LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 30, 1995 TO: Honorable John T. Montford, Chair IN RE: Senate Bill No. 589 Committee on Finance By: Brown Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 589 (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 $727,500 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