LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 5, 1995 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 667 Committee on Licensing & By: Kuempel Administrative Procedures House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 667 (Relating to the regulation of auctions and auctioneers.) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill changes the way in which auctioneers are licensed, adding continuing education requirements. It is expected that the number of auctioneers will drop from 2,774 to 2,500 in the first year. By FY 1998 the number of auctioneers would climb to approximately 2,800 and remain stable thereafter. The bill establishes the Public Protection and Recovery Fund as a trust fund to pay claims against auctioneers. Any amounts in the fund in excess of $250,000 will be used to fund public protection programs to be developed by the Department of Licensing and Regulation. It is assumed that during the first year only claims will be paid from the fund. The bill would authorize the commissioner of licensing and regulation to set examination fees. In addition annual license fees would be set in statute at $100 or $50 for an associate auctioneer. A $100 annual fee would also be established and deposited to the Public Protection & Recovery Fund. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Cost Out Probable Revenue Change in Year of Other Funds Gain to Other Number of State 997 (Public Funds 997 (Public Employees from Protection & Protection & FY 1995 Recovery Fund) Recovery Fund) 1996 $25,000 $250,000 .0 1997 147,600 265,000 2.0 1998 283,900 280,000 6.0 1999 317,000 280,000 7.0 2000 317,000 280,000 7.0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Department of Licensing and Regulation LBB Staff: JK, LR, DF