By: Kuempel H.B. No. 2911
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of real estate inspectors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 1102, Occupations Code, is
amended by adding Section 1102.1051 to read as follows:
Sec. 1102.1051. CRIMINAL HISTORY RECORD INFORMATION
REQUIREMENT FOR LICENSE. (a) The commission shall require that an
applicant for a license or renewal of an unexpired license submit a
complete and legible set of fingerprints, on a form prescribed by
the commission, to the commission or to the Department of Public
Safety for the purpose of obtaining criminal history record
information from the Department of Public Safety and the Federal
Bureau of Investigation.
(b) The commission shall refuse to issue a license to or
renew the license of a person who does not comply with the
requirement of Subsection (a).
(c) The commission shall conduct a criminal history check of
each applicant for a license or renewal of a license using
information:
(1) provided by the individual under this section; and
(2) made available to the commission by the Department
of Public Safety, the Federal Bureau of Investigation, and any
other criminal justice agency under Chapter 411, Government Code.
(d) The commission may:
(1) enter into an agreement with the Department of
Public Safety to administer a criminal history check required under
this section; and
(2) authorize the Department of Public Safety to
collect from each applicant the costs incurred by the department in
conducting the criminal history check.
SECTION 2. Section 1102.109, Occupations Code, is amended
to read as follows:
Sec. 1102.109. ELIGIBILITY FOR PROFESSIONAL INSPECTOR
LICENSE. To be eligible for a professional inspector license, an
applicant must:
(1) at the time of application have:
(A) held a real estate inspector license for at
least 12 months; and
(B) performed at least 175 real estate
inspections under indirect supervision;
(2) submit evidence satisfactory to the commission of
successful completion of at least 40 [30] classroom hours of core
real estate inspection courses, in addition to the hours required
by Section 1102.108 [, and at least eight classroom hours related to
the study of standards of practice, legal issues, or ethics related
to the practice of real estate inspecting];
(3) demonstrate competence based on the examination
under Subchapter D; and
(4) satisfy the commission as to the applicant's
honesty, trustworthiness, integrity, and competence.
SECTION 3. Section 1102.110, Occupations Code, is amended
to read as follows:
Sec. 1102.110. ELIGIBILITY OF PREVIOUS LICENSE HOLDERS.
(a) Notwithstanding Section 1102.108, an applicant is eligible for
and has satisfied all requirements for a real estate inspector
license if the applicant:
(1) held a real estate inspector license during the
24-month period preceding the date the application is filed;
(2) is sponsored by a professional inspector; [and]
(3) provides evidence that the applicant has completed
any continuing education that would have been required for timely
renewal of the previous license; and
(4) satisfies the commission as to the applicant's
honesty, trustworthiness, and integrity.
(b) Notwithstanding Section 1102.109, an applicant is
eligible for and has satisfied all requirements for a professional
inspector license if the applicant:
(1) held a professional inspector license during the
24-month period preceding the date the application is filed; [and]
(2) provides evidence that the applicant has completed
any continuing education that would have been required for timely
renewal of the previous license; and
(3) satisfies the commission as to the applicant's
honesty, trustworthiness, and integrity.
SECTION 4. Section 1102.111(b), Occupations Code, is
amended to read as follows:
(b) Rules adopted under Subsection (a) may not require an
applicant to:
(1) complete more than 320 additional [classroom]
hours of core real estate inspection courses; or
(2) have more than seven years of relevant experience.
SECTION 5. Section 1102.114, Occupations Code, is amended
to read as follows:
Sec. 1102.114. ISSUANCE OF LICENSE. The commission shall
issue the appropriate license to an applicant who:
(1) meets the required qualifications; and
(2) has submitted proof of financial responsibility
with the commission by:
(A) providing a certificate of insurance
verifying coverage as required by Section 1102.1141; or
(B) filing a bond, or other security accepted by
the commission, that meets the requirements of Section
1102.1142 [pays the fee required by Section 1102.352(a); and
[(3) offers proof that the applicant carries liability
insurance with a minimum limit of $100,000 per occurrence to
protect the public against a violation of Subchapter G].
SECTION 6. Subchapter C, Chapter 1102, Occupations Code, is
amended by adding Section 1102.1141 to read as follows:
Sec. 1102.1141. INSURANCE COVERAGE. Insurance obtained by
an applicant or inspector to meet the financial responsibility
requirement of Section 1102.114 must:
(1) be written by an insurer authorized to engage in
the business of insurance in this state, a risk retention group as
defined by Chapter 2201, Insurance Code, or an eligible surplus
lines insurer, as defined by Section 981.002, Insurance Code;
(2) specifically provide for professional liability
insurance to protect the public against a violation of Subchapter
G; and
(3) provide coverage with a minimum limit of $100,000
per occurrence, and a total annual aggregate of not less than
$100,000.
SECTION 7. Subchapter C, Chapter 1102, Occupations Code, is
amended by adding Section 1102.1142 to read as follows:
Sec. 1102.1142. BOND OR OTHER SECURITY. (a) A bond, or
other security accepted by the commission, submitted by an
applicant or inspector to meet the financial responsibility
requirement Section 1102.114 must be:
(1) issued by a carrier admitted in this state in an
amount not less than $100,000; and
(2) continuous.
(b) A surety may not cancel a bond or other security issued
under Subsection (a) unless the surety provides at least 90 days
written notice of cancellation to the commission.
(c) Any security provided under this section in a form other
than a bond must be convertible to cash by the commission for the
benefit of persons who contract with an inspector in this state,
without resort to the courts, if the commission determines that the
inspector has violated Subchapter G. Any amount remaining after
the inspector's license has expired must be returned to the
inspector not later than the sixth month after the date the license
expires.
(d) An applicant or inspector who files a bond or other
security under this section must designate a third party not
affiliated with the applicant or inspector to handle the processing
of claims regarding that bond or other security.
SECTION 8. Section 1102.118, Occupations Code, is amended
to read as follows:
Sec. 1102.118. CONTACT INFORMATION [CHANGE OF ADDRESS]. (a)
An applicant or inspector shall provide the commission a current
mailing address and telephone number, and an e-mail address if
available.
(b) Not later than the 30th day after the date an inspector
changes the inspector's address, e-mail address, or telephone
number [place of business], the inspector shall notify the
commission and pay any [the] required fee.
SECTION 9. Section 1102.153, Occupations Code, is amended
to read as follows:
Sec. 1102.153. DEADLINE FOR COMPLETION. A license
applicant who does not satisfy the examination requirement within
12 [six] months after the date the application is filed must submit
a new application and pay another examination fee to be eligible for
examination.
SECTION 10. Section 1102.155(b), Occupations Code, is
amended to read as follows:
(b) An applicant who fails the examination three
consecutive times [in connection with the same application] may not
apply for reexamination or submit a new license application unless
the applicant submits evidence satisfactory to the commission that
the applicant has taken additional education, as prescribed by the
commission, after the date the applicant last took the examination
[before six months after the date of the third failed examination].
SECTION 11. Section 1102.202, Occupations Code, is amended
to read as follows:
Sec. 1102.202. NOTICE OF LICENSE EXPIRATION. Not later
than the 31st day before the expiration date of a person's license,
the commission shall notify [send to] the person [at the person's
last known address according to the commission's records written
notice] of the license expiration.
SECTION 12. Section 1102.203, Occupations Code, is amended
to read as follows:
Sec. 1102.203. RENEWAL OF LICENSE. (a) A person may renew
an unexpired license by paying the required renewal fee to the
commission before the expiration date of the license and providing
proof of financial responsibility [professional liability
insurance] as required by Section 1102.114.
(((New Subsection (b) is parallel to Section 1101.451(e).)))
(b) A person whose license has been expired for 90 days or
less may renew the license by paying to the commission a fee equal
to 1-1/2 times the required renewal fee. If a license has been
expired for more than 90 days but less than six months, the person
may renew the license by paying to the commission a fee equal to two
times the required renewal fee.
(c) If the person's license has been expired for six months
or longer [expires], the person may not renew the license. The
person may obtain a new license by submitting to reexamination, if
required, and complying with the requirements and procedures for
obtaining an original license.
(d) Each applicant for the renewal of a 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.
(e) The disclosure under Subsection (d) must be provided
even if an order has granted community supervision suspending the
imposition of the sentence.
SECTION 13. Section 1102.402(c), Occupations Code, is
amended to read as follows:
(c) A person for whom a payment has been made from the Real
Estate Inspection Recovery Fund or Real Estate Recovery Trust
Account is not eligible for a license until the person has repaid in
full the amount paid from the fund or the trust account on the
person's account, plus interest at the legal rate.
SECTION 14. Section 1102.403(b), Occupations Code, is
amended to read as follows:
(b) An administrative penalty collected under this section
[for a violation by an inspector] shall be deposited to the credit
of the general revenue [real estate inspection recovery] fund and
shall offset any amounts due from the commission to the general
revenue fund. [A penalty collected under this section for a
violation by a person who is not licensed under this chapter or
Chapter 1101 shall be deposited to the credit of the real estate
recovery trust account or the real estate inspection recovery fund,
as determined by the commission.]
SECTION 15. The following provisions of Chapter 1102,
Occupations Code, are repealed:
(1) Section 1102.252;
(2) Section 1102.253; and
(3) Subchapter H.
SECTION 16. (a) In this section:
(1) "Commission" means the Texas Real Estate
Commission.
(2) "Eligible inspector" means a person who holds a
real estate or professional inspector license under Chapter 1102,
Occupation Code, as of September 1, 2013.
(b) Not later than August 31, 2015, the commission shall
transfer not less than $300,000 from the real estate inspection
recovery fund to the general revenue fund.
(c) Not later than August 31, 2017, the commission shall
determine the remaining liability of the real estate inspection
recovery fund based on any pending claim for payment under former
Subchapter H, Chapter 1102, Occupations Code.
(d) The commission shall refund to each eligible inspector
who also holds a license as of the date of the refund any amount in
excess of the remaining liability of the real estate inspection
recovery fund at a rate not to exceed $100.
(e) Once all refunds to the inspectors are paid and all
claims for payment from the real estate inspection recovery fund
are paid, the commission shall transfer any remaining money to the
general revenue fund.
(f) Any money transferred to the general revenue fund under
this section offsets any amounts due from the commission to the
general revenue fund.
SECTION 17. (a) The changes in law made by this Act apply
only to an application for a license submitted to the Texas Real
Estate Commission on or after September 1, 2013. An application for
a license submitted before that date is governed by the law in
effect on the date the application was submitted, and the former law
is continued in effect for that purpose.
(b) The changes in law made by this Act apply only to a claim
for payment from the real estate inspection recovery fund based on a
cause of action that accrues on or after the effective date of this
Act.
A claim for payment based on a cause of action that accrues
before the effective date of this Act is governed by the law in
effect when the cause of action accrued, and the former law is
continued in effect for that purpose.
(c) A claim for payment from the real estate inspection
recovery fund under former Section 1102.355, Occupations Code, for
a cause of action that accrues before September 1, 2013, must be
filed before September 1, 2017.
SECTION 18. This Act takes effect September 1, 2013.