By: Kuempel	H.B. No. 2376

	A BILL TO BE ENTITLED
	AN ACT
	relating to the repeal of real estate inspection recovery fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1102.114 is amended 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 2.  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 and
	shall offset any amounts due from the commission to the general
	revenue 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 real estate inspection recovery fund,
	as determined by the commission.]
	SECTION 3.  Section 1101.603(c) and (d), Occupations Code,
	are 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].
	(d)  Notwithstanding any other law, an administrative
	penalty collected under Subchapter O for a violation by a person who
	is not licensed under this chapter [or Chapter 1102] shall be
	deposited to the credit of the trust account [or the real estate
	inspection recovery fund, as determined by the commission].
	SECTION 3.  Subchapter H, Chapter 1102, Occupations Code, is
	repealed.
	SECTION 4.  (a) In this section:
	(1)  "Commission" means the Texas Real Estate
	Commission.
	(2)  "Eligible inspector" means a person who holds a
	real estate or professional inspector license under Chapter 1102,
	Occupation Code, as of September 1, 2021.
	(b)  Not later than August 31, 2021, the commission shall
	transfer not less than $300,000 from the real estate inspection
	recovery fund to the general revenue fund.
	(c)  Not later than August 31, 2024, the commission shall
	determine the remaining liability of the real estate inspection
	recovery fund based on any pending claim for payment under former
	Subchapter H, Chapter 1102, Occupations Code.
	(d)  The commission shall refund to each eligible inspector
	who also holds a license as of the date of the refund any amount in
	excess of the remaining liability of the real estate inspection
	recovery fund determined under subsection (c) at a rate not to
	exceed $10.
	(e)  Once all refunds to the inspectors are paid and all
	claims for payment from the real estate inspection recovery fund
	are paid, the commission shall transfer any remaining money to the
	general revenue fund.
	(f)  Any money transferred to the general revenue fund under
	this section offsets any amounts due from the commission to the
	general revenue fund.
	SECTION 5.  (a) The changes in law made by this Act apply
	only to payments made into real estate inspection recovery fund for
	a on or after the effective date of this Act. Payments made into
	real estate inspection recovery fund before that date are governed
	by the law in effect on the date the payment was submitted, and the
	former law is continued in effect for that purpose.
	(b)  The changes in law made by this Act apply only to a claim
	for payment from the real estate inspection recovery fund based on a
	cause of action that accrues on or after the effective date of this
	Act. Subject to subsection (c), a claim for payment based on a
	cause of action that accrues before the effective date of this Act
	is governed by the law in effect when the cause of action accrued,
	and the former law is continued in effect for that purpose.
	(c)  A claim for payment from the real estate inspection
	recovery fund under former Subchapter H, Chapter 1102, Occupations
	Code, for a cause of action that accrues before September 1, 2021,
	must be filed before March 1, 2024.
	SECTION 6.  This Act takes effect September 1, 2021.