BILL ANALYSIS


                                                     C.S.S.B. 460
                                                        By: Lucio
                                                    State Affairs
                                                          2-28-95
                                   Committee Report (Substituted)
BACKGROUND

Current law requires permit inspector applicants to first work as
an apprentice under the supervised sponsorship of a professional
licensed inspector. However, any inspector can exclude competition
by refusing to offer sponsorship.

PURPOSE

As proposed, C.S.S.B. 460 sets forth license qualifications for
real estate inspectors and professional inspectors.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 23(a), Article 6573a, V.T.C.S. (The Real
Estate License Act), to redefine "apprentice inspector," "director
supervision," and "real estate inspector." Deletes the definition
of "indirect supervision." Redesignates Subdivisions 6-11.

SECTION 2. Amends Sections 23(c)(2) and (3), Article 6573a,
V.T.C.S., as follows:

     (2) Deletes the provision prohibiting a person from acting as
     a real estate inspector for a buyer or seller of real property
     unless the person is under the indirect supervision of a
     professional inspector.
     
     (3) Makes conforming changes.
     
     SECTION 3. Amends Sections 23(d)(2) and (3), Article 6573a,
V.T.C.S., as follows:

     (2) Requires an applicant, to be eligible for a license as a
     real estate inspector, to be an individual, a U.S. citizen or
     lawfully admitted alien, and a resident of this state at the
     time of filing the application. Requires the applicant to be
     at least 18 years old. Deletes the requirement of an applicant
     to have met the requirements and been licensed as an
     apprentice inspector for at least three months and to have
     performed at least 25 real estate inspections under direct
     supervision. Deletes the requirement that an applicant be
     sponsored by a licensed professional inspector. Makes
     conforming changes.
     
     (3) Deletes the requirement of an applicant, to be eligible
     for a license as a professional inspector, to have met the
     requirements and been licensed as an apprentice inspector for
     at least three months. Requires the applicant to have
     performed at least 200, rather than 175, real estate
     inspections before filing an application. Makes conforming
     changes.
     
     SECTION 4. Amends Section 23(f), Article 6573a, V.T.C.S., by adding
Subdivision (7), to provide that if a person's license is renewed,
the Texas Real Estate Commission (commission) has jurisdiction to
consider and act on a complaint about an inspection performed by
the person during the period between the expiration of the previous
license and the issuance of the renewed license.


     SECTION 5.     Effective date: September 1, 1995.
           Makes application of this Act prospective.

SECTION 6. Emergency clause.