S.B. No. 862
 
 
 
 
AN ACT
  relating to practices and professions regulated by the Texas Real
  Estate Commission.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (a), Section 1101.152, Occupations
  Code, as amended by Section 3, Chapter 297 (H.B. 1530), and Section
  9, Chapter 1411 (S.B. 914), Acts of the 80th Legislature, Regular
  Session, 2007, is reenacted and amended to read as follows:
         (a)  The commission shall adopt rules to charge and collect
  [reasonable] 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)  annual renewal of a broker license;
               (3)  filing an original application for a salesperson
  license;
               (4)  annual renewal of a salesperson license;
               (5)  annual registration;
               (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;
               (9)  filing a request to replace a lost or destroyed
  license or certificate of registration;
               (10)  filing an application for approval of an
  education program under Subchapter G;
               (11)  annual operation of an education program under
  Subchapter G;
               (12)  filing an application for approval of an
  instructor of core real estate courses;
               (13)  transcript evaluation;
               (14)  preparing a license or registration history;
               (15)  filing an application for a moral character
  determination; and
               (16)  conducting a criminal history check for issuing
  or renewing a license.
         SECTION 2.  Subsection (b), Section 1101.152, Occupations
  Code, is amended to read as follows:
         (b)  The commission shall adopt rules to set and collect
  [reasonable] fees in amounts reasonable and necessary to cover the
  costs of implementing [to implement] the continuing education
  requirements for license holders, including a fee for:
               (1)  an application for approval of a continuing
  education provider;
               (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 3.  Subsection (b), Section 1101.153, Occupations
  Code, is amended to read as follows:
         (b)  Of each fee increase collected under Subsection (a):
               (1)  $50 shall be transmitted to Texas A&M University
  for deposit in a separate banking account that may be appropriated
  only to support, maintain, and carry out the purposes, objectives,
  and duties of the Texas Real Estate Research Center;
               (2)  [,] $50 shall be deposited to the credit of the
  foundation school fund; and
               (3)  $100 [$150] shall be deposited to the credit of the
  general revenue fund.
         SECTION 4.  Subsection (a), Section 1101.154, Occupations
  Code, is amended to read as follows:
         (a)  The fee for the issuance or renewal of a:
               (1)  broker license is the amount of the fee set under
  Sections 1101.152 and 1101.153 and an additional $20 fee;
               (2)  salesperson license is the amount of the fee set
  under Section 1101.152 and an additional $20 [$17.50] fee; and
               (3)  certificate of registration is the amount of the
  fee set under Section 1101.152 and an additional $20 fee.
         SECTION 5.  Section 1101.606, Occupations Code, is amended
  by amending Subsection (a) and adding Subsections (c) and (d) to
  read as follows:
         (a)  Except as provided by Subsection (c), an [An] aggrieved
  person who obtains a court judgment against a license or
  certificate holder for an act described by Section 1101.602 may,
  after final judgment is entered, execution returned nulla bona, and
  a judgment lien perfected, file a verified claim in the court that
  entered the judgment.
         (c)  If an aggrieved person is precluded by action of a
  bankruptcy court from executing a judgment or perfecting a judgment
  lien as required by Subsection (a), the person shall verify to the
  commission that the person has made a good faith effort to protect
  the judgment from being discharged in bankruptcy.
         (d)  The commission by rule may prescribe the actions
  necessary for an aggrieved person to demonstrate that the person
  has made a good faith effort under Subsection (c) to protect a
  judgment from being discharged in bankruptcy.
         SECTION 6.  Section 1101.652, Occupations Code, is amended
  to read as follows:
         Sec. 1101.652.  GROUNDS FOR SUSPENSION OR REVOCATION OF
  LICENSE.  (a)  The commission may suspend or revoke a license
  issued under this chapter or take other disciplinary action
  authorized by this chapter 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 [in
  which fraud is an essential element], 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 for the license holder or a salesperson by fraud,
  misrepresentation, or deceit or by making a material misstatement
  of fact in an application for a license;
               (3)  engages in misrepresentation, dishonesty, or
  fraud when selling, buying, trading, or leasing real property in
  the name of:
                     (A)  the license holder;
                     (B)  the license holder's spouse; or
                     (C)  a person related to the license holder within
  the first degree by consanguinity;
               (4)  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;
               (5)  fails or refuses to produce on request, for
  inspection by the commission or a commission representative, a
  document, book, or record that is in the license holder's
  possession and relates to a real estate transaction conducted by
  the license holder;
               (6)  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;
               (7)  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;
               (8)  fails to use a contract form required by the
  commission under Section 1101.155;
               (9)  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
               (10)  disregards or violates this chapter.
         (b)  The commission may suspend or revoke a license issued
  under this chapter or take other disciplinary action authorized by
  this chapter if the license holder, while acting as a broker or
  salesperson:
               (1)  acts negligently or incompetently;
               (2)  engages in conduct that is dishonest or in bad
  faith or that demonstrates untrustworthiness;
               (3)  makes a material misrepresentation to a potential
  buyer concerning a significant defect, including a latent
  structural defect, known to the license holder that would be a
  significant factor to a reasonable and prudent buyer in making a
  decision to purchase real property;
               (4)  fails to disclose to a potential buyer a defect
  described by Subdivision (3) that is known to the license holder;
               (5)  makes a false promise that is likely to influence a
  person to enter into an agreement when the license holder is unable
  or does not intend to keep the promise;
               (6)  pursues a continued and flagrant course of
  misrepresentation or makes false promises through an agent or
  salesperson, through advertising, or otherwise;
               (7)  fails to make clear to all parties to a real estate
  transaction the party for whom the license holder is acting;
               (8)  receives compensation from more than one party to
  a real estate transaction without the full knowledge and consent of
  all parties to the transaction;
               (9)  fails within a reasonable time to properly account
  for or remit money that is received by the license holder and that
  belongs to another person;
               (10)  commingles money that belongs to another person
  with the license holder's own money;
               (11)  pays a commission or a fee to or divides a
  commission or a fee with a person other than a license holder or a
  real estate broker or salesperson licensed in another state for
  compensation for services as a real estate agent;
               (12)  fails to specify a definite termination date that
  is not subject to prior notice in a contract, other than a contract
  to perform property management services, in which the license
  holder agrees to perform services for which a license is required
  under this chapter;
               (13)  accepts, receives, or charges an undisclosed
  commission, rebate, or direct profit on an expenditure made for a
  principal;
               (14)  solicits, sells, or offers for sale real property
  by means of a lottery;
               (15)  solicits, sells, or offers for sale real property
  by means of a deceptive practice;
               (16)  acts in a dual capacity as broker and undisclosed
  principal in a real estate transaction;
               (17)  guarantees or authorizes or permits a person to
  guarantee that future profits will result from a resale of real
  property;
               (18)  places a sign on real property offering the real
  property for sale or lease without obtaining the written consent of
  the owner of the real property or the owner's authorized agent;
               (19)  offers to sell or lease real property without the
  knowledge and consent of the owner of the real property or the
  owner's authorized agent;
               (20)  offers to sell or lease real property on terms
  other than those authorized by the owner of the real property or the
  owner's authorized agent;
               (21)  induces or attempts to induce a party to a
  contract of sale or lease to break the contract for the purpose of
  substituting a new contract;
               (22)  negotiates or attempts to negotiate the sale,
  exchange, or lease of real property with an owner, landlord, buyer,
  or tenant with knowledge that that person is a party to an
  outstanding written contract that grants exclusive agency to
  another broker in connection with the transaction;
               (23)  publishes or causes to be published an
  advertisement, including an advertisement by newspaper, radio,
  television, the Internet, or display, that misleads or is likely to
  deceive the public, tends to create a misleading impression, or
  fails to identify the person causing the advertisement to be
  published as a licensed broker or agent;
               (24)  withholds from or inserts into a statement of
  account or invoice a statement that the license holder knows makes
  the statement of account or invoice inaccurate in a material way;
               (25)  publishes or circulates an unjustified or
  unwarranted threat of a legal proceeding or other action;
               (26)  establishes an association by employment or
  otherwise with a person other than a license holder if the person is
  expected or required to act as a license holder;
               (27)  aids, abets, or conspires with another person to
  circumvent this chapter;
               (28)  fails or refuses to provide, on request, a copy of
  a document relating to a real estate transaction to a person who
  signed the document;
               (29)  fails to advise a buyer in writing before the
  closing of a real estate transaction that the buyer should:
                     (A)  have the abstract covering the real estate
  that is the subject of the contract examined by an attorney chosen
  by the buyer; or
                     (B)  be provided with or obtain a title insurance
  policy;
               (30)  fails to deposit, within a reasonable time, money
  the license holder receives as escrow agent in a real estate
  transaction:
                     (A)  in trust with a title company authorized to
  do business in this state; or
                     (B)  in a custodial, trust, or escrow account
  maintained for that purpose in a banking institution authorized to
  do business in this state;
               (31)  disburses money deposited in a custodial, trust,
  or escrow account, as provided in Subdivision (30), before the
  completion or termination of the real estate transaction;
               (32)  discriminates against an owner, potential buyer,
  landlord, or potential tenant on the basis of race, color,
  religion, sex, disability, familial status, national origin, or
  ancestry, including directing a prospective buyer or tenant
  interested in equivalent properties to a different area based on
  the race, color, religion, sex, disability, familial status,
  national origin, or ancestry of the potential owner or tenant; or
               (33)  disregards or violates this chapter.
         SECTION 7.  Section 1303.3525, Occupations Code, is amended
  to read as follows:
         Sec. 1303.3525.  HEARING [EXAMINER].  (a)  The commission
  may authorize the State Office of Administrative Hearings [a
  hearing examiner] to conduct a hearing and enter a final decision in
  a proceeding under Section 1303.351.
         (b)  All hearings conducted under Subsection (a) are
  governed by Chapter 2001, Government Code [A final decision of a
  hearing examiner under this section is appealable to the commission
  as provided by commission rule].
         SECTION 8.  Subsections (b) and (c), Section 221.024,
  Property Code, are amended to read as follows:
         (b)  The commission [may]:
               (1)  shall authorize the State Office of Administrative
  Hearings [specific employees] to conduct hearings [and issue final
  decisions] in contested cases; and
               (2)  may establish reasonable fees for forms and
  documents it provides to the public and for the filing or
  registration of documents required by this chapter.
         (c)  If the commission initiates a disciplinary proceeding
  under this chapter, the person is entitled to a hearing before the
  State Office of Administrative Hearings [commission or a hearing
  officer appointed by the commission].  The commission by rule shall
  adopt procedures to permit an appeal to the commission from a
  determination made by the State Office of Administrative Hearings
  [a hearing officer] in a disciplinary action.
         SECTION 9.  Subsection (c), Section 221.027, Property Code,
  is amended to read as follows:
         (c)  A registration may be suspended under this section
  without notice or hearing on the complaint if:
               (1)  institution of proceedings for a hearing before
  the State Office of Administrative Hearings [commission] is
  initiated simultaneously with the temporary suspension; and
               (2)  a hearing is held under Chapter 2001, Government
  Code, and this chapter as soon as possible.
         SECTION 10.  (a)  The change in law made by this Act to
  Section 1101.606, Occupations Code, applies only to a judgment
  entered by a court on or after the effective date of this Act. A
  judgment entered before the effective date of this Act is governed
  by the law in effect when the judgment was entered, and the former
  law is continued in effect for that purpose.
         (b)  The change in law made by this Act to Subsection (b),
  Section 1101.652, Occupations Code, applies only to conduct
  occurring on or after the effective date of this Act. Conduct
  occurring before the effective date of this Act is governed by the
  law in effect when the conduct occurred, and the former law is
  continued in effect for that purpose.
         (c)  The changes in law made by this Act to Section
  1303.3525, Occupations Code, and Section 221.024, Property Code,
  apply only to a contested case filed on or after the effective date
  of this Act. A contested case filed before the effective date of
  this Act is governed by the law in effect on the date the contested
  case was filed, and the former law is continued in effect for that
  purpose.
         SECTION 11.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect immediately if it receives a
  vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.
         (b)  Subsection (b), Section 1101.153, Occupations Code, as
  amended by this Act, takes effect September 1, 2011.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 862 passed the Senate on
  April 9, 2009, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 862 passed the House on
  April 30, 2009, by the following vote:  Yeas 143, Nays 1, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor