88R13270 TYPED
By: King of Hemphill H.B. No. 3878
A BILL TO BE ENTITLED
AN ACT
relating to the Texas Real Estate Research Center, the Real Estate
Research Advisory Committee, the Texas Real Estate Commission, and
the Texas Appraiser Licensing and Certification Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter C, Chapter 86,
Education Code, is amended to read as follows:
SUBCHAPTER C. TEXAS REAL ESTATE RESEARCH CENTER
SECTION 2. Section 86.51, Education Code, is amended to
read as follows:
Sec. 86.51. TEXAS REAL ESTATE RESEARCH CENTER. The Texas
Real Estate Research Center [There] is established at Texas A&M
University [a Real Estate Research Center, hereinafter referred to
as the center.] The operating budget, staffing, and activities of
the center shall be approved by the board of regents of The Texas
A&M University System.
SECTION 3. Section 86.52, Education Code, is amended by
amending Subsections (c), (d), (e), (f), (h), (i), (j), (k), and (l)
and adding Subsection (m) to read as follows:
(c) Members [Except for the initial appointees, members] of
the advisory committee hold office for staggered terms of six
years, with the terms of three members expiring on January 31 of
each odd-numbered year. [In making the initial appointments, the
governor shall designate three members, including two
representatives of the real estate industry and one representative
of the general public, for terms expiring in 1973, three for terms
expiring in 1975, and three for terms expiring in 1977.] Any vacancy
shall be filled by appointment for the unexpired portion of the
term. Each member shall serve until the member's [his] successor is
qualified.
(d) The presiding officer [chairman] of the Texas Real
Estate Commission, or a member of the commission designated by the
presiding officer [him], shall serve as an ex officio, nonvoting
member of the advisory committee.
(e) The advisory committee shall elect a presiding officer
and an assistant presiding officer from the committee's [its]
membership, and each officer shall serve for a term of one year.
(f) [The first meeting of the advisory committee shall be
called by the president of Texas A & M University or his designated
representative.] The advisory committee shall meet not less than
semiannually, and in addition on call of the committee's presiding
officer [its chairman], or on petition of any six of the committee's
[its] members, or on call of the executive director of the center
[president of Texas A & M University] or their [his] designated
representative.
(h) The executive director of the center [president of Texas
A & M University] or their [his] designated representative shall
submit to the advisory committee in advance of each fiscal year a
proposed budget for expenditures of all funds provided for the
center in a form that is related to the proposed schedule of
activities for the review and approval of the advisory committee.
For informational purposes only, a copy of the final [The proposed]
budget approved by the advisory committee shall be forwarded with
the comments of the committee to the board of directors of The Texas
A&M [A & M] University System prior to its action on the proposed
budget, and the board of directors of The Texas A & M University
System shall not authorize any expenditure that has not had the
prior approval of the advisory committee.
(i) The president of Texas A & M University or their [his]
designated representative shall submit to the advisory committee
for its review and approval a research agenda at the beginning of
each fiscal year and shall continuously inform the advisory
committee of changes in its substance and scheduling.
(j) Each member of the advisory committee [board] is
entitled to a per diem as provided in the center's budget [set by
legislative appropriation] for each day that the member engages in
the business of the committee [board]. A member may not receive any
compensation for travel expenses, including expenses for meals and
lodging, other than transportation expenses. A member is entitled
to compensation for transportation expenses as provided in
[prescribed by] the center's budget [General Appropriations Act].
(k) Except as provided by Subsection (l), the [The] advisory
committee is subject to Chapter 551, Government Code, Chapter 2001,
Government Code, and the provisions of Chapter 572, Government
Code.
(l) The advisory committee may conduct a meeting by
conference call or virtually through a third-party Internet
application as long as members of the general public are able to
participate in the meeting, and any discussions during the meeting,
if the meeting is not permitted to be conducted as a closed meeting
under Chapter 551, Government Code.
(m) The financial transactions of the center are subject to
audit by the state auditor in accordance with Chapter 321,
Government Code.
SECTION 4. Section 5.086, Property Code, is moved to
Subchapter A and renumbered as Section 5.____ and amended to read as
follows:
Sec. 5.____. EQUITABLE INTEREST DISCLOSURE. Before
entering into a contract to sell an option or assign an interest in
a contract to purchase real property, a person [selling an option or
assigning an interest in a contract to purchase real property] must
disclose, in writing, to:
(1) any [potential} buyer that the person is selling
only an option or assigning an interest in a contract and that the
person does not have legal title to the real property; and
(2) the seller of the real property that the person [is
selling only] intends to sell an option or [assigning] assign an
interest in a contract [and that the person does not have legal
title to the real property].
SECTION 5. Section 1101.0045, Occupations Code, is amended
to read as follows:
Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY. (a)
A person may acquire an option or an interest in a contract to
purchase real property and then sell or offer to sell the option or
assign or offer to assign the contract without holding a license
issued under this chapter if the person:
(1) does not use the option or contract to purchase to
engage in real estate brokerage; and
(2) discloses the nature of the equitable interest, in
writing, to any [potential] buyer or seller.
(b) A person selling or offering to sell an option or
assigning or offering to assign an interest in a contract to
purchase real property without disclosing the nature of that
interest as provided by Subsection (a)(2) [to a potential buyer] is
engaging in real estate brokerage.
SECTION 6. Section 1101.054, Occupations Code, is amended
to read as follows:
Sec. 1101.054. OFFICIAL OATH. Not later than the 15th
calendar day after the date of appointment, each appointee must
take the constitutional oath of office.
SECTION 7. Section 1101.152, Occupations Code, is amended
by amending subsection (a) and adding new subsection (c) to read as
follows:
(a) The commission shall adopt rules to charge and collect
fees in amounts reasonable and necessary to cover the costs of
administering this chapter, including a fee for:
(1) filing an original application for a broker
license;
(2) renewal of a broker license;
(3) filing an original application for a sales agent
license;
(4) renewal of a sales agent license;
(5) registration as an easement or right-of-way agent;
(6) filing an application for a license examination;
(7) filing a request for a change of place of business,
change of name, return to active status, or change of sponsoring
broker;
(8) filing a request to replace a lost or destroyed
license or certificate of registration;
(9) filing an application for approval of an education
program under Subchapter G;
(10) annual operation of an education program under
Subchapter G;
(11) transcript evaluation;
(12) preparing a license or registration history;
(13) filing a request for a determination of fitness
to engage in a profession the commission regulates; [and]
(14) conducting a criminal history check for issuing
or renewing a license; and
(15) registration of a business entity.
(c) The commission shall adopt rules to set and collect fees
in amounts reasonable and necessary to cover the costs of
implementing the real estate recovery trust account as required
under this chapter.
SECTION 8. Section 1101.154(a), Occupations Code, is
amended to read as follows:
(a) The fee for the issuance or renewal of a:
(1) broker license is the amount of the fee set under
Section 1101.152 and for each year of the term for which the license
is renewed, an additional $70 fee;
(2) sales agent license is the amount of the fee set
under Section 1101.152 and for each year of the term for which the
license is issued or renewed, an additional $20 fee; and
(3) certificate of registration is the amount of the
fee set under Section 1101.152 and for each year of the term for
which the certificate is issued or renewed, an additional $20 fee.
SECTION 9. Section 1101.355, Occupations Code, is amended
by adding Subsections (d) and (e) to read as follows:
(d) Notwithstanding Subsection (c) or any other law, a
business entity is not required to be licensed under this chapter if
the business entity:
(1) receives compensation on behalf of a broker or
sales agent licensed under this chapter that is earned by the
license holder while engaged in real estate brokerage;
(2) performs no other acts of a broker;
(3) is:
(A) a limited liability company as defined by
Section 101.001, Business Organizations Code; or
(B) an S corporation as defined by 26 U.S.C.
Section 1361;
(4) is registered with the commission; and
(5) is at least 51 percent owned by the license holder
on whose behalf the entity receives compensation.
(e) The commission shall adopt rules providing for the
registration of a business entity described by Subsection (d).
SECTION 10. Section 1101.356, Occupations Code, is amended
by amending Subsections (a) and (b-1) to read as follows:
(a) An applicant for a broker license must provide to the
commission satisfactory evidence that the applicant:
(1) has had at least four years of active experience
[in this state] as a license holder during the 60 months preceding
the date the application is filed; and
(2) has successfully completed the number of hours
prescribed by commission rule, not to exceed [at least] 60 semester
hours, or equivalent classroom hours, of qualifying real estate
courses or related courses [postsecondary education, including:
(A) at least 18 semester hours or equivalent
classroom hours of qualifying real estate courses, two semester
hours of which must consist of a real estate brokerage course
completed not more than two years before the application date; and
(B) at least 42 semester hours of qualifying real
estate courses or related courses accepted by the commission].
(b-1) The commission by rule shall establish what
constitutes active experience for purposes of this section [and
Section 1101.357].
SECTION 11. Section 1101.358, Occupations Code, is amended
by amending Subsection (a) to read as follows:
(a) An applicant for a sales agent license must provide to
the commission satisfactory evidence that the applicant has
completed at least 12 semester hours, or equivalent classroom
hours, of [postsecondary] education consisting of:
(1) at least four semester hours of qualifying real
estate courses on principles of real estate; and
(2) at least two semester hours of each of the
following qualifying real estate courses:
(A) agency law;
(B) contract law;
(C) contract forms and addendums; and
(D) real estate finance.
SECTION 12. Section 1101.451(d) is amended to read as
follows:
(d) Except as provided by Subsection (e), a renewal fee for
a license under this chapter may not exceed, calculated on an annual
basis, the amount of the sum of the fees established under Sections
1101.152 and[,]1101.154[, and 1101.603].
SECTION 13. Section 1101.603, Occupations Code, is amended
to read as follows:
Sec. 1101.603. PAYMENTS INTO TRUST ACCOUNT. (a) [In
addition to other fees required by this chapter, the commission
shall collect a fee of $10 to deposit to the credit of the trust
account from an applicant for an original license or certificate of
registration.
(b) Repealed by Acts 2015, 84th Leg., R.S., Ch. 1158 , Sec.
92, eff. January 1, 2016.
(c)] Notwithstanding any other law, the commission shall
deposit to the credit of the trust account or the real estate
inspection recovery fund, as determined by the commission, an
administrative penalty collected under Subchapter O for a violation
by a person licensed under this chapter or Chapter 1102.
(b) [(d)] Notwithstanding any other law, an administrative
penalty collected under Subchapter O for a violation by a person who
is not licensed under this chapter or Chapter 1102 shall be
deposited to the credit of the trust account or the real estate
inspection recovery fund, as determined by the commission.
(c) [(e) On a determination by the commission at any time
that the balance in the trust account is less than $1 million, each
license or certificate holder at the next renewal must pay, in
addition to the renewal fee, an additional fee of $10. The
commission shall deposit the additional fee to the credit of the
trust account.
(f)] To ensure the availability of a sufficient amount to
pay anticipated claims on the trust account, the commission by rule
may provide for the collection of fees or assessments to deposit to
the credit of the trust account from an applicant for an original
license or certificate of registration or license or certificate
holder at the next renewal [at different times and under conditions
other than those specified by this chapter].
SECTION 14. Section 1101.610, Occupations Code, is amended
by amending Subsections (a) and (b) to read as follows:
Sec. 1101.610. PAYMENT LIMITS; ATTORNEY'S FEES. (a)
Payments from the trust account for claims, including attorney's
fees, interest, and court costs, arising out of a single
transaction may not exceed a total of $125,000 [$50,000],
regardless of the number of claimants.
(b) Payments from the trust account for claims based on
judgments against a single license or certificate holder may not
exceed a total of $250,000 [$100,000] until the license or
certificate holder has reimbursed the trust account for all amounts
paid.
SECTION 15. Subdivision (6), Section 1103.003, Occupations
Code, is amended to read as follows:
(6) Executive Director ["Commissioner"] means the
executive director [commissioner] of the Texas Appraiser Licensing
and Certification Board.
SECTION 16. Subsection (d), Section 1103.0545, Occupations
Code, is amended to read as follows:
(d) The executive director [commissioner] shall create a
training manual that includes the information required by
Subsection (b). The executive director [commissioner] shall
distribute a copy of the training manual annually to each member of
the board. Each member of the board shall sign and submit to the
executive director [commissioner] a statement acknowledging that
the member received and has reviewed the training manual.
SECTION 17. Subsection (c), Section 1103.057, Occupations
Code, is amended to read as follows:
(b) If the executive director [commissioner] has knowledge
that a potential ground for removal of an appointed board member
exists, the executive director [commissioner] shall notify the
presiding officer of the board of the potential ground. The
presiding officer shall immediately notify the governor and the
attorney general that a potential ground for removal exists. If the
potential ground for removal involves the presiding officer, the
executive director [commissioner] shall notify the next highest
ranking officer of the board, who shall immediately notify the
governor and the attorney general that a potential ground for
removal exists.
SECTION 18. The heading to Subchapter C, Chapter 1103,
Occupations Code, is amended to read as follows:
SUBCHAPTER C. EXECUTIVE DIRECTOR [COMMISSIONER] AND OTHER BOARD
PERSONNEL
SECTION 19. Section 1103.101, Occupations Code, is amended
to read as follows:
Sec. 1103.101. EXECUTIVE DIRECTOR [COMMISSIONER]. (a) The
executive director [administrator] of the Texas Real Estate
Commission shall serve as executive director [commissioner].
(b) The board may delegate to the executive director
[commissioner] the responsibility for administering this chapter
and Chapter 1104, including the approval of consent orders and
agreements.
SECTION 20. Section 1103.102, Occupations Code, is amended
to read as follows:
Sec. 1103.102. OTHER BOARD PERSONNEL. In addition to the
executive director [commissioner], the board may employ other
officers and employees as necessary to administer this chapter and
Chapter 1104.
SECTION 21. Section 1103.103, Occupations Code, is amended
to read as follows:
Sec. 1103.103. SALARIES. The executive director
[commissioner] shall determine the salaries of the officers and
employees of the board.
SECTION 22. Section 1103.104, Occupations Code, is amended
to read as follows:
Sec. 1103.104. DUTIES OF EXECUTIVE DIRECTOR
[COMMISSIONER]. The executive director [commissioner] shall:
(1) disseminate information;
(2) administer rules adopted by the board under this
chapter or Chapter 1104;
(3) review each application for a certificate or
license and make a recommendation for final action to the board;
(4) review and make recommendations to the board
regarding the adoption of rules relating to:
(A) the examination required by Subchapter F;
(B) education and experience requirements for
issuance of certificates and licenses;
(C) continuing education for a certified or
licensed appraiser;
(D) standards of professional practice and
ethics for a certified or licensed appraiser;
(E) standards for a real estate appraisal
performed by a certified or licensed appraiser; and
(F) the fees established by the board under
Section 1103.156 or Section 1104.052;
(5) collect fees established by the board;
(6) manage the staff and employees of the board; and
(7) perform any other duty prescribed by the board
under this chapter or Chapter 1104.
SECTION 23. Section 1103.105, Occupations Code, is amended
to read as follows:
Sec. 1103.105. DIVISION OF RESPONSIBILITIES. The board
shall develop and implement policies that clearly separate the
policymaking responsibilities of the board and the management
responsibilities of the executive director [commissioner] and the
staff of the board.
SECTION 24. Subsection (e), Section 1103.209, Occupations
Code, is amended to read as follows:
(e) An applicant for a certificate or license under this
chapter who is not a resident of this state must submit with the
application an irrevocable consent that states that service of
process in an action against the applicant arising out of the
applicant's activities as a certified or licensed appraiser in this
state may be made by delivery of the process to the executive
director [commissioner] if the plaintiff in the action, using due
diligence, cannot obtain personal service on the applicant. If
process is served as provided by this subsection, the executive
director [commissioner] shall immediately send a copy of the
material served on the executive director [commissioner] to the
certified or licensed appraiser at the appraiser's address of
record.
SECTION 25. Subsections (b) and (c), Section 1103.452,
Occupations Code, are amended to read as follows:
(b) An investigator designated by the executive director
[commissioner] shall investigate each allegation or formal
complaint.
(c) If the board determines at any time that an allegation
or formal complaint is inappropriate or without merit, the board or
the executive director [commissioner] shall dismiss the complaint
and may not take further action.
SECTION 26. Subsection (c), Section 1103.458, Occupations
Code, is amended to read as follows:
(c) A consent order must be:
(1) approved by the board; and
(2) signed by the executive director [commissioner]
and the appraiser or appraiser trainee who is the subject of the
complaint.
SECTION 27. Subsection (c), Section 1103.459, Occupations
Code, is amended to read as follows:
(c) A consent agreement must be:
(1) approved by the board; and
(2) signed by the executive director [commissioner]
and the appraiser or appraiser trainee who is the subject of the
complaint.
SECTION 28. Section 1103.5011, Occupations Code, is amended
to read as follows:
Sec. 1103.5011. NOTICE OF VIOLATION AND PENALTY. (a) The
executive director [commissioner] may send an appraiser against
whom a complaint has been filed a notice of violation including:
(1) a summary of the alleged violation;
(2) the recommended sanction, including the amount of
any administrative penalty sought; and
(3) a conspicuous notice that the respondent has the
right to a hearing to contest the alleged violation, the
recommended sanction, or both.
(b) Not later than the 20th day after the date the person
receives the notice under Subsection (a), the person may:
(1) accept the executive director's [commissioner's]
determination, including the recommended sanction; or
(2) request in writing a hearing, to be held under
Chapter 2001, Government Code, on the occurrence of the violation,
the sanction, or both.
SECTION 29. Section 1103.5012, Occupations Code, is amended
to read as follows:
Sec. 1103.5012. PENALTY TO BE PAID OR HEARING REQUESTED. If
the person accepts the executive director's [commissioner's]
determination, or fails to respond in a timely manner to the notice,
the board by order shall approve the determination and order
payment of the recommended penalty, impose the recommended
sanction, or both.
SECTION 30. Subsection (a), Section 1103.507, Occupations
Code, is amended to read as follows:
(a) The executive director [commissioner] shall issue a
subpoena to compel the attendance of a witness or the production of
records or other evidence if:
(1) a party to the proceeding requests the subpoena
orally or in writing;
(2) the request specifies each item of evidence sought
and the full name and address of each witness sought; and
(3) the party shows reasonable cause.
SECTION 31. Subsection (a), Section 1103.521, Occupations
Code, is amended to read as follows:
(a) The administrative law judge shall file the judge's
final decision in a contested case hearing with the executive
director [commissioner].
SECTION 32. The following provisions are repealed:
(1) Section 1101.357, Occupations Code;
(2) Section 1101.360(a), Occupations Code;
(3) Section 1101.361, Occupations Code;
(4) Section 1101.406, Occupations Code;
(5) Section 1101.604(d), Occupations Code; and
(6) Section 1103.259, Occupations Code.
SECTION 33. Section 1101.154(a), Occupations Code, as
amended by this Act, applies only to the issuance or renewal of a
license or certificate of registration under Chapter 1101,
Occupations Code, on or after the effective date of this Act.
SECTION 34. This Act takes effect January 1, 2024.