Bill Text: TX HB1363 | 2023-2024 | 88th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the repeal of the real estate inspection recovery fund.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-06-12 - Effective on 9/1/23 [HB1363 Detail]

Download: Texas-2023-HB1363-Engrossed.html

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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.