By:  Lucio                                             S.B. No. 525

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to license qualifications for certain inspectors regulated

 1-2     by the Texas Real Estate Commission.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (a), Section 23, The Real Estate

 1-5     License Act (Article 6573a, Vernon's Texas Civil Statutes), is

 1-6     amended to read as follows:

 1-7           (a)  Definitions.  In this section:

 1-8                 (1)  "Apprentice inspector" means a person who is in

 1-9     training under the direct supervision of a professional inspector

1-10     [or a real estate inspector] to become qualified to perform real

1-11     estate inspections.

1-12                 (2)  "Committee" means the Texas Real Estate Inspector

1-13     Committee.

1-14                 (3)  "Core real estate inspection courses" means

1-15     educational courses approved by the commission, including but not

1-16     limited to structural, electrical, mechanical, plumbing, roofing,

1-17     business, legal, standards of practice, report writing, appliances,

1-18     or ethics, all of which must relate to a real estate inspection.

1-19                 (4)  "Direct supervision" means the instruction and

1-20     control by a professional inspector [or a real estate inspector]

1-21     licensed under this section who is:

1-22                       (A)  responsible for the actions of an apprentice

1-23     inspector [individual] performing a real estate inspection or

1-24     preparing a report of a real estate inspection;

 2-1                       (B)  available if and when needed to consult with

 2-2     or assist an apprentice inspector [individual] performing a real

 2-3     estate inspection or preparing a report of a real estate

 2-4     inspection; and

 2-5                       (C)  physically present at the time and place of

 2-6     the inspection.

 2-7                 (5)  ["Indirect supervision" means the instruction and

 2-8     control by a professional inspector licensed under this section who

 2-9     is:]

2-10                       [(A)  responsible for the actions of an

2-11     individual performing or preparing a real estate inspection; and]

2-12                       [(B)  available if and when needed to consult

2-13     with or assist an individual performing a real estate inspection or

2-14     preparing a report of a real estate inspection, but who is not

2-15     required to be physically present at the time and place of the

2-16     inspection.]

2-17                 [(6)]  "Inspector" means a person who is licensed as an

2-18     apprentice inspector, real estate inspector, or professional

2-19     inspector under this section.

2-20                 (6) [(7)]  "License" means an apprentice license, a

2-21     real estate inspector license, or a professional inspector license

2-22     issued under this section.

2-23                 (7) [(8)]  "Licensee" means a person holding an

2-24     apprentice inspector license, a real estate inspector license, or a

2-25     professional inspector license issued under this section.

2-26                 (8) [(9)]  "Professional inspector" means a person who

2-27     represents to the public that the person is trained and qualified

 3-1     to perform a real estate inspection and who accepts employment for

 3-2     the purpose of performing a real estate inspection for a buyer or

 3-3     seller of real property.

 3-4                 (9) [(10)]  "Real estate inspection" means a written or

 3-5     oral opinion as to the condition of the improvements to real

 3-6     property, including structural items, electrical items, mechanical

 3-7     systems, plumbing systems, or equipment.

 3-8                 (10) [(11)]  "Real estate inspector" means a person

 3-9     other than a professional inspector who represents to the public

3-10     that the person is trained and qualified to perform real estate

3-11     inspections [under the indirect supervision of a professional

3-12     inspector] and who accepts employment for the purpose of performing

3-13     a real estate inspection for a buyer or seller of real property.

3-14           SECTION 2.  Subdivisions (2) and (3), Subsection (c), Section

3-15     23,  The Real Estate License Act (Article 6573a, Vernon's Texas

3-16     Civil Statutes), are amended to read as follows:

3-17                 (2)  A person may not act or attempt to act as a real

3-18     estate inspector in this state for a buyer or seller of real

3-19     property unless the person possesses a real estate inspector

3-20     license issued under this section [and is under the indirect

3-21     supervision of a professional inspector].

3-22                 (3)  A person may not act or attempt to act as an

3-23     apprentice inspector in this state for a buyer or seller of real

3-24     property unless the person is licensed under this section and is

3-25     under the direct supervision of a [real estate inspector or]

3-26     professional inspector.

3-27           SECTION 3.  Subdivisions (2) and (3), Subsection (d), Section

 4-1     23, The Real Estate License Act (Article 6573a, Vernon's Texas

 4-2     Civil Statutes), are amended to read as follows:

 4-3                 (2)  To be eligible for a license as a real estate

 4-4     inspector, an applicant must be an individual, a citizen of the

 4-5     United States or a lawfully admitted alien, and a resident of this

 4-6     state at the time of the [have met the requirements and been

 4-7     licensed as an apprentice inspector for at least three months and

 4-8     have performed at least 25 real estate inspections under direct

 4-9     supervision before] filing of the [an] application.  The applicant

4-10     must be at least 18 years old.  The applicant must satisfy the

4-11     commission as to the applicant's honesty, trustworthiness,

4-12     integrity, and competency.  An applicant for an original real

4-13     estate inspector license must submit satisfactory evidence to the

4-14     commission of successful completion of not less than 90 classroom

4-15     hours of core real estate inspection courses.  The commission by

4-16     rule may specify the length and content of the core real estate

4-17     inspection courses required by this subdivision.  The commission

4-18     shall determine the competency of an applicant on the basis of an

4-19     examination required by Subsection (i) of this section.  [The

4-20     applicant must be sponsored by a professional inspector licensed

4-21     under this section.]  Notwithstanding this subdivision of this

4-22     subsection, an applicant is eligible for and has satisfied all

4-23     requirements for a license as a real estate inspector if the

4-24     applicant was previously licensed as a real estate inspector during

4-25     the preceding 24-month period immediately preceding the filing of

4-26     the application[, the applicant is sponsored by a professional

4-27     inspector,] and the applicant satisfies the commission as to the

 5-1     applicant's honesty, trustworthiness, and integrity.

 5-2                 (3)  To be eligible for a license as a professional

 5-3     inspector, an applicant must have met the requirements and have

 5-4     been licensed as [an apprentice inspector for at least three months

 5-5     and licensed as] a real estate inspector for at least 12 months and

 5-6     have performed at least 200 [175] real estate inspections [under

 5-7     indirect supervision] before filing an application.  An applicant

 5-8     for an original professional inspector license must submit

 5-9     satisfactory evidence to the commission of successful completion of

5-10     not less than 30 classroom hours of core real estate inspection

5-11     courses and eight classroom hours related to the study of standards

5-12     of practice, legal issues, or ethics related to the profession of

5-13     real estate inspections.  These classroom hours are in addition to

5-14     those required for [an apprentice inspector license or] a real

5-15     estate inspector license.  The commission shall determine the

5-16     competency of an applicant on the basis of an examination required

5-17     by Subsection (i) of this section.  Notwithstanding this

5-18     subsection, an applicant is eligible for and has satisfied all

5-19     requirements for a license as a professional inspector if the

5-20     applicant was previously licensed as a professional inspector

5-21     during the preceding 24-month period immediately preceding the

5-22     filing of the application and the applicant satisfies the

5-23     commission as to the applicant's honesty, trustworthiness, and

5-24     integrity.

5-25           SECTION 4.  Subsection (f), Section 23, The Real Estate

5-26     License Act (Article 6573a, Vernon's Texas Civil Statutes), is

5-27     amended by adding Subdivision (7) to read as follows:

 6-1                 (7)  If a person's license is renewed, the commission

 6-2     may consider and act on a complaint regarding an inspection

 6-3     performed by the person during the period between the expiration of

 6-4     the previous license and the issuance of the renewed license.

 6-5           SECTION 5.  This Act takes effect September 1, 1997, and

 6-6     applies to an application for a license as an apprentice inspector

 6-7     or real estate inspector that is filed with the Texas Real Estate

 6-8     Commission on or after that date.  An application filed before

 6-9     September 1, 1997, is governed by the law in effect on the date the

6-10     application was filed, and the former law is continued in effect

6-11     for that purpose.

6-12           SECTION 6.  The importance of this legislation and the

6-13     crowded condition of the calendars in both houses create an

6-14     emergency and an imperative public necessity that the

6-15     constitutional rule requiring bills to be read on three several

6-16     days in each house be suspended, and this rule is hereby suspended.