Department
of
Audits
and
Accounts
270 Washington Street, S.W., Suite 4-114
Atlanta, Georgia 30334-8400
270 Washington Street, S.W., Suite 4-114
Atlanta, Georgia 30334-8400
Russell W.
Hinton
State Auditor
(404) 656-2174
State Auditor
(404) 656-2174
March
18, 2010
Honorable Mitch
Seabaugh
State Senator
State Capitol, Room 421
Atlanta, Georgia 30334
SUBJECT: Fiscal Note
State Senator
State Capitol, Room 421
Atlanta, Georgia 30334
SUBJECT: Fiscal Note
Senate Bill
308 (LC 29 4168S)
Dear Senator
Seabaugh:
This
bill would transfer the duties of processing applications and issuing weapons
carry licenses from the probate courts to the Office of Secretary of State
(SOS), effective January 1, 2012. The bill also clarifies provisions regarding
the carrying and possession of weapons as well as stipulates various licensing
exceptions regarding handguns and long guns.
The
bill’s fiscal impact to the SOS would be a net cost of approximately
$885,000 annually, which consists of annual costs to the SOS less the dollar
amount of application fees collected. There would also be a one-time cost to
the SOS for a new database system with the capability of handling issuance,
registration, and payments. Although the SOS was unable to readily provide an
accurate cost for the database, they estimated this cost may total around
$500,000.
The
estimated annual cost to the SOS totals about $2.31 million, which is comprised
of additional personnel, operating expenses, and the cost of hearings for
revoked licenses. Of this total, $1.34 million would be for the following 25
additional personnel (including salaries and benefits):
- · 20 licensing staff to handle processing of new and renewal applications as well as to update changes in eligibility of licensees;
- · 3 analysts to process fingerprint and background check information; and
- · 2
customer service specialists.
Honorable
Mitch Seabaugh
State Senator
State Capitol, Room 421
Atlanta, Georgia 30334
Page 2
State Senator
State Capitol, Room 421
Atlanta, Georgia 30334
Page 2
The
remaining $970,000 in annual costs would include: about $800,000 for the SOS to
use its current vendor for printing secure weapons permit cards and about
$170,000 for operating expenses, such as supplies, telecommunications, and court
hearings regarding revoked licenses.
The
fees collected for new applications and renewals would offset the estimated
$2.31 million annual cost by about $1.4 million. This fee revenue estimate was
calculated by using current licensing information, which shows that there are
about 400,000 licensees. As a license is valid for five years, an estimated
80,000 licenses would be renewed each year, plus 15,000 new applications are
expected each year. At a fee of $15 per license application or renewal, the
resulting revenue estimate totals $1,425,000.
As
a result of this function transitioning to the SOS, probate courts would likely
experience some savings. These savings would not be state funds, however, as,
according to the Administrative Office of the Courts (AOC), probate courts are
funded by county governments. Although the probate courts collect and retain
license fees, the AOC indicated that these fees do not cover the full cost for
performing the function. Consequently, some savings may be expected at the
county level if this function transferred to the SOS.
Respectfully,
/s/ Russell W.
Hinton
State Auditor
State Auditor
/s/ Trey
Childress, Director
Office of Planning and Budget
Office of Planning and Budget