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