Texas 2023 - 88th Regular

Texas House Bill HB1363 Latest Draft

Bill / Enrolled Version Filed 05/25/2023

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                            H.B. No. 1363


 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.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 1363 was passed by the House on April
 6, 2023, by the following vote:  Yeas 148, Nays 0, 1 present, not
 voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 1363 was passed by the Senate on May
 24, 2023, by the following vote:  Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 APPROVED:  _____________________
 Date
 _____________________
 Governor