1-1                                   AN ACT
 1-2     relating to the adoption of a nonsubstantive revision of statutes
 1-3     relating to the licensing and regulation of certain professions and
 1-4     business practices, including conforming amendments, repeals, and
 1-5     penalties.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  ADOPTION OF ENGINEERING, ARCHITECTURE, AND LAND
 1-8     SURVEYING TITLE. The Occupations Code is amended by adding Title 6
 1-9     to read as follows:
1-10           TITLE 6.  REGULATION OF ENGINEERING, ARCHITECTURE, LAND
1-11                      SURVEYING, AND RELATED PRACTICES
1-12        SUBTITLE A.  REGULATION OF ENGINEERING AND RELATED PRACTICES
1-13     CHAPTER 1001.  ENGINEERS
1-14                 (Chapters 1002-1050 reserved for expansion)
1-15        SUBTITLE B.  REGULATION OF ARCHITECTURE AND RELATED PRACTICES
1-16     CHAPTER 1051.  ARCHITECTS
1-17     CHAPTER 1052.  LANDSCAPE ARCHITECTS
1-18     CHAPTER 1053.  INTERIOR DESIGNERS
1-19                 (Chapters 1054-1070 reserved for expansion)
1-20       SUBTITLE C.  REGULATION OF LAND SURVEYING AND RELATED PRACTICES
1-21     CHAPTER 1071.  LAND SURVEYORS
1-22           TITLE 6.  REGULATION OF ENGINEERING, ARCHITECTURE, LAND
1-23                      SURVEYING, AND RELATED PRACTICES
1-24        SUBTITLE A.  REGULATION OF ENGINEERING AND RELATED PRACTICES
 2-1                          CHAPTER 1001.  ENGINEERS
 2-2                      SUBCHAPTER A.  GENERAL PROVISIONS
 2-3     Sec. 1001.001.  SHORT TITLE 
 2-4     Sec. 1001.002.  DEFINITIONS 
 2-5     Sec. 1001.003.  PRACTICE OF ENGINEERING 
 2-6     Sec. 1001.004.  LEGISLATIVE PURPOSE AND INTENT; LIBERAL
 2-7                       CONSTRUCTION OF CHAPTER 
 2-8     Sec. 1001.005.  APPLICATION OF SUNSET ACT 
 2-9             (Sections 1001.006-1001.050 reserved for expansion)
2-10                          SUBCHAPTER B.  EXEMPTIONS
2-11     Sec. 1001.051.  LIMITATION ON EXEMPTION 
2-12     Sec. 1001.052.  EMPLOYEE OF LICENSE HOLDER 
2-13     Sec. 1001.053.  PUBLIC WORKS 
2-14     Sec. 1001.054.  FEDERAL OFFICER OR EMPLOYEE 
2-15     Sec. 1001.055.  MECHANICAL, ELECTRICAL, OR OTHER EQUIPMENT 
2-16     Sec. 1001.056.  CONSTRUCTION OR REPAIR OF AND PLANS
2-17                       FOR CERTAIN BUILDINGS 
2-18     Sec. 1001.057.  EMPLOYEE OF PRIVATE BUSINESS ENTITY OR
2-19                       AFFILIATE 
2-20     Sec. 1001.058.  EMPLOYEE OF CERTAIN UTILITIES OR AFFILIATES 
2-21     Sec. 1001.059.  QUALIFIED SCIENTISTS 
2-22     Sec. 1001.060.  SOIL AND WATER CONSERVATION 
2-23     Sec. 1001.061.  TELEPHONE COMPANIES 
2-24     Sec. 1001.062.  CERTAIN EMPLOYEES WORKING FROM ENGINEER'S
2-25                       PLANS 
2-26     Sec. 1001.063.  ARCHITECTS, LANDSCAPE ARCHITECTS, AND
2-27                       INTERIOR DESIGNERS 
 3-1     Sec. 1001.064.  STATE LAND SURVEYORS 
 3-2             (Sections 1001.065-1001.100 reserved for expansion)
 3-3            SUBCHAPTER C.  TEXAS BOARD OF PROFESSIONAL ENGINEERS
 3-4     Sec. 1001.101.  BOARD MEMBERSHIP 
 3-5     Sec. 1001.102.  MEMBER ELIGIBILITY 
 3-6     Sec. 1001.103.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS 
 3-7     Sec. 1001.104.  TERMS; VACANCY 
 3-8     Sec. 1001.105.  PARTICIPATION OF PUBLIC MEMBERS 
 3-9     Sec. 1001.106.  GROUNDS FOR REMOVAL 
3-10     Sec. 1001.107.  PER DIEM; REIMBURSEMENT 
3-11     Sec. 1001.108.  OFFICERS 
3-12     Sec. 1001.109.  BOARD SECRETARY'S DUTIES AND SALARY 
3-13     Sec. 1001.110.  MEETINGS 
3-14     Sec. 1001.111.  FILING OF OATH 
3-15             (Sections 1001.112-1001.150 reserved for expansion)
3-16                       SUBCHAPTER D.  BOARD PERSONNEL
3-17     Sec. 1001.151.  PERSONNEL 
3-18     Sec. 1001.152.  CAREER LADDER PROGRAM; PERFORMANCE
3-19                       EVALUATIONS 
3-20             (Sections 1001.153-1001.200 reserved for expansion)
3-21                   SUBCHAPTER E.  BOARD POWERS AND DUTIES
3-22     Sec. 1001.201.  GENERAL POWERS AND DUTIES 
3-23     Sec. 1001.202.  RULES 
3-24     Sec. 1001.203.  RULES RESTRICTING ADVERTISING OR
3-25                       COMPETITIVE BIDDING 
3-26     Sec. 1001.204.  FEES 
3-27     Sec. 1001.205.  REDUCED FEES:  ELDERLY, DISABLED,
 4-1                       INACTIVE STATUS 
 4-2     Sec. 1001.206.  FEE INCREASE 
 4-3     Sec. 1001.207.  STANDARDS OF CONDUCT AND ETHICS 
 4-4     Sec. 1001.208.  ROSTER OF ENGINEERS 
 4-5     Sec. 1001.209.  REGISTER OF APPLICANTS 
 4-6     Sec. 1001.210.  CONTINUING EDUCATION PROGRAMS 
 4-7     Sec. 1001.211.  RECORDS 
 4-8     Sec. 1001.212.  CONFIDENTIALITY OF CERTAIN INFORMATION
 4-9                       RELATED TO LICENSE APPLICATION 
4-10     Sec. 1001.213.  SUBPOENA 
4-11             (Sections 1001.214-1001.250 reserved for expansion)
4-12              SUBCHAPTER F.  CONSUMER INTEREST INFORMATION AND
4-13                            COMPLAINT PROCEDURES
4-14     Sec. 1001.251.  CONSUMER INTEREST INFORMATION 
4-15     Sec. 1001.252.  COMPLAINTS 
4-16     Sec. 1001.253.  COMPLAINT INFORMATION 
4-17             (Sections 1001.254-1001.300 reserved for expansion)
4-18                     SUBCHAPTER G.  LICENSE REQUIREMENTS
4-19     Sec. 1001.301.  LICENSE REQUIRED 
4-20     Sec. 1001.302.  LICENSE ELIGIBILITY REQUIREMENTS 
4-21     Sec. 1001.303.  APPLICATION FOR LICENSE 
4-22     Sec. 1001.304.  EXAMINATION 
4-23     Sec. 1001.305.  WAIVER OF EXAMINATION REQUIREMENT 
4-24     Sec. 1001.306.  EXAMINATION RESULTS 
4-25     Sec. 1001.307.  REEXAMINATION 
4-26     Sec. 1001.308.  ISSUANCE OF LICENSE 
4-27     Sec. 1001.309.  CERTIFICATION OR ENROLLMENT OF
 5-1                       ENGINEERS-IN-TRAINING 
 5-2     Sec. 1001.310.  TEMPORARY OR PROVISIONAL LICENSE 
 5-3     Sec. 1001.311.  APPLICATION BY NONRESIDENT 
 5-4     Sec. 1001.312.  REPLACEMENT LICENSE 
 5-5             (Sections 1001.313-1001.350 reserved for expansion)
 5-6                       SUBCHAPTER H.  LICENSE RENEWAL
 5-7     Sec. 1001.351.  ANNUAL RENEWAL REQUIRED 
 5-8     Sec. 1001.352.  NOTICE OF LICENSE EXPIRATION 
 5-9     Sec. 1001.353.  PROCEDURE FOR RENEWAL 
5-10             (Sections 1001.354-1001.400 reserved for expansion)
5-11                   SUBCHAPTER I.  PRACTICE OF ENGINEERING
5-12     Sec. 1001.401.  USE OF SEAL 
5-13     Sec. 1001.402.  ENFORCEMENT BY CERTAIN PUBLIC OFFICIALS 
5-14     Sec. 1001.403.  PROFESSIONAL IDENTIFICATION 
5-15     Sec. 1001.404.  ELIGIBILITY FOR APPOINTED STATE
5-16                       POSITION 
5-17     Sec. 1001.405.  PRACTICE BY BUSINESS ENTITY; REGISTRATION 
5-18     Sec. 1001.406.  GRADUATE ENGINEERS 
5-19     Sec. 1001.407.  CONSTRUCTION OF CERTAIN PUBLIC WORKS 
5-20             (Sections 1001.408-1001.450 reserved for expansion)
5-21                   SUBCHAPTER J.  PROHIBITED PRACTICES AND
5-22                           DISCIPLINARY PROCEDURES
5-23     Sec. 1001.451.  DISCIPLINARY POWERS OF BOARD 
5-24     Sec. 1001.452.  GROUNDS FOR DISCIPLINARY ACTION 
5-25     Sec. 1001.453.  REVIEW OF LICENSE HOLDER'S STATUS 
5-26     Sec. 1001.454.  RIGHT TO HEARING 
5-27     Sec. 1001.455.  APPEAL OF LICENSE REVOCATION 
 6-1     Sec. 1001.456.  REISSUANCE OF REVOKED LICENSE 
 6-2             (Sections 1001.457-1001.500 reserved for expansion)
 6-3                    SUBCHAPTER K.  ADMINISTRATIVE PENALTY
 6-4     Sec. 1001.501.  IMPOSITION OF ADMINISTRATIVE PENALTY 
 6-5     Sec. 1001.502.  AMOUNT OF ADMINISTRATIVE PENALTY 
 6-6     Sec. 1001.503.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL 
 6-7     Sec. 1001.504.  COLLECTION OF PENALTY 
 6-8     Sec. 1001.505.  DETERMINATION BY COURT 
 6-9     Sec. 1001.506.  REMITTANCE OF PENALTY AND INTEREST 
6-10     Sec. 1001.507.  DISPOSITION OF PENALTY 
6-11     Sec. 1001.508.  ADMINISTRATIVE PROCEDURE 
6-12             (Sections 1001.509-1001.550 reserved for expansion)
6-13                     SUBCHAPTER L.  OTHER PENALTIES AND
6-14                           ENFORCEMENT PROVISIONS
6-15     Sec. 1001.551.  INJUNCTION 
6-16     Sec. 1001.552.  CRIMINAL PENALTY 
6-17     Sec. 1001.553.  REPORT OF VIOLATION 
6-18     Sec. 1001.554.  PRESENTATION OF COMPLAINTS BY BOARD;
6-19                       ASSISTANCE AT TRIAL 
6-20     Sec. 1001.555.  ATTORNEY GENERAL AS LEGAL ADVISOR;
6-21                       REPRESENTATION BY ATTORNEY GENERAL 
6-22     Sec. 1001.556.  APPEAL BOND 
6-23                          CHAPTER 1001.  ENGINEERS
6-24                      SUBCHAPTER A.  GENERAL PROVISIONS
6-25           Sec. 1001.001.  SHORT TITLE. This chapter may be cited as The
6-26     Texas Engineering Practice Act.  (V.A.C.S. Art. 3271a, Sec. 1.)
6-27           Sec. 1001.002.  DEFINITIONS. In this chapter:
 7-1                 (1)  "Board" means the Texas Board of Professional
 7-2     Engineers.
 7-3                 (2)  "Engineer" means a person licensed to engage in
 7-4     the practice of engineering in this state.  (V.A.C.S. Art. 3271a,
 7-5     Secs. 2(1), (3).)
 7-6           Sec. 1001.003.  PRACTICE OF ENGINEERING. (a)  In this
 7-7     section:
 7-8                 (1)  "Design coordination" includes the review and
 7-9     coordination of technical submissions prepared by others, including
7-10     the work of other professionals working with or under the direction
7-11     of an engineer with professional regard for the ability of each
7-12     professional involved in a multidisciplinary effort.
7-13                 (2)  "Engineering survey" includes any survey activity
7-14     required to support the sound conception, planning, design,
7-15     construction, maintenance, or operation of an engineered project.
7-16     The term does not include the surveying of real property or other
7-17     activity regulated under Chapter 1071.
7-18           (b)  In this chapter, "practice of engineering" means the
7-19     performance of or an offer or attempt to perform any public or
7-20     private service or creative work, the adequate performance of which
7-21     requires engineering education, training, and experience in
7-22     applying special knowledge or judgment of the mathematical,
7-23     physical, or engineering sciences to that service or creative work.
7-24           (c)  The practice of engineering includes:
7-25                 (1)  consultation, investigation, evaluation, analysis,
7-26     planning, engineering for program management, providing an expert
7-27     engineering opinion or testimony, engineering for testing or
 8-1     evaluating materials for construction or other engineering use, and
 8-2     mapping;
 8-3                 (2)  design, conceptual design, or conceptual design
 8-4     coordination of engineering works or systems;
 8-5                 (3)  development or optimization of plans and
 8-6     specifications for engineering works or systems;
 8-7                 (4)  planning the use or alteration of land or water or
 8-8     the design or analysis of works or systems for the use or
 8-9     alteration of land or water;
8-10                 (5)  teaching an advanced engineering subject;
8-11                 (6)  responsible charge of engineering teaching or the
8-12     teaching of engineering;
8-13                 (7)  performing an engineering survey or study;
8-14                 (8)  engineering for construction, alteration, or
8-15     repair of real property;
8-16                 (9)  engineering for preparation of an operating or
8-17     maintenance manual;
8-18                 (10)  engineering for review of the construction or
8-19     installation of engineered works to monitor compliance with
8-20     drawings or specifications;
8-21                 (11)  a service, design, analysis, or other work
8-22     performed for a public or private entity in connection with a
8-23     utility, structure, building, machine, equipment, process, system,
8-24     work, project, or industrial or consumer product or equipment of a
8-25     mechanical, electrical, electronic, chemical, hydraulic, pneumatic,
8-26     geotechnical, or thermal nature; or
8-27                 (12)  any other professional service necessary for the
 9-1     planning, progress, or completion of an engineering service.
 9-2     (V.A.C.S. Art. 3271a, Secs. 2(4), (5), 4(a) (part).)
 9-3           Sec. 1001.004.  LEGISLATIVE PURPOSE AND INTENT; LIBERAL
 9-4     CONSTRUCTION OF CHAPTER. (a)  The legislature recognizes the vital
 9-5     impact that the rapid advance of knowledge of the mathematical,
 9-6     physical, and engineering sciences as applied in the practice of
 9-7     engineering has on the lives, property, economy, and security of
 9-8     state residents and the national defense.
 9-9           (b)  The purpose of this chapter is to:
9-10                 (1)  protect the public health, safety, and welfare;
9-11                 (2)  enable the state and the public to identify
9-12     persons authorized to practice engineering in this state; and
9-13                 (3)  fix responsibility for work done or services or
9-14     acts performed in the practice of engineering.
9-15           (c)  The legislature intends that:
9-16                 (1)  the privilege of practicing engineering be
9-17     entrusted only to a person licensed and practicing under this
9-18     chapter;
9-19                 (2)  only a person licensed under this chapter may:
9-20                       (A)  engage in the practice of engineering;
9-21                       (B)  be represented in any way as any kind of
9-22     "engineer"; or
9-23                       (C)  make any professional use of the term
9-24     "engineer"; and
9-25                 (3)  this chapter be strictly complied with and
9-26     enforced.
9-27           (d)  This chapter shall be liberally construed to carry out
 10-1    the intent of the legislature.
 10-2          (e)  This chapter does not:
 10-3                (1)  prevent a person from identifying the person in
 10-4    the name and trade of any engineers' labor organization with which
 10-5    the person is affiliated;
 10-6                (2)  prohibit or otherwise restrict a person from
 10-7    giving testimony or preparing an exhibit or document for the sole
 10-8    purpose of being placed in evidence before an administrative or
 10-9    judicial tribunal;
10-10                (3)  repeal or amend a law affecting or regulating a
10-11    licensed state land surveyor; or
10-12                (4)  affect or prevent the practice of any other
10-13    legally recognized profession by a member of the profession who is
10-14    licensed by the state or under the state's authority.  (V.A.C.S.
10-15    Art. 3271a, Secs. 1.1 (part), 20(a) (part), (b), 25 (part).)
10-16          Sec. 1001.005.  APPLICATION OF SUNSET ACT. The Texas Board of
10-17    Professional Engineers is subject to Chapter 325, Government Code
10-18    (Texas Sunset Act).  Unless continued in existence as provided by
10-19    that chapter, the board is abolished and this chapter expires
10-20    September 1, 2003.  (V.A.C.S. Art. 3271a, Sec. 3a.)
10-21            (Sections 1001.006-1001.050 reserved for expansion)
10-22                         SUBCHAPTER B.  EXEMPTIONS
10-23          Sec. 1001.051.  LIMITATION ON EXEMPTION. An exemption under
10-24    this subchapter applies only to a person who is not directly or
10-25    indirectly represented to the public to be legally qualified to
10-26    engage in the practice of engineering.  (V.A.C.S. Art. 3271a, Sec.
10-27    20(a) (part).)
 11-1          Sec. 1001.052.  EMPLOYEE OF LICENSE HOLDER. A person who is
 11-2    an employee or subordinate of an engineer is exempt from the
 11-3    licensing requirements of this chapter if the person's practice
 11-4    does not include responsible charge of design or supervision.
 11-5    (V.A.C.S. Art. 3271a, Sec. 20(a) (part).)
 11-6          Sec. 1001.053.  PUBLIC WORKS. The following work is exempt
 11-7    from this chapter:
 11-8                (1)  a public work that involves structural,
 11-9    electrical, or mechanical engineering, if the contemplated expense
11-10    for the completed project is $8,000 or less;
11-11                (2)  a public work that does not involve structural,
11-12    electrical, or mechanical engineering, if the contemplated expense
11-13    for the completed project is $20,000 or less; or
11-14                (3)  road maintenance or improvement undertaken by the
11-15    commissioners court of a county.  (V.A.C.S. Art. 3271a, Sec.
11-16    19(b).)
11-17          Sec. 1001.054.  FEDERAL OFFICER OR EMPLOYEE. An officer or
11-18    employee of the United States is exempt from the licensing
11-19    requirements of this chapter during the time the officer or
11-20    employee is engaged in the practice of engineering for the United
11-21    States in this state.  (V.A.C.S. Art. 3271a, Sec. 20(a) (part).)
11-22          Sec. 1001.055.  MECHANICAL, ELECTRICAL, OR OTHER EQUIPMENT.
11-23    (a)  A person is exempt from the licensing requirements of this
11-24    chapter if the person is installing, operating, repairing, or
11-25    servicing a locomotive or stationary engine, steam boiler, diesel
11-26    engine, internal combustion engine, refrigeration compressor or
11-27    system, hoisting engine, electrical engine, air conditioning
 12-1    equipment or system, or mechanical, electrical, electronic, or
 12-2    communications equipment or apparatus.
 12-3          (b)  This exemption does not permit a person to:
 12-4                (1)  sign an engineering plan or specification if the
 12-5    person is not an engineer; or
 12-6                (2)  use the term "engineer" or "engineering" in any
 12-7    manner prohibited by this chapter.  (V.A.C.S. Art. 3271a, Sec.
 12-8    20(a) (part).)
 12-9          Sec. 1001.056.  CONSTRUCTION OR REPAIR OF AND PLANS FOR
12-10    CERTAIN BUILDINGS. (a)  A person, sole proprietorship, firm,
12-11    partnership, joint stock association, or private corporation is
12-12    exempt from the licensing requirements of this chapter if:
12-13                (1)  a representation that engineering services have
12-14    been or will be offered to the public is not made or implied; and
12-15                (2)  the person or entity is erecting, constructing,
12-16    enlarging, altering, or repairing or is drawing plans or
12-17    specifications for:
12-18                      (A)  a private dwelling;
12-19                      (B)  apartments not exceeding eight units for
12-20    each building in the case of one-story buildings;     
12-21                      (C)  apartments not exceeding four units for each
12-22    building and having a maximum height of two stories;
12-23                      (D)  a garage or other structure pertinent to a
12-24    building described by Paragraph (A), (B), or (C);
12-25                      (E)  a private building to be used exclusively
12-26    for:
12-27                            (i)  farm, ranch, or agricultural purposes;
 13-1    or
 13-2                            (ii)  storage of raw agricultural
 13-3    commodities; or
 13-4                      (F)  a building having no more than one story
 13-5    that:
 13-6                            (i)  is not a building exempt from the
 13-7    licensing requirements of this chapter under Section 1001.053 or
 13-8    subject to Section 1001.407;
 13-9                            (ii)  has a total floor area of not more
13-10    than 5,000 square feet; and
13-11                            (iii)  does not contain a clear span
13-12    between supporting structures greater than 24 feet on the narrow
13-13    side.
13-14          (b)  If a structure described by Subsections (a)(2)(F)(i) and
13-15    (ii) contains unsupported spans greater than 24 feet, only the
13-16    trusses, beams, or other roof supporting members must be engineered
13-17    or pre-engineered.  (V.A.C.S. Art. 3271a, Sec. 20(a) (part).)
13-18          Sec. 1001.057.  EMPLOYEE OF PRIVATE BUSINESS ENTITY OR
13-19    AFFILIATE. (a)  A regular full-time employee of a private business
13-20    entity is exempt from the licensing requirements of this chapter
13-21    if:
13-22                (1)  the employee performs services exclusively for the
13-23    business entity or an affiliate of that entity;
13-24                (2)  the employee's services:
13-25                      (A)  are on or in connection with property:
13-26                            (i)  owned or leased by the business entity
13-27    or affiliate; or
 14-1                            (ii)  in which the business entity or
 14-2    affiliate has an interest, estate, or possessory right; or
 14-3                      (B)  affect exclusively the property, products,
 14-4    or interests of the business entity or affiliate; and
 14-5                (3)  the employee does not have the final authority to
 14-6    approve, or the ultimate responsibility for, engineering designs,
 14-7    plans, or specifications relating to the property or products that
 14-8    are to be:
 14-9                      (A)  incorporated into a fixed work, system, or
14-10    facility on the property of another; or
14-11                      (B)  made available to the public.
14-12          (b)  This exemption includes the use of a job title or
14-13    personnel classification by the employee if the employee does not
14-14    use:
14-15                (1)  the title or classification in connection with an
14-16    offer to the public to perform engineering services; and
14-17                (2)  a name, title, or word that tends to convey the
14-18    impression that a person not licensed under this chapter is
14-19    offering to the public to perform engineering services.
14-20          (c)  A person who claims an exemption under this section and
14-21    who is determined to have directly or indirectly represented the
14-22    person as legally qualified to engage in the practice of
14-23    engineering may not claim an exemption until the 10th anniversary
14-24    of the date the person made that representation.  (V.A.C.S.
14-25    Art. 3271a, Secs. 20(a) (part), (g).)
14-26          Sec. 1001.058.  EMPLOYEE OF CERTAIN UTILITIES OR AFFILIATES.
14-27    (a)  A regular full-time employee of a privately owned public
 15-1    utility or cooperative utility or of the utility's affiliate is
 15-2    exempt from the licensing requirements of this chapter if the
 15-3    employee:
 15-4                (1)  performs services exclusively  for the utility or
 15-5    affiliate; and
 15-6                (2)  does not have the final authority to approve, or
 15-7    the ultimate responsibility for, engineering designs, plans, or
 15-8    specifications that are to be:
 15-9                      (A)  incorporated into fixed works, systems, or
15-10    facilities on the property of others; or
15-11                      (B)  made available to the public.
15-12          (b)  This exemption includes the use of a job title or
15-13    personnel classification by the employee if the employee does not
15-14    use:
15-15                (1)  the title or classification in connection with an
15-16    offer to the public to perform engineering services; and
15-17                (2)  a name, title, or word that tends to convey the
15-18    impression that a person not licensed under this chapter is
15-19    offering to the public to perform engineering services.
15-20          (c)  A person who claims an exemption under this section and
15-21    who is determined to have directly or indirectly represented the
15-22    person as legally qualified to engage in the practice of
15-23    engineering may not claim an exemption until the 10th anniversary
15-24    of the date the person made that representation.  (V.A.C.S.
15-25    Art. 3271a, Secs. 20(a) (part), (g).)
15-26          Sec. 1001.059.  QUALIFIED SCIENTISTS. A qualified scientist
15-27    engaged in scientific research and investigation of the physical or
 16-1    natural sciences is exempt from the licensing requirements of this
 16-2    chapter. This exemption includes the usual work and activities of a
 16-3    meteorologist, seismologist, geologist, chemist, geochemist,
 16-4    physicist, or geophysicist.  (V.A.C.S. Art. 3271a, Sec. 20(a)
 16-5    (part).)
 16-6          Sec. 1001.060.  SOIL AND WATER CONSERVATION. Agricultural
 16-7    work performed in carrying out soil and water conservation
 16-8    practices is exempt from this chapter.  (V.A.C.S. Art. 3271a, Sec.
 16-9    20(c).)
16-10          Sec. 1001.061.  TELEPHONE COMPANIES. (a)  An operating
16-11    telephone company, an affiliate of the company, or an employee of
16-12    the company or affiliate is exempt from this chapter with respect
16-13    to any plan, design, specification, or service that relates
16-14    strictly to the science and art of telephony.
16-15          (b)  This exemption includes the use of a job title or
16-16    personnel classification by a person included under Subsection (a)
16-17    if the person does not use:
16-18                (1)  the title or classification in connection with an
16-19    offer to the public to perform engineering services; and
16-20                (2)  a name, title, or word that tends to convey the
16-21    impression that a person not licensed under this chapter is
16-22    offering to the public to perform engineering services.  (V.A.C.S.
16-23    Art. 3271a, Sec. 20(d).)
16-24          Sec. 1001.062.  CERTAIN EMPLOYEES WORKING FROM ENGINEER'S
16-25    PLANS. (a)  A regular full-time employee of a private business
16-26    entity who is engaged in erecting, constructing, enlarging,
16-27    altering, repairing, rehabilitating, or maintaining an improvement
 17-1    to real property in accordance with plans or specifications that
 17-2    have an engineer's seal is exempt from this chapter.
 17-3          (b)  This exemption includes the use of a job title or
 17-4    personnel classification by the employee if the employee does not
 17-5    use the title or classification in connection with an offer to the
 17-6    public to perform engineering services.  (V.A.C.S. Art. 3271a, Sec.
 17-7    20(f).)
 17-8          Sec. 1001.063.  ARCHITECTS, LANDSCAPE ARCHITECTS, AND
 17-9    INTERIOR DESIGNERS. This chapter or a rule adopted under this
17-10    chapter does not prevent or otherwise restrict a person licensed as
17-11    an architect under Chapter 1051, a landscape architect under
17-12    Chapter 1052, or an interior designer under Chapter 1053 from
17-13    performing an act, service, or work that is within the definition
17-14    of the person's practice under those chapters.  (V.A.C.S.
17-15    Art. 3271a, Sec. 20(e).)
17-16          Sec. 1001.064.  STATE LAND SURVEYORS. A licensed state land
17-17    surveyor is exempt from this chapter in performing a state land
17-18    surveyor's duties.  (V.A.C.S. Art. 3271a, Sec. 25 (part).)
17-19            (Sections 1001.065-1001.100 reserved for expansion)
17-20           SUBCHAPTER C.  TEXAS BOARD OF PROFESSIONAL ENGINEERS
17-21          Sec. 1001.101.  BOARD MEMBERSHIP. (a)  The Texas Board of
17-22    Professional Engineers consists of nine members appointed by the
17-23    governor with the advice and consent of the senate as follows:
17-24                (1)  six engineers; and
17-25                (2)  three members who represent the public.
17-26          (b)  Appointments to the board shall be made without regard
17-27    to the race, creed, sex, religion, or national origin of the
 18-1    appointee.  (V.A.C.S. Art. 3271a, Sec. 3 (part).)
 18-2          Sec. 1001.102.  MEMBER ELIGIBILITY. (a)  A person is not
 18-3    eligible for appointment as a public member of the board if the
 18-4    person or the person's spouse:
 18-5                (1)  is licensed by an occupational regulatory agency
 18-6    in the field of engineering;
 18-7                (2)  is employed by or participates in the management
 18-8    of an agency or business entity related to the field of
 18-9    engineering; or
18-10                (3)  has a financial interest other than as a consumer
18-11    in a business entity related to the field of engineering.
18-12          (b)  An engineer member of the board must:
18-13                (1)  be a citizen of the United States and a resident
18-14    of this state for at least 10 years before the date of appointment;
18-15    and
18-16                (2)  have been engaged in the practice of engineering
18-17    for at least 10 years before the date of appointment.
18-18          (c)  For purposes of Subsection (b)(2), a person who has
18-19    graduated from an approved engineering school may be considered to
18-20    have engaged in the practice of engineering for two years.
18-21    (V.A.C.S. Art. 3271a, Sec. 4(a) (part).)
18-22          Sec. 1001.103.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)  A
18-23    member or employee of the board may not be:
18-24                (1)  an officer, employee, or paid consultant of a
18-25    trade association in the engineering industry; or
18-26                (2)  related within the second degree by affinity or
18-27    consanguinity, as determined under Chapter 573, Government Code, to
 19-1    a person who is an officer, employee, or paid consultant of a trade
 19-2    association in the engineering industry.
 19-3          (b)  A person may not serve as a member of the board or act
 19-4    as the general counsel to the board if the person is required to
 19-5    register as a lobbyist under Chapter 305, Government Code.
 19-6    (V.A.C.S. Art. 3271a, Secs. 4(b), (c).)
 19-7          Sec. 1001.104.  TERMS; VACANCY. (a)  Board members serve
 19-8    staggered six-year terms, with the terms of one-third of the
 19-9    members expiring each odd-numbered year.
19-10          (b)  If a vacancy occurs during a member's term, the governor
19-11    shall appoint a replacement to fill the unexpired term. (V.A.C.S.
19-12    Art. 3271a, Secs. 3 (part), 6(a).)
19-13          Sec. 1001.105.  PARTICIPATION OF PUBLIC MEMBERS. (a)  The
19-14    board by majority vote may limit the participation of public
19-15    members in evaluating license applications.
19-16          (b)  This section does not apply to the evaluation of license
19-17    applications at an official meeting of the board.  (V.A.C.S.
19-18    Art. 3271a, Sec. 4(d).)
19-19          Sec. 1001.106.  GROUNDS FOR REMOVAL. (a)  It is a ground for
19-20    removal from the board that a member:
19-21                (1)  does not have at the time of appointment the
19-22    qualifications required by Section 1001.102;
19-23                (2)  does not maintain during service on the board the
19-24    qualifications required by Section 1001.102;
19-25                (3)  violates a prohibition established by Section
19-26    1001.103; or
19-27                (4)  is absent from more than half of the regularly
 20-1    scheduled meetings held in a calendar year, excluding meetings held
 20-2    while the person was not a member.
 20-3          (b)  The validity of an action of the board is not affected
 20-4    by the fact that it is taken when a ground for removal of a board
 20-5    member exists. (V.A.C.S. Art. 3271a, Secs. 6(b), (c).)
 20-6          Sec. 1001.107.  PER DIEM; REIMBURSEMENT. (a)  A board member
 20-7    is entitled to receive a per diem as set by the General
 20-8    Appropriations Act for each day that the member engages in the
 20-9    business of the board.
20-10          (b)  A board member may not receive reimbursement for travel
20-11    expenses, including expenses for meals and lodging, other than
20-12    transportation expenses.  A member is entitled to reimbursement for
20-13    transportation expenses as provided by the General Appropriations
20-14    Act.  (V.A.C.S. Art. 3271a, Sec. 5 (part).)
20-15          Sec. 1001.108.  OFFICERS. The board shall elect annually from
20-16    its members a presiding officer, an assistant presiding officer,
20-17    and a secretary.  (V.A.C.S. Art. 3271a, Sec. 7(a) (part).)
20-18          Sec. 1001.109.  BOARD SECRETARY'S DUTIES AND SALARY. (a)  The
20-19    secretary of the board shall give to the governor a surety bond in
20-20    the amount of $2,500.  The board shall pay the premium on the bond.
20-21          (b)  The secretary shall receive and account for all money
20-22    received under this chapter.
20-23          (c)  The secretary is entitled to a salary as determined by
20-24    the board in addition to  compensation and expenses provided for in
20-25    this subchapter.  The salary may not exceed the salary paid for
20-26    similar work in other departments. (V.A.C.S. Art. 3271a, Sec. 9
20-27    (part).)
 21-1          Sec. 1001.110.  MEETINGS. The board shall hold at least two
 21-2    regular meetings each year.  Special meetings shall be held at  the
 21-3    time provided by the board's bylaws.  (V.A.C.S. Art. 3271a, Sec.
 21-4    7(a) (part).)
 21-5          Sec. 1001.111.  FILING OF OATH. Before assuming the duties of
 21-6    office, each board member shall file with the secretary of state a
 21-7    copy of the constitutional oath of office taken by the member.
 21-8    (V.A.C.S. Art. 3271a, Sec. 3 (part).)
 21-9            (Sections 1001.112-1001.150 reserved for expansion)
21-10                      SUBCHAPTER D.  BOARD PERSONNEL
21-11          Sec. 1001.151.  PERSONNEL. (a)  The board shall employ
21-12    clerical or other assistants as necessary to perform the board's
21-13    work.
21-14          (b)  A salary paid under this section may not exceed the
21-15    salary paid for similar work in other departments.  (V.A.C.S.
21-16    Art. 3271a, Sec. 9 (part).)
21-17          Sec. 1001.152.  CAREER LADDER PROGRAM; PERFORMANCE
21-18    EVALUATIONS. (a)  The executive director or the executive
21-19    director's designee shall develop an intra-agency career ladder
21-20    program.  The program must require intra-agency posting of each
21-21    nonentry level position with the board at least 10 days before the
21-22    date of any public posting.
21-23          (b)  The executive director or the executive director's
21-24    designee shall develop a system of annual performance evaluations
21-25    of the board's employees based on measurable job tasks.  All merit
21-26    pay authorized by the executive director must be based on the
21-27    system established under this subsection. (V.A.C.S. Art. 3271a,
 22-1    Secs. 7(c), (d).)
 22-2            (Sections 1001.153-1001.200 reserved for expansion)
 22-3                  SUBCHAPTER E.  BOARD POWERS AND DUTIES
 22-4          Sec. 1001.201.  GENERAL POWERS AND DUTIES. (a)  The board
 22-5    shall administer and enforce this chapter.
 22-6          (b)  The board may spend money for any purpose the board
 22-7    considers reasonably necessary for the proper performance of its
 22-8    duties under this chapter. (V.A.C.S. Art. 3271a, Secs. 3 (part), 9
 22-9    (part), 23(b) (part).)
22-10          Sec. 1001.202.  RULES. The board may adopt and enforce any
22-11    rule or bylaw necessary to perform its duties, govern its
22-12    proceedings, and regulate the practice of engineering.  (V.A.C.S.
22-13    Art. 3271a, Sec. 8(a) (part).)
22-14          Sec. 1001.203.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
22-15    BIDDING. (a)  The board by rule may restrict competitive bidding.
22-16          (b)  The board may not adopt a rule restricting advertising
22-17    by a person licensed under this chapter except to prohibit false,
22-18    misleading, or deceptive practices by the person.
22-19          (c)  The board may not include in its rules to prohibit
22-20    false, misleading, or deceptive practices a rule that:
22-21                (1)  restricts the person's use of any medium for
22-22    advertising;
22-23                (2)  restricts the person's personal appearance or use
22-24    of the person's voice in an advertisement;
22-25                (3)  relates to the size or duration of an
22-26    advertisement by the person; or
22-27                (4)  restricts the person's advertisement under a trade
 23-1    name.  (V.A.C.S. Art. 3271a, Sec. 8(b).)
 23-2          Sec. 1001.204.  FEES. (a)  The board shall establish
 23-3    reasonable and necessary fees for the administration of this
 23-4    chapter in amounts not to exceed:
 23-5                (1)  license fee .................................. $50
 23-6                (2)  annual renewal fee ........................... $75
 23-7                (3)  reciprocal license fee ....................... $50
 23-8                (4)  duplicate license  ............................ $5
 23-9                (5)  engineer-in-training certificate ............. $15
23-10                (6)  roster of engineers .......................... $10
23-11                (7)  examination fee ............................. $200
23-12                (8)  registration fee for engineering firm ....... $100
23-13          (b)  Fee revenue may not exceed the amount reasonable and
23-14    necessary to administer this chapter.
23-15          (c)  General revenue of the state may not be used to pay the
23-16    costs of administering this chapter in an amount that exceeds the
23-17    amount of fees received under this chapter. (V.A.C.S. Art. 3271a,
23-18    Secs. 5 (part), 13(b), (c).)
23-19          Sec. 1001.205.  REDUCED FEES:  ELDERLY, DISABLED, INACTIVE
23-20    STATUS. (a)  For purposes of this section, a person is disabled if
23-21    the person has a mental or physical impairment that substantially
23-22    limits the ability of the person to earn a living as an engineer,
23-23    other than an impairment caused by a current addiction to the use
23-24    of alcohol or an illegal drug or controlled substance.
23-25          (b)  The board by rule may adopt reduced license fees and
23-26    annual renewal fees for engineers who are:
23-27                (1)  at least 65 years of age; or
 24-1                (2)  disabled and not actively engaged in the practice
 24-2    of engineering.
 24-3          (c)  A person entitled to reduced fees under Subsection
 24-4    (b)(2) shall notify the board that the person has resumed the
 24-5    active practice of engineering not later than the 15th day after
 24-6    the date the person resumes active practice. (V.A.C.S. Art. 3271a,
 24-7    Secs. 13(d), (e).)
 24-8          Sec. 1001.206.  FEE INCREASE. (a)  The fee for a license
 24-9    under this chapter, for the annual renewal of that license, and for
24-10    a reciprocal license under this chapter is increased by $200.
24-11          (b)  Of each fee increase collected, $50 shall be deposited
24-12    in the foundation school fund and $150 shall be deposited in the
24-13    general revenue fund.
24-14          (c)  The fee increase imposed by Subsection (a) does not
24-15    apply to an engineer who:
24-16                (1)  meets the qualifications for an exemption under
24-17    Section 1001.057 or 1001.058 but does not claim that exemption; or
24-18                (2)  is disabled as described by Section 1001.205.
24-19    (V.A.C.S. Art. 3271a, Secs. 13B(a), (b) (part), (c).)
24-20          Sec. 1001.207.  STANDARDS OF CONDUCT AND ETHICS. The board
24-21    may establish standards of conduct and ethics for engineers in
24-22    keeping with the purposes and intent of this chapter and to ensure
24-23    strict compliance with and enforcement of this chapter. (V.A.C.S.
24-24    Art. 3271a, Sec. 8(a) (part).)
24-25          Sec. 1001.208.  ROSTER OF ENGINEERS. (a)  The board shall
24-26    prepare and publish a roster of persons, including business
24-27    entities, licensed, registered, certified, or enrolled by the
 25-1    board.  The roster shall include the name, business address, and
 25-2    other identifying information required by board rule.
 25-3          (b)  The board shall make the roster available to the public
 25-4    without cost in an online computer database format.
 25-5          (c)  The board shall provide a physical copy of the roster on
 25-6    request and may charge a reproduction and shipping fee for
 25-7    providing a physical copy of the roster.  (V.A.C.S. Art. 3271a,
 25-8    Sec. 11.)
 25-9          Sec. 1001.209.  REGISTER OF APPLICANTS. The board shall
25-10    maintain a register of license applications that shows:
25-11                (1)  the name, age, and residence of each applicant;
25-12                (2)  the date of the application;
25-13                (3)  the applicant's place of business;
25-14                (4)  the applicant's educational and other
25-15    qualifications;
25-16                (5)  whether an examination was required;
25-17                (6)  whether the applicant was issued or denied a
25-18    license;
25-19                (7)  the date of board action; and
25-20                (8)  any other information the board considers
25-21    necessary. (V.A.C.S. Art. 3271a, Sec. 10(a) (part).)
25-22          Sec. 1001.210.  CONTINUING EDUCATION PROGRAMS. The board may
25-23    recognize, prepare, or administer continuing education programs for
25-24    persons regulated by the board under this chapter.  Participation
25-25    in the programs is voluntary.  (V.A.C.S. Art. 3271a, Sec. 8(c).)
25-26          Sec. 1001.211.  RECORDS. (a)  The board shall maintain a
25-27    record of its proceedings.
 26-1          (b)  The board's records shall be available to the public at
 26-2    all times.
 26-3          (c)  The board's records are prima facie evidence of the
 26-4    proceedings of the board set forth in the records. A transcript of
 26-5    the records certified by the secretary of the board under seal is
 26-6    admissible in evidence with the same effect as if it were the
 26-7    original. (V.A.C.S. Art. 3271a, Sec. 10(a) (part).)
 26-8          Sec. 1001.212.  CONFIDENTIALITY OF CERTAIN INFORMATION
 26-9    RELATED TO LICENSE APPLICATION. (a)  A statement made by a person
26-10    providing a reference for an applicant and other pertinent
26-11    information compiled by or submitted to the board relating to an
26-12    applicant for a license under this chapter is privileged and
26-13    confidential.
26-14          (b)  Information described by Subsection (a)  may be used
26-15    only by the board or its employees or agents who are directly
26-16    involved in the application or licensing process.  The information
26-17    is not subject to discovery, subpoena, or other disclosure.
26-18    (V.A.C.S. Art. 3271a, Sec. 26.)
26-19          Sec. 1001.213.  SUBPOENA. (a)  The board may request and, if
26-20    necessary, compel by subpoena:
26-21                (1)  the attendance of a witness for examination under
26-22    oath; and
26-23                (2)  the production for inspection or copying of
26-24    records, documents, and other evidence relevant to the
26-25    investigation of an alleged violation of this chapter.
26-26          (b)  The board, acting through the attorney general, may
26-27    bring an action to enforce a subpoena issued under Subsection (a)
 27-1    against a person who fails to comply with the subpoena.
 27-2          (c)  Venue for an action brought under Subsection (b) is in a
 27-3    district court in:
 27-4                (1)  Travis County; or
 27-5                (2)  the county in which the board may hold a hearing.
 27-6          (d)  The court shall order compliance with the subpoena if
 27-7    the court finds that good cause exists to issue the subpoena.
 27-8    (V.A.C.S. Art. 3271a, Sec. 8(d) (part).)
 27-9            (Sections 1001.214-1001.250 reserved for expansion)
27-10             SUBCHAPTER F.  CONSUMER INTEREST INFORMATION AND
27-11                           COMPLAINT PROCEDURES
27-12          Sec. 1001.251.  CONSUMER INTEREST INFORMATION. (a)  The board
27-13    shall prepare information of consumer interest describing the
27-14    regulatory functions of the board and the procedures by which
27-15    consumer complaints are filed with and resolved by the board.
27-16          (b)  The board shall make the information available to the
27-17    public and appropriate state agencies.  (V.A.C.S. Art. 3271a, Sec.
27-18    22B.)
27-19          Sec. 1001.252.  COMPLAINTS. The board shall adopt rules that
27-20    permit the board to receive and investigate a confidential
27-21    complaint against a license holder or other person who may have
27-22    violated this chapter.  The board shall maintain the
27-23    confidentiality of the complaint during the investigation.
27-24    (V.A.C.S. Art. 3271a, Sec. 22A(c).)
27-25          Sec. 1001.253.  COMPLAINT INFORMATION. (a)  The board shall
27-26    keep an information file about each complaint relating to a license
27-27    holder filed with the board.
 28-1          (b)  If a written complaint relating to a license holder is
 28-2    filed with the board, the board, at least quarterly and until final
 28-3    disposition of the complaint, shall notify the parties to the
 28-4    complaint of the status of the complaint unless the notice would
 28-5    jeopardize an undercover investigation.  (V.A.C.S. Art. 3271a,
 28-6    Secs. 22A(a), (b).)
 28-7            (Sections 1001.254-1001.300 reserved for expansion)
 28-8                    SUBCHAPTER G.  LICENSE REQUIREMENTS
 28-9          Sec. 1001.301.  LICENSE REQUIRED. (a)  A person may not
28-10    engage in the practice of engineering unless the person holds a
28-11    license issued under this chapter.
28-12          (b)  A person may not, unless the person holds a license
28-13    issued under this chapter, directly or indirectly use or cause to
28-14    be used as a professional, business, or commercial identification,
28-15    title, name, representation, claim, asset, or means of advantage or
28-16    benefit any of, or a variation or abbreviation of, the following
28-17    terms:
28-18                (1)  "engineer";
28-19                (2)  "professional engineer";
28-20                (3)  "licensed engineer";
28-21                (4)  "registered engineer";
28-22                (5)  "registered professional engineer";
28-23                (6)  "licensed professional engineer"; or
28-24                (7)  "engineered."
28-25          (c)  A person may not directly or indirectly use or cause to
28-26    be used an abbreviation, word, symbol, slogan, or sign that tends
28-27    or is likely to create an impression with the public that the
 29-1    person is qualified or authorized to engage in the practice of
 29-2    engineering unless the person holds a license and is practicing
 29-3    under this chapter.
 29-4          (d)  A person may not receive any fee or compensation or the
 29-5    promise of any fee or compensation for engaging in the practice of
 29-6    engineering unless the person holds a license issued under this
 29-7    chapter.
 29-8          (e)  A person, sole proprietorship, firm, partnership,
 29-9    association, or corporation that engages in or offers or attempts
29-10    to engage in conduct described by this section is conclusively
29-11    presumed to be engaged in the practice of engineering.  (V.A.C.S.
29-12    Art. 3271a, Sec. 1.2.)
29-13          Sec. 1001.302.  LICENSE ELIGIBILITY REQUIREMENTS. (a)  An
29-14    applicant for a license under this chapter must submit evidence
29-15    satisfactory to the board showing at least that the applicant has:
29-16                (1)  graduated from:
29-17                      (A)  an engineering curriculum approved by the
29-18    board as having satisfactory standing; or
29-19                      (B)  an engineering or related science curriculum
29-20    at a recognized institution of higher education, other than a
29-21    curriculum approved by the board under Paragraph (A);
29-22                (2)  passed the examination requirements prescribed by
29-23    the board; and
29-24                (3)  engaged in the active practice of engineering for
29-25    at least:
29-26                      (A)  four years, if the applicant graduated from
29-27    a curriculum described by Subdivision (1)(A); or
 30-1                      (B)  eight years, if the applicant graduated from
 30-2    a curriculum described by Subdivision (1)(B).
 30-3          (b)  To satisfy the requirement of Subsection (a)(3), an
 30-4    applicant must submit a specific record showing engineering work of
 30-5    a character satisfactory to the board indicating that the applicant
 30-6    is competent to be placed in responsible charge of that work.
 30-7          (c)  For purposes of determining an applicant's
 30-8    qualifications under Subsection (a)(3), the board:
 30-9                (1)  may consider the responsible charge of engineering
30-10    teaching as responsible charge of engineering work; and
30-11                (2)  may not consider as active practice in engineering
30-12    work:
30-13                      (A)  the mere execution, as a contractor, of work
30-14    designed by an engineer; or
30-15                      (B)  the supervision, as a foreman or
30-16    superintendent, of the construction of work designed by an
30-17    engineer.
30-18          (d)  A person is not eligible to be licensed as an engineer
30-19    unless the person is of good character and reputation.
30-20          (e)  A person who has the necessary license qualifications
30-21    described by this chapter is eligible for the license regardless of
30-22    whether the person is practicing at the time the person applies for
30-23    the license.  (V.A.C.S. Art. 3271a, Secs. 12(a), (b) (part), (c),
30-24    (d).)
30-25          Sec. 1001.303.  APPLICATION FOR LICENSE. (a)  An applicant
30-26    for a license under this chapter must submit a sworn application on
30-27    a form prescribed and provided by the board.
 31-1          (b)  The application must contain:
 31-2                (1)  personal information about the applicant, as
 31-3    required by board rule;
 31-4                (2)  a description of the applicant's education;
 31-5                (3)  a detailed summary of the applicant's actual
 31-6    engineering work;
 31-7                (4)  a description of any engineering license or
 31-8    registration previously issued to the applicant and any denial,
 31-9    revocation, or suspension of an engineering license or registration
31-10    held by the applicant;
31-11                (5)  a description of any criminal offense of which the
31-12    applicant has been convicted; and
31-13                (6)  at least five  references from individuals having
31-14    personal knowledge of the applicant's character, reputation, and
31-15    general suitability for a license, of whom at least three must be
31-16    engineers having personal knowledge of the applicant's engineering
31-17    experience.  (V.A.C.S. Art. 3271a, Sec. 13(a).)
31-18          Sec. 1001.304.  EXAMINATION. (a)  The board shall administer
31-19    examinations to determine the qualifications of applicants for  a
31-20    license.
31-21          (b)  The board shall prescribe the scope of the examination
31-22    and the methods of procedure with special reference to an
31-23    applicant's ability to design and supervise engineering works to
31-24    ensure the safety of life, health, and property.
31-25          (c)  On payment of the examination fee, the board shall
31-26    administer an oral or written examination to a qualified applicant
31-27    at a time and place determined by the board. (V.A.C.S. Art. 3271a,
 32-1    Sec. 14(a) (part).)
 32-2          Sec. 1001.305.  WAIVER OF EXAMINATION REQUIREMENT. The board
 32-3    by rule may waive all or part of the examination requirement for an
 32-4    applicant for the issuance or reissuance of a license. The board
 32-5    may not waive the requirement unless the board first determines
 32-6    that:
 32-7                (1)  the applicant possesses sufficient qualifications
 32-8    to justify the waiver; and
 32-9                (2)  issuing or reissuing the license to the applicant
32-10    does not pose a threat to the public health, safety, or welfare.
32-11    (V.A.C.S. Art. 3271a, Sec. 12(e).)
32-12          Sec. 1001.306.  EXAMINATION RESULTS. (a)  The board shall
32-13    notify each examinee of the results of an examination not later
32-14    than the 30th day after the date the examination is administered.
32-15    If an examination is graded or reviewed by a national testing
32-16    service, the board shall notify each examinee of the results of the
32-17    examination not later than the 14th day after the date the board
32-18    receives the results from the testing service.
32-19          (b)  If the notice of the results of an examination will be
32-20    delayed for longer than 90 days after the examination date, the
32-21    board shall notify each examinee of the reason for the delay before
32-22    the 90th day.
32-23          (c)  If requested in writing by a person who fails the
32-24    examination, the board shall provide to the person an analysis of
32-25    the person's performance on the examination.  (V.A.C.S. Art. 3271a,
32-26    Secs. 14(b), (c).)
32-27          Sec. 1001.307.  REEXAMINATION. The board may permit
 33-1    reexamination of an applicant on payment of an appropriate
 33-2    reexamination fee in an amount set by the board. (V.A.C.S.
 33-3    Art. 3271a, Sec. 14(a) (part).)
 33-4          Sec. 1001.308.  ISSUANCE OF LICENSE. (a)  On payment of the
 33-5    license fee, the board shall issue a license authorizing the
 33-6    practice of engineering to an applicant who, in the board's
 33-7    opinion, has met all the requirements of this subchapter.
 33-8          (b)  A license shall:
 33-9                (1)  show the full name of the license holder;
33-10                (2)  have a serial number; and
33-11                (3)  be signed by the presiding officer and the
33-12    secretary of the board under the board's seal.
33-13          (c)  A license is evidence that the person named on the
33-14    license is entitled to all rights and privileges of an engineer.
33-15    (V.A.C.S. Art. 3271a, Sec. 15(a).)
33-16          Sec. 1001.309.  CERTIFICATION OR ENROLLMENT OF
33-17    ENGINEERS-IN-TRAINING.  (a)  The board shall certify or enroll as
33-18    an engineer-in-training an applicant who meets the requirements of
33-19    Subsection (b) if the applicant is otherwise qualified.
33-20          (b)  The board shall consider as minimum evidence that an
33-21    applicant is qualified for certification or enrollment as an
33-22    engineer-in-training if the applicant:
33-23                (1)  complies with the education and character
33-24    requirements of Section 1001.302; and
33-25                (2)  has passed the board's eight-hour written
33-26    examination in the fundamentals of engineering.
33-27          (c)  The fee for an engineer-in-training certificate or
 34-1    enrollment must accompany the application.
 34-2          (d)  The certification or enrollment of an
 34-3    engineer-in-training is valid for eight years.  (V.A.C.S.
 34-4    Art. 3271a, Sec. 12.1.)
 34-5          Sec. 1001.310.  TEMPORARY OR PROVISIONAL LICENSE. The board
 34-6    by rule may adopt standards and procedures for issuing a temporary
 34-7    or provisional license under this chapter.  (V.A.C.S. Art. 3271a,
 34-8    Sec. 20A.)
 34-9          Sec. 1001.311.  APPLICATION BY NONRESIDENT. A person who
34-10    holds a license or certificate of registration issued  by another
34-11    state or a foreign country may apply for a license in this state.
34-12    (V.A.C.S. Art. 3271a, Sec. 21.)
34-13          Sec. 1001.312.  REPLACEMENT LICENSE. The board, subject to
34-14    board rules, may issue a new license to replace a license that is
34-15    lost, destroyed, or mutilated.  (V.A.C.S. Art. 3271a, Sec. 22(d)
34-16    (part).)
34-17            (Sections 1001.313-1001.350 reserved for expansion)
34-18                      SUBCHAPTER H.  LICENSE RENEWAL
34-19          Sec. 1001.351.  ANNUAL RENEWAL REQUIRED. (a)  The board shall
34-20    provide for the annual renewal of a license or registration issued
34-21    under this chapter.
34-22          (b)  The board by rule may adopt a system under which
34-23    licenses and registrations expire on various dates during the year
34-24    and shall adjust renewal dates accordingly.  (V.A.C.S. Art. 3271a,
34-25    Sec. 16.1.)
34-26          Sec. 1001.352.  NOTICE OF LICENSE EXPIRATION. Not later than
34-27    one month before the expiration date of a person's license, the
 35-1    board shall mail to the person at the last address the person
 35-2    provided to the board written notice of the license expiration date
 35-3    and the amount of the annual renewal fee for the license. (V.A.C.S.
 35-4    Art. 3271a, Sec. 16(a).)
 35-5          Sec. 1001.353.  PROCEDURE FOR RENEWAL. (a)  A person may
 35-6    renew an unexpired license by paying the required renewal fee to
 35-7    the board before the expiration date of the license.
 35-8          (b)  A person whose license has been expired for 90 days or
 35-9    less may renew the license by paying to the board the required
35-10    renewal fee and a penalty fee set by the board.
35-11          (c)  A person whose license has been expired for more than 90
35-12    days but less than two years may renew the license by paying to the
35-13    board all unpaid renewal fees and a penalty fee set by the board.
35-14          (d)  A person whose license has been expired for two years or
35-15    more may not renew the license.  The person may obtain a new
35-16    license by complying with the requirements and procedures for
35-17    obtaining an original license that are in effect at the time the
35-18    person applies.  (V.A.C.S. Art. 3271a, Secs. 16(b), (c), (d), (e).)
35-19            (Sections 1001.354-1001.400 reserved for expansion)
35-20                  SUBCHAPTER I.  PRACTICE OF ENGINEERING
35-21          Sec. 1001.401.  USE OF SEAL. (a)  On receiving a license, a
35-22    license holder shall obtain a seal in a design authorized by the
35-23    board, showing the license holder's name and the legend "Licensed
35-24    Professional Engineer" or "Registered Professional Engineer."
35-25          (b)  A plan, specification, plat, or report issued by a
35-26    license holder must include the license holder's seal placed on the
35-27    document.
 36-1          (c)  A person may not place a seal on a document if the
 36-2    license of the license holder named on the seal has expired or has
 36-3    been suspended or revoked. (V.A.C.S. Art. 3271a, Sec. 15(b).)
 36-4          Sec. 1001.402.  ENFORCEMENT BY CERTAIN PUBLIC OFFICIALS. A
 36-5    public official of the state or of a political subdivision of the
 36-6    state who is responsible for enforcing laws that affect the
 36-7    practice of engineering may accept a plan, specification, or other
 36-8    related document only if the plan, specification, or other document
 36-9    was prepared by an engineer, as evidenced by the engineer's seal.
36-10    (V.A.C.S. Art. 3271a, Sec. 15(c) (part).)
36-11          Sec. 1001.403.  PROFESSIONAL IDENTIFICATION. A person
36-12    licensed under this chapter shall use the term "Engineer,"
36-13    "Professional Engineer," or "P.E." in the professional use of the
36-14    person's name on a sign, directory, listing, document, contract,
36-15    pamphlet, stationery, advertisement, signature, or another similar
36-16    written or printed form of identification.  (V.A.C.S. Art. 3271a,
36-17    Sec. 1.3.)
36-18          Sec. 1001.404.  ELIGIBILITY FOR APPOINTED STATE POSITION. An
36-19    engineer is eligible to hold any appointive engineering position
36-20    with the state.  (V.A.C.S. Art. 3271a, Sec. 12(b) (part).)
36-21          Sec. 1001.405.  PRACTICE BY BUSINESS ENTITY; REGISTRATION.
36-22    (a)  In this section, "business entity" includes a sole
36-23    proprietorship, firm, partnership, corporation, or joint stock
36-24    association.
36-25          (b)  A business entity may not engage in the practice of
36-26    engineering in this state unless:
36-27                (1)  the business entity is registered with the board;
 37-1    and
 37-2                (2)  the practice is carried on only by engineers.
 37-3          (c)  A business entity may register under this section by
 37-4    filing an application with the board on a form provided by the
 37-5    board.  In addition to any other information required by board
 37-6    rule, the application must list the name and address of each
 37-7    officer or director of the business entity and each engineer who
 37-8    engages in the practice of engineering on behalf of the business
 37-9    entity.
37-10          (d)  The registration of a business entity issued under this
37-11    section expires on the first anniversary of the date the
37-12    registration is issued.  The registration may be renewed by the
37-13    filing of an updated application under Subsection (c).
37-14          (e)  A business entity may not represent to the public that
37-15    it is engaged in the practice of engineering under any business
37-16    name or use or cause to be used the term  "engineer,"
37-17    "engineering," "engineering services," "engineering company,"
37-18    "engineering, inc.," "professional engineers," "licensed engineer,"
37-19    "registered engineer," "licensed professional engineer,"
37-20    "registered professional engineer," or "engineered," or any
37-21    abbreviation or variation of those terms, or directly or indirectly
37-22    use or cause to be used any of those terms in combination with
37-23    other words, letters, signs, or symbols as a part of any sign,
37-24    directory, listing, contract, document, pamphlet, stationery,
37-25    advertisement, signature, or business name unless:
37-26                (1)  the business entity is registered under this
37-27    section;
 38-1                (2)  the business entity is actively engaged in the
 38-2    practice of engineering; and
 38-3                (3)  each service, work, or act performed by the
 38-4    business entity that is part of the practice of engineering is
 38-5    either personally performed by an engineer or  directly supervised
 38-6    by an engineer who is a regular full-time employee of the business
 38-7    entity.
 38-8          (f)  This section does not prohibit an engineer from
 38-9    performing engineering services on a part-time basis. (V.A.C.S.
38-10    Art. 3271a, Secs. 17, 18; New.)
38-11          Sec. 1001.406.  GRADUATE ENGINEERS. A graduate of a public
38-12    university recognized by the American Association of Colleges and
38-13    Universities has the right to:
38-14                (1)  disclose any college degree received by the
38-15    person; and
38-16                (2)  use the term "graduate engineer" on the person's
38-17    stationery or business cards or in personal communications of any
38-18    character.  (V.A.C.S. Art. 3271a, Sec. 1.1 (part).)
38-19          Sec. 1001.407.  CONSTRUCTION OF CERTAIN PUBLIC WORKS. The
38-20    state or a political subdivision of the state may not construct a
38-21    public work involving engineering in which the public health,
38-22    welfare, or safety is involved, unless:
38-23                (1)  the engineering plans, specifications, and
38-24    estimates have been prepared by an engineer; and
38-25                (2)  the engineering construction is to be performed
38-26    under the direct supervision of an engineer.  (V.A.C.S. Art. 3271a,
38-27    Sec. 19(a).)
 39-1            (Sections 1001.408-1001.450 reserved for expansion)
 39-2           SUBCHAPTER J.  PROHIBITED PRACTICES AND DISCIPLINARY
 39-3                                PROCEDURES
 39-4          Sec. 1001.451.  DISCIPLINARY POWERS OF BOARD. On a
 39-5    determination that a ground for disciplinary action exists under
 39-6    Section 1001.452, the board may:
 39-7                (1)  deny an application for a license;
 39-8                (2)  revoke, suspend, or refuse to renew a license;
 39-9                (3)  probate the suspension of a license; or
39-10                (4)  formally or informally reprimand a license holder.
39-11    (V.A.C.S. Art. 3271a, Secs. 8(a) (part), 22(a) (part).)
39-12          Sec. 1001.452.  GROUNDS FOR DISCIPLINARY ACTION. A person is
39-13    subject to disciplinary action under Section 1001.451 for:
39-14                (1)  a violation of this chapter or a board rule;
39-15                (2)  fraud or deceit in obtaining a license;
39-16                (3)  a documented instance of retaliation by an
39-17    applicant against an individual who has served as a reference for
39-18    that applicant;
39-19                (4)  gross negligence, incompetency, or misconduct in
39-20    the practice of engineering; or
39-21                (5)  a failure to timely provide plans or
39-22    specifications to the Texas Department of Licensing and Regulation
39-23    as required by Article 9102, Revised Statutes.  (V.A.C.S.
39-24    Art. 3271a, Secs. 8(a) (part), 22(a) (part).)
39-25          Sec. 1001.453.  REVIEW OF LICENSE HOLDER'S STATUS. (a)  The
39-26    board by rule may review the status of a license holder the board
39-27    believes:
 40-1                (1)  may have been issued a license through fraud or
 40-2    error; or
 40-3                (2)  may constitute a threat to the public health,
 40-4    safety, or welfare.
 40-5          (b)  The board may suspend or revoke a license held by a
 40-6    person whose status is reviewed under this section.  (V.A.C.S.
 40-7    Art. 3271a, Sec. 22(e).)
 40-8          Sec. 1001.454.  RIGHT TO HEARING. (a)  If the board proposes
 40-9    to suspend or revoke a person's license, the person is entitled to
40-10    a hearing.
40-11          (b)  Proceedings for the suspension or revocation of a
40-12    license are governed by Chapter 2001, Government Code.  (V.A.C.S.
40-13    Art. 3271a, Sec. 22(c).)
40-14          Sec. 1001.455.  APPEAL OF LICENSE REVOCATION. A person whose
40-15    license has been revoked may file suit to annul or vacate the
40-16    board's order revoking the license.  The person may file the suit
40-17    in the district court of the county in which:
40-18                (1)  the person resides; or
40-19                (2)  the alleged conduct that is the ground for
40-20    revocation occurred.  (V.A.C.S. Art. 3271a, Sec. 22(b).)
40-21          Sec. 1001.456.  REISSUANCE OF REVOKED LICENSE. The board may
40-22    reissue a license to a person whose license has been revoked if the
40-23    board has sufficient reason to reissue the license. At least six
40-24    board members must vote for reissuance of the license. A new
40-25    license may be issued in accordance with board rules.  (V.A.C.S.
40-26    Art. 3271a, Sec. 22(d) (part).)
40-27            (Sections 1001.457-1001.500 reserved for expansion)
 41-1                   SUBCHAPTER K.  ADMINISTRATIVE PENALTY
 41-2          Sec. 1001.501.  IMPOSITION OF ADMINISTRATIVE PENALTY. The
 41-3    board may impose an administrative penalty on a person who violates
 41-4    this chapter or a rule adopted or order issued under this chapter.
 41-5    (V.A.C.S. Art. 3271a, Sec. 22C(a) (part).)
 41-6          Sec. 1001.502.  AMOUNT OF ADMINISTRATIVE PENALTY. (a)  The
 41-7    amount of an administrative penalty may not exceed $3,000 for each
 41-8    violation. Each day a violation continues or occurs is a separate
 41-9    violation for purposes of imposing a penalty.
41-10          (b)  The amount of the penalty shall be based on:
41-11                (1)  the seriousness of the violation, including:
41-12                      (A)  the nature, circumstances, extent, and
41-13    gravity of the prohibited act; and
41-14                      (B)  the hazard or potential hazard created to
41-15    the health, safety, or economic welfare of the public;
41-16                (2)  the economic harm to property or the environment
41-17    caused by the violation;
41-18                (3)  the history of previous violations;
41-19                (4)  the amount necessary to deter a future violation;
41-20                (5)  efforts or resistance to efforts to correct the
41-21    violation; and
41-22                (6)  any other matter that justice may require.
41-23          (c)  The board may include in the amount of the penalty the
41-24    actual costs of investigating and prosecuting the violation.
41-25    (V.A.C.S. Art. 3271a, Secs. 22C(a) (part), (b), (c).)
41-26          Sec. 1001.503.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.
41-27    (a)  Not later than the 30th day after the date the board's order
 42-1    becomes final, the person shall:
 42-2                (1)  pay the administrative penalty;
 42-3                (2)  pay the penalty and file a petition for judicial
 42-4    review contesting the occurrence of the violation, the amount of
 42-5    the penalty, or both; or
 42-6                (3)  without paying the penalty, file a petition for
 42-7    judicial review contesting the occurrence of the violation, the
 42-8    amount of the penalty, or both.
 42-9          (b)  Within the 30-day period, a person who acts under
42-10    Subsection (a)(3) may:
42-11                (1)  stay enforcement of the penalty by:
42-12                      (A)  paying the penalty to the court for
42-13    placement in an escrow account; or
42-14                      (B)  giving to the court a supersedeas bond that
42-15    is approved by the court and that is:
42-16                            (i)  for the amount of the penalty; and
42-17                            (ii)  effective until judicial review of
42-18    the board's order is final; or
42-19                (2)  request the court to stay enforcement of the
42-20    penalty by:
42-21                      (A)  filing with the court an affidavit of the
42-22    person stating that the person is financially unable to pay the
42-23    penalty and is financially unable to give the supersedeas bond; and
42-24                      (B)  giving a copy of the affidavit to the
42-25    executive director by certified mail.
42-26          (c)  If the executive director receives a copy of an
42-27    affidavit under Subsection (b)(2), the executive director may file
 43-1    with the court a contest to the affidavit not later than the fifth
 43-2    day after the date the copy is received.
 43-3          (d)  The court shall hold a hearing on the facts alleged in
 43-4    the affidavit as soon as practicable and shall stay enforcement of
 43-5    the penalty on finding that the alleged facts are true. The person
 43-6    who files an affidavit has the burden of proving that the person is
 43-7    financially unable to pay the penalty or give a supersedeas bond.
 43-8    (V.A.C.S. Art. 3271a, Secs. 22C(e), (f), (g).)
 43-9          Sec. 1001.504.  COLLECTION OF PENALTY. If the person does not
43-10    pay the administrative penalty and the enforcement of the penalty
43-11    is not stayed, the executive director may refer the matter to the
43-12    attorney general for collection. (V.A.C.S. Art. 3271a, Sec.
43-13    22C(h).)
43-14          Sec. 1001.505.  DETERMINATION BY COURT. (a)  If a court
43-15    sustains the determination that a violation occurred, the court may
43-16    uphold or reduce the amount of the administrative penalty and order
43-17    the person to pay the full or reduced penalty.
43-18          (b)  If a court does not sustain the determination that a
43-19    violation occurred, the court shall order that an administrative
43-20    penalty is not owed.  (V.A.C.S. Art. 3271a, Sec. 22C(j).)
43-21          Sec. 1001.506.  REMITTANCE OF PENALTY AND INTEREST. (a)  If,
43-22    after judicial review, the administrative penalty  is reduced or
43-23    not imposed by the court, the court shall:
43-24                (1)  order the appropriate amount, plus accrued
43-25    interest, be remitted to the person if the person paid the penalty;
43-26    or
43-27                (2)  order the release of the bond:
 44-1                      (A)  if the person gave a supersedeas bond and
 44-2    the penalty is not upheld by the court; or
 44-3                      (B)  after the person pays the penalty if the
 44-4    person gave a supersedeas bond and the penalty is reduced.
 44-5          (b)  The interest paid under Subsection (a)(1) is at the rate
 44-6    charged on loans to depository institutions by the New York Federal
 44-7    Reserve Bank.  The interest shall be paid for the period beginning
 44-8    on the date the penalty is paid and ending on the date the penalty
 44-9    is remitted.  (V.A.C.S. Art. 3271a, Sec. 22C(k).)
44-10          Sec. 1001.507.  DISPOSITION OF PENALTY. The part of an
44-11    administrative penalty that represents the costs incurred by the
44-12    board in investigating and prosecuting the violation may be
44-13    appropriated only to the board to reimburse the board for
44-14    performance of its regulatory functions.  (V.A.C.S. Art. 3271a,
44-15    Sec. 22C(l) (part).)
44-16          Sec. 1001.508.  ADMINISTRATIVE PROCEDURE. (a)  A proceeding
44-17    under this subchapter is subject to Chapter 2001, Government Code.
44-18          (b)  The board shall adopt rules of procedure for imposing an
44-19    administrative penalty. The rules must conform to the requirements
44-20    of Chapter 2001, Government Code.  (V.A.C.S. Art. 3271a, Secs.
44-21    22C(d), (m).)
44-22            (Sections 1001.509-1001.550 reserved for expansion)
44-23         SUBCHAPTER L.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
44-24          Sec. 1001.551.  INJUNCTION. (a)  In addition to any other
44-25    action authorized by law, the board may bring an action in the
44-26    board's name to enjoin a person from violating  this chapter or a
44-27    board rule.
 45-1          (b)  An action under this section must be brought in a
 45-2    district court of Travis County.
 45-3          (c)  To sustain an action under this section, the board is
 45-4    not required to allege or prove that:
 45-5                (1)  an adequate remedy at law does not exist; or
 45-6                (2)  substantial or irreparable damage would result
 45-7    from the continued violation.
 45-8          (d)  In an action for an injunction under this section, the
 45-9    defendant may assert and prove as a complete defense to the action
45-10    that the board deprived the defendant of a license by a board
45-11    action or proceeding that was:
45-12                (1)  arbitrary or capricious;
45-13                (2)  contrary to law; or
45-14                (3)  conducted without due process of law.
45-15          (e)  Either party to an action under this section may appeal
45-16    to the appellate court with jurisdiction of the action.  (V.A.C.S.
45-17    Art. 3271a, Secs. 8(a) (part), 8a.)
45-18          Sec. 1001.552.  CRIMINAL PENALTY. (a)  A person commits an
45-19    offense if the person:
45-20                (1)  engages in the practice of engineering without
45-21    being licensed or exempted from the licensing requirement under
45-22    this chapter;
45-23                (2)  violates this chapter;
45-24                (3)  presents or attempts to use as the person's own
45-25    the license or seal of another; or
45-26                (4)  gives false  evidence of any kind to the board or
45-27    a board member in obtaining a license.
 46-1          (b)  An offense under this section is a Class A misdemeanor.
 46-2    (V.A.C.S. Art. 3271a, Sec. 23(a).)
 46-3          Sec. 1001.553.  REPORT OF VIOLATION. A public official shall
 46-4    report a violation of this chapter to the proper authorities.
 46-5    (V.A.C.S. Art. 3271a, Sec. 15(c) (part).)
 46-6          Sec. 1001.554.  PRESENTATION OF COMPLAINTS BY BOARD;
 46-7    ASSISTANCE AT TRIAL. (a)  A member of the board may present to a
 46-8    prosecuting officer a complaint relating to a violation of this
 46-9    chapter.
46-10          (b)  The board through its members, officers, counsel, and
46-11    agents and subject to the control of the prosecuting officer may
46-12    assist in the trial of a case involving an alleged violation of
46-13    this chapter.  (V.A.C.S. Art. 3271a, Sec. 23(b) (part).)
46-14          Sec. 1001.555.  ATTORNEY GENERAL AS LEGAL ADVISOR;
46-15    REPRESENTATION BY ATTORNEY GENERAL. (a)  The attorney general
46-16    shall:
46-17                (1)  act as legal advisor of the board;
46-18                (2)  provide legal assistance to the board as necessary
46-19    to enforce this chapter and make it effective; and
46-20                (3)  represent the board in an action brought to
46-21    enforce this chapter.
46-22          (b)  This section does not affect the duties of local
46-23    prosecuting officers.  (V.A.C.S. Art. 3271a, Secs. 8(a) (part),
46-24    23(c).)
46-25          Sec. 1001.556.  APPEAL BOND. The board is not required to
46-26    give an appeal bond in a cause arising under this chapter.
46-27    (V.A.C.S. Art. 3271a, Sec. 8(a) (part).)
 47-1                (Chapters 1002-1050 reserved for expansion)
 47-2       SUBTITLE B.  REGULATION OF ARCHITECTURE AND RELATED PRACTICES
 47-3                         CHAPTER 1051.  ARCHITECTS
 47-4                     SUBCHAPTER A.  GENERAL PROVISIONS
 47-5    Sec. 1051.001.  DEFINITIONS 
 47-6    Sec. 1051.002.  EFFECT ON MUNICIPALITY 
 47-7    Sec. 1051.003.  ENFORCEMENT BY CERTAIN PUBLIC OFFICIALS 
 47-8    Sec. 1051.004.  APPLICATION OF SUNSET ACT 
 47-9            (Sections 1051.005-1051.050 reserved for expansion)
47-10                         SUBCHAPTER B.  EXEMPTIONS
47-11    Sec. 1051.051.  ACTIVITIES OF LICENSED ENGINEER 
47-12    Sec. 1051.052.  ACTIVITIES OF ARCHITECT OR ENGINEER
47-13                      EMPLOYEE 
47-14    Sec. 1051.053.  LANDSCAPE ARCHITECTURE 
47-15    Sec. 1051.054.  INTERIOR DESIGN 
47-16    Sec. 1051.055.  EMPLOYEE OF CERTAIN UTILITIES OR AFFILIATES 
47-17    Sec. 1051.056.  ACTIVITIES OF CERTAIN PERSONS NOT REPRESENTED
47-18                      TO BE ARCHITECTS 
47-19            (Sections 1051.057-1051.100 reserved for expansion)
47-20           SUBCHAPTER C.  TEXAS BOARD OF ARCHITECTURAL EXAMINERS
47-21    Sec. 1051.101.  BOARD MEMBERSHIP 
47-22    Sec. 1051.102.  ELIGIBILITY OF PUBLIC MEMBERS 
47-23    Sec. 1051.103.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS 
47-24    Sec. 1051.104.  TERMS; VACANCY 
47-25    Sec. 1051.105.  GROUNDS FOR REMOVAL 
47-26    Sec. 1051.106.  PER DIEM; REIMBURSEMENT 
47-27    Sec. 1051.107.  OFFICERS 
 48-1    Sec. 1051.108.  MEETINGS 
 48-2    Sec. 1051.109.  OFFICE LOCATION 
 48-3    Sec. 1051.110.  BOARD MEMBER ACTIVITIES 
 48-4    Sec. 1051.111.  FILING OF OATH 
 48-5            (Sections 1051.112-1051.150 reserved for expansion)
 48-6              SUBCHAPTER D.  EXECUTIVE DIRECTOR AND PERSONNEL
 48-7    Sec. 1051.151.  EXECUTIVE DIRECTOR; DUTIES REGARDING MONEY 
 48-8    Sec. 1051.152.  PERSONNEL 
 48-9    Sec. 1051.153.  DIVISION OF RESPONSIBILITIES 
48-10    Sec. 1051.154.  QUALIFICATIONS AND STANDARDS OF CONDUCT
48-11                      INFORMATION 
48-12    Sec. 1051.155.  CAREER LADDER PROGRAM; PERFORMANCE
48-13                      EVALUATIONS 
48-14    Sec. 1051.156.  EQUAL EMPLOYMENT OPPORTUNITY POLICY;
48-15                      REPORT 
48-16            (Sections 1051.157-1051.200 reserved for expansion)
48-17                  SUBCHAPTER E.  BOARD POWERS AND DUTIES
48-18    Sec. 1051.201.  SCOPE OF ADMINISTRATIVE AUTHORITY 
48-19    Sec. 1051.202.  GENERAL RULEMAKING AUTHORITY 
48-20    Sec. 1051.203.  RULES RESTRICTING ADVERTISING OR
48-21                      COMPETITIVE BIDDING 
48-22    Sec. 1051.204.  FEES 
48-23    Sec. 1051.205.  FEE INCREASE 
48-24    Sec. 1051.206.  EXAMINATION FEE SCHOLARSHIPS 
48-25    Sec. 1051.207.  SUBPOENA 
48-26    Sec. 1051.208.  PUBLIC RECORDS 
48-27    Sec. 1051.209.  BOARD SEAL 
 49-1    Sec. 1051.210.  DESIGN AND APPROVAL OF ARCHITECT'S SEAL 
 49-2            (Sections 1051.211-1051.250 reserved for expansion)
 49-3              SUBCHAPTER F.  PUBLIC INTEREST INFORMATION AND
 49-4                           COMPLAINT PROCEDURES
 49-5    Sec. 1051.251.  PUBLIC INTEREST INFORMATION 
 49-6    Sec. 1051.252.  COMPLAINTS 
 49-7    Sec. 1051.253.  COMPLAINT INFORMATION 
 49-8    Sec. 1051.254.  PUBLIC PARTICIPATION 
 49-9            (Sections 1051.255-1051.300 reserved for expansion)
49-10                 SUBCHAPTER G.  REGISTRATION REQUIREMENTS
49-11    Sec. 1051.301.  REGISTRATION REQUIRED 
49-12    Sec. 1051.302.  USE OF ARCHITECT'S SEAL 
49-13    Sec. 1051.303.  CERTAIN PLANS OR SPECIFICATIONS TO BE
49-14                      PREPARED ONLY BY ARCHITECT 
49-15    Sec. 1051.304.  EXAMINATION; ISSUANCE OF CERTIFICATE 
49-16    Sec. 1051.305.  ELIGIBILITY AND APPLICATION FOR EXAMINATION 
49-17    Sec. 1051.306.  EXAMINATION RESULTS 
49-18    Sec. 1051.307.  RECIPROCITY 
49-19            (Sections 1051.308-1051.350 reserved for expansion)
49-20           SUBCHAPTER H.  RENEWAL OF CERTIFICATE OF REGISTRATION
49-21    Sec. 1051.351.  ANNUAL RENEWAL REQUIRED 
49-22    Sec. 1051.352.  NOTICE OF EXPIRATION 
49-23    Sec. 1051.353.  PROCEDURE FOR RENEWAL 
49-24    Sec. 1051.354.  FEE EXEMPTION FOR MILITARY PERSONNEL 
49-25    Sec. 1051.355.  INACTIVE STATUS 
49-26    Sec. 1051.356.  CONTINUING EDUCATION 
49-27            (Sections 1051.357-1051.400 reserved for expansion)
 50-1                  SUBCHAPTER I.  DISCIPLINARY PROCEDURES
 50-2    Sec. 1051.401.  DISCIPLINARY POWERS OF BOARD 
 50-3    Sec. 1051.402.  GROUNDS FOR DISCIPLINARY ACTION 
 50-4    Sec. 1051.403.  RIGHT TO HEARING; APPEAL 
 50-5            (Sections 1051.404-1051.450 reserved for expansion)
 50-6                   SUBCHAPTER J.  ADMINISTRATIVE PENALTY
 50-7    Sec. 1051.451.  IMPOSITION OF ADMINISTRATIVE PENALTY 
 50-8    Sec. 1051.452.  AMOUNT OF ADMINISTRATIVE PENALTY 
 50-9    Sec. 1051.453.  REPORT AND NOTICE OF VIOLATION AND
50-10                      ADMINISTRATIVE PENALTY 
50-11    Sec. 1051.454.  ADMINISTRATIVE PENALTY TO BE PAID OR
50-12                      HEARING REQUESTED 
50-13    Sec. 1051.455.  HEARING 
50-14    Sec. 1051.456.  NOTICE OF BOARD ORDER 
50-15    Sec. 1051.457.  OPTIONS FOLLOWING BOARD ORDER: PAY OR
50-16                      APPEAL 
50-17    Sec. 1051.458.  COLLECTION OF ADMINISTRATIVE PENALTY 
50-18    Sec. 1051.459.  JUDICIAL REVIEW 
50-19    Sec. 1051.460.  REMITTANCE OF ADMINISTRATIVE PENALTY
50-20                      AND INTEREST 
50-21            (Sections 1051.461-1051.500 reserved for expansion)
50-22                    SUBCHAPTER K.  OTHER PENALTIES AND
50-23                          ENFORCEMENT PROVISIONS
50-24    Sec. 1051.501.  GENERAL ENFORCEMENT AUTHORITY 
50-25    Sec. 1051.502.  INJUNCTIVE RELIEF 
50-26    Sec. 1051.503.  CRIMINAL PENALTY 
50-27    Sec. 1051.504.  CUMULATIVE EFFECT OF PROVISIONS 
 51-1                         CHAPTER 1051.  ARCHITECTS
 51-2                     SUBCHAPTER A.  GENERAL PROVISIONS
 51-3          Sec. 1051.001.  DEFINITIONS.  In this chapter:
 51-4                (1)  "Architect" means a person registered under this
 51-5    chapter to engage in the practice of architecture.
 51-6                (2)  "Board" means the Texas Board of Architectural
 51-7    Examiners.
 51-8                (3)  "Practice of architecture" means a service or
 51-9    creative work that involves the application of the art and science
51-10    of developing design concepts, planning for functional
51-11    relationships and intended uses, and establishing the form,
51-12    appearance, aesthetics, and construction details for the
51-13    construction, enlargement, or alteration of a building or environs,
51-14    the proper application of which requires education, training, and
51-15    experience in those matters.  (V.A.C.S. Art. 249a, Sec. 10(a)
51-16    (part); New.)
51-17          Sec. 1051.002.  EFFECT ON MUNICIPALITY.  This chapter does
51-18    not:
51-19                (1)  preempt a municipal ordinance; or
51-20                (2)  restrict or expand the authority of a
51-21    municipality.  (V.A.C.S. Art. 249a, Sec. 17(b).)
51-22          Sec. 1051.003.  ENFORCEMENT BY CERTAIN PUBLIC OFFICIALS.  (a)
51-23    A public official of this state or of a political subdivision of
51-24    this state who is responsible for enforcing laws that affect the
51-25    practice of architecture may accept an architectural plan,
51-26    specification, or other related document only if the plan,
51-27    specification, or document is prepared by an architect, as
 52-1    evidenced by the architect's seal.
 52-2          (b)  Subsection (a) does not apply to a plan, specification,
 52-3    or document that is subject to an exemption from this chapter.
 52-4    (V.A.C.S. Art. 249a, Sec. 17(a) (part).)
 52-5          Sec. 1051.004.  APPLICATION OF SUNSET ACT.  The Texas Board
 52-6    of Architectural Examiners is subject to Chapter 325, Government
 52-7    Code (Texas Sunset Act).  Unless continued in existence as provided
 52-8    by that chapter, the board is abolished and this chapter expires
 52-9    September 1, 2003.  (V.A.C.S. Art. 249a, Sec. 2a.)
52-10            (Sections 1051.005-1051.050 reserved for expansion)
52-11                         SUBCHAPTER B.  EXEMPTIONS
52-12          Sec. 1051.051.  ACTIVITIES OF LICENSED ENGINEER.  (a)  This
52-13    chapter and any rule adopted under this chapter do not limit the
52-14    right of an engineer licensed under Chapter 1001 to perform an act,
52-15    service, or work within the scope of the practice of engineering as
52-16    defined by that chapter.
52-17          (b)  This chapter does not prohibit an engineer licensed
52-18    under Chapter 1001 from:
52-19                (1)  planning and supervising work on:
52-20                      (A)  a construction project primarily intended
52-21    for engineering use, including a railroad, hydroelectric work, or
52-22    industrial plant; or
52-23                      (B)  a structure incidental to a construction
52-24    project described by Paragraph (A); or
52-25                (2)  planning, designing, or supervising the
52-26    mechanical, electrical, or structural features of a building.
52-27          (c)  This chapter does not prohibit an engineer who has an
 53-1    architectural engineering degree from a public or private college
 53-2    or university from using the title "architectural engineer."
 53-3    (V.A.C.S. Art. 249a, Secs. 10(b) (part), (g), (j); 16(c).)
 53-4          Sec. 1051.052.  ACTIVITIES OF ARCHITECT OR ENGINEER EMPLOYEE.
 53-5    This chapter does not limit a drafter, clerk of the works,
 53-6    superintendent, or other employee of an architect or engineer from
 53-7    acting under the architect's or engineer's instructions, control,
 53-8    or supervision.  (V.A.C.S. Art. 249a, Sec. 10(c).)
 53-9          Sec. 1051.053.  LANDSCAPE ARCHITECTURE.  This chapter does
53-10    not:
53-11                (1)  limit the practice of landscape architecture; or
53-12                (2)  prohibit the use of the title "Landscape
53-13    Architect" by a qualified person. (V.A.C.S. Art. 249a, Sec. 10(e).)
53-14          Sec. 1051.054.  INTERIOR DESIGN.  This chapter does not:
53-15                (1)  limit the practice of interior design; or
53-16                (2)  prohibit the use of the title "Interior Designer"
53-17    by a qualified person. (V.A.C.S. Art. 249a, Sec. 10(f).)
53-18          Sec. 1051.055.  EMPLOYEE OF CERTAIN UTILITIES OR AFFILIATES.
53-19    (a) This chapter does not limit the activities of a regular
53-20    full-time employee of a privately owned public utility or
53-21    cooperative utility or of the utility's affiliate who performs
53-22    services exclusively for the utility or the affiliate.
53-23          (b)  This chapter does not limit the use of a job title or
53-24    personnel classification by an employee described by Subsection (a)
53-25    if the employee does not use:
53-26                (1)  the title or classification in connection with an
53-27    offer to the public to perform architectural services; and
 54-1                (2)  a name, title, or other word that tends to convey
 54-2    the impression that a person not registered under this chapter is
 54-3    offering to the public to perform architectural services.
 54-4    (V.A.C.S. Art. 249a, Sec. 10(d).)
 54-5          Sec. 1051.056.  ACTIVITIES OF CERTAIN PERSONS NOT REPRESENTED
 54-6    TO BE ARCHITECTS. (a)  This chapter does not apply to a person who
 54-7    does not represent that the person is an architect or architectural
 54-8    designer, or use another business or professional title that uses a
 54-9    form of the word "architect," and who:
54-10                (1)  engages in or is employed in the practice of
54-11    architecture solely as an officer or employee of the United States;
54-12                (2)  is a legally qualified architect residing in
54-13    another state or country who:
54-14                      (A)  does not open or maintain an office in this
54-15    state; and
54-16                      (B)  complies with the requirements of Subsection
54-17    (b);
54-18                (3)  prepares architectural plans and specifications
54-19    for or observes or supervises the alteration of a building, unless
54-20    the alteration involves a substantial structural or exitway change
54-21    to the building; or
54-22                (4)  prepares the architectural plans and
54-23    specifications for or observes or supervises the construction,
54-24    enlargement, or alteration of a privately owned building that is:
54-25                      (A)  a building used primarily for:
54-26                            (i)  farm, ranch, or agricultural purposes;
54-27    or
 55-1                            (ii)  storage of raw agricultural
 55-2    commodities;
 55-3                      (B)  a single-family or dual-family dwelling or a
 55-4    building or appurtenance associated with the dwelling;
 55-5                      (C)  a multifamily dwelling not exceeding a
 55-6    height of two stories and not exceeding 16 units per building; or
 55-7                      (D)  a building not exceeding a height of two
 55-8    stories and not exceeding a square footage of 20,000 square feet.
 55-9          (b)  A person described by Subsection (a)(2) who agrees to
55-10    perform or represents that the person is able to perform a
55-11    professional service involved in the practice of architecture may
55-12    perform an architectural service in this state only if, in
55-13    performing the service, the person:
55-14                (1)  employs an architect who is a resident of this
55-15    state as a consultant; or
55-16                (2)  acts as a consultant of an architect in this
55-17    state. (V.A.C.S. Art. 249a, Sec. 14.)
55-18            (Sections 1051.057-1051.100 reserved for expansion)
55-19           SUBCHAPTER C.  TEXAS BOARD OF ARCHITECTURAL EXAMINERS
55-20          Sec. 1051.101.  BOARD MEMBERSHIP.  (a)  The Texas Board of
55-21    Architectural Examiners consists of nine members appointed by the
55-22    governor with the advice and consent of the senate as follows:
55-23                (1)  four architect members;
55-24                (2)  one interior designer member registered under
55-25    Chapter  1053;
55-26                (3)  one landscape architect member registered under
55-27    Chapter 1052; and
 56-1                (4)  three members who represent the public, at least
 56-2    one of whom is a person with a physical disability.
 56-3          (b)  Not more than one board member may be:
 56-4                (1)  a stockholder or owner of an interest in a school
 56-5    or college that teaches architecture, interior design, or landscape
 56-6    architecture; or
 56-7                (2)  an officer or a member of the faculty or the
 56-8    governing board of a school or college that teaches architecture,
 56-9    interior design, or landscape architecture.
56-10          (c)  Except as provided by Subsection (a)(4), appointments to
56-11    the board shall be made without regard to the race, color,
56-12    disability, sex, religion, age, or national origin of the
56-13    appointee.  (V.A.C.S. Art. 249a, Secs. 2(a), (b) (part), (c), (e).)
56-14          Sec. 1051.102.  ELIGIBILITY OF PUBLIC MEMBERS.  A person is
56-15    not eligible for appointment as a public member of the board if the
56-16    person or the person's spouse:
56-17                (1)  is registered, certified, or licensed by an
56-18    occupational regulatory agency in the field of architecture,
56-19    interior design, or landscape architecture;
56-20                (2)  is employed by or participates in the management
56-21    of a business entity or other organization regulated by the board
56-22    or receiving funds from the board;
56-23                (3)  owns or controls, directly or indirectly, more
56-24    than a 10 percent interest in a business entity or other
56-25    organization regulated by the board or receiving funds from the
56-26    board; or
56-27                (4)  uses or receives a substantial amount of tangible
 57-1    goods, services, or funds from the board, other than compensation
 57-2    or reimbursement authorized by law for board membership,
 57-3    attendance, or expenses.  (V.A.C.S. Art. 249a, Sec. 2(f).)
 57-4          Sec. 1051.103.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS.  (a)
 57-5    In this section, "Texas trade association" means a nonprofit,
 57-6    cooperative, and voluntarily joined association of business or
 57-7    professional competitors in this state designed to assist its
 57-8    members and its industry or profession in dealing with mutual
 57-9    business or professional problems and in promoting their common
57-10    interest.
57-11          (b)  An officer, employee, or paid consultant of a Texas
57-12    trade association in the field of architecture, interior design, or
57-13    landscape architecture may not be a member of the board and may not
57-14    be an employee of the board who is exempt from the state's position
57-15    classification plan or is compensated at or above the amount
57-16    prescribed by the General Appropriations Act for salary group B9 of
57-17    the position classification salary schedule.
57-18          (c)  A person who is the spouse of an officer, manager, or
57-19    paid consultant of a Texas trade association in the field of
57-20    architecture, interior design, or landscape architecture may not be
57-21    a member of the board and may not be an employee of the board who
57-22    is exempt from the state's position classification plan or is
57-23    compensated at or above the amount prescribed by the General
57-24    Appropriations Act for salary group B9 of the position
57-25    classification salary schedule.
57-26          (d)  A person may not serve as a board member or act as the
57-27    general counsel to the board if the person is required to register
 58-1    as a lobbyist under Chapter 305, Government Code, because of the
 58-2    person's activities for compensation on behalf of a profession
 58-3    related to the board's operation.  (V.A.C.S. Art. 249a, Secs. 2(g),
 58-4    (h), (i); 4(b) (part).)
 58-5          Sec. 1051.104.  TERMS; VACANCY.  (a)  Board members serve
 58-6    staggered six-year terms.  The terms of three members expire on
 58-7    January 31 of each odd-numbered year.
 58-8          (b)  If a vacancy occurs during a member's term, the governor
 58-9    shall appoint a replacement to fill the unexpired term.  (V.A.C.S.
58-10    Art. 249a, Sec. 2(b) (part).)
58-11          Sec. 1051.105.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
58-12    removal from the board that a member:
58-13                (1)  does not have at the time of appointment the
58-14    qualifications required by Section 1051.101 or 1051.102;
58-15                (2)  does not maintain during service on the board the
58-16    qualifications required by Section 1051.101 or 1051.102;
58-17                (3)  violates a prohibition established by Section
58-18    1051.103;
58-19                (4)  cannot, because of illness or disability,
58-20    discharge the member's duties for a substantial part of the
58-21    member's term; or
58-22                (5)  is absent from more than half of the regularly
58-23    scheduled board meetings that the member is eligible to attend
58-24    during a calendar year, unless the absence is excused by a majority
58-25    vote of the board.
58-26          (b)  The validity of an action of the board is not affected
58-27    by the fact that it is taken when a ground for removal of a board
 59-1    member exists.
 59-2          (c)  If the executive director has knowledge that a potential
 59-3    ground for removal exists, the executive director shall notify the
 59-4    presiding officer of the board of the ground.  The presiding
 59-5    officer shall then notify the governor that a potential ground for
 59-6    removal exists.  (V.A.C.S. Art. 249a, Secs. 2(j), (k), (l).)
 59-7          Sec. 1051.106.  PER DIEM; REIMBURSEMENT.  (a)  A board member
 59-8    is entitled to receive a per diem for each day that the member
 59-9    engages in board business.
59-10          (b)  A board member is entitled to receive reimbursement for
59-11    travel expenses, including food, lodging, and transportation
59-12    expenses.  (V.A.C.S.  Art. 249a, Sec. 4A.)
59-13          Sec. 1051.107.  OFFICERS.  (a)  The governor shall designate
59-14    one board member as presiding officer to serve in that capacity at
59-15    the pleasure of the governor.
59-16          (b)  Each January, the board shall elect from its members an
59-17    assistant presiding officer.
59-18          (c)  The board shall appoint a secretary-treasurer of the
59-19    board to serve at the pleasure of the board.  The
59-20    secretary-treasurer may be, but is not required to be, a member of
59-21    the board.
59-22          (d)  Before discharging any duties as secretary-treasurer,
59-23    the secretary-treasurer must file with the comptroller a bond of
59-24    not less than $5,000 conditioned on the faithful performance of the
59-25    duties of the office.  The bond must be:
59-26                (1)  payable to the governor for the benefit of the
59-27    board;
 60-1                (2)  in a form approved by the attorney general;
 60-2                (3)  executed by a surety company; and
 60-3                (4)  approved by the board.
 60-4          (e)  The premium on the secretary-treasurer's bond shall be
 60-5    paid from the general revenue fund.   (V.A.C.S. Art. 249a, Sec.
 60-6    3(a) (part).)
 60-7          Sec. 1051.108.  MEETINGS.  (a)  The board shall hold at least
 60-8    two regular meetings each year at a time and place determined by
 60-9    the board to:
60-10                (1)  transact its business; and
60-11                (2)  examine each applicant for registration under this
60-12    chapter.
60-13          (b)  Special meetings of the board must be called by the
60-14    presiding officer or, if the presiding officer is absent from the
60-15    state or is unable to act, by the assistant presiding officer.
60-16    (V.A.C.S. Art. 249a, Secs. 5(a) (part), 6(a) (part).)
60-17          Sec. 1051.109.  OFFICE LOCATION.  The board shall maintain an
60-18    office in Austin. (V.A.C.S. Art. 249a, Sec. 4(b) (part).)
60-19          Sec. 1051.110.  BOARD MEMBER ACTIVITIES.  Membership on the
60-20    board does not prohibit a member from performing any work or
60-21    providing any service on a state, county, municipal, or other
60-22    public building or work for a fee or other direct compensation.
60-23    (V.A.C.S. Art. 249a, Sec. 2(d).)
60-24          Sec. 1051.111.  FILING OF OATH. Before assuming the duties of
60-25    office, each board member shall file with the secretary of state a
60-26    copy of the constitutional oath of office taken by the member.
60-27    (V.A.C.S. Art. 249a, Sec. 3(a) (part).)
 61-1            (Sections 1051.112-1051.150 reserved for expansion)
 61-2              SUBCHAPTER D.  EXECUTIVE DIRECTOR AND PERSONNEL
 61-3          Sec. 1051.151.  EXECUTIVE DIRECTOR; DUTIES REGARDING MONEY.
 61-4    (a)  The board may employ an executive director to conduct the
 61-5    affairs of the board under the board's direction.  The executive
 61-6    director shall receive a salary in an amount determined by the
 61-7    board.
 61-8          (b)  The executive director shall receive and account for any
 61-9    money derived, including any fee collected, under this chapter.
61-10    (V.A.C.S. Art. 249a, Secs. 4(a) (part), (b) (part).)
61-11          Sec. 1051.152.  PERSONNEL.  The board shall employ clerical
61-12    and other assistants as necessary to properly perform the board's
61-13    work.  (V.A.C.S. Art. 249a, Sec. 4(b) (part).)
61-14          Sec. 1051.153.  DIVISION OF RESPONSIBILITIES.  The board
61-15    shall develop and implement policies that clearly define the
61-16    respective responsibilities of the board and the staff of the
61-17    board.  (V.A.C.S. Art. 249a, Sec. 5A(e).)
61-18          Sec. 1051.154.  QUALIFICATIONS AND STANDARDS OF CONDUCT
61-19    INFORMATION.  The board shall provide, as often as necessary, to
61-20    its members and employees information regarding their:
61-21                (1)  qualifications for office or employment under this
61-22    chapter; and
61-23                (2)  responsibilities under applicable laws relating to
61-24    standards of conduct for state officers or employees.  (V.A.C.S.
61-25    Art. 249a, Sec. 5A(d).)
61-26          Sec. 1051.155.  CAREER LADDER PROGRAM; PERFORMANCE
61-27    EVALUATIONS.  (a)  The executive director or the executive
 62-1    director's designee shall develop an intra-agency career ladder
 62-2    program.  The program must require intra-agency postings of all
 62-3    nonentry level positions concurrently with any public posting.
 62-4          (b)  The executive director or the executive director's
 62-5    designee shall develop a system of annual performance evaluations.
 62-6    All merit pay for board employees must be based on the system
 62-7    established under this subsection.  (V.A.C.S. Art. 249a, Secs.
 62-8    5A(f), (g).)
 62-9          Sec. 1051.156.  EQUAL  EMPLOYMENT  OPPORTUNITY POLICY;
62-10    REPORT.  (a)  The executive director or the executive director's
62-11    designee shall prepare and maintain a written policy statement to
62-12    ensure implementation of an equal employment opportunity program
62-13    under which all personnel transactions are made without regard to
62-14    race, color, disability, sex, religion, age, or national origin.
62-15    The policy statement must include:
62-16                (1)  personnel policies, including policies relating to
62-17    recruitment, evaluation, selection, appointment, training, and
62-18    promotion of personnel;
62-19                (2)  a comprehensive analysis of the board workforce
62-20    that meets federal and state guidelines;
62-21                (3)  procedures by which a determination can be made of
62-22    significant underuse in the board workforce of all persons for whom
62-23    federal or state guidelines encourage a more equitable balance; and
62-24                (4)  reasonable methods to appropriately address those
62-25    areas of significant underuse.
62-26          (b)  A policy statement prepared under Subsection (a) must:
62-27                (1)  cover an annual period;
 63-1                (2)  be updated at least annually; and
 63-2                (3)  be filed with the governor.
 63-3          (c)  The governor shall deliver a biennial report to the
 63-4    legislature based on the information received under Subsection (b).
 63-5    The report may be made separately or as a part of other biennial
 63-6    reports made to the legislature.  (V.A.C.S. Art. 249a, Secs. 5A(a),
 63-7    (b), (c).)
 63-8            (Sections 1051.157-1051.200 reserved for expansion)
 63-9                  SUBCHAPTER E.  BOARD POWERS AND DUTIES
63-10          Sec. 1051.201.  SCOPE OF ADMINISTRATIVE AUTHORITY. The powers
63-11    granted and duties delegated to the board under this chapter are in
63-12    addition to the powers granted and duties delegated to the board
63-13    under Chapters 1052 and 1053.  (New.)
63-14          Sec. 1051.202.  GENERAL RULEMAKING AUTHORITY.   The board
63-15    shall adopt reasonable rules and bylaws as necessary to administer
63-16    or enforce this chapter, including rules regulating the practice of
63-17    architecture.  (V.A.C.S. Art. 249a, Secs. 3(b) (part), 5(b),
63-18    7A(g).)
63-19          Sec. 1051.203.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
63-20    BIDDING.  (a)  Except as provided by Subsection (b) or (c), the
63-21    board may not adopt a rule restricting advertising or competitive
63-22    bidding by a person regulated by the board.
63-23          (b)  The board may adopt rules restricting advertising or
63-24    competitive bidding to prohibit a false, misleading, or deceptive
63-25    practice.  A rule adopted under this subsection may not:
63-26                (1)  restrict the person's use of any advertising
63-27    medium;
 64-1                (2)  restrict the person's personal appearance or the
 64-2    use of the person's voice in an advertisement;
 64-3                (3)  relate to the size or duration of an advertisement
 64-4    by the person; or
 64-5                (4)  restrict the person's advertisement under a trade
 64-6    name.
 64-7          (c)  The board shall adopt rules to prevent a person
 64-8    regulated by the board from submitting a competitive bid to, or
 64-9    soliciting a competitive bid on behalf of, a governmental entity
64-10    that is prohibited by Subchapter A, Chapter 2254, Government Code,
64-11    from making a selection or awarding a contract on the basis of
64-12    competitive bids.  (V.A.C.S. Art. 249a, Sec. 5(d).)
64-13          Sec. 1051.204.  FEES.  (a)  The board may set a fee for a
64-14    board action involving an administrative expense in an amount that
64-15    is reasonable and necessary to cover the cost of administering this
64-16    chapter, unless the amount of the fee is set by this chapter or by
64-17    the General Appropriations Act.
64-18          (b)  The board shall set the required renewal fee for a
64-19    resident of this state in an amount that is equal to the amount
64-20    reasonable and necessary to cover administrative costs plus $10.
64-21    The required renewal fee for nonresidents shall be in an amount
64-22    determined by the board.
64-23          (c)  The board may accept payment of a fee by electronic
64-24    means.  The board may charge a fee to process the payment made by
64-25    electronic means.  The board shall set the processing fee in an
64-26    amount that is reasonably related to the expense incurred by the
64-27    board in processing the payment made by electronic means, not to
 65-1    exceed five percent of the amount of the fee for which the payment
 65-2    is made.  (V.A.C.S. Art. 249a, Secs. 3(h), 12(c).)
 65-3          Sec. 1051.205.  FEE INCREASE.  (a)  The fee for the issuance
 65-4    of a certificate to an applicant possessing a license or
 65-5    certificate to practice architecture in another state and the fee
 65-6    for the renewal of a certificate under this chapter is increased by
 65-7    $200.
 65-8          (b)  Of each fee increase collected, $50 shall be deposited
 65-9    in the foundation school fund and $150 shall be deposited in the
65-10    general revenue fund.  (V.A.C.S. Art. 249a, Secs. 4C(a), (b)
65-11    (part).)
65-12          Sec. 1051.206.  EXAMINATION FEE SCHOLARSHIPS.  (a)  The board
65-13    shall administer scholarships to applicants for examination under
65-14    this chapter in a manner the board determines best serves the
65-15    public purpose of:
65-16                (1)  promoting the professional needs of the state;
65-17                (2)  increasing the number of highly trained and
65-18    educated architects available to serve the residents of the state;
65-19                (3)  improving the state's business environment and
65-20    encouraging economic development; and
65-21                (4)  identifying, recognizing, and supporting
65-22    outstanding applicants who plan to pursue careers in architecture. 
65-23          (b)  In determining what best serves the public purpose of
65-24    the scholarships as described by Subsection (a), the board shall
65-25    consider at least the financial need of each person who applies for
65-26    a scholarship under this section.
65-27          (c)  The amount of the scholarship is the lesser of:
 66-1                (1)  $500; or
 66-2                (2)  the amount of the required examination fee.
 66-3          (d)  Scholarships under this section are funded by the $10
 66-4    added to each renewal fee under Section 1051.204(b).  The board may
 66-5    not use more than 15 percent of the amount appropriated to the
 66-6    board for scholarships under this section to pay the costs of
 66-7    administering the scholarships.  (V.A.C.S. Art. 249a, Secs. 7A(a)
 66-8    (part), (c), (d), (e), (f).)
 66-9          Sec. 1051.207.  SUBPOENA. (a)  The board may request and, if
66-10    necessary, compel by subpoena:
66-11                (1)  the attendance of witnesses for examination under
66-12    oath; and
66-13                (2)  the production for inspection or copying of
66-14    records, documents, and other evidence relevant to the
66-15    investigation of an alleged violation of this chapter.
66-16          (b)  The board, acting through the attorney general, may
66-17    bring an action to enforce a subpoena issued under Subsection (a)
66-18    against a person who fails to comply with the subpoena.
66-19          (c)  Venue for an action brought under Subsection (b) is in a
66-20    district court in:
66-21                (1)  Travis County; or
66-22                (2)  any county in which the board may conduct a
66-23    hearing.
66-24          (d)  The court shall order compliance with the subpoena if
66-25    the court finds that good cause exists to issue the subpoena.
66-26    (V.A.C.S. Art. 249a, Sec. 3(j).)
66-27          Sec. 1051.208.  PUBLIC RECORDS.  (a)  The secretary-treasurer
 67-1    of the board shall keep records of all board proceedings and all
 67-2    money received or spent by the board.
 67-3          (b)  The records must include:
 67-4                (1)  a record of:
 67-5                      (A)  each issuance or renewal of a certificate of
 67-6    registration; and
 67-7                      (B)  each refusal to issue or renew a certificate
 67-8    of registration;
 67-9                (2)  the name and, if known, the place of residence of
67-10    each architect; and
67-11                (3)  the date and serial number of the architect's
67-12    certificate of registration.
67-13          (c)  The records shall be open to public inspection at all
67-14    reasonable times.  (V.A.C.S. Art. 249a, Sec. 3(c).)
67-15          Sec. 1051.209.  BOARD SEAL.  (a)  The board shall adopt a
67-16    seal and shall use the seal on official documents.
67-17          (b)  The design of the seal must include a five-pointed star
67-18    with a circular border and the words "Texas Board of Architectural
67-19    Examiners" within the border.  (V.A.C.S. Art. 249a, Sec. 3(b)
67-20    (part).)
67-21          Sec. 1051.210.  DESIGN AND APPROVAL OF ARCHITECT'S SEAL.
67-22    (a)  The board shall prescribe and approve the seal to be used by
67-23    an architect.
67-24          (b)  The design of the seal must be the same as the design
67-25    used by the board, except that the words "Registered Architect,
67-26    State of Texas" must be used instead of "Texas Board of
67-27    Architectural Examiners."  (V.A.C.S. Art. 249a, Sec. 9 (part).)
 68-1            (Sections 1051.211-1051.250 reserved for expansion)
 68-2              SUBCHAPTER F.  PUBLIC INTEREST INFORMATION AND
 68-3                           COMPLAINT PROCEDURES
 68-4          Sec. 1051.251.  PUBLIC INTEREST INFORMATION.  (a)  The board
 68-5    shall prepare information of public interest describing the
 68-6    functions of the board and the procedures by which complaints are
 68-7    filed with and resolved by the board.  The information must include
 68-8    information for prospective applicants regarding the qualifications
 68-9    and requirements for registration under this chapter.
68-10          (b)  The board shall make the information available to the
68-11    public and appropriate state agencies.  (V.A.C.S. Art. 249a, Sec.
68-12    12B(b).)
68-13          Sec. 1051.252.  COMPLAINTS.  The board by rule shall
68-14    establish methods by which consumers and service recipients are
68-15    notified of the name, mailing address, and telephone number of the
68-16    board for the purpose of directing complaints to the board.  The
68-17    board may provide for that notice:
68-18                (1)  on each registration form, application, or written
68-19    contract for services of a person regulated under this chapter;
68-20                (2)  on a sign prominently displayed in the place of
68-21    business of each person regulated under this chapter; or
68-22                (3)  in a bill for service provided by a person
68-23    regulated under this chapter.  (V.A.C.S. Art. 249a, Sec. 12B(a).)
68-24          Sec. 1051.253.  COMPLAINT INFORMATION. (a)  The board shall
68-25    keep an information file about each complaint filed with the board
68-26    that the board has authority to resolve.
68-27          (b)  If a written complaint is filed with the board that the
 69-1    board has the authority to resolve, the board, at least quarterly
 69-2    and until final disposition of the complaint, shall notify the
 69-3    parties to the complaint of the status of the complaint unless the
 69-4    notice would jeopardize an undercover investigation.  (V.A.C.S.
 69-5    Art. 249a, Sec. 5(e).)
 69-6          Sec. 1051.254.  PUBLIC PARTICIPATION.  (a)  The board shall
 69-7    develop and implement policies that provide the public with a
 69-8    reasonable opportunity to appear before the board.
 69-9          (b)  The board shall prepare and maintain a written plan that
69-10    describes how a person who does not speak English or who has a
69-11    physical, mental, or developmental disability may be provided
69-12    access to the board's programs.  (V.A.C.S. Art. 249a, Secs. 3(f),
69-13    (g).)
69-14            (Sections 1051.255-1051.300 reserved for expansion)
69-15                 SUBCHAPTER G.  REGISTRATION REQUIREMENTS
69-16          Sec. 1051.301.  REGISTRATION REQUIRED.  (a)  A person may not
69-17    engage in the practice of architecture or offer or attempt to
69-18    engage in the practice of architecture unless the person is
69-19    registered under this chapter.
69-20          (b)  A firm, partnership, corporation, or association,
69-21    including a firm, partnership, corporation, or joint stock
69-22    association engaged in the practice of engineering under Section
69-23    1001.405, may engage in the practice of architecture, represent to
69-24    the public that the entity is engaged in the practice of
69-25    architecture or is offering architectural services, or use the word
69-26    "architect" or "architecture" in any manner in its name only if any
69-27    practice of architecture or architectural service performed on
 70-1    behalf of the entity is performed by or through a person registered
 70-2    under this chapter.  (V.A.C.S. Art. 249a, Secs. 1 (part), 10(a)
 70-3    (part), (h), (i).)
 70-4          Sec. 1051.302.  USE OF ARCHITECT'S SEAL.  (a)  An architect
 70-5    shall maintain a seal as approved by the board and shall stamp or
 70-6    impress the seal on each drawing or specification issued from the
 70-7    architect's office for use in this state.
 70-8          (b)  A person may not use or attempt to use an architect's
 70-9    seal, a similar seal, or a replica of the seal, unless the use is
70-10    by or through an architect.
70-11          (c)  An architect may not permit a person who is not an
70-12    architect to use the architect's seal without the architect's
70-13    personal supervision.  (V.A.C.S. Art. 249a, Sec. 9 (part).)
70-14          Sec. 1051.303.  CERTAIN PLANS OR SPECIFICATIONS TO BE
70-15    PREPARED ONLY BY ARCHITECT.  (a)  An architectural plan or
70-16    specification for any of the following may be prepared only by an
70-17    architect:
70-18                (1)  a new building or modification of an existing
70-19    building intended for occupancy on a 24-hour basis by persons who
70-20    are receiving custodial care from the proprietor or operator of the
70-21    building, regardless of the number of stories or square footage of
70-22    the building;
70-23                (2)  a new building having construction costs exceeding
70-24    $100,000 that is to be:
70-25                      (A)  constructed and owned by a state agency, a
70-26    political subdivision of this state, or any other public entity in
70-27    this state; and
 71-1                      (B)  used for education, assembly, or office
 71-2    occupancy; or
 71-3                (3)  an alteration or addition having construction
 71-4    costs exceeding $50,000 that:
 71-5                      (A)  is to be made to an existing building that:
 71-6                            (i)  is owned by a state agency, a
 71-7    political subdivision of this state, or any other public entity in
 71-8    this state; and
 71-9                            (ii)  is or will be used for education,
71-10    assembly, or office occupancy; and
71-11                      (B)  requires the removal, relocation, or
71-12    addition of a wall or partition or the alteration or addition of an
71-13    exit.
71-14          (b)  This section does not prohibit an owner of a building
71-15    from choosing an architect or engineer as the prime design
71-16    professional for a building construction, alteration, or addition
71-17    project.  (V.A.C.S. Art. 249a, Secs. 15, 16(a) (part), (b).)
71-18          Sec. 1051.304.  EXAMINATION; ISSUANCE OF CERTIFICATE.  The
71-19    board shall:
71-20                (1)  examine each applicant for registration on any
71-21    architectural subject or procedure the board requires; and
71-22                (2)  issue a certificate of registration to each
71-23    applicant who passes the examination.  (V.A.C.S. Art. 249a, Secs.
71-24    6(a) (part), (b) (part).)
71-25          Sec. 1051.305.  ELIGIBILITY AND APPLICATION FOR EXAMINATION.
71-26    (a)  A person may apply for an examination under this chapter if
71-27    the person:
 72-1                (1)  is a graduate of a recognized university or
 72-2    college of architecture approved by the board; and
 72-3                (2)  has satisfactory experience in architecture, in an
 72-4    office or offices of one or more legally practicing architects, as
 72-5    prescribed by board rule.
 72-6          (b)  The applicant must:
 72-7                (1)  present to the board:
 72-8                      (A)  a diploma showing that the applicant meets
 72-9    the education requirement established by Subsection (a)(1); and
72-10                      (B)  evidence acceptable to the board that the
72-11    applicant meets the experience requirement established by
72-12    Subsection (a)(2); and
72-13                (2)  pay to the board a fee not to exceed $300 in an
72-14    amount set by the board as reasonable and necessary to cover the
72-15    cost of administering the examination.  (V.A.C.S. Art. 249a, Secs.
72-16    6(b) (part), 7.)
72-17          Sec. 1051.306.  EXAMINATION RESULTS.  (a)  The board shall
72-18    notify each examinee of the results of the examination within a
72-19    reasonable time not later than the 30th day after the date the
72-20    examination is administered.  If an examination is graded or
72-21    reviewed by a national testing service, the board shall notify each
72-22    examinee of the results of the examination not later than the 30th
72-23    day after the date the board receives the results from the testing
72-24    service.
72-25          (b)  If the notice of the results of an examination graded or
72-26    reviewed by a national testing service will be delayed for longer
72-27    than 90 days after the examination date, the board shall notify
 73-1    each examinee of the reason for the delay before the 90th day.
 73-2          (c)  If requested in writing by a person who fails the
 73-3    examination, the board shall provide to the person an analysis of
 73-4    the person's performance on the examination.  (V.A.C.S. Art. 249a,
 73-5    Secs. 6(b) (part), (c), (d).)
 73-6          Sec. 1051.307.  RECIPROCITY.  (a)  The board may waive any
 73-7    requirement for a certificate of registration for an applicant who
 73-8    holds a license or certificate of registration issued by another
 73-9    state that has:
73-10                (1)  licensing or registration requirements
73-11    substantially equivalent to the requirements of this state; and
73-12                (2)  legal requirements that extend similar privileges
73-13    to practice architecture in that other state to architects
73-14    registered in this state.
73-15          (b)  An applicant under this section must:
73-16                (1)  apply in the same manner and form as any other
73-17    applicant under this subchapter, except that the application must
73-18    be accompanied by a fee in an amount set by the board as reasonable
73-19    and necessary to cover the cost of processing and investigating the
73-20    application and issuing the certificate of registration; and
73-21                (2)  provide the board with documents and other
73-22    evidence that substantiate the applicant's qualifications.
73-23    (V.A.C.S. Art. 249a, Sec. 8.)
73-24            (Sections 1051.308-1051.350 reserved for expansion)
73-25           SUBCHAPTER H.  RENEWAL OF CERTIFICATE OF REGISTRATION
73-26          Sec. 1051.351.  ANNUAL RENEWAL REQUIRED.  (a)  An original
73-27    certificate of registration is valid for the balance of the current
 74-1    registration year and may be renewed annually.  A certificate of
 74-2    registration that has been renewed expires on the first anniversary
 74-3    of the renewal date.
 74-4          (b)  The board by rule may adopt a system under which
 74-5    certificates of registration expire on various dates during the
 74-6    year.  The board shall adjust the date for mailing notice of
 74-7    expiration and the period for renewal according to the system
 74-8    adopted by the board under this subsection.
 74-9          (c)  For a year in which the certificate of registration
74-10    expiration date is changed, renewal fees shall be prorated on a
74-11    monthly basis so that each certificate holder pays only that
74-12    portion of the fee that is allocable to the number  of months
74-13    during which the certificate is valid.  On renewal of the
74-14    certificate of registration on the new expiration date, the total
74-15    renewal fee is payable.  (V.A.C.S. Art. 249a, Secs. 6(b) (part),
74-16    11(a), 12(a), (d) (part), 12A.)
74-17          Sec. 1051.352.  NOTICE OF EXPIRATION.  Not later than the
74-18    31st day before the expiration date of a person's certificate of
74-19    registration, the board shall send written notice of the impending
74-20    expiration to the person at the person's last known address
74-21    according to board records.  (V.A.C.S. Art. 249a, Sec. 12(b).)
74-22          Sec. 1051.353.  PROCEDURE FOR RENEWAL.  (a)  A person may
74-23    renew an unexpired certificate of registration by:
74-24                (1)  paying the required renewal fee to the board
74-25    before the expiration date; and
74-26                (2)  submitting proof satisfactory to the board of
74-27    compliance with the board's continuing education requirement.
 75-1          (b)  A person whose certificate of registration has been
 75-2    expired for less than one year may renew the person's certificate
 75-3    of registration by:
 75-4                (1)  paying to the board:
 75-5                      (A)  any unpaid renewal fee; and
 75-6                      (B)  a penalty fee in an amount determined by the
 75-7    board; and
 75-8                (2)  submitting proof satisfactory to the board of
 75-9    compliance with the board's continuing education requirement.
75-10          (c)  The board may set a penalty fee for a person whose
75-11    certificate of registration has been expired for less than 90 days
75-12    in an amount that is different from the penalty fee for a person
75-13    whose certificate of registration has been expired for longer than
75-14    90 days but less than one year.
75-15          (d)  The board shall issue a certificate of renewal of a
75-16    person's certificate of registration on receipt of:
75-17                (1)  the required fees, as provided by this section;
75-18    and
75-19                (2)  the required proof of compliance with the board's
75-20    continuing education requirement.
75-21          (e)  If a person's certificate of registration has been
75-22    expired for one year or more, the board may revoke the certificate
75-23    of registration and enter the revocation in its official records.
75-24    The board may require an applicant for reinstatement of a
75-25    certificate of registration revoked under this subsection to pass
75-26    an examination prescribed by the board.  If the person passes the
75-27    examination, the person's certificate of registration may be
 76-1    reinstated on receipt of a fee in an amount determined by the
 76-2    board.  (V.A.C.S. Art. 249a, Secs. 12(d) (part), (e), (f), (g),
 76-3    (h).)
 76-4          Sec. 1051.354.  FEE EXEMPTION FOR MILITARY PERSONNEL. (a)  An
 76-5    architect who is on active duty as a member of the United States
 76-6    military is exempt from the payment of any fee during the person's
 76-7    term of service if the person:
 76-8                (1)  is in good standing as an architect in this state;
 76-9    or
76-10                (2)  was in good standing as an architect in this state
76-11    at the time the person entered into military service.
76-12          (b)  A person who is exempt from payment of a fee under
76-13    Subsection (a):
76-14                (1)  is exempt for the remainder of the fiscal year
76-15    during which the person's active duty status expires; and
76-16                (2)  is entitled to have the person's name continued on
76-17    the list of architects.  (V.A.C.S. Art. 249a, Sec. 12(i).)
76-18          Sec. 1051.355.  INACTIVE STATUS.  (a)  The board by rule
76-19    shall establish a procedure by which an architect may place the
76-20    person's certificate of registration on inactive status.  The
76-21    person must apply for inactive status, on a form prescribed by the
76-22    board, before the person's certificate of registration expires.
76-23          (b)  A person whose certificate of registration is on
76-24    inactive status must pay a renewal fee of $10 on a date and in a
76-25    manner prescribed by board rule.
76-26          (c)  A person whose certificate of registration is on
76-27    inactive status may not perform any activity regulated under this
 77-1    chapter.
 77-2          (d)  The board shall remove the person's certificate of
 77-3    registration from inactive status if the person:
 77-4                (1)  requests in writing that the board remove the
 77-5    person's certificate of registration from inactive status;
 77-6                (2)  pays an administrative fee; and
 77-7                (3)  complies with education or other requirements
 77-8    established by board rule.  (V.A.C.S. Art. 249a, Sec. 11A.)
 77-9          Sec. 1051.356.  CONTINUING EDUCATION. (a)  The board shall
77-10    require continuing education programs as a condition for renewal of
77-11    a certificate of registration.
77-12          (b)  The continuing education programs may include courses
77-13    relating to:
77-14                (1)  health, safety, or welfare; or
77-15                (2)  barrier-free design.
77-16          (c)  The board may recognize the continuing education
77-17    programs of:
77-18                (1)  a nationally acknowledged organization involved in
77-19    providing, recording, or approving postgraduate education; and
77-20                (2)  any other sponsoring organization or individual
77-21    whose presentation is approved by the board as qualifying in design
77-22    or construction health, safety, or welfare.
77-23          (d)  A person is exempt from the continuing education
77-24    requirements of this section if the person is, as of September 1,
77-25    1999, engaged in teaching architecture as a full-time faculty
77-26    member or other permanent employee of an institution of higher
77-27    education, as defined by Section 61.003, Education Code.  (V.A.C.S.
 78-1    Art. 249a, Secs. 3(e) (part), 12(j).)
 78-2            (Sections 1051.357-1051.400 reserved for expansion)
 78-3                  SUBCHAPTER I.  DISCIPLINARY PROCEDURES
 78-4          Sec. 1051.401.  DISCIPLINARY POWERS OF BOARD.  (a)  On a
 78-5    determination that a ground for discipline exists under Section
 78-6    1051.402, the board may:
 78-7                (1)  revoke or suspend a certificate of registration;
 78-8                (2)  place on probation a person whose certificate of
 78-9    registration is suspended;
78-10                (3)  reprimand the holder of a certificate of
78-11    registration; or
78-12                (4)  impose an administrative penalty on a person under
78-13    Subchapter J.
78-14          (b)  If the suspension of a person's certificate of
78-15    registration is probated, the board may require the person to:
78-16                (1)  report regularly to the board on matters that are
78-17    the basis of the probation;
78-18                (2)  limit practice to the areas prescribed by the
78-19    board; or
78-20                (3)  continue or renew professional education until the
78-21    person attains a degree of skill satisfactory to the board in those
78-22    areas that are the basis of the probation.  (V.A.C.S. Art. 249a,
78-23    Secs. 11(b) (part), (c).)
78-24          Sec. 1051.402.  GROUNDS FOR DISCIPLINARY ACTION.  A person is
78-25    subject to disciplinary action under Section 1051.401 for:
78-26                (1)  a violation of this chapter or a board rule
78-27    adopted under this chapter;
 79-1                (2)  a failure to timely provide plans and
 79-2    specifications to the Texas Department of Licensing and Regulation
 79-3    as required by Article 9102, Revised Statutes;
 79-4                (3)  a cause for which the board may refuse to issue a
 79-5    certificate of registration;
 79-6                (4)  gross incompetency;
 79-7                (5)  recklessness in the construction or alteration of
 79-8    a building by an architect designing, planning, or observing the
 79-9    construction or alteration; or
79-10                (6)  dishonest practice by the holder of a certificate
79-11    of registration.  (V.A.C.S. Art. 249a, Sec.  11(b) (part).)
79-12          Sec. 1051.403.  RIGHT TO HEARING; APPEAL.  (a)  If the board
79-13    proposes to suspend or revoke a person's certificate of
79-14    registration, the person is entitled to a hearing.  The board may
79-15    employ a hearings officer for this purpose.
79-16          (b)  The board shall prescribe procedures by which a decision
79-17    to suspend or revoke a certificate of registration is made by or is
79-18    appealable to the board.  (V.A.C.S.  Art. 249a, Sec. 11(d).)
79-19            (Sections 1051.404-1051.450 reserved for expansion)
79-20                   SUBCHAPTER J.  ADMINISTRATIVE PENALTY
79-21          Sec. 1051.451.  IMPOSITION OF ADMINISTRATIVE PENALTY.  The
79-22    board may impose an administrative penalty on a person who engages
79-23    in conduct for which the person is subject to disciplinary action
79-24    under Subchapter I, regardless of whether the person holds a
79-25    certificate of registration issued under this chapter.  (V.A.C.S.
79-26    Art. 249a, Sec. 11(b) (part).)
79-27          Sec. 1051.452.  AMOUNT OF ADMINISTRATIVE PENALTY.  (a)  The
 80-1    amount of an administrative penalty may not exceed $1,000.
 80-2          (b)  In determining the amount of a penalty, the board shall
 80-3    consider:
 80-4                (1)  the seriousness of the conduct that is the ground
 80-5    for imposing the penalty, including:
 80-6                      (A)  the nature, circumstances, extent, and
 80-7    gravity of any relevant act or omission; and
 80-8                      (B)  the hazard or potential hazard created to
 80-9    the health or safety of the public;
80-10                (2)  the economic damage to property caused by the
80-11    conduct;
80-12                (3)  the history of previous grounds for imposing a
80-13    penalty on the person who engaged in the conduct;
80-14                (4)  the amount necessary to deter future conduct that
80-15    is a ground for imposing a penalty;
80-16                (5)  efforts to correct the conduct that is a ground
80-17    for imposing a penalty; and
80-18                (6)  any other matter that justice may require.
80-19    (V.A.C.S. Art. 249a, Secs. 11(b) (part), (j).)
80-20          Sec. 1051.453.  REPORT AND NOTICE OF VIOLATION AND
80-21    ADMINISTRATIVE PENALTY.  (a)  If, after investigating the facts
80-22    surrounding an alleged ground for imposing an administrative
80-23    penalty, the executive director determines that a ground exists for
80-24    imposing an administrative penalty, the executive director may
80-25    issue a report stating:
80-26                (1)  the facts on which the determination is based; and
80-27                (2)  the executive director's recommendation on the
 81-1    imposition of an administrative penalty, including a recommendation
 81-2    on the amount of the penalty.
 81-3          (b)  The executive director shall base the recommended amount
 81-4    of the penalty on the seriousness of the ground for imposing the
 81-5    penalty after considering the factors listed in Section 1051.452.
 81-6          (c)  Not later than the 14th day after the date the report is
 81-7    issued, the executive director shall give written notice of the
 81-8    report to the person on whom the penalty may be imposed.  The
 81-9    notice must:
81-10                (1)  include a brief summary of the charges;
81-11                (2)  state the amount of the recommended penalty; and
81-12                (3)  inform the person of the person's right to a
81-13    hearing on the occurrence of a ground for imposing the penalty, the
81-14    amount of the penalty, or both.  (V.A.C.S. Art. 249a, Secs. 11(e),
81-15    (f).)
81-16          Sec. 1051.454.  ADMINISTRATIVE PENALTY TO BE PAID OR HEARING
81-17    REQUESTED. (a)  Not later than the 20th day after the date the
81-18    person receives notice under Section 1051.453(c), the person may:
81-19                (1)  accept the executive director's determination,
81-20    including the recommended administrative penalty; or
81-21                (2)  request a hearing on the determination.
81-22          (b)  If the person accepts the executive director's
81-23    determination, the board by order shall approve the determination
81-24    and impose the recommended penalty.  (V.A.C.S. Art. 249a, Secs.
81-25    11(g), (h).)
81-26          Sec. 1051.455.  HEARING.  (a)  If the person requests a
81-27    hearing or fails to respond timely to notice under Section
 82-1    1051.453(c), the board shall set a hearing and give notice of the
 82-2    hearing to the person.
 82-3          (b)  A proceeding under this section relating to an architect
 82-4    is subject to Chapter 2001, Government Code.  (V.A.C.S. Art. 249a,
 82-5    Sec. 11(i).)
 82-6          Sec. 1051.456.  NOTICE OF BOARD ORDER. The executive director
 82-7    shall give notice of the board's order to the person on whom the
 82-8    penalty is imposed.  The notice must include:
 82-9                (1)  the findings of fact and conclusions of law,
82-10    separately stated;
82-11                (2)  the amount of the administrative penalty ordered,
82-12    if any;
82-13                (3)  a statement of the right of the person on whom the
82-14    penalty is imposed to judicial review of the board's order; and
82-15                (4)  other information required by law.  (V.A.C.S.
82-16    Art. 249a, Sec. 11(k).)
82-17          Sec. 1051.457.  OPTIONS FOLLOWING BOARD ORDER: PAY OR APPEAL.
82-18    (a)  If the person on whom an administrative penalty is imposed is
82-19    an architect, the board's order becomes final as provided by
82-20    Section 2001.144, Government Code.  If the person does not hold a
82-21    certificate of registration issued by the board, the board's order
82-22    becomes final on the 20th day after the date the order is issued.
82-23          (b)  Not later than the 30th day after the date the board's
82-24    order becomes final, the person shall:
82-25                (1)  pay the administrative penalty in full; or
82-26                (2)  file a petition for judicial review contesting the
82-27    occurrence of the ground for imposing a penalty, the amount of the
 83-1    penalty, or both.
 83-2          (c)  Within the period prescribed by Subsection (b), a person
 83-3    who acts under Subsection (b)(2) shall:
 83-4                (1)  pay the penalty to the board for placement in an
 83-5    escrow account;
 83-6                (2)  post with the board a supersedeas bond that is in
 83-7    a form approved by the board for the amount of the penalty and that
 83-8    is effective until judicial review of the board's order is final;
 83-9    or
83-10                (3)  file with the board an affidavit of the person
83-11    stating that the person is financially unable to pay the penalty
83-12    and is financially unable to post the bond.  (V.A.C.S. Art. 249a,
83-13    Secs. 11(l), (m).)
83-14          Sec. 1051.458.  COLLECTION OF ADMINISTRATIVE PENALTY.  If the
83-15    person on whom an administrative penalty is imposed does not meet
83-16    the requirements of Section 1051.457, the board may refer the
83-17    matter to the attorney general for enforcement.  (V.A.C.S.
83-18    Art. 249a, Sec. 11(n).)
83-19          Sec. 1051.459.  JUDICIAL REVIEW. Judicial review of the order
83-20    of the board imposing an administrative penalty is under the
83-21    substantial evidence rule and is instituted by filing a petition
83-22    with a district court in Travis County, as provided by Subchapter
83-23    G, Chapter 2001, Government Code.  (V.A.C.S. Art. 249a, Sec.
83-24    11(o).)
83-25          Sec. 1051.460.  REMITTANCE OF ADMINISTRATIVE PENALTY AND
83-26    INTEREST. (a)  If, after judicial review, the administrative
83-27    penalty is reduced or not imposed by the court, the board shall:
 84-1                (1)  remit the appropriate amount plus accrued interest
 84-2    to the person on whom the penalty is imposed, if the person paid
 84-3    the penalty; or
 84-4                (2)  execute a release of the bond, if the person
 84-5    posted a supersedeas bond.
 84-6          (b)  The interest remitted under Subsection (a)(1) is at the
 84-7    rate charged on loans to depository institutions by the New York
 84-8    Federal Reserve Bank.  The interest shall be paid for the period
 84-9    beginning on the date the penalty is paid and ending on the date
84-10    the penalty is remitted.  (V.A.C.S. Art. 249a, Sec. 11(p).)
84-11            (Sections 1051.461-1051.500 reserved for expansion)
84-12                    SUBCHAPTER K.  OTHER PENALTIES AND
84-13                          ENFORCEMENT PROVISIONS
84-14          Sec. 1051.501.  GENERAL ENFORCEMENT AUTHORITY. (a)  A
84-15    violation of this chapter shall be reported to the board.
84-16          (b)  The board shall ensure that enforcement action is taken
84-17    against a person who violates this chapter.  (V.A.C.S. Art. 249a,
84-18    Secs. 3(d), 17(c).)
84-19          Sec. 1051.502.  INJUNCTIVE RELIEF. (a)  The board may bring
84-20    an action in its name to enjoin or restrain a person from violating
84-21    this chapter, a rule adopted under this chapter, or another state
84-22    statute or rule relating to the practice of architecture.
84-23          (b)  An action under this section must be brought in:
84-24                (1)  the county in which the defendant resides; or
84-25                (2)  the county in which the violation occurred or is
84-26    threatened to occur.
84-27          (c)  In an action brought under this section, the board may
 85-1    be represented by the attorney general, the district attorney or
 85-2    the county attorney, and by other counsel as necessary.  (V.A.C.S.
 85-3    Art. 249a, Sec. 5(c) (part).)
 85-4          Sec. 1051.503.  CRIMINAL PENALTY. (a)  A person commits an
 85-5    offense if, in violation of this chapter, the person or a member of
 85-6    the person's firm:
 85-7                (1)  engages in the practice of architecture, or offers
 85-8    or attempts to engage in the practice of architecture, for a fee or
 85-9    other direct compensation;
85-10                (2)  prepares architectural plans and specifications
85-11    for and observes or supervises the construction, enlargement, or
85-12    alteration of a building for another person; or
85-13                (3)  advertises or puts out a sign, card, or drawing
85-14    designating the person as an architect or architectural designer or
85-15    uses another business or professional title that uses a form of the
85-16    word "architect."
85-17          (b)  An offense under this section is a misdemeanor
85-18    punishable by a fine of not less than $250 and not more than
85-19    $1,000.  Each day of violation is a separate offense.
85-20          (c)  In an action brought under this section, the board may
85-21    be represented by a district or county attorney or by other counsel
85-22    as necessary.  (V.A.C.S. Art. 249a, Secs. 13(a), (b) (part).)
85-23          Sec. 1051.504.  CUMULATIVE EFFECT OF PROVISIONS. An action or
85-24    penalty authorized by this subchapter is in addition to any other
85-25    action or penalty provided by law.  (V.A.C.S. Art. 249a, Secs. 5(c)
85-26    (part), 13(b) (part).)
85-27                    CHAPTER 1052.  LANDSCAPE ARCHITECTS
 86-1                     SUBCHAPTER A.  GENERAL PROVISIONS
 86-2    Sec. 1052.001.  DEFINITIONS 
 86-3    Sec. 1052.002.  APPLICATION OF CHAPTER 
 86-4    Sec. 1052.003.  EXEMPTIONS 
 86-5            (Sections 1052.004-1052.050 reserved for expansion)
 86-6                  SUBCHAPTER B.  BOARD POWERS AND DUTIES
 86-7    Sec. 1052.051.  RULES AND FORMS 
 86-8    Sec. 1052.052.  ENFORCEMENT 
 86-9    Sec. 1052.053.  RULES RESTRICTING ADVERTISING OR
86-10                      COMPETITIVE BIDDING 
86-11    Sec. 1052.054.  FEES 
86-12    Sec. 1052.055.  SUBPOENA 
86-13    Sec. 1052.056.  FORM AND DESIGN OF LANDSCAPE ARCHITECT'S
86-14                      SEAL 
86-15    Sec. 1052.057.  STAFF 
86-16    Sec. 1052.058.  ATTORNEY GENERAL AS LEGAL ADVISOR 
86-17            (Sections 1052.059-1052.100 reserved for expansion)
86-18    SUBCHAPTER C.  PUBLIC INTEREST INFORMATION AND COMPLAINT PROCEDURES
86-19    Sec. 1052.101.  PUBLIC INFORMATION PROGRAM 
86-20    Sec. 1052.102.  COMPLAINTS 
86-21    Sec. 1052.103.  COMPLAINT INFORMATION 
86-22    Sec. 1052.104.  CONTRACT REQUIREMENT 
86-23            (Sections 1052.105-1052.150 reserved for expansion)
86-24                 SUBCHAPTER D.  REGISTRATION REQUIREMENTS
86-25    Sec. 1052.151.  REGISTRATION REQUIRED 
86-26    Sec. 1052.152.  USE OF LANDSCAPE ARCHITECT'S SEAL 
86-27    Sec. 1052.153.  EXAMINATION 
 87-1    Sec. 1052.154.  ELIGIBILITY FOR EXAMINATION; APPLICATION 
 87-2    Sec. 1052.155.  EXAMINATION RESULTS 
 87-3    Sec. 1052.156.  RECIPROCITY 
 87-4            (Sections 1052.157-1052.200 reserved for expansion)
 87-5           SUBCHAPTER E.  RENEWAL OF CERTIFICATE OF REGISTRATION
 87-6    Sec. 1052.201.  ANNUAL RENEWAL REQUIRED 
 87-7    Sec. 1052.202.  NOTICE OF EXPIRATION 
 87-8    Sec. 1052.203.  PROCEDURE FOR RENEWAL 
 87-9    Sec. 1052.204.  INACTIVE STATUS 
87-10    Sec. 1052.205.  CONTINUING EDUCATION 
87-11            (Sections 1052.206-1052.250 reserved for expansion)
87-12                  SUBCHAPTER F.  DISCIPLINARY PROCEDURES
87-13    Sec. 1052.251.  DISCIPLINARY POWERS OF BOARD 
87-14    Sec. 1052.252.  GROUNDS FOR DISCIPLINARY ACTION 
87-15    Sec. 1052.253.  RIGHT TO HEARING; APPEAL 
87-16            (Sections 1052.254-1052.300 reserved for expansion)
87-17                   SUBCHAPTER G.  ADMINISTRATIVE PENALTY
87-18    Sec. 1052.301.  IMPOSITION OF ADMINISTRATIVE PENALTY 
87-19    Sec. 1052.302.  AMOUNT OF ADMINISTRATIVE PENALTY 
87-20    Sec. 1052.303.  REPORT AND NOTICE OF VIOLATION AND
87-21                      ADMINISTRATIVE PENALTY 
87-22    Sec. 1052.304.  ADMINISTRATIVE PENALTY TO BE PAID OR
87-23                      HEARING REQUESTED 
87-24    Sec. 1052.305.  HEARING 
87-25    Sec. 1052.306.  NOTICE OF BOARD ORDER 
87-26    Sec. 1052.307.  OPTIONS FOLLOWING BOARD ORDER:  PAY OR
87-27                      APPEAL 
 88-1    Sec. 1052.308.  COLLECTION OF ADMINISTRATIVE PENALTY 
 88-2    Sec. 1052.309.  JUDICIAL REVIEW 
 88-3    Sec. 1052.310.  REMITTANCE OF ADMINISTRATIVE PENALTY
 88-4                      AND INTEREST 
 88-5                    CHAPTER 1052.  LANDSCAPE ARCHITECTS
 88-6                     SUBCHAPTER A.  GENERAL PROVISIONS
 88-7          Sec. 1052.001.  DEFINITIONS. In this chapter:
 88-8                (1)  "Board" means the Texas Board of Architectural
 88-9    Examiners.
88-10                (2)  "Landscape architect" means a person registered
88-11    under this chapter to practice landscape architecture.
88-12                (3)  "Landscape architecture" means a professional
88-13    service performed in connection with the development of a land area
88-14    to the extent that the principal purpose of the service is to
88-15    arrange and modify the natural scenery for aesthetic effect while
88-16    considering the intended use of the land.
88-17                (4)  "Person" means a natural person except as
88-18    otherwise specifically indicated.
88-19                (5)  "Professional service" includes consultation,
88-20    investigation, research, supervision, and preparation of general
88-21    development and detailed design plans, studies, and specifications
88-22    concerning the arrangement of natural forms, features, and
88-23    plantings, including ground and water forms, vegetation,
88-24    circulation, walks, and other landscape features, to fulfill
88-25    aesthetic and functional requirements.  The term does not include a
88-26    service or function within the practice of engineering,
88-27    architecture, or public surveying as defined by Chapter 1001, 1051,
 89-1    or 1071. (V.A.C.S. Art. 249c, Secs. 1(a), (b), (c), (d).)
 89-2          Sec. 1052.002.  APPLICATION OF CHAPTER. This chapter does not
 89-3    apply to or affect the laws relating to:
 89-4                (1)  an architect other than a landscape architect;
 89-5                (2)  a building designer;
 89-6                (3)  a professional engineer;
 89-7                (4)  a land surveyor; or
 89-8                (5)  a nurseryman.  (V.A.C.S. Art. 249c, Sec. 2(a).)
 89-9          Sec. 1052.003.  EXEMPTIONS. (a)  A person is exempt from
89-10    registration under this chapter if the person is:
89-11                (1)  an agriculturist;
89-12                (2)  an agronomist;
89-13                (3)  a forester;
89-14                (4)  a garden or lawn caretaker;
89-15                (5)  a gardener or contract gardener;
89-16                (6)  a grader or cultivator of land;
89-17                (7)  a horticulturist;
89-18                (8)  a nurseryman; or
89-19                (9)  a person preparing plans for property owned by the
89-20    person.
89-21          (b)  A person described by Subsection (a) may not use the
89-22    term "landscape architect" in a sign, card, listing, or
89-23    advertisement or otherwise represent the person to be a landscape
89-24    architect unless the person complies with this chapter. (V.A.C.S.
89-25    Art. 249c, Sec. 2(b).)
89-26            (Sections 1052.004-1052.050 reserved for expansion)
89-27                  SUBCHAPTER B.  BOARD POWERS AND DUTIES
 90-1          Sec. 1052.051.  RULES AND FORMS. The board may adopt rules
 90-2    and prescribe forms necessary to administer this chapter. (V.A.C.S.
 90-3    Art. 249c, Sec. 4(a).)
 90-4          Sec. 1052.052.  ENFORCEMENT. The board may enforce this
 90-5    chapter or a rule adopted under this chapter in the manner provided
 90-6    by Section 1051.502 for enforcement of Chapter 1051 or a rule
 90-7    adopted under that chapter. (V.A.C.S. Art. 249c, Sec. 9(c).)
 90-8          Sec. 1052.053.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
 90-9    BIDDING. The board may not adopt a rule restricting advertising or
90-10    competitive bidding by a person registered under this chapter
90-11    except to prohibit a false, misleading, or deceptive practice by
90-12    the person. (V.A.C.S. Art. 249c, Sec. 8A.)
90-13          Sec. 1052.054.  FEES. (a)  The board may set a fee for a
90-14    board action involving an administrative expense in an amount that
90-15    is reasonable and necessary to cover the cost of administering this
90-16    chapter, unless the amount of the fee is set by this chapter or by
90-17    the General Appropriations Act.
90-18          (b)  The board shall set the fee for renewal of a certificate
90-19    of registration in an amount that is reasonable and necessary to
90-20    defray administrative costs.
90-21          (c)  The board may accept payment of a fee by electronic
90-22    means.  The board may charge a fee to process the payment made by
90-23    electronic means.  The board shall set the processing fee in an
90-24    amount that is reasonably related to the expense incurred by the
90-25    board in processing the payment made by electronic means, not to
90-26    exceed five percent of the amount of the fee for which the payment
90-27    is made. (V.A.C.S. Art. 249c, Secs. 4(b), 7(c).)
 91-1          Sec. 1052.055.  SUBPOENA. (a)  The board may request and, if
 91-2    necessary, compel by subpoena:
 91-3                (1)  the attendance of witnesses for examination under
 91-4    oath; and
 91-5                (2)  the production for inspection or copying of
 91-6    records, documents, and other evidence relevant to the
 91-7    investigation of an alleged violation of this chapter.
 91-8          (b)  The board, acting through the attorney general, may
 91-9    bring an action to enforce a subpoena issued under Subsection (a)
91-10    against a person who fails to comply with the subpoena.
91-11          (c)  Venue for an action brought under Subsection (b) is in a
91-12    district court in:
91-13                (1)  Travis County; or
91-14                (2)  any county in which the board may conduct a
91-15    hearing.
91-16          (d)  The court shall order compliance with the subpoena if
91-17    the court finds that good cause exists to issue the subpoena.
91-18    (V.A.C.S. Art. 249c, Sec. 11.)
91-19          Sec. 1052.056.  FORM AND DESIGN OF LANDSCAPE ARCHITECT'S
91-20    SEAL. (a)  The board shall prescribe the form of the seal to be
91-21    used by a landscape architect.
91-22          (b)  The design of the seal must be the same as the design
91-23    used by the board, except that the words "Registered Landscape
91-24    Architect, State of Texas" must be used instead of "Texas Board of
91-25    Architectural Examiners."  (V.A.C.S. Art. 249c, Sec. 8D(b).)
91-26          Sec. 1052.057.  STAFF. The board may employ staff necessary
91-27    to administer this chapter.  (V.A.C.S. Art. 249c, Sec. 3.)
 92-1          Sec. 1052.058.  ATTORNEY GENERAL AS LEGAL ADVISOR. The
 92-2    attorney general shall act as legal advisor to the board and shall
 92-3    provide legal assistance necessary to enforce this chapter.  This
 92-4    section does not relieve a local prosecuting attorney of any duty
 92-5    under the law.  (V.A.C.S. Art. 249c, Sec. 9(b).)
 92-6            (Sections 1052.059-1052.100 reserved for expansion)
 92-7    SUBCHAPTER C.  PUBLIC INTEREST INFORMATION AND COMPLAINT PROCEDURES
 92-8          Sec. 1052.101.  PUBLIC INFORMATION PROGRAM. (a)  The board
 92-9    shall establish a program to inform the public about the practice
92-10    and regulation of landscape architecture in this state.  The
92-11    program must include information to inform prospective applicants
92-12    about the qualifications and requirements for registration under
92-13    this chapter.
92-14          (b)  As part of the program, the board shall:
92-15                (1)  prescribe and distribute a standard complaint form
92-16    in a manner the board considers appropriate; and
92-17                (2)  make the information compiled under this section
92-18    available to the public and appropriate state agencies.  (V.A.C.S.
92-19    Art. 249c, Sec. 8C(b).)
92-20          Sec. 1052.102.  COMPLAINTS. (a)  A resident of this state may
92-21    file with the board a written statement charging a landscape
92-22    architect with a ground for discipline.  The statement must be
92-23    verified.
92-24          (b)  On receiving a complaint under Subsection (a), the board
92-25    shall investigate the charge to determine whether the charge
92-26    supports imposition of a disciplinary sanction.  (V.A.C.S.
92-27    Art. 249c, Sec. 8(c).)
 93-1          Sec. 1052.103.  COMPLAINT INFORMATION. (a)  The board shall
 93-2    keep an information file about each complaint filed with the board
 93-3    relating to a landscape architect.
 93-4          (b)  If a written complaint is filed with the board relating
 93-5    to a landscape architect, the board, at least quarterly and until
 93-6    final disposition of the complaint, shall inform the person filing
 93-7    the complaint of the status of the complaint. (V.A.C.S. Art. 249c,
 93-8    Sec. 8B.)
 93-9          Sec. 1052.104.  CONTRACT REQUIREMENT. In each written
93-10    contract in which a landscape architect agrees to practice
93-11    landscape architecture in this state, the landscape architect shall
93-12    include the board's mailing address and telephone number and a
93-13    statement that the board has jurisdiction over a person registered
93-14    under this chapter.  (V.A.C.S. Art. 249c, Sec. 8C(a).)
93-15            (Sections 1052.105-1052.150 reserved for expansion)
93-16                 SUBCHAPTER D.  REGISTRATION REQUIREMENTS
93-17          Sec. 1052.151.  REGISTRATION REQUIRED. A person may not
93-18    represent the person to be a landscape architect unless the person
93-19    holds a certificate of registration as a landscape architect issued
93-20    by the board or is exempt from registration under this chapter.
93-21    (V.A.C.S. Art. 249c, Secs. 1(a), 5(a) (part), 9(a) (part).)
93-22          Sec. 1052.152.  USE OF LANDSCAPE ARCHITECT'S SEAL. (a)  A
93-23    landscape architect shall maintain a seal as described by Section
93-24    1052.056 and shall stamp or impress the seal on each drawing or
93-25    specification issued from the landscape architect's office for use
93-26    in this state.
93-27          (b)  A person may not use or attempt to use a landscape
 94-1    architect's seal, a similar seal, or a replica of the seal unless
 94-2    the use is by or through a landscape architect.
 94-3          (c)  A landscape architect may not permit a person who is not
 94-4    a landscape architect to use the landscape architect's seal without
 94-5    the landscape architect's personal supervision.
 94-6          (d)  A person may not present or attempt to use as the
 94-7    person's own the seal of another person. (V.A.C.S. Art. 249c, Secs.
 94-8    8D(a), (c), (d); 9(a) (part).)
 94-9          Sec. 1052.153.  EXAMINATION. (a)  A person must pass an
94-10    examination prescribed by the board to receive a certificate of
94-11    registration as a landscape architect.
94-12          (b)  The board shall prescribe the scope of the examination
94-13    and the methods of procedure with special reference to the
94-14    applicant's ability that will ensure the safety of the public
94-15    welfare and property rights.
94-16          (c)  The board shall approve the examination.
94-17          (d)  The board shall administer the examination at its office
94-18    in Austin or at another location designated by the board. (V.A.C.S.
94-19    Art. 249c, Sec. 5(a) (part).)
94-20          Sec. 1052.154.  ELIGIBILITY FOR EXAMINATION; APPLICATION. (a)
94-21    A person may apply for examination under this chapter if the
94-22    person:
94-23                (1)  is a graduate of a landscape architecture
94-24    educational program recognized and approved by the board; and
94-25                (2)  has satisfactory experience in landscape
94-26    architecture as required by board rule.
94-27          (b)  The application must be accompanied by a fee set by the
 95-1    board in an amount that is reasonable and necessary to defray
 95-2    administrative costs.  (V.A.C.S. Art. 249c, Sec. 5(a) (part).)
 95-3          Sec. 1052.155.  EXAMINATION RESULTS. (a)  The board shall
 95-4    notify each examinee of the results of the examination not later
 95-5    than the 30th day after the date the examination is administered.
 95-6    If an examination is graded or reviewed by a national testing
 95-7    service, the board shall notify each examinee of the results of the
 95-8    examination not later than the 30th day after the date the board
 95-9    receives the results from the testing service.
95-10          (b)  If the notice of the results of an examination graded or
95-11    reviewed by a national testing service will be delayed for longer
95-12    than 90 days after the examination date, the board shall notify
95-13    each examinee of the reason for the delay before the 90th day.
95-14          (c)  If requested in writing by a person who fails the
95-15    examination, the board shall provide to the person an analysis of
95-16    the person's performance on the examination.  (V.A.C.S. Art. 249c,
95-17    Secs. 5(b), (c).)
95-18          Sec. 1052.156.  RECIPROCITY. (a)  The board may waive any
95-19    requirement for a certificate of registration for an applicant who
95-20    holds a license or certificate of registration issued by another
95-21    state that has licensing or registration requirements substantially
95-22    equivalent to the requirements of this state.
95-23          (b)  The application must be accompanied by a fee in an
95-24    amount set by the board. (V.A.C.S. Art. 249c, Sec. 6.)
95-25            (Sections 1052.157-1052.200 reserved for expansion)
95-26           SUBCHAPTER E.  RENEWAL OF CERTIFICATE OF REGISTRATION
95-27          Sec. 1052.201.  ANNUAL RENEWAL REQUIRED. (a)  The board shall
 96-1    provide for the annual renewal of a certificate of registration.
 96-2          (b)  A certificate of registration expires each year on a
 96-3    date set by the board as part of a staggered renewal system adopted
 96-4    under this section.
 96-5          (c)  The board by rule may adopt a system under which
 96-6    certificates of registration expire on various dates during the
 96-7    year.  If necessary, the board shall adjust the date for mailing
 96-8    notice of expiration and the period for renewal.
 96-9          (d)  For a year in which the certificate of registration
96-10    expiration date is changed, renewal fees shall be prorated on a
96-11    monthly basis so that each certificate holder pays only that
96-12    portion of the fee that is allocable to the number of months during
96-13    which the certificate is valid.  On renewal of the certificate of
96-14    registration on the new expiration date, the total renewal fee is
96-15    payable. (V.A.C.S. Art. 249c, Secs. 7(a), (d) (part); 7A; 10(a)
96-16    (part).)
96-17          Sec. 1052.202.  NOTICE OF EXPIRATION. Not later than the 31st
96-18    day before the expiration date of a person's certificate of
96-19    registration, the board shall send written notice of the impending
96-20    expiration to the person at the person's last known address
96-21    according to board records.  (V.A.C.S. Art. 249c, Sec. 7(b).)
96-22          Sec. 1052.203.  PROCEDURE FOR RENEWAL. (a)  A person may
96-23    renew an unexpired certificate of registration by:
96-24                (1)  paying a renewal fee to the board before the
96-25    expiration date; and
96-26                (2)  submitting proof satisfactory to the board of
96-27    compliance with the board's continuing education requirement.
 97-1          (b)  A person whose certificate of registration has been
 97-2    expired for less than one year may renew the person's certificate
 97-3    of registration by:
 97-4                (1)  paying to the board:
 97-5                      (A)  any unpaid renewal fee; and
 97-6                      (B)  a penalty fee in an amount determined by the
 97-7    board; and
 97-8                (2)  submitting proof satisfactory to the board of
 97-9    compliance with the board's continuing education requirement.
97-10          (c)  The board may set a penalty fee for a person whose
97-11    certificate of registration has been expired for less than 90 days
97-12    in an amount that is different from the penalty fee for a person
97-13    whose certificate of registration has been expired for longer than
97-14    90 days but less than one year.
97-15          (d)  The board shall issue a certificate of renewal of a
97-16    person's certificate of registration on receipt of:
97-17                (1)  the required fees, as provided by this section;
97-18    and
97-19                (2)  the required proof of compliance with the board's
97-20    continuing education requirement.
97-21          (e)  If a person's certificate of registration has been
97-22    expired for one year or more, the board may revoke the certificate
97-23    of registration and enter the revocation in its official records
97-24    after the board provides notice and a hearing as provided by this
97-25    chapter. The board may require an applicant for reinstatement of a
97-26    certificate of registration revoked under this subsection to pass
97-27    the examination prescribed by the board.  If the person passes the
 98-1    examination, the person's certificate of registration may be
 98-2    reinstated on receipt of a fee in an amount determined by the
 98-3    board. (V.A.C.S. Art. 249c, Secs. 7(d) (part), (e), (f), (g), (h);
 98-4    10(a) (part).)
 98-5          Sec. 1052.204.  INACTIVE STATUS. (a)  The board by rule shall
 98-6    establish a procedure by which a landscape architect may place the
 98-7    person's certificate of registration on inactive status.  The
 98-8    person must apply for inactive status, on a form prescribed by the
 98-9    board, before the person's certificate of registration expires.
98-10          (b)  A person whose certificate of registration is on
98-11    inactive status is not required to pay a renewal fee.
98-12          (c)  A person whose certificate of registration is on
98-13    inactive status may not perform any activity regulated under this
98-14    chapter.
98-15          (d)  The board shall remove the person's certificate of
98-16    registration from inactive status if the person:
98-17                (1)  requests in writing that the board remove the
98-18    person's certificate of registration from inactive status;
98-19                (2)  pays an administrative fee; and
98-20                (3)  complies with education or other requirements
98-21    established by board rule. (V.A.C.S. Art. 249c, Sec. 6A.)
98-22          Sec. 1052.205.  CONTINUING EDUCATION. (a)  The board shall
98-23    require continuing education programs as a condition for renewal of
98-24    a certificate of registration.
98-25          (b)  The continuing education programs may include courses
98-26    relating to:
98-27                (1)  health, safety, or welfare; or
 99-1                (2)  barrier-free design.
 99-2          (c)  The board may recognize the continuing education
 99-3    programs of:
 99-4                (1)  a nationally acknowledged organization involved in
 99-5    providing, recording, or approving postgraduate education; and
 99-6                (2)  any other sponsoring organization or individual
 99-7    whose presentation is approved by the board as qualifying in design
 99-8    or construction health, safety, or welfare.
 99-9          (d)  A person is exempt from the continuing education
99-10    requirements of this section if the person is, as of September 1,
99-11    1999, engaged in teaching landscape architecture as a full-time
99-12    faculty member or other permanent employee of an institution of
99-13    higher education, as defined by Section 61.003, Education Code.
99-14    (V.A.C.S. Art. 249a, Sec. 3(e) (part); Art. 249c, Sec. 7(i).)
99-15            (Sections 1052.206-1052.250 reserved for expansion)
99-16                  SUBCHAPTER F.  DISCIPLINARY PROCEDURES
99-17          Sec. 1052.251.  DISCIPLINARY POWERS OF BOARD. (a)  On a
99-18    determination that a ground for discipline exists under Section
99-19    1052.252, the board may:
99-20                (1)  revoke or suspend a certificate of registration;
99-21                (2)  place on probation a person whose certificate of
99-22    registration is suspended;
99-23                (3)  reprimand the holder of a certificate of
99-24    registration; or
99-25                (4)  impose an administrative penalty on a person under
99-26    Subchapter G.
99-27          (b)  If the suspension of a person's certificate of
 100-1   registration is probated, the board may require the person to:
 100-2               (1)  report regularly to the board on matters that are
 100-3   the basis of the probation;
 100-4               (2)  limit practice to the areas prescribed by the
 100-5   board; or
 100-6               (3)  continue or renew professional education until the
 100-7   person attains a degree of skill satisfactory to the board in those
 100-8   areas that are the basis of the probation. (V.A.C.S. Art. 249c,
 100-9   Secs. 8(a) (part), (b).)
100-10         Sec. 1052.252.  GROUNDS FOR DISCIPLINARY ACTION. A person is
100-11   subject to disciplinary action under Section 1052.251 for:
100-12               (1)  violating this chapter or a board rule adopted
100-13   under this chapter;
100-14               (2)  using fraud or deceit in obtaining a certificate
100-15   of registration;
100-16               (3)  giving false or forged evidence to the board or a
100-17   member of the board in obtaining or assisting another person to
100-18   obtain a certificate of registration;
100-19               (4)  using or attempting to use as the person's own the
100-20   certificate of registration of another person;
100-21               (5)  holding the person out to the public as an
100-22   engineer or using the term "engineer," "engineered," "professional
100-23   engineer," or "P.E." or any other term tending to create the
100-24   impression that the person is authorized to practice engineering or
100-25   another profession unless the person is licensed under Chapter 1001
100-26   or another licensing law of this state, as applicable;
100-27               (6)  holding the person out to the public as a surveyor
 101-1   or using the term "surveyor," "surveyed," or "registered
 101-2   professional land surveyor" or any other term tending to create the
 101-3   impression that the person is authorized to practice surveying or
 101-4   another profession unless the person is licensed under Chapter 1071
 101-5   or another licensing law of this state, as applicable; or
 101-6               (7)  committing an act of gross negligence,
 101-7   incompetency, or misconduct in the practice of landscape
 101-8   architecture. (V.A.C.S. Art. 249c, Secs. 8(a) (part); 9(a) (part).)
 101-9         Sec. 1052.253.  RIGHT TO HEARING; APPEAL. (a)  If the board
101-10   proposes to suspend or revoke a person's certificate of
101-11   registration, the person is entitled to a hearing.  The board may
101-12   employ a hearings officer for this purpose.
101-13         (b)  The board shall prescribe procedures by which a decision
101-14   to suspend or revoke a certificate of registration is made by or is
101-15   appealable to the board. (V.A.C.S. Art. 249c, Sec. 8(d).)
101-16           (Sections 1052.254-1052.300 reserved for expansion)
101-17                  SUBCHAPTER G.  ADMINISTRATIVE PENALTY
101-18         Sec. 1052.301.  IMPOSITION OF ADMINISTRATIVE PENALTY. The
101-19   board may impose an administrative penalty on a person who engages
101-20   in conduct for which the person is subject to disciplinary action
101-21   under Subchapter F, regardless of whether the person holds a
101-22   certificate of registration issued under this chapter.  (V.A.C.S.
101-23   Art. 249c, Sec. 8(a) (part).)
101-24         Sec. 1052.302.  AMOUNT OF ADMINISTRATIVE PENALTY. (a)  The
101-25   amount of the administrative penalty may not exceed $1,000.  Each
101-26   day a violation occurs is a separate violation for purposes of
101-27   imposing a penalty.
 102-1         (b)  In determining the amount of a penalty, the board shall
 102-2   consider:
 102-3               (1)  the seriousness of the conduct that is the ground
 102-4   for imposing the penalty, including:
 102-5                     (A)  the nature, circumstances, extent, and
 102-6   gravity of any relevant act or omission; and
 102-7                     (B)  the hazard or potential hazard created to
 102-8   the health or safety of the public;
 102-9               (2)  the economic damage to property caused by the
102-10   conduct;
102-11               (3)  the history of previous grounds for imposing a
102-12   penalty on the person who engaged in the conduct;
102-13               (4)  the amount necessary to deter future conduct that
102-14   is a ground for imposing a penalty;
102-15               (5)  efforts to correct the conduct that is a ground
102-16   for imposing a penalty; and
102-17               (6)  any other matter that justice may require.
102-18   (V.A.C.S. Art. 249c, Secs. 8(a) (part), (j); 9(a) (part).)
102-19         Sec. 1052.303.  REPORT AND NOTICE OF VIOLATION AND
102-20   ADMINISTRATIVE PENALTY. (a)  If, after investigating the facts
102-21   surrounding an alleged ground for imposing an administrative
102-22   penalty, the executive director determines that a ground exists for
102-23   imposing an administrative penalty, the executive director may
102-24   issue a report stating:
102-25               (1)  the facts on which the determination is based; and
102-26               (2)  the executive director's recommendation on the
102-27   imposition of an administrative penalty, including a recommendation
 103-1   on the amount of the penalty.
 103-2         (b)  The executive director shall base the recommended amount
 103-3   of the penalty on the seriousness of the ground for imposing the
 103-4   penalty after considering the factors listed in Section 1052.302.
 103-5         (c)  Not later than the 14th day after the date the report is
 103-6   issued, the executive director shall give written notice of the
 103-7   report to the person on whom the penalty may be imposed.  The
 103-8   notice must:
 103-9               (1)  include a brief summary of the charges;
103-10               (2)  state the amount of the recommended penalty; and
103-11               (3)  inform the person of the person's right to a
103-12   hearing on the occurrence of a ground for imposing the penalty, the
103-13   amount of the penalty, or both. (V.A.C.S. Art. 249c, Secs. 8(e),
103-14   (f).)
103-15         Sec. 1052.304.  ADMINISTRATIVE PENALTY TO BE PAID OR HEARING
103-16   REQUESTED. (a)  Not later than the 20th day after the date the
103-17   person receives notice under Section 1052.303(c), the person may:
103-18               (1)  accept the executive director's determination,
103-19   including the recommended administrative penalty; or
103-20               (2)  request a hearing on the determination.
103-21         (b)  If the person accepts the executive director's
103-22   determination, the board by order shall approve the determination
103-23   and impose the recommended penalty.  (V.A.C.S. Art. 249c, Secs.
103-24   8(g), (h).)
103-25         Sec. 1052.305.  HEARING. (a)  If the person requests a
103-26   hearing or fails to respond timely to the notice under Section
103-27   1052.303(c), the board shall set a hearing and give notice of the
 104-1   hearing to the person.
 104-2         (b)  A proceeding under this section relating to a landscape
 104-3   architect is subject to Chapter 2001, Government Code. (V.A.C.S.
 104-4   Art. 249c, Sec. 8(i).)
 104-5         Sec. 1052.306.  NOTICE OF BOARD ORDER. The executive director
 104-6   shall give notice of the board's order to the person on whom the
 104-7   penalty is imposed.  The notice must include:
 104-8               (1)  the findings of fact and conclusions of law,
 104-9   separately stated;
104-10               (2)  the amount of the administrative penalty ordered,
104-11   if any;
104-12               (3)  a statement of the right of the person on whom the
104-13   penalty is imposed to judicial review of the board's order; and
104-14               (4)  other information required by law. (V.A.C.S.
104-15   Art. 249c, Sec. 8(k).)
104-16         Sec. 1052.307.  OPTIONS FOLLOWING BOARD ORDER:  PAY OR
104-17   APPEAL. (a)  If the person is a landscape architect, the board's
104-18   order becomes final as provided by Section 2001.144, Government
104-19   Code.  If the person does not hold a certificate of registration
104-20   issued by the board, the board's order becomes final on the 20th
104-21   day after the date the order is issued.
104-22         (b)  Not later than the 30th day after the date the board's
104-23   order becomes final, the person shall:
104-24               (1)  pay the administrative penalty in full; or
104-25               (2)  file a petition for judicial review contesting the
104-26   occurrence of the ground for imposing a penalty, the amount of the
104-27   penalty, or both.
 105-1         (c)  Within the period prescribed by Subsection (b), a person
 105-2   who acts under Subsection (b)(2) shall:
 105-3               (1)  pay the penalty to the board for placement in an
 105-4   escrow account;
 105-5               (2)  post with the board a supersedeas bond that is in
 105-6   a form approved by the board for the amount of the penalty and that
 105-7   is effective until judicial review of the board's order is final;
 105-8   or
 105-9               (3)  file with the board an affidavit of the person
105-10   stating that the person is financially unable to pay the penalty
105-11   and is financially unable to post the bond.  (V.A.C.S. Art. 249c,
105-12   Secs. 8(l), (m).)
105-13         Sec. 1052.308.  COLLECTION OF ADMINISTRATIVE PENALTY. If the
105-14   person on whom an administrative penalty is imposed does not meet
105-15   the requirements of Section 1052.307, the board may refer the
105-16   matter to the attorney general for enforcement. (V.A.C.S.
105-17   Art. 249c, Sec. 8(n).)
105-18         Sec. 1052.309.  JUDICIAL REVIEW. Judicial review of the order
105-19   of the board imposing an administrative penalty is under the
105-20   substantial evidence rule and is instituted by filing a petition
105-21   with a district court in Travis County, as provided by Subchapter
105-22   G, Chapter 2001, Government Code. (V.A.C.S. Art. 249c, Sec. 8(o).) 
105-23         Sec. 1052.310.  REMITTANCE OF ADMINISTRATIVE PENALTY AND
105-24   INTEREST. (a)  If, after judicial review, the administrative
105-25   penalty is reduced or not imposed by the court, the board shall:
105-26               (1)  remit the appropriate amount plus accrued interest
105-27   to the person on whom the penalty is imposed, if the person paid
 106-1   the penalty; or
 106-2               (2)  execute a release of the bond, if the person
 106-3   posted a supersedeas bond.
 106-4         (b)  The interest remitted under Subsection (a)(1) is at the
 106-5   rate charged on loans to depository institutions by the New York
 106-6   Federal Reserve Bank.  The interest shall be paid for the period
 106-7   beginning on the date the penalty is paid and ending on the date
 106-8   the penalty is remitted. (V.A.C.S. Art. 249c, Sec. 8(p).)
 106-9                    CHAPTER 1053.  INTERIOR DESIGNERS
106-10                    SUBCHAPTER A.  GENERAL PROVISIONS
106-11   Sec. 1053.001.  DEFINITIONS 
106-12   Sec. 1053.002.  APPLICATION 
106-13   Sec. 1053.003.  LIMITATION ON INTERIOR DESIGNERS 
106-14           (Sections 1053.004-1053.050 reserved for expansion)
106-15                 SUBCHAPTER B.  BOARD POWERS AND DUTIES
106-16   Sec. 1053.051.  RULEMAKING AND ADMINISTRATIVE AUTHORITY 
106-17   Sec. 1053.052.  FEES 
106-18   Sec. 1053.053.  GIFTS AND GRANTS 
106-19   Sec. 1053.054.  STANDARDS OF CONDUCT 
106-20   Sec. 1053.055.  SUBPOENA 
106-21   Sec. 1053.056.  OFFICIAL ROSTER 
106-22   Sec. 1053.057.  RECORDS 
106-23           (Sections 1053.058-1053.100 reserved for expansion)
106-24           SUBCHAPTER C.  CONSUMER INFORMATION AND COMPLAINTS
106-25   Sec. 1053.101.  CONSUMER INFORMATION 
106-26   Sec. 1053.102.  COMPLAINTS AND INVESTIGATION 
106-27   Sec. 1053.103.  COMPLAINT INFORMATION 
 107-1           (Sections 1053.104-1053.150 reserved for expansion)
 107-2                SUBCHAPTER D.  REGISTRATION REQUIREMENTS
 107-3   Sec. 1053.151.  REGISTRATION REQUIRED 
 107-4   Sec. 1053.152.  ELIGIBILITY REQUIREMENTS 
 107-5   Sec. 1053.153.  APPLICATION FOR CERTIFICATE OF REGISTRATION 
 107-6   Sec. 1053.154.  EXAMINATION REQUIRED 
 107-7   Sec. 1053.155.  APPLICATION FOR ADMISSION TO EXAMINATION 
 107-8   Sec. 1053.156.  EXAMINATION RESULTS 
 107-9   Sec. 1053.157.  REGISTER OF APPLICANTS 
107-10   Sec. 1053.158.  REGISTRATION WITHOUT EXAMINATION 
107-11   Sec. 1053.159.  ISSUANCE OF CERTIFICATE 
107-12   Sec. 1053.160.  USE OF INTERIOR DESIGNER'S SEAL 
107-13   Sec. 1053.161.  RECIPROCITY 
107-14           (Sections 1053.162-1053.200 reserved for expansion)
107-15          SUBCHAPTER E.  RENEWAL OF CERTIFICATE OF REGISTRATION
107-16   Sec. 1053.201.  ANNUAL RENEWAL REQUIRED 
107-17   Sec. 1053.202.  NOTICE OF EXPIRATION 
107-18   Sec. 1053.203.  RENEWAL OF EXPIRED REGISTRATION 
107-19   Sec. 1053.204.  INACTIVE STATUS 
107-20   Sec. 1053.205.  CONTINUING EDUCATION 
107-21           (Sections 1053.206-1053.250 reserved for expansion)
107-22                 SUBCHAPTER F.  PROHIBITED PRACTICES AND
107-23                         DISCIPLINARY PROCEDURES
107-24   Sec. 1053.251.  DISCIPLINARY POWERS OF BOARD 
107-25   Sec. 1053.252.  GROUNDS FOR DISCIPLINARY ACTION 
107-26   Sec. 1053.253.  HEARING; APPEAL 
107-27   Sec. 1053.254.  REINSTATEMENT 
 108-1           (Sections 1053.255-1053.300 reserved for expansion)
 108-2                  SUBCHAPTER G.  ADMINISTRATIVE PENALTY
 108-3   Sec. 1053.301.  IMPOSITION OF ADMINISTRATIVE PENALTY 
 108-4   Sec. 1053.302.  AMOUNT OF ADMINISTRATIVE PENALTY 
 108-5   Sec. 1053.303.  REPORT AND NOTICE OF VIOLATION AND
 108-6                     ADMINISTRATIVE PENALTY 
 108-7   Sec. 1053.304.  ADMINISTRATIVE PENALTY TO BE PAID OR
 108-8                     HEARING REQUESTED 
 108-9   Sec. 1053.305.  HEARING 
108-10   Sec. 1053.306.  NOTICE OF BOARD ORDER 
108-11   Sec. 1053.307.  OPTIONS FOLLOWING BOARD ORDER:  PAY
108-12                     OR APPEAL 
108-13   Sec. 1053.308.  COLLECTION OF ADMINISTRATIVE PENALTY 
108-14   Sec. 1053.309.  JUDICIAL REVIEW 
108-15   Sec. 1053.310.  REMITTANCE OF ADMINISTRATIVE PENALTY
108-16                     AND INTEREST 
108-17           (Sections 1053.311-1053.350 reserved for expansion)
108-18                     SUBCHAPTER H.  OTHER PENALTIES
108-19   Sec. 1053.351.  CRIMINAL PENALTY 
108-20                    CHAPTER 1053.  INTERIOR DESIGNERS
108-21                    SUBCHAPTER A.  GENERAL PROVISIONS
108-22         Sec. 1053.001.  DEFINITIONS. In this chapter:
108-23               (1)  "Board" means the Texas Board of Architectural
108-24   Examiners.
108-25               (2)  "Interior design" means the:
108-26                     (A)  identification, research, or development of
108-27   a creative solution to a problem relating to the function or
 109-1   quality of an interior environment;
 109-2                     (B)  performance of a service relating to an
 109-3   interior space, including programming, design analysis, space
 109-4   planning of non-load-bearing interior construction, and application
 109-5   of aesthetic principles, by using specialized knowledge of interior
 109-6   construction, building codes, equipment, materials, or furnishings;
 109-7   or
 109-8                     (C)  preparation of an interior design plan,
 109-9   specification, or related document about the design of a
109-10   non-load-bearing interior space.
109-11               (3)  "Interior designer" means a person who is
109-12   registered under this chapter.  (V.A.C.S. Art. 249e, Sec. 1.)
109-13         Sec. 1053.002.  APPLICATION. (a)  This chapter does not apply
109-14   to a person who:
109-15               (1)  does not use the title "interior designer" and
109-16   does not use the term "interior design" to describe a service the
109-17   person offers or performs; or
109-18               (2)  is registered to practice architecture in this
109-19   state.
109-20         (b)  This chapter does not:
109-21               (1)  prohibit an employee of an interior designer or
109-22   architect from performing an interior design service under the
109-23   control, instruction, or supervision of the interior designer or
109-24   architect; or
109-25               (2)  restrict the practice or activities of or the
109-26   provision of a service by a person engaged in a profession or
109-27   occupation for which the person is licensed or registered in this
 110-1   state under any other law.  (V.A.C.S. Art. 249e, Sec. 4.)
 110-2         Sec. 1053.003.  LIMITATION ON INTERIOR DESIGNERS.
 110-3   Registration  under this chapter does not authorize an interior
 110-4   designer to:
 110-5               (1)  plan or design architectural interior
 110-6   construction;
 110-7               (2)  engineer a building system, including a
 110-8   structural, electrical, plumbing, heating, ventilating,
 110-9   air-conditioning, or mechanical system;
110-10               (3)  engage in the practice of engineering as described
110-11   in Chapter 1001; or
110-12               (4)  engage in the practice of architecture as
110-13   described in Chapter 1051. (V.A.C.S. Art. 249e, Sec. 2.)
110-14           (Sections 1053.004-1053.050 reserved for expansion)
110-15                 SUBCHAPTER B.  BOARD POWERS AND DUTIES
110-16         Sec. 1053.051.  RULEMAKING AND ADMINISTRATIVE AUTHORITY. (a)
110-17   The board shall adopt rules for the general administration of this
110-18   chapter.
110-19         (b)  The board shall act to enhance and protect the public
110-20   health, safety, and welfare in adopting rules or otherwise carrying
110-21   out its powers and duties under this chapter.  (V.A.C.S. Art. 249e,
110-22   Secs. 5(d), (g).)
110-23         Sec. 1053.052.  FEES. (a)  The board shall set the following
110-24   fees, unless otherwise set in the General Appropriations Act, in
110-25   amounts that are reasonable and necessary to cover the costs of
110-26   administering this chapter:
110-27               (1)  a registration application fee;
 111-1               (2)  an annual registration renewal fee;
 111-2               (3)  a reciprocal registration fee; and
 111-3               (4)  an examination fee.
 111-4         (b)  The board may set fees for the following services,
 111-5   unless otherwise set in the General Appropriations Act, in amounts
 111-6   that are reasonable and necessary to cover the costs of
 111-7   administering this chapter:
 111-8               (1)  providing a duplicate certificate of registration;
 111-9               (2)  providing a roster of interior designers;
111-10               (3)  reinstating a revoked or suspended certificate of
111-11   registration; and
111-12               (4)  performing any other board action involving an
111-13   administrative expense.
111-14         (c)  The board may accept payment of a fee by electronic
111-15   means. The board may charge a fee to process the payment made by
111-16   electronic means.  The board shall set the processing fee in an
111-17   amount that is reasonably related to the expense incurred by the
111-18   board in processing the payment made by electronic means, not to
111-19   exceed five percent of the amount of the fee for which the payment
111-20   is made. (V.A.C.S. Art. 249e, Secs. 6(b), (c), (d).)
111-21         Sec. 1053.053.  GIFTS AND GRANTS. (a)  The board may accept a
111-22   gift or grant from any source to pay for any activity under this
111-23   chapter.
111-24         (b)  A gift or grant must be accepted in an open meeting by a
111-25   majority of the board and reported in the minutes with the name of
111-26   the donor and purpose of the gift or grant.  (V.A.C.S. Art. 249e,
111-27   Sec. 5(f).)
 112-1         Sec. 1053.054.  STANDARDS OF CONDUCT. The board shall
 112-2   establish standards of conduct for interior designers. (V.A.C.S.
 112-3   Art. 249e, Sec. 5(a) (part).)
 112-4         Sec. 1053.055.  SUBPOENA. (a)  The board may request and, if
 112-5   necessary, compel by subpoena:
 112-6               (1)  the attendance of witnesses for examination under
 112-7   oath; and
 112-8               (2)  the production for inspection or copying of
 112-9   records, documents, and other evidence relevant to the
112-10   investigation of an alleged violation of this chapter.
112-11         (b)  The board, acting through the attorney general, may
112-12   bring an action to enforce a subpoena issued under Subsection (a)
112-13   against a person who fails to comply with the subpoena.
112-14         (c)  Venue for an action brought under Subsection (b) is in a
112-15   district court in:
112-16               (1)  Travis County; or
112-17               (2)  any county in which the board may conduct a
112-18   hearing.
112-19         (d)  The court shall order compliance with the subpoena if
112-20   the court finds that good cause exists to issue the subpoena.
112-21   (V.A.C.S. Art. 249e, Sec. 5(h) (part).)
112-22         Sec. 1053.056.  OFFICIAL ROSTER. (a)  The board shall
112-23   maintain an official roster showing the name, registration number,
112-24   and address of each interior designer.
112-25         (b)  The roster shall be made available to the public for
112-26   inspection and information.  The board may publish the roster
112-27   annually and may distribute a copy of the roster to a person on
 113-1   payment of an administrative fee.  (V.A.C.S. Art. 249e, Sec. 7(b).)
 113-2         Sec. 1053.057.  RECORDS. The board shall keep a record of its
 113-3   proceedings under this chapter. (V.A.C.S. Art. 249e, Sec. 7(a)
 113-4   (part).)
 113-5           (Sections 1053.058-1053.100 reserved for expansion)
 113-6           SUBCHAPTER C.  CONSUMER INFORMATION AND COMPLAINTS
 113-7         Sec. 1053.101.  CONSUMER INFORMATION. (a)  The board shall
 113-8   prepare information of interest to consumers that describes:
 113-9               (1)  the functions of the board under this chapter;
113-10               (2)  the effect of this chapter on consumers' legal
113-11   rights; and
113-12               (3)  the procedures by which a consumer complaint is
113-13   filed with and resolved by the board.
113-14         (b)  The board shall make the information available to the
113-15   public and appropriate state agencies.  (V.A.C.S. Art. 249e, Sec.
113-16   5(c).)
113-17         Sec. 1053.102.  COMPLAINTS AND INVESTIGATION. (a)  A person
113-18   may file with the board a notice of a ground for denying the
113-19   registration of an applicant or for taking disciplinary action
113-20   against an interior designer.
113-21         (b)  The executive director of the board or the executive
113-22   director's designee shall:
113-23               (1)  investigate and make findings about the alleged
113-24   ground as the executive director or the designee considers
113-25   necessary; and
113-26               (2)  report to the board the findings and any
113-27   recommendations for action.  (V.A.C.S. Art. 249e, Sec. 15(c).)
 114-1         Sec. 1053.103.  COMPLAINT INFORMATION. (a)  The board shall
 114-2   keep an information file about each complaint filed with the board
 114-3   that the board has authority to resolve.
 114-4         (b)  If a written complaint is filed with the board that the
 114-5   board has the authority to resolve, the board, at least quarterly
 114-6   and until final disposition of the complaint, shall notify the
 114-7   parties to the complaint of the status of the complaint unless the
 114-8   notice would jeopardize an undercover investigation. (V.A.C.S.
 114-9   Art. 249e, Sec. 5(e).)
114-10           (Sections 1053.104-1053.150 reserved for expansion)
114-11                SUBCHAPTER D.  REGISTRATION REQUIREMENTS
114-12         Sec. 1053.151.  REGISTRATION REQUIRED. A person other than an
114-13   interior designer may not:
114-14               (1)  represent that the person is an "interior
114-15   designer" by using that title; or
114-16               (2)  represent, by using the term "interior design," a
114-17   service the person offers or performs.  (V.A.C.S. Art. 249e, Sec.
114-18   3.)
114-19         Sec. 1053.152.  ELIGIBILITY REQUIREMENTS. (a)  The board
114-20   shall establish the qualifications for the issuance or renewal of a
114-21   certificate of registration  under this chapter.
114-22         (b)  To be eligible for a certificate of registration, an
114-23   applicant must:
114-24               (1)  meet the qualifications established by the board
114-25   under Subsection (a);
114-26               (2)  pass the registration examination; and
114-27               (3)  pay the required fees. (V.A.C.S. Art. 249e, Secs.
 115-1   5(a) (part), 8(a).)
 115-2         Sec. 1053.153.  APPLICATION FOR CERTIFICATE OF REGISTRATION.
 115-3   Each application for a certificate of registration must:
 115-4               (1)  be on a form prescribed and furnished by the
 115-5   board; and
 115-6               (2)  include a:
 115-7                     (A)  verified statement of the applicant's
 115-8   education; and
 115-9                     (B)  detailed summary of the applicant's interior
115-10   design work experience.  (V.A.C.S. Art. 249e, Sec. 8(b).)
115-11         Sec. 1053.154.  EXAMINATION REQUIRED. (a) An applicant for a
115-12   certificate of registration must pass the examination adopted by
115-13   the board.
115-14         (b)  The examination must cover subjects established by and
115-15   must be graded according to board rules.  The board by rule may
115-16   adopt the examination of the National Council for Interior Design
115-17   Qualification or a comparable examination.
115-18         (c)  The board shall determine the time and place for each
115-19   examination.  The examination shall be offered at least once a
115-20   year.  The board shall give reasonable public notice of the
115-21   examination in the manner provided by board rule.  (V.A.C.S.
115-22   Art. 249e, Secs. 10(a), (b).)
115-23         Sec. 1053.155.  APPLICATION FOR ADMISSION TO EXAMINATION. (a)
115-24   An applicant for a certificate of registration must apply to the
115-25   board, on a form prescribed by the board, for admission to the
115-26   registration examination.
115-27         (b)  An application for admission to the registration
 116-1   examination must be accompanied by evidence satisfactory to the
 116-2   board that the applicant:
 116-3               (1)  has graduated from an interior design educational
 116-4   program recognized and approved by the board; and
 116-5               (2)  has professional experience in the field of
 116-6   interior design.
 116-7         (c)  The board shall adopt rules establishing standards for:
 116-8               (1)  the recognition and approval of interior design
 116-9   educational programs; and
116-10               (2)  the amounts and types of professional experience
116-11   necessary for registration examination eligibility. (V.A.C.S.
116-12   Art. 249e, Sec. 9.)
116-13         Sec. 1053.156.  EXAMINATION RESULTS. (a)  The board shall
116-14   notify each examinee of the results of the examination not later
116-15   than the 30th day after the date the examination is administered.
116-16   If an examination is graded or reviewed by a national testing
116-17   service, the board shall notify each examinee of the results of the
116-18   examination not later than the 30th day after the date the board
116-19   receives the results from the testing service.
116-20         (b)  If the notice of the results of an examination graded or
116-21   reviewed by a national testing service will be delayed for longer
116-22   than 90 days after the examination date, the board shall notify
116-23   each examinee of the reason for the delay before the 90th day.
116-24         (c)  If requested in writing by a person who fails the
116-25   examination, the board shall provide to the person an analysis of
116-26   the person's performance on the examination.  (V.A.C.S. Art. 249e,
116-27   Secs. 10(c), (d).)
 117-1         Sec. 1053.157.  REGISTER OF APPLICANTS. The board shall keep
 117-2   a register of applications for a certificate of registration under
 117-3   this chapter that lists for each applicant:
 117-4               (1)  the applicant's name, address, and age;
 117-5               (2)  the date of application;
 117-6               (3)  the applicant's place of business;
 117-7               (4)  the applicant's educational and other
 117-8   qualifications;
 117-9               (5)  whether an examination was taken;
117-10               (6)  whether the applicant was registered or was
117-11   rejected;
117-12               (7)  the date of the board's action on the application;
117-13   and
117-14               (8)  other information the board considers necessary.
117-15   (V.A.C.S. Art. 249e, Sec. 7(a) (part).)
117-16         Sec. 1053.158.  REGISTRATION WITHOUT EXAMINATION. (a)  A
117-17   person who applied for registration before September 1, 1994, is
117-18   eligible for registration without examination on the completion of
117-19   six years of practice as an interior designer if the person:
117-20               (1)  was practicing interior design before September 1,
117-21   1991; and
117-22               (2)  meets all other registration requirements of this
117-23   chapter.
117-24         (b)  For purposes of this section, a person is considered to
117-25   have practiced interior design if the person, independently or in
117-26   the course of regular employment, performed or offered to perform
117-27   interior design services or taught interior design at an
 118-1   institution of higher education in an accredited degree program in
 118-2   interior design recognized by the board.  Any combination of
 118-3   periods spent offering interior design services or teaching
 118-4   totaling at least six years satisfies the requirement of this
 118-5   section.  (V.A.C.S. Art. 249e, Secs. 11(b), (c).)
 118-6         Sec. 1053.159.  ISSUANCE OF CERTIFICATE. The board shall
 118-7   issue a certificate of registration to an applicant who presents
 118-8   satisfactory evidence that the applicant complies with all
 118-9   registration requirements under this chapter and under board rules.
118-10   (V.A.C.S. Art. 249e, Secs. 8(c), 13(a).)
118-11         Sec. 1053.160.  USE OF INTERIOR DESIGNER'S SEAL. An interior
118-12   designer is entitled to use any seal adopted by the board.
118-13   (V.A.C.S. Art. 249e, Sec. 13(b).)
118-14         Sec. 1053.161.  RECIPROCITY. The board may waive any
118-15   registration requirement for an applicant who:
118-16               (1)  is licensed or registered to practice interior
118-17   design by another state that has licensing or registration
118-18   requirements substantially equivalent to the requirements of this
118-19   state;
118-20               (2)  is in good standing with the state that issued the
118-21   license or registration; and
118-22               (3)  submits an application and pays an administrative
118-23   fee to the board.  (V.A.C.S. Art. 249e, Sec. 12.)
118-24           (Sections 1053.162-1053.200 reserved for expansion)
118-25          SUBCHAPTER E.  RENEWAL OF CERTIFICATE OF REGISTRATION
118-26         Sec. 1053.201.  ANNUAL RENEWAL REQUIRED. (a)  The board shall
118-27   provide for the annual renewal of a certificate of registration.
 119-1         (b)  The board by rule may adopt a system under which
 119-2   certificates of registration expire on various dates during the
 119-3   year. For the year in which the certificate of registration
 119-4   expiration date is changed, renewal fees shall be prorated on a
 119-5   monthly basis so that each certificate holder pays only that
 119-6   portion of the fee that is allocable to the number of months during
 119-7   which the certificate is valid.  On renewal of the certificate of
 119-8   registration on the new expiration date, the total renewal fee is
 119-9   payable.  (V.A.C.S. Art. 249e, Sec. 14(a).)
119-10         Sec. 1053.202.  NOTICE OF EXPIRATION. Not later than the 31st
119-11   day before the expiration date of a person's certificate of
119-12   registration, the board shall send written notice of the impending
119-13   expiration to the person at the person's last known address
119-14   according to board records.  (V.A.C.S. Art. 249e, Sec. 14(d).)
119-15         Sec. 1053.203.  RENEWAL OF EXPIRED REGISTRATION. (a)  A
119-16   person whose certificate of registration has been expired for less
119-17   than one year may renew the person's certificate of registration
119-18   by:
119-19               (1)  paying to the board:
119-20                     (A)  any unpaid renewal fee; and
119-21                     (B)  a penalty fee in an amount determined by the
119-22   board; and
119-23               (2)  submitting proof satisfactory to the board of
119-24   compliance with the board's continuing education requirement.
119-25         (b)  The board may set a penalty fee for a person whose
119-26   certificate of registration has been expired for less than 90 days
119-27   in an amount that is different from the penalty fee for a person
 120-1   whose certificate of registration has been expired for longer than
 120-2   90 days but less than one year.
 120-3         (c)  If a person's certificate of registration has been
 120-4   expired for one year or more, the board may revoke the certificate
 120-5   of registration. The board may require an applicant for
 120-6   reinstatement of a certificate of registration revoked under this
 120-7   subsection to pass the registration examination.  If the person
 120-8   passes the examination, the person's certificate of registration
 120-9   may be reinstated on receipt of a fee in an amount determined by
120-10   the board.  (V.A.C.S. Art. 249e, Secs. 14(b), (c), (e).)
120-11         Sec. 1053.204.  INACTIVE STATUS. (a)  The board by rule shall
120-12   establish a procedure by which an interior designer may place the
120-13   person's certificate of registration on inactive status.  The
120-14   person must apply for inactive status, on a form prescribed by the
120-15   board, before the person's certificate of registration expires.
120-16         (b)  A person whose certificate of registration is on
120-17   inactive status is not required to pay a renewal fee.
120-18         (c)  A person whose certificate of registration is on
120-19   inactive status may not perform any activity regulated under this
120-20   chapter.
120-21         (d)  The board shall remove the person's certificate of
120-22   registration from inactive status if the person:
120-23               (1)  requests in writing that the board remove the
120-24   person's certificate of registration from inactive status;
120-25               (2)  pays an administrative fee; and
120-26               (3)  complies with education or other requirements
120-27   established by board rule. (V.A.C.S. Art. 249e, Sec. 13A.)
 121-1         Sec. 1053.205.  CONTINUING EDUCATION. (a)  The board shall
 121-2   require continuing education programs as a condition for renewal of
 121-3   a certificate of registration.
 121-4         (b)  The continuing education programs may include courses
 121-5   relating to:
 121-6               (1)  health, safety, or welfare; or
 121-7               (2)  barrier-free design.
 121-8         (c)  The board may recognize the continuing education
 121-9   programs of:
121-10               (1)  a nationally acknowledged organization involved in
121-11   providing, recording, or approving postgraduate education; and
121-12               (2)  any other sponsoring organization or individual
121-13   whose presentation is approved by the board as qualifying in design
121-14   or construction health, safety, or welfare.
121-15         (d)  A person is exempt from the continuing education
121-16   requirements of this section if the person is, as of September 1,
121-17   1999, engaged in teaching interior design as a full-time faculty
121-18   member or other permanent employee of an institution of higher
121-19   education, as defined by Section 61.003, Education Code. (V.A.C.S.
121-20   Art. 249a, Sec. 3(e) (part); Art. 249e, Sec. 14(f).)
121-21           (Sections 1053.206-1053.250 reserved for expansion)
121-22                 SUBCHAPTER F.  PROHIBITED PRACTICES AND
121-23                         DISCIPLINARY PROCEDURES
121-24         Sec. 1053.251.  DISCIPLINARY POWERS OF BOARD. (a)  On a
121-25   determination that a ground for disciplinary action exists under
121-26   Section 1053.252, the board may:
121-27               (1)  revoke or suspend a certification of registration;
 122-1               (2)  place on probation a person whose certificate of
 122-2   registration has been suspended;
 122-3               (3)  reprimand the holder of a certificate of
 122-4   registration; or
 122-5               (4)  impose an administrative penalty on a person under
 122-6   Subchapter G.
 122-7         (b)  If the suspension of a person's certificate of
 122-8   registration is probated, the board may require the person to:
 122-9               (1)  report regularly to the board on matters that are
122-10   the basis of the probation;
122-11               (2)  limit practice to the areas prescribed by the
122-12   board; or
122-13               (3)  continue or renew professional education until the
122-14   person attains a degree of skill satisfactory to the board in those
122-15   areas that are the basis of the probation.
122-16         (c)  On a determination that a ground for disciplinary action
122-17   exists under Section 1053.252, the board shall deny registration of
122-18   an applicant. (V.A.C.S. Art. 249e, Secs. 5(b) (part), 15(a) (part),
122-19   (b), 17(a).)
122-20         Sec. 1053.252.  GROUNDS FOR DISCIPLINARY ACTION. A person is
122-21   subject to disciplinary action under Section 1053.251 for:
122-22               (1)  violating this chapter or a board rule adopted
122-23   under this chapter;
122-24               (2)  being convicted of a felony or of a misdemeanor
122-25   involving moral turpitude;
122-26               (3)  using fraud or deceit in obtaining or attempting
122-27   to obtain a certificate of registration;
 123-1               (4)  performing professional duties in a grossly
 123-2   negligent manner;
 123-3               (5)  practicing in a manner detrimental to the public
 123-4   health, safety, or welfare;
 123-5               (6)  advertising in a manner that tends to deceive or
 123-6   defraud the public; or
 123-7               (7)  aiding or abetting any person not registered under
 123-8   this chapter in violating this chapter. (V.A.C.S. Art. 249e, Secs.
 123-9   5(b) (part), 15(a) (part).)
123-10         Sec. 1053.253.  HEARING; APPEAL. (a)  If the board proposes
123-11   to suspend or revoke a person's certificate of registration, the
123-12   person is entitled to a hearing.  The board may employ a hearings
123-13   officer for this purpose.
123-14         (b)  The board shall prescribe procedures by which a decision
123-15   to suspend or revoke a certificate of registration is made by or is
123-16   appealable to the board. (V.A.C.S. Art. 249e, Sec. 15(d).)
123-17         Sec. 1053.254.  REINSTATEMENT. (a)  A person whose
123-18   certificate of registration has been revoked or suspended or whose
123-19   application for issuance or renewal of a certificate of
123-20   registration has been denied may apply to the board for the
123-21   issuance or reinstatement of a certificate of registration after
123-22   the 180th day after the date of the revocation, suspension, or
123-23   denial.
123-24         (b)  The board may issue or reinstate a certificate of
123-25   registration if the person:
123-26               (1)  pays all fees and costs the board incurred as a
123-27   result of the case that led to the action at issue; and
 124-1               (2)  presents evidence to support the issuance or
 124-2   reinstatement.  (V.A.C.S. Art. 249e, Sec. 15(e).)
 124-3           (Sections 1053.255-1053.300 reserved for expansion)
 124-4                  SUBCHAPTER G.  ADMINISTRATIVE PENALTY
 124-5         Sec. 1053.301.  IMPOSITION OF ADMINISTRATIVE PENALTY. The
 124-6   board may impose an administrative penalty on a person who engages
 124-7   in conduct for which the person is subject to disciplinary action
 124-8   under Subchapter F. (V.A.C.S. Art. 249e, Sec. 17(a).)
 124-9         Sec. 1053.302.  AMOUNT OF ADMINISTRATIVE PENALTY. In
124-10   determining the amount of an administrative penalty, the board
124-11   shall consider:
124-12               (1)  the seriousness of the conduct that is the ground
124-13   for imposing the penalty, including:
124-14                     (A)  the nature, circumstances, extent, and
124-15   gravity of any relevant act or omission; and
124-16                     (B)  the hazard or potential hazard created to
124-17   the health or safety of the public;
124-18               (2)  the economic damage to property caused by the
124-19   conduct;
124-20               (3)  the history of previous grounds for imposing a
124-21   penalty on the person who engaged in the conduct;
124-22               (4)  the amount necessary to deter future conduct that
124-23   is a ground for imposing a penalty;
124-24               (5)  efforts to correct the conduct that is a ground
124-25   for imposing a penalty; and
124-26               (6)  any other matter justice may require. (V.A.C.S.
124-27   Art. 249e, Sec. 17(g).)
 125-1         Sec. 1053.303.  REPORT AND NOTICE OF VIOLATION AND
 125-2   ADMINISTRATIVE PENALTY. (a)  If, after investigating the facts
 125-3   surrounding an alleged ground for imposing an administrative
 125-4   penalty, the executive director determines that a ground exists for
 125-5   imposing an administrative penalty, the executive director may
 125-6   issue a report stating:
 125-7               (1)  the facts on which the determination is based; and
 125-8               (2)  the executive director's recommendation on the
 125-9   imposition of an administrative penalty, including a recommendation
125-10   on the amount of the penalty.
125-11         (b)  The executive director shall base the recommended amount
125-12   of the penalty on the seriousness of the ground for imposing the
125-13   penalty after considering  the factors listed in Section 1053.302.
125-14         (c)  Not later than the 14th day after the date the report is
125-15   issued, the executive director shall give written notice of the
125-16   report to the person on whom the penalty may be imposed.  The
125-17   notice must:
125-18               (1)  include a brief summary of the charges;
125-19               (2)  state the amount of the recommended penalty; and
125-20               (3)  inform the person of the person's right to a
125-21   hearing on the occurrence of a ground for imposing the penalty, the
125-22   amount of the penalty, or both.  (V.A.C.S. Art. 249e, Secs. 17(b),
125-23   (c).)
125-24         Sec. 1053.304.  ADMINISTRATIVE PENALTY TO BE PAID OR HEARING
125-25   REQUESTED. (a)  Not later than the 20th day after the date a person
125-26   receives notice under Section 1053.303(c), the person may:
125-27               (1)  accept the executive director's determination,
 126-1   including the recommended administrative penalty; or
 126-2               (2)  request  a hearing on the determination.
 126-3         (b)  If the person  accepts the executive director's
 126-4   determination, the board by order shall approve the determination
 126-5   and impose the recommended penalty.  (V.A.C.S. Art. 249e, Secs.
 126-6   17(d), (e).)
 126-7         Sec. 1053.305.  HEARING. (a)  If the person requests a
 126-8   hearing or fails to respond timely to the notice under Section
 126-9   1053.303(c), the board shall set a hearing and give notice of the
126-10   hearing to the person.
126-11         (b)  A proceeding under this section relating to an interior
126-12   designer is subject to Chapter 2001, Government Code.  (V.A.C.S.
126-13   Art. 249e, Sec. 17(f).)
126-14         Sec. 1053.306.  NOTICE OF BOARD ORDER. The executive director
126-15   shall give notice of the board's order to the person on whom the
126-16   penalty is imposed.  The notice must include:
126-17               (1)  the findings of fact and conclusions of law,
126-18   separately stated;
126-19               (2)  the amount of the administrative penalty ordered,
126-20   if any;
126-21               (3)  a statement of the right of the person on whom the
126-22   penalty is imposed to judicial review of the board's order; and
126-23               (4)  other information required by law.  (V.A.C.S.
126-24   Art. 249e, Sec. 17(h).)
126-25         Sec. 1053.307.  OPTIONS FOLLOWING BOARD ORDER:  PAY OR
126-26   APPEAL. (a)  If the person is an interior designer, the board's
126-27   order becomes final as provided by  Section 2001.144, Government
 127-1   Code.  If the person  does not hold a certificate of registration
 127-2   issued by the board, the board's order becomes final on the 20th
 127-3   day after the date the order is issued.
 127-4         (b)  Not later than the 30th day after the date the board's
 127-5   order becomes final, the person shall:
 127-6               (1)  pay the administrative penalty in full; or
 127-7               (2)  file a petition for judicial review contesting the
 127-8   occurrence of the ground for imposing the penalty, the amount of
 127-9   the penalty, or both.
127-10         (c)  Within the period prescribed by Subsection (b), a person
127-11   who acts under Subsection (b)(2) shall:
127-12               (1)  pay the penalty to the board for placement in an
127-13   escrow account;
127-14               (2)  post with the board a supersedeas bond that is in
127-15   a form approved by the board for the amount of the penalty and that
127-16   is effective until judicial review of the board's order is final;
127-17   or
127-18               (3)  file with the board an affidavit of the person
127-19   stating that the person is financially unable to pay the penalty
127-20   and is financially unable to post the bond.  (V.A.C.S. Art. 249e,
127-21   Secs. 17(i), (j).)
127-22         Sec. 1053.308.  COLLECTION OF ADMINISTRATIVE PENALTY. If the
127-23   person on whom an administrative penalty is imposed does not meet
127-24   the requirements of Section 1053.307, the board may refer the
127-25   matter to the attorney general for enforcement.  (V.A.C.S.
127-26   Art. 249e, Sec. 17(k).)
127-27         Sec. 1053.309.  JUDICIAL REVIEW. Judicial review of the order
 128-1   of the board imposing an administrative penalty is under the
 128-2   substantial evidence rule and is instituted by filing a petition
 128-3   with a district court in Travis County, as provided by Subchapter
 128-4   G, Chapter 2001, Government Code.  (V.A.C.S. Art. 249e, Sec.
 128-5   17(l).)
 128-6         Sec. 1053.310.  REMITTANCE OF ADMINISTRATIVE PENALTY AND
 128-7   INTEREST. (a)  If, after judicial review, the administrative
 128-8   penalty is reduced or not imposed by the court, the board shall:
 128-9               (1)  remit the appropriate amount plus accrued interest
128-10   to the person on whom the penalty is imposed, if the person paid
128-11   the penalty; or
128-12               (2)  execute a release of the bond, if the person
128-13   posted a supersedeas bond.
128-14         (b)  The interest remitted under Subsection (a)(1) is at the
128-15   rate charged on loans to depository institutions by the New York
128-16   Federal Reserve Bank.  The interest shall be paid for the period
128-17   beginning on the date the penalty is paid and ending on the date
128-18   the penalty is remitted.  (V.A.C.S. Art. 249e, Sec. 17(m).)
128-19           (Sections 1053.311-1053.350 reserved for expansion)
128-20                     SUBCHAPTER H.  OTHER PENALTIES
128-21         Sec. 1053.351.  CRIMINAL PENALTY. (a)  A person commits an
128-22   offense if the person knowingly violates Section 1053.151 or a
128-23   standard of conduct adopted under this chapter.
128-24         (b)  An offense under this section is a Class C misdemeanor.
128-25   (V.A.C.S. Art. 249e, Sec. 16.)
128-26               (Chapters 1054-1070 reserved for expansion)
128-27     SUBTITLE C.  REGULATION OF LAND SURVEYING AND RELATED PRACTICES
 129-1                      CHAPTER 1071.  LAND SURVEYORS
 129-2                    SUBCHAPTER A.  GENERAL PROVISIONS
 129-3   Sec. 1071.001.  SHORT TITLE 
 129-4   Sec. 1071.002.  DEFINITIONS 
 129-5   Sec. 1071.003.  APPLICATION OF SUNSET ACT 
 129-6   Sec. 1071.004.  APPLICATION OF CHAPTER 
 129-7           (Sections 1071.005-1071.050 reserved for expansion)
 129-8        SUBCHAPTER B.  TEXAS BOARD OF PROFESSIONAL LAND SURVEYING
 129-9   Sec. 1071.051.  BOARD MEMBERSHIP 
129-10   Sec. 1071.052.  ELIGIBILITY OF PUBLIC MEMBERS 
129-11   Sec. 1071.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS 
129-12   Sec. 1071.054.  TERMS; OATH; VACANCY 
129-13   Sec. 1071.055.  OFFICERS 
129-14   Sec. 1071.056.  GROUNDS FOR REMOVAL 
129-15   Sec. 1071.057.  PER DIEM; REIMBURSEMENT 
129-16   Sec. 1071.058.  MEETINGS 
129-17           (Sections 1071.059-1071.100 reserved for expansion)
129-18             SUBCHAPTER C.  EXECUTIVE DIRECTOR AND PERSONNEL
129-19   Sec. 1071.101.  EXECUTIVE DIRECTOR; BOND 
129-20   Sec. 1071.102.  PERSONNEL 
129-21   Sec. 1071.103.  DIVISION OF RESPONSIBILITIES 
129-22   Sec. 1071.104.  QUALIFICATIONS AND STANDARDS OF CONDUCT
129-23                     INFORMATION 
129-24   Sec. 1071.105.  CAREER LADDER PROGRAM; PERFORMANCE
129-25                     EVALUATIONS 
129-26   Sec. 1071.106.  EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT 
129-27           (Sections 1071.107-1071.150 reserved for expansion)
 130-1                SUBCHAPTER D.  POWERS AND DUTIES OF BOARD
 130-2   Sec. 1071.151.  RULEMAKING AUTHORITY 
 130-3   Sec. 1071.152.  RECEIPT OF FEES; PAYMENT OF ADMINISTRATIVE
 130-4                     COSTS 
 130-5   Sec. 1071.153.  OFFICE SPACE 
 130-6   Sec. 1071.154.  SURVEYOR ROSTER; INFORMATION PROVIDED TO
 130-7                     SURVEYORS 
 130-8   Sec. 1071.155.  BOARD RECORDS 
 130-9   Sec. 1071.156.  REPRESENTATION OF BOARD AT CERTAIN MEETINGS 
130-10   Sec. 1071.157.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
130-11                     BIDDING 
130-12           (Sections 1071.158-1071.200 reserved for expansion)
130-13             SUBCHAPTER E.  PUBLIC INTEREST INFORMATION AND
130-14                          COMPLAINT PROCEDURES
130-15   Sec. 1071.201.  PUBLIC INTEREST INFORMATION 
130-16   Sec. 1071.202.  PUBLIC PARTICIPATION 
130-17   Sec. 1071.203.  COMPLAINTS 
130-18   Sec. 1071.204.  RECORDS OF COMPLAINTS 
130-19           (Sections 1071.205-1071.250 reserved for expansion)
130-20                 SUBCHAPTER F.  REGISTRATION, LICENSING,
130-21                     AND CERTIFICATION REQUIREMENTS
130-22   Sec. 1071.251.  REGISTRATION, LICENSE, OR CERTIFICATE
130-23                     REQUIRED 
130-24   Sec. 1071.252.  APPLICATION REQUIREMENTS 
130-25   Sec. 1071.253.  SURVEYOR-IN-TRAINING CERTIFICATE 
130-26   Sec. 1071.254.  QUALIFICATIONS FOR REGISTRATION AS
130-27                     REGISTERED PROFESSIONAL LAND SURVEYOR 
 131-1   Sec. 1071.255.  QUALIFICATIONS FOR LICENSING AS LICENSED
 131-2                     STATE LAND SURVEYOR; OATH 
 131-3   Sec. 1071.256.  EXAMINATION 
 131-4   Sec. 1071.257.  EXAMINATION RESULTS 
 131-5   Sec. 1071.258.  REEXAMINATION; FEE 
 131-6   Sec. 1071.259.  REGISTRATION OF OUT-OF-STATE SURVEYORS 
 131-7   Sec. 1071.260.  REGISTRATION NUMBER; FORM OF CERTIFICATE
 131-8                     OR LICENSE 
 131-9   Sec. 1071.261.  DISPLAY OF CERTIFICATE AND LICENSE 
131-10   Sec. 1071.262.  REPLACEMENT OF REVOKED, LOST, OR DESTROYED
131-11                     CERTIFICATE OR LICENSE 
131-12   Sec. 1071.263.  INACTIVE STATUS 
131-13           (Sections 1071.264-1071.300 reserved for expansion)
131-14           SUBCHAPTER G.  RENEWAL OF REGISTRATION AND LICENSE
131-15   Sec. 1071.301.  ANNUAL RENEWAL REQUIRED 
131-16   Sec. 1071.302.  NOTICE OF EXPIRATION 
131-17   Sec. 1071.303.  PROCEDURE FOR RENEWAL 
131-18   Sec. 1071.304.  NOTICE OF FAILURE TO RENEW STATE LAND
131-19                     SURVEYOR LICENSE 
131-20   Sec. 1071.305.  CONTINUING PROFESSIONAL EDUCATION 
131-21           (Sections 1071.306-1071.350 reserved for expansion)
131-22                SUBCHAPTER H.  PRACTICE OF LAND SURVEYING
131-23   Sec. 1071.351.  PERFORMANCE OF LAND SURVEYING; OFFICIAL
131-24                     SEAL 
131-25   Sec. 1071.352.  SURVEYING BY BUSINESS ENTITY 
131-26   Sec. 1071.353.  PRACTICE UNDER ASSUMED NAME 
131-27   Sec. 1071.354.  JURISDICTION OF LICENSED STATE LAND
 132-1                     SURVEYORS 
 132-2   Sec. 1071.355.  LICENSED STATE LAND SURVEYOR AS AGENT
 132-3                     OF STATE 
 132-4   Sec. 1071.356.  RESIGNATION OF LICENSED STATE LAND
 132-5                     SURVEYOR 
 132-6   Sec. 1071.357.  COUNTY SURVEYORS 
 132-7   Sec. 1071.358.  COURT ORDER FOR PERMISSION TO CROSS LAND 
 132-8   Sec. 1071.359.  LICENSED STATE LAND SURVEYOR FIELD NOTES 
 132-9   Sec. 1071.360.  DISCOVERY OF UNDISCLOSED LAND 
132-10   Sec. 1071.361.  ACCESS TO COUNTY SURVEYOR RECORDS 
132-11           (Sections 1071.362-1071.400 reserved for expansion)
132-12                 SUBCHAPTER I.  DISCIPLINARY PROCEDURES
132-13   Sec. 1071.401.  DISCIPLINARY POWERS OF BOARD 
132-14   Sec. 1071.402.  DISCIPLINARY PROCEEDINGS 
132-15   Sec. 1071.403.  RIGHT TO HEARING; ADMINISTRATIVE PROCEDURE 
132-16   Sec. 1071.404.  PROBATION 
132-17   Sec. 1071.405.  REISSUANCE OF CERTIFICATE OR LICENSE 
132-18           (Sections 1071.406-1071.450 reserved for expansion)
132-19                  SUBCHAPTER J.  ADMINISTRATIVE PENALTY
132-20   Sec. 1071.451.  IMPOSITION OF PENALTY 
132-21   Sec. 1071.452.  AMOUNT OF PENALTY 
132-22   Sec. 1071.453.  REPORT AND NOTICE OF VIOLATION AND PENALTY 
132-23   Sec. 1071.454.  PENALTY TO BE PAID OR HEARING REQUESTED 
132-24   Sec. 1071.455.  HEARING ON RECOMMENDATIONS 
132-25   Sec. 1071.456.  NOTICE OF DECISION BY BOARD 
132-26   Sec. 1071.457.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL 
132-27   Sec. 1071.458.  ENFORCEMENT OF PENALTY 
 133-1   Sec. 1071.459.  REMITTANCE OF PENALTY AND INTEREST 
 133-2           (Sections 1071.460-1071.500 reserved for expansion)
 133-3        SUBCHAPTER K.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
 133-4   Sec. 1071.501.  INJUNCTION 
 133-5   Sec. 1071.502.  ENFORCEMENT BY ATTORNEY GENERAL 
 133-6   Sec. 1071.503.  CIVIL PENALTY 
 133-7   Sec. 1071.504.  CRIMINAL PENALTY 
 133-8                      CHAPTER 1071.  LAND SURVEYORS
 133-9                    SUBCHAPTER A.  GENERAL PROVISIONS
133-10         Sec. 1071.001.  SHORT TITLE. This chapter may be cited as the
133-11   Professional Land Surveying Practices Act.  (V.A.C.S. Art. 5282c,
133-12   Sec. 1.)
133-13         Sec. 1071.002.  DEFINITIONS. In this chapter:
133-14               (1)  "Board" means the Texas Board of Professional Land
133-15   Surveying.
133-16               (2)  "Commissioner" means the commissioner of the
133-17   General Land Office.
133-18               (3)  "Delegated responsible charge" means the direct
133-19   control of professional surveying work performed under the
133-20   supervision of a registered professional land surveyor.
133-21               (4)  "Land surveyor" means a registered professional
133-22   land surveyor or licensed state land surveyor.
133-23               (5)  "Licensed state land surveyor" means a surveyor
133-24   licensed by the board to survey land in which the state or the
133-25   permanent school fund has an interest or perform other original
133-26   surveys for the purpose of filing field notes in the General Land
133-27   Office.
 134-1               (6)  "Professional surveying" means the practice of
 134-2   land, boundary, or property surveying or other similar professional
 134-3   practices.  The term includes:
 134-4                     (A)  performing any service or work the adequate
 134-5   performance of which involves applying special knowledge of the
 134-6   principles of geodesy, mathematics, related applied and physical
 134-7   sciences, and relevant laws to the measurement or location of
 134-8   sites, points, lines, angles, elevations, natural features, and
 134-9   existing man-made works in the air, on the earth's surface, within
134-10   underground workings, and on the beds of bodies of water to
134-11   determine areas and volumes for:
134-12                           (i)  locating real property boundaries;
134-13                           (ii)  platting and laying out land and
134-14   subdivisions of land; or
134-15                           (iii)  preparing and perpetuating maps,
134-16   record plats, field note records, easements, and real property
134-17   descriptions that represent those surveys; and
134-18                     (B)  consulting, investigating, evaluating,
134-19   analyzing, planning, providing an expert surveying opinion or
134-20   testimony, and mapping to the extent those acts are performed in
134-21   connection with acts described by Paragraph (A).
134-22               (7)  "Registered professional land surveyor" means a
134-23   person registered by the board as a registered professional land
134-24   surveyor.
134-25               (8)  "State land surveying" means the science or
134-26   practice of land measurement according to established and
134-27   recognized methods engaged in as a profession or service for the
 135-1   public for compensation and consisting of the following activities
 135-2   conducted when the resulting field notes or maps are to be filed
 135-3   with the General Land Office:
 135-4                     (A)  determining by survey the location or
 135-5   relocation of original land grant boundaries and corners;
 135-6                     (B)  calculating area and preparing field note
 135-7   descriptions of surveyed and unsurveyed land or land in which the
 135-8   state or the permanent school fund has an interest; and
 135-9                     (C)  preparing maps showing the survey results.
135-10   (V.A.C.S. Art. 5282c, Secs. 2(1), (2), (3), (4) (part), (5), (6),
135-11   (9), (10).)
135-12         Sec. 1071.003.  APPLICATION OF SUNSET ACT. The Texas Board of
135-13   Professional Land Surveying is subject to Chapter 325, Government
135-14   Code (Texas Sunset Act).  Unless continued in existence as provided
135-15   by that chapter, the board is abolished and this chapter expires
135-16   September 1, 2003.  (V.A.C.S. Art. 5282c, Sec. 5.)
135-17         Sec. 1071.004.  APPLICATION OF CHAPTER. This chapter does not
135-18   require the use of a registered professional land surveyor to
135-19   establish an easement or a construction estimate that does not
135-20   involve the monumentation, delineation, or preparation of a metes
135-21   and bounds description.   (V.A.C.S. Art. 5282c, Sec. 3A.)
135-22           (Sections 1071.005-1071.050 reserved for expansion)
135-23        SUBCHAPTER B.  TEXAS BOARD OF PROFESSIONAL LAND SURVEYING
135-24         Sec. 1071.051.  BOARD MEMBERSHIP. (a)  The Texas Board of
135-25   Professional Land Surveying consists of 10 members as follows:
135-26               (1)  the commissioner;
135-27               (2)  two licensed state land surveyor members actively
 136-1   engaged in the practice of state land surveying for not less than
 136-2   the five years preceding appointment;
 136-3               (3)  four registered professional land surveyor members
 136-4   actively engaged in the practice of professional surveying in this
 136-5   state for not less than the five years preceding appointment; and
 136-6               (4)  three members who represent the public.
 136-7         (b)  The members of the board other than the commissioner are
 136-8   appointed by the governor with the advice and consent of the
 136-9   senate.  The governor shall appoint the licensed state land
136-10   surveyor board members on the recommendation of the commissioner.
136-11         (c)  A board member must be a United States citizen.
136-12         (d)  If the commissioner is absent, the commissioner's duties
136-13   as a board member shall be performed by:
136-14               (1)  the chief clerk of the General Land Office
136-15   appointed by the commissioner to perform any of the commissioner's
136-16   duties if the commissioner is sick, is absent, dies, or resigns; or
136-17               (2)  a licensed state land surveyor employee of the
136-18   General Land Office designated by the commissioner to serve as
136-19   director of surveying for the office.
136-20         (e)  A registered professional land surveyor board member may
136-21   not be licensed as a licensed state land surveyor.
136-22         (f)  For purposes of the experience required for appointment
136-23   as a registered professional land surveyor board member, the
136-24   teaching of surveying in a recognized school of engineering or
136-25   surveying may be regarded as the practice of professional land
136-26   surveying.
136-27         (g)  Appointments to the board shall be made without regard
 137-1   to the race, creed, sex, religion, or national origin of the
 137-2   appointee.  (V.A.C.S. Art. 5282c, Secs. 2(7), 6(a), (b), (c)
 137-3   (part), (d), (e) (part), (f) (part).)
 137-4         Sec. 1071.052.  ELIGIBILITY OF PUBLIC MEMBERS. A person is
 137-5   not eligible for appointment as a public member of the board if the
 137-6   person or the person's spouse:
 137-7               (1)  is registered, certified, or licensed by an
 137-8   occupational regulatory agency in the field of surveying;
 137-9               (2)  is employed by or participates in the management
137-10   of a business entity or other organization regulated by or
137-11   receiving funds from the board;
137-12               (3)  owns or controls, directly or indirectly, more
137-13   than a 10 percent interest in a business entity or other
137-14   organization regulated by or receiving funds from the board; or
137-15               (4)  uses or receives a substantial amount of tangible
137-16   goods, services, or funds from the board, other than compensation
137-17   or reimbursement authorized by law for board membership,
137-18   attendance, or expenses.  (V.A.C.S. Art. 5282c, Sec. 6(e) (part).) 
137-19         Sec. 1071.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)  In
137-20   this section, "Texas trade association" means a nonprofit,
137-21   cooperative, and voluntarily joined association of business or
137-22   professional competitors in this state designed to assist its
137-23   members and its industry or profession in dealing with mutual
137-24   business or professional problems and in promoting their common
137-25   interest.
137-26         (b)  An officer, employee, or paid consultant of a Texas
137-27   trade association in the field of surveying may not be a board
 138-1   member or an employee of the board who is exempt from the state's
 138-2   position classification plan or is compensated at or above the
 138-3   amount prescribed by the General Appropriations Act for step 1,
 138-4   salary group A17, of the position classification salary schedule.
 138-5         (c)  A person who is the spouse of an officer, manager, or
 138-6   paid consultant of a Texas trade association in the field of
 138-7   surveying may not be a board member or an employee of the board who
 138-8   is exempt from the state's position classification plan or is
 138-9   compensated at or above the amount prescribed by the General
138-10   Appropriations Act for step 1, salary group A17, of the position
138-11   classification salary schedule.
138-12         (d)  A person may not serve as a member of the board or act
138-13   as the general counsel to the board if the person is required to
138-14   register as a lobbyist under Chapter 305, Government Code, because
138-15   of the person's activities for compensation on behalf of a
138-16   profession related to the operation of the board. (V.A.C.S.
138-17   Art. 5282c, Secs. 7(a), (b), (c) (part), (d).)
138-18         Sec. 1071.054.  TERMS; OATH; VACANCY. (a)  Members of the
138-19   board appointed by the governor serve staggered six-year terms,
138-20   with the terms of one-third of those members expiring on January 31
138-21   of each odd-numbered year.
138-22         (b)  A board member appointed by the governor may not serve
138-23   more than two consecutive terms.
138-24         (c)  Before assuming the duties of office, each board member
138-25   shall file with the secretary of state a copy of the constitutional
138-26   oath of office taken by the member.
138-27         (d)  A vacancy on the board is filled by appointment by the
 139-1   governor in the manner provided by Section 1071.051 for the
 139-2   unexpired term. (V.A.C.S. Art. 5282c, Sec. 6(f) (part).)
 139-3         Sec. 1071.055.  OFFICERS. (a)  The governor shall designate
 139-4   one board member as the board's presiding officer to serve in that
 139-5   capacity at the pleasure of the governor.
 139-6         (b)  The board shall elect a member as assistant presiding
 139-7   officer at the first board meeting held after February 10 of each
 139-8   odd-numbered year.  (V.A.C.S. Art. 5282c, Sec. 8(a) (part).)
 139-9         Sec. 1071.056.  GROUNDS FOR REMOVAL. (a)  It is a ground for
139-10   removal from the board that a member:
139-11               (1)  does not have at the time of appointment the
139-12   qualifications required by Sections 1071.051 and 1071.052;
139-13               (2)  does not maintain during service on the board the
139-14   qualifications required by Sections 1071.051 and 1071.052;
139-15               (3)  violates a prohibition established by Section
139-16   1071.053;
139-17               (4)  cannot, because of illness or disability,
139-18   discharge the member's duties for a substantial part of the
139-19   member's term; or
139-20               (5)  is absent from more than half of the regularly
139-21   scheduled board meetings that the member is eligible to attend
139-22   during a calendar year unless the absence is excused by majority
139-23   vote of the board.
139-24         (b)  The validity of an action of the board is not affected
139-25   by the fact that the action is taken when a ground for removal of
139-26   a board member exists.
139-27         (c)  If the executive director has knowledge that a potential
 140-1   ground for removal exists, the executive director shall notify the
 140-2   presiding officer of the board of the potential ground.  The
 140-3   presiding officer shall then notify the governor that a potential
 140-4   ground for removal exists.  (V.A.C.S. Art. 5282c, Secs. 8(b), (c),
 140-5   (d).)
 140-6         Sec. 1071.057.  PER DIEM; REIMBURSEMENT. (a)  Each board
 140-7   member other than the commissioner is entitled to receive a per
 140-8   diem allowance as set by the legislature for each day that the
 140-9   member engages in official board duties, including time spent in
140-10   necessary travel.
140-11         (b)  Each board member other than the commissioner is
140-12   entitled to reimbursement for all legitimate expenses incurred in
140-13   performing the member's duties.  (V.A.C.S. Art. 5282c, Sec. 10
140-14   (part).)
140-15         Sec. 1071.058.  MEETINGS. (a)  The board shall hold meetings
140-16   at least twice each year at times and places determined by the
140-17   board to transact business and examine approved applicants for:
140-18               (1)  certification as a surveyor-in-training;
140-19               (2)  registration as a registered professional land
140-20   surveyor; or
140-21               (3)  licensing as a licensed state land surveyor.
140-22         (b)  The board shall hold regular and special meetings at the
140-23   times determined by the board.  A special meeting may be called by
140-24   the presiding officer or by the assistant presiding officer if the
140-25   presiding officer is out of the state or unable to act. (V.A.C.S.
140-26   Art. 5282c, Sec. 8(a) (part).)
140-27           (Sections 1071.059-1071.100 reserved for expansion)
 141-1             SUBCHAPTER C.  EXECUTIVE DIRECTOR AND PERSONNEL
 141-2         Sec. 1071.101.  EXECUTIVE DIRECTOR; BOND. (a)  The board
 141-3   shall employ an executive director to conduct the administrative
 141-4   affairs of the board under the board's direction.  The executive
 141-5   director serves at the pleasure of the board.
 141-6         (b)  The executive director shall file with the comptroller a
 141-7   bond in an amount equal to at least $2,500.  (V.A.C.S. Art. 5282c,
 141-8   Secs. 8(a) (part), 9(g) (part).)
 141-9         Sec. 1071.102.  PERSONNEL. (a)  The board shall employ or
141-10   retain  persons as necessary to properly perform the board's work
141-11   under this chapter, including investigative services.
141-12         (b)  The board may accept services necessary to perform the
141-13   board's work under this chapter that are provided by private
141-14   sources at no cost to the board.
141-15         (c)  Compensation paid by the board under this chapter may
141-16   not exceed compensation paid for similar work in other state
141-17   agencies. (V.A.C.S. Art. 5282c, Sec. 9(g) (part).)
141-18         Sec. 1071.103.  DIVISION OF RESPONSIBILITIES. The board shall
141-19   develop and implement policies that clearly define the respective
141-20   responsibilities of the board and the staff of the board. (V.A.C.S.
141-21   Art. 5282c, Sec. 9(g) (part).)
141-22         Sec. 1071.104.  QUALIFICATIONS AND STANDARDS OF CONDUCT
141-23   INFORMATION. The board shall provide, as often as necessary, to its
141-24   members and employees information regarding their:
141-25               (1)  qualifications for office or employment under this
141-26   chapter; and
141-27               (2)  responsibilities under applicable laws relating to
 142-1   standards of conduct for state officers or employees. (V.A.C.S.
 142-2   Art. 5282c, Sec. 9(g) (part).)
 142-3         Sec. 1071.105.  CAREER LADDER PROGRAM; PERFORMANCE
 142-4   EVALUATIONS. (a)  The executive director or the executive
 142-5   director's designee shall develop an intra-agency career ladder
 142-6   program. The program must require intra-agency posting of all
 142-7   nonentry level positions concurrently with any public posting.
 142-8         (b)  The executive director or the executive director's
 142-9   designee shall develop a system of annual performance evaluations.
142-10   All merit pay for board employees must be based on the system
142-11   established under this subsection.  (V.A.C.S. Art. 5282c, Secs.
142-12   11A(a), (b).)
142-13         Sec. 1071.106.  EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT.
142-14   (a)  The executive director or the executive director's designee
142-15   shall prepare and maintain a written policy statement to ensure
142-16   implementation of an equal employment opportunity program under
142-17   which all personnel transactions are made without regard to race,
142-18   color, disability, sex, religion, age, or national origin. The
142-19   policy statement must include:
142-20               (1)  personnel policies, including policies relating to
142-21   recruitment, evaluation, selection, appointment, training, and
142-22   promotion of personnel;
142-23               (2)  a comprehensive analysis of the board workforce
142-24   that meets federal and state guidelines;
142-25               (3)  procedures by which a determination can be made of
142-26   significant underuse in the board workforce of all persons for whom
142-27   federal or state guidelines encourage a more equitable balance; and
 143-1               (4)  reasonable methods to appropriately address those
 143-2   areas of significant underuse.
 143-3         (b)  A policy statement prepared under Subsection (a) must:
 143-4               (1)  cover an annual period;
 143-5               (2)  be updated at least annually; and
 143-6               (3)  be filed with the governor.
 143-7         (c)  The governor shall deliver a biennial report to the
 143-8   legislature based on information received under Subsection (b). The
 143-9   report may be made separately or as part of other biennial reports
143-10   made to the legislature.  (V.A.C.S.  Art. 5282c, Secs. 11A(c), (d),
143-11   (e).)
143-12           (Sections 1071.107-1071.150 reserved for expansion)
143-13                SUBCHAPTER D.  POWERS AND DUTIES OF BOARD
143-14         Sec. 1071.151.  RULEMAKING AUTHORITY. (a)  The board may
143-15   adopt and enforce reasonable and necessary rules and bylaws to
143-16   perform its duties under this chapter and to establish standards of
143-17   conduct and ethics for land surveyors.
143-18         (b)  The board by rule shall prescribe the minimum standards
143-19   for professional surveying.  (V.A.C.S. Art. 5282c, Sec. 9(a)
143-20   (part).)
143-21         Sec. 1071.152.  RECEIPT OF FEES; PAYMENT OF ADMINISTRATIVE
143-22   COSTS. (a)  The executive director shall receive and account for
143-23   fees received under this chapter.
143-24         (b)  General revenue of the state may not be used to pay the
143-25   costs of administering this chapter in an amount that exceeds the
143-26   amount of fees received under this chapter. (V.A.C.S. Art. 5282c,
143-27   Sec. 13 (part).)
 144-1         Sec. 1071.153.  OFFICE SPACE. The board shall arrange for
 144-2   suitable office space and equipment as the board determines to be
 144-3   necessary.  The rental of office space and cost of equipment are
 144-4   considered administrative expenses of the board. (V.A.C.S.
 144-5   Art. 5282c, Sec. 9(h).)
 144-6         Sec. 1071.154.  SURVEYOR ROSTER; INFORMATION PROVIDED TO
 144-7   SURVEYORS. (a)  The board shall publish annually, at a time
 144-8   determined by the board:
 144-9               (1)  a roster containing the name and place of business
144-10   of each land surveyor;
144-11               (2)  the rules adopted by the board; and
144-12               (3)  a copy of this chapter.
144-13         (b)  The board shall charge a fee in an amount reasonable and
144-14   necessary to cover the costs of reproducing and mailing a copy of
144-15   the roster to a person who requests a copy.
144-16         (c)  The board shall send annually to each land surveyor a
144-17   copy of this chapter and of the board's rules. (V.A.C.S.
144-18   Art. 5282c, Secs. 9(c), (d).)
144-19         Sec. 1071.155.  BOARD RECORDS. (a)  The board shall maintain
144-20   a record of its proceedings, including a record of money received
144-21   and spent by the board and a register of each applicant for
144-22   registration or licensing.  The record shall be open for public
144-23   inspection at all reasonable times.
144-24         (b)  The register must include:
144-25               (1)  the name, age, and place of residence of the
144-26   applicant;
144-27               (2)  the application date;
 145-1               (3)  the applicant's place of business;
 145-2               (4)  the applicant's qualifications;
 145-3               (5)  if the application is rejected, the reasons for
 145-4   the rejection;
 145-5               (6)  the date and result of each examination;
 145-6               (7)  the date and number of any certificate of
 145-7   registration or license issued; and
 145-8               (8)  any other information the board determines
 145-9   necessary. (V.A.C.S. Art. 5282c, Sec. 11.)
145-10         Sec. 1071.156.  REPRESENTATION OF BOARD AT CERTAIN MEETINGS.
145-11   The board's general counsel and board members may appear and
145-12   represent the board at committee meetings and other formal meetings
145-13   within the legislative or executive branch. (V.A.C.S. Art. 5282c,
145-14   Sec. 7(c) (part).)
145-15         Sec. 1071.157.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
145-16   BIDDING. (a)  The board by rule shall prescribe standards for
145-17   compliance with Subchapter A, Chapter 2254, Government Code.
145-18         (b)  Except as provided by Subsection (a), the board may not
145-19   adopt rules restricting advertising or competitive bidding by a
145-20   person regulated by the board except to prohibit false, misleading,
145-21   or deceptive practices by that person.
145-22         (c)  The board may not include in its rules to prohibit
145-23   false, misleading, or deceptive practices by a person regulated by
145-24   the board a rule that:
145-25               (1)  restricts the use of any advertising medium;
145-26               (2)  restricts the person's personal appearance or use
145-27   of the person's voice in an advertisement;
 146-1               (3)  relates to the size or duration of an
 146-2   advertisement by the person; or
 146-3               (4)  restricts the person's advertisement under a trade
 146-4   name. (V.A.C.S. Art. 5282c, Sec. 9(a) (part).)
 146-5           (Sections 1071.158-1071.200 reserved for expansion)
 146-6             SUBCHAPTER E.  PUBLIC INTEREST INFORMATION AND
 146-7                          COMPLAINT PROCEDURES
 146-8         Sec. 1071.201.  PUBLIC INTEREST INFORMATION. (a)  The board
 146-9   shall prepare information of public interest describing the
146-10   functions of the board and the procedures by which complaints are
146-11   filed with and resolved by the board.
146-12         (b)  The board shall make the information available to the
146-13   public and appropriate state agencies. (V.A.C.S. Art. 5282c, Sec.
146-14   9(f).)
146-15         Sec. 1071.202.  PUBLIC PARTICIPATION. The board shall develop
146-16   and implement policies that provide the public with a reasonable
146-17   opportunity to appear before the board and to speak on any issue
146-18   under the board's jurisdiction. (V.A.C.S. Art. 5282c, Sec. 9(i).)
146-19         Sec. 1071.203.  COMPLAINTS. (a)  Any person may file a
146-20   complaint with the board regarding a violation of this chapter or a
146-21   board rule.
146-22         (b)  The board by rule shall establish methods by which
146-23   consumers and service recipients are notified of the name, mailing
146-24   address, and telephone number of the board for the purpose of
146-25   directing complaints to the board.  The board may provide for that
146-26   notice:
146-27               (1)  on each registration form, application, or written
 147-1   contract for services of a person regulated under this chapter;
 147-2               (2)  on a sign prominently displayed in the place of
 147-3   business of each person regulated under this chapter; or
 147-4               (3)  in a bill for services provided by a person
 147-5   regulated under this chapter. (V.A.C.S. Art. 5282c, Secs. 24(a)
 147-6   (part); 29(a).)
 147-7         Sec. 1071.204.  RECORDS OF COMPLAINTS. (a)  The board shall
 147-8   keep an information file about each complaint filed with the board
 147-9   that the board has authority to resolve.
147-10         (b)  If a written complaint that the board has authority to
147-11   resolve is filed with the board, the board, at least quarterly and
147-12   until final disposition of the complaint, shall notify the parties
147-13   to the complaint of the status of the complaint unless the notice
147-14   would jeopardize an undercover investigation. (V.A.C.S. Art. 5282c,
147-15   Secs. 29(b), (c).)
147-16           (Sections 1071.205-1071.250 reserved for expansion)
147-17                 SUBCHAPTER F.  REGISTRATION, LICENSING,
147-18                     AND CERTIFICATION REQUIREMENTS
147-19         Sec. 1071.251.  REGISTRATION, LICENSE, OR CERTIFICATE
147-20   REQUIRED. (a)  In this section, "offer to practice" means to
147-21   represent by verbal claim, sign, letterhead, card, or other method
147-22   that a person is registered or licensed to perform professional
147-23   surveying in this state.
147-24         (b)  A person may not engage in the practice of professional
147-25   surveying unless the person is registered, licensed, or certified
147-26   as provided by this chapter.
147-27         (c)  A person may not offer to practice professional
 148-1   surveying in this state unless the person is registered or licensed
 148-2   as provided by this chapter.
 148-3         (d)  A person may not use in connection with the person's
 148-4   name or use or advertise a title or description that tends to
 148-5   convey the impression that the person is a professional land
 148-6   surveyor unless the person is registered or licensed under this
 148-7   chapter. (V.A.C.S. Art. 5282c, Secs. 2(11); 3 (part); 15(a).)
 148-8         Sec. 1071.252.  APPLICATION REQUIREMENTS. (a)  An applicant
 148-9   for certification as a surveyor-in-training, registration as a
148-10   registered professional land surveyor, or licensing as a licensed
148-11   state land surveyor must file a written application with the board
148-12   accompanied by an application fee in an amount determined by the
148-13   board.
148-14         (b)  An application must be made on a form prescribed and
148-15   furnished by the board and contain statements made under oath that
148-16   show the applicant's education and experience.  The application
148-17   must contain a detailed summary of the applicant's education and
148-18   experience and references from at least three registered
148-19   professional land surveyors having personal knowledge of the
148-20   applicant's surveying experience.
148-21         (c)  After the board determines that the applicant is
148-22   qualified to take the appropriate section of the examination under
148-23   Section 1071.256, the board shall set the examination section the
148-24   applicant is approved to take and notify the applicant of the
148-25   examination section and of the time and place of the examination.
148-26   The applicant may take the examination section on payment of an
148-27   examination fee in an amount determined by the board. (V.A.C.S.
 149-1   Art. 5282c, Secs. 16(a), (b).)
 149-2         Sec. 1071.253.  SURVEYOR-IN-TRAINING CERTIFICATE. (a)  An
 149-3   applicant for a surveyor-in-training certificate must:
 149-4               (1)  have earned a bachelor of science degree in
 149-5   surveying from an accredited institution of higher education;
 149-6               (2)  have:
 149-7                     (A)  earned a bachelor's degree from an
 149-8   accredited institution of higher education that included at least
 149-9   32 semester hours in a combination of courses acceptable to the
149-10   board in:
149-11                           (i)  civil engineering;
149-12                           (ii)  land surveying;
149-13                           (iii)  mathematics;
149-14                           (iv)  photogrammetry;
149-15                           (v)  forestry;
149-16                           (vi)  land law; or
149-17                           (vii)  the physical sciences; and
149-18                     (B)  completed at least one year of experience
149-19   acceptable to the board in delegated responsible charge as a
149-20   subordinate to a registered professional land surveyor actively
149-21   engaged in professional surveying;
149-22               (3)  have:
149-23                     (A)  earned an associate degree in surveying from
149-24   an accredited institution of higher education; and
149-25                     (B)  completed at least two years of experience
149-26   acceptable to the board in delegated responsible charge as a
149-27   subordinate to a registered professional land surveyor actively
 150-1   engaged in professional surveying;
 150-2               (4)  have:
 150-3                     (A)  successfully completed a course of
 150-4   instruction consisting of 32 semester hours in land surveying or
 150-5   the equivalent number of semester hours in board-approved courses
 150-6   related to surveying; and
 150-7                     (B)  completed at least two years of experience
 150-8   acceptable to the board in delegated responsible charge as a
 150-9   subordinate to a registered professional land surveyor actively
150-10   engaged in professional surveying; or
150-11               (5)  have:
150-12                     (A)  graduated from an accredited high school;
150-13                     (B)  completed at least four years of experience
150-14   acceptable to the board in delegated responsible charge as a
150-15   subordinate to a registered professional land surveyor actively
150-16   engaged in professional surveying; and
150-17                     (C)  provided evidence satisfactory to the board
150-18   that the applicant is self-educated in professional surveying.
150-19         (b)  On proof that an applicant has the qualifications
150-20   required by Subsection (a), the board shall allow the applicant to
150-21   take an examination consisting of parts of the examination under
150-22   Section 1071.256, the contents of which are as determined or
150-23   approved by the board.
150-24         (c)  The board shall issue a surveyor-in-training certificate
150-25   to an applicant who passes the applicable parts of the examination
150-26   taken under Subsection (b).  The certificate is valid until the
150-27   earlier of:
 151-1               (1)  the sixth anniversary of the date of issuance; or
 151-2               (2)  the date the certificate holder becomes registered
 151-3   as a registered professional land surveyor. (V.A.C.S. Art. 5282c,
 151-4   Secs. 15(e), (f); 16(f) (part).)
 151-5         Sec. 1071.254.  QUALIFICATIONS FOR REGISTRATION AS REGISTERED
 151-6   PROFESSIONAL LAND SURVEYOR. (a)  An applicant for registration as a
 151-7   registered professional land surveyor must:
 151-8               (1)  hold a certificate as a surveyor-in-training;
 151-9               (2)  have at least two years of experience satisfactory
151-10   to the board as a surveyor-in-training in performing surveying in
151-11   delegated responsible charge as a subordinate to a surveyor
151-12   registered or licensed to engage in the practice of surveying in
151-13   this state or in another state having registration or licensing
151-14   requirements equivalent to the requirements of this state; and
151-15               (3)  if the application is filed after January 1, 2003,
151-16   have earned a bachelor's degree from an accredited institution of
151-17   higher education that included at least 32 semester hours in a
151-18   combination of courses acceptable to the board in:
151-19                     (A)  civil engineering;
151-20                     (B)  land surveying;
151-21                     (C)  mathematics;
151-22                     (D)  photogrammetry;
151-23                     (E)  forestry;
151-24                     (F)  land law; or
151-25                     (G)  the physical sciences.
151-26         (b)  An applicant is entitled to registration as a registered
151-27   professional land surveyor if the applicant meets the
 152-1   qualifications prescribed by Subsection (a) and is approved to take
 152-2   and passes the required sections of the examination prescribed
 152-3   under Section 1071.256. (V.A.C.S. Art. 5282c, Secs. 15(b) (part),
 152-4   (c), (d); 16(f) (part).)
 152-5         Sec. 1071.255.  QUALIFICATIONS FOR LICENSING AS LICENSED
 152-6   STATE LAND SURVEYOR; OATH. (a)  A registered professional land
 152-7   surveyor is entitled to be licensed as a licensed state land
 152-8   surveyor if the person is approved to take and passes the
 152-9   appropriate sections of the examination prescribed under Section
152-10   1071.256.
152-11         (b)  The board may not issue a license to a licensed state
152-12   land surveyor until the applicant takes the official oath stating
152-13   that the person will faithfully, impartially, and honestly perform
152-14   all the duties of a licensed state land surveyor to the best of the
152-15   person's skill and ability in all matters in which the person may
152-16   be employed.
152-17         (c)  The board may not issue a license as a licensed state
152-18   land surveyor to a person residing outside of this state. (V.A.C.S.
152-19   Art. 5282c, Secs. 15(b) (part), 16(f) (part), 19.)
152-20         Sec. 1071.256.  EXAMINATION. (a)  The board shall prescribe
152-21   the scope of the written examination and examination procedures
152-22   with special reference to the applicant's ability in order to
152-23   protect the public safety, welfare, and property rights.
152-24         (b)  The examination for an applicant for registration as a
152-25   registered professional land surveyor must be developed and given
152-26   as provided by this chapter under board rules designed to determine
152-27   the knowledge and ability of the applicant.
 153-1         (c)  The examination for an applicant for licensing as a
 153-2   licensed state land surveyor must be developed under board rules
 153-3   and  include examination on:
 153-4               (1)  the theory of surveying;
 153-5               (2)  the law of land boundaries;
 153-6               (3)  the history and functions of the General Land
 153-7   Office; and
 153-8               (4)  other matters pertaining to surveying as
 153-9   determined by the board. (V.A.C.S. Art. 5282c, Secs. 15(b) (part),
153-10   16(c).)
153-11         Sec. 1071.257.  EXAMINATION RESULTS. (a)  The board shall
153-12   notify each examinee of the examination results not later than the
153-13   30th day after the date the board receives notice of all
153-14   examination results.
153-15         (b)  If requested in writing by a person who fails an
153-16   examination administered under this chapter, the board shall
153-17   provide to the person an analysis of the person's performance on
153-18   the examination.  The analysis shall be provided in a summary form
153-19   that does not compromise the integrity of the examination.
153-20   (V.A.C.S. Art. 5282c, Sec. 16(d).)
153-21         Sec. 1071.258.  REEXAMINATION; FEE. An applicant who fails an
153-22   examination may apply to take a subsequent examination not earlier
153-23   than six months after the date of the failed examination by filing
153-24   an updated application and paying an additional examination fee not
153-25   to exceed $100. (V.A.C.S. Art. 5282c, Sec. 16(e).)
153-26         Sec. 1071.259.  REGISTRATION OF OUT-OF-STATE SURVEYORS. (a)
153-27   The board may waive any registration requirement for an applicant
 154-1   who holds a license from another state having registration or
 154-2   licensing requirements substantially equivalent to the registration
 154-3   requirements of this state.
 154-4         (b)  The board may issue a certificate of registration as a
 154-5   registered professional land surveyor to an applicant under this
 154-6   section who meets all waived and unwaived registration requirements
 154-7   and who:
 154-8               (1)  applies to the board for a certificate of
 154-9   registration;
154-10               (2)  pays a fee set by the board in an amount not to
154-11   exceed $100; and
154-12               (3)  passes an examination on Texas surveying.
154-13         (c)  The board shall determine the contents of the
154-14   examination under Subsection (b)(3).  The examination may not
154-15   exceed four hours in duration.  (V.A.C.S. Art. 5282c, Sec. 20.)
154-16         Sec. 1071.260.  REGISTRATION NUMBER; FORM OF CERTIFICATE OR
154-17   LICENSE. (a)  The board shall issue to each registered professional
154-18   land surveyor a registration number that may not be assigned to or
154-19   used by any other surveyor. The number must be on the certificate
154-20   of registration and recorded in the board's permanent records and
154-21   is the surveyor's registration number for use on all official
154-22   documents.
154-23         (b)  Each certificate of registration and license issued by
154-24   the board must show the full name of the registration holder or
154-25   license holder and shall be signed by the presiding officer and the
154-26   executive director of the board.  (V.A.C.S. Art. 5282c, Sec. 16(f)
154-27   (part).)
 155-1         Sec. 1071.261.  DISPLAY OF CERTIFICATE AND LICENSE. (a)  An
 155-2   original or renewal certificate of registration or license is
 155-3   evidence that the person whose name and registration number appear
 155-4   on the document is qualified to practice as a registered
 155-5   professional land surveyor or licensed state land surveyor.
 155-6         (b)  A person holding a certificate of registration or
 155-7   license shall display the certificate or license at the person's
 155-8   place of business or practice.  The person shall be prepared to
 155-9   substantiate that the certificate or license has been renewed for
155-10   the current year. (V.A.C.S. Art. 5282c, Sec. 17(c) (part).)
155-11         Sec. 1071.262.  REPLACEMENT OF REVOKED, LOST, OR DESTROYED
155-12   CERTIFICATE OR LICENSE. The board may issue, on payment of a $20
155-13   fee and subject to board rules, a new certificate of registration
155-14   or license to replace a certificate or license that has been
155-15   revoked, lost, destroyed, or mutilated.  (V.A.C.S. Art. 5282c, Sec.
155-16   24(c) (part).)
155-17         Sec. 1071.263.  INACTIVE STATUS. (a)  A registered
155-18   professional land surveyor may request inactive status at any time
155-19   before the expiration date of the person's certificate of
155-20   registration.  A registration holder on inactive status may not
155-21   practice surveying.
155-22         (b)  A registration holder on inactive status must pay an
155-23   annual fee of $10.
155-24         (c)  A registration holder on inactive status is not required
155-25   to:
155-26               (1)  comply with the professional development
155-27   requirements adopted by the board; or
 156-1               (2)  take an examination for reinstatement to active
 156-2   status.
 156-3         (d)  To return to active status, a registration holder on
 156-4   inactive status must file with the board a written notice
 156-5   requesting reinstatement to active status. (V.A.C.S. Art. 5282c,
 156-6   Sec. 17(f).)
 156-7           (Sections 1071.264-1071.300 reserved for expansion)
 156-8           SUBCHAPTER G.  RENEWAL OF REGISTRATION AND LICENSE
 156-9         Sec. 1071.301.  ANNUAL RENEWAL REQUIRED. (a)  The board by
156-10   rule may adopt a system under which certificates of registration
156-11   and licenses expire on various dates during the year. A certificate
156-12   of registration or a license issued under this chapter expires on
156-13   December 31 of each year or  on a date set by board rule as part of
156-14   a staggered renewal system.
156-15         (b)  A renewal certificate must have the same registration
156-16   number as the original certificate. (V.A.C.S. Art. 5282c, Secs.
156-17   9(e); 17(a) (part), (c) (part).)
156-18         Sec. 1071.302.  NOTICE OF EXPIRATION. Before the 30th day
156-19   preceding the expiration date of a person's certificate of
156-20   registration or license, the board shall send written notice of the
156-21   impending expiration to the person at the person's last known
156-22   address according to the board's records. (V.A.C.S. Art. 5282c,
156-23   Sec. 17(c) (part).)
156-24         Sec. 1071.303.  PROCEDURE FOR RENEWAL. (a)  A person may
156-25   renew an unexpired certificate of registration or license by paying
156-26   the required renewal fee to the board before the expiration date.
156-27         (b)  A person whose certificate or license has been expired
 157-1   for 90 days or less may renew the certificate or license by paying
 157-2   to the board the required renewal fee and a fee that is equal to
 157-3   half of the amount of the examination fee for the certificate or
 157-4   license.
 157-5         (c)  A person whose certificate or license has been expired
 157-6   for more than 90 days but less than one year may renew the
 157-7   certificate or license by paying to the board all unpaid renewal
 157-8   fees and a fee that is equal to the amount of the examination fee
 157-9   for the certificate or license.
157-10         (d)  A person whose certificate or license has been expired
157-11   for one year or more may not renew the certificate or license.  The
157-12   person may obtain a new certificate or license by submitting to
157-13   reexamination and complying with the requirements for obtaining an
157-14   original certificate or license. (V.A.C.S. Art. 5282c, Secs. 17(a)
157-15   (part), (b).)
157-16         Sec. 1071.304.  NOTICE OF FAILURE TO RENEW STATE LAND
157-17   SURVEYOR LICENSE. The executive director shall immediately notify
157-18   the commissioner when the license of a licensed state land surveyor
157-19   expires due to the person's failure to timely renew the license.
157-20   (V.A.C.S. Art. 5282c, Sec. 17(c) (part).)
157-21         Sec. 1071.305.  CONTINUING PROFESSIONAL EDUCATION. (a)  As a
157-22   condition for renewal of a certificate of registration, the board
157-23   shall require a registered professional land surveyor to
157-24   successfully complete continuing professional education courses as
157-25   prescribed by board rule.  The board's rules must provide that the
157-26   continuing professional education requirement may be met by
157-27   completing annually not more than eight hours, a calendar day, of
 158-1   professional development courses or programs.
 158-2         (b)  The board may also grant professional education credit
 158-3   for:
 158-4               (1)  satisfactory completion of academic work at an
 158-5   accredited institution;
 158-6               (2)  teaching or consulting in a program approved by
 158-7   the board; or
 158-8               (3)  authorship of a technical paper approved by the
 158-9   board.
158-10         (c)  A registered professional land surveyor shall maintain
158-11   records relating to the person's professional education activities.
158-12   The records are subject to audit by the board on application by the
158-13   person for renewal of registration. (V.A.C.S. Art. 5282c, Secs.
158-14   17(d) (part), (e).)
158-15           (Sections 1071.306-1071.350 reserved for expansion)
158-16                SUBCHAPTER H.  PRACTICE OF LAND SURVEYING
158-17         Sec. 1071.351.  PERFORMANCE OF LAND SURVEYING; OFFICIAL SEAL.
158-18   (a) In this section, "employee" means a person who receives
158-19   compensation for work performed under the direct supervision of a
158-20   land surveyor.
158-21         (b)  On receipt of a certificate of registration, a
158-22   registered professional land surveyor shall obtain an authorized
158-23   seal bearing the person's name and registration number and the
158-24   title "Registered Professional Land Surveyor."
158-25         (c)  Each licensed state land surveyor shall obtain a seal of
158-26   office.  The seal must contain the license holder's official title,
158-27   "Licensed State Land Surveyor," around the margin and the word
 159-1   "Texas" between the points of the star in the seal.  A licensed
 159-2   state land surveyor shall attest with the seal all official acts
 159-3   authorized under law.  An act, paper, or map of a licensed state
 159-4   land surveyor may not be filed in the county records of the General
 159-5   Land Office unless it is certified to under the surveyor's seal.
 159-6         (d)  A registration holder or license holder may not affix
 159-7   the person's name, seal, or certification to any plat, design,
 159-8   specification, or other professional surveying work that is
 159-9   prepared by a person who is not registered or licensed under this
159-10   chapter unless the work is performed by an employee under the
159-11   direct supervision of the registration holder or license holder.
159-12         (e)  A registration holder or license holder may not allow a
159-13   person who is not registered or licensed under this chapter to
159-14   exert control over the end product of professional surveying work.
159-15         (f)  If professional surveying is performed as a joint
159-16   venture of an association of two or more firms, each firm shall use
159-17   the seal of the surveyor having primary responsibility for the
159-18   venture. (V.A.C.S. Art. 5282c, Sec. 18.)
159-19         Sec. 1071.352.  SURVEYING BY BUSINESS ENTITY. (a)  An
159-20   association, partnership, or corporation may not offer professional
159-21   surveying services unless a registered professional land surveyor
159-22   is employed full-time where the services are offered.
159-23         (b)  A registration holder or license holder may organize or
159-24   engage in any form of individual or group practice of surveying
159-25   allowed by state statute.  The individual or group practice must
159-26   properly identify the registration holder or license holder who is
159-27   responsible for the practice. (V.A.C.S. Art. 5282c, Secs. 21(a),
 160-1   (b) (part).)
 160-2         Sec. 1071.353.  PRACTICE UNDER ASSUMED NAME. A person
 160-3   engaging in the practice of surveying in this state under any
 160-4   business title other than the real name of one or more persons
 160-5   authorized to engage in public or state land surveying, whether
 160-6   individually or as an association, partnership, or corporation,
 160-7   shall file with the board, in the manner prescribed by the board, a
 160-8   certificate stating the full name and place of residence of each
 160-9   person engaging in the practice and the place, including the street
160-10   address, city, and zip code, where the practice or business is
160-11   principally conducted.  (V.A.C.S. Art. 5282c, Sec. 21(b) (part).)
160-12         Sec. 1071.354.  JURISDICTION OF LICENSED STATE LAND
160-13   SURVEYORS. A licensed state land surveyor may perform surveys under
160-14   Section 21.011, Natural Resources Code, and is subject to the
160-15   commissioner's direction in matters of land surveying in cases that
160-16   come under the supervision of the commissioner.  The jurisdiction
160-17   of the license holder is coextensive with the limits of the state.
160-18   (V.A.C.S. Art. 5282c, Sec. 25(a).)
160-19         Sec. 1071.355.  LICENSED STATE LAND SURVEYOR AS AGENT OF
160-20   STATE. A licensed state land surveyor is an agent of this state
160-21   when acting in that official capacity.  (V.A.C.S. Art. 5282c, Sec.
160-22   2(4) (part).)
160-23         Sec. 1071.356.  RESIGNATION OF LICENSED STATE LAND SURVEYOR.
160-24   (a)  A licensed state land surveyor may resign at any time by
160-25   filing a written resignation with the board.  On receipt of the
160-26   resignation, the board shall inform the General Land Office.
160-27         (b)  A licensed state land surveyor who resigns under this
 161-1   section is not entitled to reinstatement of the person's license.
 161-2   To obtain a new license, the person must meet the requirements for
 161-3   an original license.  (V.A.C.S. Art. 5282c, Sec. 22.)
 161-4         Sec. 1071.357.  COUNTY SURVEYORS. (a)  A licensed state land
 161-5   surveyor may hold office as a county surveyor.  If elected, the
 161-6   person must qualify as provided by law for county surveyors.
 161-7         (b)  The election of a licensed state land surveyor as county
 161-8   surveyor does not limit the jurisdiction of the license holder to
 161-9   that county, and the election of a county surveyor for any
161-10   particular county does not prevent any licensed state land surveyor
161-11   from performing the duties of a surveyor in that county.  (V.A.C.S.
161-12   Art. 5282c, Sec. 25(b).)
161-13         Sec. 1071.358.  COURT ORDER FOR PERMISSION TO CROSS LAND. (a)
161-14   A licensed state land surveyor engaged in surveying in the person's
161-15   official capacity who is denied permission to cross land owned by a
161-16   private party is entitled to a court order to enforce the license
161-17   holder's authority to cross the land.
161-18         (b)  The attorney general shall promptly apply for an order
161-19   under this section from the district court.  Venue for the action
161-20   is in the county in which the land is located.
161-21         (c)  The court shall grant the order on proof that the person
161-22   is licensed under this chapter and acting in the person's official
161-23   capacity.  (V.A.C.S. Art. 5282c, Sec. 25(d) (part).)
161-24         Sec. 1071.359.  LICENSED STATE LAND SURVEYOR FIELD NOTES. (a)
161-25   Official field notes made by a licensed state land surveyor must be
161-26   signed by the surveyor, followed by the designation "Licensed State
161-27   Land Surveyor."
 162-1         (b)  Field notes and plats prepared by a licensed state land
 162-2   surveyor must conform to Sections 21.041 and 21.042, Natural
 162-3   Resources Code.
 162-4         (c)  Field notes made by a licensed state land surveyor in
 162-5   any county in this state are admissible in evidence. (V.A.C.S.
 162-6   Art. 5282c, Secs. 25(c); 26.)
 162-7         Sec. 1071.360.  DISCOVERY OF UNDISCLOSED LAND. A licensed
 162-8   state land surveyor who discovers an undisclosed tract of public
 162-9   land shall:
162-10               (1)  make that fact known to any person who has the
162-11   tract enclosed; and
162-12               (2)  forward a report of the existence of the tract and
162-13   the tract's acreage to the commissioner.  (V.A.C.S. Art. 5282c,
162-14   Sec. 27.)
162-15         Sec. 1071.361.  ACCESS TO COUNTY SURVEYOR RECORDS. (a)  A
162-16   licensed state land surveyor is entitled to access to a county
162-17   surveyor's records for information and examination.
162-18         (b)  An examination fee may not be charged if the
162-19   investigation of the records is for the purpose of:
162-20               (1)  making a survey of public land under the law
162-21   regulating the sale or lease of public land; or
162-22               (2)  identifying and establishing the boundaries of
162-23   public land.
162-24         (c)  A licensed state land surveyor who examines records
162-25   under this section shall comply with any regulations prescribed by
162-26   the county surveyor or the commissioners court for protecting and
162-27   preserving the records.  (V.A.C.S. Art. 5282c, Sec. 28(c).)
 163-1           (Sections 1071.362-1071.400 reserved for expansion)
 163-2                 SUBCHAPTER I.  DISCIPLINARY PROCEDURES
 163-3         Sec. 1071.401.  DISCIPLINARY POWERS OF BOARD. (a)  The board
 163-4   shall revoke or suspend a certificate of registration or license,
 163-5   place on probation a person whose certificate or license has been
 163-6   suspended, or reprimand a registration holder or license holder
 163-7   for:
 163-8               (1)  fraud or deceit in obtaining a certificate or
 163-9   license under this chapter;
163-10               (2)  gross negligence, incompetence, or misconduct in
163-11   the practice of surveying as a land surveyor; or
163-12               (3)  a violation of this chapter or a board rule.
163-13         (b)  The license of a licensed state land surveyor is subject
163-14   to revocation if the license holder is found to be directly or
163-15   indirectly interested in the purchase or acquisition of title to
163-16   public land.  (V.A.C.S. Art. 5282c, Secs. 23(a), (b).)
163-17         Sec. 1071.402.  DISCIPLINARY PROCEEDINGS. (a)  The board may
163-18   institute proceedings against a registration holder or license
163-19   holder on the board's behalf without a formal written third-party
163-20   complaint.
163-21         (b)  The board shall investigate each alleged violation of an
163-22   applicable statute that is reported and substantiated by an
163-23   affidavit.  The board may employ investigators and inspectors as
163-24   necessary to properly enforce this chapter.  (V.A.C.S. Art. 5282c,
163-25   Sec. 24(a) (part).)
163-26         Sec. 1071.403.  RIGHT TO HEARING; ADMINISTRATIVE PROCEDURE.
163-27   (a)  If the board proposes to suspend or revoke a person's
 164-1   certificate of registration or license, the person is entitled to a
 164-2   hearing before the board or a hearings officer appointed by the
 164-3   board.
 164-4         (b)  The board shall prescribe procedures by which a decision
 164-5   to suspend or revoke a certificate of registration or license is
 164-6   made by or appealable to the board.  (V.A.C.S. Art. 5282c, Sec.
 164-7   24(b).)
 164-8         Sec. 1071.404.  PROBATION. The board may require a person
 164-9   whose certificate of registration or license suspension is probated
164-10   to:
164-11               (1)  report regularly to the board on matters that are
164-12   the basis of the probation;
164-13               (2)  limit practice to the areas prescribed by the
164-14   board; or
164-15               (3)  continue or renew professional education until the
164-16   practitioner attains a degree of skill satisfactory to the board in
164-17   those areas that are the basis of the probation.  (V.A.C.S.
164-18   Art. 5282c, Sec. 23(d).)
164-19         Sec. 1071.405.  REISSUANCE OF CERTIFICATE OR LICENSE. The
164-20   board for reasons the board determines sufficient may reissue a
164-21   certificate of registration or license to a surveyor whose
164-22   certificate or license has been revoked.  At least six board
164-23   members must vote in favor of reissuing the certificate or license.
164-24   (V.A.C.S. Art. 5282c, Sec. 24(c) (part).)
164-25           (Sections 1071.406-1071.450 reserved for expansion)
164-26                  SUBCHAPTER J.  ADMINISTRATIVE PENALTY
164-27         Sec. 1071.451.  IMPOSITION OF PENALTY. The board may impose
 165-1   an administrative penalty on a person who violates this chapter or
 165-2   a rule adopted or order issued under this chapter.  (V.A.C.S.
 165-3   Art. 5282c, Sec. 23A(a).)
 165-4         Sec. 1071.452.  AMOUNT OF PENALTY. (a)  The amount of an
 165-5   administrative penalty may not exceed $1,500 for each violation.
 165-6         (b)  In determining the amount of the penalty, the board
 165-7   shall consider:
 165-8               (1)  the seriousness of the violation, including the
 165-9   nature, circumstances, extent, and gravity of any prohibited acts;
165-10               (2)  the economic damage to property caused by the
165-11   violation;
165-12               (3)  the history of previous violations;
165-13               (4)  the amount necessary to deter a future violation;
165-14               (5)  efforts to correct the violation; and
165-15               (6)  any other matter that justice may require.
165-16   (V.A.C.S. Art. 5282c, Secs. 23A(b), (c).)
165-17         Sec. 1071.453.  REPORT AND NOTICE OF VIOLATION AND PENALTY.
165-18   (a)  If the executive director determines after an investigation of
165-19   a possible violation and the facts surrounding the possible
165-20   violation that a violation has occurred, the executive director may
165-21   issue a violation report to the board stating:
165-22               (1)  the facts on which the determination is based; and
165-23               (2)  the recommendation of the executive director that
165-24   an administrative penalty be imposed, including a recommendation on
165-25   the amount of the penalty.
165-26         (b)  The executive director shall base the recommended amount
165-27   of the proposed penalty on the seriousness of the violation
 166-1   determined by considering the factors listed in Section
 166-2   1071.452(b).
 166-3         (c)  Not later than the 14th day after the date the report is
 166-4   issued, the executive director shall give written notice of the
 166-5   report to the person charged. The notice must:
 166-6               (1)  include a brief summary of the alleged violation;
 166-7               (2)  state the amount of the recommended penalty; and
 166-8               (3)  inform the person of the person's right to a
 166-9   hearing on the occurrence of the violation, the amount of the
166-10   penalty, or both.  (V.A.C.S. Art. 5282c, Secs. 23A(d), (e).)
166-11         Sec. 1071.454.  PENALTY TO BE PAID OR HEARING REQUESTED. (a)
166-12   Not later than the 20th day after the date the person receives the
166-13   notice under Section 1071.453, the person may:
166-14               (1)  accept the executive director's determination,
166-15   including the recommended administrative penalty; or
166-16               (2)  request in writing a hearing on the determination.
166-17         (b)  If the person accepts the executive director's
166-18   determination, the board by order shall approve the determination
166-19   and order payment of the recommended penalty. (V.A.C.S. Art. 5282c,
166-20   Secs. 23A(f), (g).)
166-21         Sec. 1071.455.  HEARING ON RECOMMENDATIONS. (a)  If the
166-22   person requests a hearing or fails to respond in a timely manner to
166-23   the notice under Section 1071.453, the board shall set a hearing
166-24   and give notice of the hearing to the person.
166-25         (b)  A proceeding under this section is subject to Chapter
166-26   2001, Government Code.  (V.A.C.S. Art. 5282c, Sec. 23A(h).)
166-27         Sec. 1071.456.  NOTICE OF DECISION BY BOARD. The board shall
 167-1   give notice of the board's order to the person charged.  The notice
 167-2   must include:
 167-3               (1)  the findings of fact and conclusions of law
 167-4   separately stated;
 167-5               (2)  the amount of any administrative penalty imposed;
 167-6               (3)  a statement of the person's right to judicial
 167-7   review of the board's order; and
 167-8               (4)  other information required by law.  (V.A.C.S.
 167-9   Art. 5282c, Sec. 23A(i).)
167-10         Sec. 1071.457.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.
167-11   (a)  Not later than the 30th day after the date the board's order
167-12   becomes final as provided by Section 2001.144, Government Code, the
167-13   person shall:
167-14               (1)  pay the administrative penalty; or
167-15               (2)  file a petition for judicial review contesting the
167-16   fact of the violation, the amount of the penalty, or both.
167-17         (b)  Within the 30-day period, a person who acts under
167-18   Subsection (a)(2) may stay enforcement of the penalty by:
167-19               (1)  forwarding the penalty to the board for placement
167-20   in an escrow account;
167-21               (2)  giving to the board a supersedeas bond in a form
167-22   approved by the board that:
167-23                     (A)  is for the amount of the penalty; and
167-24                     (B)  is effective until judicial review of the
167-25   board's order is final; or
167-26               (3)  filing with the board an affidavit of the person
167-27   stating that the person is financially unable to forward the
 168-1   penalty for placement into an escrow account and is financially
 168-2   unable to give the supersedeas bond.
 168-3         (c)  Failure to take action under Subsection (b) within the
 168-4   time provided results in waiver of the right to judicial review.
 168-5   (V.A.C.S. Art. 5282c, Secs. 23A(j), (k), (l) (part).)
 168-6         Sec. 1071.458.  ENFORCEMENT OF PENALTY. If the person does
 168-7   not pay the administrative penalty and the enforcement of the
 168-8   penalty is not stayed, the board may refer the matter to the
 168-9   attorney general for enforcement.  (V.A.C.S. Art. 5282c, Sec.
168-10   23A(l) (part).)
168-11         Sec. 1071.459.  REMITTANCE OF PENALTY AND INTEREST. (a)  If
168-12   after judicial review the administrative penalty is reduced or not
168-13   imposed by the court, the board shall:
168-14               (1)  remit the appropriate amount, plus accrued
168-15   interest, to the person if the person paid the penalty; or
168-16               (2)  release the bond if the person gave a supersedeas
168-17   bond.
168-18         (b)  Interest accrues under Subsection (a)(1) at the rate
168-19   charged on loans to depository institutions by the New York Federal
168-20   Reserve Bank.  The interest shall be paid for the period beginning
168-21   on the date the penalty is paid and ending on the date the penalty
168-22   is remitted.  (V.A.C.S. Art. 5282c, Sec. 23A(n).)
168-23           (Sections 1071.460-1071.500 reserved for expansion)
168-24        SUBCHAPTER K.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
168-25         Sec. 1071.501.  INJUNCTION. (a)  In addition to any other
168-26   action authorized by law, the board may institute an action in the
168-27   board's name against any person to enjoin a violation of this
 169-1   chapter or a board rule.
 169-2         (b)  An action under this section must be brought in a
 169-3   district court in Travis County.  The attorney general shall act as
 169-4   legal advisor to the board and provide necessary legal assistance.
 169-5   (V.A.C.S. Art. 5282c, Sec. 9(b).)
 169-6         Sec. 1071.502.  ENFORCEMENT BY ATTORNEY GENERAL. The attorney
 169-7   general shall act as legal advisor to the board and provide legal
 169-8   assistance as necessary in enforcing this chapter and board rules.
 169-9   (V.A.C.S. Art. 5282c, Sec. 24(d).)
169-10         Sec. 1071.503.  CIVIL PENALTY. (a)  A person who violates
169-11   this chapter or a rule adopted under this chapter is liable for a
169-12   civil penalty not to exceed $1,500 for each violation.
169-13         (b)  At the request of the board, the attorney general shall
169-14   bring an action to recover the civil penalty in the name of the
169-15   state.
169-16         (c)  A civil penalty recovered under this section shall be
169-17   deposited in the state treasury. (V.A.C.S. Art. 5282c, Sec. 23B.)
169-18         Sec. 1071.504.  CRIMINAL PENALTY. (a)  In this section,
169-19   "offer to practice" has the meaning assigned by Section 1071.251.
169-20         (b)  A person commits an offense if the person:
169-21               (1)  engages in the practice of or offers to practice
169-22   professional surveying or state land surveying in this state
169-23   without being registered or licensed in accordance with this
169-24   chapter;
169-25               (2)  presents or attempts to use another person's
169-26   certificate of registration, license, or seal issued under this
169-27   chapter;
 170-1               (3)  gives false or forged evidence to obtain or assist
 170-2   another person in obtaining a certificate of registration or
 170-3   license; or
 170-4               (4)  violates this chapter or a rule adopted by the
 170-5   board.
 170-6         (c)  An offense under this section is a Class B misdemeanor.
 170-7   (V.A.C.S. Art. 5282c, Sec. 23(c).)
 170-8         SECTION 2.  ADOPTION OF REAL PROPERTY AND HOUSING TITLE. The
 170-9   Occupations Code is amended by adding Title 7 to read as follows:
170-10             TITLE 7.  PRACTICES AND PROFESSIONS RELATED TO
170-11                        REAL PROPERTY AND HOUSING
170-12             SUBTITLE A.  PROFESSIONS RELATED TO REAL ESTATE
170-13   CHAPTER 1101.  REAL ESTATE BROKERS AND SALESPERSONS
170-14   CHAPTER 1102.  REAL ESTATE INSPECTORS
170-15   CHAPTER 1103.  REAL ESTATE APPRAISERS
170-16               (Chapters 1104-1150 reserved for expansion)
170-17          SUBTITLE B.  PROFESSIONS RELATED TO PROPERTY TAXATION
170-18   CHAPTER 1151.  PROPERTY TAX PROFESSIONALS
170-19   CHAPTER 1152.  PROPERTY TAX CONSULTANTS
170-20               (Chapters 1153-1200 reserved for expansion)
170-21    SUBTITLE C.  REGULATION OF CERTAIN TYPES OF HOUSING AND BUILDINGS
170-22   CHAPTER 1201.  MANUFACTURED HOUSING
170-23   CHAPTER 1202.  INDUSTRIALIZED HOUSING AND BUILDINGS
170-24             TITLE 7.  PRACTICES AND PROFESSIONS RELATED TO
170-25                        REAL PROPERTY AND HOUSING
170-26             SUBTITLE A.  PROFESSIONS RELATED TO REAL ESTATE
170-27           CHAPTER 1101.  REAL ESTATE BROKERS AND SALESPERSONS
 171-1                    SUBCHAPTER A.  GENERAL PROVISIONS
 171-2   Sec. 1101.001.  SHORT TITLE 
 171-3   Sec. 1101.002.  DEFINITIONS 
 171-4   Sec. 1101.003.  CORE REAL ESTATE COURSES 
 171-5   Sec. 1101.004.  ACTING AS BROKER OR SALESPERSON 
 171-6   Sec. 1101.005.  APPLICABILITY OF CHAPTER 
 171-7   Sec. 1101.006.  APPLICATION OF SUNSET ACT 
 171-8           (Sections 1101.007-1101.050 reserved for expansion)
 171-9               SUBCHAPTER B.  TEXAS REAL ESTATE COMMISSION
171-10   Sec. 1101.051.  COMMISSION MEMBERSHIP 
171-11   Sec. 1101.052.  PUBLIC MEMBER ELIGIBILITY 
171-12   Sec. 1101.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS 
171-13   Sec. 1101.054.  OFFICIAL OATH; BOND 
171-14   Sec. 1101.055.  TERMS; VACANCY 
171-15   Sec. 1101.056.  OFFICERS 
171-16   Sec. 1101.057.  GROUNDS FOR REMOVAL 
171-17   Sec. 1101.058.  PER DIEM; REIMBURSEMENT 
171-18           (Sections 1101.059-1101.100 reserved for expansion)
171-19       SUBCHAPTER C.  ADMINISTRATOR AND OTHER COMMISSION PERSONNEL
171-20   Sec. 1101.101.  ADMINISTRATOR AND OTHER PERSONNEL 
171-21   Sec. 1101.102.  DIVISION OF RESPONSIBILITIES 
171-22   Sec. 1101.103.  CODE OF ETHICS; STANDARDS OF CONDUCT 
171-23   Sec. 1101.104.  QUALIFICATIONS AND STANDARDS OF CONDUCT
171-24                     INFORMATION 
171-25   Sec. 1101.105.  CAREER LADDER PROGRAM; PERFORMANCE
171-26                     EVALUATIONS 
171-27   Sec. 1101.106.  EQUAL EMPLOYMENT OPPORTUNITY POLICY;
 172-1                     REPORT 
 172-2           (Sections 1101.107-1101.150 reserved for expansion)
 172-3               SUBCHAPTER D.  COMMISSION POWERS AND DUTIES
 172-4   Sec. 1101.151.  GENERAL POWERS AND DUTIES OF COMMISSION 
 172-5   Sec. 1101.152.  FEES 
 172-6   Sec. 1101.153.  FEE INCREASE 
 172-7   Sec. 1101.154.  ADDITIONAL FEE:  TEXAS REAL ESTATE RESEARCH
 172-8                     CENTER 
 172-9   Sec. 1101.155.  RULES RELATING TO CONTRACT FORMS 
172-10   Sec. 1101.156.  RULES RESTRICTING ADVERTISING OR
172-11                     COMPETITIVE BIDDING 
172-12   Sec. 1101.157.  SUBPOENA AUTHORITY 
172-13           (Sections 1101.158-1101.200 reserved for expansion)
172-14             SUBCHAPTER E.  PUBLIC INTEREST INFORMATION AND
172-15                          COMPLAINT PROCEDURES
172-16   Sec. 1101.201.  PUBLIC INTEREST INFORMATION 
172-17   Sec. 1101.202.  COMPLAINTS 
172-18   Sec. 1101.203.  COMPLAINT INFORMATION 
172-19   Sec. 1101.204.  COMPLAINT INVESTIGATION AND DISPOSITION 
172-20   Sec. 1101.205.  COMPLAINT INVESTIGATION OF
172-21                     CERTIFICATE HOLDER 
172-22   Sec. 1101.206.  PUBLIC PARTICIPATION 
172-23           (Sections 1101.207-1101.250 reserved for expansion)
172-24        SUBCHAPTER F.  TEXAS REAL ESTATE BROKER-LAWYER COMMITTEE
172-25   Sec. 1101.251.  DEFINITION OF COMMITTEE 
172-26   Sec. 1101.252.  COMMITTEE MEMBERSHIP 
172-27   Sec. 1101.253.  TERMS; VACANCIES 
 173-1   Sec. 1101.254.  POWERS AND DUTIES 
 173-2           (Sections 1101.255-1101.300 reserved for expansion)
 173-3        SUBCHAPTER G.  ACCREDITATION AND APPROVAL OF REAL ESTATE
 173-4                EDUCATIONAL PROGRAMS AND COURSES OF STUDY
 173-5   Sec. 1101.301.  ACCREDITATION OF PROGRAMS AND COURSES OF
 173-6                     STUDY 
 173-7   Sec. 1101.302.  BOND REQUIRED 
 173-8   Sec. 1101.303.  APPROVAL OF CONTINUING EDUCATION PROVIDER OR
 173-9                     COURSE OF STUDY 
173-10           (Sections 1101.304-1101.350 reserved for expansion)
173-11                   SUBCHAPTER H.  LICENSE REQUIREMENTS
173-12   Sec. 1101.351.  LICENSE REQUIRED 
173-13   Sec. 1101.352.  LICENSE APPLICATION 
173-14   Sec. 1101.353.  MORAL CHARACTER DETERMINATION 
173-15   Sec. 1101.354.  GENERAL ELIGIBILITY REQUIREMENTS 
173-16   Sec. 1101.355.  ADDITIONAL GENERAL ELIGIBILITY REQUIREMENTS
173-17                     FOR CERTAIN BUSINESS ENTITIES 
173-18   Sec. 1101.356.  BROKER LICENSE:  EXPERIENCE AND EDUCATION
173-19                     REQUIREMENTS 
173-20   Sec. 1101.357.  BROKER LICENSE: ALTERNATE EXPERIENCE
173-21                     REQUIREMENTS FOR CERTAIN APPLICANTS 
173-22   Sec. 1101.358.  SALESPERSON LICENSE:  EDUCATION
173-23                     REQUIREMENTS 
173-24   Sec. 1101.359.  ALTERNATE EDUCATION REQUIREMENTS FOR
173-25                     CERTAIN LICENSE HOLDERS 
173-26   Sec. 1101.360.  ELIGIBILITY REQUIREMENTS FOR CERTAIN
173-27                     NONRESIDENT APPLICANTS 
 174-1   Sec. 1101.361.  ADDITIONAL ELIGIBILITY REQUIREMENTS FOR CERTAIN
 174-2                     NONRESIDENT APPLICANTS 
 174-3   Sec. 1101.362.  WAIVER OF LICENSE REQUIREMENTS:  PREVIOUS
 174-4                     LICENSE HOLDERS 
 174-5   Sec. 1101.363.  ISSUANCE OF LICENSE 
 174-6   Sec. 1101.364.  DENIAL OF LICENSE 
 174-7   Sec. 1101.365.  PROBATIONARY LICENSE 
 174-8   Sec. 1101.366.  INACTIVE LICENSE:  BROKER 
 174-9   Sec. 1101.367.  INACTIVE LICENSE:  SALESPERSON 
174-10           (Sections 1101.368-1101.400 reserved for expansion)
174-11                       SUBCHAPTER I.  EXAMINATIONS
174-12   Sec. 1101.401.  EXAMINATION REQUIRED 
174-13   Sec. 1101.402.  WAIVER OF EXAMINATION 
174-14   Sec. 1101.403.  ADMINISTRATION OF EXAMINATION; TESTING
174-15                     SERVICE 
174-16   Sec. 1101.404.  EXAMINATION RESULTS 
174-17   Sec. 1101.405.  REEXAMINATION 
174-18           (Sections 1101.406-1101.450 reserved for expansion)
174-19                     SUBCHAPTER J.  LICENSE RENEWAL
174-20   Sec. 1101.451.  LICENSE EXPIRATION 
174-21   Sec. 1101.452.  INFORMATION REQUIRED FOR LICENSE RENEWAL 
174-22   Sec. 1101.453.  ADDITIONAL RENEWAL REQUIREMENTS FOR CERTAIN
174-23                     BUSINESS ENTITIES 
174-24   Sec. 1101.454.  SALESPERSON LICENSE RENEWAL 
174-25   Sec. 1101.455.  CONTINUING EDUCATION REQUIREMENTS 
174-26   Sec. 1101.456.  EXEMPTION FROM CONTINUING EDUCATION
174-27                     REQUIREMENTS FOR CERTAIN BROKERS 
 175-1   Sec. 1101.457.  DEFERRAL OF CONTINUING EDUCATION
 175-2                     REQUIREMENTS 
 175-3           (Sections 1101.458-1101.500 reserved for expansion)
 175-4                 SUBCHAPTER K.  CERTIFICATE REQUIREMENTS
 175-5   Sec. 1101.501.  CERTIFICATE REQUIRED 
 175-6   Sec. 1101.502.  ELIGIBILITY REQUIREMENTS FOR CERTIFICATE 
 175-7   Sec. 1101.503.  ISSUANCE OF CERTIFICATE 
 175-8   Sec. 1101.504.  CERTIFICATE EXPIRATION 
 175-9   Sec. 1101.505.  DENIAL OF CERTIFICATE 
175-10   Sec. 1101.506.  CHANGE OF ADDRESS 
175-11   Sec. 1101.507.  DISPLAY OF CERTIFICATE 
175-12           (Sections 1101.508-1101.550 reserved for expansion)
175-13                SUBCHAPTER L.  PRACTICE BY LICENSE HOLDER
175-14   Sec. 1101.551.  DEFINITIONS 
175-15   Sec. 1101.552.  FIXED OFFICE REQUIRED; CHANGE OF ADDRESS;
175-16                     BRANCH OFFICES 
175-17   Sec. 1101.553.  DISPLAY OF LICENSE 
175-18   Sec. 1101.554.  CUSTODY OF SALESPERSON LICENSE 
175-19   Sec. 1101.555.  NOTICE TO BUYER REGARDING ABSTRACT OR TITLE
175-20                     POLICY 
175-21   Sec. 1101.556.  DISCLOSURE OF CERTAIN INFORMATION RELATING
175-22                     TO OCCUPANTS 
175-23   Sec. 1101.557.  ACTING AS AGENT 
175-24   Sec. 1101.558.  REPRESENTATION DISCLOSURE 
175-25   Sec. 1101.559.  BROKER ACTING AS INTERMEDIARY 
175-26   Sec. 1101.560.  ASSOCIATED LICENSE HOLDER ACTING AS
175-27                     INTERMEDIARY 
 176-1   Sec. 1101.561.  DUTIES OF INTERMEDIARY PREVAIL 
 176-2           (Sections 1101.562-1101.600 reserved for expansion)
 176-3            SUBCHAPTER M.  REAL ESTATE RECOVERY TRUST ACCOUNT
 176-4   Sec. 1101.601.  REAL ESTATE RECOVERY TRUST ACCOUNT 
 176-5   Sec. 1101.602.  ENTITLEMENT TO REIMBURSEMENT 
 176-6   Sec. 1101.603.  PAYMENTS INTO TRUST ACCOUNT 
 176-7   Sec. 1101.604.  MANAGEMENT OF TRUST ACCOUNT 
 176-8   Sec. 1101.605.  DEADLINE FOR ACTION; NOTICE TO COMMISSION 
 176-9   Sec. 1101.606.  CLAIM FOR PAYMENT FROM TRUST ACCOUNT 
176-10   Sec. 1101.607.  ISSUES AT HEARING 
176-11   Sec. 1101.608.  COMMISSION RESPONSE 
176-12   Sec. 1101.609.  COURT ORDER FOR PAYMENT 
176-13   Sec. 1101.610.  PAYMENT LIMITS; ATTORNEY'S FEES 
176-14   Sec. 1101.611.  APPLICATION OF JUDGMENT RECOVERY 
176-15   Sec. 1101.612.  SUBROGATION 
176-16   Sec. 1101.613.  EFFECT ON DISCIPLINARY PROCEEDINGS 
176-17   Sec. 1101.614.  WAIVER OF RIGHTS 
176-18   Sec. 1101.615.  NOTICE TO CONSUMERS AND SERVICE RECIPIENTS 
176-19           (Sections 1101.616-1101.650 reserved for expansion)
176-20    SUBCHAPTER N.  PROHIBITED PRACTICES AND DISCIPLINARY PROCEEDINGS
176-21   Sec. 1101.651.  CERTAIN PRACTICES PROHIBITED 
176-22   Sec. 1101.652.  GROUNDS FOR SUSPENSION OR REVOCATION OF
176-23                     LICENSE 
176-24   Sec. 1101.653.  GROUNDS FOR SUSPENSION OR REVOCATION OF
176-25                     CERTIFICATE 
176-26   Sec. 1101.654.  SUSPENSION OR REVOCATION OF LICENSE OR
176-27                     CERTIFICATE FOR UNAUTHORIZED PRACTICE
 177-1                     OF LAW 
 177-2   Sec. 1101.655.  REVOCATION OF LICENSE OR CERTIFICATE
 177-3                     FOR CLAIM ON ACCOUNT 
 177-4   Sec. 1101.656.  ADDITIONAL DISCIPLINARY AUTHORITY OF
 177-5                     COMMISSION 
 177-6   Sec. 1101.657.  HEARING 
 177-7   Sec. 1101.658.  APPEAL 
 177-8           (Sections 1101.659-1101.700 reserved for expansion)
 177-9                  SUBCHAPTER O.  ADMINISTRATIVE PENALTY
177-10   Sec. 1101.701.  IMPOSITION OF ADMINISTRATIVE PENALTY 
177-11   Sec. 1101.702.  AMOUNT OF PENALTY 
177-12   Sec. 1101.703.  REPORT AND NOTICE OF VIOLATION AND PENALTY 
177-13   Sec. 1101.704.  PENALTY TO BE PAID OR HEARING REQUESTED 
177-14   Sec. 1101.705.  HEARING; DECISION BY COMMISSION 
177-15   Sec. 1101.706.  NOTICE OF ORDER 
177-16   Sec. 1101.707.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL 
177-17   Sec. 1101.708.  COLLECTION OF PENALTY 
177-18   Sec. 1101.709.  REMITTANCE OF PENALTY AND INTEREST 
177-19           (Sections 1101.710-1101.750 reserved for expansion)
177-20        SUBCHAPTER P.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
177-21   Sec. 1101.751.  INJUNCTIVE ACTION BROUGHT BY COMMISSION 
177-22   Sec. 1101.752.  ADDITIONAL INJUNCTIVE AUTHORITY 
177-23   Sec. 1101.753.  CIVIL PENALTY FOR CERTAIN VIOLATIONS BY
177-24                     BROKER, SALESPERSON, OR CERTIFICATE
177-25                     HOLDER 
177-26   Sec. 1101.754.  PRIVATE CAUSE OF ACTION FOR CERTAIN VIOLATIONS
177-27                     BY BROKER, SALESPERSON, OR CERTIFICATE
 178-1                     HOLDER 
 178-2   Sec. 1101.755.  APPEAL BOND EXEMPTION 
 178-3   Sec. 1101.756.  GENERAL CRIMINAL PENALTY 
 178-4   Sec. 1101.757.  CRIMINAL PENALTY FOR CERTAIN VIOLATIONS BY
 178-5                     RESIDENTIAL RENTAL LOCATOR 
 178-6   Sec. 1101.758.  CRIMINAL PENALTY FOR CERTAIN VIOLATIONS BY
 178-7                     BROKER, SALESPERSON, OR CERTIFICATE
 178-8                     HOLDER 
 178-9           (Sections 1101.759-1101.800 reserved for expansion)
178-10              SUBCHAPTER Q.  GENERAL PROVISIONS RELATING TO
178-11                            LIABILITY ISSUES
178-12   Sec. 1101.801.  EFFECT OF DISCIPLINARY ACTION ON LIABILITY 
178-13   Sec. 1101.802.  LIABILITY RELATING TO HIV INFECTION OR AIDS 
178-14   Sec. 1101.803.  GENERAL LIABILITY OF BROKER 
178-15   Sec. 1101.804.  LIABILITY FOR PROVIDING CERTAIN INFORMATION 
178-16   Sec. 1101.805.  LIABILITY FOR MISREPRESENTATION OR
178-17                     CONCEALMENT 
178-18   Sec. 1101.806.  LIABILITY FOR PAYMENT OF COMPENSATION OR
178-19                     COMMISSION 
178-20           CHAPTER 1101.  REAL ESTATE BROKERS AND SALESPERSONS
178-21                    SUBCHAPTER A.  GENERAL PROVISIONS
178-22         Sec. 1101.001.  SHORT TITLE. This chapter may be cited as The
178-23   Real Estate License Act. (V.A.C.S. Art. 6573a, Sec. 1(a).)
178-24         Sec. 1101.002.  DEFINITIONS. In this chapter:
178-25               (1)  "Broker":
178-26                     (A)  means a person who in exchange for a
178-27   commission or other consideration or with the expectation of
 179-1   receiving a commission or other consideration performs for another
 179-2   person one of the following acts:
 179-3                           (i)  sells, exchanges, purchases, or leases
 179-4   real estate;
 179-5                           (ii)  offers to sell, exchange, purchase,
 179-6   or lease real estate;
 179-7                           (iii)  negotiates or attempts to negotiate
 179-8   the listing, sale, exchange, purchase, or lease of real estate;
 179-9                           (iv)  lists or offers, attempts, or agrees
179-10   to list real estate for sale, lease, or exchange;
179-11                           (v)  appraises or offers, attempts, or
179-12   agrees to appraise real estate;
179-13                           (vi)  auctions or offers, attempts, or
179-14   agrees to auction real estate;
179-15                           (vii)  deals in options on real estate,
179-16   including buying, selling, or offering to buy or sell options on
179-17   real estate;
179-18                           (viii)  aids or offers or attempts to aid
179-19   in locating or obtaining real estate for purchase or lease;
179-20                           (ix)  procures or assists in procuring a
179-21   prospect to effect the sale, exchange, or lease of real estate; or
179-22                           (x)  procures or assists in procuring
179-23   property to effect the sale, exchange, or lease of real estate; and
179-24                     (B)  includes a person who:
179-25                           (i)  is employed by or for an owner of real
179-26   estate to sell any portion of the real estate; or
179-27                           (ii)  engages in the business of charging
 180-1   an advance fee or contracting to collect a fee under a contract
 180-2   that requires the person primarily to promote the sale of real
 180-3   estate by:
 180-4                                 (a)  listing the real estate in a
 180-5   publication primarily used for listing real estate; or
 180-6                                 (b)  referring information about the
 180-7   real estate to brokers.
 180-8               (2)  "Certificate holder" means a person registered
 180-9   under Subchapter K.
180-10               (3)  "Commission" means the Texas Real Estate
180-11   Commission.
180-12               (4)  "License holder" means a broker or salesperson
180-13   licensed under this chapter.
180-14               (5)  "Real estate" means any interest in real property,
180-15   including a leasehold, located in or outside this state.  The term
180-16   does not include an interest given as security for the performance
180-17   of an obligation.
180-18               (6)  "Residential rental locator" means a person who
180-19   offers for consideration to locate a unit in an apartment complex
180-20   for lease to a prospective tenant.  The term does not include an
180-21   owner who offers to locate a unit in the owner's complex.
180-22               (7)  "Salesperson" means a person who is associated
180-23   with a licensed broker for the purpose of performing an act
180-24   described by Subdivision (1).
180-25               (8)  "Subagent" means a license holder who:
180-26                     (A)  represents a principal through cooperation
180-27   with and the consent of a broker representing the principal; and
 181-1                     (B)  is not sponsored by or associated with the
 181-2   principal's broker. (V.A.C.S. Art. 6573a, Secs. 2(1), (2), (3),
 181-3   (4), (6), 15C(m)(3), (5), 24(a); New.)
 181-4         Sec. 1101.003.  CORE REAL ESTATE COURSES. (a)  For purposes
 181-5   of this chapter, "core real estate courses" include:
 181-6               (1)  agency law, which includes the following topics:
 181-7                     (A)  the relationship between a principal and an
 181-8   agent;
 181-9                     (B)  an agent's authority;
181-10                     (C)  the termination of an agent's authority;
181-11                     (D)  an agent's duties, including fiduciary
181-12   duties;
181-13                     (E)  employment law;
181-14                     (F)  deceptive trade practices;
181-15                     (G)  listing or buying representation procedures;
181-16   and
181-17                     (H)  the disclosure of agency;
181-18               (2)  contract law, which includes the following topics:
181-19                     (A)  elements of a contract;
181-20                     (B)  offer and acceptance;
181-21                     (C)  statute of frauds;
181-22                     (D)  remedies for breach, including specific
181-23   performance;
181-24                     (E)  unauthorized practice of law;
181-25                     (F)  commission rules relating to use of adopted
181-26   forms; and
181-27                     (G)  owner disclosure requirements;
 182-1               (3)  principles of real estate, which includes:
 182-2                     (A)  an overview of:
 182-3                           (i)  licensing as a broker or salesperson;
 182-4                           (ii)  ethics of practice as a license
 182-5   holder;
 182-6                           (iii)  titles to and conveyance of real
 182-7   estate;
 182-8                           (iv)  legal descriptions;
 182-9                           (v)  deeds, encumbrances, and liens;
182-10                           (vi)  distinctions between personal and
182-11   real property;
182-12                           (vii)  appraisal;
182-13                           (viii)  finance and regulations;
182-14                           (ix)  closing procedures; and
182-15                           (x)  real estate mathematics; and
182-16                     (B)  at least three hours of classroom
182-17   instruction on federal, state, and local laws relating to housing
182-18   discrimination, housing credit discrimination, and community
182-19   reinvestment;
182-20               (4)  property management, which includes the following
182-21   topics:
182-22                     (A)  the role of a property manager;
182-23                     (B)  landlord policies;
182-24                     (C)  operational guidelines;
182-25                     (D)  leases;
182-26                     (E)  lease negotiations;
182-27                     (F)  tenant relations;
 183-1                     (G)  maintenance;
 183-2                     (H)  reports;
 183-3                     (I)  habitability laws; and
 183-4                     (J)  the Fair Housing Act (42 U.S.C. Section 3601
 183-5   et seq.);
 183-6               (5)  real estate appraisal, which includes the
 183-7   following topics:
 183-8                     (A)  the central purposes and functions of an
 183-9   appraisal;
183-10                     (B)  social and economic determinants of the
183-11   value of real estate;
183-12                     (C)  appraisal case studies;
183-13                     (D)  cost, market data, and income approaches to
183-14   value estimates of real estate;
183-15                     (E)  final correlations; and
183-16                     (F)  reporting;
183-17               (6)  real estate brokerage, which includes the
183-18   following topics:
183-19                     (A)  agency law;
183-20                     (B)  planning and organization;
183-21                     (C)  operational policies and procedures;
183-22                     (D)  recruitment, selection, and training of
183-23   personnel;
183-24                     (E)  records and control; and
183-25                     (F)  real estate firm analysis and expansion
183-26   criteria;
183-27               (7)  real estate finance, which includes the following
 184-1   topics:
 184-2                     (A)  monetary systems;
 184-3                     (B)  primary and secondary money markets;
 184-4                     (C)  sources of mortgage loans;
 184-5                     (D)  federal government programs;
 184-6                     (E)  loan applications, processes, and
 184-7   procedures;
 184-8                     (F)  closing costs;
 184-9                     (G)  alternative financial instruments;
184-10                     (H)  equal credit opportunity laws;
184-11                     (I)  community reinvestment laws, including the
184-12   Community Reinvestment Act of 1977 (12 U.S.C. Section 2901 et
184-13   seq.); and
184-14                     (J)  state housing agencies, including the Texas
184-15   Department of Housing and Community Affairs;
184-16               (8)  real estate investment, which includes the
184-17   following topics:
184-18                     (A)  real estate investment characteristics;
184-19                     (B)  techniques of investment analysis;
184-20                     (C)  the time value of money;
184-21                     (D)  discounted and nondiscounted investment
184-22   criteria;
184-23                     (E)  leverage;
184-24                     (F)  tax shelters depreciation; and
184-25                     (G)  applications to property tax;
184-26               (9)  real estate law, which includes the following
184-27   topics:
 185-1                     (A)  legal concepts of real estate;
 185-2                     (B)  land description;
 185-3                     (C)  real property rights and estates in land;
 185-4                     (D)  contracts;
 185-5                     (E)  conveyances;
 185-6                     (F)  encumbrances;
 185-7                     (G)  foreclosures;
 185-8                     (H)  recording procedures; and
 185-9                     (I)  evidence of titles;
185-10               (10)  real estate marketing, which includes the
185-11   following topics:
185-12                     (A)  real estate professionalism and ethics;
185-13                     (B)  characteristics of successful salespersons;
185-14                     (C)  time management;
185-15                     (D)  psychology of marketing;
185-16                     (E)  listing procedures;
185-17                     (F)  advertising;
185-18                     (G)  negotiating and closing;
185-19                     (H)  financing; and
185-20                     (I)  Subchapter E, Chapter 17, Business &
185-21   Commerce Code; and
185-22               (11)  real estate mathematics, which includes the
185-23   following topics:
185-24                     (A)  basic arithmetic skills and review of
185-25   mathematical logic;
185-26                     (B)  percentages;
185-27                     (C)  interest;
 186-1                     (D)  the time value of money;
 186-2                     (E)  depreciation;
 186-3                     (F)  amortization;
 186-4                     (G)  proration; and
 186-5                     (H)  estimation of closing statements.
 186-6         (b)  The commission may designate a course as an equivalent
 186-7   of a course listed in Subsection (a).
 186-8         (c)  The commission by rule may prescribe the title and
 186-9   content of additional core real estate courses.  (V.A.C.S.
186-10   Art. 6573a, Secs. 7(a) (part), (b).)
186-11         Sec. 1101.004.  ACTING AS BROKER OR SALESPERSON. A person
186-12   acts as a broker or salesperson under this chapter if the person,
186-13   with the expectation of receiving consideration, directly or
186-14   indirectly performs or offers, attempts, or agrees to perform for
186-15   another person any act described by Section 1101.002(1), as a part
186-16   of a transaction or as an entire transaction. (V.A.C.S. Art. 6573a,
186-17   Sec. 4 (part).)
186-18         Sec. 1101.005.  APPLICABILITY OF CHAPTER. This chapter does
186-19   not apply to:
186-20               (1)  an attorney licensed in any state;
186-21               (2)  an attorney-in-fact authorized under a power of
186-22   attorney to conduct a real estate transaction;
186-23               (3)  a public official while engaged in official
186-24   duties;
186-25               (4)  an auctioneer licensed under Chapter 1802 while
186-26   conducting the sale of real estate by auction if the auctioneer
186-27   does not perform another act of a broker or salesperson;
 187-1               (5)  a person acting under a court order or the
 187-2   authority of a will or written trust instrument;
 187-3               (6)  a person employed by an owner in the sale of
 187-4   structures and land on which structures are located if the
 187-5   structures are erected by the owner in the course of the owner's
 187-6   business;
 187-7               (7)  an on-site manager of an apartment complex;
 187-8               (8)  an owner or the owner's employee who leases the
 187-9   owner's improved or unimproved real estate;
187-10               (9)  a partnership or limited liability partnership
187-11   acting as a broker or salesperson through a partner who is a
187-12   licensed broker; or
187-13               (10)  a transaction involving:
187-14                     (A)  the sale, lease, or transfer of a mineral or
187-15   mining interest in real property;
187-16                     (B)  the sale, lease, or transfer of a cemetery
187-17   lot; or
187-18                     (C)  the lease or management of a hotel or motel.
187-19   (V.A.C.S. Art. 6573a, Sec. 3 (part).)
187-20         Sec. 1101.006.  APPLICATION OF SUNSET ACT. The Texas Real
187-21   Estate Commission is subject to Chapter 325, Government Code (Texas
187-22   Sunset Act).  Unless continued in existence as provided by that
187-23   chapter, the commission is abolished and this chapter and Chapter
187-24   1102 expire September 1, 2003.  (V.A.C.S. Art. 6573a, Sec. 5(n).)
187-25           (Sections 1101.007-1101.050 reserved for expansion)
187-26               SUBCHAPTER B.  TEXAS REAL ESTATE COMMISSION
187-27         Sec. 1101.051.  COMMISSION MEMBERSHIP. (a)  The Texas Real
 188-1   Estate Commission consists of nine members appointed by the
 188-2   governor with the advice and consent of the senate as follows:
 188-3               (1)  six members who have been engaged in the brokerage
 188-4   business as licensed brokers as their major occupation for the five
 188-5   years preceding appointment; and
 188-6               (2)  three members who represent the public.
 188-7         (b)  Each member of the commission must be a qualified voter.
 188-8         (c)  Appointments to the commission shall be made without
 188-9   regard to the race, color, disability, sex, religion, age, or
188-10   national origin of the appointee.  (V.A.C.S. Art. 6573a, Secs. 5(a)
188-11   (part), (c) (part).)
188-12         Sec. 1101.052.  PUBLIC MEMBER ELIGIBILITY. A person is not
188-13   eligible for appointment as a public member of the commission if
188-14   the person or the person's spouse:
188-15               (1)  is registered, certified, or licensed by an
188-16   occupational regulatory agency in the real estate industry;
188-17               (2)  is employed by or participates in the management
188-18   of a business entity or other organization regulated by the
188-19   commission or receiving funds from the commission;
188-20               (3)  owns or controls, directly or indirectly, more
188-21   than a 10 percent interest in a business entity or other
188-22   organization regulated by the commission or receiving funds from
188-23   the commission; or
188-24               (4)  uses or receives a substantial amount of tangible
188-25   goods, services, or funds from the commission, other than
188-26   compensation or reimbursement authorized by law for commission
188-27   membership, attendance, or expenses.  (V.A.C.S. Art. 6573a, Sec.
 189-1   5(c) (part).)
 189-2         Sec. 1101.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)  In
 189-3   this section, "Texas trade association" means a nonprofit,
 189-4   cooperative, and voluntarily joined statewide association of
 189-5   business or professional competitors in this state designed to
 189-6   assist its members and its industry or profession in dealing with
 189-7   mutual business or professional problems and in promoting their
 189-8   common interest.
 189-9         (b)  A state elected president, president-elect, vice
189-10   president, or secretary-treasurer, employee, or paid consultant of
189-11   a Texas trade association in the real estate industry may not be a
189-12   commission member and may not be a commission employee who is
189-13   exempt from the state's position classification plan or is
189-14   compensated at or above the amount prescribed by the General
189-15   Appropriations Act for step 1, salary group A17, of the position
189-16   classification salary schedule.
189-17         (c)  A person who is the spouse of an officer, manager, or
189-18   paid consultant of a Texas trade association in the real estate
189-19   industry may not be a commission member and may not be a commission
189-20   employee who is exempt from the state's position classification
189-21   plan or is compensated at or above the amount prescribed by the
189-22   General Appropriations Act for step 1, salary group A17, of the
189-23   position classification salary schedule.
189-24         (d)  A person may not serve as a commission member or act as
189-25   the general counsel to the commission if the person is required to
189-26   register as a lobbyist under Chapter 305, Government Code, because
189-27   of the person's activities for compensation on behalf of a
 190-1   profession related to the operation of the commission. (V.A.C.S.
 190-2   Art. 6573a, Secs. 5(b)(1) (part), (2).)
 190-3         Sec. 1101.054.  OFFICIAL OATH; BOND. Not later than the 15th
 190-4   day after the date of appointment, each appointee must:
 190-5               (1)  take the constitutional oath of office; and
 190-6               (2)  execute a bond payable to the governor in the
 190-7   amount of $10,000, conditioned on the faithful performance of the
 190-8   member's duties.  (V.A.C.S. Art. 6573a, Sec. 5(a) (part).)
 190-9         Sec. 1101.055.  TERMS; VACANCY. (a)  Commission members serve
190-10   staggered six-year terms, with the terms of three members expiring
190-11   January 31 of each odd-numbered year.
190-12         (b)  If a vacancy occurs during a member's term, the governor
190-13   shall appoint a person to fill the unexpired term. (V.A.C.S.
190-14   Art. 6573a, Sec. 5(a) (part).)
190-15         Sec. 1101.056.  OFFICERS. (a)  The governor shall designate a
190-16   commission member who is a licensed broker as presiding officer.
190-17   The presiding officer serves in that capacity at the pleasure of
190-18   the governor.
190-19         (b)  At a regular meeting in February of each year, the
190-20   commission shall elect an assistant presiding officer and secretary
190-21   from its membership. (V.A.C.S. Art. 6573a, Sec. 5(a) (part).)
190-22         Sec. 1101.057.  GROUNDS FOR REMOVAL. (a)  It is a ground for
190-23   removal from the commission that a member:
190-24               (1)  does not have at the time of appointment the
190-25   qualifications required by Section 1101.051(a) or (b) or 1101.052;
190-26               (2)  does not maintain during service on the commission
190-27   the qualifications required by Section 1101.051(a) or (b) or
 191-1   1101.052;
 191-2               (3)  violates a prohibition established by Section
 191-3   1101.053;
 191-4               (4)  cannot, because of illness or disability,
 191-5   discharge the member's duties for a substantial part of the
 191-6   member's term; or
 191-7               (5)  is absent from more than half of the regularly
 191-8   scheduled commission meetings that the member is eligible to attend
 191-9   during each calendar year, unless the absence is excused by
191-10   majority vote of the commission.
191-11         (b)  The validity of an action of the commission is not
191-12   affected by the fact that it is taken when a ground for removal of
191-13   a commission member exists.
191-14         (c)  If the administrator has knowledge that a potential
191-15   ground for removal of a commission member exists, the administrator
191-16   shall notify the presiding officer of the commission of the ground.
191-17   The presiding officer shall notify the governor that a potential
191-18   ground for removal exists. (V.A.C.S. Art. 6573a, Secs. 5(d), (e),
191-19   (f).)
191-20         Sec. 1101.058.  PER DIEM; REIMBURSEMENT. A commission member
191-21   is entitled to receive:
191-22               (1)  $75 for each day the member performs the member's
191-23   official duties; and
191-24               (2)  reimbursement for actual and necessary expenses
191-25   incurred in performing the member's official duties. (V.A.C.S.
191-26   Art. 6573a, Sec. 5(g).)
191-27           (Sections 1101.059-1101.100 reserved for expansion)
 192-1       SUBCHAPTER C.  ADMINISTRATOR AND OTHER COMMISSION PERSONNEL
 192-2         Sec. 1101.101.  ADMINISTRATOR AND OTHER PERSONNEL. (a)  The
 192-3   commission may appoint an administrator.
 192-4         (b)  The commission may designate a subordinate officer as
 192-5   assistant administrator to act for the administrator in the
 192-6   administrator's absence.
 192-7         (c)  The commission may employ other subordinate officers and
 192-8   employees necessary to administer and enforce this chapter and
 192-9   Chapter 1102, including a general counsel, attorneys,
192-10   investigators, and support staff.
192-11         (d)  The commission shall determine the salaries of the
192-12   administrator, officers, and employees of the commission.  The
192-13   amounts of the salaries may not exceed the amounts specified by the
192-14   General Appropriations Act.  (V.A.C.S. Art. 6573a, Secs. 5(i)
192-15   (part), (t) (part).)
192-16         Sec. 1101.102.  DIVISION OF RESPONSIBILITIES. The commission
192-17   shall develop and implement policies that clearly define the
192-18   respective responsibilities of the commission and the commission
192-19   staff. (V.A.C.S. Art. 6573a, Sec. 5(s).)
192-20         Sec. 1101.103.  CODE OF ETHICS; STANDARDS OF CONDUCT. Each
192-21   member, officer, employee, and agent of the commission is subject
192-22   to the code of ethics and standards of conduct imposed by Chapter
192-23   572, Government Code.  (V.A.C.S. Art. 6573a, Sec. 5(b)(1) (part).) 
192-24         Sec. 1101.104.  QUALIFICATIONS AND STANDARDS OF CONDUCT
192-25   INFORMATION. The commission shall provide, as often as necessary,
192-26   to its members and employees information regarding their:
192-27               (1)  qualifications for office or employment under this
 193-1   chapter and Chapter 1102; and
 193-2               (2)  responsibilities under applicable laws relating to
 193-3   standards of conduct for state officers or employees. (V.A.C.S.
 193-4   Art. 6573a, Sec. 5(x).)
 193-5         Sec. 1101.105.  CAREER LADDER PROGRAM; PERFORMANCE
 193-6   EVALUATIONS. (a)  The administrator or the administrator's designee
 193-7   shall develop an intra-agency career ladder program. The program
 193-8   must require intra-agency postings of all nonentry level positions
 193-9   concurrently with any public posting.
193-10         (b)  The administrator or the administrator's designee shall
193-11   develop a system of annual performance evaluations.  All merit pay
193-12   for commission employees must be based on the system established
193-13   under this subsection. (V.A.C.S. Art. 6573a, Sec. 5(i) (part).)
193-14         Sec. 1101.106.  EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT.
193-15   (a)  The administrator or the administrator's designee shall
193-16   prepare and maintain a written policy statement to ensure
193-17   implementation of an equal employment opportunity program under
193-18   which all personnel transactions are made without regard to race,
193-19   color, disability, sex, religion, age, or national origin.  The
193-20   policy statement must include:
193-21               (1)  personnel policies, including policies relating to
193-22   recruitment, evaluation, selection, appointment, training, and
193-23   promotion of personnel;
193-24               (2)  a comprehensive analysis of the commission
193-25   workforce that meets federal and state guidelines;
193-26               (3)  procedures by which a determination can be made of
193-27   significant underuse in the commission workforce of all persons for
 194-1   whom federal or state guidelines encourage a more equitable
 194-2   balance; and
 194-3               (4)  reasonable methods to appropriately address those
 194-4   areas of underuse.
 194-5         (b)  A policy statement prepared under Subsection (a)  must:
 194-6               (1)  cover an annual period;
 194-7               (2)  be updated at least annually; and
 194-8               (3)  be filed with the governor.
 194-9         (c)  The governor shall deliver a biennial report to the
194-10   legislature based on the information received under Subsection (b).
194-11   The report may be made separately or as a part of other biennial
194-12   reports made to the legislature. (V.A.C.S. Art. 6573a, Secs. 5(u),
194-13   (v), (w).)
194-14           (Sections 1101.107-1101.150 reserved for expansion)
194-15               SUBCHAPTER D.  COMMISSION POWERS AND DUTIES
194-16         Sec. 1101.151.  GENERAL POWERS AND DUTIES OF COMMISSION. (a)
194-17   The commission shall:
194-18               (1)  administer this chapter and Chapter 1102;
194-19               (2)  adopt rules and establish standards relating to
194-20   permissible forms of advertising by a license holder acting as a
194-21   residential rental locator;
194-22               (3)  maintain a registry of certificate holders; and
194-23               (4)  design and adopt a seal.
194-24         (b)  The commission may:
194-25               (1)  adopt and enforce rules necessary to administer
194-26   this chapter and Chapter 1102;
194-27               (2)  establish standards of conduct and ethics for
 195-1   persons licensed under this chapter and Chapter 1102 to:
 195-2                     (A)  fulfill the purposes of this chapter and
 195-3   Chapter 1102; and
 195-4                     (B)  ensure compliance with this chapter and
 195-5   Chapter 1102; and
 195-6               (3)  authorize specific employees to conduct hearings
 195-7   and issue final decisions in contested cases. (V.A.C.S. Art. 6573a,
 195-8   Secs. 5(a) (part), (h) (part), (j) (part), (t) (part), 9A(b), (d),
 195-9   24(c).)
195-10         Sec. 1101.152.  FEES. (a)  The commission shall charge and
195-11   collect the following fees:
195-12               (1)  for filing an original application for a broker
195-13   license, not more than $100;
195-14               (2)  for annual renewal of a broker license, not more
195-15   than $100;
195-16               (3)  for filing an original application for a
195-17   salesperson license, not more than $50;
195-18               (4)  for annual renewal of a salesperson license, not
195-19   more than $50;
195-20               (5)  for annual registration, $80;
195-21               (6)  for an application for a license examination, not
195-22   more than $50;
195-23               (7)  for filing a request for a branch office license,
195-24   not more than $20;
195-25               (8)  for filing a request for a change of place of
195-26   business, change of name, return to active status, or change of
195-27   sponsoring broker, not more than $20;
 196-1               (9)  for filing a request to replace a lost or
 196-2   destroyed license or certificate of registration, not more than
 196-3   $20;
 196-4               (10)  for filing an application for approval of an
 196-5   education program under Subchapter G, not more than $400;
 196-6               (11)  for annual operation of an education program
 196-7   under Subchapter G, not more than $200;
 196-8               (12)  for transcript evaluation, $15;
 196-9               (13)  for preparing a license or registration history,
196-10   not more than $10; and
196-11               (14)  for filing an application for a moral character
196-12   determination, not more than $50.
196-13         (b)  The commission may set and collect reasonable fees to
196-14   implement the continuing education requirements for license
196-15   holders, including the following fees:
196-16               (1)  for an application for approval of a continuing
196-17   education provider, not more than $400; and
196-18               (2)  for an application for approval of a continuing
196-19   education course of study, not more than $100. (V.A.C.S.
196-20   Art. 6573a, Secs. 7A(d) (part), 11 (part).)
196-21         Sec. 1101.153.  FEE INCREASE. (a)  The fee for filing an
196-22   original application for an individual broker license and the fee
196-23   for annual renewal of an individual broker license is the amount of
196-24   the fee set by the commission under Section 1101.152 and a fee
196-25   increase of $200.
196-26         (b)  Of each fee increase collected under Subsection (a), $50
196-27   shall be deposited to the credit of the foundation school fund and
 197-1   $150 shall be deposited to the credit of the general revenue fund.
 197-2   (V.A.C.S. Art. 6573a, Secs. 11A(a), (b) (part).)
 197-3         Sec. 1101.154.  ADDITIONAL FEE:  TEXAS REAL ESTATE RESEARCH
 197-4   CENTER. (a)  The fee for the issuance or renewal of a:
 197-5               (1)  broker license is the amount of the fee set under
 197-6   Sections 1101.152 and 1101.153 and an additional $20 fee;
 197-7               (2)  salesperson license is the amount of the fee set
 197-8   under Section 1101.152 and an additional $17.50 fee; and
 197-9               (3)  certificate of registration is the amount of the
197-10   fee set under Section 1101.152 and an additional $20 fee.
197-11         (b)  The commission shall transmit quarterly the additional
197-12   fees collected under Subsection (a) to Texas A&M University for
197-13   deposit in a separate banking account that may be appropriated only
197-14   to support, maintain, and carry out the purposes, objectives, and
197-15   duties of the Texas Real Estate Research Center.  (V.A.C.S.
197-16   Art. 6573a, Secs. 5(m) (part), 11 (part).)
197-17         Sec. 1101.155.  RULES RELATING TO CONTRACT FORMS. (a)  The
197-18   commission may adopt rules in the public's best interest that
197-19   require license holders to use contract forms prepared by the Texas
197-20   Real Estate Broker-Lawyer Committee and adopted by the commission.
197-21         (b)  The commission may not prohibit a license holder from
197-22   using for the sale, exchange, option, or lease of an interest in
197-23   real property a contract form that is:
197-24               (1)  prepared by the property owner; or
197-25               (2)  prepared by an attorney and required by the
197-26   property owner.
197-27         (c)  A listing contract form adopted by the commission that
 198-1   relates to the contractual obligations between a seller of real
 198-2   estate and a license holder acting as an agent for the seller must
 198-3   include:
 198-4               (1)  a provision informing the parties to the contract
 198-5   that real estate commissions are negotiable; and
 198-6               (2)  a provision explaining the availability of Texas
 198-7   coastal natural hazards information important to coastal residents,
 198-8   if that information is appropriate. (V.A.C.S. Art. 6573a, Secs.
 198-9   16(e) (part), 18A.)
198-10         Sec. 1101.156.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
198-11   BIDDING. (a)  The commission may not adopt a rule restricting
198-12   advertising or competitive bidding by a person regulated by the
198-13   commission except to prohibit a false, misleading, or deceptive
198-14   practice by the person.
198-15         (b)  The commission may not include in rules to prohibit
198-16   false, misleading, or deceptive practices by a person regulated by
198-17   the commission a rule that:
198-18               (1)  restricts the use of any advertising medium;
198-19               (2)  restricts the person's personal appearance or use
198-20   of the person's voice in an advertisement;
198-21               (3)  relates to the size or duration of an
198-22   advertisement used by the person; or
198-23               (4)  restricts the person's advertisement under a trade
198-24   name.  (V.A.C.S. Art. 6573a, Sec. 5(z).)
198-25         Sec. 1101.157.  SUBPOENA AUTHORITY. (a)  The commission may
198-26   request and, if necessary, compel by subpoena:
198-27               (1)  the attendance of witnesses for examination under
 199-1   oath; and
 199-2               (2)  the production for inspection and copying of
 199-3   records, documents, and other evidence relevant to the
 199-4   investigation of an alleged violation of this chapter.
 199-5         (b)  A subpoena may be issued throughout the state and may be
 199-6   served by any person designated by the commission.
 199-7         (c)  If a person fails to comply with a subpoena issued under
 199-8   this section, the commission, acting through the attorney general,
 199-9   may file suit to enforce the subpoena in a district court in Travis
199-10   County or in the county in which a hearing conducted by the
199-11   commission may be held.
199-12         (d)  The court shall order compliance with the subpoena if
199-13   the court finds that good cause exists to issue the subpoena.
199-14   (V.A.C.S. Art. 6573a, Secs. 15(e), 17(b).)
199-15           (Sections 1101.158-1101.200 reserved for expansion)
199-16             SUBCHAPTER E.  PUBLIC INTEREST INFORMATION AND
199-17                          COMPLAINT PROCEDURES
199-18         Sec. 1101.201.  PUBLIC INTEREST INFORMATION. (a)  The
199-19   commission shall prepare information of public interest describing
199-20   the functions of the commission and the procedures by which
199-21   complaints are filed with and resolved by the commission.
199-22         (b)  The commission shall make the information available to
199-23   the public and appropriate state agencies.  (V.A.C.S. Art. 6573a,
199-24   Sec. 5(r).)
199-25         Sec. 1101.202.  COMPLAINTS. (a)  The commission by rule shall
199-26   establish methods by which consumers and service recipients are
199-27   notified of the name, mailing address, and telephone number of the
 200-1   commission for the purpose of directing a complaint to the
 200-2   commission.  The commission may provide for that notice:
 200-3               (1)  on each application for a license or certificate
 200-4   of registration or written contract for services of a person
 200-5   regulated under this chapter or Chapter 1102;
 200-6               (2)  on a sign prominently displayed in the place of
 200-7   business of each person regulated under this chapter or Chapter
 200-8   1102;
 200-9               (3)  in a bill for services provided by a person
200-10   regulated under this chapter or Chapter 1102; or
200-11               (4)  in conjunction with the notice required by Section
200-12   1101.615.
200-13         (b)  The commission shall provide to a person who files a
200-14   complaint with the commission relating to a license holder and to
200-15   the license holder against whom the complaint is filed:
200-16               (1)  an explanation of the remedies that are available
200-17   to the person under this chapter; and
200-18               (2)  information about appropriate state or local
200-19   agencies or officials with whom the person may file a complaint.
200-20   (V.A.C.S. Art. 6573a, Secs. 5(q), 18B(a).)
200-21         Sec. 1101.203.  COMPLAINT INFORMATION. (a)  The commission
200-22   shall maintain an information file about each complaint filed with
200-23   the commission that the commission has authority to resolve.
200-24         (b)  If a written complaint is filed with the commission that
200-25   the commission has authority to resolve, the commission, at least
200-26   quarterly and until final disposition of the complaint, shall
200-27   notify the parties to the complaint of the status of the complaint
 201-1   unless the notice would jeopardize an undercover investigation
 201-2   authorized under Section 1101.204.  (V.A.C.S. Art. 6573a, Secs.
 201-3   18B(b), (c).)
 201-4         Sec. 1101.204.  COMPLAINT INVESTIGATION AND DISPOSITION. (a)
 201-5   The commission may, on its own motion, investigate the actions and
 201-6   records of a license holder.
 201-7         (b)  The commission shall investigate the actions and records
 201-8   of a license holder if:
 201-9               (1)  a consumer or service recipient submits a signed,
201-10   written complaint; and
201-11               (2)  the complaint and any evidence presented with the
201-12   complaint provide reasonable cause for an investigation.
201-13         (c)  The commission may not conduct an investigation of a
201-14   license holder in connection with a complaint submitted later than
201-15   the fourth anniversary of the date of the incident that is the
201-16   subject of the complaint.
201-17         (d)  The commission shall promptly provide a written notice
201-18   to a person licensed under this chapter or Chapter 1102 who is the
201-19   subject of an investigation unless after deliberation the
201-20   commission decides against notification.
201-21         (e)  Notwithstanding any other provision of this chapter, an
201-22   undercover or covert investigation may not be conducted unless the
201-23   commission expressly authorizes the investigation after considering
201-24   the circumstances and determining that the investigation is
201-25   necessary to implement this chapter.
201-26         (f)  An investigation or other action against a person
201-27   licensed under this chapter or Chapter 1102 may not be initiated on
 202-1   the basis of an anonymous complaint.
 202-2         (g)  The commission may authorize a commission employee to
 202-3   file a signed, written complaint against a person licensed under
 202-4   this chapter or Chapter 1102 and to conduct an investigation if:
 202-5               (1)  a judgment against the person has been paid from
 202-6   the real estate recovery trust account under this chapter or the
 202-7   real estate inspection recovery fund under Chapter 1102;
 202-8               (2)  the person is convicted of a criminal offense that
 202-9   may constitute grounds for the suspension or revocation of the
202-10   person's license; or
202-11               (3)  the person fails to honor a check issued to the
202-12   commission.  (V.A.C.S. Art. 6573a, Secs. 15(a) (part), (d), 15B(a),
202-13   (e).)
202-14         Sec. 1101.205.  COMPLAINT INVESTIGATION OF CERTIFICATE
202-15   HOLDER. The commission shall investigate a signed complaint
202-16   received by the commission that relates to an act of a certificate
202-17   holder or a person required to hold a certificate under Subchapter
202-18   K.  (V.A.C.S. Art. 6573a, Sec. 9A(c) (part).)
202-19         Sec. 1101.206.  PUBLIC PARTICIPATION. (a)  The commission
202-20   shall develop and implement policies that provide the public with a
202-21   reasonable opportunity to appear before the commission and to speak
202-22   on any issue under the commission's jurisdiction.
202-23         (b)  The commission shall prepare and maintain a written plan
202-24   that describes how a person who does not speak English or who has a
202-25   physical, mental, or developmental disability may be provided
202-26   reasonable access to the commission's programs.  (V.A.C.S.
202-27   Art. 6573a, Secs. 5(p), (y).)
 203-1           (Sections 1101.207-1101.250 reserved for expansion)
 203-2        SUBCHAPTER F.  TEXAS REAL ESTATE BROKER-LAWYER COMMITTEE
 203-3         Sec. 1101.251.  DEFINITION OF COMMITTEE. In this subchapter,
 203-4   "committee" means the Texas Real Estate Broker-Lawyer Committee.
 203-5   (New.)
 203-6         Sec. 1101.252.  COMMITTEE MEMBERSHIP. (a)  The Texas Real
 203-7   Estate Broker-Lawyer Committee consists of 12 members appointed as
 203-8   follows:
 203-9               (1)  six members appointed by the commission; and
203-10               (2)  six members of the State Bar of Texas appointed by
203-11   the president of the state bar.
203-12         (b)  Appointments to the committee shall be made without
203-13   regard to the race, creed, sex, religion, or national origin of the
203-14   appointee.  (V.A.C.S. Art. 6573a, Sec. 16(d) (part).)
203-15         Sec. 1101.253.  TERMS; VACANCIES. (a)  Committee members
203-16   serve staggered six-year terms, with the terms of two commission
203-17   appointees and two State Bar of Texas appointees expiring every two
203-18   years.
203-19         (b)  A committee member shall hold office until the member's
203-20   successor is appointed.
203-21         (c)  If a vacancy occurs during a member's term, the entity
203-22   making the original appointment shall appoint a person to fill the
203-23   unexpired term.  (V.A.C.S. Art. 6573a, Sec. 16(d) (part).)
203-24         Sec. 1101.254.  POWERS AND DUTIES. (a)  In addition to other
203-25   delegated powers and duties, the committee shall draft and revise
203-26   contract forms that are capable of being standardized to expedite
203-27   real estate transactions and minimize controversy.
 204-1         (b)  The contract forms must contain safeguards adequate to
 204-2   protect the principals in the transaction.  (V.A.C.S. Art. 6573a,
 204-3   Sec. 16(c).)
 204-4           (Sections 1101.255-1101.300 reserved for expansion)
 204-5        SUBCHAPTER G.  ACCREDITATION AND APPROVAL OF REAL ESTATE
 204-6                EDUCATIONAL PROGRAMS AND COURSES OF STUDY
 204-7         Sec. 1101.301.  ACCREDITATION OF PROGRAMS AND COURSES OF
 204-8   STUDY. (a)  The commission, as necessary for the administration of
 204-9   this chapter and Chapter 1102, may:
204-10               (1)  establish standards for the accreditation of
204-11   educational programs or courses of study in real estate and real
204-12   estate inspection conducted in this state, excluding programs and
204-13   courses offered by accredited colleges and universities;
204-14               (2)  establish by rule reasonable criteria for the
204-15   approval of real estate and real estate inspection courses; and
204-16               (3)  inspect and accredit real estate and real estate
204-17   inspection educational programs or courses of study.
204-18         (b)  The commission shall determine whether a real estate or
204-19   real estate inspection course satisfies the requirements of this
204-20   chapter and Chapter 1102.   (V.A.C.S. Art. 6573a, Sec. 7(f)
204-21   (part).)
204-22         Sec. 1101.302.  BOND REQUIRED. (a)  In this section,
204-23   "educational institution" means a school, excluding an accredited
204-24   college or university, authorized by the commission under this
204-25   chapter to offer a real estate or real estate inspection
204-26   educational program or course of study.
204-27         (b)  An educational institution shall maintain a corporate
 205-1   surety bond or other security acceptable to the commission that is:
 205-2               (1)  in the amount of $10,000;
 205-3               (2)  payable to the commission; and
 205-4               (3)  for the benefit of a party who suffers damages
 205-5   caused by the failure of the institution to fulfill obligations
 205-6   related to the commission's approval. (V.A.C.S. Art. 6573a, Sec.
 205-7   7(f) (part).)
 205-8         Sec. 1101.303.  APPROVAL OF CONTINUING EDUCATION PROVIDER OR
 205-9   COURSE OF STUDY. (a)  If the commission determines that an
205-10   applicant for approval as a continuing education provider satisfies
205-11   the requirements of this subchapter and any rule adopted under this
205-12   subchapter, the commission may authorize the applicant to offer
205-13   continuing education for a two-year period.
205-14         (b)  If the commission determines that an applicant for
205-15   approval of a continuing education course of study satisfies the
205-16   requirements of this subchapter and any rule adopted under this
205-17   subchapter, the commission may authorize the applicant to offer the
205-18   course of study for a two-year period.  (V.A.C.S. Art. 6573a, Sec.
205-19   7A(d) (part).)
205-20           (Sections 1101.304-1101.350 reserved for expansion)
205-21                   SUBCHAPTER H.  LICENSE REQUIREMENTS
205-22         Sec. 1101.351.  LICENSE REQUIRED. (a)  Unless a person holds
205-23   a license issued under this chapter, the person may not:
205-24               (1)  act as or represent that the person is a broker or
205-25   salesperson; or
205-26               (2)  act as a residential rental locator.
205-27         (b)  An applicant for a broker or salesperson license may not
 206-1   act as a broker or salesperson until the person receives the
 206-2   license evidencing that authority.
 206-3         (c)  A licensed salesperson may not act or attempt to act as
 206-4   a broker or salesperson unless the salesperson is associated with a
 206-5   licensed broker and is acting for that broker. (V.A.C.S.
 206-6   Art. 6573a, Secs. 1(b), 4 (part), 9(b) (part), 24(b) (part).)
 206-7         Sec. 1101.352.  LICENSE APPLICATION. (a)  Each applicant for
 206-8   a broker or salesperson license must submit an application on a
 206-9   form prescribed by the commission.
206-10         (b)  A broker who intends to associate with an applicant for
206-11   a salesperson license must join the applicant in filing the
206-12   application.
206-13         (c)  Each applicant for a broker or salesperson license must
206-14   disclose in the license application whether the applicant has:
206-15               (1)  entered a plea of guilty or nolo contendere to a
206-16   felony; or
206-17               (2)  been convicted of a felony and the time for appeal
206-18   has elapsed or the judgment or conviction has been affirmed on
206-19   appeal.
206-20         (d)  The disclosure under Subsection (c) must be provided
206-21   even if an order has granted community supervision suspending the
206-22   imposition of the sentence.  (V.A.C.S. Art. 6573a, Secs. 6(a),
206-23   (part), 9(e) (part).)
206-24         Sec. 1101.353.  MORAL CHARACTER DETERMINATION. (a)  If before
206-25   applying for a license under this chapter a person requests that
206-26   the commission determine whether the person's moral character
206-27   complies with the commission's moral character requirements for
 207-1   licensing under this chapter and pays the fee prescribed by Section
 207-2   1101.152, the commission shall make its determination of the
 207-3   person's moral character.
 207-4         (b)  Not later than the 30th day after the date the
 207-5   commission makes its determination, the commission shall notify the
 207-6   person of the determination.
 207-7         (c)  If a person applies for a license after receiving notice
 207-8   of a determination, the commission may conduct a supplemental moral
 207-9   character determination of the person.  The supplemental
207-10   determination may cover only the period after the date the person
207-11   requests a moral character determination under this section.
207-12   (V.A.C.S. Art. 6573a, Sec. 6A.)
207-13         Sec. 1101.354.  GENERAL ELIGIBILITY REQUIREMENTS. To be
207-14   eligible to receive a license under this chapter, a person must:
207-15               (1)  at the time of application:
207-16                     (A)  be at least 18 years of age;
207-17                     (B)  be a citizen of the United States or a
207-18   lawfully admitted alien; and
207-19                     (C)  be a resident of this state;
207-20               (2)  satisfy the commission as to the applicant's
207-21   honesty, trustworthiness, and integrity;
207-22               (3)  demonstrate competence based on an examination
207-23   under Subchapter I;
207-24               (4)  complete the required courses of study, including
207-25   any required core real estate courses prescribed under this
207-26   chapter; and
207-27               (5)  complete at least:
 208-1                     (A)  three classroom hours of course work on
 208-2   federal, state, and local laws governing housing discrimination,
 208-3   housing credit discrimination, and community reinvestment; or
 208-4                     (B)  three semester hours of course work on
 208-5   constitutional law.  (V.A.C.S. Art. 6573a, Secs. 6(b), 7(a) (part),
 208-6   (j).)
 208-7         Sec. 1101.355.  ADDITIONAL GENERAL ELIGIBILITY REQUIREMENTS
 208-8   FOR CERTAIN BUSINESS ENTITIES. (a)  To be eligible for a license
 208-9   under this chapter:
208-10               (1)  a corporation must designate one of its officers
208-11   as its agent for purposes of this chapter; and
208-12               (2)  a limited liability company must designate one of
208-13   its managers as its agent for purposes of this chapter.
208-14         (b)  A corporation or limited liability company may not act
208-15   as a broker unless the entity's designated agent is a licensed
208-16   broker according to the commission's records.  (V.A.C.S.
208-17   Art. 6573a, Sec. 6(c) (part).)
208-18         Sec. 1101.356.  BROKER LICENSE:  EXPERIENCE AND EDUCATION
208-19   REQUIREMENTS. (a)  An applicant for a broker license must provide
208-20   to the commission satisfactory evidence that the applicant:
208-21               (1)  has had at least two years of active experience in
208-22   this state as a license holder during the 36 months preceding the
208-23   date the application is filed; and
208-24               (2)  has successfully completed at least 60 semester
208-25   hours, or equivalent classroom hours, of core real estate courses
208-26   or related postsecondary education courses accepted by the
208-27   commission.
 209-1         (b)  Subsection (a) does not apply to an applicant who, at
 209-2   the time of application, is licensed as a real estate broker by
 209-3   another state that has license requirements comparable to the
 209-4   requirements of this state.
 209-5         (c)  An applicant for a broker license who is licensed as a
 209-6   salesperson and is subject to the annual education requirements
 209-7   prescribed by Section 1101.454 must provide to the commission
 209-8   satisfactory evidence that the applicant has satisfied the
 209-9   requirements of that section.  The hours completed under Section
209-10   1101.454 shall be applied to the number of hours required of the
209-11   applicant under Subsection (a)(2) of this section. (V.A.C.S.
209-12   Art. 6573a, Secs. 7(d), (g) (part).)
209-13         Sec. 1101.357.  BROKER LICENSE: ALTERNATE EXPERIENCE
209-14   REQUIREMENTS FOR CERTAIN APPLICANTS. An applicant for a broker
209-15   license who does not satisfy the experience requirements of Section
209-16   1101.356 must provide to the commission satisfactory evidence that:
209-17               (1)  the applicant:
209-18                     (A)  is a licensed real estate broker in another
209-19   state;
209-20                     (B)  has had at least two years of active
209-21   experience in that state as a licensed real estate broker or
209-22   salesperson during the 36 months preceding the date the application
209-23   is filed; and
209-24                     (C)  has satisfied the educational requirements
209-25   prescribed by Section 1101.356; or
209-26               (2)  the applicant was licensed in this state as a
209-27   broker in the year preceding the date the application is filed.
 210-1   (V.A.C.S. Art. 6573a, Secs. 7(g) (part), 14(b) (part).)
 210-2         Sec. 1101.358.  SALESPERSON LICENSE:  EDUCATION REQUIREMENTS.
 210-3   (a)  An applicant for a salesperson license must provide to the
 210-4   commission satisfactory evidence that the applicant has completed
 210-5   at least 12 semester hours, or equivalent classroom hours, of
 210-6   postsecondary education, including:
 210-7               (1)  at least two hours of each of the following core
 210-8   real estate courses:
 210-9                     (A)  principles of real estate;
210-10                     (B)  agency law; and
210-11                     (C)  contract law; and
210-12               (2)  at least six hours of core real estate courses or
210-13   related courses.
210-14         (b)  The commission shall waive the education requirements of
210-15   Subsection (a) if the applicant has been licensed in this state as
210-16   a broker or salesperson within the year preceding the date the
210-17   application is filed.
210-18         (c)  If an applicant for a salesperson license was licensed
210-19   as a salesperson within the year preceding the date the application
210-20   is filed and the license was issued under the conditions prescribed
210-21   by Section 1101.454, the commission shall require the applicant to
210-22   provide the evidence of successful completion of education
210-23   requirements that would have been required if the license had been
210-24   maintained without interruption during the preceding year.
210-25   (V.A.C.S. Art. 6573a, Secs. 7(e) (part), (h).)
210-26         Sec. 1101.359.  ALTERNATE EDUCATION REQUIREMENTS FOR CERTAIN
210-27   LICENSE HOLDERS. An applicant for a broker license who is not
 211-1   subject to the education requirements of Section 1101.356(a)(2) and
 211-2   an applicant for a salesperson license who is not subject to the
 211-3   education requirements of Section 1101.358 or 1101.454 must provide
 211-4   to the commission satisfactory evidence that the applicant has
 211-5   completed the number of classroom hours of continuing education
 211-6   that would have been required for a timely renewal under Section
 211-7   1101.455 during the two years preceding the date the application is
 211-8   filed. (V.A.C.S. Art. 6573a, Sec. 7A(b).)
 211-9         Sec. 1101.360.  ELIGIBILITY REQUIREMENTS FOR CERTAIN
211-10   NONRESIDENT APPLICANTS. (a)  A resident of another state who is not
211-11   a licensed real estate broker  and who was formerly licensed in
211-12   this state as a broker or salesperson may apply for a license under
211-13   this chapter not later than the first anniversary of the date of
211-14   the expiration of the former license.
211-15         (b)  A nonresident applicant is subject to the same license
211-16   requirements as a resident.  The commission may refuse to issue a
211-17   license to a nonresident applicant for the same reasons that it may
211-18   refuse to issue a license to a resident applicant.
211-19         (c)  A nonresident applicant must submit with the application
211-20   an irrevocable consent to a legal action against the applicant in
211-21   the court of any county in this state in which a cause of action
211-22   may arise or in which the plaintiff may reside.  The action may be
211-23   commenced by service of process or pleading authorized by the laws
211-24   of this state or by delivery of process on the administrator or
211-25   assistant administrator of the commission.  The consent must:
211-26               (1)  stipulate that the service of process or pleading
211-27   is valid and binding in all courts as if personal service had been
 212-1   made on the nonresident in this state;
 212-2               (2)  be acknowledged; and
 212-3               (3)  if made by a corporation, be authenticated by its
 212-4   seal.
 212-5         (d)  A service of process or pleading served on the
 212-6   commission under this section shall be by duplicate copies.  One
 212-7   copy shall be filed in the commission's office, and the other copy
 212-8   shall be forwarded by registered mail to the last known principal
 212-9   address recorded in the commission's records for the nonresident
212-10   against whom the process or pleading is directed.
212-11         (e)  A default judgment in an action commenced as provided by
212-12   this section may not be granted:
212-13               (1)  unless the commission certifies that a copy of the
212-14   process or pleading was mailed to the defendant as provided by
212-15   Subsection (d); and
212-16               (2)  until the 21st day after the date the process or
212-17   pleading is mailed to the defendant. (V.A.C.S. Art. 6573a, Secs.
212-18   14(b) (part), (c) (part).)
212-19         Sec. 1101.361.  ADDITIONAL ELIGIBILITY REQUIREMENTS FOR
212-20   CERTAIN NONRESIDENT APPLICANTS. (a)  Notwithstanding Section
212-21   1101.360, a nonresident applicant for a license who resides in a
212-22   municipality whose boundary is contiguous at any point with the
212-23   boundary of a municipality in this state is eligible to be licensed
212-24   under this chapter in the same manner as a resident of this state
212-25   if the nonresident has been a resident of that municipality for at
212-26   least the 60 days preceding the date the application is filed.
212-27         (b)  A person licensed under this section shall maintain at
 213-1   all times a place of business in the municipality in which the
 213-2   person resides or in the municipality in this state that is
 213-3   contiguous to the municipality in which the person resides. The
 213-4   place of business must meet all the requirements of Section
 213-5   1101.552.  A place of business located in the municipality in which
 213-6   the person resides is considered to be in this state.
 213-7         (c)  A person licensed under this section may not maintain a
 213-8   place of business at another location in this state unless the
 213-9   person complies with Section 1101.356 or 1101.357. (V.A.C.S.
213-10   Art. 6573a, Sec. 14(c) (part).)
213-11         Sec. 1101.362.  WAIVER OF LICENSE REQUIREMENTS:  PREVIOUS
213-12   LICENSE HOLDERS. The commission by rule may waive some or all of
213-13   the requirements for a license under this chapter for an applicant
213-14   who was licensed under this chapter within the six years preceding
213-15   the date the application is filed.  (V.A.C.S. Art. 6573a, Sec. 7(c)
213-16   (part).)
213-17         Sec. 1101.363.  ISSUANCE OF LICENSE. (a)  The commission
213-18   shall issue an appropriate license to an applicant who meets the
213-19   requirements for a license.
213-20         (b)  A license remains in effect for the period prescribed by
213-21   the commission if the license holder complies with this chapter and
213-22   pays the appropriate renewal fees. (V.A.C.S. Art. 6573a, Sec. 9(a)
213-23   (part).)
213-24         Sec. 1101.364.  DENIAL OF LICENSE. (a) The commission shall
213-25   immediately give written notice to the applicant of the
213-26   commission's denial of a license.
213-27         (b)  Before the applicant may appeal under Section 1101.658,
 214-1   the applicant must file, not later than the 10th day after the date
 214-2   the applicant receives the notice, an appeal requesting a time and
 214-3   place for a hearing before the commission.  If the applicant fails
 214-4   to request a hearing as provided by this subsection, the
 214-5   commission's decision becomes final and is not subject to judicial
 214-6   review.
 214-7         (c)  The commission shall:
 214-8               (1)  set a time and place for the hearing not later
 214-9   than the 30th day after the date the commission receives the
214-10   appeal; and
214-11               (2)  give notice of the hearing to the applicant before
214-12   the 10th day preceding the date of the hearing.
214-13         (d)  The hearing may be continued from time to time with the
214-14   consent of the applicant.
214-15         (e)  After the hearing, the commission shall enter an
214-16   appropriate order.  (V.A.C.S. Art. 6573a, Secs. 10(a) (part), (b).)
214-17         Sec. 1101.365.  PROBATIONARY LICENSE. (a)  The commission may
214-18   issue a probationary license.
214-19         (b)  The commission by rule shall adopt reasonable terms for
214-20   issuing a probationary license. (V.A.C.S. Art. 6573a, Sec. 10(c).) 
214-21         Sec. 1101.366.  INACTIVE LICENSE:  BROKER. (a)  The
214-22   commission may place on inactive status the license of a broker if
214-23   the broker:
214-24               (1)  is not acting as a broker;
214-25               (2)  is not sponsoring a salesperson; and
214-26               (3)  submits a written application to the commission
214-27   before the expiration date of the broker's license.
 215-1         (b)  The commission may place on inactive status the license
 215-2   of a broker whose license has expired if the broker applies for
 215-3   inactive status on a form prescribed by the commission not later
 215-4   than the first anniversary of the expiration date of the broker's
 215-5   license.
 215-6         (c)  A broker applying for inactive status shall terminate
 215-7   the broker's association with each salesperson sponsored by the
 215-8   broker by giving written notice to each salesperson before the 30th
 215-9   day preceding the date the broker applies for inactive status.
215-10         (d)  A broker on inactive status:
215-11               (1)  may not perform any activity regulated under this
215-12   chapter; and
215-13               (2)  must pay annual renewal fees.
215-14         (e)  The commission shall maintain a list of each broker
215-15   whose license is on inactive status.
215-16         (f)  The commission shall remove a broker's license from
215-17   inactive status if the broker:
215-18               (1)  submits an application to the commission;
215-19               (2)  pays the required fee; and
215-20               (3)  submits proof of attending at least 15 classroom
215-21   hours of continuing education as specified by Section 1101.455
215-22   during the two years preceding the date the application under
215-23   Subdivision (1) is filed. (V.A.C.S. Art. 6573a, Secs. 6(a) (part),
215-24   13A.)
215-25         Sec. 1101.367.  INACTIVE LICENSE:  SALESPERSON. (a)  The
215-26   commission may place on inactive status the license of a person
215-27   who was previously licensed as a salesperson if the person applies
 216-1   for inactive status on a form prescribed by the commission not
 216-2   later than the first anniversary of the expiration date of the
 216-3   license.  An application under this subsection does not require the
 216-4   participation of a broker.
 216-5         (b)  When the association of a salesperson with the
 216-6   salesperson's sponsoring broker terminates, the broker shall
 216-7   immediately return the salesperson license to the commission. A
 216-8   salesperson license returned under this subsection is inactive.
 216-9         (c)  The commission may remove a salesperson license from
216-10   inactive status under Subsection (b) if, before the expiration date
216-11   of the salesperson license, a licensed broker files a request with
216-12   the commission advising the commission that the broker assumes
216-13   sponsorship of the salesperson, accompanied by the appropriate fee.
216-14         (d)  As a condition of returning to active status, an
216-15   inactive salesperson whose license is not subject to the annual
216-16   education requirements of Section 1101.454 must provide to the
216-17   commission proof of attending at least 15 hours of continuing
216-18   education as specified by Section 1101.455 during the two years
216-19   preceding the date the application to return to active status is
216-20   filed. (V.A.C.S. Art. 6573a, Secs. 6(a) (part), 7A(c), 13.)
216-21           (Sections 1101.368-1101.400 reserved for expansion)
216-22                       SUBCHAPTER I.  EXAMINATIONS
216-23         Sec. 1101.401.  EXAMINATION REQUIRED. (a)  The competency
216-24   requirement prescribed under Section 1101.354(3) shall be
216-25   established by an examination prepared or contracted for by the
216-26   commission.
216-27         (b)  The commission shall determine the time and place in the
 217-1   state for offering the examination.
 217-2         (c)  The examination must be of sufficient scope in the
 217-3   judgment of the commission to determine whether a person is
 217-4   competent to act as a broker or salesperson in a manner that will
 217-5   protect the public.
 217-6         (d)  The examination for a salesperson license must be less
 217-7   exacting and less stringent than the broker examination.
 217-8         (e)  The commission shall provide each applicant with study
 217-9   material and references on which the examination is based.
217-10         (f)  An applicant must satisfy the examination requirement
217-11   not later than six months after the date the license application is
217-12   filed. (V.A.C.S. Art. 6573a, Sec. 7(a) (part).)
217-13         Sec. 1101.402.  WAIVER OF EXAMINATION. The commission shall
217-14   waive the examination requirement for an applicant for:
217-15               (1)  a broker license if:
217-16                     (A)  the applicant was previously licensed in
217-17   this state as a broker; and
217-18                     (B)  the application is filed before the first
217-19   anniversary of the expiration date of that license; and
217-20               (2)  a salesperson license if:
217-21                     (A)  the applicant was previously licensed in
217-22   this state as a broker or salesperson; and
217-23                     (B)  the application is filed before the first
217-24   anniversary of the expiration date of that license. (V.A.C.S.
217-25   Art. 6573a, Sec. 7(c) (part).)
217-26         Sec. 1101.403.  ADMINISTRATION OF EXAMINATION; TESTING
217-27   SERVICE. (a)  The commission shall administer any examination
 218-1   required by this chapter or Chapter 1102 unless the commission
 218-2   enters into an agreement with a testing service to administer the
 218-3   examination.
 218-4         (b)  The commission may accept an examination administered by
 218-5   a testing service if the commission retains the authority to
 218-6   establish the scope and type of the examination.
 218-7         (c)  The commission may negotiate an agreement with a testing
 218-8   service relating to examination development, scheduling, site
 218-9   arrangements, administration, grading, reporting, and analysis.
218-10         (d)  The commission may require a testing service to:
218-11               (1)  correspond directly with license applicants
218-12   regarding the administration of the examination;
218-13               (2)  collect fees directly from applicants for
218-14   administering the examination; or
218-15               (3)  administer the examination at specific locations
218-16   and specified frequencies.
218-17         (e)  The commission shall adopt rules and standards as
218-18   necessary to implement this section. (V.A.C.S. Art. 6573a, Sec.
218-19   7(k).)
218-20         Sec. 1101.404.  EXAMINATION RESULTS. (a)  Not later than the
218-21   30th day after the date an examination is administered, the
218-22   commission shall notify each examinee of the results of the
218-23   examination.  If an examination is graded or reviewed by a national
218-24   testing service, the commission shall notify each examinee of the
218-25   results of the examination not later than the 14th day after the
218-26   date the commission receives the results from the testing service.
218-27         (b)  If the notice of the results of an examination graded or
 219-1   reviewed by a national testing service will be delayed for more
 219-2   than 90 days after the examination date, the commission shall
 219-3   notify each examinee of the reason for the delay before the 90th
 219-4   day.
 219-5         (c)  If requested in writing by a person who fails an
 219-6   examination, the commission shall provide to the person an analysis
 219-7   of the person's performance on the examination. (V.A.C.S.
 219-8   Art. 6573a, Sec. 7(i).)
 219-9         Sec. 1101.405.  REEXAMINATION. An applicant who fails an
219-10   examination may apply for reexamination by filing a request
219-11   accompanied by the proper fee. (V.A.C.S. Art. 6573a, Sec. 7(a)
219-12   (part).)
219-13           (Sections 1101.406-1101.450 reserved for expansion)
219-14                     SUBCHAPTER J.  LICENSE RENEWAL
219-15         Sec. 1101.451.  LICENSE EXPIRATION. (a)  The commission may
219-16   issue or renew a license for a period not to exceed 24 months.
219-17         (b)  The commission by rule may adopt a system under which
219-18   licenses expire on various dates during the year.  The commission
219-19   shall adjust the date for payment of the renewal fees accordingly.
219-20         (c)  For a year in which the license expiration date is
219-21   changed, renewal fees payable shall be prorated on a monthly basis
219-22   so that each license holder pays only that portion of the fee that
219-23   is allocable to the number of months during which the license is
219-24   valid. On renewal of the license on the new expiration date, the
219-25   total renewal fee is payable.
219-26         (d)  A renewal fee for a license under this chapter may not
219-27   exceed, calculated on an annual basis, the amount of the sum of the
 220-1   fees established under Sections 1101.152, 1101.154, and 1101.603.
 220-2   (V.A.C.S. Art. 6573a, Secs. 9(c) (part), (d) (part).)
 220-3         Sec. 1101.452.  INFORMATION REQUIRED FOR LICENSE RENEWAL. (a)
 220-4   To renew an active license that is not subject to the annual
 220-5   education requirements of Section 1101.454, the license holder must
 220-6   provide to the commission proof of compliance with the continuing
 220-7   education requirements of Section 1101.455.
 220-8         (b)  Each applicant for the renewal of a license must
 220-9   disclose in the license application whether the applicant has:
220-10               (1)  entered a plea of guilty or nolo contendere to a
220-11   felony; or
220-12               (2)  been convicted of a felony and the time for appeal
220-13   has elapsed or the judgment or conviction has been affirmed on
220-14   appeal.
220-15         (c)  The disclosure under Subsection (b) must be provided
220-16   even if an order has granted community supervision suspending the
220-17   imposition of the sentence. (V.A.C.S. Art. 6573a, Secs. 7A(a)
220-18   (part), 9(e) (part).)
220-19         Sec. 1101.453.  ADDITIONAL RENEWAL REQUIREMENTS FOR CERTAIN
220-20   BUSINESS ENTITIES. (a)  To renew a license under this chapter:
220-21               (1)  a corporation must designate one of its officers
220-22   as its agent for purposes of this chapter; and
220-23               (2)  a limited liability company must designate one of
220-24   its managers as its agent for purposes of this chapter.
220-25         (b)  A corporation or limited liability company may not act
220-26   as a broker unless the entity's designated agent is a licensed
220-27   broker according to the commission's records. (V.A.C.S. Art. 6573a,
 221-1   Sec. 6(c) (part).)
 221-2         Sec. 1101.454.  SALESPERSON LICENSE RENEWAL. (a)  An
 221-3   applicant applying for the first renewal of a salesperson license
 221-4   must provide to the commission satisfactory evidence of completion
 221-5   of at least 14 semester hours, or equivalent classroom hours, of
 221-6   postsecondary education, including eight hours of core real estate
 221-7   courses.
 221-8         (b)  An applicant applying for the second renewal of a
 221-9   salesperson license must provide to the commission satisfactory
221-10   evidence of completion of at least 16 semester hours, or equivalent
221-11   classroom hours, of postsecondary education, including 10 hours of
221-12   core real estate courses.
221-13         (c)  An applicant applying for the third renewal of a
221-14   salesperson license must provide to the commission satisfactory
221-15   evidence of completion of at least 18 semester hours, or equivalent
221-16   classroom hours, of postsecondary education, including 12 hours of
221-17   core real estate courses.
221-18         (d)  The commission may not waive the requirements for
221-19   renewal under this section. (V.A.C.S. Art. 6573a, Secs. 7(e)
221-20   (part), 9(d) (part).)
221-21         Sec. 1101.455.  CONTINUING EDUCATION REQUIREMENTS. (a)  In
221-22   this section, "property tax consulting laws and legal issues"
221-23   includes the Tax Code, preparation of property tax reports, the
221-24   unauthorized practice of law, agency law, tax law, law relating to
221-25   property tax or property assessment, deceptive trade practices,
221-26   contract forms and addendums, and other legal topics approved by
221-27   the commission.
 222-1         (b)  A license holder who is not subject to the annual
 222-2   education requirements of Section 1101.454 must attend during the
 222-3   term of the current license at least 15 classroom hours of
 222-4   continuing education courses approved by the commission.
 222-5         (c)  The commission by rule may approve as a substitute for
 222-6   the classroom attendance required by Subsection (b):
 222-7               (1)  relevant educational experience; and
 222-8               (2)  correspondence courses.
 222-9         (d)  In addition, the commission may approve supervised video
222-10   instruction as a course that may be applied toward satisfaction of
222-11   the classroom hours of continuing education courses required by
222-12   Subsection (b).
222-13         (e)  At least six of the continuing education hours required
222-14   by Subsection (b) must cover the following topics:
222-15               (1)  commission rules;
222-16               (2)  fair housing laws;
222-17               (3)  Property Code issues, including landlord-tenant
222-18   law;
222-19               (4)  agency law;
222-20               (5)  antitrust laws;
222-21               (6)  Subchapter E, Chapter 17, Business & Commerce
222-22   Code;
222-23               (7)  disclosures to buyers, landlords, tenants, and
222-24   sellers;
222-25               (8)  current contract and addendum forms;
222-26               (9)  unauthorized practice of law;
222-27               (10)  case studies involving violations of laws and
 223-1   regulations;
 223-2               (11)  current Federal Housing Administration and
 223-3   Department of Veterans Affairs regulations;
 223-4               (12)  tax laws;
 223-5               (13)  property tax consulting laws and legal issues; or
 223-6               (14)  other legal topics approved by the commission.
 223-7         (f)  The remaining nine hours may be devoted to other real
 223-8   estate-related topics approved by the commission.
 223-9         (g)  The commission may consider courses equivalent to those
223-10   described by Subsections (e) and (f) for continuing education
223-11   credit.
223-12         (h)  The commission shall automatically approve as mandatory
223-13   continuing education courses:
223-14               (1)  core real estate courses; and
223-15               (2)  real estate-related courses approved by the State
223-16   Bar of Texas for minimum continuing legal education participatory
223-17   credit.
223-18         (i)  The commission may not require an examination for a
223-19   course under this section unless the course is a correspondence
223-20   course or a course offered by an alternative delivery system,
223-21   including delivery by computer.
223-22         (j)  Daily classroom course segments must be at least one
223-23   hour and not more than 10 hours. (V.A.C.S. Art. 6573a, Sec. 7A(a).)
223-24         Sec. 1101.456.  EXEMPTION FROM CONTINUING EDUCATION
223-25   REQUIREMENTS FOR CERTAIN BROKERS. Notwithstanding any other
223-26   provision of this chapter, a broker who, before October 31, 1991,
223-27   qualified under former Section 7A(f), The Real Estate License Act
 224-1   (Article 6573a, Vernon's Texas Civil Statutes), as added by Section
 224-2   1.041, Chapter 553, Acts of the 72nd Legislature, Regular Session,
 224-3   1991, for an exemption from continuing education requirements is
 224-4   not required to comply with the mandatory continuing education
 224-5   requirements of this subchapter to renew the broker's license.
 224-6   (V.A.C.S. Art. 6573a, Sec. 7A(f) (part).)
 224-7         Sec. 1101.457.  DEFERRAL OF CONTINUING EDUCATION
 224-8   REQUIREMENTS. (a)  The commission by rule may establish procedures
 224-9   under which an applicant may have the applicant's license issued,
224-10   renewed, or returned to active status before the applicant
224-11   completes continuing education requirements.
224-12         (b)  The commission may require an applicant under this
224-13   section to:
224-14               (1)  pay an additional fee, not to exceed $200; and
224-15               (2)  complete the required continuing education not
224-16   later than the 60th day after the date the license is issued,
224-17   renewed, or returned to active status. (V.A.C.S. Art. 6573a, Sec.
224-18   7A(g).)
224-19           (Sections 1101.458-1101.500 reserved for expansion)
224-20                 SUBCHAPTER K.  CERTIFICATE REQUIREMENTS
224-21         Sec. 1101.501.  CERTIFICATE REQUIRED. A person may not sell,
224-22   buy, lease, or transfer an easement or right-of-way for another,
224-23   for compensation or with the expectation of receiving compensation,
224-24   for use in connection with telecommunication, utility, railroad, or
224-25   pipeline service unless the person:
224-26               (1)  holds a license issued under this chapter; or
224-27               (2)  holds a  certificate of registration issued under
 225-1   this subchapter.  (V.A.C.S. Art. 6573a, Secs. 4 (part), 9(b)
 225-2   (part), 9A(a).)
 225-3         Sec. 1101.502.  ELIGIBILITY REQUIREMENTS FOR CERTIFICATE. (a)
 225-4   To be eligible to receive a certificate of registration or a
 225-5   renewal certificate under this subchapter, a person must be:
 225-6               (1)  at least 18 years of age; and
 225-7               (2)  a citizen of the United States or a lawfully
 225-8   admitted alien.
 225-9         (b)  To be eligible to receive a certificate of registration
225-10   or a renewal certificate under this subchapter, a corporation,
225-11   limited liability company, partnership, limited liability
225-12   partnership, or other entity must designate as its agent one of its
225-13   officers, partners, or managers who is registered under this
225-14   subchapter. (V.A.C.S. Art. 6573a, Sec. 6(d).)
225-15         Sec. 1101.503.  ISSUANCE OF CERTIFICATE. (a)  The commission
225-16   shall issue a certificate of registration to an applicant who meets
225-17   the requirements for a certificate of registration.
225-18         (b)  The certificate remains in effect for the period
225-19   prescribed by the commission if the certificate holder complies
225-20   with this chapter and pays the appropriate renewal fees. (V.A.C.S.
225-21   Art. 6573a, Sec. 9(a) (part).)
225-22         Sec. 1101.504.  CERTIFICATE EXPIRATION. The duration,
225-23   expiration, and renewal of a certificate of registration are
225-24   subject to the same provisions as are applicable under Section
225-25   1101.451 to the duration, expiration, and renewal of a license.
225-26   (V.A.C.S. Art. 6573a, Secs. 9(c) (part), (d) (part).)
225-27         Sec. 1101.505.  DENIAL OF CERTIFICATE. The denial of a
 226-1   certificate of registration is subject to the same provisions as
 226-2   are applicable under Section 1101.364 to the denial of a license.
 226-3   (V.A.C.S. Art. 6573a, Secs. 10(a) (part), (b).)
 226-4         Sec. 1101.506.  CHANGE OF ADDRESS. Not later than the 10th
 226-5   day after the date a certificate holder moves its place of business
 226-6   from a previously designated address, the holder shall:
 226-7               (1)  notify the commission of the move; and
 226-8               (2)  obtain a new certificate of registration that
 226-9   reflects the address of the new place of business. (V.A.C.S.
226-10   Art. 6573a, Sec. 12(e) (part).)
226-11         Sec. 1101.507.  DISPLAY OF CERTIFICATE. A certificate holder
226-12   shall prominently display at all times the holder's certificate of
226-13   registration in the holder's place of business. (V.A.C.S.
226-14   Art. 6573a, Sec. 12(e) (part).)
226-15           (Sections 1101.508-1101.550 reserved for expansion)
226-16                SUBCHAPTER L.  PRACTICE BY LICENSE HOLDER
226-17         Sec. 1101.551.  DEFINITIONS. In this subchapter:
226-18               (1)  "Intermediary" means a broker who is employed to
226-19   negotiate a transaction between the parties to a transaction and
226-20   for that purpose may act as an agent of the parties.
226-21               (2)  "Party" means a prospective buyer, seller,
226-22   landlord, or tenant or an authorized representative of a buyer,
226-23   seller, landlord, or tenant, including a trustee, guardian,
226-24   executor, administrator, receiver, or attorney-in-fact. The term
226-25   does not include a license holder who represents a party. (V.A.C.S.
226-26   Art. 6573a, Secs. 15C(m)(2) (part), (4).)
226-27         Sec. 1101.552.  FIXED OFFICE REQUIRED; CHANGE OF ADDRESS;
 227-1   BRANCH OFFICES. (a)  A resident broker shall maintain a fixed
 227-2   office in this state.  The address of the office shall be
 227-3   designated on the broker's license.
 227-4         (b)  Not later than the 10th day after the date a broker
 227-5   moves from the address designated on the broker's license, the
 227-6   broker shall submit an application, accompanied by the appropriate
 227-7   fee, for a license that designates the new location of the broker's
 227-8   office.  The commission shall issue a license that designates the
 227-9   new location if the new location complies with the requirements of
227-10   this section.
227-11         (c)  A broker who maintains more than one place of business
227-12   in this state shall obtain a branch office license for each
227-13   additional office maintained by the broker by submitting an
227-14   application, accompanied by the appropriate fee.
227-15         (d)  A nonresident licensed broker is not required to
227-16   maintain a place of business in this state.  (V.A.C.S. Art. 6573a,
227-17   Secs. 12(a), (b), 14(b) (part).)
227-18         Sec. 1101.553.  DISPLAY OF LICENSE. (a)  A broker shall
227-19   prominently display the broker's license or licenses at all times
227-20   in the broker's place or places of business.
227-21         (b)  A broker shall prominently display the license of each
227-22   salesperson associated with the broker in the broker's place of
227-23   business or in one of the broker's places of business.
227-24         (c)  A residential rental locator shall prominently display
227-25   in a place accessible to clients and prospective clients:
227-26               (1)  the locator's license;
227-27               (2)  a statement that the locator is licensed by the
 228-1   commission; and
 228-2               (3)  the name, mailing address, and telephone number of
 228-3   the commission as provided by Section 1101.202(a). (V.A.C.S.
 228-4   Art. 6573a, Secs. 12(c), (d), 24(d).)
 228-5         Sec. 1101.554.  CUSTODY OF SALESPERSON LICENSE. (a)  The
 228-6   commission shall deliver or mail each salesperson license to the
 228-7   broker with whom the salesperson is associated.
 228-8         (b)  The broker shall keep the license under the broker's
 228-9   custody and control. (V.A.C.S. Art. 6573a, Sec. 9(a) (part).)
228-10         Sec. 1101.555.  NOTICE TO BUYER REGARDING ABSTRACT OR TITLE
228-11   POLICY. When an offer to purchase real estate in this state is
228-12   signed, a license holder shall advise each buyer, in writing, that
228-13   the buyer should:
228-14               (1)  have the abstract covering the real estate that is
228-15   the subject of the contract examined by an attorney chosen by the
228-16   buyer; or
228-17               (2)  be provided with or obtain a title insurance
228-18   policy. (V.A.C.S. Art. 6573a, Sec. 20(c) (part).)
228-19         Sec. 1101.556.  DISCLOSURE OF CERTAIN INFORMATION RELATING TO
228-20   OCCUPANTS. Notwithstanding other law, a license holder is not
228-21   required to inquire about, disclose, or release information
228-22   relating to whether:
228-23               (1)  a previous or current occupant of real property
228-24   had, may have had, has, or may have AIDS, an HIV-related illness,
228-25   or an HIV infection as defined by the Centers for Disease Control
228-26   and Prevention of the United States Public Health Service; or
228-27               (2)  a death occurred on a property by natural causes,
 229-1   suicide, or accident unrelated to the condition of the property.
 229-2   (V.A.C.S. Art. 6573a, Sec. 15E.)
 229-3         Sec. 1101.557.  ACTING AS AGENT. A license holder who
 229-4   represents a party in a real estate transaction acts as that
 229-5   party's agent.  (V.A.C.S. Art. 6573a, Sec. 15C(c).)
 229-6         Sec. 1101.558.  REPRESENTATION DISCLOSURE. (a)  In this
 229-7   section, "face-to-face meeting" means a meeting at which a
 229-8   substantive discussion occurs relating to specific real property.
 229-9   The term does not include a meeting that occurs:
229-10               (1)  at a property that is held open for any
229-11   prospective buyer or tenant; or
229-12               (2)  after the parties to a real estate transaction
229-13   have signed a contract to sell, buy, or lease the real property
229-14   concerned.
229-15         (b)  A license holder who represents a party in a proposed
229-16   real estate transaction shall disclose, orally or in writing, that
229-17   representation at the time of the license holder's first contact
229-18   with:
229-19               (1)  another party to the transaction; or
229-20               (2)  another license holder who represents another
229-21   party to the transaction.
229-22         (c)  A license holder shall provide to a party to a real
229-23   estate transaction at the time of the first face-to-face meeting
229-24   with the party the written statement prescribed by Subsection (d)
229-25   unless:
229-26               (1)  the proposed transaction is for a residential
229-27   lease for not more than one year and a sale is not being
 230-1   considered; or
 230-2               (2)  the license holder meets with a party who is
 230-3   represented by another license holder.
 230-4         (d)  The written statement required by Subsection (c) must be
 230-5   printed in a format that uses at least 10-point type and read as
 230-6   follows:
 230-7         "Before working with a real estate broker, you should
 230-8         know that the duties of a broker depend on whom the
 230-9         broker represents.  If you are a prospective seller or
230-10         landlord (owner) or a prospective buyer or tenant
230-11         (buyer), you should know that the broker who lists the
230-12         property for sale or lease is the owner's agent.  A
230-13         broker who acts as a subagent represents the owner in
230-14         cooperation with the listing broker. A broker who acts
230-15         as a buyer's agent represents the buyer.  A broker may
230-16         act as an intermediary between the parties if the
230-17         parties consent in writing.  A broker can assist you in
230-18         locating a property, preparing a contract or lease, or
230-19         obtaining financing without representing you.  A broker
230-20         is obligated by law to treat you honestly.
230-21         "IF THE BROKER REPRESENTS THE OWNER:  The broker
230-22         becomes the owner's agent by entering into an agreement
230-23         with the owner, usually through a written listing
230-24         agreement, or by agreeing to act as a subagent by
230-25         accepting an offer of subagency from the listing
230-26         broker.  A subagent may work in a different real estate
230-27         office.  A listing broker or subagent can assist the
 231-1         buyer but does not represent the buyer and must place
 231-2         the interests of the owner first.  The buyer should not
 231-3         tell the owner's agent anything the buyer would not
 231-4         want the owner to know because an owner's agent must
 231-5         disclose to the owner any material information known to
 231-6         the agent.
 231-7         "IF THE BROKER REPRESENTS THE BUYER:  The broker
 231-8         becomes the buyer's agent by entering into an agreement
 231-9         to represent the buyer, usually through a written buyer
231-10         representation agreement.  A buyer's agent can assist
231-11         the owner but does not represent the owner and must
231-12         place the interests of the buyer first.  The owner
231-13         should not tell a buyer's agent anything the owner
231-14         would not want the buyer to know because a buyer's
231-15         agent must disclose to the buyer any material
231-16         information known to the agent.
231-17         "IF THE BROKER ACTS AS AN INTERMEDIARY:  A broker may
231-18         act as an intermediary between the parties if the
231-19         broker complies with The Texas Real Estate License Act.
231-20         The broker must obtain the written consent of each
231-21         party to the transaction to act as an intermediary.
231-22         The written consent must state who will pay the broker
231-23         and, in conspicuous bold or underlined print, set forth
231-24         the broker's obligations as an intermediary.  The
231-25         broker is required to treat each party honestly and
231-26         fairly and to comply with The Texas Real Estate License
231-27         Act.  A broker who acts as an intermediary in a
 232-1         transaction:  (1) shall treat all parties honestly;
 232-2         (2) may not disclose that the owner will accept a price
 232-3         less than the asking price unless authorized in writing
 232-4         to do so by the owner;  (3) may not disclose that the
 232-5         buyer will pay a price greater than the price submitted
 232-6         in a written offer unless authorized in writing to do
 232-7         so by the buyer; and (4) may not disclose any
 232-8         confidential information or any information that a
 232-9         party specifically instructs the broker in writing not
232-10         to disclose unless authorized in writing to disclose
232-11         the information or required to do so by The Texas Real
232-12         Estate License Act or a court order or if the
232-13         information materially relates to the condition of the
232-14         property.  With the parties' consent, a broker acting
232-15         as an intermediary between the parties may appoint a
232-16         person who is licensed under The Texas Real Estate
232-17         License Act and associated with the broker to
232-18         communicate with and carry out instructions of one
232-19         party and another person who is licensed under that Act
232-20         and associated with the broker to communicate with and
232-21         carry out instructions of the other party.
232-22         "If you choose to have a broker represent you, you
232-23         should enter into a written agreement with the broker
232-24         that clearly establishes the broker's obligations and
232-25         your obligations.  The agreement should state how and
232-26         by whom the broker will be paid.  You have the right to
232-27         choose the type of representation, if any, you wish to
 233-1         receive.  Your payment of a fee to a broker does not
 233-2         necessarily establish that the broker represents you.
 233-3         If you have any questions regarding the duties and
 233-4         responsibilities of the broker, you should resolve
 233-5         those questions before proceeding."
 233-6         (e)  The license holder may substitute "buyer" for "tenant"
 233-7   and "seller" for "landlord" as appropriate in the written statement
 233-8   prescribed by Subsection (d). (V.A.C.S. Art. 6573a, Secs. 15C(a),
 233-9   (b), (d), (e), (f), (g), (m)(1).)
233-10         Sec. 1101.559.  BROKER ACTING AS INTERMEDIARY. (a)  A broker
233-11   may act as an intermediary between parties to a real estate
233-12   transaction if:
233-13               (1)  the broker obtains written consent from each party
233-14   for the broker to act as an intermediary in the transaction; and
233-15               (2)  the written consent of the parties states the
233-16   source of any expected compensation to the broker.
233-17         (b)  A written listing agreement to represent a seller or
233-18   landlord or a written agreement to represent a buyer or tenant that
233-19   authorizes a broker to act as an intermediary in a real estate
233-20   transaction is sufficient to establish written consent of the party
233-21   to the transaction if the written agreement specifies in
233-22   conspicuous bold or underlined print the conduct that is prohibited
233-23   under Section 1101.651(d).
233-24         (c)  An intermediary shall act fairly and impartially.
233-25   Appointment by a broker acting as an intermediary of an associated
233-26   license holder under Section 1101.560 to communicate with, carry
233-27   out the instructions of, and provide opinions and advice to the
 234-1   parties to whom that associated license holder is appointed is a
 234-2   fair and impartial act.  (V.A.C.S. Art. 6573a, Secs. 15C(h), (i),
 234-3   (m)(2) (part).)
 234-4         Sec. 1101.560.  ASSOCIATED LICENSE HOLDER ACTING AS
 234-5   INTERMEDIARY. (a)  A broker who complies with the written consent
 234-6   requirements of Section 1101.559 may appoint:
 234-7               (1)  a license holder associated with the broker to
 234-8   communicate with and carry out instructions of one party to a real
 234-9   estate transaction; and
234-10               (2)  another license holder associated with the broker
234-11   to communicate with and carry out instructions of any other party
234-12   to the transaction.
234-13         (b)  A license holder  may be appointed under this section
234-14   only if:
234-15               (1)  the written consent of the parties under Section
234-16   1101.559 authorizes the broker to make the appointment; and
234-17               (2)  the broker provides written notice of the
234-18   appointment to all parties involved in the real estate transaction.
234-19         (c)  A license holder appointed under this section may
234-20   provide opinions and advice during negotiations to the party to
234-21   whom the license holder is appointed. (V.A.C.S. Art. 6573a, Sec.
234-22   15C(k) (part).)
234-23         Sec. 1101.561.  DUTIES OF INTERMEDIARY PREVAIL. The duties of
234-24   a license holder acting as an intermediary under this subchapter
234-25   supersede the duties of a license holder established under any
234-26   other law, including common law. (V.A.C.S. Art. 6573a, Sec.
234-27   15C(l).)
 235-1           (Sections 1101.562-1101.600 reserved for expansion)
 235-2            SUBCHAPTER M.  REAL ESTATE RECOVERY TRUST ACCOUNT
 235-3         Sec. 1101.601.  REAL ESTATE RECOVERY TRUST ACCOUNT. (a)  The
 235-4   commission shall maintain a real estate recovery trust account to
 235-5   reimburse aggrieved persons who suffer actual damages caused by an
 235-6   act described by Section 1101.602 committed by:
 235-7               (1)  a license holder;
 235-8               (2)  a certificate holder; or
 235-9               (3)  a person who does not hold a license or
235-10   certificate and who is an employee or agent of a license or
235-11   certificate holder.
235-12         (b)  The license or certificate holder must have held the
235-13   license or certificate at the time the act was committed.
235-14   (V.A.C.S. Art. 6573a, Sec. 8(a) (part).)
235-15         Sec. 1101.602.  ENTITLEMENT TO REIMBURSEMENT. An aggrieved
235-16   person is entitled to reimbursement from the trust account if a
235-17   person described by Section 1101.601 engages in conduct described
235-18   by Section 1101.652(a)(3) or (b) or 1101.653(1), (2), (3), or (4).
235-19   (V.A.C.S. Art. 6573a, Sec. 8(a) (part).)
235-20         Sec. 1101.603.  PAYMENTS INTO TRUST ACCOUNT. (a)  In addition
235-21   to other fees required by this chapter, an applicant for an
235-22   original license must pay a fee of $10.
235-23         (b)  In addition to other fees required by this chapter, an
235-24   applicant for an original certificate of registration or renewal
235-25   certificate must pay a fee of $50.
235-26         (c)  The commission shall deposit to the credit of the trust
235-27   account:
 236-1               (1)  fees collected under Subsections (a) and (b); and
 236-2               (2)  an administrative penalty collected under
 236-3   Subchapter O.
 236-4         (d)  If the balance in the trust account on December 31 of a
 236-5   year is less than $1 million, each license holder at the next
 236-6   license renewal must pay, in addition to the renewal fee, a fee
 236-7   that is equal to the lesser of $10 or a pro rata share of the
 236-8   amount necessary to obtain a balance in the trust account of $1.7
 236-9   million. The commission shall deposit the additional fee to the
236-10   credit of the trust account. (V.A.C.S. Art. 6573a, Secs. 8(b), (c)
236-11   (part), 11 (part), 19A(o) (part).)
236-12         Sec. 1101.604.  MANAGEMENT OF TRUST ACCOUNT. (a)  The
236-13   commission shall hold money credited to the trust account in trust
236-14   to carry out the purpose of the trust account.
236-15         (b)  Money credited to the trust account may be invested in
236-16   the same manner as money of the Employees Retirement System of
236-17   Texas, except that an investment may not be made that would impair
236-18   the liquidity necessary to make payments from the trust account as
236-19   required by this subchapter.
236-20         (c)  Interest from the investments shall be deposited to the
236-21   credit of the trust account.
236-22         (d)  If the balance in the trust account on December 31 of a
236-23   year is more than the greater of $3.5 million or the total amount
236-24   of claims paid from the trust account during the preceding four
236-25   fiscal years, the commission shall transfer the excess amount of
236-26   money in the trust account to the credit of the general revenue
236-27   fund. (V.A.C.S. Art. 6573a, Secs. 8(c) (part), (j).)
 237-1         Sec. 1101.605.  DEADLINE FOR ACTION; NOTICE TO COMMISSION.
 237-2   (a) An action for a judgment that may result in an order for
 237-3   payment from the trust account may not be brought after the second
 237-4   anniversary of the date the cause of action accrues.
 237-5         (b)  When an aggrieved person brings an action for a judgment
 237-6   that may result in an order for payment from the trust account, the
 237-7   license or certificate holder against whom the action is brought
 237-8   shall notify the commission in writing of the action. (V.A.C.S.
 237-9   Art. 6573a, Sec. 8(d).)
237-10         Sec. 1101.606.  CLAIM FOR PAYMENT FROM TRUST ACCOUNT. (a)  An
237-11   aggrieved person who obtains a court judgment against a license or
237-12   certificate holder for an act described by Section 1101.602 may,
237-13   after final judgment is entered, execution returned nulla bona, and
237-14   a judgment lien perfected, file a verified claim in the court that
237-15   entered the judgment.
237-16         (b)  After the 20th day after the date the aggrieved person
237-17   gives written notice of the claim to the commission and judgment
237-18   debtor, the person may apply to the court that entered the judgment
237-19   for an order for payment from the trust account of the amount
237-20   unpaid on the judgment.  The court shall proceed promptly on the
237-21   application.  (V.A.C.S. Art. 6573a, Secs. 8(e), (f) (part).)
237-22         Sec. 1101.607.  ISSUES AT HEARING. At the hearing on the
237-23   application for payment from the trust account, the aggrieved
237-24   person must show:
237-25               (1)  that the judgment is based on facts allowing
237-26   recovery under this subchapter;
237-27               (2)  that the person is not:
 238-1                     (A)  the spouse of the judgment debtor or the
 238-2   personal representative of the spouse; or
 238-3                     (B)  a license or certificate holder who is
 238-4   seeking to recover compensation, including a commission, in the
 238-5   real estate transaction that is the subject of the application for
 238-6   payment;
 238-7               (3)  that the person has obtained a judgment described
 238-8   by Section 1101.606 that is not subject to a stay or discharge in
 238-9   bankruptcy;
238-10               (4)  the amount of the judgment and the amount owing on
238-11   the judgment on the date of the application;
238-12               (5)  that, according to the best information available,
238-13   the judgment debtor does not have sufficient attachable assets in
238-14   this or another state to satisfy the judgment;
238-15               (6)  the amount that may be realized from the sale of
238-16   assets liable to be sold or applied to satisfy the judgment; and
238-17               (7)  the balance remaining due on the judgment after
238-18   application of the amount under Subdivision (6). (V.A.C.S.
238-19   Art. 6573a, Sec. 8(f) (part).)
238-20         Sec. 1101.608.  COMMISSION RESPONSE. (a)  On receipt of
238-21   notice under Section 1101.606 and the scheduling of a hearing, the
238-22   commission may notify the attorney general of the commission's
238-23   desire to enter an appearance, file a response, appear at the
238-24   hearing, defend the action, or take any other action the commission
238-25   considers appropriate.
238-26         (b)  The commission and the attorney general may act under
238-27   Subsection (a) only to:
 239-1               (1)  protect the trust account from spurious or unjust
 239-2   claims; or
 239-3               (2)  ensure compliance with the requirements for
 239-4   recovery under this subchapter.
 239-5         (c)  The commission may relitigate in the hearing any
 239-6   material and relevant issue that was determined in the action that
 239-7   resulted in the judgment in favor of the aggrieved person.
 239-8   (V.A.C.S. Art. 6573a, Secs. 8(h) (part), (k).)
 239-9         Sec. 1101.609.  COURT ORDER FOR PAYMENT. The court shall
239-10   order the commission to pay from the trust account the amount the
239-11   court finds payable on the claim under this subchapter if at a
239-12   hearing the court is satisfied:
239-13               (1)  of the truth of each matter the aggrieved person
239-14   is required by Section 1101.607 to show; and
239-15               (2)  that the aggrieved person has satisfied each
239-16   requirement of Sections 1101.606 and 1101.607. (V.A.C.S.
239-17   Art. 6573a, Secs. 8(a) (part), (h) (part).)
239-18         Sec. 1101.610.  PAYMENT LIMITS; ATTORNEY'S FEES. (a)
239-19   Payments from the trust account for claims, including attorney's
239-20   fees, interest, and court costs, arising out of a single
239-21   transaction may not exceed a total of $50,000, regardless of the
239-22   number of claimants.
239-23         (b)  Payments from the trust account for claims based on
239-24   judgments against a single license or certificate holder may not
239-25   exceed a total of $100,000 until the license or certificate holder
239-26   has reimbursed the trust account for all amounts paid.
239-27         (c)  If the court finds that the total amount of claims
 240-1   against a license or certificate holder exceeds the limitations in
 240-2   this section, the court shall proportionately reduce the amount
 240-3   payable on each claim.
 240-4         (d)  A person receiving payment from the trust account is
 240-5   entitled to receive reasonable attorney's fees in the amount
 240-6   determined by the court, subject to the limitations prescribed by
 240-7   this section.  (V.A.C.S. Art. 6573a, Secs. 8(h) (part), (n), (p).) 
 240-8         Sec. 1101.611.  APPLICATION OF JUDGMENT RECOVERY. An
 240-9   aggrieved person who receives a recovery on a judgment against a
240-10   single defendant before receiving a payment from the trust account
240-11   must apply the recovery first to actual damages. (V.A.C.S.
240-12   Art. 6573a, Sec. 8(g).)
240-13         Sec. 1101.612.  SUBROGATION. (a)  The commission is
240-14   subrogated to all rights of a judgment creditor to the extent of an
240-15   amount paid from the trust account, and the judgment creditor shall
240-16   assign to the commission all right, title, and interest in the
240-17   judgment up to that amount.
240-18         (b)  The commission has priority for repayment from any
240-19   subsequent recovery on the judgment.
240-20         (c)  The commission shall deposit any amount recovered on the
240-21   judgment to the credit of the trust account.  (V.A.C.S. Art. 6573a,
240-22   Sec. 8(l).)
240-23         Sec. 1101.613.  EFFECT ON DISCIPLINARY PROCEEDINGS. (a)  This
240-24   subchapter does not limit the commission's authority to take
240-25   disciplinary action against a license or certificate holder for a
240-26   violation of this chapter or a commission rule.
240-27         (b)  A license or certificate holder's repayment of all
 241-1   amounts owed to the trust account does not affect another
 241-2   disciplinary proceeding brought under this chapter.  (V.A.C.S.
 241-3   Art. 6573a, Sec. 8(o).)
 241-4         Sec. 1101.614.  WAIVER OF RIGHTS. An aggrieved person who
 241-5   does not comply with this subchapter waives the person's rights
 241-6   under this subchapter. (V.A.C.S. Art. 6573a, Sec. 8(m).)
 241-7         Sec. 1101.615.  NOTICE TO CONSUMERS AND SERVICE RECIPIENTS.
 241-8   (a)  Each license and certificate holder shall provide notice to
 241-9   consumers and service recipients of the availability of payment
241-10   from the trust account for aggrieved persons:
241-11               (1)  in conjunction with the notice required by Section
241-12   1101.202;
241-13               (2)  on a written contract for the license or
241-14   certificate holder's services;
241-15               (3)  on a brochure that the license or certificate
241-16   holder distributes;
241-17               (4)  on a sign prominently displayed in the license or
241-18   certificate holder's place of business; or
241-19               (5)  in a bill or receipt for the license or
241-20   certificate holder's services.
241-21         (b)  The notice must include:
241-22               (1)  the commission's name, mailing address, and
241-23   telephone number; and
241-24               (2)  any other information required by commission rule.
241-25   (V.A.C.S. Art. 6573a, Sec. 8(q).)
241-26           (Sections 1101.616-1101.650 reserved for expansion)
241-27    SUBCHAPTER N.  PROHIBITED PRACTICES AND DISCIPLINARY PROCEEDINGS
 242-1         Sec. 1101.651.  CERTAIN PRACTICES PROHIBITED. (a)  A licensed
 242-2   broker may not pay a commission to or otherwise compensate a person
 242-3   directly or indirectly for performing an act of a broker unless the
 242-4   person is:
 242-5               (1)  a license holder; or
 242-6               (2)  a real estate broker licensed in another state who
 242-7   does not conduct in this state any of the negotiations for which
 242-8   the commission or other compensation is paid.
 242-9         (b)  A salesperson may not accept compensation for a real
242-10   estate transaction from a person other than the broker with whom
242-11   the salesperson is associated or was associated when the
242-12   salesperson earned the compensation.
242-13         (c)  A salesperson may not pay a commission to a person
242-14   except through the broker with whom the salesperson is associated
242-15   at that time.
242-16         (d)  A broker and any broker or salesperson appointed under
242-17   Section 1101.560 who acts as an intermediary under Subchapter L may
242-18   not:
242-19               (1)  disclose to the buyer or tenant that the seller or
242-20   landlord will accept a price less than the asking price, unless
242-21   otherwise instructed in a separate writing by the seller or
242-22   landlord;
242-23               (2)  disclose to the seller or landlord that the buyer
242-24   or tenant will pay a price greater than the price submitted in a
242-25   written offer to the seller or landlord, unless otherwise
242-26   instructed in a separate writing by the buyer or tenant;
242-27               (3)  disclose any confidential information or any
 243-1   information a party specifically instructs the broker or
 243-2   salesperson in writing not to disclose, unless:
 243-3                     (A)  the broker or salesperson is otherwise
 243-4   instructed in a separate writing by the respective party;
 243-5                     (B)  the broker or salesperson is  required to
 243-6   disclose the information by this chapter or a court order; or
 243-7                     (C)  the information materially relates to the
 243-8   condition of the property;
 243-9               (4)  treat a party to a transaction dishonestly; or
243-10               (5)  violate this chapter.  (V.A.C.S. Art. 6573a, Secs.
243-11   1(d), (e), 14(a), 15C(j), (k) (part).)
243-12         Sec. 1101.652.  GROUNDS FOR SUSPENSION OR REVOCATION OF
243-13   LICENSE. (a)  The commission may suspend or revoke a license issued
243-14   under this chapter if the license holder:
243-15               (1)  enters a plea of guilty or nolo contendere to or
243-16   is convicted of a felony in which fraud is an essential element,
243-17   and the time for appeal has elapsed or the judgment or conviction
243-18   has been affirmed on appeal, without regard to an order granting
243-19   community supervision that suspends the imposition of the sentence;
243-20               (2)  procures or attempts to procure a license under
243-21   this chapter for the license holder or a salesperson by fraud,
243-22   misrepresentation, or deceit or by making a material misstatement
243-23   of fact in an application for a license;
243-24               (3)  engages in misrepresentation, dishonesty, or fraud
243-25   when selling, buying, trading, or leasing real property in the
243-26   license holder's own name;
243-27               (4)  fails to honor, within a reasonable time, a check
 244-1   issued to the commission after the commission has sent by certified
 244-2   mail a request for payment to the license holder's last known
 244-3   business address according to commission records;
 244-4               (5)  fails or refuses to produce on request, for
 244-5   inspection by the commission or a commission representative, a
 244-6   document, book, or record that is in the license holder's
 244-7   possession and relates to a real estate transaction conducted by
 244-8   the license holder;
 244-9               (6)  fails to provide, within a reasonable time,
244-10   information requested by the commission that relates to a formal or
244-11   informal complaint to the commission that would indicate a
244-12   violation of this chapter;
244-13               (7)  fails to surrender to the owner, without just
244-14   cause, a document or instrument that is requested by the owner and
244-15   that is in the license holder's possession;
244-16               (8)  fails to use a contract form required by the
244-17   commission under Section 1101.155; or
244-18               (9)  disregards or violates this chapter.
244-19         (b)  The commission may suspend or revoke a license issued
244-20   under this chapter if the license holder, while acting as a broker
244-21   or salesperson:
244-22               (1)  acts negligently or incompetently;
244-23               (2)  engages in conduct that is dishonest or in bad
244-24   faith or that demonstrates untrustworthiness;
244-25               (3)  makes a material misrepresentation to a potential
244-26   buyer concerning a significant defect, including a latent
244-27   structural defect, known to the license holder that would be a
 245-1   significant factor to a reasonable and prudent buyer in making a
 245-2   decision to purchase real property;
 245-3               (4)  fails to disclose to a potential buyer a defect
 245-4   described by Subdivision (3) that is known to the license holder;
 245-5               (5)  makes a false promise that is likely to influence
 245-6   a person to enter into an agreement when the license holder is
 245-7   unable or does not intend to keep the promise;
 245-8               (6)  pursues a continued and flagrant course of
 245-9   misrepresentation or makes false promises through an agent or
245-10   salesperson, through advertising, or otherwise;
245-11               (7)  fails to make clear to all parties to a real
245-12   estate transaction the party for whom the license holder is acting;
245-13               (8)  receives compensation from more than one party to
245-14   a real estate transaction without the full knowledge and consent of
245-15   all parties to the transaction;
245-16               (9)  fails within a reasonable time to properly account
245-17   for or remit money that is received by the license holder and that
245-18   belongs to another person;
245-19               (10)  commingles money that belongs to another person
245-20   with the license holder's own money;
245-21               (11)  pays a commission or a fee to or divides a
245-22   commission or a fee with a person other than a license holder or a
245-23   real estate broker or salesperson licensed in another state for
245-24   compensation for services as a real estate agent;
245-25               (12)  fails to specify a definite termination date that
245-26   is not subject to prior notice in a contract, other than a contract
245-27   to perform property management services, in which the license
 246-1   holder agrees to perform services for which a license is required
 246-2   under this chapter;
 246-3               (13)  accepts, receives, or charges an undisclosed
 246-4   commission, rebate, or direct profit on an expenditure made for a
 246-5   principal;
 246-6               (14)  solicits, sells, or offers for sale real property
 246-7   by means of a lottery;
 246-8               (15)  solicits, sells, or offers for sale real property
 246-9   by means of a deceptive practice;
246-10               (16)  acts in a dual capacity as broker and undisclosed
246-11   principal in a real estate transaction;
246-12               (17)  guarantees or authorizes or permits a person to
246-13   guarantee that future profits will result from a resale of real
246-14   property;
246-15               (18)  places a sign on real property offering the real
246-16   property for sale or lease without obtaining the written consent of
246-17   the owner of the real property or the owner's authorized agent;
246-18               (19)  offers to sell or lease real property without the
246-19   knowledge and consent of the owner of the real property or the
246-20   owner's authorized agent;
246-21               (20)  offers to sell or lease real property on terms
246-22   other than those authorized by the owner of the real property or
246-23   the owner's authorized agent;
246-24               (21)  induces or attempts to induce a party to a
246-25   contract of sale or lease to break the contract for the purpose of
246-26   substituting a new contract;
246-27               (22)  negotiates or attempts to negotiate the sale,
 247-1   exchange, or lease of real property with an owner, landlord, buyer,
 247-2   or tenant with knowledge that that person is a party to an
 247-3   outstanding written contract that grants exclusive agency to
 247-4   another broker in connection with the transaction;
 247-5               (23)  publishes or causes to be published an
 247-6   advertisement, including an advertisement by newspaper, radio,
 247-7   television, or display, that misleads or is likely to deceive the
 247-8   public, tends to create a misleading impression, or fails to
 247-9   identify the person causing the advertisement to be published as a
247-10   licensed broker or agent;
247-11               (24)  withholds from or inserts into a statement of
247-12   account or invoice a statement that the license holder knows makes
247-13   the statement of account or invoice inaccurate in a material way;
247-14               (25)  publishes or circulates an unjustified or
247-15   unwarranted threat of a legal proceeding or other action;
247-16               (26)  establishes an association by employment or
247-17   otherwise with a person other than a license holder if the person
247-18   is expected or required to act as a license holder;
247-19               (27)  aids, abets, or conspires with another person to
247-20   circumvent this chapter;
247-21               (28)  fails or refuses to provide, on request, a copy
247-22   of a document relating to a real estate transaction  to a person
247-23   who signed the document;
247-24               (29)  fails to advise a buyer in writing before the
247-25   closing of a real estate transaction that the buyer should:
247-26                     (A)  have the abstract covering the real estate
247-27   that is the subject of the contract examined by an attorney chosen
 248-1   by the buyer; or
 248-2                     (B)  be provided with or obtain a title insurance
 248-3   policy;
 248-4               (30)  fails to deposit, within a reasonable time, money
 248-5   the license holder receives as escrow agent in a real estate
 248-6   transaction:
 248-7                     (A)  in trust with a title company authorized to
 248-8   do business in this state; or
 248-9                     (B)  in a custodial, trust, or escrow account
248-10   maintained for that purpose in a banking institution authorized to
248-11   do business in this state;
248-12               (31)  disburses money deposited in a custodial, trust,
248-13   or escrow account, as provided in Subdivision (30), before the
248-14   completion or termination of the real estate transaction;
248-15               (32)  discriminates against an owner, potential buyer,
248-16   landlord, or potential tenant on the basis of race, color,
248-17   religion, sex, national origin, or ancestry, including directing a
248-18   prospective buyer or tenant interested in equivalent properties to
248-19   a different area based on the race, color, religion, sex, national
248-20   origin, or ancestry of the potential owner or tenant; or
248-21               (33)  disregards or violates this chapter. (V.A.C.S.
248-22   Art. 6573a, Secs. 15(a) (part), 16(e) (part).)
248-23         Sec. 1101.653.  GROUNDS FOR SUSPENSION OR REVOCATION OF
248-24   CERTIFICATE. The commission may suspend or revoke a certificate of
248-25   registration issued under this chapter if the certificate holder:
248-26               (1)  engages in dishonest dealing, fraud, unlawful
248-27   discrimination, or a deceptive act;
 249-1               (2)  makes a misrepresentation;
 249-2               (3)  acts in bad faith;
 249-3               (4)  demonstrates untrustworthiness;
 249-4               (5)  fails to honor, within a reasonable time, a check
 249-5   issued to the commission after the commission has mailed a request
 249-6   for payment to the certificate holder's last known address
 249-7   according to the commission's records;
 249-8               (6)  fails to provide to a party to a transaction a
 249-9   written notice prescribed by the commission that:
249-10                     (A)  must be given before the party is obligated
249-11   to sell, buy, lease, or transfer a right-of-way or easement; and
249-12                     (B)  contains:
249-13                           (i)  the name of the certificate holder;
249-14                           (ii)  the certificate number;
249-15                           (iii)  the name of the person the
249-16   certificate holder represents;
249-17                           (iv)  a statement advising the party that
249-18   the party may seek representation from a lawyer or broker in the
249-19   transaction; and
249-20                           (v)  a statement generally advising the
249-21   party that the right-of-way or easement may affect the value of the
249-22   property; or
249-23               (7)  disregards or violates this chapter or a
249-24   commission rule relating to certificate holders.  (V.A.C.S.
249-25   Art. 6573a, Sec. 9A(c) (part).)
249-26         Sec. 1101.654.  SUSPENSION OR REVOCATION OF LICENSE OR
249-27   CERTIFICATE FOR UNAUTHORIZED PRACTICE OF LAW.   (a)  The commission
 250-1   shall suspend or revoke the license or certificate of registration
 250-2   of a license or certificate holder who is not a licensed attorney
 250-3   in this state and who, for consideration, a reward, or a pecuniary
 250-4   benefit, present or anticipated, direct or indirect, or in
 250-5   connection with the person's employment, agency, or fiduciary
 250-6   relationship as a license or certificate holder:
 250-7               (1)  drafts an instrument, other than a form described
 250-8   by Section 1101.155, that transfers or otherwise affects an
 250-9   interest in real property; or
250-10               (2)  advises a person regarding the validity or legal
250-11   sufficiency of an instrument or the validity of title to real
250-12   property.
250-13         (b)  Notwithstanding any other law, a license or certificate
250-14   holder who completes a contract form for the sale, exchange,
250-15   option, or lease of an interest in real property incidental to
250-16   acting as a broker is not engaged in the unauthorized or illegal
250-17   practice of law in this state if the form was:
250-18               (1)  adopted by the commission for the type of
250-19   transaction for which the form is used;
250-20               (2)  prepared by an attorney licensed in this state and
250-21   approved by the attorney for the type of transaction for which the
250-22   form is used; or
250-23               (3)  prepared by the property owner or by an attorney
250-24   and required by the property owner.  (V.A.C.S. Art. 6573a, Secs.
250-25   16(a), (b).)
250-26         Sec. 1101.655.  REVOCATION OF LICENSE OR CERTIFICATE FOR
250-27   CLAIM ON ACCOUNT. (a)  The commission may revoke a license or
 251-1   certificate of registration issued under this chapter if the
 251-2   commission makes a payment from the real estate recovery trust
 251-3   account to satisfy all or part of a judgment against the license or
 251-4   certificate holder.
 251-5         (b)  The commission may probate an order revoking a license
 251-6   under this section.
 251-7         (c)  A person whose license or certificate is revoked under
 251-8   this section is not eligible for a new license or certificate until
 251-9   the person has repaid in full the amount paid from the account for
251-10   the person, plus interest at the legal rate.  (V.A.C.S. Art. 6573a,
251-11   Sec. 8(i).)
251-12         Sec. 1101.656.  ADDITIONAL DISCIPLINARY AUTHORITY OF
251-13   COMMISSION. (a)  In addition to any other authority under this
251-14   chapter, the commission may suspend or revoke a license, place on
251-15   probation a person whose license has been suspended, or reprimand a
251-16   license holder if the license holder violates this chapter or a
251-17   commission rule.
251-18         (b)  The commission may probate a suspension, revocation, or
251-19   cancellation of a license under reasonable terms determined by the
251-20   commission.
251-21         (c)  The commission may require a license holder whose
251-22   license suspension or revocation is probated to:
251-23               (1)  report regularly to the commission on matters that
251-24   are the basis of the probation;
251-25               (2)  limit practice to an area prescribed by the
251-26   commission; or
251-27               (3)  continue to renew professional education until the
 252-1   license holder attains a degree of skill satisfactory to the
 252-2   commission in the area that is the basis of the probation.
 252-3   (V.A.C.S. Art. 6573a, Secs. 15B(b), (c), (d).)
 252-4         Sec. 1101.657.  HEARING. (a)  If the commission proposes to
 252-5   suspend or revoke a person's license or certificate of
 252-6   registration, the person is entitled to a hearing before the
 252-7   commission or a hearings officer appointed by the commission.
 252-8         (b)  The commission shall adopt procedures by which all
 252-9   decisions to suspend or revoke a license or certificate are made by
252-10   or are appealable to the commission.
252-11         (c)  Except as provided by Subsection (d), the commission
252-12   shall prescribe the time and place of the hearing.
252-13         (d)  The hearing shall be held, if the license holder
252-14   requests, in the county in which the principal place of business of
252-15   the license holder is located, or, if the license holder is not a
252-16   resident, the hearing may be held in any county in this state.
252-17         (e)  A hearing under this section is governed by the
252-18   contested case procedures under Chapter 2001, Government Code.
252-19   (V.A.C.S. Art. 6573a, Sec. 17(a).)
252-20         Sec. 1101.658.  APPEAL. (a)  A person aggrieved by a ruling,
252-21   order, or decision of the commission is entitled to appeal to a
252-22   district court in the county in which the administrative hearing
252-23   was held.
252-24         (b)  An appeal is governed by the procedures under Chapter
252-25   2001, Government Code. (V.A.C.S. Art. 6573a, Sec. 18.)
252-26           (Sections 1101.659-1101.700 reserved for expansion)
252-27                  SUBCHAPTER O.  ADMINISTRATIVE PENALTY
 253-1         Sec. 1101.701.  IMPOSITION OF ADMINISTRATIVE PENALTY. The
 253-2   commission may impose an administrative penalty on a person
 253-3   licensed under this chapter who violates this chapter or a rule
 253-4   adopted or order issued by the commission under this chapter.
 253-5   (V.A.C.S. Art. 6573a, Sec. 19A(a).)
 253-6         Sec. 1101.702.  AMOUNT OF PENALTY. (a)  The amount of an
 253-7   administrative penalty may not exceed $1,000 for each violation.
 253-8         (b)  In determining the amount of the penalty, the
 253-9   administrator shall consider:
253-10               (1)  the seriousness of the violation, including the
253-11   nature, circumstances, extent, and gravity of the prohibited acts;
253-12               (2)  the history of previous violations;
253-13               (3)  the amount necessary to deter a future violation;
253-14               (4)  efforts to correct the violation; and
253-15               (5)  any other matter that justice may require.
253-16   (V.A.C.S. Art. 6573a, Secs. 19A(b), (c).)
253-17         Sec. 1101.703.  REPORT AND NOTICE OF VIOLATION AND PENALTY.
253-18   (a)  If, after investigation of a possible violation and the facts
253-19   relating to that violation, the administrator determines that a
253-20   violation has occurred, the administrator may issue a violation
253-21   report stating:
253-22               (1)  the facts on which the determination is based; and
253-23               (2)  the administrator's recommendation on the
253-24   imposition of the administrative penalty, including a
253-25   recommendation on the amount of the penalty.
253-26         (b)  Not later than the 14th day after the date the report is
253-27   issued, the administrator shall give written notice of the report
 254-1   to the person charged with the violation.  The notice must:
 254-2               (1)  include a brief summary of the charges;
 254-3               (2)  state the amount of the recommended penalty; and
 254-4               (3)  inform the person of the person's right to a
 254-5   hearing on the occurrence of the violation, the amount of the
 254-6   penalty, or both. (V.A.C.S. Art. 6573a, Secs. 19A(d) (part), (e).) 
 254-7         Sec. 1101.704.  PENALTY TO BE PAID OR HEARING REQUESTED. (a)
 254-8   Not later than the 20th day after the date the person receives the
 254-9   notice under Section 1101.703, the person may:
254-10               (1)  accept the administrator's determination,
254-11   including the recommended administrative penalty; or
254-12               (2)  request in writing a hearing on the determination.
254-13         (b)  If the person accepts the administrator's determination,
254-14   the commission by order shall approve the determination and order
254-15   payment of the recommended penalty. (V.A.C.S. Art. 6573a, Secs.
254-16   19A(f), (g).)
254-17         Sec. 1101.705.  HEARING; DECISION BY COMMISSION. (a)  If the
254-18   person requests a hearing or fails to timely respond to the notice,
254-19   the administrator shall set a hearing and give notice of the
254-20   hearing to the person.
254-21         (b)  A hearings examiner designated by the administrator
254-22   shall conduct the hearing. The hearings examiner shall:
254-23               (1)  make findings of fact and conclusions of law; and
254-24               (2)  promptly issue to the commission a proposal for
254-25   decision regarding the occurrence of the violation and the amount
254-26   of any proposed administrative penalty.
254-27         (c)  Based on the findings of fact, conclusions of law, and
 255-1   proposal for decision of the hearings examiner, the commission by
 255-2   order may determine that:
 255-3               (1)  a violation occurred and impose an administrative
 255-4   penalty; or
 255-5               (2)  a violation did not occur.
 255-6         (d)  A proceeding under this section is subject to Chapter
 255-7   2001, Government Code.  (V.A.C.S. Art. 6573a, Sec. 19A(h).)
 255-8         Sec. 1101.706.  NOTICE OF ORDER. The administrator shall give
 255-9   notice of the commission's order to the person.  The notice must:
255-10               (1)  include the findings of fact and conclusions of
255-11   law, separately stated;
255-12               (2)  state the amount of any penalty imposed;
255-13               (3)  inform the person of the person's right to
255-14   judicial review of the order; and
255-15               (4)  include other information required by law.
255-16   (V.A.C.S. Art. 6573a, Sec. 19A(i).)
255-17         Sec. 1101.707.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.
255-18   (a) Not later than the 30th day after the date the commission's
255-19   order becomes final, the person shall:
255-20               (1)  pay the administrative penalty; or
255-21               (2)  file a petition for judicial review with a
255-22   district court in Travis County contesting the fact of the
255-23   violation, the amount of the penalty, or both.
255-24         (b)  Within the 30-day period, a person who acts under
255-25   Subsection (a)(2) may stay enforcement of the penalty by:
255-26               (1)  paying the penalty to the administrator for
255-27   placement in an escrow account;
 256-1               (2)  giving the administrator a supersedeas bond in a
 256-2   form approved by the administrator that:
 256-3                     (A)  is for the amount of the penalty; and
 256-4                     (B)  is effective until judicial review of the
 256-5   order is final; or
 256-6               (3)  filing with the administrator an affidavit of the
 256-7   person stating that the person is financially unable to pay the
 256-8   penalty and is financially unable to give the supersedeas bond.
 256-9         (c)  A person who fails to take action as provided by this
256-10   section waives the right to judicial review of the commission's
256-11   order.  (V.A.C.S. Art. 6573a, Secs. 19A(j), (k), (l) (part), (m)
256-12   (part).)
256-13         Sec. 1101.708.  COLLECTION OF PENALTY. If the person does not
256-14   pay the administrative penalty  and the enforcement of the penalty
256-15   is not stayed, the administrator may refer the matter to the
256-16   attorney general for collection of the penalty. (V.A.C.S.
256-17   Art. 6573a, Sec. 19A(l) (part).)
256-18         Sec. 1101.709.  REMITTANCE OF PENALTY AND INTEREST. (a)  If
256-19   after judicial review the administrative penalty is reduced or is
256-20   not upheld by the court, the administrator shall:
256-21               (1)  remit the appropriate amount, plus accrued
256-22   interest, to the person if the person paid the penalty; or
256-23               (2)  execute a release of the bond if the person gave a
256-24   supersedeas bond.
256-25         (b)  Interest accrues under Subsection (a)(1) at the rate
256-26   charged on loans to depository institutions by the New York Federal
256-27   Reserve Bank.  The interest shall be paid for the period beginning
 257-1   on the date the penalty is paid and ending on the date the penalty
 257-2   is remitted. (V.A.C.S. Art. 6573a, Sec. 19A(n).)
 257-3           (Sections 1101.710-1101.750 reserved for expansion)
 257-4        SUBCHAPTER P.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
 257-5         Sec. 1101.751.  INJUNCTIVE ACTION BROUGHT BY COMMISSION. (a)
 257-6   In addition to any other action authorized by law, the commission
 257-7   may bring an action in its name to enjoin a violation of this
 257-8   chapter or a commission rule.
 257-9         (b)  To obtain an injunction under this section, the
257-10   commission is not required to allege or prove that:
257-11               (1)  an adequate remedy at law does not exist; or
257-12               (2)  substantial or irreparable damage would result
257-13   from the continued violation.  (V.A.C.S. Art. 6573a, Sec. 5(h)
257-14   (part).)
257-15         Sec. 1101.752.  ADDITIONAL INJUNCTIVE AUTHORITY. (a)  In
257-16   addition to any other action authorized by law, the commission,
257-17   acting through the attorney general, may bring an action to abate a
257-18   violation or enjoin a violation or potential violation of this
257-19   chapter or a commission rule if the commission determines that a
257-20   person has violated or is about to violate this chapter.
257-21         (b)  The action shall be brought in the name of the state in
257-22   the district court in the county in which:
257-23               (1)  the violation occurred or is about to occur; or
257-24               (2)  the defendant resides.
257-25         (c)  An injunctive action may be brought to abate or
257-26   temporarily or permanently enjoin an act or to enforce this
257-27   chapter.
 258-1         (d)  The commission is not required to give a bond in an
 258-2   action under Subsection (a), and court costs may not be recovered
 258-3   from the commission.
 258-4         (e)  If the commission determines that a person has violated
 258-5   or is about to violate this chapter, the attorney general or the
 258-6   county attorney or district attorney in the county in which the
 258-7   violation has occurred or is about to occur or in the county of the
 258-8   defendant's residence may bring an action in the name of the state
 258-9   in the district court of the county to abate or temporarily or
258-10   permanently enjoin the violation or to enforce this chapter.  The
258-11   plaintiff in an action under this subsection is not required to
258-12   give a bond, and court costs may not be recovered from the
258-13   plaintiff.   (V.A.C.S. Art. 6573a, Secs. 19(c), (d) (part).)
258-14         Sec. 1101.753.  CIVIL PENALTY FOR CERTAIN VIOLATIONS BY
258-15   BROKER, SALESPERSON, OR CERTIFICATE HOLDER. (a)  In addition to
258-16   injunctive relief under Sections 1101.751 and 1101.752, a person
258-17   who receives a commission or other consideration as a result of
258-18   acting as a broker or salesperson without holding a license or
258-19   certificate of registration under this chapter is liable to the
258-20   state for a civil penalty of not less than the amount of money
258-21   received or more than three times the amount of money received.
258-22         (b)  The commission may recover the civil penalty, court
258-23   costs, and reasonable attorney's fees on behalf of the state.
258-24         (c)  The commission is not required to give a bond in an
258-25   action under this section, and court costs may not be recovered
258-26   from the commission. (V.A.C.S. Art. 6573a, Sec. 19(d) (part).)
258-27         Sec. 1101.754.  PRIVATE CAUSE OF ACTION FOR CERTAIN
 259-1   VIOLATIONS BY BROKER, SALESPERSON, OR CERTIFICATE HOLDER. (a)  A
 259-2   person who receives a commission or other consideration as a result
 259-3   of acting as a broker or salesperson without holding a license or
 259-4   certificate of registration under this chapter is liable to an
 259-5   aggrieved person for a penalty of not less than the amount of money
 259-6   received or more than three times the amount of money received.
 259-7         (b)  The aggrieved person may file suit to recover a penalty
 259-8   under this section.  (V.A.C.S. Art. 6573a, Sec. 19(b).)
 259-9         Sec. 1101.755.  APPEAL BOND EXEMPTION. The commission is not
259-10   required to give an appeal bond in an action to enforce this
259-11   chapter.  (V.A.C.S. Art. 6573a, Sec. 5(h) (part).)
259-12         Sec. 1101.756.  GENERAL CRIMINAL PENALTY. (a)  A person
259-13   commits an offense if the person wilfully violates or fails to
259-14   comply with this chapter or a commission order.
259-15         (b)  An offense under this section is a Class A misdemeanor.
259-16   (V.A.C.S. Art. 6573a.1.)
259-17         Sec. 1101.757.  CRIMINAL PENALTY FOR CERTAIN VIOLATIONS BY
259-18   RESIDENTIAL RENTAL LOCATOR. (a)  A person commits an offense if the
259-19   person engages in business as a residential rental locator in this
259-20   state without a license issued under this chapter.
259-21         (b)  An offense under this section is a Class B misdemeanor.
259-22   (V.A.C.S. Art. 6573a, Sec. 24(f).)
259-23         Sec. 1101.758.  CRIMINAL PENALTY FOR CERTAIN VIOLATIONS BY
259-24   BROKER, SALESPERSON, OR CERTIFICATE HOLDER. (a)  A person commits
259-25   an offense if the person acts as a broker or salesperson without
259-26   holding a license under this chapter or engages in an activity for
259-27   which a certificate of registration is required under this chapter
 260-1   without holding a certificate.
 260-2         (b)  Except as provided by Subsection (c), (d), or (e), an
 260-3   offense under this section is a misdemeanor punishable by:
 260-4               (1)  a fine of not less than $100 or more than $500;
 260-5               (2)  confinement in the county jail for not more than
 260-6   one year; or
 260-7               (3)  both the fine and confinement.
 260-8         (c)  An offense under this section by a person other than an
 260-9   individual is punishable by a fine of not less than $1,000 or more
260-10   than $2,000.
260-11         (d)  A second or subsequent offense under this section by an
260-12   individual is punishable by:
260-13               (1)  a fine of not less than $500 or more than $1,000;
260-14               (2)  confinement for not more than two years; or
260-15               (3)  both the fine and confinement.
260-16         (e)  A second or subsequent offense under this section by a
260-17   person other than an individual is punishable by a fine of not less
260-18   than $2,000 or more than $5,000. (V.A.C.S. Art. 6573a, Sec. 19(a).)
260-19           (Sections 1101.759-1101.800 reserved for expansion)
260-20              SUBCHAPTER Q.  GENERAL PROVISIONS RELATING TO
260-21                            LIABILITY ISSUES
260-22         Sec. 1101.801.  EFFECT OF DISCIPLINARY ACTION ON LIABILITY.
260-23   Disciplinary action taken against a person under Section 1101.652
260-24   does not relieve the person from civil or criminal liability.
260-25   (V.A.C.S. Art.  6573a, Sec. 15(b).)
260-26         Sec. 1101.802.  LIABILITY RELATING TO HIV INFECTION OR AIDS.
260-27   Notwithstanding Section 1101.801, a person is not civilly or
 261-1   criminally liable because the person failed to inquire about, make
 261-2   a disclosure relating to, or release information relating to
 261-3   whether a previous or current occupant of real property had, may
 261-4   have had, has, or may have AIDS, an HIV-related illness, or HIV
 261-5   infection as defined by the Centers for Disease Control and
 261-6   Prevention of the United States Public Health Service. (V.A.C.S.
 261-7   Art. 6573a, Sec. 15(c).)
 261-8         Sec. 1101.803.  GENERAL LIABILITY OF BROKER. A licensed
 261-9   broker is liable to the commission, the public, and the broker's
261-10   clients for any conduct engaged in under this chapter by the broker
261-11   or by a salesperson associated with or acting for the broker.
261-12   (V.A.C.S. Art. 6573a, Sec. 1(c).)
261-13         Sec. 1101.804.  LIABILITY FOR PROVIDING CERTAIN INFORMATION.
261-14   A license holder or nonprofit real estate board or association that
261-15   provides information about real property sales prices or the terms
261-16   of a sale for the purpose of facilitating the listing, selling,
261-17   leasing, financing, or appraisal of real property is not liable to
261-18   another person for providing that information unless the disclosure
261-19   of that information is specifically prohibited by statute.
261-20   (V.A.C.S. Art. 6573a, Sec. 15D.)
261-21         Sec. 1101.805.  LIABILITY FOR MISREPRESENTATION OR
261-22   CONCEALMENT. (a)  In this section, "party" has the meaning assigned
261-23   by Section 1101.551.
261-24         (b)  This section prevails over any other law, including
261-25   common law.
261-26         (c)  This section does not diminish a broker's responsibility
261-27   for the acts or omissions of a salesperson associated with or
 262-1   acting for the broker.
 262-2         (d)  A party is not liable for a misrepresentation or a
 262-3   concealment of a material fact made by a license holder in a real
 262-4   estate transaction unless the party:
 262-5               (1)  knew of the falsity of the misrepresentation or
 262-6   concealment; and
 262-7               (2)  failed to disclose the party's knowledge of the
 262-8   falsity of the misrepresentation or concealment.
 262-9         (e)  A license holder is not liable for a misrepresentation
262-10   or a concealment of a material fact made by a party to a real
262-11   estate transaction unless the license holder:
262-12               (1)  knew of the falsity of the misrepresentation or
262-13   concealment; and
262-14               (2)  failed to disclose the license holder's knowledge
262-15   of the falsity of the misrepresentation or concealment.
262-16         (f)  A party or a license holder  is not liable for a
262-17   misrepresentation or a concealment of a material fact made by a
262-18   subagent in a real estate transaction unless the party or license
262-19   holder:
262-20               (1)  knew of the falsity of the misrepresentation or
262-21   concealment; and
262-22               (2)  failed to disclose the party's or license holder's
262-23   knowledge of the falsity of the misrepresentation or concealment.
262-24   (V.A.C.S. Art. 6573a, Sec. 15F.)
262-25         Sec. 1101.806.  LIABILITY FOR PAYMENT OF COMPENSATION OR
262-26   COMMISSION. (a)  This section does not:
262-27               (1)  apply to an agreement to share compensation among
 263-1   license holders; or
 263-2               (2)  limit a cause of action among brokers for
 263-3   interference with business relationships.
 263-4         (b)  A person may not maintain an action to collect
 263-5   compensation for an act as a broker or salesperson that is
 263-6   performed in this state unless the person alleges and proves that
 263-7   the person was:
 263-8               (1)  a license holder at the time the act was
 263-9   commenced; or
263-10               (2)  an attorney licensed in any state.
263-11         (c)  A person may not maintain an action in this state to
263-12   recover a commission for the sale or purchase of real estate unless
263-13   the promise or agreement on which the action is based, or a
263-14   memorandum, is in writing and signed by the party against whom the
263-15   action is brought or by a person authorized by that party to sign
263-16   the document.
263-17         (d)  A license holder who fails to advise a buyer as provided
263-18   by Section 1101.555 may not receive payment of or recover any
263-19   commission agreed to be paid on the sale. (V.A.C.S. Art. 6573a,
263-20   Secs. 20(a), (b), (c) (part), (d).)
263-21                  CHAPTER 1102.  REAL ESTATE INSPECTORS
263-22                    SUBCHAPTER A.  GENERAL PROVISIONS
263-23   Sec. 1102.001.  DEFINITIONS 
263-24   Sec. 1102.002.  APPLICABILITY OF CHAPTER 
263-25   Sec. 1102.003.  RULES; INSPECTION FORMS 
263-26           (Sections 1102.004-1102.050 reserved for expansion)
263-27          SUBCHAPTER B.  TEXAS REAL ESTATE INSPECTOR COMMITTEE
 264-1   Sec. 1102.051.  COMMITTEE MEMBERSHIP 
 264-2   Sec. 1102.052.  TERMS; VACANCY 
 264-3   Sec. 1102.053.  OFFICERS 
 264-4   Sec. 1102.054.  GROUNDS FOR REMOVAL 
 264-5   Sec. 1102.055.  PER DIEM; REIMBURSEMENT 
 264-6   Sec. 1102.056.  MEETINGS; QUORUM 
 264-7   Sec. 1102.057.  OPEN MEETINGS; OPEN RECORDS; ADMINISTRATIVE
 264-8                     PROCEDURE 
 264-9   Sec. 1102.058.  GENERAL POWERS AND DUTIES OF COMMITTEE;
264-10                     RECOMMENDATIONS 
264-11   Sec. 1102.059.  REVIEW OF COMMISSION RULES 
264-12   Sec. 1102.060.  CONSIDERATION OF COMMITTEE RECOMMENDATIONS 
264-13   Sec. 1102.061.  DELEGATION OF AUTHORITY IN CONTESTED CASES 
264-14   Sec. 1102.062.  PROCEDURAL RULES 
264-15           (Sections 1102.063-1102.100 reserved for expansion)
264-16                   SUBCHAPTER C.  LICENSE REQUIREMENTS
264-17   Sec. 1102.101.  APPRENTICE INSPECTOR LICENSE REQUIRED 
264-18   Sec. 1102.102.  REAL ESTATE INSPECTOR LICENSE REQUIRED 
264-19   Sec. 1102.103.  PROFESSIONAL INSPECTOR LICENSE REQUIRED 
264-20   Sec. 1102.104.  SUPERVISION 
264-21   Sec. 1102.105.  APPLICATION 
264-22   Sec. 1102.106.  MORAL CHARACTER DETERMINATION 
264-23   Sec. 1102.107.  ELIGIBILITY FOR APPRENTICE INSPECTOR
264-24                     LICENSE 
264-25   Sec. 1102.108.  ELIGIBILITY FOR REAL ESTATE INSPECTOR
264-26                     LICENSE 
264-27   Sec. 1102.109.  ELIGIBILITY FOR PROFESSIONAL INSPECTOR
 265-1                     LICENSE 
 265-2   Sec. 1102.110.  ELIGIBILITY OF PREVIOUS LICENSE HOLDERS 
 265-3   Sec. 1102.111.  SUBSTITUTE REQUIREMENTS 
 265-4   Sec. 1102.112.  WAIVER FOR APPLICANT LICENSED IN ANOTHER
 265-5                     STATE 
 265-6   Sec. 1102.113.  ELIGIBILITY AS SPONSOR 
 265-7   Sec. 1102.114.  ISSUANCE OF LICENSE 
 265-8   Sec. 1102.115.  DENIAL OF LICENSE 
 265-9   Sec. 1102.116.  PROBATIONARY LICENSE 
265-10   Sec. 1102.117.  INACTIVE LICENSE 
265-11   Sec. 1102.118.  CHANGE OF ADDRESS 
265-12           (Sections 1102.119-1102.150 reserved for expansion)
265-13                   SUBCHAPTER D.  LICENSE EXAMINATION
265-14   Sec. 1102.151.  CONTENT OF EXAMINATION 
265-15   Sec. 1102.152.  OFFERING OF EXAMINATION 
265-16   Sec. 1102.153.  DEADLINE FOR COMPLETION 
265-17   Sec. 1102.154.  EXAMINATION RESULTS 
265-18   Sec. 1102.155.  REEXAMINATION 
265-19           (Sections 1102.156-1102.200 reserved for expansion)
265-20                     SUBCHAPTER E.  LICENSE RENEWAL
265-21   Sec. 1102.201.  LICENSE EXPIRATION 
265-22   Sec. 1102.202.  NOTICE OF LICENSE EXPIRATION 
265-23   Sec. 1102.203.  RENEWAL OF CERTAIN LICENSES 
265-24   Sec. 1102.204.  RENEWAL OF EXPIRED LICENSE BY OUT-OF-STATE
265-25                     PRACTITIONER 
265-26   Sec. 1102.205.  CONTINUING EDUCATION REQUIREMENTS 
265-27           (Sections 1102.206-1102.250 reserved for expansion)
 266-1                       SUBCHAPTER F.  LICENSE FEES
 266-2   Sec. 1102.251.  AMOUNT OF FEES 
 266-3   Sec. 1102.252.  PAYMENT 
 266-4   Sec. 1102.253.  REVIEW OF FEE AMOUNTS 
 266-5           (Sections 1102.254-1102.300 reserved for expansion)
 266-6                     SUBCHAPTER G.  PROHIBITED ACTS
 266-7   Sec. 1102.301.  NEGLIGENCE OR INCOMPETENCE 
 266-8   Sec. 1102.302.  AGREEMENT FOR SPECIFIC REPORT; DISHONESTY 
 266-9   Sec. 1102.303.  ACTING IN CONFLICTING CAPACITIES 
266-10   Sec. 1102.304.  REPAIRS AND MAINTENANCE 
266-11   Sec. 1102.305.  VIOLATION OF LAW 
266-12           (Sections 1102.306-1102.350 reserved for expansion)
266-13           SUBCHAPTER H.  REAL ESTATE INSPECTION RECOVERY FUND
266-14   Sec. 1102.351.  REAL ESTATE INSPECTION RECOVERY FUND 
266-15   Sec. 1102.352.  PAYMENTS INTO FUND 
266-16   Sec. 1102.353.  MANAGEMENT OF FUND 
266-17   Sec. 1102.354.  DEADLINE FOR ACTION; NOTICE TO COMMISSION 
266-18   Sec. 1102.355.  CLAIM FOR PAYMENT FROM FUND 
266-19   Sec. 1102.356.  ISSUES AT HEARING 
266-20   Sec. 1102.357.  COMMISSION RESPONSE 
266-21   Sec. 1102.358.  COURT ORDER FOR PAYMENT 
266-22   Sec. 1102.359.  PAYMENT LIMITS; ATTORNEY'S FEES 
266-23   Sec. 1102.360.  APPLICATION OF JUDGMENT RECOVERY 
266-24   Sec. 1102.361.  SUBROGATION 
266-25   Sec. 1102.362.  EFFECT ON DISCIPLINARY PROCEEDINGS 
266-26   Sec. 1102.363.  WAIVER OF RIGHTS 
266-27   Sec. 1102.364.  NOTICE TO CONSUMERS AND SERVICE RECIPIENTS 
 267-1           (Sections 1102.365-1102.400 reserved for expansion)
 267-2           SUBCHAPTER I.  PENALTIES AND ENFORCEMENT PROVISIONS
 267-3   Sec. 1102.401.  DISCIPLINARY POWERS OF COMMISSION 
 267-4   Sec. 1102.402.  LICENSE REVOCATION FOR CLAIM ON FUND 
 267-5   Sec. 1102.403.  ADMINISTRATIVE PENALTY 
 267-6   Sec. 1102.404.  INJUNCTIVE RELIEF 
 267-7   Sec. 1102.405.  APPEAL BOND EXEMPTION 
 267-8   Sec. 1102.406.  GENERAL CRIMINAL PENALTY 
 267-9   Sec. 1102.407.  CRIMINAL PENALTY FOR PRACTICING WITHOUT
267-10                     LICENSE 
267-11                  CHAPTER 1102.  REAL ESTATE INSPECTORS
267-12                    SUBCHAPTER A.  GENERAL PROVISIONS
267-13         Sec. 1102.001.  DEFINITIONS.  In this chapter:
267-14               (1)  "Apprentice inspector" means a person who is in
267-15   training under the direct supervision of a professional inspector
267-16   or a real estate inspector to become qualified to perform real
267-17   estate inspections.
267-18               (2)  "Broker" has the meaning assigned by Section
267-19   1101.002.
267-20               (3)  "Commission" means the Texas Real Estate
267-21   Commission.
267-22               (4)  "Committee" means the Texas Real Estate Inspector
267-23   Committee.
267-24               (5)  "Core real estate inspection course" means an
267-25   educational course approved by the commission that relates to real
267-26   estate inspection, including a course on structural items,
267-27   electrical items, mechanical systems, plumbing systems, roofing,
 268-1   business, law, standards of practice, report writing, appliances,
 268-2   or ethics.
 268-3               (6)  "Inspector" means a person who holds a license
 268-4   under this chapter.
 268-5               (7)  "License" means an apprentice inspector license,
 268-6   real estate inspector license, or  professional inspector license. 
 268-7               (8)  "Professional inspector" means a person who
 268-8   represents to the public that the person is trained and qualified
 268-9   to perform a real estate inspection and who accepts employment to
268-10   perform a real estate inspection for a buyer or seller of real
268-11   property.
268-12               (9)  "Real estate inspection" means a written or oral
268-13   opinion as to the condition of the improvements to real property,
268-14   including structural items, electrical items, mechanical systems,
268-15   plumbing systems, or equipment.
268-16               (10)  "Real estate inspector" means a person who
268-17   represents to the public that the person is trained and qualified
268-18   to perform a real estate inspection under the indirect supervision
268-19   of a professional inspector and who accepts employment to perform a
268-20   real estate inspection for a buyer or seller of real property.
268-21               (11)  "Salesperson" has the meaning assigned by Section
268-22   1101.002. (V.A.C.S. Art. 6573a, Secs. 23(a)(1), (2), (3), (6), (7),
268-23   (9), (10), (11); New.)
268-24         Sec. 1102.002.  APPLICABILITY OF CHAPTER.  (a)  This chapter
268-25   does not apply to a person who repairs, maintains, or inspects
268-26   improvements to real property, including an electrician, plumber,
268-27   carpenter, or person in the business of structural pest control in
 269-1   compliance with Chapter 1951, if the person does not represent to
 269-2   the public through personal solicitation or public advertising that
 269-3   the person is in the business of inspecting those improvements.
 269-4         (b)  This chapter does not prevent a person from performing
 269-5   an act the person is authorized to perform under a license or
 269-6   registration issued by this state or a governmental subdivision of
 269-7   this state under a law other than this chapter.  (V.A.C.S.
 269-8   Art. 6573a, Sec.  23(n).)
 269-9         Sec. 1102.003.  RULES; INSPECTION FORMS.  The commission by
269-10   rule shall prescribe standard forms and require inspectors to use
269-11   the forms to reduce discrepancies and create consistency in
269-12   preparing reports of real estate inspections.  (V.A.C.S.
269-13   Art. 6573a, Sec. 23(r).)
269-14           (Sections 1102.004-1102.050 reserved for expansion)
269-15          SUBCHAPTER B.  TEXAS REAL ESTATE INSPECTOR COMMITTEE
269-16         Sec. 1102.051.  COMMITTEE MEMBERSHIP.  (a)  The Texas Real
269-17   Estate Inspector Committee consists of nine members appointed by
269-18   the commission.
269-19         (b)  A member of the committee must have been primarily
269-20   engaged in the practice of real estate inspecting for at least five
269-21   years before the member's appointment and must be actively engaged
269-22   in that practice as a professional inspector at the time of the
269-23   member's appointment.
269-24         (c)  Not more than three members of the committee may hold a
269-25   broker license.
269-26         (d)  Appointments to the committee shall be made without
269-27   regard to the sex, race, color, age, disability, religion, or
 270-1   national origin of the appointee.  (V.A.C.S. Art. 6573a, Secs.
 270-2   23(b)(1) (part), (2) (part).)
 270-3         Sec. 1102.052.  TERMS; VACANCY.  (a)  Members of the
 270-4   committee serve staggered six-year terms, with the terms of three
 270-5   members expiring on February 1 of each odd-numbered year.  A member
 270-6   holds office until the member's successor is appointed.
 270-7         (b)  If a vacancy occurs during a member's term, the
 270-8   commission shall appoint a replacement to fill the unexpired term. 
 270-9   (V.A.C.S. Art. 6573a, Sec. 23(b)(2) (part).)
270-10         Sec. 1102.053.  OFFICERS.  The committee shall annually elect
270-11   from its members a presiding officer, assistant presiding officer,
270-12   and secretary.  (V.A.C.S. Art. 6573a, Sec. 23(b)(2) (part).)
270-13         Sec. 1102.054.  GROUNDS FOR REMOVAL.  (a)  The commission may
270-14   remove a committee member if the member:
270-15               (1)  does not have at the time of appointment the
270-16   qualifications required by Section 1102.051;
270-17               (2)  cannot, because of illness or disability,
270-18   discharge the member's duties for a substantial part of the
270-19   member's term; or
270-20               (3)  is absent from more than half of the regularly
270-21   scheduled committee meetings that the member is eligible to attend
270-22   during each year unless the absence is excused by the committee.
270-23         (b)  The validity of an action of the committee is not
270-24   affected by the fact that it is taken when a ground for removal of
270-25   a committee member exists.
270-26         (c)  If the administrator of the commission has knowledge
270-27   that a potential ground for removal exists, the administrator shall
 271-1   notify the presiding officer of the commission that the potential
 271-2   ground exists.  (V.A.C.S. Art. 6573a, Secs. 23(b)(3), (4), (5).)
 271-3         Sec. 1102.055.  PER DIEM; REIMBURSEMENT.  Subject to any
 271-4   applicable limitation in the General Appropriations Act, a member
 271-5   of the committee is entitled to:
 271-6               (1)  a per diem allowance; and
 271-7               (2)  reimbursement of travel expenses necessarily
 271-8   incurred in performing committee functions. (V.A.C.S. Art. 6573a,
 271-9   Sec. 23(b)(2) (part).)
271-10         Sec. 1102.056.  MEETINGS; QUORUM. (a)  The committee shall
271-11   meet semiannually and at the call of the commission.  The committee
271-12   may meet at the call of a majority of its members.
271-13         (b)  A quorum of the committee is five members.  (V.A.C.S.
271-14   Art. 6573a, Secs. 23(b)(2) (part), (8).)
271-15         Sec. 1102.057.  OPEN MEETINGS; OPEN RECORDS; ADMINISTRATIVE
271-16   PROCEDURE.  The committee is subject to Chapters 551, 552, 2001,
271-17   and 2002, Government Code.  (V.A.C.S. Art. 6573a, Sec. 23(b)(7).)
271-18         Sec. 1102.058.  GENERAL POWERS AND DUTIES OF COMMITTEE;
271-19   RECOMMENDATIONS.  (a)  The committee has the powers and shall
271-20   perform the duties that the commission delegates to the committee. 
271-21         (b)  The committee shall recommend:
271-22               (1)  rules for licensing inspectors in this state,
271-23   including rules relating to:
271-24                     (A)  education and experience requirements;
271-25                     (B)  any qualifying examination;
271-26                     (C)  continuing education requirements; and
271-27                     (D)  granting or denying a license application;
 272-1               (2)  the form of any required application or other
 272-2   document;
 272-3               (3)  reasonable fees to implement this chapter,
 272-4   including application fees, examination fees, fees for renewal of a
 272-5   license, and any other fee required by law;
 272-6               (4)  rules relating to standards of practice for real
 272-7   estate inspection;
 272-8               (5)  rules establishing a code of professional conduct
 272-9   and ethics for an inspector; and
272-10               (6)  any other commission action to provide a high
272-11   degree of service to and protection of the public in dealing with
272-12   an inspector.  (V.A.C.S. Art. 6573a, Sec. 23(b)(1) (part).)
272-13         Sec. 1102.059.  REVIEW OF COMMISSION RULES.  (a)  The
272-14   committee in an advisory capacity shall develop and recommend to
272-15   the commission rules under this chapter.  The committee shall
272-16   review commission rules relating to this chapter and recommend to
272-17   the commission amendments to the rules.
272-18         (b)  The commission shall submit to the committee for
272-19   development or recommendation each proposed rule, proposed
272-20   amendment to a rule, and request for a proposed rule or proposed
272-21   amendment to a rule that relates to the regulation or licensing of
272-22   inspectors.
272-23         (c)  The commission may modify a rule developed by the
272-24   committee if the commission finds the modification to be in the
272-25   public interest.  This chapter does not prohibit the commission
272-26   from developing and adopting a rule relating to the regulation or
272-27   licensing of inspectors if the committee does not develop or
 273-1   recommend a rule within a reasonable time after the commission
 273-2   submits to the committee a proposed rule, amendment to a rule, or
 273-3   request for a proposed rule or amendment to a rule.
 273-4         (d)  If the committee determines that a rule that the
 273-5   commission requests should not be developed or recommended for
 273-6   adoption by the commission, the committee shall submit to the
 273-7   commission a report on the matter.  An ad hoc body shall be
 273-8   established to consider the report and recommend possible
 273-9   commission action.  The presiding officer of the commission shall
273-10   appoint four members of the commission to serve on the ad hoc body,
273-11   one of whom may be the presiding officer of the commission and at
273-12   least one of whom must be a public member of the commission.  The
273-13   presiding officer of the committee shall appoint three members of
273-14   the committee to serve on the ad hoc body.  (V.A.C.S. Art. 6573a,
273-15   Sec. 23(b)(9).)
273-16         Sec. 1102.060.  CONSIDERATION OF COMMITTEE RECOMMENDATIONS.
273-17   The commission shall consider the committee's recommendations
273-18   relating to qualifications and licensing of inspectors to assure
273-19   the public of a quality professional inspection system in real
273-20   estate transactions in this state.  (V.A.C.S. Art. 6573a, Sec.
273-21   23(q).)
273-22         Sec. 1102.061.  DELEGATION OF AUTHORITY IN CONTESTED CASES.
273-23   In contested cases regarding an inspector, the commission may:
273-24               (1)  authorize the committee to conduct administrative
273-25   hearings, recommend the entry of final orders, or both; and
273-26               (2)  authorize specific employees to conduct hearings
273-27   and render final decisions.  (V.A.C.S. Art. 6573a, Sec. 23(m)(3).) 
 274-1         Sec. 1102.062.  PROCEDURAL RULES.  The commission shall adopt
 274-2   procedural rules to be used by the committee in implementing its
 274-3   powers and duties.  (V.A.C.S. Art. 6573a, Sec. 23(b)(6).)
 274-4           (Sections 1102.063-1102.100 reserved for expansion)
 274-5                   SUBCHAPTER C.  LICENSE REQUIREMENTS
 274-6         Sec. 1102.101.  APPRENTICE INSPECTOR LICENSE REQUIRED.  A
 274-7   person may not act or attempt to act as an apprentice inspector in
 274-8   this state for a buyer or seller of real property unless the
 274-9   person:
274-10               (1)  holds an apprentice inspector license under this
274-11   chapter; and
274-12               (2)  is under the direct supervision of a real estate
274-13   inspector or professional inspector.  (V.A.C.S. Art. 6573a, Sec.
274-14   23(c)(3).)
274-15         Sec. 1102.102.  REAL ESTATE INSPECTOR LICENSE REQUIRED.  A
274-16   person may not act or attempt to act as a real estate inspector in
274-17   this state for a buyer or seller of real property unless the
274-18   person:
274-19               (1)  holds a real estate inspector license under this
274-20   chapter; and
274-21               (2)  is under the indirect supervision of a
274-22   professional inspector. (V.A.C.S. Art. 6573a, Sec. 23(c)(2).)
274-23         Sec. 1102.103.  PROFESSIONAL INSPECTOR LICENSE REQUIRED.  A
274-24   person may not act as a professional inspector in this state for a
274-25   buyer or seller of real property unless the person holds a
274-26   professional inspector license under this chapter.  (V.A.C.S.
274-27   Art. 6573a, Sec. 23(c)(1).)
 275-1         Sec. 1102.104.  SUPERVISION.  For the purposes of this
 275-2   chapter, a person performing a real estate inspection or preparing
 275-3   a report of a real estate inspection is under:
 275-4               (1)  direct supervision if the person is instructed and
 275-5   controlled by a professional inspector or real estate inspector who
 275-6   is:
 275-7                     (A)  responsible for the actions of the person;
 275-8                     (B)  available if needed to consult with or
 275-9   assist the person; and
275-10                     (C)  physically present at the time and place of
275-11   the inspection; and
275-12               (2)  indirect supervision if the person is instructed
275-13   and controlled by a professional inspector who is:
275-14                     (A)  responsible for the actions of the person;
275-15   and
275-16                     (B)  available if needed to consult with or
275-17   assist the person.  (V.A.C.S. Art. 6573a, Secs. 23(a)(4), (5).)
275-18         Sec. 1102.105.  APPLICATION.  An applicant for a license
275-19   under this chapter must file with the commission an application on
275-20   a form prescribed by the commission. (V.A.C.S. Art. 6573a, Sec.
275-21   23(d)(5).)
275-22         Sec. 1102.106.  MORAL CHARACTER DETERMINATION. As prescribed
275-23   by Section 1101.353, the commission shall determine, on request,
275-24   whether a person's moral character complies with the commission's
275-25   moral character requirements for licensing under this chapter and
275-26   may conduct a supplemental moral character determination of the
275-27   person.  (V.A.C.S. Art. 6573a, Sec. 6A.)
 276-1         Sec. 1102.107.  ELIGIBILITY FOR APPRENTICE INSPECTOR LICENSE.
 276-2   To be eligible for an apprentice inspector license, an applicant
 276-3   must:
 276-4               (1)  at the time of application be:
 276-5                     (A)  at least 18 years of age;
 276-6                     (B)  a citizen of the United States or a lawfully
 276-7   admitted alien; and
 276-8                     (C)  a resident of this state;
 276-9               (2)  be sponsored by a professional inspector; and
276-10               (3)  satisfy the commission as to the applicant's
276-11   honesty, trustworthiness, and integrity.  (V.A.C.S. Art. 6573a,
276-12   Sec. 23(d)(1).)
276-13         Sec. 1102.108.  ELIGIBILITY FOR REAL ESTATE INSPECTOR
276-14   LICENSE.  (a)  To be eligible for a real estate inspector license,
276-15   an applicant must:
276-16               (1)  at the time of application have:
276-17                     (A)  held an apprentice inspector license for at
276-18   least three months; and
276-19                     (B)  performed at least 25 real estate
276-20   inspections under direct supervision;
276-21               (2)  submit evidence satisfactory to the commission of
276-22   successful completion of at least 90 classroom hours of core real
276-23   estate inspection courses;
276-24               (3)  demonstrate competence based on the examination
276-25   under Subchapter D;
276-26               (4)  be sponsored by a professional inspector; and
276-27               (5)  satisfy the commission as to the applicant's
 277-1   honesty, trustworthiness, integrity, and competence.
 277-2         (b)  The commission by rule may specify the length and
 277-3   content of the courses required by Subsection (a)(2).  (V.A.C.S.
 277-4   Art. 6573a, Sec. 23(d)(2) (part).)
 277-5         Sec. 1102.109.  ELIGIBILITY FOR PROFESSIONAL INSPECTOR
 277-6   LICENSE.  To be eligible for a professional inspector license, an
 277-7   applicant must:
 277-8               (1)  at the time of application have:
 277-9                     (A)  held a real estate inspector license for at
277-10   least 12 months; and
277-11                     (B)  performed at least 175 real estate
277-12   inspections under indirect supervision;
277-13               (2)  submit evidence satisfactory to the commission of
277-14   successful completion of at least 30 classroom hours of core real
277-15   estate inspection courses, in addition to the hours required by
277-16   Section 1102.108, and at least eight classroom hours related to the
277-17   study of standards of practice, legal issues, or ethics related to
277-18   the practice of real estate inspecting; and
277-19               (3)  demonstrate competence based on the examination
277-20   under Subchapter D.  (V.A.C.S. Art. 6573a, Sec. 23(d)(3) (part).)
277-21         Sec. 1102.110.  ELIGIBILITY OF PREVIOUS LICENSE HOLDERS.  (a)
277-22   Notwithstanding Section 1102.108, an applicant is eligible for and
277-23   has satisfied all requirements for a real estate inspector license
277-24   if the applicant:
277-25               (1)  held a real estate inspector license during the
277-26   24-month period preceding the date the application is filed;
277-27               (2)  is sponsored by a professional inspector; and
 278-1               (3)  satisfies the commission as to the applicant's
 278-2   honesty, trustworthiness, and integrity.
 278-3         (b)  Notwithstanding Section 1102.109, an applicant is
 278-4   eligible for and has satisfied all requirements for a professional
 278-5   inspector license if the applicant:
 278-6               (1)  held a professional inspector license during the
 278-7   24-month period preceding the date the application is filed; and
 278-8               (2)  satisfies the commission as to the applicant's
 278-9   honesty, trustworthiness, and integrity.  (V.A.C.S. Art. 6573a,
278-10   Secs. 23(d)(2) (part), (3) (part).)
278-11         Sec. 1102.111.  SUBSTITUTE REQUIREMENTS.  (a)  The commission
278-12   by rule shall provide for substitution of relevant experience or
278-13   additional education in place of:
278-14               (1)  the number of real estate inspections required for
278-15   licensing; and
278-16               (2)  the requirement that an applicant be:
278-17                     (A)  licensed as an apprentice inspector before
278-18   being licensed as a real estate inspector; or
278-19                     (B)  licensed as a real estate inspector before
278-20   being licensed as a professional inspector.
278-21         (b)  Rules adopted under Subsection (a)  may not require an
278-22   applicant to complete more than 60 additional classroom hours of
278-23   core real estate inspection courses.  (V.A.C.S. Art. 6573a, Sec.
278-24   23(d)(4).)
278-25         Sec. 1102.112.  WAIVER FOR APPLICANT LICENSED IN ANOTHER
278-26   STATE.  The commission may waive any license requirement for an
278-27   applicant who holds a license from another state having license
 279-1   requirements substantially equivalent to those of this state.
 279-2   (V.A.C.S. Art. 6573a, Sec. 23(j).)
 279-3         Sec. 1102.113.  ELIGIBILITY AS SPONSOR.  A professional
 279-4   inspector may sponsor an apprentice inspector or a real estate
 279-5   inspector only if the professional inspector provides sufficient
 279-6   proof to the commission that the professional inspector has
 279-7   completed at least 200 real estate inspections as a professional
 279-8   inspector.  (V.A.C.S. Art. 6573a, Sec. 23(d)(6).)
 279-9         Sec. 1102.114.  ISSUANCE OF LICENSE.  The commission shall
279-10   issue the appropriate license to an applicant who:
279-11               (1)  meets the required qualifications; and
279-12               (2)  pays the fee required by Section 1102.352(a).
279-13   (V.A.C.S. Art. 6573a, Sec. 23(e).)
279-14         Sec. 1102.115.  DENIAL OF LICENSE. The provisions of Section
279-15   1101.364 governing the commission's denial of a license under that
279-16   chapter apply to the commission's denial of a license under this
279-17   chapter.  (V.A.C.S. Art. 6573a, Secs. 10(a) (part), (b).)
279-18         Sec. 1102.116.  PROBATIONARY LICENSE. The commission may
279-19   issue a probationary license under this chapter as prescribed by
279-20   Section 1101.365.  (V.A.C.S. Art. 6573a, Sec. 10(c).)
279-21         Sec. 1102.117.  INACTIVE LICENSE.  The commission by rule may
279-22   adopt terms by which:
279-23               (1)  an inspector may apply for, renew, or place a
279-24   license on inactive status; and
279-25               (2)  an inactive inspector may return to active status.
279-26   (V.A.C.S. Art. 6573a, Sec. 23(p).)
279-27         Sec. 1102.118.  CHANGE OF ADDRESS.  Not later than the 30th
 280-1   day after the date an inspector changes the inspector's place of
 280-2   business, the inspector shall notify the commission and pay the
 280-3   required fee.  (V.A.C.S. Art. 6573a, Sec. 23(g).)
 280-4           (Sections 1102.119-1102.150 reserved for expansion)
 280-5                   SUBCHAPTER D.  LICENSE EXAMINATION
 280-6         Sec. 1102.151.  CONTENT OF EXAMINATION.  (a)  A license
 280-7   examination must evaluate competence in the subject matter of each
 280-8   required core real estate inspection course.
 280-9         (b)  The commission shall:
280-10               (1)  prescribe each license examination; and
280-11               (2)  prepare or contract for the examination.
280-12   (V.A.C.S. Art. 6573a, Sec. 23(i)(1) (part).)
280-13         Sec. 1102.152.  OFFERING OF EXAMINATION.  The commission
280-14   shall offer each license examination at least once every two months
280-15   in Austin.  (V.A.C.S. Art. 6573a, Sec. 23(i)(1) (part).)
280-16         Sec. 1102.153.  DEADLINE FOR COMPLETION.  A license applicant
280-17   who does not satisfy the examination requirement within six months
280-18   after the date the application is filed must submit a new
280-19   application and pay another examination fee to be eligible for
280-20   examination.  (V.A.C.S. Art. 6573a, Sec. 23(i)(1) (part).)
280-21         Sec. 1102.154.  EXAMINATION RESULTS.  (a)  Not later than the
280-22   30th day after the date an examination is administered, the
280-23   commission shall notify each examinee of the results of the
280-24   examination.  If an examination is graded or reviewed by a national
280-25   testing service, the commission shall notify each examinee of the
280-26   results of the examination not later than the 14th day after the
280-27   date the commission receives the results from the testing service. 
 281-1         (b)  If the notice of the results of an examination graded or
 281-2   reviewed by a national testing service will not be given before the
 281-3   91st day after the examination date, the commission shall notify
 281-4   each examinee of the reason for the delay before the 90th day.
 281-5         (c)  If requested in writing by a person who fails an
 281-6   examination, the commission shall provide to the person an analysis
 281-7   of the person's performance on the examination.  (V.A.C.S.
 281-8   Art. 6573a, Secs. 23(i)(2), (3).)
 281-9         Sec. 1102.155.  REEXAMINATION.  (a)  An applicant who fails
281-10   the examination may apply for reexamination by filing a request
281-11   with the commission and paying another examination fee.
281-12         (b)  An applicant who fails the examination three consecutive
281-13   times in connection with the same application may not apply for
281-14   reexamination or submit a new license application before six months
281-15   after the date of the third failed examination.  (V.A.C.S.
281-16   Art. 6573a, Sec. 23(i)(1) (part).)
281-17           (Sections 1102.156-1102.200 reserved for expansion)
281-18                     SUBCHAPTER E.  LICENSE RENEWAL
281-19         Sec. 1102.201.  LICENSE EXPIRATION.  A license issued under
281-20   this chapter expires on the first anniversary of the date of
281-21   issuance.  (V.A.C.S. Art. 6573a, Sec. 23(f)(1).)
281-22         Sec. 1102.202.  NOTICE OF LICENSE EXPIRATION.  Not later than
281-23   the 31st day before the expiration date of a person's license, the
281-24   commission shall send to the person at the person's last known
281-25   address according to the commission's records written notice of the
281-26   license expiration.  (V.A.C.S. Art. 6573a, Sec. 23(f)(6).)
281-27         Sec. 1102.203.  RENEWAL OF CERTAIN LICENSES.  (a)  A person
 282-1   may renew an unexpired license by paying the required renewal fee
 282-2   to the commission before the expiration date of the license.
 282-3         (b)  If the person's license has been expired for 90 days or
 282-4   less, the person may renew the license by paying to the commission
 282-5   the required renewal fee and a fee that is equal to half the amount
 282-6   of the examination fee for the license.
 282-7         (c)  If the person's license has been expired for more than
 282-8   90 days but less than one year, the person may renew the license by
 282-9   paying to the commission all unpaid renewal fees and a fee that is
282-10   equal to the amount of the examination fee for the license.
282-11         (d)  If the person's license has been expired for one year or
282-12   more, the person may not renew the license.  The person may obtain
282-13   a new license by submitting to reexamination, if required, and
282-14   complying with the requirements and procedures for obtaining an
282-15   original license.  (V.A.C.S. Art. 6573a, Secs. 23(f)(2), (3), (4),
282-16   (5) (part).)
282-17         Sec. 1102.204.  RENEWAL OF EXPIRED LICENSE BY OUT-OF-STATE
282-18   PRACTITIONER.  (a)  The commission may renew without reexamination
282-19   the expired license of a person who was licensed in this state,
282-20   moved to another state, and is currently licensed and has been in
282-21   practice in the other state for the year preceding the date the
282-22   person applies for renewal.
282-23         (b)  The person must pay to the commission a fee that is
282-24   equal to the amount of the license examination fee.  (V.A.C.S.
282-25   Art. 6573a, Sec. 23(f)(5) (part).)
282-26         Sec. 1102.205.  CONTINUING EDUCATION REQUIREMENTS.  (a)  The
282-27   commission shall recognize, prepare, or administer a continuing
 283-1   education program for inspectors.
 283-2         (b)  As a prerequisite for renewal of a real estate inspector
 283-3   license or professional inspector license, the inspector must
 283-4   participate in the continuing education program and submit evidence
 283-5   satisfactory to the commission of successful completion of at least
 283-6   the following number of classroom hours of core real estate
 283-7   inspection courses during the year preceding the renewal:
 283-8               (1)  four hours for a real estate inspector license
 283-9   renewal; or
283-10               (2)  eight hours for a professional inspector license
283-11   renewal.  (V.A.C.S. Art. 6573a, Sec. 23(k).)
283-12           (Sections 1102.206-1102.250 reserved for expansion)
283-13                       SUBCHAPTER F.  LICENSE FEES
283-14         Sec. 1102.251.  AMOUNT OF FEES.  The commission shall charge
283-15   and collect reasonable and necessary fees to cover the cost of
283-16   administering this chapter as follows:
283-17               (1)  for filing an original application for an
283-18   apprentice inspector license, not more than $75;
283-19               (2)  for filing an original application for a real
283-20   estate inspector license, not more than $125;
283-21               (3)  for filing an original application for a
283-22   professional inspector license, not more than $150;
283-23               (4)  for renewal of an apprentice inspector license,
283-24   not more than $125;
283-25               (5)  for renewal of a real estate inspector license,
283-26   not more than $175;
283-27               (6)  for renewal of a professional inspector license,
 284-1   not more than $200;
 284-2               (7)  for a license examination, not more than $100; and
 284-3               (8)  for a request to change a place of business or to
 284-4   replace a lost or destroyed license, not more than $20.  (V.A.C.S.
 284-5   Art. 6573a, Sec. 23(h)(1).)
 284-6         Sec. 1102.252.  PAYMENT.  A person may pay a fee by cash,
 284-7   check, including a cashier's check, or money order.  (V.A.C.S.
 284-8   Art. 6573a, Sec. 23(h)(2).)
 284-9         Sec. 1102.253.  REVIEW OF FEE AMOUNTS.  The commission
284-10   annually shall review the fees under Section 1102.251 and reduce
284-11   the fees to the extent that the cost of administering this chapter
284-12   is covered by money appropriated to the commission that is
284-13   attributable to amounts transferred to the general revenue fund
284-14   under Section 1102.353(d).  (V.A.C.S. Art. 6573a, Sec. 23(h)(3).)
284-15           (Sections 1102.254-1102.300 reserved for expansion)
284-16                     SUBCHAPTER G.  PROHIBITED ACTS
284-17         Sec. 1102.301.  NEGLIGENCE OR INCOMPETENCE.  An inspector may
284-18   not perform a real estate inspection in a negligent or incompetent
284-19   manner.  (V.A.C.S. Art. 6573a, Sec. 23(l) (part).)
284-20         Sec. 1102.302.  AGREEMENT FOR SPECIFIC REPORT; DISHONESTY.
284-21   An inspector may not:
284-22               (1)  accept an assignment for real estate inspection if
284-23   the employment or a fee is contingent on the reporting of:
284-24                     (A)  a specific, predetermined condition of the
284-25   improvements to real property; or
284-26                     (B)  specific findings other than those that the
284-27   inspector knows to be true when the assignment is accepted; or
 285-1               (2)  act in a manner or engage in a practice that:
 285-2                     (A)  is dishonest or fraudulent; or
 285-3                     (B)  involves deceit or misrepresentation.
 285-4   (V.A.C.S. Art. 6573a, Sec. 23(l) (part).)
 285-5         Sec. 1102.303.  ACTING IN CONFLICTING CAPACITIES.  An
 285-6   inspector may not act in a transaction in the dual capacity of
 285-7   inspector and:
 285-8               (1)  undisclosed principal; or
 285-9               (2)  broker or salesperson.  (V.A.C.S. Art. 6573a, Sec.
285-10   23(l) (part).)
285-11         Sec. 1102.304.  REPAIRS AND MAINTENANCE.  An inspector may
285-12   not perform or agree to perform repairs or maintenance in
285-13   connection with a real estate inspection under an earnest money
285-14   contract, lease, or exchange of real property.  (V.A.C.S.
285-15   Art. 6573a, Sec. 23(l) (part).)
285-16         Sec. 1102.305.  VIOLATION OF LAW.  An inspector may not
285-17   violate this chapter or a rule adopted by the commission.
285-18   (V.A.C.S. Art. 6573a, Sec. 23(l) (part).)
285-19           (Sections 1102.306-1102.350 reserved for expansion)
285-20           SUBCHAPTER H.  REAL ESTATE INSPECTION RECOVERY FUND
285-21         Sec. 1102.351.  REAL ESTATE INSPECTION RECOVERY FUND.  The
285-22   commission shall maintain a real estate inspection recovery fund to
285-23   reimburse aggrieved persons who suffer actual damages from an
285-24   inspector's act in violation of Subchapter G.  The inspector must
285-25   have held a license at the time the act was committed.  (V.A.C.S.
285-26   Art. 6573a, Sec. 23(o)(1) (part).)
285-27         Sec. 1102.352.  PAYMENTS INTO FUND.  (a)  In addition to any
 286-1   other fees required by this chapter, a person who passes a license
 286-2   examination must pay a fee not to exceed $200.  The commission
 286-3   shall deposit the fee to the credit of the fund before issuing the
 286-4   license.
 286-5         (b)  If the balance in the fund on December 31 of a year is
 286-6   less than $300,000, each inspector at the next license renewal must
 286-7   pay, in addition to the renewal fee, a fee that is equal to the
 286-8   lesser of $75 or a pro rata share of the amount necessary to obtain
 286-9   a balance in the fund of $450,000.  The commission shall deposit
286-10   the additional fee to the credit of the fund.  (V.A.C.S.
286-11   Art. 6573a, Secs. 23(o)(2), (3).)
286-12         Sec. 1102.353.  MANAGEMENT OF FUND.  (a)  The commission
286-13   shall hold money credited to the fund in trust to carry out the
286-14   purpose of the fund.
286-15         (b)  Money credited to the fund may be invested in the same
286-16   manner as money of the Employees Retirement System of Texas, except
286-17   that an investment may not be made that would impair the liquidity
286-18   necessary to make payments from the fund as required by this
286-19   subchapter.
286-20         (c)  Interest from the investments shall be deposited to the
286-21   credit of the fund.
286-22         (d)  If the balance in the fund on December 31 of a year is
286-23   more than $600,000, the commission shall transfer the amount in
286-24   excess of $600,000 to the credit of the general revenue fund.
286-25   (V.A.C.S. Art. 6573a, Secs. 23(o)(4), (11).)
286-26         Sec. 1102.354.  DEADLINE FOR ACTION; NOTICE TO COMMISSION.
286-27   (a)  An action for a judgment that may result in an order for
 287-1   payment from the fund may not be brought after the second
 287-2   anniversary of the date the cause of action accrues.
 287-3         (b)  When an aggrieved person brings an action for a judgment
 287-4   that may result in an order for payment from the fund, the
 287-5   inspector against whom the action is brought shall notify the
 287-6   commission in writing of the action.  (V.A.C.S. Art. 6573a, Sec.
 287-7   23(o)(5).)
 287-8         Sec. 1102.355.  CLAIM FOR PAYMENT FROM FUND.  (a)  An
 287-9   aggrieved person who obtains a court judgment against an inspector
287-10   for a violation of Subchapter G may, after final judgment is
287-11   entered, execution returned nulla bona, and a judgment lien
287-12   perfected, file a verified claim in the court that entered the
287-13   judgment.
287-14         (b)  After the 20th day after the date the aggrieved person
287-15   gives written notice to the commission and judgment debtor, the
287-16   person may apply to the court that entered the judgment for an
287-17   order for payment from the fund of the amount unpaid on the
287-18   judgment.  The court shall proceed promptly on the application.
287-19   (V.A.C.S. Art. 6573a, Secs. 23(o)(6), (7) (part).)
287-20         Sec. 1102.356.  ISSUES AT HEARING.  At the hearing on the
287-21   application for payment from the fund, the aggrieved person must
287-22   show:
287-23               (1)  that the judgment is based on facts allowing
287-24   recovery under this subchapter;
287-25               (2)  that the person is not:
287-26                     (A)  the spouse of the judgment debtor or the
287-27   personal representative of the spouse; or
 288-1                     (B)  an inspector;
 288-2               (3)  that the person has obtained a judgment described
 288-3   by Section 1102.355 that is not subject to a stay or discharge in
 288-4   bankruptcy;
 288-5               (4)  the amount of the judgment and the amount owing on
 288-6   the judgment on the date of the application;
 288-7               (5)  that, according to the best information available,
 288-8   the judgment debtor does not have sufficient attachable assets in
 288-9   this or another state to satisfy the judgment;
288-10               (6)  the amount that may be realized from the sale of
288-11   assets liable to be sold or applied to satisfy the judgment; and
288-12               (7)  the balance remaining due on the judgment after
288-13   application of the amount under Subdivision (6).  (V.A.C.S.
288-14   Art. 6573a, Sec. 23(o)(7) (part).)
288-15         Sec. 1102.357.  COMMISSION RESPONSE.  (a)  On receipt of
288-16   notice under Section 1102.355, the commission may notify the
288-17   attorney general of the commission's desire to enter an appearance,
288-18   file a response, appear at the hearing, defend the action, or take
288-19   any other action the commission considers appropriate.
288-20         (b)  The commission and the attorney general may act under
288-21   Subsection (a) only to:
288-22               (1)  protect the fund from spurious or unjust claims;
288-23   or
288-24               (2)  ensure compliance with the requirements for
288-25   recovery under this subchapter.
288-26         (c)  The commission may relitigate in the hearing any
288-27   material and relevant issue that was determined in the action that
 289-1   resulted in the judgment in favor of the aggrieved person.
 289-2   (V.A.C.S. Art. 6573a, Secs. 23(o)(8) (part), (12).)
 289-3         Sec. 1102.358.  COURT ORDER FOR PAYMENT.  The court shall
 289-4   order the commission to pay from the fund the amount the court
 289-5   finds payable on the claim under this subchapter if at the hearing
 289-6   the court is satisfied:
 289-7               (1)  of the truth of each matter the aggrieved person
 289-8   is required by Section 1102.356 to show; and
 289-9               (2)  that the aggrieved person has satisfied each
289-10   requirement of Sections 1102.355 and 1102.356.  (V.A.C.S.
289-11   Art. 6573a, Secs. 23(o)(1) (part), (8) (part).)
289-12         Sec. 1102.359.  PAYMENT LIMITS; ATTORNEY'S FEES.  (a)
289-13   Payments from the fund for claims, including attorney's fees,
289-14   interest, and court costs, arising out of a single transaction may
289-15   not exceed a total of $7,500, regardless of the number of
289-16   claimants.
289-17         (b)  Payments from the fund for claims based on judgments
289-18   against a single inspector may not exceed a total of $15,000 until
289-19   the inspector has reimbursed the fund for all amounts paid.
289-20         (c)  If the court finds that the total amount of claims
289-21   against an inspector exceeds the limitations contained in this
289-22   section, the court shall proportionally reduce the amount payable
289-23   on each claim.
289-24         (d)  A person receiving payment from the fund is entitled to
289-25   reasonable attorney's fees in the amount determined by the court,
289-26   subject to the limitation prescribed by this section. (V.A.C.S.
289-27   Art. 6573a, Secs. 23(o)(8) (part), (15), (17).)
 290-1         Sec. 1102.360.  APPLICATION OF JUDGMENT RECOVERY.  An
 290-2   aggrieved person who receives a recovery on a judgment against a
 290-3   single defendant before receiving a payment from the fund must
 290-4   apply the recovery first to actual damages. (V.A.C.S. Art. 6573a,
 290-5   Sec.  23(o)(9).)
 290-6         Sec. 1102.361.  SUBROGATION.  (a)  The commission is
 290-7   subrogated to all rights of a judgment creditor to the extent of an
 290-8   amount paid from the fund, and the judgment creditor shall assign
 290-9   to the commission all right, title, and interest in the judgment up
290-10   to that amount.
290-11         (b)  The commission has priority for repayment from any
290-12   subsequent recovery on the judgment.
290-13         (c)  The commission shall deposit any amount recovered on the
290-14   judgment to the credit of the fund.  (V.A.C.S. Art. 6573a, Sec.
290-15   23(o)(13).)
290-16         Sec. 1102.362.  EFFECT ON DISCIPLINARY PROCEEDINGS.  (a)
290-17   This subchapter does not limit the commission's authority to take
290-18   disciplinary action against an inspector for a violation of this
290-19   chapter or a commission rule.
290-20         (b)  An inspector's repayment of all amounts owed to the fund
290-21   does not affect another disciplinary proceeding brought under this
290-22   chapter. (V.A.C.S. Art. 6573a, Sec. 23(o)(16).)
290-23         Sec. 1102.363.  WAIVER OF RIGHTS.  An aggrieved person who
290-24   does not comply with this subchapter waives the person's rights
290-25   under this subchapter.  (V.A.C.S. Art. 6573a, Sec. 23(o)(14).)
290-26         Sec. 1102.364.  NOTICE TO CONSUMERS AND SERVICE RECIPIENTS.
290-27   (a)  Each inspector shall provide notice to consumers and service
 291-1   recipients of the availability of payment from the fund for
 291-2   aggrieved persons:
 291-3               (1)  on a written contract for the inspector's
 291-4   services;
 291-5               (2)  on a brochure that the inspector distributes;
 291-6               (3)  on a sign prominently displayed in the inspector's
 291-7   place of business; or
 291-8               (4)  in a bill or receipt for the inspector's services.
 291-9         (b)  The notice must include:
291-10               (1)  the commission's name, mailing address, and
291-11   telephone number; and
291-12               (2)  any other information required by commission rule.
291-13   (V.A.C.S. Art. 6573a, Sec. 23(o)(18).)
291-14           (Sections 1102.365-1102.400 reserved for expansion)
291-15           SUBCHAPTER I.  PENALTIES AND ENFORCEMENT PROVISIONS
291-16         Sec. 1102.401.  DISCIPLINARY POWERS OF COMMISSION.  (a)  The
291-17   commission may investigate an action of an inspector and, after
291-18   notice and hearing as provided by Section 1101.657, reprimand the
291-19   inspector, place the inspector's license on probation, or suspend
291-20   or revoke the inspector's license for a violation of this chapter
291-21   or a commission rule.
291-22         (b)  An inspector whose license is revoked under this section
291-23   may not apply to the commission for a new license until after the
291-24   first anniversary of the date of the revocation.  (V.A.C.S.
291-25   Art. 6573a, Sec. 23(m)(4).)
291-26         Sec. 1102.402.  LICENSE REVOCATION FOR CLAIM ON FUND. (a)
291-27   The commission may revoke the license of an inspector if the
 292-1   commission makes a payment from the fund to satisfy all or part of
 292-2   a judgment against the inspector.
 292-3         (b)  The commission may probate an order revoking a license. 
 292-4         (c)  A person whose license is revoked under this section is
 292-5   not eligible for  a new license until the person has repaid in full
 292-6   the amount paid from the fund on the person's account, plus
 292-7   interest at the legal rate.  (V.A.C.S. Art. 6573a, Sec. 23(o)(10).)
 292-8         Sec. 1102.403.  ADMINISTRATIVE PENALTY.  (a)  The commission
 292-9   may impose an administrative penalty as provided by Subchapter O,
292-10   Chapter 1101, on an inspector who violates this chapter or a rule
292-11   adopted or order issued by the commission under this chapter or
292-12   Chapter 1101.
292-13         (b)  An administrative penalty collected under this section
292-14   shall be deposited to the credit of the real estate inspection
292-15   recovery fund.  (V.A.C.S. Art. 6573a, Secs. 19A(a), (o) (part).)
292-16         Sec. 1102.404.  INJUNCTIVE RELIEF. The commission, the
292-17   attorney general, a county attorney, or a district attorney, as
292-18   applicable, may bring an action to enforce this chapter or to abate
292-19   or enjoin a violation of this chapter or a rule adopted under this
292-20   chapter as prescribed by Sections 1101.751 and 1101.752.  (V.A.C.S.
292-21   Art. 6573a, Secs. 5(h) (part); 19(c), (d) (part).)
292-22         Sec. 1102.405.  APPEAL BOND EXEMPTION. The commission is not
292-23   required to give an appeal bond in an action to enforce this
292-24   chapter.  (V.A.C.S. Art. 6573a, Sec. 5(h) (part).)
292-25         Sec. 1102.406.  GENERAL CRIMINAL PENALTY. (a)  A person
292-26   commits an offense if the person wilfully violates or fails to
292-27   comply with this chapter or a commission order.
 293-1         (b)  An offense under this section is a Class A misdemeanor.
 293-2   (V.A.C.S. Art. 6573a.1.)
 293-3         Sec. 1102.407.  CRIMINAL PENALTY FOR PRACTICING WITHOUT
 293-4   LICENSE.  (a)  A person commits an offense if the person does not
 293-5   hold a license under this chapter and knowingly engages in the
 293-6   business of real estate inspecting, including performing an
 293-7   inspection while the person's license is revoked or suspended.
 293-8         (b)  An offense under this section is a Class B misdemeanor.
 293-9   (V.A.C.S. Art. 6573a, Secs. 23(m)(1), (2).)
293-10                  CHAPTER 1103.  REAL ESTATE APPRAISERS
293-11                    SUBCHAPTER A.  GENERAL PROVISIONS
293-12   Sec. 1103.001.  SHORT TITLE 
293-13   Sec. 1103.002.  PURPOSE 
293-14   Sec. 1103.003.  DEFINITIONS 
293-15   Sec. 1103.004.  EFFECT OF CHAPTER 
293-16   Sec. 1103.005.  REAL ESTATE BROKER OR SALESPERSON LICENSE
293-17                     NOT REQUIRED 
293-18   Sec. 1103.006.  APPLICATION OF SUNSET ACT 
293-19           (Sections 1103.007-1103.050 reserved for expansion)
293-20    SUBCHAPTER B.  TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD
293-21   Sec. 1103.051.  TEXAS APPRAISER LICENSING AND CERTIFICATION
293-22                     BOARD 
293-23   Sec. 1103.052.  BOARD MEMBERSHIP 
293-24   Sec. 1103.053.  QUALIFICATIONS OF APPOINTED MEMBERS 
293-25   Sec. 1103.054.  ELIGIBILITY OF PUBLIC MEMBERS 
293-26   Sec. 1103.055.  TERMS 
293-27   Sec. 1103.056.  OFFICERS; EXECUTIVE COMMITTEE 
 294-1   Sec. 1103.057.  GROUNDS FOR REMOVAL 
 294-2   Sec. 1103.058.  PER DIEM; REIMBURSEMENT 
 294-3   Sec. 1103.059.  QUASI-JUDICIAL IMMUNITY 
 294-4           (Sections 1103.060-1103.100 reserved for expansion)
 294-5          SUBCHAPTER C.  COMMISSIONER AND OTHER BOARD PERSONNEL
 294-6   Sec. 1103.101.  COMMISSIONER 
 294-7   Sec. 1103.102.  OTHER BOARD PERSONNEL 
 294-8   Sec. 1103.103.  SALARIES 
 294-9   Sec. 1103.104.  DUTIES OF COMMISSIONER 
294-10           (Sections 1103.105-1103.150 reserved for expansion)
294-11                 SUBCHAPTER D.  BOARD POWERS AND DUTIES
294-12   Sec. 1103.151.  RULES RELATING TO CERTIFICATES AND
294-13                     LICENSES 
294-14   Sec. 1103.152.  APPRAISER CERTIFICATE AND LICENSE
294-15                     CATEGORIES 
294-16   Sec. 1103.153.  RULES RELATING TO CONTINUING EDUCATION 
294-17   Sec. 1103.154.  RULES RELATING TO PROFESSIONAL CONDUCT 
294-18   Sec. 1103.155.  ROSTER 
294-19   Sec. 1103.156.  FEES 
294-20           (Sections 1103.157-1103.200 reserved for expansion)
294-21           SUBCHAPTER E.  CERTIFICATE AND LICENSE REQUIREMENTS
294-22   Sec. 1103.201.  CERTIFICATE OR LICENSE REQUIRED 
294-23   Sec. 1103.202.  ELIGIBILITY REQUIREMENTS FOR CERTIFICATE 
294-24   Sec. 1103.203.  ELIGIBILITY REQUIREMENTS FOR LICENSE 
294-25   Sec. 1103.204.  FULFILLMENT OF EDUCATION REQUIREMENTS 
294-26   Sec. 1103.205.  FULFILLMENT OF EXPERIENCE REQUIREMENTS 
294-27   Sec. 1103.206.  VERIFICATION OF EDUCATION AND EXPERIENCE 
 295-1   Sec. 1103.207.  ADDITIONAL INFORMATION FROM CERTAIN
 295-2                     APPLICANTS 
 295-3   Sec. 1103.208.  PROVISIONAL LICENSE FOR CERTAIN APPRAISER
 295-4                     TRAINEES 
 295-5   Sec. 1103.209.  RECIPROCAL CERTIFICATE OR LICENSE 
 295-6   Sec. 1103.210.  DENIAL OF CERTIFICATE OR LICENSE 
 295-7   Sec. 1103.211.  CERTIFICATE OR LICENSE RENEWAL; CONTINUING
 295-8                     EDUCATION 
 295-9           (Sections 1103.212-1103.250 reserved for expansion)
295-10                  SUBCHAPTER F.  APPRAISER EXAMINATION
295-11   Sec. 1103.251.  EXAMINATION REQUIRED 
295-12   Sec. 1103.252.  TESTING SERVICE 
295-13   Sec. 1103.253.  TIME AND PLACE OF EXAMINATION; NOTICE 
295-14   Sec. 1103.254.  EXAMINATION APPLICATION 
295-15   Sec. 1103.255.  EXPERIENCE NOT REQUIRED BEFORE TAKING
295-16                     EXAMINATION 
295-17   Sec. 1103.256.  MINIMUM PASSING GRADE REQUIRED 
295-18   Sec. 1103.257.  EXAMINATION RESULTS 
295-19   Sec. 1103.258.  REEXAMINATION 
295-20   Sec. 1103.259.  GUIDELINES; STUDY GUIDES 
295-21           (Sections 1103.260-1103.300 reserved for expansion)
295-22      SUBCHAPTER G.  TEMPORARY APPRAISAL AUTHORITY FOR OUT-OF-STATE
295-23                               APPRAISERS
295-24   Sec. 1103.301.  REGISTRATION REQUIRED 
295-25   Sec. 1103.302.  REGISTRATION APPLICATION 
295-26   Sec. 1103.303.  ELIGIBILITY REQUIREMENTS FOR REGISTRATION 
295-27           (Sections 1103.304-1103.350 reserved for expansion)
 296-1                    SUBCHAPTER H.  APPRAISER TRAINEES
 296-2   Sec. 1103.351.  SPONSOR 
 296-3   Sec. 1103.352.  APPLICATION FOR APPRAISER TRAINEE 
 296-4   Sec. 1103.353.  ELIGIBILITY REQUIREMENTS FOR APPRAISER
 296-5                     TRAINEE 
 296-6   Sec. 1103.354.  APPRAISER TRAINEE REPORTS 
 296-7   Sec. 1103.355.  DISCIPLINARY PROCEDURES FOR APPRAISER
 296-8                     TRAINEES 
 296-9           (Sections 1103.356-1103.400 reserved for expansion)
296-10       SUBCHAPTER I.  PRACTICE BY CERTIFIED OR LICENSED APPRAISER
296-11   Sec. 1103.401.  USE OF INSIGNIA OR IDENTIFICATION 
296-12   Sec. 1103.402.  SIGNATURE OR ENDORSEMENT ON APPRAISAL 
296-13   Sec. 1103.403.  OFFICE LOCATION 
296-14   Sec. 1103.404.  BUSINESS RECORDS 
296-15           (Sections 1103.405-1103.450 reserved for expansion)
296-16            SUBCHAPTER J.  DISCIPLINARY PROCEEDINGS GENERALLY
296-17   Sec. 1103.451.  COMPLAINT 
296-18   Sec. 1103.452.  REVIEW AND INVESTIGATION 
296-19   Sec. 1103.453.  PEER INVESTIGATIVE COMMITTEE 
296-20   Sec. 1103.454.  GENERAL SUBPOENA AUTHORITY 
296-21   Sec. 1103.455.  REPORT OF INVESTIGATION REQUIRED 
296-22   Sec. 1103.456.  BOARD ACTION BASED ON REPORT 
296-23   Sec. 1103.457.  INFORMAL DISCUSSION OF COMPLAINT 
296-24   Sec. 1103.458.  CONSENT ORDER 
296-25   Sec. 1103.459.  CONSENT AGREEMENT 
296-26   Sec. 1103.460.  PUBLIC AVAILABILITY OF FINAL DECISION 
296-27           (Sections 1103.461-1103.500 reserved for expansion)
 297-1                 SUBCHAPTER K.  CONTESTED CASE HEARINGS
 297-2   Sec. 1103.501.  APPLICABILITY OF ADMINISTRATIVE PROCEDURE
 297-3                     LAW 
 297-4   Sec. 1103.502.  NOTICE OF HEARING 
 297-5   Sec. 1103.503.  STATEMENT OF CHARGES 
 297-6   Sec. 1103.504.  ATTORNEY GENERAL REPRESENTATION 
 297-7   Sec. 1103.505.  ANSWER 
 297-8   Sec. 1103.506.  DISCOVERY PROCEDURES 
 297-9   Sec. 1103.507.  SUBPOENA IN CONTESTED CASE 
297-10   Sec. 1103.508.  HEARING BEFORE BOARD 
297-11   Sec. 1103.509.  CHALLENGE OF BOARD MEMBER 
297-12   Sec. 1103.510.  FAILURE TO APPEAR 
297-13   Sec. 1103.511.  OPEN HEARING 
297-14   Sec. 1103.512.  RECORD OF PROCEEDINGS 
297-15   Sec. 1103.513.  ORDER OF PROCEEDINGS 
297-16   Sec. 1103.514.  COPIES OF EVIDENCE 
297-17   Sec. 1103.515.  RESPONSE TO CERTAIN ACCUSATIONS 
297-18   Sec. 1103.516.  DIRECT EXAMINATION 
297-19   Sec. 1103.517.  IMMUNITY OF WITNESSES 
297-20   Sec. 1103.518.  BOARD ACTION AFTER HEARING 
297-21   Sec. 1103.519.  APPLICATION FOR REHEARING 
297-22   Sec. 1103.520.  DECISION ON REHEARING 
297-23   Sec. 1103.521.  DECISION; ORDER 
297-24   Sec. 1103.522.  REINSTATEMENT OF CERTIFICATE OR LICENSE 
297-25           (Sections 1103.523-1103.550 reserved for expansion)
297-26        SUBCHAPTER L.  PENALTIES AND OTHER ENFORCEMENT PROVISIONS
297-27   Sec. 1103.551.  INJUNCTION 
 298-1   Sec. 1103.552.  ADMINISTRATIVE PENALTY 
 298-2   Sec. 1103.553.  CIVIL PENALTY 
 298-3   Sec. 1103.554.  CRIMINAL PENALTY 
 298-4                  CHAPTER 1103.  REAL ESTATE APPRAISERS
 298-5                    SUBCHAPTER A.  GENERAL PROVISIONS
 298-6         Sec. 1103.001.  SHORT TITLE. This chapter may be cited as the
 298-7   Texas Appraiser Licensing and Certification Act. (V.A.C.S.
 298-8   Art. 6573a.2, Sec. 1.)
 298-9         Sec. 1103.002.  PURPOSE. The purpose of this chapter is to
298-10   conform state law relating to the regulation of real estate
298-11   appraisers to the requirements adopted under Title XI, Financial
298-12   Institutions Reform, Recovery, and Enforcement Act of 1989 (12
298-13   U.S.C. Section 3331 et seq.).  (V.A.C.S. Art. 6573a.2, Sec. 2.)
298-14         Sec. 1103.003.  DEFINITIONS. In this chapter:
298-15               (1)  "Appraisal" means:
298-16                     (A)  an estimate of value; or
298-17                     (B)  the act or process of estimating value.
298-18               (2)  "Appraisal Foundation" means The Appraisal
298-19   Foundation, as defined by 12 U.S.C. Section 3350, or its successor.
298-20               (3)  "Appraisal Subcommittee" means the Appraisal
298-21   Subcommittee of the Federal Financial Institutions Examination
298-22   Council, or its successor.
298-23               (4)  "Appraiser Qualifications Board" means the
298-24   Appraiser Qualifications Board of the Appraisal Foundation, or its
298-25   successor.
298-26               (5)  "Board" means the Texas Appraiser Licensing and
298-27   Certification Board.
 299-1               (6)  "Commissioner" means the commissioner of the Texas
 299-2   Appraiser Licensing and Certification Board.
 299-3               (7)  "State-certified real estate appraiser" or
 299-4   "certified appraiser" means a person who is certified under this
 299-5   chapter.
 299-6               (8)  "State-licensed real estate appraiser" or
 299-7   "licensed appraiser" means a person who is licensed under this
 299-8   chapter.  (V.A.C.S. Art. 6573a.2, Secs. 3(1), (3), (4), (5), (6),
 299-9   (10), (13), (14); New.)
299-10         Sec. 1103.004.  EFFECT OF CHAPTER. (a)  For purposes of this
299-11   section:
299-12               (1)  "Departure rule" means a limited departure from a
299-13   requirement of the Uniform Standards of Professional Appraisal
299-14   Practice that is:
299-15                     (A)  classified as a specific guideline rather
299-16   than as a binding requirement; and
299-17                     (B)  permitted only if the result of the
299-18   departure is not confusing or misleading and the specific guideline
299-19   from which the appraiser departs is reported.
299-20               (2)  "Evaluation" means an estimate of value that:
299-21                     (A)  is prepared by a certified or licensed
299-22   appraiser or another authorized real estate professional;
299-23                     (B)  includes an estimate of a property's market
299-24   value, a certification and limiting conditions, and an analysis of
299-25   or the supporting information used in forming the estimate of
299-26   value;
299-27                     (C)  is not more than a limited appraisal; and
 300-1                     (D)  may be presented in a format that is less
 300-2   than a self-contained report.
 300-3               (3)  "Federal financial institution regulatory agency"
 300-4   means:
 300-5                     (A)  the Board of Governors of the Federal
 300-6   Reserve System;
 300-7                     (B)  the Federal Deposit Insurance Corporation;
 300-8                     (C)  the Office of the Comptroller of the
 300-9   Currency;
300-10                     (D)  the Office of Thrift Supervision;
300-11                     (E)  the National Credit Union Administration; or
300-12                     (F)  the successors of any of those agencies.
300-13               (4)  "Federally related transaction" means a real
300-14   estate-related transaction that:
300-15                     (A)  requires the services of an appraiser; and
300-16                     (B)  is engaged in, contracted for, or regulated
300-17   by a federal financial institution regulatory agency.
300-18               (5)  "Limited appraisal" means an appraisal in which
300-19   the departure rule is invoked.
300-20               (6)  "Self-contained report" means a report that:
300-21                     (A)  contains sufficient information to indicate
300-22   that the appraiser has complied with the requirements of Standards
300-23   1 and 2 of the Uniform Standards of Professional Appraisal
300-24   Practice; and
300-25                     (B)  describes all information necessary for the
300-26   user of the appraisal to follow the conclusions of the appraisal
300-27   without referring to additional material.
 301-1         (b)  This chapter does not prohibit:
 301-2               (1)  a person authorized by law from performing an
 301-3   evaluation of real property for or providing an evaluation of real
 301-4   property to another person;
 301-5               (2)  a real estate broker or salesperson licensed under
 301-6   Chapter 1101 but not certified or licensed under this chapter from
 301-7   performing an appraisal in a transaction other than a federally
 301-8   related transaction;
 301-9               (3)  the requirement that a person who is not certified
301-10   or licensed under this chapter be licensed as a real estate broker
301-11   or salesperson to perform an appraisal in a transaction other than
301-12   a federally related transaction; or
301-13               (4)  a real estate broker or salesperson licensed under
301-14   Chapter 1101 from giving an opinion if the opinion:
301-15                     (A)  is not referred to as an appraisal; and
301-16                     (B)  is given in the ordinary course of the
301-17   broker's or salesperson's business to:
301-18                           (i)  a potential seller or third party
301-19   regarding the recommended listing price of real property; or
301-20                           (ii)  a potential purchaser or third party
301-21   regarding the recommended purchase price of real property.
301-22   (V.A.C.S. Art. 6573a.2, Secs. 3(8), (9), (16), (17), (18), (19),
301-23   18(b).)
301-24         Sec. 1103.005.  REAL ESTATE BROKER OR SALESPERSON LICENSE NOT
301-25   REQUIRED. A person is not required to be licensed as a real estate
301-26   broker or salesperson under Chapter 1101 to appraise real property
301-27   in this state if the person is:
 302-1               (1)  certified or licensed under this chapter;
 302-2               (2)  approved as an appraiser trainee under this
 302-3   chapter; or
 302-4               (3)  certified or licensed as a real estate appraiser
 302-5   by another state.  (V.A.C.S. Art. 6573a.2, Sec. 18(a).)
 302-6         Sec. 1103.006.  APPLICATION OF SUNSET ACT. If the federal
 302-7   government removes the requirements for the preparation or use of
 302-8   an appraisal by federally regulated financial institutions, the
 302-9   board is subject to Chapter 325, Government Code (Texas Sunset
302-10   Act), and is subject to sunset review in the next regular session
302-11   of the legislature following the date of the federal government's
302-12   action.  Unless continued in existence by that legislature as
302-13   provided by that chapter, the board is abolished and this chapter
302-14   expires on the 90th day after the last day of the regular session
302-15   of that legislature.  (V.A.C.S. Art. 6573a.2, Sec. 6(l).)
302-16           (Sections 1103.007-1103.050 reserved for expansion)
302-17    SUBCHAPTER B.  TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD
302-18         Sec. 1103.051.  TEXAS APPRAISER LICENSING AND CERTIFICATION
302-19   BOARD. The Texas Appraiser Licensing and Certification Board is an
302-20   independent subdivision of the Texas Real Estate Commission.
302-21   (V.A.C.S. Art. 6573a.2, Sec. 6(a) (part).)
302-22         Sec. 1103.052.  BOARD MEMBERSHIP. (a)  The board consists of
302-23   nine members as follows:
302-24               (1)  the executive secretary of the Veterans' Land
302-25   Board or the executive secretary's designee; and
302-26               (2)  eight members appointed by the governor with the
302-27   advice and consent of the senate as follows:
 303-1                     (A)  four members who are certified or licensed
 303-2   appraisers actively engaged in the practice of appraising real
 303-3   property; and
 303-4                     (B)  four public members who qualify for
 303-5   appointment based on their recognized business ability.
 303-6         (b)  The executive secretary of the Veterans' Land Board or
 303-7   the executive secretary's designee is a voting member of the board.
 303-8         (c)  In making appointments to the board, the governor shall
 303-9   ensure that:
303-10               (1)  a single appraisal organization is not
303-11   overrepresented on the board;
303-12               (2)  the board is independent of a trade association,
303-13   profession, or industry; and
303-14               (3)  the board represents:
303-15                     (A)  the diverse geographic areas of the state;
303-16   and
303-17                     (B)  a cross-section of disciplines in the field
303-18   of real estate appraisal.
303-19         (d)  Appointments to the board shall be made without regard
303-20   to:
303-21               (1)  the race, color, religion, sex, disability,
303-22   familial status, or national origin of the appointee; or
303-23               (2)  the appointee's membership in an appraisal
303-24   organization.  (V.A.C.S. Art. 6573a.2, Secs. 6(a) (part), (b), (c)
303-25   (part), (d).)
303-26         Sec. 1103.053.  QUALIFICATIONS OF APPOINTED MEMBERS. (a)  An
303-27   appointed member of the board must be a qualified voter of this
 304-1   state.
 304-2         (b)  A person appointed to the board qualifies by taking the
 304-3   constitutional oath of office not later than the 15th day after the
 304-4   date of appointment. (V.A.C.S. Art. 6573a.2, Secs. 6(c) (part), (f)
 304-5   (part).)
 304-6         Sec. 1103.054.  ELIGIBILITY OF PUBLIC MEMBERS. A person is
 304-7   not eligible for appointment as a public member of the board if the
 304-8   person or the person's spouse:
 304-9               (1)  is a certified or licensed appraiser;
304-10               (2)  is certified or licensed by an occupational
304-11   regulatory agency in the field of real estate brokerage or
304-12   appraisal;
304-13               (3)  owns or controls, directly or indirectly, a
304-14   business entity or other organization whose primary purpose is to
304-15   engage in real estate sales, brokerage, or appraisal; or
304-16               (4)  is employed by or participates in the management
304-17   of a business entity or other organization whose primary purpose is
304-18   to engage in real estate sales, brokerage, or appraisal.  (V.A.C.S.
304-19   Art. 6573a.2, Sec. 6(e).)
304-20         Sec. 1103.055.  TERMS. (a)  Appointed members of the board
304-21   serve staggered two-year terms, with the terms of two appraiser
304-22   members and two public members expiring on January 31 of each year.
304-23         (b)  An appointed member may not serve more than three
304-24   consecutive two-year terms.  (V.A.C.S. Art. 6573a.2, Sec. 6(f)
304-25   (part).)
304-26         Sec. 1103.056.  OFFICERS; EXECUTIVE COMMITTEE. (a)  At a
304-27   regular meeting in February of each year, the board shall elect
 305-1   from its members a presiding officer, assistant presiding officer,
 305-2   and  secretary.
 305-3         (b)  The officers elected under Subsection (a) constitute the
 305-4   executive committee.  (V.A.C.S. Art. 6573a.2, Sec. 6(f) (part).)
 305-5         Sec. 1103.057.  GROUNDS FOR REMOVAL. (a)  It is a ground for
 305-6   removal from the board that an appointed member:
 305-7               (1)  does not have at the time of appointment the
 305-8   qualifications required by this subchapter for appointment to the
 305-9   board;
305-10               (2)  does not maintain during service on the board the
305-11   qualifications required by this subchapter for appointment to the
305-12   board;
305-13               (3)  cannot, because of illness or disability,
305-14   discharge the member's duties for a substantial part of the
305-15   member's term; or
305-16               (4)  is absent from more than half of the regularly
305-17   scheduled board meetings that the member is eligible to attend
305-18   during a calendar year, unless the absence is excused by a majority
305-19   vote of the board.
305-20         (b)  The validity of an action of the board is not affected
305-21   by the fact that it is taken when a ground for removal of an
305-22   appointed board member exists.
305-23         (c)  If the presiding officer of the board has knowledge that
305-24   a potential ground for removal of an appointed board member exists,
305-25   the presiding officer shall immediately notify the governor.
305-26   (V.A.C.S. Art. 6573a.2, Secs. 6(g), (h), (i).)
305-27         Sec. 1103.058.  PER DIEM; REIMBURSEMENT. An appointed board
 306-1   member is entitled to receive:
 306-2               (1)  $75 for each day the member engages in official
 306-3   duties as a board member; and
 306-4               (2)  reimbursement for actual and necessary expenses
 306-5   incurred in performing official duties as a board member.
 306-6   (V.A.C.S. Art. 6573a.2, Sec. 6(j).)
 306-7         Sec. 1103.059.  QUASI-JUDICIAL IMMUNITY. A member of the
 306-8   board is entitled to quasi-judicial immunity from suit for an
 306-9   action that:
306-10               (1)  is taken as a member of the board; and
306-11               (2)  is in compliance with the law.  (V.A.C.S.
306-12   Art. 6573a.2, Sec. 12A(o).)
306-13           (Sections 1103.060-1103.100 reserved for expansion)
306-14          SUBCHAPTER C.  COMMISSIONER AND OTHER BOARD PERSONNEL
306-15         Sec. 1103.101.  COMMISSIONER. (a)  The board shall employ a
306-16   commissioner.
306-17         (b)  The board may delegate to the commissioner the
306-18   responsibility for administering this chapter.  (V.A.C.S.
306-19   Art. 6573a.2, Sec. 6(k) (part).)
306-20         Sec. 1103.102.  OTHER BOARD PERSONNEL. In addition to the
306-21   commissioner, the board may employ other officers and employees as
306-22   necessary to administer this chapter.  (V.A.C.S. Art. 6573a.2, Sec.
306-23   6(k) (part).)
306-24         Sec. 1103.103.  SALARIES. (a)  The board shall determine the
306-25   salaries of the commissioner, officers, and employees of the board.
306-26         (b)  The amounts of the salaries may not exceed the amounts
306-27   specified by the General Appropriations Act.  (V.A.C.S.
 307-1   Art. 6573a.2, Sec. 6(k) (part).)
 307-2         Sec. 1103.104.  DUTIES OF COMMISSIONER. The commissioner
 307-3   shall:
 307-4               (1)  disseminate information;
 307-5               (2)  administer rules adopted by the board under this
 307-6   chapter;
 307-7               (3)  review each application for a certificate or
 307-8   license and make a recommendation for final action to the board;
 307-9               (4)  review and make recommendations to the board
307-10   regarding the adoption of rules relating to:
307-11                     (A)  the examination required by Subchapter F;
307-12                     (B)  education and experience requirements for
307-13   issuance of certificates and licenses;
307-14                     (C)  continuing education for a certified or
307-15   licensed appraiser;
307-16                     (D)  standards of professional practice and
307-17   ethics for a certified or licensed appraiser;
307-18                     (E)  standards for a real estate appraisal
307-19   performed by a certified or licensed appraiser; and
307-20                     (F)  the fees established by the board under
307-21   Section 1103.156;
307-22               (5)  collect fees established by the board; and
307-23               (6)  perform any other duty prescribed by the board
307-24   under this chapter.  (V.A.C.S. Art. 6573a.2, Sec. 7.)
307-25           (Sections 1103.105-1103.150 reserved for expansion)
307-26                 SUBCHAPTER D.  BOARD POWERS AND DUTIES
307-27         Sec. 1103.151.  RULES RELATING TO CERTIFICATES AND LICENSES.
 308-1   The board may adopt:
 308-2               (1)  rules for certifying or licensing an appraiser in
 308-3   this state that are in accordance with this chapter and consistent
 308-4   with, but not more stringent than, applicable federal law;
 308-5               (2)  rules relating to the education and experience
 308-6   required for certifying or licensing an appraiser that are
 308-7   consistent with, but not more stringent than, the guidelines
 308-8   recognized by the Appraisal Subcommittee;
 308-9               (3)  rules relating to the examination required by
308-10   Subchapter F; and
308-11               (4)  rules relating to procedures for the timely
308-12   renewal of a certificate or license.  (V.A.C.S. Art. 6573a.2, Secs.
308-13   5(a) (part), 14(c).)
308-14         Sec. 1103.152.  APPRAISER CERTIFICATE AND LICENSE CATEGORIES.
308-15   (a)  In this section, "Appraisal Standards Board" means the
308-16   Appraisal Standards Board of the Appraisal Foundation, or its
308-17   successor.
308-18         (b)  The board may:
308-19               (1)  establish certificate and license categories that
308-20   are consistent with the categories recognized by the Appraiser
308-21   Qualifications Board, the Appraisal Standards Board, and the
308-22   Appraisal Subcommittee; and
308-23               (2)  prescribe qualifications for each category that
308-24   are not more stringent than the qualifications established for that
308-25   category by the Appraiser Qualifications Board, the Appraisal
308-26   Standards Board, and the Appraisal Subcommittee.  (V.A.C.S.
308-27   Art. 6573a.2, Secs. 3(2), 5(a) (part).)
 309-1         Sec. 1103.153.  RULES RELATING TO CONTINUING EDUCATION. The
 309-2   board may adopt rules relating to continuing education requirements
 309-3   for a certified or licensed appraiser.  (V.A.C.S. Art. 6573a.2,
 309-4   Sec. 5(a) (part).)
 309-5         Sec. 1103.154.  RULES RELATING TO PROFESSIONAL CONDUCT. The
 309-6   board may adopt:
 309-7               (1)  rules as necessary to conform to the minimum
 309-8   written standards of the Appraisal Subcommittee by incorporating
 309-9   the Uniform Standards of Professional Appraisal Practice;
309-10               (2)  rules requiring a certified or licensed appraiser
309-11   to comply with standards of competency, professional conduct, and
309-12   ethics generally accepted by the Appraisal Subcommittee and
309-13   prescribed by the Uniform Standards of Professional Appraisal
309-14   Practice, as adopted by the Appraisal Foundation; and
309-15               (3)  rules relating to the standards for the
309-16   development of an appraisal and the conveyance of an appraisal
309-17   report by a certified or licensed appraiser that are consistent
309-18   with the Uniform Standards of Professional Appraisal Practice.
309-19   (V.A.C.S. Art. 6573a.2, Sec. 5(a) (part).)
309-20         Sec. 1103.155.  ROSTER. (a)  The board shall maintain a
309-21   roster of persons who are certified or licensed under this chapter.
309-22         (b)  The roster must indicate the type of certificate or
309-23   license held by each person listed.
309-24         (c)  The board shall send a copy of the roster to the
309-25   Appraisal Subcommittee at least annually.  (V.A.C.S. Art. 6573a.2,
309-26   Secs. 13(a), (b).)
309-27         Sec. 1103.156.  FEES. (a)  The board may establish reasonable
 310-1   fees to administer this chapter, including:
 310-2               (1)  an application fee for a certificate or license;
 310-3               (2)  an examination fee;
 310-4               (3)  a renewal fee for a certificate or license;
 310-5               (4)  a registration fee for a nonresident real estate
 310-6   appraiser;
 310-7               (5)  an application fee for an appraiser trainee;
 310-8               (6)  an annual renewal fee for an appraiser trainee;
 310-9   and
310-10               (7)  other appropriate fees.
310-11         (b)  The board shall collect from each certified or licensed
310-12   appraiser an annual registry fee in an amount established by the
310-13   board not to exceed the amount required by the Appraisal
310-14   Subcommittee.  The board shall deposit the registry fees to the
310-15   credit of the appraiser registry account in the general revenue
310-16   fund.
310-17         (c)  The fees collected under Subsection (b) shall be sent to
310-18   the Appraisal Subcommittee regularly as required by federal law.
310-19   (V.A.C.S. Art. 6573a.2, Secs. 5(a) (part), 13(c), (d), 15(b), 17(a)
310-20   (part).)
310-21           (Sections 1103.157-1103.200 reserved for expansion)
310-22           SUBCHAPTER E.  CERTIFICATE AND LICENSE REQUIREMENTS
310-23         Sec. 1103.201.  CERTIFICATE OR LICENSE REQUIRED. (a)  Unless
310-24   the person is certified under this chapter, a person may not:
310-25               (1)  use the title "state-certified real estate
310-26   appraiser"; or
310-27               (2)  refer to an appraisal prepared by the person as a
 311-1   "certified appraisal."
 311-2         (b)  Unless the person is licensed under this chapter, a
 311-3   person may not:
 311-4               (1)  use the title "state-licensed real estate
 311-5   appraiser"; or
 311-6               (2)  refer to an appraisal prepared by the person as a
 311-7   "licensed appraisal."  (V.A.C.S. Art. 6573a.2, Secs. 4(a), (b).)
 311-8         Sec. 1103.202.  ELIGIBILITY REQUIREMENTS FOR CERTIFICATE. To
 311-9   be eligible for a certificate under this chapter, an applicant
311-10   must:
311-11               (1)  pass the examination required by Subchapter F;
311-12               (2)  successfully complete the number and type of
311-13   classroom hours required by the guidelines of the Appraisal
311-14   Subcommittee;
311-15               (3)  provide evidence satisfactory to the board that
311-16   the applicant has at least the minimum number of hours of
311-17   experience in performing appraisals over the specified number of
311-18   calendar years as required by the guidelines of the Appraisal
311-19   Subcommittee; and
311-20               (4)  satisfy the board as to the applicant's honesty,
311-21   trustworthiness, and integrity.  (V.A.C.S. Art. 6573a.2, Secs.
311-22   9(a), (i) (part).)
311-23         Sec. 1103.203.  ELIGIBILITY REQUIREMENTS FOR LICENSE. To be
311-24   eligible for a license under this chapter, an applicant must:
311-25               (1)  pass the examination required by Subchapter F;
311-26               (2)  successfully complete at least 75 classroom hours
311-27   in subjects determined by the board to be related to real estate
 312-1   appraisal, including at least 15 classroom hours covering the
 312-2   Uniform Standards of Professional Appraisal Practice;
 312-3               (3)  provide evidence satisfactory to the board that
 312-4   the applicant has the equivalent of 2,000 hours of experience in
 312-5   performing appraisals; and
 312-6               (4)  satisfy the board as to the applicant's honesty,
 312-7   trustworthiness, and integrity.  (V.A.C.S. Art. 6573a.2, Secs.
 312-8   9(b), (i) (part).)
 312-9         Sec. 1103.204.  FULFILLMENT OF EDUCATION REQUIREMENTS. (a)
312-10   In this section, "real estate-related financial transaction" means
312-11   a transaction involving:
312-12               (1)  selling, leasing, purchasing, exchanging,
312-13   investing in, or financing real property or an interest in real
312-14   property;
312-15               (2)  refinancing real property or an interest in real
312-16   property; or
312-17               (3)  using real property or an interest in real
312-18   property as security for a loan or investment, including a
312-19   mortgage-backed security.
312-20         (b)  This chapter does not limit the amount of time in which
312-21   an applicant for a certificate or license is required to satisfy
312-22   the education requirements under this subchapter.
312-23         (c)  The board shall give an applicant for a certificate or
312-24   license credit toward fulfilling the requirements of Sections
312-25   1103.202(2) and 1103.203(2) for classroom hours taken in the course
312-26   of becoming licensed as a real estate broker or salesperson or for
312-27   professional development or continuing education courses taken,
 313-1   whether the classroom hours or courses are taken by a person as a
 313-2   real estate broker or salesperson or as an employee of a financial
 313-3   institution engaged in real estate-related financial transactions,
 313-4   if the classroom hours or courses satisfy the requirements
 313-5   established by the guidelines recognized by the Appraisal
 313-6   Subcommittee. (V.A.C.S. Art. 6573a.2, Secs. 3(11), 9(d) (part),
 313-7   (j).)
 313-8         Sec. 1103.205.  FULFILLMENT OF EXPERIENCE REQUIREMENTS. (a)
 313-9   Except as provided by Section 1103.208, this chapter does not limit
313-10   the amount of time in which an applicant for a certificate or
313-11   license is required to satisfy the experience requirements under
313-12   this subchapter.
313-13         (b)  An applicant for a certificate or license must provide
313-14   an affidavit on a form prescribed by the board stating that the
313-15   applicant has the required number of hours of experience in
313-16   performing appraisals as established by the guidelines recognized
313-17   by the Appraisal Subcommittee.
313-18         (c)  For the purpose of determining the qualifications of an
313-19   applicant for a certificate or license under this chapter,
313-20   acceptable appraisal experience includes:
313-21               (1)  any one or any combination of the categories
313-22   recognized by the guidelines of the Appraisal Subcommittee; and
313-23               (2)  experience as a real estate lending officer of a
313-24   financial institution or as a real estate broker that includes the
313-25   actual performance or technical review of real estate appraisals.
313-26         (d)  For purposes of this subchapter, an hour of experience
313-27   means 60 minutes spent in one or more of the acceptable areas of
 314-1   appraisal experience recognized under this subchapter.  Calculation
 314-2   of the hours of experience must be based solely on actual hours of
 314-3   experience.  (V.A.C.S. Art. 6573a.2, Secs. 9(c), (d) (part), (g).)
 314-4         Sec. 1103.206.  VERIFICATION OF EDUCATION AND EXPERIENCE. (a)
 314-5   The board shall adopt a reliable method to verify the evidence of
 314-6   education submitted by an applicant for a certificate or license.
 314-7         (b)  The board shall adopt a reliable method to verify the
 314-8   evidence of appraisal experience submitted by an applicant for a
 314-9   certificate or license.  The method must rely on appropriate
314-10   sampling techniques that are applied to not more than five percent
314-11   of the applications received by the board.  An applicant whose
314-12   application is selected for verification has at least 60 days after
314-13   the date of selection to prepare any records.  The board may not
314-14   require the applicant to provide more information than the
314-15   information the board may obtain under Section 1103.207.  (V.A.C.S.
314-16   Art. 6573a.2, Secs. 9(e), (f).)
314-17         Sec. 1103.207.  ADDITIONAL INFORMATION FROM CERTAIN
314-18   APPLICANTS. (a)  In addition to the information or documentation
314-19   specified by this subchapter, the board may obtain other
314-20   information or documentation from an applicant for a certificate or
314-21   license under this chapter if the board determines that:
314-22               (1)  a consumer complaint or peer complaint against the
314-23   applicant alleging fraud, incompetency, or malpractice is
314-24   reasonable; or
314-25               (2)  other just cause exists for requiring further
314-26   information.
314-27         (b)  The board may obtain the additional information or
 315-1   documentation by:
 315-2               (1)  requiring the applicant to complete a form
 315-3   prescribed by the board that includes a detailed listing of the
 315-4   applicant's appraisal experience and states for each appraisal
 315-5   claimed by the applicant:
 315-6                     (A)  the municipality or county in which the
 315-7   appraisal was performed;
 315-8                     (B)  the type and description of the building or
 315-9   property appraised;
315-10                     (C)  the approach to value used in the appraisal;
315-11                     (D)  the actual number of hours spent on the
315-12   appraisal; and
315-13                     (E)  any other information determined appropriate
315-14   by the board; or
315-15               (2)  engaging in other investigative research
315-16   determined appropriate by the board.  (V.A.C.S. Art. 6573a.2, Sec.
315-17   9(h).)
315-18         Sec. 1103.208.  PROVISIONAL LICENSE FOR CERTAIN APPRAISER
315-19   TRAINEES. (a)  An applicant for appraiser trainee classification
315-20   who demonstrates to the board that the applicant, after completing
315-21   the classroom education requirements, has failed to secure
315-22   sponsorship from at least two certified appraisers to satisfy the
315-23   experience requirement of Section 1103.203(3) may apply to the
315-24   board to take the examination required by Subchapter F.
315-25         (b)  The board shall issue a license under this section to an
315-26   applicant who:
315-27               (1)  passes the examination required by Subchapter F;
 316-1   and
 316-2               (2)  satisfies any other requirements for a license,
 316-3   other than the experience requirement of Section 1103.203(3).
 316-4         (c)  A license issued under Subsection (b) is subject to
 316-5   automatic revocation if the person fails to:
 316-6               (1)  complete the experience requirement under Section
 316-7   1103.203(3) not later than the 60th month after the date the
 316-8   license is issued; or
 316-9               (2)  report the completion of a portion of the person's
316-10   experience requirement each renewal period.  (V.A.C.S.
316-11   Art. 6573a.2, Sec. 9A.)
316-12         Sec. 1103.209.  RECIPROCAL CERTIFICATE OR LICENSE. (a)  The
316-13   board may issue a certificate or license under terms adopted by the
316-14   board to an applicant who is certified or licensed under the laws
316-15   of another state having certification or licensing requirements
316-16   that the board determines have not been disapproved by the
316-17   Appraisal Subcommittee. The terms must comply with the minimum
316-18   criteria for obtaining a certificate or license recognized by the
316-19   Appraisal Subcommittee.
316-20         (b)  The board may not accept an application from an
316-21   applicant from another state that refuses to offer reciprocal
316-22   treatment to residents of this state who are certified or licensed
316-23   under this chapter.
316-24         (c)  The application form submitted for a reciprocal
316-25   certificate or license under this section must be comparable to the
316-26   form required by the state in which the appraiser is certified or
316-27   licensed.
 317-1         (d)  The fee charged to an appraiser from another state for a
 317-2   reciprocal certificate or license under this section must be
 317-3   comparable to the fee required by the state in which the appraiser
 317-4   is certified or licensed.  A person who obtains a certificate or
 317-5   license by reciprocity under this section must pay the federal
 317-6   registry fee and any other fee the board imposes.
 317-7         (e)  An applicant for a certificate or license under this
 317-8   chapter who is not a resident of this state must submit with the
 317-9   application an irrevocable consent that states that service of
317-10   process in an action against the applicant arising out of the
317-11   applicant's activities as a certified or licensed appraiser in this
317-12   state may be made by delivery of the process to the commissioner if
317-13   the plaintiff in the action, using due diligence, cannot obtain
317-14   personal service on the applicant.  If process is served as
317-15   provided by this subsection, the commissioner shall immediately
317-16   send a copy of the material served on the commissioner by regular
317-17   mail to the certified or licensed appraiser at the appraiser's
317-18   principal place of business and residence address.
317-19         (f)  The board shall request verification from the state in
317-20   which the applicant is certified or licensed to confirm that the
317-21   applicant's certificate or license is valid and in good standing.
317-22   The board may not issue a reciprocal certificate or license without
317-23   that verification.
317-24         (g)  A reciprocal certificate or license expires on the
317-25   earlier of:
317-26               (1)  the expiration date of the certificate or license
317-27   held by the applicant in the state in which the applicant is
 318-1   certified or licensed; or
 318-2               (2)  the first anniversary of the date the reciprocal
 318-3   certificate or license is issued.
 318-4         (h)  A reciprocal certificate or license is renewable under
 318-5   terms adopted by the board.  (V.A.C.S. Art. 6573a.2, Secs. 15(d),
 318-6   (e), (f), (g), (h), (i), (j).)
 318-7         Sec. 1103.210.  DENIAL OF CERTIFICATE OR LICENSE. (a) The
 318-8   board shall immediately provide written notice to the applicant of
 318-9   the board's denial of a certificate or license under this chapter.
318-10         (b)  An appeal of the denial of a certificate or license is
318-11   governed by Chapter 2001, Government Code.  (V.A.C.S. Art. 6573a.2,
318-12   Sec. 11.)
318-13         Sec. 1103.211.  CERTIFICATE OR LICENSE RENEWAL; CONTINUING
318-14   EDUCATION. (a)  A certificate or license issued by the board
318-15   expires on the second anniversary of the date of issuance.
318-16         (b)  A person may renew a certificate or license by:
318-17               (1)  paying the renewal fee; and
318-18               (2)  providing evidence satisfactory to the board that
318-19   the person has completed continuing education requirements that
318-20   comply with the guidelines recognized by the Appraisal Subcommittee
318-21   and that are imposed by rule under this chapter.
318-22         (c)  For purposes of Subsection (b)(2), the board shall
318-23   accept as continuing education any educational offering that
318-24   complies with the guidelines recognized by the Appraisal
318-25   Subcommittee that a certified or licensed appraiser was awarded by
318-26   a national appraiser organization approved by the board as a
318-27   provider of qualifying appraisal education.  (V.A.C.S.
 319-1   Art. 6573a.2, Secs. 14(a), (b).)
 319-2           (Sections 1103.212-1103.250 reserved for expansion)
 319-3                  SUBCHAPTER F.  APPRAISER EXAMINATION
 319-4         Sec. 1103.251.  EXAMINATION REQUIRED. (a)  The board shall
 319-5   prescribe an appraiser examination.
 319-6         (b)  The examination must be:
 319-7               (1)  written;
 319-8               (2)  approved by the Appraisal Foundation; and
 319-9               (3)  consistent with, but not more stringent than, the
319-10   Uniform State Certification/Licensing Examination guidelines
319-11   endorsed by the Appraiser Qualifications Board.  (V.A.C.S.
319-12   Art. 6573a.2, Sec. 10(a) (part).)
319-13         Sec. 1103.252.  TESTING SERVICE. (a)  The board may contract
319-14   with a testing service to administer the examination.
319-15         (b)  The testing service may collect an examination fee from
319-16   an applicant for a certificate or license.  (V.A.C.S. Art. 6573a.2,
319-17   Sec. 10(a) (part).)
319-18         Sec. 1103.253.  TIME AND PLACE OF EXAMINATION; NOTICE. (a)
319-19   The examination must be offered at least twice each year.
319-20         (b)  The board shall determine the time and place of the
319-21   examination.
319-22         (c)  The board shall give reasonable public notice of the
319-23   examination in the manner provided by board rule.
319-24         (d)  The board may assign an examination date and site to an
319-25   applicant.  The assigned site must be the nearest examination site
319-26   available to the applicant.  (V.A.C.S. Art. 6573a.2, Sec. 10(d).)
319-27         Sec. 1103.254.  EXAMINATION APPLICATION. An application to
 320-1   take the examination must be on a form prescribed by the board.
 320-2   (V.A.C.S. Art. 6573a.2, Sec. 10(b).)
 320-3         Sec. 1103.255.  EXPERIENCE NOT REQUIRED BEFORE TAKING
 320-4   EXAMINATION. An applicant for the examination is not required to
 320-5   fulfill the experience requirement for a certificate before taking
 320-6   the examination.  (V.A.C.S. Art. 6573a.2, Sec. 10(c).)
 320-7         Sec. 1103.256.  MINIMUM PASSING GRADE REQUIRED. To pass the
 320-8   examination, an applicant for a certificate or license must achieve
 320-9   the minimum score required or approved by the Appraiser
320-10   Qualifications Board, whichever is lower.  (V.A.C.S. Art. 6573a.2,
320-11   Sec. 10(e) (part).)
320-12         Sec. 1103.257.  EXAMINATION RESULTS. (a)  Not later than the
320-13   31st day after the date a person takes an examination, the board
320-14   shall notify the person of the examination results.  If an
320-15   examination is graded or reviewed by a national testing service,
320-16   the board shall notify the person of the examination results not
320-17   later than the 31st day after the date the board receives the
320-18   results from the testing service.
320-19         (b)  If notice of the examination results will be delayed for
320-20   more than 90 days after the examination date, the board shall
320-21   notify each examinee of the reason for the delay not later than the
320-22   90th day.
320-23         (c)  If requested in writing by a person who fails an
320-24   examination, the board shall provide to the person an analysis of
320-25   the person's performance on the examination.  The request must be
320-26   accompanied by a notarized statement identifying the person and a
320-27   fee in an amount determined by the board. The board shall release
 321-1   the analysis directly to the person requesting the analysis.
 321-2         (d)  The examination results are confidential.  (V.A.C.S.
 321-3   Art. 6573a.2, Secs. 10(e) (part), (f), (g), (i).)
 321-4         Sec. 1103.258.  REEXAMINATION. (a)  An applicant who fails an
 321-5   examination may apply to retake the examination on payment of an
 321-6   additional examination fee.
 321-7         (b)  The applicant must apply to retake the examination not
 321-8   later than the first anniversary of the date of the examination the
 321-9   applicant failed. (V.A.C.S. Art. 6573a.2, Sec. 10(h).)
321-10         Sec. 1103.259.  GUIDELINES; STUDY GUIDES. (a)  The board
321-11   shall:
321-12               (1)  periodically publish guidelines and preexamination
321-13   study guides;
321-14               (2)  make the guidelines and study guides available to
321-15   applicants; and
321-16               (3)  update the guidelines and study guides as
321-17   necessary.
321-18         (b)  Except for the examination and other testing products
321-19   that require secure and discreet protection, the contents of study
321-20   guides and other material developed by the board or with the
321-21   board's authorization are within the public domain and free of
321-22   copyright restrictions.
321-23         (c)  If material described by Subsection (b) is reproduced
321-24   for distribution by an entity other than the board:
321-25               (1)  the material may not be sold at a price that
321-26   exceeds the cost of reproduction and distribution; and
321-27               (2)  the entity may not profit from the distribution of
 322-1   the material.  (V.A.C.S. Art. 6573a.2, Sec. 10(j).)
 322-2           (Sections 1103.260-1103.300 reserved for expansion)
 322-3      SUBCHAPTER G.  TEMPORARY APPRAISAL AUTHORITY FOR OUT-OF-STATE
 322-4                               APPRAISERS
 322-5         Sec. 1103.301.  REGISTRATION REQUIRED. A person certified or
 322-6   licensed as a real estate appraiser by another state may appraise
 322-7   real property in this state without holding a certificate or
 322-8   license issued under this chapter if the person registers with the
 322-9   board under this subchapter.  (V.A.C.S. Art. 6573a.2, Secs. 15(a)
322-10   (part), (c) (part).)
322-11         Sec. 1103.302.  REGISTRATION APPLICATION. A person may
322-12   register with the board by:
322-13               (1)  completing a registration form prescribed by the
322-14   board; and
322-15               (2)  meeting the requirements established under this
322-16   chapter.  (V.A.C.S. Art. 6573a.2, Sec. 15(a) (part).)
322-17         Sec. 1103.303.  ELIGIBILITY REQUIREMENTS FOR REGISTRATION. A
322-18   person is eligible to register with the board if:
322-19               (1)  the certification and licensing program under
322-20   which the person is certified or licensed by another state has not
322-21   been disapproved by the Appraisal Subcommittee; and
322-22               (2)  the person's appraisal business in this state does
322-23   not exceed 60 days.  (V.A.C.S. Art. 6573a.2, Sec. 15(c) (part).)
322-24           (Sections 1103.304-1103.350 reserved for expansion)
322-25                    SUBCHAPTER H.  APPRAISER TRAINEES
322-26         Sec. 1103.351.  SPONSOR. (a)  The board may authorize a
322-27   certified appraiser under this chapter to sponsor an appraiser
 323-1   trainee.
 323-2         (b)  An appraiser trainee may have more than one sponsor.
 323-3   (V.A.C.S. Art. 6573a.2, Sec. 17(a) (part).)
 323-4         Sec. 1103.352.  APPLICATION FOR APPRAISER TRAINEE. An
 323-5   applicant for approval as an appraiser trainee and each sponsor of
 323-6   the applicant must apply to the board on a form prescribed by the
 323-7   board.  (V.A.C.S. Art. 6573a.2, Sec. 17(a) (part).)
 323-8         Sec. 1103.353.  ELIGIBILITY REQUIREMENTS FOR APPRAISER
 323-9   TRAINEE. To be eligible for approval as an appraiser trainee, an
323-10   applicant must:
323-11               (1)  be at least 18 years of age;
323-12               (2)  be a citizen of the United States or a lawfully
323-13   admitted alien;
323-14               (3)  have been a resident of this state for the 60 days
323-15   preceding the date the application is filed; and
323-16               (4)  satisfy the board as to the applicant's honesty,
323-17   trustworthiness, and integrity.  (V.A.C.S. Art. 6573a.2, Sec. 17(a)
323-18   (part).)
323-19         Sec. 1103.354.  APPRAISER TRAINEE REPORTS. (a)  An appraiser
323-20   trainee approved by the board may perform an appraisal under the
323-21   direction of a sponsor of the trainee.
323-22         (b)  The sponsor shall sign each report prepared by the
323-23   appraiser trainee. If an appraiser trainee has more than one
323-24   sponsor, one sponsor shall sign the reports prepared by the
323-25   appraiser trainee.  A sponsor who signs a report is responsible to
323-26   the public and to the board for the appraiser trainee's conduct.
323-27         (c)  An appraiser trainee may co-sign a report prepared under
 324-1   this section.  (V.A.C.S. Art. 6573a.2, Sec. 17(b) (part).)
 324-2         Sec. 1103.355.  DISCIPLINARY PROCEDURES FOR APPRAISER
 324-3   TRAINEES. (a)  The board may reprimand an appraiser trainee or
 324-4   suspend or revoke an appraiser trainee's authority to act as an
 324-5   appraiser trainee for a violation of this chapter or a rule adopted
 324-6   under this subchapter.
 324-7         (b)  A disciplinary proceeding under this section is governed
 324-8   by Chapter 2001, Government Code.  (V.A.C.S. Art. 6573a.2, Sec.
 324-9   17(b) (part).)
324-10           (Sections 1103.356-1103.400 reserved for expansion)
324-11       SUBCHAPTER I.  PRACTICE BY CERTIFIED OR LICENSED APPRAISER
324-12         Sec. 1103.401.  USE OF INSIGNIA OR IDENTIFICATION. (a)  A
324-13   person may not use any title, designation, initials, or other
324-14   insignia or identification that would mislead the public as to the
324-15   person's credentials, qualifications, or competency to perform a
324-16   certified appraisal service unless the person is certified under
324-17   this chapter.
324-18         (b)  A person may not use any title, designation, initials,
324-19   or other insignia or identification that would mislead the public
324-20   as to the person's credentials, qualifications, or competency to
324-21   perform licensed appraisal services unless the person is licensed
324-22   under this chapter. (V.A.C.S. Art. 6573a.2, Sec. 4(c).)
324-23         Sec. 1103.402.  SIGNATURE OR ENDORSEMENT ON APPRAISAL. (a)  A
324-24   person certified or licensed under this chapter may not sign or
324-25   endorse an appraisal unless the appraisal is substantially produced
324-26   by that person.
324-27         (b)  For purposes of this section, an appraisal is
 325-1   substantially produced by a person who contributes in a material
 325-2   and verifiable manner to the research or analysis that results in
 325-3   the final opinion of value expressed in the appraisal.  (V.A.C.S.
 325-4   Art. 6573a.2, Sec. 19.)
 325-5         Sec. 1103.403.  OFFICE LOCATION. (a)  A certified or licensed
 325-6   appraiser who is a resident of this state shall maintain a fixed
 325-7   office in this state.
 325-8         (b)  Not later than the 10th day after the date a certified
 325-9   or licensed appraiser moves from a previously designated address,
325-10   the appraiser shall:
325-11               (1)  notify the board of the new office location on a
325-12   form prescribed by the board; and
325-13               (2)  pay a fee set by the board.  (V.A.C.S.
325-14   Art. 6573a.2, Sec. 16.)
325-15         Sec. 1103.404.  BUSINESS RECORDS. A person who is certified
325-16   or licensed under this chapter or who has applied for a certificate
325-17   or license shall retain all business records relating to each
325-18   appraisal performed by the person until at least the fifth
325-19   anniversary of the date of the appraisal.  (V.A.C.S. Art. 6573a.2,
325-20   Sec. 20.)
325-21           (Sections 1103.405-1103.450 reserved for expansion)
325-22            SUBCHAPTER J.  DISCIPLINARY PROCEEDINGS GENERALLY
325-23         Sec. 1103.451.  COMPLAINT. (a)  Any person, including a
325-24   member of the board, may initiate the complaint process under this
325-25   subchapter by filing with the board an affidavit stating the
325-26   complaint on a form prescribed by the board.
325-27         (b)  The board, on its own motion, may file a formal
 326-1   complaint against a certified or licensed appraiser.
 326-2         (c)  A complaint alleging that a certified or licensed
 326-3   appraiser has violated a rule of professional conduct adopted by
 326-4   the board must be filed with the board.  (V.A.C.S. Art. 6573a.2,
 326-5   Sec. 12(b).)
 326-6         Sec. 1103.452.  REVIEW AND INVESTIGATION. (a)  On receipt of
 326-7   a complaint or on its own motion, the board shall review and
 326-8   investigate an alleged act or omission that the board believes is a
 326-9   ground for disciplinary action.
326-10         (b)  An investigator designated by the presiding officer of
326-11   the board shall investigate each allegation in a complaint to
326-12   determine whether probable cause exists for a hearing on the
326-13   complaint.
326-14         (c)  If the board determines that a complaint does not
326-15   present facts that are grounds for disciplinary action, the board
326-16   may not take further action.  (V.A.C.S. Art. 6573a.2, Sec. 12(c).)
326-17         Sec. 1103.453.  PEER INVESTIGATIVE COMMITTEE. (a)  The
326-18   presiding officer of the board, with the advice and consent of the
326-19   executive committee, may appoint a peer investigative committee.
326-20         (b)  A peer investigative committee consists of three
326-21   certified or licensed appraisers.  The presiding officer of the
326-22   committee must be an appraiser member of the board.  Each remaining
326-23   committee member shall certify to the board that the member is
326-24   familiar with the appraisal process in the appraisal that is the
326-25   subject of the complaint.
326-26         (c)  The peer investigative committee shall:
326-27               (1)  review and determine the facts of a complaint; and
 327-1               (2)  submit a written report regarding the complaint to
 327-2   the board in a timely manner.  (V.A.C.S. Art. 6573a.2, Sec. 12(d).)
 327-3         Sec. 1103.454.  GENERAL SUBPOENA AUTHORITY. (a)  The board
 327-4   may request and, if necessary, compel by subpoena:
 327-5               (1)  the attendance of witnesses for examination under
 327-6   oath; and
 327-7               (2)  the production of records, documents, and other
 327-8   evidence relevant to the investigation of an alleged violation of
 327-9   this chapter for inspection and copying.
327-10         (b)  The board may also issue a subpoena for purposes of an
327-11   investigation of a complaint to determine whether the board should
327-12   institute a contested case proceeding.
327-13         (c)  If a person does not comply with a subpoena, the board,
327-14   acting through the attorney general, may file suit to enforce the
327-15   subpoena in a district court in Travis County or in the county in
327-16   which a hearing conducted by the board may be held.
327-17         (d)  The court shall order compliance with the subpoena if
327-18   the court finds that good cause exists for the issuance of the
327-19   subpoena. (V.A.C.S. Art. 6573a.2, Secs. 5(a) (part), (b) (part),
327-20   12(e).)
327-21         Sec. 1103.455.  REPORT OF INVESTIGATION REQUIRED. (a)  At the
327-22   conclusion of the investigation of a complaint, the investigator
327-23   shall submit to the board a written report to enable the board to
327-24   determine what further action is necessary.
327-25         (b)  The report must contain:
327-26               (1)  statements of fact;
327-27               (2)  the recommendations of the investigator; and
 328-1               (3)  the position or defense of the investigated
 328-2   appraiser. (V.A.C.S. Art. 6573a.2, Sec. 12(f) (part).)
 328-3         Sec. 1103.456.  BOARD ACTION BASED ON REPORT. Based on the
 328-4   report submitted under Section 1103.455, the board may:
 328-5               (1)  order further investigation of the complaint;
 328-6               (2)  permit the appraiser who is the subject of the
 328-7   complaint to appear before the board for an informal discussion as
 328-8   provided by Section 1103.457;
 328-9               (3)  determine that there is not probable cause to
328-10   believe that a violation occurred and dismiss the case; or
328-11               (4)  determine that there is probable cause to believe
328-12   that a violation occurred and proceed as the complainant with a
328-13   contested case hearing under Subchapter K.  (V.A.C.S. Art. 6573a.2,
328-14   Sec. 12(f) (part).)
328-15         Sec. 1103.457.  INFORMAL DISCUSSION OF COMPLAINT. (a)  On the
328-16   motion of the board or on request of the appraiser who is the
328-17   subject of a complaint, the board may permit the appraiser an
328-18   opportunity to appear before the board for a voluntary, informal
328-19   discussion of the facts and circumstances of the alleged violation.
328-20         (b)  The informal discussion is part of the board's
328-21   investigation of the complaint, and the board may consider the
328-22   facts addressed at the informal discussion if the complaint
328-23   proceeds to a contested case hearing under Subchapter K.
328-24         (c)  The board may seek a consent order as provided by
328-25   Section 1103.458 at the time of the informal discussion. (V.A.C.S.
328-26   Art. 6573a.2, Sec. 12(g).)
328-27         Sec. 1103.458.  CONSENT ORDER. (a)  The board may negotiate a
 329-1   settlement and enter into a consent order with an appraiser who is
 329-2   the subject of a complaint under this subchapter.
 329-3         (b)  The attorney general may discuss informal settlement
 329-4   with the presiding officer or a representative of the board.  An
 329-5   appraiser member of the board, designated by the presiding officer
 329-6   of the board, and the attorney general may agree to negotiate a
 329-7   settlement under this section.
 329-8         (c)  A consent order must be:
 329-9               (1)  approved by the board; and
329-10               (2)  signed by the presiding officer of the board and
329-11   the appraiser who is the subject of the complaint.
329-12         (d)  A board member who participates in negotiating a consent
329-13   order under this section is not disqualified from participating in
329-14   the adjudication of a contested case that results from the
329-15   negotiation.
329-16         (e)  An appraiser who consents to negotiate under this
329-17   section waives the right to notice and the opportunity to be heard
329-18   under Chapter 2001, Government Code, during the negotiation.
329-19         (f)  If the parties agree to a consent order, a statement of
329-20   charges shall be filed with the consent order.  (V.A.C.S.
329-21   Art. 6573a.2, Sec. 12(h).)
329-22         Sec. 1103.459.  CONSENT AGREEMENT. (a)  The board may enter
329-23   into a consent agreement as provided by this section rather than
329-24   taking action against a first-time violator of the rules of
329-25   professional conduct adopted by the board.
329-26         (b)  An appraiser member of the board, designated by the
329-27   presiding officer of the board, and the attorney general may agree
 330-1   to negotiate a consent agreement.
 330-2         (c)  A consent agreement must be:
 330-3               (1)  approved by the board; and
 330-4               (2)  signed by the presiding officer of the board and
 330-5   the appraiser who is the subject of the complaint.
 330-6         (d)  An appraiser may be prosecuted for failure to comply
 330-7   with a consent agreement.  (V.A.C.S. Art. 6573a.2, Sec. 12(i).)
 330-8         Sec. 1103.460.  PUBLIC AVAILABILITY OF FINAL DECISION. A
 330-9   final decision of the board relating to a disciplinary action,
330-10   including a consent order or consent agreement, may be provided to
330-11   another state or made available to the public.  (V.A.C.S.
330-12   Art. 6573a.2, Sec. 12A(n).)
330-13           (Sections 1103.461-1103.500 reserved for expansion)
330-14                 SUBCHAPTER K.  CONTESTED CASE HEARINGS
330-15         Sec. 1103.501.  APPLICABILITY OF ADMINISTRATIVE PROCEDURE
330-16   LAW. Except as otherwise provided by this chapter, a proceeding
330-17   under this chapter is subject to Chapter 2001, Government Code.
330-18   (V.A.C.S. Art. 6573a.2, Sec. 12(a).)
330-19         Sec. 1103.502.  NOTICE OF HEARING. (a)  The board shall
330-20   provide notice to the parties of a contested case hearing.
330-21         (b)  The notice must:
330-22               (1)  state the time and place of the hearing; and
330-23               (2)  state that the appraiser must submit an answer as
330-24   prescribed by Section 1103.505 not later than the 20th day after
330-25   the date the appraiser receives the notice.
330-26         (c)  Not later than the 30th day before the hearing date, the
330-27   board shall personally deliver or send by certified mail, return
 331-1   receipt requested, to the appraiser:
 331-2               (1)  the notice prescribed by this section; and
 331-3               (2)  the statement of charges prescribed by Section
 331-4   1103.503.  (V.A.C.S. Art. 6573a.2, Sec. 12A(a) (part).)
 331-5         Sec. 1103.503.  STATEMENT OF CHARGES. (a)  The attorney
 331-6   general shall prepare the statement of charges.
 331-7         (b)  The statement of charges must:
 331-8               (1)  state each act or omission with which the
 331-9   appraiser is charged, including any standard of professional
331-10   practice or rule of professional conduct alleged to have been
331-11   violated; and
331-12               (2)  be sufficiently detailed to enable the appraiser
331-13   to prepare a defense.  (V.A.C.S. Art. 6573a.2, Sec. 12A(a) (part).)
331-14         Sec. 1103.504.  ATTORNEY GENERAL REPRESENTATION. (a)  The
331-15   attorney general shall:
331-16               (1)  review and approve each statement of charges and
331-17   notice of hearing prepared by the board; and
331-18               (2)  provide legal representation for the public
331-19   interest in all proceedings before the board.
331-20         (b)  The attorney general shall represent the public interest
331-21   and may not represent the board in a contested case before the
331-22   board. (V.A.C.S. Art. 6573a.2, Sec. 12A(c).)
331-23         Sec. 1103.505.  ANSWER. The appraiser's answer must contain:
331-24               (1)  the name, address, and telephone number of the
331-25   appraiser;
331-26               (2)  a specific statement regarding any allegation in
331-27   the complaint, which must:
 332-1                     (A)  be in the form of an admission or denial;
 332-2   and
 332-3                     (B)  contain any explanation or other statement
 332-4   of mitigating circumstances the appraiser determines relevant; and
 332-5               (3)  any additional information the appraiser
 332-6   determines relevant to the investigation that may assist in
 332-7   deciding the contested case.  (V.A.C.S. Art. 6573a.2, Sec. 12A(b).)
 332-8         Sec. 1103.506.  DISCOVERY PROCEDURES. The discovery
 332-9   procedures that are applicable to a civil action are applicable to
332-10   a proceeding under this chapter. (V.A.C.S. Art. 6573a.2, Sec.
332-11   12A(e) (part).)
332-12         Sec. 1103.507.  SUBPOENA IN CONTESTED CASE. (a)  The
332-13   commissioner shall issue a subpoena to compel the attendance of a
332-14   witness or the production of records or other evidence if:
332-15               (1)  a party to the proceeding requests the subpoena
332-16   orally or in writing;
332-17               (2)  the request specifies each item of evidence sought
332-18   and the full name and address of each witness sought; and
332-19               (3)  the party shows reasonable cause.
332-20         (b)  A party or the board may petition the district court to
332-21   enforce a subpoena issued under this section.  If the party or the
332-22   board makes a proper showing, the district court shall order the
332-23   person to whom the subpoena is issued to obey the subpoena.
332-24   (V.A.C.S. Art. 6573a.2, Sec. 12A(e) (part).)
332-25         Sec. 1103.508.  HEARING BEFORE BOARD. (a)  A contested case
332-26   hearing may be conducted before a majority of the board members.
332-27         (b)  The board shall:
 333-1               (1)  set dates and times for the hearing;
 333-2               (2)  adopt rules for the hearing; and
 333-3               (3)  rule on all issues.
 333-4         (c)  The board may provide for an administrative law judge to
 333-5   act as presiding officer to conduct the hearing for the board.
 333-6         (d)  The designated presiding officer shall control the
 333-7   proceedings and may:
 333-8               (1)  administer oaths;
 333-9               (2)  admit or exclude testimony or other evidence; and
333-10               (3)  rule on all motions and objections.   (V.A.C.S.
333-11   Art. 6573a.2, Secs. 12A(d) (part), (g) (part).)
333-12         Sec. 1103.509.  CHALLENGE OF BOARD MEMBER. (a)  Before a
333-13   contested case hearing begins, the appraiser who is the subject of
333-14   the hearing may challenge for cause the participation of a board
333-15   member in the hearing.
333-16         (b)  The board members, with the challenged member
333-17   abstaining, shall decide by a majority vote whether:
333-18               (1)  cause exists for the challenge; and
333-19               (2)  the challenged member may participate in the
333-20   hearing.  (V.A.C.S. Art. 6573a.2, Sec. 12A(g) (part).)
333-21         Sec. 1103.510.  FAILURE TO APPEAR. (a)  If an appraiser
333-22   receives proper notice of a contested case hearing but does not
333-23   appear in person at the hearing, the board and presiding officer
333-24   may conduct the hearing or enter an order, as the board determines
333-25   appropriate.
333-26         (b)  The appraiser is bound by the results of the hearing to
333-27   the same extent as if the appraiser had appeared.  (V.A.C.S.
 334-1   Art. 6573a.2, Sec. 12A(f).)
 334-2         Sec. 1103.511.  OPEN HEARING. A contested case hearing is
 334-3   open to the public.  (V.A.C.S. Art. 6573a.2, Sec. 12A(d) (part).)
 334-4         Sec. 1103.512.  RECORD OF PROCEEDINGS. (a)  Contested case
 334-5   proceedings shall be recorded by:
 334-6               (1)  mechanical or electrical means; or
 334-7               (2)  a certified shorthand reporter.
 334-8         (b)  At the request of a party, the proceedings or any part
 334-9   of the proceedings shall be transcribed.  The expense of the
334-10   transcription shall be charged to the requesting party.
334-11         (c)  Before testimony may be presented, the record must:
334-12               (1)  show the identities of:
334-13                     (A)  the board members present;
334-14                     (B)  the presiding officer; and
334-15                     (C)  the parties and their representatives; and
334-16               (2)  state that all testimony is being recorded.
334-17         (d)  The recording, stenographic notes, or transcription of
334-18   oral proceedings shall be filed with and maintained by the board
334-19   until at least the fifth anniversary of the date of the decision in
334-20   the contested case.  (V.A.C.S. Art. 6573a.2, Secs. 12A(d) (part),
334-21   (g) (part).)
334-22         Sec. 1103.513.  ORDER OF PROCEEDINGS. A contested case
334-23   hearing shall be conducted in the following order, subject to
334-24   modification at the discretion of the board:
334-25               (1)  the presiding officer shall read a summary of the
334-26   charges and answers to the charges and other responsive pleadings
334-27   filed by the appraiser before the hearing;
 335-1               (2)  the attorney general shall make a brief opening
 335-2   statement, including a summary of the charges and a list of the
 335-3   witnesses and documents to support the charges;
 335-4               (3)  the appraiser may make an opening statement,
 335-5   including the names of any witnesses the appraiser may call;
 335-6               (4)  the attorney general shall present evidence,
 335-7   concluding with a summary of the evidence for the state;
 335-8               (5)  the appraiser shall present evidence;
 335-9               (6)  the attorney general may present rebuttal
335-10   evidence;
335-11               (7)  the appraiser may present rebuttal evidence; and
335-12               (8)  the closing arguments shall be made in the
335-13   following order:
335-14                     (A)  the attorney general;
335-15                     (B)  the appraiser; and
335-16                     (C)  the attorney general on rebuttal.  (V.A.C.S.
335-17   Art. 6573a.2, Sec. 12A(g) (part).)
335-18         Sec. 1103.514.  COPIES OF EVIDENCE. A copy of each document
335-19   offered as evidence at a contested case hearing shall be provided
335-20   to the opposing party and to board members.  (V.A.C.S.
335-21   Art. 6573a.2, Sec. 12A(i) (part).)
335-22         Sec. 1103.515.  RESPONSE TO CERTAIN ACCUSATIONS. (a)  To the
335-23   extent an appraiser believes the appraiser is being asked to reply
335-24   to an accusation, innuendo, or fact for the first time in a
335-25   contested case hearing, the appraiser may respond to the board in
335-26   writing or at a subsequent scheduled board meeting.
335-27         (b)  If the appraiser chooses to respond as provided by this
 336-1   section, the attorney general is entitled to continue to present
 336-2   evidence during the hearing.  (V.A.C.S. Art. 6573a.2, Sec. 12A(i)
 336-3   (part).)
 336-4         Sec. 1103.516.  DIRECT EXAMINATION. In a contested case
 336-5   hearing, the presiding officer or other board members may conduct a
 336-6   direct examination of a witness at any stage of the witness's
 336-7   testimony.  (V.A.C.S. Art. 6573a.2, Sec. 12A(d) (part).)
 336-8         Sec. 1103.517.  IMMUNITY OF WITNESSES. (a)  The presiding
 336-9   officer in a contested case hearing may grant a witness immunity
336-10   from disciplinary action by the board only if the board members
336-11   hearing the case vote unanimously to grant immunity.
336-12         (b)  The official record of the hearing must include the
336-13   reason for granting immunity.  (V.A.C.S. Art. 6573a.2, Sec.
336-14   12A(h).)
336-15         Sec. 1103.518.  BOARD ACTION AFTER HEARING. By a majority
336-16   vote of the board members hearing the contested case, the board:
336-17               (1)  shall make findings of fact and conclusions of
336-18   law; and
336-19               (2)  may take one or more of the following actions:
336-20                     (A)  dismiss the charges, including issuing an
336-21   order declaring that the case file is confidential;
336-22                     (B)  suspend or revoke the appraiser's
336-23   certificate or license;
336-24                     (C)  impose a period of probation with or without
336-25   conditions;
336-26                     (D)  require the appraiser to submit to
336-27   reexamination for a certificate or license;
 337-1                     (E)  require the appraiser to participate in
 337-2   additional professional education or continuing education;
 337-3                     (F)  issue a public or private reprimand or a
 337-4   warning;
 337-5                     (G)  issue a consent order; or
 337-6                     (H)  impose an administrative penalty as
 337-7   prescribed by Section 1103.552.  (V.A.C.S. Art. 6573a.2, Sec.
 337-8   12A(j) (part).)
 337-9         Sec. 1103.519.  APPLICATION FOR REHEARING. (a)  Not later
337-10   than the 20th day after the date a final decision is issued in a
337-11   contested case, a party may file an application with the board for
337-12   a rehearing.  The application  must state:
337-13               (1)  the specific grounds for rehearing; and
337-14               (2)  the relief sought.
337-15         (b)  The application is denied if the board does not grant it
337-16   before the 20th day after the date the commissioner is served with
337-17   the application.  (V.A.C.S. Art. 6573a.2, Sec. 12A(k) (part).)
337-18         Sec. 1103.520.  DECISION ON REHEARING. (a)  The decision made
337-19   at the conclusion of the original contested case hearing may not be
337-20   reversed or modified for a procedural, evidentiary, or other error
337-21   that did not cause substantial injustice to the parties.
337-22         (b)  The decision made on a rehearing may incorporate by
337-23   reference any part of the decision made at the conclusion of the
337-24   original hearing.
337-25         (c)  On rehearing, the board shall consider facts not
337-26   presented in the original hearing if:
337-27               (1)  the facts arose after the original hearing was
 338-1   concluded;
 338-2               (2)  the party offering the evidence could not
 338-3   reasonably have provided the evidence at the original hearing; or
 338-4               (3)  the party offering the evidence was misled by a
 338-5   party regarding the necessity for offering the evidence at the
 338-6   original hearing.  (V.A.C.S. Art. 6573a.2, Sec. 12A(k) (part).)
 338-7         Sec. 1103.521.  DECISION; ORDER. (a)  The board shall file
 338-8   its final decision in a contested case hearing with the
 338-9   commissioner.
338-10         (b)  A copy of the decision and order shall immediately be:
338-11               (1)  sent by certified mail, return receipt requested,
338-12   to the appraiser at the appraiser's last known address; or
338-13               (2)  personally delivered to the appraiser.  (V.A.C.S.
338-14   Art. 6573a.2, Sec. 12A(l).)
338-15         Sec. 1103.522.  REINSTATEMENT OF CERTIFICATE OR LICENSE. (a)
338-16   A person whose certificate or license has been suspended or revoked
338-17   by the board may apply to the board for reinstatement as provided
338-18   by the order of suspension or revocation.
338-19         (b)  If the order does not establish terms for reinstatement,
338-20   the appraiser may not:
338-21               (1)  make an initial application for reinstatement
338-22   until the first anniversary of the effective date of the order; or
338-23               (2)  make subsequent applications more often than once
338-24   every two years.  (V.A.C.S. Art. 6573a.2, Sec. 12A(m).)
338-25           (Sections 1103.523-1103.550 reserved for expansion)
338-26        SUBCHAPTER L.  PENALTIES AND OTHER ENFORCEMENT PROVISIONS
338-27         Sec. 1103.551.  INJUNCTION. (a)  The board may institute an
 339-1   action in its own name against any person to enjoin a violation of
 339-2   this chapter or a rule adopted by the board under this chapter.
 339-3         (b)  An action under this section must be brought in a
 339-4   district court in Travis County.  The attorney general shall act as
 339-5   legal advisor to the board and provide necessary legal assistance.
 339-6   (V.A.C.S. Art. 6573a.2, Sec. 5(a) (part).)
 339-7         Sec. 1103.552.  ADMINISTRATIVE PENALTY. (a)  The board may
 339-8   impose an administrative penalty under Section 1103.518(2)(H) in an
 339-9   amount not to exceed:
339-10               (1)  $1,500 for each violation; or
339-11               (2)  $5,000 for multiple violations proved in one
339-12   contested case.
339-13         (b)  The appraiser on whom the penalty is imposed shall pay
339-14   the penalty not later than the 20th day after the date of the final
339-15   disposition of the contested case.  (V.A.C.S. Art. 6573a.2, Sec.
339-16   12A(j) (part).)
339-17         Sec. 1103.553.  CIVIL PENALTY. (a)  A certified or licensed
339-18   appraiser who files against another certified or licensed appraiser
339-19   a complaint that the board determines to be frivolous is liable for
339-20   a civil penalty.
339-21         (b)  The amount of a civil penalty imposed under this section
339-22   may not be less than $1,000 or more than $10,000.
339-23         (c)  At the request of the board, the attorney general or a
339-24   district or county attorney may bring an action in district court
339-25   to recover a civil penalty under this section.
339-26         (d)  A civil penalty recovered in an action brought under
339-27   this section shall be deposited in the state treasury.  (V.A.C.S.
 340-1   Art. 6573a.2, Sec. 12(j).)
 340-2         Sec. 1103.554.  CRIMINAL PENALTY. (a)  A person commits an
 340-3   offense if the person knowingly:
 340-4               (1)  provides false information in connection with an
 340-5   affidavit filed under Section 1103.205; or
 340-6               (2)  violates Section 1103.401.
 340-7         (b)  An offense under this section is a Class B misdemeanor.
 340-8   (V.A.C.S. Art. 6573a.2, Sec. 21.)
 340-9               (Chapters 1104-1150 reserved for expansion)
340-10          SUBTITLE B.  PROFESSIONS RELATED TO PROPERTY TAXATION
340-11                CHAPTER 1151.  PROPERTY TAX PROFESSIONALS
340-12                    SUBCHAPTER A.  GENERAL PROVISIONS
340-13   Sec. 1151.001.  SHORT TITLE 
340-14   Sec. 1151.002.  DEFINITIONS 
340-15   Sec. 1151.003.  APPLICATION OF SUNSET ACT 
340-16   Sec. 1151.004.  PROHIBITION AGAINST REQUIRING UNPROFESSIONAL
340-17                     CONDUCT 
340-18           (Sections 1151.005-1151.050 reserved for expansion)
340-19           SUBCHAPTER B.  BOARD OF TAX PROFESSIONAL EXAMINERS
340-20   Sec. 1151.051.  BOARD MEMBERSHIP; ELIGIBILITY 
340-21   Sec. 1151.052.  TERMS 
340-22   Sec. 1151.053.  MEETINGS 
340-23   Sec. 1151.054.  OFFICERS 
340-24   Sec. 1151.055.  COMPENSATION; REIMBURSEMENT 
340-25           (Sections 1151.056-1151.100 reserved for expansion)
340-26                 SUBCHAPTER C.  BOARD POWERS AND DUTIES
340-27   Sec. 1151.101.  EXECUTIVE DIRECTOR AND PERSONNEL 
 341-1   Sec. 1151.102.  GENERAL RULEMAKING AUTHORITY 
 341-2   Sec. 1151.103.  ESTABLISHMENT OF PROFESSIONAL STANDARDS 
 341-3   Sec. 1151.104.  ENFORCEMENT OF CHAPTER 
 341-4   Sec. 1151.105.  RECORD OF BOARD PROCEEDINGS 
 341-5   Sec. 1151.106.  CLASSIFICATION SYSTEM FOR REGISTRANTS 
 341-6   Sec. 1151.107.  ROSTER OF REGISTRANTS 
 341-7   Sec. 1151.108.  MONEY RECEIVED BY BOARD 
 341-8   Sec. 1151.109.  WAIVER OF FEE OR PENALTY PROHIBITED 
 341-9           (Sections 1151.110-1151.150 reserved for expansion)
341-10              SUBCHAPTER D.  REGISTRATION AND CERTIFICATION
341-11   Sec. 1151.151.  REGISTRATION REQUIRED; EXEMPTION 
341-12   Sec. 1151.152.  ELIGIBILITY FOR REGISTRATION 
341-13   Sec. 1151.153.  REGISTRATION APPLICATION 
341-14   Sec. 1151.154.  SUBMISSION OF APPLICATION 
341-15   Sec. 1151.155.  ACTION ON APPLICATION 
341-16   Sec. 1151.156.  DISCRIMINATION PROHIBITED 
341-17   Sec. 1151.157.  ISSUANCE AND POSSESSION OF IDENTIFICATION
341-18                     CARD REQUIRED 
341-19   Sec. 1151.158.  ANNUAL FEE; EXPIRATION AND RENEWAL
341-20                     OF REGISTRATION 
341-21   Sec. 1151.159.  REMOVAL FROM ROSTER OF REGISTRANTS;
341-22                     REINSTATEMENT 
341-23   Sec. 1151.160.  CERTIFICATION LEVELS AND REQUIREMENTS 
341-24   Sec. 1151.161.  EXAMINATION FOR CERTIFICATION; APPLICATION;
341-25                     FEE 
341-26   Sec. 1151.162.  RULES RELATING TO RECERTIFICATION AND
341-27                     SPECIALIZATION 
 342-1           (Sections 1151.163-1151.200 reserved for expansion)
 342-2                       SUBCHAPTER E.  ENFORCEMENT
 342-3   Sec. 1151.201.  INITIATION OF PROCEEDINGS 
 342-4   Sec. 1151.202.  DENIAL OF REGISTRATION; DISCIPLINARY ACTION 
 342-5   Sec. 1151.203.  RULES FOR PROCEEDINGS; NOTICE 
 342-6   Sec. 1151.204.  DISMISSAL OF COMPLAINT RELATING TO
 342-7                     APPRAISED VALUE 
 342-8   Sec. 1151.205.  SUBPOENA AUTHORITY 
 342-9           (Sections 1151.206-1151.250 reserved for expansion)
342-10                    SUBCHAPTER F.  CRIMINAL PENALTIES
342-11   Sec. 1151.251.  FAILURE TO REGISTER 
342-12   Sec. 1151.252.  PROHIBITED ACTIONS WHILE REGISTRATION OR
342-13                     CERTIFICATION IS REVOKED OR SUSPENDED 
342-14   Sec. 1151.253.  COMPLAINT OF VIOLATION 
342-15                CHAPTER 1151.  PROPERTY TAX PROFESSIONALS
342-16                    SUBCHAPTER A.  GENERAL PROVISIONS
342-17         Sec. 1151.001.  SHORT TITLE. This chapter may be cited as the
342-18   Property Taxation Professional Certification Act.  (V.A.C.S.
342-19   Art. 8885, Sec. 3.)
342-20         Sec. 1151.002.  DEFINITIONS. In this chapter:
342-21               (1)  "Appraisal" means a function described by Chapter
342-22   23 or 25, Tax Code, that:
342-23                     (A)  is performed by an employee of a political
342-24   subdivision or by a person acting on behalf of a political
342-25   subdivision; and
342-26                     (B)  involves an opinion of value of a property
342-27   interest.
 343-1               (2)  "Assessment" means a function described by Chapter
 343-2   26, Tax Code, performed by an employee of a political subdivision
 343-3   or by a person acting on behalf of a political subdivision to
 343-4   determine an amount of ad valorem tax for the political
 343-5   subdivision.
 343-6               (3)  "Assessor-collector" means the chief administrator
 343-7   of the tax office of a taxing unit who is responsible for:
 343-8                     (A)  assessment under Chapter 26, Tax Code; and
 343-9                     (B)  collection under Chapter 31, Tax Code.
343-10               (4)  "Board" means the Board of Tax Professional
343-11   Examiners.
343-12               (5)  "Code of ethics" means a formal statement of
343-13   ethical standards of conduct adopted by the board.
343-14               (6)  "Collection" means a function described by Chapter
343-15   31, Tax Code, or Section 33.02, 33.03, or 33.04, Tax Code.
343-16               (7)  "Collector" means the chief administrator of the
343-17   tax office of a taxing unit who:
343-18                     (A)  is responsible for collection under Chapter
343-19   31, Tax Code; and
343-20                     (B)  is not responsible for assessment.
343-21               (8)  "Governing body" means the governing body of a
343-22   taxing unit as defined by Section 1.04, Tax Code. (V.A.C.S.
343-23   Art. 8885, Secs. 2(1), (2), (3), (5), (6), (7), (11), (12).)
343-24         Sec. 1151.003.  APPLICATION OF SUNSET ACT. The Board of Tax
343-25   Professional Examiners is subject to Chapter 325, Government Code
343-26   (Texas Sunset Act). Unless continued in existence as provided by
343-27   that chapter, the board is abolished and this chapter expires
 344-1   September 1, 2003.  (V.A.C.S. Art. 8885, Sec. 4(e).)
 344-2         Sec. 1151.004.  PROHIBITION AGAINST REQUIRING UNPROFESSIONAL
 344-3   CONDUCT. (a)  An appraisal district board of directors or a
 344-4   governing body may not, as a necessity for employment, require an
 344-5   appraiser, assessor, or collector to:
 344-6               (1)  act in an unprofessional manner; or
 344-7               (2)  violate this chapter.
 344-8         (b)  The board shall thoroughly investigate a complaint of a
 344-9   violation of this section.  (V.A.C.S. Art. 8885, Sec. 22.)
344-10           (Sections 1151.005-1151.050 reserved for expansion)
344-11           SUBCHAPTER B.  BOARD OF TAX PROFESSIONAL EXAMINERS
344-12         Sec. 1151.051.  BOARD MEMBERSHIP; ELIGIBILITY. (a)  The Board
344-13   of Tax Professional Examiners consists of six members appointed by
344-14   the governor with the advice and consent of the senate.  A vacancy
344-15   on the board is filled in the same manner for the unexpired portion
344-16   of the term.
344-17         (b)  To be eligible to serve on the board, a person must:
344-18               (1)  be actively engaged in property tax
344-19   administration;
344-20               (2)  have at least five years' experience in appraisal,
344-21   assessment, or collection; and
344-22               (3)  be certified under this chapter as a registered
344-23   professional appraiser, registered Texas collector, or registered
344-24   Texas assessor.  (V.A.C.S. Art. 8885, Secs. 4(b), (c) (part).)
344-25         Sec. 1151.052.  TERMS. Board members serve six-year terms,
344-26   with the terms of two members expiring on March 1 of each
344-27   odd-numbered year.  (V.A.C.S. Art. 8885, Sec. 4(d).)
 345-1         Sec. 1151.053.  MEETINGS. (a)  The board shall hold at least
 345-2   one regular meeting in each calendar quarter.
 345-3         (b)  The board shall hold special meetings when required by
 345-4   the board's bylaws or rules of procedure.
 345-5         (c)  Board members are entitled to receive notice of a
 345-6   special meeting at least 15 days before the meeting date.
 345-7   (V.A.C.S. Art. 8885, Secs. 6(a), (b).)
 345-8         Sec. 1151.054.  OFFICERS. At the first regular meeting of
 345-9   each calendar year, the board shall elect from its members a
345-10   presiding officer, assistant presiding officer, and
345-11   secretary-treasurer. (V.A.C.S. Art. 8885, Sec. 6(c) (part).)
345-12         Sec. 1151.055.  COMPENSATION; REIMBURSEMENT. (a)  A board
345-13   member may not receive compensation for the member's services.
345-14         (b)  A board member is entitled to reimbursement for
345-15   necessary expenses incurred in performing the member's duties.
345-16   (V.A.C.S. Art. 8885, Sec. 5.)
345-17           (Sections 1151.056-1151.100 reserved for expansion)
345-18                 SUBCHAPTER C.  BOARD POWERS AND DUTIES
345-19         Sec. 1151.101.  EXECUTIVE DIRECTOR AND PERSONNEL. (a)  The
345-20   board shall employ an executive director to administer the
345-21   operations of the board as directed by the board.
345-22         (b)  The executive director may employ other personnel to
345-23   assist the executive director. (V.A.C.S. Art. 8885, Sec. 9.)
345-24         Sec. 1151.102.  GENERAL RULEMAKING AUTHORITY.  The board may
345-25   adopt and enforce rules necessary for the performance of the
345-26   board's duties. (V.A.C.S. Art. 8885, Sec. 7 (part).)
345-27         Sec. 1151.103.  ESTABLISHMENT OF PROFESSIONAL STANDARDS. The
 346-1   board may establish standards of professional practice, conduct,
 346-2   education, and ethics for appraisers, assessors, and collectors
 346-3   consistent with the purposes and intent of this chapter. (V.A.C.S.
 346-4   Art. 8885, Sec. 7 (part).)
 346-5         Sec. 1151.104.  ENFORCEMENT OF CHAPTER. The board may ensure
 346-6   strict compliance with and enforce this chapter. (V.A.C.S.
 346-7   Art. 8885, Sec. 7 (part).)
 346-8         Sec. 1151.105.  RECORD OF BOARD PROCEEDINGS. (a)  The board
 346-9   shall keep an accurate record of the board's proceedings.
346-10         (b)  The record shall be available to the public at all
346-11   times. (V.A.C.S. Art. 8885, Sec. 8(b) (part).)
346-12         Sec. 1151.106.  CLASSIFICATION SYSTEM FOR REGISTRANTS. (a)
346-13   The board by rule shall:
346-14               (1)  adopt a classification system for registrants; and
346-15               (2)  establish minimum requirements for each
346-16   classification.
346-17         (b)  The requirements must be based on experience in property
346-18   taxation administration, education and training, professional
346-19   performance and achievements, and compliance with the code of
346-20   ethics. (V.A.C.S. Art. 8885, Sec. 16.)
346-21         Sec. 1151.107.  ROSTER OF REGISTRANTS. (a)  The board shall
346-22   maintain a roster of registrants that includes each registrant's
346-23   name, place of employment, and classification.
346-24         (b)  A copy of the roster shall be made available to a
346-25   registrant and to the public on request. (V.A.C.S. Art. 8885, Sec.
346-26   8(b) (part).)
346-27         Sec. 1151.108.  MONEY RECEIVED BY BOARD. The board shall
 347-1   receive and account for all money derived under this chapter.
 347-2   (V.A.C.S. Art. 8885, Sec. 8(a) (part).)
 347-3         Sec. 1151.109.  WAIVER OF FEE OR PENALTY PROHIBITED. The
 347-4   board may not waive the collection of a fee or penalty described by
 347-5   this chapter. (V.A.C.S. Art. 8885, Sec. 13 (part).)
 347-6           (Sections 1151.110-1151.150 reserved for expansion)
 347-7              SUBCHAPTER D.  REGISTRATION AND CERTIFICATION
 347-8         Sec. 1151.151.  REGISTRATION REQUIRED; EXEMPTION. (a)  The
 347-9   following persons must register with the board:
347-10               (1)  the chief appraiser of an appraisal district, an
347-11   appraisal supervisor or assistant, a property tax appraiser, an
347-12   appraisal engineer, and any other person authorized to render
347-13   judgment on, recommend, or certify an appraised value to the
347-14   appraisal review board of an appraisal district;
347-15               (2)  a person who engages in appraisal of property for
347-16   ad valorem tax purposes for an appraisal district or a taxing unit;
347-17               (3)  an assessor-collector, a collector, or another
347-18   person designated by a governing body as the chief administrator of
347-19   the taxing unit's assessment functions, collection functions, or
347-20   both; and
347-21               (4)  a person who performs assessment or collection
347-22   functions for a taxing unit and is required to register by the
347-23   chief administrator of the unit's tax office.
347-24         (b)  A county assessor-collector is not required to register
347-25   with the board if the county:
347-26               (1)  has a population of one million or more; or
347-27               (2)  by contract entered into under Section 6.24(b),
 348-1   Tax Code, has its taxes assessed and collected by another taxing
 348-2   unit or an appraisal district. (V.A.C.S. Art. 8885, Secs. 11, 11A,
 348-3   11B.)
 348-4         Sec. 1151.152.  ELIGIBILITY FOR REGISTRATION. To be eligible
 348-5   for registration, an applicant must:
 348-6               (1)  be at least 18 years of age;
 348-7               (2)  reside in this state;
 348-8               (3)  be of good moral character;
 348-9               (4)  be a graduate of an accredited high school or
348-10   establish high school graduation equivalency; and
348-11               (5)  be actively engaged in appraisal, assessment, or
348-12   collection. (V.A.C.S. Art. 8885, Sec. 15 (part).)
348-13         Sec. 1151.153.  REGISTRATION APPLICATION. (a)  An application
348-14   for registration must be made on the printed form provided by the
348-15   board.  In prescribing the contents of an application form, the
348-16   board shall ensure that the form requires information sufficient to
348-17   properly classify the applicant.
348-18         (b)  Each application form the board provides must be
348-19   accompanied by the code of ethics.  (V.A.C.S. Art. 8885, Sec. 14
348-20   (part).)
348-21         Sec. 1151.154.  SUBMISSION OF APPLICATION. (a)  An initial
348-22   application for registration must be accompanied by:
348-23               (1)  a nonrefundable $50 processing fee; and
348-24               (2)  the fee required by Section 1151.158.
348-25         (b)  An applicant for registration must sign and swear to the
348-26   application, including the code of ethics, before a notary public
348-27   or another person qualified to administer an oath. (V.A.C.S.
 349-1   Art. 8885, Sec. 14 (part).)
 349-2         Sec. 1151.155.  ACTION ON APPLICATION. (a)  The board shall
 349-3   act on an application for registration not later than the 30th day
 349-4   after the date the application is received.
 349-5         (b)  The board shall:
 349-6               (1)  classify and register each applicant the board
 349-7   approves; and
 349-8               (2)  notify the registrant of the requirements for:
 349-9                     (A)  maintenance of the registrant's current
349-10   registration; and
349-11                     (B)  professional certification by the board.
349-12         (c)  If the board disapproves an application, the board shall
349-13   refund the fee paid under Section 1151.154(a)(2).  (V.A.C.S.
349-14   Art. 8885, Secs. 14 (part), 15 (part).)
349-15         Sec. 1151.156.  DISCRIMINATION PROHIBITED. The board may not
349-16   refuse to register an applicant because of the race, color, creed,
349-17   sex, or ethnic origin of the applicant. (V.A.C.S. Art. 8885, Sec.
349-18   21.)
349-19         Sec. 1151.157.  ISSUANCE AND POSSESSION OF IDENTIFICATION
349-20   CARD REQUIRED. (a)  The board shall issue an identification card to
349-21   each person registered under this chapter.  While on official duty,
349-22   the registrant shall have the identification card in the
349-23   registrant's possession.
349-24         (b)  An identification card issued under Subsection (a) must:
349-25               (1)  be serially numbered;
349-26               (2)  describe any registration classification into
349-27   which the person is placed; and
 350-1               (3)  state the expiration date of the person's
 350-2   registration.  (V.A.C.S. Art. 8885, Sec. 12.)
 350-3         Sec. 1151.158.  ANNUAL FEE; EXPIRATION AND RENEWAL OF
 350-4   REGISTRATION. (a)  A registration under this chapter expires on
 350-5   December 31 and must be renewed annually. A registrant must pay an
 350-6   annual fee of not less than $45 or more than $75.
 350-7         (b)  On or before December 1 of each year, the board shall:
 350-8               (1)  establish the amount of the renewal fee for the
 350-9   following year; and
350-10               (2)  mail a renewal notice to each person registered
350-11   under this chapter.  (V.A.C.S. Art. 8885, Sec. 13 (part).)
350-12         Sec. 1151.159.  REMOVAL FROM ROSTER OF REGISTRANTS;
350-13   REINSTATEMENT. (a)  The board shall delete from the roster of
350-14   registrants any person who does not pay the required registration
350-15   renewal fee before February 1 of the year to which the fee applies.
350-16         (b)  A person who applies for reinstatement within 30 days
350-17   must pay a penalty in the amount set by the board not to exceed
350-18   $25.
350-19         (c)  A person who does not apply for reinstatement within 30
350-20   days may be reinstated only by filing a new application with the
350-21   board and passing an examination required by the board, if any.
350-22   (V.A.C.S. Art. 8885, Sec. 13 (part).)
350-23         Sec. 1151.160.  CERTIFICATION LEVELS AND REQUIREMENTS. (a)
350-24   The board by rule shall adopt minimum requirements for the
350-25   certification of registrants. The requirements for certification of
350-26   an employee of a taxing unit's tax office must emphasize, but are
350-27   not limited to, the areas of responsibility of the registrant in
 351-1   performing the registrant's duties for the taxing unit.
 351-2         (b)  "Registered professional appraiser" is the highest level
 351-3   of certification established by the board for a person engaged in
 351-4   appraisal. "Registered Texas assessor" is the highest level of
 351-5   certification established by the board for a person engaged in
 351-6   assessment.  "Registered Texas collector" is the highest level of
 351-7   certification established by the board for a person engaged in
 351-8   collection.
 351-9         (c)  The rules establishing minimum requirements must require
351-10   that:
351-11               (1)  a person registered as an appraiser become
351-12   certified as a registered professional appraiser not later than the
351-13   fifth anniversary of the date of the person's original
351-14   registration;
351-15               (2)  a person registered as an assessor or
351-16   assessor-collector become certified as a registered Texas assessor
351-17   not later than the fifth anniversary of the date of the person's
351-18   original registration; and
351-19               (3)  a person registered as a collector become
351-20   certified as a registered Texas collector not later than the third
351-21   anniversary of the date of the person's original registration.
351-22   (V.A.C.S. Art. 8885, Secs. 2(8), (9), (10), 17.)
351-23         Sec. 1151.161.  EXAMINATION FOR CERTIFICATION; APPLICATION;
351-24   FEE. (a)  The board by rule may require a registrant to pass one or
351-25   more examinations to be certified.
351-26         (b)  An applicant for examination under this section must
351-27   file an application with the board on a printed form provided by
 352-1   the board.  In prescribing the contents of the form, the board
 352-2   shall ensure that the form requires information sufficient to
 352-3   determine the applicant's current classification.
 352-4         (c)  The application for examination must be:
 352-5               (1)  filed with the board not later than the 14th day
 352-6   before the examination date; and
 352-7               (2)  accompanied by a nonrefundable fee in the amount
 352-8   set by the board. (V.A.C.S. Art. 8885, Sec. 14A.)
 352-9         Sec. 1151.162.  RULES RELATING TO RECERTIFICATION AND
352-10   SPECIALIZATION. The board may adopt rules:
352-11               (1)  regarding recertification to ensure that each
352-12   person certified under this chapter who is engaged in appraisal,
352-13   assessment, or collection is registered and professionally
352-14   competent; and
352-15               (2)  establishing specialized classifications,
352-16   designations, and requirements as necessary to accomplish the
352-17   purposes of this chapter, including maintaining high standards of
352-18   professional practice in all phases of property taxation.
352-19   (V.A.C.S. Art. 8885, Sec. 18.)
352-20           (Sections 1151.163-1151.200 reserved for expansion)
352-21                       SUBCHAPTER E.  ENFORCEMENT
352-22         Sec. 1151.201.  INITIATION OF PROCEEDINGS. The board may
352-23   initiate proceedings under this chapter on the motion of the board
352-24   or on the complaint of any person to ensure strict compliance with
352-25   this chapter and the board's rules.  (V.A.C.S. Art. 8885, Sec.
352-26   10(a) (part).)
352-27         Sec. 1151.202.  DENIAL OF REGISTRATION; DISCIPLINARY ACTION.
 353-1   The board may deny, suspend, or revoke the registration of a person
 353-2   who violates this chapter or a board rule.  (V.A.C.S. Art. 8885,
 353-3   Sec. 10(a) (part).)
 353-4         Sec. 1151.203.  RULES FOR PROCEEDINGS; NOTICE. The board
 353-5   shall adopt rules for the conduct of a proceeding initiated under
 353-6   Section 1151.201. The rules must require that written notice of the
 353-7   nature of the complaint and of the time and place of a hearing by
 353-8   the board be sent to each party by certified mail at least 20 days
 353-9   before the date of the hearing. (V.A.C.S. Art. 8885, Sec. 10(a)
353-10   (part).)
353-11         Sec. 1151.204.  DISMISSAL OF COMPLAINT RELATING TO APPRAISED
353-12   VALUE. The board may dismiss a complaint without conducting a
353-13   hearing if:
353-14               (1)  the complaint involves a disagreement on the
353-15   appraised value of a property; and
353-16               (2)  the disagreement has not been resolved in the
353-17   complainant's favor by an appraisal review board or court.
353-18   (V.A.C.S. Art. 8885, Sec. 10(b).)
353-19         Sec. 1151.205.  SUBPOENA AUTHORITY. (a)  The board may
353-20   request and, if necessary, compel by subpoena:
353-21               (1)  the attendance of witnesses for examination under
353-22   oath; and
353-23               (2)  the production of records, documents, and other
353-24   evidence relevant to the investigation of an alleged violation of
353-25   this chapter for inspection and copying.
353-26         (b)  If a person does not comply with the subpoena, the
353-27   board, acting through the attorney general, may file suit to
 354-1   enforce the subpoena in a district court in Travis County or in the
 354-2   county in which a hearing conducted by the board may be held.
 354-3         (c)  The court shall order compliance with the subpoena if
 354-4   the court determines that good cause exists for the issuance of the
 354-5   subpoena. (V.A.C.S. Art. 8885, Sec. 10(c) (part).)
 354-6           (Sections 1151.206-1151.250 reserved for expansion)
 354-7                    SUBCHAPTER F.  CRIMINAL PENALTIES
 354-8         Sec. 1151.251.  FAILURE TO REGISTER. (a)  A person commits an
 354-9   offense if the person does not register with the board as required
354-10   by Section 1151.151.
354-11         (b)  An offense under this section is a  Class C misdemeanor.
354-12   (V.A.C.S. Art. 8885, Sec. 24(a).)
354-13         Sec. 1151.252.  PROHIBITED ACTIONS WHILE REGISTRATION OR
354-14   CERTIFICATION IS REVOKED OR SUSPENDED. (a)  A person commits an
354-15   offense if the person performs an appraisal, assessment, or
354-16   collection function while the person's registration or
354-17   certification with the board is revoked or suspended.
354-18         (b)  An offense under this section is a Class B misdemeanor.
354-19   (V.A.C.S. Art. 8885, Sec. 24(b).)
354-20         Sec. 1151.253.  COMPLAINT OF VIOLATION. A person may file a
354-21   complaint with the board concerning a violation of Section 1151.251
354-22   or 1151.252.  (V.A.C.S. Art. 8885, Sec. 24(c).)
354-23                 CHAPTER 1152.  PROPERTY TAX CONSULTANTS
354-24                    SUBCHAPTER A.  GENERAL PROVISIONS
354-25   Sec. 1152.001.  DEFINITIONS 
354-26   Sec. 1152.002.  EXEMPTIONS FROM REGISTRATION 
354-27           (Sections 1152.003-1152.050 reserved for expansion)
 355-1          SUBCHAPTER B.  DUTIES OF COMMISSIONER AND DEPARTMENT
 355-2   Sec. 1152.051.  STANDARDS OF CONDUCT FOR REGISTRANTS 
 355-3   Sec. 1152.052.  MONEY RECEIVED BY DEPARTMENT 
 355-4           (Sections 1152.053-1152.100 reserved for expansion)
 355-5        SUBCHAPTER C.  PROPERTY TAX CONSULTANTS ADVISORY COUNCIL
 355-6   Sec. 1152.101.  DEFINITION 
 355-7   Sec. 1152.102.  COUNCIL MEMBERSHIP 
 355-8   Sec. 1152.103.  MEMBERSHIP RESTRICTIONS 
 355-9   Sec. 1152.104.  TERMS; VACANCY 
355-10   Sec. 1152.105.  PRESIDING OFFICER 
355-11   Sec. 1152.106.  MEETINGS; VOTE REQUIRED FOR ACTION 
355-12   Sec. 1152.107.  COMPENSATION; REIMBURSEMENT 
355-13   Sec. 1152.108.  COUNCIL POWERS 
355-14           (Sections 1152.109-1152.150 reserved for expansion)
355-15                SUBCHAPTER D.  REGISTRATION REQUIREMENTS
355-16   Sec. 1152.151.  REGISTRATION REQUIRED 
355-17   Sec. 1152.152.  ASSOCIATION WITH SENIOR PROPERTY TAX
355-18                     CONSULTANT REQUIRED 
355-19   Sec. 1152.153.  VOLUNTARY REGISTRATION 
355-20   Sec. 1152.154.  REGISTRATION APPLICATION; FEES 
355-21   Sec. 1152.155.  GENERAL ELIGIBILITY FOR REGISTRATION 
355-22   Sec. 1152.156.  ELIGIBILITY TO REGISTER AS PROPERTY TAX
355-23                     CONSULTANT 
355-24   Sec. 1152.157.  ELIGIBILITY TO REGISTER AS SENIOR
355-25                     PROPERTY TAX CONSULTANT 
355-26   Sec. 1152.158.  REGISTRATION OF CERTAIN REAL ESTATE BROKERS 
355-27   Sec. 1152.159.  CREDITS FOR SENIOR PROPERTY TAX CONSULTANT
 356-1                     APPLICANTS 
 356-2   Sec. 1152.160.  SENIOR PROPERTY TAX CONSULTANT REGISTRATION
 356-3                     EXAMINATION 
 356-4   Sec. 1152.161.  EXAMINATION RESULTS 
 356-5   Sec. 1152.162.  ISSUANCE OF CERTIFICATE OF REGISTRATION 
 356-6   Sec. 1152.163.  WAIVER FOR APPLICANT REGISTERED OR
 356-7                     LICENSED IN ANOTHER STATE 
 356-8           (Sections 1152.164-1152.200 reserved for expansion)
 356-9          SUBCHAPTER E.  RENEWAL OF CERTIFICATE OF REGISTRATION
356-10   Sec. 1152.201.  TERM OF CERTIFICATE OF REGISTRATION 
356-11   Sec. 1152.202.  PROCEDURE FOR RENEWAL 
356-12   Sec. 1152.203.  REQUIRED CONTINUING EDUCATION 
356-13   Sec. 1152.204.  RECOGNITION OF EDUCATIONAL PROGRAMS
356-14                     AND COURSES 
356-15           (Sections 1152.205-1152.250 reserved for expansion)
356-16                SUBCHAPTER F.  PENALTIES AND ENFORCEMENT
356-17   Sec. 1152.251.  DISCIPLINARY POWERS OF COMMISSIONER 
356-18   Sec. 1152.252.  CRIMINAL PENALTIES 
356-19                 CHAPTER 1152.  PROPERTY TAX CONSULTANTS
356-20                    SUBCHAPTER A.  GENERAL PROVISIONS
356-21         Sec. 1152.001.  DEFINITIONS. In this chapter:
356-22               (1)  "Commission" means the Texas Commission of
356-23   Licensing and Regulation.
356-24               (2)  "Commissioner" means the commissioner of licensing
356-25   and regulation.
356-26               (3)  "Department" means the Texas Department of
356-27   Licensing and Regulation.
 357-1               (4)  "Person" means an individual, partnership,
 357-2   corporation, or association.
 357-3               (5)  "Property tax consultant" means a person who
 357-4   performs or supervises another person in the performance of
 357-5   property tax consulting services for compensation.
 357-6               (6)  "Property tax consulting services" means:
 357-7                     (A)  preparing for another person a rendition
 357-8   statement or property report under Chapter 22, Tax Code;
 357-9                     (B)  representing another person in a protest
357-10   under Subchapter C, Chapter 41, Tax Code;
357-11                     (C)  consulting or advising another person
357-12   concerning:
357-13                           (i)  the preparation of a rendition
357-14   statement or property report under Chapter 22, Tax Code;  or
357-15                           (ii)  an action the other person may
357-16   protest under Subchapter C, Chapter 41, Tax Code;
357-17                     (D)  negotiating or entering into an agreement
357-18   with an appraisal district on behalf of another person concerning
357-19   an action that is or may be the subject of a protest under
357-20   Subchapter C, Chapter 41, Tax Code;  or
357-21                     (E)  acting as the agent of a property owner
357-22   designated in accordance with Section 1.111, Tax Code.
357-23               (7)  "Registrant" means a person who is registered as a
357-24   property tax consultant or a senior property tax consultant under
357-25   this chapter. (V.A.C.S. Art. 8886, Secs. 1(a)(1), (2), (4), (5),
357-26   (6), (7), (b).)
357-27         Sec. 1152.002.  EXEMPTIONS FROM REGISTRATION.   (a)  A person
 358-1   is not required to be registered under this chapter if the person:
 358-2               (1)  is acting under a general power of attorney,
 358-3   unless the person represents that the person is a property tax
 358-4   consultant, agent, advisor, or representative;
 358-5               (2)  is licensed to practice law in this state;
 358-6               (3)  is an employee of a property owner or of an
 358-7   affiliated or subsidiary company of a property owner and performs
 358-8   property tax consulting services for:
 358-9                     (A)  the property owner; or
358-10                     (B)  a partnership, joint venture, or corporation
358-11   in which the property owner owns an interest;
358-12               (4)  is a lessee of a property owner and is designated
358-13   as the agent of the owner in accordance with Section 1.111, Tax
358-14   Code;
358-15               (5)  is a public employee or officer and assists a
358-16   property owner in the course of the employee's or officer's duties;
358-17               (6)  is a certified public accountant under Chapter
358-18   901;
358-19               (7)  assists another person in the performance of
358-20   property tax consulting services or provides testimony on behalf of
358-21   the other person at a protest hearing under Subchapter C, Chapter
358-22   41, Tax Code; or
358-23               (8)  provides property tax consulting services only in
358-24   connection with single-family residences and:
358-25                     (A)  holds an active real estate broker license
358-26   or an active real estate salesperson license under Chapter 1101; or
358-27                     (B)  is a licensed real estate appraiser or
 359-1   certified real estate appraiser under Chapter 1103.
 359-2         (b)  A person described by Subsection (a)(7) is not exempt
 359-3   from the registration requirements of this chapter if:
 359-4               (1)  the person is designated as the agent of the other
 359-5   person under Section 1.111, Tax Code; or
 359-6               (2)  more than 50 percent of the person's employment
 359-7   time is devoted to, or more than 50 percent of the person's income
 359-8   is derived from, performing or supervising the performance of
 359-9   property tax consulting services. (V.A.C.S. Art. 8886, Sec. 2(d).)
359-10           (Sections 1152.003-1152.050 reserved for expansion)
359-11          SUBCHAPTER B.  DUTIES OF COMMISSIONER AND DEPARTMENT
359-12         Sec. 1152.051.  STANDARDS OF CONDUCT FOR REGISTRANTS. The
359-13   commissioner by rule shall establish standards of practice,
359-14   conduct, and ethics for registrants.  (V.A.C.S. Art. 8886, Sec.
359-15   6(a).)
359-16         Sec. 1152.052.  MONEY RECEIVED BY DEPARTMENT. The department
359-17   shall receive and account for all money derived under this chapter.
359-18   (V.A.C.S. Art. 8886, Sec. 7(a).)
359-19           (Sections 1152.053-1152.100 reserved for expansion)
359-20        SUBCHAPTER C.  PROPERTY TAX CONSULTANTS ADVISORY COUNCIL
359-21         Sec. 1152.101.  DEFINITION. In this subchapter, "council"
359-22   means the Property Tax Consultants Advisory Council.  (V.A.C.S.
359-23   Art. 8886, Sec. 1(a)(3).)
359-24         Sec. 1152.102.  COUNCIL MEMBERSHIP. (a)  The council is
359-25   composed of six members appointed by the commission.
359-26         (b)  The commission may appoint not more than two members who
359-27   are qualified for an exemption under Section 1152.002(a)(3).
 360-1         (c)  Each person appointed for membership on the council
 360-2   must:
 360-3               (1)  be a registered senior property tax consultant;
 360-4               (2)  be a member of a nonprofit and voluntary trade
 360-5   association:
 360-6                     (A)  whose membership consists primarily of
 360-7   persons who perform property tax consulting services in this state
 360-8   or who engage in property tax management in this state for other
 360-9   persons;
360-10                     (B)  that has written experience and examination
360-11   requirements for membership; and
360-12                     (C)  that subscribes to a code of professional
360-13   conduct or ethics;
360-14               (3)  be a resident of this state for the five years
360-15   preceding the date of the appointment; and
360-16               (4)  have performed or supervised the performance of
360-17   property tax consulting services as the person's primary occupation
360-18   continuously for the five years preceding the date of the
360-19   appointment.  (V.A.C.S. Art. 8886, Sec. 10(a).)
360-20         Sec. 1152.103.  MEMBERSHIP RESTRICTIONS. A person is not
360-21   eligible for appointment as a member of the council if the person
360-22   is:
360-23               (1)  required to register with the secretary of state
360-24   under Chapter 305, Government Code;
360-25               (2)  required to register with the Board of Tax
360-26   Professional Examiners under Chapter 1151; or
360-27               (3)  exempt from the registration requirements imposed
 361-1   by this chapter, except as provided by Section 1152.102.  (V.A.C.S.
 361-2   Art. 8886, Sec. 10(b).)
 361-3         Sec. 1152.104.  TERMS; VACANCY. (a)  Members of the council
 361-4   serve staggered three-year terms, with the terms of two members
 361-5   expiring on February 1 of each year.
 361-6         (b)  If a vacancy occurs during a member's term, the
 361-7   commissioner shall appoint to fill the unexpired part of the term a
 361-8   replacement who meets the qualifications of the vacated office.
 361-9   (V.A.C.S. Art. 8886, Sec. 10(d).)
361-10         Sec. 1152.105.  PRESIDING OFFICER. Before March 1 of each
361-11   year, the council shall elect a member to serve as presiding
361-12   officer until the last day of February of the following year.
361-13   (V.A.C.S. Art. 8886, Sec. 10(c).)
361-14         Sec. 1152.106.  MEETINGS; VOTE REQUIRED FOR ACTION. (a)  The
361-15   council shall meet at least semiannually at the call of the
361-16   presiding officer or at the call of a majority of its members.
361-17         (b)  A decision of the council is not effective unless it
361-18   receives the affirmative vote of at least four members.  (V.A.C.S.
361-19   Art. 8886, Sec. 10(g).)
361-20         Sec. 1152.107.  COMPENSATION; REIMBURSEMENT. A council member
361-21   is not entitled to receive compensation for serving as a member. A
361-22   council member is entitled to reimbursement for reasonable expenses
361-23   incurred in performing duties as a member, subject to applicable
361-24   limitations in the General Appropriations Act.  (V.A.C.S.
361-25   Art. 8886, Sec. 10(f).)
361-26         Sec. 1152.108.  COUNCIL POWERS. The council shall:
361-27               (1)  recommend to the commissioner standards of
 362-1   practice, conduct, and ethics for registrants to be adopted under
 362-2   this chapter;
 362-3               (2)  recommend to the commission amounts for the fees
 362-4   it may set under this chapter;
 362-5               (3)  recommend to the commissioner contents for the
 362-6   senior property tax consultant registration examination and
 362-7   standards of acceptable performance;
 362-8               (4)  assist and advise the commissioner in recognizing
 362-9   continuing education programs and educational courses for
362-10   registrants; and
362-11               (5)  advise the commissioner in establishing
362-12   educational requirements for initial applicants.  (V.A.C.S.
362-13   Art. 8886, Sec. 10(e).)
362-14           (Sections 1152.109-1152.150 reserved for expansion)
362-15                SUBCHAPTER D.  REGISTRATION REQUIREMENTS
362-16         Sec. 1152.151.  REGISTRATION REQUIRED. (a)  A person may not
362-17   perform property tax consulting services for compensation unless
362-18   the person holds a certificate of registration issued under this
362-19   chapter.
362-20         (b)  A person may not represent that a person is a registered
362-21   property tax consultant, agent, advisor, or representative unless
362-22   the person is a registrant.  (V.A.C.S. Art. 8886, Secs. 2(a), (c).)
362-23         Sec. 1152.152.  ASSOCIATION WITH SENIOR PROPERTY TAX
362-24   CONSULTANT REQUIRED. (a)  A registered property tax consultant may
362-25   not perform property tax consulting services for compensation
362-26   unless the person is employed by or associated with and acting for
362-27   a registered senior property tax consultant.
 363-1         (b)  Subsection (a) does not apply to a person who is
 363-2   registered under Section 1152.156(a)(2) or 1152.158.  (V.A.C.S.
 363-3   Art. 8886, Secs. 2(b), (f) (part).)
 363-4         Sec. 1152.153.  VOLUNTARY REGISTRATION. (a)  A person who is
 363-5   not required to hold a certificate of registration under this
 363-6   chapter may register if the person satisfies the registration
 363-7   requirements of this chapter.
 363-8         (b)  A person exempt from the registration requirements of
 363-9   this chapter who elects to register is subject to this chapter.
363-10   (V.A.C.S. Art. 8886, Sec. 2(e).)
363-11         Sec. 1152.154.  REGISTRATION APPLICATION; FEES. (a)  An
363-12   applicant for registration must file an application with the
363-13   department on a printed form prescribed by the commissioner.
363-14         (b)  The application must be accompanied by:
363-15               (1)  a nonrefundable application fee; and
363-16               (2)  a registration fee.
363-17         (c)  The department shall refund the registration fee if the
363-18   commissioner does not approve the application.  (V.A.C.S.
363-19   Art. 8886, Sec. 5(a).)
363-20         Sec. 1152.155.  GENERAL ELIGIBILITY FOR REGISTRATION. (a)  To
363-21   be eligible for registration, an applicant must:
363-22               (1)  be at least 18 years of age;
363-23               (2)  hold a high school diploma or its equivalent;
363-24               (3)  pay the fees required by the commission;
363-25               (4)  have a place of business in this state or
363-26   designate a resident of this state as the applicant's agent for
363-27   service of process;  and
 364-1               (5)  meet any additional qualifications required by
 364-2   this chapter or by the commissioner under this chapter or Chapter
 364-3   51.
 364-4         (b)  Notwithstanding Subsection (a), a person is eligible for
 364-5   registration if the person holds:
 364-6               (1)  an active real estate broker license or an active
 364-7   real estate salesperson license under Chapter 1101; or
 364-8               (2)  an active real estate appraiser license or
 364-9   certificate under Chapter 1103.  (V.A.C.S. Art. 8886, Sec. 3(a).)
364-10         Sec. 1152.156.  ELIGIBILITY TO REGISTER AS PROPERTY TAX
364-11   CONSULTANT. (a)  In addition to satisfying the requirements of
364-12   Section 1152.155, an applicant for registration as a property tax
364-13   consultant must:
364-14               (1)  complete at least 15 classroom hours of
364-15   educational courses approved by the commissioner, including at
364-16   least four hours of instruction on laws and legal issues in this
364-17   state related to property tax consulting services; or
364-18               (2)  if the person is eligible for registration under
364-19   Section 1152.155(b), submit to the commission evidence that the
364-20   applicant has completed at least four classroom hours of
364-21   educational programs or courses on the laws and legal issues in
364-22   this state related to property tax consulting services.
364-23         (b)  The commissioner may give appropriate credit to an
364-24   initial applicant for:
364-25               (1)  educational courses on principles of law related
364-26   to property tax consulting services completed by the applicant not
364-27   more than two years before the date of application; and
 365-1               (2)  educational programs or courses completed by the
 365-2   applicant on:
 365-3                     (A)  property taxation;
 365-4                     (B)  the property tax system;
 365-5                     (C)  property tax administration;
 365-6                     (D)  ethical standards; or
 365-7                     (E)  general principles of appraisal, accounting,
 365-8   or law as they relate to property tax consulting services.
 365-9   (V.A.C.S. Art. 8886, Secs. 3(b), (i), (j).)
365-10         Sec. 1152.157.  ELIGIBILITY TO REGISTER AS SENIOR PROPERTY
365-11   TAX CONSULTANT. In addition to satisfying the requirements of
365-12   Section 1152.155, an applicant for registration as a senior
365-13   property tax consultant must:
365-14               (1)  acquire at least 25 credits as provided by Section
365-15   1152.159;
365-16               (2)  have performed or supervised the performance of
365-17   property tax consulting services as the applicant's primary
365-18   occupation for at least four of the seven years preceding the date
365-19   of application; and
365-20               (3)  pass the examination adopted under Section
365-21   1152.160 or hold a professional designation in property taxation
365-22   granted by a nonprofit and voluntary trade association, institute,
365-23   or organization:
365-24                     (A)  whose membership consists primarily of
365-25   persons who represent property owners in property tax and
365-26   transactional tax matters;
365-27                     (B)  that has written experience and examination
 366-1   requirements for granting the designation; and
 366-2                     (C)  that subscribes to a code of professional
 366-3   conduct or ethics.  (V.A.C.S. Art. 8886, Sec. 3(c).)
 366-4         Sec. 1152.158.  REGISTRATION OF CERTAIN REAL ESTATE BROKERS.
 366-5   Sections 1152.156 and 1152.157 do not apply to a person who:
 366-6               (1)  applied for registration before March 1, 1992;
 366-7               (2)  on the date of application held an active real
 366-8   estate broker license under The Real Estate License Act (Article
 366-9   6573a, Vernon's Texas Civil Statutes), as that law existed on the
366-10   application date; and
366-11               (3)  does not perform or supervise the performance of
366-12   property tax consulting services for compensation in connection
366-13   with personal property.  (V.A.C.S. Art. 8886, Sec. 2(f) (part).)
366-14         Sec. 1152.159.  CREDITS FOR SENIOR PROPERTY TAX CONSULTANT
366-15   APPLICANTS. (a)  The commissioner shall grant credit to an
366-16   applicant for registration as a senior property tax consultant as
366-17   follows:
366-18               (1)  two credits for each year the applicant completed
366-19   at an institution of higher education that meets program and
366-20   accreditation standards comparable to those for public institutions
366-21   of higher education as determined by the Texas Higher Education
366-22   Coordinating Board, not to exceed six credits;
366-23               (2)  four credits to an applicant who holds a
366-24   bachelor's degree or equivalent from an institution of higher
366-25   education described by Subdivision (1); and
366-26               (3)  one credit for each year in excess of five years
366-27   that the applicant's primary occupation involved the performance or
 367-1   supervision of property tax consulting services or property
 367-2   appraisal, assessment, or taxation, not to exceed 10 credits.
 367-3         (b)  The commissioner may grant additional credits to an
 367-4   applicant for registration as a senior property tax consultant for:
 367-5               (1)  successful completion of educational programs or
 367-6   courses on:
 367-7                     (A)  property taxation;
 367-8                     (B)  the property tax system;
 367-9                     (C)  property tax administration;
367-10                     (D)  ethical standards; or
367-11                     (E)  general principles of appraisal, accounting,
367-12   and law as they relate to property tax consulting services;
367-13               (2)  completion of other educational programs or
367-14   courses; or
367-15               (3)  advanced or postgraduate educational achievement,
367-16   occupational experience, professional licenses, or professional
367-17   designations obtained from recognized associations, institutes, or
367-18   organizations.
367-19         (c)  The commissioner may assign not less than one credit or
367-20   more than five credits to a program or course described by
367-21   Subsection (b)(1).  In determining the amount of credit for the
367-22   program or course, the commissioner shall consider:
367-23               (1)  the nature of the program or course;
367-24               (2)  the number of actual instructional hours in the
367-25   program or course;
367-26               (3)  whether an examination is required for successful
367-27   completion of the program or course;  and
 368-1               (4)  other factors the commissioner determines
 368-2   appropriate. (V.A.C.S. Art. 8886, Secs.  3(d), (e), (f), (g), (h).)
 368-3         Sec. 1152.160.  SENIOR PROPERTY TAX CONSULTANT REGISTRATION
 368-4   EXAMINATION. (a)  The commissioner shall:
 368-5               (1)  adopt an examination for registration as a senior
 368-6   property tax consultant; and
 368-7               (2)  establish the standards for passing the
 368-8   examination.
 368-9         (b)  The department shall offer the examination at times and
368-10   places designated by the commissioner.
368-11         (c)  To be eligible to take the examination, an applicant
368-12   must pay to the department an examination fee. The commissioner by
368-13   rule may establish conditions for refunding the examination fee to
368-14   an applicant who does not take the examination.
368-15         (d)  The examination must:
368-16               (1)  test the applicant's knowledge of:
368-17                     (A)  property taxation;
368-18                     (B)  the property tax system;
368-19                     (C)  property tax administration;
368-20                     (D)  ethical standards; and
368-21                     (E)  general principles of appraisal, accounting,
368-22   and law as they relate to property tax consulting services; and
368-23               (2)  be graded according to rules adopted by the
368-24   commissioner. (V.A.C.S. Art. 8886, Secs. 4(a), (b), (c).)
368-25         Sec. 1152.161.  EXAMINATION RESULTS. (a)  Not later than the
368-26   30th day after the date an examination is administered, the
368-27   commission shall notify each examinee of the results of the
 369-1   examination.
 369-2         (b)  If requested in writing by a person who fails an
 369-3   examination, the commission shall provide to the person an analysis
 369-4   of the person's performance on the examination. (V.A.C.S.
 369-5   Art. 8886, Secs. 4(d), (e).)
 369-6         Sec. 1152.162.  ISSUANCE OF CERTIFICATE OF REGISTRATION. (a)
 369-7   The commissioner shall act on an initial application for
 369-8   registration filed under Section 1152.154 not later than the 31st
 369-9   day after the date the department receives the application.
369-10         (b)  The commissioner shall issue to an applicant who
369-11   qualifies for registration the appropriate certificate of
369-12   registration. (V.A.C.S. Art. 8886, Secs. 5(b), (d) (part).)
369-13         Sec. 1152.163.  WAIVER FOR APPLICANT REGISTERED OR LICENSED
369-14   IN ANOTHER STATE. (a)  The commissioner may waive any registration
369-15   requirement for an applicant who holds a certificate of
369-16   registration or license issued by another state that has
369-17   registration or licensing requirements that were, on the date of
369-18   registration or licensing, substantially equal to those of this
369-19   state.
369-20         (b)  An applicant for registration under this section must:
369-21               (1)  apply in the same manner as other applicants; and
369-22               (2)  submit to the department any document or other
369-23   evidence required by the department to substantiate the applicant's
369-24   qualifications. (V.A.C.S. Art. 8886, Sec. 5(c).)
369-25           (Sections 1152.164-1152.200 reserved for expansion)
369-26          SUBCHAPTER E.  RENEWAL OF CERTIFICATE OF REGISTRATION
369-27         Sec. 1152.201.  TERM OF CERTIFICATE OF REGISTRATION. Except
 370-1   as otherwise provided by the commission, a certificate of
 370-2   registration expires on the second anniversary of the date of
 370-3   issuance.  (V.A.C.S. Art. 8886, Sec. 5(d) (part).)
 370-4         Sec. 1152.202.  PROCEDURE FOR RENEWAL. (a)  The commissioner
 370-5   shall issue to an eligible registrant a certificate of renewal of
 370-6   registration on the timely receipt of the required renewal fee.
 370-7   The certificate expires on the second anniversary of the date of
 370-8   issuance.
 370-9         (b)  A person whose registration has been expired for less
370-10   than 30 days may renew the registration by paying the renewal fee
370-11   and a late registration renewal fee.
370-12         (c)  A person whose registration has been expired for one
370-13   year or more may not renew the registration.  The person may obtain
370-14   a new certificate of registration by complying with the
370-15   requirements for obtaining an original certificate of registration.
370-16   (V.A.C.S. Art. 8886, Secs. 5(e), (g).)
370-17         Sec. 1152.203.  REQUIRED CONTINUING EDUCATION. The
370-18   commissioner by rule shall require that, to renew a registration,
370-19   the registrant complete during the term of the registration at
370-20   least 20 classroom hours of continuing education courses recognized
370-21   by the commissioner at least six hours of which include instruction
370-22   on laws and legal issues in this state related to property tax
370-23   consulting services.  (V.A.C.S. Art. 8886, Sec. 5(f).)
370-24         Sec. 1152.204.  RECOGNITION OF EDUCATIONAL PROGRAMS AND
370-25   COURSES. (a)  The commissioner by rule shall recognize appropriate
370-26   continuing education programs for registrants.
370-27         (b)  The commissioner shall recognize a continuing education
 371-1   course, including a course on the legal issues and law related to
 371-2   property tax consulting services, that is:
 371-3               (1)  approved by the Texas Real Estate Commission or
 371-4   the Texas Appraiser Licensing and Certification Board; and
 371-5               (2)  completed by a registrant who also holds:
 371-6                     (A)  an active real estate broker license or an
 371-7   active real estate salesperson license under Chapter 1101; or
 371-8                     (B)  an active real estate appraiser license or
 371-9   certificate under Chapter 1103.
371-10         (c)  The commissioner may recognize an educational program or
371-11   course:
371-12               (1)  related to property tax consulting services; and
371-13               (2)  offered or sponsored by a public provider or a
371-14   recognized private provider, including:
371-15                     (A)  the comptroller;
371-16                     (B)  the State Bar of Texas;
371-17                     (C)  the Texas Real Estate Commission;
371-18                     (D)  an institution of higher education that
371-19   meets program and accreditation standards comparable to those for
371-20   public institutions of higher education as determined by the Texas
371-21   Higher Education Coordinating Board; or
371-22                     (E)  a nonprofit and voluntary trade association,
371-23   institute, or organization:
371-24                           (i)  whose membership consists primarily of
371-25   persons who represent property owners in property tax or
371-26   transactional tax matters;
371-27                           (ii)  that has written experience and
 372-1   examination requirements for membership or for granting
 372-2   professional designation to its members; and
 372-3                           (iii)  that subscribes to a code of
 372-4   professional conduct or ethics.
 372-5         (d)  The commissioner may recognize a private provider of an
 372-6   educational program or course if the provider:
 372-7               (1)  applies to the department on a printed form
 372-8   prescribed by the commissioner; and
 372-9               (2)  pays in the amounts set by the commission:
372-10                     (A)  a nonrefundable application fee; and
372-11                     (B)  an educational provider's fee.
372-12         (e)  The department shall refund the educational provider's
372-13   fee if the commissioner does not recognize the provider's
372-14   educational program or course.  (V.A.C.S. Art. 8886, Secs. 5(h),
372-15   6(b), (c), (d).)
372-16           (Sections 1152.205-1152.250 reserved for expansion)
372-17                SUBCHAPTER F.  PENALTIES AND ENFORCEMENT
372-18         Sec. 1152.251.  DISCIPLINARY POWERS OF COMMISSIONER. After a
372-19   hearing, the commissioner may deny a certificate of registration
372-20   and may impose an administrative sanction or penalty and seek
372-21   injunctive relief and a civil penalty against a registrant as
372-22   provided by Chapter 51 for:
372-23               (1)  a violation of this chapter or a rule applicable
372-24   to the registrant adopted by the commissioner under this chapter;
372-25               (2)  gross incompetency in the performance of property
372-26   tax consulting services;
372-27               (3)  dishonesty or fraud committed while performing
 373-1   property tax consulting services;  or
 373-2               (4)  a violation of the standards of ethics adopted by
 373-3   the commissioner. (V.A.C.S. Art. 8886, Sec. 8.)
 373-4         Sec. 1152.252.  CRIMINAL PENALTIES. (a)  A person required to
 373-5   be registered under this chapter commits an offense if the person:
 373-6               (1)  is not registered under this chapter; and
 373-7               (2)  performs or offers to perform property tax
 373-8   consulting services for compensation.
 373-9         (b)  A person commits an offense if the person:
373-10               (1)  knows that a person required to be registered
373-11   under this chapter is not registered; and
373-12               (2)  represents that the person required to be
373-13   registered is a property tax consultant, agent, counselor, advisor,
373-14   or representative.
373-15         (c)  An offense under this section is a Class B misdemeanor.
373-16   (V.A.C.S. Art. 8886, Sec. 9.)
373-17               (Chapters 1153-1200 reserved for expansion)
373-18    SUBTITLE C.  REGULATION OF CERTAIN TYPES OF HOUSING AND BUILDINGS
373-19                   CHAPTER 1201.  MANUFACTURED HOUSING
373-20                    SUBCHAPTER A. GENERAL PROVISIONS
373-21   Sec. 1201.001.  SHORT TITLE 
373-22   Sec. 1201.002.  LEGISLATIVE FINDINGS AND PURPOSES;
373-23                     LIBERAL CONSTRUCTION 
373-24   Sec. 1201.003.  DEFINITIONS 
373-25   Sec. 1201.004.  DEFINITIONS BINDING 
373-26   Sec. 1201.005.  CONSUMER WAIVER VOID 
373-27   Sec. 1201.006.  APPLICABILITY OF BUSINESS & COMMERCE CODE 
 374-1   Sec. 1201.007.  EXCEPTION FOR REAL ESTATE BROKERS AND
 374-2                     SALESPERSONS 
 374-3   Sec. 1201.008.  REGULATION BY MUNICIPALITY 
 374-4           (Sections 1201.009-1201.050 reserved for expansion)
 374-5               SUBCHAPTER B.  DEPARTMENT POWERS AND DUTIES
 374-6   Sec. 1201.051.  ADMINISTRATION AND ENFORCEMENT OF CHAPTER 
 374-7   Sec. 1201.052.  GENERAL RULEMAKING AUTHORITY 
 374-8   Sec. 1201.053.  RULES RELATING TO COMPLIANCE WITH NATIONAL
 374-9                     STANDARDS FOR MANUFACTURED HOUSING
374-10                     CONSTRUCTION AND SAFETY; STATE PLAN 
374-11   Sec. 1201.054.  PROCEDURE FOR ADOPTING RULES 
374-12   Sec. 1201.055.  INSPECTION, REVIEW, AND RELATED FEES 
374-13   Sec. 1201.056.  LICENSE FEES 
374-14   Sec. 1201.057.  INSTRUCTION FEE 
374-15   Sec. 1201.058.  AMOUNT OF FEES 
374-16   Sec. 1201.059.  TITLE FEES 
374-17   Sec. 1201.060.  VENUE FOR HEARING 
374-18   Sec. 1201.061.  COOPERATION WITH LOCAL GOVERNMENTAL UNITS 
374-19   Sec. 1201.062.  SEAL PROPERTY OF DEPARTMENT 
374-20           (Sections 1201.063-1201.100 reserved for expansion)
374-21                        SUBCHAPTER C.  LICENSING
374-22   Sec. 1201.101.  LICENSE REQUIRED 
374-23   Sec. 1201.102.  EXCEPTIONS TO LICENSE REQUIREMENT 
374-24   Sec. 1201.103.  LICENSE APPLICATION 
374-25   Sec. 1201.104.  QUALIFICATIONS FOR LICENSE 
374-26   Sec. 1201.105.  SECURITY REQUIRED 
374-27   Sec. 1201.106.  SECURITY:  AMOUNT 
 375-1   Sec. 1201.107.  SECURITY:  LOCATION 
 375-2   Sec. 1201.108.  SECURITY:  CHANGE IN OWNERSHIP OR
 375-3                     LOCATION 
 375-4   Sec. 1201.109.  SECURITY:  CANCELLATION OR OTHER
 375-5                     IMPAIRMENT 
 375-6   Sec. 1201.110.  SECURITY:  DURATION 
 375-7   Sec. 1201.111.  EXCEPTIONS TO SECURITY AND INSTRUCTION
 375-8                     REQUIREMENTS 
 375-9   Sec. 1201.112.  TEMPORARY INSTALLER'S LICENSE 
375-10   Sec. 1201.113.  CERTIFICATION OR CONTINUING EDUCATION
375-11                     PROGRAM 
375-12   Sec. 1201.114.  LICENSE RENEWAL 
375-13           (Sections 1201.115-1201.150 reserved for expansion)
375-14                         SUBCHAPTER D.  PRACTICE
375-15   Sec. 1201.151.  REFUND OF DEPOSIT 
375-16   Sec. 1201.152.  VOIDABLE CONTRACT 
375-17   Sec. 1201.153.  FORMALDEHYDE HEALTH NOTICE 
375-18   Sec. 1201.154.  SUFFICIENCY OF FORMALDEHYDE HEALTH NOTICE;
375-19                     RETAILER AND MANUFACTURER COMPLIANCE 
375-20   Sec. 1201.155.  DISCLAIMER OF IMPLIED WARRANTY 
375-21   Sec. 1201.156.  ADVERTISEMENT AS OFFER 
375-22   Sec. 1201.157.  RETAILER AS WAREHOUSEMAN 
375-23   Sec. 1201.158.  SALESPERSON 
375-24   Sec. 1201.159.  BROKER 
375-25   Sec. 1201.160.  PROOF OF INSURANCE REQUIRED FOR INSTALLER 
375-26   Sec. 1201.161.  TRANSPORTATION OF MANUFACTURED HOUSING 
375-27           (Sections 1201.162-1201.200 reserved for expansion)
 376-1                 SUBCHAPTER E.  MANUFACTURED HOME TITLES
 376-2   Sec. 1201.201.  DEFINITIONS 
 376-3   Sec. 1201.202.  APPLICATION OF CHAPTER TO CERTAIN
 376-4                     CERTIFICATES OF TITLE OR LIENS 
 376-5   Sec. 1201.203.  FORMS; RULES 
 376-6   Sec. 1201.204.  MANUFACTURER'S CERTIFICATE 
 376-7   Sec. 1201.205.  DOCUMENT OF TITLE CONTENTS 
 376-8   Sec. 1201.206.  APPLICATION FOR ISSUANCE OF TITLE 
 376-9   Sec. 1201.207.  ISSUANCE OF TITLE 
376-10   Sec. 1201.208.  PAYMENT OF TAXES REQUIRED FOR ISSUANCE OF
376-11                     TITLE 
376-12   Sec. 1201.209.  GROUNDS FOR REFUSAL TO ISSUE OR FOR
376-13                     SUSPENSION OR REVOCATION OF TITLE 
376-14   Sec. 1201.210.  PROCEDURE FOR REFUSAL TO ISSUE OR
376-15                     SUSPENSION OR REVOCATION OF TITLE 
376-16   Sec. 1201.211.  TRANSFER OF TITLE 
376-17   Sec. 1201.212.  TRANSFER OF TITLE BY OPERATION OF LAW 
376-18   Sec. 1201.213.  ELIGIBILITY TO SIGN RIGHT OF SURVIVORSHIP
376-19                     AGREEMENT 
376-20   Sec. 1201.214.  LOST OR DESTROYED DOCUMENT OF TITLE 
376-21   Sec. 1201.215.  PREVIOUS OWNER OR LIENHOLDER  UNAVAILABLE 
376-22   Sec. 1201.216.  CHANGE IN USE 
376-23   Sec. 1201.217.  PERMANENT ATTACHMENT OF MANUFACTURED HOME:
376-24                     CANCELLATION OF TITLE 
376-25   Sec. 1201.218.  PERMANENT ATTACHMENT OF MANUFACTURED HOME:
376-26                     EXCEPTION TO CANCELLATION OF TITLE 
376-27   Sec. 1201.219.  PERFECTION AND EFFECT OF LIENS 
 377-1   Sec. 1201.220.  REPORT TO COUNTY TAX ASSESSOR-COLLECTOR 
 377-2   Sec. 1201.221.  INFORMATION ON OWNERSHIP AND TAX LIEN 
 377-3           (Sections 1201.222-1201.250 reserved for expansion)
 377-4                        SUBCHAPTER F.  STANDARDS
 377-5   Sec. 1201.251.  STANDARDS AND REQUIREMENTS ADOPTED
 377-6                     BY DIRECTOR 
 377-7   Sec. 1201.252.  POWER OF LOCAL GOVERNMENTAL UNIT TO ADOPT
 377-8                     DIFFERENT STANDARD 
 377-9   Sec. 1201.253.  HEARING ON STANDARD OR REQUIREMENT 
377-10   Sec. 1201.254.  EFFECTIVE DATE OF REQUIREMENT OR
377-11                     STANDARD 
377-12   Sec. 1201.255.  INSTALLATION OF MANUFACTURED HOUSING 
377-13   Sec. 1201.256.  WIND ZONE REGULATIONS 
377-14           (Sections 1201.257-1201.300 reserved for expansion)
377-15                SUBCHAPTER G.  INSPECTIONS AND MONITORING
377-16   Sec. 1201.301.  STATE INSPECTORS 
377-17   Sec. 1201.302.  INSPECTION BY ENTITIES OTHER THAN
377-18                     DEPARTMENT 
377-19   Sec. 1201.303.  INSPECTIONS 
377-20   Sec. 1201.304.  INSPECTION SEARCH WARRANTS 
377-21   Sec. 1201.305.  PROGRAM MONITORING 
377-22           (Sections 1201.306-1201.350 reserved for expansion)
377-23                        SUBCHAPTER H.  WARRANTIES
377-24   Sec. 1201.351.  MANUFACTURER'S WARRANTY 
377-25   Sec. 1201.352.  RETAILER'S WARRANTY 
377-26   Sec. 1201.353.  NOTICE OF NEED FOR WARRANTY SERVICE 
377-27   Sec. 1201.354.  CORRECTIVE ACTION REQUIRED 
 378-1   Sec. 1201.355.  CONSUMER COMPLAINT HOME INSPECTION 
 378-2   Sec. 1201.356.  REPORT AND ORDER; AMENDMENT; COMPLIANCE 
 378-3   Sec. 1201.357.  FAILURE TO PROVIDE WARRANTY SERVICE 
 378-4   Sec. 1201.358.  FAILURE TO SHOW GOOD CAUSE; HEARING RESULTS 
 378-5   Sec. 1201.359.  APPLICATION OF WARRANTIES IF HUD-CODE
 378-6                     MANUFACTURED HOME MOVED 
 378-7   Sec. 1201.360.  WARRANTY FOR HUD-CODE MANUFACTURED HOME
 378-8                     PERMANENTLY ATTACHED TO REAL PROPERTY 
 378-9   Sec. 1201.361.  INSTALLER'S WARRANTY 
378-10           (Sections 1201.362-1201.400 reserved for expansion)
378-11                 SUBCHAPTER I.  MANUFACTURED HOMEOWNERS'
378-12                           RECOVERY TRUST FUND
378-13   Sec. 1201.401.  MANUFACTURED HOMEOWNERS' RECOVERY TRUST
378-14                     FUND 
378-15   Sec. 1201.402.  ADMINISTRATION OF TRUST FUND 
378-16   Sec. 1201.403.  AMOUNT RESERVED IN TRUST FUND; PAYMENT OF
378-17                     COSTS 
378-18   Sec. 1201.404.  CONSUMER COMPENSATION 
378-19   Sec. 1201.405.  LIMITATIONS ON CLAIMS 
378-20   Sec. 1201.406.  PROCEDURE FOR RECOVERY FROM TRUST FUND 
378-21   Sec. 1201.407.  DISAGREEMENT OF PARTIES; INFORMAL DISPUTE
378-22                     RESOLUTION PROCESS 
378-23   Sec. 1201.408.  AGREEMENT OF PARTIES; ARBITRATION 
378-24   Sec. 1201.409.  PAYMENT BY SURETY OR FROM OTHER SECURITY 
378-25   Sec. 1201.410.  INFORMATIONAL PAMPHLET 
378-26           (Sections 1201.411-1201.450 reserved for expansion)
378-27           SUBCHAPTER J.  USED OR SALVAGED MANUFACTURED HOMES
 379-1   Sec. 1201.451.  TRANSFER OF GOOD AND MARKETABLE TITLE
 379-2                     REQUIRED 
 379-3   Sec. 1201.452.  SEAL OR LABEL REQUIRED 
 379-4   Sec. 1201.453.  HABITABILITY 
 379-5   Sec. 1201.454.  HABITABILITY:  PROHIBITED ALTERATION
 379-6                     OR REPLACEMENT 
 379-7   Sec. 1201.455.  WARRANTY OF HABITABILITY REQUIRED 
 379-8   Sec. 1201.456.  HABITABILITY:  EXCEPTION TO WARRANTY
 379-9                     REQUIREMENT 
379-10   Sec. 1201.457.  HABITABILITY:  CHANGE TO OR FROM BUSINESS
379-11                     USE 
379-12   Sec. 1201.458.  HABITABILITY:  EXCEPTION FOR CERTAIN
379-13                     GOVERNMENTAL OR NONPROFIT ENTITIES 
379-14   Sec. 1201.459.  COMPLIANCE NOT REQUIRED FOR SALE FOR
379-15                     COLLECTION OF DELINQUENT TAXES 
379-16   Sec. 1201.460.  COMPLIANCE NOT REQUIRED FOR LIENHOLDER 
379-17   Sec. 1201.461.  SALVAGED MANUFACTURED HOME 
379-18           (Sections 1201.462-1201.500 reserved for expansion)
379-19                   SUBCHAPTER K.  PROHIBITED PRACTICES
379-20   Sec. 1201.501.  PROHIBITED CONSTRUCTION BY MANUFACTURER 
379-21   Sec. 1201.502.  PROHIBITED SHIPPING BY MANUFACTURER 
379-22   Sec. 1201.503.  PROHIBITED ALTERATION 
379-23   Sec. 1201.504.  PROHIBITED SALE, EXCHANGE, OR
379-24                     LEASE-PURCHASE 
379-25   Sec. 1201.505.  PROHIBITED PURCHASE 
379-26   Sec. 1201.506.  CREDIT 
379-27   Sec. 1201.507.  FALSE OR MISLEADING INFORMATION 
 380-1   Sec. 1201.508.  DOWN PAYMENT 
 380-2   Sec. 1201.509.  PROHIBITED RETENTION OF DEPOSIT 
 380-3   Sec. 1201.510.  PROHIBITED INSTALLATION OF AIR CONDITIONING
 380-4                     EQUIPMENT 
 380-5   Sec. 1201.511.  PROHIBITED REAL ESTATE TRANSACTION 
 380-6           (Sections 1201.512-1201.550 reserved for expansion)
 380-7                 SUBCHAPTER L.  DISCIPLINARY PROCEDURES
 380-8   Sec. 1201.551.  DENIAL OF LICENSE; DISCIPLINARY ACTION 
 380-9   Sec. 1201.552.  HEARING CONCERNING LICENSE 
380-10   Sec. 1201.553.  JUDICIAL REVIEW 
380-11           (Sections 1201.554-1201.600 reserved for expansion)
380-12           SUBCHAPTER M.  ENFORCEMENT PROVISIONS AND PENALTIES
380-13   Sec. 1201.601.  ACTION AGAINST RETAILER OR MANUFACTURER:
380-14                     HOLDER OF DEBT INSTRUMENT 
380-15   Sec. 1201.602.  ACTION AGAINST MANUFACTURER, INSTALLER, OR
380-16                     RETAILER:  ABATEMENT OR BAR 
380-17   Sec. 1201.603.  DECEPTIVE TRADE PRACTICES 
380-18   Sec. 1201.604.  CONSUMER RECOVERY FOR PROHIBITED
380-19                     RETENTION OF DEPOSIT 
380-20   Sec. 1201.605.  ADMINISTRATIVE PENALTY 
380-21   Sec. 1201.606.  CRIMINAL PENALTY 
380-22                   CHAPTER 1201.  MANUFACTURED HOUSING
380-23                    SUBCHAPTER A. GENERAL PROVISIONS
380-24         Sec. 1201.001.  SHORT TITLE. This chapter may be cited as the
380-25   Texas Manufactured Housing Standards Act. (V.A.C.S. Art. 5221f,
380-26   Sec. 1.)
380-27         Sec. 1201.002.  LEGISLATIVE FINDINGS AND PURPOSES; LIBERAL
 381-1   CONSTRUCTION. (a)  The legislature finds that:
 381-2               (1)  there is a growing need to provide state residents
 381-3   with safe, affordable, and well-constructed housing;
 381-4               (2)  manufactured housing has become a primary housing
 381-5   source for many state residents;
 381-6               (3)  statutes and rules in effect before September 1,
 381-7   1969, were inadequate to:
 381-8                     (A)  fully protect the consumer; and
 381-9                     (B)  prevent certain discrimination in this state
381-10   regarding manufactured housing;
381-11               (4)  the state is responsible for:
381-12                     (A)  protecting state residents who want to
381-13   purchase manufactured housing by regulating the construction and
381-14   installation of manufactured housing;
381-15                     (B)  providing economic stability to manufactured
381-16   housing manufacturers, retailers, installers, and brokers; and
381-17                     (C)  providing fair and effective consumer
381-18   remedies; and
381-19               (5)  the expansion of certain regulatory powers is:
381-20                     (A)  necessary to address the problems described
381-21   by Subdivisions (1)-(4); and
381-22                     (B)  the most economical and efficient means to
381-23   address those problems and serve the public interest.
381-24         (b)  The purposes of this chapter are to:
381-25               (1)  encourage the construction of housing for state
381-26   residents; and
381-27               (2)  improve the general welfare and safety of
 382-1   purchasers of manufactured housing in this state.
 382-2         (c)  This chapter shall be liberally construed to promote its
 382-3   policies and accomplish its purposes.  (V.A.C.S. Art. 5221f, Secs.
 382-4   2, 18(c) (part).)
 382-5         Sec. 1201.003.  DEFINITIONS. In this chapter:
 382-6               (1)  "Advertisement" means a commercial message that
 382-7   promotes the sale, exchange, or lease-purchase of a manufactured
 382-8   home and that is presented on radio, television, a public-address
 382-9   system, or electronic media or appears in a newspaper, a magazine,
382-10   a flyer, a catalog, direct mail literature, an inside or outside
382-11   sign or window display, point-of-sale literature, a price tag, or
382-12   other printed material. The term does not include educational
382-13   material or material required by law.
382-14               (2)  "Alteration" means the replacement, addition,
382-15   modification, or removal of equipment in a new manufactured home
382-16   after sale by a manufacturer to a retailer but before sale and
382-17   installation by a retailer to a purchaser in a manner that may
382-18   affect the home's construction, fire safety, occupancy, or
382-19   plumbing, heating, or electrical system.  The term includes the
382-20   modification of a manufactured home in a manner that may affect the
382-21   home's compliance with the appropriate standards but does not
382-22   include:
382-23                     (A)  the repair or replacement of a component or
382-24   appliance that requires plug-in to an electrical receptacle, if the
382-25   replaced item is of the same configuration and rating as the
382-26   replacement; or
382-27                     (B)  the addition of an appliance that requires
 383-1   plug-in to an electrical receptacle and that was not provided with
 383-2   the manufactured home by the manufacturer, if the rating of the
 383-3   appliance does not exceed the rating of the receptacle to which the
 383-4   appliance is connected.
 383-5               (3)  "Board" means the governing board of the
 383-6   department.
 383-7               (4)  "Broker" means a person engaged by one or more
 383-8   other persons to negotiate or offer to negotiate a bargain or
 383-9   contract for the sale, exchange, or lease-purchase of a
383-10   manufactured home for which a certificate or other document of
383-11   title has been issued and is outstanding.  The term does not
383-12   include a person who maintains a location for the display of
383-13   manufactured homes.
383-14               (5)  "Business use" means the use of a manufactured
383-15   home for a purpose other than as a dwelling.
383-16               (6)  "Consumer" means a person, other than a person
383-17   licensed under this chapter, who seeks to acquire or acquires by
383-18   purchase, exchange, or lease-purchase a manufactured home.
383-19               (7)  "Department" means the Texas Department of Housing
383-20   and Community Affairs.
383-21               (8)  "Director" means the executive director of the
383-22   department.
383-23               (9)  "HUD-code manufactured home":
383-24                     (A)  means a structure:
383-25                           (i)  constructed on or after June 15, 1976,
383-26   according to the rules of the United States Department of Housing
383-27   and Urban Development;
 384-1                           (ii)  built on a permanent chassis;
 384-2                           (iii)  designed for use as a dwelling with
 384-3   or without a permanent foundation when the structure is connected
 384-4   to the required utilities;
 384-5                           (iv)  transportable in one or more
 384-6   sections; and
 384-7                           (v)  in the traveling mode, at least eight
 384-8   body feet in width or at least 40 body feet in length or, when
 384-9   erected on site, at least 320 square feet;
384-10                     (B)  includes the plumbing, heating, air
384-11   conditioning, and electrical systems of the home; and
384-12                     (C)  does not include a recreational vehicle as
384-13   defined by 24 C.F.R. Section 3282.8(g).
384-14               (10)  "Installation" means the temporary or permanent
384-15   construction of the foundation system and the placement of a
384-16   manufactured home or manufactured home component on the foundation.
384-17   The term includes supporting, blocking, leveling, securing,
384-18   anchoring, and properly connecting multiple or expandable sections
384-19   or components and making minor adjustments.
384-20               (11)  "Installer" means a person, including a retailer
384-21   or manufacturer, who contracts to perform or performs an
384-22   installation function on manufactured housing.
384-23               (12)  "Label" means a device or insignia that is:
384-24                     (A)  issued by the director to indicate
384-25   compliance with the standards, rules, and regulations established
384-26   by the United States Department of Housing and Urban Development;
384-27   and
 385-1                     (B)  permanently attached to each transportable
 385-2   section of each HUD-code manufactured home constructed after June
 385-3   15, 1976, for sale to a consumer.
 385-4               (13)  "Lease-purchase" means entering into a lease
 385-5   contract containing a provision conferring on the lessee an option
 385-6   to purchase a manufactured home.
 385-7               (14)  "License holder" means a person who holds a
 385-8   department-issued license as a manufacturer, retailer, broker,
 385-9   rebuilder, salesperson, or installer.
385-10               (15)  "Manufactured home" or "manufactured housing"
385-11   means a HUD-code manufactured home or a mobile home.
385-12               (16)  "Manufacturer" means a person who constructs or
385-13   assembles manufactured housing for sale, exchange, or
385-14   lease-purchase in this state.
385-15               (17)  "Mobile home":
385-16                     (A)  means a structure:
385-17                           (i)  constructed before June 15, 1976;
385-18                           (ii)  built on a permanent chassis;
385-19                           (iii)  designed for use as a dwelling with
385-20   or without a permanent foundation when the structure is connected
385-21   to the required utilities;
385-22                           (iv)  transportable in one or more
385-23   sections; and
385-24                           (v)  in the traveling mode, at least eight
385-25   body feet in width or at least 40 body feet in length or, when
385-26   erected on site, at least 320 square feet; and
385-27                     (B)  includes the plumbing, heating, air
 386-1   conditioning, and electrical systems of the home.
 386-2               (18)  "Person" means an individual or a partnership,
 386-3   company, corporation, association, or other group, however
 386-4   organized.
 386-5               (19)  "Retailer" means a person who:
 386-6                     (A)  is engaged in the business of buying for
 386-7   resale, selling, or exchanging manufactured homes or offering
 386-8   manufactured homes for sale, exchange, or lease-purchase to
 386-9   consumers, including a person who maintains a location for the
386-10   display of manufactured homes; and
386-11                     (B)  sells, exchanges, or lease-purchases at
386-12   least two manufactured homes to consumers in a 12-month period.
386-13               (20)  "Salesperson" means a person who, as an employee
386-14   or agent of a retailer or broker, sells or lease-purchases or
386-15   offers to sell or lease-purchase manufactured housing to a consumer
386-16   for any form of compensation.
386-17               (21)  "Salvaged manufactured home" means a manufactured
386-18   home determined to be salvaged under Section 1201.461.
386-19               (22)  "Seal" means a device or insignia issued by the
386-20   director that, for title purposes, is to be attached to a used
386-21   manufactured home as required by the director.
386-22               (23)  "Standards code" means the Texas Manufactured
386-23   Housing Standards Code.
386-24               (24)  "Trust fund" means the manufactured homeowners'
386-25   recovery trust fund.  (V.A.C.S. Art. 5221f, Secs. 3(1) (part), (2),
386-26   (3), (4) (part), (5), (6), (7), (8), (9), (10), (11), (12), (13),
386-27   (14), (15), (16), (17), (18), (19), (20), (21) (part), 7(m) (part),
 387-1   8(b) (part), as amended Acts 76th Leg., R.S., Chs. 351 and 1369;
 387-2   New.)
 387-3         Sec. 1201.004.  DEFINITIONS BINDING. The definitions of
 387-4   "mobile home," "HUD-code manufactured home," and "manufactured
 387-5   housing" provided by Section 1201.003 are binding as a matter of
 387-6   law on each person and agency in this state, including a home-rule
 387-7   municipality or other political subdivision.  A mobile home is not
 387-8   a HUD-code manufactured home and a HUD-code manufactured home is
 387-9   not a mobile home for any purpose under state law.  Those terms may
387-10   not be defined in a manner that is not identical to the definitions
387-11   provided by Section 1201.003.  (V.A.C.S. Art. 5221f, Sec. 3A.)
387-12         Sec. 1201.005.  CONSUMER WAIVER VOID. A waiver by a consumer
387-13   of this chapter is contrary to public policy and void. (V.A.C.S.
387-14   Art. 5221f, Sec. 18(a).)
387-15         Sec. 1201.006.  APPLICABILITY OF BUSINESS & COMMERCE CODE.
387-16   The Business & Commerce Code applies to transactions relating to
387-17   manufactured housing except to the extent that it conflicts with
387-18   this chapter.  (V.A.C.S. Art. 5221f, Sec. 19(p).)
387-19         Sec. 1201.007.  EXCEPTION FOR REAL ESTATE BROKERS AND
387-20   SALESPERSONS. This chapter does not:
387-21               (1)  modify or amend Chapter 1101 or 1102; or
387-22               (2)  apply to a person who is licensed as a real estate
387-23   broker or salesperson under Chapter 1101 and who, as agent of a
387-24   buyer or seller, negotiates the sale or lease of a manufactured
387-25   home and the real property to which the home is attached if:
387-26                     (A)  the same person is the record owner of both
387-27   the manufactured home and the real property; and
 388-1                     (B)  the sale or lease occurs in a single real
 388-2   estate transaction.  (V.A.C.S. Art. 5221f, Sec. 18(e).)
 388-3         Sec. 1201.008.  REGULATION BY MUNICIPALITY. (a)  A
 388-4   municipality may prohibit the installation of a mobile home for use
 388-5   as a dwelling in the municipality.  The prohibition must be
 388-6   prospective and may not apply to a mobile home previously legally
 388-7   permitted by and used as a dwelling in the municipality.  If a
 388-8   mobile home is replaced by a HUD-code manufactured home in the
 388-9   municipality, the municipality shall grant a permit for use of the
388-10   manufactured home as a dwelling in the municipality.
388-11         (b)  On application, the municipality shall permit the
388-12   installation of a HUD-code manufactured home for use as a dwelling
388-13   in any area determined appropriate by the municipality, including a
388-14   subdivision, planned unit development, single lot, and rental
388-15   community or park.  An application to install a new HUD-code
388-16   manufactured home for use as a dwelling is considered to be granted
388-17   unless the municipality in writing denies the application and
388-18   states the reason for the denial not later than the 45th day after
388-19   the date the application is received.
388-20         (c)  Subsections (a) and (b) do not affect the validity of an
388-21   otherwise valid deed restriction.
388-22         (d)  Except as approved by the department, a local
388-23   governmental unit may not require a permit, a fee, a bond, or
388-24   insurance for the transportation and installation of manufactured
388-25   housing by a licensed retailer or installer.  This subsection does
388-26   not prohibit the collection of actual costs incurred by a local
388-27   governmental unit that result from the transportation of a
 389-1   manufactured home.  (V.A.C.S. Art. 5221f, Secs. 4A, 18(g).)
 389-2           (Sections 1201.009-1201.050 reserved for expansion)
 389-3               SUBCHAPTER B.  DEPARTMENT POWERS AND DUTIES
 389-4         Sec. 1201.051.  ADMINISTRATION AND ENFORCEMENT OF CHAPTER.
 389-5   The director shall administer and enforce this chapter. (V.A.C.S.
 389-6   Art. 5221f, Sec. 9(a).)
 389-7         Sec. 1201.052.  GENERAL RULEMAKING AUTHORITY. (a)  The
 389-8   director shall adopt rules, issue orders, and otherwise act as
 389-9   necessary to ensure compliance with the purposes of this chapter to
389-10   implement and provide for uniform enforcement of this chapter and
389-11   the standards code.
389-12         (b)  To protect the public health, safety, and welfare and to
389-13   ensure the availability of low cost manufactured housing for all
389-14   consumers, the director shall adopt rules to:
389-15               (1)  protect the interests of consumers who occupy or
389-16   want to purchase or install manufactured housing; and
389-17               (2)  govern the business conduct of license holders.
389-18   (V.A.C.S. Art. 5221f, Secs. 9(b) (part), (m).)
389-19         Sec. 1201.053.  RULES RELATING TO COMPLIANCE WITH NATIONAL
389-20   STANDARDS FOR MANUFACTURED HOUSING CONSTRUCTION AND SAFETY; STATE
389-21   PLAN. (a)  The director shall adopt rules, issue orders, and
389-22   otherwise act as necessary to:
389-23               (1)  comply with the National Manufactured Housing
389-24   Construction and Safety Standards Act of 1974 (42 U.S.C. Section
389-25   5401 et seq.), including adopting and enforcing rules reasonably
389-26   required to implement the notification and correction procedures
389-27   provided by 42 U.S.C. Section 5414; and
 390-1               (2)  provide for the effective enforcement of all
 390-2   HUD-code manufactured housing construction and safety standards in
 390-3   order to have the state plan authorized by the National
 390-4   Manufactured Housing Construction and Safety Standards Act of 1974
 390-5   (42 U.S.C. Section 5401 et seq.) approved by the secretary of
 390-6   housing and urban development.
 390-7         (b)  The state plan described by Subsection (a)(2) must
 390-8   provide for a third-party inspection agency approved by the United
 390-9   States Department of Housing and Urban Development to act as an
390-10   in-plant inspection agency.  (V.A.C.S. Art. 5221f, Secs. 9(b)
390-11   (part), (c).)
390-12         Sec. 1201.054.  PROCEDURE FOR ADOPTING RULES. (a)  Rules must
390-13   be adopted in accordance with Chapter 2001, Government Code, and
390-14   with this section.
390-15         (b)  A proposed rule must be published in the Texas Register
390-16   before the 30th day preceding the date of a public hearing set to
390-17   consider the testimony of interested persons.  Notice of the time
390-18   and place of the public hearing must be published in the Texas
390-19   Register before the 30th day preceding the date of the hearing.
390-20         (c)  A rule as finally adopted must be published in the Texas
390-21   Register and state the rule's effective date.
390-22         (d)  A rule takes effect on the 30th day after the date of
390-23   publication of notice that the rule has been adopted, except that a
390-24   rule relating to installation standards may not take effect later
390-25   than the 60th day after the date of publication of notice.
390-26   (V.A.C.S. Art. 5221f, Secs. 9(e) (part), (f) (part), (g).)
390-27         Sec. 1201.055.  INSPECTION, REVIEW, AND RELATED FEES. (a)
 391-1   With guidance from the federal Housing and Community Development
 391-2   Act of 1974 (42 U.S.C. Section 5301 et seq.) and from the rules and
 391-3   regulations adopted under the National Manufactured Housing
 391-4   Construction and Safety Standards Act of 1974 (42 U.S.C. Section
 391-5   5401 et seq.), the board shall establish fees as follows:
 391-6               (1)  if the department acts as a design approval
 391-7   primary inspection agency, a schedule of fees for the review of
 391-8   HUD-code manufactured home blueprints and supporting information,
 391-9   to be paid by the manufacturer seeking approval of the blueprints
391-10   and supporting information;
391-11               (2)  except as provided by Subsection (e), a fee for
391-12   the inspection of each HUD-code manufactured home manufactured or
391-13   assembled in this state, to be paid by the manufacturer of the
391-14   home;
391-15               (3)  a fee for the inspection of an alteration made to
391-16   the structure or plumbing, heating, or electrical system of a
391-17   HUD-code manufactured home, to be charged on an hourly basis and to
391-18   be paid by the person making the alteration;
391-19               (4)  a fee for the inspection of the rebuilding of a
391-20   salvaged manufactured home, to be paid by the rebuilder;
391-21               (5)  a fee for the inspection of a used manufactured
391-22   home for which the title has been canceled, to determine whether
391-23   the home is habitable for the issuance of a new title; and
391-24               (6)  a fee for the issuance of a seal for a used mobile
391-25   or HUD-code manufactured home.
391-26         (b)  In addition to the fees imposed under Subsections
391-27   (a)(2), (3), and (4), a manufacturer, a person making an
 392-1   alteration, or a rebuilder, as appropriate, shall be charged for
 392-2   the actual cost of travel of a department representative to and
 392-3   from:
 392-4               (1)  the manufacturing facility, for an inspection
 392-5   described by Subsection (a)(2); or
 392-6               (2)  the place of inspection, for an inspection
 392-7   described by Subsection (a)(3) or (4).
 392-8         (c)  The board shall establish a fee for the inspection of
 392-9   the installation of a mobile or HUD-code manufactured home, to be
392-10   paid by the installer of the home.
392-11         (d)  The board shall charge a fee for a consumer complaint
392-12   home inspection requested by a manufacturer or retailer under
392-13   Section 1201.355(b), to be paid by the manufacturer or retailer.
392-14         (e)  The fee described by Subsection (a)(2) does not apply if
392-15   an inspection agency authorized by the United States Department of
392-16   Housing and Urban Development, other than the department, acts as
392-17   the in-plant inspection agency.
392-18         (f)  The fee described by Subsection (c) must accompany
392-19   notice to the department of the exact location of the mobile or
392-20   HUD-code manufactured home.  The department shall make an
392-21   appropriate fee distribution to a local governmental unit that
392-22   performs an inspection under a contract or other official
392-23   designation if that unit does not collect a local inspection fee.
392-24   (V.A.C.S. Art. 5221f, Secs. 11(a), (b), (e).)
392-25         Sec. 1201.056.  LICENSE FEES. The board shall establish fees
392-26   for the issuance and renewal of licenses for:
392-27               (1)  manufacturers;
 393-1               (2)  retailers;
 393-2               (3)  brokers;
 393-3               (4)  salespersons;
 393-4               (5)  rebuilders; and
 393-5               (6)  installers.  (V.A.C.S. Art. 5221f, Sec. 11(c).)
 393-6         Sec. 1201.057.  INSTRUCTION FEE. The board shall charge a fee
 393-7   to each person attending a course of instruction described by
 393-8   Section 1201.104.  (V.A.C.S. Art. 5221f, Sec. 11(d).)
 393-9         Sec. 1201.058.  AMOUNT OF FEES. The board shall establish the
393-10   fees imposed under Sections 1201.055-1201.057 in amounts that are
393-11   reasonable and necessary to cover the cost of administering this
393-12   chapter. (V.A.C.S. Art. 5221f, Sec. 11(g).)
393-13         Sec. 1201.059.  TITLE FEES. (a)  The board shall set fees for
393-14   issuing and canceling titles to manufactured housing.
393-15         (b)  Ten dollars of the fee for each title transaction shall
393-16   be deposited to the credit of the trust fund and used for the
393-17   protection programs described by Subchapter I. (V.A.C.S.
393-18   Art. 5221f, Secs. 13A(c), 19(t) (part).)
393-19         Sec. 1201.060.  VENUE FOR HEARING. A hearing under this
393-20   chapter shall be held in Travis County unless all parties agree to
393-21   another location.  (V.A.C.S. Art. 5221f, Sec. 9(e) (part).)
393-22         Sec. 1201.061.  COOPERATION WITH LOCAL GOVERNMENTAL UNITS.
393-23   The department shall cooperate with all local governmental units in
393-24   this state.  (V.A.C.S. Art. 5221f, Sec. 4(h) (part).)
393-25         Sec. 1201.062.  SEAL PROPERTY OF DEPARTMENT. A seal is the
393-26   property of the department.  (V.A.C.S. Art. 5221f, Sec. 3(21)
393-27   (part).)
 394-1           (Sections 1201.063-1201.100 reserved for expansion)
 394-2                        SUBCHAPTER C.  LICENSING
 394-3         Sec. 1201.101.  LICENSE REQUIRED. (a)  A person may not
 394-4   construct or assemble in this state or ship into this state a new
 394-5   HUD-code manufactured home unless the person holds, at the time the
 394-6   home is constructed or assembled, a manufacturer's license.
 394-7         (b)  Except as otherwise provided by this chapter, a person
 394-8   may not sell, exchange, or lease-purchase or offer to sell,
 394-9   exchange, or lease-purchase two or more manufactured homes to
394-10   consumers in this state in a 12-month period unless the person
394-11   holds a retailer's license.
394-12         (c)  A person may not offer to negotiate or negotiate for
394-13   others a bargain or contract for the sale, exchange, or
394-14   lease-purchase of two or more manufactured homes to consumers in
394-15   this state in a 12-month period unless the person holds a broker's
394-16   license.
394-17         (d)  A person may not perform an installation function on
394-18   manufactured housing in this state unless the person holds an
394-19   installer's license.
394-20         (e)  A person may not repair, rebuild, or otherwise alter a
394-21   salvaged manufactured home unless the person holds a rebuilder's or
394-22   retailer's license.
394-23         (f)  A person may not act as a salesperson of manufactured
394-24   housing unless the person is a license holder.  A retailer or
394-25   broker may not employ or otherwise use the services of a
394-26   salesperson who is not licensed.
394-27         (g)  A person may not make an announcement concerning the
 395-1   sale, exchange, or lease-purchase of, or offer to sell, exchange,
 395-2   or lease-purchase, a manufactured home to a consumer in this state
 395-3   through an advertisement unless the person holds a manufacturer's,
 395-4   retailer's, or broker's license. This subsection does not apply to:
 395-5               (1)  a person to whom a certificate or other document
 395-6   of title has been issued showing the person to be the owner of the
 395-7   home if the person does not offer to sell, exchange, or
 395-8   lease-purchase two or more manufactured homes in a 12-month period;
 395-9   or
395-10               (2)  an advertisement concerning real property to which
395-11   a manufactured home has been permanently attached.  (V.A.C.S.
395-12   Art. 5221f, Secs. 6(f), 7(a), (b), (c), (d) (part), (m) (part), (n)
395-13   (part).)
395-14         Sec. 1201.102.  EXCEPTIONS TO LICENSE REQUIREMENT. (a)  An
395-15   employee who acts as an agent of a license holder is covered by the
395-16   holder's license and is not required to hold an individual license.
395-17         (b)  Except as provided by Section 1201.510, an independent
395-18   contractor or business entity may not operate under the license of
395-19   another business entity except as an agent or subcontractor of a
395-20   licensed installer who is responsible for an installation function
395-21   performed by the agent or subcontractor.
395-22         (c)  In the case of a sole proprietorship, partnership, or
395-23   corporation that holds a retailer's or broker's license, an owner,
395-24   partner, or officer of that entity is not required to apply for a
395-25   salesperson's license if that owner, partner, or officer is
395-26   properly listed in the retailer's or broker's license application.
395-27         (d)  A person who holds a real estate broker's or
 396-1   salesperson's license under Chapter 1101 may act as a broker or
 396-2   salesperson under this chapter without holding a license or filing
 396-3   a bond or other security as required by this chapter if
 396-4   negotiations for the sale, exchange, or lease-purchase of a
 396-5   manufactured home are conducted for a person for whom the holder of
 396-6   the real estate license otherwise acts as a real estate broker or
 396-7   salesperson under Chapter 1101.  (V.A.C.S. Art. 5221f, Secs. 7(i),
 396-8   (m) (part), (s), as added Acts 76th Leg., R.S., Chs. 351 and 1369.)
 396-9         Sec. 1201.103.  LICENSE APPLICATION. (a)  An applicant for a
396-10   license as a manufacturer, retailer, broker, rebuilder, or
396-11   installer must file with the director a license application
396-12   containing:
396-13               (1)  the legal name, address, and telephone number of
396-14   the applicant;
396-15               (2)  the trade name by which the applicant does
396-16   business and, if incorporated, the name registered with the
396-17   secretary of state and the address of the business; and
396-18               (3)  the dates on which the applicant became the owner
396-19   and operator of the business.
396-20         (b)  A license application must be accompanied by:
396-21               (1)  proof of the security required by this subchapter;
396-22   and
396-23               (2)  payment of the fee required for issuance of the
396-24   license.
396-25         (c)  If a change occurs in the information filed with the
396-26   director under Subsection (a), the applicant shall amend the
396-27   application to state the correct information.
 397-1         (d)  An applicant for a salesperson's license must:
 397-2               (1)  file with the director an application providing
 397-3   any information the director considers necessary; and
 397-4               (2)  pay the required fee.  (V.A.C.S. Art. 5221f, Secs.
 397-5   7(e), (f), (h), (m) (part).)
 397-6         Sec. 1201.104.  QUALIFICATIONS FOR LICENSE. (a)  Except as
 397-7   provided by Subsection (e), as a prerequisite for a license, a
 397-8   person who was not licensed or registered with the department or a
 397-9   predecessor agency on September 1, 1987, must attend and complete
397-10   20 hours of instruction in the law, including instruction in
397-11   consumer protection regulations. The director may not issue a
397-12   license to that person until the course of instruction is
397-13   completed.
397-14         (b)  The course of instruction must be offered at least
397-15   quarterly.
397-16         (c)  Instead of the course of instruction:
397-17               (1)  a manufacturer may request that an authorized
397-18   representative of the department present a one-day, in-plant
397-19   training program; or
397-20               (2)  the director may approve a training program for a
397-21   license applicant that is conducted by a nonprofit educational
397-22   institution or foundation.
397-23         (d)  A manufacturer shall reimburse the department for the
397-24   actual cost of a program presented under Subsection (c)(1).
397-25         (e)  Subsection (a) does not apply to a license holder or
397-26   registration holder who applies:
397-27               (1)  for a license for an additional business location;
 398-1               (2)  to renew or reinstate a license; or
 398-2               (3)  for a salesperson's license.
 398-3         (f)  An examination may not be made a prerequisite of
 398-4   licensing.  (V.A.C.S. Art. 5221f, Secs. 7(o), (q).)
 398-5         Sec. 1201.105.  SECURITY REQUIRED. (a)  The department may
 398-6   not issue or renew a license unless a bond or other security in a
 398-7   form prescribed by the director is filed with the department as
 398-8   provided by this subchapter.  The bond or other security is payable
 398-9   to the trust fund.
398-10         (b)  If a bond is filed, the bond must be issued by a company
398-11   authorized to do business in this state and must conform to
398-12   applicable provisions of the Insurance Code.  If other security is
398-13   filed, that security must be maintained in or by a banking
398-14   institution located in this state. (V.A.C.S. Art. 5221f, Secs.
398-15   13(a), (b), (c).)
398-16         Sec. 1201.106.  SECURITY:  AMOUNT. (a)  An applicant for a
398-17   license or a license holder shall file a bond or other security
398-18   under Section 1201.105 for the issuance or renewal of a license in
398-19   the following amount:
398-20               (1)  $100,000 for a manufacturer;
398-21               (2)  $50,000 for a retailer;
398-22               (3)  $30,000 for a rebuilder;
398-23               (4)  $20,000 for a broker; or
398-24               (5)  $10,000 for an installer.
398-25         (b)  To ensure the availability of prompt and satisfactory
398-26   warranty service, a manufacturer that does not have a licensed
398-27   manufacturing plant or other facility in this state from which
 399-1   warranty service and repairs can be provided shall file a bond or
 399-2   other security in the additional amount of $100,000.
 399-3         (c)  The bond or other security is open to successive claims
 399-4   up to the face value of the bond or other security.  The surety is
 399-5   not liable for successive claims in excess of the face value of the
 399-6   bond, regardless of the number of years the bond remains in force.
 399-7   (V.A.C.S. Art. 5221f, Secs. 13(d), (f) (part).)
 399-8         Sec. 1201.107.  SECURITY:  LOCATION. (a)  A manufacturer,
 399-9   retailer, broker, or installer who maintains a place of business at
399-10   one or more locations shall file with the department a separate
399-11   bond or other security for each location.
399-12         (b)  Property used for the business that is not contiguous
399-13   to, or located within 300 feet of, a bonded location requires a
399-14   separate bond.  A location at which a manufactured home is shown to
399-15   the public or at which the home is offered for sale, exchange, or
399-16   lease-purchase by a retailer to consumers requires a bond.
399-17         (c)  A manufactured home installed on a permanent foundation
399-18   system and offered for sale as real property does not require a
399-19   bond.  A temporary location for a bona fide trade show sponsored by
399-20   a nonprofit corporation that qualifies for an exemption from
399-21   federal income taxation under Section 501(a), Internal Revenue Code
399-22   of 1986, by being listed as an exempt organization under Section
399-23   501(c) of that code does not require a bond.  (V.A.C.S. Art. 5221f,
399-24   Sec. 13(e).)
399-25         Sec. 1201.108.  SECURITY: CHANGE IN OWNERSHIP OR LOCATION.
399-26   (a)  A new bond is not required for a change in:
399-27               (1)  ownership of a corporation that is a license
 400-1   holder; or
 400-2               (2)  location.
 400-3         (b)  The director may require a proper endorsement of the
 400-4   original bond.  (V.A.C.S. Art. 5221f, Sec. 13(f) (part).)
 400-5         Sec. 1201.109.  SECURITY:  CANCELLATION OR OTHER IMPAIRMENT.
 400-6   (a)  If a bond required by this subchapter is canceled, the license
 400-7   for which the security is filed is suspended on the effective date
 400-8   of cancellation.  The surety shall provide written notice to the
 400-9   director before the 60th day preceding the effective date of
400-10   cancellation.
400-11         (b)  If a surety files for liquidation or reorganization in
400-12   bankruptcy or is placed in receivership, the license holder shall
400-13   obtain other security not later than the 60th day after the date
400-14   that notice of the filing or receivership is received.
400-15         (c)  If the required face amount of a security is impaired by
400-16   the payment of a claim, the license holder shall restore the
400-17   security to the required face amount not later than the 60th day
400-18   after the date of impairment.  (V.A.C.S. Art. 5221f, Secs. 13(g)
400-19   (part), (h).)
400-20         Sec. 1201.110.  SECURITY:  DURATION. The department shall
400-21   maintain on file a security other than a bond canceled as provided
400-22   by Section 1201.109(a) until the later of:
400-23               (1)  the second anniversary of the date the
400-24   manufacturer, retailer, broker, installer, or rebuilder ceases
400-25   doing business; or
400-26               (2)  the date the director determines that a claim does
400-27   not exist against the security.  (V.A.C.S. Art. 5221f, Sec. 13(g)
 401-1   (part).)
 401-2         Sec. 1201.111.  EXCEPTIONS TO SECURITY AND INSTRUCTION
 401-3   REQUIREMENTS. (a)  Notwithstanding any other provision of this
 401-4   chapter, a state or national bank, state or federal savings and
 401-5   loan association, federal savings bank, or state or federal credit
 401-6   union engaged in the business of selling, exchanging, or
 401-7   lease-purchasing or offering for sale, exchange, or lease-purchase
 401-8   manufactured homes that the institution has acquired through
 401-9   repossession of collateral is not required to attend a course of
401-10   instruction or file a bond or other security to be licensed as a
401-11   retailer.
401-12         (b)  A licensed retailer is not required to file a bond or
401-13   other security to be licensed as a broker or installer. (V.A.C.S.
401-14   Art. 5221f, Secs. 7(p), 13(f) (part).)
401-15         Sec. 1201.112.  TEMPORARY INSTALLER'S LICENSE. The director
401-16   may issue a temporary installer's license to the owner of a
401-17   manufactured home for the installation of the manufactured home in
401-18   accordance with applicable requirements, standards, and rules of
401-19   the director if the owner:
401-20               (1)  applies and pays the required fee; and
401-21               (2)  submits proof of insurance as required by the
401-22   department.  (V.A.C.S. Art. 5221f, Sec. 7(d) (part).)
401-23         Sec. 1201.113.  CERTIFICATION OR CONTINUING EDUCATION
401-24   PROGRAM. (a)  The director may recognize, prepare, or administer a
401-25   certification or continuing education program for persons regulated
401-26   under this chapter.
401-27         (b)  The director shall issue an appropriate certificate to a
 402-1   person who:
 402-2               (1)  completes a certification program; or
 402-3               (2)  participates in a continuing education program.
 402-4         (c)  Participation in a certification or continuing education
 402-5   program is voluntary.  (V.A.C.S. Art. 5221f, Sec. 7A.)
 402-6         Sec. 1201.114.  LICENSE RENEWAL. (a)  A license is valid for
 402-7   one year and may be renewed as provided by the director.
 402-8         (b)  The department shall renew a license if the department
 402-9   receives the renewal application and payment of the annual fee
402-10   before the expiration date of the license.
402-11         (c)  If the department needs additional information for the
402-12   renewal application or verification of continuing insurance or bond
402-13   coverage, the license holder must provide the requested information
402-14   or verification not later than the 20th day after the date of
402-15   receipt of notice from the department.
402-16         (d)  The renewal license expires on the first anniversary of
402-17   the date the license was renewed. (V.A.C.S. Art. 5221f, Secs. 7(g),
402-18   (m) (part), (r).)
402-19           (Sections 1201.115-1201.150 reserved for expansion)
402-20                         SUBCHAPTER D.  PRACTICE
402-21         Sec. 1201.151.  REFUND OF DEPOSIT. (a)  Except as otherwise
402-22   provided by this section, a retailer, salesperson, or agent of the
402-23   retailer must refund a consumer's deposit not later than the 15th
402-24   day after the date that a written request for the refund is
402-25   received from the consumer.
402-26         (b)  The deposit may be retained only if:
402-27               (1)  the consumer specially orders from the
 403-1   manufacturer a manufactured home that is not in the retailer's
 403-2   inventory;
 403-3               (2)  the home conforms to the specifications of the
 403-4   special order and any representations made to the consumer;
 403-5               (3)  the consumer fails or refuses to accept delivery
 403-6   and installation of the home by the retailer; and
 403-7               (4)  the consumer was given conspicuous written notice
 403-8   of the requirements for retaining the deposit.
 403-9         (c)  The retailer may not retain more than five percent of
403-10   the estimated cash price of the specially ordered home and must
403-11   refund any amount that exceeds five percent.
403-12         (d)  This section does not apply to:
403-13               (1)  a deposit held in escrow in a real estate
403-14   transaction; or
403-15               (2)  money stated to be a down payment in an executed
403-16   retail installment sales contract. (V.A.C.S. Art. 5221f, Secs.
403-17   6(m)(1), (3), (4), (5).)
403-18         Sec. 1201.152.  VOIDABLE CONTRACT. (a)  If a retailer
403-19   purchases a new manufactured home from an unlicensed manufacturer
403-20   in violation of Section 1201.505, a consumer's contract with the
403-21   retailer for the purchase, exchange, or lease-purchase of the home
403-22   is voidable until the second anniversary of the date of purchase,
403-23   exchange, or lease-purchase of the home.
403-24         (b)  If an unlicensed retailer, broker, or installer enters
403-25   into a contract with a consumer concerning a manufactured home, the
403-26   consumer may void the contract until the second anniversary of the
403-27   date of purchase of the home.  (V.A.C.S. Art. 5221f, Sec. 18(d).)
 404-1         Sec. 1201.153.  FORMALDEHYDE HEALTH NOTICE. (a)  A retailer
 404-2   or manufacturer may not transfer title to a HUD-code manufactured
 404-3   home or otherwise sell, assign, or convey a HUD-code manufactured
 404-4   home to a consumer unless the retailer or manufacturer delivers to
 404-5   the consumer a formaldehyde health notice, subject to the
 404-6   director's rules concerning the notice.
 404-7         (b)  The notice must be delivered before the execution of a
 404-8   mutually binding sales agreement or retail installment sales
 404-9   contract.
404-10         (c)  The notice must:
404-11               (1)  contain the information required by the United
404-12   States Department of Housing and Urban Development; and
404-13               (2)  be of the type, size, and format required by the
404-14   director.
404-15         (d)  A retailer or manufacturer may not vary the content or
404-16   form of the notice.  (V.A.C.S. Art. 5221f, Secs. 20(a), (b)
404-17   (part).)
404-18         Sec. 1201.154.  SUFFICIENCY OF FORMALDEHYDE HEALTH NOTICE;
404-19   RETAILER AND MANUFACTURER COMPLIANCE. (a)  The formaldehyde health
404-20   notice required by Section 1201.153 is sufficient, as a matter of
404-21   law, to advise a consumer of the risks of occupying a HUD-code
404-22   manufactured home.
404-23         (b)  The consumer's written acknowledgement of the receipt of
404-24   the notice is conclusive proof of the delivery of the notice and
404-25   the posting of the notice in compliance with federal regulations.
404-26         (c)  A retailer's or manufacturer's compliance with United
404-27   States Department of Housing and Urban Development regulations and
 405-1   the director's rules concerning the notice is conclusive proof
 405-2   that:
 405-3               (1)  the consumer received sufficient notice of the
 405-4   risks of occupying the home; and
 405-5               (2)  the home is habitable with respect to formaldehyde
 405-6   emissions.
 405-7         (d)  A retailer's or manufacturer's compliance, from
 405-8   September 1, 1981, to September 1, 1985, with Section 1201.153 and
 405-9   the revised formaldehyde warning as adopted by the department is
405-10   conclusive proof that:
405-11               (1)  the consumer received sufficient notice of the
405-12   risks of occupying the home; and
405-13               (2)  the home is habitable with respect to formaldehyde
405-14   emissions.
405-15         (e)  A retailer's or manufacturer's knowing and wilful
405-16   failure to comply with the regulations and rules described by
405-17   Subsection (c) is conclusive proof that:
405-18               (1)  the retailer or manufacturer breached the duty to
405-19   notify the consumer about formaldehyde; and
405-20               (2)  the home is not habitable.
405-21         (f)  A retailer's or manufacturer's knowing and wilful
405-22   failure, from September 1, 1981, to September 1, 1985, to comply
405-23   with Section 1201.153 and the revised formaldehyde warning as
405-24   adopted by the department is conclusive proof that:
405-25               (1)  the retailer or manufacturer breached the duty to
405-26   notify the consumer about formaldehyde; and
405-27               (2)  the home is not habitable.  (V.A.C.S. Art. 5221f,
 406-1   Secs. 20(b) (part), (c), (d).)
 406-2         Sec. 1201.155.  DISCLAIMER OF IMPLIED WARRANTY. The seller's
 406-3   proper provision of the warranties and notices as required by
 406-4   Subchapter H or J is a valid disclaimer of an implied warranty of
 406-5   fitness for a particular purpose or of merchantability as described
 406-6   by Chapter 2, Business & Commerce Code. (V.A.C.S. Art. 5221f, Sec.
 406-7   18(b) (part).)
 406-8         Sec. 1201.156.  ADVERTISEMENT AS OFFER. An advertisement
 406-9   relating to manufactured housing is an offer to sell, exchange, or
406-10   lease-purchase manufactured housing to consumers. (V.A.C.S.
406-11   Art. 5221f, Sec. 3(1) (part).)
406-12         Sec. 1201.157.  RETAILER AS WAREHOUSEMAN. (a)  A licensed
406-13   retailer is a "warehouseman" as defined by Section 7.102, Business
406-14   & Commerce Code, for the storage of manufactured homes for hire.
406-15         (b)  The provisions of the Business & Commerce Code relating
406-16   to the storage of goods for hire apply to a licensed retailer
406-17   acting as a warehouseman.  (V.A.C.S. Art. 5221f, Sec. 18(j).)
406-18         Sec. 1201.158.  SALESPERSON. A licensed salesperson may work
406-19   for more than one retailer or broker or at more than one sales
406-20   location. (V.A.C.S. Art. 5221f, Sec. 7(m) (part).)
406-21         Sec. 1201.159.  BROKER. (a)  A broker may but is not required
406-22   to be the agent of a party involved in the sale, exchange, or
406-23   lease-purchase of a manufactured home for which a certificate or
406-24   other document of title has been issued and is outstanding.
406-25         (b)  A person is not required to be a broker licensed under
406-26   this chapter but may be required to be a real estate broker or
406-27   salesperson licensed under Chapter 1101 if:
 407-1               (1)  the manufactured home is attached to a permanent
 407-2   foundation;
 407-3               (2)  the manufacturer's certificate or the document of
 407-4   title is canceled; and
 407-5               (3)  the home is offered as real property. (V.A.C.S.
 407-6   Art. 5221f, Sec. 3(4) (part).)
 407-7         Sec. 1201.160.  PROOF OF INSURANCE REQUIRED FOR INSTALLER. A
 407-8   person may not perform an installation function on manufactured
 407-9   housing in this state unless the person files proof of insurance as
407-10   required by the director. (V.A.C.S. Art. 5221f, Sec. 7(d) (part).) 
407-11         Sec. 1201.161.  TRANSPORTATION OF MANUFACTURED HOUSING. (a)
407-12   Notwithstanding any other statute or rule or ordinance, a licensed
407-13   retailer or licensed installer is not required to obtain a permit,
407-14   certificate, or license or pay a fee to transport manufactured
407-15   housing to the place of installation except as required by:
407-16               (1)  the department; or
407-17               (2)  the Texas Department of Transportation under
407-18   Subchapter E, Chapter 623, Transportation Code.
407-19         (b)  The department shall cooperate with the Texas Department
407-20   of Transportation by providing current lists of licensed
407-21   manufacturers, retailers, and installers.
407-22         (c)  The Texas Department of Transportation shall send the
407-23   department monthly:
407-24               (1)  a copy of each permit issued in the preceding
407-25   month for the movement of manufactured housing on the highways; or
407-26               (2)  a list of the permits issued in the preceding
407-27   month and the information on the permits.
 408-1         (d)  The department shall pay the reasonable cost of
 408-2   providing the copies or the list and information under Subsection
 408-3   (c). (V.A.C.S. Art. 5221f, Secs. 18(f), 19(r).)
 408-4           (Sections 1201.162-1201.200 reserved for expansion)
 408-5                 SUBCHAPTER E.  MANUFACTURED HOME TITLES
 408-6         Sec. 1201.201.  DEFINITIONS. In this subchapter:
 408-7               (1)  "Debtor" has the meaning assigned by Section
 408-8   9.102, Business & Commerce Code.
 408-9               (2)  "Document of title" means a written instrument
408-10   issued solely by and under the authority of the director that
408-11   provides the information required by Section 1201.205.
408-12               (3)  "First retail sale" means a consumer's initial
408-13   acquisition of a new manufactured home from a retailer by purchase,
408-14   exchange, or lease-purchase. The term includes a bargain, sale,
408-15   transfer, or delivery of a manufactured home for which the director
408-16   has not previously issued a document of title, with intent to pass
408-17   an interest in the home, other than a lien.
408-18               (4)  "Identification number" means the number
408-19   permanently attached to or imprinted on a manufactured home or
408-20   section of the home as prescribed by department rule.
408-21               (5)  "Inventory" has the meaning assigned by Section
408-22   9.102, Business & Commerce Code.
408-23               (6)  "Lien" means:
408-24                     (A)  a security interest created by a lease,
408-25   conditional sales contract, deed of trust, chattel mortgage, trust
408-26   receipt, reservation of title, or other security agreement if an
408-27   interest other than an absolute title is sought to be held or given
 409-1   in a manufactured home; or
 409-2                     (B)  a lien on a manufactured home created by the
 409-3   constitution or a statute.
 409-4               (7)  "Manufacturer's certificate" means a document that
 409-5   meets the requirements prescribed by Section 1201.204.
 409-6               (8)  "Secured party" has the meaning assigned by
 409-7   Section 9.102, Business & Commerce Code.
 409-8               (9)  "Security agreement" has the meaning assigned by
 409-9   Section 9.102, Business & Commerce Code.
409-10               (10)  "Security interest" has the meaning assigned by
409-11   Section 1.201, Business & Commerce Code.
409-12               (11)  "Subsequent sale" means a bargain, sale,
409-13   transfer, or delivery of a manufactured home, with intent to pass
409-14   an interest in the home, other than a lien, from one person to
409-15   another after the first retail sale and initial issuance of a
409-16   document of title. (V.A.C.S. Art. 5221f, Secs. 19(a)(1), (2)
409-17   (part), (3), (4), (5), (6), (7) (part), (10), (11), (12), (13).)
409-18         Sec. 1201.202.  APPLICATION OF CHAPTER TO CERTAIN
409-19   CERTIFICATES OF TITLE OR LIENS. (a)  This chapter applies to a
409-20   certificate of title to a manufactured home issued before March 1,
409-21   1982, under Chapter 501, Transportation Code.
409-22         (b)  A lien recorded before March 1, 1982, with the Texas
409-23   Department of Transportation or a predecessor agency of that
409-24   department is recorded with the department for the purposes of this
409-25   chapter.  (V.A.C.S. Art. 5221f, Sec. 19(q).)
409-26         Sec. 1201.203.  FORMS; RULES. (a)  The director shall
409-27   prescribe forms and adopt rules relating to:
 410-1               (1)  the manufacturer's certificate;
 410-2               (2)  the application for a document of title; and
 410-3               (3)  the issuance of a document of title at the first
 410-4   retail sale and for a subsequent sale or transfer of a manufactured
 410-5   home.
 410-6         (b)  The director shall adopt rules for the titling of a
 410-7   manufactured home that has been previously registered or titled in
 410-8   this state or another state. The rules must protect a lienholder
 410-9   recorded on a certificate or other document of title.  (V.A.C.S.
410-10   Art. 5221f, Secs. 19(b), (s).)
410-11         Sec. 1201.204.  MANUFACTURER'S CERTIFICATE. A manufacturer's
410-12   certificate must show:
410-13               (1)  on a form prescribed by the director or on another
410-14   document, the original transfer of a manufactured home from the
410-15   manufacturer to the retailer; and
410-16               (2)  on a form prescribed by the director, each
410-17   subsequent transfer of a manufactured home between retailers and
410-18   from retailer to owner, if presented with an application for a
410-19   document of title.  (V.A.C.S. Art. 5221f, Sec. 19(a)(7) (part).)
410-20         Sec. 1201.205.  DOCUMENT OF TITLE CONTENTS. A document of
410-21   title must provide:
410-22               (1)  the names and addresses of:
410-23                     (A)  the purchaser and seller at the first retail
410-24   sale; or
410-25                     (B)  the transferee and transferor at any
410-26   subsequent sale or transfer;
410-27               (2)  the manufacturer's name and address and any model
 411-1   designation;
 411-2               (3)  in accordance with the director's  rules:
 411-3                     (A)  the outside dimensions of the manufactured
 411-4   home when installed for occupancy, as measured to the nearest
 411-5   one-half foot at the base of the home, exclusive of the tongue or
 411-6   other towing device; and
 411-7                     (B)  the approximate square footage of the home
 411-8   when installed for occupancy;
 411-9               (4)  the identification number for each section or
411-10   module of the home;
411-11               (5)  the county of this state in which the home is
411-12   installed for occupancy;
411-13               (6)  in chronological order of recordation, the date of
411-14   each lien on the home and the name and address of each lienholder,
411-15   or, if a lien is not recorded, a statement of that fact;
411-16               (7)  the signature of the owner in ink, given on
411-17   receipt of the document;
411-18               (8)  a statement that if two or more eligible persons,
411-19   as determined by Section 1201.213, file with the application for
411-20   document of title an agreement signed by all the persons providing
411-21   that the home is to be held jointly with a right of survivorship,
411-22   the director shall issue the document of title in all the names;
411-23   and
411-24               (9)  any other information the director requires.
411-25   (V.A.C.S. Art. 5221f, Sec. 19(a)(2) (part).)
411-26         Sec. 1201.206.  APPLICATION FOR ISSUANCE OF TITLE. (a)  At
411-27   the first retail sale of a manufactured home, the retailer and
 412-1   purchaser shall apply for the issuance of a document of title.  As
 412-2   part of the application, the retailer must surrender the original
 412-3   manufacturer's certificate.
 412-4         (b)  At a subsequent sale or transfer of the home, the seller
 412-5   and purchaser or the transferor and transferee, as applicable,
 412-6   shall apply for the issuance of a new document of title.  As part
 412-7   of the application, the seller or transferor must surrender the
 412-8   original document of title.  (V.A.C.S. Art. 5221f, Sec. 19(c).)
 412-9         Sec. 1201.207.  ISSUANCE OF TITLE. (a)  Except as otherwise
412-10   provided by this subchapter, if a lien is not recorded, the
412-11   department shall:
412-12               (1)  issue a document of title marked "ORIGINAL" on the
412-13   face of the document of title; and
412-14               (2)  send the original by first class mail to the
412-15   purchaser or transferee at the address on the application.
412-16         (b)  Except as otherwise provided by this subchapter, if a
412-17   lien is shown in the application or recorded with the department,
412-18   the department shall:
412-19               (1)  issue a document of title marked "ORIGINAL" on the
412-20   face of the document of title and send the original by first class
412-21   mail to the first lienholder; and
412-22               (2)  send a copy of the document of title conspicuously
412-23   marked "NONTRANSFERABLE COPY" on the face of the document of title
412-24   by first class mail to the purchaser or transferee and any other
412-25   lienholder at the address on the application.  (V.A.C.S.
412-26   Art. 5221f, Sec. 19(f).)
412-27         Sec. 1201.208.  PAYMENT OF TAXES REQUIRED FOR ISSUANCE OF
 413-1   TITLE. (a)  The department may not issue a document of title for a
 413-2   new manufactured home installed for occupancy in this state unless
 413-3   the state sales and use tax has been paid.
 413-4         (b)  Proof of payment may be shown in any manner prescribed
 413-5   by the department.  (V.A.C.S. Art. 5221f, Sec. 19(j).)
 413-6         Sec. 1201.209.  GROUNDS FOR REFUSAL TO ISSUE OR FOR
 413-7   SUSPENSION OR REVOCATION OF TITLE. The department may not refuse to
 413-8   issue a document of title and may not suspend or revoke a document
 413-9   of title unless:
413-10               (1)  the application for issuance of the document of
413-11   title contains a false or fraudulent statement, the applicant
413-12   failed to provide information required by the director, or the
413-13   applicant is not entitled to issuance of the document of title;
413-14               (2)  the director has reason to believe that the
413-15   manufactured home is stolen or unlawfully converted, or the
413-16   issuance of a document of title would defraud the owner or a
413-17   lienholder of the manufactured home;
413-18               (3)  the director has reason to believe that the
413-19   manufactured home is salvaged, and an application for a salvage
413-20   title has not been filed;
413-21               (4)  the required fee has not been paid;
413-22               (5)  the state sales and use tax has not been paid in
413-23   accordance with Chapter 158, Tax Code, and Section 1201.208; or
413-24               (6)  a local tax lien has been filed and recorded under
413-25   Section 32.015, Tax Code.  (V.A.C.S. Art. 5221f, Sec. 19(d).)
413-26         Sec. 1201.210.  PROCEDURE FOR REFUSAL TO ISSUE OR SUSPENSION
413-27   OR REVOCATION OF TITLE. (a)  If the director refuses to issue or
 414-1   suspends or revokes a document of title, the director shall give,
 414-2   by certified mail, written notice of that action to:
 414-3               (1)  the seller and purchaser or transferor and
 414-4   transferee, as applicable; and
 414-5               (2)  the holder of a lien or security interest of
 414-6   record.
 414-7         (b)  An action by the director under Subsection (a) is a
 414-8   contested case under Chapter 2001, Government Code.
 414-9         (c)  A notice of appeal and request for hearing must be filed
414-10   with the director not later than the 30th day after the date of
414-11   notice of the director's action.  (V.A.C.S. Art. 5221f, Sec.
414-12   19(e).)
414-13         Sec. 1201.211.  TRANSFER OF TITLE. (a)  Before a manufactured
414-14   home is conveyed, transferred, or otherwise disposed of at a
414-15   subsequent sale, the owner designated in the original document of
414-16   title must:
414-17               (1)  transfer the title on a form prescribed by the
414-18   director; and
414-19               (2)  file the form with the department.
414-20         (b)  The form must include:
414-21               (1)  a statement that:
414-22                     (A)  the person signing the form is the owner of
414-23   the home; and
414-24                     (B)  there is not a lien on the home other than a
414-25   lien shown on the document of title; and
414-26               (2)  any information the director requires.
414-27         (c)  A title to a manufactured home may not pass or vest at a
 415-1   subsequent sale until:
 415-2               (1)  the transfer is executed as provided by this
 415-3   subchapter; and
 415-4               (2)  an application for the issuance of a new document
 415-5   of title is sent to the department.  (V.A.C.S. Art. 5221f, Sec.
 415-6   19(g) (part).)
 415-7         Sec. 1201.212.  TRANSFER OF TITLE BY OPERATION OF LAW. (a)
 415-8   If the ownership of a manufactured home in this state is
 415-9   transferred by inheritance, devise, or bequest, by bankruptcy,
415-10   receivership, judicial sale, or other involuntary divestiture of
415-11   ownership, or by any other operation of law, the department shall
415-12   issue a new document of title after receiving a certified copy of:
415-13               (1)  the order or bill of sale from an officer making a
415-14   judicial sale;
415-15               (2)  the order appointing a temporary administrator;
415-16               (3)  the probate proceedings;
415-17               (4)  the letters testamentary or the letters of
415-18   administration; or
415-19               (5)  if administration of an estate is not necessary,
415-20   an affidavit by all of the heirs at law showing:
415-21                     (A)  that administration is not necessary; and
415-22                     (B)  the name in which the certificate should be
415-23   issued.
415-24         (b)  The department may issue a new document of title in the
415-25   name of the purchaser at a foreclosure sale:
415-26               (1)  for a lien or security interest foreclosed
415-27   according to law by nonjudicial means, if the lienholder or secured
 416-1   party  files an affidavit showing the nonjudicial foreclosure
 416-2   according to law; or
 416-3               (2)  for a foreclosed constitutional or statutory lien,
 416-4   if the person entitled to the lien files an affidavit showing the
 416-5   creation of the lien and the resulting divestiture of title
 416-6   according to law.
 416-7         (c)  The department shall issue a new document of title to a
 416-8   survivor if:
 416-9               (1)  an agreement providing for a right of survivorship
416-10   is signed by two or more eligible persons, as determined under
416-11   Section 1201.213; and
416-12               (2)  on the death of one of the persons, the department
416-13   is provided with a copy of the death certificate of that person.
416-14   (V.A.C.S. Art. 5221f, Sec. 19(h).)
416-15         Sec. 1201.213.  ELIGIBILITY TO SIGN RIGHT OF SURVIVORSHIP
416-16   AGREEMENT. (a)  A person is eligible to sign a right of
416-17   survivorship agreement under this subchapter if the person:
416-18               (1)  is married and the spouse of the signing person is
416-19   the only other party to the agreement;
416-20               (2)  is unmarried and attests to that unmarried status
416-21   by affidavit; or
416-22               (3)  is married and provides the department with an
416-23   affidavit from the signing person's spouse that attests that the
416-24   signing person's interest in the manufactured home is the signing
416-25   person's separate property.
416-26         (b)  If the title is being issued in connection with the sale
416-27   of the home, the seller is not eligible to sign a right of
 417-1   survivorship agreement under this subchapter unless the seller is
 417-2   the child, grandchild, parent, grandparent, or sibling of each
 417-3   other person signing the agreement.  A family relationship required
 417-4   by this subsection may be a relationship established by adoption.
 417-5   (V.A.C.S. Art. 5221f, Secs. 19(x), (y).)
 417-6         Sec. 1201.214.  LOST OR DESTROYED DOCUMENT OF TITLE. (a)  If
 417-7   an original document of title is lost or destroyed, the owner or
 417-8   lienholder may obtain a certified copy of the original from the
 417-9   department by making an affidavit on a form prescribed by the
417-10   director.  The department may issue the certified copy only to the
417-11   first lienholder if a lien is disclosed on the original.  The
417-12   certified copy must be conspicuously marked "CERTIFIED COPY OF
417-13   ORIGINAL" on the face of the copy.
417-14         (b)  If the original document of title is recovered, the
417-15   owner or lienholder shall immediately surrender the original to the
417-16   department with the certified copy of the original, and the
417-17   department shall issue a new original document of title.  (V.A.C.S.
417-18   Art. 5221f, Sec. 19(i).)
417-19         Sec. 1201.215.  PREVIOUS OWNER OR LIENHOLDER UNAVAILABLE. If
417-20   an original document of title is unavailable because a previous
417-21   owner or lienholder cannot be located or because a manufactured
417-22   home has been abandoned, a person may apply to the department for a
417-23   replacement title by presenting:
417-24               (1)  evidence satisfactory to the department that the
417-25   effort to locate the previous owner or lienholder has been
417-26   unsuccessful; and
417-27               (2)  an affidavit stating that to the best of the
 418-1   applicant's knowledge, the applicant is entitled to a good and
 418-2   marketable title to the manufactured home.  (V.A.C.S. Art. 5221f,
 418-3   Sec. 19(g) (part).)
 418-4         Sec. 1201.216.  CHANGE IN USE. (a)  The department shall
 418-5   cancel a title to a manufactured home that has been sold,
 418-6   exchanged, or lease-purchased to a purchaser for the purchaser's
 418-7   business use.
 418-8         (b)  On application, the department may issue a new title to
 418-9   the home after an inspection and determination that the home is
418-10   habitable.
418-11         (c)  The department shall issue a salvage title for a
418-12   salvaged manufactured home and may issue a new title for a new home
418-13   rebuilt according to the director's rules.  (V.A.C.S. Art. 5221f,
418-14   Sec. 19(w).)
418-15         Sec. 1201.217.  PERMANENT ATTACHMENT OF MANUFACTURED HOME:
418-16   CANCELLATION OF TITLE. (a)  Except as provided by Section 1201.218,
418-17   if a manufactured home is permanently attached to real property,
418-18   the manufacturer's certificate or the original document of title
418-19   may be surrendered to the department for cancellation.
418-20         (b)  The legal description or the appropriate tract or parcel
418-21   number of the real property must be given to the department when
418-22   the certificate or document of title is surrendered.  The director
418-23   may require the filing of other information.
418-24         (c)  The department shall issue a certificate of attachment
418-25   to real property to the person who surrenders the manufacturer's
418-26   certificate or document of title.  The certificate of attachment to
418-27   real property must:
 419-1               (1)  contain:
 419-2                     (A)  the legal description or the appropriate
 419-3   tract or parcel number of the real property; and
 419-4                     (B)  the identification number of the home; and
 419-5               (2)  certify that the manufacturer's certificate or
 419-6   original document of title has been canceled.  (V.A.C.S.
 419-7   Art. 5221f, Sec. 19(l) (part).)
 419-8         Sec. 1201.218.  PERMANENT ATTACHMENT OF MANUFACTURED HOME:
 419-9   EXCEPTION TO CANCELLATION OF TITLE. (a)  The department may not
419-10   cancel a manufacturer's certificate or a document of title under
419-11   Section 1201.217 if a lien on the manufactured home has been
419-12   recorded with the department.
419-13         (b)  If a lien on the home has been recorded, the department
419-14   shall notify the owner and each lienholder that:
419-15               (1)  the title and a description of the lien have been
419-16   surrendered to the department; and
419-17               (2)  the department may not cancel the title until the
419-18   lien is released.
419-19         (c)  Permanent attachment of a manufactured home to real
419-20   property does not affect the validity of a lien recorded with the
419-21   department before the home is permanently attached.  The rights of
419-22   a prior lienholder under a security agreement or the provisions of
419-23   a credit transaction and the rights of the state under a tax lien
419-24   are preserved.  (V.A.C.S. Art. 5221f, Sec. 19(l) (part).)
419-25         Sec. 1201.219.  PERFECTION AND EFFECT OF LIENS. (a)  A lien
419-26   on manufactured homes in inventory is perfected by filing a
419-27   security agreement with the department in a form that contains the
 420-1   information the director requires.  Once perfected, the lien
 420-2   applies to the manufactured homes in the inventory as well as to
 420-3   any proceeds from the sale of those homes.  The department may
 420-4   suspend or revoke the license of a retailer who fails to satisfy a
 420-5   perfected inventory lien under the terms of the security agreement.
 420-6         (b)  The recordation of a lien with the department is notice
 420-7   to all persons that the lien exists.  Except as expressly provided
 420-8   by Chapter 32, Tax Code, a lien recorded with the department has
 420-9   priority, according to the chronological order of recordation, over
420-10   another lien or claim against the manufactured home.
420-11         (c)  Notwithstanding any other provision of this subchapter,
420-12   the filing of a security agreement by a secured party perfecting a
420-13   lien on the inventory of a retailer does not prevent a buyer in the
420-14   ordinary course of business, as defined by Section 1.201, Business
420-15   & Commerce Code, from acquiring good title free of that interest,
420-16   and the department may not consider that security interest as a
420-17   lien for the purpose of title issuance.
420-18         (d)  The department shall print on each document of title
420-19   issued under this subchapter a notice that:
420-20               (1)  the document of title may not reflect the
420-21   existence of a tax lien notice filed for the manufactured home
420-22   after the date the document of title was issued; and
420-23               (2)  information about a tax lien for which notice has
420-24   been filed may be obtained from the department on written request.
420-25   (V.A.C.S. Art. 5221f, Secs. 19(k), (m), (n), (u).)
420-26         Sec. 1201.220.  REPORT TO COUNTY TAX ASSESSOR-COLLECTOR. (a)
420-27   The department shall provide to each county tax assessor-collector
 421-1   in this state a quarterly report that, for each manufactured home
 421-2   installed in the county during the preceding calendar quarter and
 421-3   for each manufactured home previously installed in the county for
 421-4   which a transfer of ownership was recorded by the issuance of a
 421-5   document of title during the preceding calendar quarter, lists:
 421-6               (1)  the name of the owner;
 421-7               (2)  the name of the manufacturer;
 421-8               (3)  the model designation;
 421-9               (4)  the identification number of each section or
421-10   module; and
421-11               (5)  the address or location where the home is
421-12   installed.
421-13         (b)  The director shall provide a copy of the report to the
421-14   chief appraiser of the appraisal district established for the
421-15   county in which the home is installed.  (V.A.C.S. Art. 5221f, Sec.
421-16   19(o).)
421-17         Sec. 1201.221.  INFORMATION ON OWNERSHIP AND TAX LIEN. (a)
421-18   On written request, the department shall provide information held
421-19   by the department on:
421-20               (1)  the current ownership of a manufactured home; and
421-21               (2)  the existence of any tax lien on that home for
421-22   which notice has been filed with the department.
421-23         (b)  A request under Subsection (a) must contain:
421-24               (1)  the name of the owner of the home who has a
421-25   document of title; or
421-26               (2)  the identification number of the home.   (V.A.C.S.
421-27   Art. 5221f, Sec. 19(v).)
 422-1           (Sections 1201.222-1201.250 reserved for expansion)
 422-2                        SUBCHAPTER F.  STANDARDS
 422-3         Sec. 1201.251.  STANDARDS AND REQUIREMENTS ADOPTED BY
 422-4   DIRECTOR. (a)  The director shall adopt standards and requirements
 422-5   for:
 422-6               (1)  the installation and construction of manufactured
 422-7   housing that are reasonably necessary to protect the health,
 422-8   safety, and welfare of the occupants and the public; and
 422-9               (2)  the construction of HUD-code manufactured homes in
422-10   compliance with the federal standards and requirements established
422-11   under the National Manufactured Housing Construction and Safety
422-12   Standards Act of 1974 (42 U.S.C. Section 5401 et seq.).
422-13         (b)  The standards and requirements adopted under Subsection
422-14   (a)(1) are the standards code.
422-15         (c)  The standards adopted under Subsection (a)(1) must
422-16   ensure that manufactured housing installed on both permanent and
422-17   nonpermanent foundation systems resists overturning and lateral
422-18   movement, according to the design loads for the particular wind
422-19   zone for which the housing was constructed.  (V.A.C.S. Art. 5221f,
422-20   Secs. 4(a), (b), (c).)
422-21         Sec. 1201.252.  POWER OF LOCAL GOVERNMENTAL UNIT TO ADOPT
422-22   DIFFERENT STANDARD. (a)  A local governmental unit of this state
422-23   may not adopt a standard for the construction or installation of
422-24   manufactured housing in the local governmental unit that is
422-25   different from a standard adopted by the director unless, after a
422-26   hearing, the board expressly approves the proposed standard.
422-27         (b)  To adopt a different standard under this section, the
 423-1   local governmental unit must demonstrate that public health and
 423-2   safety require the different standard.  (V.A.C.S. Art. 5221f, Sec.
 423-3   4(e).)
 423-4         Sec. 1201.253.  HEARING ON STANDARD OR REQUIREMENT. The
 423-5   director shall publish notice and conduct a public hearing in
 423-6   accordance with Sections 1201.054 and 1201.060 before:
 423-7               (1)  adopting a standard or requirement authorized by
 423-8   this subchapter;
 423-9               (2)  amending a standard authorized by this subchapter;
423-10   or
423-11               (3)  approving a standard proposed by a local
423-12   governmental unit under Section 1201.252.  (V.A.C.S. Art. 5221f,
423-13   Sec. 4(f).)
423-14         Sec. 1201.254.  EFFECTIVE DATE OF REQUIREMENT OR STANDARD.
423-15   Each requirement or standard that is adopted, modified, amended, or
423-16   repealed by the director must state its effective date as provided
423-17   by Section 1201.054.  (V.A.C.S. Art. 5221f, Sec. 4(g).)
423-18         Sec. 1201.255.  INSTALLATION OF MANUFACTURED HOUSING. Except
423-19   as authorized under Section 1201.252, manufactured housing must be
423-20   installed in compliance with the standards and rules adopted and
423-21   orders issued by the director.  (V.A.C.S. Art. 5221f, Sec. 4(d)
423-22   (part).)
423-23         Sec. 1201.256.  WIND ZONE REGULATIONS. (a)  Aransas,
423-24   Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy,
423-25   Kleberg, Matagorda, Nueces, Orange, Refugio, San Patricio, and
423-26   Willacy counties are in Wind Zone II.  All other counties are in
423-27   Wind Zone I.
 424-1         (b)  To be installed in a Wind Zone II county, a manufactured
 424-2   home constructed on or after September 1, 1997, must meet the Wind
 424-3   Zone II standards adopted by the United States Department of
 424-4   Housing and Urban Development.
 424-5         (c)  A manufactured home constructed before September 1,
 424-6   1997, may be installed in a Wind Zone I or II county without
 424-7   restriction.
 424-8         (d)  A retailer who sells a manufactured home constructed on
 424-9   or after September 1, 1997, to Wind Zone I standards must, before
424-10   the execution of a mutually binding sales agreement or retail
424-11   installment sales contract, give the consumer notice that:
424-12               (1)  the home was not designed or constructed to
424-13   withstand a hurricane force wind occurring in a Wind Zone II or III
424-14   area;
424-15               (2)  installation of the home is not permitted in a
424-16   Wind Zone II county in this state; and
424-17               (3)  another state may prohibit installation of the
424-18   home in a Wind Zone II or III area.  (V.A.C.S. Art. 5221f, Sec.
424-19   6B.)
424-20           (Sections 1201.257-1201.300 reserved for expansion)
424-21                SUBCHAPTER G.  INSPECTIONS AND MONITORING
424-22         Sec. 1201.301.  STATE INSPECTORS. (a)  The director may
424-23   employ state inspectors to:
424-24               (1)  carry out the functions the department is required
424-25   to perform under this chapter;
424-26               (2)  implement this chapter; and
424-27               (3)  enforce the rules adopted and orders issued under
 425-1   this chapter.
 425-2         (b)  In enforcing this chapter, the director may authorize a
 425-3   state inspector to travel inside or outside of the state to inspect
 425-4   a manufacturing facility.  (V.A.C.S. Art. 5221f, Sec. 9(h).)
 425-5         Sec. 1201.302.  INSPECTION BY ENTITIES OTHER THAN DEPARTMENT.
 425-6   (a)  To ensure that a manufactured home sold or installed in this
 425-7   state complies with the standards code, the director may by
 425-8   contract provide for a federal agency or an agency or political
 425-9   subdivision of this state or another state to perform an inspection
425-10   or inspection program under this chapter or under rules adopted by
425-11   the director.
425-12         (b)  On request, the department shall authorize a local
425-13   governmental unit in this state to perform an inspection or
425-14   enforcement activity related to the construction of a foundation
425-15   system or the erection or installation of manufactured housing at a
425-16   homesite under a contract or other official designation and rules
425-17   adopted by the director.  The department may withdraw the
425-18   authorization if the local governmental unit fails to follow the
425-19   rules, interpretations, and written instructions of the department.
425-20         (c)  The department:
425-21               (1)  shall advise each local governmental unit
425-22   biennially in writing of the program for contracting installation
425-23   inspections;
425-24               (2)  shall encourage local building inspection
425-25   officials to perform enforcement and inspection activities for
425-26   manufactured housing installed in the local governmental unit; and
425-27               (3)  may establish cooperative inspection training
 426-1   programs.  (V.A.C.S. Art. 5221f, Secs. 4(h) (part), 9(i).)
 426-2         Sec. 1201.303.  INSPECTIONS. (a)  The director may inspect
 426-3   manufactured homes at the state border and adopt rules necessary
 426-4   for the inspection of manufactured homes entering this state to
 426-5   ensure:
 426-6               (1)  compliance with:
 426-7                     (A)  the National Manufactured Housing
 426-8   Construction and Safety Standards Act of 1974 (42 U.S.C. Section
 426-9   5401 et seq.);
426-10                     (B)  the standards code; and
426-11                     (C)  the rules adopted by the director; and
426-12               (2)  payment of any use tax owed to the state.
426-13         (b)  The department shall establish an installation
426-14   inspection program in which at least 25 percent of installed
426-15   manufactured homes are inspected on a sample basis for compliance
426-16   with the standards and rules adopted and orders issued by the
426-17   director.  The program must place priority on inspecting
426-18   multisection homes and homes installed in Wind Zone II counties.
426-19   (V.A.C.S. Art. 5221f, Secs. 4(d) (part), 9(l).)
426-20         Sec. 1201.304.  INSPECTION SEARCH WARRANTS. If required by
426-21   law or otherwise necessary, the director may obtain an inspection
426-22   search warrant.  (V.A.C.S. Art. 5221f, Sec. 9(k).)
426-23         Sec. 1201.305.  PROGRAM MONITORING. The director may enter
426-24   into a contract with the United States Department of Housing and
426-25   Urban Development or its designee to monitor the programs of that
426-26   department.  (V.A.C.S. Art. 5221f, Sec. 9(j).)
426-27           (Sections 1201.306-1201.350 reserved for expansion)
 427-1                        SUBCHAPTER H.  WARRANTIES
 427-2         Sec. 1201.351.  MANUFACTURER'S WARRANTY. (a) The manufacturer
 427-3   of a new HUD-code manufactured home shall warrant, in a separate
 427-4   written document, that:
 427-5               (1)  the home is constructed or assembled in accordance
 427-6   with all building codes, standards, requirements, and regulations
 427-7   prescribed by the United States Department of Housing and Urban
 427-8   Development under the National Manufactured Housing Construction
 427-9   and Safety Standards Act of 1974 (42 U.S.C. Section 5401 et seq.);
427-10   and
427-11               (2)  the home and all appliances and equipment included
427-12   in the home are free from defects in materials or workmanship.
427-13         (b)  The manufacturer's warranty is in effect until at least
427-14   the first anniversary of the date of initial installation of the
427-15   home at the consumer's homesite.
427-16         (c)  At the time the manufacturer delivers the home to the
427-17   retailer, the manufacturer shall also deliver to the retailer:
427-18               (1)  the manufacturer's warranty; and
427-19               (2)  the warranties given by the manufacturers of
427-20   appliances or equipment installed in the home.  (V.A.C.S.
427-21   Art. 5221f, Secs. 14(a), (b), (c).)
427-22         Sec. 1201.352.  RETAILER'S WARRANTY. (a)  The retailer of a
427-23   new HUD-code manufactured home shall warrant to the consumer in
427-24   writing that:
427-25               (1)  installation of the home at the initial homesite
427-26   will be completed in accordance with all department standards,
427-27   rules, orders, and requirements; and
 428-1               (2)  appliances and equipment included with the sale of
 428-2   the home and installed by the retailer are or will be:
 428-3                     (A)  installed in accordance with the
 428-4   instructions or specifications of the manufacturers of the
 428-5   appliances or equipment; and
 428-6                     (B)  free from defects in materials or
 428-7   workmanship.
 428-8         (b)  The retailer's warranty is in effect until the first
 428-9   anniversary of the date of initial installation of the home at the
428-10   consumer's homesite.
428-11         (c)  Before the signing of a binding retail installment sales
428-12   contract or other binding purchase agreement, the retailer must
428-13   give the consumer a copy or a general description of:
428-14               (1)  the manufacturer's warranty; and
428-15               (2)  the retailer's warranty.
428-16         (d)  At the time of the initial installation at the
428-17   consumer's homesite, the retailer shall deliver to the consumer:
428-18               (1)  the manufacturer's warranty;
428-19               (2)  the retailer's warranty;
428-20               (3)  the warranties given by the manufacturers of
428-21   appliances or equipment included with the home; and
428-22               (4)  the name and address of the manufacturer or
428-23   retailer to whom the consumer is to give notice of a warranty
428-24   service request.  (V.A.C.S. Art. 5221f, Sec. 14(d).)
428-25         Sec. 1201.353.  NOTICE OF NEED FOR WARRANTY SERVICE. (a)  The
428-26   consumer shall give written notice to the manufacturer or retailer,
428-27   as applicable, of a need for warranty service or repairs.
 429-1         (b)  Written notice to the department is notice to the
 429-2   manufacturer or retailer.  (V.A.C.S. Art. 5221f, Sec. 14(e)
 429-3   (part).)
 429-4         Sec. 1201.354.  CORRECTIVE ACTION REQUIRED. The manufacturer
 429-5   or retailer, as applicable, shall take appropriate corrective
 429-6   action within a reasonable period as required by department rules
 429-7   to fulfill the written warranty obligation. (V.A.C.S. Art. 5221f,
 429-8   Sec. 14(e) (part).)
 429-9         Sec. 1201.355.  CONSUMER COMPLAINT HOME INSPECTION. (a)  If
429-10   the manufacturer or retailer does not provide the consumer with
429-11   proper warranty service, the consumer may, at any time, request the
429-12   department to perform a consumer complaint home inspection.  The
429-13   department may not charge a fee for the inspection.
429-14         (b)  On payment of the required inspection fee, the
429-15   manufacturer or retailer may request the department to perform a
429-16   consumer complaint home inspection if the manufacturer or retailer:
429-17               (1)  believes the consumer's complaints are not covered
429-18   by the warranty of the manufacturer or retailer, as applicable;
429-19               (2)  believes that the warranty service was properly
429-20   provided; or
429-21               (3)  disputes responsibility concerning the warranty
429-22   obligation.
429-23         (c)  The department shall perform a consumer complaint home
429-24   inspection not later than the 30th day after the date of receipt of
429-25   a request for the inspection. (V.A.C.S. Art. 5221f, Secs. 14(g),
429-26   (h), (i) (part).)
429-27         Sec. 1201.356.  REPORT AND ORDER; AMENDMENT; COMPLIANCE. (a)
 430-1   Not later than the 10th day after the date of a consumer complaint
 430-2   home inspection, the department shall send a written report and any
 430-3   order to the consumer, manufacturer, and retailer by certified
 430-4   mail, return receipt requested.
 430-5         (b)  The report shall specify:
 430-6               (1)  each of the consumer's complaints; and
 430-7               (2)  whether the complaint is covered by either the
 430-8   manufacturer's or retailer's warranty and, if so, which of those
 430-9   warranties.
430-10         (c)  The director shall issue to the manufacturer or retailer
430-11   an appropriate order for corrective action by the manufacturer or
430-12   retailer, specifying a reasonable period for completion of the
430-13   corrective action.
430-14         (d)  The department may issue an amended report and order if
430-15   all parties receive notice of and are given an opportunity to
430-16   respond to that report and order.  The amended report and order
430-17   supersede the initial report and order.
430-18         (e)  The manufacturer, retailer, or installer shall comply
430-19   with the report and order of the director.  (V.A.C.S. Art. 5221f,
430-20   Secs. 14(i) (part), (j).)
430-21         Sec. 1201.357.  FAILURE TO PROVIDE WARRANTY SERVICE. (a)  If
430-22   the manufacturer or retailer, as applicable, fails to provide
430-23   warranty service within the period specified by the director under
430-24   Section 1201.356, the manufacturer or retailer must show good cause
430-25   in writing as to why the manufacturer or retailer failed to provide
430-26   the service.
430-27         (b)  If the manufacturer or retailer, as applicable, fails or
 431-1   refuses to provide warranty service in accordance with the
 431-2   department order under Section 1201.356, the director shall hold a
 431-3   hearing at which the manufacturer or retailer must show cause as to
 431-4   why the manufacturer's or retailer's license should not be
 431-5   suspended or revoked. (V.A.C.S. Art. 5221f, Secs. 14(f) (part), (k)
 431-6   (part).)
 431-7         Sec. 1201.358.  FAILURE TO SHOW GOOD CAUSE; HEARING RESULTS.
 431-8   (a)  Failure by the manufacturer or retailer to show good cause
 431-9   under Section 1201.357(a) is a sufficient basis for suspension or
431-10   revocation of the manufacturer's or retailer's license.
431-11         (b)  If after the hearing under Section 1201.357(b), the
431-12   director determines that the order under Section 1201.356 was
431-13   correct in the determination of the warranty obligation of the
431-14   manufacturer or retailer, failure or refusal by the manufacturer or
431-15   retailer to comply with the order is a sufficient cause for
431-16   suspension or revocation of the manufacturer's or retailer's
431-17   license. If the director determines that the order was incorrect
431-18   regarding that obligation, the director shall issue a final order
431-19   stating the correct obligation and the right of the manufacturer or
431-20   retailer to indemnification from the other.
431-21         (c)  The director may issue an order:
431-22               (1)  directing a manufacturer or retailer whose license
431-23   is not revoked and who is not out of business to perform the
431-24   warranty obligation of a manufacturer or retailer whose license is
431-25   revoked or who is out of business; and
431-26               (2)  giving the manufacturer or retailer performing the
431-27   obligation the right of indemnification against the other.
 432-1         (d)  A manufacturer or retailer entitled to indemnification
 432-2   under this section is a consumer for purposes of Subchapter I and
 432-3   may recover actual damages and attorney's fees from the trust fund.
 432-4   (V.A.C.S. Art. 5221f, Secs. 14(f) (part), (k) (part).)
 432-5         Sec. 1201.359.  APPLICATION OF WARRANTIES IF HUD-CODE
 432-6   MANUFACTURED HOME MOVED. (a)  The manufacturer's and retailer's
 432-7   warranties do not apply to any defect or damage caused by moving a
 432-8   new HUD-code manufactured home from the initial installation site.
 432-9         (b)  Conspicuous notice of the warranty exception under
432-10   Subsection (a) must be given to the consumer at the time of sale.
432-11         (c)  The warrantor has the burden of proof to show that the
432-12   defect or damage is caused by the move.  (V.A.C.S. Art. 5221f, Sec.
432-13   14(l).)
432-14         Sec. 1201.360.  WARRANTY FOR HUD-CODE MANUFACTURED HOME
432-15   PERMANENTLY ATTACHED TO REAL PROPERTY. (a)  The seller of real
432-16   property to which a new HUD-code manufactured home is permanently
432-17   attached may give the initial purchaser a written warranty that
432-18   combines the manufacturer's warranty and the retailer's warranty
432-19   required by this subchapter if:
432-20               (1)  the manufacturer's certificate under Section
432-21   1201.204 is canceled; and
432-22               (2)  a certificate of attachment is filed in the deed
432-23   records of the county.
432-24         (b)  If a combination warranty is given under this section,
432-25   the manufacturer and retailer are not required to give separate
432-26   written warranties, but the manufacturer and retailer are jointly
432-27   liable with the seller of the real property to the purchaser for
 433-1   the performance of their respective warranty obligations. (V.A.C.S.
 433-2   Art. 5221f, Sec. 14(n).)
 433-3         Sec. 1201.361.  INSTALLER'S WARRANTY. For all secondary
 433-4   installations not covered by the retailer's warranty described by
 433-5   Section 1201.352 and for the installation of all used manufactured
 433-6   homes, the installer shall give the manufactured home owner a
 433-7   written warranty that the installation of the home was performed in
 433-8   accordance with all department standards, rules, orders, and
 433-9   requirements. (V.A.C.S. Art. 5221f, Sec. 14(m).)
433-10           (Sections 1201.362-1201.400 reserved for expansion)
433-11                 SUBCHAPTER I.  MANUFACTURED HOMEOWNERS'
433-12                           RECOVERY TRUST FUND
433-13         Sec. 1201.401.  MANUFACTURED HOMEOWNERS' RECOVERY TRUST FUND.
433-14   The manufactured homeowners' recovery trust fund is an account in
433-15   the general revenue fund.  (V.A.C.S. Art. 5221f, Sec. 13A(a)
433-16   (part).)
433-17         Sec. 1201.402.  ADMINISTRATION OF TRUST FUND. (a)  The
433-18   director shall administer the trust fund as trustee of that fund.
433-19         (b)  The director is not required to file a bond or other
433-20   security to serve as administrator of the trust fund.
433-21         (c)  The trust fund, fees collected for the trust fund, and
433-22   income earned from investment of the trust fund may be used only
433-23   for the protection programs prescribed by this subchapter.
433-24         (d)  Money in the trust fund may be invested and reinvested
433-25   in the same manner as the funds of the Employees Retirement System
433-26   of Texas.  An investment may not be made that would impair the
433-27   liquidity necessary to fund the protection programs prescribed by
 434-1   this subchapter.  Income from the trust fund shall be deposited to
 434-2   the credit of the fund. (V.A.C.S. Art. 5221f, Secs. 13(j) (part),
 434-3   13A(a) (part), (b), (d).)
 434-4         Sec. 1201.403.  AMOUNT RESERVED IN TRUST FUND; PAYMENT OF
 434-5   COSTS. (a)  One million dollars shall be reserved in the trust fund
 434-6   for payment of valid consumer claims.
 434-7         (b)  Unless the balance of the trust fund is less than $1
 434-8   million, the costs of the director and the department in
 434-9   administering the trust fund, keeping books and records,
434-10   investigating consumer complaints, and conducting the informal
434-11   dispute resolution process shall be paid from the trust fund.
434-12   (V.A.C.S. Art. 5221f, Sec. 13A(j).)
434-13         Sec. 1201.404.  CONSUMER COMPENSATION. (a)  Except as
434-14   otherwise provided  by Subchapter C, the trust fund shall be used
434-15   to compensate a consumer who sustains actual damages resulting from
434-16   an unsatisfied claim against a licensed manufacturer, retailer,
434-17   broker, or installer if the unsatisfied claim results from a
434-18   violation of:
434-19               (1)  this chapter;
434-20               (2)  a rule adopted by the director;
434-21               (3)  the National Manufactured Housing Construction and
434-22   Safety Standards Act of 1974 (42 U.S.C. Section 5401 et seq.);
434-23               (4)  a rule or regulation of the United States
434-24   Department of Housing and Urban Development; or
434-25               (5)  Subchapter E, Chapter 17, Business & Commerce
434-26   Code.
434-27         (b)  The trust fund and the director are not liable to the
 435-1   consumer if the trust fund does not have the money necessary to pay
 435-2   the actual damages and attorney's fees determined to be payable.
 435-3   The director shall record the date and time of receipt of each
 435-4   verified complaint and, as money becomes available, pay the
 435-5   consumer whose claim is the earliest by date and time. (V.A.C.S.
 435-6   Art. 5221f, Secs. 13A(e), (i) (part).)
 435-7         Sec. 1201.405.  LIMITATIONS ON CLAIMS. (a)  The payment of
 435-8   actual damages is limited to the lesser of:
 435-9               (1)  the amount of actual, reasonable costs, not
435-10   including attorney's fees, that the consumer has incurred or will
435-11   incur to resolve the act or omission found to be a violation under
435-12   Section 1201.404; or
435-13               (2)  $35,000.
435-14         (b)  Attorney's fees and costs are limited to 20 percent of
435-15   the amount of actual damages.
435-16         (c)  The trust fund is not liable for and the director may
435-17   not pay:
435-18               (1)  punitive, exemplary, double, or treble damages; or
435-19               (2)  damages for pain and suffering, mental anguish,
435-20   emotional distress, or other analogous tort claims.
435-21         (d)  Notwithstanding other provisions of this subchapter,
435-22   this subchapter does not apply to, and a consumer may not recover
435-23   against the trust fund as a result of, a claim against a license
435-24   holder that results from a cause of action directly related to the
435-25   sale, lease-purchase, exchange, brokerage, or installation of a
435-26   manufactured home before September 1, 1987.  (V.A.C.S. Art. 5221f,
435-27   Secs. 13A(i) (part), (k).)
 436-1         Sec. 1201.406.  PROCEDURE FOR RECOVERY FROM TRUST FUND. (a)
 436-2   To recover from the trust fund, a consumer must file a written
 436-3   complaint in the form required by the director not later than the
 436-4   second anniversary of:
 436-5               (1)  the date of the alleged act or omission causing
 436-6   the actual damages; or
 436-7               (2)  the date the act or omission is discovered or
 436-8   should reasonably have been discovered.
 436-9         (b)  On receipt of a verified complaint, the department
436-10   shall:
436-11               (1)  notify each appropriate license holder; and
436-12               (2)  investigate the claim to determine:
436-13                     (A)  the validity of the claim; and
436-14                     (B)  whether the complaint can be resolved by
436-15   remedial action of the license holder. (V.A.C.S. Art. 5221f, Sec.
436-16   13A(f) (part).)
436-17         Sec. 1201.407.  DISAGREEMENT OF PARTIES; INFORMAL DISPUTE
436-18   RESOLUTION PROCESS. (a)  If the license holders or a license holder
436-19   and a consumer disagree as to responsibility for a complaint, the
436-20   department shall conduct an informal dispute resolution process,
436-21   including a home inspection if appropriate, to resolve the dispute.
436-22         (b)  For a claim determined to be valid, the department shall
436-23   make a preliminary determination during the informal dispute
436-24   resolution process as to the responsibility and liability of the
436-25   manufacturer, retailer, and installer.
436-26         (c)  Before making a final determination, the department
436-27   shall provide a license holder  an opportunity to comment on the
 437-1   preliminary determination.
 437-2         (d)  The department shall notify a license holder's surety
 437-3   and give the surety an opportunity to participate in the informal
 437-4   dispute resolution process if the license holder:
 437-5               (1)  is out of business;
 437-6               (2)  is no longer licensed; or
 437-7               (3)  has filed for liquidation or reorganization in
 437-8   bankruptcy.
 437-9         (e)  If, after receiving notice of the claim, a license
437-10   holder or the license holder's surety fails or refuses to
437-11   participate in the informal dispute resolution process, the license
437-12   holder or surety, as applicable, is bound by the department's final
437-13   determination of responsibility and liability. (V.A.C.S.
437-14   Art. 5221f, Secs. 13A(f) (part), (g) (part).)
437-15         Sec. 1201.408.  AGREEMENT OF PARTIES; ARBITRATION. (a)  If
437-16   the parties agree as to responsibility for a complaint, the
437-17   department shall prepare and file with the director a written
437-18   report of the agreement.
437-19         (b)  If a disputed claim is not resolved through the informal
437-20   dispute resolution process, the parties may submit the claim for
437-21   formal binding arbitration under Title 9, United States Code.  The
437-22   director by rule shall establish procedures for:
437-23               (1)  the arbitration; and
437-24               (2)  approval and selection of arbitrators.  (V.A.C.S.
437-25   Art. 5221f, Secs. 13A(f) (part), (h).)
437-26         Sec. 1201.409.  PAYMENT BY SURETY OR FROM OTHER SECURITY. (a)
437-27   Except as otherwise provided by Subchapter C, the trust fund shall
 438-1   be reimbursed by the surety on a bond or from other security filed
 438-2   under Subchapter C for the amount of a claim that:
 438-3               (1)  is paid out of the trust fund by the director to a
 438-4   consumer; and
 438-5               (2)  resulted from an act or omission of the license
 438-6   holder who filed the bond or other security.
 438-7         (b)  Payment by the surety or from the other security must be
 438-8   made not later than the 30th day after the date of receipt of
 438-9   notice from the director that a consumer claim has been paid.
438-10         (c)  If payment to the trust fund of a claim is not made by
438-11   the surety or from the other security in a timely manner, the
438-12   attorney general shall file suit for recovery of the amount due the
438-13   trust fund.  Venue for the suit is in Travis County.  (V.A.C.S.
438-14   Art. 5221f, Sec. 13(i).)
438-15         Sec. 1201.410.  INFORMATIONAL PAMPHLET. (a)  The director
438-16   shall prepare a pamphlet informing consumers of their rights to
438-17   recover from the trust fund.
438-18         (b)  The director may contract with a private party for the
438-19   printing and distribution of the pamphlet.  (V.A.C.S. Art. 5221f,
438-20   Sec. 13(j) (part).)
438-21           (Sections 1201.411-1201.450 reserved for expansion)
438-22           SUBCHAPTER J.  USED OR SALVAGED MANUFACTURED HOMES
438-23         Sec. 1201.451.  TRANSFER OF GOOD AND MARKETABLE TITLE
438-24   REQUIRED. (a)  Except as otherwise provided by this subchapter, a
438-25   person may not sell, exchange, or lease-purchase a used
438-26   manufactured home without the appropriate transfer of good and
438-27   marketable title to the home unless the sale, exchange, or
 439-1   lease-purchase is to:
 439-2               (1)  a purchaser for the purchaser's business use; or
 439-3               (2)  a rebuilder for the purpose of rebuilding a
 439-4   salvaged manufactured home.
 439-5         (b)  Not later than the 30th day after the effective date of
 439-6   the transfer of ownership or the date the seller or transferor
 439-7   obtains possession of the necessary executed documents, the seller
 439-8   or transferor shall forward to the department properly completed
 439-9   documents for the transfer of title. (V.A.C.S. Art. 5221f, Sec.
439-10   8(d).)
439-11         Sec. 1201.452.  SEAL OR LABEL REQUIRED. (a)  Except as
439-12   otherwise provided by this subchapter, a person may not sell,
439-13   exchange, or lease-purchase or negotiate for the sale, exchange, or
439-14   lease-purchase of a used manufactured home to a consumer unless the
439-15   appropriate seal or label is attached to the home.
439-16         (b)  If the home does not have the appropriate seal or label,
439-17   the person must:
439-18               (1)  apply to the department for a seal; and
439-19               (2)  pay the fee.  (V.A.C.S. Art. 5221f, Sec. 8(a).)
439-20         Sec. 1201.453.  HABITABILITY. Manufactured housing is
439-21   habitable only if:
439-22               (1)  there is no defect or deterioration in or damage
439-23   to the home that creates a dangerous situation;
439-24               (2)  the plumbing, heating, and electrical systems are
439-25   in safe working order;
439-26               (3)  the walls, floor, and roof are:
439-27                     (A)  free from a substantial opening that was not
 440-1   designed; and
 440-2                     (B)  structurally sound; and
 440-3               (4)  all exterior doors and windows are in place.
 440-4   (V.A.C.S. Art. 5221f, Sec. 8(c).)
 440-5         Sec. 1201.454.  HABITABILITY:  PROHIBITED ALTERATION OR
 440-6   REPLACEMENT. A manufacturer, retailer, broker, installer, or
 440-7   lienholder may not repair or otherwise alter a used manufactured
 440-8   home or replace a component or system of a used manufactured home
 440-9   in a way that makes the home not habitable. (V.A.C.S. Art. 5221f,
440-10   Sec. 6(c) (part).)
440-11         Sec. 1201.455.  WARRANTY OF HABITABILITY REQUIRED. (a)
440-12   Except as otherwise provided by this subchapter, a person may not
440-13   sell, exchange, or lease-purchase a used manufactured home to a
440-14   consumer for use as a dwelling without providing a written warranty
440-15   that the home is habitable.
440-16         (b)  Unless, not later than the 60th day after the date of
440-17   the sale, exchange, or lease-purchase agreement, the consumer
440-18   notifies the seller in writing of a defect that makes the home not
440-19   habitable, any obligation or liability of the seller under this
440-20   subchapter is terminated.  The warranty must conspicuously disclose
440-21   that notice requirement to the consumer.  (V.A.C.S. Art. 5221f,
440-22   Sec. 8(b) (part), as amended Acts 76th Leg., R.S., Chs. 351 and
440-23   1369.)
440-24         Sec. 1201.456.  HABITABILITY:  EXCEPTION TO WARRANTY
440-25   REQUIREMENT. The warranty requirement imposed by Section 1201.455
440-26   does not apply to a sale, exchange, or lease-purchase of a used
440-27   manufactured home from one consumer to another. (V.A.C.S.
 441-1   Art. 5221f, Sec. 8(b) (part), as amended Acts 76th Leg., R.S., Chs.
 441-2   351 and 1369.)
 441-3         Sec. 1201.457.  HABITABILITY:  CHANGE TO OR FROM BUSINESS
 441-4   USE. (a)  If the sale, exchange, or lease-purchase of a used
 441-5   manufactured home is to a purchaser for the purchaser's business
 441-6   use, the home is not required to be habitable.  The seller must
 441-7   surrender the title to the home to the department for cancellation.
 441-8         (b)  The purchaser of a used manufactured home for business
 441-9   use may not sell, exchange, or lease-purchase the home for use as a
441-10   dwelling unless the director issues a new title to the home.  On
441-11   the purchaser's application to the department for issuance of a new
441-12   title, the department shall inspect the home and, if the department
441-13   determines that the home is habitable, issue the title.  (V.A.C.S.
441-14   Art. 5221f, Secs. 8(b) (part), as amended Acts 76th Leg., R.S.,
441-15   Chs. 351 and 1369, (e).)
441-16         Sec.  1201.458.  HABITABILITY:  EXCEPTION FOR CERTAIN
441-17   GOVERNMENTAL OR NONPROFIT ENTITIES. (a)  Notwithstanding any other
441-18   provision of this subchapter and on a written application by the
441-19   purchaser or transferee, the director may give express written
441-20   authorization to a licensed retailer to sell or exchange a used
441-21   manufactured home that is not or may not be habitable to or with a
441-22   governmental housing agency or authority or to a nonprofit
441-23   organization that provides housing for the homeless.
441-24         (b)  As a part of the application, the purchaser or
441-25   transferee must certify to the receipt of a written notice that the
441-26   home is not or may not be habitable.  The consumer protection
441-27   division of the attorney general's office shall prepare the form of
 442-1   the notice, which must be approved by the director.
 442-2         (c)  The purchaser or transferee may not occupy or allow
 442-3   occupation of the home as a dwelling until the completion of any
 442-4   repair necessary to make the home habitable.  (V.A.C.S. Art. 5221f,
 442-5   Sec. 8(h).)
 442-6         Sec. 1201.459.  COMPLIANCE NOT REQUIRED FOR SALE FOR
 442-7   COLLECTION OF DELINQUENT TAXES. (a)  In selling a manufactured home
 442-8   to collect delinquent taxes, a tax collector is not required to
 442-9   comply with this subchapter or another provision of this chapter
442-10   relating to the sale of a used manufactured home.
442-11         (b)  If the home does not have a serial number, seal, or
442-12   label, the tax collector may:
442-13               (1)  apply to the department for a seal;
442-14               (2)  pay the applicable fee; and
442-15               (3)  recover that fee as part of the cost of the sale
442-16   of the home.
442-17         (c)  The seal issued to the tax collector is for
442-18   identification purposes only and does not imply that:
442-19               (1)  the home is habitable; or
442-20               (2)  a purchaser of the home at a tax sale may obtain a
442-21   document of title from the department without an inspection for
442-22   habitability.  (V.A.C.S. Art. 5221f, Sec. 8(i).)
442-23         Sec. 1201.460.  COMPLIANCE NOT REQUIRED FOR LIENHOLDER. (a)
442-24   A holder of a lien recorded on a department-issued manufactured
442-25   home document of title who sells, exchanges, or lease-purchases a
442-26   repossessed manufactured home covered by that document of title is
442-27   not required to comply with this chapter if the sale, exchange, or
 443-1   lease-purchase is:
 443-2               (1)  to or through a licensed retailer; or
 443-3               (2)  to a purchaser for the purchaser's business use.
 443-4         (b)  If the sale, exchange, or lease-purchase of the
 443-5   repossessed manufactured home is to or through a licensed retailer,
 443-6   the retailer is responsible and liable for compliance with this
 443-7   chapter and department rules.  The lienholder may not be joined as
 443-8   a party in any litigation relating to the sale, exchange, or
 443-9   lease-purchase of the home.
443-10         (c)  If the sale, exchange, or lease-purchase of the
443-11   repossessed manufactured home is to a purchaser for the purchaser's
443-12   business use, the lienholder shall surrender the title to the
443-13   department for cancellation.  (V.A.C.S. Art. 5221f, Sec. 8(f).)
443-14         Sec. 1201.461.  SALVAGED MANUFACTURED HOME. (a)  For the
443-15   purposes of this chapter, a manufactured home is salvaged if the
443-16   home is scrapped, dismantled, or destroyed or if an insurance
443-17   company pays the full insured value of the home.  The
443-18   reasonableness of the insurer's judgment that the cost of repairing
443-19   the home would exceed the full insured value of the home does not
443-20   affect whether the home is salvaged.
443-21         (b)  A person who possesses the original document of title to
443-22   a used manufactured home that is salvaged shall surrender the
443-23   document of title to the director for cancellation of the title and
443-24   issuance of a salvage title.
443-25         (c)  If a new manufactured home is salvaged, the retailer
443-26   shall remove the label and surrender the label and the
443-27   manufacturer's certificate under Section 1201.204 to the director
 444-1   for issuance of a salvage title.
 444-2         (d)  A person may  not sell, convey, or otherwise transfer to
 444-3   a consumer in this state a manufactured home for which a salvage
 444-4   title has been issued.  A salvaged manufactured home may be sold
 444-5   only to a licensed retailer or licensed rebuilder.
 444-6         (e)  A person may not repair, rebuild, or otherwise alter a
 444-7   salvaged manufactured home unless the person complies with the
 444-8   rules of the director relating to rebuilding a salvaged
 444-9   manufactured home.
444-10         (f)  If a salvaged manufactured home is rebuilt in accordance
444-11   with this chapter and the rules of the director, the director
444-12   shall, on application, issue a document of title to replace the
444-13   salvage title. (V.A.C.S. Art. 5221f, Secs. 6(h), 7(n) (part),
444-14   8(g).)
444-15           (Sections 1201.462-1201.500 reserved for expansion)
444-16                   SUBCHAPTER K.  PROHIBITED PRACTICES
444-17         Sec. 1201.501.  PROHIBITED CONSTRUCTION BY MANUFACTURER. A
444-18   manufacturer may not construct a HUD-code manufactured home in this
444-19   state for sale or resale unless the manufacturer:
444-20               (1)  supplies the department with proof of acceptance
444-21   by a design approval primary inspection agency authorized by the
444-22   United States Department of Housing and Urban Development;
444-23               (2)  purchases the required labels; and
444-24               (3)  has the home inspected by an in-plant inspection
444-25   agency authorized by the United States Department of Housing and
444-26   Urban Development. (V.A.C.S. Art. 5221f, Sec. 6(a) (part).)
444-27         Sec. 1201.502.  PROHIBITED SHIPPING BY MANUFACTURER. A
 445-1   manufacturer may not ship a HUD-code manufactured home into this
 445-2   state for sale or resale unless the manufacturer complies with:
 445-3               (1)  all requirements of the National Manufactured
 445-4   Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
 445-5   Section 5401 et seq.); and
 445-6               (2)  all standards, rules, and regulations of the
 445-7   United States Department of Housing and Urban Development.
 445-8   (V.A.C.S. Art. 5221f, Sec. 6(a) (part).)
 445-9         Sec. 1201.503.  PROHIBITED ALTERATION. Before the sale to a
445-10   consumer of a new manufactured home to which a label has been
445-11   attached and before installation of the home, a manufacturer,
445-12   retailer, broker, or installer may not alter the home or cause the
445-13   home to be altered without obtaining prior written approval from
445-14   the department. (V.A.C.S. Art. 5221f, Sec. 6(c) (part).)
445-15         Sec. 1201.504.  PROHIBITED SALE, EXCHANGE, OR LEASE-PURCHASE.
445-16   (a)  A manufacturer may not sell, exchange, or lease-purchase or
445-17   offer to sell, exchange, or lease-purchase a manufactured home to a
445-18   person in this state who is not a licensed retailer.
445-19         (b)  A retailer may not sell, exchange, or lease-purchase or
445-20   offer to sell, exchange, or lease-purchase a new HUD-code
445-21   manufactured home that was constructed by a manufacturer who was
445-22   not licensed by the department at the time of construction.
445-23         (c)  A retailer, broker, or salesperson may not sell,
445-24   exchange, or lease-purchase or offer to sell, exchange, or
445-25   lease-purchase a manufactured home to a consumer in this state for
445-26   use as a dwelling unless the appropriate seal or label is attached
445-27   to the home.  (V.A.C.S. Art. 5221f, Secs. 6(d), (e), (g) (part).)
 446-1         Sec. 1201.505.  PROHIBITED PURCHASE. A retailer may not
 446-2   purchase for resale to a consumer a new HUD-code manufactured home
 446-3   that was constructed by a manufacturer who was not licensed by the
 446-4   department at the time of construction.  (V.A.C.S. Art. 5221f, Sec.
 446-5   6(g) (part).)
 446-6         Sec. 1201.506.  CREDIT. (a)  A retailer or broker:
 446-7               (1)  shall comply with Subtitles A and B, Title 4,
 446-8   Finance Code, and the Truth in Lending Act (15 U.S.C. Section 1601
 446-9   et seq.); and
446-10               (2)  may not advertise an interest rate or finance
446-11   charge that is not expressed as an annual percentage rate.
446-12         (b)  A violation of this section does not create a cause of
446-13   action or claim for damages for a consumer.  The consumer may not
446-14   recover more than the penalties provided by Subtitles A and B,
446-15   Title 4, Finance Code, and the Truth in Lending Act (15 U.S.C.
446-16   Section 1601 et seq.). (V.A.C.S. Art. 5221f, Sec. 6(j).)
446-17         Sec. 1201.507.  FALSE OR MISLEADING INFORMATION. (a)  A
446-18   retailer or salesperson may not:
446-19               (1)  assist a consumer in preparing or providing false
446-20   or misleading information on a document related to the purchase or
446-21   financing of a manufactured home; or
446-22               (2)  submit to a credit underwriter or lending
446-23   institution information known to be false or misleading.
446-24         (b)  A salesperson may not submit to a retailer information
446-25   known to be false or misleading.  (V.A.C.S. Art. 5221f, Sec. 6(l).)
446-26         Sec. 1201.508.  DOWN PAYMENT. (a)  A retailer may not state
446-27   payment of a down payment in a retail installment sales contract or
 447-1   other credit document unless the retailer has actually received the
 447-2   entire down payment at the time of execution of the document.
 447-3         (b)  If part of the down payment is consideration other than
 447-4   cash, including a loan or trade-in, the retailer must expressly
 447-5   state that fact in the retail installment sales contract or other
 447-6   credit document.
 447-7         (c)  A cash down payment may not be derived in any part from
 447-8   a rebate or other consideration received by, or to be given to, the
 447-9   consumer from the retailer or manufacturer.  (V.A.C.S. Art. 5221f,
447-10   Sec. 6(k).)
447-11         Sec. 1201.509.  PROHIBITED RETENTION OF DEPOSIT. A retailer,
447-12   salesperson, or agent of the retailer may not refuse to refund a
447-13   consumer's deposit except as provided by Section 1201.151.
447-14   (V.A.C.S. Art. 5221f, Sec. 6(m) (part).)
447-15         Sec. 1201.510.  PROHIBITED INSTALLATION OF AIR CONDITIONING
447-16   EQUIPMENT. A retailer or an installer may not contract with a
447-17   person for the installation of air conditioning equipment in
447-18   connection with the installation of a manufactured home unless the
447-19   person is licensed by the state as an air conditioning and
447-20   refrigeration contractor.  (V.A.C.S. Art. 5221f, Sec. 7(l) (part).)
447-21         Sec. 1201.511.  PROHIBITED REAL ESTATE TRANSACTION. (a)  This
447-22   section applies to a transaction in which a manufactured home is
447-23   sold as personal property and titled under Subchapter E.  This
447-24   section does not apply to a real estate transaction in which a
447-25   manufactured home is real property under Section 2.001, Property
447-26   Code.
447-27         (b)  A retailer may not sell, represent for sale, or offer
 448-1   for sale real property in conjunction with the sale of a
 448-2   manufactured home except as authorized by the department consistent
 448-3   with Chapter 1101.  (V.A.C.S. Art. 5221f, Sec. 6A.)
 448-4           (Sections 1201.512-1201.550 reserved for expansion)
 448-5                 SUBCHAPTER L.  DISCIPLINARY PROCEDURES
 448-6         Sec. 1201.551.  DENIAL OF LICENSE; DISCIPLINARY ACTION. (a)
 448-7   The director, after notice as provided for under Section 1201.054
 448-8   and a hearing as provided by Sections 1201.054 and 1201.060, may
 448-9   deny, permanently revoke, or suspend for a definite period and
448-10   specified sales location or geographic area a license if the
448-11   director determines that the applicant or license holder:
448-12               (1)  knowingly and wilfully violated this chapter or a
448-13   rule adopted or order issued under this chapter;
448-14               (2)  unlawfully retained or converted money, property,
448-15   or any other thing of value from a consumer in the form of a down
448-16   payment, sales or use tax, deposit, or insurance premium;
448-17               (3)  failed to deliver a proper certificate or other
448-18   document of title to a consumer;
448-19               (4)  failed to give or breached a manufactured home
448-20   warranty required by this chapter or by the Federal Trade
448-21   Commission;
448-22               (5)  engaged in a false, misleading, or deceptive act
448-23   or practice as described by Subchapter E, Chapter 17, Business &
448-24   Commerce Code;
448-25               (6)  failed to provide or file a report required by the
448-26   department for the administration or enforcement of this chapter;
448-27               (7)  provided false information on an application,
 449-1   report, or other document filed with the department;
 449-2               (8)  acquired a criminal record during the five-year
 449-3   period preceding the application date that, in the opinion of the
 449-4   director, makes the applicant unfit for licensing; or
 449-5               (9)  failed to file a bond or other security for each
 449-6   location as required by Subchapter C.
 449-7         (b)  The department may suspend or revoke a license if, after
 449-8   receiving notice of a claim, the license holder or the license
 449-9   holder's surety fails or refuses to participate in the informal
449-10   dispute resolution process described by Section 1201.407. (V.A.C.S.
449-11   Art. 5221f, Secs. 7(j), 13A(g) (part).)
449-12         Sec. 1201.552.  HEARING CONCERNING LICENSE. The director
449-13   shall conduct a hearing involving the denial, renewal, revocation,
449-14   or suspension of a license in accordance with Chapter 2001,
449-15   Government Code.  (V.A.C.S. Art. 5221f, Sec. 7(k).)
449-16         Sec. 1201.553.  JUDICIAL REVIEW. Judicial review of an order,
449-17   decision, or determination of the director is instituted by filing
449-18   a petition with a district court in Travis County as provided by
449-19   Chapter 2001, Government Code.  (V.A.C.S. Art. 5221f, Sec. 17(d).) 
449-20           (Sections 1201.554-1201.600 reserved for expansion)
449-21           SUBCHAPTER M.  ENFORCEMENT PROVISIONS AND PENALTIES
449-22         Sec. 1201.601.  ACTION AGAINST RETAILER OR MANUFACTURER:
449-23   HOLDER OF DEBT INSTRUMENT. (a)  If a consumer files a cause of
449-24   action against a retailer or manufacturer, a claim based on an act
449-25   of the retailer or manufacturer that the consumer could assert
449-26   against the holder of the manufactured home debt instrument must be
449-27   asserted against the holder in the primary suit against the
 450-1   retailer or manufacturer.
 450-2         (b)  A judgment obtained in the primary suit against the
 450-3   retailer or manufacturer is conclusive proof as to the holder of
 450-4   the debt instrument and admissible in an action by the consumer
 450-5   against the holder only if the consumer joins the holder in the
 450-6   primary suit.
 450-7         (c)  The holder of the debt instrument is entitled to full
 450-8   indemnity from the retailer or manufacturer for a claim based on an
 450-9   act or omission of the retailer or manufacturer.
450-10         (d)  If the consumer asserts against the holder of the debt
450-11   instrument a claim or defense that arises from a claim or defense
450-12   of the consumer against the retailer, the consumer's relief against
450-13   the holder arising from claims and defenses of the consumer against
450-14   the retailer is limited to recovery of an amount not to exceed the
450-15   total amount paid by the consumer to the holder and to cancellation
450-16   of the balance remaining on the instrument.  If the balance
450-17   remaining on the instrument is canceled, the manufactured home
450-18   shall be returned to the holder.  (V.A.C.S. Art. 5221f, Secs.
450-19   18(h), (i).)
450-20         Sec. 1201.602.  ACTION AGAINST MANUFACTURER, INSTALLER, OR
450-21   RETAILER: ABATEMENT OR BAR. (a)  Notwithstanding any other law, a
450-22   suit alleging that a manufacturer, installer, or retailer failed to
450-23   perform warranty service or failed to comply with a written or
450-24   implied warranty is abated if:
450-25               (1)  a plea in abatement is filed with the court not
450-26   later than the 45th day after the movant's answer date; and
450-27               (2)  the manufacturer, installer, or retailer requests
 451-1   a consumer complaint home inspection under Section 1201.355.
 451-2         (b)  The abatement continues until the earlier of:
 451-3               (1)  the date on which the department performs a
 451-4   consumer complaint home inspection and the manufacturer, installer,
 451-5   or retailer is given an opportunity to comply with the inspection
 451-6   report, determinations, and orders of the director; or
 451-7               (2)  the expiration of a period not to exceed 150 days.
 451-8         (c)  A consumer's refusal to allow the manufacturer,
 451-9   installer, or retailer to perform warranty service in accordance
451-10   with the inspection report, determinations, and orders of the
451-11   director bars a cause of action relating to an alleged failure to:
451-12               (1)  comply with a written or implied warranty; or
451-13               (2)  perform warranty service.  (V.A.C.S. Art. 5221f,
451-14   Sec. 17(c) (part).)
451-15         Sec. 1201.603.  DECEPTIVE TRADE PRACTICES. (a)  A person's
451-16   violation of this chapter or the failure by a manufacturer,
451-17   installer, or retailer to comply with an implied warranty is a
451-18   deceptive trade practice actionable under Subchapter E, Chapter 17,
451-19   Business & Commerce Code.
451-20         (b)  The venue provisions of Subchapter E, Chapter 17,
451-21   Business & Commerce Code, apply to a claim under Subsection (a).
451-22   The remedies available under Subchapter E, Chapter 17, Business &
451-23   Commerce Code, are cumulative of the remedies under this chapter.
451-24   (V.A.C.S. Art. 5221f, Secs. 17(c) (part), 18(b) (part).)
451-25         Sec. 1201.604.  CONSUMER RECOVERY FOR PROHIBITED RETENTION OF
451-26   DEPOSIT. In addition to any other remedy, a consumer may recover
451-27   from a retailer, salesperson, or agent of the retailer who violates
 452-1   Section 1201.151:
 452-2               (1)  three times the amount of the deposit; and
 452-3               (2)  reasonable attorney's fees.  (V.A.C.S. Art. 5221f,
 452-4   Sec. 6(m)(2).)
 452-5         Sec. 1201.605.  ADMINISTRATIVE PENALTY. The director may
 452-6   assess a person who fails to obtain or maintain a license as
 452-7   required by this chapter an administrative penalty in an amount not
 452-8   to exceed $10,000 for each violation of this chapter and:
 452-9               (1)  reasonable attorney's fees;
452-10               (2)  administrative costs;
452-11               (3)  witness fees;
452-12               (4)  investigative costs; and
452-13               (5)  deposition expenses.  (V.A.C.S. Art. 5221f, Sec.
452-14   17(b).)
452-15         Sec. 1201.606.  CRIMINAL PENALTY. (a)  A person or a
452-16   director, officer, or agent of a corporation commits an offense if
452-17   the person, director, officer, or agent knowingly and wilfully
452-18   violates this chapter or a rule adopted or order issued by the
452-19   department in a manner that threatens consumer health or safety.
452-20         (b)  An offense under this section is a Class A misdemeanor
452-21   punishable by:
452-22               (1)  a fine of not more than $2,000;
452-23               (2)  confinement in county jail for a term of not more
452-24   than one year; or
452-25               (3)  both the fine and confinement.  (V.A.C.S.
452-26   Art. 5221f, Sec. 17(a).)
452-27           CHAPTER 1202.  INDUSTRIALIZED HOUSING AND BUILDINGS
 453-1                    SUBCHAPTER A.  GENERAL PROVISIONS
 453-2   Sec. 1202.001.  GENERAL DEFINITIONS 
 453-3   Sec. 1202.002.  DEFINITION OF INDUSTRIALIZED HOUSING 
 453-4   Sec. 1202.003.  DEFINITION OF INDUSTRIALIZED BUILDING 
 453-5           (Sections 1202.004-1202.050 reserved for expansion)
 453-6              SUBCHAPTER B.  TEXAS INDUSTRIALIZED BUILDING
 453-7                              CODE COUNCIL
 453-8   Sec. 1202.051.  COUNCIL MEMBERSHIP 
 453-9   Sec. 1202.052.  MEMBERSHIP RESTRICTIONS 
453-10   Sec. 1202.053.  TERMS 
453-11   Sec. 1202.054.  PRESIDING OFFICER 
453-12   Sec. 1202.055.  SECRETARY; PERSONNEL 
453-13   Sec. 1202.056.  REIMBURSEMENT 
453-14   Sec. 1202.057.  QUORUM 
453-15           (Sections 1202.058-1202.100 reserved for expansion)
453-16                  SUBCHAPTER C.  COUNCIL AND COMMISSION
453-17                            POWERS AND DUTIES
453-18   Sec. 1202.101.  RULES; ORDERS 
453-19   Sec. 1202.102.  RULES PROVIDING FOR REGISTRATION
453-20                     AND REGULATION 
453-21   Sec. 1202.103.  CONTINUING EDUCATION 
453-22   Sec. 1202.104.  FEES 
453-23   Sec. 1202.105.  APPROVAL OF THIRD-PARTY INSPECTORS AND
453-24                     DESIGN REVIEW AGENCIES 
453-25           (Sections 1202.106-1202.150 reserved for expansion)
453-26                SUBCHAPTER D.  REQUIREMENTS AND STANDARDS
453-27                FOR INDUSTRIALIZED HOUSING AND BUILDINGS
 454-1   Sec. 1202.151.  BUILDING CODES 
 454-2   Sec. 1202.152.  BUILDING CODE AMENDMENT 
 454-3   Sec. 1202.153.  BUILDING CODE AMENDMENT:  MUNICIPALITY
 454-4                     OR OTHER POLITICAL SUBDIVISION 
 454-5   Sec. 1202.154.  DESIGN REVIEW 
 454-6   Sec. 1202.155.  COUNCIL STAMP OF APPROVAL 
 454-7   Sec. 1202.156.  COUNCIL DETERMINATION OF CERTAIN QUESTIONS
 454-8                     RELATED TO INDUSTRIALIZED HOUSING AND
 454-9                     BUILDINGS 
454-10   Sec. 1202.157.  COUNCIL DECISIONS BINDING 
454-11           (Sections 1202.158-1202.200 reserved for expansion)
454-12                       SUBCHAPTER E.  INSPECTIONS
454-13   Sec. 1202.201.  INSPECTION PROCEDURES 
454-14   Sec. 1202.202.  IN-PLANT INSPECTIONS 
454-15   Sec. 1202.203.  ON-SITE INSPECTIONS 
454-16   Sec. 1202.204.  RULES PROVIDING FOR DECALS OR INSIGNIA 
454-17   Sec. 1202.205.  RECIPROCITY 
454-18           (Sections 1202.206-1202.250 reserved for expansion)
454-19                   SUBCHAPTER F.  MUNICIPAL AUTHORITY
454-20   Sec. 1202.251.  RESERVATION OF MUNICIPAL AUTHORITY 
454-21   Sec. 1202.252.  MUNICIPAL REGULATION OF INDUSTRIALIZED
454-22                     HOUSING AND BUILDINGS 
454-23           (Sections 1202.253-1202.300 reserved for expansion)
454-24                   SUBCHAPTER G.  PROHIBITED PRACTICES
454-25                       AND DISCIPLINARY PROCEDURES
454-26   Sec. 1202.301.  PROHIBITED PRACTICES 
454-27   Sec. 1202.302.  DENIAL OF CERTIFICATE;
 455-1                     DISCIPLINARY ACTION 
 455-2           (Sections 1202.303-1202.350 reserved for expansion)
 455-3                        SUBCHAPTER H.  PENALTIES
 455-4   Sec. 1202.351.  CRIMINAL PENALTY 
 455-5           CHAPTER 1202.  INDUSTRIALIZED HOUSING AND BUILDINGS
 455-6                    SUBCHAPTER A.  GENERAL PROVISIONS
 455-7         Sec. 1202.001.  GENERAL DEFINITIONS. In this chapter:
 455-8               (1)  "Commission" means the Texas Commission of
 455-9   Licensing and Regulation.
455-10               (2)  "Commissioner" means the commissioner of licensing
455-11   and regulation.
455-12               (3)  "Council" means the Texas Industrialized Building
455-13   Code Council.
455-14               (4)  "Department" means the Texas Department of
455-15   Licensing and Regulation.
455-16               (5)  "Modular component" means a structural part of
455-17   housing or a building constructed at a location other than the
455-18   building site in a manner that prevents the construction from being
455-19   adequately inspected for code compliance at the building site
455-20   without:
455-21                     (A)  damage; or
455-22                     (B)  removal and reconstruction of a part of the
455-23   housing or building. (V.A.C.S. Art. 5221f-1, Secs. 1(3), (4), (5),
455-24   (6), (7).)
455-25         Sec. 1202.002.  DEFINITION OF INDUSTRIALIZED HOUSING. (a)
455-26   Industrialized housing is a residential structure that is:
455-27               (1)  designed for the occupancy of one or more
 456-1   families;
 456-2               (2)  constructed in one or more modules or constructed
 456-3   using one or more modular components built at a location other than
 456-4   the permanent site; and
 456-5               (3)  designed to be used as a permanent residential
 456-6   structure when the module or the modular component is transported
 456-7   to the permanent site and erected or installed on a permanent
 456-8   foundation system.
 456-9         (b)  Industrialized housing includes the structure's
456-10   plumbing, heating, air conditioning, and electrical systems.
456-11         (c)  Industrialized housing does not include:
456-12               (1)  a residential structure that exceeds three stories
456-13   or 49 feet in height as measured from the finished grade elevation
456-14   at the building entrance to the peak of the roof;
456-15               (2)  housing constructed of a sectional or panelized
456-16   system that does not use a modular component; or
456-17               (3)  a ready-built home constructed in a manner in
456-18   which the entire living area is contained in a single unit or
456-19   section at a temporary location for the purpose of selling and
456-20   moving the home to another location.  (V.A.C.S. Art. 5221f-1, Sec.
456-21   1(1).)
456-22         Sec. 1202.003.  DEFINITION OF INDUSTRIALIZED BUILDING. (a)
456-23   An industrialized building is a commercial structure that is:
456-24               (1)  constructed in one or more modules or constructed
456-25   using one or more modular components built at a location other than
456-26   the permanent site; and
456-27               (2)  designed to be used as a commercial building when
 457-1   the module or the modular component is transported to the permanent
 457-2   site and erected or installed on a permanent foundation system.
 457-3         (b)  An industrialized building includes the structure's
 457-4   plumbing, heating, air conditioning, and electrical systems.
 457-5         (c)  An industrialized building does not include a commercial
 457-6   structure that exceeds three stories or 49 feet in height as
 457-7   measured from the finished grade elevation at the building entrance
 457-8   to the peak of the roof.  (V.A.C.S. Art. 5221f-1, Sec. 1(2).)
 457-9           (Sections 1202.004-1202.050 reserved for expansion)
457-10        SUBCHAPTER B.  TEXAS INDUSTRIALIZED BUILDING CODE COUNCIL
457-11         Sec. 1202.051.  COUNCIL MEMBERSHIP. The Texas Industrialized
457-12   Building Code Council consists of 12 members appointed by the
457-13   governor as follows:
457-14               (1)  three members who represent the industrialized
457-15   housing and building industries;
457-16               (2)  three members who represent municipal building
457-17   officials from municipalities with a population of more than
457-18   25,000;
457-19               (3)  three members who represent general contractors
457-20   who construct housing or buildings on-site;
457-21               (4)  one member who is an engineer licensed in this
457-22   state who acts as a structural engineer;
457-23               (5)  one member who is an engineer licensed in this
457-24   state who acts as an electrical engineer; and
457-25               (6)  one member who is an architect registered in this
457-26   state.  (V.A.C.S. Art. 5221f-1, Secs. 5(a) (part), (c) (part).)
457-27         Sec. 1202.052.  MEMBERSHIP RESTRICTIONS. An engineer or
 458-1   architect member of the council may not:
 458-2               (1)  be designated as, be employed by, or have an
 458-3   ownership interest in, an entity that is a third-party inspector or
 458-4   design review agency;
 458-5               (2)  have an ownership interest in a business that
 458-6   manufactures or builds industrialized housing or buildings;
 458-7               (3)  in a capacity relating to a matter subject to
 458-8   council review, be employed by or be a paid consultant to a
 458-9   manufacturer or builder of industrialized housing or buildings; or
458-10               (4)  be an officer, employee, or paid consultant of a
458-11   trade association that represents the industrialized housing or
458-12   building industry.  (V.A.C.S. Art. 5221f-1, Sec. 5(b).)
458-13         Sec. 1202.053.  TERMS. Council members serve staggered
458-14   two-year terms, with the terms of half of the members expiring on
458-15   February 1 of each even-numbered year and the terms of the other
458-16   half of the members expiring on February 1 of each odd-numbered
458-17   year. (V.A.C.S. Art. 5221f-1, Sec. 5(c) (part).)
458-18         Sec. 1202.054.  PRESIDING OFFICER. The council shall annually
458-19   elect one of its members as the council's presiding officer.
458-20   (V.A.C.S. Art. 5221f-1, Sec. 5(c) (part).)
458-21         Sec. 1202.055.  SECRETARY; PERSONNEL. The commissioner shall:
458-22               (1)  act as secretary of the council; and
458-23               (2)  provide personnel from the department necessary to
458-24   perform staff functions for the council.  (V.A.C.S. Art. 5221f-1,
458-25   Sec. 5(e).)
458-26         Sec. 1202.056.  REIMBURSEMENT. (a)  A council member may be
458-27   reimbursed for actual costs of travel to attend meetings but may
 459-1   not receive a per diem allowance for food or lodging.
 459-2         (b)  The travel costs shall be paid out of fees collected by
 459-3   the department under Section 1202.104. (V.A.C.S. Art. 5221f-1, Sec.
 459-4   5(n).)
 459-5         Sec. 1202.057.  QUORUM. The vote of at least seven members
 459-6   present at a meeting or the written approval of at least seven
 459-7   members is required for the council to take an action or make a
 459-8   decision.  (V.A.C.S. Art. 5221f-1, Sec. 5(c) (part).)
 459-9           (Sections 1202.058-1202.100 reserved for expansion)
459-10                  SUBCHAPTER C.  COUNCIL AND COMMISSION
459-11                            POWERS AND DUTIES
459-12         Sec. 1202.101.  RULES; ORDERS. (a)  The commissioner shall
459-13   adopt rules and issue orders as necessary to:
459-14               (1)  ensure compliance with the purposes of this
459-15   chapter; and
459-16               (2)  provide for uniform enforcement of this chapter.
459-17         (b)  The commissioner shall adopt rules as appropriate to
459-18   implement the council's actions, decisions, interpretations, and
459-19   instructions. (V.A.C.S. Art. 5221f-1, Secs. 5(m) (part), 6 (part).)
459-20         Sec. 1202.102.  RULES PROVIDING FOR REGISTRATION AND
459-21   REGULATION.  The commissioner by rule shall provide for
459-22   registration and regulation of manufacturers or builders of
459-23   industrialized housing or buildings. (V.A.C.S. Art. 5221f-1, Sec. 6
459-24   (part).)
459-25         Sec. 1202.103.  CONTINUING EDUCATION. (a)  The commissioner
459-26   may recognize, prepare, or administer continuing education programs
459-27   for persons regulated under this chapter.
 460-1         (b)  Participation in a continuing education program is
 460-2   voluntary.  (V.A.C.S. Art. 5221f-1, Sec. 6A.)
 460-3         Sec. 1202.104.  FEES. (a)  The commission shall set fees, in
 460-4   amounts sufficient to cover the costs of the inspections described
 460-5   by this chapter and the administration of this chapter, for:
 460-6               (1)  the registration of manufacturers or builders of
 460-7   industrialized housing or buildings;
 460-8               (2)  the inspection of industrialized housing or
 460-9   buildings at the manufacturing facility; and
460-10               (3)  the issuance of decals or insignia required under
460-11   Section 1202.204.
460-12         (b)  The fees shall be paid to the comptroller and placed in
460-13   the general revenue fund, except that a fee for an inspection may
460-14   be paid directly to an approved third-party inspector who performs
460-15   the inspection.
460-16         (c)  The building and permit fees charged by a municipality
460-17   for an inspection of industrialized housing or buildings to be
460-18   located in the municipality may not exceed the fees charged for the
460-19   equivalent inspection of a building constructed on-site.  (V.A.C.S.
460-20   Art. 5221f-1, Sec. 7.)
460-21         Sec. 1202.105.  APPROVAL OF THIRD-PARTY INSPECTORS AND DESIGN
460-22   REVIEW AGENCIES.  (a)  The council shall establish criteria for the
460-23   approval of, and approve accordingly, all third-party inspectors
460-24   and design review agencies.
460-25         (b)  The commissioner shall recommend qualified third-party
460-26   inspectors and design review agencies to the council.
460-27         (c)  The commissioner shall publish a list of all approved
 461-1   inspectors and design review agencies.  (V.A.C.S. Art. 5221f-1,
 461-2   Sec. 5(f).)
 461-3           (Sections 1202.106-1202.150 reserved for expansion)
 461-4                SUBCHAPTER D.  REQUIREMENTS AND STANDARDS
 461-5                FOR INDUSTRIALIZED HOUSING AND BUILDINGS
 461-6         Sec. 1202.151.  BUILDING CODES. (a)  In addition to complying
 461-7   with Subsection (b) or (c), as applicable, industrialized housing
 461-8   and buildings must be constructed to meet or exceed the
 461-9   requirements and standards of the National Electrical Code,
461-10   published by the National Fire Protection Association, as that code
461-11   existed on January 1, 1985.
461-12         (b)  Industrialized housing and buildings erected or
461-13   installed in a municipality must be constructed to meet or exceed
461-14   the requirements and standards of whichever of the following two
461-15   groups of codes is used by the municipality:
461-16               (1)  the Uniform Building Code, Uniform Plumbing Code,
461-17   and Uniform Mechanical Code, published by the International
461-18   Conference of Building Officials, as those codes existed on January
461-19   1, 1985; or
461-20               (2)  the Standard Building Code, Standard Mechanical
461-21   Code, Standard Plumbing Code, and Standard Gas Code, published by
461-22   the Southern Building Code Congress International, Inc., as those
461-23   codes existed on January 1, 1985.
461-24         (c)  Industrialized housing and buildings erected or
461-25   installed outside a municipality or in a municipality that does not
461-26   use a building code group described by Subsection (b)(1) or (2)
461-27   must be constructed to meet or exceed the requirements and
 462-1   standards of whichever of those building code groups is selected by
 462-2   the manufacturer of the housing or buildings.  (V.A.C.S.
 462-3   Art. 5221f-1, Secs. 2(a), (b).)
 462-4         Sec. 1202.152.  BUILDING CODE AMENDMENT. If a code described
 462-5   by Section 1202.151 is amended after January 1, 1985, the
 462-6   requirements and standards of the amended code shall be used in
 462-7   place of the January 1, 1985, edition if the council determines
 462-8   that use of the amended code is:
 462-9               (1)  in the public interest; and
462-10               (2)  consistent with the purposes of this chapter.
462-11   (V.A.C.S. Art. 5221f-1, Sec. 2(c).)
462-12         Sec. 1202.153.  BUILDING CODE AMENDMENT:  MUNICIPALITY OR
462-13   OTHER POLITICAL SUBDIVISION. (a)  A municipality or other political
462-14   subdivision may not require or enforce, as a prerequisite for
462-15   granting or approving a building or construction permit or
462-16   certificate of occupancy, an amendment to a code described by
462-17   Section 1202.151.
462-18         (b)  On the petition of a local building official and after a
462-19   hearing, the council may require a reasonable amendment to a
462-20   building code group described by Section 1202.151(b)(1) or (2) that
462-21   the council determines to be essential for public health and
462-22   safety.  The amendment shall be applied uniformly on a statewide
462-23   basis.  (V.A.C.S. Art. 5221f-1, Secs. 2(e), 5(i).)
462-24         Sec. 1202.154.  DESIGN REVIEW. To ensure compliance with the
462-25   mandatory construction codes, the department or approved design
462-26   review agency shall review all designs, plans, and specifications
462-27   of industrialized housing and buildings in accordance with council
 463-1   interpretations and instructions.  (V.A.C.S. Art. 5221f-1, Secs. 3
 463-2   (part), 5(g).)
 463-3         Sec. 1202.155.  COUNCIL STAMP OF APPROVAL. (a)  The
 463-4   department or approved design review agency shall place the
 463-5   council's stamp of approval on each page of the designs, plans, and
 463-6   specifications of industrialized housing and buildings that:
 463-7               (1)  meet or exceed the code standards and requirements
 463-8   under council interpretations and instructions; and
 463-9               (2)  are approved by the department or design review
463-10   agency.
463-11         (b)  Each page of the designs, plans, and specifications must
463-12   bear the council's stamp of approval if the designs, plans, and
463-13   specifications satisfy the requirements of Subsection (a)(1) and
463-14   are approved in accordance with Subsection (a)(2).  (V.A.C.S.
463-15   Art. 5221f-1, Secs. 3 (part), 5(k).)
463-16         Sec. 1202.156.  COUNCIL DETERMINATION OF CERTAIN QUESTIONS
463-17   RELATED TO INDUSTRIALIZED HOUSING AND BUILDINGS. (a)  The council
463-18   shall determine all questions raised by a municipality in
463-19   connection with the review of designs, plans, and specifications of
463-20   industrialized housing and buildings, as authorized by Section
463-21   1202.252.
463-22         (b)  With reference to the standards and requirements of the
463-23   mandatory construction codes, the council shall determine, from an
463-24   engineering performance standpoint, all questions concerning:
463-25               (1)  code equivalency; or
463-26               (2)  alternative materials or methods of construction.
463-27   (V.A.C.S. Art. 5221f-1, Secs. 5(h), (j).)
 464-1         Sec. 1202.157.  COUNCIL DECISIONS BINDING. The decisions,
 464-2   actions, and interpretations of the council are binding on the
 464-3   department, third-party inspectors, design review agencies, and
 464-4   municipalities and other political subdivisions.  (V.A.C.S.
 464-5   Art. 5221f-1, Sec. 5(m) (part).)
 464-6           (Sections 1202.158-1202.200 reserved for expansion)
 464-7                       SUBCHAPTER E.  INSPECTIONS
 464-8         Sec. 1202.201.  INSPECTION PROCEDURES. The council may issue
 464-9   instructions to establish procedures for inspecting the
464-10   construction and installation of industrialized housing and
464-11   buildings to ensure compliance with approved designs, plans, and
464-12   specifications.  (V.A.C.S. Art. 5221f-1, Sec. 5(l).)
464-13         Sec. 1202.202.  IN-PLANT INSPECTIONS. (a)  To ensure
464-14   compliance with approved designs, plans, and specifications, the
464-15   department shall inspect the construction of industrialized housing
464-16   and buildings at the manufacturing facility. The commissioner may
464-17   designate approved third-party inspectors to perform the
464-18   inspections subject to the rules of the commissioner.
464-19         (b)  Local building officials may witness in-plant
464-20   inspections to enable the local officials to make recommendations
464-21   on inspection procedures to the council.  (V.A.C.S. Art. 5221f-1,
464-22   Sec. 4(a).)
464-23         Sec. 1202.203.  ON-SITE INSPECTIONS. (a)  A municipal
464-24   building official shall inspect all construction at the permanent
464-25   site of industrialized housing and buildings to be located in the
464-26   municipality to ensure compliance with designs, plans, and
464-27   specifications, including inspection of:
 465-1               (1)  the construction of the foundation system; and
 465-2               (2)  the erection and installation of the modules or
 465-3   modular components on the permanent foundation.
 465-4         (b)  An approved third-party inspector shall perform on-site
 465-5   inspections of industrialized housing and buildings to be located
 465-6   outside the municipality. (V.A.C.S. Art. 5221f-1, Sec. 4(b).)
 465-7         Sec. 1202.204.  RULES PROVIDING FOR DECALS OR INSIGNIA. The
 465-8   commissioner by rule shall provide for the placement of decals or
 465-9   insignia on each transportable modular section or modular component
465-10   to indicate compliance with the mandatory construction codes.
465-11   (V.A.C.S. Art. 5221f-1, Sec. 6 (part).)
465-12         Sec. 1202.205.  RECIPROCITY. (a)  The commissioner by rule
465-13   may authorize an inspection of industrialized housing or buildings
465-14   constructed in another state to be performed by an inspector of the
465-15   equivalent regulatory agency of the other state.
465-16         (b)  The commissioner by rule may authorize an inspection of
465-17   industrialized housing or buildings constructed in this state for
465-18   use in another state.
465-19         (c)  The commissioner shall enter into a reciprocity
465-20   agreement with the equivalent regulatory agency of the other state
465-21   as necessary to implement this section.  (V.A.C.S. Art. 5221f-1,
465-22   Sec. 4(c).)
465-23           (Sections 1202.206-1202.250 reserved for expansion)
465-24                   SUBCHAPTER F.  MUNICIPAL AUTHORITY
465-25         Sec. 1202.251.  RESERVATION OF MUNICIPAL AUTHORITY. (a)
465-26   Municipal authority is specifically and entirely reserved to a
465-27   municipality, including, as applicable:
 466-1               (1)  land use and zoning requirements;
 466-2               (2)  building setback requirements;
 466-3               (3)  side and rear yard requirements;
 466-4               (4)  site planning and development and property line
 466-5   requirements;
 466-6               (5)  subdivision control; and
 466-7               (6)  landscape architectural requirements.
 466-8         (b)  Requirements and regulations not in conflict with this
 466-9   chapter or with other state law relating to transportation,
466-10   erection, installation, or use of industrialized housing or
466-11   buildings must be reasonably and uniformly applied and enforced
466-12   without distinctions as to whether the housing or buildings are
466-13   manufactured or are constructed on-site.  (V.A.C.S. Art. 5221f-1,
466-14   Sec. 2(d) (part).)
466-15         Sec. 1202.252.  MUNICIPAL REGULATION OF INDUSTRIALIZED
466-16   HOUSING AND BUILDINGS. (a)  A municipality that regulates the
466-17   on-site construction or installation of industrialized housing and
466-18   buildings may:
466-19               (1)  require and review, for compliance with mandatory
466-20   construction codes, a complete set of designs, plans, and
466-21   specifications bearing the council's stamp of approval for each
466-22   installation of industrialized housing or buildings in the
466-23   municipality;
466-24               (2)  require that all applicable local permits and
466-25   licenses be obtained before construction begins on a building site;
466-26               (3)  require, in accordance with commissioner rules,
466-27   that all modules or modular components bear an approved decal or
 467-1   insignia indicating inspection at the manufacturing facility; and
 467-2               (4)  establish procedures for the inspection of:
 467-3                     (A)  the erection and installation of
 467-4   industrialized housing or buildings to be located in the
 467-5   municipality, to ensure compliance with mandatory construction
 467-6   codes and commissioner rules; and
 467-7                     (B)  all foundation and other on-site
 467-8   construction, to ensure compliance with approved designs, plans,
 467-9   and specifications.
467-10         (b)  Procedures described by Subsection (a)(4) may require:
467-11               (1)  before occupancy, a final inspection or test in
467-12   accordance with mandatory construction codes; and
467-13               (2)  correction of any deficiency identified by the
467-14   test or discovered in the final inspection.  (V.A.C.S.
467-15   Art. 5221f-1, Sec. 2(d) (part).)
467-16           (Sections 1202.253-1202.300 reserved for expansion)
467-17                   SUBCHAPTER G.  PROHIBITED PRACTICES
467-18                       AND DISCIPLINARY PROCEDURES
467-19         Sec. 1202.301.  PROHIBITED PRACTICES.  (a)  In this section,
467-20   "person" means an individual, partnership, company, corporation,
467-21   association, or other group, however organized.
467-22         (b)  A person may not construct, sell or offer to sell, lease
467-23   or offer to lease, or transport over a street or highway of this
467-24   state any industrialized housing or building, or modular section or
467-25   component of a modular section, in violation of this chapter or a
467-26   rule or order of the commissioner.  (V.A.C.S. Art. 5221f-1, Secs.
467-27   8(a), (e).)
 468-1         Sec. 1202.302.  DENIAL OF CERTIFICATE; DISCIPLINARY ACTION.
 468-2   The commissioner may deny, permanently revoke, or suspend for a
 468-3   definite period and specified location or geographic area a
 468-4   certificate of registration if the commissioner finds that the
 468-5   applicant or registrant:
 468-6               (1)  provided false information on an application or
 468-7   other document filed with the department;
 468-8               (2)  failed to pay a fee or file a report required by
 468-9   the department for the administration or enforcement of this
468-10   chapter;
468-11               (3)  engaged in a false, misleading, or deceptive act
468-12   or practice as described by Subchapter E, Chapter 17, Business &
468-13   Commerce Code; or
468-14               (4)  violated:
468-15                     (A)  this chapter;
468-16                     (B)  a rule adopted or order issued by the
468-17   commissioner under this chapter; or
468-18                     (C)  a decision, action, or interpretation of the
468-19   council.  (V.A.C.S. Art. 5221f-1, Sec. 9(a).)
468-20           (Sections 1202.303-1202.350 reserved for expansion)
468-21                        SUBCHAPTER H.  PENALTIES
468-22         Sec. 1202.351.  CRIMINAL PENALTY. (a)  In this section,
468-23   "person" has the meaning assigned by Section 1202.301.
468-24         (b)  A person commits an offense if the person knowingly and
468-25   wilfully violates this chapter or a published rule or order of the
468-26   commissioner.
468-27         (c)  An offense under this section is a Class A misdemeanor.
 469-1   (V.A.C.S. Art. 5221f-1, Secs. 8(d), (e).)
 469-2         SECTION 3.  ADOPTION OF ENVIRONMENTAL AND INDUSTRIAL TRADES
 469-3   TITLE. The Occupations Code is amended by adding Title 8 to read as
 469-4   follows:
 469-5       TITLE 8.  REGULATION OF ENVIRONMENTAL AND INDUSTRIAL TRADES
 469-6   CHAPTER 1301.  PLUMBERS
 469-7   CHAPTER 1302.  AIR CONDITIONING AND REFRIGERATION CONTRACTORS
 469-8   CHAPTER 1303.  RESIDENTIAL SERVICE COMPANIES
 469-9   CHAPTER 1304.  SERVICE CONTRACT PROVIDERS
469-10                         CHAPTER 1301.  PLUMBERS
469-11                    SUBCHAPTER A.  GENERAL PROVISIONS
469-12   Sec. 1301.001.  SHORT TITLE 
469-13   Sec. 1301.002.  DEFINITIONS 
469-14   Sec. 1301.003.  APPLICATION OF SUNSET ACT 
469-15           (Sections 1301.004-1301.050 reserved for expansion)
469-16                        SUBCHAPTER B.  EXEMPTIONS
469-17   Sec. 1301.051.  PLUMBING BY PROPERTY OWNER IN HOMESTEAD 
469-18   Sec. 1301.052.  WORK INSIDE OR OUTSIDE MUNICIPALITIES 
469-19   Sec. 1301.053.  WORK INCIDENTAL TO OTHER PROFESSIONS 
469-20   Sec. 1301.054.  IRRIGATORS AND WATER WELL PUMP INSTALLERS 
469-21   Sec. 1301.055.  LP GAS INSTALLERS 
469-22   Sec. 1301.056.  LAWN IRRIGATION SYSTEMS 
469-23   Sec. 1301.057.  SELF-HELP PROJECT 
469-24           (Sections 1301.058-1301.150 reserved for expansion)
469-25         SUBCHAPTER C.  TEXAS STATE BOARD OF PLUMBING EXAMINERS
469-26   Sec. 1301.151.  TEXAS STATE BOARD OF PLUMBING EXAMINERS
469-27                     MEMBERSHIP 
 470-1   Sec. 1301.152.  ELIGIBILITY OF PUBLIC MEMBERS 
 470-2   Sec. 1301.153.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS 
 470-3   Sec. 1301.154.  TERMS 
 470-4   Sec. 1301.155.  ISSUANCE OF COMMISSION 
 470-5   Sec. 1301.156.  GROUNDS FOR REMOVAL 
 470-6   Sec. 1301.157.  OFFICERS 
 470-7   Sec. 1301.158.  PER DIEM; REIMBURSEMENT 
 470-8           (Sections 1301.159-1301.200 reserved for expansion)
 470-9                     SUBCHAPTER D.  BOARD PERSONNEL
470-10   Sec. 1301.201.  STAFF 
470-11   Sec. 1301.202.  PLUMBING EXAMINER 
470-12   Sec. 1301.203.  FIELD REPRESENTATIVE; INSPECTIONS 
470-13   Sec. 1301.204.  CAREER LADDER PROGRAM; PERFORMANCE
470-14                     EVALUATIONS 
470-15           (Sections 1301.205-1301.250 reserved for expansion)
470-16                 SUBCHAPTER E.  BOARD POWERS AND DUTIES
470-17   Sec. 1301.251.  GENERAL DUTIES OF BOARD 
470-18   Sec. 1301.252.  RULES RESTRICTING ADVERTISING OR
470-19                     COMPETITIVE BIDDING 
470-20   Sec. 1301.253.  FEES 
470-21   Sec. 1301.254.  SEAL 
470-22   Sec. 1301.255.  ADOPTION OF PLUMBING CODES 
470-23   Sec. 1301.256.  SUBPOENA 
470-24   Sec. 1301.257.  NOTICE OF LICENSE ISSUANCE 
470-25           (Sections 1301.258-1301.300 reserved for expansion)
470-26            SUBCHAPTER F.  CONSUMER INTEREST INFORMATION AND
470-27                          COMPLAINT PROCEDURES
 471-1   Sec. 1301.301.  CONSUMER INTEREST INFORMATION 
 471-2   Sec. 1301.302.  CONTRACT INFORMATION 
 471-3   Sec. 1301.303.  COMPLAINTS 
 471-4           (Sections 1301.304-1301.350 reserved for expansion)
 471-5                   SUBCHAPTER G.  LICENSE REQUIREMENTS
 471-6   Sec. 1301.351.  LICENSE REQUIRED 
 471-7   Sec. 1301.352.  EXAMINATION REQUIRED 
 471-8   Sec. 1301.353.  INSPECTOR CONFLICTS PROHIBITED 
 471-9   Sec. 1301.354.  APPRENTICE ELIGIBILITY FOR EXAMINATION 
471-10   Sec. 1301.355.  EXAMINATION RESULTS 
471-11   Sec. 1301.356.  ENDORSEMENT:  MEDICAL GAS PIPING
471-12                     INSTALLATION 
471-13   Sec. 1301.357.  ENDORSEMENT:  WATER SUPPLY PROTECTION
471-14                     SPECIALIST 
471-15   Sec. 1301.358.  OUT-OF-STATE APPLICANTS 
471-16   Sec. 1301.359.  STATEWIDE VALIDITY OF LICENSE;
471-17                     NONTRANSFERABILITY 
471-18           (Sections 1301.360-1301.400 reserved for expansion)
471-19              SUBCHAPTER H.  LICENSE EXPIRATION AND RENEWAL
471-20   Sec. 1301.401.  ANNUAL RENEWAL REQUIRED 
471-21   Sec. 1301.402.  NOTICE OF LICENSE EXPIRATION 
471-22   Sec. 1301.403.  PROCEDURE FOR RENEWAL 
471-23   Sec. 1301.404.  MANDATORY CONTINUING PROFESSIONAL EDUCATION 
471-24   Sec. 1301.405.  VOLUNTARY CONTINUING EDUCATION 
471-25           (Sections 1301.406-1301.450 reserved for expansion)
471-26                 SUBCHAPTER I.  DISCIPLINARY PROCEDURES
471-27   Sec. 1301.451.  DISCIPLINARY POWERS OF BOARD 
 472-1   Sec. 1301.452.  GROUNDS FOR DISCIPLINARY ACTION 
 472-2   Sec. 1301.453.  HEARING 
 472-3   Sec. 1301.454.  ADMINISTRATIVE PROCEDURE 
 472-4           (Sections 1301.455-1301.500 reserved for expansion)
 472-5        SUBCHAPTER J.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
 472-6   Sec. 1301.501.  BACKFLOW PREVENTION 
 472-7   Sec. 1301.502.  CITATION 
 472-8   Sec. 1301.503.  ENFORCEMENT BY PLUMBING INSPECTOR 
 472-9   Sec. 1301.504.  INJUNCTION 
472-10   Sec. 1301.505.  REPRESENTATION BY ATTORNEY GENERAL 
472-11   Sec. 1301.506.  APPEAL BOND NOT REQUIRED 
472-12   Sec. 1301.507.  CIVIL PENALTY 
472-13   Sec. 1301.508.  CRIMINAL PENALTY 
472-14           (Sections 1301.509-1301.550 reserved for expansion)
472-15       SUBCHAPTER K.  REGULATION BY CERTAIN POLITICAL SUBDIVISIONS
472-16   Sec. 1301.551.  MUNICIPAL PLUMBING ORDINANCES AND PERMITS 
472-17   Sec. 1301.552.  CERTIFICATE OF INSURANCE FOR PLUMBING PERMIT
472-18                     IN POLITICAL SUBDIVISION 
472-19           (Sections 1301.553-1301.600 reserved for expansion)
472-20        SUBCHAPTER L.  CERTIFICATION: RESIDENTIAL WATER TREATMENT
472-21   Sec. 1301.601.  RESIDENTIAL WATER TREATMENT CERTIFICATION 
472-22   Sec. 1301.602.  FEE; CERTIFICATE 
472-23                         CHAPTER 1301.  PLUMBERS
472-24                    SUBCHAPTER A.  GENERAL PROVISIONS
472-25         Sec. 1301.001.  SHORT TITLE. This chapter may be cited as the
472-26   Plumbing License Law.  (V.A.C.S. Art. 6243-101, Sec. 1.)
472-27         Sec. 1301.002.  DEFINITIONS. In this chapter:
 473-1               (1)  "Board" means the Texas State Board of Plumbing
 473-2   Examiners.
 473-3               (2)  "Journeyman plumber" means a person other than a
 473-4   master plumber who:
 473-5                     (A)  installs, changes, repairs, services, or
 473-6   renovates plumbing or supervises any of those activities; and
 473-7                     (B)  has passed the required examination and
 473-8   fulfilled the other requirements of the board.
 473-9               (3)  "Master plumber" means a person who:
473-10                     (A)  is skilled in the planning and
473-11   superintending of plumbing and in the practical installation,
473-12   repair, and servicing of plumbing;
473-13                     (B)  is familiar with the codes, ordinances, or
473-14   rules governing those activities;
473-15                     (C)  performs or supervises plumbing work; and
473-16                     (D)  has passed the required examination and
473-17   fulfilled the other requirements of the board.
473-18               (4)  "Plumber's apprentice" means a person other than a
473-19   master plumber or a journeyman plumber who, as the person's
473-20   principal occupation, learns about and assists in the installation
473-21   of plumbing.
473-22               (5)  "Plumbing" means:
473-23                     (A)  a fixture, appurtenance, appliance, or
473-24   piping, including a disposal system, used in or around a building
473-25   in which a person lives or works or in which persons assemble, to:
473-26                           (i)  supply or recirculate water, other
473-27   liquid, or gas; or
 474-1                           (ii)  eliminate sewage for a personal or
 474-2   domestic purpose;
 474-3                     (B)  a fixture, appurtenance, appliance, or
 474-4   piping used outside a building to connect the building to:
 474-5                           (i)  a supply of water, other liquid, or
 474-6   gas on the premises; or
 474-7                           (ii)  the main in the street or alley or at
 474-8   the curb;
 474-9                     (C)  a fixture, appurtenance, appliance, or
474-10   piping, including a drain or waste pipe, used to carry wastewater
474-11   or sewage from or within a building to:
474-12                           (i)  a sewer service lateral at the curb or
474-13   in the street or alley; or
474-14                           (ii)  a disposal or septic terminal that
474-15   holds private or domestic sewage; or
474-16                     (D)  the installation, repair, service, or
474-17   maintenance of a fixture, appurtenance, appliance, or piping
474-18   described by Paragraph (A), (B), or (C).
474-19               (6)  "Plumbing inspector" means a person who:
474-20                     (A)  is employed by a political subdivision to
474-21   inspect plumbing in connection with health and safety laws; and
474-22                     (B)  has passed the required examination and
474-23   fulfilled the other requirements of the board.
474-24               (7)  "Water supply protection specialist" means a
474-25   person who holds an endorsement issued by the board to engage in
474-26   the inspection, in connection with health and safety laws,
474-27   including ordinances, of:
 475-1                     (A)  the plumbing of a public water system
 475-2   distribution facility; or
 475-3                     (B)  customer-owned plumbing connected to the
 475-4   water distribution lines of a public water system.
 475-5               (8)  "Water treatment" means a business conducted under
 475-6   contract that requires ability, experience, and skill in analyzing
 475-7   water to determine how to treat influent and effluent water to
 475-8   change or purify the water or to add or remove minerals, chemicals,
 475-9   or bacteria.  The term includes:
475-10                     (A)  installing and servicing fixed or portable
475-11   water treatment equipment in a public or private water treatment
475-12   system; or
475-13                     (B)  making connections necessary to install a
475-14   water treatment system. (V.A.C.S. Art. 6243-101, Secs. 2(1), (2),
475-15   (3), (4), (5) (part), (6), (7), (9).)
475-16         Sec. 1301.003.  APPLICATION OF SUNSET ACT. The Texas State
475-17   Board of Plumbing Examiners is subject to Chapter 325, Government
475-18   Code (Texas Sunset Act).  Unless continued in existence as provided
475-19   by that chapter, the board is abolished and this chapter expires
475-20   September 1, 2003.  (V.A.C.S. Art. 6243-101, Sec. 4a.)
475-21           (Sections 1301.004-1301.050 reserved for expansion)
475-22                        SUBCHAPTER B.  EXEMPTIONS
475-23         Sec. 1301.051.  PLUMBING BY PROPERTY OWNER IN HOMESTEAD. A
475-24   property owner is not required to be licensed under this chapter to
475-25   perform plumbing in the property owner's homestead. (V.A.C.S.
475-26   Art. 6243-101, Sec. 3(a) (part).)
475-27         Sec. 1301.052.  WORK INSIDE OR OUTSIDE MUNICIPALITIES. A
 476-1   person is not required to be licensed under this chapter to perform
 476-2   plumbing:
 476-3               (1)  outside a municipality; or
 476-4               (2)  inside a municipality with fewer than 5,000
 476-5   inhabitants, unless an ordinance of the municipality requires the
 476-6   person to be licensed. (V.A.C.S. Art. 6243-101, Sec. 3(a) (part).) 
 476-7         Sec. 1301.053.  WORK INCIDENTAL TO OTHER PROFESSIONS. (a)  A
 476-8   person is not required to be licensed under this chapter to
 476-9   perform:
476-10               (1)  plumbing incidental to and in connection with the
476-11   business in which the person is employed or engaged if the person:
476-12                     (A)  is regularly employed as or acting as a
476-13   maintenance person or maintenance engineer; and
476-14                     (B)  does not engage in plumbing for the public;
476-15               (2)  construction, installation, or maintenance on the
476-16   premises or equipment of a railroad if the person is an employee of
476-17   the railroad who does not engage in plumbing for the public;
476-18               (3)  plumbing if the person is engaged by a public
476-19   service company to:
476-20                     (A)  lay, maintain, or operate its service mains
476-21   or lines to the point of measurement; and
476-22                     (B)  install, change, adjust, repair, remove, or
476-23   renovate appurtenances, equipment, or appliances;
476-24               (4)  appliance installation and service work that
476-25   involves connecting appliances to existing piping if the person
476-26   performs the work as an appliance dealer or an employee of an
476-27   appliance dealer; or
 477-1               (5)  water treatment installations, exchanges,
 477-2   services, or repairs.
 477-3         (b)  Work described by this section is subject to inspection
 477-4   and approval as provided by municipal ordinance. (V.A.C.S.
 477-5   Art. 6243-101, Sec. 3(a) (part).)
 477-6         Sec. 1301.054.  IRRIGATORS AND WATER WELL PUMP INSTALLERS. A
 477-7   person is not required to be licensed under this chapter to perform
 477-8   plumbing if the person holds a:
 477-9               (1)  certificate of registration as an irrigator issued
477-10   under Chapter 1903; or
477-11               (2)  license as a water well pump installer issued
477-12   under Chapter 1902.  (V.A.C.S. Art. 6243-101, Sec. 3(a) (part).)
477-13         Sec. 1301.055.  LP GAS INSTALLERS. A person is not required
477-14   to be licensed under this chapter to perform plumbing if the person
477-15   performs the plumbing as an LP gas installer licensed under
477-16   Subchapter D, Chapter 113, Natural Resources Code.  (V.A.C.S.
477-17   Art. 6243-101, Sec. 3(a) (part).)
477-18         Sec. 1301.056.  LAWN IRRIGATION SYSTEMS. A person licensed by
477-19   the board is not required to be licensed by another board or agency
477-20   to install or work on a lawn irrigation system.  (V.A.C.S.
477-21   Art. 6243-101, Sec. 3(a) (part).)
477-22         Sec. 1301.057.  SELF-HELP PROJECT. (a)  A person is not
477-23   required to be licensed under this chapter to perform plumbing,
477-24   limited to the provision of a residential potable water supply or
477-25   residential sanitary sewer connection, for a project that:
477-26               (1)  is in a county a part of which is within 50 miles
477-27   of an international border; and
 478-1               (2)  is performed by an organization that:
 478-2                     (A)  is certified by the Texas Natural Resource
 478-3   Conservation Commission to provide self-help project assistance;
 478-4   and
 478-5                     (B)  provides the board with the following
 478-6   information before the 30th day before the date the project begins:
 478-7                           (i)  the exact location of the project;
 478-8                           (ii)  the intended duration of the project;
 478-9   and
478-10                           (iii)  other information the board
478-11   requires.
478-12         (b)  The board may require under Subsection (a)(2)(B)(iii)
478-13   that the organization provide a post-construction report signed by
478-14   a plumbing inspector stating that the plumbing is safe.
478-15         (c)  The board may provide training to an organization that
478-16   provides self-help project assistance under this section. (V.A.C.S.
478-17   Art. 6243-101, Secs. 3(a) (part), (c).)
478-18           (Sections 1301.058-1301.150 reserved for expansion)
478-19         SUBCHAPTER C.  TEXAS STATE BOARD OF PLUMBING EXAMINERS
478-20         Sec. 1301.151.  TEXAS STATE BOARD OF PLUMBING EXAMINERS
478-21   MEMBERSHIP. (a)  The Texas State Board of Plumbing Examiners
478-22   consists of nine members appointed by the governor with the advice
478-23   and consent of the senate as follows:
478-24               (1)  one member with at least 10 years' practical
478-25   experience as a master plumber;
478-26               (2)  one member with at least five years' practical
478-27   experience as a journeyman plumber;
 479-1               (3)  one member with at least five years' practical
 479-2   experience as a plumbing inspector;
 479-3               (4)  one member who is a plumbing contractor with at
 479-4   least five years' experience;
 479-5               (5)  one member who is a licensed sanitary engineer;
 479-6               (6)  two members who are building contractors with at
 479-7   least five years' contracting experience, one of whom is
 479-8   principally engaged in home building and one of whom is principally
 479-9   engaged in commercial building; and
479-10               (7)  two members who represent the public.
479-11         (b)  Each member of the board must be a United States
479-12   citizen.
479-13         (c)  Appointments to the board shall be made without regard
479-14   to the race, creed, sex, religion, or national origin of the
479-15   appointee.  (V.A.C.S. Art. 6243-101, Sec. 4(a) (part).)
479-16         Sec. 1301.152.  ELIGIBILITY OF PUBLIC MEMBERS. A person is
479-17   not eligible for appointment as a public member of the board if the
479-18   person or the person's spouse:
479-19               (1)  is licensed by an occupational regulatory agency
479-20   in the building construction industry;
479-21               (2)  is employed by or participates in the management
479-22   of an agency or business entity related to the building
479-23   construction industry; or
479-24               (3)  has, other than as a consumer, a financial
479-25   interest in a business entity related to the building construction
479-26   industry. (V.A.C.S. Art. 6243-101, Sec. 4(a) (part).)
479-27         Sec. 1301.153.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)  A
 480-1   member or employee of the board may not be:
 480-2               (1)  an officer, employee, or paid consultant of a
 480-3   trade association in the building construction industry; or
 480-4               (2)  related within the second degree by consanguinity
 480-5   or affinity, as determined under Chapter 573, Government Code, to a
 480-6   person who is an officer, employee, or paid consultant of a trade
 480-7   association in the regulated industry.
 480-8         (b)  A person may not serve as a member of the board or act
 480-9   as the general counsel to the board if the person is required to
480-10   register as a lobbyist under Chapter 305, Government Code.
480-11   (V.A.C.S. Art. 6243-101, Sec. 4(b).)
480-12         Sec. 1301.154.  TERMS. Board members serve staggered six-year
480-13   terms.  (V.A.C.S. Art. 6243-101, Sec. 4(a) (part).)
480-14         Sec. 1301.155.  ISSUANCE OF COMMISSION. On presentation of
480-15   the constitutional oath of office and a certificate of appointment,
480-16   the secretary of state shall issue a commission to a board member
480-17   as evidence of the person's authority to act as a board member.
480-18   (V.A.C.S. Art. 6243-101, Sec. 6 (part).)
480-19         Sec. 1301.156.  GROUNDS FOR REMOVAL. (a)  It is a ground for
480-20   removal from the board that a member:
480-21               (1)  does not have at the time of appointment the
480-22   qualifications required by Section 1301.151 or 1301.152;
480-23               (2)  does not maintain during service on the board the
480-24   qualifications required by Section 1301.151 or 1301.152;
480-25               (3)  violates a prohibition prescribed by Section
480-26   1301.153; or
480-27               (4)  fails to attend at least half of the regularly
 481-1   scheduled board meetings that the member is eligible to attend
 481-2   during a calendar year.
 481-3         (b)  The validity of an action of the board is not affected
 481-4   by the fact that it is taken when a ground for removal of a board
 481-5   member exists.  (V.A.C.S. Art. 6243-101, Secs. 4(c), (d).)
 481-6         Sec. 1301.157.  OFFICERS. The board shall elect a presiding
 481-7   officer and a secretary from its membership. (V.A.C.S.
 481-8   Art. 6243-101, Sec. 5(a) (part).)
 481-9         Sec. 1301.158.  PER DIEM; REIMBURSEMENT. (a)  A board member
481-10   may not receive a fixed salary for service on the board.
481-11         (b)  A board member is entitled to receive a per diem as set
481-12   by the General Appropriations Act for each day the member engages
481-13   in the business of the board.
481-14         (c)  A board member may not receive reimbursement for travel
481-15   expenses, including expenses for meals and lodging, other than
481-16   transportation expenses.  A member is entitled to reimbursement for
481-17   transportation expenses as provided by the General Appropriations
481-18   Act.  (V.A.C.S. Art. 6243-101, Sec. 6 (part).)
481-19           (Sections 1301.159-1301.200 reserved for expansion)
481-20                     SUBCHAPTER D.  BOARD PERSONNEL
481-21         Sec. 1301.201.  STAFF. The board may employ personnel as
481-22   necessary to administer this chapter.  The board may determine the
481-23   compensation and duties of its employees and the terms of their
481-24   employment. (V.A.C.S. Art. 6243-101, Sec. 5(a) (part).)
481-25         Sec. 1301.202.  PLUMBING EXAMINER. (a)  The board shall
481-26   employ one or more plumbing examiners.  A plumbing examiner serves
481-27   at the will of the board.
 482-1         (b)  A plumbing examiner shall:
 482-2               (1)  examine the fitness and qualifications of a person
 482-3   applying to the board:
 482-4                     (A)  for a license as a master plumber or
 482-5   journeyman plumber; or
 482-6                     (B)  to serve as a plumbing inspector; and
 482-7               (2)  promptly certify the result of the examination to
 482-8   the board. (V.A.C.S. Art. 6243-101, Sec. 5(a) (part).)
 482-9         Sec. 1301.203.  FIELD REPRESENTATIVE; INSPECTIONS. (a)  The
482-10   board may employ a field representative to assist the board in
482-11   enforcing this chapter and rules adopted under this chapter.  A
482-12   field representative must be:
482-13               (1)  knowledgeable of this chapter and municipal
482-14   ordinances relating to plumbing; and
482-15               (2)  qualified by experience and training in plumbing
482-16   practice.
482-17         (b)  A field representative may:
482-18               (1)  conduct on-site license checks to determine
482-19   compliance with this chapter;
482-20               (2)  investigate consumer complaints filed under
482-21   Section 1301.303;
482-22               (3)  assist municipal plumbing inspectors in enforcing
482-23   this chapter; and
482-24               (4)  issue citations as provided by Section 1301.502.
482-25   (V.A.C.S. Art. 6243-101, Sec. 8B, as added Acts 70th Leg., R.S.,
482-26   Ch. 670.)
482-27         Sec. 1301.204.  CAREER LADDER PROGRAM; PERFORMANCE
 483-1   EVALUATIONS. (a)  The presiding officer of the board or the
 483-2   presiding officer's designee shall develop an intra-agency career
 483-3   ladder program.  The program must require intra-agency posting of
 483-4   each nonentry level position at least 10 days before the date of
 483-5   any public posting.
 483-6         (b)  The presiding officer of the board or the presiding
 483-7   officer's designee shall develop a system of annual performance
 483-8   evaluations based on measurable job tasks.  All merit pay for board
 483-9   employees must be based on the system established under this
483-10   subsection.  (V.A.C.S. Art. 6243-101, Sec. 5A.)
483-11           (Sections 1301.205-1301.250 reserved for expansion)
483-12                 SUBCHAPTER E.  BOARD POWERS AND DUTIES
483-13         Sec. 1301.251.  GENERAL DUTIES OF BOARD. The board shall:
483-14               (1)  administer this chapter;
483-15               (2)  adopt and enforce rules necessary to administer
483-16   this chapter; and
483-17               (3)  keep a record of each proceeding conducted before
483-18   and action taken by the board.  (V.A.C.S. Art. 6243-101, Sec. 5(a)
483-19   (part).)
483-20         Sec. 1301.252.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
483-21   BIDDING. (a)  The board may not adopt a rule restricting
483-22   advertising or competitive bidding by a person licensed under this
483-23   chapter except to prohibit false, misleading, or deceptive
483-24   practices by the person.
483-25         (b)  The board may not include in its rules to prohibit
483-26   false, misleading, or deceptive practices a rule that:
483-27               (1)  restricts the person's use of any medium for
 484-1   advertising;
 484-2               (2)  restricts the person's personal appearance or use
 484-3   of the person's voice in an advertisement;
 484-4               (3)  relates to the size or duration of an
 484-5   advertisement by the person; or
 484-6               (4)  restricts the person's advertisement under a trade
 484-7   name.  (V.A.C.S. Art. 6243-101, Sec. 5(b).)
 484-8         Sec. 1301.253.  FEES. The board shall set fees in amounts
 484-9   that are reasonable and necessary to cover the cost of
484-10   administering this chapter.  (V.A.C.S. Art. 6243-101, Sec. 13(a).) 
484-11         Sec. 1301.254.  SEAL. The board shall have an official seal.
484-12   (V.A.C.S. Art. 6243-101, Sec. 5(a) (part).)
484-13         Sec. 1301.255.  ADOPTION OF PLUMBING CODES. (a)  The board
484-14   shall adopt:
484-15               (1)  the Southern Standard Plumbing Code;
484-16               (2)  the Uniform Plumbing Code; and
484-17               (3)  the National Standard Plumbing Code.
484-18         (b)  A municipality or an owner of a public water system may
484-19   adopt standards for the design, installation, and maintenance of a
484-20   plumbing system only if those standards do not substantially vary
484-21   from board rules or other rules of this state. (V.A.C.S.
484-22   Art. 6243-101, Sec. 5B.)
484-23         Sec. 1301.256.  SUBPOENA. (a)  The board may request and, if
484-24   necessary, compel by subpoena:
484-25               (1)  the attendance of a witness for examination under
484-26   oath; and
484-27               (2)  the production for inspection and copying of
 485-1   records, documents, and other evidence relevant to the
 485-2   investigation of an alleged violation of this chapter.
 485-3         (b)  The board, acting through the attorney general, may
 485-4   bring an action to enforce a subpoena issued under Subsection (a)
 485-5   against a person who fails to comply with the subpoena.
 485-6         (c)  Venue for an action brought under Subsection (b) is in a
 485-7   district court in:
 485-8               (1)  Travis County; or
 485-9               (2)  any county in which the board may hold a hearing.
485-10         (d)  The court shall order compliance with the subpoena if
485-11   the court finds that good cause exists to issue the subpoena.
485-12   (V.A.C.S. Art. 6243-101, Sec. 8A(f) (part).)
485-13         Sec. 1301.257.  NOTICE OF LICENSE ISSUANCE. The board shall
485-14   forward the name and address of each person in a municipality who
485-15   receives a license under this chapter to the authority that
485-16   enforces regulations relating to plumbing in the municipality.
485-17   (V.A.C.S. Art. 6243-101, Sec. 12(a) (part).)
485-18           (Sections 1301.258-1301.300 reserved for expansion)
485-19            SUBCHAPTER F.  CONSUMER INTEREST INFORMATION AND
485-20                          COMPLAINT PROCEDURES
485-21         Sec. 1301.301.  CONSUMER INTEREST INFORMATION. (a)  The board
485-22   shall prepare information of consumer interest describing the
485-23   regulatory functions of the board and the procedures by which
485-24   consumer complaints are filed with and resolved by the board.
485-25         (b)  The board shall make the information available to the
485-26   public and appropriate state agencies.  (V.A.C.S. Art. 6243-101,
485-27   Sec. 8A(d).)
 486-1         Sec. 1301.302.  CONTRACT INFORMATION. A written contract for
 486-2   the services of a plumber licensed under this chapter must contain
 486-3   the name, mailing address, and telephone number of the board.
 486-4   (V.A.C.S. Art. 6243-101, Sec. 8A(e).)
 486-5         Sec. 1301.303.  COMPLAINTS. (a)  The board may investigate an
 486-6   alleged violation of this chapter by a person who:
 486-7               (1)  is licensed under this chapter; or
 486-8               (2)  performs plumbing without holding a license under
 486-9   this chapter.
486-10         (b)  The board shall keep an information file about each
486-11   complaint filed with the board relating to a person licensed under
486-12   this chapter.
486-13         (c)  If a written complaint is filed with the board relating
486-14   to a person licensed under this chapter, the board, at least
486-15   quarterly and until final disposition of the complaint, shall
486-16   notify the parties to the complaint of the status of the complaint
486-17   unless the notice would jeopardize an undercover investigation.
486-18   (V.A.C.S. Art. 6243-101, Secs. 8A(a), (b), (c).)
486-19           (Sections 1301.304-1301.350 reserved for expansion)
486-20                   SUBCHAPTER G.  LICENSE REQUIREMENTS
486-21         Sec. 1301.351.  LICENSE REQUIRED. (a)  A person may not
486-22   engage in the business of plumbing unless:
486-23               (1)  the person is licensed under this chapter; or
486-24               (2)  the person's work is supervised and controlled by
486-25   a person licensed under this chapter.
486-26         (b)  A person may not serve as a plumbing inspector unless
486-27   the person is licensed under this chapter as a plumbing inspector. 
 487-1   (V.A.C.S. Art. 6243-101, Sec. 14(a) (part).)
 487-2         Sec. 1301.352.  EXAMINATION REQUIRED. The board shall issue a
 487-3   license as a master plumber, journeyman plumber, or plumbing
 487-4   inspector to a person who demonstrates the fitness, competence, and
 487-5   qualifications to receive the license by passing a uniform,
 487-6   reasonable examination. (V.A.C.S. Art. 6243-101, Sec. 8(a).)
 487-7         Sec. 1301.353.  INSPECTOR CONFLICTS PROHIBITED. The board may
 487-8   not issue a plumbing inspector license to a person who has a
 487-9   financial or advisory interest in a plumbing company. (V.A.C.S.
487-10   Art. 6243-101, Sec. 2(5) (part).)
487-11         Sec. 1301.354.  APPRENTICE ELIGIBILITY FOR EXAMINATION. A
487-12   person who has worked as a plumber's apprentice for a period
487-13   established by board rule may apply for and take an examination for
487-14   a license as a journeyman plumber.  (V.A.C.S. Art. 6243-101, Sec.
487-15   11.)
487-16         Sec. 1301.355.  EXAMINATION RESULTS. (a)  The board shall
487-17   notify each examinee of the results of an examination not later
487-18   than the 30th day after the date the examination is administered.
487-19         (b)  If requested in writing by a person who fails an
487-20   examination, the board shall provide to the person an analysis of
487-21   the person's performance on the examination. (V.A.C.S.
487-22   Art. 6243-101, Secs. 8(b), (c).)
487-23         Sec. 1301.356.  ENDORSEMENT:  MEDICAL GAS PIPING
487-24   INSTALLATION. (a)  A person may not install pipe used solely to
487-25   transport gas for medical purposes unless the person:
487-26               (1)  is licensed under this chapter as a master plumber
487-27   or journeyman plumber; and
 488-1               (2)  holds an endorsement issued under this section.
 488-2         (b)  A person is eligible to receive a medical gas piping
 488-3   installation endorsement if the person performs satisfactorily on a
 488-4   separate examination related to the endorsement.
 488-5         (c)  An endorsement under this section is valid for three
 488-6   years and may be renewed on or before February 1 or on another date
 488-7   that the board may set as it does under Section 1301.401 for a
 488-8   license.  A person may renew an endorsement in the same manner that
 488-9   a license is renewed under Subchapter H.
488-10         (d)  An endorsement under this section coincides with rules
488-11   adopted by the Texas Department of Health.  (V.A.C.S.
488-12   Art. 6243-101, Secs. 8C, 14(b).)
488-13         Sec. 1301.357.  ENDORSEMENT:  WATER SUPPLY PROTECTION
488-14   SPECIALIST. (a)  A person licensed under this chapter may not act
488-15   as a water supply protection specialist unless the person holds an
488-16   endorsement issued under this section.
488-17         (b)  The board shall issue an endorsement as a water supply
488-18   protection specialist to a person who:
488-19               (1)  is licensed under this chapter as a master plumber
488-20   or journeyman plumber;
488-21               (2)  applies to the board on a form prescribed by the
488-22   board;
488-23               (3)  pays a fee set by the board;
488-24               (4)  presents evidence satisfactory to the board of
488-25   successful completion of a certification program approved by the
488-26   board for water supply protection specialists; and
488-27               (5)  passes an examination required by the board.
 489-1         (c)  An endorsement issued under this section is valid until
 489-2   the third anniversary of the date of issuance and may be renewed on
 489-3   compliance with any requirements prescribed by board rule.
 489-4         (d)  A person who holds an endorsement under this section may
 489-5   represent to the public that the person is a water supply
 489-6   protection specialist.
 489-7         (e)  A person is not required to hold a water supply
 489-8   protection specialist endorsement if the person:
 489-9               (1)  is employed by:
489-10                     (A)  a political subdivision; or
489-11                     (B)  an electric utility as defined by Section
489-12   31.002, Utilities Code; and
489-13               (2)  acts as a backflow prevention device specialist or
489-14   water supply protection specialist in the course of the person's
489-15   employment. (V.A.C.S. Art. 6243-101, Secs. 11A, 11B, 11C, 14(a)
489-16   (part).)
489-17         Sec. 1301.358.  OUT-OF-STATE APPLICANTS. The board may waive
489-18   any license requirement under this chapter for an applicant who
489-19   holds a license issued by another state that has licensing
489-20   requirements substantially equivalent to the requirements of this
489-21   state.  (V.A.C.S. Art. 6243-101, Sec. 8(d).)
489-22         Sec. 1301.359.  STATEWIDE VALIDITY OF LICENSE;
489-23   NONTRANSFERABILITY. (a)  A license issued under this chapter is
489-24   valid throughout this state.
489-25         (b)  A license issued under this chapter is not assignable or
489-26   transferable. (V.A.C.S. Art. 6243-101, Sec. 12(a) (part).)
489-27           (Sections 1301.360-1301.400 reserved for expansion)
 490-1              SUBCHAPTER H.  LICENSE EXPIRATION AND RENEWAL
 490-2         Sec. 1301.401.  ANNUAL RENEWAL REQUIRED. (a)  A license under
 490-3   this chapter is valid for one year.  On payment of the required
 490-4   fee, a license may be renewed on or before February 1 or as
 490-5   provided by this section.
 490-6         (b)  The board by rule may adopt a system under which
 490-7   licenses expire on various dates during the year.
 490-8         (c)  For the year in which the license expiration date is
 490-9   changed, renewal fees payable on February 1 shall be prorated on a
490-10   monthly basis so that each license holder pays only that portion of
490-11   the fee that is allocable to the number of months during which the
490-12   license is valid.  On renewal of the license on the new expiration
490-13   date, the total renewal fee is payable.  (V.A.C.S. Art. 6243-101,
490-14   Secs. 12(a) (part), 12A.)
490-15         Sec. 1301.402.  NOTICE OF LICENSE EXPIRATION. Not later than
490-16   the 31st day before the expiration date of a person's license, the
490-17   board shall send written notice of the impending license expiration
490-18   to the person at the person's last known address according to board
490-19   records.  (V.A.C.S. Art. 6243-101, Sec. 12(f).)
490-20         Sec. 1301.403.  PROCEDURE FOR RENEWAL. (a)  A person may
490-21   renew an unexpired license by paying the required renewal fee to
490-22   the board before the expiration date of the license.
490-23         (b)  A person whose license has been expired for 90 days or
490-24   less may renew the license by paying to the board the required
490-25   renewal fee and a fee equal to half of the examination fee for the
490-26   license.
490-27         (c)  A person whose license has been expired for more than 90
 491-1   days but less than two years may renew the license by paying to the
 491-2   board all unpaid renewal fees and a fee that is equal to the
 491-3   examination fee for the license.
 491-4         (d)  A person whose license has been expired for two years or
 491-5   more may not renew the license.  The person may obtain a new
 491-6   license by submitting to reexamination and complying with the
 491-7   requirements and procedures for obtaining an original license.
 491-8   (V.A.C.S. Art. 6243-101, Secs. 12(b) (part), (c) (part), (d)
 491-9   (part), (e).)
491-10         Sec. 1301.404.  MANDATORY CONTINUING PROFESSIONAL EDUCATION.
491-11   (a)  A person licensed under this chapter must complete at least
491-12   six hours of continuing professional education each license year to
491-13   renew the person's license.  Three of the six hours must be in the
491-14   subjects of health protection, energy conservation, and water
491-15   conservation.
491-16         (b)  The board by rule shall adopt the criteria for the
491-17   continuing professional education.
491-18         (c)  A person may receive credit for participating in a
491-19   continuing professional education program or course only if the
491-20   program or course is provided:
491-21               (1)  by an individual, business, or association
491-22   approved by the board; and
491-23               (2)  according to criteria adopted by the board.
491-24         (d)  A person may complete the continuing professional
491-25   education requirement of this section through a correspondence
491-26   course if the person lives in a county in which there is not a
491-27   municipality with a population of more than 100,000.
 492-1         (e)  The board by rule may exempt certain persons from the
 492-2   requirements of this section if the board determines that the
 492-3   exemption is in the public interest.  (V.A.C.S. Art. 6243-101,
 492-4   Secs. 12(b) (part), 12(c) (part), 12(d) (part), 12B.)
 492-5         Sec. 1301.405.  VOLUNTARY CONTINUING EDUCATION. The board may
 492-6   recognize, prepare, or implement continuing education programs for
 492-7   persons licensed under this chapter.  Participation in the programs
 492-8   is voluntary. (V.A.C.S. Art. 6243-101, Sec. 5(d).)
 492-9           (Sections 1301.406-1301.450 reserved for expansion)
492-10                 SUBCHAPTER I.  DISCIPLINARY PROCEDURES
492-11         Sec. 1301.451.  DISCIPLINARY POWERS OF BOARD. (a)  On
492-12   determining that a person licensed under this chapter engaged in
492-13   conduct for which the person is subject to disciplinary action
492-14   under Section 1301.452, the board shall:
492-15               (1)  revoke or suspend the person's license;
492-16               (2)  probate suspension of the person's license; or
492-17               (3)  reprimand the person.
492-18         (b)  A person whose license has been revoked may not apply
492-19   for a new license before the first anniversary of the date of
492-20   revocation.  (V.A.C.S. Art. 6243-101, Sec. 9(a) (part).)
492-21         Sec. 1301.452.  GROUNDS FOR DISCIPLINARY ACTION. (a)  A
492-22   person is subject to disciplinary action under Section 1301.451 if
492-23   the person violates this chapter or a board rule.  A violation of
492-24   this chapter includes:
492-25               (1)  obtaining a license through error or fraud;
492-26               (2)  wilfully, negligently, or arbitrarily violating a
492-27   municipal rule or ordinance that regulates sanitation, drainage, or
 493-1   plumbing;
 493-2               (3)  knowingly making a substantial misrepresentation
 493-3   of services provided or to be provided; or
 493-4               (4)  making a false promise with the intent to induce a
 493-5   person to contract for a service.
 493-6         (b)  Retesting procedures may be used to determine whether
 493-7   grounds exist for suspension or revocation of a license due to
 493-8   incompetence or a wilful violation by a person licensed under this
 493-9   chapter. (V.A.C.S. Art. 6243-101, Secs. 9(a) (part), (c) (part).)
493-10         Sec. 1301.453.  HEARING. A person is entitled to a hearing
493-11   before the board if the board proposes to:
493-12               (1)  deny the person's application for a license; or
493-13               (2)  suspend or revoke the person's license.  (V.A.C.S.
493-14   Art. 6243-101, Sec. 9(c) (part).)
493-15         Sec. 1301.454.  ADMINISTRATIVE PROCEDURE. A proceeding under
493-16   this subchapter is a contested case for purposes of Chapter 2001,
493-17   Government Code.  (V.A.C.S. Art. 6243-101, Sec. 9(d).)
493-18           (Sections 1301.455-1301.500 reserved for expansion)
493-19        SUBCHAPTER J.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
493-20         Sec. 1301.501.  BACKFLOW PREVENTION. (a)  A person may not
493-21   sell, donate, or transfer a water closet plumbing fixture or other
493-22   equipment that uses water if the fixture or equipment:
493-23               (1)  does not comply with a state-approved plumbing
493-24   code; and
493-25               (2)  may permit the backflow of a nonpotable substance
493-26   into a potable water supply.
493-27         (b)  The board shall adopt rules under this section that
 494-1   include a list describing the types of plumbing to which this
 494-2   section applies.  (V.A.C.S. Art. 6243-101, Sec. 14(f).)
 494-3         Sec. 1301.502.  CITATION. A field representative, water
 494-4   district plumbing inspector, or, within the jurisdiction of the
 494-5   municipality, municipal plumbing inspector may issue a citation to
 494-6   a person who engages in conduct described by Section 1301.508.
 494-7   (V.A.C.S. Art. 6243-101, Sec. 14(e).)
 494-8         Sec. 1301.503.  ENFORCEMENT BY PLUMBING INSPECTOR. A plumbing
 494-9   inspector may enforce this chapter.  (V.A.C.S. Art. 6243-101, Sec.
494-10   8B, as added Acts 70th Leg., R.S., Ch. 857.)
494-11         Sec. 1301.504.  INJUNCTION. (a)  In addition to any other
494-12   action authorized by law, the board may bring an action in the
494-13   board's name to enjoin a person from violating this chapter or a
494-14   board rule.
494-15         (b)  To sustain an action under this section, the board is
494-16   not required to allege or prove that:
494-17               (1)  an adequate remedy at law does not exist; or
494-18               (2)  substantial or irreparable damage would result
494-19   from the continued violation.
494-20         (c)  Any party to an action under this section may appeal.
494-21   (V.A.C.S. Art. 6243-101, Sec. 14(d) (part).)
494-22         Sec. 1301.505.  REPRESENTATION BY ATTORNEY GENERAL. The
494-23   attorney general shall represent the board in an action to enforce
494-24   this chapter.  (V.A.C.S. Art. 6243-101, Sec. 14(d) (part).)
494-25         Sec. 1301.506.  APPEAL BOND NOT REQUIRED. The board is not
494-26   required to post an appeal bond in an action arising under this
494-27   chapter.  (V.A.C.S. Art. 6243-101, Sec. 14(d) (part).)
 495-1         Sec. 1301.507.  CIVIL PENALTY. A person who violates this
 495-2   chapter or a rule, permit, or order of the board is subject to a
 495-3   civil penalty of not less than $50 or more than $1,000 for each act
 495-4   of violation and for each day of violation after notice is provided
 495-5   to the person.  (V.A.C.S. Art. 6243-101, Sec. 9(b).)
 495-6         Sec. 1301.508.  CRIMINAL PENALTY. (a)  A person commits an
 495-7   offense if the person:
 495-8               (1)  knowingly violates this chapter or a rule adopted
 495-9   under this chapter;
495-10               (2)  is not licensed under this chapter and engages in
495-11   an activity for which a license is required; or
495-12               (3)  employs an unlicensed person to engage in an
495-13   activity for which a license is required under this chapter.
495-14         (b)  An offense under this section is a Class C misdemeanor.
495-15   (V.A.C.S. Art. 6243-101, Secs. 9(e), 14(c).)
495-16           (Sections 1301.509-1301.550 reserved for expansion)
495-17       SUBCHAPTER K.  REGULATION BY CERTAIN POLITICAL SUBDIVISIONS
495-18         Sec. 1301.551.  MUNICIPAL PLUMBING ORDINANCES AND PERMITS.
495-19   (a)  A municipality with more than 5,000 inhabitants shall regulate
495-20   by ordinance or bylaw the material, construction, alteration, and
495-21   inspection of any pipe, faucet, tank, valve, or other fixture by or
495-22   through which a supply of water, gas, or sewage is used or carried.
495-23         (b)  Any other municipality may regulate by ordinance or
495-24   bylaw the matters described by Subsection (a).
495-25         (c)  A municipality that adopts an ordinance under this
495-26   section shall provide by ordinance that a person must obtain a
495-27   permit before the person performs plumbing, other than the
 496-1   repairing of leaks.  The municipality may prescribe the terms on
 496-2   which the permit is issued.  (V.A.C.S. Art. 6243-101, Sec. 15(a).) 
 496-3         Sec. 1301.552.  CERTIFICATE OF INSURANCE FOR PLUMBING PERMIT
 496-4   IN POLITICAL SUBDIVISION. A political subdivision that requires a
 496-5   master plumber to have a bond before issuing a permit to the master
 496-6   plumber shall accept either a bond or a certificate of insurance.
 496-7   The certificate of insurance must:
 496-8               (1)  be written by a company licensed to do business in
 496-9   this state;
496-10               (2)  provide for commercial general liability insurance
496-11   for the master plumber for a claim for property damage or bodily
496-12   injury, regardless of whether the claim arises from negligence or
496-13   on a contract; and
496-14               (3)  provide coverage of not less than $300,000 for all
496-15   claims arising in a one-year period.  (V.A.C.S. Art. 6243-101,
496-16   Secs. 15(b), (c).)
496-17           (Sections 1301.553-1301.600 reserved for expansion)
496-18       SUBCHAPTER L.  CERTIFICATION:  RESIDENTIAL WATER TREATMENT
496-19         Sec. 1301.601.  RESIDENTIAL WATER TREATMENT CERTIFICATION.
496-20   (a)  The commissioner of public health or the commissioner's
496-21   designee shall certify a person as qualified to install, exchange,
496-22   service, and repair residential water treatment facilities.
496-23         (b)  The Texas Board of Health shall set standards for
496-24   certification under this section.  The standards must ensure the
496-25   public health and protect the public from unqualified persons
496-26   engaging in activities relating to water treatment.
496-27         (c)  The Texas Board of Health shall adopt rules establishing
 497-1   classes of certificates, the duration of certificates, and fees.
 497-2         (d)  This subchapter does not require a person licensed under
 497-3   this chapter to be certified under this subchapter.  (V.A.C.S.
 497-4   Art. 6243-101, Secs. 3A(a), (b) (part).)
 497-5         Sec. 1301.602.  FEE; CERTIFICATE. (a)  A person who applies
 497-6   for or renews a certificate under this subchapter must pay an
 497-7   annual fee of $10.
 497-8         (b)  On receipt of the required fee, the Texas Department of
 497-9   Health shall issue to a qualified person a certificate stating that
497-10   the person is qualified to install, exchange, service, and repair
497-11   residential water treatment facilities.  (V.A.C.S. Art. 6243-101,
497-12   Sec. 3A(b) (part).)
497-13      CHAPTER 1302.  AIR CONDITIONING AND REFRIGERATION CONTRACTORS
497-14                    SUBCHAPTER A.  GENERAL PROVISIONS
497-15   Sec. 1302.001.  SHORT TITLE 
497-16   Sec. 1302.002.  DEFINITIONS 
497-17           (Sections 1302.003-1302.050 reserved for expansion)
497-18                        SUBCHAPTER B.  EXEMPTIONS
497-19   Sec. 1302.051.  LIMITATION ON EXEMPTIONS 
497-20   Sec. 1302.052.  APPLICATION OF MUNICIPAL ORDINANCES 
497-21   Sec. 1302.053.  HOMEOWNERS 
497-22   Sec. 1302.054.  CERTAIN MAINTENANCE PERSONNEL 
497-23   Sec. 1302.055.  CERTAIN UTILITIES PERSONNEL 
497-24   Sec. 1302.056.  ENGINEERS 
497-25   Sec. 1302.057.  INDUSTRIAL OPERATION PERSONNEL 
497-26   Sec. 1302.058.  CERTAIN PRODUCTS OR EQUIPMENT 
497-27   Sec. 1302.059.  MOTOR VEHICLES 
 498-1   Sec. 1302.060.  VENT HOODS 
 498-2   Sec. 1302.061.  MANUFACTURED HOMES 
 498-3   Sec. 1302.062.  NO LICENSE REQUIRED FOR CERTAIN ASSISTANTS 
 498-4   Sec. 1302.063.  NO EXEMPTION FOR CERTAIN PERSONS LICENSED
 498-5                     UNDER OTHER LAW 
 498-6           (Sections 1302.064-1302.100 reserved for expansion)
 498-7      SUBCHAPTER C.  COMMISSIONER AND DEPARTMENT POWERS AND DUTIES
 498-8   Sec. 1302.101.  GENERAL POWERS AND DUTIES OF COMMISSIONER 
 498-9   Sec. 1302.102.  INSURANCE REQUIREMENTS 
498-10   Sec. 1302.103.  RULES REGARDING USE AND DISPLAY OF LICENSE 
498-11   Sec. 1302.104.  CONTRACTS FOR ENFORCEMENT 
498-12   Sec. 1302.105.  PERSONNEL; EXAMINERS 
498-13   Sec. 1302.106.  DIRECTORY OF LICENSE HOLDERS 
498-14   Sec. 1302.107.  CONTINUING EDUCATION 
498-15           (Sections 1302.108-1302.150 reserved for expansion)
498-16       SUBCHAPTER D.  CONSUMER INTEREST INFORMATION AND COMPLAINTS
498-17   Sec. 1302.151.  CONSUMER INTEREST INFORMATION 
498-18   Sec. 1302.152.  COMPLAINT INVESTIGATION 
498-19           (Sections 1302.153-1302.200 reserved for expansion)
498-20            SUBCHAPTER E.  AIR CONDITIONING AND REFRIGERATION
498-21                       CONTRACTORS ADVISORY BOARD
498-22   Sec. 1302.201.  ADVISORY BOARD MEMBERSHIP 
498-23   Sec. 1302.202.  APPOINTED MEMBERS 
498-24   Sec. 1302.203.  EX OFFICIO MEMBERS 
498-25   Sec. 1302.204.  ADVISORY BOARD DUTIES 
498-26   Sec. 1302.205.  TERMS; VACANCY 
498-27   Sec. 1302.206.  PRESIDING OFFICER 
 499-1   Sec. 1302.207.  COMPENSATION; REIMBURSEMENT 
 499-2   Sec. 1302.208.  MEETINGS 
 499-3   Sec. 1302.209.  VOTE REQUIRED FOR ACTION 
 499-4           (Sections 1302.210-1302.250 reserved for expansion)
 499-5                   SUBCHAPTER F.  LICENSE REQUIREMENTS
 499-6   Sec. 1302.251.  LICENSE REQUIRED 
 499-7   Sec. 1302.252.  REQUIREMENT FOR AIR CONDITIONING AND
 499-8                     REFRIGERATION CONTRACTING COMPANY 
 499-9   Sec. 1302.253.  LICENSE CLASSIFICATIONS 
499-10   Sec. 1302.254.  LICENSE ENDORSEMENTS 
499-11   Sec. 1302.255.  ELIGIBILITY REQUIREMENTS 
499-12   Sec. 1302.256.  APPLICATION; FEE 
499-13   Sec. 1302.257.  EXAMINATIONS 
499-14   Sec. 1302.258.  EXAMINATION RESULTS; REEXAMINATION 
499-15   Sec. 1302.259.  WAIVER OF LICENSE REQUIREMENT 
499-16   Sec. 1302.260.  ISSUANCE AND TERM OF LICENSE 
499-17   Sec. 1302.261.  TEMPORARY LICENSE 
499-18   Sec. 1302.262.  NOTICE TO MUNICIPALITIES 
499-19   Sec. 1302.263.  LIMITATION ON LICENSE HOLDER 
499-20           (Sections 1302.264-1302.300 reserved for expansion)
499-21            SUBCHAPTER G.  MUNICIPAL LICENSING AND REGULATION
499-22   Sec. 1302.301.  MUNICIPAL LICENSE 
499-23   Sec. 1302.302.  MUNICIPAL LICENSE:  ELIGIBILITY
499-24                     REQUIREMENTS 
499-25   Sec. 1302.303.  MUNICIPAL AIR CONDITIONING AND
499-26                     REFRIGERATION STANDARDS 
499-27           (Sections 1302.304-1302.350 reserved for expansion)
 500-1               SUBCHAPTER H.  SALE AND USE OF REFRIGERANTS
 500-2   Sec. 1302.351.  APPLICATION OF SUBCHAPTER 
 500-3   Sec. 1302.352.  COMPLIANCE WITH FEDERAL REQUIREMENTS 
 500-4   Sec. 1302.353.  PURCHASE OF REFRIGERANT:  LICENSE OR
 500-5                     REGISTRATION REQUIRED 
 500-6   Sec. 1302.354.  REGISTRATION 
 500-7   Sec. 1302.355.  PURCHASE OF REFRIGERANT:  EVIDENCE
 500-8                     REQUIREMENT 
 500-9   Sec. 1302.356.  SALE OR USE OF CERTAIN REFRIGERANTS
500-10                     PROHIBITED 
500-11           (Sections 1302.357-1302.400 reserved for expansion)
500-12            SUBCHAPTER I.  DISCIPLINARY ACTION AND PROCEDURES
500-13   Sec. 1302.401.  DISCIPLINARY ACTION 
500-14   Sec. 1302.402.  ADMINISTRATIVE PROCEDURES 
500-15           (Sections 1302.403-1302.450 reserved for expansion)
500-16           SUBCHAPTER J.  PENALTIES AND ENFORCEMENT PROVISIONS
500-17   Sec. 1302.451.  EMERGENCY AND CEASE AND DESIST ORDERS 
500-18   Sec. 1302.452.  CITATIONS FOR CERTAIN VIOLATIONS 
500-19   Sec. 1302.453.  CRIMINAL PENALTY 
500-20      CHAPTER 1302.  AIR CONDITIONING AND REFRIGERATION CONTRACTORS
500-21                    SUBCHAPTER A.  GENERAL PROVISIONS
500-22         Sec. 1302.001.  SHORT TITLE. This chapter may be cited as the
500-23   Air Conditioning and Refrigeration Contractor License Law.
500-24   (V.A.C.S. Art. 8861, Sec. 1.)
500-25         Sec. 1302.002.  DEFINITIONS. In this chapter:
500-26               (1)  "Advisory board" means the air conditioning and
500-27   refrigeration contractors advisory board.
 501-1               (2)  "Air conditioning and refrigeration contracting"
 501-2   means performing or offering to perform the design, installation,
 501-3   construction, repair, maintenance, service, or modification of
 501-4   equipment or a product in an environmental air conditioning system,
 501-5   a commercial refrigeration system, or a process cooling or heating
 501-6   system.
 501-7               (3)  "Air conditioning and refrigeration contracting
 501-8   company" means a person who or business entity that engages in air
 501-9   conditioning and refrigeration contracting for the public.
501-10               (4)  "Air conditioning and refrigeration contractor"
501-11   means a person who engages in air conditioning and refrigeration
501-12   contracting.
501-13               (5)  "Air conditioning and refrigeration maintenance
501-14   work" means all work, including repair work, required for the
501-15   continued normal performance of an environmental air conditioning
501-16   system, a process cooling or heating system, a commercial
501-17   refrigeration system, or commercial refrigeration equipment.  The
501-18   term does not include:
501-19                     (A)  the total replacement of a system; or
501-20                     (B)  the installation or repair of a boiler or
501-21   pressure vessel that must be installed in accordance with rules
501-22   adopted by the commissioner under Chapter 755, Health and Safety
501-23   Code.
501-24               (6)  "Commercial refrigeration" means the use of
501-25   mechanical or absorption equipment to control temperature or
501-26   humidity to satisfy the intended use of a specific space.
501-27               (7)  "Commission" means the Texas Commission of
 502-1   Licensing and Regulation.
 502-2               (8)  "Commissioner" means the commissioner of licensing
 502-3   and regulation.
 502-4               (9)  "Cooling capacity" means the nominal tonnage of
 502-5   compression equipment based on 40 degrees Fahrenheit suction
 502-6   temperature and 105 degrees Fahrenheit condensing temperature.
 502-7               (10)  "Department" means the Texas Department of
 502-8   Licensing and Regulation.
 502-9               (11)  "Environmental air conditioning" means treating
502-10   air to control temperature, humidity, cleanliness, ventilation, and
502-11   circulation to meet human comfort requirements.
502-12               (12)  "Mechanical integrity" means the condition of a
502-13   product, a system, or equipment installed in accordance with its
502-14   intended purpose and according to:
502-15                     (A)  standards at least as strict as the
502-16   standards provided by:
502-17                           (i)  the Uniform Mechanical Code published
502-18   jointly by the International Conference of Building Officials and
502-19   the International Association of Plumbing and Mechanical Officials,
502-20   or their successor organizations; or
502-21                           (ii)  the Standard Mechanical Code
502-22   published by the Southern Building Code Congress International,
502-23   Inc., or its successor organization;
502-24                     (B)  all other applicable codes; and
502-25                     (C)  the manufacturer's specifications.
502-26               (13)  "MVAC-like appliance" has the meaning assigned
502-27   that term by 40 C.F.R. Section 82.152.
 503-1               (14)  "Person" means an individual.
 503-2               (15)  "Process cooling or heating" includes controlling
 503-3   temperature, humidity, or cleanliness solely for production
 503-4   requirements or the proper operation of equipment.
 503-5               (16)  "Refrigerant" means a class I or class II
 503-6   substance as listed in 42 U.S.C. Section 7671a and rules adopted
 503-7   under that section.  (V.A.C.S. Art. 8861, Secs. 2, 6(a) (part),
 503-8   10(a).)
 503-9           (Sections 1302.003-1302.050 reserved for expansion)
503-10                        SUBCHAPTER B.  EXEMPTIONS
503-11         Sec. 1302.051.  LIMITATION ON EXEMPTIONS. The exemptions
503-12   provided by this subchapter do not exempt a person from the
503-13   application of Subchapter H, except as otherwise provided by
503-14   Subchapter H.  (V.A.C.S. Art. 8861, Sec. 6(a) (part).)
503-15         Sec. 1302.052.  APPLICATION OF MUNICIPAL ORDINANCES. Work
503-16   performed by a person who is exempt from this chapter is subject to
503-17   any permit, inspection, or approval required by a municipal
503-18   ordinance.  (V.A.C.S. Art. 8861, Sec. 6(b).)
503-19         Sec. 1302.053.  HOMEOWNERS. This chapter does not apply to a
503-20   person who engages in air conditioning and refrigeration
503-21   contracting in a building owned solely by the person as the
503-22   person's home.  (V.A.C.S. Art. 8861, Sec. 6(a) (part).)
503-23         Sec. 1302.054.  CERTAIN MAINTENANCE PERSONNEL. This chapter
503-24   does not apply to a person who performs air conditioning and
503-25   refrigeration maintenance work if:
503-26               (1)  the person is a maintenance person or maintenance
503-27   engineer and is a regular employee of the owner, lessee, or
 504-1   management company of the property where the work is being
 504-2   performed;
 504-3               (2)  the person performs the work in connection with
 504-4   the business in which the person is employed; and
 504-5               (3)  the person and the person's employer do not engage
 504-6   in air conditioning and refrigeration contracting for the public.
 504-7   (V.A.C.S. Art. 8861, Sec. 6(a) (part).)
 504-8         Sec. 1302.055.  CERTAIN UTILITIES PERSONNEL. This chapter
 504-9   does not apply to a person who engages in air conditioning and
504-10   refrigeration contracting and is regularly employed by a regulated
504-11   electric or gas utility.  (V.A.C.S. Art. 8861, Sec. 6(a) (part).)
504-12         Sec. 1302.056.  ENGINEERS. This chapter does not apply to a
504-13   person who is licensed as an engineer under Chapter 1001 and
504-14   engages in air conditioning and refrigeration contracting work in
504-15   connection with the business in which the person is employed but
504-16   does not engage in that work for the public.  (V.A.C.S. Art. 8861,
504-17   Sec. 6(a) (part).)
504-18         Sec. 1302.057.  INDUSTRIAL OPERATION PERSONNEL. This chapter
504-19   does not apply to a person who is employed by an industrial
504-20   operation, including a chemical plant, petrochemical plant,
504-21   refinery, natural gas plant, or natural gas treating plant, and
504-22   performs process cooling or heating work for the operation.
504-23   (V.A.C.S. Art. 8861, Sec. 6(a) (part).)
504-24         Sec. 1302.058.  CERTAIN PRODUCTS OR EQUIPMENT. This chapter
504-25   does not apply to a person who engages in air conditioning and
504-26   refrigeration contracting on:
504-27               (1)  a portable or self-contained ductless air
 505-1   conditioning product that has a cooling capacity of three tons or
 505-2   less;
 505-3               (2)  a portable or self-contained heating product that
 505-4   does not require the forced movement of air outside the heating
 505-5   unit;
 505-6               (3)  environmental air conditioning equipment that is
 505-7   intended for temporary use and is not fixed in place; or
 505-8               (4)  a residential refrigerator, freezer, or ice
 505-9   machine.  (V.A.C.S. Art. 8861, Sec. 6(a) (part).)
505-10         Sec. 1302.059.  MOTOR VEHICLES. This chapter does not apply
505-11   to a person who engages in or employs a person who engages in air
505-12   conditioning services only on a motor vehicle or MVAC-like
505-13   appliance air conditioner.  (V.A.C.S. Art. 8861, Sec. 6(a) (part).)
505-14         Sec. 1302.060.  VENT HOODS. This chapter does not apply to a
505-15   person who installs, repairs, or removes a vent hood of the type
505-16   commonly used in residential or commercial kitchens. (V.A.C.S.
505-17   Art.  8861, Sec. 6(h).)
505-18         Sec. 1302.061.  MANUFACTURED HOMES. This chapter does not
505-19   apply to a person or entity licensed as a manufacturer, retailer,
505-20   rebuilder, or installer under Chapter 1201 and engaged exclusively
505-21   in air conditioning and refrigeration contracting for manufactured
505-22   homes if the installation of air conditioning components at the
505-23   site where the home will be occupied is performed by a person
505-24   licensed under this chapter.  (V.A.C.S. Art. 8861, Sec. 6(f).)
505-25         Sec. 1302.062.  NO LICENSE REQUIRED FOR CERTAIN ASSISTANTS. A
505-26   person is not required to hold a license if the person assists in
505-27   air conditioning and refrigeration contracting under the
 506-1   supervision of a license holder.  (V.A.C.S. Art. 8861, Secs. 6(g),
 506-2   9(a) (part).)
 506-3         Sec. 1302.063.  NO EXEMPTION FOR CERTAIN PERSONS LICENSED
 506-4   UNDER OTHER LAW. A person who is licensed and engaged in business
 506-5   in this state as a plumber or who is regulated under Chapter 113,
 506-6   Natural Resources Code, may not engage or offer or attempt to
 506-7   engage in air conditioning and refrigeration contracting without a
 506-8   license under this chapter. (V.A.C.S. Art. 8861, Secs. 6(d) (part),
 506-9   (e) (part).)
506-10           (Sections 1302.064-1302.100 reserved for expansion)
506-11      SUBCHAPTER C.  COMMISSIONER AND DEPARTMENT POWERS AND DUTIES
506-12         Sec. 1302.101.  GENERAL POWERS AND DUTIES OF COMMISSIONER.
506-13   (a)  The commissioner shall:
506-14               (1)  adopt rules for the practice of air conditioning
506-15   and refrigeration contracting that are at least as strict as the
506-16   standards provided by:
506-17                     (A)  the Uniform Mechanical Code published
506-18   jointly by the International Conference of Building Officials and
506-19   the International Association of Plumbing and Mechanical Officials,
506-20   as that code exists at the time the rules are adopted; or
506-21                     (B)  the Standard Mechanical Code published by
506-22   the Southern Building Code Congress International, Inc., as that
506-23   code exists at the time the rules are adopted;
506-24               (2)  prescribe the design of an original and a renewal
506-25   license; and
506-26               (3)  maintain a record of the commissioner's
506-27   proceedings under this chapter.
 507-1         (b)  The commissioner may authorize disbursements necessary
 507-2   to implement this chapter, including disbursements for office
 507-3   expenses, equipment costs, and other necessary facilities.
 507-4   (V.A.C.S. Art. 8861, Secs. 3(a) (part), (d), (h), (j).)
 507-5         Sec. 1302.102.  INSURANCE REQUIREMENTS. (a)  The commissioner
 507-6   shall set insurance requirements for a license holder under this
 507-7   chapter.
 507-8         (b)  The commissioner may waive the insurance requirements
 507-9   for a license holder who does not engage in air conditioning and
507-10   refrigeration contracting for the public.  (V.A.C.S. Art. 8861,
507-11   Sec. 3(f).)
507-12         Sec. 1302.103.  RULES REGARDING USE AND DISPLAY OF LICENSE.
507-13   The commissioner, with the advice of the advisory board, shall
507-14   adopt rules relating to the use, display, and advertisement of a
507-15   license.  (V.A.C.S. Art. 8861, Sec. 4(i).)
507-16         Sec. 1302.104.  CONTRACTS FOR ENFORCEMENT. The department may
507-17   contract with another state agency or a political subdivision of
507-18   the state to enforce this chapter and rules adopted under this
507-19   chapter. (V.A.C.S. Art. 8861, Sec. 3(l).)
507-20         Sec. 1302.105.  PERSONNEL; EXAMINERS. (a)  The department may
507-21   employ personnel necessary to administer this chapter.
507-22         (b)  The department shall employ at least two full-time air
507-23   conditioning and refrigeration contractors to serve as examiners.
507-24   (V.A.C.S. Art. 8861, Sec. 3(g).)
507-25         Sec. 1302.106.  DIRECTORY OF LICENSE HOLDERS. (a)  The
507-26   department shall annually publish a directory of license holders.
507-27         (b)  The department may sell the directory on payment of a
 508-1   reasonable fee set by the commission. (V.A.C.S. Art. 8861, Sec.
 508-2   3(k) (part).)
 508-3         Sec. 1302.107.  CONTINUING EDUCATION. (a)  The commissioner
 508-4   may recognize, prepare, or administer continuing education programs
 508-5   for license holders.
 508-6         (b)  Participation in a continuing education program is
 508-7   voluntary.  (V.A.C.S. Art. 8861, Sec. 4B.)
 508-8           (Sections 1302.108-1302.150 reserved for expansion)
 508-9       SUBCHAPTER D.  CONSUMER INTEREST INFORMATION AND COMPLAINTS
508-10         Sec. 1302.151.  CONSUMER INTEREST INFORMATION. (a)  The
508-11   commissioner shall prepare information of consumer interest
508-12   describing:
508-13               (1)  the functions performed by the commissioner under
508-14   this chapter; and
508-15               (2)  the rights of a consumer affected by this chapter.
508-16         (b)  The information must describe the procedure by which a
508-17   consumer complaint is filed with and resolved by the commissioner.
508-18         (c)  The commissioner shall make the information available to
508-19   the public.  (V.A.C.S. Art. 8861, Sec. 5A(a).)
508-20         Sec. 1302.152.  COMPLAINT INVESTIGATION. (a)  The
508-21   commissioner shall investigate a consumer complaint filed with the
508-22   commissioner.
508-23         (b)  The commissioner may take appropriate action under
508-24   Section 51.353 if the commissioner determines after an
508-25   investigation that a license holder violated this chapter or a rule
508-26   adopted under this chapter. (V.A.C.S. Art. 8861, Sec. 5A(b).)
508-27           (Sections 1302.153-1302.200 reserved for expansion)
 509-1            SUBCHAPTER E.  AIR CONDITIONING AND REFRIGERATION
 509-2                       CONTRACTORS ADVISORY BOARD
 509-3         Sec. 1302.201.  ADVISORY BOARD MEMBERSHIP. The air
 509-4   conditioning and refrigeration contractors advisory board consists
 509-5   of six members appointed by the governor with the advice and
 509-6   consent of the senate and two ex officio nonvoting members.
 509-7   (V.A.C.S. Art. 8861, Secs. 3A(b) (part), (e) (part).)
 509-8         Sec. 1302.202.  APPOINTED MEMBERS. (a)  Each appointed
 509-9   advisory board member must be experienced in the design,
509-10   installation, construction, maintenance, service, repair, or
509-11   modification of equipment used for environmental air conditioning,
509-12   commercial refrigeration, or process cooling or heating.  Of the
509-13   appointed members:
509-14               (1)  one must be an official of a municipality with a
509-15   population of more than 250,000;
509-16               (2)  one must be an official of a municipality with a
509-17   population of not more than 250,000; and
509-18               (3)  four must be full-time licensed air conditioning
509-19   and refrigeration contractors, as follows:
509-20                     (A)  one member who holds a Class A license and
509-21   practices in a municipality with a population of more than 250,000;
509-22                     (B)  one member who holds a Class B license and
509-23   practices in a municipality with a population of more than 250,000;
509-24                     (C)  one member who holds a Class A license and
509-25   practices in a municipality with a population of more than 25,000
509-26   but not more than 250,000; and
509-27                     (D)  one member who holds a Class B license and
 510-1   practices in a municipality with a population of not more than
 510-2   25,000.
 510-3         (b)  At least one appointed advisory board member must be an
 510-4   air conditioning and refrigeration contractor who employs organized
 510-5   labor and at least two appointed members must be air conditioning
 510-6   and refrigeration contractors who are licensed engineers. (V.A.C.S.
 510-7   Art. 8861, Secs. 3A(b) (part), (c), (f).)
 510-8         Sec. 1302.203.  EX OFFICIO MEMBERS. The commissioner and the
 510-9   chief administrator of this chapter serve as ex officio, nonvoting
510-10   members of the advisory board.  (V.A.C.S. Art. 8861, Sec. 3A(e)
510-11   (part).)
510-12         Sec. 1302.204.  ADVISORY BOARD DUTIES. (a)  The advisory
510-13   board shall advise the commissioner in adopting rules and in
510-14   administering and enforcing this chapter.
510-15         (b)  The advisory board shall advise the commission in
510-16   setting fees under this chapter. (V.A.C.S. Art. 8861, Sec. 3A(a).) 
510-17         Sec. 1302.205.  TERMS; VACANCY. (a)  Appointed advisory board
510-18   members serve staggered six-year terms.  The terms of two appointed
510-19   members expire on February 1 of each odd-numbered year.
510-20         (b)  If a vacancy occurs during an appointed member's term,
510-21   the governor shall fill the vacancy for the remainder of the
510-22   unexpired term with a person who represents the same interests as
510-23   the predecessor.  (V.A.C.S. Art. 8861, Secs. 3A(b) (part), (e)
510-24   (part).)
510-25         Sec. 1302.206.  PRESIDING OFFICER. The governor shall
510-26   designate one member of the advisory board to serve as presiding
510-27   officer.  (V.A.C.S. Art. 8861, Sec. 3A(e) (part).)
 511-1         Sec. 1302.207.  COMPENSATION; REIMBURSEMENT. An appointed
 511-2   advisory board member serves without compensation but is entitled
 511-3   to reimbursement for actual and necessary expenses incurred in
 511-4   performing functions as an advisory board member, subject to any
 511-5   applicable limitation on reimbursement provided by the General
 511-6   Appropriations Act. (V.A.C.S. Art. 8861, Sec. 3A(h).)
 511-7         Sec. 1302.208.  MEETINGS. (a)  The advisory board shall meet
 511-8   at least every six months and may meet at other times at the call
 511-9   of the presiding officer.
511-10         (b)  The advisory board shall meet in this state at a place
511-11   designated by the board. (V.A.C.S. Art. 8861, Sec. 3A(g) (part).)
511-12         Sec. 1302.209.  VOTE REQUIRED FOR ACTION. A decision of the
511-13   advisory board is not effective unless it receives the affirmative
511-14   vote of at least four members. (V.A.C.S. Art. 8861, Sec. 3A(g)
511-15   (part).)
511-16           (Sections 1302.210-1302.250 reserved for expansion)
511-17                   SUBCHAPTER F.  LICENSE REQUIREMENTS
511-18         Sec. 1302.251.  LICENSE REQUIRED. (a)  A person may not
511-19   engage in air conditioning and refrigeration contracting unless the
511-20   person holds a license under this subchapter or Subchapter G.
511-21         (b)  A license issued under this subchapter is valid
511-22   throughout the state. A person who holds a license issued under
511-23   this subchapter is not required to hold a municipal license under
511-24   Subchapter G to engage in air conditioning and refrigeration
511-25   contracting in any municipality in this state. (V.A.C.S. Art. 8861,
511-26   Secs. 3B(a), 9(a) (part).)
511-27         Sec. 1302.252.  REQUIREMENT FOR AIR CONDITIONING AND
 512-1   REFRIGERATION CONTRACTING COMPANY. (a)  An air conditioning and
 512-2   refrigeration contracting company must employ full-time in each
 512-3   permanent office a license holder who holds an appropriate license
 512-4   assigned to that company.
 512-5         (b)  A company that does not employ a license holder as
 512-6   required by Subsection (a)  at the time a contract for air
 512-7   conditioning and refrigeration contracting services is signed and
 512-8   at the time the services are performed may not collect a fee or
 512-9   otherwise enforce the contract.  (V.A.C.S. Art. 8861, Secs. 3B(b),
512-10   3C.)
512-11         Sec. 1302.253.  LICENSE CLASSIFICATIONS. (a)  The
512-12   commissioner shall issue a Class A or Class B air conditioning and
512-13   refrigeration contractor license.
512-14         (b)  A Class A license entitles the license holder to engage
512-15   in each type of air conditioning and refrigeration contracting that
512-16   is endorsed on the license in relation to a system, a product, or
512-17   equipment of any size or capacity.
512-18         (c)  A Class B license entitles the license holder to engage
512-19   in each type of air conditioning and refrigeration contracting that
512-20   is endorsed on the license in relation to a system, a product, or
512-21   equipment of not more than:
512-22               (1)  25 tons cooling capacity; or
512-23               (2)  1.5 million British thermal units per hour output
512-24   heating capacity.  (V.A.C.S. Art. 8861, Sec. 4(a).)
512-25         Sec. 1302.254.  LICENSE ENDORSEMENTS. (a)  An air
512-26   conditioning and refrigeration contractor license must be endorsed
512-27   with one or both of the following endorsements:
 513-1               (1)  an environmental air conditioning endorsement; or
 513-2               (2)  a commercial refrigeration and process cooling or
 513-3   heating endorsement.
 513-4         (b)  An environmental air conditioning endorsement entitles
 513-5   the license holder to engage in air conditioning and refrigeration
 513-6   contracting for environmental air conditioning within the class of
 513-7   license held.
 513-8         (c)  A commercial refrigeration and process cooling or
 513-9   heating endorsement entitles the license holder to engage in air
513-10   conditioning and refrigeration contracting for commercial
513-11   refrigeration and process cooling or heating within the class of
513-12   license held.
513-13         (d)  A license holder may not engage in a type of air
513-14   conditioning and refrigeration contracting for which the person's
513-15   license is not endorsed. (V.A.C.S. Art. 8861, Secs. 4(b), (c)
513-16   (part).)
513-17         Sec. 1302.255.  ELIGIBILITY REQUIREMENTS. (a)  An applicant
513-18   for a license under this chapter must:
513-19               (1)  be at least 18 years old; and
513-20               (2)  have at least 36 months of practical experience
513-21   with the tools of the trade in the preceding five years.
513-22         (b)  For purposes of determining an applicant's practical
513-23   experience under Subsection (a)(2), a degree or diploma in air
513-24   conditioning engineering, refrigeration engineering, or mechanical
513-25   engineering is equivalent to two years of practical experience if:
513-26               (1)  the degree or diploma is from an institution of
513-27   higher education; and
 514-1               (2)  the institution's program is approved by the Texas
 514-2   Board of Professional Engineers for the purpose of licensing
 514-3   engineers.  (V.A.C.S. Art. 8861, Sec. 4(e) (part).)
 514-4         Sec. 1302.256.  APPLICATION; FEE. (a)  An applicant for a
 514-5   license must submit a verified application on a form prescribed by
 514-6   the commissioner.
 514-7         (b)  The application must specify the class of license and
 514-8   each endorsement for which the applicant is applying.
 514-9         (c)  The application must be accompanied by:
514-10               (1)  a statement containing evidence satisfactory to
514-11   the commissioner of the applicant's practical experience required
514-12   by Section 1302.255(a)(2); and
514-13               (2)  the examination fee.  (V.A.C.S. Art. 8861, Secs.
514-14   4(e) (part), (f).)
514-15         Sec. 1302.257.  EXAMINATIONS. (a)  The commissioner shall
514-16   prescribe:
514-17               (1)  a separate examination for each class of license;
514-18   and
514-19               (2)  within each class of license, a separate
514-20   examination for:
514-21                     (A)  an environmental air conditioning
514-22   endorsement; and
514-23                     (B)  a commercial refrigeration and process
514-24   cooling or heating endorsement.
514-25         (b)  The commissioner shall prescribe the method and content
514-26   of an examination administered under this chapter and shall set
514-27   compliance requirements for the examination.  To obtain an
 515-1   endorsement, an applicant must pass the examination for the
 515-2   endorsement.
 515-3         (c)  The examination shall be offered on a monthly basis or
 515-4   more frequently as determined by the commissioner.
 515-5         (d)  The examination shall be offered at locations within the
 515-6   state as determined by the commissioner. The examination may be
 515-7   offered by computer at locations within the state as determined by
 515-8   the commissioner. (V.A.C.S. Art. 8861, Secs. 3(e), 4(c) (part),
 515-9   (d).)
515-10         Sec. 1302.258.  EXAMINATION RESULTS; REEXAMINATION. (a)  The
515-11   commissioner shall notify each examinee of the results of an
515-12   examination not later than the 30th day after the date the
515-13   examination is administered.  If an examination is graded or
515-14   reviewed by a national testing service, the commissioner shall
515-15   notify each examinee of the results of the examination not later
515-16   than the 14th day after the date the commissioner receives the
515-17   results from the testing service.
515-18         (b)  If the notice of the results of an examination graded or
515-19   reviewed by a national testing service will be delayed for more
515-20   than 90 days after the examination date, the commissioner shall
515-21   notify each examinee of the reason for the delay before the 90th
515-22   day.
515-23         (c)  If requested in writing by a person who fails the
515-24   examination, the commissioner shall provide to the person an
515-25   analysis of the person's performance on the examination.
515-26         (d)  An applicant who fails an examination is eligible for
515-27   reexamination.  (V.A.C.S. Art. 8861, Secs. 4(g) (part), 4A.)
 516-1         Sec. 1302.259.  WAIVER OF LICENSE REQUIREMENT. The
 516-2   commissioner may waive any license requirement for an applicant who
 516-3   holds a license issued by another state that has a reciprocity
 516-4   agreement with this state.  (V.A.C.S. Art. 8861, Sec. 4C.)
 516-5         Sec. 1302.260.  ISSUANCE AND TERM OF LICENSE. (a)  On payment
 516-6   of the license fee, the commissioner shall issue an air
 516-7   conditioning and refrigeration contractor license to an applicant
 516-8   who:
 516-9               (1)  meets the requirements of this subchapter;
516-10               (2)  provides evidence of insurance coverage required
516-11   by the commissioner in accordance with this chapter; and
516-12               (3)  passes the applicable examination.
516-13         (b)  A license issued under this chapter expires at the end
516-14   of the license period set by the commission.  (V.A.C.S. Art. 8861,
516-15   Secs. 4(g) (part), (h).)
516-16         Sec. 1302.261.  TEMPORARY LICENSE. The commissioner by rule
516-17   may provide for the issuance of a temporary air conditioning and
516-18   refrigeration contracting license to an applicant who:
516-19               (1)  submits to the commissioner an application on a
516-20   form prescribed by the commissioner; and
516-21               (2)  pays the required fees.  (V.A.C.S. Art. 8861, Sec.
516-22   4D.)
516-23         Sec. 1302.262.  NOTICE TO MUNICIPALITIES. (a)  A person who
516-24   obtains a license under this subchapter shall provide a notice to
516-25   the municipal authority that enforces air conditioning and
516-26   refrigeration contracting regulations in the municipality in which
516-27   the person engages in air conditioning and refrigeration
 517-1   contracting.
 517-2         (b)  The notice must inform the municipality that the person
 517-3   has obtained a license under this subchapter and must be in the
 517-4   form required by the municipality.
 517-5         (c)  A municipality may charge a fee to a person who provides
 517-6   the notice required by this section.  The municipality shall set
 517-7   the fee in an amount reasonable and necessary to administer this
 517-8   section.  (V.A.C.S. Art. 8861, Sec. 7.)
 517-9         Sec. 1302.263.  LIMITATION ON LICENSE HOLDER. A person
517-10   licensed under this chapter may not perform or offer or attempt to
517-11   perform an act, service, or function that is:
517-12               (1)  defined as the practice of engineering under
517-13   Chapter 1001, unless the person holds a license under that chapter;
517-14               (2)  regulated under Chapter 113, Natural Resources
517-15   Code, unless the person holds a license or is exempt by rule under
517-16   that chapter; or
517-17               (3)  defined as plumbing under Chapter 1301, unless the
517-18   person holds a license under that chapter.  (V.A.C.S. Art. 8861,
517-19   Secs. 6(c), (d) (part), (e) (part).)
517-20           (Sections 1302.264-1302.300 reserved for expansion)
517-21            SUBCHAPTER G.  MUNICIPAL LICENSING AND REGULATION
517-22         Sec. 1302.301.  MUNICIPAL LICENSE. An air conditioning and
517-23   refrigeration contractor license issued by a municipality of this
517-24   state and that complies with the requirements of this subchapter is
517-25   valid under the terms of the license within the municipality.
517-26   (V.A.C.S. Art. 8861, Sec. 9(a) (part).)
517-27         Sec. 1302.302.  MUNICIPAL LICENSE:  ELIGIBILITY REQUIREMENTS.
 518-1   An applicant for a municipal license must:
 518-2               (1)  pass an examination that covers the same subjects
 518-3   as the examination required under Subchapter F for a license of the
 518-4   class that entitles the holder of the license to perform the work
 518-5   the applicant proposes to perform; and
 518-6               (2)  meet experience requirements that are at least as
 518-7   strict as the requirements under Section 1302.255(a)(2). (V.A.C.S.
 518-8   Art. 8861, Sec. 9(b).)
 518-9         Sec. 1302.303.  MUNICIPAL AIR CONDITIONING AND REFRIGERATION
518-10   STANDARDS. (a)  A municipality may by ordinance adopt and enforce
518-11   standards for air conditioning and refrigeration contractors that
518-12   are consistent with the standards established under this chapter.
518-13         (b)  The municipality shall report a violation of the
518-14   ordinance to the commissioner not later than the 10th day after the
518-15   date the municipality acts to enforce the ordinance. (V.A.C.S.
518-16   Art. 8861, Sec. 9(c) (part).)
518-17           (Sections 1302.304-1302.350 reserved for expansion)
518-18               SUBCHAPTER H.  SALE AND USE OF REFRIGERANTS
518-19         Sec. 1302.351.  APPLICATION OF SUBCHAPTER. This subchapter
518-20   does not apply to:
518-21               (1)  a "small appliance" as defined by 40 C.F.R.
518-22   Section 82.152, as amended; or
518-23               (2)  a person who is exempt from this chapter under
518-24   Section 1302.055, 1302.057, or 1302.059.  (V.A.C.S. Art. 8861,
518-25   Secs. 10(i), (j).)
518-26         Sec. 1302.352.  COMPLIANCE WITH FEDERAL REQUIREMENTS. (a)  A
518-27   person who purchases, sells, or uses a refrigerant in this state
 519-1   shall comply with the requirements of the federal Clean Air Act (42
 519-2   U.S.C. Section 7401 et seq.) and rules adopted under that Act.
 519-3         (b)  Consistent with Subsection (a), the department shall
 519-4   regulate the sale and use of a refrigerant as provided by this
 519-5   subchapter.  (V.A.C.S. Art. 8861, Sec. 10(b).)
 519-6         Sec. 1302.353.  PURCHASE OF REFRIGERANT:  LICENSE OR
 519-7   REGISTRATION REQUIRED. (a)  Except as provided by Subsection (b), a
 519-8   person may not purchase a refrigerant or equipment containing a
 519-9   refrigerant in this state unless the person holds:
519-10               (1)  a license under Subchapter F or G; or
519-11               (2)  a certificate of registration issued by the
519-12   department under this subchapter.
519-13         (b)  A person authorized to purchase a refrigerant under
519-14   other state or federal law may purchase a refrigerant if the
519-15   person's use is exempt from this chapter under Section 1302.053,
519-16   1302.055, 1302.057, 1302.058, or 1302.059.  (V.A.C.S. Art. 8861,
519-17   Secs. 10(e), (g) (part).)
519-18         Sec. 1302.354.  REGISTRATION. (a)  A person who is exempt
519-19   from this chapter under Section 1302.054 or 1302.056 must obtain a
519-20   certificate of registration from the department to purchase a
519-21   refrigerant.
519-22         (b)  The commissioner by rule shall adopt requirements
519-23   governing the registration and issuance of a certificate of
519-24   registration.  (V.A.C.S. Art. 8861, Sec. 10(d) (part).)
519-25         Sec. 1302.355.  PURCHASE OF REFRIGERANT:  EVIDENCE
519-26   REQUIREMENT. (a)  Except as provided by Subsection (b), a person
519-27   who purchases a refrigerant must provide to the seller evidence of
 520-1   the person's compliance with the applicable license or registration
 520-2   requirement under this chapter.
 520-3         (b)  A purchaser described by Section 1302.353(b) is not
 520-4   required to provide evidence of the person's exemption to a seller.
 520-5         (c)  The commissioner by rule shall establish requirements
 520-6   for evidence that satisfies this section.  (V.A.C.S. Art. 8861,
 520-7   Secs. 10(d) (part), (f), (g) (part).)
 520-8         Sec. 1302.356.  SALE OR USE OF CERTAIN REFRIGERANTS
 520-9   PROHIBITED. A person may not:
520-10               (1)  sell a flammable refrigerant or refrigerant
520-11   substitute that contains a liquid petroleum-based product for use
520-12   in an automotive, aviation, commercial, or residential air
520-13   conditioning or refrigeration system; or
520-14               (2)  use a flammable refrigerant or refrigerant
520-15   substitute that contains a liquid petroleum-based product in the
520-16   maintenance or installation of any system relating to aircraft.
520-17   (V.A.C.S. Art. 8861, Sec. 10(c).)
520-18           (Sections 1302.357-1302.400 reserved for expansion)
520-19            SUBCHAPTER I.  DISCIPLINARY ACTION AND PROCEDURES
520-20         Sec. 1302.401.  DISCIPLINARY ACTION. (a)  A person is subject
520-21   to the denial of an application or disciplinary action under
520-22   Section 51.353 if the person:
520-23               (1)  violates this chapter or a rule adopted under this
520-24   chapter; or
520-25               (2)  is convicted of an offense under a municipal
520-26   ordinance adopted under Section 1302.303.
520-27         (b)  A violation of this chapter includes:
 521-1               (1)  failing to provide proper installation, service,
 521-2   or mechanical integrity;
 521-3               (2)  intentionally or knowingly misrepresenting a
 521-4   necessary service, service to be provided, or service that has been
 521-5   provided; or
 521-6               (3)  making a fraudulent promise to induce a person to
 521-7   contract for services.  (V.A.C.S. Art. 8861, Secs. 5(a), 9(c)
 521-8   (part).)
 521-9         Sec. 1302.402.  ADMINISTRATIVE PROCEDURES. A proceeding for
521-10   the denial of a license application or disciplinary action and an
521-11   appeal from that proceeding are governed by Chapter 2001,
521-12   Government Code.  (V.A.C.S. Art. 8861, Sec. 5(b).)
521-13           (Sections 1302.403-1302.450 reserved for expansion)
521-14           SUBCHAPTER J.  PENALTIES AND ENFORCEMENT PROVISIONS
521-15         Sec. 1302.451.  EMERGENCY AND CEASE AND DESIST ORDERS. (a)
521-16   The commissioner may issue an emergency order as necessary to
521-17   enforce this chapter if the commissioner determines that an
521-18   emergency exists requiring immediate action to protect the public
521-19   health and safety.
521-20         (b)  The commissioner may issue the emergency order without
521-21   notice and hearing or with any notice and hearing the commissioner
521-22   considers practicable under the circumstances.  The commissioner
521-23   shall set the time and place for a hearing to affirm, modify, or
521-24   set aside an emergency order that was issued without a hearing.
521-25         (c)  The commissioner may issue a cease and desist order.
521-26   (V.A.C.S. Art. 8861, Sec. 3(b).)
521-27         Sec. 1302.452.  CITATIONS FOR CERTAIN VIOLATIONS. (a)  A
 522-1   municipal or county official may issue a citation to an air
 522-2   conditioning and refrigeration contracting company that engages in
 522-3   air conditioning and refrigeration contracting without complying
 522-4   with Section 1302.252.
 522-5         (b)  The department or a municipal air conditioning or
 522-6   refrigeration inspector within the jurisdiction of the municipality
 522-7   in which a violation occurs may issue a citation to a person who
 522-8   violates Section 1302.353(a) or 1302.355(a).  (V.A.C.S. Art. 8861,
 522-9   Secs. 3(m), 3B(c) (part).)
522-10         Sec. 1302.453.  CRIMINAL PENALTY. (a)  A person commits an
522-11   offense if the person:
522-12               (1)  knowingly engages in air conditioning and
522-13   refrigeration contracting without holding a license issued under
522-14   this chapter; or
522-15               (2)  purchases a refrigerant or equipment containing a
522-16   refrigerant in this state in violation of Section 1302.353,
522-17   1302.355, or 1302.356.
522-18         (b)  An offense under this section is a Class C misdemeanor.
522-19   (V.A.C.S. Art. 8861, Secs. 8,  10(h).)
522-20              CHAPTER 1303.  RESIDENTIAL SERVICE COMPANIES
522-21                    SUBCHAPTER A.  GENERAL PROVISIONS
522-22   Sec. 1303.001.  SHORT TITLE 
522-23   Sec. 1303.002.  DEFINITIONS 
522-24   Sec. 1303.003.  APPLICABILITY OF INSURANCE LAWS 
522-25   Sec. 1303.004.  NONAPPLICABILITY TO CERTAIN PERSONS 
522-26   Sec. 1303.005.  APPLICABILITY TO CERTAIN AGREEMENTS 
522-27   Sec. 1303.006.  LIABILITY FOR CERTAIN ACTIONS BY AGENT 
 523-1           (Sections 1303.007-1303.050 reserved for expansion)
 523-2               SUBCHAPTER B.  COMMISSION POWERS AND DUTIES
 523-3   Sec. 1303.051.  GENERAL POWERS AND DUTIES OF COMMISSION;
 523-4                     DELEGATION 
 523-5   Sec. 1303.052.  FEES 
 523-6   Sec. 1303.053.  EXAMINATION OF RESIDENTIAL SERVICE
 523-7                     COMPANY 
 523-8           (Sections 1303.054-1303.100 reserved for expansion)
 523-9                   SUBCHAPTER C.  LICENSE REQUIREMENTS
523-10   Sec. 1303.101.  LICENSE REQUIRED 
523-11   Sec. 1303.102.  ELIGIBILITY 
523-12   Sec. 1303.103.  LICENSE APPLICATION 
523-13   Sec. 1303.104.  APPROVAL OF APPLICATION MATERIALS 
523-14   Sec. 1303.105.  ISSUANCE OR DENIAL OF LICENSE 
523-15   Sec. 1303.106.  LICENSE DENIAL:  APPEAL TO
523-16                     COMMISSION 
523-17   Sec. 1303.107.  TERM OF LICENSE 
523-18           (Sections 1303.108-1303.150 reserved for expansion)
523-19                  SUBCHAPTER D.  FINANCIAL REQUIREMENTS
523-20   Sec. 1303.151.  RESERVE REQUIRED 
523-21   Sec. 1303.152.  AMOUNT OF RESERVE 
523-22   Sec. 1303.153.  SECURITY REQUIRED 
523-23   Sec. 1303.154.  AMOUNT OF SECURITY 
523-24           (Sections 1303.155-1303.200 reserved for expansion)
523-25       SUBCHAPTER E.  GENERAL POWERS AND DUTIES OF LICENSE HOLDER
523-26   Sec. 1303.201.  NOTICE OF MODIFICATION 
523-27   Sec. 1303.202.  ANNUAL REPORT 
 524-1           (Sections 1303.203-1303.250 reserved for expansion)
 524-2               SUBCHAPTER F. RESIDENTIAL SERVICE CONTRACTS
 524-3   Sec. 1303.251.  EVIDENCE OF COVERAGE 
 524-4   Sec. 1303.252.  CONTENTS OF EVIDENCE OF
 524-5                     COVERAGE 
 524-6   Sec. 1303.253.  SCHEDULE OF CHARGES 
 524-7   Sec. 1303.254.  REMEDIES NOT WAIVED; NOTICE 
 524-8   Sec. 1303.255.  CANCELLATION OF CONTRACT 
 524-9           (Sections 1303.256-1303.300 reserved for expansion)
524-10                   SUBCHAPTER G.  PROHIBITED PRACTICES
524-11   Sec. 1303.301.  FALSE OR DECEPTIVE STATEMENTS
524-12                     PROHIBITED 
524-13   Sec. 1303.302.  CERTAIN CONDITIONAL SALES OF PROPERTY
524-14                     PROHIBITED 
524-15   Sec. 1303.303.  CERTAIN CHARGES WITHOUT CONSENT
524-16                     PROHIBITED 
524-17   Sec. 1303.304.  CERTAIN PAYMENTS BY RESIDENTIAL SERVICE COMPANY
524-18                     PROHIBITED 
524-19           (Sections 1303.305-1303.350 reserved for expansion)
524-20         SUBCHAPTER H.  DISCIPLINARY ACTION AND OTHER PROCEDURES
524-21   Sec. 1303.351.  DISCIPLINARY POWERS OF COMMISSION 
524-22   Sec. 1303.352.  GROUNDS FOR DISCIPLINARY ACTION 
524-23   Sec. 1303.353.  DUTIES AFTER LICENSE REVOCATION 
524-24   Sec. 1303.354.  JUDICIAL REVIEW 
524-25           (Sections 1303.355-1303.400 reserved for expansion)
524-26           SUBCHAPTER I.  PENALTIES AND ENFORCEMENT PROVISIONS
524-27   Sec. 1303.401.  HAZARDOUS FINANCIAL CONDITION OF RESIDENTIAL
 525-1                     SERVICE COMPANY 
 525-2   Sec. 1303.402.  APPOINTMENT OF RECEIVER 
 525-3   Sec. 1303.403.  INJUNCTIVE RELIEF 
 525-4   Sec. 1303.404.  CIVIL PENALTY 
 525-5   Sec. 1303.405.  DECEPTIVE TRADE PRACTICE 
 525-6   Sec. 1303.406.  CRIMINAL PENALTY 
 525-7   Sec. 1303.407.  ADDITIONAL PENALTY 
 525-8              CHAPTER 1303.  RESIDENTIAL SERVICE COMPANIES
 525-9                    SUBCHAPTER A.  GENERAL PROVISIONS
525-10         Sec. 1303.001.  SHORT TITLE. This chapter may be cited as the
525-11   Residential Service Company Act.  (V.A.C.S. Art. 6573b, Sec. 1.)
525-12         Sec. 1303.002.  DEFINITIONS. In this chapter:
525-13               (1)  "Commission" means the Texas Real Estate
525-14   Commission.
525-15               (2)  "Contract holder" means a person who is entitled
525-16   to receive services from a residential service company under a
525-17   residential service contract.
525-18               (3)  "Person" means an individual, partnership,
525-19   corporation, association, or other organization.
525-20               (4)  "Residential service company" means a person who:
525-21                     (A)  issues a residential service contract; and
525-22                     (B)  performs or arranges to perform services
525-23   under the contract.
525-24               (5)  "Residential service contract" means an agreement
525-25   under which, in exchange for a fee, a person undertakes for a
525-26   specified period to maintain, repair, or replace all or any part of
525-27   a structural component, an appliance, or an electrical, plumbing,
 526-1   heating, cooling, or air-conditioning system of a residential
 526-2   property. The term does not include a service or maintenance
 526-3   agreement sold, offered for sale, or issued by a manufacturer or
 526-4   merchant under which the manufacturer or merchant undertakes to
 526-5   maintain, repair, or replace a product or part of a product,
 526-6   including a structural component, an appliance, or an electrical,
 526-7   plumbing, heating, cooling, or air-conditioning system of a
 526-8   residential property, that is:
 526-9                     (A)  manufactured or sold by the manufacturer or
526-10   merchant; or
526-11                     (B)  installed by the merchant in a building or
526-12   residence.  (V.A.C.S. Art. 6573b, Secs.  4(a), (b), (d), (e), (f).)
526-13         Sec. 1303.003.  APPLICABILITY OF INSURANCE LAWS. (a)  Except
526-14   as otherwise provided by this chapter, the insurance laws of this
526-15   state do not apply to a residential service company.  This
526-16   subsection does not apply to an insurance company licensed and
526-17   regulated under the insurance laws of this state.
526-18         (b)  This chapter does not exempt a warranty or service
526-19   contract other than a residential service contract from the
526-20   Insurance Code.  (V.A.C.S. Art. 6573b, Secs.  2(a), (d).)
526-21         Sec. 1303.004.  NONAPPLICABILITY TO CERTAIN PERSONS. (a)
526-22   This chapter does not apply to a person who:
526-23               (1)  manufactures or sells a product or part of a
526-24   product; and
526-25               (2)  sells, offers to sell, or issues a service or
526-26   maintenance agreement that provides for the maintenance, repair,
526-27   replacement, or performance of the product or part of the product.
 527-1         (b)  A person described by Subsection (a) or an employee or
 527-2   agent of a person described by Subsection (a) is not required to be
 527-3   licensed or regulated under this chapter.
 527-4         (c)  This chapter does not apply to a person who engages in
 527-5   the business of structural pest control in compliance with Chapter
 527-6   1951.  (V.A.C.S. Art. 6573b, Secs. 2(c), 25 (part).)
 527-7         Sec. 1303.005.  APPLICABILITY TO CERTAIN AGREEMENTS. This
 527-8   chapter does not apply to:
 527-9               (1)  a performance guarantee given by:
527-10                     (A)  the builder of a residential property; or
527-11                     (B)  the manufacturer or seller of an appliance
527-12   or other system or component of a residential property;
527-13               (2)  a residential service contract executed before
527-14   August 28, 1979;
527-15               (3)  a service contract, guarantee, or warranty that
527-16   is:
527-17                     (A)  designed to guarantee or warrant the repair
527-18   or service of an appliance, system, or component of a residential
527-19   property; and
527-20                     (B)  issued by a person who:
527-21                           (i)  does not engage in the business of a
527-22   residential service company; and
527-23                           (ii)  sells, services, repairs, or replaces
527-24   the appliance, system, or component at the time or before the
527-25   contract, guarantee, or warranty is issued;
527-26               (4)  a service or maintenance agreement or a warranty
527-27   that:
 528-1                     (A)  is sold, offered for sale, or issued by a
 528-2   manufacturer or merchant who manufactures or sells a product or
 528-3   part of a product, including a structural component, an appliance,
 528-4   or an electrical, plumbing, heating, cooling, or air-conditioning
 528-5   system of a building or residence; and
 528-6                     (B)  provides for, warrants, or guarantees the
 528-7   maintenance, repair, replacement, or performance of the product or
 528-8   part of the product; or
 528-9               (5)  home warranty insurance as defined by Section 2,
528-10   Article 5.53-A, Insurance Code.  (V.A.C.S. Art. 6573b, Secs. 2(b),
528-11   25 (part).)
528-12         Sec. 1303.006.  LIABILITY FOR CERTAIN ACTIONS BY AGENT. This
528-13   chapter does not exempt a residential service company from common
528-14   law or statutory liability for an action taken by the company's
528-15   agent or representative that is relevant to the conduct of the
528-16   company's business.  (V.A.C.S. Art. 6573b, Sec. 11(d).)
528-17           (Sections 1303.007-1303.050 reserved for expansion)
528-18               SUBCHAPTER B.  COMMISSION POWERS AND DUTIES
528-19         Sec. 1303.051.  GENERAL POWERS AND DUTIES OF COMMISSION;
528-20   DELEGATION. (a)  The commission shall administer this chapter and
528-21   may adopt and enforce rules necessary to implement this chapter.
528-22         (b)  The commission may delegate a power, right, or duty
528-23   under this chapter to the administrator or assistant administrator
528-24   of the commission. (V.A.C.S. Art. 6573b, Secs. 3, 5.)
528-25         Sec. 1303.052.  FEES. (a)  A residential service company must
528-26   pay to the commission a fee for filing an application for a license
528-27   or an amendment to the application, not to exceed $3,500.
 529-1         (b)  A residential service company shall pay to the
 529-2   commission a fee for:
 529-3               (1)  filing an annual report under Section 1303.202,
 529-4   not to exceed $3,500; and
 529-5               (2)  any other filing required by this chapter, not to
 529-6   exceed $500.
 529-7         (c)  A residential service company shall pay to the
 529-8   commission a fee for the cost of an examination conducted under
 529-9   Section 1303.053. (V.A.C.S. Art. 6573b, Secs. 7(a) (part), 24.)
529-10         Sec. 1303.053.  EXAMINATION OF RESIDENTIAL SERVICE COMPANY.
529-11   (a)  The commission may examine the affairs of a residential
529-12   service company as necessary. For the purpose of an examination,
529-13   the commission may administer an oath to and examine an officer or
529-14   agent of the residential service company.
529-15         (b)  A residential service company shall:
529-16               (1)  make available for the examination its books and
529-17   records relating to its operation; and
529-18               (2)  facilitate the examination in every way. (V.A.C.S.
529-19   Art. 6573b, Sec. 13.)
529-20           (Sections 1303.054-1303.100 reserved for expansion)
529-21                   SUBCHAPTER C.  LICENSE REQUIREMENTS
529-22         Sec. 1303.101.  LICENSE REQUIRED. (a)  A person may not issue
529-23   a residential service contract or perform or arrange to perform
529-24   services under a residential service contract unless the person is
529-25   licensed as a residential service company under this chapter or is
529-26   the authorized representative of a person licensed as a residential
529-27   service company under this chapter.
 530-1         (b)  A person may not sell, offer to sell, arrange or solicit
 530-2   the sale of, or receive an application for a residential service
 530-3   contract unless:
 530-4               (1)  the person is:
 530-5                     (A)  employed by a residential service company
 530-6   licensed under this chapter; or
 530-7                     (B)  licensed as a real estate salesperson, real
 530-8   estate broker, mobile home dealer, or insurance agent in this
 530-9   state; and
530-10               (2)  the contract is issued by a residential service
530-11   company licensed under this chapter.
530-12         (c)  A person may not use the phrase "residential service
530-13   company" in the course of engaging in business unless the person:
530-14               (1)  is licensed by the commission as provided by this
530-15   chapter; and
530-16               (2)  complies with this chapter. (V.A.C.S. Art. 6573b,
530-17   Secs.  6(a), (b); 11(c).)
530-18         Sec. 1303.102.  ELIGIBILITY. (a)  Notwithstanding any other
530-19   law of this state, any person may apply to the commission for and
530-20   obtain a license to issue residential service contracts in
530-21   compliance with this chapter.
530-22         (b)  A foreign corporation may qualify under this chapter if
530-23   the corporation:
530-24               (1)  registers to engage in business in this state as a
530-25   foreign corporation under the Texas Business Corporation Act; and
530-26               (2)  complies with this chapter and other applicable
530-27   statutes of this state. (V.A.C.S. Art. 6573b, Sec. 6(c).)
 531-1         Sec. 1303.103.  LICENSE APPLICATION. (a)  An application for
 531-2   a license under this chapter must be:
 531-3               (1)  on a form prescribed by commission rule; and
 531-4               (2)  verified by the applicant or an officer or other
 531-5   authorized representative of the applicant.
 531-6         (b)  Each application for a license must contain or be
 531-7   accompanied by:
 531-8               (1)  a copy of the articles of incorporation, articles
 531-9   of association, partnership agreement, trust agreement, or any
531-10   other basic organizational document of the applicant;
531-11               (2)  a copy of any amendment to the applicant's basic
531-12   organizational document;
531-13               (3)  a copy of any bylaws, rules, or other similar
531-14   document that regulates the conduct of the applicant's internal
531-15   affairs;
531-16               (4)  the name, address, and official position of each
531-17   person who will be responsible for the conduct of the applicant's
531-18   affairs, including:
531-19                     (A)  each member of the board of directors, board
531-20   of trustees, executive committee, or other governing body or
531-21   committee of the applicant;
531-22                     (B)  the applicant's principal officer, if the
531-23   applicant is a corporation; and
531-24                     (C)  each partner or member of the applicant, if
531-25   the applicant is a partnership or association;
531-26               (5)  a copy of the residential service contract made or
531-27   to be made between the applicant and another person;
 532-1               (6)  a general description of the residential service
 532-2   contract or the contract's coverage or plan;
 532-3               (7)  a financial statement that:
 532-4                     (A)  is prepared by an independent certified
 532-5   public accountant within six months preceding the date the
 532-6   application is submitted; and
 532-7                     (B)  shows the applicant's assets, liabilities,
 532-8   and sources of financial support;
 532-9               (8)  a description of the applicant's proposed method
532-10   of marketing a residential service contract;
532-11               (9)  a statement regarding the applicant's sources of
532-12   working capital and any other funding sources;
532-13               (10)  if the applicant is not domiciled in this state,
532-14   a power of attorney appointing the administrator and the
532-15   administrator's successors in office, or the administrator's
532-16   authorized deputy, as the applicant's agent for service of process
532-17   in this state in a legal action arising in this state against the
532-18   applicant or the applicant's agents; and
532-19               (11)  any other information the commission requires to
532-20   make a determination required by this chapter.
532-21         (c)  For the proper administration of this chapter, the
532-22   commission may require additional or more recent financial
532-23   information than the financial information required under
532-24   Subsection (b)(7).  (V.A.C.S. Art. 6573b, Sec. 7(a) (part).)
532-25         Sec. 1303.104.  APPROVAL OF APPLICATION MATERIALS. (a)  The
532-26   commission shall approve or disapprove the application materials in
532-27   writing as soon as reasonably possible after the date the
 533-1   application materials are submitted.  Except as provided by
 533-2   Subsection (b), the application materials are considered approved
 533-3   unless disapproved not later than the 30th day after the date the
 533-4   application materials are submitted.
 533-5         (b)  The commission by official order may postpone approval
 533-6   or disapproval of the application materials for a period necessary
 533-7   for proper consideration, not to exceed 30 days.  (V.A.C.S.
 533-8   Art. 6573b, Sec. 7(c).)
 533-9         Sec. 1303.105.  ISSUANCE OR DENIAL OF LICENSE. (a)  On
533-10   receipt of an approved application as provided by Section 1303.104,
533-11   the commission shall determine whether the applicant has
533-12   demonstrated the potential ability to ensure that the services will
533-13   be provided in a timely and responsible manner. The commission
533-14   shall issue a license to an applicant if the commission determines
533-15   that:
533-16               (1)  the applicant has demonstrated the potential
533-17   ability to ensure that the services will be provided in a timely
533-18   and responsible manner;
533-19               (2)  the person responsible for the conduct of the
533-20   applicant's affairs is competent and trustworthy and possesses a
533-21   good reputation;
533-22               (3)  the applicant may reasonably be expected to meet
533-23   its obligations under its residential service contract; and
533-24               (4)  the applicant has complied with or will comply
533-25   with this chapter.
533-26         (b)  In making the determination under Subsection (a)(3), the
533-27   commission shall consider:
 534-1               (1)  the applicant's financial soundness;
 534-2               (2)  any agreement between the applicant and another
 534-3   party to provide the services required in the residential service
 534-4   contract; and
 534-5               (3)  any other matter the commission considers
 534-6   relevant.
 534-7         (c)  Not later than the 75th day after the date the
 534-8   commission receives an approved application, the commission shall,
 534-9   in writing, issue or deny a license to the applicant.
534-10         (d)  If the commission denies a license, the commission shall
534-11   notify the applicant in writing of the denial not later than the
534-12   fifth day after the date of denial. (V.A.C.S. Art. 6573b, Secs.
534-13   8(a), (b), (c), (d).)
534-14         Sec. 1303.106.  LICENSE DENIAL:  APPEAL TO COMMISSION. (a)
534-15   To appeal the denial of a license as provided by Section 1303.354,
534-16   a license applicant must file not later than the 10th day after the
534-17   date of the notice of denial a written appeal requesting a hearing
534-18   before the commission.  If an applicant fails to request a hearing
534-19   as provided by this subsection, the commission's decision is final
534-20   and not subject to judicial review.
534-21         (b)  The commission shall:
534-22               (1)  set a time and place for the hearing not later
534-23   than the 30th day after the date the commission receives the
534-24   appeal; and
534-25               (2)  notify the applicant in writing of the scheduled
534-26   hearing not later than the 10th day before the date of the
534-27   scheduled hearing.
 535-1         (c)  The hearing may be continued with the applicant's
 535-2   consent.  After the hearing, the commission shall enter an
 535-3   appropriate order.  (V.A.C.S. Art. 6573b, Sec. 8(e).)
 535-4         Sec. 1303.107.  TERM OF LICENSE. A license continues in
 535-5   effect as long as the license holder meets the requirements of this
 535-6   chapter or until the license is:
 535-7               (1)  suspended or revoked by the commission; or
 535-8               (2)  terminated at the request of the license holder.
 535-9   (V.A.C.S. Art. 6573b, Sec. 8(f).)
535-10           (Sections 1303.108-1303.150 reserved for expansion)
535-11                  SUBCHAPTER D.  FINANCIAL REQUIREMENTS
535-12         Sec. 1303.151.  RESERVE REQUIRED. A residential service
535-13   company shall maintain a funded reserve against its liability to
535-14   provide repair and replacement services under its outstanding
535-15   residential service contracts written in this state.  (V.A.C.S.
535-16   Art. 6573b, Sec. 9(a) (part).)
535-17         Sec. 1303.152.  AMOUNT OF RESERVE. (a)  The amount of the
535-18   reserve required by Section 1303.151 is based on the amount of
535-19   liability remaining under outstanding residential service contracts
535-20   written in this state by the residential service company, as
535-21   determined by multiplying the total number of months remaining on
535-22   all of those contracts by the pro rata monthly contract charge.
535-23         (b)  The amount of the reserve must be equal to the lesser
535-24   of:
535-25               (1)  an amount equal to the amount of remaining
535-26   liability multiplied by the ratio of direct losses incurred by the
535-27   residential service company to contract fees earned by the company
 536-1   during the preceding calendar year; or
 536-2               (2)  an amount equal to 50 percent of the amount of
 536-3   remaining liability.
 536-4         (c)  For purposes of this chapter, the reserve is not
 536-5   required to include a contract fee on a residential service
 536-6   contract to the extent that provision is made for reinsurance of
 536-7   the outstanding risk on the contract by:
 536-8               (1)  a residential service company licensed in this
 536-9   state;
536-10               (2)  an admitted insurer; or
536-11               (3)  a surplus line insurer or a surplus line bonding
536-12   company if the insurer or bonding company:
536-13                     (A)  is rated A+ or better by a rating service
536-14   recognized by the commission; and
536-15                     (B)  submits to the commission for its approval
536-16   evidence, in the form of a certified audit and other pertinent
536-17   information the commission may require, of the insurer's or bonding
536-18   company's ability to meet its contractual obligations.  (V.A.C.S.
536-19   Art. 6573b, Secs. 9(a) (part), (b).)
536-20         Sec. 1303.153.  SECURITY REQUIRED. (a)  As a guarantee that a
536-21   residential service company will meet its obligations to its
536-22   contract holders, the company shall maintain with the commission a
536-23   bond or other security accepted by the commission.
536-24         (b)  A bond posted as security must:
536-25               (1)  be issued by a carrier admitted in this state;
536-26               (2)  be continuous;
536-27               (3)  be cancellable by the surety only after not less
 537-1   than 90 days' notice to the commission; and
 537-2               (4)  recognize that the obligation continues for the
 537-3   terms of the residential service contracts written by the
 537-4   residential service company while the bond is in force.
 537-5         (c)  Any security provided under this section in a form other
 537-6   than a bond must be convertible to cash by the commission for the
 537-7   benefit of contract holders in this state, without resort to the
 537-8   courts, if the commission determines that the residential service
 537-9   company is in default of its financial obligations to the contract
537-10   holders.  Any amount remaining after all contract holders' claims
537-11   are paid must be returned to the residential service company not
537-12   later than the 120th day after the date the last outstanding
537-13   residential service contract expires. (V.A.C.S. Art. 6573b, Secs.
537-14   9(c) (part), (e), (f).)
537-15         Sec. 1303.154.  AMOUNT OF SECURITY. (a)  An applicant for a
537-16   new license must provide security in the amount of $25,000.  The
537-17   amount of the security may not be reduced before the residential
537-18   service company files a second report under Section 1303.202.
537-19         (b)  After a residential service company files the second
537-20   report, the company must maintain security in one of the following
537-21   minimum amounts based on the amount of claims paid in this state
537-22   during the preceding calendar year:
537-23               (1)  $10,000, if the amount of claims paid is less than
537-24   $50,000;
537-25               (2)  $25,000, if the amount of claims paid is $50,000
537-26   or more but less than $200,000;
537-27               (3)  $50,000, if the amount of claims paid is $200,000
 538-1   or more but less than $500,000; and
 538-2               (4)  $100,000, if the amount of claims paid is $500,000
 538-3   or more.
 538-4         (c)  A revision to the amount of security must be based on
 538-5   the figures a residential service company provides in its report
 538-6   under Section 1303.202.  The company shall revise the amount of
 538-7   security as required by the commission not later than the 30th day
 538-8   after the date the company is notified by the commission of the
 538-9   revised amount.  (V.A.C.S. Art. 6573b, Secs. 9(c) (part), (d),
538-10   (g).)
538-11           (Sections 1303.155-1303.200 reserved for expansion)
538-12       SUBCHAPTER E.  GENERAL POWERS AND DUTIES OF LICENSE HOLDER
538-13         Sec. 1303.201.  NOTICE OF MODIFICATION. A residential service
538-14   company shall file notice with the commission before the company
538-15   modifies an operation or document described in Section 1303.103.
538-16   (V.A.C.S. Art. 6573b, Sec. 7(b).)
538-17         Sec. 1303.202.  ANNUAL REPORT. (a)  Not later than April 1 of
538-18   each year, each residential service company shall file with the
538-19   commission a report covering the preceding calendar year.
538-20         (b)  The report must:
538-21               (1)  be on a form prescribed by the commission;
538-22               (2)  be verified by at least two of the residential
538-23   service company's principal officers; and
538-24               (3)  include:
538-25                     (A)  a financial statement of the residential
538-26   service company, including its balance sheet and receipts and
538-27   disbursements for the preceding year, certified by an independent
 539-1   public accountant;
 539-2                     (B)  any material change to the information
 539-3   submitted under Section 1303.103;
 539-4                     (C)  the number of residential service contracts
 539-5   entered into during the year, the number of contract holders as of
 539-6   the end of the year, and the number of contracts terminating during
 539-7   the year; and
 539-8                     (D)  any other information that:
 539-9                           (i)  relates to the performance and
539-10   solvency of the residential service company; and
539-11                           (ii)  is necessary for the commission to
539-12   perform its duties under this chapter.
539-13         (c)  Information provided by a residential service company
539-14   under Subsection (b)(3)(D) is:
539-15               (1)  confidential; and
539-16               (2)  for the exclusive use of the commission. (V.A.C.S.
539-17   Art. 6573b, Sec. 10.)
539-18           (Sections 1303.203-1303.250 reserved for expansion)
539-19               SUBCHAPTER F. RESIDENTIAL SERVICE CONTRACTS
539-20         Sec. 1303.251.  EVIDENCE OF COVERAGE. (a)  Each contract
539-21   holder residing in this state is entitled to evidence of coverage
539-22   under a residential service contract.  The residential service
539-23   company that issued the contract shall issue evidence of coverage
539-24   under the contract.
539-25         (b)  A residential service company may not issue or deliver
539-26   evidence of coverage under a residential service contract, or an
539-27   amendment to that evidence, to a person in this state until a copy
 540-1   of the evidence or amendment is filed with and approved by the
 540-2   commission.
 540-3         (c)  The commission may require a residential service company
 540-4   to submit relevant information the commission considers necessary
 540-5   to determine whether to approve or disapprove the company's
 540-6   evidence of coverage.
 540-7         (d)  The commission shall approve a residential service
 540-8   company's evidence of coverage if the requirements of this section
 540-9   and Section 1303.252 are met.
540-10         (e)  If the commission disapproves a residential service
540-11   company's evidence of coverage, the commission shall notify the
540-12   company of the disapproval and in the notice shall specify in
540-13   detail the reason for the disapproval.
540-14         (f)  A residential service company whose evidence of coverage
540-15   is disapproved by the commission may request a hearing on the
540-16   commission's decision.  If a hearing is requested, the commission
540-17   shall set a hearing on the decision as soon as reasonably possible.
540-18   Not later than the 60th day after the date of the hearing, the
540-19   commission by written order shall approve or disapprove the
540-20   evidence.  If the evidence is disapproved, the commission shall
540-21   state in the order the grounds for the disapproval.  (V.A.C.S.
540-22   Art. 6573b, Secs.  15(a)(1), (2), (c), (d).)
540-23         Sec. 1303.252.  CONTENTS OF EVIDENCE OF COVERAGE. (a)
540-24   Evidence of coverage under a residential service contract must
540-25   contain a clear and complete statement, if the evidence is a
540-26   contract, or a reasonably complete facsimile, if the evidence is a
540-27   certificate, of:
 541-1               (1)  the services or benefits to which the contract
 541-2   holder is entitled;
 541-3               (2)  any limitation on the services, kinds of services,
 541-4   or benefits to be provided, including a deductible or co-payment
 541-5   provision;
 541-6               (3)  where and in what manner information is available
 541-7   on how to obtain services;
 541-8               (4)  the period during which the coverage is in effect;
 541-9               (5)  the residential service company's agreement to
541-10   perform services on the contract holder's telephone request to the
541-11   company, without a requirement that a claim form or application be
541-12   filed before the services are performed;
541-13               (6)  the company's agreement that, under normal
541-14   circumstances, the company will initiate the performance of
541-15   services within 48 hours after the contract holder requests the
541-16   services; and
541-17               (7)  any service fee to be charged for a service call.
541-18         (b)  Evidence of coverage may not contain a provision that
541-19   encourages misrepresentation or that is unjust, unfair,
541-20   inequitable, misleading, deceptive, or false. (V.A.C.S. Art. 6573b,
541-21   Sec.  15(a)(3).)
541-22         Sec. 1303.253.  SCHEDULE OF CHARGES. (a)  A residential
541-23   service company may not use in conjunction with a residential
541-24   service contract a schedule of charges for services covered under
541-25   the contract or an amendment to that schedule until a copy of the
541-26   schedule or amendment is filed with and approved by the commission.
541-27         (b)  The commission shall approve a schedule of charges if
 542-1   the commission determines that the schedule is reasonably related
 542-2   to the amount, term, and conditions of the contract.
 542-3         (c)  If the commission determines that the schedule of
 542-4   charges is not reasonably related to the contract as described by
 542-5   Subsection (b), the commission may reject the schedule.  If the
 542-6   commission rejects the schedule, the commission shall notify the
 542-7   company of the rejection and shall specify in detail the reason for
 542-8   the rejection.
 542-9         (d)  A residential service company whose schedule of charges
542-10   is rejected by the commission may request a hearing on the
542-11   commission's decision to be held as soon as reasonably possible.
542-12   Not later than the 60th day after the date of the hearing, the
542-13   commission by written order shall approve or reject the schedule.
542-14   If the schedule is rejected, the commission shall state in the
542-15   order the grounds for the rejection.  (V.A.C.S. Art. 6573b, Sec.
542-16   15(b).)
542-17         Sec. 1303.254.  REMEDIES NOT WAIVED; NOTICE. (a)  A contract
542-18   holder does not waive under a residential service contract a remedy
542-19   that the holder may have under another law against another person.
542-20         (b)  A person may not sell or offer to sell a residential
542-21   service contract unless the contract contains the following
542-22   statement in at least 10-point bold type above or adjacent to the
542-23   signature of the buyer:
542-24         NOTICE:  YOU THE BUYER HAVE OTHER RIGHTS AND REMEDIES
542-25         UNDER THE TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER
542-26         PROTECTION ACT WHICH ARE IN ADDITION TO ANY REMEDY
542-27         WHICH MAY BE AVAILABLE UNDER THIS CONTRACT.
 543-1         FOR MORE INFORMATION CONCERNING YOUR RIGHTS, CONTACT
 543-2         THE CONSUMER PROTECTION DIVISION OF THE ATTORNEY
 543-3         GENERAL'S OFFICE, YOUR LOCAL DISTRICT OR COUNTY
 543-4         ATTORNEY OR THE ATTORNEY OF YOUR CHOICE.
 543-5   (V.A.C.S. Art. 6573b, Secs. 16(a), (b) (part).)
 543-6         Sec. 1303.255.  CANCELLATION OF CONTRACT. A residential
 543-7   service company may not cancel a residential service contract
 543-8   during the initial term for which the contract is issued unless:
 543-9               (1)  the contract holder does not pay a fee or charge
543-10   due under the terms of the contract;
543-11               (2)  the contract holder engages in fraud or
543-12   misrepresentation of facts material to the issuance of the
543-13   contract; or
543-14               (3)  an interest in the residential property covered
543-15   under the contract is sold, and the contract is contingent on an
543-16   interest in the property not being sold.  (V.A.C.S. Art. 6573b,
543-17   Sec. 17.)
543-18           (Sections 1303.256-1303.300 reserved for expansion)
543-19                   SUBCHAPTER G.  PROHIBITED PRACTICES
543-20         Sec. 1303.301.  FALSE OR DECEPTIVE STATEMENTS PROHIBITED. (a)
543-21   A residential service company may not cause or permit the use of:
543-22               (1)  a false or misleading advertisement or
543-23   solicitation; or
543-24               (2)  any deceptive evidence of coverage.
543-25         (b)  Unless a residential service company is licensed as an
543-26   insurer, the company may not use in the company's name, contracts,
543-27   or literature the word "insurance," "casualty," "surety," or
 544-1   "mutual" or another word that is:
 544-2               (1)  descriptive of the insurance, casualty, or surety
 544-3   business; or
 544-4               (2)  deceptively similar to the name or description of
 544-5   an insurance or surety corporation or another residential service
 544-6   company engaging in business in this state.  (V.A.C.S. Art. 6573b,
 544-7   Secs. 11(a), (b).)
 544-8         Sec. 1303.302.  CERTAIN CONDITIONAL SALES OF PROPERTY
 544-9   PROHIBITED. (a)  A seller of a residential property or the seller's
544-10   agent may not condition the sale of the property on the buyer's
544-11   purchase of a residential service contract.
544-12         (b)  A seller of a residential property or the seller's agent
544-13   shall provide to the buyer a statement that clearly and
544-14   conspicuously states that:
544-15               (1)  the purchase of a residential service contract is
544-16   optional; and
544-17               (2)  the buyer may purchase similar coverage through
544-18   another residential service company or insurance company authorized
544-19   to engage in business in this state.  (V.A.C.S. Art. 6573b, Sec.
544-20   11(e).)
544-21         Sec. 1303.303.  CERTAIN CHARGES WITHOUT CONSENT PROHIBITED.
544-22   Unless a homeowner, lessor, or renter consents in writing, a
544-23   residential service company or the company's agent may not
544-24   knowingly charge the homeowner, lessor, or renter for duplication
544-25   of coverage or duties required by:
544-26               (1)  state or federal law, including coverage under
544-27   Subchapter H, Chapter 1201;
 545-1               (2)  a warranty expressly issued by a manufacturer or
 545-2   seller of a product; or
 545-3               (3)  an implied warranty enforceable against a lessor,
 545-4   seller, or manufacturer of a product. (V.A.C.S. Art. 6573b, Sec.
 545-5   11(f).)
 545-6         Sec. 1303.304.  CERTAIN PAYMENTS BY RESIDENTIAL SERVICE
 545-7   COMPANY PROHIBITED. (a)  A residential service company may not
 545-8   directly or indirectly pay, as an inducement or compensation for
 545-9   the issuance, purchase, or acquisition of a residential service
545-10   contract, a commission or other consideration to an agent,
545-11   representative, attorney, or employee of an owner or prospective
545-12   owner of a residential property for which a residential service
545-13   contract has been or will be issued.
545-14         (b)  Notwithstanding Subsection (a), a residential service
545-15   company may pay a reasonable amount for the sale, advertising,
545-16   inspection, or processing of a residential service contract.
545-17   (V.A.C.S. Art. 6573b, Sec. 12.)
545-18           (Sections 1303.305-1303.350 reserved for expansion)
545-19         SUBCHAPTER H.  DISCIPLINARY ACTION AND OTHER PROCEDURES
545-20         Sec. 1303.351.  DISCIPLINARY POWERS OF COMMISSION. The
545-21   commission may suspend or revoke a license issued to a residential
545-22   service company under this chapter if the commission determines
545-23   that a ground for discipline exists under Section 1303.352.
545-24   (V.A.C.S. Art. 6573b, Sec. 18(a) (part).)
545-25         Sec. 1303.352.  GROUNDS FOR DISCIPLINARY ACTION. (a)  The
545-26   commission may discipline a residential service company under
545-27   Section 1303.351 if the continued operation of the company would be
 546-1   hazardous to its contract holders or if the company:
 546-2               (1)  operates in conflict with its basic organizational
 546-3   document or in a manner that is contrary to that described in and
 546-4   reasonably inferred from information submitted under Section
 546-5   1303.103, unless  an amendment to the information has been filed
 546-6   with and approved by the commission;
 546-7               (2)  issues evidence of coverage that does not comply
 546-8   with Sections 1303.251 and 1303.252;
 546-9               (3)  uses a schedule of charges that does not comply
546-10   with Section 1303.253;
546-11               (4)  is not financially responsible and may be
546-12   reasonably expected to be unable to meet the company's obligations
546-13   to contract holders;
546-14               (5)  did not comply with Subchapter D;
546-15               (6)  advertised or marketed the company's services in a
546-16   false, misrepresentative, misleading, deceptive, or unfair manner;
546-17   or
546-18               (7)  otherwise did not substantially comply with this
546-19   chapter or a rule adopted under this chapter.
546-20         (b)  Subsection (a)(6) applies to any advertising or
546-21   marketing conducted on behalf of a residential service company by
546-22   another person.  (V.A.C.S. Art. 6573b, Sec. 18(a) (part).)
546-23         Sec. 1303.353.  DUTIES AFTER LICENSE REVOCATION. (a)
546-24   Immediately after the effective date of an order revoking a
546-25   residential service company's license, the company:
546-26               (1)  shall wind up its affairs;
546-27               (2)  may not engage in further advertising or
 547-1   solicitation; and
 547-2               (3)  may not conduct further business except as may be
 547-3   essential to the orderly conclusion of the company's affairs.
 547-4         (b)  Notwithstanding Subsection (a), to provide contract
 547-5   holders with the greatest practical opportunity to obtain services
 547-6   for which they contracted, the commission by written order may
 547-7   permit further operation of the residential service company as the
 547-8   commission determines is in the best interests of the contract
 547-9   holders. (V.A.C.S. Art. 6573b, Sec. 18(b).)
547-10         Sec.  1303.354. JUDICIAL REVIEW. (a)  A person who is
547-11   adversely affected by a rule or decision of the commission may file
547-12   in a district court in Travis County a petition stating the
547-13   particular objection to the rule or decision.  The commission is a
547-14   defendant in the action.
547-15         (b)  The petition must be filed not later than the 20th day
547-16   after the date the commission enters an order.
547-17         (c)  The district court may not enjoin or stay the
547-18   commission's decision except on application to that court after
547-19   notice to the commission.
547-20         (d)  The substantial evidence rule applies to the proceedings
547-21   in the district court.
547-22         (e)  Each party to the action may appeal from the district
547-23   court.  The appeal takes precedence in the appellate court over all
547-24   actions of a different character pending in that court.  The
547-25   commission is not required to give an appeal bond in an action
547-26   arising under this section.  (V.A.C.S. Art. 6573b, Sec. 20.)
547-27           (Sections 1303.355-1303.400 reserved for expansion)
 548-1           SUBCHAPTER I.  PENALTIES AND ENFORCEMENT PROVISIONS
 548-2         Sec. 1303.401.  HAZARDOUS FINANCIAL CONDITION OF RESIDENTIAL
 548-3   SERVICE COMPANY. (a)  If the financial condition of a residential
 548-4   service company indicates that its continued operation may be
 548-5   hazardous to its contract holders or creditors or to the public,
 548-6   the commission may, after notice of hearing, order the company to
 548-7   take reasonably necessary action to remedy the condition,
 548-8   including:
 548-9               (1)  reducing the total amount of present and potential
548-10   liability for benefits by reinsurance or by obtaining an
548-11   appropriate bond from an admitted carrier or a surplus line
548-12   carrier;
548-13               (2)  reducing  the volume of new business being
548-14   accepted;
548-15               (3)  reducing expenses by specified methods;
548-16               (4)  suspending or limiting the writing of new business
548-17   for a period of time; or
548-18               (5)  increasing the company's net worth by
548-19   contribution.
548-20         (b)  The commission by rule may establish:
548-21               (1)  uniform standards and criteria for early warning
548-22   that the continued operation of a residential service company may
548-23   be hazardous to its contract holders or creditors or to the public;
548-24   and
548-25               (2)  standards for evaluating the financial condition
548-26   of a residential service company that are consistent with the
548-27   purposes  described in Subsection (a).  (V.A.C.S. Art. 6573b, Sec.
 549-1   14.)
 549-2         Sec. 1303.402.  APPOINTMENT OF RECEIVER. (a)  If in the
 549-3   commission's opinion the continued operation of a residential
 549-4   service company would be hazardous to its contract holders or the
 549-5   public, the commission may request a district court of Travis
 549-6   County to appoint a receiver.
 549-7         (b)  After adequate notice and a hearing, if the court
 549-8   determines that a receiver should be appointed to protect the
 549-9   rights of the contract holders or the public, the court shall issue
549-10   an order appointing a receiver. The order must clearly state
549-11   whether the receiver has the power to:
549-12               (1)  manage and operate the residential service
549-13   company's business generally; or
549-14               (2)  manage only the residential service company's
549-15   finances.  (V.A.C.S. Art. 6573b, Sec. 19.)
549-16         Sec. 1303.403.  INJUNCTIVE RELIEF. (a)  The commission may
549-17   bring an action in the name of the state in a district court of
549-18   Travis County for a restraining order, injunction, or other relief
549-19   the court determines is appropriate if it appears to the commission
549-20   that:
549-21               (1)  a residential service company is violating or has
549-22   violated this chapter or a rule adopted under this chapter; and
549-23               (2)  bringing the action is in the public interest.
549-24         (b)  The commission has exclusive authority to bring an
549-25   action under this section.
549-26         (c)  On application for injunctive relief and a finding that
549-27   a residential service company is violating or has violated this
 550-1   chapter or a rule adopted under this chapter, the court shall grant
 550-2   the injunctive relief that the facts warrant.  The court shall
 550-3   grant the relief without a bond.  (V.A.C.S. Art. 6573b, Sec. 22.)
 550-4         Sec. 1303.404.  CIVIL PENALTY. (a)  A person who violates
 550-5   this chapter is liable for a civil penalty in an amount not to
 550-6   exceed $2,500 for each violation or $50,000 in the aggregate for
 550-7   all violations of a similar nature.
 550-8         (b)  The commission may bring an action to collect a civil
 550-9   penalty under this section.
550-10         (c)  For purposes of this section, violations are of a
550-11   similar nature if the violations consist of the same or a similar
550-12   course of conduct, action, or practice, regardless of the number of
550-13   times the conduct, act, or practice occurred.  (V.A.C.S.
550-14   Art. 6573b, Sec. 23.)
550-15         Sec. 1303.405.  DECEPTIVE TRADE PRACTICE. A violation of this
550-16   chapter is actionable by a consumer as a deceptive trade practice
550-17   under Subchapter E, Chapter 17, Business & Commerce Code.
550-18   (V.A.C.S. Art. 6573b, Secs. 16(b) (part), 23A.)
550-19         Sec. 1303.406.  CRIMINAL PENALTY. (a)  A person commits an
550-20   offense if the person:
550-21               (1)  wilfully violates this chapter or a rule adopted
550-22   under this chapter; or
550-23               (2)  knowingly makes a false statement with respect to
550-24   a report or a statement required by this chapter.
550-25         (b)  An offense under this section is a Class B misdemeanor.
550-26   (V.A.C.S. Art. 6573b, Sec. 21 (part).)
550-27         Sec. 1303.407.  ADDITIONAL PENALTY. A residential service
 551-1   company that engages in business in violation of this chapter shall
 551-2   pay $100 for each day the company continues to write new business
 551-3   while in violation of this chapter. (V.A.C.S. Art. 6573b, Sec. 21
 551-4   (part).)
 551-5                CHAPTER 1304.  SERVICE CONTRACT PROVIDERS
 551-6                    SUBCHAPTER A.  GENERAL PROVISIONS
 551-7   Sec. 1304.001.  SHORT TITLE 
 551-8   Sec. 1304.002.  DEFINITIONS 
 551-9   Sec. 1304.003.  SERVICE CONTRACT 
551-10   Sec. 1304.004.  EXEMPTIONS 
551-11   Sec. 1304.005.  EXEMPTIONS FROM CERTAIN OTHER LAWS 
551-12   Sec. 1304.006.  PURCHASE REQUIREMENT PROHIBITED 
551-13   Sec. 1304.007.  GENERAL INVESTIGATIVE POWER OF
551-14                     COMMISSIONER 
551-15           (Sections 1304.008-1304.050 reserved for expansion)
551-16        SUBCHAPTER B.  SERVICE CONTRACT PROVIDERS ADVISORY BOARD
551-17   Sec. 1304.051.  SERVICE CONTRACT PROVIDERS ADVISORY BOARD 
551-18   Sec. 1304.052.  ADVISORY BOARD DUTIES 
551-19   Sec. 1304.053.  TERMS; VACANCY 
551-20   Sec. 1304.054.  PRESIDING OFFICER 
551-21   Sec. 1304.055.  COMPENSATION; REIMBURSEMENT 
551-22   Sec. 1304.056.  MEETINGS 
551-23   Sec. 1304.057.  VOTE REQUIRED FOR ACTION 
551-24           (Sections 1304.058-1304.100 reserved for expansion)
551-25                SUBCHAPTER C.  REGISTRATION REQUIREMENTS
551-26   Sec. 1304.101.  REGISTRATION REQUIRED; EXEMPTION FROM
551-27                     OTHER LICENSING REQUIREMENTS 
 552-1   Sec. 1304.102.  APPLICATION FOR REGISTRATION 
 552-2   Sec. 1304.103.  ANNUAL REGISTRATION FEES 
 552-3   Sec. 1304.104.  INFORMATION CONCERNING NUMBER OF SERVICE
 552-4                     CONTRACTS SOLD 
 552-5           (Sections 1304.105-1304.150 reserved for expansion)
 552-6          SUBCHAPTER D.  PRACTICE BY SERVICE CONTRACT PROVIDERS
 552-7   Sec. 1304.151.  FINANCIAL SECURITY REQUIREMENTS 
 552-8   Sec. 1304.152.  REIMBURSEMENT INSURANCE POLICY 
 552-9   Sec. 1304.153.  APPOINTMENT AND RESPONSIBILITIES OF
552-10                     ADMINISTRATOR 
552-11   Sec. 1304.154.  PROVIDER REQUIREMENTS 
552-12   Sec. 1304.155.  PROVIDER RECORDS 
552-13   Sec. 1304.156.  FORM OF SERVICE CONTRACT AND REQUIRED
552-14                     DISCLOSURES 
552-15   Sec. 1304.157.  RETURNING A SERVICE CONTRACT 
552-16   Sec. 1304.158.  VOIDING A SERVICE CONTRACT 
552-17   Sec. 1304.159.  CANCELING A SERVICE CONTRACT 
552-18   Sec. 1304.160.  LIMITATIONS ON PROVIDER NAME 
552-19   Sec. 1304.161.  MISLEADING STATEMENTS PROHIBITED 
552-20           (Sections 1304.162-1304.200 reserved for expansion)
552-21                   SUBCHAPTER E.  DISCIPLINARY ACTION
552-22   Sec. 1304.201.  DISCIPLINARY ACTION 
552-23   Sec. 1304.202.  INJUNCTIVE RELIEF; CIVIL PENALTY 
552-24   Sec. 1304.203.  MULTIPLE VIOLATIONS 
552-25   Sec. 1304.204.  ADMINISTRATIVE PROCEDURE 
552-26                CHAPTER 1304.  SERVICE CONTRACT PROVIDERS
552-27                    SUBCHAPTER A.  GENERAL PROVISIONS
 553-1         Sec. 1304.001.  SHORT TITLE. This chapter may be cited as the
 553-2   Service Contract Regulatory Act.  (V.A.C.S. Art. 9034, Sec. 1, as
 553-3   added Acts 76th Leg., R.S., Ch. 1559.)
 553-4         Sec. 1304.002.  DEFINITIONS. In this chapter:
 553-5               (1)  "Administrator" means the person responsible for
 553-6   the administration of a service contract.  The term includes a
 553-7   person responsible for any filing required by this chapter.
 553-8               (2)  "Commission" means the Texas Commission of
 553-9   Licensing and Regulation.
553-10               (3)  "Commissioner" means the commissioner of licensing
553-11   and regulation.
553-12               (4)  "Consumer" means an individual who, for a purpose
553-13   other than resale, buys tangible personal property that is:
553-14                     (A)  distributed in commerce; and
553-15                     (B)  normally used for personal, family, or
553-16   household purposes and not for business or research purposes.
553-17               (5)  "Department" means the Texas Department of
553-18   Licensing and Regulation.
553-19               (6)  "Person" means an individual or an association,
553-20   company, corporation, partnership, or other group.
553-21               (7)  "Provider" means a person who is contractually
553-22   obligated to a service contract holder under the terms of a service
553-23   contract.
553-24               (8)  "Reimbursement insurance policy" means a policy of
553-25   insurance issued to a provider to:
553-26                     (A)  reimburse the provider under a service
553-27   contract the provider issued or sold; or
 554-1                     (B)  pay on behalf of the provider all covered
 554-2   contractual obligations that are incurred by the provider under a
 554-3   service contract the provider issued or sold and that the provider
 554-4   does not perform.
 554-5               (9)  "Service contract holder" means a person who
 554-6   purchases or otherwise holds a service contract.  (V.A.C.S.
 554-7   Art. 9034, Secs. 2(1), (2), (3), (4), (5), (7), (9), (11), (13), as
 554-8   added Acts 76th Leg., R.S., Ch. 1559.)
 554-9         Sec. 1304.003.  SERVICE CONTRACT. (a)  In this chapter,
554-10   "service contract" means an agreement:
554-11               (1)  that is entered into for a separately stated
554-12   consideration and for a specified term; and
554-13               (2)  under which a provider agrees to repair, replace,
554-14   or maintain a product, or provide indemnification for the repair,
554-15   replacement, or maintenance of a product, for operational or
554-16   structural failure caused by a defect in materials or workmanship
554-17   or by normal wear.
554-18         (b)  A service contract may also provide for:
554-19               (1)  incidental payment or indemnity under limited
554-20   circumstances, including towing, rental, and emergency road
554-21   service; or
554-22               (2)  the repair or replacement of a product for damage
554-23   resulting from a power surge or for accidental damage incurred in
554-24   handling the product.  (V.A.C.S. Art. 9034, Sec. 2(12), as added
554-25   Acts 76th Leg., R.S., Ch. 1559.)
554-26         Sec. 1304.004.  EXEMPTIONS. (a)  In this section:
554-27               (1)  "Maintenance agreement" means an agreement that
 555-1   provides only for scheduled maintenance for a limited period.
 555-2               (2)  "Warranty" means an undertaking made solely by the
 555-3   manufacturer or importer of a product or the seller of a product or
 555-4   service that:
 555-5                     (A)  guarantees indemnity for a defective part,
 555-6   mechanical or electrical breakdown, or labor cost or guarantees
 555-7   another remedial measure, including the repair or replacement of
 555-8   the product or the repetition of service;
 555-9                     (B)  is made without payment of additional
555-10   consideration;
555-11                     (C)  is not negotiated or separated from the sale
555-12   of the product or service; and
555-13                     (D)  is incidental to the sale of the product or
555-14   service.
555-15         (b)  This chapter does not apply to:
555-16               (1)  a warranty;
555-17               (2)  a maintenance agreement;
555-18               (3)  a service contract sold or offered for sale to a
555-19   person who is not a consumer;
555-20               (4)  a residential service contract sold by an entity
555-21   licensed by the Texas Real Estate Commission under Chapter 1303;
555-22               (5)  an agreement issued by an automobile service club
555-23   that holds a certificate of authority under Chapter 722,
555-24   Transportation Code;
555-25               (6)  a service contract sold by a motor vehicle dealer
555-26   on a motor vehicle sold by that dealer, if the dealer:
555-27                     (A)  is the provider;
 556-1                     (B)  is licensed as a motor vehicle dealer under
 556-2   Chapter 2301; and
 556-3                     (C)  covers its obligations under the service
 556-4   contract with a reimbursement insurance policy; or
 556-5               (7)  a contract offered by a local exchange telephone
 556-6   company that provides for the repair of inside telephone wiring,
 556-7   if:
 556-8                     (A)  the contract term does not exceed one month;
 556-9   and
556-10                     (B)  the consumer can terminate the contract
556-11   before a new contract term begins without liability except for
556-12   payment of charges for the term that has begun.  (V.A.C.S.
556-13   Art. 9034, Secs. 2(6), (14), 5(e), as added Acts 76th Leg., R.S.,
556-14   Ch. 1559.)
556-15         Sec. 1304.005.  EXEMPTIONS FROM CERTAIN OTHER LAWS.
556-16   Marketing, selling, offering for sale, issuing, making, proposing
556-17   to make, and administering a service contract are exempt from:
556-18               (1)  Chapter 1303;
556-19               (2)  Chapter 722, Transportation Code; and
556-20               (3)  the Insurance Code and other laws of this state
556-21   regulating the business of insurance.  (V.A.C.S. Art. 9034, Sec.
556-22   5(d), as added Acts 76th Leg., R.S., Ch. 1559.)
556-23         Sec. 1304.006.  PURCHASE REQUIREMENT PROHIBITED. A person,
556-24   including a bank, a savings and loan association, a lending
556-25   institution, or the manufacturer or seller of a product, may not
556-26   require the purchase of a service contract as a condition of a loan
556-27   or the sale of property.  (V.A.C.S. Art. 9034, Sec. 13(b), as added
 557-1   Acts 76th Leg., R.S., Ch. 1559.)
 557-2         Sec. 1304.007.  GENERAL INVESTIGATIVE POWER OF COMMISSIONER.
 557-3   (a)  The commissioner may investigate a  provider, administrator,
 557-4   or other person as necessary to enforce this chapter and protect
 557-5   service contract holders in this state.
 557-6         (b)  On request of the commissioner, a provider shall make
 557-7   the records required by Section 1304.155 available to the
 557-8   commissioner as necessary to enable the commissioner to reasonably
 557-9   determine compliance with this chapter.  (V.A.C.S. Art. 9034, Sec.
557-10   3(b), as added Acts 76th Leg., R.S., Ch. 1559.)
557-11           (Sections 1304.008-1304.050 reserved for expansion)
557-12        SUBCHAPTER B.  SERVICE CONTRACT PROVIDERS ADVISORY BOARD
557-13         Sec. 1304.051.  SERVICE CONTRACT PROVIDERS ADVISORY BOARD.
557-14   (a)  The Service Contract Providers Advisory Board consists of six
557-15   members appointed by the commissioner and one ex officio nonvoting
557-16   member.
557-17         (b)  Of the appointed members:
557-18               (1)  two must be officers, directors, or employees of a
557-19   provider of service contracts that have been approved by the
557-20   commissioner;
557-21               (2)  two must be officers, directors, or employees of a
557-22   retail outlet or other entity in this state that provides to
557-23   consumers service contracts approved by the commissioner for sale
557-24   to consumers;
557-25               (3)  one must be an officer, director, or employee of
557-26   an entity authorized by the Texas Department of Insurance to sell
557-27   reimbursement insurance policies; and
 558-1               (4)  one must be a resident of this state who holds, as
 558-2   a consumer, a service contract that is in force in this state on
 558-3   the date of the member's appointment and was issued by a provider
 558-4   registered under this chapter.
 558-5         (c)  The commissioner or the commissioner's designee serves
 558-6   as an ex officio nonvoting member of the advisory board.  (V.A.C.S.
 558-7   Art. 9034, Secs. 4(b), (d) (part), as added Acts 76th Leg., R.S.,
 558-8   Ch. 1559.)
 558-9         Sec. 1304.052.  ADVISORY BOARD DUTIES. (a)  The advisory
558-10   board shall advise the commissioner in adopting rules and in
558-11   administering and enforcing this chapter.
558-12         (b)  The advisory board shall advise the commission in
558-13   setting fees under this chapter.  (V.A.C.S. Art. 9034, Sec. 4(a),
558-14   as added Acts 76th Leg., R.S., Ch. 1559.)
558-15         Sec. 1304.053.  TERMS; VACANCY. (a)  Appointed advisory board
558-16   members serve six-year terms, with the terms expiring on February 1
558-17   of odd-numbered years.
558-18         (b)  If a vacancy occurs during an appointed member's term,
558-19   the commissioner shall fill the vacancy for the remainder of the
558-20   unexpired term with a person who represents the same interests as
558-21   the predecessor. (V.A.C.S. Art. 9034, Secs. 4(c), (d) (part), as
558-22   added Acts 76th Leg., R.S., Ch. 1559.)
558-23         Sec. 1304.054.  PRESIDING OFFICER. The commissioner shall
558-24   designate one member of the advisory board to serve as presiding
558-25   officer.  (V.A.C.S. Art. 9034, Sec. 4(d) (part), as added Acts 76th
558-26   Leg., R.S., Ch. 1559.)
558-27         Sec. 1304.055.  COMPENSATION; REIMBURSEMENT. (a)  An advisory
 559-1   board member may not receive compensation for service on the
 559-2   advisory board.
 559-3         (b)  An advisory board member is entitled to reimbursement
 559-4   for actual and necessary expenses incurred in performing functions
 559-5   as an advisory board member, subject to any applicable limitation
 559-6   on reimbursement provided by the General Appropriations Act.
 559-7   (V.A.C.S. Art. 9034, Sec. 4(g), as added Acts 76th Leg., R.S., Ch.
 559-8   1559.)
 559-9         Sec. 1304.056.  MEETINGS. (a)  The advisory board shall meet
559-10   at least once every six months and may meet at other times at the
559-11   call of the presiding officer.
559-12         (b)  The advisory board shall meet at a location in this
559-13   state designated by the advisory board.  (V.A.C.S. Art. 9034, Sec.
559-14   4(e), as added Acts 76th Leg., R.S., Ch. 1559.)
559-15         Sec. 1304.057.  VOTE REQUIRED FOR ACTION. A decision of the
559-16   advisory board is not effective unless it receives the affirmative
559-17   vote of at least four members.  (V.A.C.S. Art. 9034, Sec. 4(f), as
559-18   added Acts 76th Leg., R.S., Ch. 1559.)
559-19           (Sections 1304.058-1304.100 reserved for expansion)
559-20                SUBCHAPTER C.  REGISTRATION REQUIREMENTS
559-21         Sec. 1304.101.  REGISTRATION REQUIRED; EXEMPTION FROM OTHER
559-22   LICENSING REQUIREMENTS. (a)  A person may not operate as a provider
559-23   of service contracts sold in this state unless the person is
559-24   registered with the department.
559-25         (b)  Except for the registration requirement of this
559-26   subchapter, a provider, service contract seller, administrator, or
559-27   other person who markets, sells, or offers to sell service
 560-1   contracts is exempt from any licensing requirement of this state
 560-2   that relates to an activity regulated under this chapter.
 560-3   (V.A.C.S. Art. 9034, Sec. 5(a), as added Acts 76th Leg., R.S., Ch.
 560-4   1559.)
 560-5         Sec. 1304.102.  APPLICATION FOR REGISTRATION. (a)  An
 560-6   applicant for registration must submit an application to the
 560-7   commissioner.
 560-8         (b)  The application must:
 560-9               (1)  be in the form prescribed by the commissioner; and
560-10               (2)  include evidence satisfactory to the commissioner
560-11   of compliance with the applicable financial security requirements
560-12   prescribed by Section 1304.151.  (V.A.C.S. Art. 9034, Sec. 5(b), as
560-13   added Acts 76th Leg., R.S., Ch. 1559.)
560-14         Sec. 1304.103.  ANNUAL REGISTRATION FEES. (a)  The
560-15   commissioner shall develop a tiered schedule of annual registration
560-16   fees under which a provider's registration fee is based on the
560-17   number of service contracts the provider sold in this state during
560-18   the preceding 12-month period.
560-19         (b)  The commission shall set the amounts of the fees to
560-20   cover the costs of administering this chapter.  The maximum fee may
560-21   not exceed $2,000.
560-22         (c)  To be registered, a provider must pay the appropriate
560-23   annual registration fee.  (V.A.C.S. Art. 9034, Sec. 5(c) (part), as
560-24   added Acts 76th Leg., R.S., Ch. 1559.)
560-25         Sec. 1304.104.  INFORMATION CONCERNING NUMBER OF SERVICE
560-26   CONTRACTS SOLD. Information concerning the number of service
560-27   contracts sold by a provider that is submitted under Section
 561-1   1304.103:
 561-2               (1)  is a trade secret to which Section 552.110,
 561-3   Government Code, applies; and
 561-4               (2)  may be used only by the commissioner and the
 561-5   department in developing the tiered fee schedule under Section
 561-6   1304.103. (V.A.C.S. Art. 9034, Sec. 5(c) (part), as added Acts 76th
 561-7   Leg., R.S., Ch. 1559.)
 561-8           (Sections 1304.105-1304.150 reserved for expansion)
 561-9          SUBCHAPTER D.  PRACTICE BY SERVICE CONTRACT PROVIDERS
561-10         Sec. 1304.151.  FINANCIAL SECURITY REQUIREMENTS. (a)  To
561-11   ensure the faithful performance of a provider's obligations to its
561-12   service contract holders, each provider must:
561-13               (1)  insure the provider's service contracts under a
561-14   reimbursement insurance policy issued by an insurer authorized to
561-15   transact insurance in this state or by a surplus lines insurer
561-16   eligible to place coverage in this state under Article 1.14-2,
561-17   Insurance Code;
561-18               (2)  maintain a funded reserve account covering the
561-19   provider's obligations under its service contracts that are issued
561-20   and outstanding in this state and place in trust with the
561-21   commissioner a financial security deposit consisting of:
561-22                     (A)  a surety bond issued by an authorized
561-23   surety;
561-24                     (B)  securities of the type eligible for deposit
561-25   by an authorized insurer in this state;
561-26                     (C)  a statutory deposit of cash or cash
561-27   equivalents;
 562-1                     (D)  a letter of credit issued by a qualified
 562-2   financial institution; or
 562-3                     (E)  another form of security prescribed by rules
 562-4   adopted by the commissioner; or
 562-5               (3)  maintain, or have a parent company that maintains,
 562-6   a net worth or stockholders' equity of at least $100 million.
 562-7         (b)  If the provider ensures its obligations under Subsection
 562-8   (a)(2), the amount maintained in the reserve account may not be
 562-9   less than an amount equal to 40 percent of the gross consideration
562-10   the provider received from consumers from the sale of all service
562-11   contracts issued and outstanding in this state, minus any claims
562-12   paid.  The commissioner may review and examine the reserve account.
562-13   The amount of the security deposit may not be less than the greater
562-14   of:
562-15               (1)  $25,000; or
562-16               (2)  an amount equal to five percent of the gross
562-17   consideration the provider received from consumers from the sale of
562-18   all service contracts issued and outstanding in this state, minus
562-19   any claims paid.
562-20         (c)  If the provider ensures its obligations under Subsection
562-21   (a)(3), the provider must give to the commissioner on request:
562-22               (1)  a copy of the provider's or the provider's parent
562-23   company's most recent Form 10-K or Form 20-F filed with the
562-24   Securities and Exchange Commission within the preceding calendar
562-25   year; or
562-26               (2)  if the provider or the provider's parent company
562-27   does not file with the Securities and Exchange Commission, a copy
 563-1   of the provider's or the provider's parent company's audited
 563-2   financial statements showing a net worth of the provider or its
 563-3   parent company of at least $100 million.
 563-4         (d)  If the provider's parent company's Form 10-K, Form 20-F,
 563-5   or audited financial statements are filed to show that the provider
 563-6   meets the financial security requirement, the parent company shall
 563-7   agree to guarantee the obligations of the provider relating to
 563-8   service contracts sold by the provider in this state.
 563-9         (e)  The commissioner may not require a provider to meet any
563-10   additional financial security requirement.  (V.A.C.S. Art. 9034,
563-11   Sec. 6, as added Acts 76th Leg., R.S., Ch. 1559.)
563-12         Sec. 1304.152.  REIMBURSEMENT INSURANCE POLICY. (a)  A
563-13   reimbursement insurance policy that a provider uses to comply with
563-14   Section 1304.151(a)(1) must state that:
563-15               (1)  the insurer that issued the policy shall:
563-16                     (A)  reimburse or pay on behalf of the provider
563-17   any covered amount the provider is legally obligated to pay; or
563-18                     (B)  provide the service that the provider is
563-19   legally obligated to perform according to the provider's
563-20   contractual obligations under the insured service contract; and
563-21               (2)  if the covered service is not provided to a
563-22   service contract holder not later than the 60th day after the date
563-23   of proof of loss, the insurer shall pay the covered amount directly
563-24   to the service contract holder or provide the required service.
563-25         (b)  The insurer may not cancel the policy until the insurer
563-26   delivers to the provider a written notice of cancellation that
563-27   complies with the notice requirements prescribed by Articles
 564-1   21.49-2A and 21.49-2B, Insurance Code, for cancellation of an
 564-2   insurance policy under those articles.  The provider shall forward
 564-3   a copy of the cancellation notice to the commissioner not later
 564-4   than the 15th business day after the date the notice is delivered
 564-5   to the provider.  Cancellation of the policy does not reduce the
 564-6   insurer's responsibility for a service contract issued by the
 564-7   provider and insured under the policy before the date of the
 564-8   cancellation.
 564-9         (c)  A provider is considered the agent of an insurer that
564-10   issues a reimbursement insurance policy for purposes of obligating
564-11   the insurer to the service contract holder in accordance with the
564-12   service contract and this chapter.
564-13         (d)  This chapter does not prevent or limit the right of the
564-14   insurer to seek indemnification or subrogation against a provider
564-15   for any amount the insurer pays or is obligated to pay to a service
564-16   contract holder on behalf of the provider.  (V.A.C.S. Art. 9034,
564-17   Sec. 7, as added Acts 76th Leg., R.S., Ch. 1559.)
564-18         Sec. 1304.153.  APPOINTMENT AND RESPONSIBILITIES OF
564-19   ADMINISTRATOR. A provider may appoint an administrator or designate
564-20   a person to be responsible for:
564-21               (1)  all or any part of the administration or sale of
564-22   service contracts; and
564-23               (2)  compliance with this chapter.  (V.A.C.S.
564-24   Art. 9034, Sec. 8(a), as added Acts 76th Leg., R.S., Ch. 1559.)
564-25         Sec. 1304.154.  PROVIDER REQUIREMENTS. A provider may not
564-26   sell, offer for sale, or issue a service contract in this state
564-27   unless the provider gives the service contract holder:
 565-1               (1)  a receipt for, or other written evidence of, the
 565-2   purchase of the contract; and
 565-3               (2)  a copy of the contract within a reasonable period
 565-4   after the date of purchase.  (V.A.C.S. Art. 9034, Sec. 8(b), as
 565-5   added Acts 76th Leg., R.S., Ch. 1559.)
 565-6         Sec. 1304.155.  PROVIDER RECORDS. (a)  A provider shall
 565-7   maintain accurate accounts, books, and other records regarding
 565-8   transactions regulated under this chapter.  The provider's records
 565-9   must include:
565-10               (1)  a copy of each unique form of service contract
565-11   sold;
565-12               (2)  the name and address of each service contract
565-13   holder who provided the holder's name and address;
565-14               (3)  a list of each location at which the provider's
565-15   service contracts are marketed, sold, or offered for sale; and
565-16               (4)  written claims files that contain at least the
565-17   date and a description of each claim related to the service
565-18   contracts.
565-19         (b)  The records required by this section may be maintained
565-20   in an electronic medium or through other recordkeeping technology.
565-21   If a record is not in a hard copy, the provider must be able to
565-22   reformat the record into a legible hard copy at the request of the
565-23   commissioner.
565-24         (c)  Except as provided by Subsection (d), a provider shall
565-25   retain the records required by this section until at least the
565-26   first anniversary of the expiration date of the specified period of
565-27   coverage under the service contract.
 566-1         (d)  A provider that discontinues business in this state
 566-2   shall retain its records until the provider furnishes the
 566-3   commissioner with proof satisfactory to the commissioner that the
 566-4   provider has discharged all obligations to service contract holders
 566-5   in this state.  (V.A.C.S. Art. 9034, Sec. 9, as added Acts 76th
 566-6   Leg., R.S., Ch. 1559.)
 566-7         Sec. 1304.156.  FORM OF SERVICE CONTRACT AND REQUIRED
 566-8   DISCLOSURES. (a)  A service contract marketed, sold, offered for
 566-9   sale, issued, made, proposed to be made, or administered in this
566-10   state must:
566-11               (1)  be written, printed, or typed in clear,
566-12   understandable language that is easy to read;
566-13               (2)  state the name and address of the provider;
566-14               (3)  state the purchase price of the contract and the
566-15   terms under which the contract is sold;
566-16               (4)  state the terms and restrictions governing
566-17   cancellation of the contract by the provider or the service
566-18   contract holder before the expiration date of the contract;
566-19               (5)  identify:
566-20                     (A)  any administrator, if the administrator is
566-21   not the provider;
566-22                     (B)  the contract seller; and
566-23                     (C)  the service contract holder, if the service
566-24   contract holder provides the holder's name;
566-25               (6)  state the amount of any deductible;
566-26               (7)  specify the products and services to be provided
566-27   under the contract and any limitation, exception, or exclusion;
 567-1               (8)  specify any restriction governing the
 567-2   transferability of the contract;
 567-3               (9)  state the duties of the service contract holder,
 567-4   including any duty to protect against any further damage and any
 567-5   requirement to follow the instructions in the owner's manual; and
 567-6               (10)  state whether the contract provides for or
 567-7   excludes consequential damages or preexisting conditions, if
 567-8   applicable.
 567-9         (b)  The identity of a person described by Subsection (a)(5)
567-10   is not required to be preprinted on the service contract and may be
567-11   added to the contract at the time of sale.
567-12         (c)  The purchase price is not required to be preprinted on
567-13   the service contract and may be negotiated with the service
567-14   contract holder at the time of sale.
567-15         (d)  A service contract insured under a reimbursement
567-16   insurance policy under Section 1304.151(a)(1) must:
567-17               (1)  state the name and address of the insurer;
567-18               (2)  state that the service contract holder may apply
567-19   for reimbursement directly to the insurer if a covered service is
567-20   not provided to the service contract holder by the provider not
567-21   later than the 60th day after the date of proof of loss; and
567-22               (3)  contain a statement substantially similar to the
567-23   following:  "Obligations of the provider under this service
567-24   contract are insured under a service contract reimbursement
567-25   insurance policy."
567-26         (e)  A service contract that is not insured under a
567-27   reimbursement insurance policy must contain a statement
 568-1   substantially similar to the following: "Obligations of the
 568-2   provider under this service contract are backed by the full faith
 568-3   and credit of the provider."  (V.A.C.S. Art. 9034, Secs. 10(a),
 568-4   (b), (c), (d), (e), (f) (part), (g), as added Acts 76th Leg., R.S.,
 568-5   Ch. 1559.)
 568-6         Sec. 1304.157.  RETURNING A SERVICE CONTRACT. A service
 568-7   contract must require the provider to allow the service contract
 568-8   holder to return the contract to the provider not later than:
 568-9               (1)  the 20th day after the date the contract is mailed
568-10   to the service contract holder; or
568-11               (2)  the 10th day after the date of delivery, if the
568-12   contract is delivered to the service contract holder at the time of
568-13   sale.  (V.A.C.S. Art. 9034, Sec. 11(a) (part), as added Acts 76th
568-14   Leg., R.S., Ch. 1559.)
568-15         Sec. 1304.158.  VOIDING A SERVICE CONTRACT. (a)  If a service
568-16   contract holder returns a service contract in accordance with
568-17   Section 1304.157 and a claim has not been made under the contract
568-18   before the contract is returned, the contract is void.
568-19         (b)  A service contract holder may void the service contract
568-20   at a later time as provided by the contract.
568-21         (c)  If a service contract is voided, the provider shall
568-22   refund to the service contract holder or credit to the account of
568-23   the service contract holder the full purchase price of the
568-24   contract. If the provider does not pay the refund or credit the
568-25   service contract holder's account before the 46th day after the
568-26   date the contract is returned to the provider, the provider is
568-27   liable to the service contract holder for a penalty each month an
 569-1   amount remains outstanding.  The monthly penalty may not exceed 10
 569-2   percent of the amount outstanding.
 569-3         (d)  The right to void a service contract is not
 569-4   transferable.  (V.A.C.S. Art. 9034, Secs. 11(a) (part), (b), as
 569-5   added Acts 76th Leg., R.S., Ch. 1559.)
 569-6         Sec. 1304.159.  CANCELING A SERVICE CONTRACT. (a)  A provider
 569-7   may cancel a service contract by mailing a written notice of
 569-8   cancellation to the service contract holder at the service contract
 569-9   holder's last known address according to the records of the
569-10   provider.  The provider must mail the notice before the fifth day
569-11   preceding the effective date of the cancellation.  The notice must
569-12   state the effective date of the cancellation and the reason for the
569-13   cancellation.
569-14         (b)  The provider is not required to provide prior notice of
569-15   cancellation if the service contract is canceled because of:
569-16               (1)  nonpayment of the consideration for the contract;
569-17               (2)  a material misrepresentation by the service
569-18   contract holder to the provider; or
569-19               (3)  a substantial breach of a duty by the service
569-20   contract holder relating to the covered product or its use.
569-21   (V.A.C.S. Art. 9034, Secs. 2(10), 10(f) (part), as added Acts 76th
569-22   Leg., R.S., Ch. 1559.)
569-23         Sec. 1304.160.  LIMITATIONS ON PROVIDER NAME. (a)  A provider
569-24   may not use a name that:
569-25               (1)  includes "insurance," "casualty," "surety," or
569-26   "mutual" or any other word descriptive of the insurance, casualty,
569-27   or surety business; or
 570-1               (2)  is deceptively similar to the name or description
 570-2   of an insurance or surety corporation or to the name of any other
 570-3   provider.
 570-4         (b)  A provider may include in its name "guaranty" or a
 570-5   similar word.
 570-6         (c)  This section does not apply to a provider that, before
 570-7   September 1, 1999, included a word prohibited under this section in
 570-8   its name.  A provider described by this subsection must include in
 570-9   each service contract a statement substantially similar to the
570-10   following:  "This agreement is not an insurance contract."
570-11   (V.A.C.S. Art. 9034, Sec. 12, as added Acts 76th Leg., R.S., Ch.
570-12   1559.)
570-13         Sec. 1304.161.  MISLEADING STATEMENTS PROHIBITED. A provider
570-14   or the provider's representative may not, in the provider's service
570-15   contracts or literature:
570-16               (1)  make, permit, or cause to be made any false or
570-17   misleading statement; or
570-18               (2)  deliberately omit a material statement if the
570-19   omission would be considered misleading.  (V.A.C.S. Art. 9034, Sec.
570-20   13(a), as added Acts 76th Leg., R.S., Ch. 1559.)
570-21           (Sections 1304.162-1304.200 reserved for expansion)
570-22                   SUBCHAPTER E.  DISCIPLINARY ACTION
570-23         Sec. 1304.201.  DISCIPLINARY ACTION. (a)  On a finding that a
570-24   ground for disciplinary action exists under this chapter, the
570-25   commissioner may impose an administrative sanction, including an
570-26   administrative penalty, as provided by Chapter 51.
570-27         (b)  The amount of an administrative penalty imposed under
 571-1   this section may not exceed;
 571-2               (1)  $500 for each violation; or
 571-3               (2)  $10,000 in the aggregate for all violations of a
 571-4   similar nature.  (V.A.C.S. Art. 9034, Sec. 14(a), as added Acts
 571-5   76th Leg., R.S., Ch. 1559.)
 571-6         Sec. 1304.202.  INJUNCTIVE RELIEF; CIVIL PENALTY. (a)  The
 571-7   commissioner may institute an action under Section 51.352 for
 571-8   injunctive relief to restrain a violation or a threatened violation
 571-9   of this chapter or an order issued or rule adopted under this
571-10   chapter.
571-11         (b)  In addition to the injunctive relief provided by
571-12   Subsection (a), the commissioner may institute an action for a
571-13   civil penalty as provided by Section 51.352.  The amount of a civil
571-14   penalty assessed under this section may not exceed:
571-15               (1)  $2,500 for each violation; or
571-16               (2)  $50,000 in the aggregate for all violations of a
571-17   similar nature.  (V.A.C.S. Art. 9034, Sec. 14(c), as added Acts
571-18   76th Leg., R.S., Ch. 1559.)
571-19         Sec. 1304.203.  MULTIPLE VIOLATIONS. For purposes of this
571-20   subchapter, violations are of a similar nature if the violations
571-21   consist of the same or a similar course of conduct, action, or
571-22   practice, regardless of the number of times the conduct, act, or
571-23   practice occurred.  (V.A.C.S. Art. 9034, Sec. 14(d), as added Acts
571-24   76th Leg., R.S., Ch. 1559.)
571-25         Sec. 1304.204.  ADMINISTRATIVE PROCEDURE. Sections 51.310 and
571-26   51.354 apply to disciplinary action taken under this chapter.
571-27   (V.A.C.S. Art. 9034, Sec. 14(b), as added Acts 76th Leg., R.S., Ch.
 572-1   1559.)
 572-2         SECTION 4. ADOPTION OF WATER, HEALTH, AND SAFETY TITLE. The
 572-3   Occupations Code is amended by adding Title 12 to read as follows:
 572-4            TITLE 12.  PRACTICES AND TRADES RELATED TO WATER,
 572-5                           HEALTH, AND SAFETY
 572-6                SUBTITLE A.  OCCUPATIONS RELATED TO WATER
 572-7   CHAPTER 1901.  WATER WELL DRILLERS
 572-8   CHAPTER 1902.  WATER WELL PUMP INSTALLERS
 572-9   CHAPTER 1903.  IRRIGATORS
572-10               (Chapters 1904-1950 reserved for expansion)
572-11           SUBTITLE B.  PRACTICES RELATED TO HEALTH AND SAFETY
572-12   CHAPTER 1951.  STRUCTURAL PEST CONTROL
572-13   CHAPTER 1952.  CODE ENFORCEMENT OFFICERS
572-14   CHAPTER 1953.  SANITARIANS
572-15   CHAPTER 1954.  ASBESTOS HEALTH PROTECTION
572-16   CHAPTER 1955.  LEAD-BASED PAINT ABATEMENT
572-17   CHAPTER 1956.  SALES TO METAL DEALERS AND METAL RECYCLING
572-18                    ENTITIES
572-19   CHAPTER 1957.  INDUSTRIAL HYGIENISTS
572-20            TITLE 12.  PRACTICES AND TRADES RELATED TO WATER,
572-21                           HEALTH, AND SAFETY
572-22                SUBTITLE A.  OCCUPATIONS RELATED TO WATER
572-23                   CHAPTER 1901.  WATER WELL DRILLERS
572-24                    SUBCHAPTER A.  GENERAL PROVISIONS
572-25   Sec. 1901.001.  DEFINITIONS 
572-26   Sec. 1901.002.  EFFECT ON GROUNDWATER RIGHTS 
572-27   Sec. 1901.003.  LIABILITY UNDER LAW 
 573-1           (Sections 1901.004-1901.050 reserved for expansion)
 573-2          SUBCHAPTER B.  ADMINISTRATION AND LICENSING PROGRAMS
 573-3   Sec. 1901.051.  LICENSING 
 573-4   Sec. 1901.052.  RULES 
 573-5   Sec. 1901.053.  WATER WELL DRILLERS ACCOUNT 
 573-6   Sec. 1901.054.  REGISTER OF LICENSE HOLDERS 
 573-7   Sec. 1901.055.  TRANSFER OF FUNCTIONS 
 573-8           (Sections 1901.056-1901.100 reserved for expansion)
 573-9        SUBCHAPTER C.  TEXAS WATER WELL DRILLERS ADVISORY COUNCIL
573-10   Sec. 1901.101.  COUNCIL MEMBERSHIP 
573-11   Sec. 1901.102.  ELIGIBILITY OF MEMBERS 
573-12   Sec. 1901.103.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS 
573-13   Sec. 1901.104.  TERMS 
573-14   Sec. 1901.105.  PRESIDING OFFICER 
573-15   Sec. 1901.106.  GROUNDS FOR REMOVAL 
573-16   Sec. 1901.107.  MEETINGS; QUORUM 
573-17   Sec. 1901.108.  PER DIEM; REIMBURSEMENT 
573-18   Sec. 1901.109.  COUNCIL POWERS AND DUTIES 
573-19           (Sections 1901.110-1901.150 reserved for expansion)
573-20                   SUBCHAPTER D.  LICENSE REQUIREMENTS
573-21   Sec. 1901.151.  LICENSE REQUIRED 
573-22   Sec. 1901.152.  LICENSE APPLICATION; EXAMINATION FEE 
573-23   Sec. 1901.153.  RESIDENCY REQUIREMENT 
573-24   Sec. 1901.154.  LICENSE FEE 
573-25   Sec. 1901.155.  LICENSE EXPIRATION; RENEWAL 
573-26   Sec. 1901.156.  NOTICE OF LICENSE EXPIRATION 
573-27   Sec. 1901.157.  PROCEDURE FOR RENEWAL 
 574-1   Sec. 1901.158.  LICENSE NOT TRANSFERABLE 
 574-2   Sec. 1901.159.  REPLACEMENT OF LOST OR DESTROYED LICENSE 
 574-3   Sec. 1901.160.  CONTINUING EDUCATION 
 574-4   Sec. 1901.161.  EXEMPTION:  DEWATERING WELL 
 574-5   Sec. 1901.162.  WAIVER FOR APPLICANT LICENSED IN
 574-6                     ANOTHER STATE 
 574-7           (Sections 1901.163-1901.200 reserved for expansion)
 574-8                       SUBCHAPTER E.  EXAMINATION
 574-9   Sec. 1901.201.  FREQUENCY OF EXAMINATION 
574-10   Sec. 1901.202.  CONTENTS OF EXAMINATION 
574-11   Sec. 1901.203.  ORAL EXAMINATION 
574-12   Sec. 1901.204.  GRADING OF EXAMINATION 
574-13   Sec. 1901.205.  EXAMINATION RESULTS 
574-14   Sec. 1901.206.  REEXAMINATION 
574-15           (Sections 1901.207-1901.250 reserved for expansion)
574-16                SUBCHAPTER F.  PRACTICE BY LICENSE HOLDER
574-17   Sec. 1901.251.  WELL LOG 
574-18   Sec. 1901.252.  MARKING RIG 
574-19   Sec. 1901.253.  COMPLETING WATER WELL 
574-20   Sec. 1901.254.  NOTICE REGARDING INJURIOUS WATER; PLUGGING,
574-21                     REPAIR, OR COMPLETION OF WELL 
574-22   Sec. 1901.255.  PLUGGING WATER WELL 
574-23           (Sections 1901.256-1901.300 reserved for expansion)
574-24     SUBCHAPTER G.  PROHIBITED PRACTICES AND DISCIPLINARY PROCEDURES
574-25   Sec. 1901.301.  GROUNDS FOR DISCIPLINARY ACTION 
574-26   Sec. 1901.302.  NOTICE AND HEARING 
574-27   Sec. 1901.303.  DECISION; ORDER 
 575-1   Sec. 1901.304.  APPEAL 
 575-2           (Sections 1901.305-1901.350 reserved for expansion)
 575-3                  SUBCHAPTER H.  ADMINISTRATIVE PENALTY
 575-4   Sec. 1901.351.  AMOUNT OF ADMINISTRATIVE PENALTY 
 575-5   Sec. 1901.352.  HEARING 
 575-6           (Sections 1901.353-1901.400 reserved for expansion)
 575-7        SUBCHAPTER I.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
 575-8   Sec. 1901.401.  CIVIL PENALTY 
 575-9   Sec. 1901.402.  INJUNCTION AND OTHER ENFORCEMENT PROVISIONS 
575-10   Sec. 1901.403.  VENUE 
575-11   Sec. 1901.404.  ACTION BY ATTORNEY GENERAL 
575-12                   CHAPTER 1901.  WATER WELL DRILLERS
575-13                    SUBCHAPTER A.  GENERAL PROVISIONS
575-14         Sec. 1901.001.  DEFINITIONS. In this chapter:
575-15               (1)  "Commission" means the Texas Commission of
575-16   Licensing and Regulation.
575-17               (2)  "Commissioner" means the commissioner of licensing
575-18   and regulation.
575-19               (3)  "Council" means the Texas Water Well Drillers
575-20   Advisory Council.
575-21               (4)  "Department" means the Texas Department of
575-22   Licensing and Regulation.
575-23               (5)  "Dewatering well" means an artificial excavation
575-24   that is constructed to produce groundwater to lower the water table
575-25   or potentiometric surface and that is not used to produce or to
575-26   facilitate the production of minerals under a state regulatory
575-27   program.
 576-1               (6)  "Dewatering well driller" means a person who
 576-2   drills, bores, cores, or constructs a dewatering well.  The term
 576-3   includes the owner or operator of a well or the contractor or
 576-4   drilling supervisor.  The term does not include a person who acts
 576-5   under the direct supervision of a dewatering well driller and is
 576-6   not primarily responsible for the drilling operation.
 576-7               (7)  "Driller" means a water well driller, injection
 576-8   well driller, dewatering well driller, or monitoring well driller.
 576-9               (8)  "Injection well" includes:
576-10                     (A)  an air-conditioning return flow well used to
576-11   return water that has been used for heating or cooling in a heat
576-12   pump to the aquifer that supplied the water;
576-13                     (B)  a cooling water return flow well used to
576-14   inject water that has been used for cooling;
576-15                     (C)  a drainage well used to drain surface fluid
576-16   into a subsurface formation;
576-17                     (D)  a recharge well used to replenish water in
576-18   an aquifer;
576-19                     (E)  a saltwater intrusion barrier well used to
576-20   inject water into a freshwater aquifer to prevent the intrusion of
576-21   salt water into fresh water;
576-22                     (F)  a sand backfill well used to inject a
576-23   mixture of water and sand, mill tailings, or other solids into
576-24   subsurface mines;
576-25                     (G)  a subsidence control well used to inject
576-26   fluids into a non-oil-producing or non-gas-producing zone to reduce
576-27   or eliminate subsidence associated with the overdraft of fresh
 577-1   water; and
 577-2                     (H)  a closed system geothermal well used to
 577-3   circulate water, other fluids, or gases through the earth as a heat
 577-4   source or heat sink.
 577-5               (9)  "Injection well driller" means a person who
 577-6   drills, bores, cores, or constructs an injection well.  The term
 577-7   includes the owner or operator of a well or the contractor or
 577-8   drilling supervisor.  The term does not include a person who acts
 577-9   under the direct supervision of an injection well driller and is
577-10   not primarily responsible for the drilling operation.
577-11               (10)  "Monitoring well" means an artificial excavation
577-12   that is constructed to measure or monitor the quantity or movement
577-13   of substances below the surface of the ground and that is not used
577-14   in conjunction with the production of oil, gas, or other minerals.
577-15               (11)  "Monitoring well driller" means a person who
577-16   drills, bores, cores, or constructs a monitoring well.  The term
577-17   includes the owner or operator of a well or the contractor or
577-18   drilling supervisor.
577-19               (12)  "Person" means an individual, firm, partnership,
577-20   association, corporation, or other private legal entity.
577-21               (13)  "Pollution" means a change to the physical,
577-22   thermal, chemical, or biological quality of water in a way that:
577-23                     (A)  makes the water harmful to humans, animals,
577-24   vegetation, or property; or
577-25                     (B)  impairs the public enjoyment of the water
577-26   for a reasonable purpose.
577-27               (14)  "Water well" means an artificial excavation
 578-1   constructed to explore for or produce groundwater.  The term does
 578-2   not include:
 578-3                     (A)  a test or blast hole in a quarry or mine or
 578-4   a well or excavation constructed to explore for or produce oil,
 578-5   gas, or other minerals unless the hole is also used to produce
 578-6   groundwater; or
 578-7                     (B)  an injection water source well regulated
 578-8   under Section 91.101, Natural Resources Code.
 578-9               (15)  "Water well driller" means a person who drills,
578-10   bores, cores, or constructs a water well in this state.  The term
578-11   includes the owner or operator of a well or the contractor or
578-12   drilling supervisor.  The term does not include a person who:
578-13                     (A)  drills, bores, cores, or constructs a water
578-14   well on the person's own property for the person's own use; or
578-15                     (B)  assists in constructing a water well under
578-16   the direct supervision of a driller and is not primarily
578-17   responsible for the drilling operation.
578-18               (16)  "Well" means a water well, injection well,
578-19   dewatering well, or monitoring well.  (Water Code, Secs. 32.001(1),
578-20   (2), (4), (5), (6), (7), (8), (9), (11), (12), (13), (14), (15),
578-21   (16), (17); New.)
578-22         Sec. 1901.002.  EFFECT ON GROUNDWATER RIGHTS. This chapter
578-23   does not affect the ownership of or the rights of landowners in
578-24   groundwater. (Water Code, Sec. 32.018.)
578-25         Sec. 1901.003.  LIABILITY UNDER LAW. A person is not relieved
578-26   from liability under law by obtaining a license under this chapter.
578-27   (Water Code, Sec. 32.015 (part).)
 579-1           (Sections 1901.004-1901.050 reserved for expansion)
 579-2          SUBCHAPTER B.  ADMINISTRATION AND LICENSING PROGRAMS
 579-3         Sec. 1901.051.  LICENSING. (a)  The department, with the
 579-4   advice of the council, shall prepare licensing examinations and
 579-5   evaluate the qualifications of license applicants.
 579-6         (b)  The commissioner shall issue licenses to applicants who
 579-7   qualify.  (Water Code, Sec. 32.007(a).)
 579-8         Sec. 1901.052.  RULES. (a)  The commissioner, with advice and
 579-9   comment from the Texas Natural Resource Conservation Commission,
579-10   shall adopt rules as necessary to enforce this chapter, including
579-11   rules governing:
579-12               (1)  license applications;
579-13               (2)  qualifications of applicants;
579-14               (3)  standards of conduct for drillers, including
579-15   standards for marking well drilling rigs and equipment; and
579-16               (4)  procedures and practices before the department.
579-17         (b)  The commissioner may not adopt a rule under this chapter
579-18   that:
579-19               (1)  regulates the installation or repair of well pumps
579-20   and equipment by:
579-21                     (A)  a person on property the person owns or
579-22   controls for the person's own use;
579-23                     (B)  an employee of a person described by
579-24   Paragraph (A); or
579-25                     (C)  a person who is not hired or compensated and
579-26   who acts on behalf of a person described by Paragraph (A); or
579-27               (2)  requires a person who owns or controls property or
 580-1   possesses a well to complete, repair, or retrofit the well to any
 580-2   standard other than a standard in effect at the time the well was
 580-3   originally completed unless the well is found to be a threat to
 580-4   public health and safety or to water quality.  (Water Code, Secs.
 580-5   32.009(a), (d).)
 580-6         Sec. 1901.053.  WATER WELL DRILLERS ACCOUNT. (a)  The
 580-7   department shall deposit money collected under this chapter to the
 580-8   credit of the water well drillers account in the general revenue
 580-9   fund.  Money deposited in that account under this section may be
580-10   used only to administer this chapter.
580-11         (b)  The department shall allocate not more than 20 percent
580-12   of the money in the account to cover the department's
580-13   administrative costs.  (Water Code, Sec. 32.014(b).)
580-14         Sec. 1901.054.  REGISTER OF LICENSE HOLDERS. The department
580-15   shall maintain a current register of license holders.  (Water Code,
580-16   Sec. 32.002(f).)
580-17         Sec. 1901.055.  TRANSFER OF FUNCTIONS. If the functions
580-18   necessary to the proper implementation of duties under this chapter
580-19   are transferred to another entity, the powers and duties under this
580-20   chapter are transferred to that entity.  (Water Code, Sec. 32.019.)
580-21           (Sections 1901.056-1901.100 reserved for expansion)
580-22        SUBCHAPTER C.  TEXAS WATER WELL DRILLERS ADVISORY COUNCIL
580-23         Sec. 1901.101.  COUNCIL MEMBERSHIP. (a)  The Texas Water Well
580-24   Drillers Advisory Council consists of nine members appointed by the
580-25   department as follows:
580-26               (1)  six members who are drillers experienced in the
580-27   well drilling business and familiar with well drilling, completion,
 581-1   and plugging methods and techniques; and
 581-2               (2)  three public members.
 581-3         (b)  One member appointed under Subsection (a)(1) must be
 581-4   selected from the state at large and the remaining five driller
 581-5   members must be selected from each of the following geographic
 581-6   areas of the state:
 581-7               (1)  Gulf Coast area;
 581-8               (2)  Trans-Pecos area;
 581-9               (3)  Central Texas area;
581-10               (4)  Northeast Texas area; and
581-11               (5)  Panhandle-South Plains area.
581-12         (c)  Appointments to the council shall be made without regard
581-13   to the race, creed, sex, religion, or national origin of the
581-14   appointee.  (Water Code, Secs. 32.006(a), (b), (d) (part).)
581-15         Sec. 1901.102.  ELIGIBILITY OF MEMBERS. (a)  A person is not
581-16   eligible to serve as a member under Section 1901.101(a)(1) if:
581-17               (1)  the person is employed by or owns an interest in a
581-18   company, firm, or business association engaged in any phase of the
581-19   well drilling business; and
581-20               (2)  a member serving under Section 1901.101(a)(1) is
581-21   employed by or owns an interest in the same company, firm, or
581-22   business association.
581-23         (b)  A person is not eligible for appointment as a public
581-24   member of the council if the person or the person's spouse:
581-25               (1)  is licensed by an occupational regulatory agency
581-26   in the field of well drilling; or
581-27               (2)  is employed by, participates in the management of,
 582-1   or has, other than as a consumer, a financial interest in a
 582-2   business entity or other organization related to the field of well
 582-3   drilling. (Water Code, Secs. 32.006(c), (d) (part).)
 582-4         Sec. 1901.103.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)  An
 582-5   officer, employee, or paid consultant of a trade association in the
 582-6   well drilling industry may not be a council member or an employee
 582-7   of the department connected with the administration of this
 582-8   chapter.
 582-9         (b)  A council member or an employee of the department
582-10   connected with the administration of this chapter may not be
582-11   related within the second degree by affinity or consanguinity to a
582-12   person who is an officer, employee, or paid consultant of a trade
582-13   association in the well drilling industry.
582-14         (c)  A person may not serve as a member of the council if the
582-15   person is required to register as a lobbyist under Chapter 305,
582-16   Government Code, because of the person's activities on behalf of a
582-17   trade or professional association in the well drilling industry.
582-18   (Water Code, Secs. 32.006(e), (f).)
582-19         Sec. 1901.104.  TERMS. Council members serve six-year terms
582-20   expiring September 15.  (Water Code, Sec. 32.006(h).)
582-21         Sec. 1901.105.  PRESIDING OFFICER. The council shall elect a
582-22   presiding officer by a majority vote at the first meeting each
582-23   year.  (Water Code, Sec. 32.006(l).)
582-24         Sec. 1901.106.  GROUNDS FOR REMOVAL. It is a ground for
582-25   removal from the council that a member:
582-26               (1)  does not have at the time of appointment the
582-27   qualifications required by Section 1901.101 or 1901.102;
 583-1               (2)  does not maintain during service on the council
 583-2   the qualifications required by Section 1901.101 or 1901.102;
 583-3               (3)  violates a prohibition established by Section
 583-4   1901.103; or
 583-5               (4)  is absent from more than half of the regularly
 583-6   scheduled council meetings that the member is eligible to attend
 583-7   each year. (Water Code, Sec. 32.006(g).)
 583-8         Sec. 1901.107.  MEETINGS; QUORUM. (a)  The council shall hold
 583-9   meetings at the call of the presiding officer.
583-10         (b)  The council shall conduct meetings in compliance with
583-11   Chapter 551, Government Code.
583-12         (c)  A majority of the council constitutes a quorum.  (Water
583-13   Code, Secs. 32.006(j), (k).)
583-14         Sec. 1901.108.  PER DIEM; REIMBURSEMENT. (a)  A council
583-15   member is entitled to a per diem as set by legislative
583-16   appropriation for each day the member engages in the business of
583-17   the council.
583-18         (b)  A council member may be reimbursed for travel expenses,
583-19   including expenses for meals and lodging.  A member is entitled to
583-20   reimbursement for transportation expenses as prescribed by the
583-21   General Appropriations Act.  (Water Code, Sec. 32.006(i).)
583-22         Sec. 1901.109.  COUNCIL POWERS AND DUTIES. (a)  The council
583-23   may propose rules for adoption by the commissioner relating to the
583-24   regulation of drillers registered under this chapter.
583-25         (b)  The council shall advise the department on the contents
583-26   of licensing examinations.
583-27         (c)  The council may:
 584-1               (1)  recommend standards for continuing education
 584-2   programs, including standards relating to:
 584-3                     (A)  the qualifications of program providers and
 584-4   instructors; and
 584-5                     (B)  the amount of program fees; and
 584-6               (2)  recommend topics to be covered in a continuing
 584-7   education course.
 584-8         (d)  The council shall assist the department in evaluating
 584-9   continuing education programs.
584-10         (e)  The council may hear consumer complaints and make
584-11   recommendations to the commission or department, as appropriate,
584-12   relating to the disposition of those complaints. (Water Code, Secs.
584-13   32.006(m), (n).)
584-14           (Sections 1901.110-1901.150 reserved for expansion)
584-15                   SUBCHAPTER D.  LICENSE REQUIREMENTS
584-16         Sec. 1901.151.  LICENSE REQUIRED. A person may not act or
584-17   offer to act as a driller unless the person holds a license issued
584-18   by the commissioner under this chapter and rules adopted under this
584-19   chapter.  (Water Code, Sec. 32.002(a).)
584-20         Sec. 1901.152.  LICENSE APPLICATION; EXAMINATION FEE. (a)  An
584-21   application for a license must contain:
584-22               (1)  the applicant's name;
584-23               (2)  the applicant's business address;
584-24               (3)  the applicant's permanent mailing address; and
584-25               (4)  any other relevant information required by the
584-26   department.
584-27         (b)  An applicant must pay to the department a nonrefundable
 585-1   examination fee at the time the application is submitted.  (Water
 585-2   Code, Secs. 32.002(b), (c).)
 585-3         Sec. 1901.153.  RESIDENCY REQUIREMENT. A person must reside
 585-4   in this state for at least 90 days before the date the person
 585-5   applies for a license under this chapter.  (Water Code, Sec.
 585-6   32.002(j).)
 585-7         Sec. 1901.154.  LICENSE FEE. A person who qualifies for a
 585-8   license must pay to the department the license fee set by the
 585-9   commission.  (Water Code, Sec. 32.002(d).)
585-10         Sec. 1901.155.  LICENSE EXPIRATION; RENEWAL. (a)  Except as
585-11   provided by Section 51.205(a), a license issued under this chapter
585-12   expires August 31 of each year.  On or before that date, a license
585-13   holder must pay an annual renewal fee to the department.
585-14         (b)  For a year in which a license expiration date is changed
585-15   under Section 51.205(a), the commissioner shall prorate license
585-16   renewal fees payable on August 31.  On renewal of the license on
585-17   the new expiration date, the total license renewal fee is payable.
585-18   (Water Code, Secs. 32.002(e) (part), 32.003 (part).)
585-19         Sec. 1901.156.  NOTICE OF LICENSE EXPIRATION. Not later than
585-20   August 1 of each year, the commission shall send written notice of
585-21   the impending license expiration to each license holder. (Water
585-22   Code, Sec. 32.002(e) (part).)
585-23         Sec. 1901.157.  PROCEDURE FOR RENEWAL. (a)  A person whose
585-24   license has been expired for 90 days or less may renew the license
585-25   by paying to the department the required renewal fee and a late fee
585-26   that is equal to half the license examination fee. If a person's
585-27   license has been expired for more than 90 days but less than two
 586-1   years, the person may renew the license by paying to the department
 586-2   all unpaid renewal fees and a late fee that is equal to the license
 586-3   examination fee.
 586-4         (b)  A person whose license has been expired for two years or
 586-5   more may not renew the license.  The person may obtain a new
 586-6   license by submitting to reexamination and complying with the
 586-7   requirements and procedures for obtaining an original license.
 586-8   (Water Code, Sec. 32.002(e) (part).)
 586-9         Sec. 1901.158.  LICENSE NOT TRANSFERABLE. A license is not
586-10   transferable or assignable.  (Water Code, Sec. 32.002(g).)
586-11         Sec. 1901.159.  REPLACEMENT OF LOST OR DESTROYED LICENSE. On
586-12   application and payment of a fee, the department shall issue a
586-13   duplicate license to replace a lost or destroyed license. (Water
586-14   Code, Sec. 32.002(h).)
586-15         Sec. 1901.160.  CONTINUING EDUCATION. (a)  The department,
586-16   with the participation of the council, may recognize, prepare, or
586-17   offer continuing education programs for license holders.
586-18         (b)  Participation in continuing education programs is
586-19   voluntary unless the council determines that the department should
586-20   require participation.  (Water Code, Sec. 32.008.)
586-21         Sec. 1901.161.  EXEMPTION:  DEWATERING WELL. The licensing
586-22   requirements of this subchapter do not apply to a person who
586-23   drills, bores, cores, or constructs a dewatering well or system to
586-24   remove water for the purpose of constructing a highway, road,
586-25   bridge, drainage, or underground utility project.  (Water Code,
586-26   Sec. 32.002(k).)
586-27         Sec. 1901.162.  WAIVER FOR APPLICANT LICENSED IN ANOTHER
 587-1   STATE. The commissioner may adopt rules allowing waiver of a
 587-2   license requirement for an applicant who is licensed in another
 587-3   state that has license requirements substantially equivalent to
 587-4   those of this state.  (Water Code, Sec. 32.004.)
 587-5           (Sections 1901.163-1901.200 reserved for expansion)
 587-6                       SUBCHAPTER E.  EXAMINATION
 587-7         Sec. 1901.201.  FREQUENCY OF EXAMINATION. (a)  The department
 587-8   shall offer examinations at least once each year.
 587-9         (b)  The department shall offer examinations more frequently
587-10   if more than 10 persons petition for an additional examination.
587-11   (Water Code, Sec. 32.007(c).)
587-12         Sec. 1901.202.  CONTENTS OF EXAMINATION. (a)  The department
587-13   shall design written examinations to disqualify a person who lacks
587-14   the necessary knowledge of drilling, of completion and plugging
587-15   methods and techniques, and of groundwater formations to the extent
587-16   that drilling by the person would create a serious risk of
587-17   polluting fresh water.
587-18         (b)  The department may prescribe additional requirements:
587-19               (1)  for the examination of monitoring well drillers;
587-20   and
587-21               (2)  that relate to water conservation for the
587-22   examination of dewatering well drillers. (Water Code, Sec.
587-23   32.007(b) (part).)
587-24         Sec. 1901.203.  ORAL EXAMINATION. An applicant may take an
587-25   oral examination.  (Water Code, Sec. 32.007(b) (part).)
587-26         Sec. 1901.204.  GRADING OF EXAMINATION. The department shall
587-27   administer examinations so that a person grading an examination
 588-1   does not know the identity of the person taking the examination.
 588-2   (Water Code, Sec. 32.007(d).)
 588-3         Sec. 1901.205.  EXAMINATION RESULTS. (a)  The department
 588-4   shall notify each examinee of the results of the licensing
 588-5   examination not later than the 30th day after the date the
 588-6   examination is administered.
 588-7         (b)  The department shall maintain files of examination
 588-8   papers. Not later than the sixth month after the date a person is
 588-9   notified of the results of an examination, the person may inspect
588-10   the person's examination paper during normal business hours at the
588-11   department's offices to challenge the propriety of the questions or
588-12   the method or accuracy of grading.
588-13         (c)  If requested in writing by a person who fails an
588-14   examination, the department shall provide to the person an analysis
588-15   of the person's performance on the examination.  (Water Code, Secs.
588-16   32.007(e), (f).)
588-17         Sec. 1901.206.  REEXAMINATION. A person who fails an
588-18   examination may apply to take a subsequent examination on payment
588-19   of the examination fee.  (Water Code, Sec. 32.007(g).)
588-20           (Sections 1901.207-1901.250 reserved for expansion)
588-21                SUBCHAPTER F.  PRACTICE BY LICENSE HOLDER
588-22         Sec. 1901.251.  WELL LOG. (a)  Each driller who drills,
588-23   deepens, or otherwise alters a water well in this state shall make
588-24   and keep a legible and accurate well log in accordance with rules
588-25   adopted by and on forms prescribed by the commissioner. The well
588-26   log shall be recorded at the time of drilling, deepening, or
588-27   otherwise altering the well and must contain:
 589-1               (1)  the depth, thickness, and character of the strata
 589-2   penetrated;
 589-3               (2)  the location of water-bearing strata;
 589-4               (3)  the depth, size, and character of casing
 589-5   installed; and
 589-6               (4)  any other information required by rules adopted by
 589-7   the commissioner.
 589-8         (b)  Not later than the 60th day after the date of the
 589-9   completion or cessation of drilling, deepening, or otherwise
589-10   altering the well, the driller shall deliver or send by certified
589-11   mail a copy of the well log to:
589-12               (1)  the department;
589-13               (2)  the Texas Natural Resource Conservation
589-14   Commission; and
589-15               (3)  the owner of the well or the person for whom the
589-16   well was drilled.
589-17         (c)  If the department receives, by certified mail, a written
589-18   request from the owner of the well or from the person for whom the
589-19   well was drilled that the well log be made confidential, the
589-20   department shall protect the contents of the well log as
589-21   confidential and not a matter of public record. (Water Code, Sec.
589-22   32.005.)
589-23         Sec. 1901.252.  MARKING RIG. (a)  A driller shall legibly
589-24   mark the license number that appears on the driller's license on
589-25   each rig used by the driller or the driller's employees in the well
589-26   drilling business.
589-27         (b)  The commissioner shall adopt rules specifying the manner
 590-1   for marking a rig.  (Water Code, Sec. 32.016.)
 590-2         Sec. 1901.253.  COMPLETING WATER WELL. A driller shall
 590-3   complete a well under standards and procedures adopted by the
 590-4   commissioner.  (Water Code, Sec. 32.017(a).)
 590-5         Sec. 1901.254.  NOTICE REGARDING INJURIOUS WATER; PLUGGING,
 590-6   REPAIR, OR COMPLETION OF WELL. (a)  A driller shall notify the
 590-7   department and the landowner or person having a well drilled on
 590-8   encountering water injurious to vegetation, land, or other water
 590-9   and determining that the well must be plugged, repaired, or
590-10   properly completed in order to avoid injury or pollution.
590-11         (b)  The driller shall ensure that the well is plugged,
590-12   repaired, or properly completed under standards and procedures
590-13   adopted by the commissioner. (Water Code, Sec. 32.017(b).)
590-14         Sec. 1901.255.  PLUGGING WATER WELL. (a)  In this section:
590-15               (1)  "Abandoned well" means a well that is not in use. 
590-16   A well is considered to be in use if:
590-17                     (A)  the well is not a deteriorated well and
590-18   contains the casing, pump, and pump column in good condition;
590-19                     (B)  the well is not a deteriorated well and has
590-20   been capped;
590-21                     (C)  the water from the well has been put to an
590-22   authorized beneficial use, as defined by the Water Code;
590-23                     (D)  the well is used in the normal course and
590-24   scope and with the intensity and frequency of other similar users
590-25   in the general community; or
590-26                     (E)  the owner is participating in the
590-27   Conservation Reserve Program authorized by Sections 1231-1236, Food
 591-1   Security Act of 1985 (16 U.S.C. Sections 3831-3836), or a similar
 591-2   governmental program.
 591-3               (2)  "Deteriorated well" means a well that, because of
 591-4   its condition, will cause or is likely to cause pollution of any
 591-5   water in this state, including groundwater.
 591-6         (b)  A driller who knows of an abandoned or deteriorated well
 591-7   shall notify the landowner or person who possesses the well that
 591-8   the well must be plugged or capped to avoid injury or pollution.
 591-9         (c)  Not later than the 180th day after the date a landowner
591-10   or other person who possesses an abandoned or deteriorated well
591-11   learns of its condition, the landowner or other person shall have
591-12   the well plugged or capped under standards and procedures adopted
591-13   by the commissioner.
591-14         (d)  A driller, licensed pump installer, or well owner who
591-15   plugs an abandoned or deteriorated well shall submit a plugging
591-16   report to the commissioner not later than the 30th day after the
591-17   date the well is plugged.  The department shall furnish plugging
591-18   report forms on request.  (Water Code, Secs. 32.001(3), 32.017(c),
591-19   (d), (e).)
591-20           (Sections 1901.256-1901.300 reserved for expansion)
591-21     SUBCHAPTER G.  PROHIBITED PRACTICES AND DISCIPLINARY PROCEDURES
591-22         Sec. 1901.301.  GROUNDS FOR DISCIPLINARY ACTION. The
591-23   commissioner may discipline a person under Section 51.353 for a
591-24   violation of this chapter or a rule adopted under this chapter,
591-25   including:
591-26               (1)  an intentional misstatement or misrepresentation
591-27   of a fact on an application or well log or to a person for whom a
 592-1   well is being drilled, deepened, or otherwise altered;
 592-2               (2)  the failure to keep, deliver, or send a well log
 592-3   as required by Section 1901.251;
 592-4               (3)  the failure to advise a person for whom a well is
 592-5   being drilled that:
 592-6                     (A)  injurious water has been encountered;
 592-7                     (B)  the water is a pollution hazard; and
 592-8                     (C)  the well must be immediately plugged in an
 592-9   acceptable manner; or
592-10               (4)  the failure to complete a well in accordance with
592-11   standards and procedures adopted by the commissioner.  (Water Code,
592-12   Secs. 32.010(a) (part), (b).)
592-13         Sec. 1901.302.  NOTICE AND HEARING. (a)  Before revoking a
592-14   license, placing a license holder on probation, or reprimanding a
592-15   license holder, the commissioner must:
592-16               (1)  notify the license holder in writing of the
592-17   alleged violation; and
592-18               (2)  provide the license holder with an opportunity for
592-19   a hearing.
592-20         (b)  The notice must be mailed by registered mail to the last
592-21   known business address of the license holder.
592-22         (c)  The license holder, each person complaining against the
592-23   license holder, and any other witness whose testimony is relied on
592-24   to substantiate the charges made may be present at the hearing.
592-25         (d)  The license holder may present relevant oral or written
592-26   evidence. (Water Code, Secs. 32.010(a) (part), (c) (part).)
592-27         Sec. 1901.303.  DECISION; ORDER. (a)  Each decision or order
 593-1   rendered by the commissioner in a disciplinary hearing must:
 593-2               (1)  be in writing; and
 593-3               (2)  briefly state the findings of fact and the
 593-4   commissioner's conclusions.
 593-5         (b)  Each party to the proceeding shall be notified of the
 593-6   decision or order not later than the 30th day after the date the
 593-7   hearing is concluded.  (Water Code, Sec. 32.010(d).)
 593-8         Sec. 1901.304.  APPEAL. (a)  A person affected by a ruling,
 593-9   order, decision, or other action of the commission, commissioner,
593-10   or department may appeal by filing a petition in a district court
593-11   in Travis County.
593-12         (b)  A petition must be filed not later than the 30th day
593-13   after the date of the commission's, commissioner's, or department's
593-14   action or, in the case of a ruling, order, or decision, not later
593-15   than the 30th day after its effective date.
593-16         (c)  Service of citation on the commission, commissioner, or
593-17   department shall be accomplished not later than the 30th day after
593-18   the date the petition is filed.  Citation may be served on the
593-19   commissioner.
593-20         (d)  The plaintiff must pursue the action with reasonable
593-21   diligence.
593-22         (e)  The substantial evidence rule applies to the judicial
593-23   review of any commission, commissioner, or department ruling,
593-24   order, decision, or other action.  An administrative or executive
593-25   action taken before the filing of the suit continues in effect
593-26   until the rights of the parties are determined by the court.
593-27   (Water Code, Sec. 32.012.)
 594-1           (Sections 1901.305-1901.350 reserved for expansion)
 594-2                  SUBCHAPTER H.  ADMINISTRATIVE PENALTY
 594-3         Sec. 1901.351.  AMOUNT OF ADMINISTRATIVE PENALTY. (a)  The
 594-4   amount of an administrative penalty imposed under Subchapter F,
 594-5   Chapter 51, for a violation of this chapter or a rule adopted under
 594-6   this chapter may not exceed $2,500 for each violation.
 594-7         (b)  The commission shall set the amount of an administrative
 594-8   penalty. In determining the amount of the penalty, the commission
 594-9   shall consider:
594-10               (1)  the person's history of previous violations; and
594-11               (2)  the seriousness of the violation. (Water Code,
594-12   Secs. 32.011(a) (part), (b).)
594-13         Sec. 1901.352.  HEARING. (a)  The commission may impose an
594-14   administrative penalty on a person regulated under this chapter
594-15   only after it has given the person charged with a violation of this
594-16   chapter or a rule adopted under this chapter an opportunity for a
594-17   public hearing.
594-18         (b)  If a public hearing is held, the commission shall:
594-19               (1)  make findings of fact and issue a written decision
594-20   as to the occurrence of the violation; and
594-21               (2)  if appropriate, issue an order requiring a person
594-22   who violates this chapter or a rule adopted under this chapter to
594-23   pay a penalty.
594-24         (c)  If the person charged with a violation does not appear
594-25   for the hearing, the commission, after determining that a violation
594-26   has occurred, may impose a penalty and issue an order requiring the
594-27   person to pay the penalty.
 595-1         (d)  Not later than the 30th day after the date an order
 595-2   imposing a penalty is issued, the commissioner shall inform the
 595-3   person ordered to pay the penalty of the amount of the penalty.
 595-4   (Water Code, Secs. 32.011(c), (d), (e), (f).)
 595-5           (Sections 1901.353-1901.400 reserved for expansion)
 595-6        SUBCHAPTER I.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
 595-7         Sec. 1901.401.  CIVIL PENALTY. A person who violates this
 595-8   chapter or a rule adopted under this chapter is subject to a civil
 595-9   penalty of not less than $200 or more than $1,000 for each day of
595-10   noncompliance or each act of noncompliance as determined by the
595-11   court. (Water Code, Sec. 32.015 (part).)
595-12         Sec. 1901.402.  INJUNCTION AND OTHER ENFORCEMENT PROVISIONS.
595-13   (a)  The commissioner may bring an action to enjoin a person from
595-14   violating this chapter.
595-15         (b)  The commissioner may enforce by injunction or other
595-16   appropriate remedy in a court any rule, decision, determination, or
595-17   order adopted or entered under this chapter. (Water Code, Secs.
595-18   32.009(b) (part), 32.015 (part).)
595-19         Sec. 1901.403.  VENUE. The commissioner may bring an action
595-20   in:
595-21               (1)  Travis County; or
595-22               (2)  the county in which:
595-23                     (A)  the offending activity occurred; or
595-24                     (B)  the person engaging in the activity resides.
595-25   (Water Code, Sec. 32.015 (part).)
595-26         Sec. 1901.404.  ACTION BY ATTORNEY GENERAL. (a)  On request,
595-27   the attorney general shall represent the department in an action
 596-1   under Section 1901.402.
 596-2         (b)  At the request of the commissioner, the attorney general
 596-3   shall bring an action in the name of the state for injunctive
 596-4   relief, to recover a civil penalty, or for both injunctive relief
 596-5   and a civil penalty, as authorized by this subchapter.  (Water
 596-6   Code, Secs. 32.009(b) (part), 32.015 (part).)
 596-7                CHAPTER 1902.  WATER WELL PUMP INSTALLERS
 596-8                    SUBCHAPTER A.  GENERAL PROVISIONS
 596-9   Sec. 1902.001.  DEFINITIONS 
596-10   Sec. 1902.002.  LIABILITY UNDER LAW 
596-11           (Sections 1902.003-1902.050 reserved for expansion)
596-12          SUBCHAPTER B.  ADMINISTRATION AND LICENSING PROGRAMS
596-13   Sec. 1902.051.  LICENSING 
596-14   Sec. 1902.052.  RULES 
596-15   Sec. 1902.053.  WATER WELL DRILLERS ACCOUNT 
596-16   Sec. 1902.054.  REGISTER OF LICENSE HOLDERS 
596-17   Sec. 1902.055.  TRANSFER OF FUNCTIONS 
596-18           (Sections 1902.056-1902.100 reserved for expansion)
596-19                SUBCHAPTER C.  COUNCIL POWERS AND DUTIES
596-20   Sec. 1902.101.  COUNCIL RECOMMENDATION REGARDING
596-21                     COMPLAINTS 
596-22        (Sections 1902.102-1902.150 reserved for expansion)     
596-23                   SUBCHAPTER D.  LICENSE REQUIREMENTS
596-24   Sec. 1902.151.  LICENSE REQUIRED 
596-25   Sec. 1902.152.  LICENSE APPLICATION; EXAMINATION
596-26                     FEE 
596-27   Sec. 1902.153.  RESIDENCY REQUIREMENT 
 597-1   Sec. 1902.154.  LICENSE FEE 
 597-2   Sec. 1902.155.  LICENSE EXPIRATION; RENEWAL 
 597-3   Sec. 1902.156.  NOTICE OF LICENSE EXPIRATION 
 597-4   Sec. 1902.157.  PROCEDURE FOR RENEWAL 
 597-5   Sec. 1902.158.  LICENSE NOT TRANSFERABLE 
 597-6   Sec. 1902.159.  REPLACEMENT OF LOST OR DESTROYED
 597-7                     LICENSE 
 597-8   Sec. 1902.160.  CONTINUING EDUCATION 
 597-9   Sec. 1902.161.  EXEMPTION:  DEWATERING WELL PUMPS AND
597-10                     EQUIPMENT 
597-11   Sec. 1902.162.  WAIVER FOR APPLICANT LICENSED IN ANOTHER
597-12                     STATE 
597-13           (Sections 1902.163-1902.200 reserved for expansion)
597-14                       SUBCHAPTER E.  EXAMINATION
597-15   Sec. 1902.201.  FREQUENCY OF EXAMINATION 
597-16   Sec. 1902.202.  CONTENTS OF EXAMINATION 
597-17   Sec. 1902.203.  GRADING OF EXAMINATION 
597-18   Sec. 1902.204.  EXAMINATION FILES 
597-19           (Sections 1902.205-1902.250 reserved for expansion)
597-20                SUBCHAPTER F.  PRACTICE BY LICENSE HOLDER
597-21   Sec. 1902.251.  INSTALLING AND REPAIRING PUMPS 
597-22   Sec. 1902.252.  NOTICE REGARDING INJURIOUS WATER; REPAIR
597-23                     OR COMPLETION OF WELL 
597-24   Sec. 1902.253.  NOTICE REGARDING ABANDONED OR DETERIORATED
597-25                     WELL 
597-26           (Sections 1902.254-1902.300 reserved for expansion)
597-27          SUBCHAPTER G.  PROHIBITED PRACTICES AND DISCIPLINARY
 598-1                               PROCEDURES
 598-2   Sec. 1902.301.  GROUNDS FOR DISCIPLINARY ACTION 
 598-3   Sec. 1902.302.  NOTICE AND HEARING 
 598-4   Sec. 1902.303.  DECISION; ORDER 
 598-5   Sec. 1902.304.  APPEAL 
 598-6           (Sections 1902.305-1902.350 reserved for expansion)
 598-7                  SUBCHAPTER H.  ADMINISTRATIVE PENALTY
 598-8   Sec. 1902.351.  AMOUNT OF PENALTY 
 598-9   Sec. 1902.352.  HEARING 
598-10           (Sections 1902.353-1902.400 reserved for expansion)
598-11        SUBCHAPTER I.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
598-12   Sec. 1902.401.  CIVIL PENALTY 
598-13   Sec. 1902.402.  INJUNCTION AND OTHER ENFORCEMENT
598-14                     PROVISIONS 
598-15   Sec. 1902.403.  VENUE 
598-16   Sec. 1902.404.  ACTION BY ATTORNEY GENERAL 
598-17                CHAPTER 1902.  WATER WELL PUMP INSTALLERS
598-18                    SUBCHAPTER A.  GENERAL PROVISIONS
598-19         Sec. 1902.001.  DEFINITIONS. In this chapter:
598-20               (1)  "Commission" means the Texas Commission of
598-21   Licensing and Regulation.
598-22               (2)  "Commissioner" means the commissioner of licensing
598-23   and regulation.
598-24               (3)  "Council" means the Texas Water Well Drillers
598-25   Advisory Council.
598-26               (4)  "Department" means the Texas Department of
598-27   Licensing and Regulation.
 599-1               (5)  "Installer" means a person who installs or repairs
 599-2   well pumps and equipment.  The term does not include a person who:
 599-3                     (A)  installs or repairs well pumps and equipment
 599-4   on the person's own property for the person's own use; or
 599-5                     (B)  assists in pump installation under the
 599-6   direct supervision of an installer and is not primarily responsible
 599-7   for the installation.
 599-8               (6)  "Person" means an individual, firm, partnership,
 599-9   association, corporation, or other private legal entity.
599-10               (7)  "Pollution" means a change to the physical,
599-11   thermal, chemical, or biological quality of water in a way that:
599-12                     (A)  makes the water harmful to humans, animals,
599-13   vegetation, or property; or
599-14                     (B)  impairs the public enjoyment of water for a
599-15   reasonable purpose.
599-16               (8)  "Pump installation" means the procedures employed
599-17   in the placement and preparation for operation of equipment and
599-18   materials used to obtain water from a well, including:
599-19                     (A)  construction involved in making the well and
599-20   establishing seals and safeguards as necessary to protect the water
599-21   from contamination; and
599-22                     (B)  repairs to an existing pump.
599-23               (9)  "Well" means a water well, injection well,
599-24   dewatering well, or monitoring well, as those terms are defined by
599-25   Section 1901.001.  The term does not include an injection water
599-26   source well regulated under Section 91.101, Natural Resources Code.
599-27               (10)  "Well pumps and equipment" means equipment and
 600-1   materials used to obtain water from a well, including the seals and
 600-2   safeguards necessary to protect the water from contamination.
 600-3   (Water Code, Secs. 33.001(1), (2), (3), (4), (6), (7), (8), (9),
 600-4   (10); New.)
 600-5         Sec. 1902.002.  LIABILITY UNDER LAW. A person is not relieved
 600-6   from liability under law by obtaining a license under this chapter.
 600-7   (Water Code, Sec. 33.013 (part).)
 600-8           (Sections 1902.003-1902.050 reserved for expansion)
 600-9          SUBCHAPTER B.  ADMINISTRATION AND LICENSING PROGRAMS
600-10         Sec. 1902.051.  LICENSING. (a)  The department, with the
600-11   advice of the council, shall prepare licensing examinations and
600-12   evaluate the qualifications of license applicants.
600-13         (b)  The commissioner shall issue licenses to applicants who
600-14   qualify.  (Water Code, Secs. 33.005(a), (c) (part).)
600-15         Sec. 1902.052.  RULES. (a)  The commissioner shall adopt
600-16   rules as necessary to enforce this chapter.
600-17         (b)  The commissioner may not adopt a rule under this chapter
600-18   that:
600-19               (1)  regulates the installation or repair of well pumps
600-20   and equipment by:
600-21                     (A)  a person on property the person owns or
600-22   controls for the person's own use;
600-23                     (B)  an employee of a person described by
600-24   Paragraph (A); or
600-25                     (C)  a person who is not hired or compensated and
600-26   who acts on behalf of a person described by Paragraph (A); or
600-27               (2)  requires a person who owns or controls property or
 601-1   possesses a well to complete, repair, or retrofit the well to any
 601-2   standard other than a standard in effect at the time the well was
 601-3   originally completed unless the well is found to be a threat to
 601-4   public health and safety or to water quality. (Water Code, Secs.
 601-5   33.007(a), (d).)
 601-6         Sec. 1902.053.  WATER WELL DRILLERS ACCOUNT. (a)  The
 601-7   department shall deposit money collected under this chapter to the
 601-8   credit of the water well drillers account in the general revenue
 601-9   fund.  Money deposited in that account under this section may be
601-10   used only to administer this chapter.
601-11         (b)  The department shall allocate not more than 20 percent
601-12   of the money in the account to cover the department's
601-13   administrative costs. (Water Code, Sec. 33.012(b).)
601-14         Sec. 1902.054.  REGISTER OF LICENSE HOLDERS. The department
601-15   shall maintain a current register of license holders.  (Water Code,
601-16   Sec. 33.002(e).)
601-17         Sec. 1902.055.  TRANSFER OF FUNCTIONS. If the functions
601-18   necessary to the proper implementation of duties under this chapter
601-19   are transferred to another entity, the powers and duties under this
601-20   chapter are transferred to that entity. (Water Code, Sec. 33.015.) 
601-21           (Sections 1902.056-1902.100 reserved for expansion)
601-22                SUBCHAPTER C.  COUNCIL POWERS AND DUTIES
601-23         Sec. 1902.101.  COUNCIL RECOMMENDATION REGARDING
601-24   COMPLAINTS.  The council may hear consumer complaints and make
601-25   recommendations to the commission or department, as appropriate,
601-26   relating to the disposition of those complaints. (Water Code, Sec.
601-27   33.011(a) (part).)
 602-1           (Sections 1902.102-1902.150 reserved for expansion)
 602-2                   SUBCHAPTER D.  LICENSE REQUIREMENTS
 602-3         Sec. 1902.151.  LICENSE REQUIRED. A person may not act or
 602-4   offer to act as an installer unless the person holds a license
 602-5   issued by the commissioner under rules adopted under this chapter.
 602-6   (Water Code, Sec. 33.002(a).)
 602-7         Sec. 1902.152.  LICENSE APPLICATION; EXAMINATION FEE. (a)  An
 602-8   application for a license must contain:
 602-9               (1)  the applicant's name;
602-10               (2)  the applicant's business address;
602-11               (3)  the applicant's permanent mailing address; and
602-12               (4)  any other information required by the department.
602-13         (b)  An applicant must pay to the department a nonrefundable
602-14   examination fee at the time the application is submitted.  (Water
602-15   Code, Secs. 33.002(b), (c) (part).)
602-16         Sec. 1902.153.  RESIDENCY REQUIREMENT. A person must reside
602-17   in this state for at least 90 days before the date the person
602-18   applies for a license under this chapter.  (Water Code, Sec.
602-19   33.002(i).)
602-20         Sec. 1902.154.  LICENSE FEE. A person who qualifies for a
602-21   license must pay to the department the license fee set by the
602-22   commission.  (Water Code, Sec. 33.002(c) (part).)
602-23         Sec. 1902.155.  LICENSE EXPIRATION; RENEWAL. (a)  Except as
602-24   provided by Section 51.205(a), a license issued under this chapter
602-25   expires August 31 of each year.  On or before that date, a license
602-26   holder must pay an annual renewal fee to the department.
602-27         (b)  For a year in which a license expiration date is changed
 603-1   under Section 51.205(a), the commissioner shall prorate license
 603-2   renewal fees payable on August 31.  On renewal of the license on
 603-3   the new expiration date, the total license renewal fee is payable.
 603-4   (Water Code, Secs. 33.002(d) (part), 33.003 (part).)
 603-5         Sec. 1902.156.  NOTICE OF LICENSE EXPIRATION. Not later than
 603-6   August 1 of each year, the commission shall send written notice of
 603-7   the impending license expiration to each license holder.  (Water
 603-8   Code, Sec. 33.002(d) (part).)
 603-9         Sec. 1902.157.  PROCEDURE FOR RENEWAL. (a)  A person whose
603-10   license has been expired for 90 days or less may renew the license
603-11   by paying to the department the required renewal fee and a late fee
603-12   that is equal to half the license examination fee. If a person's
603-13   license has been expired for more than 90 days but less than two
603-14   years, the person may renew the license by paying to the department
603-15   all unpaid renewal fees and a late fee that is equal to the license
603-16   examination fee.
603-17         (b)  A person whose license has been expired for two years or
603-18   more may not renew the license.  The person may obtain a new
603-19   license by submitting to reexamination and complying with the
603-20   requirements for obtaining an original license. (Water Code, Sec.
603-21   33.002(d) (part).)
603-22         Sec. 1902.158.  LICENSE NOT TRANSFERABLE. A license is not
603-23   transferable or assignable.  (Water Code, Sec. 33.002(f).)
603-24         Sec. 1902.159.  REPLACEMENT OF LOST OR DESTROYED LICENSE. On
603-25   application and payment of a fee, the department shall issue a
603-26   duplicate license to replace a lost or destroyed license. (Water
603-27   Code, Sec. 33.002(g).)
 604-1         Sec. 1902.160.  CONTINUING EDUCATION. (a)  The department,
 604-2   with the participation of the council, may recognize, prepare, or
 604-3   offer continuing education programs for license holders.
 604-4         (b)  Participation in continuing education programs is
 604-5   voluntary unless the council determines that the department should
 604-6   require participation.  (Water Code, Sec. 33.006.)
 604-7         Sec. 1902.161.  EXEMPTION:  DEWATERING WELL PUMPS AND
 604-8   EQUIPMENT. The licensing requirements of this subchapter do not
 604-9   apply to a person who installs or repairs well pumps and equipment
604-10   to remove water for the purpose of constructing a highway, road,
604-11   bridge, drainage, or underground utility project. (Water Code, Sec.
604-12   33.002(j).)
604-13         Sec. 1902.162.  WAIVER FOR APPLICANT LICENSED IN ANOTHER
604-14   STATE. The commissioner may adopt rules allowing waiver of a
604-15   license requirement for an applicant who is licensed in another
604-16   state that has license requirements substantially equivalent to
604-17   those of this state.  (Water Code, Sec. 33.004.)
604-18           (Sections 1902.163-1902.200 reserved for expansion)
604-19                       SUBCHAPTER E.  EXAMINATION
604-20         Sec. 1902.201.  FREQUENCY OF EXAMINATION. (a)  The department
604-21   shall offer examinations at least once each month.
604-22         (b)  The department shall offer examinations more frequently
604-23   if more than 10 persons petition for an additional examination.
604-24   (Water Code, Sec. 33.005(c) (part).)
604-25         Sec. 1902.202.  CONTENTS OF EXAMINATION. The department shall
604-26   design written examinations to disqualify a person who lacks the
604-27   knowledge of pump installation to the extent that pump installation
 605-1   by the person would create a serious risk of polluting fresh water.
 605-2   (Water Code, Sec. 33.005(b).)
 605-3         Sec. 1902.203.  GRADING OF EXAMINATION. The department shall
 605-4   administer examinations so that a person grading an examination
 605-5   does not know the identity of the person taking the examination.
 605-6   (Water Code, Sec. 33.005(c) (part).)
 605-7         Sec. 1902.204.  EXAMINATION FILES. The department shall
 605-8   maintain files of examination papers. (Water Code, Sec. 33.005(c)
 605-9   (part).)
605-10           (Sections 1902.205-1902.250 reserved for expansion)
605-11                SUBCHAPTER F.  PRACTICE BY LICENSE HOLDER
605-12         Sec. 1902.251.  INSTALLING AND REPAIRING PUMPS. An installer
605-13   shall install or repair pumps under standards and procedures
605-14   adopted by the commissioner with the advice of the council. (Water
605-15   Code, Sec. 33.014(a).)
605-16         Sec. 1902.252.  NOTICE REGARDING INJURIOUS WATER; REPAIR OR
605-17   COMPLETION OF WELL. (a)  An installer shall notify the department
605-18   and the landowner or person having a pump installed or repaired on
605-19   encountering water injurious to vegetation, land, or other water.
605-20         (b)  To avoid injury or pollution, the installer shall repair
605-21   or properly complete the well under standards and procedures
605-22   adopted by the commissioner. (Water Code, Sec. 33.014(b).)
605-23         Sec. 1902.253.  NOTICE REGARDING ABANDONED OR DETERIORATED
605-24   WELL. An installer who knows of an abandoned or deteriorated well
605-25   as defined by Section 1901.255 shall notify the landowner or person
605-26   who possesses the well that the well must be plugged or capped to
605-27   avoid injury or pollution. (Water Code, Sec. 33.014(c).)
 606-1           (Sections 1902.254-1902.300 reserved for expansion)
 606-2          SUBCHAPTER G.  PROHIBITED PRACTICES AND DISCIPLINARY
 606-3                               PROCEDURES
 606-4         Sec. 1902.301.  GROUNDS FOR DISCIPLINARY ACTION. The
 606-5   commissioner may revoke a license, place a license holder on
 606-6   probation, or reprimand a license holder under Section 51.353 for a
 606-7   violation of this chapter or a rule adopted under this chapter.
 606-8   (Water Code, Sec. 33.008(a).)
 606-9         Sec. 1902.302.  NOTICE AND HEARING. (a)  Before revoking a
606-10   license, placing a license holder on probation, or reprimanding a
606-11   license holder, the commissioner must:
606-12               (1)  notify the license holder in writing of the
606-13   alleged violation; and
606-14               (2)  provide the license holder with an opportunity for
606-15   a hearing.
606-16         (b)  The notice must be mailed by registered mail to the last
606-17   known business address of the license holder.
606-18         (c)  The license holder, each person complaining against the
606-19   license hold