The Texas Real Estate Commission (TREC) proposes the repeal of §535.112, Branch Office, in Chapter 535, General Provisions. The repeal implements statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process. Specifically, the amendments eliminate the branch office license.

Chelsea Buchholtz, General Counsel, has determined that for the first five-year period the proposed repeal is 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 repeal. There is no significant economic cost anticipated for persons who are required to comply with the proposed repeal. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Buchholtz also has determined that for each year of the first five years the repeal as proposed is in effect, the public benefit anticipated as a result of enforcing the repeal will be a reduction in "unnecessary regulation without jeopardizing public protection," as recommended by the Sunset Advisory Commission. Specifically, the repeal removes the obligation of a broker to apply and pay for branch office licenses.

For each year of the first five years the proposed repeal is in effect it 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;

--create a new regulation;

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

--positively or adversely affect the state's economy.

For each year of the first five years the proposed repeal is in effect, the repeal will reduce fees paid to the agency pursuant to SB 624 of the 86th Texas Legislature which eliminated the branch office license fee. Additionally, for each year of the first five years the proposed repeal is in effect, the repeal will reduce existing regulation, pursuant to the Sunset Advisory Commission's recommendation to eliminate the requirement to obtain a branch office license.

Comments on the proposal may be submitted to Chelsea Buchholtz, 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 repeal is 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; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102.

The statute affected by this proposed repeal is Chapter 1101. No other statute, code or article is affected by the proposed repeal.