LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 23, 1999
TO: Honorable Bob Turner, Chair, House Committee on Public
Safety
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2240 by Hupp (Relating to the renewal of a person's
license to carry a concealed handgun and to the
procedures for that renewal.), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2240, Committee Report 1st House, Substituted: negative impact *
* of $(1,025,358) through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(839,765) *
* 2001 (185,593) *
* 2002 (185,593) *
* 2003 (2,185,593) *
* 2004 (185,593) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 1999 *
* 0001 *
* 2000 $(839,765) 3.0 *
* 2001 (185,593) 3.0 *
* 2002 (185,593) 3.0 *
* 2003 (2,185,593) 3.0 *
* 2004 (185,593) 3.0 *
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Technology Impact
It is estimated the Technology Impact for the bill would be $787,936 for
Fiscal Year 2000 and $129,466 for each year thereafter.
Fiscal Analysis
The bill would amend the Transportation Code and the Government Code to
require the Department of Public Safety (DPS) to establish a procedure
to allow a person to renew a concealed handgun license in a driver's
license office. The bill would extend the validity period of a
concealed handgun license renewal from 4 years to 5 years.
Methodology
Passage of the bill would require DPS to make significant modifications
to computer applications supporting the Department's Distributed Driver
License System to provide for concealed handgun license renewal screens
and the capture and separation of digital images for production of both
types of licenses. It is estimated that the Department's Information
Management Services (IMS) would incur contract programming costs of
$635,170 and need two additional employees to make the necessary changes.
The Department's License Issuance Bureau (LIB) would be required to
provide added technical support for changes in the driver s license
issuance application (i.e., design, development, testing, training,
etc.). LIB would need one additional Administrative Technician IV for
these responsibilities.
It is expected that the bill would result in a loss of revenue due to
the extension of the validity period of a concealed handgun license
renewal from 4 years to 5 years without an accompanying increase in the
license fee.
Extending the validity period for the renewal of a concealed handgun
license from 4 to 5 years would also result in the Department
experiencing a sharp drop-off in concealed handgun license fees for
fiscal year 2003, when renewal fees for 4-year licenses would have been
received (this revenue would not be realized until fiscal year 2004).
According to the Department of Public Safety, approximately 30,000
individuals received an original handgun license in 1998. Assuming
roughly the same number of persons would be up for a license renewal in
FY2000 and would be allowed to re-renew in fiscal year 2004 instead of
2003, the Department could lose as much as $2 million in fiscal year
2003.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 405 Department of Public Safety
LBB Staff: JK, MD