76R9702 JMM-F
By Wentworth S.B. No. 1016
Substitute the following for S.B. No. 1016:
By Haggerty C.S.S.B. No. 1016
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of the sale and inspection of real
1-3 estate.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 6(a), The Real Estate License Act
1-6 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
1-7 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. Sections 7(a), (b), and (e), The Real Estate
1-22 License Act (Article 6573a, Vernon's Texas Civil Statutes), are
1-23 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. The
2-16 commission by rule may limit the number of times an applicant may
2-17 take all or part of the examination and may set a reasonable
2-18 waiting period before a person who fails an examination may file
2-19 another application. The rules adopted by the commission may
2-20 permit a person to file another application without regard to the
2-21 waiting period if the person has completed additional courses of
2-22 study specified by the commission. Courses of study required for a
2-23 license may include but are not limited to the following, which
2-24 shall be considered core real estate courses for all purposes of
2-25 this Act:
2-26 (1) Principles of Real Estate (or equivalent) shall
2-27 include but not be limited to an overview of licensing as a real
3-1 estate broker and salesperson, ethics of practice, titles to and
3-2 conveyancing of real estate, legal descriptions, deeds,
3-3 encumbrances and liens, distinctions between personal and real
3-4 property, appraisal, finance and regulations, closing procedures,
3-5 real estate mathematics, and at least three classroom hours of
3-6 instruction on federal, state, and local laws relating to housing
3-7 discrimination, housing credit discrimination, and community
3-8 reinvestment.
3-9 (2) Real Estate Appraisal (or equivalent) shall
3-10 include but not be limited to the central purposes and functions of
3-11 an appraisal, social and economic determinant of value, appraisal
3-12 case studies, cost, market data and income approaches to value
3-13 estimates, final correlations, and reporting.
3-14 (3) Real Estate Law (or equivalent) shall include but
3-15 not be limited to legal concepts of real estate, land description,
3-16 real property rights and estates in land, contracts, conveyances,
3-17 encumbrances, foreclosures, recording procedures, and evidence of
3-18 titles.
3-19 (4) Real Estate Finance (or equivalent) shall include
3-20 but not be limited to monetary systems, primary and secondary money
3-21 markets, sources of mortgage loans, federal government programs,
3-22 loan applications, processes and procedures, closing costs,
3-23 alternative financial instruments, equal credit opportunity acts,
3-24 community reinvestment act, and state housing agency.
3-25 (5) Real Estate Marketing (or equivalent) shall
3-26 include but not be limited to real estate professionalism and
3-27 ethics, characteristics of successful salespersons, time
4-1 management, psychology of marketing, listing procedures,
4-2 advertising, negotiating and closing, financing, and the Deceptive
4-3 Trade Practices-Consumer Protection Act, as amended, Section 17.01
4-4 et seq., Business & Commerce Code.
4-5 (6) Real Estate Mathematics (or equivalent) shall
4-6 include but not be limited to basic arithmetic skills and review of
4-7 mathematical logic, percentages, interest, time-valued money,
4-8 depreciation, amortization, proration, and estimation of closing
4-9 statements.
4-10 (7) Real Estate Brokerage (or equivalent) shall
4-11 include but not be limited to law of agency, planning and
4-12 organization, operational policies and procedures, recruiting,
4-13 selection and training of personnel, records and control, and real
4-14 estate firm analysis and expansion criteria.
4-15 (8) Property Management (or equivalent) shall include
4-16 but not be limited to role of property manager, landlord policies,
4-17 operational guidelines, leases, lease negotiations, tenant
4-18 relations, maintenance, reports, habitability laws, and the Fair
4-19 Housing Act.
4-20 (9) Real Estate Investments (or equivalent) shall
4-21 include but not be limited to real estate investment
4-22 characteristics, techniques of investment analysis, time-valued
4-23 money, discounted and nondiscounted investment criteria, leverage,
4-24 tax shelters depreciation, and applications to property tax.
4-25 (10) Law of Agency (or equivalent) shall include but
4-26 not be limited to the principal-agent and master-servant
4-27 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
5-27 commission satisfactory evidence of having completed a minimum of
6-1 14 semester hours, or equivalent classroom hours, 10 [eight] hours
6-2 of which must be completed in core real estate courses. As a
6-3 condition for the second renewal of a salesperson license, the
6-4 applicant shall furnish the commission satisfactory evidence of
6-5 having completed a minimum of 16 semester hours, or equivalent
6-6 classroom hours, 12 [10] hours of which must be completed in core
6-7 real estate courses. As a condition for the third renewal of a
6-8 salesperson license, the applicant shall furnish the commission
6-9 satisfactory evidence of having completed a minimum of 18 semester
6-10 hours, or equivalent classroom hours, 14 [12] hours of which must
6-11 be completed in core real estate courses.
6-12 SECTION 3. Sections 8(c) and (f), The Real Estate License
6-13 Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
6-14 read as follows:
6-15 (c) On determination by the commission at any time that [If
6-16 on December 31 of any year] the balance remaining in the real
6-17 estate recovery fund is less than $1 million, each real estate
6-18 broker and each real estate salesperson, on the next renewal of the
6-19 license, shall pay, in addition to the license renewal fee, a fee
6-20 of $10, which shall be deposited in the real estate recovery fund,
6-21 or a pro rata share of the amount necessary to bring the fund to
6-22 $1.7 million, whichever is less. If on December 31 of any year the
6-23 balance remaining in the real estate recovery fund is more than
6-24 $3.5 million or more than the total amount of claims paid from the
6-25 fund during the previous four fiscal years, whichever is greater,
6-26 the amount of money in excess of the greater amount shall be
6-27 transferred to the general revenue fund. To ensure the
7-1 availability of a sufficient amount of money to pay anticipated
7-2 claims on the fund, the commission by rule may provide for the
7-3 collection of assessments at different times and under conditions
7-4 other than those specified in this Act.
7-5 (f) The court shall proceed on the application forthwith.
7-6 On the hearing on the application, the aggrieved person is required
7-7 to show that:
7-8 (1) the judgment is based on facts allowing recovery
7-9 under Subsection (a) of this section;
7-10 (2) the person is not a spouse of the debtor, or the
7-11 personal representative of the spouse; and the person is not a
7-12 registrant under Section 9A of this Act or a real estate broker or
7-13 salesperson, as defined by this Act, who is seeking to recover a
7-14 real estate commission or any compensation in the transaction or
7-15 transactions for which the application for payment is made;
7-16 (3) [the person has obtained a judgment under
7-17 Subsection (e) of this section that is not subject to a stay or
7-18 discharge in bankruptcy, stating the amount of the judgment and the
7-19 amount owing on the judgment at the date of the application;]
7-20 [(4)] based on the best available information, the
7-21 judgment debtor lacks sufficient attachable assets in this state or
7-22 any other state to satisfy the judgment; and
7-23 (4) [(5)] the amount that may be realized from the
7-24 sale of real or personal property or other assets liable to be sold
7-25 or applied in satisfaction of the judgment and the balance
7-26 remaining due on the judgment after application of the amount that
7-27 may be realized.
8-1 SECTION 4. Section 11, The Real Estate License Act (Article
8-2 6573a, Vernon's Texas Civil Statutes), is amended to read as
8-3 follows:
8-4 Sec. 11. The commission shall charge and collect the
8-5 following fees:
8-6 (1) a fee not to exceed $100 for the filing of an
8-7 original application for a real estate broker license;
8-8 (2) a fee not to exceed $100 for annual renewal of a
8-9 real estate broker license;
8-10 (3) a fee not to exceed $50 for the filing of an
8-11 original application for a real estate salesperson license;
8-12 (4) a fee not to exceed $50 for annual renewal of a
8-13 real estate salesperson license;
8-14 (5) a fee not to exceed $50 for an application for a
8-15 license examination;
8-16 (6) a fee not to exceed $20 for filing a request for a
8-17 license for each additional office or place of business;
8-18 (7) a fee not to exceed $20 for filing a request for a
8-19 license or certificate of registration for a change of place of
8-20 business, change of name, return to active status, or change of
8-21 sponsoring broker;
8-22 (8) a fee not to exceed $20 for filing a request to
8-23 replace a license or certificate of registration lost or destroyed;
8-24 (9) a fee not to exceed $400 for filing an application
8-25 for approval of an education program under Section 7(f) of this
8-26 Act;
8-27 (10) a fee not to exceed $200 a year for operation of
9-1 an education program under Section 7(f) of this Act;
9-2 (11) a fee of $20 [$15] for transcript evaluation;
9-3 (12) a fee not to exceed $10 for preparing a license
9-4 or registration history;
9-5 (13) a fee not to exceed $50 for the filing of an
9-6 application for a moral character determination;
9-7 (14) an annual fee of $20 from each real estate broker
9-8 and each registrant under Section 9A of this Act to be transmitted
9-9 to Texas A&M University for the Texas Real Estate Research Center
9-10 as provided by Section 5(m) of this Act;
9-11 (15) an annual fee of $17.50 from each real estate
9-12 salesperson to be transmitted to Texas A&M University for the Texas
9-13 Real Estate Research Center as provided by Section 5(m) of this
9-14 Act;
9-15 (16) an annual fee of $80 from each registrant under
9-16 Section 9A of this Act; and
9-17 (17) any fee authorized under Section 8 of this Act
9-18 for the real estate recovery fund.
9-19 SECTION 5. Section 15(a), The Real Estate License Act
9-20 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
9-21 as follows:
9-22 (a) The commission may, on its own motion, and shall, on the
9-23 signed complaint in writing of any person [a consumer or service
9-24 recipient], provided the complaint, or the complaint together with
9-25 evidence, documentary or otherwise, presented in connection with
9-26 the complaint, provides reasonable cause, investigate the actions
9-27 and records of a real estate broker or real estate salesperson.
10-1 The commission may suspend or revoke a license issued under the
10-2 provisions of this Act or take other disciplinary action authorized
10-3 by this Act at any time when it has been determined that:
10-4 (1) the licensee has entered a plea of guilty or nolo
10-5 contendere to, or been found guilty of, or been convicted of, a
10-6 felony, in which fraud is an essential element, and the time for
10-7 appeal has elapsed or the judgment or conviction has been affirmed
10-8 on appeal, irrespective of an order granting probation following
10-9 such conviction, suspending the imposition of sentence;
10-10 (2) the licensee has procured, or attempted to
10-11 procure, a real estate license, for the licensee or a salesperson,
10-12 by fraud, misrepresentation or deceit, or by making a material
10-13 misstatement of fact in an application for a real estate license;
10-14 (3) the licensee, when selling, buying, trading, or
10-15 renting real property in the licensee's own name, engaged in
10-16 misrepresentation or dishonest or fraudulent action;
10-17 (4) the licensee has failed within a reasonable time
10-18 to make good a check issued to the commission after the commission
10-19 has mailed a request for payment by certified mail to the
10-20 licensee's last known business address as reflected by the
10-21 commission's records;
10-22 (5) the licensee has disregarded or violated a
10-23 provision of this Act;
10-24 (6) the licensee, while performing an act constituting
10-25 an act of a broker or salesperson, as defined by this Act, has been
10-26 guilty of:
10-27 (A) making a material misrepresentation, or
11-1 failing to disclose to a potential purchaser any latent structural
11-2 defect or any other defect known to the broker or salesperson.
11-3 Latent structural defects and other defects do not refer to trivial
11-4 or insignificant defects but refer to those defects that would be a
11-5 significant factor to a reasonable and prudent purchaser in making
11-6 a decision to purchase;
11-7 (B) making a false promise of a character likely
11-8 to influence, persuade, or induce any person to enter into a
11-9 contract or agreement when the licensee could not or did not intend
11-10 to keep such promise;
11-11 (C) pursuing a continued and flagrant course of
11-12 misrepresentation or making of false promises through agents,
11-13 salespersons, advertising, or otherwise;
11-14 (D) failing to make clear, to all parties to a
11-15 transaction, which party the licensee is acting for, or receiving
11-16 compensation from more than one party except with the full
11-17 knowledge and consent of all parties;
11-18 (E) failing within a reasonable time properly to
11-19 account for or remit money coming into the licensee's possession
11-20 which belongs to others, or commingling money belonging to others
11-21 with the licensee's own funds;
11-22 (F) paying a commission or fees to or dividing a
11-23 commission or fees with anyone not licensed as a real estate broker
11-24 or salesperson in this state or in any other state for compensation
11-25 for services as a real estate agent;
11-26 (G) failing to specify a definite termination
11-27 date that is not subject to prior notice in a contract, other than
12-1 a contract to perform property management services, in which the
12-2 licensee agrees to perform services for which a license is required
12-3 under this Act;
12-4 (H) accepting, receiving, or charging an
12-5 undisclosed commission, rebate, or direct profit on expenditures
12-6 made for a principal;
12-7 (I) soliciting, selling, or offering for sale
12-8 real property under a scheme or program that constitutes a lottery
12-9 or deceptive practice;
12-10 (J) acting in the dual capacity of broker and
12-11 undisclosed principal in a transaction;
12-12 (K) guaranteeing, authorizing, or permitting a
12-13 person to guarantee that future profits will result from a resale
12-14 of real property;
12-15 (L) placing a sign on real property offering it
12-16 for sale, lease, or rent without the written consent of the owner
12-17 or the owner's authorized agent;
12-18 (M) inducing or attempting to induce a party to
12-19 a contract of sale or lease to break the contract for the purpose
12-20 of substituting in lieu thereof a new contract;
12-21 (N) negotiating or attempting to negotiate the
12-22 sale, exchange, lease, or rental of real property with an owner,
12-23 lessor, buyer, or tenant, knowing that the owner, lessor, buyer, or
12-24 tenant had a written outstanding contract, granting exclusive
12-25 agency in connection with the transaction to another real estate
12-26 broker;
12-27 (O) offering real property for sale or for lease
13-1 without the knowledge and consent of the owner or the owner's
13-2 authorized agent, or on terms other than those authorized by the
13-3 owner or the owner's authorized agent;
13-4 (P) publishing, or causing to be published, an
13-5 advertisement including, but not limited to, advertising by
13-6 newspaper, radio, television, the Internet, or display which is
13-7 misleading, or which is likely to deceive the public, or which in
13-8 any manner tends to create a misleading impression, or which fails
13-9 to identify the person causing the advertisement to be published as
13-10 a licensed real estate broker or agent;
13-11 (Q) having knowingly withheld from or inserted
13-12 in a statement of account or invoice, a statement that made it
13-13 inaccurate in a material particular;
13-14 (R) publishing or circulating an unjustified or
13-15 unwarranted threat of legal proceedings, or other action;
13-16 (S) establishing an association, by employment
13-17 or otherwise, with an unlicensed person who is expected or required
13-18 to act as a real estate licensee, or aiding or abetting or
13-19 conspiring with a person to circumvent the requirements of this
13-20 Act;
13-21 (T) failing or refusing on demand to furnish
13-22 copies of a document pertaining to a transaction dealing with real
13-23 estate to a person whose signature is affixed to the document;
13-24 (U) failing to advise a purchaser in writing
13-25 before the closing of a transaction that the purchaser should
13-26 either have the abstract covering the real estate which is the
13-27 subject of the contract examined by an attorney of the purchaser's
14-1 own selection, or be furnished with or obtain a policy of title
14-2 insurance;
14-3 (V) conduct which constitutes dishonest
14-4 dealings, bad faith, or untrustworthiness;
14-5 (W) acting negligently or incompetently in
14-6 performing an act for which a person is required to hold a real
14-7 estate license;
14-8 (X) disregarding or violating a provision of
14-9 this Act;
14-10 (Y) failing within a reasonable time to deposit
14-11 money received as escrow agent in a real estate transaction, either
14-12 in trust with a title company authorized to do business in this
14-13 state, or in a custodial, trust, or escrow account maintained for
14-14 that purpose in a banking institution authorized to do business in
14-15 this state;
14-16 (Z) disbursing money deposited in a custodial,
14-17 trust, or escrow account, as provided in Subsection (Y) before the
14-18 transaction concerned has been consummated or finally otherwise
14-19 terminated; or
14-20 (AA) discriminating against an owner, potential
14-21 purchaser, lessor, or potential lessee on the basis of race, color,
14-22 religion, sex, national origin, or ancestry, including directing
14-23 prospective home buyers or lessees interested in equivalent
14-24 properties to different areas according to the race, color,
14-25 religion, sex, national origin, or ancestry of the potential owner
14-26 or lessee;
14-27 (7) the licensee has failed or refused on demand to
15-1 produce a document, book, or record in the licensee's possession
15-2 concerning a real estate transaction conducted by the licensee for
15-3 inspection by the commission or its authorized personnel or
15-4 representative;
15-5 (8) the licensee has failed within a reasonable time
15-6 to provide information requested by the commission as a result of a
15-7 formal or informal complaint to the commission which would indicate
15-8 a violation of this Act; or
15-9 (9) the licensee has failed without just cause to
15-10 surrender to the rightful owner, on demand, a document or
15-11 instrument coming into the licensee's possession.
15-12 SECTION 6. Section 15B(e), The Real Estate License Act
15-13 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
15-14 as follows:
15-15 (e) The commission may authorize a commission employee to
15-16 file a signed written complaint against a licensee and to conduct
15-17 an investigation if:
15-18 (1) a judgment against the licensee has been paid from
15-19 a recovery fund established under this Act;
15-20 (2) the licensee is convicted of a criminal offense
15-21 that may constitute grounds for the suspension or revocation of the
15-22 licensee's license; [or]
15-23 (3) the licensee fails to make good a check issued to
15-24 the commission;
15-25 (4) the licensee fails to comply with a commission
15-26 rule adopted under Section 7A(g) of this Act; or
15-27 (5) the licensee fails to provide, within a reasonable
16-1 time, information requested by the commission in connection with an
16-2 application to renew a license.
16-3 SECTION 7. Sections 19A(a), (b), (d), (h), (m), and (o), The
16-4 Real Estate License Act (Article 6573a, Vernon's Texas Civil
16-5 Statutes), are amended to read as follows:
16-6 (a) If a person [licensed under this Act] violates this Act
16-7 or a rule or order adopted by the commission under this Act, the
16-8 commission may assess an administrative penalty against the person
16-9 as provided by this section.
16-10 (b) The penalty for each violation shall be set in an amount
16-11 not to exceed $1,000 a day. Each day a violation continues or
16-12 occurs may be considered a separate violation for purposes of
16-13 penalty assessment.
16-14 (d) If, after investigation of a possible violation and the
16-15 facts surrounding that possible violation, the administrator
16-16 determines that a violation has occurred, the administrator may
16-17 issue a violation report stating the facts on which the conclusion
16-18 that a violation occurred is based, recommending that an
16-19 administrative penalty under this section be imposed on the person
16-20 charged, and recommending the amount of that proposed penalty. The
16-21 administrator shall base the recommended amount of the proposed
16-22 penalty on the seriousness of the violation determined by the
16-23 consideration of the factors set forth in Subsection (c) of this
16-24 section. The commission may authorize the administrator to
16-25 delegate to another commission employee the administrator's
16-26 authority to act under this section.
16-27 (h) If the person charged requests a hearing or fails to
17-1 timely respond to the notice, the administrator shall set a hearing
17-2 and give notice of the hearing. The hearing shall be held by a
17-3 hearing examiner designated by the administrator. The hearing
17-4 examiner shall make findings of fact and conclusions of law and
17-5 promptly issue to the commission a proposal for decision as to the
17-6 occurrence of the violation, including a recommendation as to the
17-7 amount of the proposed penalty if a penalty is warranted. Based on
17-8 the findings of fact, conclusions of law, and recommendations of
17-9 the hearing examiner, the commission by order may find a violation
17-10 has occurred and may assess a penalty or may find that no violation
17-11 has occurred. All proceedings under this subsection are subject to
17-12 Chapter 2001, Government Code [the Administrative Procedure and
17-13 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
17-14 Statutes)]. The commission may authorize the hearing examiner to
17-15 conduct the hearing and enter a final decision.
17-16 (m) Judicial review of the order or decision of the
17-17 commission assessing the penalty shall be under the substantial
17-18 evidence rule and shall be instituted by filing a petition with a
17-19 district court in Travis County, as provided by Chapter 2001,
17-20 Government Code [Section 19, Administrative Procedure and Texas
17-21 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)].
17-22 (o) A penalty collected under this section for a violation
17-23 by a person licensed as a real estate broker or salesperson shall
17-24 be deposited in the real estate recovery fund. A penalty collected
17-25 under this section for a violation by a person licensed or
17-26 registered as a real estate inspector shall be deposited in the
17-27 real estate inspection recovery fund. A penalty collected under
18-1 this section for a violation by a person who is not licensed under
18-2 this Act shall be deposited in the real estate recovery fund or the
18-3 real estate inspection recovery fund.
18-4 SECTION 8. Section 23(h)(1), The Real Estate License Act
18-5 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
18-6 as follows:
18-7 (1) The commission shall charge and collect reasonable
18-8 and necessary fees to recover the cost of administering this
18-9 section as follows:
18-10 (A) a fee not to exceed $75 for the filing of an
18-11 original application for a license as an apprentice inspector;
18-12 (B) a fee not to exceed $125 for the filing of
18-13 an original application for a license as a real estate inspector;
18-14 (C) a fee not to exceed $150 for the filing of
18-15 an original application for a license as a professional inspector;
18-16 (D) a fee not to exceed $125 for the annual
18-17 license renewal of an apprentice inspector;
18-18 (E) a fee not to exceed $175 for the annual
18-19 license renewal of a real estate inspector;
18-20 (F) a fee not to exceed $200 for the annual
18-21 license renewal of a professional inspector;
18-22 (G) a fee not to exceed $100 for taking a
18-23 license examination; [and]
18-24 (H) a fee not to exceed $20 for a request for a
18-25 change of place of business or to replace a lost or destroyed
18-26 license; and
18-27 (I) a fee not to exceed $20 for filing a request
19-1 for issuance of a license because of a change of name, return to
19-2 active status, or change in sponsoring professional inspector.
19-3 SECTION 9. Section 23(i)(1), The Real Estate License Act
19-4 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
19-5 as follows:
19-6 (1) The commission shall prescribe the licensing
19-7 examinations, which shall be prepared by or contracted for by the
19-8 commission. A licensing examination shall evaluate competency in
19-9 the subject matter of all required core real estate inspection
19-10 courses. The licensing examination shall be offered not less often
19-11 than once every two months in Austin. If a license applicant fails
19-12 the examination, the applicant may apply for reexamination by
19-13 filing a request with the commission and paying the examination
19-14 fee. Each license applicant must satisfy the examination
19-15 requirement not later than six months after the date on which the
19-16 license application is filed. A license applicant who fails to
19-17 satisfy the examination requirement within six months after the
19-18 date on which the license application is filed must submit a new
19-19 license application with the commission and pay the examination fee
19-20 to be eligible for examination. The commission by rule may limit
19-21 the number of times an applicant may take all or part of the
19-22 examination and may set a reasonable waiting period before a person
19-23 who fails an examination may file another application. The rules
19-24 adopted by the commission may permit a person to file another
19-25 application without regard to the waiting period if the person has
19-26 completed additional courses of study specified by the commission.
19-27 [If a license applicant fails the examination three consecutive
20-1 times in connection with the same application, the applicant may
20-2 not apply for reexamination or submit a new license application
20-3 with the commission for six months from the date he failed the last
20-4 examination.]
20-5 SECTION 10. Section 23(k), The Real Estate License Act
20-6 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
20-7 as follows:
20-8 (k) Continuing education programs. The commission shall
20-9 recognize, prepare, or administer continuing education programs for
20-10 inspectors. Participation in the programs is mandatory. A real
20-11 estate inspector must submit satisfactory evidence to the
20-12 commission of successful completion of at least eight [four]
20-13 classroom hours of core real estate inspection courses annually
20-14 before a license [licensed] renewal is issued. A professional
20-15 inspector must submit satisfactory evidence to the commission of
20-16 successful completion of at least 16 [eight] classroom hours of
20-17 core [related] real estate inspection courses annually before a
20-18 license renewal is issued.
20-19 SECTION 11. Sections 23(o)(3), (7), and (15), The Real
20-20 Estate License Act (Article 6573a, Vernon's Texas Civil Statutes),
20-21 are amended to read as follows:
20-22 (3) If at [on December 31 of] any time [year] the
20-23 balance remaining in the real estate inspection recovery fund is
20-24 less than $300,000, each inspector, on the next renewal of the
20-25 person's license, shall pay, in addition to the license renewal
20-26 fee, a fee of $75, or a pro rata share of the amount necessary to
20-27 bring the fund to $450,000, whichever is less, which shall be
21-1 deposited in the real estate inspection recovery fund. To ensure
21-2 the availability of a sufficient amount of money to pay anticipated
21-3 claims on the fund, the commission by rule may provide for the
21-4 collection of assessments at different times and under conditions
21-5 other than those specified by this Act.
21-6 (7) The court shall proceed on the application
21-7 forthwith. On the hearing on the application, the aggrieved person
21-8 is required to show:
21-9 (A) that the judgment is based on facts allowing
21-10 recovery under Subdivision (1) of this subsection;
21-11 (B) that the person is not a spouse of the
21-12 debtor or the personal representative of the spouse and the person
21-13 is not an inspector, as defined by this section;
21-14 (C) [that the person has obtained a judgment
21-15 under Subdivision (6) of this subsection that is not subject to a
21-16 stay or discharge in bankruptcy, stating the amount of the judgment
21-17 and the amount owing on the judgment at the date of the
21-18 application;]
21-19 [(D)] that based on the best information
21-20 available, the judgment debtor lacks sufficient attachable assets
21-21 in this state or any other state to satisfy the judgment; and
21-22 (D) [(E)] the amount that may be realized from
21-23 the sale of real or personal property or other assets liable to be
21-24 sold or applied in satisfaction of the judgment and the balance
21-25 remaining due on the judgment after application of the amount that
21-26 may be realized.
21-27 (15) Notwithstanding any other provision, payments
22-1 from the real estate inspection recovery fund are subject to the
22-2 following conditions and limitations:
22-3 (A) payments may be made only pursuant to an
22-4 order of a court of competent jurisdiction, as provided by
22-5 Subdivision (6) of this subsection, and in the manner prescribed by
22-6 this subsection;
22-7 (B) payments for claims, including attorney
22-8 fees, interest, and court costs, arising out of the same
22-9 transaction shall be limited in the aggregate to $10,000 [$7,500]
22-10 regardless of the number of claimants; and
22-11 (C) payments for claims based on judgments
22-12 against a licensed inspector may not exceed in the aggregate
22-13 $30,000 [$15,000] until the fund has been reimbursed by the
22-14 licensee for all amounts paid.
22-15 SECTION 12. (a) Except as provided by Subsection (b) of
22-16 this section, this Act takes effect September 1, 1999.
22-17 (b) The change in law made by this Act to Section 7(e), The
22-18 Real Estate License Act (Article 6573a, Vernon's Texas Civil
22-19 Statutes), takes effect January 1, 2000, and applies only to an
22-20 application for a real estate salesperson license filed on or after
22-21 that date. An application filed before January 1, 2000, is
22-22 governed by the law in effect on the date the application was
22-23 filed, and the former law is continued in effect for that purpose.
22-24 (c) The change in law made by this Act to Section 23(k), The
22-25 Real Estate License Act (Article 6573a, Vernon's Texas Civil
22-26 Statutes), applies only to the renewal of a real estate inspector
22-27 or professional inspector license that expires on or after December
23-1 31, 1999. A license that expires before that date is governed by
23-2 the law in effect on the date the license expired, and the former
23-3 law is continued in effect for that purpose.
23-4 (d) The change in law made to Sections 8(f) and 23(o)(7),
23-5 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
23-6 Statutes), applies only to a cause of action that arises on or
23-7 after the effective date of this Act. A cause of action that
23-8 arises before the effective date of this Act is governed by the law
23-9 in effect on the date the cause of action arose, and the former law
23-10 is continued in effect for that purpose.
23-11 (e) A change in law made by this Act that relates to a
23-12 disciplinary action or imposition of an administrative penalty
23-13 applies only to a violation of The Real Estate License Act (Article
23-14 6573a, Vernon's Texas Civil Statutes) that occurs on or after the
23-15 effective date of this Act. A violation that occurs before the
23-16 effective date of this Act is governed by the law in effect on the
23-17 date the violation occurred, and the former law is continued in
23-18 effect for that purpose.
23-19 SECTION 13. The importance of this legislation and the
23-20 crowded condition of the calendars in both houses create an
23-21 emergency and an imperative public necessity that the
23-22 constitutional rule requiring bills to be read on three several
23-23 days in each house be suspended, and this rule is hereby suspended.