By Staples                                            H.B. No. 1948
         76R5134 JMM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of the sale and inspection of real
 1-3     estate.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 6(a), The Real Estate License Act
 1-6     (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
 1-7     as follows:
 1-8           (a)  A person desiring to act as a real estate broker in this
 1-9     state shall file an application for a license with the commission
1-10     on a form prescribed by the commission.  A broker desiring to
1-11     engage a person to participate in real estate brokerage activity
1-12     may [shall] join the person in filing an application for an active
1-13     [a] salesperson license on a form prescribed by the commission.  [A
1-14     person previously licensed as a broker may apply for inactive
1-15     status.]  A person [previously licensed as a salesperson] may apply
1-16     for a salesperson license on inactive status without the
1-17     participation of a broker.  [The person must apply for inactive
1-18     status on a form prescribed by the commission not later than the
1-19     first anniversary of the date of the expiration of the broker or
1-20     salesperson license.]
1-21           SECTION 2.  Sections 7(b) and (e), The Real Estate License
1-22     Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
1-23     read as follows:
1-24           (b)  The commission by rule may:
 2-1                 (1)  prescribe the content of core real estate courses
 2-2     listed in Subsection (a)  of this section; and
 2-3                 (2)  establish the title and content of additional core
 2-4     real estate courses.
 2-5           (e)  Each applicant for a salesperson license shall furnish
 2-6     the commission satisfactory evidence of having completed 12
 2-7     semester hours, or equivalent classroom hours, of postsecondary
 2-8     education, eight [six] hours of which must be completed in core
 2-9     real estate courses, of which a minimum of two hours must be
2-10     completed in Principles of Real Estate as described in Subsection
2-11     (a)(1) of this section, a minimum of two hours must be completed in
2-12     Law of Agency as described in Subsection (a)(10) of this section,
2-13     and a minimum of two hours must be completed in Law of Contracts as
2-14     described in Subsection (a)(11) of this section.  The remaining
2-15     four [six] hours must [shall] be completed in core real estate
2-16     courses or related courses.  As a condition for the first renewal
2-17     of a salesperson license, the applicant shall furnish the
2-18     commission satisfactory evidence of having completed a minimum of
2-19     14 semester hours, or equivalent classroom hours, 10 [eight] hours
2-20     of which must be completed in core real estate courses.  As a
2-21     condition for the second renewal of a salesperson license, the
2-22     applicant shall furnish the commission satisfactory evidence of
2-23     having completed a minimum of 16 semester hours, or equivalent
2-24     classroom hours, 12 [10] hours of which must be completed in core
2-25     real estate courses.  As a condition for the third  renewal of a
2-26     salesperson license, the applicant shall furnish the commission
2-27     satisfactory evidence of having completed a minimum of 18 semester
 3-1     hours, or equivalent classroom hours, 14 [12] hours of which must
 3-2     be completed in core real estate courses.
 3-3           SECTION 3.  Sections 8(c) and (f), The Real Estate License
 3-4     Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
 3-5     read as follows:
 3-6           (c)  On determination by the commission at any time that [If
 3-7     on December 31 of any year] the balance remaining in the real
 3-8     estate recovery  fund is less than $1 million, each real estate
 3-9     broker and each real estate salesperson, on the next renewal of the
3-10     license, shall pay, in addition to the license renewal fee, a fee
3-11     of $10, which shall be deposited in the real estate recovery fund,
3-12     or a pro rata share of the amount necessary to bring the fund to
3-13     $1.7 million, whichever is less.  If on December 31 of any year the
3-14     balance remaining in the real estate recovery fund is more than
3-15     $3.5 million or more than the total amount of claims paid from the
3-16     fund during the previous four fiscal years, whichever is greater,
3-17     the amount of money in excess of the greater amount shall be
3-18     transferred to the general revenue fund.  To ensure the
3-19     availability of a sufficient amount of money to pay anticipated
3-20     claims on the fund, the  commission by rule may provide for the
3-21     collection of assessments at different times and under conditions
3-22     other than those specified in this Act.
3-23           (f)  The court shall proceed on the application forthwith.
3-24     On the hearing on the application, the aggrieved person is required
3-25     to show that:
3-26                 (1)  the judgment is based on facts allowing recovery
3-27     under Subsection (a)  of this section;
 4-1                 (2)  the person is not a spouse of the debtor, or the
 4-2     personal representative of the spouse; and the person is not a
 4-3     registrant under Section 9A of this Act or a real estate broker or
 4-4     salesperson, as defined by this Act, who is seeking to recover a
 4-5     real estate commission or any compensation in the transaction or
 4-6     transactions for which the application for payment is made;
 4-7                 (3)  [the person has obtained a judgment under
 4-8     Subsection (e) of this section that is not subject to a stay or
 4-9     discharge in bankruptcy, stating the amount of the judgment and the
4-10     amount owing on the judgment at the date of the application;]
4-11                 [(4)]  based on the best available information, the
4-12     judgment debtor lacks sufficient attachable assets in this state or
4-13     any other state to satisfy the judgment; and
4-14                 (4) [(5)]  the amount that may be realized from the
4-15     sale of real or personal property or other assets liable to be sold
4-16     or applied in satisfaction of the judgment and the balance
4-17     remaining due on the judgment after application of the amount that
4-18     may be realized.
4-19           SECTION 4.  Section 11, The Real Estate License Act (Article
4-20     6573a, Vernon's Texas Civil Statutes), is amended to read as
4-21     follows:
4-22           Sec. 11.  The commission shall charge and collect the
4-23     following fees:
4-24                 (1)  a fee not to exceed $100 for the filing of an
4-25     original application for a real estate broker license;
4-26                 (2)  a fee not to exceed $100 for annual renewal of a
4-27     real estate broker license;
 5-1                 (3)  a fee not to exceed $50 for the filing of an
 5-2     original application for a real estate salesperson license;
 5-3                 (4)  a fee not to exceed $50 for annual renewal of a
 5-4     real estate salesperson license;
 5-5                 (5)  a fee not to exceed $50 for an application for a
 5-6     license examination;
 5-7                 (6)  a fee not to exceed $20 for filing a request for a
 5-8     license for each additional office or place of business;
 5-9                 (7)  a fee not to exceed $20 for filing a request for a
5-10     license or certificate of registration for a change of place of
5-11     business, change of name, return to active status, or change of
5-12     sponsoring broker;
5-13                 (8)  a fee not to exceed $20 for filing a request to
5-14     replace a license or certificate of registration lost or destroyed;
5-15                 (9)  a fee not to exceed $400 for filing an application
5-16     for approval of an education program under Section 7(f) of this
5-17     Act;
5-18                 (10)  a fee not to exceed $200 a year for operation of
5-19     an education program under Section 7(f) of this Act;
5-20                 (11)  a fee of $20 [$15] for transcript evaluation;
5-21                 (12)  a fee not to exceed $10 for preparing a license
5-22     or registration history;
5-23                 (13)  a fee not to exceed $50 for the filing of an
5-24     application for a moral character determination;
5-25                 (14)  an annual fee of $20 from each real estate broker
5-26     and each registrant under Section 9A of this Act to be transmitted
5-27     to Texas A&M University for the Texas Real Estate Research Center
 6-1     as provided by Section 5(m) of this Act;
 6-2                 (15)  an annual fee of $17.50 from each real estate
 6-3     salesperson to be transmitted to Texas A&M University for the Texas
 6-4     Real Estate Research Center as provided by Section 5(m) of this
 6-5     Act;
 6-6                 (16)  an annual fee of $80 from each registrant under
 6-7     Section 9A of this Act; and
 6-8                 (17)  any fee authorized under Section 8 of this Act
 6-9     for the real estate recovery fund.
6-10           SECTION 5.  Section 15(a), The Real Estate License Act
6-11     (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
6-12     as follows:
6-13           (a)  The commission may, on its own motion, and shall, on the
6-14     signed complaint in writing of any person [a consumer or service
6-15     recipient], provided the complaint, or the complaint together with
6-16     evidence,  documentary or otherwise, presented in connection with
6-17     the complaint, provides reasonable cause, investigate the actions
6-18     and records of a real estate broker or real estate salesperson.
6-19     The commission may suspend or revoke a license issued under the
6-20     provisions of this Act or take other disciplinary action authorized
6-21     by this Act at any time when it has been determined that:
6-22                 (1)  the licensee has entered a plea of guilty or nolo
6-23     contendere to, or been found guilty of, or been convicted of, a
6-24     felony, in which fraud is an essential element, and the time for
6-25     appeal has elapsed or the judgment or conviction has been affirmed
6-26     on appeal, irrespective of an order granting probation following
6-27     such conviction, suspending the imposition of sentence;
 7-1                 (2)  the licensee has procured, or attempted to
 7-2     procure, a real estate license, for the licensee or a salesperson,
 7-3     by fraud, misrepresentation or deceit, or by making a material
 7-4     misstatement of fact in an application for a real estate license;
 7-5                 (3)  the licensee, when selling, buying, trading, or
 7-6     renting real property in the licensee's own name, engaged in
 7-7     misrepresentation or dishonest or fraudulent action;
 7-8                 (4)  the licensee has failed within a reasonable time
 7-9     to make good a check issued to the commission after the commission
7-10     has mailed a request for payment by certified mail to the
7-11     licensee's last known business address as reflected by the
7-12     commission's records;
7-13                 (5)  the licensee has disregarded or violated a
7-14     provision of this Act;
7-15                 (6)  the licensee, while performing an act constituting
7-16     an act of a broker or salesperson, as defined by this Act, has been
7-17     guilty of:
7-18                       (A)  making a material misrepresentation, or
7-19     failing to disclose to a potential purchaser any latent structural
7-20     defect or any other defect known to the broker or salesperson.
7-21     Latent structural defects and other defects do not refer to trivial
7-22     or insignificant defects but refer to those defects that would be a
7-23     significant factor to a reasonable and prudent purchaser in making
7-24     a decision to purchase;
7-25                       (B)  making a false promise of a character likely
7-26     to influence, persuade, or induce any person to enter into a
7-27     contract or agreement when the licensee could not or did not intend
 8-1     to keep such promise;
 8-2                       (C)  pursuing a continued and flagrant course of
 8-3     misrepresentation or making of false promises through agents,
 8-4     salespersons, advertising, or otherwise;
 8-5                       (D)  failing to make clear, to all parties to a
 8-6     transaction, which party the licensee is acting for, or receiving
 8-7     compensation from more than one party except with the full
 8-8     knowledge and consent of all parties;
 8-9                       (E)  failing within a reasonable time properly to
8-10     account for or remit money coming into the licensee's possession
8-11     which belongs to others, or commingling money belonging to others
8-12     with the licensee's own funds;
8-13                       (F)  paying a commission or fees to or dividing a
8-14     commission or fees with anyone not licensed as a real estate broker
8-15     or salesperson in this state or in any other state for compensation
8-16     for services as a real estate agent;
8-17                       (G)  failing to specify a definite termination
8-18     date that is not subject to prior notice in a contract, other than
8-19     a contract to perform property management services, in which the
8-20     licensee agrees to perform services for which a license is required
8-21     under this Act;
8-22                       (H)  accepting, receiving, or charging an
8-23     undisclosed commission, rebate, or direct profit on expenditures
8-24     made for a principal;
8-25                       (I)  soliciting, selling, or offering for sale
8-26     real property under a scheme or program that constitutes a lottery
8-27     or deceptive practice;
 9-1                       (J)  acting in the dual capacity of broker and
 9-2     undisclosed principal in a transaction;
 9-3                       (K)  guaranteeing, authorizing, or permitting a
 9-4     person to guarantee that future profits will result from a resale
 9-5     of real property;
 9-6                       (L)  placing a sign on real property offering it
 9-7     for sale, lease, or rent without the written consent of the owner
 9-8     or the owner's authorized agent;
 9-9                       (M)  inducing or attempting to induce a party to
9-10     a contract of sale or lease to break the contract for the purpose
9-11     of substituting in lieu thereof a new contract;
9-12                       (N)  negotiating or attempting to negotiate the
9-13     sale, exchange, lease, or rental of real property with an owner,
9-14     lessor, buyer, or tenant, knowing that the owner, lessor, buyer, or
9-15     tenant had a written outstanding contract, granting exclusive
9-16     agency in connection with the transaction to another real estate
9-17     broker;
9-18                       (O)  offering real property for sale or for lease
9-19     without the knowledge and consent of the owner or the owner's
9-20     authorized agent, or on terms other than those authorized by the
9-21     owner or the owner's authorized agent;
9-22                       (P)  publishing, or causing to be published, an
9-23     advertisement including, but not limited to, advertising by
9-24     newspaper, radio, television, the Internet, or display which is
9-25     misleading, or which is likely to deceive the public, or which in
9-26     any manner tends to create a misleading impression, or which fails
9-27     to identify the person causing the advertisement to be published as
 10-1    a licensed real estate broker or agent;
 10-2                      (Q)  having knowingly withheld from or inserted
 10-3    in a statement of account or invoice, a statement that made it
 10-4    inaccurate in a material particular;
 10-5                      (R)  publishing or circulating an unjustified or
 10-6    unwarranted threat of legal proceedings, or other action;
 10-7                      (S)  establishing an association, by employment
 10-8    or otherwise, with an unlicensed person who is expected or required
 10-9    to act as a real estate licensee, or aiding or abetting or
10-10    conspiring with a person to circumvent the requirements of this
10-11    Act;
10-12                      (T)  failing or refusing on demand to furnish
10-13    copies of a document pertaining to a transaction dealing with real
10-14    estate to a person whose signature is affixed to the document;
10-15                      (U)  failing to advise a purchaser in writing
10-16    before the closing of a transaction that the purchaser should
10-17    either have the abstract covering the real estate which is the
10-18    subject of the contract examined by an attorney of the purchaser's
10-19    own selection, or be furnished with or obtain a policy of title
10-20    insurance;
10-21                      (V)  conduct which constitutes dishonest
10-22    dealings, bad faith, or untrustworthiness;
10-23                      (W)  acting negligently or incompetently in
10-24    performing an act for which a person is required to hold a real
10-25    estate license;
10-26                      (X)  disregarding or violating a provision of
10-27    this Act;
 11-1                      (Y)  failing within a reasonable time to deposit
 11-2    money received as escrow agent in a real estate transaction, either
 11-3    in trust with a title company authorized to do business in this
 11-4    state, or in a custodial, trust, or escrow account maintained for
 11-5    that purpose in a banking institution authorized to do business in
 11-6    this state;
 11-7                      (Z)  disbursing money deposited in a custodial,
 11-8    trust, or escrow account, as provided in Subsection (Y) before the
 11-9    transaction concerned has been consummated or finally otherwise
11-10    terminated; or
11-11                      (AA)  discriminating against an owner, potential
11-12    purchaser, lessor, or potential lessee on the basis of race, color,
11-13    religion, sex, national origin, or ancestry, including directing
11-14    prospective home buyers or lessees interested in equivalent
11-15    properties to different areas according to the race, color,
11-16    religion, sex, national origin, or ancestry of the potential owner
11-17    or lessee;
11-18                (7)  the licensee has failed or refused on demand to
11-19    produce a document, book, or record in the licensee's possession
11-20    concerning a real estate transaction conducted by the licensee for
11-21    inspection by the commission or its authorized personnel or
11-22    representative;
11-23                (8)  the licensee has failed within a reasonable time
11-24    to provide information requested by the commission as a result of a
11-25    formal or informal complaint to the commission which would indicate
11-26    a violation of this Act; or
11-27                (9)  the licensee has failed without just cause to
 12-1    surrender to the rightful owner, on demand, a document or
 12-2    instrument coming into the licensee's possession.
 12-3          SECTION 6.  Section 15B(e), The Real Estate License Act
 12-4    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
 12-5    as follows:
 12-6          (e)  The commission may authorize a commission employee to
 12-7    file a signed written complaint against a licensee and to conduct
 12-8    an investigation if:
 12-9                (1)  a judgment against the licensee has been paid from
12-10    a recovery fund established under this Act;
12-11                (2)  the licensee is convicted of a criminal offense
12-12    that may constitute grounds for the suspension or revocation of the
12-13    licensee's license;  [or]
12-14                (3)  the licensee fails to make good a check issued to
12-15    the commission;
12-16                (4)  the licensee fails to comply with a commission
12-17    rule adopted under Section 7A(g) of this Act; or
12-18                (5)  the licensee fails to provide, within a reasonable
12-19    time, information requested by the commission in connection with an
12-20    application to renew a license.
12-21          SECTION 7.  Sections 19A(a), (b), (d), (h), (m), and (o), The
12-22    Real Estate License Act (Article 6573a, Vernon's Texas Civil
12-23    Statutes), are amended to read as follows:
12-24          (a)  If a person [licensed under this Act] violates this Act
12-25    or a rule or order adopted by the commission under this Act, the
12-26    commission may assess an administrative penalty against the person
12-27    as provided by this section.
 13-1          (b)  The penalty for each violation shall be set in an amount
 13-2    not to exceed $1,000 a day.  Each day a violation continues or
 13-3    occurs may be considered a separate violation for purposes of
 13-4    penalty assessment.
 13-5          (d)  If, after investigation of a possible violation and the
 13-6    facts surrounding that possible violation, the administrator
 13-7    determines that a violation has occurred, the administrator may
 13-8    issue a violation report stating the facts on which the conclusion
 13-9    that a violation occurred is based, recommending that an
13-10    administrative penalty under this section be imposed on the person
13-11    charged, and recommending the amount of that proposed penalty.  The
13-12    administrator shall base the recommended amount of the proposed
13-13    penalty on the seriousness of the violation determined by the
13-14    consideration of the factors set forth in Subsection (c) of this
13-15    section.  The commission may authorize the administrator to
13-16    delegate to another commission employee the administrator's
13-17    authority to act under this section.
13-18          (h)  If the person charged requests a hearing or fails to
13-19    timely respond to the notice, the administrator shall set a hearing
13-20    and give notice of the hearing.  The hearing shall be held by a
13-21    hearing examiner designated by the administrator.  The hearing
13-22    examiner shall make findings of fact and conclusions of law and
13-23    promptly issue to the commission a proposal for decision as to the
13-24    occurrence of the violation, including a recommendation as to the
13-25    amount of the proposed penalty if a penalty is warranted.  Based on
13-26    the findings of fact, conclusions of law, and recommendations of
13-27    the hearing examiner, the commission by order may find a violation
 14-1    has occurred and may assess a penalty or may find that no violation
 14-2    has occurred.  All proceedings under this subsection are subject to
 14-3    Chapter 2001, Government Code [the Administrative Procedure and
 14-4    Texas Register Act (Article 6252-13a, Vernon's Texas Civil
 14-5    Statutes)].  The commission may authorize the hearing examiner to
 14-6    conduct the hearing and enter a final decision.
 14-7          (m)  Judicial review of the order or decision of the
 14-8    commission assessing the penalty shall be under the substantial
 14-9    evidence rule and shall be instituted by filing a petition with a
14-10    district court in Travis County, as provided by Chapter 2001,
14-11    Government Code [Section 19, Administrative Procedure and Texas
14-12    Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)].
14-13          (o)  A penalty collected under this section for a violation
14-14    by a person licensed as a real estate broker or salesperson shall
14-15    be deposited in the real estate recovery fund.  A penalty collected
14-16    under this section for a violation by a person licensed or
14-17    registered as a real estate inspector shall be deposited in the
14-18    real estate inspection recovery fund.  A penalty collected under
14-19    this section for a violation by a person who is not licensed under
14-20    this Act shall be deposited in the real estate recovery fund or the
14-21    real estate inspection recovery fund.
14-22          SECTION 8.  Section 23(h)(1), The Real Estate License Act
14-23    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
14-24    as follows:
14-25                (1)  The commission shall charge and collect reasonable
14-26    and necessary fees to recover the cost of administering this
14-27    section as follows:
 15-1                      (A)  a fee not to exceed $75 for the filing of an
 15-2    original application for a license as an apprentice inspector;
 15-3                      (B)  a fee not to exceed $125 for the filing of
 15-4    an original application for a license as a real estate inspector;
 15-5                      (C)  a fee not to exceed $150 for the filing of
 15-6    an original application for a license as a professional inspector;
 15-7                      (D)  a fee not to exceed $125 for the annual
 15-8    license renewal of an apprentice inspector;
 15-9                      (E)  a fee not to exceed $175 for the annual
15-10    license renewal of a real estate inspector;
15-11                      (F)  a fee not to exceed $200 for the annual
15-12    license renewal of a professional inspector;
15-13                      (G)  a fee not to exceed $100 for taking a
15-14    license examination;  [and]
15-15                      (H)  a fee not to exceed $20 for a request for a
15-16    change of place of business or to replace a lost or destroyed
15-17    license; and
15-18                      (I)  a fee not to exceed $20 for filing a request
15-19    for issuance of a license because of a change of name, return to
15-20    active status, or change in sponsoring professional inspector.
15-21          SECTION 9.  Section 23(k), The Real Estate License Act
15-22    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
15-23    as follows:
15-24          (k)  Continuing education programs.  The commission shall
15-25    recognize, prepare, or administer continuing education programs for
15-26    inspectors.  Participation in the programs is mandatory.  A real
15-27    estate inspector must submit satisfactory evidence to the
 16-1    commission of successful completion of at least eight [four]
 16-2    classroom hours of core real estate inspection courses annually
 16-3    before a licensed renewal is issued.  A professional inspector must
 16-4    submit satisfactory evidence to the commission of successful
 16-5    completion of at least 16 [eight] classroom hours of core [related]
 16-6    real estate inspection courses annually before a license renewal is
 16-7    issued.
 16-8          SECTION 10.  Sections 23(o)(3), (7), and (15), The Real
 16-9    Estate License Act (Article 6573a, Vernon's Texas Civil Statutes),
16-10    are amended to read as follows:
16-11                (3)  If at [on December 31 of] any time [year] the
16-12    balance remaining in the real estate inspection recovery fund is
16-13    less than $300,000, each inspector, on the next renewal of the
16-14    person's license, shall pay, in addition to the license renewal
16-15    fee, a fee of $75, or a pro rata share of the amount necessary to
16-16    bring the fund to $450,000, whichever is less, which shall be
16-17    deposited in the real estate inspection recovery fund.  To ensure
16-18    the availability of a sufficient amount of money to pay anticipated
16-19    claims on the fund, the commission by rule may provide for the
16-20    collection of assessments at different times and under conditions
16-21    other than those specified by this Act.
16-22                (7)  The court shall proceed on the application
16-23    forthwith.  On the hearing on the application, the aggrieved person
16-24    is required to show:
16-25                      (A)  that the judgment is based on facts allowing
16-26    recovery under Subdivision (1) of this subsection;
16-27                      (B)  that the person is not a spouse of the
 17-1    debtor or the personal representative of the spouse and the person
 17-2    is not an inspector, as defined by this section;
 17-3                      (C)  [that the person has obtained a judgment
 17-4    under Subdivision (6) of this subsection that is not subject to a
 17-5    stay or discharge in bankruptcy, stating the amount of the judgment
 17-6    and the amount owing on the judgment at the date of the
 17-7    application;]
 17-8                      [(D)]  that based on the best information
 17-9    available, the judgment debtor lacks sufficient attachable assets
17-10    in this state or any other state to satisfy the judgment; and
17-11                      (D) [(E)]  the amount that may be realized from
17-12    the sale of real or personal property or other assets liable to be
17-13    sold or applied in satisfaction of the judgment and the balance
17-14    remaining due on the judgment after application of the amount that
17-15    may be realized.
17-16                (15)  Notwithstanding any other provision, payments
17-17    from the real estate inspection recovery fund are subject to the
17-18    following conditions and limitations:
17-19                      (A)  payments may be made only pursuant to an
17-20    order of a court of competent jurisdiction, as provided by
17-21    Subdivision (6) of this subsection, and in the manner prescribed by
17-22    this subsection;
17-23                      (B)  payments for claims, including attorney
17-24    fees, interest, and court costs, arising out of the same
17-25    transaction shall be limited in the aggregate to $10,000 [$7,500]
17-26    regardless of the number of claimants; and
17-27                      (C)  payments for claims based on judgments
 18-1    against a licensed inspector may not exceed in the aggregate
 18-2    $30,000 [$15,000] until the fund has been reimbursed by the
 18-3    licensee for all amounts paid.
 18-4          SECTION 11.  (a)  Except as provided by Subsection (b) of
 18-5    this section, this Act takes effect September 1, 1999.
 18-6          (b)  The change in law made by this Act to Section 7(e), The
 18-7    Real Estate License Act (Article 6573a, Vernon's Texas Civil
 18-8    Statutes), takes effect January 1, 2000, and applies only to an
 18-9    application for a real estate salesperson license filed on or after
18-10    that date.  An application filed before January 1, 2000, is
18-11    governed by the law in effect on the date the application was
18-12    filed, and the former law is continued in effect for that purpose.
18-13          (c)  The change in law made by this Act to Section 23(k), The
18-14    Real Estate License Act (Article 6573a, Vernon's Texas Civil
18-15    Statutes), applies only to the renewal of a real estate inspector
18-16    or professional inspector license that expires on or after December
18-17    31, 1999.  A license that expires before that date is governed by
18-18    the law in effect on the date the license expired, and the former
18-19    law is continued in effect for that purpose.
18-20          (d)  The change in law made to Sections 8(f) and 23(o)(7),
18-21    The Real Estate License Act (Article 6573a, Vernon's Texas Civil
18-22    Statutes), applies only to a cause of action that arises on or
18-23    after the effective date of this Act.  A cause of action that
18-24    arises before the effective date of this Act is governed by the law
18-25    in effect on the date the cause of action arose, and the former law
18-26    is continued in effect for that purpose.
18-27          (e)  A change in law made by this Act that relates to a
 19-1    disciplinary action or imposition of an administrative penalty
 19-2    applies only to a violation of The Real Estate License Act (Article
 19-3    6573a, Vernon's Texas Civil Statutes) that occurs on or after the
 19-4    effective date of this Act.  A violation that occurs before the
 19-5    effective date of this Act is governed by the law in effect on the
 19-6    date the violation occurred, and the former law is continued in
 19-7    effect for that purpose.
 19-8          SECTION 12.  The importance of this legislation and the
 19-9    crowded condition of the calendars in both houses create an
19-10    emergency and an imperative public necessity that the
19-11    constitutional rule requiring bills to be read on three several
19-12    days in each house be suspended, and this rule is hereby suspended.