By: Kuempel H.B. No. 2378
A BILL TO BE ENTITLED
AN ACT
relating to regulation of real estate inspectors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1102.001, Occupations Code is amended as
follows:
Sec. 1102.001. DEFINITIONS. In this chapter:
(1) "Apprentice inspector" means a person who is in
training under the direct supervision of a professional inspector
or a real estate inspector to become qualified to perform real
estate inspections.
(2) "Broker" has the meaning assigned by Section
1101.002
(3) "Commission" means the Texas Real Estate
Commission.
(4) "Committee" means the Texas Real Estate Inspector
Committee.
(5) "Qualifying[Core] real estate inspection course"
means an educational course approved by the commission that relates
to real estate inspection, including a course on structural items,
electrical items, mechanical systems, plumbing systems, roofing,
business, law, standards of practice, report writing, appliances,
or ethics.
(6) "Inspector" means a person who holds a license
under this chapter.
(7) "License" means an apprentice inspector license,
real estate inspector license, or professional inspector license.
(8) "Professional inspector" means a person who
represents to the public that the person is trained and qualified to
perform a real estate inspection and who accepts employment to
perform a real estate inspection for a buyer or seller of real
property.
(9) "Real estate inspection" means a written or oral
opinion as to the condition of the improvements to real property,
including structural items, electrical items, mechanical systems,
plumbing systems, or equipment.
(10) "Real estate inspector" means a person licensed
before September 1, 2022 who represents to the public that the
person is trained and qualified to perform a real estate inspection
under the indirect supervision of a professional inspector and who
accepts employment to perform a real estate inspection for a buyer
or seller of real property.
(11) "Salesperson" has the meaning assigned by Section
1101.002.
SECTION 2. Section 1102.109, Occupations Code is amended as
follows:
Sec. 1102.109. ELIGIBILITY FOR PROFESSIONAL INSPECTOR
LICENSE. To be eligible for a professional inspector license, an
applicant must:
(1) at the time of application have:
(A) held an apprentice [a real estate] inspector
license for at least 12 months; and
(B) performed at least 175 real estate
inspections under indirect supervision;
(C) submit evidence satisfactory to the
commission of successful completion of at least 120[40] classroom
hours of qualifying[core] real estate inspection courses[, in
addition to the hours required by Section 1102.108];
(D) demonstrate competence based on the
examination under Subchapter D; and
(E) satisfy the commission as to the applicant's
honesty, trustworthiness, integrity, and competence
SECTION 3. Section 1102.111, Occupations Code is amended as
follows:
Sec. 1102.111. SUBSTITUTE REQUIREMENTS. (a) The
commission by rule shall provide for substitution of relevant
experience and additional education in place of:
(1) the number of real estate inspections required for
licensing; and
(2) the requirement that an applicant be[:
(A)] licensed as an apprentice inspector before
being licensed as a real estate inspector[; or
(B) licensed as a real estate inspector before
being licensed as a professional inspector].
(b) Rules adopted under Subsection (a) may not require an
applicant to:
(A) complete more than 320 additional hours of
qualifying[core] real estate inspection courses;
(B) complete more than 40 hours of field work, if the
applicant completes correspondence or other course provided by
alternative means; or
(C) have more than seven years of relevant experience.
SECTION 4. Section 1102.151, Occupations Code is amended as
Follows:
Sec. 1102.151. CONTENT OF EXAMINATION. (a) A license
examination must evaluate competence in the subject matter of each
required qualifying[core] real estate inspection course.
(b) The commission shall:
(1) prescribe each license examination; and
(2) prepare or contract for the examination
SECTION 5. Section 1102.205(b), Occupations Code is amended
as follows:
(b) As a prerequisite for renewal of a real estate inspector
license, professional inspector license, or apprentice inspector
license, the inspector must participate in the continuing education
program and submit evidence satisfactory to the commission of
successful completion of at least 16 classroom hours of
qualifying[core] real estate inspection courses or continuing
education courses for each year of the license period preceding the
renewal.
SECTION 6. Section 1102.352(a) as is amended follows:
Sec. 1102.352. PAYMENTS INTO FUND. (a) In addition to any
other fees required by this chapter, the commission shall collect a
fee of $10 to deposit to the credit of the fund from an applicant for
an original license.[a person who passes a license examination must
pay a fee not to exceed $200. The commission shall deposit the fee
to the credit of the fund before issuing the license.]
SECTION 7. Chapter 1102, Occupation Code is amended by
adding Section 1102.409 as follows:
Sec. 1102.409. REAPPLYING AFTER REVOCATION, SURRENDER, OR
DENIAL. A person whose license as been revoked, a person who has
surrendered a license issued by the commission, or a person whose
application for a license has been denied after a hearing under
Section 1101.657 may not apply to the commission for a license
before the second anniversary of the date of the revocation,
surrender, or denial.
SECTION 8. Sections 1102.108 and 1102.110(a), and
1102.251(a)(2), Occupations Code are repealed.
SECTION 9. The changes in law made by this Act apply only to
an application for a license submitted to the Texas Real Estate
Commission on or after September 1, 2021. An application for a
license submitted before that date is governed by the law in effect
on the date the application was submitted, and the former law is
continued in effect for that purpose.
SECTION 10. This Act takes effect September 1, 2021.