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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Subchapter C,
Chapter 1102, Occupations Code, is amended.
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SECTION 1. Same as introduced
version.
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SECTION 2. Section 1102.109,
Occupations Code, is amended.
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SECTION 2. Same as
introduced version.
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SECTION 3. Section 1102.110,
Occupations Code, is amended to read as follows:
Sec. 1102.110. ELIGIBILITY
OF PREVIOUS LICENSE HOLDERS. (a) Notwithstanding Section 1102.108, an
applicant is eligible for and has satisfied all requirements for a real
estate inspector license if the applicant:
(1) held a real estate
inspector license during the 24-month period preceding the date the
application is filed;
(2) is sponsored by a
professional inspector; [and]
(3) provides evidence
that the applicant has completed any continuing education that would have
been required for timely renewal of the previous license; and
(4) satisfies the
commission as to the applicant's honesty, trustworthiness, and integrity.
(b) Notwithstanding Section
1102.109, an applicant is eligible for and has satisfied all requirements
for a professional inspector license if the applicant:
(1) held a professional
inspector license during the 24-month period preceding the date the
application is filed; [and]
(2) provides evidence
that the applicant has completed any
continuing education that would have been required for timely renewal of
the previous license; and
(3) satisfies the
commission as to the applicant's honesty, trustworthiness, and integrity.
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SECTION 3. Section 1102.110,
Occupations Code, is amended to read as follows:
Sec. 1102.110. ELIGIBILITY
OF PREVIOUS LICENSE HOLDERS. (a) Notwithstanding Section 1102.108, an
applicant is eligible for and has satisfied all requirements for a real
estate inspector license if the applicant:
(1) held a real estate
inspector license during the 24-month period preceding the date the
application is filed;
(2) is sponsored by a
professional inspector; [and]
(3) satisfies the commission
as to the applicant's honesty, trustworthiness, and integrity; and
(4) submits evidence satisfactory to the commission of successful
completion of not less than the number of hours of continuing education
courses that would have been required for the applicant to renew the
license described by Subdivision (1).
(b) Notwithstanding Section
1102.109, an applicant is eligible for and has satisfied all requirements
for a professional inspector license if the applicant:
(1) held a professional
inspector license during the 24-month period preceding the date the
application is filed; [and]
(2) satisfies the
commission as to the applicant's honesty, trustworthiness, and integrity;
and
(3) submits evidence satisfactory to the commission of successful
completion of not less than the number of
hours of continuing education courses that would have been required
for the applicant to renew the license described by Subdivision (1).
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SECTION 4. Section
1102.111(b), Occupations Code, is amended.
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SECTION 4. Same as introduced
version.
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SECTION 5. Section 1102.114,
Occupations Code, is amended to read as follows:
Sec. 1102.114. ISSUANCE OF
LICENSE. The commission shall issue the appropriate license to an
applicant who:
(1) meets the required
qualifications; and
(2) has submitted proof
of financial responsibility with the commission by:
(A) providing a
certificate of insurance verifying coverage as required by Section
1102.1141; or
(B) filing a bond, or
other security accepted by the commission, that meets the requirements of
Section 1102.1142 [pays the fee required by Section 1102.352(a); and
[(3) offers proof that the
applicant carries liability insurance with a minimum limit of $100,000 per
occurrence to protect the public against a violation of Subchapter G].
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SECTION 5. Section 1102.114,
Occupations Code, is amended to read as follows:
Sec. 1102.114. ISSUANCE OF
LICENSE. The commission shall issue the appropriate license to an
applicant who:
(1) meets the required
qualifications; and
(2) submits [pays
the fee required by Section 1102.352(a); and
[(3) offers] proof of
financial responsibility as required by Section 1102.1141 [that the
applicant carries liability insurance with a minimum limit of $100,000 per
occurrence to protect the public against a violation of Subchapter G].
(See SECTION 6, Section
1102.1141(a)(2), below)
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SECTION 6. Subchapter C,
Chapter 1102, Occupations Code, is amended by adding Section 1102.1141 to
read as follows:
Sec. 1102.1141. INSURANCE
COVERAGE. Insurance obtained by an applicant
or inspector to meet the financial
responsibility requirement of Section 1102.114 must:
(1) be written by an
insurer authorized to engage in the business of insurance in this state, a
risk retention group as defined by Chapter 2201, Insurance Code, or an
eligible surplus lines insurer, as defined by Section 981.002, Insurance
Code;
(2) specifically provide
for professional liability insurance to protect the public against a
violation of Subchapter G; and
(3) provide coverage with
a minimum limit of $100,000 per occurrence, and a total annual aggregate of
not less than $100,000.
(See SECTION 5, Section
1102.114(2)(B), above)
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SECTION 6. Subchapter C,
Chapter 1102, Occupations Code, is amended by adding Section 1102.1141 to
read as follows:
Sec. 1102.1141. FINANCIAL
RESPONSIBILITY REQUIREMENT. (a) An
inspector must maintain financial
responsibility in the form of:
(1) a liability insurance
policy with a minimum limit of $100,000 per occurrence and an aggregate
annual total of at least $100,000, and that:
(A) is written by an
insurer authorized to engage in the business of insurance in this state, a
risk retention group as defined by Chapter 2201, Insurance Code, or an
eligible surplus lines insurer, as defined by Section 981.002, Insurance
Code; and
(B) specifically provides
for professional liability coverage to protect the public against a
violation of Subchapter G; or
(2) a bond or other
security accepted by the commission.
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SECTION 7. Subchapter C,
Chapter 1102, Occupations Code, is amended by adding Section 1102.1142 to
read as follows:
Sec. 1102.1142. BOND OR
OTHER SECURITY.
(a) A bond, or other
security accepted by the commission, submitted by an applicant or inspector
to meet the financial responsibility requirement Section 1102.114 must be:
(1) issued by a carrier
admitted in this state in an amount not less than $100,000; and
(2) continuous.
(b) A surety may not
cancel a bond or other security issued under Subsection (a) unless the
surety provides at least 90 days written notice of cancellation to the
commission.
(c) Any security provided
under this section in a form other than a bond must be convertible to cash
by the commission for the benefit of persons who contract with an inspector
in this state, without resort to the courts, if the commission determines
that the inspector has violated Subchapter G. Any amount remaining after
the inspector's license has expired must be returned to the inspector not
later than the sixth month after the date the license expires.
(d) An applicant or inspector who files a bond
or other security under this section must designate a third party not
affiliated with the applicant or inspector to handle the processing of
claims regarding that bond or other security.
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SECTION 6. (continued)
(b) A bond posted as
security under Subsection (a)(2) must:
(1) be issued by a
carrier admitted in this state;
(2) be in an amount not
less than $100,000;
(3) be continuous; and
(4) be cancellable by the
surety only after the surety has provided at least 90 days' written notice
to the commission before the effective date of the cancellation.
(c) Any security provided
under this section in a form other than a bond must be convertible to cash
by the commission for the benefit of a person who contracts with an
inspector in this state, without requiring approval of a court, if the
commission determines that the inspector has violated Subchapter G. Any
amount remaining after an inspector's license has expired shall be returned
to the inspector not later than the 180th day after the date the license
expires.
(d) An inspector who
posts a bond or other security under this section must designate an
unaffiliated third party to handle the processing of any claim regarding
the bond or other security.
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SECTION 8. Section 1102.118,
Occupations Code, is amended to read as follows:
Sec. 1102.118. CONTACT
INFORMATION [CHANGE OF ADDRESS]. (a) An applicant or inspector shall provide the commission a
current mailing address and telephone number, and an e-mail address if
available.
(b) Not later than
the 30th day after the date an inspector changes the inspector's address,
e-mail address, or telephone number [place of business], the
inspector shall notify the commission and pay any [the]
required fee.
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SECTION 7. Section 1102.118,
Occupations Code, is amended to read as follows:
Sec. 1102.118. CONTACT
INFORMATION [CHANGE OF ADDRESS].
(a) An inspector shall
provide the commission with a current mailing address, telephone number,
and, if available, e-mail address.
(b) Not later than
the 30th day after the date of a change in the mailing address,
telephone number, or e-mail address of an inspector [changes the
inspector's place of business], the inspector shall notify the
commission of the change and pay any [the] required
fee.
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SECTION 9. Section 1102.153,
Occupations Code, is amended.
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SECTION 8. Substantially the
same as introduced version.
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SECTION 10. Section
1102.155(b), Occupations Code, is amended.
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SECTION 9. Substantially the
same as introduced version.
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SECTION 11. Section
1102.202, Occupations Code, is amended.
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SECTION 10. Substantially
the same as introduced version.
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SECTION 12. Section
1102.203, Occupations Code, is amended to read as follows:
Sec. 1102.203. RENEWAL OF
LICENSE. (a) A person may renew an unexpired license by paying the
required renewal fee to the commission before the expiration date of the
license and providing proof of financial responsibility [professional
liability insurance] as required by Section
1102.114.
(((New Subsection (b) is
parallel to Section 1101.451(e).)))
(b) A person whose
license has been expired for 90 days or less may renew the license by
paying to the commission a fee equal to 1-1/2 times the required renewal
fee. If a license has been expired for more than 90 days but less than six
months, the person may renew the license by paying to the commission a fee
equal to two times the required renewal fee.
(c) If the person's
license has been expired for six months or longer [expires],
the person may not renew the license. The person may obtain a new license
by submitting to reexamination, if required, and complying with the
requirements and procedures for obtaining an original license.
(d) Each applicant for
the renewal of a license must disclose in the
license application whether the applicant has:
(1) entered a plea of
guilty or nolo contendere to a felony; or
(2) been convicted of a
felony and the time for appeal has elapsed or the judgment or conviction
has been affirmed on appeal.
(e) The disclosure under Subsection
(d) must be provided even if an order has granted community supervision
suspending the imposition of the sentence.
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SECTION 11. Section
1102.203, Occupations Code, is amended to read as follows:
Sec. 1102.203. RENEWAL OF
LICENSE; INFORMATION REQUIRED. (a) A person may renew an unexpired
license by paying the required renewal fee to the commission before the
expiration date of the license and providing proof of financial
responsibility [liability insurance] as required by Section 1102.1141 [1102.114(3)].
No
equivalent provision.
(a-1) A person whose
license has been expired for 90 days or less may renew the license by
paying to the commission a fee equal to 1-1/2 times the required renewal
fee. If a license has been expired for more than 90 days but less than six
months, the person may renew the license by paying to the commission a fee
equal to two times the required renewal fee.
(b) If the person's license has
been expired for six months or longer [expires], the person may
not renew the license. The person may obtain a new license by submitting
to reexamination, if required, and complying with the requirements and
procedures for obtaining an original license.
(c) Each applicant for
renewal of a license must disclose to the
commission whether the applicant has:
(1) entered a plea of
guilty or nolo contendere to a felony; or
(2) been convicted of a
felony and the time for appeal has elapsed or the judgment or conviction
has been affirmed on appeal.
(d) The disclosure under
Subsection (c) must be provided even if an order has granted community
supervision suspending the imposition of the sentence.
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SECTION 13. Section
1102.402(c), Occupations Code, is amended.
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SECTION 12. Substantially
the same as introduced version.
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SECTION 14. Section
1102.403(b), Occupations Code, is amended.
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SECTION 13. Substantially
the same as introduced version.
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No
equivalent provision.
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SECTION 14. Section
1101.603(d), Occupations Code, is amended to read as follows:
(d) An administrative
penalty collected under Subchapter O for a violation by a person who is not
licensed under this chapter or Chapter 1102 shall be deposited to the
credit of the trust account [or the real estate inspection recovery
fund, as determined by the commission].
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SECTION 15. The following
provisions of Chapter 1102, Occupations Code, are repealed:
(1) Section 1102.252;
(2) Section 1102.253; and
(3) Subchapter H.
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SECTION 15. Substantially the
same as introduced version.
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SECTION 16. (a) In this
section:
(1) "Commission"
means the Texas Real Estate Commission.
(2) "Eligible
inspector" means a person who holds a real estate or professional
inspector license under Chapter 1102, Occupation Code, as of September 1,
2013.
(b) Not later than August
31, 2015, the commission shall transfer not less than $300,000 from the
real estate inspection recovery fund to the general revenue fund.
(c) Not later than August 31, 2017, the commission shall determine
the remaining liability of the real estate inspection recovery fund based
on any pending claim for payment under former Subchapter H, Chapter 1102,
Occupations Code.
(d) The commission shall
refund to each eligible inspector who also holds a license as of the date
of the refund any amount in excess of the remaining liability of the real
estate inspection recovery fund at a rate not to exceed $100.
(e) Once all refunds to the
inspectors are paid and all claims for payment from the real estate
inspection recovery fund are paid, the commission shall transfer any
remaining money to the general revenue fund.
(f) Any money transferred to
the general revenue fund under this section offsets any amounts due from
the commission to the general revenue fund.
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SECTION 16. (a) In this
section:
(1) "Commission"
means the Texas Real Estate Commission.
(2) "Eligible
inspector" means a person who holds a real estate inspector license or
professional inspector license under Chapter 1102, Occupations Code, as of
September 1, 2013.
(b) Not later than August
31, 2015, the commission shall transfer not less than $300,000 from the
real estate inspection recovery fund to the general revenue fund.
(c) Not later than November 1, 2017, the commission shall
determine the remaining liability of the real estate inspection recovery
fund based on any pending claims for payment under former Subchapter H,
Chapter 1102, Occupations Code.
(d) After determining the
remaining liability under Subsection (c) of this section, the commission
shall refund to each eligible inspector a portion of the amount in excess
of the remaining liability of the real estate inspection recovery fund, if
the eligible inspector holds a license issued under Chapter 1102,
Occupations Code, as of the date of the refund. A refund under this
subsection may not exceed $100 per person.
(e) The commission shall
transfer any money remaining in the real estate inspection recovery fund to
the general revenue fund after paying all claims for payment from the fund
and issuing refunds under Subsection (d) of this section.
(f) Any money transferred to
the general revenue fund under this section shall offset any amount
required to be remitted to the general revenue fund by the commission.
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SECTION 17. (a) The changes
in law made by this Act apply only to an application for a license
submitted to the Texas Real Estate Commission on or after September 1,
2013. An application for a license submitted before that date is governed
by the law in effect on the date the application was submitted, and the
former law is continued in effect for that purpose.
No
equivalent provision.
No
equivalent provision.
(b) The changes in law made
by this Act apply only to a claim for payment from the real estate
inspection recovery fund based on a cause of action that accrues on or
after the effective date of this Act. A claim for payment based on a cause
of action that accrues before the effective date of this Act is governed by
the law in effect when the cause of action accrued, and the former law is
continued in effect for that purpose.
(c) A claim for payment from
the real estate inspection recovery fund under former Section 1102.355,
Occupations Code, for a cause of action that accrues before September 1,
2013, must be filed before September 1, 2017.
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SECTION 17. (a) Sections
1102.1051 and 1102.1141, Occupations Code, as added by this Act, and
Sections 1102.109, 1102.110, 1102.111, 1102.114, 1102.153, 1102.155, and
1102.402, Occupations Code, as amended by this Act, apply only to an
application for an inspector license submitted to the Texas Real Estate
Commission on or after the effective date of this Act. An application for
a license submitted before that date is governed by the law in effect on
the date the application was submitted, and the former law is continued in
effect for that purpose.
(b) Sections 1102.203 and
1102.402, Occupations Code, as amended by this Act, and Sections 1102.1051
and 1102.1141, Occupations Code, as added by this Act, apply only to the
renewal of an inspector license that expires on or after the effective date
of this Act. A license that expires before that date is governed by the
law in effect on the date the license expires, and the former law is continued
in effect for that purpose.
(c) Sections 1102.403 and
1101.603, Occupations Code, as amended by this Act, apply only to an
administrative penalty that is collected on or after the effective date of
this Act. An administrative penalty that is collected before the effective
date of this Act is governed by the law in effect on the date the
administrative penalty was collected, and the former law is continued in
effect for that purpose.
No
equivalent provision.
(d) A claim for payment from
the real estate inspection recovery fund under former Section 1102.355,
Occupations Code, for a cause of action that accrues before September 1,
2013, must be filed before September 1, 2017.
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SECTION 18. This Act takes
effect September 1, 2013.
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SECTION 18. Same as
introduced version.
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