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A BILL TO BE ENTITLED
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AN ACT
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relating to the repeal of the real estate inspection recovery fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1101.603(c), Occupations Code, is |
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amended to read as follows: |
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(c) Notwithstanding any other law, the commission shall |
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deposit to the credit of the trust account [or the real estate |
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inspection recovery fund, as determined by the commission,] an |
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administrative penalty collected under Subchapter O [for a |
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violation by a person licensed under this chapter or Chapter 1102]. |
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SECTION 2. 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) [pays the fee required by Section 1102.352(a); and |
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[(3)] submits proof of financial responsibility as |
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required by Section 1102.1141. |
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SECTION 3. Section 1102.402, Occupations Code, is amended |
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to read as follows: |
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Sec. 1102.402. LICENSE INELIGIBILITY [REVOCATION] FOR |
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CLAIM ON FUND. [(a) The commission may revoke a license issued |
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under this chapter or a license, approval, or registration issued |
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under Chapter 1101 if the commission makes a payment from the real |
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estate inspection recovery fund to satisfy all or part of a judgment |
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against the person issued the license, approval, or registration. |
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[(b) The commission may probate an order revoking a license. |
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[(c)] A person is not eligible for a license under this |
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chapter until the person has reimbursed the commission in full for |
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any amount paid on the person's behalf from the real estate |
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inspection recovery fund under former Subchapter H, as that |
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subchapter existed on August 31, 2023, or the real estate recovery |
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trust account under Subchapter M, Chapter 1101, plus interest at |
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the legal rate. |
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SECTION 4. 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 of |
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the general revenue [real estate inspection recovery] fund. A |
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penalty collected under this section for a violation by a person who |
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is not licensed under this chapter or Chapter 1101 shall be |
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deposited to the credit of the real estate recovery trust account or |
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the general revenue [real estate inspection recovery] fund, as |
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determined by the commission. Any amounts deposited to the credit |
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of the general revenue fund under this section shall offset any |
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amount required to be remitted to that fund by the commission. |
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SECTION 5. The following provisions of the Occupations Code |
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are repealed: |
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(1) Section 1101.603(d); and |
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(2) Subchapter H, Chapter 1102. |
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SECTION 6. (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 inspector license or professional inspector license |
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under Chapter 1102, Occupations Code, as of September 1, 2023. |
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(b) Not later than December 31, 2023, the commission shall |
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transfer not less than $200,000 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, 2026, 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 claims for payment under former |
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Subchapter H, Chapter 1102, Occupations Code, and shall set aside |
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an amount in the fund equal to that liability to be used for the |
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payment of those pending claims. |
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(d) If funds remain in the real estate inspection recovery |
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fund after setting aside the amount determined under Subsection (c) |
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of this section, the commission shall set aside an additional |
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amount not to exceed $10 per eligible inspector. The commission |
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shall apply the amount set aside as a credit toward the renewal of |
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the license of each eligible inspector whose license expires on or |
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after September 30, 2026, and on or before September 30, 2028, and |
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who renews the license on or before September 30, 2028. |
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(e) After paying all claims for payment from the real estate |
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inspection recovery fund and applying any credits under Subsection |
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(d) of this section, the commission shall transfer any money |
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remaining in the real estate inspection recovery fund 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 shall offset any amount required to be remitted to that |
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fund by the commission. |
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SECTION 7. (a) Section 1102.114, Occupations Code, as |
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amended by this Act, applies only to an application for an inspector |
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license submitted to the Texas Real Estate Commission on or after |
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the effective date of this Act. An application for a license |
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submitted before the effective date of this Act is governed by the |
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law in effect on the date the application was submitted, and the |
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former law is continued in effect for that purpose. |
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(b) The change in law made by this Act to Section 1102.402, |
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Occupations Code, does not affect the authority of the Texas Real |
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Estate Commission to revoke a license, approval, or registration, |
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or probate an order revoking a license under that section as it |
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existed before the effective date of this Act, for a payment made |
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from the real estate inspection recovery fund based on a cause of |
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action that accrues before the effective date of this Act, and the |
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former law is continued in effect for that purpose. |
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(c) Sections 1101.603 and 1102.403, Occupations Code, as |
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amended by this Act, apply only to an administrative penalty that is |
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collected on or after the effective date of this Act. An |
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administrative penalty that is collected before the effective date |
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of this Act is governed by the law in effect on the date the |
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administrative penalty was collected, and the former law is |
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continued in effect for that purpose. |
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(d) Subject to Subsection (e) of this section, the repeal by |
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this Act of Subchapter H, Chapter 1102, Occupations Code, does not |
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affect the validity of a claim for payment from the real estate |
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inspection recovery fund based on a cause of action that accrues |
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before the effective date of this Act. A claim for payment from the |
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fund based on a cause of action that accrues before the effective |
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date of this Act is governed by the law in effect on the date the |
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cause of action accrued, and the former law is continued in effect |
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for that purpose. |
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(e) 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 the effective date of this Act |
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must be filed before March 1, 2026. |
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SECTION 8. This Act takes effect September 1, 2023. |