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.