Bill Text: TX SB1171 | 2011-2012 | 82nd Legislature | Comm Sub


Bill Title: Relating to practices and professions regulated by the Texas Appraiser Licensing and Certification Board.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-04-07 - Committee report printed and distributed [SB1171 Detail]

Download: Texas-2011-SB1171-Comm_Sub.html
 
 
  By: Carona  S.B. No. 1171
         (In the Senate - Filed March 4, 2011; March 16, 2011, read
  first time and referred to Committee on Business and Commerce;
  April 7, 2011, reported favorably by the following vote:  Yeas 7,
  Nays 0; April 7, 2011, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to practices and professions regulated by the Texas
  Appraiser Licensing and Certification Board.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1103.002, Occupations Code, is amended
  to read as follows:
         Sec. 1103.002.  PURPOSE. The purpose of this chapter is to:
               (1)  conform state law relating to the regulation of
  real estate appraisers to the requirements adopted under Title XI,
  Financial Institutions Reform, Recovery, and Enforcement Act of
  1989; and
               (2)  enforce standards for the appraisal of real
  property.
         SECTION 2.  Subdivision (1), Section 1103.003, Occupations
  Code, is amended to read as follows:
               (1)  "Appraisal" means, regardless of whether prepared
  for a federally related transaction:
                     (A)  an opinion [estimate] of value; or
                     (B)  the act or process of developing an opinion
  of [estimating] value.
         SECTION 3.  Subsection (b), Section 1103.004, Occupations
  Code, is amended to read as follows:
         (b)  This chapter does not prohibit:
               (1)  a person authorized by law from performing an
  evaluation of real property for or providing an evaluation of real
  property to another person; or
               (2)  [a real estate broker or salesperson licensed
  under Chapter 1101 but not certified or licensed under this chapter
  from performing an appraisal in a transaction other than a
  federally related transaction;
               [(3)     the requirement that a person who is not
  certified or licensed under this chapter be licensed as a real
  estate broker or salesperson to perform an appraisal in a
  transaction other than a federally related transaction; or
               [(4)]  a real estate broker [or salesperson] licensed
  under Chapter 1101 or a salesperson acting under the authority of a
  sponsoring broker from providing to another person a written
  analysis, [giving an] opinion, or conclusion relating to the
  estimated price of real property if the analysis, [if the] opinion,
  or conclusion:
                     (A)  is not referred to as an appraisal; [and]
                     (B)  is given in the ordinary course of the
  broker's or salesperson's business; and
                     (C)  is related to the actual or potential
  acquisition, disposition, encumbrance, or management of an
  interest in [to:
                           [(i)     a potential seller or third party
  regarding the recommended listing price of real property; or
                           [(ii)     a potential purchaser or third party
  regarding the recommended purchase price of] real property.
         SECTION 4.  Subsection (b), Section 1103.101, Occupations
  Code, is amended to read as follows:
         (b)  The board may delegate to the commissioner the
  responsibility for administering this chapter, including the
  approval of consent orders and agreements.
         SECTION 5.  Section 1103.151, Occupations Code, is amended
  to read as follows:
         Sec. 1103.151.  RULES RELATING TO CERTIFICATES AND LICENSES.
  The board may adopt:
               (1)  rules for certifying or licensing an appraiser or
  approving an appraiser trainee in this state that are in accordance
  with this chapter and consistent with applicable federal law;
               (2)  rules relating to the education and experience
  required for certifying or licensing an appraiser or approving an
  appraiser trainee that are consistent with the guidelines
  recognized by the Appraiser Qualifications Board;
               (3)  rules relating to the examination required by
  Subchapter F; and
               (4)  rules relating to procedures for the timely
  renewal of a certificate, [or] license, or trainee approval.
         SECTION 6.  Subsection (a), Section 1103.156, Occupations
  Code, is amended to read as follows:
         (a)  The board may establish reasonable fees to administer
  this chapter, including:
               (1)  an application fee for a certificate or license;
               (2)  an examination fee;
               (3)  a renewal fee for a certificate or license;
               (4)  a registration fee for a nonresident real estate
  appraiser;
               (5)  an application fee for an appraiser trainee;
               (6)  a [an annual] renewal fee for an appraiser
  trainee;
               (7)  a fee for filing a request for a return to active
  status; and
               (8)  other appropriate fees.
         SECTION 7.  Subchapter D, Chapter 1103, Occupations Code, is
  amended by adding Sections 1103.157 and 1103.158 to read as
  follows:
         Sec. 1103.157.  GIFTS, GRANTS, AND DONATIONS. The board may
  solicit, accept, and administer gifts, grants, and donations of any
  kind from any public or private source for the purposes of this
  chapter.
         Sec. 1103.158.  EXPERT WITNESS TESTIMONY BY BOARD MEMBER.  
  Notwithstanding Section 572.051, Government Code, a board member
  may testify as an expert witness in an action concerning a violation
  of the Uniform Standards of Professional Appraisal Practice.
         SECTION 8.  Section 1103.201, Occupations Code, is amended
  to read as follows:
         Sec. 1103.201.  CERTIFICATE OR LICENSE REQUIRED. (a)  A
  [Unless the person is certified under this chapter, a] person may
  not perform an appraisal of real estate unless the person is
  licensed or certified as an appraiser under this chapter,
  registered as a temporary out-of-state appraiser under this
  chapter, or acting as an appraiser trainee under the sponsorship of
  a certified appraiser.[:
               [(1)     use the title "state-certified real estate
  appraiser"; or
               [(2)     refer to an appraisal prepared by the person as a
  "certified appraisal."]
         (b)  Unless the person holds the appropriate license or
  certification [is licensed under this chapter], a person may not:
               (1)  use the title "state-certified real estate
  appraiser" or "state-licensed real estate appraiser"; or
               (2)  refer to an appraisal performed [prepared] by the
  person as a "certified appraisal" or "licensed appraisal."
         SECTION 9.  Subchapter E, Chapter 1103, Occupations Code, is
  amended by adding Section 1103.2015 to read as follows:
         Sec. 1103.2015.  GENERAL APPLICATION REQUIREMENTS.  An
  applicant for a license or certificate issued under this chapter
  shall provide the board with the applicant's current mailing
  address, telephone number, and e-mail address, if available.
         SECTION 10.  Subsection (b), Section 1103.206, Occupations
  Code, is amended to read as follows:
         (b)  The board shall adopt a reliable method to verify the
  evidence of appraisal experience submitted by an applicant for a
  certificate or license. The method must include the review of
  appraisal experience of all applicants for certification and must
  rely on appropriate sampling techniques that are applied to not
  more than five percent of the license applications received by the
  board. An applicant whose application is selected for verification
  has at least 60 days after the date of selection to prepare any
  records requested by the board. The board may not require the
  applicant to provide more information than the information the
  board may obtain under Section 1103.207.
         SECTION 11.  Subsections (a), (e), (f), and (g), Section
  1103.209, Occupations Code, are amended to read as follows:
         (a)  The board shall [may] issue a reciprocal certificate or
  license to an applicant from another state if:
               (1)  the appraiser licensing and certification program
  of the other state is in compliance with 12 U.S.C. Section 3331 et
  seq.;
               (2)  the appraiser holds a valid license or certificate
  from a state whose requirements for licensure or certification meet
  or exceed the licensure or certification requirements of this
  state; and
               (3)  the appraiser satisfies the board as to the
  appraiser's honesty, trustworthiness, and integrity [under terms
  adopted by the board to an applicant who is certified or licensed
  under the laws of another state having certification or licensing
  requirements that the board determines have not been disapproved by
  the Appraiser Qualifications Board.     The terms must comply with the
  minimum criteria for obtaining a certificate or license recognized
  by the Appraiser Qualifications Board].
         (e)  An applicant for a certificate or license under this
  chapter who is not a resident of this state must submit with the
  application an irrevocable consent that states that service of
  process in an action against the applicant arising out of the
  applicant's activities as a certified or licensed appraiser in this
  state may be made by delivery of the process to the commissioner if
  the plaintiff in the action, using due diligence, cannot obtain
  personal service on the applicant. If process is served as provided
  by this subsection, the commissioner shall immediately send a copy
  of the material served on the commissioner [by regular mail] to the
  certified or licensed appraiser at the appraiser's address of
  record [principal place of business and residence address].
         (f)  The board shall request verification from the state in
  which the applicant is certified or licensed to confirm that the
  applicant's certificate or license is valid, active, and in good
  standing. The board may not issue a reciprocal certificate or
  license without that verification.
         (g)  A reciprocal certificate or license expires on the
  second anniversary of the last day of the month in which it was
  [earlier of:
               [(1)     the expiration date of the certificate or license
  held by the applicant in the state in which the applicant is
  certified or licensed; or
               [(2)     the first anniversary of the date the reciprocal
  certificate or license is] issued.
         SECTION 12.  Subchapter E, Chapter 1103, Occupations Code,
  is amended by adding Section 1103.2091 to read as follows:
         Sec. 1103.2091.  PROBATIONARY CERTIFICATE, LICENSE, OR
  TRAINEE APPROVAL. (a)  The board may issue a probationary
  certificate or license or approve an appraiser trainee on a
  probationary basis.
         (b)  The board by rule shall adopt reasonable terms for
  issuing a probationary certificate or license and for approval of
  an appraiser trainee on a probationary basis.
         (c)  A person who holds a probationary certificate or license
  or who is approved as an appraiser trainee under this section must
  disclose the probationary status to all clients before accepting an
  assignment.
         SECTION 13.  Subchapter E, Chapter 1103, Occupations Code,
  is amended by adding Section 1103.2111 to read as follows:
         Sec. 1103.2111.  LATE RENEWAL OF CERTIFICATE, LICENSE, OR
  TRAINEE APPROVAL. (a)  A person whose certificate, license, or
  approval has been expired for 90 days or less may renew the
  certificate, license, or approval by paying to the board a fee equal
  to 1-1/2 times the required renewal fee.  If a certificate, license,
  or approval has been expired for more than 90 days but less than six
  months, the person may renew the certificate, license, or approval
  by paying to the board a fee equal to two times the required renewal
  fee.
         (b)  A certificate, license, or approval that is renewed
  under this section shall expire on the date that would apply had the
  certificate, license, or approval been timely renewed.
         (c)  A person may not perform an appraisal in a federally
  related transaction while the person is not actively licensed or
  certified as an appraiser.
         (d)  If a person's certificate, license, or approval has been
  expired six months or longer, the person may not renew the
  certificate, license, or approval. The person may obtain a new
  certificate, license, or approval by complying with the
  requirements and procedures for an original application.
         SECTION 14.  Subsection (b), Section 1103.258, Occupations
  Code, is amended to read as follows:
         (b)  An applicant who fails the examination three
  consecutive times may not apply for reexamination or submit a new
  license application unless the applicant submits evidence
  satisfactory to the board that the applicant has completed
  additional education, as prescribed by the board, since the date
  the applicant last took the examination [has not successfully
  completed the examination before the first anniversary of the date
  the application was initially accepted by the board must submit a
  new application and pay the required application fee].
         SECTION 15.  Subchapter G, Chapter 1103, Occupations Code,
  is amended by adding Section 1103.304 to read as follows:
         Sec. 1103.304.  EXTENSION OF REGISTRATION. A person may
  obtain a 90-day extension of a temporary registration under this
  subchapter by completing an extension form approved by the board
  and paying any required fee. The board may grant only one extension
  for each temporary registration.
         SECTION 16.  Subchapter H, Chapter 1103, Occupations Code,
  is amended by adding Section 1103.356 to read as follows:
         Sec. 1103.356.  RENEWAL OF APPRAISER TRAINEE APPROVAL. A
  person may renew an approval as an appraiser trainee by:
               (1)  paying the renewal fee established by the board;
               (2)  providing evidence satisfactory to the board of
  completion of any required continuing education; and
               (3)  meeting any other renewal requirement established
  by the board.
         SECTION 17.  The heading to Section 1103.403, Occupations
  Code, is amended to read as follows:
         Sec. 1103.403.  CONTACT INFORMATION [OFFICE LOCATION].
         SECTION 18.  Subsection (b), Section 1103.403, Occupations
  Code, is amended to read as follows:
         (b)  Not later than the 10th day after the date an [a
  certified or licensed] appraiser changes the appraiser's address,
  e-mail address, or telephone number [moves from a previously
  designated address], the appraiser shall:
               [(1)]  notify the board of the change [new office
  location on a form prescribed by the board;] and
               [(2)]  pay any required [a] fee [set by the board].
         SECTION 19.  Subchapter K, Chapter 1103, Occupations Code,
  is amended by adding Sections 1103.5011 and 1103.5012 to read as
  follows:
         Sec. 1103.5011.  NOTICE OF VIOLATION AND PENALTY. (a)  The
  commissioner may send an appraiser against whom a complaint has
  been filed a notice of violation including:
               (1)  a summary of the alleged violation;
               (2)  the recommended sanction, including the amount of
  any administrative penalty sought; and
               (3)  a conspicuous notice that the respondent has the
  right to a hearing to contest the alleged violation, the
  recommended sanction, or both.
         (b)  Not later than the 20th day after the date the person
  receives the notice under Subsection (a), the person may:
               (1)  accept the commissioner's determination,
  including the recommended sanction; or
               (2)  request in writing a hearing, to be held under
  Chapter 2001, Government Code, on the occurrence of the violation,
  the sanction, or both.
         Sec. 1103.5012.  PENALTY TO BE PAID OR HEARING REQUESTED. If
  the person accepts the commissioner's determination, or fails to
  respond in a timely manner to the notice, the board by order shall
  approve the determination and order payment of the recommended
  penalty, impose the recommended sanction, or both.
         SECTION 20.  Section 1103.518, Occupations Code, is amended
  to read as follows:
         Sec. 1103.518.  ACTION AFTER HEARING. On conclusion of a
  contested case hearing and on submission of all written responses
  allowed under Section 1103.515, the administrative law judge shall:
               (1)  make findings of fact and conclusions of law; and
               (2)  issue to the board a proposal for decision that the
  board take one or more of the following actions:
                     (A)  dismiss the charges[, including issuing an
  order declaring that the case file is confidential];
                     (B)  suspend or revoke the appraiser's
  certificate or license or the appraiser trainee's approval;
                     (C)  impose a period of probation with or without
  conditions;
                     (D)  require the appraiser to submit to
  reexamination for a certificate or license;
                     (E)  require the appraiser or appraiser trainee to
  participate in additional professional education or continuing
  education;
                     (F)  issue a public or private reprimand or a
  warning;
                     (G)  issue a consent order; or
                     (H)  impose an administrative penalty as
  prescribed by Section 1103.552.
         SECTION 21.  Section 1103.522, Occupations Code, is amended
  to read as follows:
         Sec. 1103.522.  REINSTATEMENT OF CERTIFICATE OR LICENSE.
  [(a)]  A person whose certificate or license has been [suspended
  or] revoked or a person who has surrendered a certificate or license
  issued by the board may not apply to the board for reinstatement
  until the second anniversary of the date of [as provided by the
  order of suspension or] revocation or surrender.
         [(b)     If the order does not establish terms for
  reinstatement, the appraiser may not:
               [(1)     make an initial application for reinstatement
  until the first anniversary of the effective date of the order; or
               [(2)     make subsequent applications more often than once
  every two years.]
         SECTION 22.  Subchapter L, Chapter 1103, Occupations Code,
  is amended by adding Section 1103.5511 to read as follows:
         Sec. 1103.5511.  TEMPORARY SUSPENSION. (a)  The presiding
  officer of the board shall appoint a disciplinary panel consisting
  of three board members to determine whether a person's license or
  certification to practice under this chapter should be temporarily
  suspended.
         (b)  If the disciplinary panel determines from the
  information presented to the panel that a person licensed or
  certified to practice under this chapter would, by the person's
  continued practice, constitute a continuing threat to the public
  welfare, the panel shall temporarily suspend the license or
  certification of that person.
         (c)  A license or certification may be suspended under this
  section without notice or hearing on the complaint if:
               (1)  institution of proceedings for a contested case
  hearing is initiated simultaneously with the temporary suspension;
  and
               (2)  a hearing is held under Chapter 2001, Government
  Code, and this chapter as soon as possible.
         (d)  A temporary suspension under this section automatically
  expires after 45 days if the board has not scheduled a hearing to
  take place within that time or if, at the board's request, the
  hearing is continued beyond the 45th day.
         (e)  Notwithstanding Chapter 551, Government Code, the
  disciplinary panel may hold a meeting by telephone conference call
  if immediate action is required and convening the panel at one
  location is inconvenient for any member of the panel.
         SECTION 23.  Section 1103.552, Occupations Code, is amended
  to read as follows:
         Sec. 1103.552.  ADMINISTRATIVE PENALTY. (a)  The board may
  impose an administrative penalty for a violation of this chapter or
  a rule adopted or order issued by the board under this chapter
  [Section 1103.518(2)(H)] in an amount not to exceed:
               (1)  $1,500 for each violation; or
               (2)  $5,000 for multiple violations [proved] in a
  single [one contested] case.
         (b)  The person on whom the penalty is imposed shall pay the
  penalty not later than the 20th day after the date the order
  imposing the penalty becomes [of the] final [disposition of the
  contested case].
         SECTION 24.  Section 1103.208 and Subsection (b), Section
  1103.209, Occupations Code, are repealed.
         SECTION 25.  The change in law made by this Act to Subsection
  (b), Section 1103.209, Occupations Code, applies only to an
  application for a reciprocal certificate or license that is
  submitted on or after the effective date of this Act.  An
  application submitted before the effective date of this Act is
  governed by the law in effect on the date the application is
  submitted, and the former law is continued in effect for that
  purpose.
         SECTION 26.  The change in law made by Section 1103.2111,
  Occupations Code, as added by this Act, applies to the renewal of a
  certificate, license, or approval that expires on or after the
  effective date of this Act. A certificate, license, or approval
  that expires before the effective date of this Act is governed by
  the law in effect on the date the certificate, license, or approval
  expired, and the former law is continued in effect for that purpose.
         SECTION 27.  The change in law made by Sections 1103.5011 and
  1103.5012, Occupations Code, as added by this Act, applies only to a
  complaint filed on or after the effective date of this Act. A
  complaint filed before that date is governed by the law in effect on
  the date the complaint was filed, and the former law is continued in
  effect for that purpose.
         SECTION 28.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2011.
 
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