Texas 2023 - 88th Regular

Texas Senate Bill SB1577 Compare Versions

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1	1	S.B. No. 1577
2	2
3	3
4	4	AN ACT
5	5	relating to the Texas Real Estate Research Center, the Real Estate
6	6	Research Advisory Committee, the Texas Real Estate Commission, and
7	7	the Texas Appraiser Licensing and Certification Board; increasing a
8	8	fee; authorizing a fee.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Subchapter C, Chapter 86,
11	11	Education Code, is amended to read as follows:
12	12	SUBCHAPTER C. TEXAS REAL ESTATE RESEARCH CENTER
13	13	SECTION 2. Section 86.51, Education Code, is amended to
14	14	read as follows:
15	15	Sec. 86.51. TEXAS REAL ESTATE RESEARCH CENTER. The Texas
16	16	Real Estate Research Center [There] is established at Texas A&M
17	17	University [a Real Estate Research Center, hereinafter referred to
18	18	as the center]. The operating budget, staffing, and activities of
19	19	the center shall be approved by the board of regents of The Texas
20	20	A&M University System.
21	21	SECTION 3. Section 86.52, Education Code, is amended by
22	22	amending Subsections (c), (d), (e), (f), (h), (i), (j), (k), and (l)
23	23	and adding Subsection (m) to read as follows:
24	24	(c) Members [Except for the initial appointees, members] of
25	25	the advisory committee hold office for staggered terms of six
26	26	years, with the terms of three members expiring on January 31 of
27	27	each odd-numbered year. [In making the initial appointments, the
28	28	governor shall designate three members, including two
29	29	representatives of the real estate industry and one representative
30	30	of the general public, for terms expiring in 1973, three for terms
31	31	expiring in 1975, and three for terms expiring in 1977.] Any vacancy
32	32	shall be filled by appointment for the unexpired portion of the
33	33	term. Each member shall serve until the member's [his] successor is
34	34	qualified.
35	35	(d) The presiding officer [chairman] of the Texas Real
36	36	Estate Commission, or a member of the commission designated by the
37	37	presiding officer [him], shall serve as an ex officio, nonvoting
38	38	member of the advisory committee.
39	39	(e) The advisory committee shall elect a presiding officer
40	40	and an assistant presiding officer from the committee's [its]
41	41	membership, and each officer shall serve for a term of one year.
42	42	(f) [The first meeting of the advisory committee shall be
43	43	called by the president of Texas A & M University or his designated
44	44	representative.] The advisory committee shall meet not less than
45	45	semiannually, and in addition on call of the committee's presiding
46	46	officer [its chairman], [or] on petition of any six of the
47	47	committee's [its] members, or on call of the executive director of
48	48	the center [president of Texas A & M University] or the executive
49	49	director's [his] designated representative.
50	50	(h) The executive director of the center [president of Texas
51	51	A & M University] or the executive director's [his] designated
52	52	representative shall submit to the advisory committee in advance of
53	53	each fiscal year a budget for expenditures of all funds provided for
54	54	the center in a form that is related to the proposed schedule of
55	55	activities for the review and approval of the advisory committee.
56	56	The proposed budget approved by the advisory committee shall be
57	57	forwarded with the comments of the committee to the board of
58	58	directors of The Texas A&M [A & M] University System prior to its
59	59	action on the proposed budget, and the board of directors of The
60	60	Texas A&M [A & M] University System shall not authorize any
61	61	expenditure that has not had the prior approval of the advisory
62	62	committee.
63	63	(i) The president of Texas A&M [A & M] University or the
64	64	president's [his] designated representative shall submit to the
65	65	advisory committee for its review and approval a research agenda at
66	66	the beginning of each fiscal year and shall continuously inform the
67	67	advisory committee of changes in its substance and scheduling.
68	68	(j) Each member of the advisory committee [board] is
69	69	entitled to a per diem as provided in the center's budget [set by
70	70	legislative appropriation] for each day that the member engages in
71	71	the business of the committee [board]. A member is entitled to [may
72	72	not receive any] compensation for transportation and travel
73	73	expenses, including expenses for meals and lodging[, other than
74	74	transportation expenses. A member is entitled to compensation for
75	75	transportation expenses] as provided in [prescribed by] the
76	76	center's budget [General Appropriations Act].
77	77	(k) Except as provided by Subsection (l), the [The] advisory
78	78	committee is subject to Chapter 551, Government Code, Chapter 2001,
79	79	Government Code, and the provisions of Chapter 572, Government
80	80	Code.
81	81	(l) The advisory committee may conduct a meeting by
82	82	conference call or virtually through a third-party Internet
83	83	application as long as members of the general public are able to
84	84	participate in the meeting, and any discussions during the meeting,
85	85	if the meeting is not permitted to be conducted as a closed meeting
86	86	under Chapter 551, Government Code.
87	87	(m) The financial transactions of the center are subject to
88	88	audit by the state auditor in accordance with Chapter 321,
89	89	Government Code.
90	90	SECTION 4. Section 1101.0045, Occupations Code, is amended
91	91	to read as follows:
92	92	Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY. (a) A
93	93	person may acquire an option or an interest in a contract to
94	94	purchase real property and then sell or offer to sell the option or
95	95	assign or offer to assign the contract without holding a license
96	96	issued under this chapter if the person:
97	97	(1) does not use the option or contract to purchase to
98	98	engage in real estate brokerage; and
99	99	(2) discloses in writing the nature of the equitable
100	100	interest to any seller or potential buyer.
101	101	(b) A person selling or offering to sell an option or
102	102	assigning or offering to assign an interest in a contract to
103	103	purchase real property without disclosing the nature of that
104	104	interest as provided by Subsection (a)(2) [to a potential buyer] is
105	105	engaging in real estate brokerage.
106	106	SECTION 5. Section 1101.054, Occupations Code, is amended
107	107	to read as follows:
108	108	Sec. 1101.054. OFFICIAL OATH. Not later than the 15th
109	109	calendar day after the date of appointment, each appointee must
110	110	take the constitutional oath of office.
111	111	SECTION 6. Section 1101.152(a), Occupations Code, is
112	112	amended to read as follows:
113	113	(a) The commission shall adopt rules to charge and collect
114	114	fees in amounts reasonable and necessary to cover the costs of
115	115	administering this chapter and the real estate recovery trust
116	116	account as required by this chapter, including a fee for:
117	117	(1) filing an original application for a broker
118	118	license;
119	119	(2) renewal of a broker license;
120	120	(3) filing an original application for a sales agent
121	121	license;
122	122	(4) renewal of a sales agent license;
123	123	(5) registration as an easement or right-of-way agent;
124	124	(6) filing an application for a license examination;
125	125	(7) filing a request for a change of place of business,
126	126	change of name, return to active status, or change of sponsoring
127	127	broker;
128	128	(8) filing a request to replace a lost or destroyed
129	129	license or certificate of registration;
130	130	(9) filing an application for approval of an education
131	131	program under Subchapter G;
132	132	(10) annual operation of an education program under
133	133	Subchapter G;
134	134	(11) transcript evaluation;
135	135	(12) preparing a license or registration history;
136	136	(13) filing a request for a determination of fitness
137	137	to engage in a profession the commission regulates; [and]
138	138	(14) conducting a criminal history check for issuing
139	139	or renewing a license; and
140	140	(15) registering as a business entity under Section
141	141	1101.355(d).
142	142	SECTION 7. Section 1101.154(a), Occupations Code, is
143	143	amended to read as follows:
144	144	(a) The fee for the issuance or renewal of a:
145	145	(1) broker license is the amount of the fee set under
146	146	Section 1101.152 and an additional $70 fee for each year of the term
147	147	for which the license is issued or renewed;
148	148	(2) sales agent license is the amount of the fee set
149	149	under Section 1101.152 and an additional $20 fee for each year of
150	150	the term for which the license is issued or renewed; and
151	151	(3) certificate of registration is the amount of the
152	152	fee set under Section 1101.152 and an additional $20 fee for each
153	153	year of the term for which the certificate is issued or renewed.
154	154	SECTION 8. The heading to Section 1101.355, Occupations
155	155	Code, is amended to read as follows:
156	156	Sec. 1101.355. ADDITIONAL GENERAL ELIGIBILITY REQUIREMENTS
157	157	FOR BUSINESS ENTITIES; REGISTRATION OF CERTAIN BUSINESS ENTITIES.
158	158	SECTION 9. Section 1101.355, Occupations Code, is amended
159	159	by adding Subsections (d) and (e) to read as follows:
160	160	(d) Notwithstanding Subsection (c) or any other law, a
161	161	business entity is not required to be licensed under this chapter if
162	162	the business entity:
163	163	(1) receives compensation on behalf of a broker or
164	164	sales agent licensed under this chapter that is earned by the
165	165	license holder while engaged in real estate brokerage;
166	166	(2) performs no other acts of a broker;
167	167	(3) is:
168	168	(A) a limited liability company as defined by
169	169	Section 101.001, Business Organizations Code; or
170	170	(B) an S corporation as defined by 26 U.S.C.
171	171	Section 1361;
172	172	(4) is registered with the commission; and
173	173	(5) is at least 51 percent owned by the license holder
174	174	on whose behalf the entity receives compensation.
175	175	(e) The commission shall adopt rules providing for the
176	176	registration of a business entity described by Subsection (d).
177	177	SECTION 10. Sections 1101.356(a) and (b-1), Occupations
178	178	Code, are amended to read as follows:
179	179	(a) An applicant for a broker license must provide to the
180	180	commission satisfactory evidence that the applicant:
181	181	(1) has had at least four years of active experience
182	182	[in this state] as a license holder during the 60 months preceding
183	183	the date the application is filed; and
184	184	(2) has successfully completed the number of hours of
185	185	qualifying real estate and related courses required by commission
186	186	rule, not to exceed [at least] 60 semester hours[,] or equivalent
187	187	classroom hours[, of postsecondary education, including:
188	188	[(A) at least 18 semester hours or equivalent
189	189	classroom hours of qualifying real estate courses, two semester
190	190	hours of which must consist of a real estate brokerage course
191	191	completed not more than two years before the application date; and
192	192	[(B) at least 42 semester hours of qualifying
193	193	real estate courses or related courses accepted by the commission].
194	194	(b-1) The commission by rule shall establish what
195	195	constitutes active experience for purposes of this section [and
196	196	Section 1101.357].
197	197	SECTION 11. Section 1101.358(a), Occupations Code, is
198	198	amended to read as follows:
199	199	(a) An applicant for a sales agent license must provide to
200	200	the commission satisfactory evidence that the applicant has
201	201	completed at least 12 semester hours, or equivalent classroom
202	202	hours, of [postsecondary] education consisting of:
203	203	(1) at least four semester hours of qualifying real
204	204	estate courses on principles of real estate; and
205	205	(2) at least two semester hours of each of the
206	206	following qualifying real estate courses:
207	207	(A) agency law;
208	208	(B) contract law;
209	209	(C) contract forms and addendums; and
210	210	(D) real estate finance.
211	211	SECTION 12. Section 1101.451(d), Occupations Code, is
212	212	amended to read as follows:
213	213	(d) Except as provided by Subsection (e), a renewal fee for
214	214	a license under this chapter may not exceed, calculated on an annual
215	215	basis, the amount of the sum of the fees established under Sections
216	216	1101.152 and[,] 1101.154[, and 1101.603].
217	217	SECTION 13. Section 1101.603(f), Occupations Code, is
218	218	amended to read as follows:
219	219	(f) To ensure the availability of a sufficient amount to pay
220	220	anticipated claims on the trust account, the commission by rule may
221	221	provide for the collection of fees or assessments from an applicant
222	222	for an original license or certificate of registration or from a
223	223	license or certificate holder at the next renewal to credit to the
224	224	trust account [at different times and under conditions other than
225	225	those specified by this chapter].
226	226	SECTION 14. Sections 1101.610(a) and (b), Occupations Code,
227	227	are amended to read as follows:
228	228	(a) Payments from the trust account for claims, including
229	229	attorney's fees, interest, and court costs, arising out of a single
230	230	transaction may not exceed a total of $125,000 [$50,000],
231	231	regardless of the number of claimants.
232	232	(b) Payments from the trust account for claims based on
233	233	judgments against a single license or certificate holder may not
234	234	exceed a total of $250,000 [$100,000] until the license or
235	235	certificate holder has reimbursed the trust account for all amounts
236	236	paid.
237	237	SECTION 15. Section 1103.003(6), Occupations Code, is
238	238	amended to read as follows:
239	239	(6) "Executive director" ["Commissioner"] means the
240	240	executive director [commissioner] of the board [Texas Appraiser
241	241	Licensing and Certification Board].
242	242	SECTION 16. Section 1103.0545(d), Occupations Code, is
243	243	amended to read as follows:
244	244	(d) The executive director [commissioner] shall create a
245	245	training manual that includes the information required by
246	246	Subsection (b). The executive director [commissioner] shall
247	247	distribute a copy of the training manual annually to each member of
248	248	the board. Each member of the board shall sign and submit to the
249	249	executive director [commissioner] a statement acknowledging that
250	250	the member received and has reviewed the training manual.
251	251	SECTION 17. Section 1103.057(c), Occupations Code, is
252	252	amended to read as follows:
253	253	(c) If the executive director [commissioner] has knowledge
254	254	that a potential ground for removal of an appointed board member
255	255	exists, the executive director [commissioner] shall notify the
256	256	presiding officer of the board of the potential ground. The
257	257	presiding officer shall immediately notify the governor and the
258	258	attorney general that a potential ground for removal exists. If the
259	259	potential ground for removal involves the presiding officer, the
260	260	executive director [commissioner] shall notify the next highest
261	261	ranking officer of the board, who shall immediately notify the
262	262	governor and the attorney general that a potential ground for
263	263	removal exists.
264	264	SECTION 18. Subchapter C, Chapter 1103, Occupations Code,
265	265	is amended to read as follows:
266	266	SUBCHAPTER C. EXECUTIVE DIRECTOR [COMMISSIONER] AND OTHER BOARD
267	267	PERSONNEL
268	268	Sec. 1103.101. EXECUTIVE DIRECTOR [COMMISSIONER]. (a) The
269	269	administrator of the Texas Real Estate Commission shall serve as
270	270	executive director [commissioner].
271	271	(b) The board may delegate to the executive director
272	272	[commissioner] the responsibility for administering this chapter
273	273	and Chapter 1104, including the approval of consent orders and
274	274	agreements.
275	275	Sec. 1103.102. OTHER BOARD PERSONNEL. In addition to the
276	276	executive director [commissioner], the board may employ other
277	277	officers and employees as necessary to administer this chapter and
278	278	Chapter 1104.
279	279	Sec. 1103.103. SALARIES. The executive director
280	280	[commissioner] shall determine the salaries of the officers and
281	281	employees of the board.
282	282	Sec. 1103.104. DUTIES OF EXECUTIVE DIRECTOR
283	283	[COMMISSIONER]. The executive director [commissioner] shall:
284	284	(1) disseminate information;
285	285	(2) administer rules adopted by the board under this
286	286	chapter or Chapter 1104;
287	287	(3) review each application for a certificate or
288	288	license and make a recommendation for final action to the board;
289	289	(4) review and make recommendations to the board
290	290	regarding the adoption of rules relating to:
291	291	(A) the examination required by Subchapter F;
292	292	(B) education and experience requirements for
293	293	issuance of certificates and licenses;
294	294	(C) continuing education for a certified or
295	295	licensed appraiser;
296	296	(D) standards of professional practice and
297	297	ethics for a certified or licensed appraiser;
298	298	(E) standards for a real estate appraisal
299	299	performed by a certified or licensed appraiser; and
300	300	(F) the fees established by the board under
301	301	Section 1103.156 or Section 1104.052;
302	302	(5) collect fees established by the board;
303	303	(6) manage the staff and employees of the board; and
304	304	(7) perform any other duty prescribed by the board
305	305	under this chapter or Chapter 1104.
306	306	Sec. 1103.105. DIVISION OF RESPONSIBILITIES. The board
307	307	shall develop and implement policies that clearly separate the
308	308	policymaking responsibilities of the board and the management
309	309	responsibilities of the executive director [commissioner] and the
310	310	staff of the board.
311	311	SECTION 19. Section 1103.209(e), Occupations Code, is
312	312	amended to read as follows:
313	313	(e) An applicant for a certificate or license under this
314	314	chapter who is not a resident of this state must submit with the
315	315	application an irrevocable consent that states that service of
316	316	process in an action against the applicant arising out of the
317	317	applicant's activities as a certified or licensed appraiser in this
318	318	state may be made by delivery of the process to the executive
319	319	director [commissioner] if the plaintiff in the action, using due
320	320	diligence, cannot obtain personal service on the applicant. If
321	321	process is served as provided by this subsection, the executive
322	322	director [commissioner] shall immediately send a copy of the
323	323	material served on the executive director [commissioner] to the
324	324	certified or licensed appraiser at the appraiser's address of
325	325	record.
326	326	SECTION 20. Sections 1103.452(b) and (c), Occupations Code,
327	327	are amended to read as follows:
328	328	(b) An investigator designated by the executive director
329	329	[commissioner] shall investigate each allegation or formal
330	330	complaint.
331	331	(c) If the board determines at any time that an allegation
332	332	or formal complaint is inappropriate or without merit, the board or
333	333	the executive director [commissioner] shall dismiss the complaint
334	334	and may not take further action.
335	335	SECTION 21. Section 1103.458(c), Occupations Code, is
336	336	amended to read as follows:
337	337	(c) A consent order must be:
338	338	(1) approved by the board; and
339	339	(2) signed by the executive director [commissioner]
340	340	and the appraiser or appraiser trainee who is the subject of the
341	341	complaint.
342	342	SECTION 22. Section 1103.459(c), Occupations Code, is
343	343	amended to read as follows:
344	344	(c) A consent agreement must be:
345	345	(1) approved by the board; and
346	346	(2) signed by the executive director [commissioner]
347	347	and the appraiser or appraiser trainee who is the subject of the
348	348	complaint.
349	349	SECTION 23. Section 1103.5011, Occupations Code, is amended
350	350	to read as follows:
351	351	Sec. 1103.5011. NOTICE OF VIOLATION AND PENALTY. (a) The
352	352	executive director [commissioner] may send an appraiser against
353	353	whom a complaint has been filed a notice of violation including:
354	354	(1) a summary of the alleged violation;
355	355	(2) the recommended sanction, including the amount of
356	356	any administrative penalty sought; and
357	357	(3) a conspicuous notice that the respondent has the
358	358	right to a hearing to contest the alleged violation, the
359	359	recommended sanction, or both.
360	360	(b) Not later than the 20th day after the date the person
361	361	receives the notice under Subsection (a), the person may:
362	362	(1) accept the executive director's [commissioner's]
363	363	determination, including the recommended sanction; or
364	364	(2) request in writing a hearing, to be held under
365	365	Chapter 2001, Government Code, on the occurrence of the violation,
366	366	the sanction, or both.
367	367	SECTION 24. Section 1103.5012, Occupations Code, is amended
368	368	to read as follows:
369	369	Sec. 1103.5012. PENALTY TO BE PAID OR HEARING REQUESTED. If
370	370	the person accepts the executive director's [commissioner's]
371	371	determination, or fails to respond in a timely manner to the notice,
372	372	the board by order shall approve the determination and order
373	373	payment of the recommended penalty, impose the recommended
374	374	sanction, or both.
375	375	SECTION 25. Section 1103.507(a), Occupations Code, is
376	376	amended to read as follows:
377	377	(a) The executive director [commissioner] shall issue a
378	378	subpoena to compel the attendance of a witness or the production of
379	379	records or other evidence if:
380	380	(1) a party to the proceeding requests the subpoena
381	381	orally or in writing;
382	382	(2) the request specifies each item of evidence sought
383	383	and the full name and address of each witness sought; and
384	384	(3) the party shows reasonable cause.
385	385	SECTION 26. Section 1103.521(a), Occupations Code, is
386	386	amended to read as follows:
387	387	(a) The administrative law judge shall file the judge's
388	388	final decision in a contested case hearing with the executive
389	389	director [commissioner].
390	390	SECTION 27. Section 5.086, Property Code, is transferred to
391	391	Subchapter A, Chapter 5, Property Code, redesignated as Section
392	392	5.0205, Property Code, and amended to read as follows:
393	393	Sec. 5.0205 [5.086]. EQUITABLE INTEREST DISCLOSURE.
394	394	Before entering into a contract to sell an option or assign an
395	395	interest in a contract to purchase real property, a person [selling
396	396	an option or assigning an interest in a contract to purchase real
397	397	property] must disclose in writing to:
398	398	(1) any potential buyer that the person is selling
399	399	only an option or assigning an interest in a contract and that the
400	400	person does not have legal title to the real property; and
401	401	(2) the owner of the real property that the person
402	402	intends to sell an option or assign an interest in a contract.
403	403	SECTION 28. The following provisions of the Occupations
404	404	Code are repealed:
405	405	(1) Section 1101.357;
406	406	(2) Section 1101.360(a);
407	407	(3) Section 1101.361;
408	408	(4) Section 1101.406;
409	409	(5) Sections 1101.603(a) and (e);
410	410	(6) Section 1101.604(d); and
411	411	(7) Section 1103.259.
412	412	SECTION 29. Section 1101.154(a), Occupations Code, as
413	413	amended by this Act, applies only to the issuance or renewal of a
414	414	license or certificate of registration under Chapter 1101,
415	415	Occupations Code, on or after the effective date of this Act.
416	416	SECTION 30. Sections 1101.356(a) and 1101.358(a),
417	417	Occupations Code, as amended by this Act, apply only to an
418	418	application for a license under Chapter 1101, Occupations Code,
419	419	submitted on or after the effective date of this Act. An
420	420	application submitted before the effective date of this Act is
421	421	governed by the law in effect on the date the application was
422	422	submitted, and the former law is continued in effect for that
423	423	purpose.
424	424	SECTION 31. Section 1101.451(d), Occupations Code, as
425	425	amended by this Act, applies only to the renewal of a license under
426	426	Chapter 1101, Occupations Code, on or after the effective date of
427	427	this Act. A license renewed before the effective date of this Act is
428	428	governed by the law in effect on the date the license was renewed,
429	429	and the former law is continued in effect for that purpose.
430	430	SECTION 32. This Act takes effect January 1, 2024.
431	431	______________________________ ______________________________
432	432	President of the Senate Speaker of the House
433	433	I hereby certify that S.B. No. 1577 passed the Senate on
434	434	April 13, 2023, by the following vote: Yeas 30, Nays 0.
435	435	______________________________
436	436	Secretary of the Senate
437	437	I hereby certify that S.B. No. 1577 passed the House on
438	438	May 6, 2023, by the following vote: Yeas 137, Nays 0,
439	439	one present not voting.
440	440	______________________________
441	441	Chief Clerk of the House
442	442	Approved:
443	443	______________________________
444	444	Date
445	445	______________________________
446	446	Governor