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