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.