By:  Lucio                                             S.B. No. 460
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to license qualifications for certain inspectors regulated
    1-2  by the Texas Real Estate Commission.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subsection (a), Section 23, The Real Estate
    1-5  License Act (Article 6573a, Vernon's Texas Civil Statutes), is
    1-6  amended to read as follows:
    1-7        (a)  Definitions.  In this section:
    1-8              (1)  "Apprentice inspector" means a person who is in
    1-9  training under the direct supervision of a professional inspector
   1-10  <or a real estate inspector> to become qualified to perform real
   1-11  estate inspections.
   1-12              (2)  "Committee" means the Texas Real Estate Inspector
   1-13  Committee.
   1-14              (3)  "Core real estate inspection courses" means
   1-15  educational courses approved by the commission, including but not
   1-16  limited to structural, electrical, mechanical, plumbing, roofing,
   1-17  business, legal, standards of practice, report writing, appliances
   1-18  or ethics, all of which must relate to a real estate inspection.
   1-19              (4)  "Direct supervision" means the instruction and
   1-20  control by a professional inspector <or a real estate inspector>
   1-21  licensed under this section who is:
   1-22                    (A)  responsible for the actions of an apprentice
   1-23  inspector <individual> performing a real estate inspection or
   1-24  preparing a report of a real estate inspection;
    2-1                    (B)  available if and when needed to consult with
    2-2  or assist an apprentice inspector <individual> performing a real
    2-3  estate inspection or preparing a report of a real estate
    2-4  inspection; and
    2-5                    (C)  physically present at the time and place of
    2-6  the inspection.
    2-7              (5)  <"Indirect supervision" means the instruction and
    2-8  control by a professional inspector licensed under this section who
    2-9  is:>
   2-10                    <(A)  responsible for the actions of an
   2-11  individual performing or preparing a real estate inspection; and>
   2-12                    <(B)  available if and when needed to consult
   2-13  with or assist an individual performing a real estate inspection or
   2-14  preparing a report of a real estate inspection, but who is not
   2-15  required to be physically present at the time and place of the
   2-16  inspection.>
   2-17              <(6)>  "Inspector" means a person who is licensed as an
   2-18  apprentice inspector, real estate inspector, or professional
   2-19  inspector under this section.
   2-20              (6) <(7)>  "License" means an apprentice license, a
   2-21  real estate inspector license or a professional inspector license
   2-22  issued under this section.
   2-23              (7) <(8)>  "Licensee" means a person holding an
   2-24  apprentice inspector license, a real estate inspector license or a
   2-25  professional inspector license issued under this section.
   2-26              (8) <(9)>  "Professional inspector" means a person who
   2-27  represents to the public that the person is trained and qualified
    3-1  to perform a real estate inspection and who accepts employment for
    3-2  the purpose of performing a real estate inspection for a buyer or
    3-3  seller of real property.
    3-4              (9) <(10)>  "Real estate inspection" means a written or
    3-5  oral opinion as to the condition of the improvements to real
    3-6  property, including structural items, electrical items, mechanical
    3-7  systems, plumbing systems, or equipment.
    3-8              (10) <(11)>  "Real estate inspector" means a person
    3-9  other than a professional inspector who represents to the public
   3-10  that the person is trained and qualified to perform real estate
   3-11  inspections <under the indirect supervision of a professional
   3-12  inspector> and who accepts employment for the purpose of performing
   3-13  a real estate inspection for a buyer or seller of real property.
   3-14        SECTION 2.  Subdivisions (2) and (3), Subsection (c), Section
   3-15  23, The Real Estate License Act (Article 6573a, Vernon's Texas
   3-16  Civil Statutes), are amended to read as follows:
   3-17              (2)  A person may not act or attempt to act as a real
   3-18  estate inspector in this state for a buyer or seller of real
   3-19  property unless the person possesses a real estate inspector
   3-20  license issued under this section <and is under the indirect
   3-21  supervision of a professional inspector>.
   3-22              (3)  A person may not act or attempt to act as an
   3-23  apprentice inspector in this state for a buyer or seller of real
   3-24  property unless the person is licensed under this section and is
   3-25  under the direct supervision of a <real estate inspector or>
   3-26  professional inspector.
   3-27        SECTION 3.  Subdivisions (2) and (3), Subsection (d), Section
    4-1  23, The Real Estate License Act (Article 6573a, Vernon's Texas
    4-2  Civil Statutes), are amended to read as follows:
    4-3              (2)  To be eligible for a license as a real estate
    4-4  inspector, an applicant must be an individual, a citizen of the
    4-5  United States or a lawfully admitted alien, and a resident of this
    4-6  state at the time of the <have met the requirements and been
    4-7  licensed as an apprentice inspector for at least three months and
    4-8  have performed at least 25 real estate inspections under direct
    4-9  supervision before> filing of the <an> application.  The applicant
   4-10  must be at least 18 years old.  The applicant must satisfy the
   4-11  commission as to the applicant's honesty, trustworthiness,
   4-12  integrity, and competency.  An applicant for an original real
   4-13  estate inspector license must submit satisfactory evidence to the
   4-14  commission of successful completion of not less than 90 classroom
   4-15  hours of core real estate inspection courses.  The commission by
   4-16  rule may specify the length and content of the core real estate
   4-17  inspection courses required by this subdivision.  The commission
   4-18  shall determine the competency of an applicant on the basis of an
   4-19  examination required by Subsection (i) of this section.  <The
   4-20  applicant must be sponsored by a professional inspector licensed
   4-21  under this section.>  Notwithstanding this subdivision of this
   4-22  subsection, an applicant is eligible for and has satisfied all
   4-23  requirements for a license as a real estate inspector if the
   4-24  applicant was previously licensed as a real estate inspector during
   4-25  the preceding 24-month period immediately preceding the filing of
   4-26  the application<, the applicant is sponsored by a professional
   4-27  inspector,> and the applicant satisfies the commission as to the
    5-1  applicant's honesty, trustworthiness, and integrity.
    5-2              (3)  To be eligible for a license as a professional
    5-3  inspector, an applicant must have met the requirements and have
    5-4  been licensed as <an apprentice inspector for at least three months
    5-5  and licensed as> a real estate inspector for at least 12 months and
    5-6  have performed at least 200 <175> real estate inspections <under
    5-7  indirect supervision> before filing an application.  An applicant
    5-8  for an original professional inspector license must submit
    5-9  satisfactory evidence to the commission of successful completion of
   5-10  not less than 30 classroom hours of core real estate inspection
   5-11  courses and eight classroom hours related to the study of standards
   5-12  of practice, legal issues, or ethics related to the profession of
   5-13  real estate inspections.  These classroom hours are in addition to
   5-14  those required for <an apprentice inspector license or> a real
   5-15  estate inspector license.  The commission shall determine the
   5-16  competency of an applicant on the basis of an examination required
   5-17  by Subsection (i) of this section.  Notwithstanding this
   5-18  subsection, an applicant is eligible for and has satisfied all
   5-19  requirements for a license as a professional inspector if the
   5-20  applicant was previously licensed as a professional inspector
   5-21  during the preceding 24-month period immediately preceding the
   5-22  filing of the application and the applicant satisfies the
   5-23  commission as to the applicant's honesty, trustworthiness, and
   5-24  integrity.
   5-25        SECTION 4.  Subsection (f), Section 23, The Real Estate
   5-26  License Act (Article 6573a, Vernon's Texas Civil Statutes), is
   5-27  amended by adding Subdivision (7) to read as follows:
    6-1              (7)  If a person's license is renewed, the commission
    6-2  has jurisdiction to consider and act on a complaint about an
    6-3  inspection performed by the person during the period between the
    6-4  expiration of the previous license and the issuance of the renewed
    6-5  license.
    6-6        SECTION 5.  This Act takes effect September 1, 1995, and
    6-7  applies to an application for a license as an apprentice inspector,
    6-8  real estate inspector, or professional inspector that is filed with
    6-9  the Texas Real Estate Commission on or after that date.  An
   6-10  application filed before that date is governed by the law in effect
   6-11  on the date that the application was filed, and the former law is
   6-12  continued in effect for that purpose.
   6-13        SECTION 6.  The importance of this legislation and the
   6-14  crowded condition of the calendars in both houses create an
   6-15  emergency and an imperative public necessity that the
   6-16  constitutional rule requiring bills to be read on three several
   6-17  days in each house be suspended, and this rule is hereby suspended.