LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 13, 2001 TO: Honorable Ron Wilson, Chair, House Committee on Licensing & Administrative Procedures FROM: John Keel, Director, Legislative Budget Board IN RE: HB659 by Pickett (Relating to the regulation of the sale and inspection of real estate.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB659, As Introduced: positive impact of $156,000 through the * * biennium ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $78,000 * * 2003 78,000 * * 2004 78,000 * * 2005 78,000 * * 2006 78,000 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2002 $78,000 * * 2003 78,000 * * 2004 78,000 * * 2005 78,000 * * 2006 78,000 * ***************************************************** Technology Impact No technology impact is anticipated. Fiscal Analysis The bill would make several amendments to the Real Estate License Act, VTCS Article 6573. The bill would increase the fee charged by the Texas Real Estate Commission (TREC) for education and continuing education transcript evaluations from $15 to $20, institute a new fee for real estate inspectors requesting a name change for up to $20, allow TREC staff to file complaints against licensees who fail to comply with continuing education reporting, and increase inspector continuing education requirements from four to eight hours and professional inspectors from eight to sixteen hours per year. The bill would also amend the administrative penalties from the current ceiling of $1,000 to a maximum of $1,000 per day for violations. The bill would become effective September 1, 2001. Methodology TREC estimates 15,000 transcript evaluations per year which would generate an additional $75,000 in general revenue through the $5 increase in the fee. TREC also estimates approximately 150 name change applications each year generating $3,000 per year in general revenue. TREC anticipates absorbing any additional duties within current resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 329 Texas Real Estate Commission, 302 Office of the Attorney General, 304 Comptroller of Public Accounts LBB Staff: JK, JO, RT, KM