The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.2, Broker Responsibility, in Chapter 535, General Provisions. The amendments contain two types of changes: (i) those changes made as a result of the Commission's quadrennial rule review; and (ii) those changes recommended by the Commission appointed Broker Responsibility Working Group (BRWG).

The proposed changes made as a result of the Commission's quadrennial rule review update terminology and rule citations for consistency and clarity throughout the chapter. The change proposed in subsection (e) of §535.2 is made to clarify who may notify the Commission of the end of delegated supervision in a situation where the delegated supervisor is or later becomes a broker.

There are two additional amendments that were recommended by the BRWG. The first proposed change is found in subsection (i)(5). It increases the minimum number of times that a sales agent who performs a type of real estate brokerage activity must receive coaching or assistance from a competent, experienced license holder from one time to three times. The second proposed change is found in §535.2(j). That proposed change modifies the language of that subsection to accommodate the new rule 22 TAC §535.157, which requires both brokers and sales agents to respond to principals to a real estate transaction or their license holders within two calendar days.

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

Ms. Burgess 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 section will be greater clarity in the rules and greater consumer protection through increased brokerage supervision of sales agents initial brokerage activity.

Except as noted below, for each year of the first five years, the proposed amendments are in effect the rule 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;

- limit or repeal an existing regulation;

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

- positively or adversely affect the state's economy.

The proposed amendment to §535.2(j) does expand an existing regulation by expanding the minimum training requirements from one to three.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Vanessa Burgess, 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 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; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The statutes affected by this proposal are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendments.