FACT tracked 275 different bills relating to the appraisal industry. The bills listed here are those that had the most impact on industry.
STATUTE OF LIMITATIONS BILL
HB 1116/SB 939 relating to the limitations periods for certain suits against real estate appraisers and appraisal firms. Authored by Senator Creighton, sponsored by Rep. Wray. The bills would require a person to bring suit for damages or other relief arising from an appraisal or appraisal review conducted by a real estate appraiser or appraisal firm by the earlier of: two years after the day the person knew or should have known the facts on which the action was based; or five years after the day the appraisal or appraisal review was completed. The bill would not apply to a suit based on fraud or breach of contract.
HB 1116 passed the House, but included an adverse amendment added on the House floor, which created political problems among interested parties. The bill was referred to the Senate Business and Commerce Committee, but did not receive consideration in the full Senate.
SB 939 bill passed the Senate, and was reported favorably by the House Judiciary and Civil Jurisprudence Committee, but did not receive consideration in the full House. It was placed on the House calendar for consideration but legislative deadlines lapsed before reaching the bill. Therefore the bill did not pass in this session.
BILLS RELATING TO TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD (TALCB)
SB 624 relating to the continuation and functions of the Texas Real Estate Commission and the Texas Appraiser Licensing and Certification Board; changing fees. Authored by Senator Nichols, sponsored by Rep. Senfronia Thompson. SB 624 would continue the Texas Real Estate Commission (TREC) and the Texas Appraiser Licensing and Certification Board (TALCB) until September 1, 2025. The bill also includes multiple changes to the management of TREC and TALCB, including revoking TREC’s ability to buy and sell property, changing reporting requirements, improving protections for complainants’ identities, establishing education course requirements, and altering authorizations for licensing decisions.
The bill was signed by the Governor on May 31, 2019, and goes into effect September 1, 2019.
SB 646 relating to approval for purchases of property or construction projects by a state agency with self-directed semi-independent status. The legislation by Sen. Birdwell (Rep. Senfronia Thompson) came out of the Sunset Review of the Texas Appraiser Licensing and Certification Board (TALCB) where it found that the Board, which is a self-directed semi-independent agency (SDSI), had a significant amount of capital reserves set aside to purchase a building. However, during the Sunset review, the Sunset Commission noted several deficiencies with the Board’s handling of other operational responsibilities such as customer service. The Board was questioned about the intent of using these reserves for a building while internal operations were suffering.
SB 646 provides clear policy direction to SDSI agencies about developing policies around building reserve funds, and provides a uniform, systematic procedure for all SDSI agencies wishing to purchase property or construct projects. These agencies must work with the Texas Facilities Commission to properly identify the need for purchase as well as consider the availability of existing state owned property that could satisfy such need. These agencies will require a written authorization from the Governor before allocating dollars to an agency’s building reserve fund.
The bill was signed by the Governor on May 31, 2019, and goes into effect September 1, 2019.
EMINENT DOMAIN
SB 421 relating to the acquisition of real property by an entity with eminent domain authority. The legislation by Sen. Kolkhorst and Rep. Burns provided additional protections and transparency for landowners who are forced to undergo the condemnation process. The bill would have required private condemnors to hold a public meeting to allow the public to learn more about the acquisition, and included increased landowner protections to prevent low-ball offers. The bill would have generally preserved the role of appraisers for final offers and created an initial offer process to include appraisers as well as brokers or a comparative market analysis.
SB 421 passed the both the House and Senate, but a conference committee of both chambers failed to reach consensus, and the Legislature adjourned without the bill passing.