LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 28, 1997 TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 2909, As Passed 2nd House Speaker of the House Carter House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2909 ( Relating to persons eligible for a license to carry a concealed handgun, to the rights and duties of license holders, and to certain offenses involving weapons.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2909-As Passed 2nd House Implementing the provisions of the bill would result in a net impact of $0 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 require that the Department of Public Safety (DPS) establish procedures for reciprocal agreements with other states to honor concealed handgun permits. The bill would also require the Texas Alcoholic Beverage Commission (TABC) to determine if certain permit and license holders derive a majority of their gross receipts from the sale of alcoholic beverages. Each business so designated would have to display a sign regarding the legality of carrying concealed handguns on its premises. The bill would also amend the Penal Code and Government Code by authorizing, under specified circumstances, community supervision and corrections officers and parole officers to carry a weapon while engaged in the discharge of duties. Methodolgy DPS would be required to coordinate with other states regarding concealed handgun permits. In addition, DPS would need to process out-of-state applications and make programming changes to the concealed handgun database to accommodate these applications. Although there would be added responsibility, it is assumed that the new responsibility could be fulfilled with current resources. TABC would have to make a determination on an estimated 15,000 permits with a 10 percent audit rate. The cost of this responsibility would be offset by an equal amount of fee revenue. 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 Revenue Probable Revenue Change in Number Gain/(Loss) from Gain/(Loss) from of State General Revenue General Revenue Employees from Fund Fund FY 1997 0001 0001 1998 ($324,100) $324,100 4.0 1998 (276,100) 276,100 4.0 2000 (276,100) 276,100 4.0 2001 (276,100) 276,100 4.0 2002 (276,100) 276,100 4.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 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: LBB Staff: JK ,CB ,RT