LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

March 24, 2007

TO:	Honorable Joe Driver, Chair, House Committee on Law Enforcement
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB1839 by Bonnen (Relating to the requirements for renewal of a license to carry a concealed handgun.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1839, As Introduced: a negative impact of ($231,480) through the biennium ending August 31, 2009.

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
2008	($115,740)
2009	($115,740)
2010	($118,788)
2011	($112,623)
2012	($136,913)

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1
2008	($115,740)
2009	($115,740)
2010	($118,788)
2011	($112,623)
2012	($136,913)

Fiscal Analysis

The bill would amend the Government Code as it relates to concealed handgun license renewal. 

Methodology

The bill would amend the Government Code requiring concealed handgun license renewal applicants upon first and second renewal to complete a handgun proficiency course and obtain a handgun proficiency certificate within the six-month period preceding the date of the application for renewal.  This bill would also provide that concealed handgun license renewal applicants need not complete a handgun proficiency course or obtain a handgun proficiency certificate more than once in a 10-year period.

Currently, concealed handgun licenses expire five years after the date of expiration of the previous license.  The Texas Department of Public Safety (DPS) estimates a 70 percent renewal rate for concealed handgun licenses.   DPS estimates a total of 239,921 concealed handgun license renewals through fiscal year 2012 (fiscal year 2008 - 46,296; fiscal year 2009 - 46,296; fiscal year 2010 - 47,515; fiscal year 2011 - 45,049; and fiscal year 2012 - 54,765).  At present, instructors collect a $5.00 handgun proficiency fee for each certificate issued.  Under the provision of this bill DPS estimates a loss of half, $599,803 (119,961 license renewals * $5 handgun proficiency certificate fee) of the total expected revenue, $1,199,605 (239,921 license renewals * $5 handgun proficiency certificate fee), for concealed handgun license renewals from fiscal year 2008 through fiscal year 2012.  The estimated revenue loss for fiscal years 2008 and 2009 is $115,740 per year ((46,296 license renewals/2) * $5).  

This bill would take effect September 1, 2007.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

405 Department of Public Safety

LBB Staff:

JOB, ES, GG, LG, LM