Bill Text: TX SB1296 | 2013-2014 | 83rd Legislature | Engrossed

---

Bill Title: Relating to the regulation of real estate inspectors; changing fees.

Sponsorship: Partisan Bill (Republican 2)

Status: (Engrossed - Dead) 2013-05-21 - Postponed [SB1296 Detail]

Download: Texas-2013-SB1296-Engrossed.html

---

By: Taylor S.B. No. 1296

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of real estate inspectors; changing
fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 1102, Occupations Code, is
amended by adding Section 1102.1051 to read as follows:
Sec. 1102.1051. 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 2. 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 40 [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];
(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 3. Section 1102.110, Occupations Code, is amended
to read as follows:
Sec. 1102.110. ELIGIBILITY OF PREVIOUS LICENSE HOLDERS.
(a) Notwithstanding Section 1102.108, an applicant is eligible
for and has satisfied all requirements for a real estate inspector
license if the applicant:
(1) held a real estate inspector license during the
24-month period preceding the date the application is filed;
(2) is sponsored by a professional inspector; [and]
(3) satisfies the commission as to the applicant's
honesty, trustworthiness, and integrity; and
(4) submits evidence satisfactory to the commission of
successful completion of not less than the number of hours of
continuing education courses that would have been required for the
applicant to renew the license described by Subdivision (1).
(b) Notwithstanding Section 1102.109, an applicant is
eligible for and has satisfied all requirements for a professional
inspector license if the applicant:
(1) held a professional inspector license during the
24-month period preceding the date the application is filed; [and]
(2) satisfies the commission as to the applicant's
honesty, trustworthiness, and integrity; and
(3) submits evidence satisfactory to the commission of
successful completion of not less than the number of hours of
continuing education courses that would have been required for the
applicant to renew the license described by Subdivision (1).
SECTION 4. 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:
(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 5. Section 1102.114, Occupations Code, is amended
to read as follows:
Sec. 1102.114. ISSUANCE OF LICENSE. The commission shall
issue the appropriate license to an applicant who:
(1) meets the required qualifications; and
(2) submits [pays the fee required by Section
1102.352(a); and
[(3) offers] proof of financial responsibility as
required by Section 1102.1141 [that the applicant carries liability
insurance with a minimum limit of $100,000 per occurrence to
protect the public against a violation of Subchapter G].
SECTION 6. Subchapter C, Chapter 1102, Occupations Code, is
amended by adding Section 1102.1141 to read as follows:
Sec. 1102.1141. FINANCIAL RESPONSIBILITY REQUIREMENT.
(a) An inspector must maintain financial responsibility in the
form of:
(1) a liability insurance policy with a minimum limit
of $100,000 per occurrence and an aggregate annual total of at least
$100,000, and that:
(A) is written by an insurer authorized to engage
in the business of insurance in this state, a risk retention group
as defined by Chapter 2201, Insurance Code, or an eligible surplus
lines insurer, as defined by Section 981.002, Insurance Code; and
(B) specifically provides for professional
liability coverage to protect the public against a violation of
Subchapter G; or
(2) a bond or other security accepted by the
commission.
(b) A bond posted as security under Subsection (a)(2) must:
(1) be issued by a carrier admitted in this state;
(2) be in an amount not less than $100,000;
(3) be continuous; and
(4) be cancellable by the surety only after the surety
has provided at least 90 days' written notice to the commission
before the effective date of the cancellation.
(c) Any security provided under this section in a form other
than a bond must be convertible to cash by the commission for the
benefit of a person who contracts with an inspector in this state,
without requiring approval of a court, if the commission determines
that the inspector has violated Subchapter G. Any amount remaining
after an inspector's license has expired shall be returned to the
inspector not later than the 180th day after the date the license
expires.
(d) An inspector who posts a bond or other security under
this section must designate an unaffiliated third party to handle
the processing of any claim regarding the bond or other security.
SECTION 7. Section 1102.118, Occupations Code, is amended
to read as follows:
Sec. 1102.118. CONTACT INFORMATION [CHANGE OF ADDRESS].
(a) An inspector shall provide the commission with a current
mailing address, telephone number, and, if available, e-mail
address.
(b) Not later than the 30th day after the date of a change in
the mailing address, telephone number, or e-mail address of an
inspector [changes the inspector's place of business], the
inspector shall notify the commission of the change and pay any
[the] required fee.
SECTION 8. Section 1102.153, Occupations Code, is amended
to read as follows:
Sec. 1102.153. DEADLINE FOR COMPLETION. A license
applicant who does not satisfy the examination requirement before
the first anniversary of [within six months after] the date the
application is filed must submit a new application and pay another
examination fee to be eligible for examination.
SECTION 9. Subsection (b), Section 1102.155, Occupations
Code, is amended to read as follows:
(b) An applicant who fails the examination three
consecutive times [in connection with the same application] may not
apply for reexamination or submit a new license application unless
[before six months] after the date of the third failed examination
the applicant completes additional educational requirements as
prescribed by the commission and submits evidence satisfactory to
the commission of successful completion of those requirements.
SECTION 10. Section 1102.202, Occupations Code, is amended
to read as follows:
Sec. 1102.202. NOTICE OF LICENSE EXPIRATION. Not later
than the 31st day before the expiration date of a person's license,
the commission shall provide notice of the expiration [send] to the
person [at the person's last known address according to the
commission's records written notice of the license expiration].
SECTION 11. Section 1102.203, Occupations Code, is amended
to read as follows:
Sec. 1102.203. RENEWAL OF LICENSE; INFORMATION REQUIRED.
(a) A person may renew an unexpired license by paying the required
renewal fee to the commission before the expiration date of the
license and providing proof of financial responsibility [liability
insurance] as required by Section 1102.1141 [1102.114(3)].
(a-1) A person whose license has been expired for 90 days or
less may renew the license by paying to the commission a fee equal
to 1-1/2 times the required renewal fee. If a license has been
expired for more than 90 days but less than six months, the person
may renew the license by paying to the commission a fee equal to two
times the required renewal fee.
(b) If the person's license has been expired for six months
or longer [expires], the person may not renew the license. The
person may obtain a new license by submitting to reexamination, if
required, and complying with the requirements and procedures for
obtaining an original license.
(c) Each applicant for renewal of a license must disclose to
the commission 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.
(d) The disclosure under Subsection (c) must be provided
even if an order has granted community supervision suspending the
imposition of the sentence.
SECTION 12. Subsection (c), Section 1102.402, Occupations
Code, is amended to read as follows:
(c) A person is not eligible for a license until the person
has reimbursed the commission [repaid] in full for any [the] amount
paid on the person's behalf from the real estate inspection
recovery fund or the real estate recovery trust account under
Subchapter M, Chapter 1101 [on the person's account], plus interest
at the legal rate.
SECTION 13. Subsection (b), Section 1102.403, Occupations
Code, is amended to read as follows:
(b) An administrative penalty collected under this section
[for a violation by an inspector] shall be deposited to the credit
of the general revenue [real estate inspection recovery] fund and
shall offset any amount required to be remitted to the general
revenue fund by the commission. [A penalty collected under this
section for a violation by a person who is not licensed under this
chapter or Chapter 1101 shall be deposited to the credit of the real
estate recovery trust account or the real estate inspection
recovery fund, as determined by the commission.]
SECTION 14. Subsection (d), Section 1101.603, Occupations
Code, is amended to read as follows:
(d) An administrative penalty collected under Subchapter O
for a violation by a person who is not licensed under this chapter
or Chapter 1102 shall be deposited to the credit of the trust
account [or the real estate inspection recovery fund, as determined
by the commission].
SECTION 15. The following laws are repealed:
(1) Sections 1102.252 and 1102.253, Occupations Code;
and
(2) Subchapter H, Chapter 1102, Occupations Code.
SECTION 16. (a) In this section:
(1) "Commission" means the Texas Real Estate
Commission.
(2) "Eligible inspector" means a person who holds a
real estate inspector license or professional inspector license
under Chapter 1102, Occupations Code, as of September 1, 2013.
(b) Not later than August 31, 2015, the commission shall
transfer not less than $300,000 from the real estate inspection
recovery fund to the general revenue fund.
(c) Not later than November 1, 2017, the commission shall
determine the remaining liability of the real estate inspection
recovery fund based on any pending claims for payment under former
Subchapter H, Chapter 1102, Occupations Code.
(d) After determining the remaining liability under
Subsection (c) of this section, the commission shall refund to each
eligible inspector a portion of the amount in excess of the
remaining liability of the real estate inspection recovery fund, if
the eligible inspector holds a license issued under Chapter 1102,
Occupations Code, as of the date of the refund. A refund under this
subsection may not exceed $100 per person.
(e) The commission shall transfer any money remaining in the
real estate inspection recovery fund to the general revenue fund
after paying all claims for payment from the fund and issuing
refunds under Subsection (d) of this section.
(f) Any money transferred to the general revenue fund under
this section shall offset any amount required to be remitted to the
general revenue fund by the commission.
SECTION 17. (a) Sections 1102.1051 and 1102.1141,
Occupations Code, as added by this Act, and Sections 1102.109,
1102.110, 1102.111, 1102.114, 1102.153, 1102.155, and 1102.402,
Occupations Code, as amended by this Act, apply only to an
application for an inspector license submitted to the Texas Real
Estate Commission on or after the effective date of this Act. An
application for a license submitted before that date is governed by
the law in effect on the date the application was submitted, and the
former law is continued in effect for that purpose.
(b) Sections 1102.203 and 1102.402, Occupations Code, as
amended by this Act, and Sections 1102.1051 and 1102.1141,
Occupations Code, as added by this Act, apply only to the renewal of
an inspector license that expires on or after the effective date of
this Act. A license that expires before that date is governed by
the law in effect on the date the license expires, and the former
law is continued in effect for that purpose.
(c) Sections 1102.403 and 1101.603, Occupations Code, as
amended by this Act, apply only to an administrative penalty that is
collected on or after the effective date of this Act. An
administrative penalty that is collected before the effective date
of this Act is governed by the law in effect on the date the
administrative penalty was collected, and the former law is
continued in effect for that purpose.
(d) A claim for payment from the real estate inspection
recovery fund under former Section 1102.355, Occupations Code, for
a cause of action that accrues before September 1, 2013, must be
filed before September 1, 2017.
SECTION 18. This Act takes effect September 1, 2013.