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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 80(R)

Senate Bill 914

Senate Author:  Shapleigh

Effective:  9-1-07

House Sponsor:  Truitt et al.


            Senate Bill 914 amends the Occupations Code to continue the Texas Real Estate Commission (TREC) until September 1, 2019, and to incorporate into related laws several standard across-the-board sunset provisions.  The bill provides for the expiration of the Residential Service Company Act, the Texas Timeshare Act, and certain provisions relating to real estate inspectors on that same date, unless continued by the legislature.  The bill requires the TREC to comply with, implement, and report on the implementation of certain Sunset Advisory Commission recommendations.  It converts the Texas Real Estate Inspector Committee to a purely advisory body, without any delegated jurisdiction, and empowers the TREC to appoint other advisory committees.

            The bill authorizes TREC staff to initiate complaints and investigations and establishes criteria for determining consumer complaint priorities.  It revises TREC enforcement procedures, transfers the conduct of TREC hearings to the State Office of Administrative Hearings, and includes  enforcement provisions relating to cease and desist orders, temporary license suspensions, refunds as a sanctions option, and the informal disposition of contested cases.  Temporary license suspensions are also covered by an amendment to the Texas Timeshare Act in the Property Code.  The bill increases the maximum administrative penalty from $1,000 to $5,000 per violation.  It requires the TREC to adopt a schedule of administrative penalties based on seriousness, previous violations, deterrence, and other factors, and to periodically review its enforcement procedures.

            The bill removes statutory caps on various fees, giving the TREC discretion to establish fee amounts, and includes provisions relating to late fees.  Provisions relating to the accreditation and approval of real estate educational programs and courses of study include a requirement that the TREC collect, and post to the Internet, data on examination passage rates for graduates of accredited educational programs and adopt a standard that at least 55 percent of a program's graduates must pass a licensing examination the first time they take it before the TREC may renew the program's accreditation.  The bill authorizes the TREC to appoint a committee to review the performance of a program that is failing to meet its standard.  Miscellaneous bill provisions relate to online courses, inspector license holders and applicants, and the assumption by the TREC administrator of certain functions formerly vested in the Texas Appraiser Licensing and Certification Board.