LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION April 20, 2017 TO: Honorable Phil King, Chair, House Committee on Homeland Security & Public Safety FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB16 by Nichols (Relating to decreasing the fee for the issuance of an original or renewed license to carry a handgun.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB16, As Engrossed: a negative impact of ($21,982,000) through the biennium ending August 31, 2019. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
April 20, 2017
TO: Honorable Phil King, Chair, House Committee on Homeland Security & Public Safety FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB16 by Nichols (Relating to decreasing the fee for the issuance of an original or renewed license to carry a handgun.), As Engrossed
TO: Honorable Phil King, Chair, House Committee on Homeland Security & Public Safety
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB16 by Nichols (Relating to decreasing the fee for the issuance of an original or renewed license to carry a handgun.), As Engrossed
Honorable Phil King, Chair, House Committee on Homeland Security & Public Safety
Honorable Phil King, Chair, House Committee on Homeland Security & Public Safety
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB16 by Nichols (Relating to decreasing the fee for the issuance of an original or renewed license to carry a handgun.), As Engrossed
SB16 by Nichols (Relating to decreasing the fee for the issuance of an original or renewed license to carry a handgun.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB16, As Engrossed: a negative impact of ($21,982,000) through the biennium ending August 31, 2019. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB16, As Engrossed: a negative impact of ($21,982,000) through the biennium ending August 31, 2019.
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 2018 ($12,561,000) 2019 ($9,421,000) 2020 ($13,991,000) 2021 ($9,421,000) 2022 ($12,561,000)
2018 ($12,561,000)
2019 ($9,421,000)
2020 ($13,991,000)
2021 ($9,421,000)
2022 ($12,561,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2018 ($12,561,000) 2019 ($9,421,000) 2020 ($13,991,000) 2021 ($9,421,000) 2022 ($12,561,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2018 ($12,561,000) 2019 ($9,421,000) 2020 ($13,991,000) 2021 ($9,421,000) 2022 ($12,561,000)
2018 ($12,561,000)
2019 ($9,421,000)
2020 ($13,991,000)
2021 ($9,421,000)
2022 ($12,561,000)
Fiscal Analysis
The bill would amend the Government Code to reduce the fees for the issuance of an original, duplicate, modified, or renewed license to carry (LTC) a handgun.The bill would set the fee for an original and renewal LTC at $40, paid to the Department of Public Safety (DPS). The bill would also set the application and license fee for an applicant who is certified as a qualified handgun instructor at $40, in addition to the instructor training fee. The bill would also reduce certain fees if the department determines that an applicant is indigent or a senior citizen. The bill would set the application and license fee for an applicant who is a judicial officer at $25.The bill would take effect on September 1, 2017.
Methodology
DPS reports that the total number of original and renewal LTC applications have increased from 155,932 applications in fiscal year 2011 to 386,397 applications in fiscal year 2016. The average rate of growth over these years is 23 percent. This analysis assumes the number of applicants for an original and renewal LTC would total 308,064 in fiscal year 2018 and 316,959 in fiscal year 2019.DPS reports the per-applicant cost to administer the LTC program totals $27, which accounts for background checks required by the Federal Bureau of Investigation and the State. DPS also reports that the cost of these background checks are paid for by an applicant's LTC application fee. The remaining portion of each application fee is deposited into General Revenue Fund 01.This analysis assumes that since an applicant's standard original or renewal application fee of $40 for an LTC application would cover the $27 cost to administer the program, there would not be a cost to DPS.The Comptroller of Public Accounts (CPA) estimates that the revenue loss would amount to approximately 43 percent of the total estimate for Object Code 3126, LTC fees in the 2018-19 Biennial Revenue Estimate. The CPA estimates a loss of $12.6 million in fiscal year 2018 and $9.4 million in fiscal year 2019 to General Revenue Fund 01.This analysis assumes administrative duties and responsibilities associated with implementing the provisions of the bill could be accomplished using existing resources.
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, FR, AG, AI
UP, FR, AG, AI