SB 1348 - HB 1392
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 8, 2025
Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564
SB 1348 - HB 1392
SUMMARY OF BILL: Deletes an exception to the offense of unlawfully carrying a
handgun with the intent to go armed.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE TBI Handgun Permit Division
FY25-26 & Subsequent Years $2,408,000 $8,328,300
EXPENDITURES TBI Handgun Permit Division
FY25-26 & Subsequent Years $1,161,300 $3,346,700
LOCAL GOVERNMENT
REVENUE Mandatory
FY25-26 & Subsequent Years $728,500
Assumptions:
• Public Chapter 108 of 2021 (PC 108), enacted on July 1, 2021, created an exception to the
offense of carrying a handgun, whether openly or concealed, with the intent to go armed
for any person at least 21 years of age who lawfully possesses the handgun.
• The proposed legislation would delete this exception.
• Deleting the exception would require a person to obtain a valid handgun permit in order to
lawfully carry a handgun with the intent to go armed.
• It is assumed that handgun permit issuance will return to the same average levels as they
were before enactment of PC 108.
Department of Safety
• According to the Department of Safety’s (DOS) annual Handgun Carry Permit Statistical
Reports, the average annual revenue to the DOS’s handgun division from handgun permits
in the three years before PC 108 was $11,321,790.
• The annual revenue collected from handgun permits has decreased each year since the
enactment of PC 108.
• The revenue collected in FY24-25 was $2,993,458.
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• Therefore, the increase in state revenue to the handgun division is estimated to be
$8,328,332 ($11,321,790 - $2,993,458) in FY25-26 and subsequent years.
• Applicants for enhanced, concealed, and lifetime permits must undergo a criminal history
background check conducted by the Tennessee Bureau of Investigation (TBI).
• For each background check conducted, the DOS distributes $52.15 to the TBI to conduct
the background check and for systems maintenance. The DOS also distributes $15 to the
relevant local sheriff to assist in verifying the truthfulness of the applicant’s answers.
• The total expenditure to the DOS per background check is thus $67.15 ($52.15 TBI + $15
sheriffs).
• The average number of the permits issued that require a background check in the three
years before PC 108 was 65,094 permits. The number of permits issued in FY24-25 was
18,919.
• Therefore, the legislation is estimated to result in an additional 46,175 background checks
(65,094 – 18,919) for permits in FY25-26 and subsequent years.
• The total increase in expenditures to the DOS related to background checks is therefore
estimated to be $3,100,651 (46,175 background checks x $67.15) in FY25-26 and
subsequent years.
• The cost to print a permit card is $2.23 per card.
• The average number of permit cards printed in the three years before PC 108 was 156,216
cards. The number printed in FY24-25 was 45,863 cards.
• Therefore, there will be an increase in state expenditures to the DOS for card-printing
estimated to be $246,087 [$2.23 per card x (156,216 – 45,863)] in FY25-26 and subsequent
years.
• The total increase in expenditures to the handgun division is thus estimated to be
$3,346,738 ($3,100,651 background checks + $246,087 cards) in FY25-26 and subsequent
years.
Tennessee Bureau of Investigation
• The increase in state revenue to the TBI is estimated to be $2,408,026 (46,175 background
checks x $52.15 per background check) in FY25-26 and subsequent years.
• For each background check conducted, the TBI remits $12.00 to the Federal Bureau of
Investigation (FBI), and $13.15 to the fingerprint vendor, for a total expenditure per
background check of $25.15 ($12.00 FBI + $13.15 vendor).
• The increase in state expenditures to the TBI is thus estimated to be $1,161,301 (46,175
background checks x $25.15) in FY25-26 and subsequent years.
Local Impacts
• The increase in local revenue to sheriffs is estimated to be $692,625 (46,175 background
checks x $15) in FY25-26 and subsequent years.
• Pursuant to Tenn. Code Ann. § 39-17-1351(q)(1), DOS partners with 47 local government
offices – 36 county clerks and 11 municipalities – to issue renewals. The local offices are
authorized to charge an additional $4.00 per renewal application, which is retained by the
local governments. It is assumed the clerks will process approximately 15 percent of all
renewals.
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• The average number of renewals issued in the three years before PC 108 was 72,001
renewals. The number of renewals in FY24-25 was 12,282.
• Therefore, the increase in local revenue to county clerks is estimated to be $35,831 {[$4 per
renewal x (72,001 – 12,282)] x 15%} in FY25-26 and subsequent years.
• The total increase in local revenue is estimated to be $728,456 ($692,625 sheriffs + $35,831
county clerks) in FY25-26 and subsequent years.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director