SRC-MAX S.B. 1100 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1100
By: Wentworth
State Affairs
4-9-97
As Filed


DIGEST 

Currently, the law requires applicants for real estate salesman licenses
to complete a certain number of approved courses in real estate training.
Real estate brokers and salesman must also complete a certain number of
hours dedicated to continuing education courses. This bill sets forth
certain provisions related to the licensing of real estate brokers, real
estate salesmen, and inspectors.  This bill also addresses additional
concerns relating to the administration of licensing examinations by the
Texas Real Estate Commission.    

PURPOSE

As proposed, S.B. 1100 provides for the regulation of real estate brokers,
real estate salesmen, and inspectors. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Real Estate Commission in
SECTIONS 2 and 4 (Sections 7(c) and 7A(d), Article 6573a, V.T.C.S.) of
this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 7(a), Article 6573a, V.T.C.S. (The Real Estate
License Act), to delete from the requirements of the principles 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.   

SECTION 2. 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 five-year period prior to the filing of the application. 

 SECTION 3. 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(d), 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, among other fees.   

SECTION 6. Amends Section 15B(a), 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 under certain
conditions.   

SECTION 7. 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 committee 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 8. Repealer:  Section 24(g), Article 6573a, V.T.C.S. (Residential
Rental Locators). 

SECTION 9. (a)  Effective date:  September 1, 1997.

(b)  Effective date for SECTION 3:  January 1, 1998. 

SECTION 10. Emergency clause.