The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.141, Initiation of Investigation, and new rule §535.142, Consumer Complaint Processing, in Chapter 535, General Provisions. The proposed amendments to §535.141 and the proposed new rule §535.142 are recommended by the Enforcement Committee to implement recommendations from the Texas Sunset Commission regarding the development of standard rules and procedures for handling each phase of the complaint process. As recommended by the Sunset Commission, the proposed amendments and new rule will summarize the Commission's existing procedures for handling consumer complaints as part of the Commission's rules and provide transparency to license holders and members of the public.

The proposed amendments to §535.141 change the caption of this section to clarify that this section also includes order requirements. The proposed amendments also add language to this section to clarify how the agency prioritizes complaint investigations as required in Tex. Occ. Code §1101.204. The proposed amendments remove existing language from subsection (b), since that language is proposed for inclusion in new §535.142, and correct a typographical error by inserting a missing period to the end of subsection (f).

The proposed new §535.142 specifies the steps followed by the Commission when processing and investigating consumer complaints. This new section also includes the language from §535.161 in this Chapter, which is being proposed for repeal.

Kristen Worman, Deputy General Counsel, has determined that for the first five-year period the proposed amendments and new rule are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments and new rule. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments and new rule. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Worman also has determined that for each year of the first five years the sections as proposed are in effect, the public benefit anticipated as a result of enforcing the sections will be more information and better clarity and transparency for members of the public and license holders about the Commission's process for handling consumer complaints.

For each year of the first five years the proposed amendments and new rule are in effect the amendments will not:

create or eliminate a government program;

require the creation of new employee positions or the elimination of existing employee positions;

require an increase or decrease in future legislative appropriations to the agency;

require an increase or decrease in fees paid to the agency;

create a new regulation;

expand, limit or repeal an existing regulation;

increase or decrease the number of individuals subject to the rule's applicability; or

positively or adversely affect the state's economy.

Although §535.142 is a new rule, this section merely summarizes existing processes authorized in statute and followed by the Commission for handling consumer complaints. For these reasons, §535.142 does not create a new regulation or expand, limit, or repeal an existing regulation.

Comments on the proposal may be submitted to Kristen Worman, Deputy General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments and new rule are proposed 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.

The statutes affected by the proposed amendments and new rule are Chapters 1101 and 1102, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments and new rule.