LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 15, 1995



 TO:     Honorable Ron Wilson, Chair            IN RE:  House Bill No. 1205
         Committee on Licensing &                       By: Place
         Administrative Procedures
         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 amend the Real Estate License Act to increase the
amount of real estate license renewal fees transmitted annually
by the Texas Real Estate Commission to the Texas Real Estate
Research Center.  The bill would raise the portion of each
license renewal designated for the Research Center to $17.50. 
The Act currently specifies that $15.00 per broker license and
$7.50 per agent license is to be transmitted to the Research
Center.

Implementation of the bill would result in a revenue increase of
approximately $845,000 per year, including $117,500 from the
increase of $2.50 for broker license renewals and $727,000 from
the increase of $10.00 for agent license renewals.  All funds
from this source are currently appropriated to the Research
Center ($1,187,460 for fiscal year 1994).

The bill's provisions could also necessitate license fee
increases of $2.50 for brokers and $10.00 for agents.  Such fee
increases could also result in a decrease in the number of
license renewals for sales agents.

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 Revenue    Probable Revenue 
          Year    Gain/(Loss) from       Gain to Real   
                   GR Consolidated -   Estate Fee Trust 
                      Real Estate          Account      
                   License Fund 114                     
                                                        
          1996             ($845,000)           $845,000
          1997              (845,000)            845,000
                                                        
          1998              (845,000)            845,000
                                                        
          1999              (845,000)            845,000
          2000              (845,000)            845,000
                                                        
                                                        
                                                        

       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