Bill Text: TX SB2425 | 2023-2024 | 88th Legislature | Introduced

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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-03-23 - Referred to Business & Commerce [SB2425 Detail]

Download: Texas-2023-SB2425-Introduced.html

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88R791 JES-F
By: Zaffirini S.B. No. 2425

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, 2023.
(b) Not later than December 31, 2023, 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, 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.
(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, 2026.
SECTION 8. This Act takes effect September 1, 2023.