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