77R9403 SMH-D
By Reyna of Bexar H.B. No. 695
Substitute the following for H.B. No. 695:
By Reyna of Bexar C.S.H.B. No. 695
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of certain occupations by the Texas Real
1-3 Estate Commission; providing penalties.
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 (Article
1-6 6573a, Vernon's Texas Civil Statutes), is amended to read as
1-7 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 shall join the person in filing an application for a salesperson
1-13 license on a form prescribed by the commission.] A person
1-14 previously licensed as a broker may apply for inactive status. A
1-15 person desiring to act as a real estate salesperson in this state
1-16 must [previously licensed as a salesperson may] apply for a
1-17 salesperson license on a form prescribed by the commission. If the
1-18 person satisfies all requirements for a salesperson license, the
1-19 commission may issue an inactive salesperson license to the person.
1-20 The person may not act as a salesperson unless the person is
1-21 sponsored by a licensed broker who has notified the commission and
1-22 paid the fee for issuance of an active license to the salesperson
1-23 as required by Section 13(b) of this Act [inactive status without
1-24 the participation of a broker. The person must apply for inactive
2-1 status on a form prescribed by the commission not later than the
2-2 first anniversary of the date of the expiration of the broker or
2-3 salesperson license].
2-4 SECTION 2. Sections 7(b), (d), and (e), The Real Estate
2-5 License Act (Article 6573a, Vernon's Texas Civil Statutes), are
2-6 amended to read as follows:
2-7 (b) The commission by rule may:
2-8 (1) prescribe the content of the core real estate
2-9 courses listed in Subsection (a) of this section; and
2-10 (2) establish the title and content of additional core
2-11 real estate courses.
2-12 (d) Each applicant for a broker license shall furnish the
2-13 commission satisfactory evidence that the applicant has had not
2-14 less than two years active experience in this state as a licensed
2-15 real estate salesperson or broker during the 36-month period
2-16 immediately preceding the filing of the application; and, in
2-17 addition, shall furnish the commission satisfactory evidence of
2-18 having completed successfully 60 semester hours, or equivalent
2-19 classroom hours, of postsecondary education, of which a minimum of
2-20 18 semester hours or equivalent classroom hours must be completed
2-21 in core real estate courses. The remaining 42 hours must be
2-22 completed in core real estate courses or related [postsecondary
2-23 education] courses accepted by the commission. These
2-24 qualifications for a broker license may not be required of an
2-25 applicant who, at the time of making the application, is duly
2-26 licensed as a real estate broker by any other state in the United
2-27 States if that state's requirements for licensure are comparable to
3-1 those of Texas. As a prerequisite for applying for a broker
3-2 license, those persons licensed as salespersons subject to the
3-3 annual education requirements provided by Subsection (e) of this
3-4 section shall, as part of the hours required by this subsection,
3-5 furnish the commission satisfactory evidence of having completed
3-6 all the requirements of Subsection (e) of this section.
3-7 (e) Each applicant for a salesperson license shall furnish
3-8 the commission satisfactory evidence of having completed 12
3-9 semester hours, or equivalent classroom hours, of postsecondary
3-10 education, eight [six] hours of which must be completed in core
3-11 real estate courses, of which a minimum of four [two] hours must be
3-12 completed in Principles of Real Estate as described in Subsection
3-13 (a)(1) of this section, a minimum of two hours must be completed in
3-14 Law of Agency as described in Subsection (a)(10) of this section,
3-15 and a minimum of two hours must be completed in Law of Contracts as
3-16 described in Subsection (a)(11) of this section. The remaining
3-17 four [six] hours must [shall] be completed in core real estate
3-18 courses or related courses. As a condition for the first renewal
3-19 of a salesperson license, the applicant shall furnish the
3-20 commission satisfactory evidence of having completed a minimum of
3-21 14 semester hours, or equivalent classroom hours, 10 [eight] hours
3-22 of which must be completed in core real estate courses. As a
3-23 condition for the second renewal of a salesperson license, the
3-24 applicant shall furnish the commission satisfactory evidence of
3-25 having completed a minimum of 16 semester hours, or equivalent
3-26 classroom hours, 12 [10] hours of which must be completed in core
3-27 real estate courses. As a condition for the third renewal of a
4-1 salesperson license, the applicant shall furnish the commission
4-2 satisfactory evidence of having completed a minimum of 18 semester
4-3 hours, or equivalent classroom hours, 14 [12] hours of which must
4-4 be completed in core real estate courses.
4-5 SECTION 3. Section 7A(a), The Real Estate License Act
4-6 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
4-7 as follows:
4-8 (a) To renew an active real estate broker license or an
4-9 active real estate salesperson license that is not subject to the
4-10 annual education requirements of this Act, the licensee must
4-11 provide the commission proof of attendance at at least 15 classroom
4-12 hours of continuing education courses approved by the commission
4-13 during the term of the current license. The commission by rule may
4-14 prescribe the title, content, and duration of continuing education
4-15 courses that a licensee must attend to renew a license and may
4-16 provide for the substitution of relevant educational experience or
4-17 correspondence courses approved by the commission instead of
4-18 classroom attendance. In addition, supervised video instruction
4-19 may be approved by the commission as a course counting as classroom
4-20 hours of mandatory continuing education. At least six hours of
4-21 instruction must be devoted to the rules of the commission, fair
4-22 housing laws, landlord-tenant law and other Property Code issues,
4-23 agency laws, antitrust laws, the Deceptive Trade Practices-Consumer
4-24 Protection Act (Subchapter E, Chapter 17, Business & Commerce
4-25 Code), disclosures to buyers, landlords, tenants, and sellers,
4-26 current contract and addendum forms, the unauthorized practice of
4-27 law, case studies involving violations of laws and regulations,
5-1 current Federal Housing Administration and Department of Veterans
5-2 Affairs regulations, tax laws, property tax consulting laws and
5-3 legal issues, or other legal topics approved by the commission.
5-4 The remaining hours may be devoted to other real estate-related
5-5 topics approved by the commission. The commission may consider
5-6 equivalent courses for continuing education credit. Property tax
5-7 consulting laws and legal issues include but are not limited to the
5-8 Tax Code, preparation of property tax reports, the unauthorized
5-9 practice of law, agency laws, tax laws, laws concerning property
5-10 taxes or assessments, deceptive trade practices, contract forms and
5-11 addendum, and other legal topics approved by the commission. Real
5-12 estate related courses approved by the State Bar of Texas for
5-13 minimum continuing legal education participatory credit and core
5-14 real estate courses under Section 7(a) of this Act shall
5-15 automatically be approved as mandatory continuing education courses
5-16 under this Act. The commission may not require examinations except
5-17 for correspondence courses or courses offered by alternative
5-18 delivery systems such as computers. Daily classroom course
5-19 segments must be at least one hour long but not more than 10 hours
5-20 long.
5-21 SECTION 4. Sections 8(c) and (f), The Real Estate License Act
5-22 (Article 6573a, Vernon's Texas Civil Statutes), are amended to read
5-23 as follows:
5-24 (c) On determination by the commission at any time that [If
5-25 on December 31 of any year] the balance remaining in the real
5-26 estate recovery fund is less than $1 million, each real estate
5-27 broker and each real estate salesperson, on the next renewal of the
6-1 license, shall pay, in addition to the license renewal fee, a fee
6-2 of $10, which shall be deposited in the real estate recovery fund,
6-3 or a pro rata share of the amount necessary to bring the fund to
6-4 $1.7 million, whichever is less. If on December 31 of any year the
6-5 balance remaining in the real estate recovery fund is more than
6-6 $3.5 million or more than the total amount of claims paid from the
6-7 fund during the previous four fiscal years, whichever is greater,
6-8 the amount of money in excess of the greater amount shall be
6-9 transferred to the general revenue fund. To ensure the
6-10 availability of a sufficient amount to pay anticipated claims on
6-11 the fund, the commission by rule may provide for the collection of
6-12 assessments at different times and under conditions other than
6-13 those specified by this Act.
6-14 (f) The court shall proceed on the application forthwith.
6-15 On the hearing on the application, the aggrieved person is required
6-16 to show that:
6-17 (1) the judgment is based on facts allowing recovery
6-18 under Subsection (a) of this section;
6-19 (2) the person is not a spouse of the debtor, or the
6-20 personal representative of the spouse; and the person is not a
6-21 registrant under Section 9A of this Act or a real estate broker or
6-22 salesperson, as defined by this Act, who is seeking to recover a
6-23 real estate commission or any compensation in the transaction or
6-24 transactions for which the application for payment is made;
6-25 (3) [the person has obtained a judgment under
6-26 Subsection (e) of this section that is not subject to a stay or
6-27 discharge in bankruptcy, stating the amount of the judgment and the
7-1 amount owing on the judgment at the date of the application;]
7-2 [(4)] based on the best available information, the
7-3 judgment debtor lacks sufficient attachable assets in this state or
7-4 any other state to satisfy the judgment; and
7-5 (4) [(5)] the amount that may be realized from the
7-6 sale of real or personal property or other assets liable to be sold
7-7 or applied in satisfaction of the judgment and the balance
7-8 remaining due on the judgment after application of the amount that
7-9 may be realized.
7-10 SECTION 5. Section 11, The Real Estate License Act (Article
7-11 6573a, Vernon's Texas Civil Statutes), is amended to read as
7-12 follows:
7-13 Sec. 11. The commission shall charge and collect the
7-14 following fees:
7-15 (1) a fee not to exceed $100 for the filing of an
7-16 original application for a real estate broker license;
7-17 (2) a fee not to exceed $100 for annual renewal of a
7-18 real estate broker license;
7-19 (3) a fee not to exceed $50 for the filing of an
7-20 original application for a real estate salesperson license;
7-21 (4) a fee not to exceed $50 for annual renewal of a
7-22 real estate salesperson license;
7-23 (5) a fee not to exceed $100 [$50] for an application
7-24 for a license examination;
7-25 (6) a fee not to exceed $20 for filing a request for a
7-26 license for each additional office or place of business;
7-27 (7) a fee not to exceed $20 for filing a request for a
8-1 license or certificate of registration for a change of place of
8-2 business, change of name, return to active status, or change of
8-3 sponsoring broker;
8-4 (8) a fee not to exceed $20 for filing a request to
8-5 replace a license or certificate of registration lost or destroyed;
8-6 (9) a fee not to exceed $400 for filing an application
8-7 for approval of an education program under Section 7(f) of this
8-8 Act;
8-9 (10) a fee not to exceed $200 a year for operation of
8-10 an education program under Section 7(f) of this Act;
8-11 (11) a fee of $20 [$15] for transcript evaluation;
8-12 (12) a fee not to exceed $10 for preparing a license
8-13 or registration history;
8-14 (13) a fee not to exceed $50 for the filing of an
8-15 application for a moral character determination;
8-16 (14) an annual fee of $20 from each real estate broker
8-17 and each registrant under Section 9A of this Act to be transmitted
8-18 to Texas A&M University for the Texas Real Estate Research Center
8-19 as provided by Section 5(m) of this Act;
8-20 (15) an annual fee of $17.50 from each real estate
8-21 salesperson to be transmitted to Texas A&M University for the Texas
8-22 Real Estate Research Center as provided by Section 5(m) of this
8-23 Act;
8-24 (16) an annual fee of $80 from each registrant under
8-25 Section 9A of this Act; and
8-26 (17) any fee authorized under Section 8 of this Act
8-27 for the real estate recovery fund.
9-1 SECTION 6. Section 15(a), The Real Estate License Act
9-2 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
9-3 as follows:
9-4 (a) The commission may, on its own motion, and shall, on the
9-5 signed complaint in writing of any person [a consumer or service
9-6 recipient], provided the complaint, or the complaint together with
9-7 evidence, documentary or otherwise, presented in connection with
9-8 the complaint, provides reasonable cause, investigate the actions
9-9 and records of a real estate broker or real estate salesperson. The
9-10 commission may suspend or revoke a license issued under the
9-11 provisions of this Act or take other disciplinary action authorized
9-12 by this Act at any time when it has been determined that:
9-13 (1) the licensee has entered a plea of guilty or nolo
9-14 contendere to, or been found guilty of, or been convicted of, a
9-15 felony, in which fraud is an essential element, and the time for
9-16 appeal has elapsed or the judgment or conviction has been affirmed
9-17 on appeal, irrespective of an order granting probation following
9-18 such conviction, suspending the imposition of sentence;
9-19 (2) the licensee has procured, or attempted to
9-20 procure, a real estate license, for the licensee or a salesperson,
9-21 by fraud, misrepresentation or deceit, or by making a material
9-22 misstatement of fact in an application for a real estate license;
9-23 (3) the licensee, when selling, buying, trading, or
9-24 renting real property in the licensee's own name, engaged in
9-25 misrepresentation or dishonest or fraudulent action;
9-26 (4) the licensee has failed within a reasonable time
9-27 to make good a check issued to the commission after the commission
10-1 has mailed a request for payment by certified mail to the
10-2 licensee's last known business address as reflected by the
10-3 commission's records;
10-4 (5) the licensee has disregarded or violated a
10-5 provision of this Act;
10-6 (6) the licensee, while performing an act constituting
10-7 an act of a broker or salesperson, as defined by this Act, has been
10-8 guilty of:
10-9 (A) making a material misrepresentation, or
10-10 failing to disclose to a potential purchaser any latent structural
10-11 defect or any other defect known to the broker or salesperson.
10-12 Latent structural defects and other defects do not refer to trivial
10-13 or insignificant defects but refer to those defects that would be a
10-14 significant factor to a reasonable and prudent purchaser in making
10-15 a decision to purchase;
10-16 (B) making a false promise of a character likely
10-17 to influence, persuade, or induce any person to enter into a
10-18 contract or agreement when the licensee could not or did not intend
10-19 to keep such promise;
10-20 (C) pursuing a continued and flagrant course of
10-21 misrepresentation or making of false promises through agents,
10-22 salespersons, advertising, or otherwise;
10-23 (D) failing to make clear, to all parties to a
10-24 transaction, which party the licensee is acting for, or receiving
10-25 compensation from more than one party except with the full
10-26 knowledge and consent of all parties;
10-27 (E) failing within a reasonable time properly to
11-1 account for or remit money coming into the licensee's possession
11-2 which belongs to others, or commingling money belonging to others
11-3 with the licensee's own funds;
11-4 (F) paying a commission or fees to or dividing a
11-5 commission or fees with anyone not licensed as a real estate broker
11-6 or salesperson in this state or in any other state for compensation
11-7 for services as a real estate agent;
11-8 (G) failing to specify a definite termination
11-9 date that is not subject to prior notice in a contract, other than
11-10 a contract to perform property management services, in which the
11-11 licensee agrees to perform services for which a license is required
11-12 under this Act;
11-13 (H) accepting, receiving, or charging an
11-14 undisclosed commission, rebate, or direct profit on expenditures
11-15 made for a principal;
11-16 (I) soliciting, selling, or offering for sale
11-17 real property under a scheme or program that constitutes a lottery
11-18 or deceptive practice;
11-19 (J) acting in the dual capacity of broker and
11-20 undisclosed principal in a transaction;
11-21 (K) guaranteeing, authorizing, or permitting a
11-22 person to guarantee that future profits will result from a resale
11-23 of real property;
11-24 (L) placing a sign on real property offering it
11-25 for sale, lease, or rent without the written consent of the owner
11-26 or the owner's authorized agent;
11-27 (M) inducing or attempting to induce a party to
12-1 a contract of sale or lease to break the contract for the purpose
12-2 of substituting in lieu thereof a new contract;
12-3 (N) negotiating or attempting to negotiate the
12-4 sale, exchange, lease, or rental of real property with an owner,
12-5 lessor, buyer, or tenant, knowing that the owner, lessor, buyer, or
12-6 tenant had a written outstanding contract, granting exclusive
12-7 agency in connection with the transaction to another real estate
12-8 broker;
12-9 (O) offering real property for sale or for lease
12-10 without the knowledge and consent of the owner or the owner's
12-11 authorized agent, or on terms other than those authorized by the
12-12 owner or the owner's authorized agent;
12-13 (P) publishing, or causing to be published, an
12-14 advertisement including, but not limited to, advertising by
12-15 newspaper, radio, television, the Internet, or display which is
12-16 misleading, or which is likely to deceive the public, or which in
12-17 any manner tends to create a misleading impression, or which fails
12-18 to identify the person causing the advertisement to be published as
12-19 a licensed real estate broker or agent;
12-20 (Q) having knowingly withheld from or inserted
12-21 in a statement of account or invoice, a statement that made it
12-22 inaccurate in a material particular;
12-23 (R) publishing or circulating an unjustified or
12-24 unwarranted threat of legal proceedings, or other action;
12-25 (S) establishing an association, by employment
12-26 or otherwise, with an unlicensed person who is expected or required
12-27 to act as a real estate licensee, or aiding or abetting or
13-1 conspiring with a person to circumvent the requirements of this
13-2 Act;
13-3 (T) failing or refusing on demand to furnish
13-4 copies of a document pertaining to a transaction dealing with real
13-5 estate to a person whose signature is affixed to the document;
13-6 (U) failing to advise a purchaser in writing
13-7 before the closing of a transaction that the purchaser should
13-8 either have the abstract covering the real estate which is the
13-9 subject of the contract examined by an attorney of the purchaser's
13-10 own selection, or be furnished with or obtain a policy of title
13-11 insurance;
13-12 (V) conduct which constitutes dishonest
13-13 dealings, bad faith, or untrustworthiness;
13-14 (W) acting negligently or incompetently in
13-15 performing an act for which a person is required to hold a real
13-16 estate license;
13-17 (X) disregarding or violating a provision of
13-18 this Act;
13-19 (Y) failing within a reasonable time to deposit
13-20 money received as escrow agent in a real estate transaction, either
13-21 in trust with a title company authorized to do business in this
13-22 state, or in a custodial, trust, or escrow account maintained for
13-23 that purpose in a banking institution authorized to do business in
13-24 this state;
13-25 (Z) disbursing money deposited in a custodial,
13-26 trust, or escrow account, as provided in Subsection (Y) before the
13-27 transaction concerned has been consummated or finally otherwise
14-1 terminated; or
14-2 (AA) discriminating against an owner, potential
14-3 purchaser, lessor, or potential lessee on the basis of race, color,
14-4 religion, sex, national origin, or ancestry, including directing
14-5 prospective home buyers or lessees interested in equivalent
14-6 properties to different areas according to the race, color,
14-7 religion, sex, national origin, or ancestry of the potential owner
14-8 or lessee;
14-9 (7) the licensee has failed or refused on demand to
14-10 produce a document, book, or record in the licensee's possession
14-11 concerning a real estate transaction conducted by the licensee for
14-12 inspection by the commission or its authorized personnel or
14-13 representative;
14-14 (8) the licensee has failed within a reasonable time
14-15 to provide information requested by the commission as a result of a
14-16 formal or informal complaint to the commission which would indicate
14-17 a violation of this Act; or
14-18 (9) the licensee has failed without just cause to
14-19 surrender to the rightful owner, on demand, a document or
14-20 instrument coming into the licensee's possession.
14-21 SECTION 7. Section 15B(e), The Real Estate License Act
14-22 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
14-23 as follows:
14-24 (e) The commission may authorize a commission employee to
14-25 file a signed written complaint against a licensee and to conduct
14-26 an investigation if:
14-27 (1) a judgment against the licensee has been paid from
15-1 a recovery fund established under this Act;
15-2 (2) the licensee is convicted of a criminal offense
15-3 that may constitute grounds for the suspension or revocation of the
15-4 licensee's license; [or]
15-5 (3) the licensee fails to make good a check issued to
15-6 the commission;
15-7 (4) the licensee fails to complete required continuing
15-8 education within the period prescribed by commission rules adopted
15-9 under Section 7A(g) of this Act; or
15-10 (5) the licensee fails to provide, within a reasonable
15-11 time, information requested by the commission in connection with an
15-12 application to renew a license.
15-13 SECTION 8. Section 19(a), The Real Estate License Act
15-14 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
15-15 as follows:
15-16 (a) A person acting as a real estate broker or real estate
15-17 salesperson without first obtaining a license or a person required
15-18 to register under Section 9A of this Act who sells, purchases,
15-19 leases, or transfers a right-of-way or easement without first
15-20 obtaining a certificate of registration under Section 9A of this
15-21 Act commits an offense. An offense under this subsection is a
15-22 Class A misdemeanor [is guilty of a misdemeanor and on conviction
15-23 shall be punishable by a fine of not less than $100 nor more than
15-24 $500, or by imprisonment in the county jail for a term not to
15-25 exceed one year, or both; and if a person other than an individual,
15-26 shall be punishable by a fine of not less than $1,000 nor more than
15-27 $2,000. A person, on conviction of a second or subsequent offense,
16-1 shall be punishable by a fine of not less than $500 nor more than
16-2 $1,000, or by imprisonment for a term not to exceed two years, or
16-3 both; and if a person other than an individual, shall be punishable
16-4 by a fine of not less than $2,000 nor more than $5,000].
16-5 SECTION 9. Sections 19A(a), (b), (d), (h), (m), and (o), The
16-6 Real Estate License Act (Article 6573a, Vernon's Texas Civil
16-7 Statutes), are amended to read as follows:
16-8 (a) If a person [licensed under this Act] violates this Act
16-9 or a rule or order adopted by the commission under this Act, the
16-10 commission may assess an administrative penalty against the person
16-11 as provided by this section.
16-12 (b) The penalty for each violation shall be set in an amount
16-13 not to exceed $1,000. Each day a violation continues or occurs may
16-14 be considered a separate violation for purposes of penalty
16-15 assessment if the commission finds that the person charged:
16-16 (1) engaged in an activity for which a real estate
16-17 broker or real estate salesperson license is required without
16-18 holding a license; and
16-19 (2) was not licensed by the commission as a real
16-20 estate broker or real estate salesperson at any time in the four
16-21 years preceding the date of the violation.
16-22 (d) If, after investigation of a possible violation and the
16-23 facts surrounding that possible violation, the administrator
16-24 determines that a violation has occurred, the administrator may
16-25 issue a violation report stating the facts on which the conclusion
16-26 that a violation occurred is based, recommending that an
16-27 administrative penalty under this section be imposed on the person
17-1 charged, and recommending the amount of that proposed penalty. The
17-2 administrator shall base the recommended amount of the proposed
17-3 penalty on the seriousness of the violation determined by the
17-4 consideration of the factors set forth in Subsection (c) of this
17-5 section. The commission may authorize the administrator to
17-6 delegate to another commission employee the administrator's
17-7 authority to act under this section.
17-8 (h) If the person charged requests a hearing or fails to
17-9 timely respond to the notice, the administrator shall set a hearing
17-10 and give notice of the hearing. The hearing shall be held by a
17-11 hearing examiner designated by the administrator. The hearing
17-12 examiner shall make findings of fact and conclusions of law and
17-13 promptly issue to the commission a proposal for decision as to the
17-14 occurrence of the violation, including a recommendation as to the
17-15 amount of the proposed penalty if a penalty is warranted. Based on
17-16 the findings of fact, conclusions of law, and recommendations of
17-17 the hearing examiner, the commission by order may find a violation
17-18 has occurred and may assess a penalty or may find that no violation
17-19 has occurred. All proceedings under this subsection are subject to
17-20 Chapter 2001, Government Code. The commission may authorize the
17-21 hearing examiner to conduct the hearing and enter a final decision
17-22 [the Administrative Procedure and Texas Register Act (Article
17-23 6252-13a, Vernon's Texas Civil Statutes)].
17-24 (m) Judicial review of the order or decision of the
17-25 commission assessing the penalty shall be under the substantial
17-26 evidence rule and shall be instituted by filing a petition with a
17-27 district court in Travis County, as provided by Chapter 2001,
18-1 Government Code [Section 19, Administrative Procedure and Texas
18-2 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)].
18-3 (o) A penalty collected under this section for a violation
18-4 by a person licensed as a real estate broker or salesperson shall
18-5 be deposited in the real estate recovery fund. A penalty collected
18-6 under this section for a violation by a person licensed or
18-7 registered as a real estate inspector shall be deposited in the
18-8 real estate inspection recovery fund. A penalty collected under
18-9 this section for a violation by a person who is not licensed under
18-10 this Act shall be deposited in the real estate recovery fund or the
18-11 real estate inspection recovery fund, as determined by the
18-12 commission.
18-13 SECTION 10. Sections 23(f)(3)-(6), The Real Estate License
18-14 Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
18-15 read as follows:
18-16 (3) [If a person's license has been expired for 90
18-17 days or less, the person may renew the license by paying to the
18-18 commission the required renewal fee and a fee that is one-half of
18-19 the examination fee, if any, for the registration or license.]
18-20 [(4) If a person's license has been expired for longer
18-21 than 90 days but less than one year, the person may renew the
18-22 license by paying to the commission all unpaid renewal fees and a
18-23 fee that is equal to the examination fee, if any, for the license.]
18-24 [(5)] If a person's license expires [has been expired
18-25 for one year or longer], the person may not renew the license. The
18-26 person may obtain a new license by submitting to reexamination, if
18-27 required, and complying with the requirements and procedures for
19-1 obtaining an original license. [However, the commission may renew
19-2 without reexamination an expired license of a person who was
19-3 licensed in this state, moved to another state, and is currently
19-4 licensed and has been in practice in the other state for the one
19-5 year preceding application. The person must pay to the commission
19-6 a fee that is equal to the examination fee for the license.]
19-7 (4) [(6)] At least 30 days before the expiration of a
19-8 person's license, the commission shall send written notice of the
19-9 impending license expiration to the person at the person's last
19-10 known address according to the records of the commission.
19-11 SECTION 11. Section 23(h)(1), The Real Estate License Act
19-12 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
19-13 as follows:
19-14 (1) The commission shall charge and collect reasonable
19-15 and necessary fees to recover the cost of administering this
19-16 section as follows:
19-17 (A) a fee not to exceed $75 for the filing of an
19-18 original application for a license as an apprentice inspector;
19-19 (B) a fee not to exceed $125 for the filing of
19-20 an original application for a license as a real estate inspector;
19-21 (C) a fee not to exceed $150 for the filing of
19-22 an original application for a license as a professional inspector;
19-23 (D) a fee not to exceed $125 for the annual
19-24 license renewal of an apprentice inspector;
19-25 (E) a fee not to exceed $175 for the annual
19-26 license renewal of a real estate inspector;
19-27 (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 issuance of a license because of a change of name, return to
20-9 active status, or change in sponsoring professional inspector.
20-10 SECTION 12. Section 23(k), The Real Estate License Act
20-11 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
20-12 as follows:
20-13 (k) Continuing education programs. The commission shall
20-14 recognize, prepare, or administer continuing education programs for
20-15 inspectors. Participation in the programs is mandatory. A real
20-16 estate inspector must submit satisfactory evidence to the
20-17 commission of successful completion of at least eight [four]
20-18 classroom hours of core real estate inspection courses annually
20-19 before a license [licensed] renewal is issued. A professional
20-20 inspector must submit satisfactory evidence to the commission of
20-21 successful completion of at least 16 [eight] classroom hours of
20-22 core [related] real estate inspection courses annually before a
20-23 license renewal is issued.
20-24 SECTION 13. Section 23(m)(2), The Real Estate License Act
20-25 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
20-26 as follows:
20-27 (2) An offense under this subsection is a Class A [B]
21-1 misdemeanor.
21-2 SECTION 14. Sections 23(o)(3), (7), and (15), The Real Estate
21-3 License Act (Article 6573a, Vernon's Texas Civil Statutes), are
21-4 amended to read as follows:
21-5 (3) If at [on December 31 of] any time [year] the
21-6 balance remaining in the real estate inspection recovery fund is
21-7 less than $300,000, each inspector, on the next renewal of the
21-8 person's license, shall pay, in addition to the license renewal
21-9 fee, a fee of $75, or a pro rata share of the amount necessary to
21-10 bring the fund to $450,000, whichever is less, which shall be
21-11 deposited in the real estate inspection recovery fund. To ensure
21-12 the availability of a sufficient amount to pay anticipated claims
21-13 on the fund, the commission by rule may provide for the collection
21-14 of assessments at different times and under conditions other than
21-15 those specified by this Act.
21-16 (7) The court shall proceed on the application
21-17 forthwith. On the hearing on the application, the aggrieved person
21-18 is required to show:
21-19 (A) that the judgment is based on facts allowing
21-20 recovery under Subdivision (1) of this subsection;
21-21 (B) that the person is not a spouse of the
21-22 debtor or the personal representative of the spouse and the person
21-23 is not an inspector, as defined by this section;
21-24 (C) [that the person has obtained a judgment
21-25 under Subdivision (6) of this subsection that is not subject to a
21-26 stay or discharge in bankruptcy, stating the amount of the judgment
21-27 and the amount owing on the judgment at the date of the
22-1 application;]
22-2 [(D)] that based on the best information
22-3 available, the judgment debtor lacks sufficient attachable assets
22-4 in this state or any other state to satisfy the judgment; and
22-5 (D) [(E)] the amount that may be realized from
22-6 the sale of real or personal property or other assets liable to be
22-7 sold or applied in satisfaction of the judgment and the balance
22-8 remaining due on the judgment after application of the amount that
22-9 may be realized.
22-10 (15) Notwithstanding any other provision, payments
22-11 from the real estate inspection recovery fund are subject to the
22-12 following conditions and limitations:
22-13 (A) payments may be made only pursuant to an
22-14 order of a court of competent jurisdiction, as provided by
22-15 Subdivision (6) of this subsection, and in the manner prescribed by
22-16 this subsection;
22-17 (B) payments for claims, including attorney
22-18 fees, interest, and court costs, arising out of the same
22-19 transaction shall be limited in the aggregate to $12,500 [$7,500]
22-20 regardless of the number of claimants; and
22-21 (C) payments for claims based on judgments
22-22 against a licensed inspector may not exceed in the aggregate
22-23 $30,000 [$15,000] until the fund has been reimbursed by the
22-24 licensee for all amounts paid.
22-25 SECTION 15. Section 24(f), The Real Estate License Act
22-26 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
22-27 as follows:
23-1 (f) A person commits an offense if the person engages in
23-2 business as a residential rental locator in this state without a
23-3 license issued under this Act. An offense under this subsection is
23-4 a Class A [B] misdemeanor.
23-5 SECTION 16. Section 18, Residential Service Company Act
23-6 (Article 6573b, Revised Statutes), is amended by adding Subsection
23-7 (c) to read as follows:
23-8 (c) The commission may authorize a hearing examiner to
23-9 conduct a hearing and enter a final decision in a proceeding under
23-10 this section.
23-11 SECTION 17. The Residential Service Company Act (Article
23-12 6573b, Revised Statutes) is amended by adding Section 23B to read
23-13 as follows:
23-14 Sec. 23B. ADMINISTRATIVE PENALTY. (a) The commission may
23-15 assess an administrative penalty on a person who violates this Act
23-16 or a rule or order adopted by the commission under this Act in the
23-17 same manner as the commission may assess an administrative penalty
23-18 under Section 19A, The Real Estate License Act (Article 6573a,
23-19 Vernon's Texas Civil Statutes), on a person who violates that Act
23-20 or a rule or order adopted by the commission under that Act. The
23-21 provisions of that section governing the procedure for assessing a
23-22 penalty and judicial review of a penalty apply to a penalty
23-23 assessed under this section.
23-24 (b) The penalty for each violation may not exceed $1,000.
23-25 (c) The commission shall deposit a penalty collected under
23-26 this section to the credit of the residential service company fund.
23-27 SECTION 18. (a) Except as provided by Subsection (b) of this
24-1 section, this Act takes effect September 1, 2001.
24-2 (b) The changes in law made by this Act to Sections 7(d) and
24-3 (e), The Real Estate License Act (Article 6573a, Vernon's Texas
24-4 Civil Statutes), take effect January 1, 2002, and apply only to an
24-5 application for a real estate broker license or real estate
24-6 salesperson license filed on or after that date. An application
24-7 filed before January 1, 2002, is governed by the law in effect on
24-8 the date the application was filed, and the former law is continued
24-9 in effect for that purpose.
24-10 (c) The changes in law made by this Act to Sections 8(f) and
24-11 23(o)(7) and (15), The Real Estate License Act (Article 6573a,
24-12 Vernon's Texas Civil Statutes), apply only to a cause of action
24-13 that arises on or after the effective date of this Act. A cause of
24-14 action that arises before the effective date of this Act is
24-15 governed by the law in effect on the date the cause of action
24-16 arose, and the former law is continued in effect for that purpose.
24-17 (d) The changes in law made by this Act to Sections 19(a),
24-18 23(m)(2), and 24(f), The Real Estate License Act (Article 6573a,
24-19 Vernon's Texas Civil Statutes), apply only to an offense committed
24-20 on or after the effective date of this Act. For purposes of this
24-21 subsection, an offense is committed before the effective date of
24-22 this Act if any element of the offense occurs before that date. An
24-23 offense committed before the effective date of this Act is covered
24-24 by the law in effect when the offense was committed, and the former
24-25 law is continued in effect for that purpose.
24-26 (e) The changes in law made by this Act to Sections
24-27 23(f)(3)-(6), The Real Estate License Act (Article 6573a, Vernon's
25-1 Texas Civil Statutes), apply only to the renewal of a real estate
25-2 inspector license or professional inspector license that expires on
25-3 or after the effective date of this Act. A license that expires
25-4 before that date is governed by the law in effect on the date the
25-5 license expires, and the former law is continued in effect for that
25-6 purpose.
25-7 (f) The change in law made by this Act to Section 23(k), The
25-8 Real Estate License Act (Article 6573a, Vernon's Texas Civil
25-9 Statutes), applies only to the renewal of a real estate inspector
25-10 license or professional inspector license that expires on or after
25-11 December 31, 2001. A license that expires before that date is
25-12 governed by the law in effect on the date the license expires, and
25-13 the former law is continued in effect for that purpose.
25-14 (g) The changes in law made by this Act that relate to a
25-15 disciplinary action or the imposition of an administrative penalty
25-16 apply only to a violation of The Real Estate License Act (Article
25-17 6573a, Vernon's Texas Civil Statutes) or the Residential Service
25-18 Company Act (Article 6573b, Revised Statutes) that occurs on or
25-19 after the effective date of this Act. A violation that occurs
25-20 before the effective date of this Act is governed by the law in
25-21 effect on the date the violation occurred, and the former law is
25-22 continued in effect for that purpose.