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.