By Barrientos S.B. No. 1398 74R7385 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the regulation of certain residential real estate 1-3 rental locators; providing penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. The Real Estate License Act (Article 6573a, 1-6 Vernon's Texas Civil Statutes) is amended by adding Section 24 to 1-7 read as follows: 1-8 Sec. 24. RESIDENTIAL RENTAL LOCATORS. (a) In this section: 1-9 (1) "Client" means a person using the services of a 1-10 residential rental locator to find a rental residence. 1-11 (2) "Compensation" includes: 1-12 (A) a set fee paid by the prospective tenant; or 1-13 (B) a commission paid by the owner or manager of 1-14 real property on execution of a rental agreement or lease with a 1-15 prospective tenant of the property who is a client of a residential 1-16 rental locator. 1-17 (3) "Inquiry" includes a request for information 1-18 submitted in person, by mail, or through telephone or facsimile 1-19 machine. 1-20 (4) "Residential rental locator" means a person who 1-21 offers, for compensation, to locate residential real property for 1-22 lease to a prospective tenant. 1-23 (b) A person may not engage in business as a residential 1-24 rental locator in this state unless the person holds a license 2-1 issued under this Act to operate as a real estate broker or real 2-2 estate salesman. 2-3 (c) If a residential rental locator advertises real property 2-4 for lease through a print or broadcast medium, the locator must 2-5 submit to a client or prospective client on request, and maintain 2-6 available for inspection by clients and prospective clients for at 2-7 least 30 days after the date on which the advertising was ordered, 2-8 proof that the advertised real property was: 2-9 (1) completely as described in the advertising; 2-10 (2) available for lease at the time the advertising 2-11 was ordered; and 2-12 (3) available for the price listed in the advertising. 2-13 (d) On receipt of an inquiry from a client or prospective 2-14 client about a property advertised for lease by a residential 2-15 rental locator, the locator shall inform the client or prospective 2-16 client, either personally or through the locator's employees: 2-17 (1) whether that specific property is still available 2-18 for lease; and 2-19 (2) of any comparable property that is available for 2-20 lease that is represented by the locator and that: 2-21 (A) reasonably meets the physical description of 2-22 the advertised property; and 2-23 (B) is available for a rent equal to or below 2-24 that listed for the advertised property. 2-25 (e) Each residential rental locator shall post in a 2-26 conspicuous place accessible to clients and prospective clients the 2-27 locator's license, a statement that the locator is licensed by the 3-1 commission, and the name, mailing address, and telephone number of 3-2 the commission as provided by Section 5(q) of this Act. 3-3 (f) A violation of this section by a residential rental 3-4 locator constitutes grounds under this Act for the suspension or 3-5 revocation of the person's license, and for the assessment of an 3-6 administrative penalty under Section 19A of this Act. 3-7 (g) A person commits an offense if the person engages in 3-8 business as a residential rental locator in this state without a 3-9 license issued under this Act. An offense under this subsection is 3-10 a Class B misdemeanor. 3-11 SECTION 2. (a) The change in law made by Section 24(g), The 3-12 Real Estate License Act (Article 6573a, Vernon's Texas Civil 3-13 Statutes), as added by this Act, applies only to an offense 3-14 committed on or after the effective date of this Act. For purposes 3-15 of this section, an offense is committed before the effective date 3-16 of this Act if any element of the offense occurs before that date. 3-17 (b) An offense committed before the effective date of this 3-18 Act is governed by the law in effect when the offense was 3-19 committed, and the former law is continued in effect for that 3-20 purpose. 3-21 SECTION 3. This Act takes effect September 1, 1995. 3-22 SECTION 4. The importance of this legislation and the 3-23 crowded condition of the calendars in both houses create an 3-24 emergency and an imperative public necessity that the 3-25 constitutional rule requiring bills to be read on three several 3-26 days in each house be suspended, and this rule is hereby suspended.