|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
|
relating to the regulation of the sale and inspection of real estate |
|
and residential service contracts. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 1101.005, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1101.005. APPLICABILITY OF CHAPTER. This chapter |
|
does not apply to: |
|
(1) an attorney licensed in any state; |
|
(2) an attorney-in-fact authorized under a power of |
|
attorney to conduct a real estate transaction; |
|
(3) a public official while engaged in official |
|
duties; |
|
(4) an auctioneer licensed under Chapter 1802 while |
|
conducting the sale of real estate by auction if the auctioneer does |
|
not perform another act of a broker or salesperson; |
|
(5) a person conducting a real estate transaction |
|
[acting] under a court order or the authority of a will or written |
|
trust instrument; |
|
(6) a person employed by an owner in the sale of |
|
structures and land on which structures are located if the |
|
structures are erected by the owner in the course of the owner's |
|
business; |
|
(7) an on-site manager of an apartment complex; |
|
(8) an owner or the owner's employee who leases the |
|
owner's improved or unimproved real estate; |
|
(9) a partnership or limited liability partnership |
|
acting as a broker or salesperson through a partner who is a |
|
licensed broker; or |
|
(10) a transaction involving: |
|
(A) the sale, lease, or transfer of a mineral or |
|
mining interest in real property; |
|
(B) the sale, lease, or transfer of a cemetery |
|
lot; |
|
(C) the lease or management of a hotel or motel; |
|
or |
|
(D) the sale of real property under a power of |
|
sale conferred by a deed of trust or other contract lien. |
|
SECTION 2. Section 1101.057(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) It is a ground for removal from the commission that a |
|
member: |
|
(1) does not have at the time of appointment the |
|
qualifications required by Section 1101.051(a) or (b) or 1101.052; |
|
(2) does not maintain during service on the commission |
|
the qualifications required by Section 1101.051(a) or (b) or |
|
1101.052; |
|
(3) violates a prohibition established by Section |
|
1101.053; |
|
(4) cannot[, because of illness or disability,] |
|
discharge the member's duties for a substantial part of the member's |
|
term; or |
|
(5) is absent from more than half of the regularly |
|
scheduled commission meetings that the member is eligible to attend |
|
during each calendar year, unless the absence is excused by |
|
majority vote of the commission. |
|
SECTION 3. Section 1101.152(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The commission shall adopt rules to charge and collect |
|
reasonable fees, including a fee for [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]; |
|
(4) [for] annual renewal of a salesperson license[,
|
|
not more than $50]; |
|
(5) [for] annual registration[, $80]; |
|
(6) filing [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) [for] preparing a license or registration |
|
history[, not more than $20]; [and] |
|
(15) [for] filing an application for a moral character |
|
determination; and |
|
(16) conducting a criminal history check for issuing |
|
or renewing a license[, not more than $50]. |
|
SECTION 4. Section 1101.302(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) An educational institution shall maintain a corporate |
|
surety bond or other security acceptable to the commission that is: |
|
(1) in the amount of $20,000 [$10,000]; |
|
(2) payable to the commission; and |
|
(3) for the benefit of a party who suffers damages |
|
caused by the failure of the institution to fulfill obligations |
|
related to the commission's approval. |
|
SECTION 5. Subchapter H, Chapter 1101, Occupations Code, is |
|
amended by adding Section 1101.3521 to read as follows: |
|
Sec. 1101.3521. CRIMINAL HISTORY RECORD INFORMATION |
|
REQUIREMENT FOR LICENSE. (a) The commission shall require that an |
|
applicant for a license or renewal of an unexpired license submit a |
|
complete and legible set of fingerprints, on a form prescribed by |
|
the commission, to the commission or to the Department of Public |
|
Safety for the purpose of obtaining criminal history record |
|
information from the Department of Public Safety and the Federal |
|
Bureau of Investigation. |
|
(b) The commission shall refuse to issue a license to or |
|
renew the license of a person who does not comply with the |
|
requirement of Subsection (a). |
|
(c) The commission shall conduct a criminal history check of |
|
each applicant for a license or renewal of a license using |
|
information: |
|
(1) provided by the individual under this section; and |
|
(2) made available to the commission by the Department |
|
of Public Safety, the Federal Bureau of Investigation, and any |
|
other criminal justice agency under Chapter 411, Government Code. |
|
(d) The commission may: |
|
(1) enter into an agreement with the Department of |
|
Public Safety to administer a criminal history check required under |
|
this section; and |
|
(2) authorize the Department of Public Safety to |
|
collect from each applicant the costs incurred by the department in |
|
conducting the criminal history check. |
|
SECTION 6. Section 1101.356(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) An applicant for a broker license must provide to the |
|
commission satisfactory evidence that the applicant: |
|
(1) has had at least two years of active experience in |
|
this state as a license holder during the 36 months preceding the |
|
date the application is filed; and |
|
(2) has successfully completed at least 60 semester |
|
hours, or equivalent classroom hours, of postsecondary education, |
|
including: |
|
(A) at least 18 semester hours or equivalent |
|
classroom hours of core real estate courses, two semester hours of |
|
which must be real estate brokerage; and |
|
(B) at least 42 hours of core real estate courses |
|
or related courses accepted by the commission. |
|
SECTION 7. Subchapter J, Chapter 1101, Occupations Code, is |
|
amended by adding Section 1101.4521 to read as follows: |
|
Sec. 1101.4521. CRIMINAL HISTORY RECORD INFORMATION FOR |
|
RENEWAL. An applicant for the renewal of an unexpired license must |
|
comply with the criminal history record check requirements of |
|
Section 1101.3521. |
|
SECTION 8. Section 1101.455, Occupations Code, is amended |
|
by adding Subsection (k) to read as follows: |
|
(k) Notwithstanding the number of hours required by |
|
Subsection (e), a member of the legislature licensed under this |
|
chapter is only required to complete three hours of continuing |
|
education on the legal topics under Subsection (e). |
|
SECTION 9. Section 1101.652(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The commission may suspend or revoke a license issued |
|
under this chapter or take other disciplinary action authorized by |
|
this chapter if the license holder: |
|
(1) enters a plea of guilty or nolo contendere to or is |
|
convicted of a felony in which fraud is an essential element, and |
|
the time for appeal has elapsed or the judgment or conviction has |
|
been affirmed on appeal, without regard to an order granting |
|
community supervision that suspends the imposition of the sentence; |
|
(2) procures or attempts to procure a license under |
|
this chapter for the license holder or a salesperson by fraud, |
|
misrepresentation, or deceit or by making a material misstatement |
|
of fact in an application for a license; |
|
(3) engages in misrepresentation, dishonesty, or |
|
fraud when selling, buying, trading, or leasing real property in |
|
the name of: |
|
(A) the license holder; |
|
(B) the license holder's spouse; or |
|
(C) a person related to the license holder within |
|
the first degree by consanguinity; |
|
(4) fails to honor, within a reasonable time, a check |
|
issued to the commission after the commission has sent by certified |
|
mail a request for payment to the license holder's last known |
|
business address according to commission records; |
|
(5) fails or refuses to produce on request, for |
|
inspection by the commission or a commission representative, a |
|
document, book, or record that is in the license holder's |
|
possession and relates to a real estate transaction conducted by |
|
the license holder; |
|
(6) fails to provide, within a reasonable time, |
|
information requested by the commission that relates to a formal or |
|
informal complaint to the commission that would indicate a |
|
violation of this chapter; |
|
(7) fails to surrender to the owner, without just |
|
cause, a document or instrument that is requested by the owner and |
|
that is in the license holder's possession; |
|
(8) fails to use a contract form required by the |
|
commission under Section 1101.155; |
|
(9) fails to notify the commission, not later than the |
|
30th day after the date of a final conviction or the entry of a plea |
|
of guilty or nolo contendere, that the person has been convicted of |
|
or entered a plea of guilty or nolo contendere to a felony or a |
|
criminal offense involving fraud; or |
|
(10) disregards or violates this chapter. |
|
SECTION 10. Section 1101.655(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The commission may revoke a license, approval, or |
|
[certificate of] registration issued under this chapter or Chapter |
|
1102 if the commission makes a payment from the real estate recovery |
|
trust account to satisfy all or part of a judgment against the |
|
license or registration [certificate] holder. |
|
SECTION 11. Section 1102.111, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1102.111. SUBSTITUTE REQUIREMENTS. (a) The |
|
commission by rule shall provide for substitution of relevant |
|
experience and [or] additional education in place of: |
|
(1) the number of real estate inspections required for |
|
licensing; and |
|
(2) the requirement that an applicant be: |
|
(A) licensed as an apprentice inspector before |
|
being licensed as a real estate inspector; or |
|
(B) licensed as a real estate inspector before |
|
being licensed as a professional inspector. |
|
(b) Rules adopted under Subsection (a) may not require an |
|
applicant to: |
|
(1) complete more than 320 additional classroom hours |
|
of core real estate inspection courses; or |
|
(2) have more than seven years of relevant experience. |
|
SECTION 12. Sections 1102.402(a) and (c), Occupations Code, |
|
are amended to read as follows: |
|
(a) The commission may revoke a [the] license issued under |
|
this chapter or a license, approval, or registration issued under |
|
Chapter 1101 [of an inspector] if the commission makes a payment |
|
from the real estate inspection recovery fund to satisfy all or part |
|
of a judgment against the person issued the license, approval, or |
|
registration [inspector]. |
|
(c) A person [whose license is revoked under this section] |
|
is not eligible for a [new] 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. |
|
SECTION 13. Section 1303.302, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1303.302. CERTAIN CONDITIONAL SALES OF PROPERTY |
|
PROHIBITED. (a) A seller of a residential property or the buyer's |
|
or seller's agent may not condition the sale of the property on the |
|
buyer's purchase of a residential service contract. |
|
(b) A seller of a residential property or the buyer's or |
|
seller's agent shall provide to the buyer a statement that clearly |
|
and conspicuously states that: |
|
(1) the purchase of a residential service contract is |
|
optional; and |
|
(2) the buyer may purchase similar coverage through |
|
another residential service company or insurance company |
|
authorized to engage in business in this state. |
|
SECTION 14. Sections 1102.1035 and 1102.2051, Occupations |
|
Code, are repealed. |
|
SECTION 15. Not 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), Occupations |
|
Code, as amended by this Act. |
|
SECTION 16. Not later than January 1, 2008, the Texas Real |
|
Estate Commission shall adopt rules as required by Section |
|
1101.152, Occupations Code, as amended by this Act. |
|
SECTION 17. (a) The change in law made by this Act to |
|
Section 1101.356(a), Occupations Code, applies only to a license |
|
application filed on or after January 1, 2008. A license |
|
application filed before that date is covered by the law in effect |
|
at the time the application was filed, and the former law is |
|
continued in effect for that purpose. |
|
(b) The requirement that a person applying for or renewing a |
|
license under Chapter 1101, Occupations Code, must submit to a |
|
criminal history check under Sections 1101.3521 and 1101.4521, |
|
Occupations Code, as added by this Act, applies only to an |
|
application filed on or after January 1, 2008. |
|
SECTION 18. This Act takes effect September 1, 2007. |
|
|
|
* * * * * |