NDT C.S.S.B. 1100 75(R)BILL ANALYSIS


LICENSING & ADMINISTRATIVE PROCEDURES
C.S.S.B. 1100
By: Wentworth (Jones, Delwin)
5-6-97
Committee Report (Substituted)


BACKGROUND

The Texas Real Estate Commission is charged with the responsibility to
regulate real estate brokers, salesmen, and inspectors. This bill
addresses house-keeping concerns relating to the administration of the
Texas Real Estate License Act. 

PURPOSE

C.S.S.B. 1100 provides for the regulation of real estate brokers, real
estate salesmen, and inspectors. C.S.S.B. 1100: (1) clarifies the current
meaning of "person" under The Real Estate License Act (Article 6573a,
Vernon's Texas Civil Statutes); (2) makes the law of contracts a core real
estate course for prelicensing requirements; (3) raises the fee limit for
applications; (4) authorizes commission employees to file certain
administrative type of complaints; (5) permits the substitution of
relevant education for experience requirements for inspectors; and (6)
increases the number of inspections necessary to obtain a professional
inspector license.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Real Estate Commission in
SECTIONS 3 and 4 of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2(5), The Real Estate License Act (Article
6573a, Vernon's Texas Civil Statutes) to clarify that the current meaning
of "person" under The Real Estate License Act means an individual or any
other entity including a government or governmental subdivision or agency,
a limited liability company, a limited liability partnership, a
partnership, or a foreign or domestic corporation.  The intent of this
amendment is not to change existing law, but rather to clarify the
original intent of The Real Estate License Act. 

SECTION 2. Amends Section 3, The Real Estate License Act (Article 6573a,
Vernon's Texas Civil Statutes) to maintain the currently recognized
exemption of a partnership or limited liability partnership from the
licensing requirements of The Real Estate License Act where the
partnership or limited liability partnership is acting as a broker or real
estate salesman through a partner who is a licensed real estate broker.
This language is necessary to maintain the exemption after the language
clarifying the current meaning of "person" under SECTION 1 above is
adopted. The intent of this amendment is not to change existing law, but
rather to clarify the original intent of The Real Estate License Act. 


SECTION 3. Amends Section 7(a), Article 6573a, V.T.C.S. (The Real Estate
License Act), to delete from the requirements of the principals of real
estate the law of agency and contracts. Requires the law of contract (or
equivalent) to include but not be limited to the elements of a contract,
offer and acceptance, statute of frauds, specific performance and remedies
for breach, unauthorized practice of law, commission rules relating to the
use of promulgated forms, and owner disclosure requirements.  Amends
Section 7(c), Article 6573a, V.T.C.S., to authorize the commission, by
rule, to provide for a waiver of some or all of the requirements for a
license under this Act, notwithstanding any other provision of this Act,
if the applicant was previously licensed in this state within the six-year
period prior to the filing of the application.  Amends Section 7(e),
Article 6573a,  V.T.C.S., to require each applicant for a salesman license
to furnish the commission satisfactory evidence of having completed a
minimum of two hours in law of contracts as described in Subsection
(a)(11) of this section. 

SECTION 4. Amends Section 7A(g), Article 6573a, V.T.C.S., to authorize the
commission, by rule, to establish procedures under which licenses are
issued or renewed, or licensees are returned to active status, prior to
the completion of the continuing education required by this section.
Authorizes the commission to require a licensee to pay an additional fee
not to exceed $200 and to complete the required continuing education
within 60 days after the license was issued or renewed, or the licensee
was returned to active status. 

SECTION 5. Amends Section 11(a), Article 6573a, V.T.C.S., to require the
commission to charge and collect a fee not to exceed $50, rather than $25,
for an application for a license examination. 

SECTION 6. Amends Section 15B(a), Article 6573a, V.T.C.S., by substituting
the word "person" for "consumer or service recipient". The intent of this
amendment is to not change existing law, but rather to clarify that the
term "consumer" or "service recipient" includes any person. Also amends
Section 15B(e), Article 6573a, V.T.C.S., to authorize the commission to
authorize its employees to file signed written complaints against
licensees and to conduct investigations in limited circumstances. 

SECTION 7. Amends Section 23(b)(2), Article 6573a, V.T.C.S., to allow no
more than three members of the Texas Real Estate Inspector Committee to be
licensed real estate brokers or salesmen in addition to being licensed
real estate inspectors. 

SECTION 8. Amends Section 23(d)(4), Article 6573a, V.T.C.S., to require
the commission to provide for the substitution of relevant experience or
additional education in lieu of the number of real estate inspections and
prior licensing as an apprentice inspector or real estate inspector
required by this section. Requires a person to provide certification
acceptable to the commission that the person has completed at least 200
real estate inspections while licensed under this section before a person
licensed as a professional inspector may sponsor an apprentice inspector
or a real estate inspector. 

SECTION 9. Repealer: Section 24(g), Article 6573a, V.T.C.S. moved to  7(c)
in section 3 of the bill. 

SECTION 10. (a) Effective date: September 1, 1997.

(b) Effective date for amended Section 7(e), The Real Estate License Act
(Article 6573a, Vernon's Texas Civil Statutes): January 1, 1998. 

SECTION 11. Emergency clause.

COMPARISON OF C.S.S.B. 1100 TO S.B. 1100

The substitute clarifies that the current meaning of "person" under The
Real Estate License Act means an individual or any other entity including
a government or governmental subdivision or agency, a limited liability
company, a limited liability partnership, a partnership, or a foreign or
domestic corporation. 

The substitute maintains the currently recognized exemption of a
partnership or limited liability partnership from the licensing
requirements of The Real Estate License Act where the partnership or
limited liability partnership is acting as a broker or real estate
salesman through a partner who is a licensed real estate broker. 

The substitute authorizes the commission to provide for a waiver of some
or all of the requirements for a license under The Real Estate License Act
if the applicant was previously licensed in this state within the six-year
period prior to the filing of the application (rather than within the
five-year period prior to the filing of the application as provided in the
filed  version of S.B. 1100). 

The substitute authorizes the commission to initiate investigations of or
actions against licensees based on a signed written complaint from any
person, not just a consumer or service recipient. 

The substitute allows no more than three members of the Texas Real Estate
Inspector Committee to be licensed real estate brokers or salesmen in
addition to being licensed real estate inspectors.