By Wentworth                                          S.B. No. 1016
         76R6119 GJH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of real estate brokers, salespersons,
 1-3     and inspectors and to the administration of certain recovery funds.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 7(b) and (e), The Real Estate License
 1-6     Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
 1-7     read as follows:
 1-8           (b)  The commission by rule may:
 1-9                 (1)  prescribe the content of the core courses listed
1-10     in Subsection (a) of this section; and
1-11                 (2)  establish the title and content of additional core
1-12     real estate courses.
1-13           (e)  Each applicant for a salesperson license shall furnish
1-14     the commission satisfactory evidence of having completed 12
1-15     semester hours, or equivalent classroom hours, of postsecondary
1-16     education, eight [six] hours of which must be completed in core
1-17     real estate courses, of which a minimum of two hours must be
1-18     completed in Principles of Real Estate as described in Subsection
1-19     (a)(1) of this section, a minimum of two hours must be completed in
1-20     Law of Agency as described in Subsection (a)(10) of this section,
1-21     and a minimum of two hours must be completed in Law of Contracts as
1-22     described in Subsection (a)(11) of this section.  The remaining
1-23     four [six] hours must [shall] be completed in core real estate
1-24     courses or related courses.  As a condition for the first renewal
 2-1     of a salesperson license, the applicant shall furnish the
 2-2     commission satisfactory evidence of having completed a minimum of
 2-3     14 semester hours, or equivalent classroom hours, 10 [eight] hours
 2-4     of which must be completed in core real estate courses.  As a
 2-5     condition for the second renewal of a salesperson license, the
 2-6     applicant shall furnish the commission satisfactory evidence of
 2-7     having completed a minimum of 16 semester hours, or equivalent
 2-8     classroom hours, 12 [10] hours of which must be completed in core
 2-9     real estate courses.  As a condition for the third renewal of a
2-10     salesperson license, the applicant shall furnish the commission
2-11     satisfactory evidence of having completed a minimum of 18 semester
2-12     hours, or equivalent classroom hours, 14 [12] hours of which must
2-13     be completed in core real estate courses.
2-14           SECTION 2.  Sections 8(c) and (f), The Real Estate License
2-15     Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
2-16     read as follows:
2-17           (c)  If the commission determines at any time that [on
2-18     December 31 of any year] the balance remaining in the real estate
2-19     recovery trust account [fund] is less than $1 million, each real
2-20     estate broker and each real estate salesperson, on the next renewal
2-21     of the license, shall pay, in addition to the license renewal fee,
2-22     a fee of $10, which shall be deposited in the real estate recovery
2-23     trust account [fund], or a pro rata share of the amount necessary
2-24     to bring the fund to $1.7 million, whichever is less.  If on
2-25     December 31 of any year the balance remaining in the real estate
2-26     recovery trust account [fund] is more than $3.5 million or more
2-27     than the total amount of claims paid from the fund during the
 3-1     previous four fiscal years, whichever is greater, the amount of
 3-2     money in excess of the greater amount shall be transferred to the
 3-3     general revenue fund.  Notwithstanding any other provision of this
 3-4     Act, to ensure that sufficient money is available to pay
 3-5     anticipated claims on the fund, the commission may provide by rule
 3-6     for the collection of assessments at times and under conditions
 3-7     other than those specified by this Act.
 3-8           (f)  The court shall proceed on the application forthwith.
 3-9     On the hearing on the application, the aggrieved person is required
3-10     to show that:
3-11                 (1)  the judgment is based on facts allowing recovery
3-12     under Subsection (a)  of this section;
3-13                 (2)  the person is not a spouse of the debtor, or the
3-14     personal representative of the spouse; and the person is not a
3-15     registrant under Section 9A of this Act or a real estate broker or
3-16     salesperson, as defined by this Act, who is seeking to recover a
3-17     real estate commission or any compensation in the transaction or
3-18     transactions for which the application for payment is made;
3-19                 (3)  [the person has obtained a judgment under
3-20     Subsection (e) of this section that is not subject to a stay or
3-21     discharge in bankruptcy, stating the amount of the judgment and the
3-22     amount owing on the judgment at the date of the application;]
3-23                 [(4)]  based on the best available information, the
3-24     judgment debtor lacks sufficient attachable assets in this state or
3-25     any other state to satisfy the judgment; and
3-26                 (4) [(5)]  the amount that may be realized from the
3-27     sale of real or personal property or other assets liable to be sold
 4-1     or applied in satisfaction of the judgment and the balance
 4-2     remaining due on the judgment after application of the amount that
 4-3     may be realized.
 4-4           SECTION 3.  Section 11, The Real Estate License Act (Article
 4-5     6573a, Vernon's Texas Civil Statutes), is amended to read as
 4-6     follows:
 4-7           Sec. 11.  The commission shall charge and collect the
 4-8     following fees:
 4-9                 (1)  a fee not to exceed $100 for the filing of an
4-10     original application for a real estate broker license;
4-11                 (2)  a fee not to exceed $100 for annual renewal of a
4-12     real estate broker license;
4-13                 (3)  a fee not to exceed $50 for the filing of an
4-14     original application for a real estate salesperson license;
4-15                 (4)  a fee not to exceed $50 for annual renewal of a
4-16     real estate salesperson license;
4-17                 (5)  a fee not to exceed $50 for an application for a
4-18     license examination;
4-19                 (6)  a fee not to exceed $20 for filing a request for a
4-20     license for each additional office or place of business;
4-21                 (7)  a fee not to exceed $20 for filing a request for a
4-22     license or certificate of registration for a change of place of
4-23     business, change of name, return to active status, or change of
4-24     sponsoring broker;
4-25                 (8)  a fee not to exceed $20 for filing a request to
4-26     replace a license or certificate of registration lost or destroyed;
4-27                 (9)  a fee not to exceed $400 for filing an application
 5-1     for approval of an education program under Section 7(f) of this
 5-2     Act;
 5-3                 (10)  a fee not to exceed $200 a year for operation of
 5-4     an education program under Section 7(f) of this Act;
 5-5                 (11)  a fee of $20 [$15] for transcript evaluation;
 5-6                 (12)  a fee not to exceed $10 for preparing a license
 5-7     or registration history;
 5-8                 (13)  a fee not to exceed $50 for the filing of an
 5-9     application for a moral character determination;
5-10                 (14)  an annual fee of $20 from each real estate broker
5-11     and each registrant under Section 9A of this Act to be transmitted
5-12     to Texas A&M University for the Texas Real Estate Research Center
5-13     as provided by Section 5(m) of this Act;
5-14                 (15)  an annual fee of $17.50 from each real estate
5-15     salesperson to be transmitted to Texas A&M University for the Texas
5-16     Real Estate Research Center as provided by Section 5(m) of this
5-17     Act;
5-18                 (16)  an annual fee of $80 from each registrant under
5-19     Section 9A of this Act; and
5-20                 (17)  any fee authorized under Section 8 of this Act
5-21     for the real estate recovery trust account [fund].
5-22           SECTION 4.  Section 15(a), The Real Estate License Act
5-23     (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
5-24     as follows:
5-25           (a)  The commission may, on its own motion, and shall, on the
5-26     signed complaint in writing of any person [a consumer or service
5-27     recipient], provided the complaint, or the complaint together with
 6-1     evidence, documentary or otherwise, presented in connection with
 6-2     the complaint, provides reasonable cause, investigate the actions
 6-3     and records of a real estate broker or real estate salesperson.
 6-4     The commission may suspend or revoke a license issued under the
 6-5     provisions of this Act or take other disciplinary action authorized
 6-6     by this Act at any time when it has been determined that:
 6-7                 (1)  the licensee has entered a plea of guilty or nolo
 6-8     contendere to, or been found guilty of, or been convicted of, a
 6-9     felony, in which fraud is an essential element, and the time for
6-10     appeal has elapsed or the judgment or conviction has been affirmed
6-11     on appeal, irrespective of an order granting probation following
6-12     such conviction, suspending the imposition of sentence;
6-13                 (2)  the licensee has procured, or attempted to
6-14     procure, a real estate license, for the licensee or a salesperson,
6-15     by fraud, misrepresentation or deceit, or by making a material
6-16     misstatement of fact in an application for a real estate license;
6-17                 (3)  the licensee, when selling, buying, trading, or
6-18     renting real property in the licensee's own name, engaged in
6-19     misrepresentation or dishonest or fraudulent action;
6-20                 (4)  the licensee has failed within a reasonable time
6-21     to make good a check issued to the commission after the commission
6-22     has mailed a request for payment by certified mail to the
6-23     licensee's last known business address as reflected by the
6-24     commission's records;
6-25                 (5)  the licensee has disregarded or violated a
6-26     provision of this Act;
6-27                 (6)  the licensee, while performing an act constituting
 7-1     an act of a broker or salesperson, as defined by this Act, has been
 7-2     guilty of:
 7-3                       (A)  making a material misrepresentation, or
 7-4     failing to disclose to a potential purchaser any latent structural
 7-5     defect or any other defect known to the broker or salesperson.
 7-6     Latent structural defects and other defects do not refer to trivial
 7-7     or insignificant defects but refer to those defects that would be a
 7-8     significant factor to a reasonable and prudent purchaser in making
 7-9     a decision to purchase;
7-10                       (B)  making a false promise of a character likely
7-11     to influence, persuade, or induce any person to enter into a
7-12     contract or agreement when the licensee could not or did not intend
7-13     to keep such promise;
7-14                       (C)  pursuing a continued and flagrant course of
7-15     misrepresentation or making of false promises through agents,
7-16     salespersons, advertising, or otherwise;
7-17                       (D)  failing to make clear, to all parties to a
7-18     transaction, which party the licensee is acting for, or receiving
7-19     compensation from more than one party except with the full
7-20     knowledge and consent of all parties;
7-21                       (E)  failing within a reasonable time properly to
7-22     account for or remit money coming into the licensee's possession
7-23     which belongs to others, or commingling money belonging to others
7-24     with the licensee's own funds;
7-25                       (F)  paying a commission or fees to or dividing a
7-26     commission or fees with anyone not licensed as a real estate broker
7-27     or salesperson in this state or in any other state for compensation
 8-1     for services as a real estate agent;
 8-2                       (G)  failing to specify a definite termination
 8-3     date that is not subject to prior notice in a contract, other than
 8-4     a contract to perform property management services, in which the
 8-5     licensee agrees to perform services for which a license is required
 8-6     under this Act;
 8-7                       (H)  accepting, receiving, or charging an
 8-8     undisclosed commission, rebate, or direct profit on expenditures
 8-9     made for a principal;
8-10                       (I)  soliciting, selling, or offering for sale
8-11     real property under a scheme or program that constitutes a lottery
8-12     or deceptive practice;
8-13                       (J)  acting in the dual capacity of broker and
8-14     undisclosed principal in a transaction;
8-15                       (K)  guaranteeing, authorizing, or permitting a
8-16     person to guarantee that future profits will result from a resale
8-17     of real property;
8-18                       (L)  placing a sign on real property offering it
8-19     for sale, lease, or rent without the written consent of the owner
8-20     or the owner's authorized agent;
8-21                       (M)  inducing or attempting to induce a party to
8-22     a contract of sale or lease to break the contract for the purpose
8-23     of substituting in lieu thereof a new contract;
8-24                       (N)  negotiating or attempting to negotiate the
8-25     sale, exchange, lease, or rental of real property with an owner,
8-26     lessor, buyer, or tenant, knowing that the owner, lessor, buyer, or
8-27     tenant had a written outstanding contract, granting exclusive
 9-1     agency in connection with the transaction to another real estate
 9-2     broker;
 9-3                       (O)  offering real property for sale or for lease
 9-4     without the knowledge and consent of the owner or the owner's
 9-5     authorized agent, or on terms other than those authorized by the
 9-6     owner or the owner's authorized agent;
 9-7                       (P)  publishing, or causing to be published, an
 9-8     advertisement including, but not limited to, advertising by
 9-9     newspaper, radio, television, Internet, or other display which is
9-10     misleading, or which is likely to deceive the public, or which in
9-11     any manner tends to create a misleading impression, or which fails
9-12     to identify the person causing the advertisement to be published as
9-13     a licensed real estate broker or agent;
9-14                       (Q)  having knowingly withheld from or inserted
9-15     in a statement of account or invoice, a statement that made it
9-16     inaccurate in a material particular;
9-17                       (R)  publishing or circulating an unjustified or
9-18     unwarranted threat of legal proceedings, or other action;
9-19                       (S)  establishing an association, by employment
9-20     or otherwise, with an unlicensed person who is expected or required
9-21     to act as a real estate licensee, or aiding or abetting or
9-22     conspiring with a person to circumvent the requirements of this
9-23     Act;
9-24                       (T)  failing or refusing on demand to furnish
9-25     copies of a document pertaining to a transaction dealing with real
9-26     estate to a person whose signature is affixed to the document;
9-27                       (U)  failing to advise a purchaser in writing
 10-1    before the closing of a transaction that the purchaser should
 10-2    either have the abstract covering the real estate which is the
 10-3    subject of the contract examined by an attorney of the purchaser's
 10-4    own selection, or be furnished with or obtain a policy of title
 10-5    insurance;
 10-6                      (V)  conduct which constitutes dishonest
 10-7    dealings, bad faith, or untrustworthiness;
 10-8                      (W)  acting negligently or incompetently in
 10-9    performing an act for which a person is required to hold a real
10-10    estate license;
10-11                      (X)  disregarding or violating a provision of
10-12    this Act;
10-13                      (Y)  failing within a reasonable time to deposit
10-14    money received as escrow agent in a real estate transaction, either
10-15    in trust with a title company authorized to do business in this
10-16    state, or in a custodial, trust, or escrow account maintained for
10-17    that purpose in a banking institution authorized to do business in
10-18    this state;
10-19                      (Z)  disbursing money deposited in a custodial,
10-20    trust, or escrow account, as provided in Subsection (Y) before the
10-21    transaction concerned has been consummated or finally otherwise
10-22    terminated; or
10-23                      (AA)  discriminating against an owner, potential
10-24    purchaser, lessor, or potential lessee on the basis of race, color,
10-25    religion, sex, national origin, or ancestry, including directing
10-26    prospective home buyers or lessees interested in equivalent
10-27    properties to different areas according to the race, color,
 11-1    religion, sex, national origin, or ancestry of the potential owner
 11-2    or lessee;
 11-3                (7)  the licensee has failed or refused on demand to
 11-4    produce a document, book, or record in the licensee's possession
 11-5    concerning a real estate transaction conducted by the licensee for
 11-6    inspection by the commission or its authorized personnel or
 11-7    representative;
 11-8                (8)  the licensee has failed within a reasonable time
 11-9    to provide information requested by the commission as a result of a
11-10    formal or informal complaint to the commission which would indicate
11-11    a violation of this Act; or
11-12                (9)  the licensee has failed without just cause to
11-13    surrender to the rightful owner, on demand, a document or
11-14    instrument coming into the licensee's possession.
11-15          SECTION 5.  Section 15B(e), The Real Estate License Act
11-16    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
11-17    as follows:
11-18          (e)  The commission may authorize a commission employee to
11-19    file a signed written complaint against a licensee and to conduct
11-20    an investigation if:
11-21                (1)  a judgment against the licensee has been paid from
11-22    a recovery fund established under this Act;
11-23                (2)  the licensee is convicted of a criminal offense
11-24    that may constitute grounds for the suspension or revocation of the
11-25    licensee's license; [or]
11-26                (3)  the licensee fails to make good a check issued to
11-27    the commission;
 12-1                (4)  the licensee fails to comply with a commission
 12-2    rule adopted under Section 7A(g) of this Act; or
 12-3                (5)  the licensee fails to provide within a reasonable
 12-4    time information requested by the commission for the renewal of a
 12-5    license.
 12-6          SECTION 6.  Sections 19A(a), (b), (d), (h), (j), (m), and
 12-7    (o), The Real Estate License Act (Article 6573a, Vernon's Texas
 12-8    Civil Statutes), are amended to read as follows:
 12-9          (a)  If a person [licensed under this Act] violates this Act
12-10    or a rule or order adopted by the commission under this Act, the
12-11    commission may assess an administrative penalty against the person
12-12    as provided by this section.
12-13          (b)  The penalty for each violation shall be set in an amount
12-14    not to exceed $1,000 a day.  Each day a violation continues or
12-15    occurs may be considered a separate violation for the purpose of
12-16    the assessment of a penalty.
12-17          (d)  If, after investigation of a possible violation and the
12-18    facts surrounding that possible violation, the administrator
12-19    determines that a violation has occurred, the administrator may
12-20    issue a violation report stating the facts on which the conclusion
12-21    that a violation occurred is based, recommending that an
12-22    administrative penalty under this section be imposed on the person
12-23    charged, and recommending the amount of that proposed penalty.  The
12-24    administrator shall base the recommended amount of the proposed
12-25    penalty on the seriousness of the violation determined by the
12-26    consideration of the factors set forth in Subsection (c) of this
12-27    section.  The commission may authorize the administrator to
 13-1    delegate authority to another employee of the commission to act
 13-2    under this section.
 13-3          (h)  If the person charged requests a hearing or fails to
 13-4    timely respond to the notice, the administrator shall set a hearing
 13-5    and give notice of the hearing.  The hearing shall be held by a
 13-6    hearing examiner designated by the administrator.  The hearing
 13-7    examiner shall make findings of fact and conclusions of law and
 13-8    promptly issue to the commission a proposal for decision as to the
 13-9    occurrence of the violation, including a recommendation as to the
13-10    amount of the proposed penalty if a penalty is warranted.  Based on
13-11    the findings of fact, conclusions of law, and recommendations of
13-12    the hearing examiner, the commission by order may find a violation
13-13    has occurred and may assess a penalty or may find that no violation
13-14    has occurred.  All proceedings under this subsection are subject to
13-15    Chapter 2001, Government Code.  The commission may authorize the
13-16    hearing examiner to conduct the hearing and to enter a final
13-17    decision [the Administrative Procedure and Texas Register Act
13-18    (Article 6252-13a, Vernon's Texas Civil Statutes)].
13-19          (j)  Within the 30-day period immediately following the date
13-20    on which the order becomes final as provided by Chapter 2001,
13-21    Government Code [Subsection (c), Section 16, Administrative
13-22    Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
13-23    Civil Statutes)], the person charged with the penalty shall:
13-24                (1)  pay the penalty in full; or
13-25                (2)  if the person files a petition for judicial review
13-26    contesting either the amount of the penalty or the fact of the
13-27    violation or contesting both the fact of the violation and the
 14-1    amount of the penalty:
 14-2                      (A)  forward the amount to the administrator for
 14-3    placement in an escrow account; or
 14-4                      (B)  in lieu of payment into escrow, post with
 14-5    the administrator a supersedeas bond in a form approved by the
 14-6    administrator for the amount of the penalty, the bond to be
 14-7    effective until all judicial review of the order or decision is
 14-8    final.
 14-9          (m)  Judicial review of the order or decision of the
14-10    commission assessing the penalty shall be under the substantial
14-11    evidence rule and shall be instituted by filing a petition with a
14-12    district court in Travis County, as provided by Chapter 2001,
14-13    Government Code [Section 19, Administrative Procedure and Texas
14-14    Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)].
14-15          (o)  A penalty collected under this section for a violation
14-16    by a person licensed as a real estate broker or salesperson shall
14-17    be deposited in the real estate recovery trust account [fund].  A
14-18    penalty collected under this section for a violation by a person
14-19    licensed or registered as a real estate inspector shall be
14-20    deposited in the real estate inspection recovery trust fund.  A
14-21    penalty collected under this section for a violation by a person
14-22    who is not licensed under this Act shall be deposited either in the
14-23    real estate recovery trust account or in the real estate inspection
14-24    recovery trust fund.
14-25          SECTION 7.  Section 23(h)(1), The Real Estate License Act
14-26    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
14-27    as follows:
 15-1                (1)  The commission shall charge and collect reasonable
 15-2    and necessary fees to recover the cost of administering this
 15-3    section as follows:
 15-4                      (A)  a fee not to exceed $75 for the filing of an
 15-5    original application for a license as an apprentice inspector;
 15-6                      (B)  a fee not to exceed $125 for the filing of
 15-7    an original application for a license as a real estate inspector;
 15-8                      (C)  a fee not to exceed $150 for the filing of
 15-9    an original application for a license as a professional inspector;
15-10                      (D)  a fee not to exceed $125 for the annual
15-11    license renewal of an apprentice inspector;
15-12                      (E)  a fee not to exceed $175 for the annual
15-13    license renewal of a real estate inspector;
15-14                      (F)  a fee not to exceed $200 for the annual
15-15    license renewal of a professional inspector;
15-16                      (G)  a fee not to exceed $100 for taking a
15-17    license examination; [and]
15-18                      (H)  a fee not to exceed $20 for a request for a
15-19    change of place of business or to replace a lost or destroyed
15-20    license; and
15-21                      (I)  a fee not to exceed $20 for filing a request
15-22    for a change of name on a license, return to active status, or
15-23    change in sponsoring professional inspector.
15-24          SECTION 8.  Section 23(k), The Real Estate License Act
15-25    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
15-26    as follows:
15-27          (k)  Continuing education programs.  The commission shall
 16-1    recognize, prepare, or administer continuing education programs for
 16-2    inspectors.  Participation in the programs is mandatory.  A real
 16-3    estate inspector must submit satisfactory evidence to the
 16-4    commission of successful completion of at least eight [four]
 16-5    classroom hours of core real estate inspection courses annually
 16-6    before a licensed renewal is issued.  A professional inspector must
 16-7    submit satisfactory evidence to the commission of successful
 16-8    completion of at least 16 [eight] classroom hours of core [related]
 16-9    real estate inspection courses annually before a license renewal is
16-10    issued.
16-11          SECTION 9.  Sections 23(o)(3), (7), and (15), The Real Estate
16-12    License Act (Article 6573a, Vernon's Texas Civil Statutes), are
16-13    amended to read as follows:
16-14                (3)  If at any time [on December 31 of any year] the
16-15    balance remaining in the real estate inspection recovery trust fund
16-16    is less than $300,000, each inspector, on the next renewal of the
16-17    person's license, shall pay, in addition to the license renewal
16-18    fee, a fee of $75, or a pro rata share of the amount necessary to
16-19    bring the fund to $450,000, whichever is less, which shall be
16-20    deposited in the real estate inspection recovery trust fund.
16-21    Notwithstanding any other provision of this Act, to ensure that
16-22    sufficient money is available to pay anticipated claims on the
16-23    fund, the commission may provide by rule for the collection of
16-24    assessments at times and under conditions other than those
16-25    specified by this Act.
16-26                (7)  The court shall proceed on the application
16-27    forthwith.  On the hearing on the application, the aggrieved person
 17-1    is required to show:
 17-2                      (A)  that the judgment is based on facts allowing
 17-3    recovery under Subdivision (1) of this subsection;
 17-4                      (B)  that the person is not a spouse of the
 17-5    debtor or the personal representative of the spouse and the person
 17-6    is not an inspector, as defined by this section;
 17-7                      (C)  [that the person has obtained a judgment
 17-8    under Subdivision (6) of this subsection that is not subject to a
 17-9    stay or discharge in bankruptcy, stating the amount of the judgment
17-10    and the amount owing on the judgment at the date of the
17-11    application;]
17-12                      [(D)]  that based on the best information
17-13    available, the judgment debtor lacks sufficient attachable assets
17-14    in this state or any other state to satisfy the judgment; and
17-15                      (D) [(E)]  the amount that may be realized from
17-16    the sale of real or personal property or other assets liable to be
17-17    sold or applied in satisfaction of the judgment and the balance
17-18    remaining due on the judgment after application of the amount that
17-19    may be realized.
17-20                (15)  Notwithstanding any other provision, payments
17-21    from the real estate inspection recovery trust fund are subject to
17-22    the following conditions and limitations:
17-23                      (A)  payments may be made only pursuant to an
17-24    order of a court of competent jurisdiction, as provided by
17-25    Subdivision (6) of this subsection, and in the manner prescribed by
17-26    this subsection;
17-27                      (B)  payments for claims, including attorney
 18-1    fees, interest, and court costs, arising out of the same
 18-2    transaction shall be limited in the aggregate to $10,000 [$7,500]
 18-3    regardless of the number of claimants; and
 18-4                      (C)  payments for claims based on judgments
 18-5    against a licensed inspector may not exceed in the aggregate
 18-6    $30,000 [$15,000] until the fund has been reimbursed by the
 18-7    licensee for all amounts paid.
 18-8          SECTION 10.  (a)  Except as otherwise provided by this
 18-9    section, this Act takes effect September 1, 1999.
18-10          (b)  Section 7(e), The Real Estate License Act (Article
18-11    6573a, Vernon's Texas Civil Statutes), as amended by this Act,
18-12    applies only to an application filed on or after January 1, 2000.
18-13    An application filed before January 1, 2000, is governed by the law
18-14    existing immediately before this Act takes effect.
18-15          (c)  Section 23(k), The Real Estate License Act (Article
18-16    6573a, Vernon's Texas Civil Statutes), as amended by this Act,
18-17    applies only to continuing education requirements for the renewal
18-18    of an inspector license on or after December 31, 1999.
18-19          (d)  Section 23(o)(15), The Real Estate License Act (Article
18-20    6573a, Vernon's Texas Civil Statutes), as amended by this Act,
18-21    applies only to a cause of action that accrues on or after the
18-22    effective date of this Act.  A cause of action that accrues before
18-23    the effective date of this Act is governed by the law in effect on
18-24    the date the cause of action accrued, and that law is continued in
18-25    effect for that purpose.
18-26          SECTION 11.  Section 11, The Real Estate License Act (Article
18-27    6573a, Vernon's Texas Civil Statutes), as amended by this Act,
 19-1    applies only to a fee for a transcript that is evaluated on or
 19-2    after the effective date of this Act.  A fee for a transcript
 19-3    evaluated before the effective date of this Act is governed by the
 19-4    law in effect on the date the transcript was evaluated, and that
 19-5    law is continued in effect for that purpose.
 19-6          SECTION 12.  Section 19A(a), The Real Estate License Act
 19-7    (Article 6573a, Vernon's Texas Civil Statutes), as amended by this
 19-8    Act, applies only to a violation  that occurs on or after the
 19-9    effective date of this Act.  A violation that occurs before the
19-10    effective date of this Act is governed by the law in effect on the
19-11    date the violation occurred, and that law is continued in effect
19-12    for that purpose.