September 1, 2021

Dear Residential Service Companies (Home Warranties) License Holder:

Welcome to the Texas Department of Licensing and Regulation!

As you may be aware, House Bill 1560, which was passed by the 87^th Texas Legislature (2021), transferred responsibility for oversight of the Residential Service Companies (Home Warranties) (RSC) program from the Texas Real Estate Commission (TREC) to the Texas Department of Licensing and Regulation (TDLR) on September 1, 2021. We have worked closely with TREC to make sure the program’s transition to TDLR goes as smoothly as possible for license holders and consumers.

I’d like to share with you the values that TDLR and its employees hold dear. TDLR protects the health and safety of Texans and ensures they are served by qualified professionals. We foster a predictable regulatory climate by minimizing government interference. In our work, we:

• are open and transparent;
• apply clear, consistent, and commonsense standards;
• keep costs low and efficiency high; and
• deliver an exceptional customer experience.

H.B. 1560 requires TDLR to adopt new RSC administrative rules no later than June 1, 2022. Existing rules relating to RSCs will remain in effect until that time. In preparation for assuming responsibility of RSCs, TDLR filed a Rules Transfer with the Texas Register, which enabled us to transfer the existing RSC rules found in Tex. Admin. Code, Chapter 539, from TREC into the TDLR Service Contract Provider program rules.

We are beginning a comprehensive review of the existing RSC rules and we will engage in necessary rulemaking soon, including repealing rules that are no longer applicable to the program.

TDLR has some great news – we have determined that because the statute governing RSCs is repealed effective September 1, 2021, license holders are no longer required to submit Annual or Mid-Year Reports and are no longer responsible for payment of the fees associated with those reports. This is an annual cost savings of $3,500!

Additionally, TDLR assumed responsibility beginning September 1, 2021, for reviewing any pending and future complaints against RSC providers or administrators. Consumers are directed to file complaints using TDLR’s Service Contract Providers online complaint form.

Questions relating to the rules transfer and specific rules should be sent to TDLR’s Customer Service Contact Page by selecting “Residential Service Companies (Home Warranties)”.

Be sure to take a moment to sign up for our email updates so you’re always in the know about developments affecting our Service Contract Provider licensees.

Yours in Service,
Brian E. Francis
Executive Director