LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 3, 1997
         
         
      TO: Honorable Ron Wilson, Chair            IN RE:  House Bill No. 1621, Committee Report 1st House, Substituted
          Committee on Licensing & Administrative Procedures                              By: Pickett
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1621 ( Relating 
to certain licensing in the real estate industry.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1621-Committee Report 1st House, Substituted
         
Implementing the provisions of the bill would result in a net 
positive impact of $180,000 to General Revenue Related Funds 
through the biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
Fiscal Analysis
 
This bill would change the continuing education requirements 
for real estate brokers and salesmen.  The bill would allow 
the Texas Real Estate Commission to collect a fee from licensees 
not in compliance with the continuing education requirements 
before reinstating their license.
 
Methodolgy
 
The fiscal impact of the bill assumes the commission would assess 
a $100 fee on licensees who failed to timely complete their 
mandatory continuing education classes.  The estimated number 
of 1800 licensees not in compliance was based on commission 
licensee data files.  This analysis assumes that only 50 percent 
of licensees who are estimated to be out of compliance, would 
pay the fee.  The remaining 50 percent would comply with the 
educational requirements in a timely manner or decide not to 
have their license reinstated.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable Revenue   
            Gain/(Loss) from                                                                              
            General Revenue                                                                               
            Fund                                                                                          
            0001                                                                                           
       1998           $90,000                                                                        
       1998            90,000                                                                        
       2000            90,000                                                                        
       2001            90,000                                                                        
       2002            90,000                                                                        
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998              $90,000
               1999               90,000
               2000               90,000
               2001               90,000
               2002               90,000
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TH