By:  Madla                                            S.B. No. 1573

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to disclosure and collection of electric and magnetic

 1-2     field information in certain real property transactions.

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

 1-4           SECTION 1.  Subchapter A, Chapter 5, Property Code, is

 1-5     amended by adding Section 5.010 to read as follows:

 1-6           Sec. 010.  INFORMATION CONCERNING ELECTRIC AND MAGNETIC

 1-7     FIELDS FROM ELECTRIC POWER TRANSMISSION LINES.

 1-8           (a)  This section does not apply to a transfer described by

 1-9     sections 5.008(e)(1)-(9).

1-10           (b)  A seller of an interest in real property that is zoned

1-11     or restricted for single-family dwellings of not more than four

1-12     dwelling units who contracts for the transfer of that interest

1-13     shall include in the contract the following bold-faced notice:

1-14           "INFORMATION CONCERNING ELECTRIC AND MAGNETIC FIELDS FROM

1-15     ELECTRIC POWER TRANSMISSION LINES.  Electric and magnetic fields,

1-16     which may or may not affect human health, are produced by electric

1-17     power transmission lines.  Before signing this contract, the

1-18     purchaser is advised to determine whether an electric power

1-19     transmission line is near the property.

1-20           If the seller fails to include the notice described in

1-21     Subsection (b) and subsequently furnishes the notice to the

 2-1     purchaser before the seventh day before closing, the purchaser may

 2-2     terminate the contract, for any reason, not later than the seventh

 2-3     day after the date the purchaser receives the notice.

 2-4           (d)  If the seller fails to include the notice described in

 2-5     Subsection (b) and subsequently furnishes the notice to the

 2-6     purchaser before closing, but not before the seventh day before

 2-7     closing, the purchaser may extend the closing 7 days, without

 2-8     penalty, and may terminate the contract, for any reason, no later

 2-9     than the seventh day after the date the purchaser receives the

2-10     notice.

2-11           (e)  If the seller fails to include the notice described in

2-12     Subsection (b) before closing, the purchaser is entitled to recover

2-13     from the purchaser, in addition to reasonable attorney fees and

2-14     court costs, and amount equal to the greater of $500 or 5 percent

2-15     of the consideration paid for the property.

2-16           SECTION 2.  Section 23 (a) and (b), Texas Real Estate License

2-17     Act (Article 6573a, Vernon's Texas Civil Statutes) is amended to

2-18     read as follows:

2-19           Sec. 23.  Real estate inspectors.  (a)  Definitions.  In this

2-20     section:

2-21                 (1)  "Apprentice inspector" means a person who is in

2-22     training under the direct supervision of a professional inspector

2-23     or a real estate inspector to become qualified to perform real

2-24     estate inspections.

2-25                 (2)  "Committee" means the Texas Real Estate Inspector

 3-1     Committee.

 3-2                 (3)  "Core real estate inspection courses" means

 3-3     educational courses approved by the commission, including but not

 3-4     limited to structural, electrical, mechanical, plumbing, roofing,

 3-5     business, legal, standards of practice, report writing, appliances

 3-6     or ethics, all of which must relate to a real estate inspection.

 3-7                 (4)  "Direct supervision" means the instruction and

 3-8     control by a professional inspector or a real estate inspector

 3-9     licensed under this section who is:

3-10                       (A)  responsible for the actions of an individual

3-11     performing a real estate inspection or preparing a report of a real

3-12     estate inspection;

3-13                       (B)  available if and when needed to consult with

3-14     or assist an individual performing a real estate inspection or

3-15     preparing a report of a real estate inspection; and

3-16                       (C)  physically present at the time and place of

3-17     the inspection.

3-18                 (5)  "Indirect supervision" means the instruction and

3-19     control by a professional inspector licensed under this section who

3-20     is:

3-21                       (A)  responsible for the actions of an individual

3-22     performing or preparing a real estate inspection; and

3-23                       (B)  available if and when needed to consult with

3-24     or assist an individual performing a real estate inspection or

3-25     preparing a report of a real estate inspection, but who is not

 4-1     required to be physically present at the time and place of the

 4-2     inspection.

 4-3                 (6)  "Inspector" means a person who is licensed as an

 4-4     apprentice inspector, real estate inspector, or professional

 4-5     inspector under this section.

 4-6                 (7)  "License" means an apprentice license, a real

 4-7     estate inspector license or a professional inspector license issued

 4-8     under this section.

 4-9                 (8)  "Licensee" means a person holding an apprentice

4-10     inspector license, a real estate inspector license or a

4-11     professional inspector license issued under this section.

4-12                 (9)  "Professional inspector" means a person who

4-13     represents to the public that the person is trained and qualified

4-14     to perform a real estate inspection and who accepts employment for

4-15     the purpose of performing a real estate inspection for a buyer or

4-16     seller of real property.

4-17                 (10)  "Real estate inspection" means a written or oral

4-18     opinion as to the condition of the improvements to real property,

4-19     including structural items, electrical items, mechanical systems,

4-20     plumbing systems, or equipment and a reading of electric and

4-21     magnetic field emissions.

4-22                 (11)  "Real estate inspector" means a person who

4-23     represents to the public that the person is trained and qualified

4-24     to perform real estate inspections under the indirect supervision

4-25     of a professional inspector and who accepts employment for the

 5-1     purpose of performing a real estate inspection for a buyer or

 5-2     seller of real property.

 5-3           (b)  Texas Real Estate Inspector Committee.  (1)  The Texas

 5-4     Real Estate Inspector Committee is created.  In addition to other

 5-5     powers and duties delegated to it by the commission, the committee

 5-6     shall recommend:

 5-7                       (A)  rules for the licensing of inspectors in

 5-8     this state in accordance with this section;

 5-9                       (B)  rules relating to the education and

5-10     experience requirements for licensing as an inspector under this

5-11     section;

5-12                       (C)  rules relating to the qualifying examination

5-13     required for licensing as an inspector under this section;

5-14                       (D)  rules establishing a code of professional

5-15     conduct and ethics for an inspector under this section;

5-16                       (E)  reasonable fees to implement this section,

5-17     including an application fee for licensing, an examination fee, a

5-18     renewal fee for a license, and any other fee required by law;

5-19                       (F)  rules relating to continuing education

5-20     requirements for a licensed inspector;

5-21                       (G)  rules relating to the standards of practice

5-22     for a real estate inspection, including a reading of electric and

5-23     magnetic field emissions;

5-24                       (H)  rules relating to granting or denying an

5-25     application for the licensing of an inspector;

 6-1                       (I)  the form and format for any applications and

 6-2     forms required under this section; and

 6-3                       (J)  any other action by the commission as may

 6-4     provide a high degree of service and protection to the public when

 6-5     dealing with licensed inspectors.

 6-6                 (2)  The committee is composed of nine members

 6-7     appointed by the commission.  The members of the committee hold

 6-8     office for staggered terms of six years, with the terms of three

 6-9     members expiring February 1 of each odd-numbered year.  Each member

6-10     holds office until the member's successor is appointed.

6-11     Appointments to the committee shall be made without regard to the

6-12     sex, race, color, age, handicap, religion, or national origin of

6-13     the appointees.  In the event of a vacancy during a term, the

6-14     commission shall appoint a replacement who meets the qualifications

6-15     for appointment under this subdivision to fill the unexpired part

6-16     of the term.  A member of the committee must be a professional

6-17     inspector actively engaged in the practice of real estate

6-18     inspecting at the time of appointment and must have been primarily

6-19     engaged in the practice of real estate inspecting for at least five

6-20     years before the member's appointment.  A member of the committee

6-21     may not hold a real estate broker or salesman license.  Each member

6-22     of the committee is entitled to a per diem allowance and to

6-23     reimbursement of travel expenses necessarily incurred in performing

6-24     functions as a member of the committee, subject to any applicable

6-25     limitation in the General Appropriations Act.  The committee shall

 7-1     annually elect from its members a chairman, a vice-chairman, and

 7-2     secretary.  A quorum of the committee consists of five members.

 7-3                 (3)  The commission may remove a committee member if

 7-4     the member:

 7-5                       (A)  does not have at the time of appointment the

 7-6     qualifications required by Subdivision (2) of this subsection;

 7-7                       (B)  cannot discharge the member's duties for a

 7-8     substantial part of the term for which the member is appointed

 7-9     because of illness or disability; or

7-10                       (C)  is absent from more than half of the

7-11     regularly scheduled committee meetings that the member is eligible

7-12     to attend during each year, unless the absence is excused by the

7-13     committee.

7-14                 (4)  The validity of an action of the committee is not

7-15     affected by the fact that it was taken when a ground for removal of

7-16     a committee member exists.

7-17                 (5)  If the administrator of the commission has

7-18     knowledge that a potential ground for removal exists, the

7-19     administrator shall notify the chairman of the commission that a

7-20     potential ground exists.

7-21                 (6)  The commission shall adopt procedural rules to be

7-22     used by the committee in implementing its powers and duties.

7-23                 (7)  The committee is subject to the open meetings law,

7-24     Chapter 271, Acts of the 60th Legislature, Regular Session, 1967

7-25     (Article 6252-17, Vernon's Texas Civil Statutes), the open records

 8-1     law, Chapter 424, Acts of the 63rd Legislature, Regular Session,

 8-2     1973 (Article 6252-17a, Vernon's Texas Civil Statutes), and the

 8-3     Administrative Procedure and Texas Register Act (Article 6252-13a,

 8-4     Vernon's Texas Civil Statutes).

 8-5                 (8)  The committee shall meet semiannually and at the

 8-6     call of the commission.  The committee may also meet at the call of

 8-7     a majority of its members.

 8-8                 (9)  The committee shall act in an advisory capacity to

 8-9     develop and recommend to the commission rules under this section.

8-10     The committee shall review commission rules relating to this

8-11     section and recommend changes in the rules to the commission.  The

8-12     commission shall submit all proposed rules, all proposed rule

8-13     changes and all requests for proposed rules or rule changes that

8-14     relate to the regulation and licensing of inspectors under this

8-15     section to the committee for development or recommendation.  The

8-16     commission may modify the rules developed by the committee if the

8-17     commission finds such modifications are in the public interest.

8-18     This section does not prohibit the commission from developing and

8-19     adopting rules relating to the regulation and licensing of

8-20     inspectors under this section if the committee fails to develop or

8-21     recommend rules under this section within a reasonable period of

8-22     time after the commission submits the proposed rules, rule changes

8-23     or requests for proposed rules or rule changes to the committee.

8-24     If the committee determines that a rule requested by the commission

8-25     should not be developed or recommended for adoption by the

 9-1     commission, the committee shall submit a report on the matter to

 9-2     the commission.  The chairman of the commission and the chairman of

 9-3     the committee shall then appoint three members each from their

 9-4     respective bodies to meet as an ad hoc committee to consider the

 9-5     report and recommend possible action by the commission.  The

 9-6     chairman of the commission or a member of the commission designated

 9-7     by the chairman shall serve as the seventh member of the ad hoc

 9-8     committee.  At least one member of the ad hoc committee must be a

 9-9     public member of the commission.

9-10           SECTION 3.  The importance of this legislation and the

9-11     crowded condition of the calendars in both houses create an

9-12     emergency and an imperative public necessity that the

9-13     constitutional rule requiring bills to be read on three several

9-14     days in each house be suspended, and this rule is hereby suspended,

9-15     and that this Act take effect and be in force from and after its

9-16     passage, and it is so enacted.