BILL ANALYSIS C.S.H.B. 1205 By: Place 4-11-95 Committee Report (Substituted) BACKGROUND The Real Estate Research Center at Texas A&M was created in 1971 by the Texas Legislature to provide an unbiased, reliable and timely source of information. Research by the Center covers a wide range of property owner and real estate industry issues such as the impact of the Endangered Species Act on private property, economic forecasts in the residential markets, and a number of other issues. Funding for the Center is based upon renewal fees of real estate licensees, and has remained unchanged since 1975. Brokers currently pay $15 per year and sales agents pay $7.50. In 1986, the number of licensees in Texas peaked at 180,000. Since then, the number of licensees has dropped to its current level of 127,000. As a result, the Center's funding has fallen by more than 30% with staff reductions of over 50%. PURPOSE C.S.H.B. 1205 would raise the amount of the issuance and renewal fees from real estate broker's and salesperson's licenses received by the Texas Real Estate Center. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 5(m), The Real Estate License Act by raising the amount of the renewal fees received by the Center. Currently, the Center receives $15 of brokers' renewal fees and $7.50 from the renewal fees of sales agents. Would require the commission to collect and charge a fee for issuance and renewal. Also replaces the annual transmission of funds to the Center with quarterly transmissions. SECTION 2. Amends Section 11(a), The Real Estate License Act (Art. 6573a, V.T.C.S.). The Commission is required to charge and collect fees, and makes annual fee received from brokers, to be forwarded to the Center, $20.00. Annual fee from the fees of sales agents is $17.50. SECTION 3. Effective date: September 1,1995. Applies only to licenses issued or renewed after effective date. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The original provided for the Texas Real Estate Research Center to receive an increased amount of broker and sales agent renewal fees. As provided by the original, the Center would have received $17.50 from renewal fees of both brokers and sales agents.The committee substitute provides for $17.50 of both issuance and renewal fees for salesmen and $20 from brokers to be transmitted to the Center. The substitute bill would also transfer the money from fees quarterly, instead of annually. SUMMARY OF COMMITTEE ACTION HB 1205 was heard in a Public Hearing on March 15, 1995. The Chair recognized the following person to testify in favor of the bill: Mr. Dick Kemp, Real Estate Broker, Texas Association of Realtors; The Chair recognized the following person to testify as a Resource witness, registering neutral on the bill: Mr. Gary W. Maler, Real Estate Center, Texas A&M; HB 1205 was left pending in committee. HB 1205 was heard in a Public Hearing on April 11, 1995. Rep. Pickett moved to call up HB 1205 which was pending in committee. There was no objection. The Chair laid out HB 1205. Rep. Pickett offered a complete committee substitute and moved adoption of CSHB 1205. There was no objection. Rep. Pickett moved that the full committee adopt HB 1205 as substituted, and that it be reported favorably to the full House with the recommendation that it do pass and be printed, and placed on the Local and Consent Calendar. The motion prevailed by the following vote: AYES: 7, NAYS: 0, ABSENT: 2.