By Pickett                                             H.B. No. 659
         77R1844 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 8(c) and (f), The Real Estate License
1-22     Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
1-23     read as follows:
1-24           (c)  On determination by the commission at any time that [If
 2-1     on December 31 of any year] the balance remaining in the real
 2-2     estate recovery  fund is less than $1 million, each real estate
 2-3     broker and each real estate salesperson, on the next renewal of the
 2-4     license, shall pay, in addition to the license renewal fee, a fee
 2-5     of $10, which shall be deposited in the real estate recovery fund,
 2-6     or a pro rata share of the amount necessary to bring the fund to
 2-7     $1.7 million, whichever is less.  If on December 31 of any year the
 2-8     balance remaining in the real estate recovery fund is more than
 2-9     $3.5 million or more than the total amount of claims paid from the
2-10     fund during the previous four fiscal years, whichever is greater,
2-11     the amount of money in excess of the greater amount shall be
2-12     transferred to the general revenue fund.  To ensure the
2-13     availability of a sufficient amount of money to pay anticipated
2-14     claims on the fund, the  commission by rule may provide for the
2-15     collection of assessments at different times and under conditions
2-16     other than those specified in this Act.
2-17           (f)  The court shall proceed on the application forthwith.
2-18     On the hearing on the application, the aggrieved person is required
2-19     to show that:
2-20                 (1)  the judgment is based on facts allowing recovery
2-21     under Subsection (a)  of this section;
2-22                 (2)  the person is not a spouse of the debtor, or the
2-23     personal representative of the spouse; and the person is not a
2-24     registrant under Section 9A of this Act or a real estate broker or
2-25     salesperson, as defined by this Act, who is seeking to recover a
2-26     real estate commission or any compensation in the transaction or
2-27     transactions for which the application for payment is made;
 3-1                 (3)  [the person has obtained a judgment under
 3-2     Subsection (e) of this section that is not subject to a stay or
 3-3     discharge in bankruptcy, stating the amount of the judgment and the
 3-4     amount owing on the judgment at the date of the application;]
 3-5                 [(4)]  based on the best available information, the
 3-6     judgment debtor lacks sufficient attachable assets in this state or
 3-7     any other state to satisfy the judgment; and
 3-8                 (4) [(5)]  the amount that may be realized from the
 3-9     sale of real or personal property or other assets liable to be sold
3-10     or applied in satisfaction of the judgment and the balance
3-11     remaining due on the judgment after application of the amount that
3-12     may be realized.
3-13           SECTION 3.  Section 11, The Real Estate License Act (Article
3-14     6573a, Vernon's Texas Civil Statutes), is amended to read as
3-15     follows:
3-16           Sec. 11.  The commission shall charge and collect the
3-17     following fees:
3-18                 (1)  a fee not to exceed $100 for the filing of an
3-19     original application for a real estate broker license;
3-20                 (2)  a fee not to exceed $100 for annual renewal of a
3-21     real estate broker license;
3-22                 (3)  a fee not to exceed $50 for the filing of an
3-23     original application for a real estate salesperson license;
3-24                 (4)  a fee not to exceed $50 for annual renewal of a
3-25     real estate salesperson license;
3-26                 (5)  a fee not to exceed $50 for an application for a
3-27     license examination;
 4-1                 (6)  a fee not to exceed $20 for filing a request for a
 4-2     license for each additional office or place of business;
 4-3                 (7)  a fee not to exceed $20 for filing a request for a
 4-4     license or certificate of registration for a change of place of
 4-5     business, change of name, return to active status, or change of
 4-6     sponsoring broker;
 4-7                 (8)  a fee not to exceed $20 for filing a request to
 4-8     replace a license or certificate of registration lost or destroyed;
 4-9                 (9)  a fee not to exceed $400 for filing an application
4-10     for approval of an education program under Section 7(f) of this
4-11     Act;
4-12                 (10)  a fee not to exceed $200 a year for operation of
4-13     an education program under Section 7(f) of this Act;
4-14                 (11)  a fee of $20 [$15] for transcript evaluation;
4-15                 (12)  a fee not to exceed $10 for preparing a license
4-16     or registration history;
4-17                 (13)  a fee not to exceed $50 for the filing of an
4-18     application for a moral character determination;
4-19                 (14)  an annual fee of $20 from each real estate broker
4-20     and each registrant under Section 9A of this Act to be transmitted
4-21     to Texas A&M University for the Texas Real Estate Research Center
4-22     as provided by Section 5(m) of this Act;
4-23                 (15)  an annual fee of $17.50 from each real estate
4-24     salesperson to be transmitted to Texas A&M University for the Texas
4-25     Real Estate Research Center as provided by Section 5(m) of this
4-26     Act;
4-27                 (16)  an annual fee of $80 from each registrant under
 5-1     Section 9A of this Act; and
 5-2                 (17)  any fee authorized under Section 8 of this Act
 5-3     for the real estate recovery fund.
 5-4           SECTION 4.  Section 15(a), The Real Estate License Act
 5-5     (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
 5-6     as follows:
 5-7           (a)  The commission may, on its own motion, and shall, on the
 5-8     signed complaint in writing of any person [a consumer or service
 5-9     recipient], provided the complaint, or the complaint together with
5-10     evidence,  documentary or otherwise, presented in connection with
5-11     the complaint, provides reasonable cause, investigate the actions
5-12     and records of a real estate broker or real estate salesperson.
5-13     The commission may suspend or revoke a license issued under the
5-14     provisions of this Act or take other disciplinary action authorized
5-15     by this Act at any time when it has been determined that:
5-16                 (1)  the licensee has entered a plea of guilty or nolo
5-17     contendere to, or been found guilty of, or been convicted of, a
5-18     felony, in which fraud is an essential element, and the time for
5-19     appeal has elapsed or the judgment or conviction has been affirmed
5-20     on appeal, irrespective of an order granting probation following
5-21     such conviction, suspending the imposition of sentence;
5-22                 (2)  the licensee has procured, or attempted to
5-23     procure, a real estate license, for the licensee or a salesperson,
5-24     by fraud, misrepresentation or deceit, or by making a material
5-25     misstatement of fact in an application for a real estate license;
5-26                 (3)  the licensee, when selling, buying, trading, or
5-27     renting real property in the licensee's own name, engaged in
 6-1     misrepresentation or dishonest or fraudulent action;
 6-2                 (4)  the licensee has failed within a reasonable time
 6-3     to make good a check issued to the commission after the commission
 6-4     has mailed a request for payment by certified mail to the
 6-5     licensee's last known business address as reflected by the
 6-6     commission's records;
 6-7                 (5)  the licensee has disregarded or violated a
 6-8     provision of this Act;
 6-9                 (6)  the licensee, while performing an act constituting
6-10     an act of a broker or salesperson, as defined by this Act, has been
6-11     guilty of:
6-12                       (A)  making a material misrepresentation, or
6-13     failing to disclose to a potential purchaser any latent structural
6-14     defect or any other defect known to the broker or salesperson.
6-15     Latent structural defects and other defects do not refer to trivial
6-16     or insignificant defects but refer to those defects that would be a
6-17     significant factor to a reasonable and prudent purchaser in making
6-18     a decision to purchase;
6-19                       (B)  making a false promise of a character likely
6-20     to influence, persuade, or induce any person to enter into a
6-21     contract or agreement when the licensee could not or did not intend
6-22     to keep such promise;
6-23                       (C)  pursuing a continued and flagrant course of
6-24     misrepresentation or making of false promises through agents,
6-25     salespersons, advertising, or otherwise;
6-26                       (D)  failing to make clear, to all parties to a
6-27     transaction, which party the licensee is acting for, or receiving
 7-1     compensation from more than one party except with the full
 7-2     knowledge and consent of all parties;
 7-3                       (E)  failing within a reasonable time properly to
 7-4     account for or remit money coming into the licensee's possession
 7-5     which belongs to others, or commingling money belonging to others
 7-6     with the licensee's own funds;
 7-7                       (F)  paying a commission or fees to or dividing a
 7-8     commission or fees with anyone not licensed as a real estate broker
 7-9     or salesperson in this state or in any other state for compensation
7-10     for services as a real estate agent;
7-11                       (G)  failing to specify a definite termination
7-12     date that is not subject to prior notice in a contract, other than
7-13     a contract to perform property management services, in which the
7-14     licensee agrees to perform services for which a license is required
7-15     under this Act;
7-16                       (H)  accepting, receiving, or charging an
7-17     undisclosed commission, rebate, or direct profit on expenditures
7-18     made for a principal;
7-19                       (I)  soliciting, selling, or offering for sale
7-20     real property under a scheme or program that constitutes a lottery
7-21     or deceptive practice;
7-22                       (J)  acting in the dual capacity of broker and
7-23     undisclosed principal in a transaction;
7-24                       (K)  guaranteeing, authorizing, or permitting a
7-25     person to guarantee that future profits will result from a resale
7-26     of real property;
7-27                       (L)  placing a sign on real property offering it
 8-1     for sale, lease, or rent without the written consent of the owner
 8-2     or the owner's authorized agent;
 8-3                       (M)  inducing or attempting to induce a party to
 8-4     a contract of sale or lease to break the contract for the purpose
 8-5     of substituting in lieu thereof a new contract;
 8-6                       (N)  negotiating or attempting to negotiate the
 8-7     sale, exchange, lease, or rental of real property with an owner,
 8-8     lessor, buyer, or tenant, knowing that the owner, lessor, buyer, or
 8-9     tenant had a written outstanding contract, granting exclusive
8-10     agency in connection with the transaction to another real estate
8-11     broker;
8-12                       (O)  offering real property for sale or for lease
8-13     without the knowledge and consent of the owner or the owner's
8-14     authorized agent, or on terms other than those authorized by the
8-15     owner or the owner's authorized agent;
8-16                       (P)  publishing, or causing to be published, an
8-17     advertisement including, but not limited to, advertising by
8-18     newspaper, radio, television, the Internet, or display which is
8-19     misleading, or which is likely to deceive the public, or which in
8-20     any manner tends to create a misleading impression, or which fails
8-21     to identify the person causing the advertisement to be published as
8-22     a licensed real estate broker or agent;
8-23                       (Q)  having knowingly withheld from or inserted
8-24     in a statement of account or invoice, a statement that made it
8-25     inaccurate in a material particular;
8-26                       (R)  publishing or circulating an unjustified or
8-27     unwarranted threat of legal proceedings, or other action;
 9-1                       (S)  establishing an association, by employment
 9-2     or otherwise, with an unlicensed person who is expected or required
 9-3     to act as a real estate licensee, or aiding or abetting or
 9-4     conspiring with a person to circumvent the requirements of this
 9-5     Act;
 9-6                       (T)  failing or refusing on demand to furnish
 9-7     copies of a document pertaining to a transaction dealing with real
 9-8     estate to a person whose signature is affixed to the document;
 9-9                       (U)  failing to advise a purchaser in writing
9-10     before the closing of a transaction that the purchaser should
9-11     either have the abstract covering the real estate which is the
9-12     subject of the contract examined by an attorney of the purchaser's
9-13     own selection, or be furnished with or obtain a policy of title
9-14     insurance;
9-15                       (V)  conduct which constitutes dishonest
9-16     dealings, bad faith, or untrustworthiness;
9-17                       (W)  acting negligently or incompetently in
9-18     performing an act for which a person is required to hold a real
9-19     estate license;
9-20                       (X)  disregarding or violating a provision of
9-21     this Act;
9-22                       (Y)  failing within a reasonable time to deposit
9-23     money received as escrow agent in a real estate transaction, either
9-24     in trust with a title company authorized to do business in this
9-25     state, or in a custodial, trust, or escrow account maintained for
9-26     that purpose in a banking institution authorized to do business in
9-27     this state;
 10-1                      (Z)  disbursing money deposited in a custodial,
 10-2    trust, or escrow account, as provided in Subsection (Y) before the
 10-3    transaction concerned has been consummated or finally otherwise
 10-4    terminated; or
 10-5                      (AA)  discriminating against an owner, potential
 10-6    purchaser, lessor, or potential lessee on the basis of race, color,
 10-7    religion, sex, national origin, or ancestry, including directing
 10-8    prospective home buyers or lessees interested in equivalent
 10-9    properties to different areas according to the race, color,
10-10    religion, sex, national origin, or ancestry of the potential owner
10-11    or lessee;
10-12                (7)  the licensee has failed or refused on demand to
10-13    produce a document, book, or record in the licensee's possession
10-14    concerning a real estate transaction conducted by the licensee for
10-15    inspection by the commission or its authorized personnel or
10-16    representative;
10-17                (8)  the licensee has failed within a reasonable time
10-18    to provide information requested by the commission as a result of a
10-19    formal or informal complaint to the commission which would indicate
10-20    a violation of this Act; or
10-21                (9)  the licensee has failed without just cause to
10-22    surrender to the rightful owner, on demand, a document or
10-23    instrument coming into the licensee's possession.
10-24          SECTION 5.  Section 15B(e), The Real Estate License Act
10-25    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
10-26    as follows:
10-27          (e)  The commission may authorize a commission employee to
 11-1    file a signed written complaint against a licensee and to conduct
 11-2    an investigation if:
 11-3                (1)  a judgment against the licensee has been paid from
 11-4    a recovery fund established under this Act;
 11-5                (2)  the licensee is convicted of a criminal offense
 11-6    that may constitute grounds for the suspension or revocation of the
 11-7    licensee's license;  [or]
 11-8                (3)  the licensee fails to make good a check issued to
 11-9    the commission;
11-10                (4)  the licensee fails to comply with a commission
11-11    rule adopted under Section 7A(g) of this Act; or
11-12                (5)  the licensee fails to provide, within a reasonable
11-13    time, information requested by the commission in connection with an
11-14    application to renew a license.
11-15          SECTION 6.  Sections 19A(a), (b), (d), (h), (m), and (o), The
11-16    Real Estate License Act (Article 6573a, Vernon's Texas Civil
11-17    Statutes), are amended to read as follows:
11-18          (a)  If a person [licensed under this Act] violates this Act
11-19    or a rule or order adopted by the commission under this Act, the
11-20    commission may assess an administrative penalty against the person
11-21    as provided by this section.
11-22          (b)  The penalty for each violation shall be set in an amount
11-23    not to exceed $1,000 a day.  Each day a violation continues or
11-24    occurs may be considered a separate violation for purposes of
11-25    penalty assessment.
11-26          (d)  If, after investigation of a possible violation and the
11-27    facts surrounding that possible violation, the administrator
 12-1    determines that a violation has occurred, the administrator may
 12-2    issue a violation report stating the facts on which the conclusion
 12-3    that a violation occurred is based, recommending that an
 12-4    administrative penalty under this section be imposed on the person
 12-5    charged, and recommending the amount of that proposed penalty.  The
 12-6    administrator shall base the recommended amount of the proposed
 12-7    penalty on the seriousness of the violation determined by the
 12-8    consideration of the factors set forth in Subsection (c) of this
 12-9    section.  The commission may authorize the administrator to
12-10    delegate to another commission employee the administrator's
12-11    authority to act under this section.
12-12          (h)  If the person charged requests a hearing or fails to
12-13    timely respond to the notice, the administrator shall set a hearing
12-14    and give notice of the hearing.  The hearing shall be held by a
12-15    hearing examiner designated by the administrator.  The hearing
12-16    examiner shall make findings of fact and conclusions of law and
12-17    promptly issue to the commission a proposal for decision as to the
12-18    occurrence of the violation, including a recommendation as to the
12-19    amount of the proposed penalty if a penalty is warranted.  Based on
12-20    the findings of fact, conclusions of law, and recommendations of
12-21    the hearing examiner, the commission by order may find a violation
12-22    has occurred and may assess a penalty or may find that no violation
12-23    has occurred.  All proceedings under this subsection are subject to
12-24    Chapter 2001, Government Code [the Administrative Procedure and
12-25    Texas Register Act (Article 6252-13a, Vernon's Texas Civil
12-26    Statutes)].  The commission may authorize the hearing examiner to
12-27    conduct the hearing and enter a final decision.
 13-1          (m)  Judicial review of the order or decision of the
 13-2    commission assessing the penalty shall be under the substantial
 13-3    evidence rule and shall be instituted by filing a petition with a
 13-4    district court in Travis County, as provided by Chapter 2001,
 13-5    Government Code [Section 19, Administrative Procedure and Texas
 13-6    Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)].
 13-7          (o)  A penalty collected under this section for a violation
 13-8    by a person licensed as a real estate broker or salesperson shall
 13-9    be deposited in the real estate recovery fund.  A penalty collected
13-10    under this section for a violation by a person licensed or
13-11    registered as a real estate inspector shall be deposited in the
13-12    real estate inspection recovery fund.  A penalty collected under
13-13    this section for a violation by a person who is not licensed under
13-14    this Act shall be deposited in the real estate recovery fund or the
13-15    real estate inspection recovery fund, as determined by the
13-16    commission.
13-17          SECTION 7.  Section 23(h)(1), The Real Estate License Act
13-18    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
13-19    as follows:
13-20                (1)  The commission shall charge and collect reasonable
13-21    and necessary fees to recover the cost of administering this
13-22    section as follows:
13-23                      (A)  a fee not to exceed $75 for the filing of an
13-24    original application for a license as an apprentice inspector;
13-25                      (B)  a fee not to exceed $125 for the filing of
13-26    an original application for a license as a real estate inspector;
13-27                      (C)  a fee not to exceed $150 for the filing of
 14-1    an original application for a license as a professional inspector;
 14-2                      (D)  a fee not to exceed $125 for the annual
 14-3    license renewal of an apprentice inspector;
 14-4                      (E)  a fee not to exceed $175 for the annual
 14-5    license renewal of a real estate inspector;
 14-6                      (F)  a fee not to exceed $200 for the annual
 14-7    license renewal of a professional inspector;
 14-8                      (G)  a fee not to exceed $100 for taking a
 14-9    license examination; [and]
14-10                      (H)  a fee not to exceed $20 for a request for a
14-11    change of place of business or to replace a lost or destroyed
14-12    license; and
14-13                      (I)  a fee not to exceed $20 for filing a request
14-14    for issuance of a license because of a change of name, return to
14-15    active status, or change in sponsoring professional inspector.
14-16          SECTION 8.  Section 23(i)(1), The Real Estate License Act
14-17    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
14-18    as follows:
14-19                (1)  The commission shall prescribe the licensing
14-20    examinations, which shall be prepared by or contracted for by the
14-21    commission.  A licensing examination shall evaluate competency in
14-22    the subject matter of all required core real estate inspection
14-23    courses.  The licensing examination shall be offered not less often
14-24    than once every two months in Austin.  If a license applicant fails
14-25    the examination, the applicant may apply for reexamination by
14-26    filing a request with the commission and paying the examination
14-27    fee.  Each license applicant must satisfy the examination
 15-1    requirement not later than six months after the date on which the
 15-2    license application is filed.  A license applicant who fails to
 15-3    satisfy the examination requirement within six months after the
 15-4    date on which the license application is filed must submit a new
 15-5    license application with the commission and pay the examination fee
 15-6    to be eligible for examination.  The commission by rule may limit
 15-7    the number of times an applicant may take all or part of the
 15-8    examination and may set a reasonable waiting period before a person
 15-9    who fails an examination may file another application.  The rules
15-10    adopted by the commission may permit a person to file another
15-11    application without regard to the waiting period if the person has
15-12    completed additional courses of study specified by the commission.
15-13    [If a license applicant fails the examination three consecutive
15-14    times in connection with the same application, the applicant may
15-15    not apply for reexamination or submit a new license application
15-16    with the commission for six months from the date he failed the last
15-17    examination.]
15-18          SECTION 9.  Section 23(k), The Real Estate License Act
15-19    (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
15-20    as follows:
15-21          (k)  Continuing education programs.  The commission shall
15-22    recognize, prepare, or administer continuing education programs for
15-23    inspectors.  Participation in the programs is mandatory.  A real
15-24    estate inspector must submit satisfactory evidence to the
15-25    commission of successful completion of at least eight [four]
15-26    classroom hours of core real estate inspection courses annually
15-27    before a license [licensed] renewal is issued.  A professional
 16-1    inspector must submit satisfactory evidence to the commission of
 16-2    successful completion of at least 16 [eight] classroom hours of
 16-3    core [related] real estate inspection courses annually before a
 16-4    license renewal is issued.
 16-5          SECTION 10.  Sections 23(o)(3), (7), and (15), The Real
 16-6    Estate License Act (Article 6573a, Vernon's Texas Civil Statutes),
 16-7    are amended to read as follows:
 16-8                (3)  If at [on December 31 of] any time [year] the
 16-9    balance remaining in the real estate inspection recovery fund is
16-10    less than $300,000, each inspector, on the next renewal of the
16-11    person's license, shall pay, in addition to the license renewal
16-12    fee, a fee of $75, or a pro rata share of the amount necessary to
16-13    bring the fund to $450,000, whichever is less, which shall be
16-14    deposited in the real estate inspection recovery fund.  To ensure
16-15    the availability of a sufficient amount of money to pay anticipated
16-16    claims on the fund, the commission by rule may provide for the
16-17    collection of assessments at different times and under conditions
16-18    other than those specified by this Act.
16-19                (7)  The court shall proceed on the application
16-20    forthwith.  On the hearing on the application, the aggrieved person
16-21    is required to show:
16-22                      (A)  that the judgment is based on facts allowing
16-23    recovery under Subdivision (1) of this subsection;
16-24                      (B)  that the person is not a spouse of the
16-25    debtor or the personal representative of the spouse and the person
16-26    is not an inspector, as defined by this section;
16-27                      (C)  [that the person has obtained a judgment
 17-1    under Subdivision (6) of this subsection that is not subject to a
 17-2    stay or discharge in bankruptcy, stating the amount of the judgment
 17-3    and the amount owing on the judgment at the date of the
 17-4    application;]
 17-5                      [(D)]  that based on the best information
 17-6    available, the judgment debtor lacks sufficient attachable assets
 17-7    in this state or any other state to satisfy the judgment; and
 17-8                      (D) [(E)]  the amount that may be realized from
 17-9    the sale of real or personal property or other assets liable to be
17-10    sold or applied in satisfaction of the judgment and the balance
17-11    remaining due on the judgment after application of the amount that
17-12    may be realized.
17-13                (15)  Notwithstanding any other provision, payments
17-14    from the real estate inspection recovery fund are subject to the
17-15    following conditions and limitations:
17-16                      (A)  payments may be made only pursuant to an
17-17    order of a court of competent jurisdiction, as provided by
17-18    Subdivision (6) of this subsection, and in the manner prescribed by
17-19    this subsection;
17-20                      (B)  payments for claims, including attorney
17-21    fees, interest, and court costs, arising out of the same
17-22    transaction shall be limited in the aggregate to $10,000 [$7,500]
17-23    regardless of the number of claimants; and
17-24                      (C)  payments for claims based on judgments
17-25    against a licensed inspector may not exceed in the aggregate
17-26    $30,000 [$15,000] until the fund has been reimbursed by the
17-27    licensee for all amounts paid.
 18-1          SECTION 11.  (a)  This Act takes effect September 1, 2001.
 18-2          (b)  The change in law made by this Act to Section 23(k), The
 18-3    Real Estate License Act (Article 6573a, Vernon's Texas Civil
 18-4    Statutes), applies only to the renewal of a real estate inspector
 18-5    or professional inspector license that expires on or after December
 18-6    31, 2001.  A license that expires before that date is governed by
 18-7    the law in effect on the date the license expired, and the former
 18-8    law is continued in effect for that purpose.
 18-9          (c)  The change in law made to Sections 8(f) and 23(o)(7),
18-10    The Real Estate License Act (Article 6573a, Vernon's Texas Civil
18-11    Statutes), applies only to a cause of action that arises on or
18-12    after the effective date of this Act.  A cause of action that
18-13    arises before the effective date of this Act is governed by the law
18-14    in effect on the date the cause of action arose, and the former law
18-15    is continued in effect for that purpose.
18-16          (d)  A change in law made by this Act that relates to a
18-17    disciplinary action or imposition of an administrative penalty
18-18    applies only to a violation of The Real Estate License Act (Article
18-19    6573a, Vernon's Texas Civil Statutes) that occurs on or after the
18-20    effective date of this Act.  A violation that occurs before the
18-21    effective date of this Act is governed by the law in effect on the
18-22    date the violation occurred, and the former law is continued in
18-23    effect for that purpose.