By: Fraser S.B. No. 818
(In the Senate - Filed March 3, 2003; March 10, 2003, read
first time and referred to Committee on Business and Commerce;
April 2, 2003, reported favorably by the following vote: Yeas 8,
Nays 0; April 2, 2003, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain occupations by the Texas Real
Estate Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), Section 1101.152, Occupations
Code, is reenacted to conform to Section 5, Chapter 997, Acts of the
77th Legislature, Regular Session, 2001, and amended to read as
follows:
(a) The commission shall charge and collect the following
fees:
(1) for filing an original application for a broker
license, not more than $100;
(2) for annual renewal of a broker license, not more
than $100;
(3) for filing an original application for a
salesperson license, not more than $75 [$50];
(4) for annual renewal of a salesperson license, not
more than $50;
(5) for annual registration, $80;
(6) for an application for a license examination, not
more than $100;
(7) for filing a request for a branch office license,
not more than $20;
(8) for filing a request for a change of place of
business, change of name, return to active status, or change of
sponsoring broker, not more than $20;
(9) for filing a request to replace a lost or destroyed
license or certificate of registration, not more than $20;
(10) for filing an application for approval of an
education program under Subchapter G, not more than $400;
(11) for annual operation of an education program
under Subchapter G, not more than $200;
(12) for filing an application for approval of an
instructor of core real estate courses, not more than $40;
(13) for transcript evaluation, $20;
(14) [(13)] for preparing a license or registration
history, not more than $20 [$10]; and
(15) [(14)] for filing an application for a moral
character determination, not more than $50.
SECTION 2. Section 1101.152, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) The commission may set and collect reasonable fees to
implement the continuing education requirements for license
holders, including the following fees:
(1) for an application for approval of a continuing
education provider, not more than $400; [and]
(2) for an application for approval of a continuing
education course of study, not more than $100; and
(3) for an application for approval of an instructor
of continuing education courses, not more than $40.
(c) Notwithstanding Subsection (a), if the commission
issues an original inactive salesperson license under Section
1101.363(b) to a salesperson who is not sponsored by a licensed
broker and the salesperson is subsequently sponsored by a licensed
broker, the commission may not charge:
(1) the salesperson a fee for filing a request to place
the salesperson license on active status; or
(2) the broker a fee for filing a request to sponsor
the salesperson.
SECTION 3. Subsection (a), Section 1101.202, Occupations
Code, is amended to read as follows:
(a) The commission by rule shall establish methods by which
consumers and service recipients are notified of the name, mailing
address, and telephone number of the commission for the purpose of
directing a complaint to the commission. The commission may
provide for that notice:
(1) on each application for a license or certificate
of registration or written contract for services of a person
regulated under this chapter or Chapter 1102;
(2) on a sign prominently displayed in the place of
business of each person regulated under this chapter or Chapter
1102;
(3) in a bill for services provided by a person
regulated under this chapter or Chapter 1102; [or]
(4) in conjunction with the notice required by Section
1101.615; or
(5) to be prominently displayed on the Internet
website of a person regulated under this chapter or Chapter 1102.
SECTION 4. Section 1101.352, Occupations Code, is amended
to conform to Section 1, Chapter 997, Acts of the 77th Legislature,
Regular Session, 2001, to read as follows:
Sec. 1101.352. LICENSE APPLICATION. (a) Each applicant
for a broker or salesperson license must submit an application on a
form prescribed by the commission.
(b) [A broker who intends to associate with an applicant for
a salesperson license must join the applicant in filing the
application.
[(c)] Each applicant for a broker or salesperson license
must disclose in the license application whether the applicant has:
(1) entered a plea of guilty or nolo contendere to a
felony; or
(2) been convicted of a felony and the time for appeal
has elapsed or the judgment or conviction has been affirmed on
appeal.
(c) [(d)] The disclosure under Subsection (b) [(c)] must be
provided even if an order has granted community supervision
suspending the imposition of the sentence.
SECTION 5. Section 1101.363, Occupations Code, is amended
by adding a new Subsection (b) and relettering existing Subsection
(b) as Subsection (c) to conform to Section 1, Chapter 997, Acts of
the 77th Legislature, Regular Session, 2001, and is further amended
to read as follows:
(b) The commission may issue an inactive salesperson
license to a person who applies for a salesperson license and
satisfies all requirements for the license. The person may not act
as a salesperson unless the person is sponsored by a licensed broker
who has notified the commission as required by Section 1101.367(b).
Notwithstanding Section 1101.367(b), the licensed broker is not
required to pay the fee required by that subsection.
(c) A license remains in effect for the period prescribed by
the commission if the license holder complies with this chapter and
pays the appropriate renewal fees.
SECTION 6. Section 1101.367, Occupations Code, is amended
to conform to Section 1, Chapter 997, Acts of the 77th Legislature,
Regular Session, 2001, to read as follows:
Sec. 1101.367. INACTIVE LICENSE: SALESPERSON. (a) [The
commission may place on inactive status the license of a person who
was previously licensed as a salesperson if the person applies for
inactive status on a form prescribed by the commission not later
than the first anniversary of the expiration date of the license.
An application under this subsection does not require the
participation of a broker.
[(b)] When the association of a salesperson with the
saleperson's sponsoring broker terminates, the broker shall
immediately return the salesperson license to the commission. A
salesperson license returned under this subsection is inactive.
(b) [(c)] The commission may remove a salesperson license
from inactive status under Subsection (a) [(b)] if, before the
expiration date of the salesperson license, a licensed broker files
a request with the commission advising the commission that the
broker assumes sponsorship of the salesperson, accompanied by the
appropriate fee.
(c) [(d)] As a condition of returning to active status, an
inactive salesperson whose license is not subject to the annual
education requirements of Section 1101.454 must provide to the
commission proof of attending at least 15 hours of continuing
education as specified by Section 1101.455 during the two years
preceding the date the application to return to active status is
filed.
SECTION 7. Subsections (a) and (c), Section 1101.558,
Occupations Code, are amended to read as follows:
(a) In this section, "substantive dialogue" ["face-to-face
meeting"] means a meeting or written communication that involves
[at which] a substantive discussion [occurs] relating to specific
real property. The term does not include [a meeting that occurs]:
(1) a meeting that occurs at a property that is held
open for any prospective buyer or tenant; or
(2) a meeting or written communication that occurs
after the parties to a real estate transaction have signed a
contract to sell, buy, or lease the real property concerned.
(c) A license holder shall provide to a party to a real
estate transaction at the time of the first substantive dialogue
[face-to-face meeting] with the party the written statement
prescribed by Subsection (d) unless:
(1) the proposed transaction is for a residential
lease for not more than one year and a sale is not being considered;
or
(2) the license holder meets with a party who is
represented by another license holder.
SECTION 8. Subsection (a), Section 1101.615, Occupations
Code, is amended to read as follows:
(a) Each license and certificate holder shall provide
notice to consumers and service recipients of the availability of
payment from the trust account for aggrieved persons:
(1) in conjunction with the notice required by Section
1101.202;
(2) on a written contract for the license or
certificate holder's services;
(3) on a brochure that the license or certificate
holder distributes;
(4) on a sign prominently displayed in the license or
certificate holder's place of business; [or]
(5) in a bill or receipt for the license or certificate
holder's services; or
(6) in a prominent display on the Internet website of a
person regulated under this chapter.
SECTION 9. Subsection (d), Section 1101.657, Occupations
Code, is amended to read as follows:
(d) This subsection applies only to a hearing relating to a
proposal to suspend or revoke a person's license or certificate of
registration for a violation of Section 1101.652(a)(3) or (b). The
hearing shall be held, if the license holder requests, in the county
in which the principal place of business of the license holder is
located, or, if the license holder is not a resident, the hearing
may be held in any county in this state.
SECTION 10. Section 1102.109, Occupations Code, is amended
to read as follows:
Sec. 1102.109. ELIGIBILITY FOR PROFESSIONAL INSPECTOR
LICENSE. To be eligible for a professional inspector license, an
applicant must:
(1) at the time of application have:
(A) held a real estate inspector license for at
least 12 months; and
(B) performed at least 175 real estate
inspections under indirect supervision;
(2) submit evidence satisfactory to the commission of
successful completion of at least 30 classroom hours of core real
estate inspection courses, in addition to the hours required by
Section 1102.108, and at least eight classroom hours related to the
study of standards of practice, legal issues, or ethics related to
the practice of real estate inspecting; [and]
(3) demonstrate competence based on the examination
under Subchapter D; and
(4) satisfy the commission as to the applicant's
honesty, trustworthiness, integrity, and competence.
SECTION 11. Subsection (b), Section 1102.111, Occupations
Code, is amended to read as follows:
(b) Rules adopted under Subsection (a) may not require an
applicant to complete more than 320 [60] additional classroom hours
of core real estate inspection courses.
SECTION 12. Section 1102.201, Occupations Code, is amended
to read as follows:
Sec. 1102.201. LICENSE TERM AND EXPIRATION. (a) The
commission may issue or renew a license for a period not to exceed
24 months.
(b) A renewal fee for a license [issued] under this chapter
may not exceed, calculated on an annual basis, the amount of the fee
established under Section 1102.251. [expires on the first
anniversary of the date of issuance.]
SECTION 13. Subsection (a), Section 1102.364, Occupations
Code, is amended to read as follows:
(a) Each inspector shall provide notice to consumers and
service recipients of the availability of payment from the fund for
aggrieved persons:
(1) on a written contract for the inspector's
services;
(2) on a brochure that the inspector distributes;
(3) on a sign prominently displayed in the inspector's
place of business; [or]
(4) in a bill or receipt for the inspector's services;
or
(5) in a prominent display on the Internet website of a
person regulated under this chapter.
SECTION 14. Subsections (a) and (b), Section 1101.553,
Occupations Code, are repealed.
SECTION 15. This Act takes effect September 1, 2003.
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