LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 29, 1995



 TO:     Honorable David Sibley, Chair          IN RE:  Senate Bill No. 526
         Committee on Economic Development              By: Lucio
         Senate
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
526 (relating to certain business practices used in the
collection of copyright royalties, providing penalties) 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 would require the Texas Department of Licensing and
Regulation to license royalty collectors.  The department would
be allowed to set the fees to cover expenses associated with the
administration of the act.  The department would be authorized to
assess civil penalties up to $1000 for each violation and to
regain the cost of prosecuting a case.   Licenses would be
renewed on an annual basis.  Music broadcasters licensed by the
FCC would be exempted.

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  General            Gain         Number of State 
                         Revenue          to  General       Employees from 
                         Fund 001           Revenue            FY 1995     
                                            Fund 001                       
                                                                           
          1996                 $90,961            $93,250               2.0
          1997                  85,174             93,250               2.0
                                                                           
          1998                  85,174             93,250               2.0
                                                                           
          1999                  85,174             93,250               2.0
          2000                  85,174             93,250               2.0
                                                                           
                                                                           
                                                                           
        
       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, RR