LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 5, 1997
         
         
      TO: Honorable Keith Oakley, Chair            IN RE:  House Bill No. 2855
          Committee on Public Safety                              By: Hupp
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2855 ( Relating 
to the eligibility of certain individuals for a license to carry 
a concealed handgun and to the places where those licensed individuals 
are permitted to carry handguns.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2855-As Introduced
         
Implementing the provisions of the bill would result in a net 
positive impact of $1,673,945 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
 
The bill would change the minimum age at which a person is eligible 
for a license to carry a concealed handgun from 21 years of 
age, to 18 years of age.  The bill would also allow an individual 
with a concealed handgun license to carry a concealed weapon 
on the premises of a public institution of higher education.

This 
act takes effect September 1, 1997.    
 
Methodolgy
 
The Department of Public Safety (DPS) estimates that 8,516 applications 
for concealed handguns would be requested by persons aged 18, 
19 and 20.  This estimate is based on the assumption that 1% 
of the 851,655 eighteen, nineteen and twenty year old population 
will apply for a license to carry a concealed handgun.  

In 
order to accommodate the number of additional requests for concealed 
handgun permits, DPS would need nine additional employees in 
the Traffic Law Enforcement Division, one employee in the Handgun 
Licensing Unit, and one employee in the Central Cash Receiving 
Unit.  

Additional revenue would be generated from the 8,516 
applications filed each year at $140 each and 5,961 renewal 
applications (beginning in 2002) estimated at $70 each.  The 
renewal permits from persons affected by the bill would begin 
in fiscal year 2002.
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           Probable Revenue   Change in Number   
            Savings/(Cost)     Gain/(Loss) from   of State                                                
            from General       General Revenue    Employees from                                          
            Revenue Fund       Fund               FY 1997                                                 
            0001               0001                                                                        
       1998        ($386,695)        $1,192,240              11.0                                    
       1998         (323,840)         1,192,240              11.0                                    
       2000         (323,840)         1,192,240              11.0                                    
       2001         (323,840)         1,192,240              11.0                                    
       2002         (323,840)         1,609,510              11.0                                    
 
 
         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             $805,545
               1999              868,400
               2000              868,400
               2001              868,400
               2002            1,285,670
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   405   Department of Public Safety
                                         781   Higher Education Coordinating Board
                                         304   Comptroller of Public Accounts
                      LBB Staff:   JK ,CB ,GG ,RS