By: Wentworth S.B. No. 1016
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of real estate brokers, salespersons,
1-2 and inspectors and to the administration of certain recovery funds;
1-3 providing administrative penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (a), Section 6, The Real Estate
1-6 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
1-7 amended to read as follows:
1-8 (a) A person desiring to act as a real estate broker in this
1-9 state shall file an application for a license with the commission
1-10 on a form prescribed by the commission. A broker desiring to
1-11 engage a person to participate in real estate brokerage activity
1-12 may [shall] join the person in filing an application for an active
1-13 [a] salesperson license on a form prescribed by the commission. [A
1-14 person previously licensed as a broker may apply for inactive
1-15 status.] A person [previously licensed as a salesperson] may apply
1-16 for a salesperson license on inactive status without the
1-17 participation of a broker. [The person must apply for inactive
1-18 status on a form prescribed by the commission not later than the
1-19 first anniversary of the date of the expiration of the broker or
1-20 salesperson license.]
1-21 SECTION 2. Subsections (a), (b), and (e), Section 7, The
1-22 Real Estate License Act (Article 6573a, Vernon's Texas Civil
1-23 Statutes), are amended to read as follows:
1-24 (a) Competency as referred to in Section 6 of this Act shall
2-1 be established by an examination prepared by or contracted for by
2-2 the commission. The examination shall be given at such times and
2-3 at such places within the state as the commission shall prescribe.
2-4 The examination shall be of scope sufficient in the judgment of the
2-5 commission to determine that a person is competent to act as a real
2-6 estate broker or salesperson in a manner to protect the interest of
2-7 the public. The examination for a salesperson license shall be
2-8 less exacting and less stringent than the examination for a broker
2-9 license. The commission shall furnish each applicant with study
2-10 material and references on which the examination shall be based.
2-11 When an applicant for a real estate license fails a qualifying
2-12 examination, the applicant may apply for reexamination by filing a
2-13 request therefor together with the proper fee. The examination
2-14 requirement must be satisfied not later than six months after the
2-15 date on which the application for a license is filed. A license
2-16 applicant who fails the examination four consecutive times in
2-17 connection with the same application may not apply for
2-18 reexamination or submit a new license application before the 180th
2-19 day after the date the applicant failed the fourth examination.
2-20 Courses of study required for a license may include but are not
2-21 limited to the following, which shall be considered core real
2-22 estate courses for all purposes of this Act:
2-23 (1) Principles of Real Estate (or equivalent) shall
2-24 include but not be limited to an overview of licensing as a real
2-25 estate broker and salesperson, ethics of practice, titles to and
2-26 conveyancing of real estate, legal descriptions, deeds,
3-1 encumbrances and liens, distinctions between personal and real
3-2 property, appraisal, finance and regulations, closing procedures,
3-3 real estate mathematics, and at least three classroom hours of
3-4 instruction on federal, state, and local laws relating to housing
3-5 discrimination, housing credit discrimination, and community
3-6 reinvestment.
3-7 (2) Real Estate Appraisal (or equivalent) shall
3-8 include but not be limited to the central purposes and functions of
3-9 an appraisal, social and economic determinant of value, appraisal
3-10 case studies, cost, market data and income approaches to value
3-11 estimates, final correlations, and reporting.
3-12 (3) Real Estate Law (or equivalent) shall include but
3-13 not be limited to legal concepts of real estate, land description,
3-14 real property rights and estates in land, contracts, conveyances,
3-15 encumbrances, foreclosures, recording procedures, and evidence of
3-16 titles.
3-17 (4) Real Estate Finance (or equivalent) shall include
3-18 but not be limited to monetary systems, primary and secondary money
3-19 markets, sources of mortgage loans, federal government programs,
3-20 loan applications, processes and procedures, closing costs,
3-21 alternative financial instruments, equal credit opportunity acts,
3-22 community reinvestment act, and state housing agency.
3-23 (5) Real Estate Marketing (or equivalent) shall
3-24 include but not be limited to real estate professionalism and
3-25 ethics, characteristics of successful salespersons, time
3-26 management, psychology of marketing, listing procedures,
4-1 advertising, negotiating and closing, financing, and the Deceptive
4-2 Trade Practices-Consumer Protection Act, as amended, Section 17.01
4-3 et seq., Business & Commerce Code.
4-4 (6) Real Estate Mathematics (or equivalent) shall
4-5 include but not be limited to basic arithmetic skills and review of
4-6 mathematical logic, percentages, interest, time-valued money,
4-7 depreciation, amortization, proration, and estimation of closing
4-8 statements.
4-9 (7) Real Estate Brokerage (or equivalent) shall
4-10 include but not be limited to law of agency, planning and
4-11 organization, operational policies and procedures, recruiting,
4-12 selection and training of personnel, records and control, and real
4-13 estate firm analysis and expansion criteria.
4-14 (8) Property Management (or equivalent) shall include
4-15 but not be limited to role of property manager, landlord policies,
4-16 operational guidelines, leases, lease negotiations, tenant
4-17 relations, maintenance, reports, habitability laws, and the Fair
4-18 Housing Act.
4-19 (9) Real Estate Investments (or equivalent) shall
4-20 include but not be limited to real estate investment
4-21 characteristics, techniques of investment analysis, time-valued
4-22 money, discounted and nondiscounted investment criteria, leverage,
4-23 tax shelters depreciation, and applications to property tax.
4-24 (10) Law of Agency (or equivalent) shall include but
4-25 not be limited to the principal-agent and master-servant
4-26 relationships, the authority of an agent, the termination of an
5-1 agent's authority, the fiduciary and other duties of an agent,
5-2 employment law, deceptive trade practices, listing or buying
5-3 representation procedures, and the disclosure of agency.
5-4 (11) Law of Contracts (or equivalent) shall include
5-5 the elements of a contract, offer and acceptance, the statute of
5-6 frauds, specific performance and remedies for breach, unauthorized
5-7 practice of law, commission rules relating to use of adopted forms,
5-8 and owner disclosure requirements.
5-9 (b) The commission by rule may:
5-10 (1) prescribe the content of core real estate courses
5-11 listed in Subsection (a) of this section; and
5-12 (2) establish the title and content of additional core
5-13 real estate courses.
5-14 (e) Each applicant for a salesperson license shall furnish
5-15 the commission satisfactory evidence of having completed 12
5-16 semester hours, or equivalent classroom hours, of postsecondary
5-17 education, eight [six] hours of which must be completed in core
5-18 real estate courses, of which a minimum of two hours must be
5-19 completed in Principles of Real Estate as described in Subsection
5-20 (a)(1) of this section, a minimum of two hours must be completed in
5-21 Law of Agency as described in Subsection (a)(10) of this section,
5-22 and a minimum of two hours must be completed in Law of Contracts as
5-23 described in Subsection (a)(11) of this section. The remaining
5-24 four [six] hours must [shall] be completed in core real estate
5-25 courses or related courses. As a condition for the first renewal
5-26 of a salesperson license, the applicant shall furnish the
6-1 commission satisfactory evidence of having completed a minimum of
6-2 14 semester hours, or equivalent classroom hours, 10 [eight] hours
6-3 of which must be completed in core real estate courses. As a
6-4 condition for the second renewal of a salesperson license, the
6-5 applicant shall furnish the commission satisfactory evidence of
6-6 having completed a minimum of 16 semester hours, or equivalent
6-7 classroom hours, 12 [10] hours of which must be completed in core
6-8 real estate courses. As a condition for the third renewal of a
6-9 salesperson license, the applicant shall furnish the commission
6-10 satisfactory evidence of having completed a minimum of 18 semester
6-11 hours, or equivalent classroom hours, 14 [12] hours of which must
6-12 be completed in core real estate courses.
6-13 SECTION 3. Subsections (c) and (f), Section 8, The Real
6-14 Estate License Act (Article 6573a, Vernon's Texas Civil Statutes),
6-15 are amended to read as follows:
6-16 (c) If the commission determines at any time that [on
6-17 December 31 of any year] the balance remaining in the real estate
6-18 recovery trust account [fund] is less than $1 million, each real
6-19 estate broker and each real estate salesperson, on the next renewal
6-20 of the license, shall pay, in addition to the license renewal fee,
6-21 a fee of $10, which shall be deposited in the real estate recovery
6-22 trust account [fund], or a pro rata share of the amount necessary
6-23 to bring the trust account [fund] to $1.7 million, whichever is
6-24 less. If on December 31 of any year the balance remaining in the
6-25 real estate recovery trust account [fund] is more than $3.5 million
6-26 or more than the total amount of claims paid from the trust account
7-1 [fund] during the previous four fiscal years, whichever is greater,
7-2 the amount of money in excess of the greater amount shall be
7-3 transferred to the general revenue fund. Notwithstanding any other
7-4 provision of this Act, to ensure that sufficient money is available
7-5 to pay anticipated claims on the trust account, the commission may
7-6 provide by rule for the collection of assessments at times and
7-7 under conditions other than those specified by this Act.
7-8 (f) The court shall proceed on the application forthwith.
7-9 On the hearing on the application, the aggrieved person is required
7-10 to show that:
7-11 (1) the judgment is based on facts allowing recovery
7-12 under Subsection (a) of this section;
7-13 (2) the person is not a spouse of the debtor, or the
7-14 personal representative of the spouse; and the person is not a
7-15 registrant under Section 9A of this Act or a real estate broker or
7-16 salesperson, as defined by this Act, who is seeking to recover a
7-17 real estate commission or any compensation in the transaction or
7-18 transactions for which the application for payment is made;
7-19 (3) [the person has obtained a judgment under
7-20 Subsection (e) of this section that is not subject to a stay or
7-21 discharge in bankruptcy, stating the amount of the judgment and the
7-22 amount owing on the judgment at the date of the application;]
7-23 [(4)] based on the best available information, the
7-24 judgment debtor lacks sufficient attachable assets in this state or
7-25 any other state to satisfy the judgment; and
7-26 (4) [(5)] the amount that may be realized from the
8-1 sale of real or personal property or other assets liable to be sold
8-2 or applied in satisfaction of the judgment and the balance
8-3 remaining due on the judgment after application of the amount that
8-4 may be realized.
8-5 SECTION 4. Section 11, The Real Estate License Act (Article
8-6 6573a, Vernon's Texas Civil Statutes), is amended to read as
8-7 follows:
8-8 Sec. 11. The commission shall charge and collect the
8-9 following fees:
8-10 (1) a fee not to exceed $100 for the filing of an
8-11 original application for a real estate broker license;
8-12 (2) a fee not to exceed $100 for annual renewal of a
8-13 real estate broker license;
8-14 (3) a fee not to exceed $50 for the filing of an
8-15 original application for a real estate salesperson license;
8-16 (4) a fee not to exceed $50 for annual renewal of a
8-17 real estate salesperson license;
8-18 (5) a fee not to exceed $50 for an application for a
8-19 license examination;
8-20 (6) a fee not to exceed $20 for filing a request for a
8-21 license for each additional office or place of business;
8-22 (7) a fee not to exceed $20 for filing a request for a
8-23 license or certificate of registration for a change of place of
8-24 business, change of name, return to active status, or change of
8-25 sponsoring broker;
8-26 (8) a fee not to exceed $20 for filing a request to
9-1 replace a license or certificate of registration lost or destroyed;
9-2 (9) a fee not to exceed $400 for filing an application
9-3 for approval of an education program under Section 7(f) of this
9-4 Act;
9-5 (10) a fee not to exceed $200 a year for operation of
9-6 an education program under Section 7(f) of this Act;
9-7 (11) a fee of $20 [$15] for transcript evaluation;
9-8 (12) a fee not to exceed $10 for preparing a license
9-9 or registration history;
9-10 (13) a fee not to exceed $50 for the filing of an
9-11 application for a moral character determination;
9-12 (14) an annual fee of $20 from each real estate broker
9-13 and each registrant under Section 9A of this Act to be transmitted
9-14 to Texas A&M University for the Texas Real Estate Research Center
9-15 as provided by Section 5(m) of this Act;
9-16 (15) an annual fee of $17.50 from each real estate
9-17 salesperson to be transmitted to Texas A&M University for the Texas
9-18 Real Estate Research Center as provided by Section 5(m) of this
9-19 Act;
9-20 (16) an annual fee of $80 from each registrant under
9-21 Section 9A of this Act; and
9-22 (17) any fee authorized under Section 8 of this Act
9-23 for the real estate recovery trust account [fund].
9-24 SECTION 5. Subsection (a), Section 15, The Real Estate
9-25 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
9-26 amended to read as follows:
10-1 (a) The commission may, on its own motion, and shall, on the
10-2 signed complaint in writing of any person [a consumer or service
10-3 recipient], provided the complaint, or the complaint together with
10-4 evidence, documentary or otherwise, presented in connection with
10-5 the complaint, provides reasonable cause, investigate the actions
10-6 and records of a real estate broker or real estate salesperson.
10-7 The commission may suspend or revoke a license issued under the
10-8 provisions of this Act or take other disciplinary action authorized
10-9 by this Act at any time when it has been determined that:
10-10 (1) the licensee has entered a plea of guilty or nolo
10-11 contendere to, or been found guilty of, or been convicted of, a
10-12 felony, in which fraud is an essential element, and the time for
10-13 appeal has elapsed or the judgment or conviction has been affirmed
10-14 on appeal, irrespective of an order granting probation following
10-15 such conviction, suspending the imposition of sentence;
10-16 (2) the licensee has procured, or attempted to
10-17 procure, a real estate license, for the licensee or a salesperson,
10-18 by fraud, misrepresentation or deceit, or by making a material
10-19 misstatement of fact in an application for a real estate license;
10-20 (3) the licensee, when selling, buying, trading, or
10-21 renting real property in the licensee's own name, engaged in
10-22 misrepresentation or dishonest or fraudulent action;
10-23 (4) the licensee has failed within a reasonable time
10-24 to make good a check issued to the commission after the commission
10-25 has mailed a request for payment by certified mail to the
10-26 licensee's last known business address as reflected by the
11-1 commission's records;
11-2 (5) the licensee has disregarded or violated a
11-3 provision of this Act;
11-4 (6) the licensee, while performing an act constituting
11-5 an act of a broker or salesperson, as defined by this Act, has been
11-6 guilty of:
11-7 (A) making a material misrepresentation, or
11-8 failing to disclose to a potential purchaser any latent structural
11-9 defect or any other defect known to the broker or salesperson.
11-10 Latent structural defects and other defects do not refer to trivial
11-11 or insignificant defects but refer to those defects that would be a
11-12 significant factor to a reasonable and prudent purchaser in making
11-13 a decision to purchase;
11-14 (B) making a false promise of a character likely
11-15 to influence, persuade, or induce any person to enter into a
11-16 contract or agreement when the licensee could not or did not intend
11-17 to keep such promise;
11-18 (C) pursuing a continued and flagrant course of
11-19 misrepresentation or making of false promises through agents,
11-20 salespersons, advertising, or otherwise;
11-21 (D) failing to make clear, to all parties to a
11-22 transaction, which party the licensee is acting for, or receiving
11-23 compensation from more than one party except with the full
11-24 knowledge and consent of all parties;
11-25 (E) failing within a reasonable time properly to
11-26 account for or remit money coming into the licensee's possession
12-1 which belongs to others, or commingling money belonging to others
12-2 with the licensee's own funds;
12-3 (F) paying a commission or fees to or dividing a
12-4 commission or fees with anyone not licensed as a real estate broker
12-5 or salesperson in this state or in any other state for compensation
12-6 for services as a real estate agent;
12-7 (G) failing to specify a definite termination
12-8 date that is not subject to prior notice in a contract, other than
12-9 a contract to perform property management services, in which the
12-10 licensee agrees to perform services for which a license is required
12-11 under this Act;
12-12 (H) accepting, receiving, or charging an
12-13 undisclosed commission, rebate, or direct profit on expenditures
12-14 made for a principal;
12-15 (I) soliciting, selling, or offering for sale
12-16 real property under a scheme or program that constitutes a lottery
12-17 or deceptive practice;
12-18 (J) acting in the dual capacity of broker and
12-19 undisclosed principal in a transaction;
12-20 (K) guaranteeing, authorizing, or permitting a
12-21 person to guarantee that future profits will result from a resale
12-22 of real property;
12-23 (L) placing a sign on real property offering it
12-24 for sale, lease, or rent without the written consent of the owner
12-25 or the owner's authorized agent;
12-26 (M) inducing or attempting to induce a party to
13-1 a contract of sale or lease to break the contract for the purpose
13-2 of substituting in lieu thereof a new contract;
13-3 (N) negotiating or attempting to negotiate the
13-4 sale, exchange, lease, or rental of real property with an owner,
13-5 lessor, buyer, or tenant, knowing that the owner, lessor, buyer, or
13-6 tenant had a written outstanding contract, granting exclusive
13-7 agency in connection with the transaction to another real estate
13-8 broker;
13-9 (O) offering real property for sale or for lease
13-10 without the knowledge and consent of the owner or the owner's
13-11 authorized agent, or on terms other than those authorized by the
13-12 owner or the owner's authorized agent;
13-13 (P) publishing, or causing to be published, an
13-14 advertisement including, but not limited to, advertising by
13-15 newspaper, radio, television, Internet, or other display which is
13-16 misleading, or which is likely to deceive the public, or which in
13-17 any manner tends to create a misleading impression, or which fails
13-18 to identify the person causing the advertisement to be published as
13-19 a licensed real estate broker or agent;
13-20 (Q) having knowingly withheld from or inserted
13-21 in a statement of account or invoice, a statement that made it
13-22 inaccurate in a material particular;
13-23 (R) publishing or circulating an unjustified or
13-24 unwarranted threat of legal proceedings, or other action;
13-25 (S) establishing an association, by employment
13-26 or otherwise, with an unlicensed person who is expected or required
14-1 to act as a real estate licensee, or aiding or abetting or
14-2 conspiring with a person to circumvent the requirements of this
14-3 Act;
14-4 (T) failing or refusing on demand to furnish
14-5 copies of a document pertaining to a transaction dealing with real
14-6 estate to a person whose signature is affixed to the document;
14-7 (U) failing to advise a purchaser in writing
14-8 before the closing of a transaction that the purchaser should
14-9 either have the abstract covering the real estate which is the
14-10 subject of the contract examined by an attorney of the purchaser's
14-11 own selection, or be furnished with or obtain a policy of title
14-12 insurance;
14-13 (V) conduct which constitutes dishonest
14-14 dealings, bad faith, or untrustworthiness;
14-15 (W) acting negligently or incompetently in
14-16 performing an act for which a person is required to hold a real
14-17 estate license;
14-18 (X) disregarding or violating a provision of
14-19 this Act;
14-20 (Y) failing within a reasonable time to deposit
14-21 money received as escrow agent in a real estate transaction, either
14-22 in trust with a title company authorized to do business in this
14-23 state, or in a custodial, trust, or escrow account maintained for
14-24 that purpose in a banking institution authorized to do business in
14-25 this state;
14-26 (Z) disbursing money deposited in a custodial,
15-1 trust, or escrow account, as provided in Subsection (Y) before the
15-2 transaction concerned has been consummated or finally otherwise
15-3 terminated; or
15-4 (AA) discriminating against an owner, potential
15-5 purchaser, lessor, or potential lessee on the basis of race, color,
15-6 religion, sex, national origin, or ancestry, including directing
15-7 prospective home buyers or lessees interested in equivalent
15-8 properties to different areas according to the race, color,
15-9 religion, sex, national origin, or ancestry of the potential owner
15-10 or lessee;
15-11 (7) the licensee has failed or refused on demand to
15-12 produce a document, book, or record in the licensee's possession
15-13 concerning a real estate transaction conducted by the licensee for
15-14 inspection by the commission or its authorized personnel or
15-15 representative;
15-16 (8) the licensee has failed within a reasonable time
15-17 to provide information requested by the commission as a result of a
15-18 formal or informal complaint to the commission which would indicate
15-19 a violation of this Act; or
15-20 (9) the licensee has failed without just cause to
15-21 surrender to the rightful owner, on demand, a document or
15-22 instrument coming into the licensee's possession.
15-23 SECTION 6. Subsection (e), Section 15B, The Real Estate
15-24 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
15-25 amended to read as follows:
15-26 (e) The commission may authorize a commission employee to
16-1 file a signed written complaint against a licensee and to conduct
16-2 an investigation if:
16-3 (1) a judgment against the licensee has been paid from
16-4 a recovery fund established under this Act;
16-5 (2) the licensee is convicted of a criminal offense
16-6 that may constitute grounds for the suspension or revocation of the
16-7 licensee's license; [or]
16-8 (3) the licensee fails to make good a check issued to
16-9 the commission;
16-10 (4) the licensee fails to comply with a commission
16-11 rule adopted under Section 7A(g) of this Act; or
16-12 (5) the licensee fails to provide, within a reasonable
16-13 time, information requested by the commission in connection with an
16-14 application for the renewal of a license.
16-15 SECTION 7. Subsections (a), (b), (d), (h), (j), (m), and
16-16 (o), Section 19A, The Real Estate License Act (Article 6573a,
16-17 Vernon's Texas Civil Statutes), are amended to read as follows:
16-18 (a) If a person [licensed under this Act] violates this Act
16-19 or a rule or order adopted by the commission under this Act, the
16-20 commission may assess an administrative penalty against the person
16-21 as provided by this section.
16-22 (b) The penalty for each violation shall be set in an amount
16-23 not to exceed $1,000 a day. Each day a violation continues or
16-24 occurs may be considered a separate violation for the purpose of
16-25 the assessment of a penalty.
16-26 (d) If, after investigation of a possible violation and the
17-1 facts surrounding that possible violation, the administrator
17-2 determines that a violation has occurred, the administrator may
17-3 issue a violation report stating the facts on which the conclusion
17-4 that a violation occurred is based, recommending that an
17-5 administrative penalty under this section be imposed on the person
17-6 charged, and recommending the amount of that proposed penalty. The
17-7 administrator shall base the recommended amount of the proposed
17-8 penalty on the seriousness of the violation determined by the
17-9 consideration of the factors set forth in Subsection (c) of this
17-10 section. The commission may authorize the administrator to
17-11 delegate to another employee of the commission the administrator's
17-12 authority to act under this section.
17-13 (h) If the person charged requests a hearing or fails to
17-14 timely respond to the notice, the administrator shall set a hearing
17-15 and give notice of the hearing. The hearing shall be held by a
17-16 hearing examiner designated by the administrator. The hearing
17-17 examiner shall make findings of fact and conclusions of law and
17-18 promptly issue to the commission a proposal for decision as to the
17-19 occurrence of the violation, including a recommendation as to the
17-20 amount of the proposed penalty if a penalty is warranted. Based on
17-21 the findings of fact, conclusions of law, and recommendations of
17-22 the hearing examiner, the commission by order may find a violation
17-23 has occurred and may assess a penalty or may find that no violation
17-24 has occurred. All proceedings under this subsection are subject to
17-25 Chapter 2001, Government Code. The commission may authorize the
17-26 hearing examiner to conduct the hearing and to enter a final
18-1 decision [the Administrative Procedure and Texas Register Act
18-2 (Article 6252-13a, Vernon's Texas Civil Statutes)].
18-3 (j) Within the 30-day period immediately following the date
18-4 on which the order becomes final as provided by Chapter 2001,
18-5 Government Code [Subsection (c), Section 16, Administrative
18-6 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
18-7 Civil Statutes)], the person charged with the penalty shall:
18-8 (1) pay the penalty in full; or
18-9 (2) if the person files a petition for judicial review
18-10 contesting either the amount of the penalty or the fact of the
18-11 violation or contesting both the fact of the violation and the
18-12 amount of the penalty:
18-13 (A) forward the amount to the administrator for
18-14 placement in an escrow account; or
18-15 (B) in lieu of payment into escrow, post with
18-16 the administrator a supersedeas bond in a form approved by the
18-17 administrator for the amount of the penalty, the bond to be
18-18 effective until all judicial review of the order or decision is
18-19 final.
18-20 (m) Judicial review of the order or decision of the
18-21 commission assessing the penalty shall be under the substantial
18-22 evidence rule and shall be instituted by filing a petition with a
18-23 district court in Travis County, as provided by Chapter 2001,
18-24 Government Code [Section 19, Administrative Procedure and Texas
18-25 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)].
18-26 (o) A penalty collected under this section for a violation
19-1 by a person licensed as a real estate broker or salesperson shall
19-2 be deposited in the real estate recovery trust account [fund]. A
19-3 penalty collected under this section for a violation by a person
19-4 licensed or registered as a real estate inspector shall be
19-5 deposited in the real estate inspection recovery trust fund. A
19-6 penalty collected under this section for a violation by a person
19-7 who is not licensed under this Act shall be deposited either in the
19-8 real estate recovery trust account or in the real estate inspection
19-9 recovery trust fund.
19-10 SECTION 8. Subdivision (1), Subsection (h), Section 23, The
19-11 Real Estate License Act (Article 6573a, Vernon's Texas Civil
19-12 Statutes), is amended to read as follows:
19-13 (1) The commission shall charge and collect reasonable
19-14 and necessary fees to recover the cost of administering this
19-15 section as follows:
19-16 (A) a fee not to exceed $75 for the filing of an
19-17 original application for a license as an apprentice inspector;
19-18 (B) a fee not to exceed $125 for the filing of
19-19 an original application for a license as a real estate inspector;
19-20 (C) a fee not to exceed $150 for the filing of
19-21 an original application for a license as a professional inspector;
19-22 (D) a fee not to exceed $125 for the annual
19-23 license renewal of an apprentice inspector;
19-24 (E) a fee not to exceed $175 for the annual
19-25 license renewal of a real estate inspector;
19-26 (F) a fee not to exceed $200 for the annual
20-1 license renewal of a professional inspector;
20-2 (G) a fee not to exceed $100 for taking a
20-3 license examination; [and]
20-4 (H) a fee not to exceed $20 for a request for a
20-5 change of place of business or to replace a lost or destroyed
20-6 license; and
20-7 (I) a fee not to exceed $20 for filing a request
20-8 for a change of name on a license, return to active status, or
20-9 change in sponsoring professional inspector.
20-10 SECTION 9. Subdivision (1), Subsection (i), Section 23, The
20-11 Real Estate License Act (Article 6573a, Vernon's Texas Civil
20-12 Statutes), is amended to read as follows:
20-13 (1) The commission shall prescribe the licensing
20-14 examinations, which shall be prepared by or contracted for by the
20-15 commission. A licensing examination shall evaluate competency in
20-16 the subject matter of all required core real estate inspection
20-17 courses. The licensing examination shall be offered not less often
20-18 than once every two months in Austin. If a license applicant fails
20-19 the examination, the applicant may apply for reexamination by
20-20 filing a request with the commission and paying the examination
20-21 fee. Each license applicant must satisfy the examination
20-22 requirement not later than six months after the date on which the
20-23 license application is filed. A license applicant who fails to
20-24 satisfy the examination requirement within six months after the
20-25 date on which the license application is filed must submit a new
20-26 license application with the commission and pay the examination fee
21-1 to be eligible for examination. If a license applicant fails the
21-2 examination four [three] consecutive times in connection with the
21-3 same application, the applicant may not apply for reexamination or
21-4 submit a new license application with the commission for six months
21-5 from the date the applicant [he] failed the last examination.
21-6 SECTION 10. Subsection (k), Section 23, The Real Estate
21-7 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
21-8 amended to read as follows:
21-9 (k) Continuing education programs. The commission shall
21-10 recognize, prepare, or administer continuing education programs for
21-11 inspectors. Participation in the programs is mandatory. A real
21-12 estate inspector must submit satisfactory evidence to the
21-13 commission of successful completion of at least eight [four]
21-14 classroom hours of core real estate inspection courses annually
21-15 before a licensed renewal is issued. A professional inspector must
21-16 submit satisfactory evidence to the commission of successful
21-17 completion of at least 16 [eight] classroom hours of core [related]
21-18 real estate inspection courses annually before a license renewal is
21-19 issued.
21-20 SECTION 11. Subdivisions (3), (7), and (15), Subsection (o),
21-21 Section 23, The Real Estate License Act (Article 6573a, Vernon's
21-22 Texas Civil Statutes), are amended to read as follows:
21-23 (3) If at any time [on December 31 of any year] the
21-24 balance remaining in the real estate inspection recovery trust fund
21-25 is less than $300,000, each inspector, on the next renewal of the
21-26 person's license, shall pay, in addition to the license renewal
22-1 fee, a fee of $75, or a pro rata share of the amount necessary to
22-2 bring the fund to $450,000, whichever is less, which shall be
22-3 deposited in the real estate inspection recovery trust fund.
22-4 Notwithstanding any other provision of this Act, to ensure that
22-5 sufficient money is available to pay anticipated claims on the
22-6 fund, the commission may provide by rule for the collection of
22-7 assessments at times and under conditions other than those
22-8 specified by this Act.
22-9 (7) The court shall proceed on the application
22-10 forthwith. On the hearing on the application, the aggrieved person
22-11 is required to show:
22-12 (A) that the judgment is based on facts allowing
22-13 recovery under Subdivision (1) of this subsection;
22-14 (B) that the person is not a spouse of the
22-15 debtor or the personal representative of the spouse and the person
22-16 is not an inspector, as defined by this section;
22-17 (C) [that the person has obtained a judgment
22-18 under Subdivision (6) of this subsection that is not subject to a
22-19 stay or discharge in bankruptcy, stating the amount of the judgment
22-20 and the amount owing on the judgment at the date of the
22-21 application;]
22-22 [(D)] that based on the best information
22-23 available, the judgment debtor lacks sufficient attachable assets
22-24 in this state or any other state to satisfy the judgment; and
22-25 (D) [(E)] the amount that may be realized from
22-26 the sale of real or personal property or other assets liable to be
23-1 sold or applied in satisfaction of the judgment and the balance
23-2 remaining due on the judgment after application of the amount that
23-3 may be realized.
23-4 (15) Notwithstanding any other provision, payments
23-5 from the real estate inspection recovery trust fund are subject to
23-6 the following conditions and limitations:
23-7 (A) payments may be made only pursuant to an
23-8 order of a court of competent jurisdiction, as provided by
23-9 Subdivision (6) of this subsection, and in the manner prescribed by
23-10 this subsection;
23-11 (B) payments for claims, including attorney
23-12 fees, interest, and court costs, arising out of the same
23-13 transaction shall be limited in the aggregate to $10,000 [$7,500]
23-14 regardless of the number of claimants; and
23-15 (C) payments for claims based on judgments
23-16 against a licensed inspector may not exceed in the aggregate
23-17 $30,000 [$15,000] until the fund has been reimbursed by the
23-18 licensee for all amounts paid.
23-19 SECTION 12. (a) Except as otherwise provided by this
23-20 section, this Act takes effect September 1, 1999.
23-21 (b) Subsection (e), Section 7, The Real Estate License Act
23-22 (Article 6573a, Vernon's Texas Civil Statutes), as amended by this
23-23 Act, applies only to an application filed on or after January 1,
23-24 2000. An application filed before January 1, 2000, is governed by
23-25 the law existing immediately before this Act takes effect.
23-26 (c) Subsection (k), Section 23, The Real Estate License Act
24-1 (Article 6573a, Vernon's Texas Civil Statutes), as amended by this
24-2 Act, applies only to continuing education requirements for the
24-3 renewal of an inspector license on or after December 31, 1999.
24-4 (d) Subdivision (15), Subsection (o), Section 23, The Real
24-5 Estate License Act (Article 6573a, Vernon's Texas Civil Statutes),
24-6 as amended by this Act, applies only to a cause of action that
24-7 accrues on or after the effective date of this Act. A cause of
24-8 action that accrues before the effective date of this Act is
24-9 governed by the law in effect on the date the cause of action
24-10 accrued, and that law is continued in effect for that purpose.
24-11 SECTION 13. Section 11, The Real Estate License Act (Article
24-12 6573a, Vernon's Texas Civil Statutes), as amended by this Act,
24-13 applies only to a fee for a transcript that is evaluated on or
24-14 after the effective date of this Act. A fee for a transcript
24-15 evaluated before the effective date of this Act is governed by the
24-16 law in effect on the date the transcript was evaluated, and that
24-17 law is continued in effect for that purpose.
24-18 SECTION 14. Subsection (a), Section 19A, The Real Estate
24-19 License Act (Article 6573a, Vernon's Texas Civil Statutes), as
24-20 amended by this Act, applies only to a violation that occurs on or
24-21 after the effective date of this Act. A violation that occurs
24-22 before the effective date of this Act is governed by the law in
24-23 effect on the date the violation occurred, and that law is
24-24 continued in effect for that purpose.