(5) Straighterline.

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 November 9, 2023.

TRD-202304143

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: November 29, 2023

Proposal publication date: July 28, 2023

For further information, please call: (512) 305-7842


CHAPTER 527. PEER REVIEW

22 TAC §527.5

The Texas State Board of Public Accountancy (Board) adopts an amendment to §527.5 concerning Deficient Reviews, without changes to the proposed text as published in the September 29, 2023, issue of the Texas Register (48 TexReg 5616) and will not be republished.

Upon on a finding of deficient peer reviews, current Board rules provide for a three-year suspension of attest work by a licensee. Upon the expiration of the three years, the suspension is automatically lifted without any demonstration by the licensee they are now competent to perform attest services. The rule revision will eliminate the three-year suspension but require a licensee to have a third-party CPA review the licensee's work prior to being authorized to independently offer attest services to the public. Only upon a recommendation to the Board by the CPA performing the third-party review will the Board consider reinstating their ability to offer attest services to the public.

The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.

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

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 November 9, 2023.

TRD-202304144

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: November 29, 2023

Proposal publication date: September 29, 2023

For further information, please call: (512) 305-7842


PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 531. CANONS OF PROFESSIONAL ETHICS AND CONDUCT

22 TAC §531.18

The Texas Real Estate Commission (TREC) proposes adopts to 22 TAC §531.18, Consumer Information, in Chapter 531, Canons of Professional Ethics and Conduct, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4593) and will not be republished.

The amendments to 22 TAC §531.18 reflect statutory changes enacted by the 88th Legislature in HB 1363, which eliminated the real estate inspection recovery fund. As a result, references to that fund are removed from the Consumer Protection Notice form adopted by reference and the version number in the rule is updated.

No comments were received on the proposed amendments as published.

The amendments are adopted under Texas Occupations Code, §1101.151 and §1101.202. Section 1101.151 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. Section 1101.202 requires the Commission to prescribe a notice containing the name, mailing address, and telephone number of the Commission for the purpose of directing a complaint to the commission; and establish methods by which consumers and service recipients are provided the notice by a person regulated under Chapter 1101 or 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 November 9, 2023.

TRD-202304130

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: November 29, 2023

Proposal publication date: August 25, 2023

For further information, please call: (512) 936-3284


CHAPTER 535. GENERAL PROVISIONS

SUBCHAPTER B. GENERAL PROVISIONS RELATING TO THE REQUIREMENTS OF LICENSURE

22 TAC §535.4, §535.5

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.4, License Required, and §535.5, License Not Required, in Chapter 535, General Provisions, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4594) and will not be republished.

The amendments implement statutory changes enacted by the 88th Legislature in SB 1577, which become effective January 1, 2024. Currently, Chapter 1101, Occupations Code, requires business entities who receive compensation on behalf of a license holder to be licensed as a broker. SB 1577 allows certain entities-limited liability companies and s-corporations (as that term is defined by federal law)-to register with the Commission in lieu of obtaining a license. In order to be eligible for registration, these exempted entities must: (i) perform no acts of a broker, other than receiving said compensation on behalf of a license holder; and (ii) be at least 51 percent owned by the license holder on whose behalf the business entity receives compensation. The rule changes reflect this statutory change.

No comments were received for §535.5 as published. Six comments were received for §535.4. Five comments were in support of the change. One commenter expressed concern that the amendment was simultaneously not necessary and was also concerned that by not requiring a license, unlicensed individuals would reduce the integrity of the industry. TREC general counsel reviewed this comment and noted the proposed changes are in line with statute and do not authorize unlicensed brokerage activity. Because the change in this rule is required to reflect the statutory changes made by the legislature, the Commission declines to make changes to the amendments as published.

The amendments are adopted under Texas Occupations Code, §1101.151 and §1101.355, as that section is amended by SB 1577. Section 1101.151 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. Section 1101.355, as amended by SB 1577, requires the Commission to adopt rules providing for the registration of an exempted business entity.

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 November 9, 2023.

TRD-202304131

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: January 1, 2024

Proposal publication date: August 25, 2023

For further information, please call: (512) 936-3284


22 TAC §535.6

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.6, Equitable Interests in Real Property, in Chapter 535, General Provisions, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4596) and will not be republished.

Currently, a person may engage in "wholesaling"--that is, the practice of acquiring an option or entering into a contract to purchase real property and then selling or assigning the interest in the contract to another--without a real estate license, as long as certain disclosures are made to the buyer of the interest. The amendments implement statutory changes enacted by the 88th Legislature in SB 1577, which requires first, that disclosure also be made to the original seller, and second, that the disclosures be in writing. Subsection (c) is being removed to more closely align with the statutory language. Finally, a non-substantive change is made for consistency throughout the chapter.

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 adopted under §1101.0045, Texas Occupations Code, which establishes the statutory basis for the rule.

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 November 9, 2023.

TRD-202304134

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: January 1, 2024

Proposal publication date: August 25, 2023

For further information, please call:(512) 936-3284


SUBCHAPTER C. EXEMPTIONS TO REQUIREMENTS OF LICENSURE

22 TAC §535.35

The Texas Real Estate Commission (TREC) adopts new 22 TAC §535.35, Registration of Certain Business Entities, in Chapter 535, General Provisions, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4597), and will not be republished.

New §535.35 implements statutory changes enacted by the 88th Legislature in SB 1577, which becomes effective January 1, 2024. Currently, §1101.355(c), Occupations Code, requires business entities who receive compensation on behalf of a license holder to be licensed as a broker. Licensure requires certain conditions be satisfied, including, for instance, that the entity have a designated broker and payment of an initial license application fee of $150 and a subsequent $72 application fee to renew. SB 1577 amends §1101.355 by allowing certain entities--limited liability companies and s-corporations (as that term is defined by federal law)--to register with the Commission in lieu of obtaining a license and requires the Commission to adopt rules providing for this registration. The new rule outlines the requirements these exempt business entities must follow to register the business entity with the Commission. The changes also provide a term for the registration once issued, as well as an obligation to certify continuing compliance. Additionally, SB 1577 also amends §1101.152, Occupations Code, which specifically directs the Commission to adopt a rule to charge and collect fees in amounts reasonable and necessary to cover the costs of registering a business entity. Therefore, the changes set forth the fee obligations for such registration and certification of continued compliance. Finally, under the proposal, a license holder must also notify the Commission in writing not later than the 10th day after the date the business entity no longer qualifies for the exemption.

No comments were received on the proposed new rule as published.

The new rule is adopted under Texas Occupations Code, §1101.151 and §1101.355, as that section is amended by SB 1577. Section 1101.151 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. Section 1101.355, as amended by SB 1577, requires the Commission to adopt rules providing for the registration of an exempted business entity.

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 November 9, 2023.

TRD-202304132

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: January 1, 2024

Proposal publication date: August 25, 2023

For further information, please call: (512) 936-3284


SUBCHAPTER E. REQUIREMENTS FOR LICENSURE

22 TAC §535.58

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.58, License for Military Service Members, Veterans, or Military Spouses, in Chapter 535, General Provisions, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4598) and will not be republished.

The amendments, in part, implement statutory changes enacted by the 88th Legislature in SB 422, which first, expands out-of-state occupational license recognition to include military service members, as long as certain criteria are met. SB 422 also modifies the time period within which verification of good standing occurs, as well as issuance of a license after certain conditions are satisfied, from "as soon as practicable" to no later than 30 days. The bill also addresses the term of the license in situations of divorce or other events impacting the military spouse's status. The rule amendments reflect these statutory changes.

In addition, as a result of education requirements being added for easement and right-of-way agents (ERWs) during the 87th Legislative Session, language is added making clear that ERW applicants must otherwise comply with the requirements in 22 TAC §535.400, unless excepted by §535.58. Additionally, language is being struck from the rule to better reflect the statutory framework under Chapter 55, Occupations Code. Finally, a statement of purpose is being added to the rule to make clear that this rule addresses the requirements provided under Chapter 55, Occupations Code, and not federal law.

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 adopted under §55.0041, as amended by SB 422, which requires agencies to adopt rules for the recognition of out-of-state licenses for military service members and military spouses, and §55.005, which requires expedited licenses for military service members, military veterans, and military spouse.

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 November 9, 2023.

TRD-202304135

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: November 29, 2023

Proposal publication date: August 25, 2023

For further information, please call: (512) 936-3284


SUBCHAPTER N. SUSPENSION AND REVOCATION OF LICENSURE

22 TAC §535.147

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.147, Splitting Fee with Unlicensed Person, in Chapter 535, General Provisions, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4600), and will not be republished.

The amendments implement statutory changes enacted by the 88th Legislature in SB 1577, which become effective January 1, 2024. Currently, Chapter 1101, Occupations Code, requires business entities who receive compensation on behalf of a license holder to be licensed as a broker. SB 1577 allows certain entities--limited liability companies and s-corporations (as that term is defined by federal law)--to register with the Commission in lieu of obtaining a license. In order to be eligible for registration, these exempted entities must: (i) perform no acts of a broker, other than receiving said compensation on behalf of a license holder; and (ii) be at least 51 percent owned by the license holder on whose behalf the business entity receives compensation. The rule changes reflect this statutory change.

No comments were received on the proposed amendments as published.

The amendments are adopted under Texas Occupations Code, §1101.151 and §1101.355, as that section is amended by SB 1577. Section 1101.151 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. Section 1101.355, as amended by SB 1577, requires the Commission to adopt rules providing for the registration of an exempted business entity.

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 November 9, 2023.

TRD-202304133

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: January 1, 2024

Proposal publication date: August 25, 2023

For further information, please call: (512) 936-3284


SUBCHAPTER Q. ADMINISTRATIVE PENALTIES

22 TAC §535.191

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.191, Schedule of Administrative Penalties, in Chapter 535, General Provisions, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4601), and will not be republished.

The amendments address a violation of 22 TAC §535.157 (relating to Obligation to Respond Timely), which was recently adopted by the Commission. Current rule 535.157 obligates a broker and sales agent to respond to his or her principal, a broker or sales agent representing another party to a real estate transaction, or an unrepresented party ot a real estate transaction within two calendar days. Under the changes to 535.191, a violation of §535.157 could result in an administrative penalty of $100 - $1,500 per violation per day.

This change is recommended by the Commission's Enforcement Committee.

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 adopted under Texas Occupations Code, §1101.702, which requires the Commission adopt by rule a schedule of administrative penalties.

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 November 9, 2023.

TRD-202304136

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: November 29, 2023

Proposal publication date: August 25, 2023

For further information, please call: (512) 936-3284


SUBCHAPTER R. REAL ESTATE INSPECTIONS

22 TAC §535.210, §535.219

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.210, Fees and §535.219, Schedule of Administrative Penalties, in Chapter 535, General Provisions, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4603), and will not be republished.

The amendments reflect statutory changes enacted by the 88th Legislature in HB 1363, which eliminated the real estate inspection recovery fund. The changes to 535.210 reflect the fact that for applications submitted as of September 1, 2023, the $10 fee will no longer be required. The changes to §535.219 replace a repealed statutory section with a related rule 22 TAC §535.220(g) (although related, this rule is authorized by another statutory provision).

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 adopted under Texas Occupations Code, §1102.403, which allows the Commission to impose an administrative penalty as provided by Subchapter O, Chapter 1101 pursuant to that section.

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 November 9, 2023.

TRD-202304137

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: November 29, 2023

Proposal publication date: August 25, 2023

For further information, please call: (512) 936-3284


CHAPTER 537. PROFESSIONAL AGREEMENTS AND STANDARD CONTRACTS

22 TAC §537.62

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §537.62, Standard Contract Form TREC No. OP-H, Seller's Disclosure Notice; in Chapter 537, Professional Agreements and Standard Contracts, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4605) and will not be republished.

Texas real estate license holders are generally required to use forms promulgated by TREC when negotiating contacts for the sale of real property, although some forms--like the Seller's Disclosure Notice--are adopted by the Commission for voluntary use by license holders. Contract forms are drafted and recommended for proposal 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 one public member appointed by the governor. The Texas Real Estate Broker-Lawyer Committee recommended revisions to the contract forms adopted by reference under the amendments to Chapter 537 to comply with statutory changes enacted by the 88th Legislature in HB 697.

The Seller's Disclosure Notice is updated to comply with the requirements of HB 697, which add a disclosure related to fuel gas piping to the statutorily-required notice.

One comment was received. The commenter requested that an 'unknown' checkbox be added to the fuel gas piping section of the form, believing sellers will not understand what fuel gas piping is. TREC general counsel reviewed this comment and noted that the notice already allows a seller to mark "unknown." Additionally, the Commission's Seller's Disclosure Notice mirrors Section 5.008, Texas Property Code, and it is the policy of the Commission's Broker-Lawyer Committee (the committee charged with drafting and updating contract forms) to not deviate from the statute. As a result, the Commission declined to make changes as a result of this comment.

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 §1101.155, which allows the Commission to adopt rules in the public's best interest that require license holders to use contract forms prepared by the Broker-Lawyer Committee and adopted by the Commission.

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 November 9, 2023.

TRD-202304138

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: November 29, 2023

Proposal publication date: August 25, 2023

For further information, please call: (512) 936-3284