LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 6, 2013 TO: Honorable Linda Harper-Brown, Chair, House Committee on Government Efficiency & Reform FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3647 by Harper-Brown (Relating to removing licensing and fee requirements for certain salespersons who sell or lease-purchase or offer to sell or lease-purchase manufactured housing to a consumer.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3647, As Introduced: an impact of $0 through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 6, 2013 TO: Honorable Linda Harper-Brown, Chair, House Committee on Government Efficiency & Reform FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3647 by Harper-Brown (Relating to removing licensing and fee requirements for certain salespersons who sell or lease-purchase or offer to sell or lease-purchase manufactured housing to a consumer.), As Introduced TO: Honorable Linda Harper-Brown, Chair, House Committee on Government Efficiency & Reform FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB3647 by Harper-Brown (Relating to removing licensing and fee requirements for certain salespersons who sell or lease-purchase or offer to sell or lease-purchase manufactured housing to a consumer.), As Introduced Honorable Linda Harper-Brown, Chair, House Committee on Government Efficiency & Reform Honorable Linda Harper-Brown, Chair, House Committee on Government Efficiency & Reform Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB3647 by Harper-Brown (Relating to removing licensing and fee requirements for certain salespersons who sell or lease-purchase or offer to sell or lease-purchase manufactured housing to a consumer.), As Introduced HB3647 by Harper-Brown (Relating to removing licensing and fee requirements for certain salespersons who sell or lease-purchase or offer to sell or lease-purchase manufactured housing to a consumer.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3647, As Introduced: an impact of $0 through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Estimated Two-year Net Impact to General Revenue Related Funds for HB3647, As Introduced: an impact of $0 through the biennium ending August 31, 2015. 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 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0 All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromAppropriated Receipts666 2014 ($201,000) 2015 ($179,000) 2016 ($194,000) 2017 ($179,000) 2018 ($194,000) Fiscal Year Probable Revenue (Loss) fromAppropriated Receipts666 2014 ($201,000) 2015 ($179,000) 2016 ($194,000) 2017 ($179,000) 2018 ($194,000) 2014 ($201,000) 2015 ($179,000) 2016 ($194,000) 2017 ($179,000) 2018 ($194,000) Fiscal Analysis The bill would amend the Occupations Code relating to removing licensing and fee requirements for certain salespersons who sell or lease-purchase or offer to sell or lease-purchase manufactured housing to a consumer. The bill would take effect September 1, 2013. The bill would amend the Occupations Code relating to removing licensing and fee requirements for certain salespersons who sell or lease-purchase or offer to sell or lease-purchase manufactured housing to a consumer. The bill would take effect September 1, 2013. Methodology Based on information provided by the Comptroller of Public Accounts, this analysis assumes the implementation of the bill would result in a decrease in revenue due to the elimination in fees for the salespersons licenses and educational requirement. According to CPA, the analysis reflects data gathered regarding the expected number of licenses issued and renewed by salespersons each fiscal year, both for the standard licensing requirement and for the educational requirement, and multiplied by the applicable fees. The result was then compared to total manufactured housing-related fees, for the relevant revenue category, in the 2014-15 Biennial Revenue Estimate. According to information provided by Department of Housing and Community Affairs, the fee for a salespersons license is $200 and is valid for two years and the fee for the educational requirement is $150. Total estimated revenue loss for each fiscal year: $201,000 in fiscal year 2014, $179,000 in fiscal year 2015, $194,000 in fiscal year 2016, $179,000 in fiscal year 2017 and $194,000 in fiscal year 2018; totaling $947,000 over a five-year period. The table above reflects these losses in Appropriated Receipts consistent with appropriations reflected in the General Appropriations Act. Based on information provided by the Comptroller of Public Accounts, this analysis assumes the implementation of the bill would result in a decrease in revenue due to the elimination in fees for the salespersons licenses and educational requirement. According to CPA, the analysis reflects data gathered regarding the expected number of licenses issued and renewed by salespersons each fiscal year, both for the standard licensing requirement and for the educational requirement, and multiplied by the applicable fees. The result was then compared to total manufactured housing-related fees, for the relevant revenue category, in the 2014-15 Biennial Revenue Estimate. According to information provided by Department of Housing and Community Affairs, the fee for a salespersons license is $200 and is valid for two years and the fee for the educational requirement is $150. Total estimated revenue loss for each fiscal year: $201,000 in fiscal year 2014, $179,000 in fiscal year 2015, $194,000 in fiscal year 2016, $179,000 in fiscal year 2017 and $194,000 in fiscal year 2018; totaling $947,000 over a five-year period. The table above reflects these losses in Appropriated Receipts consistent with appropriations reflected in the General Appropriations Act. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 329 Real Estate Commission, 332 Department of Housing and Community Affairs 304 Comptroller of Public Accounts, 329 Real Estate Commission, 332 Department of Housing and Community Affairs LBB Staff: UP, KJo, MW, NV UP, KJo, MW, NV