BILL ANALYSIS
Licensing & Administrative Procedures
Committee Report (Substituted)
BACKGROUND AND PURPOSE
The Texas Real Estate Commission regulates real estate brokers, salespersons, inspectors, and right-of-way agents. Each session the commission makes an effort to improve and update statutory powers involving the regulation of real estate licensees, inspection & right-of-way agents. C.S.H.B. 1530 is primarily a house-keeping bill that addresses educational requirements, application procedures, training of instructors, and other regulatory matters.
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
CSHB 1530 amends the Occupations Code, to provide that a person conducting a real estate transaction under a court order or the authority of a will or trust is not subject to the Real Estate License Act; removes illness or disability from the list of reasons for the removal of a commission member; permits a commission employee to open a complaint when a person fails to pay the fee and complete the required continuing education and when a person fails to timely provide information as requested by the commission in connection with a renewal application or as required under Section 1101.652(a)(9).
CSHB 1530 increases the surety bond requirement for an educational institution from 10,000 to $20,000; requires an applicant for a broker license to complete 2 semester hours of real estate brokerage as part of the 18 semester hours of core real estate courses required for a broker’s license.
CSHB 1530 allows a member of the legislature licensed under Chapter 1101, Occupations Code, to receive credit for legislative service in lieu of three of the six hours of the mandatory continuing education on legal topic as required under Section 1101.455.
CSHB 1530 allows the commission to take disciplinary action against a license holder if he or she fails to timely notify the commission that he or she has entered a guilty or nolo contendere plea to a felony or a criminal offense involving fraud; and allows the commission to revoke a license, approval, or registration issued under Chapters 1101 or 1102 if the commission makes a payment from the real estate recovery trust account to satisfy a judgment against the license or registration holder.
CSHB 1530 removes the clause “because of illness or disability” from the provision that permits the commission to remove a committee member if the member cannot fulfill his or her duties for a substantial period of time.
CSHB 1530 requires the Texas Real Estate Commission to provide for the substitution of relevant experience and additional education in lieu of the number of inspections and previous licensure requirements; prohibits from requiring an applicant to complete more than 320 additional classroom hours of core real estate inspection courses or have more than 7 years of relevant experience.
CSHB 1530 authorizes the commission to revoke a license issued under Chapter 1102 or a license, approval, or registration issued under Chapter 1101 if the commission makes a payment from the real estate inspection recovery fund to satisfy a judgment against the person issued the license, approval, or registration. A person is not eligible for a license until the person has repaid in full the amount paid from the fund on the person's account, plus interest at the legal rate.
CSHB 1530 adds the buyer’s agent to the list of persons subject to the provisions for the certain conditional sales of property prohibited.
CSHB 1530 repeals Sections 1102.1035 and 1102.2051 of the Occupations Code.
CSHB 1530 stipulates that no later than January 1, 2008 an educational institution that maintains a bond under Section 1101.302(b), Occupations Code, on the effective date of this Act shall obtain a bond in the amount required by Section 1101.302(b) of the Occupations Code.
Changes in law made to Section 1101.356(a), Occupations Code applies only to a license application filed on or after January 1, 2008.
EFFECTIVE DATE
September 1, 2007.
COMPARISON OF ORIGINAL TO SUBSTITUTE
C.S.H.B. 1530 modifies the original by adding a new section that allows a member of the legislature licensed under Chapter 1101, Occupations Code, to receive credit for legislative service in lieu of three of the six hours of the mandatory continuing education on legal topic as required under Section 1101.455. The substitute authorizes the Texas Real Estate Commission to provide for the substitution of education and relevant experience, instead of education or relevant experience, in lieu of the number of inspections and previous licensure requirements for licensing. Makes conforming changes.