1-1     By:  Lucio                                             S.B. No. 525

 1-2           (In the Senate - Filed February 10, 1997; February 13, 1997,

 1-3     read first time and referred to Committee on State Affairs;

 1-4     April 22, 1997, reported favorably by the following vote:  Yeas 8,

 1-5     Nays 0; April 22, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to license qualifications for certain inspectors regulated

 1-9     by the Texas Real Estate Commission.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subsection (a), Section 23, The Real Estate

1-12     License Act (Article 6573a, Vernon's Texas Civil Statutes), is

1-13     amended to read as follows:

1-14           (a)  Definitions.  In this section:

1-15                 (1)  "Apprentice inspector" means a person who is in

1-16     training under the direct supervision of a professional inspector

1-17     [or a real estate inspector] to become qualified to perform real

1-18     estate inspections.

1-19                 (2)  "Committee" means the Texas Real Estate Inspector

1-20     Committee.

1-21                 (3)  "Core real estate inspection courses" means

1-22     educational courses approved by the commission, including but not

1-23     limited to structural, electrical, mechanical, plumbing, roofing,

1-24     business, legal, standards of practice, report writing, appliances,

1-25     or ethics, all of which must relate to a real estate inspection.

1-26                 (4)  "Direct supervision" means the instruction and

1-27     control by a professional inspector [or a real estate inspector]

1-28     licensed under this section who is:

1-29                       (A)  responsible for the actions of an apprentice

1-30     inspector [individual] performing a real estate inspection or

1-31     preparing a report of a real estate inspection;

1-32                       (B)  available if and when needed to consult with

1-33     or assist an apprentice inspector [individual] performing a real

1-34     estate inspection or preparing a report of a real estate

1-35     inspection; and

1-36                       (C)  physically present at the time and place of

1-37     the inspection.

1-38                 (5)  ["Indirect supervision" means the instruction and

1-39     control by a professional inspector licensed under this section who

1-40     is:]

1-41                       [(A)  responsible for the actions of an

1-42     individual performing or preparing a real estate inspection; and]

1-43                       [(B)  available if and when needed to consult

1-44     with or assist an individual performing a real estate inspection or

1-45     preparing a report of a real estate inspection, but who is not

1-46     required to be physically present at the time and place of the

1-47     inspection.]

1-48                 [(6)]  "Inspector" means a person who is licensed as an

1-49     apprentice inspector, real estate inspector, or professional

1-50     inspector under this section.

1-51                 (6) [(7)]  "License" means an apprentice license, a

1-52     real estate inspector license, or a professional inspector license

1-53     issued under this section.

1-54                 (7) [(8)]  "Licensee" means a person holding an

1-55     apprentice inspector license, a real estate inspector license, or a

1-56     professional inspector license issued under this section.

1-57                 (8) [(9)]  "Professional inspector" means a person who

1-58     represents to the public that the person is trained and qualified

1-59     to perform a real estate inspection and who accepts employment for

1-60     the purpose of performing a real estate inspection for a buyer or

1-61     seller of real property.

1-62                 (9) [(10)]  "Real estate inspection" means a written or

1-63     oral opinion as to the condition of the improvements to real

1-64     property, including structural items, electrical items, mechanical

 2-1     systems, plumbing systems, or equipment.

 2-2                 (10) [(11)]  "Real estate inspector" means a person

 2-3     other than a professional inspector who represents to the public

 2-4     that the person is trained and qualified to perform real estate

 2-5     inspections [under the indirect supervision of a professional

 2-6     inspector] and who accepts employment for the purpose of performing

 2-7     a real estate inspection for a buyer or seller of real property.

 2-8           SECTION 2.  Subdivisions (2) and (3), Subsection (c), Section

 2-9     23, The Real Estate License Act (Article 6573a, Vernon's Texas

2-10     Civil Statutes), are amended to read as follows:

2-11                 (2)  A person may not act or attempt to act as a real

2-12     estate inspector in this state for a buyer or seller of real

2-13     property unless the person possesses a real estate inspector

2-14     license issued under this section [and is under the indirect

2-15     supervision of a professional inspector].

2-16                 (3)  A person may not act or attempt to act as an

2-17     apprentice inspector in this state for a buyer or seller of real

2-18     property unless the person is licensed under this section and is

2-19     under the direct supervision of a [real estate inspector or]

2-20     professional inspector.

2-21           SECTION 3.  Subdivisions (2) and (3), Subsection (d), Section

2-22     23, The Real Estate License Act (Article 6573a, Vernon's Texas

2-23     Civil Statutes), are amended to read as follows:

2-24                 (2)  To be eligible for a license as a real estate

2-25     inspector, an applicant must be an individual, a citizen of the

2-26     United States or a lawfully admitted alien, and a resident of this

2-27     state at the time of the [have met the requirements and been

2-28     licensed as an apprentice inspector for at least three months and

2-29     have performed at least 25 real estate inspections under direct

2-30     supervision before] filing of the [an] application.  The applicant

2-31     must be at least 18 years old.  The applicant must satisfy the

2-32     commission as to the applicant's honesty, trustworthiness,

2-33     integrity, and competency.  An applicant for an original real

2-34     estate inspector license must submit satisfactory evidence to the

2-35     commission of successful completion of not less than 90 classroom

2-36     hours of core real estate inspection courses.  The commission by

2-37     rule may specify the length and content of the core real estate

2-38     inspection courses required by this subdivision.  The commission

2-39     shall determine the competency of an applicant on the basis of an

2-40     examination required by Subsection (i) of this section.  [The

2-41     applicant must be sponsored by a professional inspector licensed

2-42     under this section.]  Notwithstanding this subdivision of this

2-43     subsection, an applicant is eligible for and has satisfied all

2-44     requirements for a license as a real estate inspector if the

2-45     applicant was previously licensed as a real estate inspector during

2-46     the preceding 24-month period immediately preceding the filing of

2-47     the application[, the applicant is sponsored by a professional

2-48     inspector,] and the applicant satisfies the commission as to the

2-49     applicant's honesty, trustworthiness, and integrity.

2-50                 (3)  To be eligible for a license as a professional

2-51     inspector, an applicant must have met the requirements and have

2-52     been licensed as [an apprentice inspector for at least three months

2-53     and licensed as] a real estate inspector for at least 12 months and

2-54     have performed at least 200 [175] real estate inspections [under

2-55     indirect supervision] before filing an application.  An applicant

2-56     for an original professional inspector license must submit

2-57     satisfactory evidence to the commission of successful completion of

2-58     not less than 30 classroom hours of core real estate inspection

2-59     courses and eight classroom hours related to the study of standards

2-60     of practice, legal issues, or ethics related to the profession of

2-61     real estate inspections.  These classroom hours are in addition to

2-62     those required for [an apprentice inspector license or] a real

2-63     estate inspector license.  The commission shall determine the

2-64     competency of an applicant on the basis of an examination required

2-65     by Subsection (i) of this section.  Notwithstanding this

2-66     subsection, an applicant is eligible for and has satisfied all

2-67     requirements for a license as a professional inspector if the

2-68     applicant was previously licensed as a professional inspector

2-69     during the preceding 24-month period immediately preceding the

 3-1     filing of the application and the applicant satisfies the

 3-2     commission as to the applicant's honesty, trustworthiness, and

 3-3     integrity.

 3-4           SECTION 4.  Subsection (f), Section 23, The Real Estate

 3-5     License Act (Article 6573a, Vernon's Texas Civil Statutes), is

 3-6     amended by adding Subdivision (7) to read as follows:

 3-7                 (7)  If a person's license is renewed, the commission

 3-8     may consider and act on a complaint regarding an inspection

 3-9     performed by the person during the period between the expiration of

3-10     the previous license and the issuance of the renewed license.

3-11           SECTION 5.  This Act takes effect September 1, 1997, and

3-12     applies to an application for a license as an apprentice inspector

3-13     or real estate inspector that is filed with the Texas Real Estate

3-14     Commission on or after that date.  An application filed before

3-15     September 1, 1997, is governed by the law in effect on the date the

3-16     application was filed, and the former law is continued in effect

3-17     for that purpose.

3-18           SECTION 6.  The importance of this legislation and the

3-19     crowded condition of the calendars in both houses create an

3-20     emergency and an imperative public necessity that the

3-21     constitutional rule requiring bills to be read on three several

3-22     days in each house be suspended, and this rule is hereby suspended.

3-23                                  * * * * *