LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 10, 1997 TO: Honorable Keith Oakley, Chair IN RE: House Bill No. 2909, Committee Report 1st House, Substituted Committee on Public Safety By: Carter House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2909 ( Relating to persons eligible 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-Committee Report 1st House, Substituted 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. 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: 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 $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