LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 23, 2001
TO: Honorable Bill Ratliff, Lieutenant Governor
Honorable James E. "Pete" Laney, Speaker of the House
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB695 by Reyna, Arthur (Relating to the regulation of
certain occupations by the Texas Real Estate Commission;
providing penalties.), Conference Committee Report
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB695, Conference Committee Report: positive impact of $446,000 *
* 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 $223,000 *
* 2003 223,000 *
* 2004 223,000 *
* 2005 223,000 *
* 2006 223,000 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2002 $223,000 *
* 2003 223,000 *
* 2004 223,000 *
* 2005 223,000 *
* 2006 223,000 *
*****************************************************
Fiscal Analysis
The bill would amend the Texas Real Estate License Act and the
Residential Service Company Act. The bill would permit a person to apply
for an inactive salesperson license without a sponsoring broker. The bill
would give the Texas Real Estate Commission (TREC) authority to
prescribe the content of core real estate courses for license application
and continuing education courses for license renewal. The total numnber
of required education hours would remain the same. The bill would
increase the maximum fee for requesting the real estate examination from
$50 to $100, and the transcript evaluation fee from $15 to $20.
The bill also would allow TREC staff to file complaints against licensees
not complying with continuing education provisions, and would increase
the criminal offense of acting as a real estate broker, salesperson,
easement or right-of-way agent, a residential rental locator, or real
estate inspector to a Class A misdemeanor. The bill would also extend
TREC's authorization for assessing administrative penalties to include a
fine not to exceed $1,000 per violation.
The bill would remove a specific date for evaluating the real estate
recovery fund and the real estate inspection recovery fund and would
increase the maximum payment to be made from these funds.
This bill would take effect on September 1, 2001, with continuing
education requirements for brokers and salespersons with renewal of
licenses expiring December 31, 2001 and licensure applications filed
after January 1, 2002.
Methodology
The Texas Real Estate Commission (TREC) estimates a total increase to
general revenue of $223,000 per year would occur. An estimated 7,500
salesperson licenses going from inactive to active status are issued
annually which would result in $20 per applicant or $150,000 per year.
An estimated 14,000 transcript evaluations are performed annually which,
with the increased fee from $15 to $20, would generate an additional
$70,000 per year. A new fee of $20 for inspector license name change,
return to active status or change in sponsoring professional inspector
would bring approximately $3,000 per year for an estimated 150 requests.
TREC indicates that no additional revenue from the increase in the
examination fee would occur. The current fee charged is $35 and TREC
does not anticipate increasing the fee. TREC indicates the maximum fee
increase is warranted to allow room in negotiating with future vendors.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 329 Texas Real Estate Commission
LBB Staff: JK, JO, DB, RT, KM