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 6787 NOTE PREPARED: Dec 26, 2021
BILL NUMBER: HB 1127 BILL AMENDED:
SUBJECT: Constitutional Carry.
FIRST AUTHOR: Rep. Jacob BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Repeal of License Requirement to Carry Handgun– The bill repeals the law that
requires a person to obtain a license to carry a handgun in Indiana. It provides that a nonresident of Indiana
may carry a handgun in Indiana without possessing a license or permit to carry a handgun from the person's
state of residence.
Possession of Handgun on Indiana Government Center Grounds– The bill allows a member of the: (1)
General Assembly; (2) General Assembly's professional staff; or (3) Lobby Registration Commission; to
possess a handgun on the Indiana government center campus if the person is otherwise permitted to possess
a handgun.
Handgun License Reciprocity– The bill allows a person who wishes to carry a handgun in another state under
a reciprocity agreement entered into by Indiana and the other state to obtain a license to carry a handgun.
Possession of Firearm on DNR Property– Beginning July 1, 2022, the bill permits a person not otherwise
prohibited from possessing a firearm under state or federal law to possess a firearm on any property that is:
(1) affiliated with; (2) operated or managed by; (3) owned by; or (4) leased by; the Department of Natural
Resources.
Miscellaneous Provisions– The bill defines certain terms. The bill makes conforming amendments.
Effective Date: Upon passage.
Explanation of State Expenditures: Repeal of License Requirement to Carry Handgun– The Indiana State
HB 1127 1 Police (ISP) would be involved in the processing of reciprocity licenses. The ISP has civilian record keepers
that handle the administration of handgun licensing as part of the ISP’s Records Division. There could be
a savings to expenditures if future ISP administrative action led to a reduction in ISP handgun license staff.
Reciprocity Licenses- The ISP may need to have their firearms licensing processing system modified slightly
to change the printing on handgun licenses to show “Reciprocity” on the license. Expenditures needed to
make these changes would likely not be significant.
Criminal Penalties– In certain circumstances a criminal violation for possession of a handgun without a
license can be a Level 5 felony. If fewer Level 5 felonies occur there would be fewer persons incarcerated
in future years, which would result in minor reduction in Department of Correction expenditures.
Possession of Firearm on DNR Property– The bill would require the Department of Natural Resources
(DNR) to adopt emergency rules to allow the carry or possession of firearms without restriction on DNR
property. Rule adoption is a routine function and would likely be accomplished within existing resources.
Explanation of State Revenues: Criminal Penalties– The bill would reduce the scope of an existing Class
A misdemeanor for illegal possession of a handgun by eliminating the current crimes it covers except on or
near school property or in case of a domestic violence conviction. Revenue to the Common School Fund
could be reduced if fewer persons are sentenced for a Class A misdemeanor or, in certain instances, a Level
5 felony. Currently, the maximum fine for a Class A misdemeanor is $5,000. The maximum fine for a Level
5 felony is $10,000. However, any revenue reduction is likely to be small.
Explanation of Local Expenditures: Criminal Penalties– The maximum term of imprisonment for a Class
A misdemeanor is up to one year. However, any reduction in costs to local governments is likely to be small.
Explanation of Local Revenues: Handgun License Reciprocity– There are several states with reciprocity
agreements to accept valid Indiana handgun licenses. Many of these states do not track Indiana residents and
their handgun licenses when visiting, unless there would be a legal reason to do so. With fees currently at
$0, no revenue would be collected from reciprocity licenses issued.
Criminal Penalties– There may be a reduction in revenue from court fees, but the reduction is likely to be
minimal.
State Agencies Affected: Indiana State Police; Department of Natural Resources.
Local Agencies Affected: Trial courts; local law enforcement agencies.
Information Sources: Indiana State Police: Handgun License Applications and Denials Data, Misdemeanor
Abstracts of Judgment; State Staffing Reports.
Fiscal Analyst: Chris Baker, 317-232-9851.
HB 1127 2