LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 26, 2001 TO: Honorable Bob Turner, Chair, House Committee on Public Safety FROM: John Keel, Director, Legislative Budget Board IN RE: HB507 by Allen (Relating to the issuance by the Texas Department of Public Safety of special permits authorizing concealed handgun license holders and other individuals to carry weapons in certain restricted areas.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB507, As Introduced: positive impact of $273,872 through the * * biennium ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 273,872 * * 2004 12,176 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Revenue Probable Change in Number of * * Year Gain/(Loss) from Savings/(Cost) from State Employees from * * Concealed Handgun Concealed Handgun FY 2001 * * License Account License Account * * 0991 0991 * * 2002 $850,275 $(850,275) 15.0 * * 2003 850,275 (576,403) 14.0 * * 2004 601,679 (589,503) 14.0 * * 2005 601,679 (601,679) 14.0 * * 2006 616,503 (616,503) 14.0 * ************************************************************************** Technology Impact The Department of Public Safety (DPS) estimates that implementing provisions of the bill would require additional database programming, and new computer hardware and software for the new employees. This would result in a one-time cost of $107,593 in fiscal year 2002. Fiscal Analysis The bill would allow DPS to create a special firearms permit that would authorize a concealed handgun license holder to carry weapons in certain restricted areas. DPS would set the fee to recover the cost of the program. The bill would take effect on September 1, 2001. Methodology DPS estimates that 25,580 individuals would apply for the special permit in fiscal year 2002 and 14,875 would apply in fiscal year 2003 and each year thereafter. DPS estimates that 15 additional personnel would be needed to meet the demand in fiscal year 2002, and 14 new personnel in fiscal year 2003. The additional personnel would be four attorneys (one placed in each of the four administrative license revocation regions), four administrative technicians to assist the attorneys, one mail processing clerk, one administrative technician to perform quality control, two data entry operators to enter licensee information into the database, one sergeant to train potential applicants and one word processor to assist with processing training applications and registrations. In fiscal year 2002 only, DPS estimates that it would need a clerk in central cash receiving, but in subsequent years as the applications level out, this position would no longer be necessary. Total salaries for these individuals would be $410,980 in fiscal year 2002 and $397,980 in fiscal year 2003. Associated employee benefits would be $116,225 in fiscal year 2002 and $112,353 in fiscal year 2003. Operating expenses would be $71,793 in fiscal year 2002 and $66,762 in subsequent years. In fiscal year 2002, there would be a one time cost of $19,297 for training the new personnel. The current handgun licensing program is directed through an Appropriations Limited to Revenue Collections rider in the General Appropriations Act. Thus it is estimated that DPS would set any fees for this program to equal the amount of appropriations and the other direct and indirect costs related to the program. It is estimated that the fees would be set to equal the highest expected cost in a two year period. This results in one year where the revenue generated would equal the cost, and another year where the revenue generated would slightly exceed the cost in any two year period. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 405 Texas Department of Public Safety LBB Staff: JK, JC, DG