LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 12, 2013 TO: Honorable Joseph Pickett, Chair, House Committee On Homeland Security & Public Safety FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB485 by Davis, Sarah (relating to the amount of the fee paid by certain peace officers and veterans of the United States armed forces for a license to carry a concealed handgun; authorizing a fee. ), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB485, Committee Report 1st House, Substituted: a negative impact of ($807,000) through the biennium ending August 31, 2015. While the overall fiscal impact to the Department of Public Safety's administrative costs would not be significant, the enactment of the bill could result in a loss of revenue to the state's General Revenue Fund. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 12, 2013 TO: Honorable Joseph Pickett, Chair, House Committee On Homeland Security & Public Safety FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB485 by Davis, Sarah (relating to the amount of the fee paid by certain peace officers and veterans of the United States armed forces for a license to carry a concealed handgun; authorizing a fee. ), Committee Report 1st House, Substituted TO: Honorable Joseph Pickett, Chair, House Committee On Homeland Security & Public Safety FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB485 by Davis, Sarah (relating to the amount of the fee paid by certain peace officers and veterans of the United States armed forces for a license to carry a concealed handgun; authorizing a fee. ), Committee Report 1st House, Substituted Honorable Joseph Pickett, Chair, House Committee On Homeland Security & Public Safety Honorable Joseph Pickett, Chair, House Committee On Homeland Security & Public Safety Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB485 by Davis, Sarah (relating to the amount of the fee paid by certain peace officers and veterans of the United States armed forces for a license to carry a concealed handgun; authorizing a fee. ), Committee Report 1st House, Substituted HB485 by Davis, Sarah (relating to the amount of the fee paid by certain peace officers and veterans of the United States armed forces for a license to carry a concealed handgun; authorizing a fee. ), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB485, Committee Report 1st House, Substituted: a negative impact of ($807,000) through the biennium ending August 31, 2015. While the overall fiscal impact to the Department of Public Safety's administrative costs would not be significant, the enactment of the bill could result in a loss of revenue to the state's General Revenue Fund. Estimated Two-year Net Impact to General Revenue Related Funds for HB485, Committee Report 1st House, Substituted: a negative impact of ($807,000) through the biennium ending August 31, 2015. While the overall fiscal impact to the Department of Public Safety's administrative costs would not be significant, the enactment of the bill could result in a loss of revenue to the state's General Revenue Fund. While the overall fiscal impact to the Department of Public Safety's administrative costs would not be significant, the enactment of the bill could result in a loss of revenue to the state's General Revenue Fund. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 ($380,000) 2015 ($427,000) 2016 ($484,000) 2017 ($422,000) 2018 ($367,000) 2014 ($380,000) 2015 ($427,000) 2016 ($484,000) 2017 ($422,000) 2018 ($367,000) All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2014 ($380,000) 2015 ($427,000) 2016 ($484,000) 2017 ($422,000) 2018 ($367,000) Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2014 ($380,000) 2015 ($427,000) 2016 ($484,000) 2017 ($422,000) 2018 ($367,000) 2014 ($380,000) 2015 ($427,000) 2016 ($484,000) 2017 ($422,000) 2018 ($367,000) Fiscal Analysis The bill would amend the Government Code to reduce the various fees associated with concealed handgun licenses for certain military veterans and licensed peace officers. Specifically, the veteran application fee is reduced by $45 (from $70 to $25); the renewal application fee is reduced by $10 (from $35 to $25); and duplicate or modified license fees are reduced by 50 percent. Under current law, such discharged veterans can apply for an original, duplicate, modified or renewed concealed handgun license at a 50 percent discount from the standard fees. The bill would also allow all individuals licensed as peace officers in Texas to apply under the special condition of active peace officer. Currently, only full-time peace officers qualify for this condition. The active peace officer special condition waives the training and proficiency demonstration, requires a letter from the head of the law enforcement agency, and has a fee of $25. The change would affect part-time and reserve officers, who currently have to meet the standard training requirements and pay the full license fee of $140. The bill would amend the Government Code to reduce the various fees associated with concealed handgun licenses for certain military veterans and licensed peace officers. Specifically, the veteran application fee is reduced by $45 (from $70 to $25); the renewal application fee is reduced by $10 (from $35 to $25); and duplicate or modified license fees are reduced by 50 percent. Under current law, such discharged veterans can apply for an original, duplicate, modified or renewed concealed handgun license at a 50 percent discount from the standard fees. The bill would also allow all individuals licensed as peace officers in Texas to apply under the special condition of active peace officer. Currently, only full-time peace officers qualify for this condition. The active peace officer special condition waives the training and proficiency demonstration, requires a letter from the head of the law enforcement agency, and has a fee of $25. The change would affect part-time and reserve officers, who currently have to meet the standard training requirements and pay the full license fee of $140. Methodology The Comptroller of Public Accounts has estimated annual losses in revenues to the General Revenue Fund resulting from the fee reductions in the bill. The Comptroller has noted that the information on concealed handgun licenses was provided by the Texas Department of Public Safety. This bill allows all individuals licensed as peace officers in Texas to apply under the special condition of active peace officer, allowing reserve and part-time officers to also qualify to pay $25 for an original or renewal license application. Currently, reserve and part-time peace officers pay the standard rates of $70 for an original application, and $35 for a renewal application. DPS currently does not track reserve and part-time officers separately. As such, the Comptroller stated the fiscal impact for the provision allowing reserve and part-time licensed peace officers to pay a $25 fee cannot be determined. The Comptroller of Public Accounts has estimated annual losses in revenues to the General Revenue Fund resulting from the fee reductions in the bill. The Comptroller has noted that the information on concealed handgun licenses was provided by the Texas Department of Public Safety. This bill allows all individuals licensed as peace officers in Texas to apply under the special condition of active peace officer, allowing reserve and part-time officers to also qualify to pay $25 for an original or renewal license application. Currently, reserve and part-time peace officers pay the standard rates of $70 for an original application, and $35 for a renewal application. DPS currently does not track reserve and part-time officers separately. As such, the Comptroller stated the fiscal impact for the provision allowing reserve and part-time licensed peace officers to pay a $25 fee cannot be determined. Technology The technology costs associated with implementing the provisions of the bill could be absorbed within the Department of Public Safety's current appropriations. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 405 Department of Public Safety 304 Comptroller of Public Accounts, 405 Department of Public Safety LBB Staff: UP, ESi, AI, JAW UP, ESi, AI, JAW