H.B. 1508 78(R)    BILL ANALYSIS


H.B. 1508
By: Flores
Licensing & Administrative Procedures
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Under current law the Texas Real Estate Commission has authority to
regulate individuals licensed under the Real Estate License Act to engage
in or conduct the business of a real estate broker or a real estate
salesperson. Likewise, the Texas Real Estate Commission also has authority
to issue certificates and to regulate holders of certificates who engage
in or conduct the business of right-ofway agents.  Finally, the Texas Real
Estate Commission has authority to regulate individuals licensed to engage
in or conduct the business of real estate inspection. 

H.B.1508 increases several administrative fees associated with the
operations of the Texas Real Estate Commission.  The bill modernizes
public notice requirements for licensees to reflect the widespread use of
the Internet.  The bill makes minor adjustments to the salesperson
application process.  The bill makes other minor technical adjustments to
the licensing requirements under the commission's jurisdiction. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution.   


ANALYSIS

The bill makes additions and guidelines for fees required to be collected
by the Texas Real Estate Commission (Commission). Amends Section 1101.152
(a), Occupations Code, by increasing the fee for filing a salesperson
application from $50 to $75; states that a fee for the filing of an
application for approval of an instructor of core real estate courses is
prohibited from exceeding $40, and increases from $10 to $20, the maximum
fee for preparing a license or registration history.   
Amends Subsection (b), Section 1101.152, Occupations Code, by authorizing
the Commission to impose a maximum fee of $40 for an application of an
instructor of continuing education courses. Adds language prohibiting the
commission from charging a fee when a newly licensed salesperson, whose
license was issued on an inactive status, seeks to  activate the license
for the first time. 

Amends Section 1101.202 (a), Occupations Code, by  adding to the current
requirements of notice by the licensee to include a posting on the
licensee's website. 

Amends Section 1101.352, Occupations Code, by repealing Subsection (b) and
renumbering accordingly. 

 Amends Section 1101.363, Occupations Code, by adding Subsection (b)
authorizing the commission to issue an inactive salesperson license to a
person who satisfies all requirements for the license. Clarifies that the
first time the salesperson associates with a broker and activates the
salesperson's license, the broker does not have to pay a fee to activate
the license.  

Amends Section 1101.367,  Occupations Code, as follows by repealing
Section 1101.367 (a), and renumbering accordingly. 

 Amends Sections 1101.558 (a) and (c), Occupations Code, by deleting the
existing term "face-toface meeting" adding the term "substantive
dialogue." 

Amends Section 1101.615 (a), Occupations Code, by adding the Internet
website of the licensee to the list of notice choices given by the
Commission to each license holder. 

Amends Section 1101.657 (d), Occupations Code, by adding that this section
is applicable only for a violation of Section 1101.652 (a) (3) or (b). 

Amends Section 1102.109, Occupations Code, by providing that an applicant
must satisfy the Commission as to the applicant's honesty,
trustworthiness, integrity, and competence. 

Amends Section 1102.111 (b), Occupations Code, by increasing from 60 to
320 the hours of core real estate inspection courses required by the
Commission. 

Amends Section 1102.201, Occupations Code, by authorizing the Commission
to issue or renew a license for a period that does not exceed 24 months.
Adds language that prohibits the renewal fee for a license not to exceed
the fee established on Section 1102.251.  Repeals language giving licenses
a limited life span of only one year. 

Amends Section 1102.364 (a), Occupations Code, by including the Internet
as a medium required for inspectors to post information regarding the
commission's Real Estate Recovery Trust Account.  

The bill repeals Sections 1101.553 (a) and (b), Occupations Code in
SECTION 14. 


EFFECTIVE DATE

September 1, 2003.