Bill Text: TX HB1675 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to the continuation and functions of the Texas Real Estate Commission and the Texas Appraiser Licensing and Certification Board; changing fees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-12 - Left pending in committee [HB1675 Detail]

Download: Texas-2019-HB1675-Introduced.html

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86R6852 TSR-D
By: Thompson of Harris H.B. No. 1675

A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Real Estate
Commission and the Texas Appraiser Licensing and Certification
Board; changing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1101.006, Occupations Code, is amended
to read as follows:
Sec. 1101.006. APPLICATION OF SUNSET ACT. The Texas Real
Estate Commission is subject to Chapter 325, Government Code (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the commission is abolished and this chapter, Chapter
1102, and Chapter 1303 of this code and Chapter 221, Property Code,
expire September 1, 2025 [2019].
SECTION 2. Section 1101.059, Occupations Code, is amended
by amending Subsections (b) and (c) and adding Subsection (d) to
read as follows:
(b) The training program must provide the person with
information regarding:
(1) the law governing commission operations [this
chapter and other laws regulated by the commission];
(2) the programs, functions, rules, and budget of the
commission;
(3) the scope of and limitations on the rulemaking
authority of the commission;
(4) the types of commission rules, interpretations,
and enforcement actions that may implicate federal antitrust law by
limiting competition or impacting prices charged by persons engaged
in a profession or business the commission regulates, including
rules, interpretations, and enforcement actions that:
(A) regulate the scope of practice of persons in
a profession or business the commission regulates;
(B) restrict advertising by persons in a
profession or business the commission regulates;
(C) affect the price of goods or services
provided by persons in a profession or business the commission
regulates; and
(D) restrict participation in a profession or
business the commission regulates;
(5) the results of the most recent formal audit of the
commission;
(6) [(4)] the requirements of:
(A) laws relating to open meetings, public
information, administrative procedure, and disclosure of conflicts
of interest; and
(B) other laws applicable to members of a state
policymaking body in performing their duties; and
(7) [(5)] any applicable ethics policies adopted by
the commission or the Texas Ethics Commission.
(c) A person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
(d) The executive director of the commission shall create a
training manual that includes the information required by
Subsection (b). The executive director shall distribute a copy of
the training manual annually to each member of the commission. On
receipt of the training manual, each member of the commission shall
sign and submit to the executive director a statement acknowledging
receipt of the training manual.
SECTION 3. Section 1101.152, Occupations Code, is amended
to read as follows:
Sec. 1101.152. FEES. (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 branch office license;
[(8)] filing a request for a change of place of
business, change of name, return to active status, or change of
sponsoring broker;
(8) [(9)] filing a request to replace a lost or
destroyed license or certificate of registration;
(9) [(10)] filing an application for approval of an
education program under Subchapter G;
(10) [(11)] annual operation of an education program
under Subchapter G;
(11) [(12) filing an application for approval of an
instructor of qualifying real estate courses;
[(13)] transcript evaluation;
(12) [(14)] preparing a license or registration
history;
(13) [(15)] filing a request for a [moral character]
determination of fitness to engage in a profession the commission
regulates; and
(14) [(16)] conducting a criminal history check for
issuing or renewing a license.
(b) The commission shall adopt rules to set and collect fees
in amounts reasonable and necessary to cover the costs of
implementing the continuing education requirements for license
holders, including a fee for:
(1) an application for approval of a continuing
education provider; and
(2) an application for approval of a continuing
education course of study[;
[(3) an application for approval of an instructor of
continuing education courses; and
[(4) attendance at a program to train instructors of a
continuing education course prescribed under Section 1101.455].
SECTION 4. Section 1101.204, Occupations Code, is amended
by adding Subsection (i) to read as follows:
(i) If the commission determines at any time that an
allegation made or formal complaint submitted by a person is
inappropriate or without merit, the commission shall dismiss the
complaint and no further action may be taken. The commission may
delegate to commission staff the duty to dismiss complaints
described by this subsection.
SECTION 5. Section 1101.2051, Occupations Code, is amended
by adding Subsection (d-1) to read as follows:
(d-1) The commission shall protect the identity of a
complainant to the extent possible by excluding the complainant's
identifying information from a complaint notice sent to a
respondent.
SECTION 6. Section 1101.206(a), Occupations Code, is
amended to read as follows:
(a) The commission shall develop and implement policies
that provide the public with a reasonable opportunity to appear
before the commission and to speak on any agenda item at a regular
commission meeting [issue under the commission's jurisdiction].
SECTION 7. Section 1101.301, Occupations Code, is amended
by amending Subsection (a) and adding Subsections (b-1) and (f) to
read as follows:
(a) The commission, as necessary for the administration of
this chapter and Chapter 1102, may by rule:
(1) establish standards for the approval of qualifying
educational programs or courses of study in real estate and real
estate inspection conducted in this state, excluding programs and
courses offered by accredited colleges and universities; and
(2) develop minimum education and experience
requirements for an instructor of a course of study described by
Subdivision (1).
(b-1) For commission approval of an application to offer a
course of study under this section, the applicant must ensure that
the educational program's instructors meet the minimum education
and experience requirements developed by the commission under
Subsection (a)(2).
(f) The commission may deny approval of an application to
renew a program's approval to offer a program or course of study if
the applicant is in violation of a commission order. The denial of
an approval under this subsection is subject to the same provisions
as are applicable under Section 1101.364 to the denial of a license.
SECTION 8. Section 1101.303, Occupations Code, is amended
by adding Subsections (c) and (d) to read as follows:
(c) The commission may by rule develop minimum education and
experience requirements for an instructor of a continuing education
course of study. For commission approval of an application to offer
the course, the applicant must ensure that the course's instructors
meet the minimum education and experience requirements developed by
the commission under this subsection.
(d) The commission may deny an application to renew an
approval under this section if the applicant is in violation of a
commission order. The denial of an approval under this subsection
is subject to the same provisions as are applicable under Section
1101.364 to the denial of a license.
SECTION 9. The heading to Section 1101.353, Occupations
Code, is amended to read as follows:
Sec. 1101.353. [MORAL CHARACTER] DETERMINATION OF FITNESS.
SECTION 10. Sections 1101.353(a), (c), and (d), Occupations
Code, are amended to read as follows:
(a) If before applying for a license under this chapter a
person requests that the commission determine whether the person
possesses the fitness to engage in the profession for which the
license is required [person's moral character complies with the
commission's moral character requirements for licensing under this
chapter] and pays the required fee, the commission shall make its
determination of the person's fitness to engage in the profession
[moral character].
(c) If a person applies for a license after receiving notice
of a determination, the commission may conduct a supplemental
[moral character] determination of the person's fitness [person].
The supplemental determination may cover only the period after the
date the person requests a [moral character] determination of
fitness under this section.
(d) The commission may issue a provisional [moral
character] determination of fitness. The commission by rule shall
adopt reasonable terms for issuing a provisional [moral character]
determination of fitness.
SECTION 11. Section 1101.354, Occupations Code, is amended
to read as follows:
Sec. 1101.354. GENERAL ELIGIBILITY REQUIREMENTS. To be
eligible to receive a license under this chapter, a person must:
(1) at the time of application:
(A) be at least 18 years of age; and
(B) be a citizen of the United States or a
lawfully admitted alien; [and
[(C) be a resident of this state;]
(2) satisfy the commission as to the applicant's
honesty, trustworthiness, and integrity;
(3) demonstrate competence based on an examination
under Subchapter I; and
(4) complete the required courses of study, including
any required qualifying real estate courses prescribed under this
chapter.
SECTION 12. Subchapter J, Chapter 1101, Occupations Code,
is amended by adding Section 1101.459 to read as follows:
Sec. 1101.459. DENIAL OF LICENSE RENEWAL. (a) The
commission may deny the renewal of a license under this chapter if
the applicant is in violation of a commission order.
(b) The denial of a license renewal is subject to the same
provisions as are applicable under Section 1101.364 to the denial
of a license.
SECTION 13. Section 1101.505, Occupations Code, is amended
to read as follows:
Sec. 1101.505. DENIAL OF CERTIFICATE ISSUANCE OR RENEWAL.
(a) The denial of an original [a] certificate of registration or
renewal of a certificate of registration is subject to the same
provisions as are applicable under Section 1101.364 to the denial
of a license.
(b) The commission may deny the renewal of a certificate of
registration if the applicant is in violation of a commission
order.
SECTION 14. The heading to Section 1101.552, Occupations
Code, is amended to read as follows:
Sec. 1101.552. FIXED OFFICE REQUIRED; CHANGE OF ADDRESS[;
BRANCH OFFICES].
SECTION 15. Section 1101.652(a), Occupations Code, is
amended to read as follows:
(a) The commission may suspend or revoke a license issued
under this chapter or Chapter 1102 or take other disciplinary
action authorized by this chapter or Chapter 1102 if the license
holder:
(1) enters a plea of guilty or nolo contendere to or is
convicted of a felony or a criminal offense involving fraud, and the
time for appeal has elapsed or the judgment or conviction has been
affirmed on appeal, without regard to an order granting community
supervision that suspends the imposition of the sentence;
(2) procures or attempts to procure a license under
this chapter or Chapter 1102 for the license holder by fraud,
misrepresentation, or deceit or by making a material misstatement
of fact in an application for a license;
(3) fails to honor, within a reasonable time, a check
issued to the commission after the commission has sent by certified
mail a request for payment to the license holder's last known
business address according to commission records;
(4) fails to provide, within a reasonable time,
information requested by the commission that relates to a formal or
informal complaint to the commission that would indicate a
violation of this chapter or Chapter 1102;
(5) fails to surrender to the owner, without just
cause, a document or instrument that is requested by the owner and
that is in the license holder's possession;
(6) fails to consider market conditions for the
specific geographic area in which the license holder is providing a
service;
(7) fails to notify the commission, not later than the
30th day after the date of a final conviction or the entry of a plea
of guilty or nolo contendere, that the person has been convicted of
or entered a plea of guilty or nolo contendere to a felony or a
criminal offense involving fraud; or
(8) [(7)] disregards or violates this chapter or
Chapter 1102.
SECTION 16. Section 1102.106, Occupations Code, is amended
to read as follows:
Sec. 1102.106. [MORAL CHARACTER] DETERMINATION OF FITNESS.
As prescribed by Section 1101.353, the commission shall determine,
on request, whether a person possesses the fitness to engage in a
profession licensed [person's moral character complies with the
commission's moral character requirements for licensing] under
this chapter and may conduct a supplemental [moral character]
determination of the person's fitness [person].
SECTION 17. Section 1102.107, Occupations Code, is amended
to read as follows:
Sec. 1102.107. ELIGIBILITY FOR APPRENTICE INSPECTOR
LICENSE. To be eligible for an apprentice inspector license, an
applicant must:
(1) at the time of application be:
(A) at least 18 years of age; and
(B) a citizen of the United States or a lawfully
admitted alien; [and
[(C) a resident of this state;]
(2) be sponsored by a professional inspector; and
(3) satisfy the commission as to the applicant's
honesty, trustworthiness, and integrity.
SECTION 18. Subchapter E, Chapter 1102, Occupations Code,
is amended by adding Section 1102.206 to read as follows:
Sec. 1102.206. DENIAL OF LICENSE RENEWAL. (a) The
commission may deny the renewal of a license if the applicant is in
violation of a commission order.
(b) The provisions of Section 1101.459 governing the
commission's denial of a license renewal under that chapter apply
to the commission's denial of a license renewal under this chapter.
SECTION 19. Section 1103.006, Occupations Code, is amended
to read as follows:
Sec. 1103.006. APPLICATION OF SUNSET ACT. The Texas
Appraiser Licensing and Certification Board is subject to Chapter
325, Government Code (Texas Sunset Act). Unless continued in
existence as provided by that chapter, the board is abolished and
this chapter and Chapter 1104 expire September 1, 2025 [2019].
SECTION 20. Subchapter B, Chapter 1103, Occupations Code,
is amended by adding Section 1103.0521 to read as follows:
Sec. 1103.0521. MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)
In this section, "Texas trade association" means a cooperative and
voluntarily joined statewide association of business or
professional competitors in this state designed to assist its
members and its industry or profession in dealing with mutual
business or professional problems and in promoting their common
interest.
(b) A person may not be a member of the board and may not be a
board employee employed in a "bona fide executive, administrative,
or professional capacity," as that phrase is used for purposes of
establishing an exemption to the overtime provisions of the federal
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of real estate
brokerage or appraisal; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of real estate
brokerage or appraisal.
(c) A person may not serve as a board member or act as the
general counsel to the board if the person is required to register
as a lobbyist under Chapter 305, Government Code, because of the
person's activities for compensation on behalf of a profession
related to the operation of the board.
SECTION 21. Section 1103.054, Occupations Code, is amended
to read as follows:
Sec. 1103.054. ELIGIBILITY OF PUBLIC MEMBERS. A person is
not eligible for appointment as a public member of the board if the
person or the person's spouse:
(1) is a certified or licensed appraiser;
(2) is certified or licensed by an occupational
regulatory agency in the field of real estate brokerage or
appraisal;
(3) owns or controls, directly or indirectly, a
business entity or other organization whose primary purpose is to
engage in real estate sales, brokerage, or appraisal; [or]
(4) is employed by or participates in the management
of a business entity or other organization whose primary purpose is
to engage in real estate sales, brokerage, or appraisal; or
(5) uses or receives a substantial amount of tangible
goods, services, or money from the board other than compensation or
reimbursement authorized by law for board membership, attendance,
or expenses.
SECTION 22. Section 1103.0545, Occupations Code, is amended
by amending Subsections (b) and (c) and adding Subsection (d) to
read as follows:
(b) The training program must provide the person with
information regarding:
(1) the law governing board operations [this chapter
and other laws applicable to the board];
(2) the programs, functions, rules, and budget of the
board;
(3) the scope of and limitations on the rulemaking
authority of the board;
(4) the types of board rules, interpretations, and
enforcement actions that may implicate federal antitrust law by
limiting competition or impacting prices charged by persons engaged
in a profession or business the board regulates, including rules,
interpretations, and enforcement actions that:
(A) regulate the scope of practice of persons in
a profession or business the board regulates;
(B) restrict advertising by persons in a
profession or business the board regulates;
(C) affect the price of goods or services
provided by persons in a profession or business the board
regulates; and
(D) restrict participation in a profession or
business the board regulates;
(5) the results of the most recent formal audit of the
board;
(6) [(4)] the requirements of:
(A) laws relating to open meetings, public
information, administrative procedure, and disclosure of conflicts
of interest; and
(B) other laws applicable to members of a state
policymaking body in performing their duties; and
(7) [(5)] any applicable ethics policies adopted by
the board or the Texas Ethics Commission.
(c) A person appointed to the board is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
(d) The commissioner shall create a training manual that
includes the information required by Subsection (b). The
commissioner shall distribute a copy of the training manual
annually to each member of the board. On receipt of the training
manual, each member of the board shall sign and submit to the board
a statement acknowledging receipt of the training manual.
SECTION 23. Section 1103.057(a), Occupations Code, is
amended to read as follows:
(a) It is a ground for removal from the board that an
appointed member:
(1) does not have at the time of appointment the
qualifications required by this subchapter for appointment to the
board;
(2) does not maintain during service on the board the
qualifications required by this subchapter for appointment to the
board;
(3) is ineligible for membership under Section
1103.0521 or 1103.054;
(4) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(5) [(4)] is absent from more than half of the
regularly scheduled board meetings that the member is eligible to
attend during a calendar year, unless the absence is excused by a
majority vote of the board.
SECTION 24. Subchapter C, Chapter 1103, Occupations Code,
is amended by adding Section 1103.105 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 commissioner and the staff of the board.
SECTION 25. Section 1103.153, Occupations Code, is amended
to read as follows:
Sec. 1103.153. RULES RELATING TO QUALIFYING OR CONTINUING
EDUCATION. (a) The board may adopt rules relating to:
(1) continuing education requirements for a certified
or licensed appraiser or an appraiser trainee; and
(2) the requirements for approval of a provider or [,]
course[, or instructor] for qualifying or continuing education.
(b) In addition to the rules adopted under Subsection (a),
the board may by rule develop minimum education and experience
requirements for an instructor of a course for qualifying or
continuing education. For board approval of a course provider
application, the applicant must ensure that the instructors meet
the minimum education and experience requirements.
SECTION 26. The heading to Section 1103.159, Occupations
Code, is amended to read as follows:
Sec. 1103.159. ADVISORY COMMITTEE ON APPRAISAL MANAGEMENT
COMPANIES.
SECTION 27. Subchapter D, Chapter 1103, Occupations Code,
is amended by adding Sections 1103.160, 1103.161, 1103.162, and
1103.163 to read as follows:
Sec. 1103.160. ADVISORY COMMITTEES. (a) The board may
appoint advisory committees to perform the advisory functions
assigned to the committees by the board. An advisory committee
under this section is subject to Chapter 2110, Government Code.
(b) A member of an advisory committee who is not a member of
the board may not receive compensation for service on the
committee. The member may receive reimbursement for actual and
necessary expenses incurred in performing committee functions as
provided by Section 2110.004, Government Code.
(c) A member of an advisory committee serves at the will of
the board.
(d) An advisory committee may hold a meeting by telephone
conference call or other video or broadcast technology.
(e) If the board appoints an advisory committee under this
section, the board shall adopt rules regarding:
(1) the advisory committee's purpose, role,
responsibility, and goals;
(2) size and quorum requirements;
(3) qualifications for membership, including
experience requirements and geographic representation;
(4) appointment procedures;
(5) membership terms;
(6) training requirements for advisory committee
members; and
(7) the advisory committee's compliance with Chapter
551, Government Code.
(f) In addition to the rules adopted under Subsection (e),
the board by rule shall adopt a process to regularly evaluate the
need for an advisory committee appointed under this section.
Sec. 1103.161. PUBLIC PARTICIPATION. The board shall
develop and implement policies that provide the public with a
reasonable opportunity to appear before the board and to speak on
any agenda item at a regular board meeting.
Sec. 1103.162. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION PROCEDURES. (a) The board shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of board rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the board's
jurisdiction.
(b) The board's procedures relating to alternative dispute
resolution must conform, to the extent possible, to any model
guidelines issued by the State Office of Administrative Hearings
for the use of alternative dispute resolution by state agencies.
(c) The board shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) provide training as needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures.
Sec. 1103.163. COMPLAINT INFORMATION. (a) The board shall
maintain a system to promptly and efficiently act on complaints
filed with the board. The board shall maintain information about
parties to the complaint, the subject matter of the complaint, a
summary of the results of the review or investigation of the
complaint, and its disposition.
(b) The board shall make information available describing
its procedures for complaint investigation and resolution.
(c) The board shall periodically notify the complaint
parties of the status of the complaint until final disposition.
SECTION 28. Subchapter E, Chapter 1103, Occupations Code,
is amended by adding Section 1103.214 to read as follows:
Sec. 1103.214. DENIAL OF CERTIFICATE OR LICENSE RENEWAL.
(a) The board may deny the renewal of a certificate or license
issued under this chapter if the applicant is in violation of a
board order.
(b) The denial of a certificate or license renewal under
this section is subject to the same provisions as are applicable
under Section 1103.210 to the denial of a certificate or license.
SECTION 29. Section 1103.353, Occupations Code, is amended
to read as follows:
Sec. 1103.353. ELIGIBILITY REQUIREMENTS FOR APPRAISER
TRAINEE. To be eligible for a license as an appraiser trainee, an
applicant must:
(1) be at least 18 years of age;
(2) be a citizen of the United States or a lawfully
admitted alien;
(3) [have been a resident of this state for the 60 days
preceding the date the application is filed;
[(4)] satisfy the board as to the applicant's honesty,
trustworthiness, and integrity;
(4) [(5)] comply with the requirements of Sections
1103.203 and 1103.2031; and
(5) [(6)] meet all other qualifications established
by the board.
SECTION 30. Section 1103.460, Occupations Code, is amended
by adding Subsection (d-1) to read as follows:
(d-1) The board shall protect the identity of a complainant
to the extent possible by excluding the complainant's identifying
information from a complaint notice sent to a respondent.
SECTION 31. Section 1103.552(c), Occupations Code, is
amended to read as follows:
(c) Notwithstanding any other law, the board shall remit an
administrative penalty collected under this section to the
comptroller for deposit in the general revenue fund [shall be
deposited in a restricted fund maintained and operated by the board
to develop educational programs for appraisers or conduct studies
that enhance consumer protection].
SECTION 32. Subchapter L, Chapter 1103, Occupations Code,
is amended by adding Section 1103.5526 to read as follows:
Sec. 1103.5526. REFUND. (a) Subject to Subsection (b), the
board may order a person regulated by the board under this chapter
or Chapter 1104 to pay a refund to a consumer as provided in an
agreement resulting from an informal settlement conference or an
enforcement order instead of or in addition to imposing an
administrative penalty or other sanctions.
(b) The amount of a refund ordered as provided in an
agreement resulting from an informal settlement conference or an
enforcement order may not exceed the amount the consumer paid to the
person for a service regulated by the board. The board may not
require payment of other damages or estimate harm in a refund order.
SECTION 33. Section 1104.102(c), Occupations Code, is
amended to read as follows:
(c) A person owning more than 10 percent of an appraisal
management company in this state must[:
[(1) be of good moral character, as determined by the
board; and
[(2)] submit to a background investigation, as
determined by the board.
SECTION 34. Section 1104.104(b), Occupations Code, is
amended to read as follows:
(b) The controlling person designated under Subsection (a):
(1) must:
(A) be certified as an appraiser in at least one
state at all times during the designation; or
(B) have completed:
(i) the 15-hour national Uniform Standards
of Professional Appraisal Practice course; and
(ii) the seven-hour national Uniform
Standards of Professional Appraisal Practice update course not more
than two years before the renewal of the appraisal management
company's registration;
(2) may not have had a license or certificate to act as
an appraiser denied, revoked, or surrendered in lieu of revocation
in any state unless:
(A) the person has subsequently had the license
or certificate to act as an appraiser granted or reinstated; and
(B) the license or certificate to act as an
appraiser was denied, revoked, or surrendered for a nonsubstantive
reason as determined by the board; and
(3) [must be of good moral character, as determined by
the board; and
[(4)] shall submit to a background investigation, as
determined by the board.
SECTION 35. Section 1104.105, Occupations Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) The board may deny an application for registration
renewal if the applicant is in violation of a board order.
SECTION 36. Section 1104.2082, Occupations Code, is amended
by adding Subsection (e-1) to read as follows:
(e-1) The board shall protect the identity of a complainant
to the extent possible by excluding the complainant's identifying
information from a complaint notice sent to a respondent.
SECTION 37. Section 1105.004(b), Occupations Code, is
amended to read as follows:
(b) [Not later than August 31 of each fiscal year, the
agency shall remit a nonrefundable retainer to the state auditor in
an amount not less than $10,000.] The agency shall reimburse the
state auditor for all costs incurred[, in excess of the aggregate
nonrefundable retainer amounts paid each fiscal year,] in
performing the audits and shall provide to the governor a copy of
any audit performed.
SECTION 38. Sections 1105.005(b) and (c), Occupations Code,
are amended to read as follows:
(b) Before the beginning of each regular session of the
legislature, the agency shall submit to the legislature and the
governor a report describing all of the agency's activities in the
previous biennium. The report must include:
(1) an audit as required by Section 1105.004;
(2) a financial report of the previous fiscal year,
including reports on the financial condition and results of
operations;
(3) a description of all changes in fees imposed on
regulated persons;
(4) a report on changes in the regulatory jurisdiction
of the agency;
(5) a report on the number of examination candidates,
license, certificate, and registration holders, and enforcement
activities and any changes in those figures; and
(6) [(5)] a list of all new rules adopted or repealed.
(c) In addition to the reporting requirements of Subsection
(b), not later than November 1 of each year, the agency shall submit
to the governor, the committee of each house of the legislature that
has jurisdiction over appropriations, and the Legislative Budget
Board a report that contains:
(1) the salary for all agency personnel and the total
amount of per diem expenses and travel expenses paid for all agency
employees, including trend performance data for the preceding five
fiscal years;
(2) the total amount of per diem expenses and travel
expenses paid for each member of the agency, including trend
performance data for the preceding five fiscal years;
(3) the agency's operating plan covering a period of
two fiscal years [and the annual budgets of the commission and the
board]; [and]
(4) the agency's operating budget, including revenues
and a breakdown of expenditures by program and administrative
expense, showing:
(A) projected budget data for a period of two
fiscal years; and
(B) trend performance data for the preceding five
fiscal years; and
(5) trend performance data for the preceding five
fiscal years regarding:
(A) the number of full-time equivalent positions
at the agency;
(B) the number of complaints received from the
public and the number of complaints initiated by agency staff;
(C) the number of complaints dismissed and the
number of complaints resolved by enforcement action;
(D) the number of enforcement actions by sanction
type;
(E) the number of enforcement cases closed
through voluntary compliance;
(F) the amount of administrative penalties
assessed and the rate of collection of assessed administrative
penalties;
(G) the number of enforcement cases that allege a
threat to public health, safety, or welfare or a violation of
professional standards of care and the disposition of those cases;
(H) the average time to resolve a complaint;
(I) the number of license holders or regulated
persons broken down by type of license and license status,
including inactive status or retired status;
(J) the fee charged to issue and renew each type
of license, certificate, or registration issued by the agency;
(K) the average time to issue a license,
certificate, or registration;
(L) litigation costs, broken down by
administrative hearings, judicial proceedings, and outside counsel
costs; and
(M) reserve fund balances [a detailed report of
all revenue received and all expenses incurred by the agency in the
previous 12 months].
SECTION 39. Section 1105.007, Occupations Code, is amended
to read as follows:
Sec. 1105.007. PROPERTY. The commission or board may[:
[(1)] acquire by [purchase,] lease[, gift, or any
other manner provided by law] and maintain, use, and operate any
real, personal, or mixed property[, or any interest in property,]
necessary [or convenient] to the exercise of the respective powers,
rights, privileges, or functions of the commission or board[;
[(2) sell or otherwise dispose of any real, personal,
or mixed property, or any interest in property, that the commission
or board, as appropriate, determines is not necessary or convenient
to the exercise of the commission's or board's respective powers,
rights, privileges, or functions;
[(3) construct, extend, improve, maintain, and
reconstruct, or cause to construct, extend, improve, maintain, and
reconstruct, and use and operate all facilities necessary or
convenient to the exercise of the respective powers, rights,
privileges, or functions of the commission or board; and
[(4) borrow money, as may be authorized from time to
time by an affirmative vote of a two-thirds majority of the
commission or board, as appropriate, for a period not to exceed five
years if necessary or convenient to the exercise of the
commission's or board's respective powers, rights, privileges, or
functions].
SECTION 40. Section 1105.008(b), Occupations Code, is
amended to read as follows:
(b) The [Not later than August 31 of each fiscal year, the
agency shall remit a nonrefundable retainer to the office of the
attorney general in an amount of not less than $75,000. The
nonrefundable retainer shall be applied to any services provided to
the agency. If additional litigation services are required, the]
attorney general may assess and collect from the agency reasonable
attorney's fees[, in excess of the aggregate nonrefundable retainer
amount paid each fiscal year,] associated with any litigation under
this section.
SECTION 41. Section 1105.009, Occupations Code, is amended
to read as follows:
Sec. 1105.009. ADMINISTRATIVE HEARINGS. The [(a) Not later
than August 31 of each fiscal year, the agency shall remit a
nonrefundable retainer to the] State Office of Administrative
Hearings shall enter into a contract with the agency [in an amount
of not less than $75,000] for hearings conducted by the State Office
of Administrative Hearings under a law administered by the
commission or the board. The agency shall reimburse the State
Office of Administrative Hearings for costs incurred in conducting
the hearings.
[(b) The nonrefundable retainer shall be applied to the
costs associated with conducting the hearings. If additional
costs are incurred, the State Office of Administrative Hearings may
assess and collect from the agency reasonable fees, in excess of the
nonrefundable retainer amount paid each fiscal year, associated
with conducting the hearings.]
SECTION 42. Subchapter B, Chapter 1303, Occupations Code,
is amended by adding Section 1303.054 to read as follows:
Sec. 1303.054. COMPLAINT INVESTIGATION. If the commission
determines at any time that an allegation made or formal complaint
submitted by a person is inappropriate or without merit, the
commission shall dismiss the complaint and no further action may be
taken. The commission may delegate to staff the duty to dismiss
complaints described by this section.
SECTION 43. Subchapter C, Chapter 221, Property Code, is
amended by adding Section 221.0245 to read as follows:
Sec. 221.0245. COMPLAINT INVESTIGATION. If the commission
determines at any time that an allegation made or formal complaint
submitted by a person is inappropriate or without merit, the
commission shall dismiss the complaint and no further action may be
taken. The commission may delegate to commission staff the duty to
dismiss complaints under this section.
SECTION 44. Subchapter C, Chapter 221, Property Code, is
amended by adding Section 221.028 to read as follows:
Sec. 221.028. DENIAL OF REGISTRATION RENEWAL. (a) The
commission may deny the renewal of a registration under this
chapter if the developer is in violation of a commission order.
(b) The denial of a registration renewal under this section
is subject to the same provisions as are applicable under Section
1101.364, Occupations Code, to the denial of a license.
SECTION 45. Section 1101.552(c), Occupations Code, is
repealed.
SECTION 46. As soon as practicable after the effective date
of this Act, the Texas Real Estate Commission and the Texas
Appraiser Licensing and Certification Board shall adopt rules and
policies and enter into contracts necessary to implement the
changes in law made by this Act.
SECTION 47. The changes in law made by this Act relating to
an applicant's entitlement to a hearing following the denial of an
application to renew a license, certificate of registration, or
approval by the Texas Real Estate Commission or the Texas Appraiser
Licensing and Certification Board, as applicable, apply only to an
application for renewal that is submitted on or after the effective
date of this Act. An application for renewal that is 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 48. (a) Except as provided by Subsection (b) of
this section, Sections 1101.059 and 1103.0545, Occupations Code, as
amended by this Act, apply to a member of the commission or board
appointed before, on, or after the effective date of this Act.
(b) A member of the commission or board who, before the
effective date of this Act, completed the training program required
by Section 1101.059 or 1103.0545, Occupations Code, as the
applicable law existed before the effective date of this Act, is
required to complete additional training only on the subjects added
by this Act to the training program required by Section 1101.059 or
1103.0545, Occupations Code, as applicable. A member described by
this subsection may not vote, deliberate, or be counted as a member
in attendance at a meeting of the applicable commission or board
held on or after December 1, 2019, until the member completes the
additional training.
SECTION 49. Sections 1101.354, 1102.107, and 1103.353,
Occupations Code, as amended by this Act, apply only to an
application submitted to the Texas Real Estate Commission or the
Texas Appraiser Licensing and Certification Board, as applicable,
on or after the effective date of this Act. An application
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 50. Section 1101.652(a), Occupations Code, as
amended by this Act, and Section 1103.5526, Occupations Code, as
added by this Act, apply only to disciplinary action regarding
conduct that occurs on or after the effective date of this Act.
Conduct that occurs before that date is governed by the law in
effect on the date the conduct occurred, and the former law is
continued in effect for that purpose.
SECTION 51. Section 1103.0521, Occupations Code, as added
by this Act, and Section 1103.054, Occupations Code, as amended by
this Act, do not affect the entitlement of a member serving on the
Texas Appraiser Licensing and Certification Board immediately
before the effective date of this Act to continue to serve for the
remainder of the member's term. As the terms of board members
expire, the governor shall appoint or reappoint members who have
the qualifications required for members under Subchapter B, Chapter
1103, Occupations Code, as amended by this Act.
SECTION 52. Section 1103.552(c), Occupations Code, as
amended by this Act, applies only to an administrative penalty that
is collected on or after the effective date of this Act. An
administrative penalty collected before that date is governed by
the law in effect on the date the penalty was collected, and the
former law is continued in effect for that purpose.
SECTION 53. This Act takes effect September 1, 2019.