(a) General requirements.
  (1) The non-elective continuing education courses must be conducted as prescribed by the rules in this subchapter.
  (2) Elective continuing education courses are approved and regulated under §535.73 of this subchapter (relating to Approval of Elective Continuing Education Courses).
(b) Application for approval to offer non-elective real estate or inspector CE courses.
  (1) A CE provider seeking to offer a specific non-elective real estate or inspector CE course as outlined in this section shall:
    (A) for a non-elective real estate course:
      (i) submit a Real Estate Non-Elective Continuing Education CE Course Application to the Commission; and
      (ii) pay the fee required by §535.101 of this chapter (relating to Fees); and
    (B) for a non-elective real estate inspection course:
      (i) submit an Inspector Non-Elective Continuing Education CE Course Application to the Commission; and
      (ii) pay the fee required by §535.210 of this chapter (relating to Fees).
  (2) A provider may file a single application for a CE course offered through multiple delivery methods. A fee is required for content review of each CE course and for each distinct delivery method utilized by a provider for that course.
  (3) A provider who seeks approval of a new delivery method for a currently approved CE course must submit a new application, and pay all required fees, including a fee for content review.
  (4) The Commission may:
    (A) request additional information be provided to the Commission relating to an application; and
    (B) terminate an application without further notice if the applicant fails to provide the additional information not later than the 60th day after the Commission mails the request.
(c) Commission approval of non-elective course materials. Every two years, the Commission shall approve subject matter and course materials to be used for the following non-elective continuing education courses:
  (1) a four-hour Legal Update I: Laws, Rules and Forms course;
  (2) a four-hour Legal Update II: Agency, Ethics and Hot Topics course;
  (3) a six-hour Broker Responsibility course; and
  (4) an eight-hour Inspector Legal and Ethics and Standards of Practice Review course.
(d) Course expiration.
  (1) Each legal update course expires on December 31 of each odd-numbered year.
  (2) Each broker responsibility course expires on December 31 of each even-numbered year.
  (3) Each Inspector Legal and Ethics and Standards of Practice Review course expires on August 31 of each odd-numbered year.
(e) Delivery method. Non-elective CE courses must be delivered by one of the following delivery methods:
  (1) classroom delivery;
  (2) distance education delivery; or
  (3) a combination of (1) and (2) of this subsection if at least 50% of the combined course is offered by classroom delivery.
(f) Except as provided in this section, non-elective CE courses must meet the presentation requirements of §535.65(g) of this chapter (relating to Responsibilities and Operations of Providers of Qualifying Courses). The provider must submit a course completion roster in accordance with §535.75(d) of this subchapter (relating to Responsibilities and Operations of Continuing Education Providers). Non-elective real estate courses are designed by the Commission for interactive classroom delivery. Acceptable demonstration of methods to engage students in interactive discussions and activities to meet the course objectives and time requirements are required for approval.
(g) Course examinations. A provider must administer a final examination promulgated by the Commission for non-elective CE courses.
  (1) Real estate non-elective CE courses. The examination will be included in course instruction time. Each student will complete the examination independently followed by a review of the correct answers by the instructor. There is no minimum passing grade required to receive credit.
  (2) Inspector non-elective CE courses for classroom delivery.
    (A) The examination will be given as a part of class instruction time with each student answering the examination questions independently followed by a review of the correct answers by the instructor.
    (B) A student is not required to receive a passing grade on the examination to receive course credit.
  (3) Inspector non-elective CE courses for distance education delivery.
    (A) An examination is required after completion of regular course work.
    (B) The examination must be:
      (i) proctored by a member of the provider faculty or staff, or third party proctor set out in §535.65(h)(5) of this chapter, who is present at the test site and has positively identified that the student taking the examination is the student who registered for and took the course; or
      (ii) administered using a computer under conditions that satisfy the Commission that the student taking the examination is the student who registered for and took the course; and
      (iii) kept confidential.
    (C) A provider may permit a student to take one subsequent final examination if the student fails the initial final examination. The subsequent final examination must be:
      (i) different from the initial final examination; and
      (ii) completed no later than the 30th day after the date the original course concludes.
    (D) Credit will not be awarded to a student for a course where the student receives a pass rate on a final examination or subsequent final exam below 70%.
    (E) A student who fails the subsequent final course examination is required to retake the course and the final course examination.
(h) Approval of currently approved courses by a secondary provider.
  (1) If a CE provider wants to offer a course currently approved for another provider, that secondary provider must:
    (A) submit the CE course application supplement form(s);
    (B) submit written authorization to the Commission from the provider for whom the course was initially approved granting permission for the subsequent provider to offer the course; and
    (C) pay the fee required by §535.101 of this chapter or §535.210 of this chapter.
  (2) If approved to offer the currently approved course, the secondary provider is required to:
    (A) offer the course as originally approved, assume the original expiration date, include any approved revisions, use all materials required for the course; and
    (B) meet the requirements of §535.75 of this subchapter.
(i) Approval notice. A CE Provider shall not offer non-elective continuing education courses until the provider has received written notice of the approval from the Commission.
(j) Required revision of a currently approved non-elective CE course. Providers are responsible for keeping current on changes to the Act and Commission rules and must supplement materials for approved non-elective CE courses to present the current version of all applicable statutes and rules on or before the effective date of those changes.

Source Note: The provisions of this §535.72 adopted to be effective January 1, 2015, 39 TexReg 9669; amended to be effective January 1, 2016, 40 TexReg 8237; amended to be effective December 7, 2016, 41 TexReg 9522; amended to be effective May 24, 2017, 42 TexReg 2725; amended to be effective December 9, 2018, 43 TexReg 7904; amended to be effective December 11, 2019, 44 TexReg 7703; amended to be effective June 16, 2020, 45 TexReg 4036; amended to be effective June 11, 2023, 48 TexReg 2948