1-1  By:  Lucio                                             S.B. No. 460
    1-2        (In the Senate - Filed February 3, 1995; February 6, 1995,
    1-3  read first time and referred to Committee on State Affairs;
    1-4  February 23, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 12, Nays 0;
    1-6  February 23, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 460                   By:  Nelson
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to license qualifications for certain inspectors regulated
   1-11  by the Texas Real Estate Commission.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Subsection (a), Section 23, The Real Estate
   1-14  License Act (Article 6573a, Vernon's Texas Civil Statutes), is
   1-15  amended to read as follows:
   1-16        (a)  Definitions.  In this section:
   1-17              (1)  "Apprentice inspector" means a person who is in
   1-18  training under the direct supervision of a professional inspector
   1-19  <or a real estate inspector> to become qualified to perform real
   1-20  estate inspections.
   1-21              (2)  "Committee" means the Texas Real Estate Inspector
   1-22  Committee.
   1-23              (3)  "Core real estate inspection courses" means
   1-24  educational courses approved by the commission, including but not
   1-25  limited to structural, electrical, mechanical, plumbing, roofing,
   1-26  business, legal, standards of practice, report writing, appliances
   1-27  or ethics, all of which must relate to a real estate inspection.
   1-28              (4)  "Direct supervision" means the instruction and
   1-29  control by a professional inspector <or a real estate inspector>
   1-30  licensed under this section who is:
   1-31                    (A)  responsible for the actions of an apprentice
   1-32  inspector <individual> performing a real estate inspection or
   1-33  preparing a report of a real estate inspection;
   1-34                    (B)  available if and when needed to consult with
   1-35  or assist an apprentice inspector <individual> performing a real
   1-36  estate inspection or preparing a report of a real estate
   1-37  inspection; and
   1-38                    (C)  physically present at the time and place of
   1-39  the inspection.
   1-40              (5)  <"Indirect supervision" means the instruction and
   1-41  control by a professional inspector licensed under this section who
   1-42  is:>
   1-43                    <(A)  responsible for the actions of an
   1-44  individual performing or preparing a real estate inspection; and>
   1-45                    <(B)  available if and when needed to consult
   1-46  with or assist an individual performing a real estate inspection or
   1-47  preparing a report of a real estate inspection, but who is not
   1-48  required to be physically present at the time and place of the
   1-49  inspection.>
   1-50              <(6)>  "Inspector" means a person who is licensed as an
   1-51  apprentice inspector, real estate inspector, or professional
   1-52  inspector under this section.
   1-53              (6) <(7)>  "License" means an apprentice license, a
   1-54  real estate inspector license or a professional inspector license
   1-55  issued under this section.
   1-56              (7) <(8)>  "Licensee" means a person holding an
   1-57  apprentice inspector license, a real estate inspector license or a
   1-58  professional inspector license issued under this section.
   1-59              (8) <(9)>  "Professional inspector" means a person who
   1-60  represents to the public that the person is trained and qualified
   1-61  to perform a real estate inspection and who accepts employment for
   1-62  the purpose of performing a real estate inspection for a buyer or
   1-63  seller of real property.
   1-64              (9) <(10)>  "Real estate inspection" means a written or
   1-65  oral opinion as to the condition of the improvements to real
   1-66  property, including structural items, electrical items, mechanical
   1-67  systems, plumbing systems, or equipment.
   1-68              (10) <(11)>  "Real estate inspector" means a person
    2-1  other than a professional inspector who represents to the public
    2-2  that the person is trained and qualified to perform real estate
    2-3  inspections <under the indirect supervision of a professional
    2-4  inspector> and who accepts employment for the purpose of performing
    2-5  a real estate inspection for a buyer or seller of real property.
    2-6        SECTION 2.  Subdivisions (2) and (3), Subsection (c), Section
    2-7  23, The Real Estate License Act (Article 6573a, Vernon's Texas
    2-8  Civil Statutes), are amended to read as follows:
    2-9              (2)  A person may not act or attempt to act as a real
   2-10  estate inspector in this state for a buyer or seller of real
   2-11  property unless the person possesses a real estate inspector
   2-12  license issued under this section <and is under the indirect
   2-13  supervision of a professional inspector>.
   2-14              (3)  A person may not act or attempt to act as an
   2-15  apprentice inspector in this state for a buyer or seller of real
   2-16  property unless the person is licensed under this section and is
   2-17  under the direct supervision of a <real estate inspector or>
   2-18  professional inspector.
   2-19        SECTION 3.  Subdivisions (2) and (3), Subsection (d), Section
   2-20  23, The Real Estate License Act (Article 6573a, Vernon's Texas
   2-21  Civil Statutes), are amended to read as follows:
   2-22              (2)  To be eligible for a license as a real estate
   2-23  inspector, an applicant must be an individual, a citizen of the
   2-24  United States or a lawfully admitted alien, and a resident of this
   2-25  state at the time of the <have met the requirements and been
   2-26  licensed as an apprentice inspector for at least three months and
   2-27  have performed at least 25 real estate inspections under direct
   2-28  supervision before> filing of the <an> application.  The applicant
   2-29  must be at least 18 years old.  The applicant must satisfy the
   2-30  commission as to the applicant's honesty, trustworthiness,
   2-31  integrity, and competency.  An applicant for an original real
   2-32  estate inspector license must submit satisfactory evidence to the
   2-33  commission of successful completion of not less than 90 classroom
   2-34  hours of core real estate inspection courses.  The commission by
   2-35  rule may specify the length and content of the core real estate
   2-36  inspection courses required by this subdivision.  The commission
   2-37  shall determine the competency of an applicant on the basis of an
   2-38  examination required by Subsection (i) of this section.  <The
   2-39  applicant must be sponsored by a professional inspector licensed
   2-40  under this section.>  Notwithstanding this subdivision of this
   2-41  subsection, an applicant is eligible for and has satisfied all
   2-42  requirements for a license as a real estate inspector if the
   2-43  applicant was previously licensed as a real estate inspector during
   2-44  the preceding 24-month period immediately preceding the filing of
   2-45  the application<, the applicant is sponsored by a professional
   2-46  inspector,> and the applicant satisfies the commission as to the
   2-47  applicant's honesty, trustworthiness, and integrity.
   2-48              (3)  To be eligible for a license as a professional
   2-49  inspector, an applicant must have met the requirements and have
   2-50  been licensed as <an apprentice inspector for at least three months
   2-51  and licensed as> a real estate inspector for at least 12 months and
   2-52  have performed at least 200 <175> real estate inspections <under
   2-53  indirect supervision> before filing an application.  An applicant
   2-54  for an original professional inspector license must submit
   2-55  satisfactory evidence to the commission of successful completion of
   2-56  not less than 30 classroom hours of core real estate inspection
   2-57  courses and eight classroom hours related to the study of standards
   2-58  of practice, legal issues, or ethics related to the profession of
   2-59  real estate inspections.  These classroom hours are in addition to
   2-60  those required for <an apprentice inspector license or> a real
   2-61  estate inspector license.  The commission shall determine the
   2-62  competency of an applicant on the basis of an examination required
   2-63  by Subsection (i) of this section.  Notwithstanding this
   2-64  subsection, an applicant is eligible for and has satisfied all
   2-65  requirements for a license as a professional inspector if the
   2-66  applicant was previously licensed as a professional inspector
   2-67  during the preceding 24-month period immediately preceding the
   2-68  filing of the application and the applicant satisfies the
   2-69  commission as to the applicant's honesty, trustworthiness, and
   2-70  integrity.
    3-1        SECTION 4.  Subsection (f), Section 23, The Real Estate
    3-2  License Act (Article 6573a, Vernon's Texas Civil Statutes), is
    3-3  amended by adding Subdivision (7) to read as follows:
    3-4              (7)  If a person's license is renewed, the commission
    3-5  has jurisdiction to consider and act on a complaint about an
    3-6  inspection performed by the person during the period between the
    3-7  expiration of the previous license and the issuance of the renewed
    3-8  license.
    3-9        SECTION 5.  This Act takes effect September 1, 1995, and
   3-10  applies to an application for a license as an apprentice inspector,
   3-11  real estate inspector, or professional inspector that is filed with
   3-12  the Texas Real Estate Commission on or after that date.  An
   3-13  application filed before that date is governed by the law in effect
   3-14  on the date that the application was filed, and the former law is
   3-15  continued in effect for that purpose.
   3-16        SECTION 6.  The importance of this legislation and the
   3-17  crowded condition of the calendars in both houses create an
   3-18  emergency and an imperative public necessity that the
   3-19  constitutional rule requiring bills to be read on three several
   3-20  days in each house be suspended, and this rule is hereby suspended.
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