BILL ANALYSIS
S.B. 1636
By: Wentworth
State Affairs
4-22-95
Committee Report (Unamended)
BACKGROUND
The Texas Real Estate Commission licenses real estate brokers,
inspectors, time shares, residential service companies, and
salespersons. Some cleanup measures have been reviewed and
discussed by members of the commission.
PURPOSE
As proposed, S.B. 1636 amends certain licensing requirements,
accreditation of schools, the real estate recovery fund, the filing
of complaints, disciplinary provisions and removes all gender
specific language.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the Texas Real Estate Commission in SECTION 8 (Section 7(f),
Article 6573a, V.T.C.S.) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 1(b)-(e), Article 6573a, V.T.C.S., to
remove genderspecific language.
SECTION 2. Amends Section 2(4), Article 6573a, V.T.C.S., to
redefine "real estate salesperson," rather than "real estate
salesman."
SECTION 3. Amends Section 3, Article 6573a, V.T.C.S., to include
a person performing an appraisal of real estate or providing real
estate services, regardless of whether in a federally related
transaction, who is registered, licensed, or certified by the Texas
Appraiser Licensing and Certification Board among persons to which
this Act shall not apply. Makes conforming and nonsubstantive
changes.
SECTION 4. Amends Section 4, Article 6573a, V.T.C.S., to make a
conforming change.
SECTION 5. Amends Sections 5(a), (f), (g), (i), and (m), Article
6573a, V.T.C.S., to make conforming and nonsubstantive changes.
SECTION 6. Amends Sections 6(a) and (b), Article 6573a, V.T.C.S.,
to make conforming and nonsubstantive changes.
SECTION 7. Amends Section 6A(a), Article 6573a, V.T.C.S., to make
a conforming change.
SECTION 8. Amends Sections 7(a), (c)-(h), and (k), Article 6573a,
V.T.C.S., as follows:
(a) Makes conforming and nonsubstantive changes.
(c) Require the Texas Real Estate Commission (commission) to
waive the examination of an applicant for a broker or
salesperson license who has within two years, rather than one
year, previous to the filing of the application been licensed
in this state as a broker or a salesperson if the person is
applying for a salesperson's license. Sets forth the required
actions of an applicant who files an application after the
second anniversary of the expiration date and for an applicant
who has filed an application after the fifth anniversary of
the expiration date.
(d)-(e) Make conforming changes.
(f) Authorizes the commission, by rule, to provide for the
reapplication by and reaccreditation of a school accredited by
the commission before September 1, 1995, and to collect a
reasonable filing fee to implement this section. Prohibits a
fee collected under this subsection from exceeding $400 for an
application for the reaccreditation of a school and $100 for
an application for the approval of a course of study.
(g) Sets forth the evidence which each applicant is required
to furnish the commission.
(h) Makes conforming changes.
(k) Authorizes the commission to negotiate agreements with
testing services relating to examination development,
preparation of study materials, collection of filing fees,
acceptance and processing of license applications, among other
analysis. Authorizes the commission to require a testing
service to collect fees for providing an applicant with study
materials, filing an application for a license, processing
license applications, or administering the examinations
directly from the applicants.
SECTION 9. Amends Sections 7A(a)-(d), Article 6573a, V.T.C.S., as
follows:
(a) Deletes the provision which requires a licensee to
provide the commission proof of attendance at at least eight
classroom hours of continuing education within the term of the
current license, three classroom hours of which were to have
been devoted to the legal topics specified in this section.
Makes conforming changes.
(b)-(c) Make conforming changes.
(d) Authorizes the commission to authorize a provider to
offer continuing education for a period of four, rather than
two years, or authorize the offering of a course of study for
a period of two years.
SECTION 10. Amends Section 8, Article 6573a, V.T.C.S., by
amending Subsections (a)-(f), (h)-(j), (l), (n), and (q) and adding
Subsection (r), as follows:
(a)-(e) Make conforming changes.
(f) Sets forth the provisions the aggrieved person is
required to show on the hearing of an application.
(h)-(i) Make conforming changes.
(j) Authorizes money in the real estate recovery fund,
subject to legislative appropriation, to be used by the
commission to pay the expenses involved in collecting
judgments assigned to the commission.
(l) Makes a nonsubstantive change.
(n) Makes a conforming change.
(q) Makes conforming changes.
(r) Authorizes the commission, if the commission is notified
before making a payment from the real estate recovery fund
that a judgment debtor has initiated a bankruptcy proceeding
involving a judgment that the commission has been ordered to
pay, to move for an order to withdraw the order directing the
commission to make the payment, pending a judicial
determination in the bankruptcy proceeding that the judgment
is not dischargeable.
SECTION 11. Amends Sections 9(a), (b), and (e), Article 6573a,
V.T.C.S., to make conforming changes.
SECTION 12. Amends Section 10(a), Article 6573a, V.T.C.S., to
make a conforming change.
SECTION 13. Amends Section 11, Article 6573a, V.T.C.S., to make
conforming changes.
SECTION 14. Amends Sections 12(a), (b), and (d), Article 6573a,
V.T.C.S., to make conforming changes.
SECTION 15. Amends Section 13, Article 6573a, V.T.C.S., to make
conforming changes.
SECTION 16. Amends Section 13A(a), Article 6573a, V.T.C.S., to
make conforming changes.
SECTION 17. Amends Section 14, Article 6573a, V.T.C.S., to make
conforming changes.
SECTION 18. Amends Sections 15(a) and (d), Article 6573a,
V.T.C.S., to provide that the commission is required to investigate
the actions and records of a real estate broker or salesperson on
the signed complaint of any person in addition to the authority to
act in this capacity on its own volition. Sets forth the criteria
for which the commission has the authority to suspend or revoke an
issued license.
SECTION 19. Amends Section 15B(a), Article 6573a, V.T.C.S., to
prohibit the commission from conducting or authorizing an
undercover or covert investigation of a person licensed under this
Act. Authorizes the commission to authorize an employee of the
commission to file a signed written complaint against a licensee
relating to a payment from a recovery fund established under this
Act, a criminal conviction, or an act of the licensee that involves
obtaining or attempting to obtain a license by fraud, engaging in
misrepresentation or deceit, or failing to make good a check issued
to the commission. Deletes the authority of the commission to
determine that a licensee need not be notified in writing upon
notification of such a complaint.
SECTION 20. Amends Section 15D, Article 6573a, V.T.C.S., to make
a conforming change.
SECTION 21. Amends Sections 16(a), (b), (d), and (e), to make
conforming changes.
SECTION 22. Amends Section 17(a), Article 6573a, V.T.C.S., to
provide that a hearing under this section is governed under Chapter
2001, Government Code. Makes a conforming change.
SECTION 23. Amends Section 18A(a), Article 6573a, V.T.C.S., to
make a conforming change.
SECTION 24. Amends Section 18B(a), Article 6573a, V.T.C.S., to
make a conforming change.
SECTION 25. Amends Sections 19(a) and (b), Article 6573a,
V.T.C.S., to make conforming changes.
SECTION 26. Amends Section 19A(o), Article 6573a, V.T.C.S., to
make a conforming change.
SECTION 27. Amends Section 20, Article 6573a, V.T.C.S., to make
conforming and nonsubstantive changes.
SECTION 28. Amends Sections 23(b)(2), (5), and (9), Article
6573a, V.T.C.S., to make conforming and nonsubstantive changes.
SECTION 29. Amends Section 23(l), Article 6573a, V.T.C.S., to
make a conforming change.
SECTION 30. Amends Section 23(o), Article 6573a, V.T.C.S., by
amending Subdivisions (7) and (11) and adding Subdivision (19), as
follows:
(7) Sets forth the provisions the aggrieved person is
required to show on the hearing of an application.
(11) Authorizes money in the fund to be used by the
commission to pay the expenses involved in collecting a
judgment assigned to the commission.
(19) Authorizes the commission, if the commission is notified
before making a payment from the real estate inspection
recovery fund that a judgment debtor has initiated a
bankruptcy proceeding involving a judgment that the commission
has been ordered to pay, to move for an order to withdraw the
order directing the commission to make the payment, pending a
judicial determination in the bankruptcy proceeding that the
judgment is not dischargeable. Requires a court to grant the
commission's motion on presentation by the commission of proof
that the bankruptcy proceeding involving the judgment debtor
was initiated by the judgment debtor.
SECTION 31. (a) Effective date: September 1, 1995.
(b) Provides that the change made by this Act in the title of
a person licensed to sell real estate does not affect the
validity of a license issued or an act performed before the
effective date of this Act.
SECTION 32. Emergency clause.