Bill Text: TX SB699 | 2015-2016 | 84th Legislature | Enrolled


Bill Title: Relating to the Texas Real Estate Commission and the regulation of certain real estate professionals.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2015-06-19 - See remarks for effective date [SB699 Detail]

Download: Texas-2015-SB699-Enrolled.html
 
 
  S.B. No. 699
 
 
 
 
AN ACT
  relating to the Texas Real Estate Commission and the regulation of
  certain real estate professionals.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 1101, Occupations Code,
  is amended to read as follows:
  CHAPTER 1101.  REAL ESTATE BROKERS AND SALES AGENTS [SALESPERSONS]
         SECTION 2.  Sections 1101.002(1), (1-a), (4), and (7),
  Occupations Code, are amended to read as follows:
               (1)  "Broker":
                     (A)  means a person who, in exchange for a
  commission or other valuable consideration or with the expectation
  of receiving a commission or other valuable consideration, performs
  for another person one of the following acts:
                           (i)  sells, exchanges, purchases, or leases
  real estate;
                           (ii)  offers to sell, exchange, purchase, or
  lease real estate;
                           (iii)  negotiates or attempts to negotiate
  the listing, sale, exchange, purchase, or lease of real estate;
                           (iv)  lists or offers, attempts, or agrees
  to list real estate for sale, lease, or exchange;
                           (v)  auctions or offers, attempts, or agrees
  to auction real estate;
                           (vi)  deals in options on real estate,
  including a lease to purchase or buying, selling, or offering to buy
  or sell options on real estate;
                           (vii)  aids or offers or attempts to aid in
  locating or obtaining real estate for purchase or lease;
                           (viii)  procures or assists in procuring a
  prospect to effect the sale, exchange, or lease of real estate;
                           (ix)  procures or assists in procuring
  property to effect the sale, exchange, or lease of real estate;
                           (x)  controls the acceptance or deposit of
  rent from a resident of a single-family residential real property
  unit; [or]
                           (xi)  provides a written analysis, opinion,
  or conclusion relating to the estimated price of real property if
  the analysis, opinion, or conclusion:
                                 (a)  is not referred to as an
  appraisal;
                                 (b)  is provided in the ordinary course
  of the person's business; and
                                 (c)  is related to the actual or
  potential management, acquisition, disposition, or encumbrance of
  an interest in real property; or
                           (xii)  advises or offers advice to an owner
  of real estate concerning the negotiation or completion of a short
  sale; and
                     (B)  includes a person who:
                           (i)  is employed by or for an owner of real
  estate to sell any portion of the real estate; or
                           (ii)  engages in the business of charging an
  advance fee or contracting to collect a fee under a contract that
  requires the person primarily to promote the sale of real estate by:
                                 (a)  listing the real estate in a
  publication primarily used for listing real estate; or
                                 (b)  referring information about the
  real estate to brokers.
               (1-a)  "Business entity" means a "domestic entity" or
  "foreign entity" as those terms are defined by Section 1.002,
  Business Organizations Code, that is qualified to transact business
  in this state.
               (4)  "License holder" means a broker or sales agent
  [salesperson] licensed under this chapter.
               (7)  "Sales agent" ["Salesperson"] means a person who
  is sponsored by [associated with] a licensed broker for the purpose
  of performing an act described by Subdivision (1).
         SECTION 3.  The heading to Section 1101.003, Occupations
  Code, is amended to read as follows:
         Sec. 1101.003.  QUALIFYING [CORE] REAL ESTATE COURSES.
         SECTION 4.  Section 1101.003, Occupations Code, is amended
  by amending Subsections (a) and (c) and adding Subsections (d) and
  (e) to read as follows:
         (a)  For purposes of this chapter, "qualifying ["core] real
  estate courses" include:
               (1)  agency law, which includes the following topics:
                     (A)  the relationship between a principal and an
  agent;
                     (B)  an agent's authority;
                     (C)  the termination of an agent's authority;
                     (D)  an agent's duties, including fiduciary
  duties;
                     (E)  employment law;
                     (F)  deceptive trade practices;
                     (G)  listing or buying representation procedures;
  and
                     (H)  the disclosure of agency;
               (2)  contract law, which includes the following topics:
                     (A)  elements of a contract;
                     (B)  offer and acceptance;
                     (C)  statute of frauds;
                     (D)  remedies for breach, including specific
  performance;
                     (E)  unauthorized practice of law;
                     (F)  commission rules relating to use of adopted
  forms; and
                     (G)  owner disclosure requirements;
               (3)  principles of real estate, which includes:
                     (A)  an overview of:
                           (i)  licensing as a broker or sales agent
  [salesperson];
                           (ii)  ethics of practice as a license
  holder;
                           (iii)  titles to and conveyance of real
  estate;
                           (iv)  legal descriptions;
                           (v)  deeds, encumbrances, and liens;
                           (vi)  distinctions between personal and real
  property;
                           (vii)  appraisal;
                           (viii)  finance and regulations;
                           (ix)  closing procedures; and
                           (x)  real estate mathematics; and
                     (B)  at least three class hours of [classroom]
  instruction on federal, state, and local laws relating to housing
  discrimination, housing credit discrimination, and community
  reinvestment;
               (4)  property management, which includes the following
  topics:
                     (A)  the role of a property manager;
                     (B)  landlord policies;
                     (C)  operational guidelines;
                     (D)  leases;
                     (E)  lease negotiations;
                     (F)  tenant relations;
                     (G)  maintenance;
                     (H)  reports;
                     (I)  habitability laws; and
                     (J)  the Fair Housing Act (42 U.S.C. Section 3601
  et seq.);
               (5)  real estate appraisal, which includes the
  following topics:
                     (A)  the central purposes and functions of an
  appraisal;
                     (B)  social and economic determinants of the value
  of real estate;
                     (C)  appraisal case studies;
                     (D)  cost, market data, and income approaches to
  value estimates of real estate;
                     (E)  final correlations; and
                     (F)  reporting;
               (6)  real estate brokerage, which includes the
  following topics:
                     (A)  agency law;
                     (B)  planning and organization;
                     (C)  operational policies and procedures;
                     (D)  recruitment, selection, and training of
  personnel;
                     (E)  records and control; and
                     (F)  real estate firm analysis and expansion
  criteria;
               (7)  real estate finance, which includes the following
  topics:
                     (A)  monetary systems;
                     (B)  primary and secondary money markets;
                     (C)  sources of mortgage loans;
                     (D)  federal government programs;
                     (E)  loan applications, processes, and
  procedures;
                     (F)  closing costs;
                     (G)  alternative financial instruments;
                     (H)  equal credit opportunity laws;
                     (I)  community reinvestment laws, including the
  Community Reinvestment Act of 1977 (12 U.S.C. Section 2901 et
  seq.); and
                     (J)  state housing agencies, including the Texas
  Department of Housing and Community Affairs;
               (8)  real estate investment, which includes the
  following topics:
                     (A)  real estate investment characteristics;
                     (B)  techniques of investment analysis;
                     (C)  the time value of money;
                     (D)  discounted and nondiscounted investment
  criteria;
                     (E)  leverage;
                     (F)  tax shelters depreciation; and
                     (G)  applications to property tax;
               (9)  real estate law, which includes the following
  topics:
                     (A)  legal concepts of real estate;
                     (B)  land description;
                     (C)  real property rights and estates in land;
                     (D)  contracts;
                     (E)  conveyances;
                     (F)  encumbrances;
                     (G)  foreclosures;
                     (H)  recording procedures; and
                     (I)  evidence of titles;
               (10)  real estate marketing, which includes the
  following topics:
                     (A)  real estate professionalism and ethics;
                     (B)  characteristics of successful sales agents
  [salespersons];
                     (C)  time management;
                     (D)  psychology of marketing;
                     (E)  listing procedures;
                     (F)  advertising;
                     (G)  negotiating and closing;
                     (H)  financing; and
                     (I)  Subchapter E, Chapter 17, Business & Commerce
  Code; and
               (11)  real estate mathematics, which includes the
  following topics:
                     (A)  basic arithmetic skills and review of
  mathematical logic;
                     (B)  percentages;
                     (C)  interest;
                     (D)  the time value of money;
                     (E)  depreciation;
                     (F)  amortization;
                     (G)  proration; and
                     (H)  estimation of closing statements.
         (c)  The commission by rule may prescribe:
               (1)  the content of the qualifying [core] real estate
  courses listed in Subsection (a); and
               (2)  the title and content of additional qualifying
  [core] real estate courses.
         (d)  A daily course segment for a qualifying course may not
  exceed 12 hours.
         (e)  An applicant, license holder, or education provider may
  not report to the commission the completion of an alternative
  delivery or correspondence course offered as a qualifying course
  until the elapsed time between the time the applicant or license
  holder registers for the course and the time the completion of the
  course is reported exceeds twice the number of hours for which
  credit is claimed.
         SECTION 5.  Section 1101.004, Occupations Code, is amended
  to read as follows:
         Sec. 1101.004.  REAL ESTATE BROKERAGE [ACTING AS BROKER OR
  SALESPERSON]. (a)  A person is engaged in real estate brokerage 
  [acts as a broker or salesperson under this chapter] if the person,
  with the expectation of receiving valuable consideration, directly
  or indirectly performs or offers, attempts, or agrees to perform
  for another person any act described by Section 1101.002(1), as a
  part of a transaction or as an entire transaction.
         (b)  A person is not engaged in real estate brokerage,
  regardless of whether the person is licensed under this chapter,
  based solely on engaging in the following activities:
               (1)  constructing, remodeling, or repairing a home or
  other building;
               (2)  sponsoring, promoting, or managing, or otherwise
  participating as a principal, partner, or financial manager of, an
  investment in real estate; or
               (3)  entering into an obligation to pay another person
  that is secured by an interest in real property.
         SECTION 6.  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 this state;
               (2)  an attorney-in-fact authorized under a power of
  attorney to conduct not more than three [a] real estate
  transactions annually [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
  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; or
               (9)  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 7.  Section 1101.056, Occupations Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  The presiding officer, assistant presiding officer, and
  secretary constitute the executive committee of the commission.
         SECTION 8.  Section 1101.057(c), Occupations Code, is
  amended to read as follows:
         (c)  If the executive director [administrator] has knowledge
  that a potential ground for removal exists, the executive director
  [administrator] shall notify the presiding officer of the
  commission of the potential ground.  The presiding officer shall
  then notify the governor and the attorney general that a potential
  ground for removal exists.  If the potential ground for removal
  involves the presiding officer, the executive director
  [administrator] shall notify the next highest ranking officer of
  the commission, who shall then notify the governor and the attorney
  general that a potential ground for removal exists.
         SECTION 9.  Section 1101.058, Occupations Code, is amended
  to read as follows:
         Sec. 1101.058.  PER DIEM; REIMBURSEMENT.  (a)  A commission
  member is entitled to receive:
               (1)  $75 for each day the member performs the member's
  official duties; and
               (2)  reimbursement for actual and necessary expenses
  incurred in performing the member's official duties.
         (b)  For purposes of this section, the commission by rule may
  determine what constitutes a day or actual and necessary expenses.
         SECTION 10.  Subchapter B, Chapter 1101, Occupations Code,
  is amended by adding Sections 1101.060 and 1101.061 to read as
  follows:
         Sec. 1101.060.  QUASI-JUDICIAL IMMUNITY.  A member of the
  commission is entitled to quasi-judicial immunity from suit for an
  action that:
               (1)  is taken as a member of the commission; and
               (2)  is in compliance with the law.
         Sec. 1101.061.  EDUCATIONAL PRESENTATIONS.  (a)  A member of
  the commission or a commission employee may make a presentation to a
  group of license holders for which the license holders may receive
  credit under Section 1101.455.  The commission member or employee
  may not receive compensation for the presentation.
         (b)  Notwithstanding Subsection (a), a commission member or
  employee may receive reimbursement for reasonable travel expenses.
         SECTION 11.  The heading to Subchapter C, Chapter 1101,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER C. EXECUTIVE DIRECTOR [ADMINISTRATOR] AND OTHER
  COMMISSION PERSONNEL
         SECTION 12.  The heading to Section 1101.101, Occupations
  Code, is amended to read as follows:
         Sec. 1101.101.  EXECUTIVE DIRECTOR [ADMINISTRATOR] AND
  OTHER PERSONNEL.
         SECTION 13.  Sections 1101.101(a), (b), and (d), Occupations
  Code, are amended to read as follows:
         (a)  The commission shall appoint an executive director
  [administrator].
         (b)  The commission may designate a subordinate officer as
  deputy executive director [assistant administrator] to act for the
  executive director [administrator] in the executive director's
  [administrator's] absence.
         (d)  The commission shall determine the salaries of the
  executive director [administrator], officers, and employees of the
  commission.
         SECTION 14.  Section 1101.102, Occupations Code, is amended
  to read as follows:
         Sec. 1101.102.  DIVISION OF RESPONSIBILITIES. The
  commission shall develop and implement policies that clearly
  separate the policymaking responsibilities of the commission and
  the management responsibilities of the executive director
  [administrator] and the staff of the commission.
         SECTION 15.  Section 1101.105, Occupations Code, is amended
  to read as follows:
         Sec. 1101.105.  CAREER DEVELOPMENT [LADDER] PROGRAM;
  PERFORMANCE EVALUATIONS. (a)  The executive director
  [administrator] or the executive director's [administrator's]
  designee shall develop an intra-agency career development [ladder]
  program. The program must require intra-agency postings of all
  nonentry level positions concurrently with any public posting.
         (b)  The executive director [administrator] or the executive
  director's [administrator's] designee shall develop a system of
  annual performance evaluations. All merit pay for commission
  employees must be based on the system established under this
  subsection.
         SECTION 16.  Sections 1101.106(a) and (b), Occupations Code,
  are amended to read as follows:
         (a)  The executive director [administrator] or the executive
  director's [administrator's] designee shall prepare and maintain a
  written policy statement to ensure implementation of an equal
  employment opportunity program under which all personnel
  transactions are made without regard to race, color, disability,
  sex, religion, age, or national origin. The policy statement must
  include:
               (1)  personnel policies, including policies relating
  to recruitment, evaluation, selection, appointment, training, and
  promotion of personnel;
               (2)  a comprehensive analysis of the commission
  workforce that meets federal and state guidelines;
               (3)  procedures by which a determination can be made of
  significant underuse in the commission workforce of all persons for
  whom federal or state guidelines encourage a more equitable
  balance; and
               (4)  reasonable methods to appropriately address those
  areas of underuse.
         (b)  A policy statement prepared under Subsection (a) must:
               (1)  cover a two-year [an annual] period; and
               (2)  be updated with each strategic plan filed as
  required by Chapter 2056, Government Code [at least annually; and
               [(3)  be filed with the governor].
         SECTION 17.  Section 1101.152(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission shall adopt rules to charge and collect
  fees in amounts reasonable and necessary to cover the costs of
  administering this chapter, including a fee for:
               (1)  filing an original application for a broker
  license;
               (2)  [annual] renewal of a broker license;
               (3)  filing an original application for a sales agent
  [salesperson] license;
               (4)  [annual] renewal of a sales agent [salesperson]
  license;
               (5)  [annual] registration as an easement or
  right-of-way agent;
               (6)  filing an application for a license examination;
               (7)  filing a request for a branch office license;
               (8)  filing a request for a change of place of business,
  change of name, return to active status, or change of sponsoring
  broker;
               (9)  filing a request to replace a lost or destroyed
  license or certificate of registration;
               (10)  filing an application for approval of an
  education program under Subchapter G;
               (11)  annual operation of an education program under
  Subchapter G;
               (12)  filing an application for approval of an
  instructor of qualifying [core] real estate courses;
               (13)  transcript evaluation;
               (14)  preparing a license or registration history;
               (15)  filing a request [an application] for a moral
  character determination; and
               (16)  conducting a criminal history check for issuing
  or renewing a license.
         SECTION 18.  Section 1101.154, Occupations Code, is amended
  to read as follows:
         Sec. 1101.154.  ADDITIONAL FEE:  TEXAS REAL ESTATE RESEARCH
  CENTER.  (a)  The fee for the issuance or renewal of a:
               (1)  broker license is the amount of the fee set under
  Section [Sections] 1101.152 [and 1101.153] and an additional $70
  [$20] fee;
               (2)  sales agent [salesperson] license is the amount of
  the fee set under Section 1101.152 and an additional $20 fee; and
               (3)  certificate of registration is the amount of the
  fee set under Section 1101.152 and an additional $20 fee.
         (b)  The commission shall transmit, not less than quarterly,
  the additional fees collected under Subsection (a) to Texas A&M
  University for deposit in a separate banking account that may be
  appropriated only to support, maintain, and carry out the purposes,
  objectives, and duties of the Texas Real Estate Research Center.
         SECTION 19.  Section 1101.156(b), Occupations Code, is
  amended to read as follows:
         (b)  The commission may not include in rules to prohibit
  false, misleading, or deceptive practices by a person regulated by
  the commission a rule that:
               (1)  restricts the use of any advertising medium;
               (2)  restricts the person's personal appearance or use
  of the person's voice in an advertisement;
               (3)  relates to the size or duration of an
  advertisement used by the person; or
               (4)  restricts the person's advertisement under a trade
  name that is authorized by a law of this state and registered with
  the commission.
         SECTION 20.  Section 1101.161, Occupations Code, is amended
  to read as follows:
         Sec. 1101.161.  GIFTS, GRANTS, AND DONATIONS.  The
  commission may solicit and accept a gift, grant, donation, or other
  item of value from any source to pay for any activity under this
  chapter, or Chapter 1102, [or] 1103, 1104, or 1303 of this code, or
  Chapter 221, Property Code.
         SECTION 21.  Section 1101.202(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission by rule shall:
               (1)  prescribe a notice containing [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; and
               (2)  establish methods by which consumers and service
  recipients are provided the notice by[.   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;
               [(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 22.  Section 1101.205, Occupations Code, is amended
  to read as follows:
         Sec. 1101.205.  COMPLAINT INVESTIGATION OF CERTIFICATE
  HOLDER. The commission shall investigate a signed complaint
  received by the commission that relates to an act of a certificate
  holder or a person required to hold a certificate under Subchapter
  K.  Section 1101.204 applies to an investigation under this
  section.
         SECTION 23.  Subchapter E, Chapter 1101, Occupations Code,
  is amended by adding Section 1101.2051 to read as follows:
         Sec. 1101.2051.  CONFIDENTIALITY OF INVESTIGATION MATERIAL.
  (a)  Information or material, including an investigation file, is
  confidential and not subject to disclosure under Chapter 552,
  Government Code, or any other means of legal compulsion for
  release, including disclosure, discovery, or subpoena, if the
  information or material is prepared or compiled by the commission
  in connection with a complaint, investigation, or audit of any
  person subject to the jurisdiction of the commission.
         (b)  Notwithstanding Subsection (a), information or material
  prepared or compiled by the commission in connection with a
  complaint, investigation, or audit may be disclosed:
               (1)  to the respondent of the complaint;
               (2)  to a person that is the subject of an audit;
               (3)  to a person providing a service to the commission,
  an expert or other witness, or an investigator, if the information
  is necessary for preparation for, or a presentation in, a
  disciplinary proceeding against an applicant or license holder, or
  a subsequent trial or appeal taken from a disciplinary proceeding;
               (4)  to an entity in another jurisdiction that
  licenses, registers, credentials, or disciplines any person
  subject to the jurisdiction of the commission;
               (5)  to a law enforcement agency;
               (6)  to the State Office of Administrative Hearings; or
               (7)  to the commission, or a panel of the commission,
  for use during any proceeding conducted by the State Office of
  Administrative Hearings or in a subsequent trial or appeal of a
  commission action or order.
         (c)  The release of information under Subsection (b) does not
  constitute a release or disclosure for purposes of Section 552.007,
  Government Code.
         (d)  The commission may require a confidentiality agreement
  be signed by a person entitled to receive information under
  Subsection (b) before releasing the information.
         (e)  Notwithstanding Subsection (a), on the dismissal or
  final resolution of a complaint, investigation, or audit,
  information or materials prepared or compiled by the commission in
  connection with the complaint, investigation, or audit, including a
  completed audit report or a final order of the commission, is
  subject to disclosure under Chapter 321 or 552, Government Code.
         SECTION 24.  The heading to Subchapter G, Chapter 1101,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER G. [ACCREDITATION AND] APPROVAL OF REAL ESTATE
  EDUCATIONAL PROGRAMS AND COURSES OF STUDY
         SECTION 25.  Section 1101.301, Occupations Code, is amended
  to read as follows:
         Sec. 1101.301.  APPROVAL [ACCREDITATION] OF PROGRAMS AND
  COURSES OF STUDY. (a)  The commission, as necessary for the
  administration of this chapter and Chapter 1102, may by rule[:
               [(1)]  establish standards for the approval
  [accreditation] of qualifying educational programs or courses of
  study in real estate and real estate inspection conducted in this
  state, excluding programs and courses offered by accredited
  colleges and universities[;
               [(2)     establish by rule reasonable criteria for the
  approval of real estate and real estate inspection courses; and
               [(3)     inspect and accredit real estate and real estate
  inspection educational programs or courses of study].
         (b)  The commission shall determine whether a real estate or
  real estate inspection course satisfies the requirements of this
  chapter or [and] Chapter 1102.
         (b-1)  The commission may not prohibit correspondence or
  alternative delivery courses and programs in real estate inspection
  offered as continuing education by accredited colleges and
  universities.  This subection expires August 31, 2017.
         (c)  In establishing approval [accreditation] standards for
  an educational program under Subsection (a), the commission shall
  adopt rules setting an examination passage rate benchmark for each
  category of license issued by the commission under this chapter or
  Chapter 1102.  The benchmark must be based on the average
  percentage of examinees that pass the licensing exam on the first
  attempt.  A program must meet or exceed the benchmark for each
  license category before the commission may renew the program's
  approval to offer a program or course of study [accreditation] for
  the license category.
         (d)  The commission may deny approval of an application to
  offer a program or course of study [for accreditation] if the
  applicant owns or controls, or has previously owned or controlled,
  an educational program or course of study for which approval to
  offer a program or course of study [accreditation] was revoked.
         (e)  Notwithstanding Subsection (c), the commission may
  renew a program's approval to offer a program or course of study on
  a probationary basis if the commission determines that the program
  is capable of meeting the benchmark under Subsection (c) within a
  reasonable time established by the commission.
         SECTION 26.  Subchapter G, Chapter 1101, Occupations Code,
  is amended by adding Section 1101.3015 to read as follows:
         Sec. 1101.3015.  FEE FOR EDUCATIONAL PROGRAM.  (a)  Except
  as provided by Subsection (b), the commission may not charge more
  than one fee for the approval of an application to offer an
  educational program or course of study under this subchapter in
  multiple formats, including in person, online, or as a
  correspondence course.
         (b)  The commission may adopt a fee schedule to charge a
  separate fee for each format in which a provider offers an
  educational program or course of study only if the commission by
  rule has adopted a policy regarding educational programs or courses
  of study that are offered in multiple formats.
         SECTION 27.  Section 1101.304, Occupations Code, is amended
  to read as follows:
         Sec. 1101.304.  EXAMINATION PASSAGE RATE DATA.  (a)  The
  commission shall adopt rules regarding the collection and
  publication of data relating to examination passage rates for
  graduates of [accredited] educational programs approved under this
  subchapter.
         (b)  Rules adopted under this section must provide for a
  method to:
               (1)  calculate the examination passage rate;
               (2)  collect the relevant data from the examination
  administrator or the approved [accredited] program; and
               (3)  post the examination passage rate data on the
  commission's Internet website, in a manner aggregated by
  educational program and by license group.
         (c)  The commission shall adopt rules for [In] determining
  the educational program a graduate is affiliated with for purposes
  of this section[, the educational program is the program the
  graduate last attended].
         SECTION 28.  Sections 1101.305(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  The commission may appoint a committee to review the
  performance of an educational program performing below the
  standards set by the commission under Section 1101.301.  [The
  committee shall consist of:
               [(1)  at least one commission member;
               [(2)  at least one member of the commission staff;
               [(3)     individuals licensed under this chapter or
  Chapter 1102; and
               [(4)     a representative from the Texas Real Estate
  Research Center.]
         (c)  A committee formed under this section may not revoke the
  approval [accreditation] of an educational program.  The
  commission may temporarily suspend a program in the same manner as a
  license under Subchapter N.
         SECTION 29.  Sections 1101.351(a), (b), and (c), Occupations
  Code, are amended to read as follows:
         (a)  Unless a person holds a license issued under this
  chapter, the person may not:
               (1)  act as or represent that the person is a broker or
  sales agent [salesperson]; or
               (2)  act as a residential rental locator.
         (b)  An applicant for a broker or sales agent [salesperson]
  license may not act as a broker or sales agent [salesperson] until
  the person receives the license evidencing that authority.
         (c)  A licensed sales agent [salesperson] may not engage or
  attempt to engage in real estate brokerage [act or attempt to act as
  a broker or salesperson] unless the sales agent [salesperson] is
  sponsored by [associated with] a licensed broker and is acting for
  that broker.
         SECTION 30.  Sections 1101.352(a), (b), and (d), Occupations
  Code, are amended to read as follows:
         (a)  Each applicant for a broker or sales agent [salesperson]
  license must submit an application on a form prescribed by the
  commission.
         (b)  Each applicant for a broker or sales agent [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.
         (d)  At the time an application is submitted under Subsection
  (a), each applicant shall provide the commission with the
  applicant's current mailing address and telephone number, and the
  applicant's business e-mail address if available.  The applicant
  shall notify the commission of any change in the applicant's
  mailing or e-mail address or telephone number during the time the
  application is pending.
         SECTION 31.  Section 1101.3521(b), Occupations Code, is
  amended to read as follows:
         (b)  The commission shall refuse to issue a license to or
  renew a [the] license on active status of a person who does not
  comply with the requirement of Subsection (a).
         SECTION 32.  Section 1101.353(a), Occupations Code, is
  amended to read as follows:
         (a)  If before applying for a license under this chapter a
  person requests that the commission determine whether the person's
  moral character complies with the commission's moral character
  requirements for licensing under this chapter and pays the required
  fee [prescribed by Section 1101.152], the commission shall make its
  determination of the person's moral character.
         SECTION 33.  Section 1101.354, Occupations Code, is amended
  to read as follows:
         Sec. 1101.354.  GENERAL ELIGIBILITY REQUIREMENTS. To be
  eligible to receive a license under this chapter, a person must:
               (1)  at the time of application:
                     (A)  be at least 18 years of age;
                     (B)  be a citizen of the United States or a
  lawfully admitted alien; and
                     (C)  be a resident of this state;
               (2)  satisfy the commission as to the applicant's
  honesty, trustworthiness, and integrity;
               (3)  demonstrate competence based on an examination
  under Subchapter I; and
               (4)  complete the required courses of study, including
  any required qualifying [core] real estate courses prescribed under
  this chapter[; and
               [(5)  complete at least:
                     [(A)     three classroom hours of course work on
  federal, state, and local laws governing housing discrimination,
  housing credit discrimination, and community reinvestment; or
                     [(B)     three semester hours of course work on
  constitutional law].
         SECTION 34.  Section 1101.355, Occupations Code, is amended
  by amending Subsections (a) and (b) and adding Subsection (b-1) to
  read as follows:
         (a)  To be eligible for a license under this chapter, a
  business entity must:
               (1)  designate one of its managing officers as its
  broker [agent] for purposes of this chapter; and
               (2)  provide proof that the entity maintains errors and
  omissions insurance with a minimum annual limit of $1 million for
  each occurrence if the designated broker [agent] owns less than 10
  percent of the business entity.
         (b)  A business entity may not act as a broker unless the
  entity's designated broker [agent] is a licensed individual broker
  in active status and good standing according to the commission's
  records.
         (b-1)  In determining whether a designated broker is in good
  standing under this section, the commission may consider:
               (1)  the disciplinary history of:
                     (A)  the broker; or
                     (B)  any business entity for which the broker
  serves or previously served as a designated broker; and
               (2)  the payment status of any amount owed to the
  commission by:
                     (A)  the broker; or
                     (B)  any business entity for which the broker
  serves or previously served as a designated broker.
         SECTION 35.  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 four years of active experience in
  this state as a license holder during the 60 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 qualifying [core] real estate courses, two
  semester hours of which must consist of a [be] real estate brokerage
  course completed not more than two years before the application
  date; and
                     (B)  at least 42 semester hours of qualifying
  [core] real estate courses or related courses accepted by the
  commission.
         SECTION 36.  Section 1101.357, Occupations Code, is amended
  to read as follows:
         Sec. 1101.357.  BROKER LICENSE:  ALTERNATE EXPERIENCE
  REQUIREMENTS FOR CERTAIN APPLICANTS.  An applicant for a broker
  license who does not satisfy the experience requirements of Section
  1101.356 must provide to the commission satisfactory evidence that:
               (1)  the applicant:
                     (A)  holds an active [is a licensed] real estate
  broker license in another state;
                     (B)  has had at least four years of active
  experience in that state as a licensed real estate broker or sales
  agent [salesperson] during the 60 months preceding the date the
  application is filed; and
                     (C)  has satisfied the educational requirements
  prescribed by Section 1101.356; or
               (2)  the applicant was licensed in this state as a
  broker in the six months [year] preceding the date the application
  is filed.
         SECTION 37.  Section 1101.358, Occupations Code, is amended
  to read as follows:
         Sec. 1101.358.  SALES AGENT [SALESPERSON] LICENSE:  
  EDUCATION REQUIREMENTS. (a)  An applicant for a sales agent
  [salesperson] license must provide to the commission satisfactory
  evidence that the applicant has completed at least 12 semester
  hours, or equivalent classroom hours, of postsecondary education
  consisting of:
               (1)  at least four semester hours of qualifying [core]
  real estate courses on principles of real estate; and
               (2)  at least two semester hours of each of the
  following qualifying [core] real estate courses:
                     (A)  agency law;
                     (B)  contract law;
                     (C)  contract forms and addendums; and
                     (D)  real estate finance.
         (b)  The commission shall waive the education requirements
  of Subsection (a) if the applicant has been licensed in this state
  as a broker or sales agent [salesperson] within the six months
  preceding the date the application is filed.
         (c)  If an applicant for a sales agent [salesperson] license
  was licensed as a sales agent [salesperson] within the six months
  preceding the date the application is filed and the license was
  issued under the conditions prescribed by Section 1101.454, the
  commission shall require the applicant to provide the evidence of
  successful completion of education requirements that would have
  been required if the license had been maintained without
  interruption during the preceding six months.
         SECTION 38.  Section 1101.359, Occupations Code, is amended
  to read as follows:
         Sec. 1101.359.  ALTERNATE EDUCATION REQUIREMENTS FOR
  CERTAIN LICENSE HOLDERS. An applicant for a broker license who is
  not subject to the education requirements of Section 1101.356(a)(2)
  and an applicant for a sales agent [salesperson] license who is not
  subject to the education requirements of Section 1101.358 or
  1101.454 must provide to the commission satisfactory evidence that
  the applicant has completed the number of classroom hours of
  continuing education that would have been required for a timely
  renewal under Section 1101.455 during the two years preceding the
  date the application is filed.
         SECTION 39.  Sections 1101.360(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  A resident of another state who is not a licensed real
  estate broker and who was formerly licensed in this state as a
  broker or sales agent [salesperson] may apply for a license under
  this chapter not later than six months after [the first anniversary
  of the date of the] expiration of the former license.
         (c)  A nonresident applicant must submit with the
  application an irrevocable consent to a legal action against the
  applicant in the court of any county in this state in which a cause
  of action may arise or in which the plaintiff may reside. The
  action may be commenced by service of process or pleading
  authorized by the laws of this state or by delivery of process on
  the executive director [administrator] or deputy executive
  director [assistant administrator] of the commission. The consent
  must:
               (1)  stipulate that the service of process or pleading
  is valid and binding in all courts as if personal service had been
  made on the nonresident in this state;
               (2)  be acknowledged; and
               (3)  if made by a corporation, be authenticated by its
  seal.
         SECTION 40.  Section 1101.362, Occupations Code, is amended
  to read as follows:
         Sec. 1101.362.  WAIVER OF LICENSE REQUIREMENTS:  PREVIOUS
  LICENSE HOLDERS. The commission by rule may waive some or all of
  the requirements for a license under this chapter for an applicant
  who was licensed under this chapter within the two [six] years
  preceding the date the application is filed.
         SECTION 41.  Section 1101.363(b), Occupations Code, is
  amended to read as follows:
         (b)  The commission may issue an inactive sales agent
  [salesperson] license to a person who applies for a sales agent
  [salesperson] license and satisfies all requirements for the
  license. The person may not act as a sales agent [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.]
         SECTION 42.  Sections 1101.366(a), (b), (c), (d), and (f),
  Occupations Code, are amended to read as follows:
         (a)  The commission may place on inactive status the license
  of a broker if the broker:
               (1)  is not acting as a broker;
               (2)  is not sponsoring a sales agent [salesperson]; and
               (3)  submits a written application to the commission
  before the expiration date of the broker's license.
         (b)  The commission may place on inactive status the license
  of a broker whose license has expired if the broker applies for
  inactive status on a form prescribed by the commission not later
  than six months after [the first anniversary of] the expiration
  date of the broker's license.
         (c)  A broker applying for inactive status shall terminate
  the broker's association with each sales agent [salesperson]
  sponsored by the broker by giving written notice to each sales agent
  [salesperson] before the 30th day preceding the date the broker
  applies for inactive status.
         (d)  A broker on inactive status:
               (1)  may not perform any activity regulated under this
  chapter; and
               (2)  must pay [annual] renewal fees.
         (f)  The commission shall remove a broker's license from
  inactive status if the broker:
               (1)  submits an application to the commission;
               (2)  pays the required fee; and
               (3)  submits proof of attending [at least 15 classroom
  hours of] continuing education as specified by Section 1101.455
  during the two years preceding the date the application under
  Subdivision (1) is filed.
         SECTION 43.  Section 1101.367, Occupations Code, is amended
  to read as follows:
         Sec. 1101.367.  INACTIVE LICENSE: SALES AGENT
  [SALESPERSON]. (a)  When the relationship [association] of a sales
  agent [salesperson] with the sales agent's [salesperson's]
  sponsoring broker terminates, the terminating party [broker] shall
  immediately notify in writing both the other party and [return the
  salesperson license to] the commission.  On receiving the written
  notice, the commission shall place the sales agent license on
  inactive status [A salesperson license returned under this
  subsection is inactive].
         (b)  The commission may return [remove] a sales agent
  [salesperson] license to active [from inactive] status under
  Subsection (a) if, before the expiration date of the sales agent
  [salesperson] license, a licensed broker files a request with the
  commission advising the commission that the broker assumes
  sponsorship of the sales agent [salesperson], accompanied by the
  appropriate fee.
         (c)  As a condition of returning to active status, an
  inactive sales agent [salesperson] whose license is not subject to
  the 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 44.  Sections 1101.401(c) and (d), Occupations Code,
  are amended to read as follows:
         (c)  The examination must be of sufficient scope in the
  judgment of the commission to determine whether a person is
  competent to act as a broker or sales agent [salesperson] in a
  manner that will protect the public.
         (d)  The examination for a sales agent [salesperson] license
  must be less exacting and less stringent than the broker
  examination.
         SECTION 45.  Section 1101.402, Occupations Code, is amended
  to read as follows:
         Sec. 1101.402.  WAIVER OF EXAMINATION. The commission shall
  waive the examination requirement for an applicant for[:
               [(1)]  a broker or sales agent license if:
               (1) [(A)]  the applicant was previously licensed in
  this state as a broker or sales agent; and
               (2) [(B)]  the application is filed before the second
  [first] anniversary of the expiration date of the equivalent [that]
  license[; and
               [(2)  a salesperson license if:
                     [(A)     the applicant was previously licensed in
  this state as a broker or salesperson; and
                     [(B)     the application is filed before the first
  anniversary of the expiration date of that license].
         SECTION 46.  Section 1101.404, Occupations Code, is amended
  to read as follows:
         Sec. 1101.404.  EXAMINATION RESULTS.  (a)  Not later than
  the 10th [30th] day after the date an examination is administered,
  the commission or the testing service shall notify each examinee of
  the results of the examination. [If an examination is graded or
  reviewed by a national testing service, the commission shall notify
  each examinee of the results of the examination not later than the
  14th day after the date the commission receives the results from the
  testing service.]
         (b)  If the notice of the results of an examination [graded
  or reviewed by a national testing service] will be delayed for more
  than 10 [90] days after the examination date, the commission shall
  notify each examinee of the reason for the delay before the 10th
  [90th] day.
         (c)  If requested in writing by a person who fails an
  examination, the commission shall provide to the person an analysis
  of the person's performance on the examination.  The request must be
  accompanied by a statement identifying the person.
         (d)  The results of an examination are confidential.
         SECTION 47.  Section 1101.405, Occupations Code, is amended
  to read as follows:
         Sec. 1101.405.  REEXAMINATION. (a)  An applicant who fails
  an examination may apply for reexamination by filing a request
  accompanied by the proper fee.
         (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 commission that the applicant has completed
  additional education, as prescribed by the commission, since the
  date of the applicant's last examination.
         SECTION 48.  Subchapter I, Chapter 1101, Occupations Code,
  is amended by adding Section 1101.406 to read as follows:
         Sec. 1101.406.  GUIDELINES; STUDY GUIDES. (a)  The
  commission shall:
               (1)  publish guidelines and examination study guides;
               (2)  make the guidelines and study guides available to
  applicants; and
               (3)  update the guidelines and study guides as
  necessary.
         (b)  Except for the examination and other testing products
  that require secure and discreet protection, the contents of study
  guides and other material developed by the commission or with the
  commission's authorization are within the public domain and free of
  copyright restrictions.
         (c)  A person other than the commission may not profit from
  the reproduction and distribution of material described by
  Subsection (b) and may sell the material only at a price that equals
  the cost of reproducing and distributing the material.
         SECTION 49.  Sections 1101.451(a) and (f), Occupations Code,
  are amended to read as follows:
         (a)  The commission may issue or renew a license for a period
  of [not to exceed] 24 months.
         (f)  If a person's license has been expired for six months or
  longer, the person may not renew the license.  The person may
  obtain a new license by [submitting to reexamination and] complying
  with the requirements and procedures for obtaining an original
  license.
         SECTION 50.  Section 1101.453, Occupations Code, is amended
  to read as follows:
         Sec. 1101.453.  ADDITIONAL RENEWAL REQUIREMENTS FOR
  BUSINESS ENTITIES.  (a)  To renew a license under this chapter, a
  business entity must:
               (1)  designate one of its managing officers as its
  broker [agent] for purposes of this chapter; and
               (2)  provide proof that the entity maintains errors and
  omissions insurance with a minimum annual limit of $1 million for
  each occurrence if the designated broker [agent] owns less than 10
  percent of the business entity.
         (b)  A business entity may not act as a broker unless the
  entity's designated broker [agent] is a licensed individual broker
  in active status and good standing according to the commission's
  records.
         SECTION 51.  The heading to Section 1101.454, Occupations
  Code, is amended to read as follows:
         Sec. 1101.454.  SALES AGENT [SALESPERSON] LICENSE RENEWAL.
         SECTION 52.  Section 1101.454(a), Occupations Code, is
  amended to read as follows:
         (a)  An applicant applying for the first renewal of a sales
  agent [salesperson] license must provide to the commission
  satisfactory evidence of completion of at least 18 semester hours,
  or equivalent classroom hours, of qualifying [core] real estate
  courses, including the hours required by Section 1101.455(e).
         SECTION 53.  Sections 1101.455(b), (c), (e), (f), (h), (i),
  (j), and (l), Occupations Code, are amended to read as follows:
         (b)  A license holder who is not subject to the education
  requirements of Section 1101.454 must attend during the term of the
  current license [at least 15 classroom hours of] continuing
  education courses approved by the commission. The commission by
  rule shall prescribe the number of classroom hours of continuing
  education courses the license holder must attend, which must be at
  least 15 classroom hours. The commission may not increase the
  number of required classroom hours by more than three over the term
  of a license.
         (c)  The commission by rule may:
               (1)  prescribe the title, content, and duration of
  continuing education courses that a license holder must attend to
  renew a license; and
               (2)  approve as a substitute for the classroom
  attendance required by Subsection (b):
                     (A)  relevant educational experience; and
                     (B)  alternative delivery or correspondence
  courses.
         (e)  At least eight [six] of the continuing education hours
  required by Subsection (b) must provide current information on
  [cover] the following legal topics:
               (1)  commission rules;
               (2)  fair housing laws;
               (3)  Property Code issues, including landlord-tenant
  law;
               (4)  agency law;
               (5)  antitrust laws;
               (6)  Subchapter E, Chapter 17, Business & Commerce
  Code;
               (7)  disclosures to buyers, landlords, tenants, and
  sellers;
               (8)  promulgated [current] contract and addendum
  forms;
               (9)  unauthorized practice of law;
               (10)  case studies involving violations of laws and
  regulations;
               (11)  [current] Federal Housing Administration and
  Department of Veterans Affairs regulations;
               (12)  tax laws;
               (13)  property tax consulting laws and legal issues;
  [or]
               (14)  other legal topics approved by the commission; or
               (15)  the ethical requirements of engaging in real
  estate brokerage.
         (f)  The remaining [nine] hours may be devoted to other real
  estate-related topics and courses approved by the commission.
         (h)  The commission shall automatically approve the
  following courses as courses that satisfy the mandatory continuing
  education requirements of Subsection (f):
               (1)  qualifying [core] real estate courses; and
               (2)  real estate-related courses approved by the State
  Bar of Texas for minimum continuing legal education participatory
  credit.
         (i)  The commission may not require an examination for a
  course under this section unless the course is:
               (1)  an alternative delivery or [a] correspondence
  course; or
               (2)  a course described by Subsection (e) or Section
  1101.458 [offered by an alternative delivery system, including
  delivery by computer].
         (j)  Daily classroom course segments offered under this
  section must be at least one hour and not more than 10 hours.
         (l)  An applicant, license holder, or education provider may
  not report to the commission the completion of an alternative
  delivery or correspondence [An online] course offered under this
  section until the elapsed time between the time the applicant or
  license holder registers for the course and the time the completion
  of the course is reported is equal to or greater than the number of
  hours for which credit is claimed [may not be completed in less than
  24 hours].
         SECTION 54.  Section 1101.458(a), Occupations Code, is
  amended to read as follows:
         (a)  A designated broker for a business entity licensed under
  this chapter, a [A] broker who sponsors a sales agent
  [salesperson], or a license holder who supervises another license
  holder[,] must attend during the term of the current license at
  least six classroom hours of broker responsibility education
  courses approved by the commission.
         SECTION 55.  Section 1101.552(e), Occupations Code, is
  amended to read as follows:
         (e)  A license holder shall provide the commission with the
  license holder's current mailing address and telephone number, and
  the license holder's business e-mail address if available.  A
  license holder shall notify the commission of a change in the
  license holder's mailing or e-mail address or telephone number.
         SECTION 56.  Section 1101.553, Occupations Code, is amended
  to read as follows:
         Sec. 1101.553.  DISPLAY OF LICENSE.  [(c)]  A residential
  rental locator shall prominently display in a place accessible to
  clients and prospective clients:
               (1)  the locator's license;
               (2)  a statement that the locator is licensed by the
  commission; and
               (3)  the notice required [name, mailing address, and
  telephone number of the commission as provided] by Section
  1101.202(a).
         SECTION 57.  Section 1101.554, Occupations Code, is amended
  to read as follows:
         Sec. 1101.554.  COPY OF SALES AGENT [SALESPERSON] LICENSE.
  The commission shall deliver [or mail] a copy of each sales agent
  [salesperson] license to the broker that is sponsoring [with whom]
  the sales agent [salesperson is associated].
         SECTION 58.  Section 1101.558, Occupations Code, is amended
  by adding Subsections (b-1) and (b-2) and amending Subsection (c)
  to read as follows:
         (b-1)  At the time of a license holder's first substantive
  communication with a party relating to a proposed transaction
  regarding specific real property, the license holder shall provide
  to the party written notice in at least a 10-point font that:
               (1)  describes the ways in which a broker can represent
  a party to a real estate transaction, including as an intermediary;
               (2)  describes the basic duties and obligations a
  broker has to a party to a real estate transaction that the broker
  represents; and
               (3)  provides the name, license number, and contact
  information for the license holder and the license holder's
  supervisor and broker, if applicable.
         (b-2)  The commission by rule shall prescribe the text of the
  notice required under Subsections (b-1)(1) and (2) and establish
  the methods by which a license holder shall provide the notice.
         (c)  A license holder is not required to [shall] provide [to
  a party to a real estate transaction at the time of the first
  substantive dialogue with the party] the notice required [written
  statement prescribed] by Subsection (b-1) if [(d) unless]:
               (1)  the proposed transaction is for a residential
  lease for less [not more] than one year and a sale is not being
  considered; [or]
               (2)  the license holder meets with a party who the
  license holder knows is represented by another license holder; or
               (3)  the communication occurs at a property that is
  held open for any prospective buyer or tenant and the communication
  concerns that property.
         SECTION 59.  Subchapter M, Chapter 1101, Occupations Code,
  is amended by adding Section 1101.6011 to read as follows:
         Sec. 1101.6011.  APPLICABILITY TO BUSINESS ENTITY.  For
  purposes of this subchapter, a claim against a business entity
  license holder is also a claim against the broker who is the
  business entity's designated broker.
         SECTION 60.  Section 1101.602, Occupations Code, is amended
  to read as follows:
         Sec. 1101.602.  ENTITLEMENT TO REIMBURSEMENT. An aggrieved
  person is entitled to reimbursement from the trust account if a
  person described by Section 1101.601 engages in conduct that
  requires a license or certificate of registration under this
  chapter and is described by Section 1101.652(a-1)(1)
  [1101.652(a)(3)] or (b), if the person is a license holder, or
  Section 1101.653(1), (2), (3), or (4), if the person is a
  certificate holder.
         SECTION 61.  Sections 1101.603(a), (c), (d), and (e),
  Occupations Code, are amended to read as follows:
         (a)  In addition to other fees required by this chapter, the
  commission shall collect [an applicant for an original license must
  pay] a fee of $10 to deposit to the credit of the trust account from
  an applicant for an original license or certificate of
  registration.
         (c)  Notwithstanding any other law, the [The] commission
  shall deposit to the credit of the trust account or the real estate
  inspection recovery fund, as determined by the commission,[:
               [(1)  fees collected under Subsections (a) and (b); and
               [(2)]  an administrative penalty collected under
  Subchapter O for a violation by a person licensed under this chapter
  or Chapter 1102 [as a broker or salesperson].
         (d)  Notwithstanding any other law, an [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.
         (e)  On a determination by the commission at any time that
  the balance in the trust account is less than $1 million, each
  license or certificate holder at the next [license] renewal must
  pay, in addition to the renewal fee, an additional [a] fee [that is
  equal to the lesser] of $10 [or a pro rata share of the amount
  necessary to obtain a balance in the trust account of $1.7 million].
  The commission shall deposit the additional fee to the credit of the
  trust account.
         SECTION 62.  Section 1101.605(b), Occupations Code, is
  amended to read as follows:
         (b)  When an aggrieved person brings an action for a judgment
  that may result in an agreed judgment and order for payment from the
  trust account, the aggrieved person and the license or certificate
  holder against whom the action is brought shall notify the
  commission in writing before entry of the agreed judgment and
  deliver a copy of all petitions and pleadings and the proposed
  agreed judgment to the commission.  The commission will notify the
  parties not later than the 30th day after the date of receiving the
  documents if the commission intends to relitigate material and
  relevant issues as to the applicability of the trust account to the
  agreed judgment as provided by Section 1101.608 [action].
         SECTION 63.  Section 1101.606, Occupations Code, is amended
  by amending Subsections (a) and (b) and adding Subsection (c-1) to
  read as follows:
         (a)  Except as provided by Subsections [Subsection] (c) and
  (c-1), an aggrieved person who obtains a court judgment against a
  license or certificate holder for an act described by Section
  1101.602 may, after final judgment is entered, execution returned
  nulla bona, and a judgment lien perfected, file a verified claim in
  the court that entered the judgment.
         (b)  After the 20th day after the date the aggrieved person
  gives written notice of the claim to the commission and judgment
  debtor, the person may apply to the court that entered the judgment
  for an order for payment from the trust account of the amount unpaid
  on the judgment. The aggrieved person and the commission may
  attempt to reach a settlement of the claim before setting a hearing
  before the court.  If the aggrieved person does not schedule a
  hearing before the first anniversary of the date the application
  was filed, recovery is waived [court shall proceed promptly on the
  application].
         (c-1)  If the judgment obtained against the license holder
  includes multiple defendants who are jointly and severally liable
  or the judgment against the license holder was severed from a suit
  with multiple defendants, the aggrieved person may not file a
  verified claim in the court that entered the judgment until the
  aggrieved person has obtained a judgment against all defendants and
  received payment from or obtained a writ of execution returned
  nulla bona for all defendants.
         SECTION 64.  Section 1101.607, Occupations Code, is amended
  to read as follows:
         Sec. 1101.607.  ISSUES AT HEARING. At the hearing on the
  application for payment from the trust account, the aggrieved
  person must show:
               (1)  that the judgment is based on facts allowing
  recovery under this subchapter;
               (2)  that the person is not:
                     (A)  the spouse of the judgment debtor or the
  personal representative of the spouse; [or]
                     (B)  a license or certificate holder who is
  seeking to recover compensation, including a commission, in the
  real estate transaction that is the subject of the application for
  payment; or
                     (C)  related to the judgment debtor within the
  first degree by consanguinity;
               (3)  that, according to the best information available,
  the judgment debtor does not have sufficient attachable assets in
  this or another state to satisfy the judgment;
               (4)  the amount that may be realized from the sale of
  assets liable to be sold or applied to satisfy the judgment; and
               (5)  the balance remaining due on the judgment after
  application of the amount under Subdivision (4).
         SECTION 65.  Sections 1101.608(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  On receipt of notice under Section 1101.606, the
  commission may agree to pay all or part of the claim without a
  hearing. If the commission and the aggrieved person do not reach a
  settlement or the commission does not agree that the claim meets one
  or more of the requirements of this subchapter [and the scheduling
  of a hearing], the commission may notify the attorney general of the
  commission's desire to schedule a hearing, enter an appearance,
  file a response, appear at the hearing, defend the action, or take
  any other action the commission considers appropriate.
         (c)  The commission may relitigate in the hearing any
  material and relevant issue that was determined in the action that
  resulted in the judgment, including an agreed judgment, in favor of
  the aggrieved person.
         SECTION 66.  Section 1101.610, Occupations Code, is amended
  by adding Subsection (e) to read as follows:
         (e)  For purposes of this section, a business entity and the
  broker who is the business entity's designated broker are
  considered a single license holder.
         SECTION 67.  Section 1101.615(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission by rule shall prescribe a notice
  regarding the availability of payment from the trust account for
  aggrieved persons and establish methods by which each [Each]
  license and certificate holder shall provide the 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;
               [(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 68.  Sections 1101.651(b), (c), and (d), Occupations
  Code, are amended to read as follows:
         (b)  A sales agent [salesperson] may not accept compensation
  for a real estate transaction from a person other than the broker
  that is sponsoring [with whom] the sales agent [salesperson is
  associated] or was sponsoring the sales agent [associated] when the
  sales agent [salesperson] earned the compensation.
         (c)  A sales agent [salesperson] may not pay a commission to
  a person except through the broker that is sponsoring [with whom]
  the sales agent [salesperson is associated] at that time.
         (d)  A broker and any broker or sales agent [salesperson]
  appointed under Section 1101.560 who acts as an intermediary under
  Subchapter L may not:
               (1)  disclose to the buyer or tenant that the seller or
  landlord will accept a price less than the asking price, unless
  otherwise instructed in a separate writing by the seller or
  landlord;
               (2)  disclose to the seller or landlord that the buyer
  or tenant will pay a price greater than the price submitted in a
  written offer to the seller or landlord, unless otherwise
  instructed in a separate writing by the buyer or tenant;
               (3)  disclose any confidential information or any
  information a party specifically instructs the broker or sales
  agent [salesperson] in writing not to disclose, unless:
                     (A)  the broker or sales agent [salesperson] is
  otherwise instructed in a separate writing by the respective party;
                     (B)  the broker or sales agent [salesperson] is
  required to disclose the information by this chapter or a court
  order; or
                     (C)  the information materially relates to the
  condition of the property;
               (4)  treat a party to a transaction dishonestly; or
               (5)  violate this chapter.
         SECTION 69.  Section 1101.652, Occupations Code, is amended
  to read as follows:
         Sec. 1101.652.  GROUNDS FOR SUSPENSION OR REVOCATION OF
  LICENSE.  (a)  The commission may suspend or revoke a license
  issued under this chapter or Chapter 1102 or take other
  disciplinary action authorized by this chapter or Chapter 1102 if
  the license holder:
               (1)  enters a plea of guilty or nolo contendere to or is
  convicted of a felony or a criminal offense involving fraud, 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 or Chapter 1102 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;
               (4) [(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 or Chapter 1102;
               (5) [(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;
               (6)  [(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
               (7) [(10)]  disregards or violates this chapter or
  Chapter 1102.
         (a-1)  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)  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;
               (2)  fails or refuses to produce on request, within a
  reasonable time, 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; or
               (3)  fails to use a contract form required by the
  commission under Section 1101.155.
         (b)  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, while engaged in real estate
  brokerage [acting as a broker or salesperson]:
               (1)  acts negligently or incompetently;
               (2)  engages in conduct that is dishonest or in bad
  faith or that demonstrates untrustworthiness;
               (3)  makes a material misrepresentation to a potential
  buyer concerning a significant defect, including a latent
  structural defect, known to the license holder that would be a
  significant factor to a reasonable and prudent buyer in making a
  decision to purchase real property;
               (4)  fails to disclose to a potential buyer a defect
  described by Subdivision (3) that is known to the license holder;
               (5)  makes a false promise that is likely to influence a
  person to enter into an agreement when the license holder is unable
  or does not intend to keep the promise;
               (6)  pursues a continued and flagrant course of
  misrepresentation or makes false promises through an agent or sales
  agent [salesperson], through advertising, or otherwise;
               (7)  fails to make clear to all parties to a real estate
  transaction the party for whom the license holder is acting;
               (8)  receives compensation from more than one party to
  a real estate transaction without the full knowledge and consent of
  all parties to the transaction;
               (9)  fails within a reasonable time to properly account
  for or remit money that is received by the license holder and that
  belongs to another person;
               (10)  commingles money that belongs to another person
  with the license holder's own money;
               (11)  pays a commission or a fee to or divides a
  commission or a fee with a person other than a license holder or a
  real estate broker or sales agent [salesperson] licensed in another
  state for compensation for services as a real estate agent;
               (12)  fails to specify a definite termination date that
  is not subject to prior notice in a contract, other than a contract
  to perform property management services, in which the license
  holder agrees to perform services for which a license is required
  under this chapter;
               (13)  accepts, receives, or charges an undisclosed
  commission, rebate, or direct profit on an expenditure made for a
  principal;
               (14)  solicits, sells, or offers for sale real property
  by means of a lottery;
               (15)  solicits, sells, or offers for sale real property
  by means of a deceptive practice;
               (16)  acts in a dual capacity as broker and undisclosed
  principal in a real estate transaction;
               (17)  guarantees or authorizes or permits a person to
  guarantee that future profits will result from a resale of real
  property;
               (18)  places a sign on real property offering the real
  property for sale or lease without obtaining the written consent of
  the owner of the real property or the owner's authorized agent;
               (19)  offers to sell or lease real property without the
  knowledge and consent of the owner of the real property or the
  owner's authorized agent;
               (20)  offers to sell or lease real property on terms
  other than those authorized by the owner of the real property or the
  owner's authorized agent;
               (21)  induces or attempts to induce a party to a
  contract of sale or lease to break the contract for the purpose of
  substituting a new contract;
               (22)  negotiates or attempts to negotiate the sale,
  exchange, or lease of real property with an owner, landlord, buyer,
  or tenant with knowledge that that person is a party to an
  outstanding written contract that grants exclusive agency to
  another broker in connection with the transaction;
               (23)  publishes or causes to be published an
  advertisement, including an advertisement by newspaper, radio,
  television, the Internet, or display, that misleads or is likely to
  deceive the public, tends to create a misleading impression, or
  fails to identify the person causing the advertisement to be
  published as a licensed broker or agent;
               (24)  withholds from or inserts into a statement of
  account or invoice a statement that the license holder knows makes
  the statement of account or invoice inaccurate in a material way;
               (25)  publishes or circulates an unjustified or
  unwarranted threat of a legal proceeding or other action;
               (26)  establishes an association by employment or
  otherwise with a person other than a license holder if the person is
  expected or required to act as a license holder;
               (27)  aids, abets, or conspires with another person to
  circumvent this chapter;
               (28)  fails or refuses to provide, on request, a copy of
  a document relating to a real estate transaction to a person who
  signed the document;
               (29)  fails to advise a buyer in writing before the
  closing of a real estate transaction that the buyer should:
                     (A)  have the abstract covering the real estate
  that is the subject of the contract examined by an attorney chosen
  by the buyer; or
                     (B)  be provided with or obtain a title insurance
  policy;
               (30)  fails to deposit, within a reasonable time, money
  the license holder receives as escrow or trust funds [agent] in a
  real estate transaction:
                     (A)  in trust with a title company authorized to
  do business in this state; or
                     (B)  in a custodial, trust, or escrow account
  maintained for that purpose in a banking institution authorized to
  do business in this state;
               (31)  disburses money deposited in a custodial, trust,
  or escrow account, as provided in Subdivision (30), before the
  completion or termination of the real estate transaction;
               (32)  discriminates against an owner, potential buyer,
  landlord, or potential tenant on the basis of race, color,
  religion, sex, disability, familial status, national origin, or
  ancestry, including directing a prospective buyer or tenant
  interested in equivalent properties to a different area based on
  the race, color, religion, sex, disability, familial status,
  national origin, or ancestry of the potential owner or tenant; or
               (33)  disregards or violates this chapter.
         SECTION 70.  Section 1101.655, Occupations Code, is amended
  by amending Subsections (a) and (b) and adding Subsection (d) to
  read as follows:
         (a)  The commission shall [may] revoke a license, approval,
  or registration issued under this chapter or Chapter 1102 if:
               (1)  the commission makes a payment from the real
  estate recovery trust account under Subchapter M on behalf of a [to
  satisfy all or part of a judgment against the] license or
  registration holder; and
               (2)  the license or registration holder does not repay
  the real estate recovery trust account the full amount of a payment
  made on the license or registration holder's behalf before the 31st
  day after the date the commission provides notice to the license or
  registration holder.
         (b)  The commission may probate an order revoking a license,
  approval, or registration under this section.
         (d)  For the purposes of this section, if payment is made
  from the real estate recovery trust account on behalf of a business
  entity license holder or a designated broker of a business entity
  license holder, the commission shall proceed under Subsection (a)
  against both the business entity and designated broker.
         SECTION 71.  Section 1101.6561, Occupations Code, is amended
  to read as follows:
         Sec. 1101.6561.  SUSPENSION OR REVOCATION OF EDUCATIONAL
  PROGRAM [ACCREDITATION].  The commission may suspend or revoke the
  approval to offer a program or course of study [an accreditation]
  issued under Subchapter G or take any other disciplinary action
  authorized by this chapter if the provider of an educational
  program or course of study violates this chapter or a rule adopted
  under this chapter.
         SECTION 72.  Section 1101.661, Occupations Code, is amended
  to read as follows:
         Sec. 1101.661.  FINAL ORDER. The commission may issue a
  final order in a proceeding under this subchapter or Subchapter O
  regarding a person whose license has expired [during the course of
  an investigation or administrative proceeding].
         SECTION 73.  Section 1101.662(c), Occupations Code, is
  amended to read as follows:
         (c)  A license may be suspended under this section without
  notice or hearing on the complaint if:
               (1)  institution of proceedings for a contested case
  hearing [before the commission] 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.
         SECTION 74.  Subchapter N, Chapter 1101, Occupations Code,
  is amended by adding Section 1101.663 to read as follows:
         Sec. 1101.663.  REAPPLYING AFTER REVOCATION, SURRENDER, OR
  DENIAL. A person whose license or registration has been revoked, a
  person who has surrendered a license or registration issued by the
  commission, or a person whose application for a license or
  registration has been denied after a hearing under Section 1101.657
  may not apply to the commission for a license or registration before
  the second anniversary of the date of the revocation, surrender, or
  denial.
         SECTION 75.  Subchapter N, Chapter 1101, Occupations Code,
  is amended by adding Section 1101.664 to read as follows:
         Sec. 1101.664.  FAILURE TO APPEAR; COSTS.  (a)  If a
  respondent receives proper notice of a contested case hearing but
  does not appear in person at the hearing, the administrative law
  judge may conduct the hearing or enter an order, as the
  administrative law judge determines appropriate. 
         (b)  The respondent is bound by the results of the hearing to
  the same extent as if the respondent had appeared.
         (c)  The administrative law judge may award reasonable costs
  to the commission on a request for and proof of costs incurred if
  the respondent fails to appear at the hearing.  In this subsection,
  the term "costs" means all costs associated with the hearing,
  including the costs charged by the State Office of Administrative
  Hearings and any costs related to hearing preparation, discovery,
  depositions, subpoenas, service of process, witness expenses,
  travel expenses, and investigation expenses.
         SECTION 76.  Section 1101.7015, Occupations Code, is amended
  to read as follows:
         Sec. 1101.7015.  DELEGATION OF EXECUTIVE DIRECTOR'S
  [ADMINISTRATOR'S] AUTHORITY. The commission may authorize the
  executive director [administrator] to delegate to another
  commission employee the executive director's [administrator's]
  authority to act under this subchapter.
         SECTION 77.  Section 1101.702(b), Occupations Code, is
  amended to read as follows:
         (b)  In determining the amount of the penalty, the executive
  director [administrator] shall consider:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the prohibited acts;
               (2)  the history of previous violations;
               (3)  the amount necessary to deter a future violation;
               (4)  efforts to correct the violation; and
               (5)  any other matter that justice may require.
         SECTION 78.  Section 1101.703, Occupations Code, is amended
  to read as follows:
         Sec. 1101.703.  NOTICE OF VIOLATION AND PENALTY. [(a)]  If,
  after investigation of a possible violation and the facts relating
  to that violation, the executive director [administrator]
  determines that a violation has occurred, the executive director
  [administrator] may issue a notice of violation stating:
               (1)  a brief summary of the alleged violation;
               (2)  the executive director's [administrator's]
  recommendation on the imposition of the administrative penalty or
  another disciplinary sanction, including a recommendation on the
  amount of the penalty; and
               (3)  that the respondent has the right to a hearing to
  contest the alleged violation, the recommended penalty, or both.
         SECTION 79.  Section 1101.704, Occupations Code, is amended
  to read as follows:
         Sec. 1101.704.  PENALTY TO BE PAID OR HEARING REQUESTED.
  (a)  Not later than the 20th day after the date the person receives
  the notice under Section 1101.703, the person may:
               (1)  accept the executive director's [administrator's]
  determination, including the recommended administrative penalty;
  or
               (2)  request in writing a hearing on the occurrence of
  the violation, the amount of the penalty, or both.
         (b)  If the person accepts the executive director's
  [administrator's] determination, or fails to respond in a timely
  manner to the notice, the commission by order shall approve the
  determination and order payment of the recommended penalty or
  impose the recommended sanction.
         SECTION 80.  Section 1101.706, Occupations Code, is amended
  to read as follows:
         Sec. 1101.706.  NOTICE OF ORDER. The executive director
  [administrator] shall give notice of the commission's order to the
  person. The notice must:
               (1)  include the findings of fact and conclusions of
  law, separately stated;
               (2)  state the amount of any penalty imposed;
               (3)  inform the person of the person's right to judicial
  review of the order; and
               (4)  include other information required by law.
         SECTION 81.  Sections 1101.707(b) and (c), Occupations Code,
  are amended to read as follows:
         (b)  Within the 30-day period prescribed by Subsection (a), a
  person who files a petition for judicial review may:
               (1)  stay enforcement of the penalty by:
                     (A)  paying the penalty to the court for placement
  in an escrow account; or
                     (B)  giving the court a supersedeas bond in a form
  approved by the court that:
                           (i)  is for the amount of the penalty; and
                           (ii)  is effective until judicial review of
  the order is final; or
               (2)  request the court to stay enforcement by:
                     (A)  filing with the court an affidavit of the
  person stating that the person is financially unable to pay the
  penalty and is financially unable to give the supersedeas bond; and
                     (B)  giving a copy of the affidavit to the
  executive director [administrator] by certified mail.
         (c)  If the executive director [administrator] receives a
  copy of an affidavit under Subsection (b)(2), the executive
  director [administrator] may file with the court, within five days
  after the date the copy is received, a contest to the affidavit.
         SECTION 82.  Section 1101.708, Occupations Code, is amended
  to read as follows:
         Sec. 1101.708.  COLLECTION OF PENALTY. (a) If the person
  does not pay the administrative penalty and the enforcement of the
  penalty is not stayed, the executive director [administrator] may
  refer the matter to the attorney general for collection of the
  penalty.
         (b)  If the attorney general notifies the commission that the
  attorney general will not pursue collection of the penalty, the
  commission may pursue collection of the penalty by any lawful
  means.
         SECTION 83.  The heading to Section 1101.753, Occupations
  Code, is amended to read as follows:
         Sec. 1101.753.  CIVIL PENALTY FOR CERTAIN VIOLATIONS BY
  BROKER, SALES AGENT [SALESPERSON], OR CERTIFICATE HOLDER.
         SECTION 84.  Section 1101.753(a), Occupations Code, is
  amended to read as follows:
         (a)  In addition to injunctive relief under Sections
  1101.751 and 1101.752, a person who receives a commission or other
  consideration as a result of acting as a broker or sales agent
  [salesperson] without holding a license or certificate of
  registration under this chapter is liable to the state for a civil
  penalty of not less than the amount of money received or more than
  three times the amount of money received.
         SECTION 85.  The heading to Section 1101.754, Occupations
  Code, is amended to read as follows:
         Sec. 1101.754.  PRIVATE CAUSE OF ACTION FOR CERTAIN
  VIOLATIONS BY BROKER, SALES AGENT [SALESPERSON], OR CERTIFICATE
  HOLDER.
         SECTION 86.  Section 1101.754(a), Occupations Code, is
  amended to read as follows:
         (a)  A person who receives a commission or other
  consideration as a result of acting as a broker or sales agent
  [salesperson] without holding a license or certificate of
  registration under this chapter is liable to an aggrieved person
  for a penalty of not less than the amount of money received or more
  than three times the amount of money received.
         SECTION 87.  The heading to Section 1101.758, Occupations
  Code, is amended to read as follows:
         Sec. 1101.758.  CRIMINAL PENALTY FOR CERTAIN VIOLATIONS BY
  BROKER, SALES AGENT [SALESPERSON], OR CERTIFICATE HOLDER.
         SECTION 88.  Section 1101.758(a), Occupations Code, is
  amended to read as follows:
         (a)  A person commits an offense if the person acts as a
  broker or sales agent [salesperson] without holding a license under
  this chapter or engages in an activity for which a certificate of
  registration is required under this chapter without holding a
  certificate.
         SECTION 89.  Section 1101.803, Occupations Code, is amended
  to read as follows:
         Sec. 1101.803.  GENERAL LIABILITY OF BROKER. A licensed
  broker is liable to the commission, the public, and the broker's
  clients for any conduct engaged in under this chapter by the broker
  or by a sales agent [salesperson] associated with or acting for the
  broker.
         SECTION 90.  Section 1101.805(c), Occupations Code, is
  amended to read as follows:
         (c)  This section does not diminish a broker's
  responsibility for the acts or omissions of a sales agent
  [salesperson] associated with or acting for the broker.
         SECTION 91.  Section 1101.806(b), Occupations Code, is
  amended to read as follows:
         (b)  A person may not maintain an action to collect
  compensation for an act as a broker or sales agent [salesperson]
  that is performed in this state unless the person alleges and proves
  that the person was:
               (1)  a license holder at the time the act was commenced;
  or
               (2)  an attorney licensed in any state.
         SECTION 92.  Sections 1101.106(c), 1101.152(c), 1101.455(d)
  and (g), 1101.558(a), (d), and (e), 1101.603(b), and 1101.615(b),
  Occupations Code, are repealed.
         SECTION 93.  Section 1101.060, Occupations Code, as added by
  this Act, applies only to an action that is taken by a member of the
  Texas Real Estate Commission on or after the effective date of this
  Act. An action taken before that date is governed by the law in
  effect on the date the action was taken, and the former law is
  continued in effect for that purpose.
         SECTION 94.  The changes in law made by this Act relating to
  the eligibility for a license or certificate of registration under
  Chapter 1101, Occupations Code, or to requirements for an
  application under that chapter apply only to an application
  submitted to the Texas Real Estate Commission on or after the
  effective date of this Act. An application 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.
         SECTION 95.  The changes in law made by this Act relating to
  an application for inactive status under Chapter 1101, Occupations
  Code, apply only to an application for inactive status submitted to
  the Texas Real Estate Commission on or after the effective date of
  this Act. An application 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.
         SECTION 96.  Section 1101.405, Occupations Code, as amended
  by this Act, does not apply to an examination taken before the
  effective date of this Act.
         SECTION 97.  The changes in law made by this Act relating to
  the requirements for renewal of a license or certificate of
  registration under Chapter 1101, Occupations Code, or to the
  continuing education requirements under that chapter apply only to
  an application for renewal of a license or certificate that expires
  on or after the effective date of this Act.  A license or
  certificate of registration that expires before that date is
  governed by the law in effect immediately before the effective date
  of this Act, and the former law is continued in effect for that
  purpose.
         SECTION 98.  The Texas Real Estate Commission shall adopt
  rules prescribing the notice required by Section 1101.558,
  Occupations Code, as amended by this Act, not later than February 1,
  2016. A real estate broker or sales agent is not required to comply
  with the requirements of that section, as amended by this Act,
  before that date.
         SECTION 99.  The changes in law made by this Act to
  Subchapter M, Chapter 1101, Occupations Code, apply only to a claim
  commenced under that subchapter on or after the effective date of
  this Act. A claim commenced before that date is governed by the law
  in effect on the date the claim was commenced, and the former law is
  continued in effect for that purpose.
         SECTION 100.  The changes in law made by this Act relating to
  the grounds for disciplinary action under Chapter 1101 or 1102,
  Occupations Code, apply only to conduct that occurs on or after the
  effective date of this Act. Conduct that occurs before that date is
  governed by the law in effect on the date the conduct occurred, and
  the former law is continued in effect for that purpose.
         SECTION 101.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect January 1, 2016.
         (b)  The change in law made by this Act to Section 1101.154,
  Occupations Code, takes effect September 1, 2015, but only if S.B.
  765 or similar legislation of the 84th Legislature, Regular
  Session, 2015, that repeals Section 1101.153, Occupations Code, is
  enacted and becomes law. If legislation described by this
  subsection does not become law, the change in law made by this Act
  to Section 1101.154, Occupations Code, has no effect.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 699 passed the Senate on
  April 7, 2015, by the following vote: Yeas 30, Nays 1; and that
  the Senate concurred in House amendments on May 29, 2015, by the
  following vote: Yeas 30, Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 699 passed the House, with
  amendments, on May 26, 2015, by the following vote: Yeas 124,
  Nays 17, four present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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