LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 31, 1997
TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 1621
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-As Introduced
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.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 329 Real Estate Commission
LBB Staff: JK ,TH ,CG