ELIMINATE CONCEALED PISTOL

LICENSE RENEWAL FEE

House Bill 5098 as introduced

Sponsor:  Rep. Brad Paquette

Committee:  Military, Veterans and Homeland Security

Revised 2-24-20

SUMMARY:

House Bill 5098 would amend 1927 PA 372, the handgun licensing law, to eliminate the fee to renew a concealed pistol license (CPL).

Currently under the act, an applicant for a renewal CPL must pay an application and licensing fee of $115. Of that amount, $36 is deposited in the concealed pistol licensing fund of the applicable county, and the balance ($79) is deposited in the state general fund to the credit of the Department of State Police (MSP).

The bill would eliminate this fee.

MCL 28.425l

FISCAL IMPACT:

House Bill 5098 would have a significant fiscal impact on the MSP and on county governments. The bill would significantly reduce revenues to the aforementioned entities by eliminating the $115 fee for renewing a concealed pistol license. Of that fee, $36 is deposited to the concealed pistol licensing fund of the respective county and $79 is deposited to the state general fund to the credit of the MSP. According to the most recent concealed pistol licensing report from the MSP for FY 2018-19, MSP revenues from all CPL licensing (including both initial and renewal applications) totaled $8.9 million. Assuming that this figure represents the MSP’s total share of CPL licensing revenues, county revenues from CPL licensing in                FY 2018-19 would be approximately $4.0 million. Total departmental expenditures for            FY 2018-19 totaled $8.9 million, according to the report. Of the $8.9 million in revenue that MSP receives from CPL licensing, approximately $2.0 million was expended for MSP’s CPL Unit and $6.9 million was expended for support systems utilized by the CPL Unit.

                                                                                         Legislative Analyst:   E. Best

                                                                                                 Fiscal Analyst:   Marcus Coffin

This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.