| 1 | 1 | | 88R791 JES-F |
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| 2 | 2 | | By: Zaffirini S.B. No. 2425 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the repeal of the real estate inspection recovery fund. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 1101.603(c), Occupations Code, is |
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| 10 | 10 | | amended to read as follows: |
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| 11 | 11 | | (c) Notwithstanding any other law, the commission shall |
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| 12 | 12 | | deposit to the credit of the trust account [or the real estate |
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| 13 | 13 | | inspection recovery fund, as determined by the commission,] an |
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| 14 | 14 | | administrative penalty collected under Subchapter O [for a |
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| 15 | 15 | | violation by a person licensed under this chapter or Chapter 1102]. |
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| 16 | 16 | | SECTION 2. Section 1102.114, Occupations Code, is amended |
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| 17 | 17 | | to read as follows: |
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| 18 | 18 | | Sec. 1102.114. ISSUANCE OF LICENSE. The commission shall |
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| 19 | 19 | | issue the appropriate license to an applicant who: |
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| 20 | 20 | | (1) meets the required qualifications; and |
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| 21 | 21 | | (2) [pays the fee required by Section 1102.352(a); and |
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| 22 | 22 | | [(3)] submits proof of financial responsibility as |
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| 23 | 23 | | required by Section 1102.1141. |
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| 24 | 24 | | SECTION 3. Section 1102.402, Occupations Code, is amended |
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| 25 | 25 | | to read as follows: |
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| 26 | 26 | | Sec. 1102.402. LICENSE INELIGIBILITY [REVOCATION] FOR |
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| 27 | 27 | | CLAIM ON FUND. [(a) The commission may revoke a license issued |
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| 28 | 28 | | under this chapter or a license, approval, or registration issued |
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| 29 | 29 | | under Chapter 1101 if the commission makes a payment from the real |
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| 30 | 30 | | estate inspection recovery fund to satisfy all or part of a judgment |
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| 31 | 31 | | against the person issued the license, approval, or registration. |
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| 32 | 32 | | [(b) The commission may probate an order revoking a license. |
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| 33 | 33 | | [(c)] A person is not eligible for a license under this |
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| 34 | 34 | | chapter until the person has reimbursed the commission in full for |
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| 35 | 35 | | any amount paid on the person's behalf from [the real estate |
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| 36 | 36 | | inspection recovery fund or] the real estate recovery trust account |
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| 37 | 37 | | under Subchapter M, Chapter 1101, plus interest at the legal rate. |
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| 38 | 38 | | SECTION 4. Section 1102.403(b), Occupations Code, is |
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| 39 | 39 | | amended to read as follows: |
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| 40 | 40 | | (b) An administrative penalty collected under this section |
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| 41 | 41 | | for a violation by an inspector shall be deposited to the credit of |
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| 42 | 42 | | the general revenue [real estate inspection recovery] fund and |
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| 43 | 43 | | shall offset any amount required to be remitted to the general |
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| 44 | 44 | | revenue fund by the commission. [A penalty collected under this |
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| 45 | 45 | | section for a violation by a person who is not licensed under this |
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| 46 | 46 | | chapter or Chapter 1101 shall be deposited to the credit of the real |
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| 47 | 47 | | estate recovery trust account or the real estate inspection |
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| 48 | 48 | | recovery fund, as determined by the commission.] |
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| 49 | 49 | | SECTION 5. The following provisions of the Occupations Code |
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| 50 | 50 | | are repealed: |
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| 51 | 51 | | (1) Section 1101.603(d); and |
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| 52 | 52 | | (2) Subchapter H, Chapter 1102. |
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| 53 | 53 | | SECTION 6. (a) In this section: |
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| 54 | 54 | | (1) "Commission" means the Texas Real Estate |
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| 55 | 55 | | Commission. |
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| 56 | 56 | | (2) "Eligible inspector" means a person who holds a |
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| 57 | 57 | | real estate inspector license or professional inspector license |
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| 58 | 58 | | under Chapter 1102, Occupations Code, as of September 1, 2023. |
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| 59 | 59 | | (b) Not later than December 31, 2023, the commission shall |
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| 60 | 60 | | transfer not less than $300,000 from the real estate inspection |
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| 61 | 61 | | recovery fund to the general revenue fund. |
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| 62 | 62 | | (c) Not later than August 31, 2026, the commission shall |
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| 63 | 63 | | determine the remaining liability of the real estate inspection |
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| 64 | 64 | | recovery fund based on any pending claims for payment under former |
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| 65 | 65 | | Subchapter H, Chapter 1102, Occupations Code. |
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| 66 | 66 | | (d) After determining the remaining liability under |
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| 67 | 67 | | Subsection (c) of this section, the commission shall refund to each |
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| 68 | 68 | | eligible inspector a portion of the amount in excess of the |
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| 69 | 69 | | remaining liability of the real estate inspection recovery fund, if |
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| 70 | 70 | | the eligible inspector holds a license issued under Chapter 1102, |
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| 71 | 71 | | Occupations Code, as of the date of the refund. A refund under this |
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| 72 | 72 | | subsection may not exceed $10 per person. |
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| 73 | 73 | | (e) The commission shall transfer any money remaining in the |
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| 74 | 74 | | real estate inspection recovery fund to the general revenue fund |
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| 75 | 75 | | after paying all claims for payment from the fund and issuing |
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| 76 | 76 | | refunds under Subsection (d) of this section. |
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| 77 | 77 | | (f) Any money transferred to the general revenue fund under |
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| 78 | 78 | | this section shall offset any amount required to be remitted to the |
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| 79 | 79 | | general revenue fund by the commission. |
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| 80 | 80 | | SECTION 7. (a) Section 1102.114, Occupations Code, as |
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| 81 | 81 | | amended by this Act, applies only to an application for an inspector |
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| 82 | 82 | | license submitted to the Texas Real Estate Commission on or after |
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| 83 | 83 | | the effective date of this Act. An application for a license |
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| 84 | 84 | | submitted before the effective date of this Act is governed by the |
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| 85 | 85 | | law in effect on the date the application was submitted, and the |
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| 86 | 86 | | former law is continued in effect for that purpose. |
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| 87 | 87 | | (b) Sections 1101.603 and 1102.403, Occupations Code, as |
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| 88 | 88 | | amended by this Act, apply only to an administrative penalty that is |
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| 89 | 89 | | collected on or after the effective date of this Act. An |
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| 90 | 90 | | administrative penalty that is collected before the effective date |
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| 91 | 91 | | of this Act is governed by the law in effect on the date the |
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| 92 | 92 | | administrative penalty was collected, and the former law is |
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| 93 | 93 | | continued in effect for that purpose. |
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| 94 | 94 | | (c) Subject to Subsection (d) of this section, the repeal by |
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| 95 | 95 | | this Act of Subchapter H, Chapter 1102, Occupations Code, does not |
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| 96 | 96 | | affect the validity of a claim for payment from the real estate |
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| 97 | 97 | | inspection recovery fund based on a cause of action that accrues |
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| 98 | 98 | | before the effective date of this Act. A claim for payment from the |
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| 99 | 99 | | fund based on a cause of action that accrues before the effective |
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| 100 | 100 | | date of this Act is governed by the law in effect on the date the |
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| 101 | 101 | | cause of action accrued, and the former law is continued in effect |
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| 102 | 102 | | for that purpose. |
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| 103 | 103 | | (d) A claim for payment from the real estate inspection |
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| 104 | 104 | | recovery fund under former Section 1102.355, Occupations Code, for |
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| 105 | 105 | | a cause of action that accrues before the effective date of this Act |
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| 106 | 106 | | must be filed before March 1, 2026. |
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| 107 | 107 | | SECTION 8. This Act takes effect September 1, 2023. |
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