1. (a) The commission or administrator may suspend or revoke the license of a person who is the employer of or represented by an agent as described by Section 73.01 or otherwise discipline the person based on an act or omission of the agent only if an individual employed by the person in a supervisory position:

   1. (1) was directly involved in the act or omission of the agent;
   2. (2) had notice or knowledge of the act or omission; or
   3. (3) failed to take reasonable steps to prevent the act or omission.
2. (b) The holder of a license who is represented by an agent shall maintain records relating to the agent's activities, including any representation agreement, employment records, or similar documents for not less than four years from the date the record is created.

Added by Acts 1999, 76th Leg., ch. 947, Sec. 2, eff. Sept. 1, 1999.

Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 205, eff. September 1, 2019.