HB3250 - Relating to the regulation of real estate appraisers and appraisal management companies.

      H.B. No. 3250         AN ACT   relating to the regulation of real estate appraisers and appraisal   management companies.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter D, Chapter 1103, Occupations Code, is   amended by adding Section 1103.164 to read as follows:           Sec.   1103.164.     STIPEND PROGRAM. (a) The board may   establish a program to provide stipends to appraiser trainees,   persons completing requirements necessary for or otherwise seeking   the issuance of a certificate or license under this chapter, and   certified appraisers who serve as supervisory appraisers for the   following public purposes:                 (1)  promoting the professional needs of this state;                 (2)     increasing the number of highly trained and   educated appraisers available to serve the residents of this state;   and                 (3)     improving the business environment of and   encouraging economic development in this state.           (b)     In awarding stipends under this section, the board shall   consider the financial need of each person who applies for a stipend   under this section.           (c)     The board may use only gifts, grants, and donations   received under Section 1103.157 to fund the stipend program under   this section.           (d)     The board shall adopt rules necessary to implement this   section, including rules establishing the amount of a stipend   awarded under this section.          SECTION 2.  Section 1103.403(b), Occupations Code, is   amended to read as follows:          (b)  Not later than the 10th day after the date an appraiser   changes the appraiser's mailing address, business address,   business e-mail address, or business telephone number, the   appraiser shall notify the board of the change and pay any required   fee.          SECTION 3.  Section 1104.104(b), Occupations Code, is   amended to read as follows:          (b)  The controlling person designated under Subsection (a):                (1)  must:                      (A)  be licensed or certified as an appraiser in   at least one state at all times during the designation; or                      (B)  have completed:                            (i)  the 15-hour national Uniform Standards   of Professional Appraisal Practice course; and                            (ii)  the seven-hour national Uniform   Standards of Professional Appraisal Practice update course not more   than two years before the renewal of the appraisal management   company's registration;                (2)  may not have had a license or certificate to act as   an appraiser denied, revoked, or surrendered in lieu of revocation   in any state unless:                      (A)  the person has subsequently had the license   or certificate to act as an appraiser granted or reinstated; and                      (B)  the license or certificate to act as an   appraiser was denied, revoked, or surrendered for a nonsubstantive   reason as determined by the board; and                (3)  shall submit to a background investigation, as   determined by the board.          SECTION 4.  The heading to Section 1104.151, Occupations   Code, is amended to read as follows:          Sec. 1104.151.   RESTRICTIONS ON EMPLOYMENT AND CONTROLLING   PERSON [ OF CERTAIN PERSONS PROHIBITED ].          SECTION 5.  Section 1104.151(a), Occupations Code, is   amended to read as follows:          (a)  An appraisal management company registered under this   chapter may not knowingly:                (1)  employ a person in a position in which the person   has the responsibility to order appraisals or to review completed   appraisals if the person has had a license or certificate to act as   an appraiser denied, revoked, or surrendered in lieu of revocation   in any state;                (2)  enter into any independent contractor arrangement   for the provision of appraisals or appraisal management services   with any person who has had a license or certificate to act as an   appraiser denied, revoked, or surrendered in lieu of revocation in   any state; [ or ]                (3)  enter into any contract, agreement, or other   business relationship for the provision of appraisals or appraisal   management services with any entity that employs, has entered into   an independent contract arrangement, or has entered into any   contract, agreement, or other business relationship with any person   who has ever had a license or certificate to act as an appraiser   denied, revoked, or surrendered in lieu of revocation in any state ;   or                 (4)     have, as a controlling person, a person who has had   a license or certificate as an appraiser or a registration as an   appraisal management company suspended, revoked, or put on   probation in any state .          SECTION 6.  Section 1104.202(d), Occupations Code, is   amended to read as follows:          (d)  Notwithstanding any other law, the board shall remit an   administrative penalty collected under this section to the   comptroller for deposit in the general revenue fund [ an   administrative penalty collected under this section must be   deposited in a restricted fund maintained and operated by the board   to develop educational programs for appraisers or to conduct   studies that enhance consumer protection ].          SECTION 7.  Sections 1104.205(b) and (c), Occupations Code,   are amended to read as follows:          (b)  An investigator designated by the presiding officer of   the board or the executive director [ commissioner ] shall   investigate each allegation in a complaint to determine whether   probable cause exists for a hearing on the complaint.          (c)  If the board determines that a complaint does not   present facts that are grounds for disciplinary action, the  board   or the executive director [ commissioner ] shall dismiss the   complaint and may not take further action.          SECTION 8.  Section 1104.208(b), Occupations Code, is   amended to read as follows:          (b)  The board by rule may delegate any of its authority   under Subsection (a) to the executive director [ commissioner ].          SECTION 9.  Section 1104.2081(b), Occupations Code, is   amended to read as follows:          (b)  An agreed order must be:                (1)  approved by the board; and                (2)  signed by the executive director [ commissioner ]   and the appraisal management company or other person who is the   subject of the complaint.          SECTION 10.  Section 1104.151(a), Occupations Code, as   amended by this Act, applies only to conduct that occurs on or after   the effective date of this Act.  Conduct that occurs before the   effective date of this Act is governed by the law in effect on the   date the conduct occurred, and the former law is continued in effect   for that purpose.          SECTION 11.  Section 1104.202(d), Occupations Code, as   amended by this Act, applies only to an administrative penalty that   is collected on or after the effective date of this Act.  An   administrative penalty collected before the effective date of this   Act is governed by the law in effect on the date the penalty was   collected, and the former law is continued in effect for that   purpose.          SECTION 12.  (a) Except as provided by Subsection (b) of   this section, this Act takes effect September 1, 2025.          (b)  Section 1103.164, Occupations Code, as added by this   Act, takes effect immediately if this Act receives a vote of   two-thirds of all the members elected to each house, as provided by   Section 39, Article III, Texas Constitution. If this Act does not   receive the vote necessary for immediate effect, that section takes   effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 3250 was passed by the House on May 2,   2025, by the following vote:  Yeas 104, Nays 28, 1 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 3250 on May 28, 2025, by the following vote:  Yeas 101, Nays 34,   2 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 3250 was passed by the Senate, with   amendments, on May 25, 2025, by the following vote:  Yeas 30, Nays   1.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor