LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6915 NOTE PREPARED: Jan 10, 2022
BILL NUMBER: HB 1077 BILL AMENDED: Jan 10, 2022
SUBJECT: Firearms Matters.
FIRST AUTHOR: Rep. Smaltz BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Handgun Licensing– The bill repeals the law that requires a person to obtain a
license to carry a handgun in Indiana. It specifies that certain persons who are not otherwise prohibited from
carrying or possessing a handgun are not required to obtain or possess a license or permit from the state to
carry a handgun in Indiana. The bill prohibits certain individuals from knowingly or intentionally carrying
a handgun.
Unlawful Carrying of a Handgun– The bill creates the crime of "unlawful carrying of a handgun" and
specifies the penalties for committing this crime. It allows particular individuals to carry a handgun who do
not meet the requirements to receive a handgun license and are not otherwise prohibited to carry a handgun
in limited places.
Obtaining a Handgun License– The bill allows a resident of Indiana to obtain in certain circumstances a
license to carry a handgun in Indiana.
Firearm Theft– The bill makes theft of a firearm a Level 5 felony.
The bill defines certain terms, makes conforming amendments, and it repeals obsolete provisions.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Handgun Licensing– This provision would reduce the number of
license applications the Indiana State Police (ISP) would have to process in a given year. Only people seeking
reciprocity in another state to carry a handgun would be likely to apply for a license in the future under the
HB 1077 1 bill. The ISP could reassign staff currently used for handgun licensing to other priorities within the agency,
or eliminate some of the positions if they are no longer needed.
Unlawful Carrying of a Handgun– Removing the handgun license violations in current law and replacing
them with unlawful carrying of a handgun would likely reduce the number of persons committed to state
correctional facilities based on current arrest and prosecution practices. Department of Correction (DOC)
incarceration rates would depend on the number of arrests made in future years for unlawful carrying of a
handgun. Additionally, the allowance of persons to carry a handgun that would not otherwise qualify for a
handgun license (under current law) would likely further reduce the number of persons arrested, convicted,
and sent to a DOC facility in future years.
For FY 2021, the marginal cost for medical care, food, and clothing is approximately $4,333 annually, or
$11.67 daily, per offender, assuming offenders can be housed in existing facilities with no additional
correction staff.
Firearm Theft– This provision would increase the penalty for firearm theft from a Level 6 felony to a Level
5 felony. Analysis of all Level 5 theft (IC 35-43-4-2) sentencing outcomes from FY 2013-FY 2021 found
a very minimal difference in comparison to current sentencing outcomes for Level 6 theft of a firearm.
Therefore, the DOC would likely be minimally impacted from the proposed felony classification change.
Additional Information– Analysis of DOC intake data from FY 2013 through FY 2021 found 2,657
individuals charged with a felony handgun license violation. The following tables illustrate pre- and post-
sentence experiences and average years of sentence served in jail or a DOC facility.
Table A. Pre- and Post-Trial Sentencing of Individuals Violating Handgun Licensing Laws With a Felony
Charge (FY 2013 - FY 2021)
Total Offenders
Sentenced
Percentage With
Pre-Trial Jail
Credit*
Percentage
Committed to
DOC Post-Trial**
Percentage In Jail
Post-Trial***
Percentage In Post
Sentence
Probation
2,657 77% 45% 10% 79%
*The percentage of offenders who received credited time against their sentence that was served in jail prior to and during their
trial and sentencing phase.
**These are offenders serving time on their sentence in a DOC facility after they are sentenced.
***The “post-trial jail percentage” provides a rough estimate of the number of offenders who finished their sentences in jail
rather than going to a DOC facility to finish their sentence.
HB 1077 2 Table B. Average Sentence Years for Individuals Violating Handgun Licensing Laws with a Felony Charge
(FY 2013 - FY 2021)
Post-Trial Jail Time DOC Commitment Time
Post Sentence
Supervision
Average Years 0.7 2.5 2.9
Note: Not all persons serving a sentence in this table necessarily spent time in a DOC facility, so these averages
should not be summed for total sentence estimate. Most offenders will serve all or part of their sentence in county
jail. Some offenders will be sent on to a DOC facility to complete their sentence.
The post trial average sentence for a handgun violation carried out in jail was about 8.4 months. Average time
served in a DOC facility was 2.5 years with probation afterwards lasting on average almost three years.
Explanation of State Revenues: Handgun Licensing– Given that the state fee for handgun licenses is
currently $0, there would be no revenue reduction at the state level as a result of this provision.
Firearm Theft– It is likely there would be little to no change in revenues from the felony reclassification
under the bill. Both a Level 5 and Level 6 felony have a penalty fine not to exceed $10,000. Any change to
fines collected would likely be minimal. Fines are placed in the common school fund, while court fees are
placed in the General Fund.
Unlawful Carrying of a Handgun– There would likely be a reduction in court fees and judgments collected
for fewer criminal trials involving violations for unlawful possession of handguns than currently for
violations of the existing handgun license statute. Any reduction would depend on the amount of enforcement
given to the proposed law. The state’s share of court fees is deposited into the state General Fund. Criminal
fines are placed in the Common School Fund.
Additional Information– When a criminal case is filed in a circuit or superior court, 70% of the $120 criminal
costs fee that is assessed and collected when a guilty verdict is entered is deposited into the state General
Fund. In addition, some or all of the following revenue is deposited into the state General Fund: automated
record keeping fee ($20), judicial salaries fee ($20), public defense administration fee ($5), court
administration fee ($5), judicial insurance adjustment fee ($1), and the DNA sample processing fee ($3).
Explanation of Local Expenditures: Handgun Licensing– Under this provision, local law enforcement
agencies would experience a significant reduction in workload to process fingerprint and other paperwork
from license applicants. Future applicants would only be seeking a license for reciprocity purposes.
Unlawful Carrying of a Handgun– County jails would likely see a reduction in persons held as a result of
this provision. The average cost per day to house a person is approximately $54 based on the per diem
payments reported by U.S. Marshals to house federal prisoners in 16 county jails across Indiana during
federal FY 2017.
Firearm Theft– These provisions would likely minimally impact local jail expenditures.
Explanation of Local Revenues: Handgun Licensing– Given that the local fee for handgun licenses is
currently $0, there would be no revenue reduction at the local level as a result of this provision.
HB 1077 3 Unlawful Carrying of a Handgun– Counties’ share of court fee revenue from criminal trials would likely
be reduced if fewer prosecutions occur under the proposed unlawful carry of a handgun provision.
Additional Information– The county general fund receives 27% of the $120 criminal costs fee that is assessed
in a court of record. Cities and towns maintaining a law enforcement agency that prosecutes at least 50% of
its ordinance violations in a court of record may receive 3% of the criminal costs fee. Persons found guilty
of a felony or misdemeanor are also required to pay the document storage fee ($5), which is deposited into
the clerk record perpetuation fund, and the jury fee ($2) and the law enforcement continuing education fee
($4), which are both deposited in the county user fee fund.
State Agencies Affected: ISP; DOC.
Local Agencies Affected: Local law enforcement agencies, trial courts.
Information Sources: Indiana State Police Handgun License Statistics; Abstracts of Judgment; U.S.
Department of Justice Marshals Service.
Fiscal Analyst: Chris Baker, 317-232-9851.
HB 1077 4