88R4277 SCP-F
 
  By: Kuempel H.B. No. 1363
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the repeal of the real estate inspection recovery fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1101.603(c), Occupations Code, is
  amended to read as follows:
         (c)  Notwithstanding any other law, the commission shall
  deposit to the credit of the trust account [or the real estate
  inspection recovery fund, as determined by the commission,] an
  administrative penalty collected under Subchapter O [for a
  violation by a person licensed under this chapter or Chapter 1102].
         SECTION 2.  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)  [pays the fee required by Section 1102.352(a); and
               [(3)]  submits proof of financial responsibility as
  required by Section 1102.1141.
         SECTION 3.  Section 1102.402, Occupations Code, is amended
  to read as follows:
         Sec. 1102.402.  LICENSE INELIGIBILITY [REVOCATION] FOR
  CLAIM ON FUND.  [(a)  The commission may revoke a license issued
  under this chapter or a license, approval, or registration issued
  under Chapter 1101 if the commission makes a payment from the real
  estate inspection recovery fund to satisfy all or part of a judgment
  against the person issued the license, approval, or registration.
         [(b)  The commission may probate an order revoking a license.
         [(c)]  A person is not eligible for a license under this
  chapter until the person has reimbursed the commission in full for
  any amount paid on the person's behalf from the real estate
  inspection recovery fund under former Subchapter H, as that
  subchapter existed on August 31, 2023, or the real estate recovery
  trust account under Subchapter M, Chapter 1101, plus interest at
  the legal rate.
         SECTION 4.  Section 1102.403(b), Occupations Code, is
  amended to read as follows:
         (b)  An administrative penalty collected under this section
  for a violation by an inspector shall be deposited to the credit of
  the general revenue [real estate inspection recovery] fund. A
  penalty collected under this section for a violation by a person who
  is not licensed under this chapter or Chapter 1101 shall be
  deposited to the credit of the real estate recovery trust account or
  the general revenue [real estate inspection recovery] fund, as
  determined by the commission. Any amounts deposited to the credit
  of the general revenue fund under this section shall offset any
  amount required to be remitted to that fund by the commission.
         SECTION 5.  The following provisions of the Occupations Code
  are repealed:
               (1)  Section 1101.603(d); and
               (2)  Subchapter H, Chapter 1102.
         SECTION 6.  (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, 2023.
         (b)  Not later than December 31, 2023, the commission shall
  transfer not less than $200,000 from the real estate inspection
  recovery fund to the general revenue fund.
         (c)  Not later than August 31, 2026, 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, and shall set aside
  an amount in the fund equal to that liability to be used for the
  payment of those pending claims.
         (d)  If funds remain in the real estate inspection recovery
  fund after setting aside the amount determined under Subsection (c)
  of this section, the commission shall set aside an additional
  amount not to exceed $10 per eligible inspector. The commission
  shall apply the amount set aside as a credit toward the renewal of
  the license of each eligible inspector whose license expires on or
  after September 30, 2026, and on or before September 30, 2028, and
  who renews the license on or before September 30, 2028.
         (e)  After paying all claims for payment from the real estate
  inspection recovery fund and applying any credits under Subsection
  (d) of this section, the commission shall transfer any money
  remaining in the real estate inspection recovery fund to the
  general revenue fund.
         (f)  Any money transferred to the general revenue fund under
  this section shall offset any amount required to be remitted to that
  fund by the commission.
         SECTION 7.  (a)  Section 1102.114, Occupations Code, as
  amended by this Act, applies 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 the effective date of this Act 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)  The change in law made by this Act to Section 1102.402,
  Occupations Code, does not affect the authority of the Texas Real
  Estate Commission to revoke a license, approval, or registration,
  or probate an order revoking a license under that section as it
  existed before the effective date of this Act, for a payment made
  from the real estate inspection recovery fund based on a cause of
  action that accrues before the effective date of this Act, and the
  former law is continued in effect for that purpose.
         (c)  Sections 1101.603 and 1102.403, 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.
         (d)  Subject to Subsection (e) of this section, the repeal by
  this Act of Subchapter H, Chapter 1102, Occupations Code, does not
  affect the validity of a claim for payment from the real estate
  inspection recovery fund based on a cause of action that accrues
  before the effective date of this Act.  A claim for payment from the
  fund based on a cause of action that accrues before the effective
  date of this Act is governed by the law in effect on the date the
  cause of action accrued, and the former law is continued in effect
  for that purpose.
         (e)  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 the effective date of this Act
  must be filed before March 1, 2026.
         SECTION 8.  This Act takes effect September 1, 2023.