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.