S.B. No. 914

	AN ACT
	relating to the continuation and functions of the Texas Real Estate
	Commission and the regulation of real estate brokers, salespersons,
	inspectors, appraisers, residential service companies, and
	timeshares; providing administrative penalties.
	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, [and]
	Chapter 1102, and Chapter 1303 of this code and Chapter 221,
	Property Code, expire September 1, 2019 [2007].
	SECTION 2.  Subchapter A, Chapter 1101, Occupations Code, is
	amended by adding Section 1101.007 to read as follows:
	Sec. 1101.007.  COMPLIANCE WITH SUNSET RECOMMENDATIONS.
	(a)  The commission shall:
	(1)  comply with and implement the management action
	recommendations regarding the commission adopted by the Sunset
	Advisory Commission on January 10, 2007, as a result of its review
	of the commission; and
	(2)  report to the Sunset Advisory Commission not later
	than November 1, 2008, the information the Sunset Advisory
	Commission requires regarding the commission's implementation of
	the recommendations under Subdivision (1).
	(b)  This section expires June 1, 2009.
	SECTION 3.  Section 1101.053, Occupations Code, is amended
	to read as follows:
	Sec. 1101.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS.
	(a)  In this section, "Texas trade association" means a
	[nonprofit,] 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 commission and may
	not be a commission 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, [A state elected
	president, president-elect, vice president, or
	secretary-treasurer,] employee, or paid consultant of a Texas trade
	association in the real estate industry; or
	(2)  the person's spouse [may not be a commission member
	and may not be a commission employee who is exempt from the state's
	position classification plan or is compensated at or above the
	amount prescribed by the General Appropriations Act for step 1,
	salary group A17, of the position classification salary schedule.
	[(c)  A person who] is [the spouse of] an officer, manager,
	or paid consultant of a Texas trade association in the real estate
	industry [may not be a commission member and may not be a commission
	employee who is exempt from the state's position classification
	plan or is compensated at or above the amount prescribed by the
	General Appropriations Act for step 1, salary group A17, of the
	position classification salary schedule].
	(c) [(d)]  A person may not serve as a commission member or
	act as the general counsel to the commission 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 commission.
	SECTION 4.  Subsections (a) and (c), Section 1101.057,
	Occupations Code, are amended to read as follows:
	(a)  It is a ground for removal from the commission that a
	member:
	(1)  does not have at the time of appointment the
	qualifications required by Section 1101.051(a) or (b) or 1101.052;
	(2)  does not maintain during service on the commission
	the qualifications required by Section 1101.051(a) or (b) or
	1101.052;
	(3)  is ineligible for membership under [violates a
	prohibition established by] Section 1101.053;
	(4)  cannot, because of illness or disability,
	discharge the member's duties for a substantial part of the member's
	term; or
	(5)  is absent from more than half of the regularly
	scheduled commission meetings that the member is eligible to attend
	during each calendar year, unless the absence is excused by
	majority vote of the commission.
	(c)  If the administrator has knowledge that a potential
	ground for removal [of a commission member] exists, the
	administrator shall notify the presiding officer of the commission
	of the potential ground. The presiding officer shall then notify
	the governor and the attorney general that a potential ground for
	removal exists. If the potential ground for removal involves the
	presiding officer, the administrator shall notify the next highest
	ranking officer of the commission, who shall then notify the
	governor and the attorney general that a potential ground for
	removal exists.
	SECTION 5.  Subchapter B, Chapter 1101, Occupations Code, is
	amended by adding Section 1101.059 to read as follows:
	Sec. 1101.059.  TRAINING. (a)  A person who is appointed to
	and qualifies for office as a member of the commission may not vote,
	deliberate, or be counted as a member in attendance at a meeting of
	the commission until the person completes a training program that
	complies with this section.
	(b)  The training program must provide the person with
	information regarding:
	(1)  this chapter and other laws regulated by the
	commission;
	(2)  the programs, functions, rules, and budget of the
	commission;
	(3)  the results of the most recent formal audit of the
	commission;
	(4)  the requirements of laws relating to open
	meetings, public information, administrative procedure, and
	conflicts of interest; and
	(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.
	SECTION 6.  Subsection (a), Section 1101.101, Occupations
	Code, is amended to read as follows:
	(a)  The commission shall [may] appoint an administrator.
	SECTION 7.  Section 1101.102, Occupations Code, is amended
	to read as follows:
	Sec. 1101.102.  DIVISION OF RESPONSIBILITIES.  The
	commission shall develop and implement policies that clearly
	separate the policymaking responsibilities of the commission and
	the management responsibilities of the administrator and the
	[define the respective responsibilities of the commission and the
	commission] staff of the commission.
	SECTION 8.  Subsection (b), Section 1101.151, Occupations
	Code, is amended to read as follows:
	(b)  The commission may:
	(1)  adopt and enforce rules necessary to administer
	this chapter and Chapter 1102; and
	(2)  establish standards of conduct and ethics for
	persons licensed under this chapter and Chapter 1102 to:
	(A)  fulfill the purposes of this chapter and
	Chapter 1102; and
	(B)  ensure compliance with this chapter and
	Chapter 1102[; and
	[(3)     authorize specific employees to conduct hearings
	and issue final decisions in contested cases].
	SECTION 9.  Subsections (a) and (b), Section 1101.152,
	Occupations Code, are amended to read as follows:
	(a)  The commission shall adopt rules to charge and collect
	reasonable fees, including a fee for [the following fees]:
	(1)  [for] filing an original application for a broker
	license[, not more than $100];
	(2)  [for] annual renewal of a broker license[, not
	more than $100];
	(3)  [for] filing an original application for a
	salesperson license[, not more than $75];
	(4)  [for] annual renewal of a salesperson license[,
	not more than $50];
	(5)  [for] annual registration[, $80];
	(6)  filing [for] an application for a license
	examination[, not more than $100];
	(7)  [for] filing a request for a branch office
	license[, not more than $20];
	(8)  [for] filing a request for a change of place of
	business, change of name, return to active status, or change of
	sponsoring broker[, not more than $20];
	(9)  [for] filing a request to replace a lost or
	destroyed license or certificate of registration[, not more than
	$20];
	(10)  [for] filing an application for approval of an
	education program under Subchapter G[, not more than $400];
	(11)  [for] annual operation of an education program
	under Subchapter G[, not more than $200];
	(12)  [for] filing an application for approval of an
	instructor of core real estate courses[, not more than $40];
	(13)  [for] transcript evaluation[, $20];
	(14)  [for] preparing a license or registration
	history[, not more than $20]; [and]
	(15)  [for] filing an application for a moral character
	determination; and
	(16)  conducting a criminal background check in
	connection with the annual renewal of a license under this
	chapter[, not more than $50].
	(b)  The commission shall adopt rules to [may] set and
	collect reasonable fees to implement the continuing education
	requirements for license holders, including a fee for [the
	following fees]:
	(1)  [for] an application for approval of a continuing
	education provider[, not more than $400];
	(2)  [for] an application for approval of a continuing
	education course of study[, not more than $100];
	(3)  [for] an application for approval of an instructor
	of continuing education courses[, not more than $40]; and
	(4)  [for] attendance at a program to train instructors
	of a continuing education course prescribed under Section
	1101.455[, not more than $100].
	SECTION 10.  Subchapter D, Chapter 1101, Occupations Code,
	is amended by adding Sections 1101.158, 1101.159, and 1101.160 to
	read as follows:
	Sec. 1101.158.  ADVISORY COMMITTEES.  (a)  The commission
	may appoint advisory committees to perform the advisory functions
	assigned to the committees by the commission.  An advisory
	committee under this section is subject to Section 2110, Government
	Code.
	(b)  A member of an advisory committee who is not a member of
	the commission 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 commission.
	(d)  An advisory committee may hold a meeting by telephone
	conference call or other video or broadcast technology.
	(e)  Advisory committee meetings are subject to Chapter 551,
	Government Code.
	Sec. 1101.159.  USE OF TECHNOLOGY. The commission shall
	implement a policy requiring the commission to use appropriate
	technological solutions to improve the commission's ability to
	perform its functions. The policy must ensure that the public is
	able to interact with the commission on the Internet.
	Sec. 1101.160.  NEGOTIATED RULEMAKING AND ALTERNATIVE
	DISPUTE RESOLUTION PROCEDURES.  (a)  The commission shall develop
	and implement a policy to encourage the use of:
	(1)  negotiated rulemaking procedures under Chapter
	2008, Government Code, for the adoption of commission 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 commission's
	jurisdiction.
	(b)  The commission'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 commission shall designate a trained person to:
	(1)  coordinate the implementation of the policy
	adopted under Subsection (a);
	(2)  serve as a resource for any training needed to
	implement the procedures for negotiated rulemaking or alternative
	dispute resolution; and
	(3)  collect data concerning the effectiveness of those
	procedures, as implemented by the commission.
	SECTION 11.  Subsection (a), Section 1101.201, Occupations
	Code, is amended to read as follows:
	(a)  The commission shall prepare information of public
	interest describing the functions of the commission [and the
	procedures by which complaints are filed with and resolved by the
	commission].
	SECTION 12.  Section 1101.203, Occupations Code, is amended
	to read as follows:
	Sec. 1101.203.  COMPLAINT INFORMATION.  (a)  The commission
	shall maintain a system to promptly and efficiently act on
	complaints filed with the commission. The commission shall
	maintain a file on each complaint.  The file must include:
	(1)  information relating to the parties to the
	complaint;
	(2)  the subject matter of the complaint;
	(3)  a summary of the results of the review or
	investigation of the complaint; and
	(4)  the disposition of the complaint [an information
	file about each complaint filed with the commission that the
	commission has authority to resolve].
	(b)  The commission shall make information available
	describing its procedures for complaint investigation and
	resolution.
	(c)  The [If a written complaint is filed with the commission
	that the commission has authority to resolve, the] commission[, at
	least quarterly and until final disposition of the complaint,]
	shall periodically notify the parties to the complaint of the
	status of the complaint until final disposition, unless the notice
	would jeopardize an undercover investigation authorized under
	Section 1101.204.
	SECTION 13.  Section 1101.204, Occupations Code, is amended
	by amending Subsection (a) and adding Subsection (h) to read as
	follows:
	(a)  The commission or commission staff may file a complaint
	and conduct an investigation as necessary to enforce this chapter,
	Chapter 1102, or a rule adopted under those chapters[, on its own
	motion, investigate the actions and records of a license holder].
	(h)  The commission shall ensure that the commission gives
	priority to the investigation of a complaint filed by a consumer and
	an enforcement case resulting from the consumer complaint.  The
	commission shall assign priorities and investigate complaints
	using a risk-based approach based on the:
	(1)  degree of potential harm to a consumer;
	(2)  potential for immediate harm to a consumer;
	(3)  overall severity of the allegations in the
	complaint;
	(4)  number of license holders potentially involved in
	the complaint;
	(5)  previous complaint history of the license holder;
	and
	(6)  number of potential violations in the complaint.
	SECTION 14.  Section 1101.301, Occupations Code, is amended
	by adding Subsection (c) to read as follows:
	(c)  In establishing accreditation standards for an
	educational program under Subsection (a), the commission shall
	adopt rules that require a program to establish that at least 55
	percent of the program's graduates have passed a licensing exam the
	first time the exam has been taken by the graduates before the
	commission may renew the program's accreditation.
	SECTION 15.  Section 1101.303, Occupations Code, is amended
	to read as follows:
	Sec. 1101.303.  APPROVAL OF CONTINUING EDUCATION PROVIDER OR
	COURSE OF STUDY.  (a)  If the commission determines that an
	applicant for approval as a continuing education provider satisfies
	the requirements of this subchapter or Section 1102.205 and any
	rule adopted under this subchapter or Section 1102.205, the
	commission may authorize the applicant to offer continuing
	education for a two-year period.
	(b)  If the commission determines that an applicant for
	approval of a continuing education course of study satisfies the
	requirements of this subchapter or Section 1102.205 and any rule
	adopted under this subchapter or Section 1102.205, the commission
	may authorize the applicant to offer the course of study for a
	two-year period.
	SECTION 16.  Subchapter G, Chapter 1101, Occupations Code,
	is amended by adding Sections 1101.304 and 1101.305 to read as
	follows:
	Sec. 1101.304.  EXAMINATION PASSAGE RATE DATA. (a)  The
	commission shall adopt rules regarding the collection and
	publication of data relating to examination passage rates for
	graduates of accredited educational programs.
	(b)  Rules adopted under this section must provide for a
	method to:
	(1)  calculate the examination passage rate;
	(2)  collect the relevant data from the examination
	administrator or the accredited program; and
	(3)  post the examination passage rate data on the
	commission's Internet website, in a manner aggregated by
	educational program and by license group.
	(c)  In determining the educational program a graduate is
	affiliated with for purposes of this section, the educational
	program is the program the graduate last attended.
	Sec. 1101.305.  REVIEW COMMITTEE. (a)  The commission may
	appoint a committee to review the performance of an educational
	program performing below the standards set by the commission under
	Section 1101.301. The committee shall consist of:
	(1)  at least one commission member;
	(2)  at least one member of the commission staff;
	(3)  individuals licensed under this chapter or Chapter
	1102; and
	(4)  a representative from the Texas Real Estate
	Research Center.
	(b)  A committee formed under this section shall review and
	evaluate any factor causing an educational program's poor
	performance and report findings and recommendations to improve
	performance to the program and to the commission.
	(c)  A committee formed under this section may not revoke the
	accreditation of an educational program.  The commission may
	temporarily suspend a program in the same manner as a license under
	Subchapter N.
	SECTION 17.  Subsection (b), Section 1101.364, Occupations
	Code, is amended to read as follows:
	(b)  A person whose license application is denied under this
	section is entitled to a hearing under Section 1101.657 [Before the
	applicant may appeal under Section 1101.658, the applicant must
	file, not later than the 10th day after the date the applicant
	receives the notice, an appeal requesting a time and place for a
	hearing before the commission. If the applicant fails to request a
	hearing as provided by this subsection, the commission's decision
	becomes final and is not subject to judicial review].
	SECTION 18.  The heading to Section 1101.451, Occupations
	Code, is amended to read as follows:
	Sec. 1101.451.  LICENSE EXPIRATION AND RENEWAL.
	SECTION 19.  Section 1101.451, Occupations Code, is amended
	by amending Subsection (d) and adding Subsections (e) and (f) to
	read as follows:
	(d)  Except as provided by Subsection (e), a [A] renewal fee
	for a license under this chapter may not exceed, calculated on an
	annual basis, the amount of the sum of the fees established under
	Sections 1101.152, 1101.154, and 1101.603.
	(e)  A person whose license has been expired for 90 days or
	less may renew the license by paying to the commission a fee equal
	to 1-1/2 times the required renewal fee. If a license has been
	expired for more than 90 days but less than one year, the person may
	renew the license by paying to the commission a fee equal to two
	times the required renewal fee.
	(f)  If a person's license has been expired for one year or
	longer, the person may not renew the license.  The person may obtain
	a new license by submitting to reexamination and complying with the
	requirements and procedures for obtaining an original license.
	SECTION 20.  Section 1101.455, Occupations Code, is amended
	by adding Subsection (k) to read as follows:
	(k)  An online course offered under this section may not be
	completed in less than 24 hours.
	SECTION 21.  Subsection (b), Section 1101.457, Occupations
	Code, is amended to read as follows:
	(b)  The commission may require an applicant under this
	section to:
	(1)  pay a [an additional] fee, not to exceed $200, in
	addition to any fee for late renewal of a license under this
	chapter; and
	(2)  complete the required continuing education not
	later than the 60th day after the date the license is issued,
	renewed, or returned to active status.
	SECTION 22.  Subsection (a), Section 1101.657, Occupations
	Code, is amended to read as follows:
	(a)  If the commission proposes to deny, suspend, or revoke a
	person's license or certificate of registration, the person is
	entitled to a hearing conducted by the State Office of
	Administrative Hearings [before the commission or a hearings
	officer appointed by the commission].
	SECTION 23.  Subsection (a), Section 1101.658, Occupations
	Code, is amended to read as follows:
	(a)  A person aggrieved by a ruling, order, or decision under
	this subchapter [of the commission] is entitled to appeal to a
	district court in the county in which the administrative hearing
	was held.
	SECTION 24.  Subchapter N, Chapter 1101, Occupations Code,
	is amended by adding Sections 1101.659 through 1101.662 to read as
	follows:
	Sec. 1101.659.  REFUND.  (a)  Subject to Subsection (b), the
	commission may order a person regulated by the commission 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 or accommodation regulated by this commission.
	The commission may not require payment of other damages or estimate
	harm in a refund order.
	Sec. 1101.660.  INFORMAL PROCEEDINGS. (a)  The commission
	by rule shall adopt procedures governing informal disposition of a
	contested case.
	(b)  Rules adopted under this section must:
	(1)  provide the complainant and the license holder,
	certificate holder, or regulated entity an opportunity to be heard;
	and
	(2)  require the presence of:
	(A)  a public member of the commission for a case
	involving a consumer complaint; and
	(B)  at least two staff members of the commission
	with experience in the regulatory area that is the subject of the
	proceeding.
	Sec. 1101.661.  FINAL ORDER.  The commission may issue a
	final order in a proceeding under this subchapter or Subchapter O
	regarding a person whose license has expired during the course of an
	investigation or administrative proceeding.
	Sec. 1101.662.  TEMPORARY SUSPENSION.  (a)  The presiding
	officer of the commission shall appoint a disciplinary panel
	consisting of three commission members to determine whether a
	person's license to practice under this chapter should be
	temporarily suspended.
	(b)  If the disciplinary panel determines from the
	information presented to the panel that a person licensed to
	practice under this chapter would, by the person's continued
	practice, constitute a continuing threat to the public welfare, the
	panel shall temporarily suspend the license of that person.
	(c)  A license may be suspended under this section without
	notice or hearing on the complaint if:
	(1)  institution of proceedings for a hearing before
	the 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.
	(d)  Notwithstanding Chapter 551, Government Code, the
	disciplinary panel may hold a meeting by telephone conference call
	if immediate action is required and convening the panel at one
	location is inconvenient for any member of the panel.
	SECTION 25.  Section 1101.701, Occupations Code, is amended
	to read as follows:
	Sec. 1101.701.  IMPOSITION OF ADMINISTRATIVE PENALTY.
	(a)  The commission may impose an administrative penalty on a
	person who violates this chapter or a rule adopted or order issued
	by the commission under this chapter.
	(b)  The commission shall periodically review the
	commission's enforcement procedures and ensure that administrative
	penalty and disciplinary proceedings are combined into a single
	enforcement procedure.
	(c)  The commission may combine a proceeding to impose an
	administrative penalty with another disciplinary proceeding,
	including a proceeding to suspend or revoke a license.
	SECTION 26.  Section 1101.702, Occupations Code, is amended
	by amending Subsection (a) and adding Subsection (c) to read as
	follows:
	(a)  The amount of an administrative penalty may not exceed
	$5,000 [$1,000] for each violation. Each day a violation continues
	or occurs may be considered a separate violation for purposes of
	imposing a penalty [if the commission determines that the person
	charged:
	[(1)     engaged in an activity for which a broker or
	salesperson license is required without holding a license; and
	[(2)     was not licensed by the commission as a broker or
	salesperson at any time in the four years preceding the date of the
	violation].
	(c)  The commission by rule shall adopt a schedule of
	administrative penalties based on the criteria listed in Subsection
	(b) for violations subject to an administrative penalty under this
	section to ensure that the amount of a penalty imposed is
	appropriate to the violation.  The rules adopted under this
	subsection must provide authority for the commission to suspend or
	revoke a license in addition to or instead of imposing an
	administrative penalty.
	SECTION 27.  The heading to Section 1101.703, Occupations
	Code, is amended to read as follows:
	Sec. 1101.703.  [REPORT AND] NOTICE OF VIOLATION AND
	PENALTY.
	SECTION 28.  Subsection (a), Section 1101.703, Occupations
	Code, is amended to read as follows:
	(a)  If, after investigation of a possible violation and the
	facts relating to that violation, the administrator determines that
	a violation has occurred, the administrator may issue a notice of
	violation [report] stating:
	(1)  a brief summary of the alleged violation [the
	facts on which the determination is based]; [and]
	(2)  the administrator's recommendation on the
	imposition of the administrative penalty or another disciplinary
	sanction, including a recommendation on the amount of the penalty;
	and
	(3)  that the respondent has the right to a hearing to
	contest the alleged violation, the recommended penalty, or both.
	SECTION 29.  Section 1101.704, Occupations Code, is amended
	to read as follows:
	Sec. 1101.704.  PENALTY TO BE PAID OR HEARING REQUESTED.
	(a)  Not later than the 20th day after the date the person receives
	the notice under Section 1101.703, the person may:
	(1)  accept the administrator's determination,
	including the recommended administrative penalty; or
	(2)  request in writing a hearing on the occurrence of
	the violation, the amount of the penalty, or both [determination].
	(b)  If the person accepts the administrator's
	determination, or fails to respond in a timely manner to the notice,
	the commission by order shall approve the determination and order
	payment of the recommended penalty or impose the recommended
	sanction.
	SECTION 30.  The heading to Section 1101.705, Occupations
	Code, is amended to read as follows:
	Sec. 1101.705.  HEARING; DECISION [BY COMMISSION].
	SECTION 31.  Subsections (a), (b), (c), and (e), Section
	1101.705, Occupations Code, are amended to read as follows:
	(a)  If the person requests a hearing [or fails to timely
	respond to the notice], the administrator shall set a hearing and
	give notice of the hearing to the person.
	(b)  An administrative law judge of the State Office of
	Administrative Hearings [A hearings examiner designated by the
	administrator] shall conduct the hearing. The administrative law
	judge [hearings examiner] shall:
	(1)  make findings of fact and conclusions of law; and
	(2)  promptly issue to the commission a proposal for
	decision regarding the occurrence of the violation and the amount
	of any proposed administrative penalty.
	(c)  Based on the findings of fact, conclusions of law, and
	proposal for decision of the administrative law judge [hearings
	examiner], the commission by order may determine that:
	(1)  a violation occurred and impose an administrative
	penalty; or
	(2)  a violation did not occur.
	(e)  The notice of the commission's order given to the person
	under Chapter 2001, Government Code, must include a statement of
	the person's right to judicial review of the order [The commission
	may authorize the hearings examiner to conduct the hearing and
	enter a final decision].
	SECTION 32.  Section 1101.707, Occupations Code, is amended
	to read as follows:
	Sec. 1101.707.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL.
	(a)  Not later than the 30th day after the date the commission's
	order becomes final, the person shall:
	(1)  pay the administrative penalty; or
	(2)  file a petition for judicial review [with a
	district court in Travis County] contesting the occurrence [fact]
	of the violation, the amount of the penalty, or both.
	(b)  Within the 30-day period prescribed by Subsection (a), a
	person who files a petition for judicial review [acts under
	Subsection (a)(2)] may:
	(1)  stay enforcement of the penalty by:
	(A) [(1)]  paying the penalty to the court
	[administrator] for placement in an escrow account; or
	(B) [(2)]  giving the court [administrator] a
	supersedeas bond in a form approved by the court [administrator]
	that:
	(i) [(A)]  is for the amount of the penalty;
	and
	(ii) [(B)]  is effective until judicial
	review of the order is final; or
	(2)  request the court to stay enforcement by:
	(A) [(3)]  filing with the court [administrator]
	an affidavit of the person stating that the person is financially
	unable to pay the penalty and is financially unable to give the
	supersedeas bond; and
	(B)  giving a copy of the affidavit to the
	administrator by certified mail.
	(c)  If the administrator receives a copy of an affidavit
	under Subsection (b)(2), the administrator may file with the court,
	within five days after the date the copy is received, a contest to
	the affidavit [A person who fails to take action as provided by this
	section waives the right to judicial review of the commission's
	order].
	(d)  The court shall hold a hearing on the facts alleged in
	the affidavit as soon as practicable and shall stay the enforcement
	of the penalty on finding that the alleged facts are true. The
	person who files an affidavit has the burden of proving that the
	person is financially unable to pay the penalty and to give a
	supersedeas bond.
	SECTION 33.  Subchapter O, Chapter 1101, Occupations Code,
	is amended by adding Section 1101.7085 to read as follows:
	Sec. 1101.7085.  DETERMINATION BY COURT. (a)  If the court
	sustains the determination that a violation occurred, the court may
	uphold or reduce the amount of the administrative penalty and order
	the person to pay the full or reduced amount of the penalty.
	(b)  If the court does not sustain the finding that a
	violation occurred, the court shall order that a penalty is not
	owed.
	SECTION 34.  Section 1101.709, Occupations Code, is amended
	to read as follows:
	Sec. 1101.709.  REMITTANCE OF PENALTY AND INTEREST.  (a)  If
	after judicial review the administrative penalty is reduced or is
	not upheld by the court, the court [administrator] shall[:
	[(1)]  remit the appropriate amount, plus accrued
	interest, to the person if the person paid the penalty[; or
	[(2)     execute a release of the bond if the person gave a
	supersedeas bond].
	(b)  The interest [Interest] accrues [under Subsection
	(a)(1)] at the rate charged on loans to depository institutions by
	the New York Federal Reserve Bank.
	(c)  The interest shall be paid for the period beginning on
	the date the penalty is paid and ending on the date the penalty is
	remitted.
	(d)  If the person gave a supersedeas bond and the penalty is
	not upheld by the court, the court shall order, when the court's
	judgment becomes final, the release of the bond.
	(e)  If the person gave a supersedeas bond and the amount of
	the penalty is reduced, the court shall order the release of the
	bond after the person pays the reduced amount.
	SECTION 35.  Subchapter O, Chapter 1101, Occupations Code,
	is amended by adding Section 1101.710 to read as follows:
	Sec. 1101.710.  ADMINISTRATIVE PROCEDURE. A proceeding
	under this subchapter is subject to Chapter 2001, Government Code.
	SECTION 36.  Subchapter P, Chapter 1101, Occupations Code,
	is amended by adding Section 1101.759 to read as follows:
	Sec. 1101.759.  CEASE AND DESIST ORDER.  (a)  If it appears
	to the commission that a person is violating this chapter or Chapter
	1102 or a rule adopted under this chapter or Chapter 1102, the
	commission, after notice and opportunity for a hearing, may issue a
	cease and desist order prohibiting the person from engaging in the
	activity.
	(b)  A violation of an order under this section constitutes
	grounds for imposing an administrative penalty under Subchapter O.
	SECTION 37.  Subsection (a), Section 1102.051, Occupations
	Code, is amended to read as follows:
	(a)  The Texas Real Estate Inspector Committee is an advisory
	committee [consists of nine members] appointed by the commission.
	SECTION 38.  Section 1102.114, Occupations Code, is amended
	to read as follows:
	Sec. 1102.114.  ISSUANCE OF LICENSE.  The commission shall
	issue the appropriate license to an applicant who:
	(1)  meets the required qualifications; [and]
	(2)  pays the fee required by Section 1102.352(a); and
	(3)  offers proof that the applicant carries liability
	insurance with a minimum limit of $100,000 per occurrence to
	protect the public against a violation of Subchapter G.
	SECTION 39.  Subsection (a), Section 1102.203, Occupations
	Code, is amended to read as follows:
	(a)  A person may renew an unexpired license by paying the
	required renewal fee to the commission before the expiration date
	of the license and providing proof of liability insurance as
	required by Section 1102.114(3).
	SECTION 40.  Section 1102.205, Occupations Code, is amended
	to read as follows:
	Sec. 1102.205.  CONTINUING EDUCATION REQUIREMENTS.
	(a)  The commission shall approve, recognize, prepare, or
	administer a continuing education program for inspectors.
	(b)  As a prerequisite for renewal of a real estate inspector
	license, professional inspector license, or apprentice inspector
	license, the inspector must participate in the continuing education
	program and submit evidence satisfactory to the commission of
	successful completion of at least 16 classroom hours of core real
	estate inspection courses or continuing education courses for each
	year of the license period preceding the renewal.
	SECTION 41.  Section 1102.251, Occupations Code, is amended
	to read as follows:
	Sec. 1102.251.  [AMOUNT OF] FEES.  The commission shall
	charge and collect reasonable and necessary fees to cover the cost
	of administering this chapter for [as follows]:
	(1)  [for] filing an original application for an
	apprentice inspector license[, not more than $75];
	(2)  [for] filing an original application for a real
	estate inspector license[, not more than $125];
	(3)  [for] filing an original application for a
	professional inspector license[, not more than $150];
	(4)  [for] renewal of an apprentice inspector license[,
	not more than $125];
	(5)  [for] renewal of a real estate inspector license[,
	not more than $175];
	(6)  [for] renewal of a professional inspector
	license[, not more than $200];
	(7)  [for] a license examination[, not more than $100];
	(8)  [for] a request to change a place of business or to
	replace a lost or destroyed license[, not more than $20]; and
	(9)  [for] filing a request for issuance of a license
	because of a change of name, return to active status, or change in
	sponsoring professional inspector[, not more than $20].
	SECTION 42.  The heading to Subchapter I, Chapter 1102,
	Occupations Code, is amended to read as follows:
	SUBCHAPTER I.  DISCIPLINARY PROCEEDINGS, PENALTIES, AND
	ENFORCEMENT PROVISIONS
	SECTION 43.  Subchapter I, Chapter 1102, Occupations Code,
	is amended by adding Section 1102.408 to read as follows:
	Sec. 1102.408.  TEMPORARY SUSPENSION.  (a)  The presiding
	officer of the commission shall appoint a disciplinary panel
	consisting of three commission members to determine whether a
	person's license to practice under this chapter should be
	temporarily suspended.
	(b)  If the disciplinary panel determines from the
	information presented to the panel that a person licensed to
	practice under this chapter would, by the person's continued
	practice, constitute a continuing threat to the public welfare, the
	panel shall temporarily suspend the license of that person.
	(c)  A license may be suspended under this section without
	notice or hearing on the complaint if:
	(1)  institution of proceedings for a hearing before
	the 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.
	(d)  Notwithstanding Chapter 551, Government Code, the
	disciplinary panel may hold a meeting by telephone conference call
	if immediate action is required and convening the panel at one
	location is inconvenient for any member of the panel.
	SECTION 44.  Subsection (a), Section 1103.101, Occupations
	Code, is amended to read as follows:
	(a)  The administrator of the Texas Real Estate Commission
	shall serve as [board shall employ a] commissioner.
	SECTION 45.  Subsection (a), Section 1103.103, Occupations
	Code, is amended to read as follows:
	(a)  The administrator of the Texas Real Estate Commission
	[board] shall determine the salaries of the [commissioner,]
	officers[,] and employees of the board.
	SECTION 46.  Section 1103.104, Occupations Code, is amended
	to read as follows:
	Sec. 1103.104.  DUTIES OF COMMISSIONER.  The commissioner
	shall:
	(1)  disseminate information;
	(2)  administer rules adopted by the board under this
	chapter;
	(3)  review each application for a certificate or
	license and make a recommendation for final action to the board;
	(4)  review and make recommendations to the board
	regarding the adoption of rules relating to:
	(A)  the examination required by Subchapter F;
	(B)  education and experience requirements for
	issuance of certificates and licenses;
	(C)  continuing education for a certified or
	licensed appraiser;
	(D)  standards of professional practice and
	ethics for a certified or licensed appraiser;
	(E)  standards for a real estate appraisal
	performed by a certified or licensed appraiser; and
	(F)  the fees established by the board under
	Section 1103.156;
	(5)  collect fees established by the board; [and]
	(6)  manage the staff and employees of the board; and
	(7)  perform any other duty prescribed by the board
	under this chapter.
	SECTION 47.  Section 1103.504, Occupations Code, is amended
	to read as follows:
	Sec. 1103.504.  ATTORNEY GENERAL REPRESENTATION.  The
	attorney general [shall provide legal representation for the public
	interest in all proceedings before the board and] may not represent
	the board in a contested case before the State Office of
	Administrative Hearings [board].
	SECTION 48.  Subsections (a) and (d), Section 1103.508,
	Occupations Code, are amended to read as follows:
	(a)  A contested case hearing shall [may] be conducted before
	an administrative law judge of the State Office of Administrative
	Hearings [a majority of the board members].
	(d)  The administrative law judge [designated presiding
	officer] shall control the proceedings and may:
	(1)  administer oaths;
	(2)  admit or exclude testimony or other evidence; and
	(3)  rule on all motions and objections.
	SECTION 49.  Subsection (a), Section 1103.510, Occupations
	Code, is amended to read as follows:
	(a)  If an appraiser or appraiser trainee receives proper
	notice of a contested case hearing but does not appear in person at
	the hearing, the administrative law judge [board and presiding
	officer] may conduct the hearing or enter an order, as the judge
	[board] determines appropriate.
	SECTION 50.  Subsection (c), Section 1103.512, Occupations
	Code, is amended to read as follows:
	(c)  Before testimony may be presented, the record must:
	(1)  show the identities of:
	(A)  any [the] board members present;
	(B)  the administrative law judge [presiding
	officer]; and
	(C)  the parties and their representatives; and
	(2)  state that all testimony is being recorded.
	SECTION 51.  Section 1103.513, Occupations Code, is amended
	to read as follows:
	Sec. 1103.513.  ORDER OF PROCEEDINGS.  A contested case
	hearing shall be conducted in the following order, subject to
	modification at the discretion of the administrative law judge
	[board]:
	(1)  the administrative law judge [presiding officer]
	shall read a summary of the charges and answers to the charges and
	other responsive pleadings filed by the appraiser or appraiser
	trainee before the hearing;
	(2)  the attorney representing the board shall make a
	brief opening statement, including a summary of the charges and a
	list of the witnesses and documents to support the charges;
	(3)  the appraiser or appraiser trainee may make an
	opening statement, including the names of any witnesses the
	appraiser or appraiser trainee may call;
	(4)  the attorney representing the board shall present
	evidence, concluding with a summary of the evidence for the state;
	(5)  the appraiser or appraiser trainee shall present
	evidence;
	(6)  the attorney representing the board may present
	rebuttal evidence;
	(7)  the appraiser or appraiser trainee may present
	rebuttal evidence; and
	(8)  the closing arguments shall be made in the
	following order:
	(A)  the attorney representing the board;
	(B)  the appraiser or appraiser trainee; and
	(C)  the attorney representing the board on
	rebuttal.
	SECTION 52.  Section 1103.516, Occupations Code, is amended
	to read as follows:
	Sec. 1103.516.  DIRECT EXAMINATION.  In a contested case
	hearing, the administrative law judge [presiding officer] may
	conduct a direct examination of a witness at any stage of the
	witness's testimony.
	SECTION 53.  Section 1103.518, Occupations Code, is amended
	to read as follows:
	Sec. 1103.518.  [BOARD] ACTION AFTER HEARING.  On conclusion
	of a contested case hearing and on submission of all written
	responses allowed under Section 1103.515, the administrative law
	judge shall [board]:
	(1)  [shall] make findings of fact and conclusions of
	law; and
	(2)  issue to the board a proposal for decision that the
	board [may] take one or more of the following actions:
	(A)  dismiss the charges, including issuing an
	order declaring that the case file is confidential;
	(B)  suspend or revoke the appraiser's
	certificate or license or the appraiser trainee's approval;
	(C)  impose a period of probation with or without
	conditions;
	(D)  require the appraiser to submit to
	reexamination for a certificate or license;
	(E)  require the appraiser or appraiser trainee to
	participate in additional professional education or continuing
	education;
	(F)  issue a public or private reprimand or a
	warning;
	(G)  issue a consent order; or
	(H)  impose an administrative penalty as
	prescribed by Section 1103.552.
	SECTION 54.  Subsection (c), Section 1103.520, Occupations
	Code, is amended to read as follows:
	(c)  On rehearing, the administrative law judge [board]
	shall consider facts not presented in the original hearing if:
	(1)  the facts arose after the original hearing was
	concluded;
	(2)  the party offering the evidence could not
	reasonably have provided the evidence at the original hearing; or
	(3)  the party offering the evidence was misled by a
	party regarding the necessity for offering the evidence at the
	original hearing.
	SECTION 55.  Subsection (a), Section 1103.521, Occupations
	Code, is amended to read as follows:
	(a)  The administrative law judge [board] shall file the
	judge's [its] final decision in a contested case hearing with the
	commissioner.
	SECTION 56.  Subsections (a) and (b), Section 1303.052,
	Occupations Code, are amended to read as follows:
	(a)  A residential service company must pay to the commission
	a fee for filing an application for a license or an amendment to the
	application[, not to exceed $3,500].
	(b)  A residential service company shall pay to the
	commission a fee for:
	(1)  filing an annual report under Section 1303.202[,
	not to exceed $3,500]; and
	(2)  any other filing required by this chapter[, not to
	exceed $500].
	SECTION 57.  Subchapter H, Chapter 1303, Occupations Code,
	is amended by adding Sections 1303.355 and 1303.356 to read as
	follows:
	Sec. 1303.355.  ADMINISTRATIVE PENALTY. (a)  The
	commission may impose an administrative penalty as provided by
	Subchapter O, Chapter 1101, on a person who violates this chapter or
	a rule adopted or order issued by the commission under this chapter.
	(b)  The amount of an administrative penalty may not exceed
	$5,000 for each violation. Each day a violation continues or occurs
	may be considered a separate violation for purposes of imposing a
	penalty.
	(c)  In determining the amount of the penalty, the
	administrator shall consider:
	(1)  the seriousness of the violation, including the
	nature, circumstances, extent, and gravity of the violation;
	(2)  the economic harm caused by the violation;
	(3)  the history of previous violations;
	(4)  the amount necessary to deter a future violation;
	(5)  efforts to correct the violation; and
	(6)  any other matter that justice may require.
	(d)  The commission by rule shall adopt a schedule of
	administrative penalties based on the criteria listed in Subsection
	(c) for violations subject to an administrative penalty under this
	section to ensure that the amount of a penalty imposed is
	appropriate to the violation.
	Sec. 1303.356.  TEMPORARY SUSPENSION.  (a)  The presiding
	officer of the commission shall appoint a disciplinary panel
	consisting of three commission members to determine whether a
	person's license to practice under this chapter should be
	temporarily suspended.
	(b)  If the disciplinary panel determines from the
	information presented to the panel that a person licensed to
	practice under this chapter would, by the person's continued
	practice, constitute a continuing threat to the public welfare, the
	panel shall temporarily suspend the license of that person.
	(c)  A license may be suspended under this section without
	notice or hearing on the complaint if:
	(1)  institution of proceedings for a hearing before
	the 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.
	(d)  Notwithstanding Chapter 551, Government Code, the
	disciplinary panel may hold a meeting by telephone conference call
	if immediate action is required and convening the panel at one
	location is inconvenient for any member of the panel.
	SECTION 58.  Subchapter C, Chapter 221, Property Code, is
	amended by adding Section 221.027 to read as follows:
	Sec. 221.027.  TEMPORARY SUSPENSION.  (a)  The presiding
	officer of the commission shall appoint a disciplinary panel
	consisting of three commission members to determine whether the
	registration for a timeshare plan under this chapter should be
	temporarily suspended.
	(b)  If the disciplinary panel determines from the
	information presented to the panel that a timeshare plan registered
	under this chapter would, by the continued disposition of the
	timeshare property, constitute a continuing threat to the public
	welfare, the panel shall temporarily suspend the registration of
	the timeshare plan.
	(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 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.
	(d)  Notwithstanding Chapter 551, Government Code, the
	disciplinary panel may hold a meeting by telephone conference call
	if immediate action is required and convening the panel at one
	location is inconvenient for any member of the panel.
	SECTION 59.  The following provisions of the Occupations
	Code are repealed:
	(1)  Subsection (g), Section 1101.204;
	(2)  Subsections (c), (d), and (e), Section 1101.364;
	(3)  Subsections (b), (c), and (d), Section 1101.657;
	(4)  Subsection (b), Section 1101.703;
	(5)  Subsections (b), (c), and (d), Section 1102.051;
	(6)  Section 1102.052;
	(7)  Section 1102.053;
	(8)  Section 1102.054;
	(9)  Section 1102.055;
	(10)  Section 1102.056;
	(11)  Section 1102.057;
	(12)  Subsection (a), Section 1102.058;
	(13)  Section 1102.059;
	(14)  Section 1102.061;
	(15)  Section 1102.062; and
	(16)  Subsection (c), Section 1103.508.
	SECTION 60.  (a)  Not later than January 1, 2008, the Texas
	Real Estate Commission shall:
	(1)  adopt the policies required by Sections 1101.159
	and 1101.160, Occupations Code, as added by this Act; and
	(2)  adopt the rules required by Chapter 1101,
	Occupations Code, as amended by this Act.
	(b)  As soon as practicable after the effective date of this
	Act, the administrator of the Texas Real Estate Commission shall
	assume the administrative and management duties over the Texas
	Appraiser Licensing and Certification Board, as required by
	Sections 1103.101 and 1103.104, Occupations Code, as amended by
	this Act.
	SECTION 61.  (a)  The changes in law made by this Act to
	Section 1101.053, Occupations Code, regarding the prohibitions on
	or qualifications of members of the Texas Real Estate Commission do
	not affect the entitlement of a member serving on the commission
	immediately before September 1, 2007, to continue to serve and
	function as a member of the commission for the remainder of the
	member's term. The changes in law made by that section apply only
	to a member appointed on or after September 1, 2007.
	(b)  The changes in law made by this Act regarding the
	filing, investigation, or resolution of a complaint under Chapter
	1101, Occupations Code, as amended by this Act, apply only to a
	complaint filed with the Texas Real Estate Commission on or after
	the effective date of this Act. A complaint filed before the
	effective date of this Act is governed by the law as it existed
	immediately before that date, and the former law is continued in
	effect for that purpose.
	(c)  The change in law made by this Act regarding conduct
	that is grounds for imposition of a disciplinary sanction,
	including a refund, temporary license suspension, or cease and
	desist order, applies only to conduct that occurs on or after the
	effective date of this Act. Conduct that occurs before the
	effective date of this Act is governed by the law in effect on the
	date the conduct occurred, and the former law is continued in effect
	for that purpose.
	(d)  The changes in law made by this Act regarding the
	procedure for an administrative penalty apply only to a proceeding
	commenced on or after the effective date of this Act. A proceeding
	commenced before the effective date of this Act is governed by the
	law in effect on the date the proceeding commenced, and the former
	law is continued in effect for that purpose.
	(e)  The change in law made by this Act regarding the renewal
	of an expired license applies only to a license that expires on or
	after the effective date of this Act. A license that expires before
	the effective date of this Act is governed by the law in effect on
	the date the license expired, and the former law is continued in
	effect for that purpose.
	(f)  The change in law made by this Act regarding
	accreditation standards for educational programs under Chapter
	1101, Occupations Code, as amended by this Act, applies only to an
	accreditation granted or renewed on or after September 1, 2009. An
	educational program renewing an accreditation on or after the
	effective date of this Act but before September 1, 2009, should
	strive to meet the new accreditation standards under Chapter 1101,
	Occupations Code, as amended by this Act, but an accreditation
	granted or renewed before September 1, 2009, is governed by the law
	in effect on the date the accreditation expired, and the former law
	is continued in effect for that purpose.
	(g)  The change in law made by this Act to the authority of
	the Texas Real Estate Inspector Committee to develop and recommend
	rules under Chapter 1102, Occupations Code, as amended by this Act,
	applies only to a rule proposed for adoption on or after the
	effective date of this Act. A rule proposed for adoption before the
	effective date of this Act is governed by the law in effect on the
	date the rule was proposed for adoption, and the former law is
	continued in effect for that purpose.
	SECTION 62.  This Act takes effect September 1, 2007.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 914 passed the Senate on
	April 12, 2007, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendments on May 21, 2007, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 914 passed the House, with
	amendments, on May 17, 2007, by the following vote: Yeas 145,
	Nays 0, one present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor