Texas 2013 - 83rd Regular

Texas Senate Bill SB1296 Compare Versions

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1	1	By: Taylor S.B. No. 1296
2	2	(Kuempel)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of real estate inspectors; changing
8	8	fees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter C, Chapter 1102, Occupations Code, is
11	11	amended by adding Section 1102.1051 to read as follows:
12	12	Sec. 1102.1051. CRIMINAL HISTORY RECORD INFORMATION
13	13	REQUIREMENT FOR LICENSE. (a) The commission shall require that an
14	14	applicant for a license or renewal of an unexpired license submit a
15	15	complete and legible set of fingerprints, on a form prescribed by
16	16	the commission, to the commission or to the Department of Public
17	17	Safety for the purpose of obtaining criminal history record
18	18	information from the Department of Public Safety and the Federal
19	19	Bureau of Investigation.
20	20	(b) The commission shall refuse to issue a license to or
21	21	renew the license of a person who does not comply with the
22	22	requirement of Subsection (a).
23	23	(c) The commission shall conduct a criminal history check of
24	24	each applicant for a license or renewal of a license using
25	25	information:
26	26	(1) provided by the individual under this section; and
27	27	(2) made available to the commission by the Department
28	28	of Public Safety, the Federal Bureau of Investigation, and any
29	29	other criminal justice agency under Chapter 411, Government Code.
30	30	(d) The commission may:
31	31	(1) enter into an agreement with the Department of
32	32	Public Safety to administer a criminal history check required under
33	33	this section; and
34	34	(2) authorize the Department of Public Safety to
35	35	collect from each applicant the costs incurred by the department in
36	36	conducting the criminal history check.
37	37	SECTION 2. Section 1102.109, Occupations Code, is amended
38	38	to read as follows:
39	39	Sec. 1102.109. ELIGIBILITY FOR PROFESSIONAL INSPECTOR
40	40	LICENSE. To be eligible for a professional inspector license, an
41	41	applicant must:
42	42	(1) at the time of application have:
43	43	(A) held a real estate inspector license for at
44	44	least 12 months; and
45	45	(B) performed at least 175 real estate
46	46	inspections under indirect supervision;
47	47	(2) submit evidence satisfactory to the commission of
48	48	successful completion of at least 40 [30] classroom hours of core
49	49	real estate inspection courses, in addition to the hours required
50	50	by Section 1102.108[, and at least eight classroom hours related to
51	51	the study of standards of practice, legal issues, or ethics related
52	52	to the practice of real estate inspecting];
53	53	(3) demonstrate competence based on the examination
54	54	under Subchapter D; and
55	55	(4) satisfy the commission as to the applicant's
56	56	honesty, trustworthiness, integrity, and competence.
57	57	SECTION 3. Section 1102.110, Occupations Code, is amended
58	58	to read as follows:
59	59	Sec. 1102.110. ELIGIBILITY OF PREVIOUS LICENSE HOLDERS.
60	60	(a) Notwithstanding Section 1102.108, an applicant is eligible
61	61	for and has satisfied all requirements for a real estate inspector
62	62	license if the applicant:
63	63	(1) held a real estate inspector license during the
64	64	24-month period preceding the date the application is filed;
65	65	(2) is sponsored by a professional inspector; [and]
66	66	(3) satisfies the commission as to the applicant's
67	67	honesty, trustworthiness, and integrity; and
68	68	(4) submits evidence satisfactory to the commission of
69	69	successful completion of not less than the number of hours of
70	70	continuing education courses that would have been required for the
71	71	applicant to renew the license described by Subdivision (1).
72	72	(b) Notwithstanding Section 1102.109, an applicant is
73	73	eligible for and has satisfied all requirements for a professional
74	74	inspector license if the applicant:
75	75	(1) held a professional inspector license during the
76	76	24-month period preceding the date the application is filed; [and]
77	77	(2) satisfies the commission as to the applicant's
78	78	honesty, trustworthiness, and integrity; and
79	79	(3) submits evidence satisfactory to the commission of
80	80	successful completion of not less than the number of hours of
81	81	continuing education courses that would have been required for the
82	82	applicant to renew the license described by Subdivision (1).
83	83	SECTION 4. Subsection (b), Section 1102.111, Occupations
84	84	Code, is amended to read as follows:
85	85	(b) Rules adopted under Subsection (a) may not require an
86	86	applicant to:
87	87	(1) complete more than 320 additional [classroom]
88	88	hours of core real estate inspection courses; or
89	89	(2) have more than seven years of relevant experience.
90	90	SECTION 5. Section 1102.114, Occupations Code, is amended
91	91	to read as follows:
92	92	Sec. 1102.114. ISSUANCE OF LICENSE. The commission shall
93	93	issue the appropriate license to an applicant who:
94	94	(1) meets the required qualifications; and
95	95	(2) submits [pays the fee required by Section
96	96	1102.352(a); and
97	97	[(3) offers] proof of financial responsibility as
98	98	required by Section 1102.1141 [that the applicant carries liability
99	99	insurance with a minimum limit of $100,000 per occurrence to
100	100	protect the public against a violation of Subchapter G].
101	101	SECTION 6. Subchapter C, Chapter 1102, Occupations Code, is
102	102	amended by adding Section 1102.1141 to read as follows:
103	103	Sec. 1102.1141. FINANCIAL RESPONSIBILITY REQUIREMENT.
104	104	(a) An inspector must maintain financial responsibility in the
105	105	form of:
106	106	(1) a liability insurance policy with a minimum limit
107	107	of $100,000 per occurrence and an aggregate annual total of at least
108	108	$100,000, and that:
109	109	(A) is written by an insurer authorized to engage
110	110	in the business of insurance in this state, a risk retention group
111	111	as defined by Chapter 2201, Insurance Code, or an eligible surplus
112	112	lines insurer, as defined by Section 981.002, Insurance Code; and
113	113	(B) specifically provides for professional
114	114	liability coverage to protect the public against a violation of
115	115	Subchapter G; or
116	116	(2) a bond or other security accepted by the
117	117	commission.
118	118	(b) A bond posted as security under Subsection (a)(2) must:
119	119	(1) be issued by a carrier admitted in this state;
120	120	(2) be in an amount not less than $100,000;
121	121	(3) be continuous; and
122	122	(4) be cancellable by the surety only after the surety
123	123	has provided at least 90 days' written notice to the commission
124	124	before the effective date of the cancellation.
125	125	(c) Any security provided under this section in a form other
126	126	than a bond must be convertible to cash by the commission for the
127	127	benefit of a person who contracts with an inspector in this state,
128	128	without requiring approval of a court, if the commission determines
129	129	that the inspector has violated Subchapter G. Any amount remaining
130	130	after an inspector's license has expired shall be returned to the
131	131	inspector not later than the 180th day after the date the license
132	132	expires.
133	133	(d) An inspector who posts a bond or other security under
134	134	this section must designate an unaffiliated third party to handle
135	135	the processing of any claim regarding the bond or other security.
136	136	SECTION 7. Section 1102.118, Occupations Code, is amended
137	137	to read as follows:
138	138	Sec. 1102.118. CONTACT INFORMATION [CHANGE OF ADDRESS].
139	139	(a) An inspector shall provide the commission with a current
140	140	mailing address, telephone number, and, if available, e-mail
141	141	address.
142	142	(b) Not later than the 30th day after the date of a change in
143	143	the mailing address, telephone number, or e-mail address of an
144	144	inspector [changes the inspector's place of business], the
145	145	inspector shall notify the commission of the change and pay any
146	146	[the] required fee.
147	147	SECTION 8. Section 1102.153, Occupations Code, is amended
148	148	to read as follows:
149	149	Sec. 1102.153. DEADLINE FOR COMPLETION. A license
150	150	applicant who does not satisfy the examination requirement before
151	151	the first anniversary of [within six months after] the date the
152	152	application is filed must submit a new application and pay another
153	153	examination fee to be eligible for examination.
154	154	SECTION 9. Subsection (b), Section 1102.155, Occupations
155	155	Code, is amended to read as follows:
156	156	(b) An applicant who fails the examination three
157	157	consecutive times [in connection with the same application] may not
158	158	apply for reexamination or submit a new license application unless
159	159	[before six months] after the date of the third failed examination
160	160	the applicant completes additional educational requirements as
161	161	prescribed by the commission and submits evidence satisfactory to
162	162	the commission of successful completion of those requirements.
163	163	SECTION 10. Section 1102.202, Occupations Code, is amended
164	164	to read as follows:
165	165	Sec. 1102.202. NOTICE OF LICENSE EXPIRATION. Not later
166	166	than the 31st day before the expiration date of a person's license,
167	167	the commission shall provide notice of the expiration [send] to the
168	168	person [at the person's last known address according to the
169	169	commission's records written notice of the license expiration].
170	170	SECTION 11. Section 1102.203, Occupations Code, is amended
171	171	to read as follows:
172	172	Sec. 1102.203. RENEWAL OF LICENSE; INFORMATION REQUIRED.
173	173	(a) A person may renew an unexpired license by paying the required
174	174	renewal fee to the commission before the expiration date of the
175	175	license and providing proof of financial responsibility [liability
176	176	insurance] as required by Section 1102.1141 [1102.114(3)].
177	177	(a-1) A person whose license has been expired for 90 days or
178	178	less may renew the license by paying to the commission a fee equal
179	179	to 1-1/2 times the required renewal fee. If a license has been
180	180	expired for more than 90 days but less than six months, the person
181	181	may renew the license by paying to the commission a fee equal to two
182	182	times the required renewal fee.
183	183	(b) If the person's license has been expired for six months
184	184	or longer [expires], the person may not renew the license. The
185	185	person may obtain a new license by submitting to reexamination, if
186	186	required, and complying with the requirements and procedures for
187	187	obtaining an original license.
188	188	(c) Each applicant for renewal of a license must disclose to
189	189	the commission whether the applicant has:
190	190	(1) entered a plea of guilty or nolo contendere to a
191	191	felony; or
192	192	(2) been convicted of a felony and the time for appeal
193	193	has elapsed or the judgment or conviction has been affirmed on
194	194	appeal.
195	195	(d) The disclosure under Subsection (c) must be provided
196	196	even if an order has granted community supervision suspending the
197	197	imposition of the sentence.
198	198	SECTION 12. Subsection (c), Section 1102.402, Occupations
199	199	Code, is amended to read as follows:
200	200	(c) A person is not eligible for a license until the person
201	201	has reimbursed the commission [repaid] in full for any [the] amount
202	202	paid on the person's behalf from the real estate inspection
203	203	recovery fund or the real estate recovery trust account under
204	204	Subchapter M, Chapter 1101 [on the person's account], plus interest
205	205	at the legal rate.
206	206	SECTION 13. Subsection (b), Section 1102.403, Occupations
207	207	Code, is amended to read as follows:
208	208	(b) An administrative penalty collected under this section
209	209	[for a violation by an inspector] shall be deposited to the credit
210	210	of the general revenue [real estate inspection recovery] fund and
211	211	shall offset any amount required to be remitted to the general
212	212	revenue fund by the commission. [A penalty collected under this
213	213	section for a violation by a person who is not licensed under this
214	214	chapter or Chapter 1101 shall be deposited to the credit of the real
215	215	estate recovery trust account or the real estate inspection
216	216	recovery fund, as determined by the commission.]
217	217	SECTION 14. Subsection (d), Section 1101.603, Occupations
218	218	Code, is amended to read as follows:
219	219	(d) An administrative penalty collected under Subchapter O
220	220	for a violation by a person who is not licensed under this chapter
221	221	or Chapter 1102 shall be deposited to the credit of the trust
222	222	account [or the real estate inspection recovery fund, as determined
223	223	by the commission].
224	224	SECTION 15. The following laws are repealed:
225	225	(1) Sections 1102.252 and 1102.253, Occupations Code;
226	226	and
227	227	(2) Subchapter H, Chapter 1102, Occupations Code.
228	228	SECTION 16. (a) In this section:
229	229	(1) "Commission" means the Texas Real Estate
230	230	Commission.
231	231	(2) "Eligible inspector" means a person who holds a
232	232	real estate inspector license or professional inspector license
233	233	under Chapter 1102, Occupations Code, as of September 1, 2013.
234	234	(b) Not later than August 31, 2015, the commission shall
235	235	transfer not less than $300,000 from the real estate inspection
236	236	recovery fund to the general revenue fund.
237	237	(c) Not later than November 1, 2017, the commission shall
238	238	determine the remaining liability of the real estate inspection
239	239	recovery fund based on any pending claims for payment under former
240	240	Subchapter H, Chapter 1102, Occupations Code.
241	241	(d) After determining the remaining liability under
242	242	Subsection (c) of this section, the commission shall refund to each
243	243	eligible inspector a portion of the amount in excess of the
244	244	remaining liability of the real estate inspection recovery fund, if
245	245	the eligible inspector holds a license issued under Chapter 1102,
246	246	Occupations Code, as of the date of the refund. A refund under this
247	247	subsection may not exceed $100 per person.
248	248	(e) The commission shall transfer any money remaining in the
249	249	real estate inspection recovery fund to the general revenue fund
250	250	after paying all claims for payment from the fund and issuing
251	251	refunds under Subsection (d) of this section.
252	252	(f) Any money transferred to the general revenue fund under
253	253	this section shall offset any amount required to be remitted to the
254	254	general revenue fund by the commission.
255	255	SECTION 17. (a) Sections 1102.1051 and 1102.1141,
256	256	Occupations Code, as added by this Act, and Sections 1102.109,
257	257	1102.110, 1102.111, 1102.114, 1102.153, 1102.155, and 1102.402,
258	258	Occupations Code, as amended by this Act, apply only to an
259	259	application for an inspector license submitted to the Texas Real
260	260	Estate Commission on or after the effective date of this Act. An
261	261	application for a license submitted before that date is governed by
262	262	the law in effect on the date the application was submitted, and the
263	263	former law is continued in effect for that purpose.
264	264	(b) Sections 1102.203 and 1102.402, Occupations Code, as
265	265	amended by this Act, and Sections 1102.1051 and 1102.1141,
266	266	Occupations Code, as added by this Act, apply only to the renewal of
267	267	an inspector license that expires on or after the effective date of
268	268	this Act. A license that expires before that date is governed by
269	269	the law in effect on the date the license expires, and the former
270	270	law is continued in effect for that purpose.
271	271	(c) Sections 1102.403 and 1101.603, Occupations Code, as
272	272	amended by this Act, apply only to an administrative penalty that is
273	273	collected on or after the effective date of this Act. An
274	274	administrative penalty that is collected before the effective date
275	275	of this Act is governed by the law in effect on the date the
276	276	administrative penalty was collected, and the former law is
277	277	continued in effect for that purpose.
278	278	(d) A claim for payment from the real estate inspection
279	279	recovery fund under former Section 1102.355, Occupations Code, for
280	280	a cause of action that accrues before September 1, 2013, must be
281	281	filed before September 1, 2017.
282	282	SECTION 18. This Act takes effect September 1, 2013.