LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 20, 1995 TO: Honorable Ron Wilson, Chair IN RE: Committee Substitute Committee on Licensing & for House Administrative Procedures Bill No. 1205 House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1205 (relating to the funding of the Texas Real Estate Research Center from certain real estate broker and salesman fees) this office has determined the following: The bill would establish fees of $20 per real estate broker license renewal and $17.50 per real estate salesman license renewal to be transferred to the Texas Real Estate Research Center. These fees would be in addition to existing renewal fees. Current law transfers a portion of existing renewal fees to Texas Real Estate Research Center. This portion of renewal fees would no longer be transferred to the Center. Estimates below are based on the increased amount of revenue which would be transferred to the Research Center beyond amounts currently received. Establishing fees separate from current renewal fees and eliminating the transfer of revenue from current renewal fees to the Center could result in a revenue gain to the Real Estate License Account in the General Revenue Fund. If renewal fees remain at current levels, an additional gain to the Revenue License Account of $1,260,000 per year would occur. It is anticipated, however, that the Real Estate Commission would lower renewal fees such that no additional gain to the Real Estate License Account would occur. 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 Year Probable Revenue Gain to Texas Real Estate Center Trust Fund 969 1996 $975,000 1997 975,000 1998 975,000 1999 975,000 2000 975,000 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: Comptroller of Public Accounts, Real Estate Commission LBB Staff: JK, RM, DF