Texas 2023 - 88th Regular

Texas House Bill HB3878 Compare Versions

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Version 2 (New)

Old	New	Differences
1	1	88R19530 SCP-F
2	2	By: King of Hemphill, Thompson of Harris, H.B. No. 3878
3	3	Hernandez, Patterson, Smith
4	4	Substitute the following for H.B. No. 3878:
5	5	By: Goldman C.S.H.B. No. 3878
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the Texas Real Estate Research Center, the Real Estate
11	11	Research Advisory Committee, the Texas Real Estate Commission, and
12	12	the Texas Appraiser Licensing and Certification Board; increasing a
13	13	fee; authorizing a fee.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. The heading to Subchapter C, Chapter 86,
16	16	Education Code, is amended to read as follows:
17	17	SUBCHAPTER C. TEXAS REAL ESTATE RESEARCH CENTER
18	18	SECTION 2. Section 86.51, Education Code, is amended to
19	19	read as follows:
20	20	Sec. 86.51. TEXAS REAL ESTATE RESEARCH CENTER. The Texas
21	21	Real Estate Research Center [There] is established at Texas A&M
22	22	University [a Real Estate Research Center, hereinafter referred to
23	23	as the center]. The operating budget, staffing, and activities of
24	24	the center shall be approved by the board of regents of The Texas
25	25	A&M University System.
26	26	SECTION 3. Section 86.52, Education Code, is amended by
27	27	amending Subsections (c), (d), (e), (f), (h), (i), (j), (k), and (l)
28	28	and adding Subsection (m) to read as follows:
29	29	(c) Members [Except for the initial appointees, members] of
30	30	the advisory committee hold office for staggered terms of six
31	31	years, with the terms of three members expiring on January 31 of
32	32	each odd-numbered year. [In making the initial appointments, the
33	33	governor shall designate three members, including two
34	34	representatives of the real estate industry and one representative
35	35	of the general public, for terms expiring in 1973, three for terms
36	36	expiring in 1975, and three for terms expiring in 1977.] Any
37	37	vacancy shall be filled by appointment for the unexpired portion of
38	38	the term. Each member shall serve until the member's [his]
39	39	successor is qualified.
40	40	(d) The presiding officer [chairman] of the Texas Real
41	41	Estate Commission, or a member of the commission designated by the
42	42	presiding officer [him], shall serve as an ex officio, nonvoting
43	43	member of the advisory committee.
44	44	(e) The advisory committee shall elect a presiding officer
45	45	and an assistant presiding officer from the committee's [its]
46	46	membership, and each officer shall serve for a term of one year.
47	47	(f) [The first meeting of the advisory committee shall be
48	48	called by the president of Texas A & M University or his designated
49	49	representative.] The advisory committee shall meet not less than
50	50	semiannually, and in addition on call of the committee's presiding
51	51	officer [its chairman], [or] on petition of any six of the
52	52	committee's [its] members, or on call of the executive director of
53	53	the center [president of Texas A & M University] or the executive
54	54	director's [his] designated representative.
55	55	(h) The executive director of the center [president of Texas
56	56	A & M University] or the executive director's [his] designated
57	57	representative shall submit to the advisory committee in advance of
58	58	each fiscal year a budget for expenditures of all funds provided for
59	59	the center in a form that is related to the proposed schedule of
60	60	activities for the review and approval of the advisory committee.
61	61	The proposed budget approved by the advisory committee shall be
62	62	forwarded with the comments of the committee to the board of
63	63	directors of The Texas A&M [A & M] University System prior to its
64	64	action on the proposed budget, and the board of directors of The
65	65	Texas A&M [A & M] University System shall not authorize any
66	66	expenditure that has not had the prior approval of the advisory
67	67	committee.
68	68	(i) The president of Texas A&M [A & M] University or the
69	69	president's [his] designated representative shall submit to the
70	70	advisory committee for its review and approval a research agenda at
71	71	the beginning of each fiscal year and shall continuously inform the
72	72	advisory committee of changes in its substance and scheduling.
73	73	(j) Each member of the advisory committee [board] is
74	74	entitled to a per diem as provided in the center's budget [set by
75	75	legislative appropriation] for each day that the member engages in
76	76	the business of the committee [board]. A member is entitled to [may
77	77	not receive any] compensation for transportation and travel
78	78	expenses, including expenses for meals and lodging[, other than
79	79	transportation expenses. A member is entitled to compensation for
80	80	transportation expenses] as provided in [prescribed by] the
81	81	center's budget [General Appropriations Act].
82	82	(k) Except as provided by Subsection (l), the [The] advisory
83	83	committee is subject to Chapter 551, Government Code, Chapter 2001,
84	84	Government Code, and the provisions of Chapter 572, Government
85	85	Code.
86	86	(l) The advisory committee may conduct a meeting by
87	87	conference call or virtually through a third-party Internet
88	88	application as long as members of the general public are able to
89	89	participate in the meeting, and any discussions during the meeting,
90	90	if the meeting is not permitted to be conducted as a closed meeting
91	91	under Chapter 551, Government Code.
92	92	(m) The financial transactions of the center are subject to
93	93	audit by the state auditor in accordance with Chapter 321,
94	94	Government Code.
95	95	SECTION 4. Section 1101.0045, Occupations Code, is amended
96	96	to read as follows:
97	97	Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY. (a)
98	98	A person may acquire an option or an interest in a contract to
99	99	purchase real property and then sell or offer to sell the option or
100	100	assign or offer to assign the contract without holding a license
101	101	issued under this chapter if the person:
102	102	(1) does not use the option or contract to purchase to
103	103	engage in real estate brokerage; and
104	104	(2) discloses in writing the nature of the equitable
105	105	interest to any seller or potential buyer.
106	106	(b) A person selling or offering to sell an option or
107	107	assigning or offering to assign an interest in a contract to
108	108	purchase real property without disclosing the nature of that
109	109	interest as provided by Subsection (a)(2) [to a potential buyer] is
110	110	engaging in real estate brokerage.
111	111	SECTION 5. Section 1101.054, Occupations Code, is amended
112	112	to read as follows:
113	113	Sec. 1101.054. OFFICIAL OATH. Not later than the 15th
114	114	calendar day after the date of appointment, each appointee must
115	115	take the constitutional oath of office.
116	116	SECTION 6. Section 1101.152(a), Occupations Code, is
117	117	amended to read as follows:
118	118	(a) The commission shall adopt rules to charge and collect
119	119	fees in amounts reasonable and necessary to cover the costs of
120	120	administering this chapter and the real estate recovery trust
121	121	account as required by this chapter, including a fee for:
122	122	(1) filing an original application for a broker
123	123	license;
124	124	(2) renewal of a broker license;
125	125	(3) filing an original application for a sales agent
126	126	license;
127	127	(4) renewal of a sales agent license;
128	128	(5) registration as an easement or right-of-way agent;
129	129	(6) filing an application for a license examination;
130	130	(7) filing a request for a change of place of business,
131	131	change of name, return to active status, or change of sponsoring
132	132	broker;
133	133	(8) filing a request to replace a lost or destroyed
134	134	license or certificate of registration;
135	135	(9) filing an application for approval of an education
136	136	program under Subchapter G;
137	137	(10) annual operation of an education program under
138	138	Subchapter G;
139	139	(11) transcript evaluation;
140	140	(12) preparing a license or registration history;
141	141	(13) filing a request for a determination of fitness
142	142	to engage in a profession the commission regulates; [and]
143	143	(14) conducting a criminal history check for issuing
144	144	or renewing a license; and
145	145	(15) registering as a business entity under Section
146	146	1101.355(d).
147	147	SECTION 7. Section 1101.154(a), Occupations Code, is
148	148	amended to read as follows:
149	149	(a) The fee for the issuance or renewal of a:
150	150	(1) broker license is the amount of the fee set under
151	151	Section 1101.152 and an additional $70 fee for each year of the term
152	152	for which the license is issued or renewed;
153	153	(2) sales agent license is the amount of the fee set
154	154	under Section 1101.152 and an additional $20 fee for each year of
155	155	the term for which the license is issued or renewed; and
156	156	(3) certificate of registration is the amount of the
157	157	fee set under Section 1101.152 and an additional $20 fee for each
158	158	year of the term for which the certificate is issued or renewed.
159	159	SECTION 8. The heading to Section 1101.355, Occupations
160	160	Code, is amended to read as follows:
161	161	Sec. 1101.355. ADDITIONAL GENERAL ELIGIBILITY REQUIREMENTS
162	162	FOR BUSINESS ENTITIES; REGISTRATION OF CERTAIN BUSINESS ENTITIES.
163	163	SECTION 9. Section 1101.355, Occupations Code, is amended
164	164	by adding Subsections (d) and (e) to read as follows:
165	165	(d) Notwithstanding Subsection (c) or any other law, a
166	166	business entity is not required to be licensed under this chapter if
167	167	the business entity:
168	168	(1) receives compensation on behalf of a broker or
169	169	sales agent licensed under this chapter that is earned by the
170	170	license holder while engaged in real estate brokerage;
171	171	(2) performs no other acts of a broker;
172	172	(3) is:
173	173	(A) a limited liability company as defined by
174	174	Section 101.001, Business Organizations Code; or
175	175	(B) an S corporation as defined by 26 U.S.C.
176	176	Section 1361;
177	177	(4) is registered with the commission; and
178	178	(5) is at least 51 percent owned by the license holder
179	179	on whose behalf the entity receives compensation.
180	180	(e) The commission shall adopt rules providing for the
181	181	registration of a business entity described by Subsection (d).
182	182	SECTION 10. Sections 1101.356(a) and (b-1), Occupations
183	183	Code, are amended to read as follows:
184	184	(a) An applicant for a broker license must provide to the
185	185	commission satisfactory evidence that the applicant:
186	186	(1) has had at least four years of active experience
187	187	[in this state] as a license holder during the 60 months preceding
188	188	the date the application is filed; and
189	189	(2) has successfully completed the number of hours of
190	190	qualifying real estate and related courses required by commission
191	191	rule, not to exceed [at least] 60 semester hours[,] or equivalent
192	192	classroom hours[, of postsecondary education, including:
193	193	[(A) at least 18 semester hours or equivalent
194	194	classroom hours of qualifying real estate courses, two semester
195	195	hours of which must consist of a real estate brokerage course
196	196	completed not more than two years before the application date; and
197	197	[(B) at least 42 semester hours of qualifying
198	198	real estate courses or related courses accepted by the commission].
199	199	(b-1) The commission by rule shall establish what
200	200	constitutes active experience for purposes of this section [and
201	201	Section 1101.357].
202	202	SECTION 11. Section 1101.358(a), Occupations Code, is
203	203	amended to read as follows:
204	204	(a) An applicant for a sales agent license must provide to
205	205	the commission satisfactory evidence that the applicant has
206	206	completed at least 12 semester hours, or equivalent classroom
207	207	hours, of [postsecondary] education consisting of:
208	208	(1) at least four semester hours of qualifying real
209	209	estate courses on principles of real estate; and
210	210	(2) at least two semester hours of each of the
211	211	following qualifying real estate courses:
212	212	(A) agency law;
213	213	(B) contract law;
214	214	(C) contract forms and addendums; and
215	215	(D) real estate finance.
216	216	SECTION 12. Section 1101.451(d), Occupations Code, is
217	217	amended to read as follows:
218	218	(d) Except as provided by Subsection (e), a renewal fee for
219	219	a license under this chapter may not exceed, calculated on an annual
220	220	basis, the amount of the sum of the fees established under Sections
221	221	1101.152 and [,] 1101.154[, and 1101.603].
222	222	SECTION 13. Section 1101.603(f), Occupations Code, is
223	223	amended to read as follows:
224	224	(f) To ensure the availability of a sufficient amount to pay
225	225	anticipated claims on the trust account, the commission by rule may
226	226	provide for the collection of fees or assessments from an applicant
227	227	for an original license or certificate of registration or from a
228	228	license or certificate holder at the next renewal to credit to the
229	229	trust account [at different times and under conditions other than
230	230	those specified by this chapter].
231	231	SECTION 14. Sections 1101.610(a) and (b), Occupations Code,
232	232	are amended to read as follows:
233	233	(a) Payments from the trust account for claims, including
234	234	attorney's fees, interest, and court costs, arising out of a single
235	235	transaction may not exceed a total of $125,000 [$50,000],
236	236	regardless of the number of claimants.
237	237	(b) Payments from the trust account for claims based on
238	238	judgments against a single license or certificate holder may not
239	239	exceed a total of $250,000 [$100,000] until the license or
240	240	certificate holder has reimbursed the trust account for all amounts
241	241	paid.
242	242	SECTION 15. Section 1103.003(6), Occupations Code, is
243	243	amended to read as follows:
244	244	(6) "Executive director" ["Commissioner"] means the
245	245	executive director [commissioner] of the board [Texas Appraiser
246	246	Licensing and Certification Board].
247	247	SECTION 16. Section 1103.0545(d), Occupations Code, is
248	248	amended to read as follows:
249	249	(d) The executive director [commissioner] shall create a
250	250	training manual that includes the information required by
251	251	Subsection (b). The executive director [commissioner] shall
252	252	distribute a copy of the training manual annually to each member of
253	253	the board. Each member of the board shall sign and submit to the
254	254	executive director [commissioner] a statement acknowledging that
255	255	the member received and has reviewed the training manual.
256	256	SECTION 17. Section 1103.057(c), Occupations Code, is
257	257	amended to read as follows:
258	258	(c) If the executive director [commissioner] has knowledge
259	259	that a potential ground for removal of an appointed board member
260	260	exists, the executive director [commissioner] shall notify the
261	261	presiding officer of the board of the potential ground. The
262	262	presiding officer shall immediately notify the governor and the
263	263	attorney general that a potential ground for removal exists. If the
264	264	potential ground for removal involves the presiding officer, the
265	265	executive director [commissioner] shall notify the next highest
266	266	ranking officer of the board, who shall immediately notify the
267	267	governor and the attorney general that a potential ground for
268	268	removal exists.
269	269	SECTION 18. Subchapter C, Chapter 1103, Occupations Code,
270	270	is amended to read as follows:
271	271	SUBCHAPTER C. EXECUTIVE DIRECTOR [COMMISSIONER] AND OTHER BOARD
272	272	PERSONNEL
273	273	Sec. 1103.101. EXECUTIVE DIRECTOR [COMMISSIONER]. (a) The
274	274	administrator of the Texas Real Estate Commission shall serve as
275	275	executive director [commissioner].
276	276	(b) The board may delegate to the executive director
277	277	[commissioner] the responsibility for administering this chapter
278	278	and Chapter 1104, including the approval of consent orders and
279	279	agreements.
280	280	Sec. 1103.102. OTHER BOARD PERSONNEL. In addition to the
281	281	executive director [commissioner], the board may employ other
282	282	officers and employees as necessary to administer this chapter and
283	283	Chapter 1104.
284	284	Sec. 1103.103. SALARIES. The executive director
285	285	[commissioner] shall determine the salaries of the officers and
286	286	employees of the board.
287	287	Sec. 1103.104. DUTIES OF EXECUTIVE DIRECTOR
288	288	[COMMISSIONER]. The executive director [commissioner] shall:
289	289	(1) disseminate information;
290	290	(2) administer rules adopted by the board under this
291	291	chapter or Chapter 1104;
292	292	(3) review each application for a certificate or
293	293	license and make a recommendation for final action to the board;
294	294	(4) review and make recommendations to the board
295	295	regarding the adoption of rules relating to:
296	296	(A) the examination required by Subchapter F;
297	297	(B) education and experience requirements for
298	298	issuance of certificates and licenses;
299	299	(C) continuing education for a certified or
300	300	licensed appraiser;
301	301	(D) standards of professional practice and
302	302	ethics for a certified or licensed appraiser;
303	303	(E) standards for a real estate appraisal
304	304	performed by a certified or licensed appraiser; and
305	305	(F) the fees established by the board under
306	306	Section 1103.156 or Section 1104.052;
307	307	(5) collect fees established by the board;
308	308	(6) manage the staff and employees of the board; and
309	309	(7) perform any other duty prescribed by the board
310	310	under this chapter or Chapter 1104.
311	311	Sec. 1103.105. DIVISION OF RESPONSIBILITIES. The board
312	312	shall develop and implement policies that clearly separate the
313	313	policymaking responsibilities of the board and the management
314	314	responsibilities of the executive director [commissioner] and the
315	315	staff of the board.
316	316	SECTION 19. Section 1103.209(e), Occupations Code, is
317	317	amended to read as follows:
318	318	(e) An applicant for a certificate or license under this
319	319	chapter who is not a resident of this state must submit with the
320	320	application an irrevocable consent that states that service of
321	321	process in an action against the applicant arising out of the
322	322	applicant's activities as a certified or licensed appraiser in this
323	323	state may be made by delivery of the process to the executive
324	324	director [commissioner] if the plaintiff in the action, using due
325	325	diligence, cannot obtain personal service on the applicant. If
326	326	process is served as provided by this subsection, the executive
327	327	director [commissioner] shall immediately send a copy of the
328	328	material served on the executive director [commissioner] to the
329	329	certified or licensed appraiser at the appraiser's address of
330	330	record.
331	331	SECTION 20. Sections 1103.452(b) and (c), Occupations Code,
332	332	are amended to read as follows:
333	333	(b) An investigator designated by the executive director
334	334	[commissioner] shall investigate each allegation or formal
335	335	complaint.
336	336	(c) If the board determines at any time that an allegation
337	337	or formal complaint is inappropriate or without merit, the board or
338	338	the executive director [commissioner] shall dismiss the complaint
339	339	and may not take further action.
340	340	SECTION 21. Section 1103.458(c), Occupations Code, is
341	341	amended to read as follows:
342	342	(c) A consent order must be:
343	343	(1) approved by the board; and
344	344	(2) signed by the executive director [commissioner]
345	345	and the appraiser or appraiser trainee who is the subject of the
346	346	complaint.
347	347	SECTION 22. Section 1103.459(c), Occupations Code, is
348	348	amended to read as follows:
349	349	(c) A consent agreement must be:
350	350	(1) approved by the board; and
351	351	(2) signed by the executive director [commissioner]
352	352	and the appraiser or appraiser trainee who is the subject of the
353	353	complaint.
354	354	SECTION 23. Section 1103.5011, Occupations Code, is amended
355	355	to read as follows:
356	356	Sec. 1103.5011. NOTICE OF VIOLATION AND PENALTY. (a) The
357	357	executive director [commissioner] may send an appraiser against
358	358	whom a complaint has been filed a notice of violation including:
359	359	(1) a summary of the alleged violation;
360	360	(2) the recommended sanction, including the amount of
361	361	any administrative penalty sought; and
362	362	(3) a conspicuous notice that the respondent has the
363	363	right to a hearing to contest the alleged violation, the
364	364	recommended sanction, or both.
365	365	(b) Not later than the 20th day after the date the person
366	366	receives the notice under Subsection (a), the person may:
367	367	(1) accept the executive director's [commissioner's]
368	368	determination, including the recommended sanction; or
369	369	(2) request in writing a hearing, to be held under
370	370	Chapter 2001, Government Code, on the occurrence of the violation,
371	371	the sanction, or both.
372	372	SECTION 24. Section 1103.5012, Occupations Code, is amended
373	373	to read as follows:
374	374	Sec. 1103.5012. PENALTY TO BE PAID OR HEARING REQUESTED. If
375	375	the person accepts the executive director's [commissioner's]
376	376	determination, or fails to respond in a timely manner to the notice,
377	377	the board by order shall approve the determination and order
378	378	payment of the recommended penalty, impose the recommended
379	379	sanction, or both.
380	380	SECTION 25. Section 1103.507(a), Occupations Code, is
381	381	amended to read as follows:
382	382	(a) The executive director [commissioner] shall issue a
383	383	subpoena to compel the attendance of a witness or the production of
384	384	records or other evidence if:
385	385	(1) a party to the proceeding requests the subpoena
386	386	orally or in writing;
387	387	(2) the request specifies each item of evidence sought
388	388	and the full name and address of each witness sought; and
389	389	(3) the party shows reasonable cause.
390	390	SECTION 26. Section 1103.521(a), Occupations Code, is
391	391	amended to read as follows:
392	392	(a) The administrative law judge shall file the judge's
393	393	final decision in a contested case hearing with the executive
394	394	director [commissioner].
395	395	SECTION 27. Section 5.086, Property Code, is transferred to
396	396	Subchapter A, Chapter 5, Property Code, redesignated as Section
397	397	5.0205, Property Code, and amended to read as follows:
398	398	Sec. 5.0205 [5.086]. EQUITABLE INTEREST DISCLOSURE.
399	399	Before entering into a contract to sell an option or assign an
400	400	interest in a contract to purchase real property, a person [selling
401	401	an option or assigning an interest in a contract to purchase real
402	402	property] must disclose in writing to:
403	403	(1) any potential buyer that the person is selling
404	404	only an option or assigning an interest in a contract and that the
405	405	person does not have legal title to the real property; and
406	406	(2) the owner of the real property that the person
407	407	intends to sell an option or assign an interest in a contract.
408	408	SECTION 28. The following provisions of the Occupations
409	409	Code are repealed:
410	410	(1) Section 1101.357;
411	411	(2) Section 1101.360(a);
412	412	(3) Section 1101.361;
413	413	(4) Section 1101.406;
414	414	(5) Sections 1101.603(a) and (e);
415	415	(6) Section 1101.604(d); and
416	416	(7) Section 1103.259.
417	417	SECTION 29. Section 1101.154(a), Occupations Code, as
418	418	amended by this Act, applies only to the issuance or renewal of a
419	419	license or certificate of registration under Chapter 1101,
420	420	Occupations Code, on or after the effective date of this Act.
421	421	SECTION 30. Sections 1101.356(a) and 1101.358(a),
422	422	Occupations Code, as amended by this Act, apply only to an
423	423	application for a license under Chapter 1101, Occupations Code,
424	424	submitted on or after the effective date of this Act. An
425	425	application submitted before the effective date of this Act is
426	426	governed by the law in effect on the date the application was
427	427	submitted, and the former law is continued in effect for that
428	428	purpose.
429	429	SECTION 31. Section 1101.451(d), Occupations Code, as
430	430	amended by this Act, applies only to the renewal of a license under
431	431	Chapter 1101, Occupations Code, on or after the effective date of
432	432	this Act. A license renewed before the effective date of this Act
433	433	is governed by the law in effect on the date the license was
434	434	renewed, and the former law is continued in effect for that purpose.
435	435	SECTION 32. This Act takes effect January 1, 2024.