89th Legislature

HB 3250

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
HB 3250 introduces several updates to the Texas Occupations Code that affect the regulation of real estate appraisers and appraisal management companies (AMCs). The most notable addition is a new stipend program under Section 1103.164, designed to support appraiser trainees and certified appraisers who serve as supervisory appraisers. This program is intended to address professional shortages and promote economic development within the state. Importantly, the program will be funded exclusively through gifts, grants, and donations, not taxpayer funds, and prioritizes applicants based on financial need.

The bill also modifies administrative requirements, such as updating applicant contact information requirements (Sec. 1103.203), and tightens qualifications for controlling persons at AMCs (Sec. 1104.104). These individuals must either hold an appraisal license or have completed national Uniform Standards of Professional Appraisal Practice (USPAP) coursework, and be free of any substantive disciplinary history unless later reinstated.

Additionally, HB 3250 broadens restrictions on AMC employment and contracts to prevent individuals or entities with revoked or surrendered licenses from operating within Texas' appraisal ecosystem (Sec. 1104.151). It also redirects administrative penalties from a restricted education fund to the state’s general revenue fund (Sec. 1104.202), signaling a shift in fiscal policy. Finally, the bill adjusts the procedures for handling complaints, including clarifying investigatory authority and dismissal procedures when allegations lack sufficient grounds (Sec. 1104.205).

Overall, the bill strengthens regulatory oversight, supports new entrants to the profession, and adjusts administrative processes to better align with professional standards and state financial practices.
Author
Drew Darby
Sponsor
Jose Menendez
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 3250 is not expected to have a significant fiscal implication to the state. The Real Estate Commission, which is responsible for administering the provisions of this bill, operates as a self-directed, semi-independent (SDSI) agency. This means it is financially self-sustaining and does not receive general revenue appropriations or participate in the traditional legislative budgeting process. As such, its implementation of the new stipend program and regulatory changes will not impose costs on the state’s General Revenue Fund​.

The stipend program established under the bill is to be funded solely through gifts, grants, and donations, per the text of the bill itself, thereby avoiding state expenditure. This structure supports workforce development without creating fiscal obligations for taxpayers. The redirection of administrative penalties from a restricted fund to the general revenue fund also has a neutral effect on state finances, representing a reallocation rather than new spending.

For local governments, the bill likewise has no significant fiscal impact. Local entities are not tasked with enforcement or program administration responsibilities under the proposed legislation, limiting any direct or indirect cost exposure​. Overall, HB 3250 presents a fiscally neutral policy change with minimal budgetary consequences at both the state and local levels.

Vote Recommendation Notes

HB 3250 is a well-crafted, limited-government measure designed to strengthen Texas’s real estate appraisal profession while maintaining fiscal discipline and regulatory restraint. It earns a “Yes” vote recommendation for its targeted approach to solving workforce and transparency issues in the appraisal industry—without growing the size of government, increasing the tax burden, or imposing excessive new regulations on individuals or businesses.

At its core, the bill authorizes the Texas Appraiser Licensing and Certification Board (TALCB) to operate a stipend program for appraiser trainees and supervising appraisers—a critical step in addressing the aging appraiser workforce and shortage of professionals, especially in rural areas. Importantly, the stipend program is funded solely through gifts, grants, and donations, and the bill explicitly prohibits the use of taxpayer dollars or general revenue funds for this purpose. No public funds may be used. This ensures that taxpayers do not bear any financial responsibility for the program now or in the future under this law​​.

The bill does not expand TALCB’s jurisdiction or create a new agency. Rather, it strengthens existing regulatory functions by improving public access to licensee business information and tightening the qualifications for those in controlling positions at appraisal management companies—aiming to prevent bad actors from re-entering the industry. These adjustments are narrowly tailored, consistent with industry norms, and impose no new fees or significant compliance burdens on licensees or businesses.

Finally, the legislation simplifies fiscal operations by redirecting administrative penalties from a restricted fund into the general revenue fund, aligning with broader state financial priorities without creating new costs. With no significant fiscal impact to the state or local governments and no increased regulatory burden, H.B. 3250 upholds key liberty principles: individual responsibility, free enterprise, private funding over public spending, and limited, accountable government. For these reasons, Texas Policy Research recommends that lawmakers vote YES on HB 3250.

  • Individual Liberty: The bill respects individual freedom by not creating new mandates or licensing categories. Instead, it supports voluntary participation in a stipend program designed to make it easier for individuals to enter the appraisal profession. It neither restricts personal choices nor infringes on civil liberties, and the added transparency (such as publishing business contact information) serves public interest without compromising individual rights.
  • Personal Responsibility: By strengthening qualifications for individuals in supervisory roles or ownership of appraisal management companies, the bill reinforces personal accountability. Those who have lost licenses due to misconduct are barred from reentering the field in positions of authority. This promotes trust, ethical conduct, and responsibility within the profession.
  • Free Enterprise: The stipend program removes financial barriers for aspiring appraisers, increasing market entry and workforce development in a profession currently facing shortages. This encourages a more competitive, well-staffed industry—especially in underserved rural markets—without relying on government subsidies or distorting private sector dynamics.
  • Private Property Rights: Appraisers are central to real estate transactions, and ensuring their competence directly supports fair and reliable property valuation. This bill promotes greater accuracy, professionalism, and integrity in the appraisal process, which strengthens protections for property owners and buyers alike.
  • Limited Government: Crucially, the bill does not grow the size or cost of government. It maintains the self-directed structure of the regulatory agency, avoids taxpayer funding, and restricts stipend funding to private, voluntary sources only. Additionally, the reallocation of administrative penalties to the general revenue fund reflects prudent financial policy without increasing regulation or spending.
Related Legislation
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