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AN ACT
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relating to practices and professions regulated by the Texas |
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Appraiser Licensing and Certification Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1103.002, Occupations Code, is amended |
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to read as follows: |
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Sec. 1103.002. PURPOSE. The purpose of this chapter is to: |
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(1) conform state law relating to the regulation of |
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real estate appraisers to the requirements adopted under Title XI, |
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Financial Institutions Reform, Recovery, and Enforcement Act of |
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1989; and |
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(2) enforce standards for the appraisal of real |
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property. |
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SECTION 2. Section 1103.003(1), Occupations Code, is |
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amended to read as follows: |
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(1) "Appraisal" means, regardless of whether prepared |
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for a federally related transaction: |
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(A) an opinion [estimate] of value; or |
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(B) the act or process of developing an opinion |
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of [estimating] value. |
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SECTION 3. Section 1103.004(b), Occupations Code, is |
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amended to read as follows: |
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(b) This chapter does not prohibit: |
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(1) a person authorized by law from performing an |
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evaluation of real property for or providing an evaluation of real |
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property to another person; or |
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(2) [a real estate broker or salesperson licensed
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under Chapter 1101 but not certified or licensed under this chapter
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from performing an appraisal in a transaction other than a
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federally related transaction;
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[(3)
the requirement that a person who is not
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certified or licensed under this chapter be licensed as a real
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estate broker or salesperson to perform an appraisal in a
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transaction other than a federally related transaction; or
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[(4)] a real estate broker [or salesperson] licensed |
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under Chapter 1101 or a salesperson acting under the authority of a |
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sponsoring broker from providing to another person a written |
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analysis, [giving an] opinion, or conclusion relating to the |
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estimated price of real property if the analysis, [if the] opinion, |
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or conclusion: |
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(A) is not referred to as an appraisal; [and] |
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(B) is given in the ordinary course of the |
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broker's or salesperson's business; and |
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(C) is related to the actual or potential |
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acquisition, disposition, encumbrance, or management of an |
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interest in [to:
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[(i)
a potential seller or third party
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regarding the recommended listing price of real property; or
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[(ii)
a potential purchaser or third party
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regarding the recommended purchase price of] real property. |
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SECTION 4. Section 1103.101(b), Occupations Code, is |
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amended to read as follows: |
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(b) The board may delegate to the commissioner the |
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responsibility for administering this chapter, including the |
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approval of consent orders and agreements. |
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SECTION 5. Section 1103.151, Occupations Code, is amended |
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to read as follows: |
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Sec. 1103.151. RULES RELATING TO CERTIFICATES AND LICENSES. |
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The board may adopt: |
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(1) rules for certifying or licensing an appraiser or |
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approving an appraiser trainee in this state that are in accordance |
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with this chapter and consistent with applicable federal law; |
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(2) rules relating to the education and experience |
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required for certifying or licensing an appraiser or approving an |
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appraiser trainee that are consistent with the guidelines |
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recognized by the Appraiser Qualifications Board; |
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(3) rules relating to the examination required by |
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Subchapter F; and |
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(4) rules relating to procedures for the timely |
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renewal of a certificate, [or] license, or trainee approval. |
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SECTION 6. Section 1103.156(a), Occupations Code, is |
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amended to read as follows: |
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(a) The board may establish reasonable fees to administer |
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this chapter, including: |
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(1) an application fee for a certificate or license; |
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(2) an examination fee; |
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(3) a renewal fee for a certificate or license; |
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(4) a registration fee for a nonresident real estate |
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appraiser; |
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(5) an application fee for an appraiser trainee; |
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(6) a [an annual] renewal fee for an appraiser |
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trainee; |
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(7) a fee for filing a request for a return to active |
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status; and |
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(8) other appropriate fees. |
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SECTION 7. Subchapter D, Chapter 1103, Occupations Code, is |
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amended by adding Sections 1103.157 and 1103.158 to read as |
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follows: |
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Sec. 1103.157. GIFTS, GRANTS, AND DONATIONS. The board may |
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solicit, accept, and administer gifts, grants, and donations of any |
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kind from any public or private source for the purposes of this |
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chapter. |
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Sec. 1103.158. EXPERT WITNESS TESTIMONY BY BOARD MEMBER. |
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Notwithstanding Section 572.051, Government Code, a board member |
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may testify as an expert witness in an action concerning a violation |
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of the Uniform Standards of Professional Appraisal Practice. |
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SECTION 8. Section 1103.201, Occupations Code, is amended |
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to read as follows: |
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Sec. 1103.201. CERTIFICATE OR LICENSE REQUIRED. (a) A |
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[Unless the person is certified under this chapter, a] person may |
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not perform an appraisal of real estate unless the person is |
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licensed or certified as an appraiser under this chapter, |
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registered as a temporary out-of-state appraiser under this |
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chapter, or acting as an appraiser trainee under the sponsorship of |
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a certified appraiser. [:
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[(1)
use the title "state-certified real estate
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appraiser"; or
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[(2)
refer to an appraisal prepared by the person as a
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"certified appraisal."] |
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(b) Unless the person holds the appropriate license or |
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certification [is licensed under this chapter], a person may not: |
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(1) use the title "state-certified real estate |
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appraiser" or "state-licensed real estate appraiser"; or |
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(2) refer to an appraisal performed [prepared] by the |
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person as a "certified appraisal" or "licensed appraisal." |
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SECTION 9. Subchapter E, Chapter 1103, Occupations Code, is |
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amended by adding Section 1103.2015 to read as follows: |
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Sec. 1103.2015. GENERAL APPLICATION REQUIREMENTS. An |
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applicant for a license or certificate issued under this chapter |
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shall provide the board with the applicant's current mailing |
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address, telephone number, and e-mail address, if available. |
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SECTION 10. Section 1103.206(b), Occupations Code, is |
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amended to read as follows: |
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(b) The board shall adopt a reliable method to verify the |
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evidence of appraisal experience submitted by an applicant for a |
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certificate or license. The method must include the review of |
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appraisal experience of all applicants for certification and must |
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rely on appropriate sampling techniques that are applied to not |
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more than five percent of the license applications received by the |
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board. An applicant whose application is selected for verification |
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has at least 60 days after the date of selection to prepare any |
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records requested by the board. The board may not require the |
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applicant to provide more information than the information the |
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board may obtain under Section 1103.207. |
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SECTION 11. Sections 1103.209(a), (e), (f), and (g), |
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Occupations Code, are amended to read as follows: |
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(a) The board shall [may] issue a reciprocal certificate or |
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license to an applicant from another state if: |
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(1) the appraiser licensing and certification program |
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of the other state is in compliance with 12 U.S.C. Section 3331 et |
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seq.; |
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(2) the appraiser holds a valid license or certificate |
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from a state whose requirements for licensure or certification meet |
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or exceed the licensure or certification requirements of this |
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state; and |
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(3) the appraiser satisfies the board as to the |
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appraiser's honesty, trustworthiness, and integrity [under terms
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adopted by the board to an applicant who is certified or licensed
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under the laws of another state having certification or licensing
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requirements that the board determines have not been disapproved by
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the Appraiser Qualifications Board.
The terms must comply with the
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minimum criteria for obtaining a certificate or license recognized
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by the Appraiser Qualifications Board]. |
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(e) An applicant for a certificate or license under this |
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chapter who is not a resident of this state must submit with the |
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application an irrevocable consent that states that service of |
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process in an action against the applicant arising out of the |
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applicant's activities as a certified or licensed appraiser in this |
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state may be made by delivery of the process to the commissioner if |
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the plaintiff in the action, using due diligence, cannot obtain |
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personal service on the applicant. If process is served as provided |
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by this subsection, the commissioner shall immediately send a copy |
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of the material served on the commissioner [by regular mail] to the |
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certified or licensed appraiser at the appraiser's address of |
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record [principal place of business and residence address]. |
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(f) The board shall request verification from the state in |
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which the applicant is certified or licensed to confirm that the |
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applicant's certificate or license is valid, active, and in good |
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standing. The board may not issue a reciprocal certificate or |
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license without that verification. |
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(g) A reciprocal certificate or license expires on the |
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second anniversary of the last day of the month in which it was |
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[earlier of:
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[(1)
the expiration date of the certificate or license
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held by the applicant in the state in which the applicant is
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certified or licensed; or
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[(2)
the first anniversary of the date the reciprocal
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certificate or license is] issued. |
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SECTION 12. Subchapter E, Chapter 1103, Occupations Code, |
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is amended by adding Section 1103.2091 to read as follows: |
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Sec. 1103.2091. PROBATIONARY CERTIFICATE, LICENSE, OR |
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TRAINEE APPROVAL. (a) The board may issue a probationary |
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certificate or license or approve an appraiser trainee on a |
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probationary basis. |
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(b) The board by rule shall adopt reasonable terms for |
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issuing a probationary certificate or license and for approval of |
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an appraiser trainee on a probationary basis. |
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(c) A person who holds a probationary certificate or license |
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or who is approved as an appraiser trainee under this section must |
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disclose the probationary status to all clients before accepting an |
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assignment. |
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SECTION 13. Subchapter E, Chapter 1103, Occupations Code, |
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is amended by adding Section 1103.2111 to read as follows: |
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Sec. 1103.2111. LATE RENEWAL OF CERTIFICATE, LICENSE, OR |
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TRAINEE APPROVAL. (a) A person whose certificate, license, or |
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approval has been expired for 90 days or less may renew the |
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certificate, license, or approval by paying to the board a fee equal |
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to 1-1/2 times the required renewal fee. If a certificate, license, |
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or approval has been expired for more than 90 days but less than six |
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months, the person may renew the certificate, license, or approval |
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by paying to the board a fee equal to two times the required renewal |
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fee. |
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(b) A certificate, license, or approval that is renewed |
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under this section shall expire on the date that would apply had the |
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certificate, license, or approval been timely renewed. |
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(c) A person may not perform an appraisal in a federally |
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related transaction while the person is not actively licensed or |
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certified as an appraiser. |
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(d) If a person's certificate, license, or approval has been |
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expired six months or longer, the person may not renew the |
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certificate, license, or approval. The person may obtain a new |
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certificate, license, or approval by complying with the |
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requirements and procedures for an original application. |
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SECTION 14. Section 1103.258(b), Occupations Code, is |
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amended to read as follows: |
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(b) An applicant who fails the examination three |
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consecutive times may not apply for reexamination or submit a new |
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license application unless the applicant submits evidence |
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satisfactory to the board that the applicant has completed |
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additional education, as prescribed by the board, since the date |
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the applicant last took the examination [has not successfully
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completed the examination before the first anniversary of the date
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the application was initially accepted by the board must submit a
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new application and pay the required application fee]. |
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SECTION 15. Subchapter G, Chapter 1103, Occupations Code, |
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is amended by adding Section 1103.304 to read as follows: |
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Sec. 1103.304. EXTENSION OF REGISTRATION. A person may |
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obtain a 90-day extension of a temporary registration under this |
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subchapter by completing an extension form approved by the board |
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and paying any required fee. The board may grant only one extension |
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for each temporary registration. |
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SECTION 16. Subchapter H, Chapter 1103, Occupations Code, |
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is amended by adding Section 1103.356 to read as follows: |
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Sec. 1103.356. RENEWAL OF APPRAISER TRAINEE APPROVAL. A |
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person may renew an approval as an appraiser trainee by: |
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(1) paying the renewal fee established by the board; |
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(2) providing evidence satisfactory to the board of |
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completion of any required continuing education; and |
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(3) meeting any other renewal requirement established |
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by the board. |
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SECTION 17. The heading to Section 1103.403, Occupations |
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Code, is amended to read as follows: |
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Sec. 1103.403. CONTACT INFORMATION [OFFICE LOCATION]. |
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SECTION 18. Section 1103.403(b), Occupations Code, is |
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amended to read as follows: |
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(b) Not later than the 10th day after the date an [a
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certified or licensed] appraiser changes the appraiser's address, |
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e-mail address, or telephone number [moves from a previously
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designated address], the appraiser shall: |
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[(1)] notify the board of the change [new office
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location on a form prescribed by the board;] and |
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[(2)] pay any required [a] fee [set by the board]. |
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SECTION 19. Subchapter K, Chapter 1103, Occupations Code, |
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is amended by adding Sections 1103.5011 and 1103.5012 to read as |
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follows: |
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Sec. 1103.5011. NOTICE OF VIOLATION AND PENALTY. (a) The |
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commissioner may send an appraiser against whom a complaint has |
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been filed a notice of violation including: |
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(1) a summary of the alleged violation; |
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(2) the recommended sanction, including the amount of |
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any administrative penalty sought; and |
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(3) a conspicuous notice that the respondent has the |
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right to a hearing to contest the alleged violation, the |
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recommended sanction, or both. |
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(b) Not later than the 20th day after the date the person |
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receives the notice under Subsection (a), the person may: |
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(1) accept the commissioner's determination, |
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including the recommended sanction; or |
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(2) request in writing a hearing, to be held under |
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Chapter 2001, Government Code, on the occurrence of the violation, |
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the sanction, or both. |
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Sec. 1103.5012. PENALTY TO BE PAID OR HEARING REQUESTED. If |
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the person accepts the commissioner's determination, or fails to |
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respond in a timely manner to the notice, the board by order shall |
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approve the determination and order payment of the recommended |
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penalty, impose the recommended sanction, or both. |
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SECTION 20. Section 1103.518, Occupations Code, is amended |
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to read as follows: |
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Sec. 1103.518. ACTION AFTER HEARING. On conclusion of a |
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contested case hearing and on submission of all written responses |
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allowed under Section 1103.515, the administrative law judge shall: |
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(1) make findings of fact and conclusions of law; and |
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(2) issue to the board a proposal for decision that the |
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board take one or more of the following actions: |
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(A) dismiss the charges[, including issuing an
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order declaring that the case file is confidential]; |
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(B) suspend or revoke the appraiser's |
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certificate or license or the appraiser trainee's approval; |
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(C) impose a period of probation with or without |
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conditions; |
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(D) require the appraiser to submit to |
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reexamination for a certificate or license; |
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(E) require the appraiser or appraiser trainee to |
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participate in additional professional education or continuing |
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education; |
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(F) issue a public or private reprimand or a |
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warning; |
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(G) issue a consent order; or |
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(H) impose an administrative penalty as |
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prescribed by Section 1103.552. |
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SECTION 21. Section 1103.522, Occupations Code, is amended |
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to read as follows: |
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Sec. 1103.522. REINSTATEMENT OF CERTIFICATE OR LICENSE. |
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[(a)] A person whose certificate or license has been [suspended or] |
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revoked or a person who has surrendered a certificate or license |
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issued by the board may not apply to the board for reinstatement |
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until the second anniversary of the date of [as provided by the
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order of suspension or] revocation or surrender. |
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[(b)
If the order does not establish terms for
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reinstatement, the appraiser may not:
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[(1)
make an initial application for reinstatement
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until the first anniversary of the effective date of the order; or
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[(2)
make subsequent applications more often than once
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every two years.] |
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SECTION 22. Subchapter L, Chapter 1103, Occupations Code, |
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is amended by adding Section 1103.5511 to read as follows: |
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Sec. 1103.5511. TEMPORARY SUSPENSION. (a) The presiding |
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officer of the board shall appoint a disciplinary panel consisting |
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of three board members to determine whether a person's license or |
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certification to practice under this chapter should be temporarily |
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suspended. |
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(b) If the disciplinary panel determines from the |
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information presented to the panel that a person licensed or |
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certified to practice under this chapter would, by the person's |
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continued practice, constitute a continuing threat to the public |
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welfare, the panel shall temporarily suspend the license or |
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certification of that person. |
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(c) A license or certification may be suspended under this |
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section without notice or hearing on the complaint if: |
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(1) institution of proceedings for a contested case |
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hearing is initiated simultaneously with the temporary suspension; |
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and |
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(2) a hearing is held under Chapter 2001, Government |
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Code, and this chapter as soon as possible. |
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(d) A temporary suspension under this section automatically |
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expires after 45 days if the board has not scheduled a hearing to |
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take place within that time or if, at the board's request, the |
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hearing is continued beyond the 45th day. |
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(e) Notwithstanding Chapter 551, Government Code, the |
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disciplinary panel may hold a meeting by telephone conference call |
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if immediate action is required and convening the panel at one |
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location is inconvenient for any member of the panel. |
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SECTION 23. Section 1103.552, Occupations Code, is amended |
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to read as follows: |
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Sec. 1103.552. ADMINISTRATIVE PENALTY. (a) The board may |
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impose an administrative penalty for a violation of this chapter or |
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a rule adopted or order issued by the board under this chapter |
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[Section 1103.518(2)(H)] in an amount not to exceed: |
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(1) $1,500 for each violation; or |
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(2) $5,000 for multiple violations [proved] in a |
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single [one contested] case. |
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(b) The person on whom the penalty is imposed shall pay the |
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penalty not later than the 20th day after the date the order |
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imposing the penalty becomes [of the] final [disposition of the
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contested case]. |
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SECTION 24. Sections 1103.208 and 1103.209(b), Occupations |
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Code, are repealed. |
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SECTION 25. The change in law made by this Act to Section |
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1103.209(b), Occupations Code, applies only to an application for a |
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reciprocal certificate or license that is submitted on or after the |
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effective date of this Act. An application submitted before the |
|
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effective date of this Act is governed by the law in effect on the |
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date the application is submitted, and the former law is continued |
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in effect for that purpose. |
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SECTION 26. The change in law made by Section 1103.2111, |
|
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Occupations Code, as added by this Act, applies to the renewal of a |
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certificate, license, or approval that expires on or after the |
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effective date of this Act. A certificate, license, or approval |
|
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that expires before the effective date of this Act is governed by |
|
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the law in effect on the date the certificate, license, or approval |
|
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expired, and the former law is continued in effect for that purpose. |
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SECTION 27. The change in law made by Sections 1103.5011 and |
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1103.5012, Occupations Code, as added by this Act, applies only to a |
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complaint filed on or after the effective date of this Act. A |
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complaint filed before that date is governed by the law in effect on |
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the date the complaint was filed, and the former law is continued in |
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effect for that purpose. |
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SECTION 28. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2375 was passed by the House on April |
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14, 2011, by the following vote: Yeas 142, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2375 was passed by the Senate on May |
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10, 2011, by the following vote: Yeas 31, Nays 0 |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Governor |