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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of real estate inspectors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 1102, Occupations Code, is |
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amended by adding Section 1102.1051 to read as follows: |
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Sec. 1102.1051. CRIMINAL HISTORY RECORD INFORMATION |
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REQUIREMENT FOR LICENSE. (a) The commission shall require that an |
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applicant for a license or renewal of an unexpired license submit a |
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complete and legible set of fingerprints, on a form prescribed by |
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the commission, to the commission or to the Department of Public |
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Safety for the purpose of obtaining criminal history record |
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information from the Department of Public Safety and the Federal |
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Bureau of Investigation. |
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(b) The commission shall refuse to issue a license to or |
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renew the license of a person who does not comply with the |
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requirement of Subsection (a). |
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(c) The commission shall conduct a criminal history check of |
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each applicant for a license or renewal of a license using |
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information: |
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(1) provided by the individual under this section; and |
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(2) made available to the commission by the Department |
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of Public Safety, the Federal Bureau of Investigation, and any |
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other criminal justice agency under Chapter 411, Government Code. |
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(d) The commission may: |
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(1) enter into an agreement with the Department of |
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Public Safety to administer a criminal history check required under |
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this section; and |
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(2) authorize the Department of Public Safety to |
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collect from each applicant the costs incurred by the department in |
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conducting the criminal history check. |
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SECTION 2. Section 1102.109, Occupations Code, is amended |
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to read as follows: |
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Sec. 1102.109. ELIGIBILITY FOR PROFESSIONAL INSPECTOR |
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LICENSE. To be eligible for a professional inspector license, an |
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applicant must: |
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(1) at the time of application have: |
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(A) held a real estate inspector license for at |
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least 12 months; and |
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(B) performed at least 175 real estate |
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inspections under indirect supervision; |
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(2) submit evidence satisfactory to the commission of |
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successful completion of at least 40 [30] classroom hours of core |
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real estate inspection courses, in addition to the hours required |
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by Section 1102.108 [, and at least eight classroom hours related to
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the study of standards of practice, legal issues, or ethics related
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to the practice of real estate inspecting]; |
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(3) demonstrate competence based on the examination |
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under Subchapter D; and |
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(4) satisfy the commission as to the applicant's |
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honesty, trustworthiness, integrity, and competence. |
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SECTION 3. Section 1102.110, Occupations Code, is amended |
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to read as follows: |
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Sec. 1102.110. ELIGIBILITY OF PREVIOUS LICENSE HOLDERS. |
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(a) Notwithstanding Section 1102.108, an applicant is eligible for |
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and has satisfied all requirements for a real estate inspector |
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license if the applicant: |
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(1) held a real estate inspector license during the |
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24-month period preceding the date the application is filed; |
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(2) is sponsored by a professional inspector; [and] |
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(3) provides evidence that the applicant has completed |
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any continuing education that would have been required for timely |
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renewal of the previous license; and |
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(4) satisfies the commission as to the applicant's |
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honesty, trustworthiness, and integrity. |
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(b) Notwithstanding Section 1102.109, an applicant is |
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eligible for and has satisfied all requirements for a professional |
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inspector license if the applicant: |
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(1) held a professional inspector license during the |
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24-month period preceding the date the application is filed; [and] |
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(2) provides evidence that the applicant has completed |
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any continuing education that would have been required for timely |
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renewal of the previous license; and |
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(3) satisfies the commission as to the applicant's |
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honesty, trustworthiness, and integrity. |
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SECTION 4. Section 1102.111(b), Occupations Code, is |
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amended to read as follows: |
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(b) Rules adopted under Subsection (a) may not require an |
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applicant to: |
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(1) complete more than 320 additional [classroom] |
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hours of core real estate inspection courses; or |
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(2) have more than seven years of relevant experience. |
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SECTION 5. Section 1102.114, Occupations Code, is amended |
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to read as follows: |
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Sec. 1102.114. ISSUANCE OF LICENSE. The commission shall |
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issue the appropriate license to an applicant who: |
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(1) meets the required qualifications; and |
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(2) has submitted proof of financial responsibility |
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with the commission by: |
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(A) providing a certificate of insurance |
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verifying coverage as required by Section 1102.1141; or |
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(B) filing a bond, or other security accepted by |
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the commission, that meets the requirements of Section |
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1102.1142 [pays the fee required by Section 1102.352(a); and
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[(3) offers proof that the applicant carries liability
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insurance with a minimum limit of $100,000 per occurrence to
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protect the public against a violation of Subchapter G]. |
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SECTION 6. Subchapter C, Chapter 1102, Occupations Code, is |
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amended by adding Section 1102.1141 to read as follows: |
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Sec. 1102.1141. INSURANCE COVERAGE. Insurance obtained by |
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an applicant or inspector to meet the financial responsibility |
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requirement of Section 1102.114 must: |
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(1) be written by an insurer authorized to engage in |
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the business of insurance in this state, a risk retention group as |
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defined by Chapter 2201, Insurance Code, or an eligible surplus |
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lines insurer, as defined by Section 981.002, Insurance Code; |
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(2) specifically provide for professional liability |
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insurance to protect the public against a violation of Subchapter |
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G; and |
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(3) provide coverage with a minimum limit of $100,000 |
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per occurrence, and a total annual aggregate of not less than |
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$100,000. |
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SECTION 7. Subchapter C, Chapter 1102, Occupations Code, is |
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amended by adding Section 1102.1142 to read as follows: |
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Sec. 1102.1142. BOND OR OTHER SECURITY. (a) A bond, or |
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other security accepted by the commission, submitted by an |
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applicant or inspector to meet the financial responsibility |
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requirement Section 1102.114 must be: |
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(1) issued by a carrier admitted in this state in an |
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amount not less than $100,000; and |
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(2) continuous. |
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(b) A surety may not cancel a bond or other security issued |
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under Subsection (a) unless the surety provides at least 90 days |
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written notice of cancellation to the commission. |
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(c) Any security provided under this section in a form other |
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than a bond must be convertible to cash by the commission for the |
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benefit of persons who contract with an inspector in this state, |
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without resort to the courts, if the commission determines that the |
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inspector has violated Subchapter G. Any amount remaining after the |
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inspector's license has expired must be returned to the inspector |
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not later than the sixth month after the date the license expires. |
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(d) An applicant or inspector who files a bond or other |
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security under this section must designate a third party not |
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affiliated with the applicant or inspector to handle the processing |
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of claims regarding that bond or other security. |
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SECTION 8. Section 1102.118, Occupations Code, is amended |
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to read as follows: |
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Sec. 1102.118. CONTACT INFORMATION [CHANGE OF ADDRESS]. (a) |
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An applicant or inspector shall provide the commission a current |
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mailing address and telephone number, and an e-mail address if |
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available. |
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(b) Not later than the 30th day after the date an inspector |
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changes the inspector's address, e-mail address, or telephone |
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number [place of business], the inspector shall notify the |
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commission and pay any [the] required fee. |
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SECTION 9. Section 1102.153, Occupations Code, is amended |
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to read as follows: |
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Sec. 1102.153. DEADLINE FOR COMPLETION. A license |
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applicant who does not satisfy the examination requirement within |
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12 [six] months after the date the application is filed must submit |
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a new application and pay another examination fee to be eligible for |
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examination. |
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SECTION 10. Section 1102.155(b), Occupations Code, is |
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amended to read as follows: |
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(b) An applicant who fails the examination three |
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consecutive times [in connection with the same application] may not |
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apply for reexamination or submit a new license application unless |
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the applicant submits evidence satisfactory to the commission that |
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the applicant has taken additional education, as prescribed by the |
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commission, after the date the applicant last took the examination |
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[before six months after the date of the third failed examination]. |
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SECTION 11. Section 1102.202, Occupations Code, is amended |
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to read as follows: |
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Sec. 1102.202. NOTICE OF LICENSE EXPIRATION. Not later |
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than the 31st day before the expiration date of a person's license, |
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the commission shall notify [send to] the person [at the person's
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last known address according to the commission's records written
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notice] of the license expiration. |
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SECTION 12. Section 1102.203, Occupations Code, is amended |
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to read as follows: |
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Sec. 1102.203. RENEWAL OF LICENSE. (a) A person may renew |
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an unexpired license by paying the required renewal fee to the |
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commission before the expiration date of the license and providing |
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proof of financial responsibility [professional liability
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insurance] as required by Section 1102.114. |
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(b) A person whose license has been expired for 90 days or |
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less may renew the license by paying to the commission a fee equal |
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to 1-1/2 times the required renewal fee. If a license has been |
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expired for more than 90 days but less than six months, the person |
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may renew the license by paying to the commission a fee equal to two |
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times the required renewal fee. |
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(c) If the person's license has been expired for six months |
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or longer [expires], the person may not renew the license. The |
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person may obtain a new license by submitting to reexamination, if |
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required, and complying with the requirements and procedures for |
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obtaining an original license. |
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(d) Each applicant for the renewal of a license must |
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disclose in the license application whether the applicant has: |
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(1) entered a plea of guilty or nolo contendere to a |
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felony; or |
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(2) been convicted of a felony and the time for appeal |
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has elapsed or the judgment or conviction has been affirmed on |
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appeal. |
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(e) The disclosure under Subsection (d) must be provided |
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even if an order has granted community supervision suspending the |
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imposition of the sentence. |
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SECTION 13. Section 1102.402(c), Occupations Code, is |
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amended to read as follows: |
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(c) A person for whom a payment has been made from the Real |
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Estate Inspection Recovery Fund or Real Estate Recovery Trust |
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Account is not eligible for a license until the person has repaid in |
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full the amount paid from the fund or the trust account on the |
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person's account, plus interest at the legal rate. |
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SECTION 14. Section 1102.403(b), Occupations Code, is |
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amended to read as follows: |
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(b) An administrative penalty collected under this section |
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[for a violation by an inspector] shall be deposited to the credit |
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of the general revenue [real estate inspection recovery] fund and |
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shall offset any amounts due from the commission to the general |
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revenue fund. [A penalty collected under this section for a
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violation by a person who is not licensed under this chapter or
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Chapter 1101 shall be deposited to the credit of the real estate
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recovery trust account or the real estate inspection recovery fund,
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as determined by the commission.] |
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SECTION 15. The following provisions of Chapter 1102, |
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Occupations Code, are repealed: |
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(1) Section 1102.252; |
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(2) Section 1102.253; and |
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(3) Subchapter H. |
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SECTION 16. (a) In this section: |
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(1) "Commission" means the Texas Real Estate |
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Commission. |
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(2) "Eligible inspector" means a person who holds a |
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real estate or professional inspector license under Chapter 1102, |
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Occupation Code, as of September 1, 2013. |
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(b) Not later than August 31, 2015, the commission shall |
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transfer not less than $300,000 from the real estate inspection |
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recovery fund to the general revenue fund. |
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(c) Not later than August 31, 2017, the commission shall |
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determine the remaining liability of the real estate inspection |
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recovery fund based on any pending claim for payment under former |
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Subchapter H, Chapter 1102, Occupations Code. |
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(d) The commission shall refund to each eligible inspector |
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who also holds a license as of the date of the refund any amount in |
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excess of the remaining liability of the real estate inspection |
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recovery fund at a rate not to exceed $100. |
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(e) Once all refunds to the inspectors are paid and all |
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claims for payment from the real estate inspection recovery fund |
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are paid, the commission shall transfer any remaining money to the |
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general revenue fund. |
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(f) Any money transferred to the general revenue fund under |
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this section offsets any amounts due from the commission to the |
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general revenue fund. |
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SECTION 17. (a) The changes in law made by this Act apply |
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only to an application for a license submitted to the Texas Real |
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Estate Commission on or after September 1, 2013. An application for |
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a license submitted before that date is governed by the law in |
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effect on the date the application was submitted, and the former law |
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is continued in effect for that purpose. |
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(b) The changes in law made by this Act apply only to a claim |
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for payment from the real estate inspection recovery fund based on a |
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cause of action that accrues on or after the effective date of this |
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Act. A claim for payment based on a cause of action that accrues |
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before the effective date of this Act is governed by the law in |
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effect when the cause of action accrued, and the former law is |
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continued in effect for that purpose. |
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(c) A claim for payment from the real estate inspection |
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recovery fund under former Section 1102.355, Occupations Code, for |
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a cause of action that accrues before September 1, 2013, must be |
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filed before September 1, 2017. |
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SECTION 18. This Act takes effect September 1, 2013. |