87R16876 JES-D
	By: Kuempel	H.B. No. 2376

	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 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 and
	shall offset any amount required to be remitted to the general
	revenue fund by the commission. [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 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, 2021.
	(b)  Not later than December 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 claims for payment under former
	Subchapter H, Chapter 1102, Occupations Code.
	(d)  After determining the remaining liability under
	Subsection (c) of this section, the commission shall refund to each
	eligible inspector a portion of the amount in excess of the
	remaining liability of the real estate inspection recovery fund, if
	the eligible inspector holds a license issued under Chapter 1102,
	Occupations Code, as of the date of the refund. A refund under this
	subsection may not exceed $10 per person.
	(e)  The commission shall transfer any money remaining in the
	real estate inspection recovery fund to the general revenue fund
	after paying all claims for payment from the fund and issuing
	refunds under Subsection (d) of this section.
	(f)  Any money transferred to the general revenue fund under
	this section shall offset any amount required to be remitted to the
	general revenue 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)  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.
	(c)  Subject to Subsection (d) 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.
	(d)  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, 2024.
	SECTION 8.  This Act takes effect September 1, 2021.