(1)The Commission staff may:
(A)conduct on-site audits without prior notice to
an approved provider [
|or instructor]; and
(B)enroll and attend a course without identifying
themselves as employees of the Commission for purposes of auditing
(2)An audit report indicating noncompliance with the
Act or Rules is treated as a written complaint against the accredited
provider [ or instructor] concerned.
(b)Complaints, investigations and hearings.
(1)The Commission shall investigate complaints against
approved providers [ or instructors] which allege acts constituting
violations of the Act, Chapter 1102, Texas Occupations Code and Commission
(2)Complaints must be in writing, and the Commission
may not initiate an investigation, or take action against an approved
provider or instructor, based on an anonymous complaint.
(3)Commission staff may initiate a complaint for any
violation of the Act, Chapter 1102, Texas Occupations Code and Commission
rules, including a complaint against an approved provider [ or
instructor], if a course completion certificate or other document
filed with the Commission provides reasonable cause to believe a violation
of this subchapter has occurred.
(4)The Commission shall provide the approved provider
[ or instructor] named in the complaint a copy of the complaint.
(5)Proceedings against approved providers [ and
instructors] will be conducted in the manner required by §1101.657
of the Act, the Administrative Procedure Act, Texas Government Code,
Chapter 2001, and Chapter 533 of this title (relating to Practice
and Procedure). Venue for any hearing conducted under this section
will be in Travis County.
(c)Cooperation with audit or complaint investigation.
An approved provider [ or instructor] shall provide records
in his or her possession for examination by the Commission or provide
such information as is requested by the Commission not later than
the 15th day after the date of receiving a request for examination
of records or information.
(d)Grounds for disciplinary action against an approved
provider [ or instructor].
(1)The following acts committed by an approved provider
or qualified instructor acting on behalf of the provider,
are grounds for disciplinary action by the Commission against
(A)procuring or attempting to procure approval for
a provider or [ ,] course [ or instructor ]
by fraud, misrepresentation or deceit, or by making a material misrepresentation
of fact in an application filed with the Commission;
(B)making a false representation to the Commission,
either intentionally or negligently, that a person had attended a
course or a portion of a course for which credit was awarded, that
a person had completed an examination, or that the person had completed
any other requirement for course credit;
(C)aiding or abetting a person to circumvent the requirements
for attendance established by these sections, the completion of any
examination, or any other requirement for course credit;
(D)failing to provide, not later than the 15th day
after the date of a request, information requested by the commission
as a result of a complaint which would indicate a violation of these
(E)making a materially false statement to the Commission
in response to a request from the Commission for information relating
to a complaint against the approved provider [ or instructor];
(F)disregarding or violating a provision of this Chapter
or the Act; or
(G)a provider of qualifying education failing to maintain
sufficient financial resources to continue operation of the provider.
(2)If the Commission receives a complaint, or is presented
with other evidence acceptable to the Commission alleging that a provider
or instructor is not adequately teaching to the curriculum standards
as required by this Chapter, the Commission may initiate a complaint
against that provider [ or instructor].
(3)If after an investigation the Commission determines
that a provider or instructor engaged in any of the acts listed in
this subsection, or failed to teach to the curriculum standards as
required by this Chapter, the Commission may take the following disciplinary
action against a provider [ or instructor]:
(B)impose an administrative penalty;
(C)require additional education; or
(D)suspend or revoke approval.
(e)Probation. The Commission may probate an order
of suspension or revocation issued under this section upon reasonable
terms and conditions.
The agency certifies that legal counsel has reviewed
the proposal and found it to be within the state agency's legal authority
Filed with the Office
of the Secretary of State on August 16, 2019
Texas Real Estate Commission
Earliest possible date of adoption: September 29, 2019
For further information, please call: (512) 936-3177