NDT S.B. 577 75(R)BILL ANALYSIS LICENSING & ADMINISTRATIVE PROCEDURES S.B. 577 By: Haywood (Holzheauser) 5-20-97 Committee Report (Unamended) BACKGROUND Currently, Texas governmental and business entities purchase easements and rights-of-way from private landowners to facilitate the delivery of services and products. Historically, real estate brokers have not played a role in such transactions. There are concerns that these transactions should fall outside of the purview of the Real Estate Licensing Act in order to preserve the unique nature of such transactions. This bill requires right-of-way contractors to be registered with the Texas Real Estate Commission. PURPOSE S.B. 577 will require right-of-way contractors to be registered with the Texas Real Estate Commission. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Real Estate Commission in SECTION 8 (Sec. 9A, Article 6573a, V.T.C.S.) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2(5), Article 6573a, V.T.C.S. (The Real Estate License Act), to redefine "person." SECTION 2. Amends Section 3, Article 6573a, V.T.C.S., to include a partnership or limited partnership performing an act constituting an act of a broker or salesman, as defined by this Act, through a partner who is duly licensed as a real estate broker; or a person registered under Section 9A of this Act who performs certain functions in connection with telecommunication, utility, railroad, or pipeline service, among a list of exemptions from the provisions of this Act. SECTION 3. Amends Section 4, Article 6573a, V.T.C.S., to require certain acts by a person required to be licensed or registered under this Act and not so licensed or registered to constitute a violation of this Act. SECTION 4. Amends Section 5(m), Article 6573a, V.T.C.S., to require the Texas Real Estate Commission (commission) to charge and collect as a condition for insurance and for renewal of a registration under Section 9A of this Act the fee under Section 11(a)(14) of this Act. SECTION 5. Amends Section 6, Article 6573a, V.T.C.S., to require an individual to fulfill certain conditions in order to be eligible for a registration or renewal of a registration under Section 9A of this Act. Requires certain entities, in order to be eligible for a registration or renewal of a registration under Section 9A of this Act, to designate one of its officers, partners, or managers to act for it. Requires the designated person to be an individual registered under Section 9A of this Act. SECTION 6. Amends Section 8, Article 6573a, V.T.C.S., to provide that the use of a real estate recovery fund (fund) is limited to an act that constitutes a violation of Section 15(a)(3) or (6) of this Act, if the judgments debtor was at the time of the violation employed in a certain occupation. Provides that the use of the fund is limited to an act that constitutes a violation of Section 9A(c)(1) of this Act if the judgment debtor was at the time of the violation registered under Section 9A of this Act. Requires the registrant to pay, in addition to other fees, a fee of $50, which shall be deposited in the real estate recovery fund in certain situations. Makes conforming and nonsubstantive changes, including striking language concerning unlicensed agents or employees of the broker. SECTION 7. Amends Section 9, Article 6573a, V.T.C.S., to require a license or certificate of registration to be issued when an applicant has satisfactorily met all requirements and conditions of this Act, and remains in force and effect for a certain amount of time. Prohibits a person from engaging in the business of selling, buying, leasing, or transferring an easement or right-of-way for another for compensation until the person is licensed or registered under this Act. Makes conforming changes. SECTION 8. Amends Article 6573a, V.T.C.S., by adding Section 9A, as follows: Sec. 9A. Prohibits a person from selling, buying, leasing, or transferring an easement or right-of-way for another for compensation, or with the intention or in the expectation or on the promise of receiving or collecting compensation, for use in connection with telecommunication, utility, railroad, or pipeline services unless the person fulfills certain criteria. Requires the commission to maintain a registry of persons who are registered under this section. Requires the commission to investigate a signed complaint received by the commission that related to the acts of a person registered under this section. Authorizes the commission to revoke or suspend the registration of certain registrants under this section. Authorizes the commission to adopt rules to administer and enforce this section. SECTION 9. Amends Section 10(a), Article 6573a, V.T.C.S., to make a conforming change. SECTION 10. Amends Section 11, Article 6573a, V.T.C.S., to require the commission to charge and collect an annual fee of $80 from each registrant under Section 9A of this Act and any fee authorized under Section 8 of this Act for the real estate recovery fund. Makes conforming changes. SECTION 11. Amends Section 12, Article 6573a, V.T.C.S., by adding Subsection (e), to require the certificate of registration of a registrant to be prominently displayed in the registrant's place of business. Requires the registrant to notify the commission of a move and obtain a new certificate of registration reflecting the new location within a certain time period after a move from a previously designated address. SECTION 12. Amends Sections 16(a) and (b), Article 6573a, V.T.C.S., to make conforming changes. SECTION 13. Amends Section 19(a), Article 6573a, V.T.C.S., to provide that a person required to register under Section 9a who sells, purchases, leases, or transfers a right-of-way or easement without first obtaining a certificate of registration under Section 9A of this Act is guilty of certain violations. Strikes old language concerning corporations and limited liability companies and inserts "person other than individual" to describe business entities affected. SECTION 14. Effective date: January 1, 1998. SECTION 15. Makes application of this Act prospective. SECTION 16. Emergency clause.