S.B. No. 624
 
 
 
 
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 any
  rule, interpretation, or enforcement action that:
                     (A)  regulates the scope of practice of persons in
  a profession or business the commission regulates;
                     (B)  restricts advertising by persons in a
  profession or business the commission regulates;
                     (C)  affects the price of goods or services
  provided by persons in a profession or business the commission
  regulates; or
                     (D)  restricts 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. Each
  member of the commission shall sign and submit to the executive
  director a statement acknowledging that the member received and has
  reviewed 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 any
  rule, interpretation, or enforcement action that:
                     (A)  regulates the scope of practice of persons in
  a profession or business the board regulates; 
                     (B)  restricts advertising by persons in a
  profession or business the board regulates;
                     (C)  affects the price of goods or services
  provided by persons in a profession or business the board
  regulates; or
                     (D)  restricts 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. Each member of the board
  shall sign and submit to the commissioner a statement acknowledging
  that the member received and has reviewed 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 Texas Real Estate
  Commission or the Texas Appraiser Licensing and Certification Board
  appointed before, on, or after the effective date of this Act.
         (b)  A member of the Texas Real Estate Commission or the
  Texas Appraiser Licensing and Certification 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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 624 passed the Senate on
  April 4, 2019, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 624 passed the House on
  May 15, 2019, by the following vote:  Yeas 137, Nays 4, three
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor