HBA-ATS H.B. 1521 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1521
By: Siebert
Business & Industry
7/7/1999
Enrolled



BACKGROUND AND PURPOSE 

Numerous penalty provisions regulating the behavior of real property
professionals, such as land surveyors, appraisers, realtors, and timeshare
operators, have been enacted in different legislative sessions.  For
example, the penalty provisions regulating realtors, enacted in 1963,
remain unchanged.  Additionally, laws providing penalties for the unlawful
filing of a plat or replat of a subdivision have remained unchanged for
decades, while the penalty provisions for land surveyors, appraisers, and
timeshare operators were enacted more recently.  These differences in the
time of enactment have resulted in a lack of uniformity and consistency
among the penalty provisions, and older penalty provisions have not taken
inflation into account. 

H.B. 1521 increases the minimum and maximum administrative and civil fines
imposed upon land surveyors, appraisers, timeshare operators, and realtors.
In addition, this bill increases the penalty for a violation of The Real
Estate License Act from a misdemeanor punishable by a fine of not more than
$500, or by imprisonment in a county jail for not more than one year, to a
Class A misdemeanor, to make it consistent with other professions'
licensing statutes. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 23A(b), Article 5282c, V.T.C.S. (Professional
Land Surveying Practices Act), to increase from $1,000 to $1,500 the
maximum amount of the administrative penalty assessed by the Texas Board of
Professional Land Surveying (board) for each violation of a provision of
this Act or a rule or order adopted by the board under this Act. 

SECTION 2.  Amends Section 23B, Article 5282c, V.T.C.S. (Professional Land
Surveying Practices Act), as follows: 

(a) Creates this subsection from existing text.  Makes a conforming change.

(b) Makes a nonsubstantive change.

SECTION 3.  Amends Article 6573a.1, V.T.C.S., as follows:

(a) Creates this subsection from existing text.  Provides that a person
commits an offense if the person wilfully violates or fails to comply with
any of the provisions of The Real Estate License Act of Texas or any order
of the Texas Real Estate Commission (commission) authorized by The  Real
Estate License Act.  Makes nonsubstantive changes. 

(b) Creates this subsection from existing text.  Provides that an offense
under this article is a Class A misdemeanor, rather than that a person who
commits an offense is guilty of a misdemeanor punishable by a fine of not
more than $500, by imprisonment in a county jail for not more than one
year, or by both such fine and imprisonment. 

 SECTION 4.  Amends Section 12(j), Article 6573a.2, V.T.C.S. (Texas
Appraiser Licensing and Certification Act), to increase from $500 to $1,000
the minimum amount of the civil penalty for which a certified or licensed
appraiser who files a frivolous complaint against another certified or
licensed appraiser is liable. 

SECTION 5.  Amends Section 12A(j), Article 6573a.2, V.T.C.S. (Texas
Appraiser Licensing and Certification Act), to increase from $1,000 to
$1,500 the maximum administrative penalty imposed by the Texas Appraiser
Licensing and Certification Board (board) for each violation of the rules
of professional conduct adopted by the board. 

SECTION 6.  Amends Section 22, Article 6573b, V.T.C.S. (Residential Service
Company Act), as follows: 

(a) Authorizes the commission to bring an action in the name of the state
in a district court of Travis County, Texas, to restrain or otherwise
enjoin a service company from violating the Residential Service Company Act
(Service Company Act) or a rule, rather than a rule or regulation, issued
under the Service Company Act if it appears to the commission that the
Service Company Act or a rule is being or has been violated and if bringing
an action would be in the public interest.  Vests in the commission the
exclusive authority to bring an action. Makes nonsubstantive changes. 

(b) Requires a court to grant, without bond, injunctive relief warranted by
the facts upon application and a finding that a service company is
violating or has violated the Service Company Act or a rule issued under
the Service Company Act. 

SECTION 7.  Amends Article 6573b, V.T.C.S. (Residential Service Company
Act), by amending Section 23 and adding Section 23A, as follows: 

Sec. 23.  CIVIL PENALTY.  (a) Authorizes the commission to bring an action
for a civil penalty for a violation of the Service Company Act.  Prohibits
the penalty from exceeding $2,500 for each violation or $50,000 in the
aggregate for all violations of a similar nature. Deletes text classifying
a violation of the Service Company Act as a  deceptive trade practice,
actionable by any person for $1,000 as a civil penalty.  Makes a
nonsubstantive change. 

(b) Provides that violations are of a similar nature if the violations
consist of the same or a similar course of conduct, action, or practice,
regardless of the number of times the conduct, act, or practice determined
to be a violation of the Service Company Act occurred.  

Sec. 23A.  New title: ACTION UNDER DECEPTIVE TRADE PRACTICES ACT.  Creates
this section from existing text.  Provides that a violation of the Service
Company Act is actionable by a consumer as a deceptive trade practice under
the Business & Commerce Code.  Deletes text providing that any plaintiff
who shows a violation of the Service Company Act shall recover court costs
and attorney's fees that are reasonable in relation to the amount of work
expended. 

SECTION 8.  Amends Section 12.002(e), Property Code, to increase from $500
to $1,000 the maximum fine for filing a plat or replat of a subdivision
unless it is lawfully approved and unless the plat or replat has attached
to it the required documents, if applicable, or for using a subdivision's
description in a conveyance instrument that is delivered to a purchaser
unless the plat or replat of the subdivision is approved and is filed and
unless the plat or replat has attached to it the required documents, if
applicable.   

SECTION 9.  Amends Section 221.073(c), Property Code, to make a
nonsubstantive change. 

SECTION 10.  Amends Sections 221.075(b) and (c), Property Code, to increase
from $1,000 to $1,500 the maximum civil penalty imposed on a timeshare
operator for each day after the first 10 days that an annual timeshare fee
and expense statement is late, and to increase from $25,000 to $30,000 the
maximum amount of the civil penalty for which a managing entity is
responsible. 
 
SECTION 11.  (a) Provides that the changes in law made by Sections 1, 2, 4,
5, 7, and 10 of this Act apply to a violation committed before, on, or
after the effective date of this Act. 

(b) Makes application of Sections 3, 6, 8, and 9 prospective.

SECTION 12.  Emergency clause.
              Effective date: upon passage.