Texas 2019 - 86th Regular

Texas House Bill HB1675 Compare Versions

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

Old	New	Differences
1	1	86R6852 TSR-D
2	2	By: Thompson of Harris H.B. No. 1675
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the Texas Real Estate
8	8	Commission and the Texas Appraiser Licensing and Certification
9	9	Board; changing fees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 1101.006, Occupations Code, is amended
12	12	to read as follows:
13	13	Sec. 1101.006. APPLICATION OF SUNSET ACT. The Texas Real
14	14	Estate Commission is subject to Chapter 325, Government Code (Texas
15	15	Sunset Act). Unless continued in existence as provided by that
16	16	chapter, the commission is abolished and this chapter, Chapter
17	17	1102, and Chapter 1303 of this code and Chapter 221, Property Code,
18	18	expire September 1, 2025 [2019].
19	19	SECTION 2. Section 1101.059, Occupations Code, is amended
20	20	by amending Subsections (b) and (c) and adding Subsection (d) to
21	21	read as follows:
22	22	(b) The training program must provide the person with
23	23	information regarding:
24	24	(1) the law governing commission operations [this
25	25	chapter and other laws regulated by the commission];
26	26	(2) the programs, functions, rules, and budget of the
27	27	commission;
28	28	(3) the scope of and limitations on the rulemaking
29	29	authority of the commission;
30	30	(4) the types of commission rules, interpretations,
31	31	and enforcement actions that may implicate federal antitrust law by
32	32	limiting competition or impacting prices charged by persons engaged
33	33	in a profession or business the commission regulates, including
34	34	rules, interpretations, and enforcement actions that:
35	35	(A) regulate the scope of practice of persons in
36	36	a profession or business the commission regulates;
37	37	(B) restrict advertising by persons in a
38	38	profession or business the commission regulates;
39	39	(C) affect the price of goods or services
40	40	provided by persons in a profession or business the commission
41	41	regulates; and
42	42	(D) restrict participation in a profession or
43	43	business the commission regulates;
44	44	(5) the results of the most recent formal audit of the
45	45	commission;
46	46	(6) [(4)] the requirements of:
47	47	(A) laws relating to open meetings, public
48	48	information, administrative procedure, and disclosure of conflicts
49	49	of interest; and
50	50	(B) other laws applicable to members of a state
51	51	policymaking body in performing their duties; and
52	52	(7) [(5)] any applicable ethics policies adopted by
53	53	the commission or the Texas Ethics Commission.
54	54	(c) A person appointed to the commission is entitled to
55	55	reimbursement, as provided by the General Appropriations Act, for
56	56	the travel expenses incurred in attending the training program
57	57	regardless of whether the attendance at the program occurs before
58	58	or after the person qualifies for office.
59	59	(d) The executive director of the commission shall create a
60	60	training manual that includes the information required by
61	61	Subsection (b). The executive director shall distribute a copy of
62	62	the training manual annually to each member of the commission. On
63	63	receipt of the training manual, each member of the commission shall
64	64	sign and submit to the executive director a statement acknowledging
65	65	receipt of the training manual.
66	66	SECTION 3. Section 1101.152, Occupations Code, is amended
67	67	to read as follows:
68	68	Sec. 1101.152. FEES. (a) The commission shall adopt rules
69	69	to charge and collect fees in amounts reasonable and necessary to
70	70	cover the costs of administering this chapter, including a fee for:
71	71	(1) filing an original application for a broker
72	72	license;
73	73	(2) renewal of a broker license;
74	74	(3) filing an original application for a sales agent
75	75	license;
76	76	(4) renewal of a sales agent license;
77	77	(5) registration as an easement or right-of-way agent;
78	78	(6) filing an application for a license examination;
79	79	(7) [filing a request for a branch office license;
80	80	[(8)] filing a request for a change of place of
81	81	business, change of name, return to active status, or change of
82	82	sponsoring broker;
83	83	(8) [(9)] filing a request to replace a lost or
84	84	destroyed license or certificate of registration;
85	85	(9) [(10)] filing an application for approval of an
86	86	education program under Subchapter G;
87	87	(10) [(11)] annual operation of an education program
88	88	under Subchapter G;
89	89	(11) [(12) filing an application for approval of an
90	90	instructor of qualifying real estate courses;
91	91	[(13)] transcript evaluation;
92	92	(12) [(14)] preparing a license or registration
93	93	history;
94	94	(13) [(15)] filing a request for a [moral character]
95	95	determination of fitness to engage in a profession the commission
96	96	regulates; and
97	97	(14) [(16)] conducting a criminal history check for
98	98	issuing or renewing a license.
99	99	(b) The commission shall adopt rules to set and collect fees
100	100	in amounts reasonable and necessary to cover the costs of
101	101	implementing the continuing education requirements for license
102	102	holders, including a fee for:
103	103	(1) an application for approval of a continuing
104	104	education provider; and
105	105	(2) an application for approval of a continuing
106	106	education course of study[;
107	107	[(3) an application for approval of an instructor of
108	108	continuing education courses; and
109	109	[(4) attendance at a program to train instructors of a
110	110	continuing education course prescribed under Section 1101.455].
111	111	SECTION 4. Section 1101.204, Occupations Code, is amended
112	112	by adding Subsection (i) to read as follows:
113	113	(i) If the commission determines at any time that an
114	114	allegation made or formal complaint submitted by a person is
115	115	inappropriate or without merit, the commission shall dismiss the
116	116	complaint and no further action may be taken. The commission may
117	117	delegate to commission staff the duty to dismiss complaints
118	118	described by this subsection.
119	119	SECTION 5. Section 1101.2051, Occupations Code, is amended
120	120	by adding Subsection (d-1) to read as follows:
121	121	(d-1) The commission shall protect the identity of a
122	122	complainant to the extent possible by excluding the complainant's
123	123	identifying information from a complaint notice sent to a
124	124	respondent.
125	125	SECTION 6. Section 1101.206(a), Occupations Code, is
126	126	amended to read as follows:
127	127	(a) The commission shall develop and implement policies
128	128	that provide the public with a reasonable opportunity to appear
129	129	before the commission and to speak on any agenda item at a regular
130	130	commission meeting [issue under the commission's jurisdiction].
131	131	SECTION 7. Section 1101.301, Occupations Code, is amended
132	132	by amending Subsection (a) and adding Subsections (b-1) and (f) to
133	133	read as follows:
134	134	(a) The commission, as necessary for the administration of
135	135	this chapter and Chapter 1102, may by rule:
136	136	(1) establish standards for the approval of qualifying
137	137	educational programs or courses of study in real estate and real
138	138	estate inspection conducted in this state, excluding programs and
139	139	courses offered by accredited colleges and universities; and
140	140	(2) develop minimum education and experience
141	141	requirements for an instructor of a course of study described by
142	142	Subdivision (1).
143	143	(b-1) For commission approval of an application to offer a
144	144	course of study under this section, the applicant must ensure that
145	145	the educational program's instructors meet the minimum education
146	146	and experience requirements developed by the commission under
147	147	Subsection (a)(2).
148	148	(f) The commission may deny approval of an application to
149	149	renew a program's approval to offer a program or course of study if
150	150	the applicant is in violation of a commission order. The denial of
151	151	an approval under this subsection is subject to the same provisions
152	152	as are applicable under Section 1101.364 to the denial of a license.
153	153	SECTION 8. Section 1101.303, Occupations Code, is amended
154	154	by adding Subsections (c) and (d) to read as follows:
155	155	(c) The commission may by rule develop minimum education and
156	156	experience requirements for an instructor of a continuing education
157	157	course of study. For commission approval of an application to offer
158	158	the course, the applicant must ensure that the course's instructors
159	159	meet the minimum education and experience requirements developed by
160	160	the commission under this subsection.
161	161	(d) The commission may deny an application to renew an
162	162	approval under this section if the applicant is in violation of a
163	163	commission order. The denial of an approval under this subsection
164	164	is subject to the same provisions as are applicable under Section
165	165	1101.364 to the denial of a license.
166	166	SECTION 9. The heading to Section 1101.353, Occupations
167	167	Code, is amended to read as follows:
168	168	Sec. 1101.353. [MORAL CHARACTER] DETERMINATION OF FITNESS.
169	169	SECTION 10. Sections 1101.353(a), (c), and (d), Occupations
170	170	Code, are amended to read as follows:
171	171	(a) If before applying for a license under this chapter a
172	172	person requests that the commission determine whether the person
173	173	possesses the fitness to engage in the profession for which the
174	174	license is required [person's moral character complies with the
175	175	commission's moral character requirements for licensing under this
176	176	chapter] and pays the required fee, the commission shall make its
177	177	determination of the person's fitness to engage in the profession
178	178	[moral character].
179	179	(c) If a person applies for a license after receiving notice
180	180	of a determination, the commission may conduct a supplemental
181	181	[moral character] determination of the person's fitness [person].
182	182	The supplemental determination may cover only the period after the
183	183	date the person requests a [moral character] determination of
184	184	fitness under this section.
185	185	(d) The commission may issue a provisional [moral
186	186	character] determination of fitness. The commission by rule shall
187	187	adopt reasonable terms for issuing a provisional [moral character]
188	188	determination of fitness.
189	189	SECTION 11. Section 1101.354, Occupations Code, is amended
190	190	to read as follows:
191	191	Sec. 1101.354. GENERAL ELIGIBILITY REQUIREMENTS. To be
192	192	eligible to receive a license under this chapter, a person must:
193	193	(1) at the time of application:
194	194	(A) be at least 18 years of age; and
195	195	(B) be a citizen of the United States or a
196	196	lawfully admitted alien; [and
197	197	[(C) be a resident of this state;]
198	198	(2) satisfy the commission as to the applicant's
199	199	honesty, trustworthiness, and integrity;
200	200	(3) demonstrate competence based on an examination
201	201	under Subchapter I; and
202	202	(4) complete the required courses of study, including
203	203	any required qualifying real estate courses prescribed under this
204	204	chapter.
205	205	SECTION 12. Subchapter J, Chapter 1101, Occupations Code,
206	206	is amended by adding Section 1101.459 to read as follows:
207	207	Sec. 1101.459. DENIAL OF LICENSE RENEWAL. (a) The
208	208	commission may deny the renewal of a license under this chapter if
209	209	the applicant is in violation of a commission order.
210	210	(b) The denial of a license renewal is subject to the same
211	211	provisions as are applicable under Section 1101.364 to the denial
212	212	of a license.
213	213	SECTION 13. Section 1101.505, Occupations Code, is amended
214	214	to read as follows:
215	215	Sec. 1101.505. DENIAL OF CERTIFICATE ISSUANCE OR RENEWAL.
216	216	(a) The denial of an original [a] certificate of registration or
217	217	renewal of a certificate of registration is subject to the same
218	218	provisions as are applicable under Section 1101.364 to the denial
219	219	of a license.
220	220	(b) The commission may deny the renewal of a certificate of
221	221	registration if the applicant is in violation of a commission
222	222	order.
223	223	SECTION 14. The heading to Section 1101.552, Occupations
224	224	Code, is amended to read as follows:
225	225	Sec. 1101.552. FIXED OFFICE REQUIRED; CHANGE OF ADDRESS[;
226	226	BRANCH OFFICES].
227	227	SECTION 15. Section 1101.652(a), Occupations Code, is
228	228	amended to read as follows:
229	229	(a) The commission may suspend or revoke a license issued
230	230	under this chapter or Chapter 1102 or take other disciplinary
231	231	action authorized by this chapter or Chapter 1102 if the license
232	232	holder:
233	233	(1) enters a plea of guilty or nolo contendere to or is
234	234	convicted of a felony or a criminal offense involving fraud, and the
235	235	time for appeal has elapsed or the judgment or conviction has been
236	236	affirmed on appeal, without regard to an order granting community
237	237	supervision that suspends the imposition of the sentence;
238	238	(2) procures or attempts to procure a license under
239	239	this chapter or Chapter 1102 for the license holder by fraud,
240	240	misrepresentation, or deceit or by making a material misstatement
241	241	of fact in an application for a license;
242	242	(3) fails to honor, within a reasonable time, a check
243	243	issued to the commission after the commission has sent by certified
244	244	mail a request for payment to the license holder's last known
245	245	business address according to commission records;
246	246	(4) fails to provide, within a reasonable time,
247	247	information requested by the commission that relates to a formal or
248	248	informal complaint to the commission that would indicate a
249	249	violation of this chapter or Chapter 1102;
250	250	(5) fails to surrender to the owner, without just
251	251	cause, a document or instrument that is requested by the owner and
252	252	that is in the license holder's possession;
253	253	(6) fails to consider market conditions for the
254	254	specific geographic area in which the license holder is providing a
255	255	service;
256	256	(7) fails to notify the commission, not later than the
257	257	30th day after the date of a final conviction or the entry of a plea
258	258	of guilty or nolo contendere, that the person has been convicted of
259	259	or entered a plea of guilty or nolo contendere to a felony or a
260	260	criminal offense involving fraud; or
261	261	(8) [(7)] disregards or violates this chapter or
262	262	Chapter 1102.
263	263	SECTION 16. Section 1102.106, Occupations Code, is amended
264	264	to read as follows:
265	265	Sec. 1102.106. [MORAL CHARACTER] DETERMINATION OF FITNESS.
266	266	As prescribed by Section 1101.353, the commission shall determine,
267	267	on request, whether a person possesses the fitness to engage in a
268	268	profession licensed [person's moral character complies with the
269	269	commission's moral character requirements for licensing] under
270	270	this chapter and may conduct a supplemental [moral character]
271	271	determination of the person's fitness [person].
272	272	SECTION 17. Section 1102.107, Occupations Code, is amended
273	273	to read as follows:
274	274	Sec. 1102.107. ELIGIBILITY FOR APPRENTICE INSPECTOR
275	275	LICENSE. To be eligible for an apprentice inspector license, an
276	276	applicant must:
277	277	(1) at the time of application be:
278	278	(A) at least 18 years of age; and
279	279	(B) a citizen of the United States or a lawfully
280	280	admitted alien; [and
281	281	[(C) a resident of this state;]
282	282	(2) be sponsored by a professional inspector; and
283	283	(3) satisfy the commission as to the applicant's
284	284	honesty, trustworthiness, and integrity.
285	285	SECTION 18. Subchapter E, Chapter 1102, Occupations Code,
286	286	is amended by adding Section 1102.206 to read as follows:
287	287	Sec. 1102.206. DENIAL OF LICENSE RENEWAL. (a) The
288	288	commission may deny the renewal of a license if the applicant is in
289	289	violation of a commission order.
290	290	(b) The provisions of Section 1101.459 governing the
291	291	commission's denial of a license renewal under that chapter apply
292	292	to the commission's denial of a license renewal under this chapter.
293	293	SECTION 19. Section 1103.006, Occupations Code, is amended
294	294	to read as follows:
295	295	Sec. 1103.006. APPLICATION OF SUNSET ACT. The Texas
296	296	Appraiser Licensing and Certification Board is subject to Chapter
297	297	325, Government Code (Texas Sunset Act). Unless continued in
298	298	existence as provided by that chapter, the board is abolished and
299	299	this chapter and Chapter 1104 expire September 1, 2025 [2019].
300	300	SECTION 20. Subchapter B, Chapter 1103, Occupations Code,
301	301	is amended by adding Section 1103.0521 to read as follows:
302	302	Sec. 1103.0521. MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)
303	303	In this section, "Texas trade association" means a cooperative and
304	304	voluntarily joined statewide association of business or
305	305	professional competitors in this state designed to assist its
306	306	members and its industry or profession in dealing with mutual
307	307	business or professional problems and in promoting their common
308	308	interest.
309	309	(b) A person may not be a member of the board and may not be a
310	310	board employee employed in a "bona fide executive, administrative,
311	311	or professional capacity," as that phrase is used for purposes of
312	312	establishing an exemption to the overtime provisions of the federal
313	313	Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
314	314	if:
315	315	(1) the person is an officer, employee, or paid
316	316	consultant of a Texas trade association in the field of real estate
317	317	brokerage or appraisal; or
318	318	(2) the person's spouse is an officer, manager, or paid
319	319	consultant of a Texas trade association in the field of real estate
320	320	brokerage or appraisal.
321	321	(c) A person may not serve as a board member or act as the
322	322	general counsel to the board if the person is required to register
323	323	as a lobbyist under Chapter 305, Government Code, because of the
324	324	person's activities for compensation on behalf of a profession
325	325	related to the operation of the board.
326	326	SECTION 21. Section 1103.054, Occupations Code, is amended
327	327	to read as follows:
328	328	Sec. 1103.054. ELIGIBILITY OF PUBLIC MEMBERS. A person is
329	329	not eligible for appointment as a public member of the board if the
330	330	person or the person's spouse:
331	331	(1) is a certified or licensed appraiser;
332	332	(2) is certified or licensed by an occupational
333	333	regulatory agency in the field of real estate brokerage or
334	334	appraisal;
335	335	(3) owns or controls, directly or indirectly, a
336	336	business entity or other organization whose primary purpose is to
337	337	engage in real estate sales, brokerage, or appraisal; [or]
338	338	(4) is employed by or participates in the management
339	339	of a business entity or other organization whose primary purpose is
340	340	to engage in real estate sales, brokerage, or appraisal; or
341	341	(5) uses or receives a substantial amount of tangible
342	342	goods, services, or money from the board other than compensation or
343	343	reimbursement authorized by law for board membership, attendance,
344	344	or expenses.
345	345	SECTION 22. Section 1103.0545, Occupations Code, is amended
346	346	by amending Subsections (b) and (c) and adding Subsection (d) to
347	347	read as follows:
348	348	(b) The training program must provide the person with
349	349	information regarding:
350	350	(1) the law governing board operations [this chapter
351	351	and other laws applicable to the board];
352	352	(2) the programs, functions, rules, and budget of the
353	353	board;
354	354	(3) the scope of and limitations on the rulemaking
355	355	authority of the board;
356	356	(4) the types of board rules, interpretations, and
357	357	enforcement actions that may implicate federal antitrust law by
358	358	limiting competition or impacting prices charged by persons engaged
359	359	in a profession or business the board regulates, including rules,
360	360	interpretations, and enforcement actions that:
361	361	(A) regulate the scope of practice of persons in
362	362	a profession or business the board regulates;
363	363	(B) restrict advertising by persons in a
364	364	profession or business the board regulates;
365	365	(C) affect the price of goods or services
366	366	provided by persons in a profession or business the board
367	367	regulates; and
368	368	(D) restrict participation in a profession or
369	369	business the board regulates;
370	370	(5) the results of the most recent formal audit of the
371	371	board;
372	372	(6) [(4)] the requirements of:
373	373	(A) laws relating to open meetings, public
374	374	information, administrative procedure, and disclosure of conflicts
375	375	of interest; and
376	376	(B) other laws applicable to members of a state
377	377	policymaking body in performing their duties; and
378	378	(7) [(5)] any applicable ethics policies adopted by
379	379	the board or the Texas Ethics Commission.
380	380	(c) A person appointed to the board is entitled to
381	381	reimbursement, as provided by the General Appropriations Act, for
382	382	the travel expenses incurred in attending the training program
383	383	regardless of whether the attendance at the program occurs before
384	384	or after the person qualifies for office.
385	385	(d) The commissioner shall create a training manual that
386	386	includes the information required by Subsection (b). The
387	387	commissioner shall distribute a copy of the training manual
388	388	annually to each member of the board. On receipt of the training
389	389	manual, each member of the board shall sign and submit to the board
390	390	a statement acknowledging receipt of the training manual.
391	391	SECTION 23. Section 1103.057(a), Occupations Code, is
392	392	amended to read as follows:
393	393	(a) It is a ground for removal from the board that an
394	394	appointed member:
395	395	(1) does not have at the time of appointment the
396	396	qualifications required by this subchapter for appointment to the
397	397	board;
398	398	(2) does not maintain during service on the board the
399	399	qualifications required by this subchapter for appointment to the
400	400	board;
401	401	(3) is ineligible for membership under Section
402	402	1103.0521 or 1103.054;
403	403	(4) cannot, because of illness or disability,
404	404	discharge the member's duties for a substantial part of the member's
405	405	term; or
406	406	(5) [(4)] is absent from more than half of the
407	407	regularly scheduled board meetings that the member is eligible to
408	408	attend during a calendar year, unless the absence is excused by a
409	409	majority vote of the board.
410	410	SECTION 24. Subchapter C, Chapter 1103, Occupations Code,
411	411	is amended by adding Section 1103.105 to read as follows:
412	412	Sec. 1103.105. DIVISION OF RESPONSIBILITIES. The board
413	413	shall develop and implement policies that clearly separate the
414	414	policymaking responsibilities of the board and the management
415	415	responsibilities of the commissioner and the staff of the board.
416	416	SECTION 25. Section 1103.153, Occupations Code, is amended
417	417	to read as follows:
418	418	Sec. 1103.153. RULES RELATING TO QUALIFYING OR CONTINUING
419	419	EDUCATION. (a) The board may adopt rules relating to:
420	420	(1) continuing education requirements for a certified
421	421	or licensed appraiser or an appraiser trainee; and
422	422	(2) the requirements for approval of a provider or [,]
423	423	course[, or instructor] for qualifying or continuing education.
424	424	(b) In addition to the rules adopted under Subsection (a),
425	425	the board may by rule develop minimum education and experience
426	426	requirements for an instructor of a course for qualifying or
427	427	continuing education. For board approval of a course provider
428	428	application, the applicant must ensure that the instructors meet
429	429	the minimum education and experience requirements.
430	430	SECTION 26. The heading to Section 1103.159, Occupations
431	431	Code, is amended to read as follows:
432	432	Sec. 1103.159. ADVISORY COMMITTEE ON APPRAISAL MANAGEMENT
433	433	COMPANIES.
434	434	SECTION 27. Subchapter D, Chapter 1103, Occupations Code,
435	435	is amended by adding Sections 1103.160, 1103.161, 1103.162, and
436	436	1103.163 to read as follows:
437	437	Sec. 1103.160. ADVISORY COMMITTEES. (a) The board may
438	438	appoint advisory committees to perform the advisory functions
439	439	assigned to the committees by the board. An advisory committee
440	440	under this section is subject to Chapter 2110, Government Code.
441	441	(b) A member of an advisory committee who is not a member of
442	442	the board may not receive compensation for service on the
443	443	committee. The member may receive reimbursement for actual and
444	444	necessary expenses incurred in performing committee functions as
445	445	provided by Section 2110.004, Government Code.
446	446	(c) A member of an advisory committee serves at the will of
447	447	the board.
448	448	(d) An advisory committee may hold a meeting by telephone
449	449	conference call or other video or broadcast technology.
450	450	(e) If the board appoints an advisory committee under this
451	451	section, the board shall adopt rules regarding:
452	452	(1) the advisory committee's purpose, role,
453	453	responsibility, and goals;
454	454	(2) size and quorum requirements;
455	455	(3) qualifications for membership, including
456	456	experience requirements and geographic representation;
457	457	(4) appointment procedures;
458	458	(5) membership terms;
459	459	(6) training requirements for advisory committee
460	460	members; and
461	461	(7) the advisory committee's compliance with Chapter
462	462	551, Government Code.
463	463	(f) In addition to the rules adopted under Subsection (e),
464	464	the board by rule shall adopt a process to regularly evaluate the
465	465	need for an advisory committee appointed under this section.
466	466	Sec. 1103.161. PUBLIC PARTICIPATION. The board shall
467	467	develop and implement policies that provide the public with a
468	468	reasonable opportunity to appear before the board and to speak on
469	469	any agenda item at a regular board meeting.
470	470	Sec. 1103.162. NEGOTIATED RULEMAKING AND ALTERNATIVE
471	471	DISPUTE RESOLUTION PROCEDURES. (a) The board shall develop and
472	472	implement a policy to encourage the use of:
473	473	(1) negotiated rulemaking procedures under Chapter
474	474	2008, Government Code, for the adoption of board rules; and
475	475	(2) appropriate alternative dispute resolution
476	476	procedures under Chapter 2009, Government Code, to assist in the
477	477	resolution of internal and external disputes under the board's
478	478	jurisdiction.
479	479	(b) The board's procedures relating to alternative dispute
480	480	resolution must conform, to the extent possible, to any model
481	481	guidelines issued by the State Office of Administrative Hearings
482	482	for the use of alternative dispute resolution by state agencies.
483	483	(c) The board shall:
484	484	(1) coordinate the implementation of the policy
485	485	adopted under Subsection (a);
486	486	(2) provide training as needed to implement the
487	487	procedures for negotiated rulemaking or alternative dispute
488	488	resolution; and
489	489	(3) collect data concerning the effectiveness of those
490	490	procedures.
491	491	Sec. 1103.163. COMPLAINT INFORMATION. (a) The board shall
492	492	maintain a system to promptly and efficiently act on complaints
493	493	filed with the board. The board shall maintain information about
494	494	parties to the complaint, the subject matter of the complaint, a
495	495	summary of the results of the review or investigation of the
496	496	complaint, and its disposition.
497	497	(b) The board shall make information available describing
498	498	its procedures for complaint investigation and resolution.
499	499	(c) The board shall periodically notify the complaint
500	500	parties of the status of the complaint until final disposition.
501	501	SECTION 28. Subchapter E, Chapter 1103, Occupations Code,
502	502	is amended by adding Section 1103.214 to read as follows:
503	503	Sec. 1103.214. DENIAL OF CERTIFICATE OR LICENSE RENEWAL.
504	504	(a) The board may deny the renewal of a certificate or license
505	505	issued under this chapter if the applicant is in violation of a
506	506	board order.
507	507	(b) The denial of a certificate or license renewal under
508	508	this section is subject to the same provisions as are applicable
509	509	under Section 1103.210 to the denial of a certificate or license.
510	510	SECTION 29. Section 1103.353, Occupations Code, is amended
511	511	to read as follows:
512	512	Sec. 1103.353. ELIGIBILITY REQUIREMENTS FOR APPRAISER
513	513	TRAINEE. To be eligible for a license as an appraiser trainee, an
514	514	applicant must:
515	515	(1) be at least 18 years of age;
516	516	(2) be a citizen of the United States or a lawfully
517	517	admitted alien;
518	518	(3) [have been a resident of this state for the 60 days
519	519	preceding the date the application is filed;
520	520	[(4)] satisfy the board as to the applicant's honesty,
521	521	trustworthiness, and integrity;
522	522	(4) [(5)] comply with the requirements of Sections
523	523	1103.203 and 1103.2031; and
524	524	(5) [(6)] meet all other qualifications established
525	525	by the board.
526	526	SECTION 30. Section 1103.460, Occupations Code, is amended
527	527	by adding Subsection (d-1) to read as follows:
528	528	(d-1) The board shall protect the identity of a complainant
529	529	to the extent possible by excluding the complainant's identifying
530	530	information from a complaint notice sent to a respondent.
531	531	SECTION 31. Section 1103.552(c), Occupations Code, is
532	532	amended to read as follows:
533	533	(c) Notwithstanding any other law, the board shall remit an
534	534	administrative penalty collected under this section to the
535	535	comptroller for deposit in the general revenue fund [shall be
536	536	deposited in a restricted fund maintained and operated by the board
537	537	to develop educational programs for appraisers or conduct studies
538	538	that enhance consumer protection].
539	539	SECTION 32. Subchapter L, Chapter 1103, Occupations Code,
540	540	is amended by adding Section 1103.5526 to read as follows:
541	541	Sec. 1103.5526. REFUND. (a) Subject to Subsection (b), the
542	542	board may order a person regulated by the board under this chapter
543	543	or Chapter 1104 to pay a refund to a consumer as provided in an
544	544	agreement resulting from an informal settlement conference or an
545	545	enforcement order instead of or in addition to imposing an
546	546	administrative penalty or other sanctions.
547	547	(b) The amount of a refund ordered as provided in an
548	548	agreement resulting from an informal settlement conference or an
549	549	enforcement order may not exceed the amount the consumer paid to the
550	550	person for a service regulated by the board. The board may not
551	551	require payment of other damages or estimate harm in a refund order.
552	552	SECTION 33. Section 1104.102(c), Occupations Code, is
553	553	amended to read as follows:
554	554	(c) A person owning more than 10 percent of an appraisal
555	555	management company in this state must[:
556	556	[(1) be of good moral character, as determined by the
557	557	board; and
558	558	[(2)] submit to a background investigation, as
559	559	determined by the board.
560	560	SECTION 34. Section 1104.104(b), Occupations Code, is
561	561	amended to read as follows:
562	562	(b) The controlling person designated under Subsection (a):
563	563	(1) must:
564	564	(A) be certified as an appraiser in at least one
565	565	state at all times during the designation; or
566	566	(B) have completed:
567	567	(i) the 15-hour national Uniform Standards
568	568	of Professional Appraisal Practice course; and
569	569	(ii) the seven-hour national Uniform
570	570	Standards of Professional Appraisal Practice update course not more
571	571	than two years before the renewal of the appraisal management
572	572	company's registration;
573	573	(2) may not have had a license or certificate to act as
574	574	an appraiser denied, revoked, or surrendered in lieu of revocation
575	575	in any state unless:
576	576	(A) the person has subsequently had the license
577	577	or certificate to act as an appraiser granted or reinstated; and
578	578	(B) the license or certificate to act as an
579	579	appraiser was denied, revoked, or surrendered for a nonsubstantive
580	580	reason as determined by the board; and
581	581	(3) [must be of good moral character, as determined by
582	582	the board; and
583	583	[(4)] shall submit to a background investigation, as
584	584	determined by the board.
585	585	SECTION 35. Section 1104.105, Occupations Code, is amended
586	586	by adding Subsection (a-1) to read as follows:
587	587	(a-1) The board may deny an application for registration
588	588	renewal if the applicant is in violation of a board order.
589	589	SECTION 36. Section 1104.2082, Occupations Code, is amended
590	590	by adding Subsection (e-1) to read as follows:
591	591	(e-1) The board shall protect the identity of a complainant
592	592	to the extent possible by excluding the complainant's identifying
593	593	information from a complaint notice sent to a respondent.
594	594	SECTION 37. Section 1105.004(b), Occupations Code, is
595	595	amended to read as follows:
596	596	(b) [Not later than August 31 of each fiscal year, the
597	597	agency shall remit a nonrefundable retainer to the state auditor in
598	598	an amount not less than $10,000.] The agency shall reimburse the
599	599	state auditor for all costs incurred[, in excess of the aggregate
600	600	nonrefundable retainer amounts paid each fiscal year,] in
601	601	performing the audits and shall provide to the governor a copy of
602	602	any audit performed.
603	603	SECTION 38. Sections 1105.005(b) and (c), Occupations Code,
604	604	are amended to read as follows:
605	605	(b) Before the beginning of each regular session of the
606	606	legislature, the agency shall submit to the legislature and the
607	607	governor a report describing all of the agency's activities in the
608	608	previous biennium. The report must include:
609	609	(1) an audit as required by Section 1105.004;
610	610	(2) a financial report of the previous fiscal year,
611	611	including reports on the financial condition and results of
612	612	operations;
613	613	(3) a description of all changes in fees imposed on
614	614	regulated persons;
615	615	(4) a report on changes in the regulatory jurisdiction
616	616	of the agency;
617	617	(5) a report on the number of examination candidates,
618	618	license, certificate, and registration holders, and enforcement
619	619	activities and any changes in those figures; and
620	620	(6) [(5)] a list of all new rules adopted or repealed.
621	621	(c) In addition to the reporting requirements of Subsection
622	622	(b), not later than November 1 of each year, the agency shall submit
623	623	to the governor, the committee of each house of the legislature that
624	624	has jurisdiction over appropriations, and the Legislative Budget
625	625	Board a report that contains:
626	626	(1) the salary for all agency personnel and the total
627	627	amount of per diem expenses and travel expenses paid for all agency
628	628	employees, including trend performance data for the preceding five
629	629	fiscal years;
630	630	(2) the total amount of per diem expenses and travel
631	631	expenses paid for each member of the agency, including trend
632	632	performance data for the preceding five fiscal years;
633	633	(3) the agency's operating plan covering a period of
634	634	two fiscal years [and the annual budgets of the commission and the
635	635	board]; [and]
636	636	(4) the agency's operating budget, including revenues
637	637	and a breakdown of expenditures by program and administrative
638	638	expense, showing:
639	639	(A) projected budget data for a period of two
640	640	fiscal years; and
641	641	(B) trend performance data for the preceding five
642	642	fiscal years; and
643	643	(5) trend performance data for the preceding five
644	644	fiscal years regarding:
645	645	(A) the number of full-time equivalent positions
646	646	at the agency;
647	647	(B) the number of complaints received from the
648	648	public and the number of complaints initiated by agency staff;
649	649	(C) the number of complaints dismissed and the
650	650	number of complaints resolved by enforcement action;
651	651	(D) the number of enforcement actions by sanction
652	652	type;
653	653	(E) the number of enforcement cases closed
654	654	through voluntary compliance;
655	655	(F) the amount of administrative penalties
656	656	assessed and the rate of collection of assessed administrative
657	657	penalties;
658	658	(G) the number of enforcement cases that allege a
659	659	threat to public health, safety, or welfare or a violation of
660	660	professional standards of care and the disposition of those cases;
661	661	(H) the average time to resolve a complaint;
662	662	(I) the number of license holders or regulated
663	663	persons broken down by type of license and license status,
664	664	including inactive status or retired status;
665	665	(J) the fee charged to issue and renew each type
666	666	of license, certificate, or registration issued by the agency;
667	667	(K) the average time to issue a license,
668	668	certificate, or registration;
669	669	(L) litigation costs, broken down by
670	670	administrative hearings, judicial proceedings, and outside counsel
671	671	costs; and
672	672	(M) reserve fund balances [a detailed report of
673	673	all revenue received and all expenses incurred by the agency in the
674	674	previous 12 months].
675	675	SECTION 39. Section 1105.007, Occupations Code, is amended
676	676	to read as follows:
677	677	Sec. 1105.007. PROPERTY. The commission or board may[:
678	678	[(1)] acquire by [purchase,] lease[, gift, or any
679	679	other manner provided by law] and maintain, use, and operate any
680	680	real, personal, or mixed property[, or any interest in property,]
681	681	necessary [or convenient] to the exercise of the respective powers,
682	682	rights, privileges, or functions of the commission or board[;
683	683	[(2) sell or otherwise dispose of any real, personal,
684	684	or mixed property, or any interest in property, that the commission
685	685	or board, as appropriate, determines is not necessary or convenient
686	686	to the exercise of the commission's or board's respective powers,
687	687	rights, privileges, or functions;
688	688	[(3) construct, extend, improve, maintain, and
689	689	reconstruct, or cause to construct, extend, improve, maintain, and
690	690	reconstruct, and use and operate all facilities necessary or
691	691	convenient to the exercise of the respective powers, rights,
692	692	privileges, or functions of the commission or board; and
693	693	[(4) borrow money, as may be authorized from time to
694	694	time by an affirmative vote of a two-thirds majority of the
695	695	commission or board, as appropriate, for a period not to exceed five
696	696	years if necessary or convenient to the exercise of the
697	697	commission's or board's respective powers, rights, privileges, or
698	698	functions].
699	699	SECTION 40. Section 1105.008(b), Occupations Code, is
700	700	amended to read as follows:
701	701	(b) The [Not later than August 31 of each fiscal year, the
702	702	agency shall remit a nonrefundable retainer to the office of the
703	703	attorney general in an amount of not less than $75,000. The
704	704	nonrefundable retainer shall be applied to any services provided to
705	705	the agency. If additional litigation services are required, the]
706	706	attorney general may assess and collect from the agency reasonable
707	707	attorney's fees[, in excess of the aggregate nonrefundable retainer
708	708	amount paid each fiscal year,] associated with any litigation under
709	709	this section.
710	710	SECTION 41. Section 1105.009, Occupations Code, is amended
711	711	to read as follows:
712	712	Sec. 1105.009. ADMINISTRATIVE HEARINGS. The [(a) Not later
713	713	than August 31 of each fiscal year, the agency shall remit a
714	714	nonrefundable retainer to the] State Office of Administrative
715	715	Hearings shall enter into a contract with the agency [in an amount
716	716	of not less than $75,000] for hearings conducted by the State Office
717	717	of Administrative Hearings under a law administered by the
718	718	commission or the board. The agency shall reimburse the State
719	719	Office of Administrative Hearings for costs incurred in conducting
720	720	the hearings.
721	721	[(b) The nonrefundable retainer shall be applied to the
722	722	costs associated with conducting the hearings. If additional
723	723	costs are incurred, the State Office of Administrative Hearings may
724	724	assess and collect from the agency reasonable fees, in excess of the
725	725	nonrefundable retainer amount paid each fiscal year, associated
726	726	with conducting the hearings.]
727	727	SECTION 42. Subchapter B, Chapter 1303, Occupations Code,
728	728	is amended by adding Section 1303.054 to read as follows:
729	729	Sec. 1303.054. COMPLAINT INVESTIGATION. If the commission
730	730	determines at any time that an allegation made or formal complaint
731	731	submitted by a person is inappropriate or without merit, the
732	732	commission shall dismiss the complaint and no further action may be
733	733	taken. The commission may delegate to staff the duty to dismiss
734	734	complaints described by this section.
735	735	SECTION 43. Subchapter C, Chapter 221, Property Code, is
736	736	amended by adding Section 221.0245 to read as follows:
737	737	Sec. 221.0245. COMPLAINT INVESTIGATION. If the commission
738	738	determines at any time that an allegation made or formal complaint
739	739	submitted by a person is inappropriate or without merit, the
740	740	commission shall dismiss the complaint and no further action may be
741	741	taken. The commission may delegate to commission staff the duty to
742	742	dismiss complaints under this section.
743	743	SECTION 44. Subchapter C, Chapter 221, Property Code, is
744	744	amended by adding Section 221.028 to read as follows:
745	745	Sec. 221.028. DENIAL OF REGISTRATION RENEWAL. (a) The
746	746	commission may deny the renewal of a registration under this
747	747	chapter if the developer is in violation of a commission order.
748	748	(b) The denial of a registration renewal under this section
749	749	is subject to the same provisions as are applicable under Section
750	750	1101.364, Occupations Code, to the denial of a license.
751	751	SECTION 45. Section 1101.552(c), Occupations Code, is
752	752	repealed.
753	753	SECTION 46. As soon as practicable after the effective date
754	754	of this Act, the Texas Real Estate Commission and the Texas
755	755	Appraiser Licensing and Certification Board shall adopt rules and
756	756	policies and enter into contracts necessary to implement the
757	757	changes in law made by this Act.
758	758	SECTION 47. The changes in law made by this Act relating to
759	759	an applicant's entitlement to a hearing following the denial of an
760	760	application to renew a license, certificate of registration, or
761	761	approval by the Texas Real Estate Commission or the Texas Appraiser
762	762	Licensing and Certification Board, as applicable, apply only to an
763	763	application for renewal that is submitted on or after the effective
764	764	date of this Act. An application for renewal that is submitted
765	765	before that date is governed by the law in effect on the date the
766	766	application was submitted, and the former law is continued in
767	767	effect for that purpose.
768	768	SECTION 48. (a) Except as provided by Subsection (b) of
769	769	this section, Sections 1101.059 and 1103.0545, Occupations Code, as
770	770	amended by this Act, apply to a member of the commission or board
771	771	appointed before, on, or after the effective date of this Act.
772	772	(b) A member of the commission or board who, before the
773	773	effective date of this Act, completed the training program required
774	774	by Section 1101.059 or 1103.0545, Occupations Code, as the
775	775	applicable law existed before the effective date of this Act, is
776	776	required to complete additional training only on the subjects added
777	777	by this Act to the training program required by Section 1101.059 or
778	778	1103.0545, Occupations Code, as applicable. A member described by
779	779	this subsection may not vote, deliberate, or be counted as a member
780	780	in attendance at a meeting of the applicable commission or board
781	781	held on or after December 1, 2019, until the member completes the
782	782	additional training.
783	783	SECTION 49. Sections 1101.354, 1102.107, and 1103.353,
784	784	Occupations Code, as amended by this Act, apply only to an
785	785	application submitted to the Texas Real Estate Commission or the
786	786	Texas Appraiser Licensing and Certification Board, as applicable,
787	787	on or after the effective date of this Act. An application
788	788	submitted before that date is governed by the law in effect on the
789	789	date the application was submitted, and the former law is continued
790	790	in effect for that purpose.
791	791	SECTION 50. Section 1101.652(a), Occupations Code, as
792	792	amended by this Act, and Section 1103.5526, Occupations Code, as
793	793	added by this Act, apply only to disciplinary action regarding
794	794	conduct that occurs on or after the effective date of this Act.
795	795	Conduct that occurs before that date is governed by the law in
796	796	effect on the date the conduct occurred, and the former law is
797	797	continued in effect for that purpose.
798	798	SECTION 51. Section 1103.0521, Occupations Code, as added
799	799	by this Act, and Section 1103.054, Occupations Code, as amended by
800	800	this Act, do not affect the entitlement of a member serving on the
801	801	Texas Appraiser Licensing and Certification Board immediately
802	802	before the effective date of this Act to continue to serve for the
803	803	remainder of the member's term. As the terms of board members
804	804	expire, the governor shall appoint or reappoint members who have
805	805	the qualifications required for members under Subchapter B, Chapter
806	806	1103, Occupations Code, as amended by this Act.
807	807	SECTION 52. Section 1103.552(c), Occupations Code, as
808	808	amended by this Act, applies only to an administrative penalty that
809	809	is collected on or after the effective date of this Act. An
810	810	administrative penalty collected before that date is governed by
811	811	the law in effect on the date the penalty was collected, and the
812	812	former law is continued in effect for that purpose.
813	813	SECTION 53. This Act takes effect September 1, 2019.