81R12301 YDB-D
By: Isett H.B. No. 3738
Substitute the following for H.B. No. 3738:
By: Geren C.S.H.B. No. 3738
A BILL TO BE ENTITLED
AN ACT
relating to requirements for correspondence courses for licensing
as a real estate broker, salesperson, or inspector.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1101, Occupations Code, is amended by
adding Subchapter G-1 to read as follows:
SUBCHAPTER G-1. REGISTRATION OF CORRESPONDENCE COURSE
Sec. 1101.331. DEFINITIONS. In this subchapter:
(1) "Educational institution" means an accredited
college or university authorized under this chapter or Chapter 1102
to offer a real estate or real estate inspection educational course
or program of study using a third-party marketing firm.
(2) "Correspondence course" means a distance learning
course offered by an educational institution as a noncredit course
that consists primarily of text material. The term does not include
a program or course offered by an educational institution as part of
the institution's degree granting program that is recorded as a
credit on an official transcript issued by the institution.
Sec. 1101.332. REGISTRATION REQUIRED. A correspondence
course is not acceptable as a core real estate course or continuing
education course under this chapter or a core real estate
inspection course or continuing education course under Chapter 1102
unless the educational institution offering the course holds a
certificate of registration issued by the commission under this
subchapter.
Sec. 1101.333. APPLICATION; ISSUANCE OF CERTIFICATE. (a)
An educational institution may submit an application to hold a
certificate of registration under this subchapter by applying to
the commission on the form prescribed by the commission. The
application must include:
(1) the institution's name, address, telephone number,
and any other contact information required by the commission;
(2) the name, address, and telephone number of the
person in an academic department of the institution who reviews and
approves real estate correspondence course content and ensures the
educational integrity of the course before information about the
course is submitted to the commission for the commission's
approval;
(3) the name, address, and telephone number of any
additional person responsible for administering the course or
program of study that has as a component a correspondence course;
(4) the name, address, and telephone number of any
marketing firm or proprietary real estate course provider that is
associated with providing the course at the institution;
(5) the institution's accreditation information and
evidence to demonstrate that the accreditation is acceptable to the
commission;
(6) information on the ownership or copyright
interests in the correspondence course materials;
(7) the name of the person designated to issue the
official completion certificate on a student's successful
completion of the course and the procedure for timely issuance of
the certificate if the regular procedures cannot be followed
because of an institutional holiday or break or for other reasons;
and
(8) a statement by a representative of the institution
attesting that the institution will uphold the professional and
academic standards required for completion of an approved
correspondence course.
(b) An educational institution that holds a certificate of
registration issued under this subchapter shall notify the
commission of any changes to the information provided under
Subsection (a) not later than the 30th day after the date of the
change.
(c) The commission shall issue a certificate of
registration to an educational institution that meets the
applicable requirements of this chapter, Chapter 1102, and
commission rules. The commission may not unreasonably deny the
issuance of a certificate of registration to an educational
institution that otherwise meets the applicable requirements under
this chapter, Chapter 1102, and commission rules.
Sec. 1101.334. CERTIFICATE EXPIRATION AND RENEWAL; FEES.
(a) The commission may issue or renew a certificate of registration
for a period not to exceed 24 months.
(b) The commission may charge a fee for the issuance of a
certificate of registration under this subchapter in an amount that
is reasonable and necessary to cover the costs of administering
this subchapter.
Sec. 1101.335. APPROVAL OF CORRESPONDENCE COURSE OR PROGRAM
OF STUDY. (a) An educational institution that holds a certificate
of registration issued under this subchapter shall submit to the
commission, for approval of a correspondence course or program of
study offered by the institution, a letter describing the course or
program. The letter must:
(1) be on the institution's letterhead; and
(2) be signed by a representative of the institution
who is responsible for supervising correspondence course content
and approval under this subchapter.
(b) On receipt of the letter, the commission shall add an
approved correspondence course or program of study to the
commission's list of approved correspondence courses or programs
for that educational institution.
(c) An educational institution that holds a certificate of
registration issued under this subchapter may not submit a
correspondence course or program of study to the commission for
approval by the commission unless the course or program has been
reviewed by a member of the institution's academic department. The
person reviewing the course or program must examine the content,
educational quality, and standards of the course or program to
ensure that the course or program complies with the applicable
provisions of this chapter, Chapter 1102, and commission rules.
Sec. 1101.336. CORRESPONDENCE COURSE REQUIREMENTS. (a) An
educational institution may not offer a correspondence course under
this subchapter unless the course:
(1) is based primarily on information found in a
textbook;
(2) provides each student with the option of
completing the course requirements using a paper format;
(3) provides each student with printed copies of
material that constitutes a significant portion of the course;
(4) is divided into multiple units of instruction
unless the course is a continuing education course or a core real
estate inspection course that is four hours or less in duration;
(5) provides a diagnostic assessment of each student's
performance at regular intervals during each unit of instruction to
measure the student's acquired knowledge; and
(6) for a core real estate course or core real estate
inspection course, complies with the applicable provisions of this
chapter, Chapter 1102, or commission rules.
(b) An educational institution that holds a certificate of
registration issued under this subchapter and that offers as a
correspondence course a core real estate course described by
Section 1101.003(a)(1), (2), or (3) shall select a textbook for the
mandatory prelicensing courses on principles of real estate, law of
contracts, and law of agency from the commission's list of
acceptable published textbooks.
(c) An educational institution that holds a certificate of
registration under this subchapter shall establish reasonable
procedures to ensure that a student who completes the work for a
correspondence course is the student who is enrolled in the course.
(d) On completion of a correspondence course authorized
under this subchapter and before credit is granted for the course, a
student enrolled in the course shall attest in a written statement
submitted to the educational institution that the person enrolled
in and receiving credit for the course is the same person who
completed the required course work.
(e) An educational institution may not issue a
correspondence course completion certificate through the use of a
computer printout generated by a computer course program on
completion of the course.
Sec. 1101.337. CORRESPONDENCE COURSE FINAL EXAMINATION. (a)
An educational institution may not offer a correspondence course
under this subchapter unless the final examination questions for
the course:
(1) differ significantly from the questions used in
the diagnostic assessments for the course; and
(2) are kept confidential.
(b) Subsection (a)(2) does not prohibit a student from
reviewing under controlled conditions a final examination taken by
the student after the examination has been graded.
(c) A final examination for a correspondence course
approved under this subchapter may be conducted as an open or closed
book examination. Course credit may not be granted for the
correspondence course unless a student completes all diagnostic
assessments and successfully completes:
(1) a proctored final examination that is:
(A) administered under controlled conditions to
a student whose identity has been verified at a location and by an
official approved by the commission; and
(B) graded by the instructor, an approved
representative of the educational institution, or, for an
examination graded mechanically or electronically, by the use of
answer keys approved by the instructor or institution; or
(2) a final examination administered through the use
of a computer program with timed questions that verifies that the
person taking the examination is the student who enrolled in the
course or through another method approved by the commission to
verify the student's identity.
Sec. 1101.338. CORRESPONDENCE COURSE ETHICS. (a) An
educational institution that holds a certificate of registration
under this subchapter shall cooperate with the commission to
maintain the highest educational standards for real estate
education. The commission may suspend or revoke an educational
institution's certificate of registration issued under this
subchapter if:
(1) the institution does not supervise a
correspondence course or program; or
(2) a correspondence course does not comply with the
minimum correspondence course standards established by this
chapter, Chapter 1102, or commission rules.
(b) A representative of an educational institution that
holds a certificate of registration issued under this subchapter
shall sign an agreement to maintain the ethical and academic
standards required by the commission for correspondence courses and
programs of study under this chapter or Chapter 1102.
(c) An educational institution may not enter a business
relationship with an outside provider for the provider to offer a
correspondence course that:
(1) uses the name of the institution for a fee without
any additional institutional involvement in the creation or
administration of the course; or
(2) uses a textbook for a mandatory prelicensing core
real estate course that is not on the list of textbooks approved by
the commission.
(d) An educational institution that outsources the
creation, administration, or marketing of a correspondence course
or program of study to an outside provider or subcontractor is
responsible for the actions of the provider or subcontractor.
Sec. 1101.339. ADVERTISING. (a) In any print or electronic
advertisement of a correspondence course approved under this
subchapter, an educational institution that holds a certificate of
registration issued under this chapter shall ensure that the
institution's name or logo is prominently displayed in a manner
that adequately informs the consumer which institution is offering
the course.
(b) A broker, salesperson, or inspector licensed under this
subtitle may not participate in a student recruiting program that
advertises a real estate correspondence course or program of study
in a manner that compromises the integrity of the course or program
by:
(1) suggesting the course or program may be completed
in less time than the number of credit hours granted for successful
completion of the course or program; or
(2) providing answer keys to diagnostic assessments or
final examinations.
Sec. 1101.340. LICENSING EXAMINATION PASSING PERCENTAGE
DATA. The commission shall adopt rules requiring an educational
institution that holds a certificate of registration under this
subchapter to establish the program's graduate licensing
examination passage rate.
SECTION 2. (a) Not later than January 1, 2010, the Texas
Real Estate Commission shall adopt the rules required to implement
Subchapter G-1, Chapter 1101, Occupations Code, as added by this
Act.
(b) Notwithstanding Subchapter G-1, Chapter 1101,
Occupations Code, as added by this Act, an educational institution
providing a real estate correspondence course or program of study
is not required to comply with that subchapter before September 1,
2010.
SECTION 3. This Act takes effect September 1, 2009.