Texas 2015 - 84th Regular

Texas House Bill HB1918 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R8152 MAW-F
2	2	By: Kuempel H.B. No. 1918
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the Texas Real Estate Commission and the regulation of
8	8	certain real estate professionals; increasing a fee; authorizing a
9	9	fee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. The heading to Chapter 1101, Occupations Code,
12	12	is amended to read as follows:
13	13	CHAPTER 1101. REAL ESTATE BROKERS AND SALES AGENTS [SALESPERSONS]
14	14	SECTION 2. Sections 1101.002(1), (1-a), (4), and (7),
15	15	Occupations Code, are amended to read as follows:
16	16	(1) "Broker":
17	17	(A) means a person who, in exchange for a
18	18	commission or other valuable consideration or with the expectation
19	19	of receiving a commission or other valuable consideration, performs
20	20	for another person one of the following acts:
21	21	(i) sells, exchanges, purchases, or leases
22	22	real estate;
23	23	(ii) offers to sell, exchange, purchase, or
24	24	lease real estate;
25	25	(iii) negotiates or attempts to negotiate
26	26	the listing, sale, exchange, purchase, or lease of real estate;
27	27	(iv) lists or offers, attempts, or agrees
28	28	to list real estate for sale, lease, or exchange;
29	29	(v) auctions or offers, attempts, or agrees
30	30	to auction real estate;
31	31	(vi) deals in options on real estate,
32	32	including a lease to purchase or buying, selling, or offering to buy
33	33	or sell options on real estate;
34	34	(vii) aids or offers or attempts to aid in
35	35	locating or obtaining real estate for purchase or lease;
36	36	(viii) procures or assists in procuring a
37	37	prospect to effect the sale, exchange, or lease of real estate;
38	38	(ix) procures or assists in procuring
39	39	property to effect the sale, exchange, or lease of real estate;
40	40	(x) controls the acceptance or deposit of
41	41	rent from a resident of a single-family residential real property
42	42	unit; [or]
43	43	(xi) provides a written analysis, opinion,
44	44	or conclusion relating to the estimated price of real property if
45	45	the analysis, opinion, or conclusion:
46	46	(a) is not referred to as an
47	47	appraisal;
48	48	(b) is provided in the ordinary course
49	49	of the person's business; and
50	50	(c) is related to the actual or
51	51	potential management, acquisition, disposition, or encumbrance of
52	52	an interest in real property; or
53	53	(xii) advises or offers advice to an owner
54	54	of real estate concerning the negotiation or completion of a short
55	55	sale; and
56	56	(B) includes a person who:
57	57	(i) is employed by or for an owner of real
58	58	estate to sell any portion of the real estate; or
59	59	(ii) engages in the business of charging an
60	60	advance fee or contracting to collect a fee under a contract that
61	61	requires the person primarily to promote the sale of real estate by:
62	62	(a) listing the real estate in a
63	63	publication primarily used for listing real estate; or
64	64	(b) referring information about the
65	65	real estate to brokers.
66	66	(1-a) "Business entity" means a "domestic entity" or
67	67	"foreign entity" as those terms are defined by Section 1.002,
68	68	Business Organizations Code, that is qualified to transact business
69	69	in this state.
70	70	(4) "License holder" means a broker or sales agent
71	71	[salesperson] licensed under this chapter.
72	72	(7) "Sales agent" ["Salesperson"] means a person who
73	73	is sponsored by [associated with] a licensed broker for the purpose
74	74	of performing an act described by Subdivision (1).
75	75	SECTION 3. The heading to Section 1101.003, Occupations
76	76	Code, is amended to read as follows:
77	77	Sec. 1101.003. QUALIFYING [CORE] REAL ESTATE COURSES.
78	78	SECTION 4. Section 1101.003, Occupations Code, is amended
79	79	by amending Subsections (a) and (c) and adding Subsections (d) and
80	80	(e) to read as follows:
81	81	(a) For purposes of this chapter, "qualifying ["core] real
82	82	estate courses" include:
83	83	(1) agency law, which includes the following topics:
84	84	(A) the relationship between a principal and an
85	85	agent;
86	86	(B) an agent's authority;
87	87	(C) the termination of an agent's authority;
88	88	(D) an agent's duties, including fiduciary
89	89	duties;
90	90	(E) employment law;
91	91	(F) deceptive trade practices;
92	92	(G) listing or buying representation procedures;
93	93	and
94	94	(H) the disclosure of agency;
95	95	(2) contract law, which includes the following topics:
96	96	(A) elements of a contract;
97	97	(B) offer and acceptance;
98	98	(C) statute of frauds;
99	99	(D) remedies for breach, including specific
100	100	performance;
101	101	(E) unauthorized practice of law;
102	102	(F) commission rules relating to use of adopted
103	103	forms; and
104	104	(G) owner disclosure requirements;
105	105	(3) principles of real estate, which includes:
106	106	(A) an overview of:
107	107	(i) licensing as a broker or sales agent
108	108	[salesperson];
109	109	(ii) ethics of practice as a license
110	110	holder;
111	111	(iii) titles to and conveyance of real
112	112	estate;
113	113	(iv) legal descriptions;
114	114	(v) deeds, encumbrances, and liens;
115	115	(vi) distinctions between personal and real
116	116	property;
117	117	(vii) appraisal;
118	118	(viii) finance and regulations;
119	119	(ix) closing procedures; and
120	120	(x) real estate mathematics; and
121	121	(B) at least three class hours of [classroom]
122	122	instruction on federal, state, and local laws relating to housing
123	123	discrimination, housing credit discrimination, and community
124	124	reinvestment;
125	125	(4) property management, which includes the following
126	126	topics:
127	127	(A) the role of a property manager;
128	128	(B) landlord policies;
129	129	(C) operational guidelines;
130	130	(D) leases;
131	131	(E) lease negotiations;
132	132	(F) tenant relations;
133	133	(G) maintenance;
134	134	(H) reports;
135	135	(I) habitability laws; and
136	136	(J) the Fair Housing Act (42 U.S.C. Section 3601
137	137	et seq.);
138	138	(5) real estate appraisal, which includes the
139	139	following topics:
140	140	(A) the central purposes and functions of an
141	141	appraisal;
142	142	(B) social and economic determinants of the value
143	143	of real estate;
144	144	(C) appraisal case studies;
145	145	(D) cost, market data, and income approaches to
146	146	value estimates of real estate;
147	147	(E) final correlations; and
148	148	(F) reporting;
149	149	(6) real estate brokerage, which includes the
150	150	following topics:
151	151	(A) agency law;
152	152	(B) planning and organization;
153	153	(C) operational policies and procedures;
154	154	(D) recruitment, selection, and training of
155	155	personnel;
156	156	(E) records and control; and
157	157	(F) real estate firm analysis and expansion
158	158	criteria;
159	159	(7) real estate finance, which includes the following
160	160	topics:
161	161	(A) monetary systems;
162	162	(B) primary and secondary money markets;
163	163	(C) sources of mortgage loans;
164	164	(D) federal government programs;
165	165	(E) loan applications, processes, and
166	166	procedures;
167	167	(F) closing costs;
168	168	(G) alternative financial instruments;
169	169	(H) equal credit opportunity laws;
170	170	(I) community reinvestment laws, including the
171	171	Community Reinvestment Act of 1977 (12 U.S.C. Section 2901 et
172	172	seq.); and
173	173	(J) state housing agencies, including the Texas
174	174	Department of Housing and Community Affairs;
175	175	(8) real estate investment, which includes the
176	176	following topics:
177	177	(A) real estate investment characteristics;
178	178	(B) techniques of investment analysis;
179	179	(C) the time value of money;
180	180	(D) discounted and nondiscounted investment
181	181	criteria;
182	182	(E) leverage;
183	183	(F) tax shelters depreciation; and
184	184	(G) applications to property tax;
185	185	(9) real estate law, which includes the following
186	186	topics:
187	187	(A) legal concepts of real estate;
188	188	(B) land description;
189	189	(C) real property rights and estates in land;
190	190	(D) contracts;
191	191	(E) conveyances;
192	192	(F) encumbrances;
193	193	(G) foreclosures;
194	194	(H) recording procedures; and
195	195	(I) evidence of titles;
196	196	(10) real estate marketing, which includes the
197	197	following topics:
198	198	(A) real estate professionalism and ethics;
199	199	(B) characteristics of successful sales agents
200	200	[salespersons];
201	201	(C) time management;
202	202	(D) psychology of marketing;
203	203	(E) listing procedures;
204	204	(F) advertising;
205	205	(G) negotiating and closing;
206	206	(H) financing; and
207	207	(I) Subchapter E, Chapter 17, Business & Commerce
208	208	Code; and
209	209	(11) real estate mathematics, which includes the
210	210	following topics:
211	211	(A) basic arithmetic skills and review of
212	212	mathematical logic;
213	213	(B) percentages;
214	214	(C) interest;
215	215	(D) the time value of money;
216	216	(E) depreciation;
217	217	(F) amortization;
218	218	(G) proration; and
219	219	(H) estimation of closing statements.
220	220	(c) The commission by rule may prescribe:
221	221	(1) the content of the qualifying [core] real estate
222	222	courses listed in Subsection (a); and
223	223	(2) the title and content of additional qualifying
224	224	[core] real estate courses.
225	225	(d) A daily course segment for a qualifying course may not
226	226	exceed 12 hours.
227	227	(e) A license holder may not report to the commission the
228	228	completion of an alternative delivery or correspondence course
229	229	offered as a qualifying course until the elapsed time between the
230	230	time the license holder registers for and reports the completion of
231	231	the course exceeds twice the number of hours for which credit is
232	232	claimed.
233	233	SECTION 5. Section 1101.004, Occupations Code, is amended
234	234	to read as follows:
235	235	Sec. 1101.004. REAL ESTATE BROKERAGE [ACTING AS BROKER OR
236	236	SALESPERSON]. A person is engaged in real estate brokerage [acts
237	237	as a broker or salesperson under this chapter] if the person, with
238	238	the expectation of receiving valuable consideration, directly or
239	239	indirectly performs or offers, attempts, or agrees to perform for
240	240	another person any act described by Section 1101.002(1), as a part
241	241	of a transaction or as an entire transaction.
242	242	SECTION 6. Subchapter A, Chapter 1101, Occupations Code, is
243	243	amended by adding Section 1101.0051 to read as follows:
244	244	Sec. 1101.0051. EXEMPTION. A person is not required to
245	245	obtain a license under this chapter for engaging in the following
246	246	conduct:
247	247	(1) constructing, remodeling, or repairing a home or
248	248	other building;
249	249	(2) sponsoring, promoting, or managing, or otherwise
250	250	participating as a principal, partner, or financial manager of, an
251	251	investment in real estate; or
252	252	(3) entering into an obligation to pay another person
253	253	that is secured by an interest in real property.
254	254	SECTION 7. Section 1101.056, Occupations Code, is amended
255	255	by adding Subsection (c) to read as follows:
256	256	(c) The presiding officer, assistant presiding officer, and
257	257	secretary constitute the executive committee of the commission.
258	258	SECTION 8. Section 1101.057(c), Occupations Code, is
259	259	amended to read as follows:
260	260	(c) If the executive director [administrator] has knowledge
261	261	that a potential ground for removal exists, the executive director
262	262	[administrator] shall notify the presiding officer of the
263	263	commission of the potential ground. The presiding officer shall
264	264	then notify the governor and the attorney general that a potential
265	265	ground for removal exists. If the potential ground for removal
266	266	involves the presiding officer, the executive director
267	267	[administrator] shall notify the next highest ranking officer of
268	268	the commission, who shall then notify the governor and the attorney
269	269	general that a potential ground for removal exists.
270	270	SECTION 9. Section 1101.058, Occupations Code, is amended
271	271	to read as follows:
272	272	Sec. 1101.058. PER DIEM; REIMBURSEMENT. (a) A commission
273	273	member is entitled to receive:
274	274	(1) $75 for each day the member performs the member's
275	275	official duties; and
276	276	(2) reimbursement for actual and necessary expenses
277	277	incurred in performing the member's official duties.
278	278	(b) For purposes of this section, the commission by rule may
279	279	determine what constitutes a day or actual and necessary expenses.
280	280	SECTION 10. Subchapter B, Chapter 1101, Occupations Code,
281	281	is amended by adding Sections 1101.060 and 1101.061 to read as
282	282	follows:
283	283	Sec. 1101.060. QUASI-JUDICIAL IMMUNITY. A member of the
284	284	commission is entitled to quasi-judicial immunity from suit for an
285	285	action that:
286	286	(1) is taken as a member of the commission; and
287	287	(2) is in compliance with the law.
288	288	Sec. 1101.061. EDUCATIONAL PRESENTATIONS. (a) A member of
289	289	the commission or a commission employee may make a presentation to a
290	290	group of license holders for which the license holders may receive
291	291	credit under Section 1101.455. The commission member or employee
292	292	may not receive compensation for the presentation.
293	293	(b) Notwithstanding Subsection (a), a commission member or
294	294	employee may receive reimbursement for reasonable travel expenses.
295	295	SECTION 11. The heading to Subchapter C, Chapter 1101,
296	296	Occupations Code, is amended to read as follows:
297	297	SUBCHAPTER C. EXECUTIVE DIRECTOR [ADMINISTRATOR] AND OTHER
298	298	COMMISSION PERSONNEL
299	299	SECTION 12. The heading to Section 1101.101, Occupations
300	300	Code, is amended to read as follows:
301	301	Sec. 1101.101. EXECUTIVE DIRECTOR [ADMINISTRATOR] AND
302	302	OTHER PERSONNEL.
303	303	SECTION 13. Sections 1101.101(a), (b), and (d), Occupations
304	304	Code, are amended to read as follows:
305	305	(a) The commission shall appoint an executive director
306	306	[administrator].
307	307	(b) The commission may designate a subordinate officer as
308	308	deputy executive director [assistant administrator] to act for the
309	309	executive director [administrator] in the executive director's
310	310	[administrator's] absence.
311	311	(d) The commission shall determine the salaries of the
312	312	executive director [administrator], officers, and employees of the
313	313	commission.
314	314	SECTION 14. Section 1101.102, Occupations Code, is amended
315	315	to read as follows:
316	316	Sec. 1101.102. DIVISION OF RESPONSIBILITIES. The
317	317	commission shall develop and implement policies that clearly
318	318	separate the policymaking responsibilities of the commission and
319	319	the management responsibilities of the executive director
320	320	[administrator] and the staff of the commission.
321	321	SECTION 15. Section 1101.105, Occupations Code, is amended
322	322	to read as follows:
323	323	Sec. 1101.105. CAREER DEVELOPMENT [LADDER] PROGRAM;
324	324	PERFORMANCE EVALUATIONS. (a) The executive director
325	325	[administrator] or the executive director's [administrator's]
326	326	designee shall develop an intra-agency career development [ladder]
327	327	program. The program must require intra-agency postings of all
328	328	nonentry level positions concurrently with any public posting.
329	329	(b) The executive director [administrator] or the executive
330	330	director's [administrator's] designee shall develop a system of
331	331	annual performance evaluations. All merit pay for commission
332	332	employees must be based on the system established under this
333	333	subsection.
334	334	SECTION 16. Sections 1101.106(a) and (b), Occupations Code,
335	335	are amended to read as follows:
336	336	(a) The executive director [administrator] or the executive
337	337	director's [administrator's] designee shall prepare and maintain a
338	338	written policy statement to ensure implementation of an equal
339	339	employment opportunity program under which all personnel
340	340	transactions are made without regard to race, color, disability,
341	341	sex, religion, age, or national origin. The policy statement must
342	342	include:
343	343	(1) personnel policies, including policies relating
344	344	to recruitment, evaluation, selection, appointment, training, and
345	345	promotion of personnel;
346	346	(2) a comprehensive analysis of the commission
347	347	workforce that meets federal and state guidelines;
348	348	(3) procedures by which a determination can be made of
349	349	significant underuse in the commission workforce of all persons for
350	350	whom federal or state guidelines encourage a more equitable
351	351	balance; and
352	352	(4) reasonable methods to appropriately address those
353	353	areas of underuse.
354	354	(b) A policy statement prepared under Subsection (a) must:
355	355	(1) cover a two-year [an annual] period; and
356	356	(2) be updated with each strategic plan filed as
357	357	required by Chapter 2056, Government Code [at least annually; and
358	358	[(3) be filed with the governor].
359	359	SECTION 17. Section 1101.152(a), Occupations Code, is
360	360	amended to read as follows:
361	361	(a) The commission shall adopt rules to charge and collect
362	362	fees in amounts reasonable and necessary to cover the costs of
363	363	administering this chapter, including a fee for:
364	364	(1) filing an original application for a broker
365	365	license;
366	366	(2) [annual] renewal of a broker license;
367	367	(3) filing an original application for a sales agent
368	368	[salesperson] license;
369	369	(4) [annual] renewal of a sales agent [salesperson]
370	370	license;
371	371	(5) [annual] registration as an easement or
372	372	right-of-way agent;
373	373	(6) filing an application for a license examination;
374	374	(7) filing a request for a branch office license;
375	375	(8) filing a request for a change of place of business,
376	376	change of name, return to active status, or change of sponsoring
377	377	broker;
378	378	(9) filing a request to replace a lost or destroyed
379	379	license or certificate of registration;
380	380	(10) filing an application for approval of an
381	381	education program under Subchapter G;
382	382	(11) annual operation of an education program under
383	383	Subchapter G;
384	384	(12) filing an application for approval of an
385	385	instructor of qualifying [core] real estate courses;
386	386	(13) transcript evaluation;
387	387	(14) preparing a license or registration history;
388	388	(15) filing a request [an application] for a moral
389	389	character determination; and
390	390	(16) conducting a criminal history check for issuing
391	391	or renewing a license.
392	392	SECTION 18. Section 1101.153, Occupations Code, is amended
393	393	by adding Subsection (c) to read as follows:
394	394	(c) This section expires September 1, 2017.
395	395	SECTION 19. Section 1101.154, Occupations Code, is amended
396	396	to read as follows:
397	397	Sec. 1101.154. ADDITIONAL FEE: TEXAS REAL ESTATE RESEARCH
398	398	CENTER. (a) The fee for the issuance or renewal of a:
399	399	(1) broker license is the amount of the fee set under
400	400	Section [Sections] 1101.152 [and 1101.153] and an additional $70
401	401	[$20] fee per year;
402	402	(2) sales agent [salesperson] license is the amount of
403	403	the fee set under Section 1101.152 and an additional $20 fee per
404	404	year; and
405	405	(3) certificate of registration is the amount of the
406	406	fee set under Section 1101.152 and an additional $20 fee per year.
407	407	(b) The commission shall transmit, not less than quarterly,
408	408	the additional fees collected under Subsection (a) to Texas A&M
409	409	University for deposit in a separate banking account that may be
410	410	appropriated only to support, maintain, and carry out the purposes,
411	411	objectives, and duties of the Texas Real Estate Research Center.
412	412	SECTION 20. Section 1101.156(b), Occupations Code, is
413	413	amended to read as follows:
414	414	(b) The commission may not include in rules to prohibit
415	415	false, misleading, or deceptive practices by a person regulated by
416	416	the commission a rule that:
417	417	(1) restricts the use of any advertising medium;
418	418	(2) restricts the person's personal appearance or use
419	419	of the person's voice in an advertisement;
420	420	(3) relates to the size or duration of an
421	421	advertisement used by the person; or
422	422	(4) restricts the person's advertisement under a trade
423	423	name that is authorized by a law of this state and registered with
424	424	the commission.
425	425	SECTION 21. Section 1101.161, Occupations Code, is amended
426	426	to read as follows:
427	427	Sec. 1101.161. GIFTS, GRANTS, AND DONATIONS. The
428	428	commission may solicit and accept a gift, grant, donation, or other
429	429	item of value from any source to pay for any activity under this
430	430	chapter, [or] Chapter 1102, [or] 1103, 1104, or 1303, or Chapter
431	431	221, Property Code.
432	432	SECTION 22. Section 1101.202(a), Occupations Code, is
433	433	amended to read as follows:
434	434	(a) The commission by rule shall:
435	435	(1) prescribe a notice containing [establish methods
436	436	by which consumers and service recipients are notified of] the
437	437	name, mailing address, and telephone number of the commission for
438	438	the purpose of directing a complaint to the commission; and
439	439	(2) establish methods by which consumers and service
440	440	recipients are provided the notice by [. The commission may provide
441	441	for that notice:
442	442	[(1) on each application for a license or certificate
443	443	of registration or written contract for services of] a person
444	444	regulated under this chapter or Chapter 1102[;
445	445	[(2) on a sign prominently displayed in the place of
446	446	business of each person regulated under this chapter or Chapter
447	447	1102;
448	448	[(3) in a bill for services provided by a person
449	449	regulated under this chapter or Chapter 1102;
450	450	[(4) in conjunction with the notice required by
451	451	Section 1101.615; or
452	452	[(5) to be prominently displayed on the Internet
453	453	website of a person regulated under this chapter or Chapter 1102].
454	454	SECTION 23. Section 1101.205, Occupations Code, is amended
455	455	to read as follows:
456	456	Sec. 1101.205. COMPLAINT INVESTIGATION OF CERTIFICATE
457	457	HOLDER. The commission shall investigate a signed complaint
458	458	received by the commission that relates to an act of a certificate
459	459	holder or a person required to hold a certificate under Subchapter
460	460	K. Section 1101.204 applies to an investigation under this
461	461	section.
462	462	SECTION 24. Subchapter E, Chapter 1101, Occupations Code,
463	463	is amended by adding Section 1101.2051 to read as follows:
464	464	Sec. 1101.2051. CONFIDENTIALITY OF INVESTIGATION MATERIAL.
465	465	(a) Information or material, including an investigation file, is
466	466	confidential and not subject to disclosure under Chapter 552,
467	467	Government Code, or any other means of legal compulsion for
468	468	release, including disclosure, discovery, or subpoena, if the
469	469	information or material is prepared or compiled by the commission
470	470	in connection with a complaint, investigation, or audit of any
471	471	person subject to the jurisdiction of the commission.
472	472	(b) Notwithstanding Subsection (a), information or material
473	473	prepared or compiled by the commission in connection with a
474	474	complaint, investigation, or audit may be disclosed:
475	475	(1) to the respondent of the complaint;
476	476	(2) to a person that is the subject of an audit;
477	477	(3) to a person providing a service to the commission,
478	478	an expert or other witness, or an investigator, if the information
479	479	is necessary for preparation for, or a presentation in, a
480	480	disciplinary proceeding against an applicant or license holder, or
481	481	a subsequent trial or appeal taken from a disciplinary proceeding;
482	482	(4) to an entity in another jurisdiction that
483	483	licenses, registers, credentials, or disciplines any person
484	484	subject to the jurisdiction of the commission;
485	485	(5) to a law enforcement agency; or
486	486	(6) to the commission, or a panel of the commission,
487	487	for use during any proceeding conducted by the State Office of
488	488	Administrative Hearings or in a subsequent trial or appeal of a
489	489	commission action or order.
490	490	(c) The release of information under Subsection (b) does not
491	491	waive or affect the confidentiality of the information or waive the
492	492	right to assert exceptions to required disclosure of the
493	493	information in the future.
494	494	(d) The commission may require a confidentiality agreement
495	495	be signed by a person entitled to receive information under
496	496	Subsection (b) before releasing the information.
497	497	(e) Notwithstanding Subsection (a), a completed audit
498	498	report or a final order of the commission, including an agreed
499	499	order, is public information and not excepted from disclosure.
500	500	SECTION 25. The heading to Subchapter G, Chapter 1101,
501	501	Occupations Code, is amended to read as follows:
502	502	SUBCHAPTER G. [ACCREDITATION AND] APPROVAL OF REAL ESTATE
503	503	EDUCATIONAL PROGRAMS AND COURSES OF STUDY
504	504	SECTION 26. Section 1101.301, Occupations Code, is amended
505	505	to read as follows:
506	506	Sec. 1101.301. APPROVAL [ACCREDITATION] OF PROGRAMS AND
507	507	COURSES OF STUDY. (a) The commission, as necessary for the
508	508	administration of this chapter and Chapter 1102, may by rule[:
509	509	[(1)] establish standards for the approval
510	510	[accreditation] of qualifying educational programs or courses of
511	511	study in real estate and real estate inspection conducted in this
512	512	state, excluding programs and courses offered by accredited
513	513	colleges and universities[;
514	514	[(2) establish by rule reasonable criteria for the
515	515	approval of real estate and real estate inspection courses; and
516	516	[(3) inspect and accredit real estate and real estate
517	517	inspection educational programs or courses of study].
518	518	(b) The commission shall determine whether a real estate or
519	519	real estate inspection course satisfies the requirements of this
520	520	chapter or [and] Chapter 1102 for the purposes of granting credit to
521	521	an applicant.
522	522	(c) In establishing approval [accreditation] standards for
523	523	an educational program under Subsection (a), the commission shall
524	524	adopt rules setting an examination passage rate benchmark for each
525	525	category of license issued by the commission under this chapter or
526	526	Chapter 1102. The benchmark must be based on the average
527	527	percentage of examinees that pass the licensing exam on the first
528	528	attempt. A program must meet or exceed the benchmark for each
529	529	license category before the commission may renew the program's
530	530	approval to offer a program or course of study [accreditation] for
531	531	the license category.
532	532	(d) The commission may deny approval of an application to
533	533	offer a program or course of study [for accreditation] if the
534	534	applicant owns or controls, or has previously owned or controlled,
535	535	an educational program or course of study for which approval to
536	536	offer a program or course of study [accreditation] was revoked.
537	537	(e) Notwithstanding Subsection (c), the commission may
538	538	renew a program's approval to offer a program or course of study on
539	539	a probationary basis if the commission determines that the program
540	540	is capable of meeting the benchmark under Subsection (c) within a
541	541	reasonable time established by the commission.
542	542	SECTION 27. Section 1101.304, Occupations Code, is amended
543	543	to read as follows:
544	544	Sec. 1101.304. EXAMINATION PASSAGE RATE DATA. (a) The
545	545	commission shall adopt rules regarding the collection and
546	546	publication of data relating to examination passage rates for
547	547	graduates of [accredited] educational programs approved under this
548	548	subchapter.
549	549	(b) Rules adopted under this section must provide for a
550	550	method to:
551	551	(1) calculate the examination passage rate;
552	552	(2) collect the relevant data from the examination
553	553	administrator or the approved [accredited] program; and
554	554	(3) post the examination passage rate data on the
555	555	commission's Internet website, in a manner aggregated by
556	556	educational program and by license group.
557	557	(c) The commission shall adopt rules for [In] determining
558	558	the educational program a graduate is affiliated with for purposes
559	559	of this section[, the educational program is the program the
560	560	graduate last attended].
561	561	SECTION 28. Sections 1101.305(a) and (c), Occupations Code,
562	562	are amended to read as follows:
563	563	(a) The commission may appoint a committee to review the
564	564	performance of an educational program performing below the
565	565	standards set by the commission under Section 1101.301. [The
566	566	committee shall consist of:
567	567	[(1) at least one commission member;
568	568	[(2) at least one member of the commission staff;
569	569	[(3) individuals licensed under this chapter or
570	570	Chapter 1102; and
571	571	[(4) a representative from the Texas Real Estate
572	572	Research Center.]
573	573	(c) A committee formed under this section may not revoke the
574	574	approval [accreditation] of an educational program. The
575	575	commission may temporarily suspend a program in the same manner as a
576	576	license under Subchapter N.
577	577	SECTION 29. Sections 1101.351(a), (b), and (c), Occupations
578	578	Code, are amended to read as follows:
579	579	(a) Unless a person holds a license issued under this
580	580	chapter, the person may not:
581	581	(1) act as or represent that the person is a broker or
582	582	sales agent [salesperson]; or
583	583	(2) act as a residential rental locator.
584	584	(b) An applicant for a broker or sales agent [salesperson]
585	585	license may not act as a broker or sales agent [salesperson] until
586	586	the person receives the license evidencing that authority.
587	587	(c) A licensed sales agent [salesperson] may not engage or
588	588	attempt to engage in real estate brokerage [act or attempt to act as
589	589	a broker or salesperson] unless the sales agent [salesperson] is
590	590	sponsored by [associated with] a licensed broker and is acting for
591	591	that broker.
592	592	SECTION 30. Sections 1101.352(a), (b), and (d), Occupations
593	593	Code, are amended to read as follows:
594	594	(a) Each applicant for a broker or sales agent [salesperson]
595	595	license must submit an application on a form prescribed by the
596	596	commission.
597	597	(b) Each applicant for a broker or sales agent [salesperson]
598	598	license must disclose in the license application whether the
599	599	applicant has:
600	600	(1) entered a plea of guilty or nolo contendere to a
601	601	felony; or
602	602	(2) been convicted of a felony and the time for appeal
603	603	has elapsed or the judgment or conviction has been affirmed on
604	604	appeal.
605	605	(d) At the time an application is submitted under Subsection
606	606	(a), each applicant shall provide the commission with the
607	607	applicant's current mailing address and telephone number, and the
608	608	applicant's business e-mail address if available. The applicant
609	609	shall notify the commission of any change in the applicant's
610	610	mailing or e-mail address or telephone number during the time the
611	611	application is pending.
612	612	SECTION 31. Section 1101.3521(b), Occupations Code, is
613	613	amended to read as follows:
614	614	(b) The commission shall refuse to issue a license to or
615	615	renew a [the] license on active status of a person who does not
616	616	comply with the requirement of Subsection (a).
617	617	SECTION 32. Section 1101.353(a), Occupations Code, is
618	618	amended to read as follows:
619	619	(a) If before applying for a license under this chapter a
620	620	person requests that the commission determine whether the person's
621	621	moral character complies with the commission's moral character
622	622	requirements for licensing under this chapter and pays the required
623	623	fee [prescribed by Section 1101.152], the commission shall make its
624	624	determination of the person's moral character.
625	625	SECTION 33. Section 1101.354, Occupations Code, is amended
626	626	to read as follows:
627	627	Sec. 1101.354. GENERAL ELIGIBILITY REQUIREMENTS. To be
628	628	eligible to receive a license under this chapter, a person must:
629	629	(1) at the time of application:
630	630	(A) be at least 18 years of age;
631	631	(B) be a citizen of the United States or a
632	632	lawfully admitted alien; [and]
633	633	(C) be a resident of this state; and
634	634	(D) have earned a high school diploma or an
635	635	equivalent certificate;
636	636	(2) satisfy the commission as to the applicant's
637	637	honesty, trustworthiness, and integrity;
638	638	(3) demonstrate competence based on an examination
639	639	under Subchapter I; and
640	640	(4) complete the required courses of study, including
641	641	any required qualifying [core] real estate courses prescribed under
642	642	this chapter[; and
643	643	[(5) complete at least:
644	644	[(A) three classroom hours of course work on
645	645	federal, state, and local laws governing housing discrimination,
646	646	housing credit discrimination, and community reinvestment; or
647	647	[(B) three semester hours of course work on
648	648	constitutional law].
649	649	SECTION 34. Section 1101.355, Occupations Code, is amended
650	650	by amending Subsections (a) and (b) and adding Subsection (b-1) to
651	651	read as follows:
652	652	(a) To be eligible for a license under this chapter, a
653	653	business entity must:
654	654	(1) designate one of its managing officers as its
655	655	broker [agent] for purposes of this chapter; and
656	656	(2) provide proof that the entity maintains errors and
657	657	omissions insurance with a minimum annual limit of $1 million for
658	658	each occurrence if the designated broker [agent] owns less than 10
659	659	percent of the business entity.
660	660	(b) A business entity may not act as a broker unless the
661	661	entity's designated broker [agent] is a licensed individual broker
662	662	in active status and good standing according to the commission's
663	663	records.
664	664	(b-1) In determining whether a designated broker is in good
665	665	standing under this section, the commission may consider:
666	666	(1) the disciplinary history of:
667	667	(A) the broker; or
668	668	(B) any business entity for which the broker
669	669	serves or previously served as a designated broker; and
670	670	(2) the payment status of any amount owed to the
671	671	commission by:
672	672	(A) the broker; or
673	673	(B) any business entity for which the broker
674	674	serves or previously served as a designated broker.
675	675	SECTION 35. Section 1101.356(a), Occupations Code, is
676	676	amended to read as follows:
677	677	(a) An applicant for a broker license must provide to the
678	678	commission satisfactory evidence that the applicant:
679	679	(1) has had at least four years of active experience in
680	680	this state as a license holder during the 60 months preceding the
681	681	date the application is filed; and
682	682	(2) has successfully completed at least 60 semester
683	683	hours, or equivalent classroom hours, of postsecondary education,
684	684	including:
685	685	(A) at least 18 semester hours or equivalent
686	686	classroom hours of qualifying [core] real estate courses, two
687	687	semester hours of which must consist of a [be] real estate brokerage
688	688	course completed not more than two years before the application
689	689	date; and
690	690	(B) at least 42 semester hours of qualifying
691	691	[core] real estate courses or related courses accepted by the
692	692	commission.
693	693	SECTION 36. Section 1101.357, Occupations Code, is amended
694	694	to read as follows:
695	695	Sec. 1101.357. BROKER LICENSE: ALTERNATE EXPERIENCE
696	696	REQUIREMENTS FOR CERTAIN APPLICANTS. An applicant for a broker
697	697	license who does not satisfy the experience requirements of Section
698	698	1101.356 must provide to the commission satisfactory evidence that:
699	699	(1) the applicant:
700	700	(A) holds an active [is a licensed] real estate
701	701	broker license in another state;
702	702	(B) has had at least four years of active
703	703	experience in that state as a licensed real estate broker or sales
704	704	agent [salesperson] during the 60 months preceding the date the
705	705	application is filed; and
706	706	(C) has satisfied the educational requirements
707	707	prescribed by Section 1101.356; or
708	708	(2) the applicant was licensed in this state as a
709	709	broker in the six months [year] preceding the date the application
710	710	is filed.
711	711	SECTION 37. Section 1101.358, Occupations Code, is amended
712	712	to read as follows:
713	713	Sec. 1101.358. SALES AGENT [SALESPERSON] LICENSE:
714	714	EDUCATION REQUIREMENTS. (a) An applicant for a sales agent
715	715	[salesperson] license must provide to the commission satisfactory
716	716	evidence that the applicant has completed at least 12 semester
717	717	hours, or equivalent classroom hours, of postsecondary education
718	718	consisting of:
719	719	(1) at least four semester hours of qualifying [core]
720	720	real estate courses on principles of real estate; and
721	721	(2) at least two semester hours of each of the
722	722	following qualifying [core] real estate courses:
723	723	(A) agency law;
724	724	(B) contract law;
725	725	(C) contract forms and addendums; and
726	726	(D) real estate finance.
727	727	(b) The commission shall waive the education requirements
728	728	of Subsection (a) if the applicant has been licensed in this state
729	729	as a broker or sales agent [salesperson] within the six months
730	730	preceding the date the application is filed.
731	731	(c) If an applicant for a sales agent [salesperson] license
732	732	was licensed as a sales agent [salesperson] within the six months
733	733	preceding the date the application is filed and the license was
734	734	issued under the conditions prescribed by Section 1101.454, the
735	735	commission shall require the applicant to provide the evidence of
736	736	successful completion of education requirements that would have
737	737	been required if the license had been maintained without
738	738	interruption during the preceding six months.
739	739	SECTION 38. Section 1101.359, Occupations Code, is amended
740	740	to read as follows:
741	741	Sec. 1101.359. ALTERNATE EDUCATION REQUIREMENTS FOR
742	742	CERTAIN LICENSE HOLDERS. An applicant for a broker license who is
743	743	not subject to the education requirements of Section 1101.356(a)(2)
744	744	and an applicant for a sales agent [salesperson] license who is not
745	745	subject to the education requirements of Section 1101.358 or
746	746	1101.454 must provide to the commission satisfactory evidence that
747	747	the applicant has completed the number of classroom hours of
748	748	continuing education that would have been required for a timely
749	749	renewal under Section 1101.455 during the two years preceding the
750	750	date the application is filed.
751	751	SECTION 39. Sections 1101.360(a) and (c), Occupations Code,
752	752	are amended to read as follows:
753	753	(a) A resident of another state who is not a licensed real
754	754	estate broker and who was formerly licensed in this state as a
755	755	broker or sales agent [salesperson] may apply for a license under
756	756	this chapter not later than six months after [the first anniversary
757	757	of the date of the] expiration of the former license.
758	758	(c) A nonresident applicant must submit with the
759	759	application an irrevocable consent to a legal action against the
760	760	applicant in the court of any county in this state in which a cause
761	761	of action may arise or in which the plaintiff may reside. The
762	762	action may be commenced by service of process or pleading
763	763	authorized by the laws of this state or by delivery of process on
764	764	the executive director [administrator] or deputy executive
765	765	director [assistant administrator] of the commission. The consent
766	766	must:
767	767	(1) stipulate that the service of process or pleading
768	768	is valid and binding in all courts as if personal service had been
769	769	made on the nonresident in this state;
770	770	(2) be acknowledged; and
771	771	(3) if made by a corporation, be authenticated by its
772	772	seal.
773	773	SECTION 40. Section 1101.362, Occupations Code, is amended
774	774	to read as follows:
775	775	Sec. 1101.362. WAIVER OF LICENSE REQUIREMENTS: PREVIOUS
776	776	LICENSE HOLDERS. The commission by rule may waive some or all of
777	777	the requirements for a license under this chapter for an applicant
778	778	who was licensed under this chapter within the two [six] years
779	779	preceding the date the application is filed.
780	780	SECTION 41. Section 1101.363(b), Occupations Code, is
781	781	amended to read as follows:
782	782	(b) The commission may issue an inactive sales agent
783	783	[salesperson] license to a person who applies for a sales agent
784	784	[salesperson] license and satisfies all requirements for the
785	785	license. The person may not act as a sales agent [salesperson]
786	786	unless the person is sponsored by a licensed broker who has notified
787	787	the commission as required by Section 1101.367(b).
788	788	[Notwithstanding Section 1101.367(b), the licensed broker is not
789	789	required to pay the fee required by that subsection.]
790	790	SECTION 42. Sections 1101.366(a), (b), (c), and (d),
791	791	Occupations Code, are amended to read as follows:
792	792	(a) The commission may place on inactive status the license
793	793	of a broker if the broker:
794	794	(1) is not acting as a broker;
795	795	(2) is not sponsoring a sales agent [salesperson]; and
796	796	(3) submits a written application to the commission
797	797	before the expiration date of the broker's license.
798	798	(b) The commission may place on inactive status the license
799	799	of a broker whose license has expired if the broker applies for
800	800	inactive status on a form prescribed by the commission not later
801	801	than six months after [the first anniversary of] the expiration
802	802	date of the broker's license.
803	803	(c) A broker applying for inactive status shall terminate
804	804	the broker's association with each sales agent [salesperson]
805	805	sponsored by the broker by giving written notice to each sales agent
806	806	[salesperson] before the 30th day preceding the date the broker
807	807	applies for inactive status.
808	808	(d) A broker on inactive status:
809	809	(1) may not perform any activity regulated under this
810	810	chapter; and
811	811	(2) must pay [annual] renewal fees.
812	812	SECTION 43. Section 1101.367, Occupations Code, is amended
813	813	to read as follows:
814	814	Sec. 1101.367. INACTIVE LICENSE: SALES AGENT
815	815	[SALESPERSON]. (a) When the relationship [association] of a sales
816	816	agent [salesperson] with the sales agent's [salesperson's]
817	817	sponsoring broker terminates, the terminating party [broker] shall
818	818	immediately notify in writing both the other party and [return the
819	819	salesperson license to] the commission. On receiving the written
820	820	notice, the commission shall place the sales agent license on
821	821	inactive status [A salesperson license returned under this
822	822	subsection is inactive].
823	823	(b) The commission may return [remove] a sales agent
824	824	[salesperson] license to active [from inactive] status under
825	825	Subsection (a) if, before the expiration date of the sales agent
826	826	[salesperson] license, a licensed broker files a request with the
827	827	commission advising the commission that the broker assumes
828	828	sponsorship of the sales agent [salesperson], accompanied by the
829	829	appropriate fee.
830	830	(c) As a condition of returning to active status, an
831	831	inactive sales agent [salesperson whose license is not subject to
832	832	the education requirements of Section 1101.454] must provide to the
833	833	commission proof of attending [at least 15 hours of] continuing
834	834	education as specified by Section 1101.455 during the two years
835	835	preceding the date the application to return to active status is
836	836	filed.
837	837	SECTION 44. Sections 1101.401(c) and (d), Occupations Code,
838	838	are amended to read as follows:
839	839	(c) The examination must be of sufficient scope in the
840	840	judgment of the commission to determine whether a person is
841	841	competent to act as a broker or sales agent [salesperson] in a
842	842	manner that will protect the public.
843	843	(d) The examination for a sales agent [salesperson] license
844	844	must be less exacting and less stringent than the broker
845	845	examination.
846	846	SECTION 45. Section 1101.402, Occupations Code, is amended
847	847	to read as follows:
848	848	Sec. 1101.402. WAIVER OF EXAMINATION. The commission shall
849	849	waive the examination requirement for an applicant for[:
850	850	[(1)] a broker or sales agent license if:
851	851	(1) [(A)] the applicant was previously licensed in
852	852	this state as a broker or sales agent; and
853	853	(2) [(B)] the application is filed before the second
854	854	[first] anniversary of the expiration date of the equivalent [that]
855	855	license[; and
856	856	[(2) a salesperson license if:
857	857	[(A) the applicant was previously licensed in
858	858	this state as a broker or salesperson; and
859	859	[(B) the application is filed before the first
860	860	anniversary of the expiration date of that license].
861	861	SECTION 46. Section 1101.404, Occupations Code, is amended
862	862	to read as follows:
863	863	Sec. 1101.404. EXAMINATION RESULTS. (a) Not later than the
864	864	10th [30th] day after the date an examination is administered, the
865	865	commission or the testing service shall notify each examinee of the
866	866	results of the examination. [If an examination is graded or
867	867	reviewed by a national testing service, the commission shall notify
868	868	each examinee of the results of the examination not later than the
869	869	14th day after the date the commission receives the results from the
870	870	testing service.]
871	871	(b) If the notice of the results of an examination [graded
872	872	or reviewed by a national testing service] will be delayed for more
873	873	than 10 [90] days after the examination date, the commission shall
874	874	notify each examinee of the reason for the delay before the 10th
875	875	[90th] day.
876	876	(c) If requested in writing by a person who fails an
877	877	examination, the commission shall provide to the person an analysis
878	878	of the person's performance on the examination. The request must be
879	879	accompanied by a statement identifying the person and a fee in an
880	880	amount determined by the commission. The commission shall release
881	881	the analysis directly to the person requesting the analysis.
882	882	(d) The results of an examination are confidential.
883	883	SECTION 47. Section 1101.405, Occupations Code, is amended
884	884	to read as follows:
885	885	Sec. 1101.405. REEXAMINATION. (a) An applicant who fails
886	886	an examination may apply for reexamination by filing a request
887	887	accompanied by the proper fee.
888	888	(b) An applicant who fails the examination three
889	889	consecutive times may not apply for reexamination or submit a new
890	890	license application unless the applicant submits evidence
891	891	satisfactory to the commission that the applicant has completed
892	892	additional education, as prescribed by the commission, since the
893	893	date of the applicant's last examination.
894	894	SECTION 48. Subchapter I, Chapter 1101, Occupations Code,
895	895	is amended by adding Section 1101.406 to read as follows:
896	896	Sec. 1101.406. GUIDELINES; STUDY GUIDES. (a) The commission
897	897	shall:
898	898	(1) publish guidelines and examination study guides;
899	899	(2) make the guidelines and study guides available to
900	900	applicants; and
901	901	(3) update the guidelines and study guides as
902	902	necessary.
903	903	(b) Except for the examination and other testing products
904	904	that require secure and discreet protection, the contents of study
905	905	guides and other material developed by the commission or with the
906	906	commission's authorization are within the public domain and free of
907	907	copyright restrictions.
908	908	(c) A person other than the commission may not profit from
909	909	the reproduction and distribution of material described by
910	910	Subsection (b) and may sell the material only at a price that equals
911	911	the cost of reproducing and distributing the material.
912	912	SECTION 49. Section 1101.451(f), Occupations Code, is
913	913	amended to read as follows:
914	914	(f) If a person's license has been expired for six months or
915	915	longer, the person may not renew the license. The person may
916	916	obtain a new license by [submitting to reexamination and] complying
917	917	with the requirements and procedures for obtaining an original
918	918	license.
919	919	SECTION 50. Section 1101.452(a), Occupations Code, is
920	920	amended to read as follows:
921	921	(a) To renew an active license [that is not subject to the
922	922	education requirements of Section 1101.454], the license holder
923	923	must provide to the commission proof of compliance with the
924	924	continuing education requirements of Section 1101.455.
925	925	SECTION 51. Section 1101.453, Occupations Code, is amended
926	926	to read as follows:
927	927	Sec. 1101.453. ADDITIONAL RENEWAL REQUIREMENTS FOR
928	928	BUSINESS ENTITIES. (a) To renew a license under this chapter, a
929	929	business entity must:
930	930	(1) designate one of its managing officers as its
931	931	broker [agent] for purposes of this chapter; and
932	932	(2) provide proof that the entity maintains errors and
933	933	omissions insurance with a minimum annual limit of $1 million for
934	934	each occurrence if the designated broker [agent] owns less than 10
935	935	percent of the business entity.
936	936	(b) A business entity may not act as a broker unless the
937	937	entity's designated broker [agent] is a licensed individual broker
938	938	in active status and good standing according to the commission's
939	939	records.
940	940	SECTION 52. The heading to Section 1101.454, Occupations
941	941	Code, is amended to read as follows:
942	942	Sec. 1101.454. SALES AGENT [SALESPERSON] LICENSE RENEWAL.
943	943	SECTION 53. Section 1101.454(a), Occupations Code, is
944	944	amended to read as follows:
945	945	(a) An applicant applying for the first renewal of a sales
946	946	agent [salesperson] license must provide to the commission
947	947	satisfactory evidence of completion of at least 18 semester hours,
948	948	or equivalent classroom hours, of qualifying [core] real estate
949	949	courses, including the hours required by Section 1101.455(e).
950	950	SECTION 54. Sections 1101.455(c), (e), (f), (h), (i), (j),
951	951	and (l), Occupations Code, are amended to read as follows:
952	952	(c) The commission by rule may:
953	953	(1) prescribe the title, content, and duration of
954	954	continuing education courses that a license holder must attend to
955	955	renew a license; and
956	956	(2) approve as a substitute for the classroom
957	957	attendance required by Subsection (b):
958	958	(A) relevant educational experience; and
959	959	(B) alternative delivery or correspondence
960	960	courses.
961	961	(e) At least eight [six] of the continuing education hours
962	962	required by Subsection (b) must provide current information on
963	963	[cover] the following legal topics:
964	964	(1) commission rules;
965	965	(2) fair housing laws;
966	966	(3) Property Code issues, including landlord-tenant
967	967	law;
968	968	(4) agency law;
969	969	(5) antitrust laws;
970	970	(6) Subchapter E, Chapter 17, Business & Commerce
971	971	Code;
972	972	(7) disclosures to buyers, landlords, tenants, and
973	973	sellers;
974	974	(8) promulgated [current] contract and addendum
975	975	forms;
976	976	(9) unauthorized practice of law;
977	977	(10) case studies involving violations of laws and
978	978	regulations;
979	979	(11) [current] Federal Housing Administration and
980	980	Department of Veterans Affairs regulations;
981	981	(12) tax laws;
982	982	(13) property tax consulting laws and legal issues;
983	983	[or]
984	984	(14) other legal topics approved by the commission; or
985	985	(15) the ethical requirements of engaging in real
986	986	estate brokerage.
987	987	(f) The remaining [nine] hours may be devoted to other real
988	988	estate-related topics and courses approved by the commission.
989	989	(h) The commission shall automatically approve the
990	990	following courses as courses that satisfy the mandatory continuing
991	991	education requirements of Subsection (f):
992	992	(1) qualifying [core] real estate courses; and
993	993	(2) real estate-related courses approved by the State
994	994	Bar of Texas for minimum continuing legal education participatory
995	995	credit.
996	996	(i) The commission may not require an examination for a
997	997	course under this section unless the course is:
998	998	(1) an alternative delivery or [a] correspondence
999	999	course; or
1000	1000	(2) a course described by Subsection (e) or Section
1001	1001	1101.458 [offered by an alternative delivery system, including
1002	1002	delivery by computer].
1003	1003	(j) Daily classroom course segments offered under this
1004	1004	section must be at least one hour and not more than 10 hours.
1005	1005	(l) A license holder may not report to the commission the
1006	1006	completion of an alternative delivery or correspondence [An online]
1007	1007	course offered under this section until the elapsed time between
1008	1008	the time the license holder registers for and reports the
1009	1009	completion of the course is equal to or greater than the number of
1010	1010	hours for which credit is claimed [may not be completed in less than
1011	1011	24 hours].
1012	1012	SECTION 55. Section 1101.458(a), Occupations Code, is
1013	1013	amended to read as follows:
1014	1014	(a) A designated broker for a business entity licensed under
1015	1015	this chapter, a [A] broker who sponsors a sales agent
1016	1016	[salesperson], or a license holder who supervises another license
1017	1017	holder[,] must attend during the term of the current license at
1018	1018	least six classroom hours of broker responsibility education
1019	1019	courses approved by the commission.
1020	1020	SECTION 56. Section 1101.552(e), Occupations Code, is
1021	1021	amended to read as follows:
1022	1022	(e) A license holder shall provide the commission with the
1023	1023	license holder's current mailing address and telephone number, and
1024	1024	the license holder's business e-mail address if available. A
1025	1025	license holder shall notify the commission of a change in the
1026	1026	license holder's mailing or e-mail address or telephone number.
1027	1027	SECTION 57. Section 1101.553, Occupations Code, is amended
1028	1028	to read as follows:
1029	1029	Sec. 1101.553. DISPLAY OF LICENSE. [(c)] A residential
1030	1030	rental locator shall prominently display in a place accessible to
1031	1031	clients and prospective clients:
1032	1032	(1) the locator's license;
1033	1033	(2) a statement that the locator is licensed by the
1034	1034	commission; and
1035	1035	(3) the notice required [name, mailing address, and
1036	1036	telephone number of the commission as provided] by Section
1037	1037	1101.202(a).
1038	1038	SECTION 58. Section 1101.554, Occupations Code, is amended
1039	1039	to read as follows:
1040	1040	Sec. 1101.554. COPY OF SALES AGENT [SALESPERSON] LICENSE.
1041	1041	The commission shall deliver [or mail] a copy of each sales agent
1042	1042	[salesperson] license to the broker that is sponsoring [with whom]
1043	1043	the sales agent [salesperson is associated].
1044	1044	SECTION 59. Section 1101.558, Occupations Code, is amended
1045	1045	by adding Subsections (b-1) and (b-2) and amending Subsection (c)
1046	1046	to read as follows:
1047	1047	(b-1) At the time of a license holder's first substantive
1048	1048	communication with a party relating to a proposed transaction
1049	1049	regarding specific real property, the license holder shall provide
1050	1050	to the party written notice in at least a 10-point font that:
1051	1051	(1) describes the ways in which a broker can represent
1052	1052	a party to a real estate transaction, including as an intermediary;
1053	1053	(2) describes the basic duties and obligations a
1054	1054	broker has to a party to a real estate transaction that the broker
1055	1055	represents; and
1056	1056	(3) provides the name, license number, and contact
1057	1057	information for the license holder and the license holder's
1058	1058	supervisor and broker, if applicable.
1059	1059	(b-2) The commission by rule shall prescribe the text of the
1060	1060	notice required under Subsections (b-1)(1) and (2) and establish
1061	1061	the methods by which a license holder shall provide the notice.
1062	1062	(c) A license holder is not required to [shall] provide [to
1063	1063	a party to a real estate transaction at the time of the first
1064	1064	substantive dialogue with the party] the notice required [written
1065	1065	statement prescribed] by Subsection (b-1) if [(d) unless]:
1066	1066	(1) the proposed transaction is for a residential
1067	1067	lease for less [not more] than one year and a sale is not being
1068	1068	considered; [or]
1069	1069	(2) the license holder meets with a party who the
1070	1070	license holder knows is represented by another license holder; or
1071	1071	(3) the communication occurs at a property that is
1072	1072	held open for any prospective buyer or tenant and the communication
1073	1073	concerns that property.
1074	1074	SECTION 60. Subchapter M, Chapter 1101, Occupations Code,
1075	1075	is amended by adding Section 1101.6011 to read as follows:
1076	1076	Sec. 1101.6011. APPLICABILITY TO BUSINESS ENTITY. For
1077	1077	purposes of this subchapter, a claim against a business entity
1078	1078	license holder is also a claim against the broker who is the
1079	1079	business entity's designated broker.
1080	1080	SECTION 61. Section 1101.602, Occupations Code, is amended
1081	1081	to read as follows:
1082	1082	Sec. 1101.602. ENTITLEMENT TO REIMBURSEMENT. An aggrieved
1083	1083	person is entitled to reimbursement from the trust account if a
1084	1084	person described by Section 1101.601 engages in conduct that
1085	1085	requires a license or certificate of registration under this
1086	1086	chapter and is described by Section 1101.652(a-1)(1)
1087	1087	[1101.652(a)(3)] or (b) or Section 1101.653(1), (2), (3), or (4),
1088	1088	as applicable.
1089	1089	SECTION 62. Sections 1101.603(a), (c), and (e), Occupations
1090	1090	Code, are amended to read as follows:
1091	1091	(a) In addition to other fees required by this chapter, the
1092	1092	commission shall collect [an applicant for an original license must
1093	1093	pay] a fee of $10 to deposit to the credit of the trust account from
1094	1094	an applicant for an original license or certificate of
1095	1095	registration.
1096	1096	(c) The commission shall deposit to the credit of the trust
1097	1097	account[:
1098	1098	[(1) fees collected under Subsections (a) and (b); and
1099	1099	[(2)] an administrative penalty collected under
1100	1100	Subchapter O for a violation by a person licensed as a broker or
1101	1101	sales agent [salesperson].
1102	1102	(e) On a determination by the commission at any time that
1103	1103	the balance in the trust account is less than $1 million, each
1104	1104	license or certificate holder at the next [license] renewal must
1105	1105	pay, in addition to the renewal fee, an additional [a] fee [that is
1106	1106	equal to the lesser] of $10 [or a pro rata share of the amount
1107	1107	necessary to obtain a balance in the trust account of $1.7 million].
1108	1108	The commission shall deposit the additional fee to the credit of the
1109	1109	trust account.
1110	1110	SECTION 63. Section 1101.605(b), Occupations Code, is
1111	1111	amended to read as follows:
1112	1112	(b) When an aggrieved person brings an action for a judgment
1113	1113	that may result in an agreed judgment and order for payment from the
1114	1114	trust account, the aggrieved person and the license or certificate
1115	1115	holder against whom the action is brought shall notify the
1116	1116	commission in writing before entry of the agreed judgment and
1117	1117	deliver a copy of all petitions and pleadings and the proposed
1118	1118	agreed judgment to the commission. The commission will notify the
1119	1119	parties not later than the 30th day after the date of receiving the
1120	1120	documents if the commission intends to relitigate material and
1121	1121	relevant issues as to the applicability of the trust account to the
1122	1122	agreed judgment as provided by Section 1101.608 [action].
1123	1123	SECTION 64. Section 1101.606, Occupations Code, is amended
1124	1124	by amending Subsections (a) and (b) and adding Subsection (c-1) to
1125	1125	read as follows:
1126	1126	(a) Except as provided by Subsections [Subsection] (c) and
1127	1127	(c-1), an aggrieved person who obtains a court judgment against a
1128	1128	license or certificate holder for an act described by Section
1129	1129	1101.602 may, after final judgment is entered, execution returned
1130	1130	nulla bona, and a judgment lien perfected, file a verified claim in
1131	1131	the court that entered the judgment.
1132	1132	(b) After the 20th day after the date the aggrieved person
1133	1133	gives written notice of the claim to the commission and judgment
1134	1134	debtor, the person may apply to the court that entered the judgment
1135	1135	for an order for payment from the trust account of the amount unpaid
1136	1136	on the judgment. The aggrieved person and the commission may
1137	1137	attempt to reach a settlement of the claim before setting a hearing
1138	1138	before the court. If the aggrieved person does not schedule a
1139	1139	hearing before the first anniversary of the date the application
1140	1140	was filed, recovery is waived [court shall proceed promptly on the
1141	1141	application].
1142	1142	(c-1) If the judgment obtained against the license holder
1143	1143	includes multiple defendants who are jointly and severally liable
1144	1144	or the judgment against the license holder was severed from a suit
1145	1145	with multiple defendants, the aggrieved person may not file a
1146	1146	verified claim in the court that entered the judgment until the
1147	1147	aggrieved person has obtained a judgment against all defendants and
1148	1148	received payment from or obtained a writ of execution returned
1149	1149	nulla bona for all defendants.
1150	1150	SECTION 65. Section 1101.607, Occupations Code, is amended
1151	1151	to read as follows:
1152	1152	Sec. 1101.607. ISSUES AT HEARING. At the hearing on the
1153	1153	application for payment from the trust account, the aggrieved
1154	1154	person must show:
1155	1155	(1) that the judgment is based on facts allowing
1156	1156	recovery under this subchapter;
1157	1157	(2) that the person is not:
1158	1158	(A) the spouse of the judgment debtor or the
1159	1159	personal representative of the spouse; [or]
1160	1160	(B) a license or certificate holder who is
1161	1161	seeking to recover compensation, including a commission, in the
1162	1162	real estate transaction that is the subject of the application for
1163	1163	payment; or
1164	1164	(C) related to the judgment debtor within the
1165	1165	first degree by consanguinity;
1166	1166	(3) that, according to the best information available,
1167	1167	the judgment debtor does not have sufficient attachable assets in
1168	1168	this or another state to satisfy the judgment;
1169	1169	(4) the amount that may be realized from the sale of
1170	1170	assets liable to be sold or applied to satisfy the judgment; and
1171	1171	(5) the balance remaining due on the judgment after
1172	1172	application of the amount under Subdivision (4).
1173	1173	SECTION 66. Sections 1101.608(a) and (c), Occupations Code,
1174	1174	are amended to read as follows:
1175	1175	(a) On receipt of notice under Section 1101.606, the
1176	1176	commission may agree to pay all or part of the claim without a
1177	1177	hearing. If the commission and the aggrieved person do not reach a
1178	1178	settlement or the commission does not agree that the claim meets one
1179	1179	or more of the requirements of this subchapter [and the scheduling
1180	1180	of a hearing], the commission may notify the attorney general of the
1181	1181	commission's desire to schedule a hearing, enter an appearance,
1182	1182	file a response, appear at the hearing, defend the action, or take
1183	1183	any other action the commission considers appropriate.
1184	1184	(c) The commission may relitigate in the hearing any
1185	1185	material and relevant issue that was determined in the action that
1186	1186	resulted in the judgment, including an agreed judgment, in favor of
1187	1187	the aggrieved person.
1188	1188	SECTION 67. Section 1101.610, Occupations Code, is amended
1189	1189	by adding Subsection (e) to read as follows:
1190	1190	(e) For purposes of this section, a business entity and the
1191	1191	broker who is the business entity's designated broker are
1192	1192	considered a single license holder.
1193	1193	SECTION 68. Section 1101.615(a), Occupations Code, is
1194	1194	amended to read as follows:
1195	1195	(a) The commission by rule shall prescribe a notice
1196	1196	regarding the availability of payment from the trust account for
1197	1197	aggrieved persons and establish methods by which each [Each]
1198	1198	license and certificate holder shall provide the notice to
1199	1199	consumers and service recipients [of the availability of payment
1200	1200	from the trust account for aggrieved persons:
1201	1201	[(1) in conjunction with the notice required by
1202	1202	Section 1101.202;
1203	1203	[(2) on a written contract for the license or
1204	1204	certificate holder's services;
1205	1205	[(3) on a brochure that the license or certificate
1206	1206	holder distributes;
1207	1207	[(4) on a sign prominently displayed in the license or
1208	1208	certificate holder's place of business;
1209	1209	[(5) in a bill or receipt for the license or
1210	1210	certificate holder's services; or
1211	1211	[(6) in a prominent display on the Internet website of
1212	1212	a person regulated under this chapter].
1213	1213	SECTION 69. Sections 1101.651(b), (c), and (d), Occupations
1214	1214	Code, are amended to read as follows:
1215	1215	(b) A sales agent [salesperson] may not accept compensation
1216	1216	for a real estate transaction from a person other than the broker
1217	1217	that is sponsoring [with whom] the sales agent [salesperson is
1218	1218	associated] or was sponsoring the sales agent [associated] when the
1219	1219	sales agent [salesperson] earned the compensation.
1220	1220	(c) A sales agent [salesperson] may not pay a commission to
1221	1221	a person except through the broker that is sponsoring [with whom]
1222	1222	the sales agent [salesperson is associated] at that time.
1223	1223	(d) A broker and any broker or sales agent [salesperson]
1224	1224	appointed under Section 1101.560 who acts as an intermediary under
1225	1225	Subchapter L may not:
1226	1226	(1) disclose to the buyer or tenant that the seller or
1227	1227	landlord will accept a price less than the asking price, unless
1228	1228	otherwise instructed in a separate writing by the seller or
1229	1229	landlord;
1230	1230	(2) disclose to the seller or landlord that the buyer
1231	1231	or tenant will pay a price greater than the price submitted in a
1232	1232	written offer to the seller or landlord, unless otherwise
1233	1233	instructed in a separate writing by the buyer or tenant;
1234	1234	(3) disclose any confidential information or any
1235	1235	information a party specifically instructs the broker or sales
1236	1236	agent [salesperson] in writing not to disclose, unless:
1237	1237	(A) the broker or sales agent [salesperson] is
1238	1238	otherwise instructed in a separate writing by the respective party;
1239	1239	(B) the broker or sales agent [salesperson] is
1240	1240	required to disclose the information by this chapter or a court
1241	1241	order; or
1242	1242	(C) the information materially relates to the
1243	1243	condition of the property;
1244	1244	(4) treat a party to a transaction dishonestly; or
1245	1245	(5) violate this chapter.
1246	1246	SECTION 70. Section 1101.652, Occupations Code, is amended
1247	1247	to read as follows:
1248	1248	Sec. 1101.652. GROUNDS FOR SUSPENSION OR REVOCATION OF
1249	1249	LICENSE. (a) The commission may suspend or revoke a license issued
1250	1250	under this chapter or Chapter 1102 or take other disciplinary
1251	1251	action authorized by this chapter or Chapter 1102 if the license
1252	1252	holder:
1253	1253	(1) enters a plea of guilty or nolo contendere to or is
1254	1254	convicted of a felony or a criminal offense involving fraud, and the
1255	1255	time for appeal has elapsed or the judgment or conviction has been
1256	1256	affirmed on appeal, without regard to an order granting community
1257	1257	supervision that suspends the imposition of the sentence;
1258	1258	(2) procures or attempts to procure a license under
1259	1259	this chapter or Chapter 1102 for the license holder [or a
1260	1260	salesperson] by fraud, misrepresentation, or deceit or by making a
1261	1261	material misstatement of fact in an application for a license;
1262	1262	(3) [engages in misrepresentation, dishonesty, or
1263	1263	fraud when selling, buying, trading, or leasing real property in
1264	1264	the name of:
1265	1265	[(A) the license holder;
1266	1266	[(B) the license holder's spouse; or
1267	1267	[(C) a person related to the license holder
1268	1268	within the first degree by consanguinity;
1269	1269	[(4)] fails to honor, within a reasonable time, a
1270	1270	check issued to the commission after the commission has sent by
1271	1271	certified mail a request for payment to the license holder's last
1272	1272	known business address according to commission records;
1273	1273	(4) [(5) fails or refuses to produce on request, for
1274	1274	inspection by the commission or a commission representative, a
1275	1275	document, book, or record that is in the license holder's
1276	1276	possession and relates to a real estate transaction conducted by
1277	1277	the license holder;
1278	1278	[(6)] fails to provide, within a reasonable time,
1279	1279	information requested by the commission that relates to a formal or
1280	1280	informal complaint to the commission that would indicate a
1281	1281	violation of this chapter or Chapter 1102;
1282	1282	(5) [(7)] fails to surrender to the owner, without
1283	1283	just cause, a document or instrument that is requested by the owner
1284	1284	and that is in the license holder's possession;
1285	1285	(6) [(8) fails to use a contract form required by the
1286	1286	commission under Section 1101.155;
1287	1287	[(9)] fails to notify the commission, not later than
1288	1288	the 30th day after the date of a final conviction or the entry of a
1289	1289	plea of guilty or nolo contendere, that the person has been
1290	1290	convicted of or entered a plea of guilty or nolo contendere to a
1291	1291	felony or a criminal offense involving fraud; or
1292	1292	(7) [(10)] disregards or violates this chapter or
1293	1293	Chapter 1102.
1294	1294	(a-1) The commission may suspend or revoke a license issued
1295	1295	under this chapter or take other disciplinary action authorized by
1296	1296	this chapter if the license holder:
1297	1297	(1) engages in misrepresentation, dishonesty, or
1298	1298	fraud when selling, buying, trading, or leasing real property in
1299	1299	the name of:
1300	1300	(A) the license holder;
1301	1301	(B) the license holder's spouse; or
1302	1302	(C) a person related to the license holder within
1303	1303	the first degree by consanguinity;
1304	1304	(2) fails or refuses to produce on request, within a
1305	1305	reasonable time, for inspection by the commission or a commission
1306	1306	representative, a document, book, or record that is in the license
1307	1307	holder's possession and relates to a real estate transaction
1308	1308	conducted by the license holder; or
1309	1309	(3) fails to use a contract form required by the
1310	1310	commission under Section 1101.155.
1311	1311	(b) The commission may suspend or revoke a license issued
1312	1312	under this chapter or take other disciplinary action authorized by
1313	1313	this chapter if the license holder, while engaged in real estate
1314	1314	brokerage [acting as a broker or salesperson]:
1315	1315	(1) acts negligently or incompetently;
1316	1316	(2) engages in conduct that is dishonest or in bad
1317	1317	faith or that demonstrates untrustworthiness;
1318	1318	(3) makes a material misrepresentation to a potential
1319	1319	buyer concerning a significant defect, including a latent
1320	1320	structural defect, known to the license holder that would be a
1321	1321	significant factor to a reasonable and prudent buyer in making a
1322	1322	decision to purchase real property;
1323	1323	(4) fails to disclose to a potential buyer a defect
1324	1324	described by Subdivision (3) that is known to the license holder;
1325	1325	(5) makes a false promise that is likely to influence a
1326	1326	person to enter into an agreement when the license holder is unable
1327	1327	or does not intend to keep the promise;
1328	1328	(6) pursues a continued and flagrant course of
1329	1329	misrepresentation or makes false promises through an agent or sales
1330	1330	agent [salesperson], through advertising, or otherwise;
1331	1331	(7) fails to make clear to all parties to a real estate
1332	1332	transaction the party for whom the license holder is acting;
1333	1333	(8) receives compensation from more than one party to
1334	1334	a real estate transaction without the full knowledge and consent of
1335	1335	all parties to the transaction;
1336	1336	(9) fails within a reasonable time to properly account
1337	1337	for or remit money that is received by the license holder and that
1338	1338	belongs to another person;
1339	1339	(10) commingles money that belongs to another person
1340	1340	with the license holder's own money;
1341	1341	(11) pays a commission or a fee to or divides a
1342	1342	commission or a fee with a person other than a license holder or a
1343	1343	real estate broker or sales agent [salesperson] licensed in another
1344	1344	state for compensation for services as a real estate agent;
1345	1345	(12) fails to specify a definite termination date that
1346	1346	is not subject to prior notice in a contract, other than a contract
1347	1347	to perform property management services, in which the license
1348	1348	holder agrees to perform services for which a license is required
1349	1349	under this chapter;
1350	1350	(13) accepts, receives, or charges an undisclosed
1351	1351	commission, rebate, or direct profit on an expenditure made for a
1352	1352	principal;
1353	1353	(14) solicits, sells, or offers for sale real property
1354	1354	by means of a lottery;
1355	1355	(15) solicits, sells, or offers for sale real property
1356	1356	by means of a deceptive practice;
1357	1357	(16) acts in a dual capacity as broker and undisclosed
1358	1358	principal in a real estate transaction;
1359	1359	(17) guarantees or authorizes or permits a person to
1360	1360	guarantee that future profits will result from a resale of real
1361	1361	property;
1362	1362	(18) places a sign on real property offering the real
1363	1363	property for sale or lease without obtaining the written consent of
1364	1364	the owner of the real property or the owner's authorized agent;
1365	1365	(19) offers to sell or lease real property without the
1366	1366	knowledge and consent of the owner of the real property or the
1367	1367	owner's authorized agent;
1368	1368	(20) offers to sell or lease real property on terms
1369	1369	other than those authorized by the owner of the real property or the
1370	1370	owner's authorized agent;
1371	1371	(21) induces or attempts to induce a party to a
1372	1372	contract of sale or lease to break the contract for the purpose of
1373	1373	substituting a new contract;
1374	1374	(22) negotiates or attempts to negotiate the sale,
1375	1375	exchange, or lease of real property with an owner, landlord, buyer,
1376	1376	or tenant with knowledge that that person is a party to an
1377	1377	outstanding written contract that grants exclusive agency to
1378	1378	another broker in connection with the transaction;
1379	1379	(23) publishes or causes to be published an
1380	1380	advertisement, including an advertisement by newspaper, radio,
1381	1381	television, the Internet, or display, that misleads or is likely to
1382	1382	deceive the public, tends to create a misleading impression, or
1383	1383	fails to identify the person causing the advertisement to be
1384	1384	published as a licensed broker or agent;
1385	1385	(24) withholds from or inserts into a statement of
1386	1386	account or invoice a statement that the license holder knows makes
1387	1387	the statement of account or invoice inaccurate in a material way;
1388	1388	(25) publishes or circulates an unjustified or
1389	1389	unwarranted threat of a legal proceeding or other action;
1390	1390	(26) establishes an association by employment or
1391	1391	otherwise with a person other than a license holder if the person is
1392	1392	expected or required to act as a license holder;
1393	1393	(27) aids, abets, or conspires with another person to
1394	1394	circumvent this chapter;
1395	1395	(28) fails or refuses to provide, on request, a copy of
1396	1396	a document relating to a real estate transaction to a person who
1397	1397	signed the document;
1398	1398	(29) fails to advise a buyer in writing before the
1399	1399	closing of a real estate transaction that the buyer should:
1400	1400	(A) have the abstract covering the real estate
1401	1401	that is the subject of the contract examined by an attorney chosen
1402	1402	by the buyer; or
1403	1403	(B) be provided with or obtain a title insurance
1404	1404	policy;
1405	1405	(30) fails to deposit, within a reasonable time,
1406	1406	escrow or trust funds [money] the license holder receives [as
1407	1407	escrow agent] in a real estate transaction:
1408	1408	(A) in trust with a title company authorized to
1409	1409	do business in this state; or
1410	1410	(B) in a custodial, trust, or escrow account
1411	1411	maintained for that purpose in a banking institution authorized to
1412	1412	do business in this state;
1413	1413	(31) disburses money deposited in a custodial, trust,
1414	1414	or escrow account, as provided in Subdivision (30), before the
1415	1415	completion or termination of the real estate transaction;
1416	1416	(32) discriminates against an owner, potential buyer,
1417	1417	landlord, or potential tenant on the basis of race, color,
1418	1418	religion, sex, disability, familial status, national origin, or
1419	1419	ancestry, including directing a prospective buyer or tenant
1420	1420	interested in equivalent properties to a different area based on
1421	1421	the race, color, religion, sex, disability, familial status,
1422	1422	national origin, or ancestry of the potential owner or tenant; or
1423	1423	(33) disregards or violates this chapter.
1424	1424	SECTION 71. Section 1101.655, Occupations Code, is amended
1425	1425	by amending Subsections (a) and (b) and adding Subsection (d) to
1426	1426	read as follows:
1427	1427	(a) The commission shall [may] revoke a license, approval,
1428	1428	or registration issued under this chapter or Chapter 1102 if:
1429	1429	(1) the commission makes a payment from the real
1430	1430	estate recovery trust account under Subchapter M on behalf of a [to
1431	1431	satisfy all or part of a judgment against the] license or
1432	1432	registration holder; and
1433	1433	(2) the license or registration holder does not repay
1434	1434	the real estate recovery trust account the full amount of a payment
1435	1435	made on the license or registration holder's behalf before the 31st
1436	1436	day after the date the commission provides notice to the license or
1437	1437	registration holder.
1438	1438	(b) The commission may probate an order revoking a license,
1439	1439	approval, or registration under this section.
1440	1440	(d) For the purposes of this section, if payment is made
1441	1441	from the real estate recovery trust account on behalf of a business
1442	1442	entity license holder or a designated broker of a business entity
1443	1443	license holder, the commission shall proceed under Subsection (a)
1444	1444	against both the business entity and designated broker.
1445	1445	SECTION 72. Section 1101.6561, Occupations Code, is amended
1446	1446	to read as follows:
1447	1447	Sec. 1101.6561. SUSPENSION OR REVOCATION OF EDUCATIONAL
1448	1448	PROGRAM [ACCREDITATION]. The commission may suspend or revoke the
1449	1449	approval to offer a program or course of study [an accreditation]
1450	1450	issued under Subchapter G or take any other disciplinary action
1451	1451	authorized by this chapter if the provider of an educational
1452	1452	program or course of study violates this chapter or a rule adopted
1453	1453	under this chapter.
1454	1454	SECTION 73. Section 1101.661, Occupations Code, is amended
1455	1455	to read as follows:
1456	1456	Sec. 1101.661. FINAL ORDER. The commission may issue a
1457	1457	final order in a proceeding under this subchapter or Subchapter O
1458	1458	regarding a person whose license has expired [during the course of
1459	1459	an investigation or administrative proceeding].
1460	1460	SECTION 74. Section 1101.662(c), Occupations Code, is
1461	1461	amended to read as follows:
1462	1462	(c) A license may be suspended under this section without
1463	1463	notice or hearing on the complaint if:
1464	1464	(1) institution of proceedings for a contested case
1465	1465	hearing [before the commission] is initiated simultaneously with
1466	1466	the temporary suspension; and
1467	1467	(2) a hearing is held under Chapter 2001, Government
1468	1468	Code, and this chapter as soon as possible.
1469	1469	SECTION 75. Subchapter N, Chapter 1101, Occupations Code,
1470	1470	is amended by adding Section 1101.663 to read as follows:
1471	1471	Sec. 1101.663. REAPPLYING AFTER REVOCATION, SURRENDER, OR
1472	1472	DENIAL. A person whose license or registration has been revoked, a
1473	1473	person who has surrendered a license or registration issued by the
1474	1474	commission, or a person whose application for a license or
1475	1475	registration has been denied after a hearing under Section 1101.657
1476	1476	may not apply to the commission for a license or registration before
1477	1477	the second anniversary of the date of the revocation, surrender, or
1478	1478	denial.
1479	1479	SECTION 76. Subchapter N, Chapter 1101, Occupations Code,
1480	1480	is amended by adding Section 1101.664 to read as follows:
1481	1481	Sec. 1101.664. FAILURE TO APPEAR; COSTS. (a) If a
1482	1482	respondent receives proper notice of a contested case hearing but
1483	1483	does not appear in person at the hearing, the administrative law
1484	1484	judge may conduct the hearing or enter an order, as the
1485	1485	administrative law judge determines appropriate.
1486	1486	(b) The respondent is bound by the results of the hearing to
1487	1487	the same extent as if the respondent had appeared.
1488	1488	(c) The administrative law judge may award reasonable costs
1489	1489	to the commission on a request for and proof of costs incurred if
1490	1490	the respondent fails to appear at the hearing. In this subsection,
1491	1491	the term "costs" means all costs associated with the hearing,
1492	1492	including the costs charged by the State Office of Administrative
1493	1493	Hearings and any costs related to hearing preparation, discovery,
1494	1494	depositions, subpoenas, service of process, witness expenses,
1495	1495	travel expenses, and investigation expenses.
1496	1496	SECTION 77. Section 1101.7015, Occupations Code, is amended
1497	1497	to read as follows:
1498	1498	Sec. 1101.7015. DELEGATION OF EXECUTIVE DIRECTOR'S
1499	1499	[ADMINISTRATOR'S] AUTHORITY. The commission may authorize the
1500	1500	executive director [administrator] to delegate to another
1501	1501	commission employee the executive director's [administrator's]
1502	1502	authority to act under this subchapter.
1503	1503	SECTION 78. Section 1101.702(b), Occupations Code, is
1504	1504	amended to read as follows:
1505	1505	(b) In determining the amount of the penalty, the executive
1506	1506	director [administrator] shall consider:
1507	1507	(1) the seriousness of the violation, including the
1508	1508	nature, circumstances, extent, and gravity of the prohibited acts;
1509	1509	(2) the history of previous violations;
1510	1510	(3) the amount necessary to deter a future violation;
1511	1511	(4) efforts to correct the violation; and
1512	1512	(5) any other matter that justice may require.
1513	1513	SECTION 79. Section 1101.703, Occupations Code, is amended
1514	1514	to read as follows:
1515	1515	Sec. 1101.703. NOTICE OF VIOLATION AND PENALTY. [(a)] If,
1516	1516	after investigation of a possible violation and the facts relating
1517	1517	to that violation, the executive director [administrator]
1518	1518	determines that a violation has occurred, the executive director
1519	1519	[administrator] may issue a notice of violation stating:
1520	1520	(1) a brief summary of the alleged violation;
1521	1521	(2) the executive director's [administrator's]
1522	1522	recommendation on the imposition of the administrative penalty or
1523	1523	another disciplinary sanction, including a recommendation on the
1524	1524	amount of the penalty; and
1525	1525	(3) that the respondent has the right to a hearing to
1526	1526	contest the alleged violation, the recommended penalty, or both.
1527	1527	SECTION 80. Section 1101.704, Occupations Code, is amended
1528	1528	to read as follows:
1529	1529	Sec. 1101.704. PENALTY TO BE PAID OR HEARING REQUESTED. (a)
1530	1530	Not later than the 20th day after the date the person receives the
1531	1531	notice under Section 1101.703, the person may:
1532	1532	(1) accept the executive director's [administrator's]
1533	1533	determination, including the recommended administrative penalty;
1534	1534	or
1535	1535	(2) request in writing a hearing on the occurrence of
1536	1536	the violation, the amount of the penalty, or both.
1537	1537	(b) If the person accepts the executive director's
1538	1538	[administrator's] determination, or fails to respond in a timely
1539	1539	manner to the notice, the commission by order shall approve the
1540	1540	determination and order payment of the recommended penalty or
1541	1541	impose the recommended sanction.
1542	1542	SECTION 81. Section 1101.706, Occupations Code, is amended
1543	1543	to read as follows:
1544	1544	Sec. 1101.706. NOTICE OF ORDER. The executive director
1545	1545	[administrator] shall give notice of the commission's order to the
1546	1546	person. The notice must:
1547	1547	(1) include the findings of fact and conclusions of
1548	1548	law, separately stated;
1549	1549	(2) state the amount of any penalty imposed;
1550	1550	(3) inform the person of the person's right to judicial
1551	1551	review of the order; and
1552	1552	(4) include other information required by law.
1553	1553	SECTION 82. Sections 1101.707(b) and (c), Occupations Code,
1554	1554	are amended to read as follows:
1555	1555	(b) Within the 30-day period prescribed by Subsection (a), a
1556	1556	person who files a petition for judicial review may:
1557	1557	(1) stay enforcement of the penalty by:
1558	1558	(A) paying the penalty to the court for placement
1559	1559	in an escrow account; or
1560	1560	(B) giving the court a supersedeas bond in a form
1561	1561	approved by the court that:
1562	1562	(i) is for the amount of the penalty; and
1563	1563	(ii) is effective until judicial review of
1564	1564	the order is final; or
1565	1565	(2) request the court to stay enforcement by:
1566	1566	(A) filing with the court an affidavit of the
1567	1567	person stating that the person is financially unable to pay the
1568	1568	penalty and is financially unable to give the supersedeas bond; and
1569	1569	(B) giving a copy of the affidavit to the
1570	1570	executive director [administrator] by certified mail.
1571	1571	(c) If the executive director [administrator] receives a
1572	1572	copy of an affidavit under Subsection (b)(2), the executive
1573	1573	director [administrator] may file with the court, within five days
1574	1574	after the date the copy is received, a contest to the affidavit.
1575	1575	SECTION 83. Section 1101.708, Occupations Code, is amended
1576	1576	to read as follows:
1577	1577	Sec. 1101.708. COLLECTION OF PENALTY. (a) If the person
1578	1578	does not pay the administrative penalty and the enforcement of the
1579	1579	penalty is not stayed, the executive director [administrator] may
1580	1580	refer the matter to the attorney general for collection of the
1581	1581	penalty.
1582	1582	(b) If the attorney general notifies the commission that the
1583	1583	attorney general will not pursue collection of the penalty, the
1584	1584	commission may pursue collection of the penalty by any lawful
1585	1585	means.
1586	1586	SECTION 84. The heading to Section 1101.753, Occupations
1587	1587	Code, is amended to read as follows:
1588	1588	Sec. 1101.753. CIVIL PENALTY FOR CERTAIN VIOLATIONS BY
1589	1589	BROKER, SALES AGENT [SALESPERSON], OR CERTIFICATE HOLDER.
1590	1590	SECTION 85. Section 1101.753(a), Occupations Code, is
1591	1591	amended to read as follows:
1592	1592	(a) In addition to injunctive relief under Sections
1593	1593	1101.751 and 1101.752, a person who receives a commission or other
1594	1594	consideration as a result of acting as a broker or sales agent
1595	1595	[salesperson] without holding a license or certificate of
1596	1596	registration under this chapter is liable to the state for a civil
1597	1597	penalty of not less than the amount of money received or more than
1598	1598	three times the amount of money received.
1599	1599	SECTION 86. The heading to Section 1101.754, Occupations
1600	1600	Code, is amended to read as follows:
1601	1601	Sec. 1101.754. PRIVATE CAUSE OF ACTION FOR CERTAIN
1602	1602	VIOLATIONS BY BROKER, SALES AGENT [SALESPERSON], OR CERTIFICATE
1603	1603	HOLDER.
1604	1604	SECTION 87. Section 1101.754(a), Occupations Code, is
1605	1605	amended to read as follows:
1606	1606	(a) A person who receives a commission or other
1607	1607	consideration as a result of acting as a broker or sales agent
1608	1608	[salesperson] without holding a license or certificate of
1609	1609	registration under this chapter is liable to an aggrieved person
1610	1610	for a penalty of not less than the amount of money received or more
1611	1611	than three times the amount of money received.
1612	1612	SECTION 88. The heading to Section 1101.758, Occupations
1613	1613	Code, is amended to read as follows:
1614	1614	Sec. 1101.758. CRIMINAL PENALTY FOR CERTAIN VIOLATIONS BY
1615	1615	BROKER, SALES AGENT [SALESPERSON], OR CERTIFICATE HOLDER.
1616	1616	SECTION 89. Section 1101.758(a), Occupations Code, is
1617	1617	amended to read as follows:
1618	1618	(a) A person commits an offense if the person acts as a
1619	1619	broker or sales agent [salesperson] without holding a license under
1620	1620	this chapter or engages in an activity for which a certificate of
1621	1621	registration is required under this chapter without holding a
1622	1622	certificate.
1623	1623	SECTION 90. Section 1101.803, Occupations Code, is amended
1624	1624	to read as follows:
1625	1625	Sec. 1101.803. GENERAL LIABILITY OF BROKER. A licensed
1626	1626	broker is liable to the commission, the public, and the broker's
1627	1627	clients for any conduct engaged in under this chapter by the broker
1628	1628	or by a sales agent [salesperson] associated with or acting for the
1629	1629	broker.
1630	1630	SECTION 91. Section 1101.805(c), Occupations Code, is
1631	1631	amended to read as follows:
1632	1632	(c) This section does not diminish a broker's
1633	1633	responsibility for the acts or omissions of a sales agent
1634	1634	[salesperson] associated with or acting for the broker.
1635	1635	SECTION 92. Section 1101.806(b), Occupations Code, is
1636	1636	amended to read as follows:
1637	1637	(b) A person may not maintain an action to collect
1638	1638	compensation for an act as a broker or sales agent [salesperson]
1639	1639	that is performed in this state unless the person alleges and proves
1640	1640	that the person was:
1641	1641	(1) a license holder at the time the act was commenced;
1642	1642	or
1643	1643	(2) an attorney licensed in any state.
1644	1644	SECTION 93. Section 1105.003, Occupations Code, is amended
1645	1645	by adding Subsection (e-1) to read as follows:
1646	1646	(e-1) This subsection and Subsection (e) expire September
1647	1647	1, 2017.
1648	1648	SECTION 94. Sections 1101.106(c), 1101.152(c), 1101.455(d)
1649	1649	and (g), 1101.558(a), (d), and (e), 1101.603(b), and 1101.615(b),
1650	1650	Occupations Code, are repealed.
1651	1651	SECTION 95. Section 1101.060, Occupations Code, as added by
1652	1652	this Act, applies only to an action that is taken by a member of the
1653	1653	Texas Real Estate Commission on or after the effective date of this
1654	1654	Act. An action taken before that date is governed by the law in
1655	1655	effect on the date the action was taken, and the former law is
1656	1656	continued in effect for that purpose.
1657	1657	SECTION 96. The changes in law made by this Act relating to
1658	1658	the eligibility for a license or certificate of registration under
1659	1659	Chapter 1101, Occupations Code, or to requirements for an
1660	1660	application under that chapter apply only to an application
1661	1661	submitted to the Texas Real Estate Commission on or after the
1662	1662	effective date of this Act. An application submitted before that
1663	1663	date is governed by the law in effect on the date the application
1664	1664	was submitted, and the former law is continued in effect for that
1665	1665	purpose.
1666	1666	SECTION 97. The changes in law made by this Act relating to
1667	1667	an application for inactive status under Chapter 1101, Occupations
1668	1668	Code, apply only to an application for inactive status submitted to
1669	1669	the Texas Real Estate Commission on or after the effective date of
1670	1670	this Act. An application submitted before that date is governed by
1671	1671	the law in effect on the date the application was submitted, and the
1672	1672	former law is continued in effect for that purpose.
1673	1673	SECTION 98. Section 1101.405, Occupations Code, as amended
1674	1674	by this Act, does not apply to an examination taken before the
1675	1675	effective date of this Act.
1676	1676	SECTION 99. The Texas Real Estate Commission shall publish
1677	1677	and make available the guidelines and study guides required by
1678	1678	Section 1101.406, Occupations Code, as added by this Act, not later
1679	1679	than January 1, 2016.
1680	1680	SECTION 100. The changes in law made by this Act relating to
1681	1681	the requirements for renewal of a license or certificate of
1682	1682	registration under Chapter 1101, Occupations Code, or to the
1683	1683	continuing education requirements under that chapter apply only to
1684	1684	an application for renewal of a license or certificate that expires
1685	1685	on or after the effective date of this Act. A license or certificate
1686	1686	of registration that expires before that date is governed by the law
1687	1687	in effect immediately before the effective date of this Act, and the
1688	1688	former law is continued in effect for that purpose.
1689	1689	SECTION 101. The Texas Real Estate Commission shall adopt
1690	1690	rules prescribing the notice required by Section 1101.558,
1691	1691	Occupations Code, as amended by this Act, not later than January 1,
1692	1692	2016. A real estate broker or sales agent is not required to comply
1693	1693	with the requirements of that section, as amended by this Act,
1694	1694	before that date.
1695	1695	SECTION 102. The changes in law made by this Act to
1696	1696	Subchapter M, Chapter 1101, Occupations Code, apply only to a claim
1697	1697	commenced under that subchapter on or after the effective date of
1698	1698	this Act. A claim commenced before that date is governed by the law
1699	1699	in effect on the date the claim was commenced, and the former law is
1700	1700	continued in effect for that purpose.
1701	1701	SECTION 103. The changes in law made by this Act relating to
1702	1702	the grounds for disciplinary action under Chapter 1101 or 1102,
1703	1703	Occupations Code, apply only to conduct that occurs on or after the
1704	1704	effective date of this Act. Conduct that occurs before that date is
1705	1705	governed by the law in effect on the date the conduct occurred, and
1706	1706	the former law is continued in effect for that purpose.
1707	1707	SECTION 104. This Act takes effect September 1, 2015.