Bill Text: TX SB747 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to the professions regulated by the Texas Real Estate Commission.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-06-17 - Effective on 9/1/11 [SB747 Detail]
Download: Texas-2011-SB747-Enrolled.html
S.B. No. 747 |
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relating to the professions regulated by the Texas Real Estate | ||
Commission. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 1101.002, Occupations Code, is amended | ||
by amending Subdivision (1) and adding Subdivision (1-a) to read as | ||
follows: | ||
(1) "Broker": | ||
(A) means a person who, in exchange for a | ||
commission or other valuable consideration or with the expectation | ||
of receiving a commission or other valuable consideration, performs | ||
for another person one of the following acts: | ||
(i) sells, exchanges, purchases, or leases | ||
real estate; | ||
(ii) offers to sell, exchange, purchase, or | ||
lease real estate; | ||
(iii) negotiates or attempts to negotiate | ||
the listing, sale, exchange, purchase, or lease of real estate; | ||
(iv) lists or offers, attempts, or agrees | ||
to list real estate for sale, lease, or exchange; | ||
(v) [ |
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agrees to auction real estate; | ||
(vi) [ |
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estate, including buying, selling, or offering to buy or sell | ||
options on real estate; | ||
(vii) [ |
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to aid in locating or obtaining real estate for purchase or lease; | ||
(viii) [ |
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procuring a prospect to effect the sale, exchange, or lease of real | ||
estate; [ |
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(ix) [ |
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property to effect the sale, exchange, or lease of real estate; | ||
(x) controls the acceptance or deposit of | ||
rent from a resident of a single-family residential real property | ||
unit; or | ||
(xi) provides a written analysis, opinion, | ||
or conclusion relating to the estimated price of real property if | ||
the analysis, opinion, or conclusion: | ||
(a) is not referred to as an | ||
appraisal; | ||
(b) is provided in the ordinary course | ||
of the person's business; and | ||
(c) is related to the actual or | ||
potential management, acquisition, disposition, or encumbrance of | ||
an interest in real property; and | ||
(B) includes a person who: | ||
(i) is employed by or for an owner of real | ||
estate to sell any portion of the real estate; or | ||
(ii) engages in the business of charging an | ||
advance fee or contracting to collect a fee under a contract that | ||
requires the person primarily to promote the sale of real estate by: | ||
(a) listing the real estate in a | ||
publication primarily used for listing real estate; or | ||
(b) referring information about the | ||
real estate to brokers. | ||
(1-a) "Business entity" means a "domestic entity" or | ||
"foreign entity" as those terms are defined by Section 1.002, | ||
Business Organizations Code. | ||
SECTION 2. Section 1101.005, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1101.005. APPLICABILITY OF CHAPTER. This chapter does | ||
not apply to: | ||
(1) an attorney licensed in this [ |
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(2) an attorney-in-fact authorized under a power of | ||
attorney to conduct a real estate transaction; | ||
(3) a public official while engaged in official | ||
duties; | ||
(4) an auctioneer licensed under Chapter 1802 while | ||
conducting the sale of real estate by auction if the auctioneer does | ||
not perform another act of a broker or salesperson; | ||
(5) a person conducting a real estate transaction | ||
under a court order or the authority of a will or written trust | ||
instrument; | ||
(6) a person employed by an owner in the sale of | ||
structures and land on which structures are located if the | ||
structures are erected by the owner in the course of the owner's | ||
business; | ||
(7) an on-site manager of an apartment complex; | ||
(8) an owner or the owner's employee who leases the | ||
owner's improved or unimproved real estate; or | ||
(9) [ |
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(A) the sale, lease, or transfer of a mineral or | ||
mining interest in real property; | ||
(B) the sale, lease, or transfer of a cemetery | ||
lot; | ||
(C) the lease or management of a hotel or motel; | ||
or | ||
(D) the sale of real property under a power of | ||
sale conferred by a deed of trust or other contract lien. | ||
SECTION 3. Subchapter D, Chapter 1101, Occupations Code, is | ||
amended by adding Section 1101.161 to read as follows: | ||
Sec. 1101.161. GIFTS, GRANTS, AND DONATIONS. The | ||
commission may solicit and accept a gift, grant, donation, or other | ||
item of value from any source to pay for any activity under this | ||
chapter or Chapter 1102 or 1103. | ||
SECTION 4. Section 1101.301, Occupations Code, is amended | ||
by amending Subsection (c) and adding Subsection (d) to read as | ||
follows: | ||
(c) In establishing accreditation standards for an | ||
educational program under Subsection (a), the commission shall | ||
adopt rules setting an examination passage rate benchmark for each | ||
category of license issued by the commission under this chapter or | ||
Chapter 1102. The benchmark must be based on the average percentage | ||
of examinees that pass the licensing exam on the first attempt. A | ||
program must meet or exceed the benchmark for each license category | ||
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renew the program's accreditation for the license category. | ||
(d) The commission may deny an application for | ||
accreditation if the applicant owns or controls, or has previously | ||
owned or controlled, an educational program or course of study for | ||
which accreditation was revoked. | ||
SECTION 5. Section 1101.351, Occupations Code, is amended | ||
by adding Subsection (a-1) to read as follows: | ||
(a-1) Unless a business entity holds a license issued under | ||
this chapter, the business entity may not act as a broker. | ||
SECTION 6. Section 1101.352, Occupations Code, is amended | ||
by adding Subsection (d) to read as follows: | ||
(d) At the time an application is submitted under Subsection | ||
(a), each applicant shall provide the commission with the | ||
applicant's current mailing address and telephone number, and | ||
e-mail address if available. The applicant shall notify the | ||
commission of any change in the applicant's mailing or e-mail | ||
address or telephone number during the time the application is | ||
pending. | ||
SECTION 7. Section 1101.355, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1101.355. ADDITIONAL GENERAL ELIGIBILITY REQUIREMENTS | ||
FOR [ |
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under this chapter, a business entity must: | ||
(1) [ |
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officers as its agent for purposes of this chapter; and | ||
(2) provide proof that the entity maintains errors and | ||
omissions insurance with a minimum annual limit of $1 million for | ||
each occurrence if the designated agent owns less than 10 percent of | ||
the business entity [ |
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(b) A business entity [ |
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agent is a licensed broker in active status and good standing | ||
according to the commission's records. | ||
(c) A business entity that receives compensation on behalf | ||
of a license holder must be licensed as a broker under this chapter. | ||
SECTION 8. Section 1101.356, Occupations Code, is amended | ||
by amending Subsection (a) and adding Subsection (b-1) to read as | ||
follows: | ||
(a) An applicant for a broker license must provide to the | ||
commission satisfactory evidence that the applicant: | ||
(1) has had at least four [ |
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experience in this state as a license holder during the 60 [ |
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months preceding the date the application is filed; and | ||
(2) has successfully completed at least 60 semester | ||
hours, or equivalent classroom hours, of postsecondary education, | ||
including: | ||
(A) at least 18 semester hours or equivalent | ||
classroom hours of core real estate courses, two semester hours of | ||
which must be real estate brokerage; and | ||
(B) at least 42 hours of core real estate courses | ||
or related courses accepted by the commission. | ||
(b-1) The commission by rule shall establish what | ||
constitutes active experience for purposes of this section and | ||
Section 1101.357. | ||
SECTION 9. Section 1101.357, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1101.357. BROKER LICENSE: ALTERNATE EXPERIENCE | ||
REQUIREMENTS FOR CERTAIN APPLICANTS. An applicant for a broker | ||
license who does not satisfy the experience requirements of Section | ||
1101.356 must provide to the commission satisfactory evidence that: | ||
(1) the applicant: | ||
(A) is a licensed real estate broker in another | ||
state; | ||
(B) has had at least four [ |
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experience in that state as a licensed real estate broker or | ||
salesperson during the 60 [ |
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application is filed; and | ||
(C) has satisfied the educational requirements | ||
prescribed by Section 1101.356; or | ||
(2) the applicant was licensed in this state as a | ||
broker in the year preceding the date the application is filed. | ||
SECTION 10. Section 1101.358, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1101.358. SALESPERSON LICENSE: EDUCATION | ||
REQUIREMENTS. (a) An applicant for a salesperson license must | ||
provide to the commission satisfactory evidence that the applicant | ||
has completed at least 12 [ |
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classroom hours, of postsecondary education consisting of[ |
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(1) at least four semester hours of core real estate | ||
courses on principles of real estate; and | ||
(2) at least two semester hours of each of the | ||
following core real estate courses: | ||
(A) agency law; | ||
(B) contract law; [ |
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(C) contract forms and addendums; and | ||
(D) real estate finance [ |
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(b) The commission shall waive the education requirements | ||
of Subsection (a) if the applicant has been licensed in this state | ||
as a broker or salesperson within the six months [ |
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the date the application is filed. | ||
(c) If an applicant for a salesperson license was licensed | ||
as a salesperson within the six months [ |
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application is filed and the license was issued under the | ||
conditions prescribed by Section 1101.454, the commission shall | ||
require the applicant to provide the evidence of successful | ||
completion of education requirements that would have been required | ||
if the license had been maintained without interruption during the | ||
preceding six months [ |
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SECTION 11. Subsection (c), Section 1101.367, Occupations | ||
Code, is amended to read as follows: | ||
(c) As a condition of returning to active status, an | ||
inactive salesperson whose license is not subject to the [ |
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education requirements of Section 1101.454 must provide to the | ||
commission proof of attending at least 15 hours of continuing | ||
education as specified by Section 1101.455 during the two years | ||
preceding the date the application to return to active status is | ||
filed. | ||
SECTION 12. Subsection (f), Section 1101.401, Occupations | ||
Code, is amended to read as follows: | ||
(f) An applicant must satisfy the examination requirement | ||
not later than one year [ |
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application is filed. | ||
SECTION 13. Subsections (e) and (f), Section 1101.451, | ||
Occupations Code, are amended to read as follows: | ||
(e) A person whose license has been expired for 90 days or | ||
less may renew the license by paying to the commission a fee equal | ||
to 1-1/2 times the required renewal fee. If a license has been | ||
expired for more than 90 days but less than six months [ |
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the person may renew the license by paying to the commission a fee | ||
equal to two times the required renewal fee. | ||
(f) If a person's license has been expired for six months | ||
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person may obtain a new license by submitting to reexamination and | ||
complying with the requirements and procedures for obtaining an | ||
original license. | ||
SECTION 14. Subsection (a), Section 1101.452, Occupations | ||
Code, is amended to read as follows: | ||
(a) To renew an active license that is not subject to the | ||
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holder must provide to the commission proof of compliance with the | ||
continuing education requirements of Section 1101.455. | ||
SECTION 15. Section 1101.453, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1101.453. ADDITIONAL RENEWAL REQUIREMENTS FOR | ||
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chapter, a business entity must: | ||
(1) [ |
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officers as its agent for purposes of this chapter; and | ||
(2) provide proof that the entity maintains errors and | ||
omissions insurance with a minimum annual limit of $1 million for | ||
each occurrence if the designated agent owns less than 10 percent of | ||
the business entity [ |
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(b) A business entity [ |
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agent is a licensed broker in active status and good standing | ||
according to the commission's records. | ||
SECTION 16. Subsection (a), Section 1101.454, Occupations | ||
Code, is amended to read as follows: | ||
(a) An applicant applying for the first renewal of a | ||
salesperson license must provide to the commission satisfactory | ||
evidence of completion of at least 18 semester hours, or equivalent | ||
classroom hours, [ |
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of core real estate courses. | ||
SECTION 17. Subsection (b), Section 1101.455, Occupations | ||
Code, is amended to read as follows: | ||
(b) A license holder who is not subject to the [ |
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education requirements of Section 1101.454 must attend during the | ||
term of the current license at least 15 classroom hours of | ||
continuing education courses approved by the commission. | ||
SECTION 18. Subchapter J, Chapter 1101, Occupations Code, | ||
is amended by adding Section 1101.458 to read as follows: | ||
Sec. 1101.458. ADDITIONAL EDUCATION REQUIREMENTS FOR | ||
CERTAIN LICENSE HOLDERS. (a) A broker who sponsors a salesperson, | ||
or a license holder who supervises another license holder, must | ||
attend during the term of the current license at least six classroom | ||
hours of broker responsibility education courses approved by the | ||
commission. | ||
(b) The commission by rule shall prescribe the title, | ||
content, and duration of broker responsibility education courses | ||
required under this section. | ||
(c) Broker responsibility education course hours may be | ||
used to satisfy the hours described by Section 1101.455(f). | ||
(d) This section does not apply to a broker who is exempt | ||
from continuing education requirements under Section 1101.456. | ||
SECTION 19. Subsection (b), Section 1101.502, Occupations | ||
Code, is amended to read as follows: | ||
(b) To be eligible to receive a certificate of registration | ||
or a renewal certificate under this subchapter, a business | ||
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one of its managing officers[ |
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registered under this subchapter. | ||
SECTION 20. Subchapter K, Chapter 1101, Occupations Code, | ||
is amended by adding Section 1101.5041 to read as follows: | ||
Sec. 1101.5041. CRIMINAL HISTORY RECORD INFORMATION | ||
REQUIREMENT FOR CERTIFICATE. An applicant for an original | ||
certificate of registration or renewal of a certificate of | ||
registration must comply with the criminal history record check | ||
requirements of Section 1101.3521. | ||
SECTION 21. Section 1101.552, Occupations Code, is amended | ||
by adding Subsection (e) to read as follows: | ||
(e) A license holder shall provide the commission with the | ||
license holder's current mailing address and telephone number, and | ||
e-mail address if available. A license holder shall notify the | ||
commission of a change in the license holder's mailing or e-mail | ||
address or telephone number. | ||
SECTION 22. Section 1101.554, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 1101.554. COPY [ |
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salesperson license to the broker with whom the salesperson is | ||
associated. | ||
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SECTION 23. Subchapter N, Chapter 1101, Occupations Code, | ||
is amended by adding Section 1101.6561 to read as follows: | ||
Sec. 1101.6561. SUSPENSION OR REVOCATION OF EDUCATIONAL | ||
PROGRAM ACCREDITATION. The commission may suspend or revoke an | ||
accreditation issued under Subchapter G or take any other | ||
disciplinary action authorized by this chapter if the provider of | ||
an educational program or course of study violates this chapter or a | ||
rule adopted under this chapter. | ||
SECTION 24. Subsection (c), Section 1101.356, Occupations | ||
Code, is repealed. | ||
SECTION 25. (a) Not later than December 1, 2011, the Texas | ||
Real Estate Commission shall adopt rules necessary to implement | ||
Section 1101.301, Occupations Code, as amended by this Act, and | ||
Subsection (b-1), Section 1101.356, and Section 1101.458, | ||
Occupations Code, as added by this Act. | ||
(b) Subsection (e), Section 1101.552, Occupations Code, as | ||
added by this Act, applies only to a broker or salesperson license | ||
issued or renewed on or after December 1, 2011. A license issued or | ||
renewed before that date is governed by the law in effect | ||
immediately before the effective date of this Act, and the former | ||
law is continued in effect for that purpose. | ||
(c) Subsection (b), Section 1101.502, Occupations Code, as | ||
amended by this Act, and Section 1101.5041, Occupations Code, as | ||
added by this Act, apply only to an application for a certificate of | ||
registration or renewal of a certificate of registration filed with | ||
the Texas Real Estate Commission on or after December 1, 2011. An | ||
application filed before that date is governed by the law in effect | ||
immediately before the effective date of this Act, and the former | ||
law is continued in effect for that purpose. | ||
(d) Section 1101.458, Occupations Code, as added by this | ||
Act, applies only to a license issued or renewed on or after | ||
September 1, 2012. A license issued or renewed before that date is | ||
governed by the law in effect immediately before the effective date | ||
of this Act, and the former law is continued in effect for that | ||
purpose. | ||
(e) Sections 1101.352, 1101.355, and 1101.401, Occupations | ||
Code, as amended by this Act, apply only to an application for a | ||
real estate broker or salesperson license submitted to the Texas | ||
Real Estate Commission on or after the effective date of this Act. | ||
An application for a license submitted before that date is governed | ||
by the law in effect on the date the application was submitted, and | ||
the former law is continued in effect for that purpose. | ||
(f) Sections 1101.356 and 1101.357, Occupations Code, as | ||
amended by this Act, apply only to an application for a real estate | ||
broker license submitted to the Texas Real Estate Commission on or | ||
after January 1, 2012. An application for a license submitted | ||
before that date is governed by the law in effect immediately before | ||
the effective date of this Act, and the former law is continued in | ||
effect for that purpose. | ||
(g) Section 1101.358, Occupations Code, as amended by this | ||
Act, applies only to an application for a real estate salesperson | ||
license submitted to the Texas Real Estate Commission on or after | ||
September 1, 2012. An application for a license submitted before | ||
that date is governed by the law in effect immediately before the | ||
effective date of this Act, and the former law is continued in | ||
effect for that purpose. | ||
(h) Section 1101.454, Occupations Code, as amended by this | ||
Act, applies only to the renewal of a real estate salesperson | ||
license that expires on or after September 1, 2012. A license that | ||
expires before that date is governed by the law in effect | ||
immediately before the effective date of this Act, and the former | ||
law is continued in effect for that purpose. | ||
(i) Sections 1101.451 and 1101.453, Occupations Code, as | ||
amended by this Act, apply only to the renewal of a real estate | ||
broker or salesperson license that expires on or after the | ||
effective date of this Act. A license that expires before that date | ||
is governed by the law in effect on the date the license expires, | ||
and the former law is continued in effect for that purpose. | ||
(j) A person who holds a license as a real estate broker | ||
issued before the effective date of this Act may continue to renew | ||
that license without complying with the changes in law made by this | ||
Act to Sections 1101.356 and 1101.357, Occupations Code. | ||
(k) Sections 1101.002 and 1101.005, Occupations Code, as | ||
amended by this Act, apply, with respect to conduct that | ||
constitutes acting as a broker or salesperson under Chapter 1101, | ||
Occupations Code, only to conduct engaged in on or after the | ||
effective date of this Act. Conduct engaged in before the effective | ||
date of this Act is governed by the law in effect when the conduct | ||
was engaged in, and the former law is continued in effect for that | ||
purpose. | ||
SECTION 26. This Act takes effect September 1, 2011. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 747 passed the Senate on | ||
March 17, 2011, by the following vote: Yeas 31, Nays 0; | ||
May 25, 2011, Senate refused to concur in House amendments and | ||
requested appointment of Conference Committee; May 26, 2011, House | ||
granted request of the Senate; May 28, 2011, Senate adopted | ||
Conference Committee Report by the following vote: Yeas 31, | ||
Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 747 passed the House, with | ||
amendments, on May 20, 2011, by the following vote: Yeas 149, | ||
Nays 0, one present not voting; May 26, 2011, House granted request | ||
of the Senate for appointment of Conference Committee; | ||
May 28, 2011, House adopted Conference Committee Report by the | ||
following vote: Yeas 148, Nays 0, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |