Notice of Senate Passage for Engrossed Second Substitute House Bill 2467

Office of the Governor / Office of Financial Management sent this bulletin at 03/10/2020 09:41 AM PDT

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E2SHB 2467, titled AN ACT Relating to establishing a centralized single point of contact background check system for firearms transfers, has been passed by the Senate. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal
Year

Firearm Background Check

2020

2021

2022

2023

5,182,848

2024

10,365,696

2025

10,365,696

2026

10,365,696

2027

10,365,696

2028

10,365,696

2029

10,365,696

Total:

$ 67,377,024

Washington State Patrol:

Compared to the second substitute bill, the engrossed second substitute bill reduces the cash receipts to the Washington State Patrol (WSP) as a result of the background check fee not applying in connection with a pawnbroker's receipt of a pawned firearm or the redemption of a pawned firearm. In 2018, there were 27,490 transactions that fell into this category, and in 2019, there were 20,765 of these transactions. The decreased revenue projections are detailed below. The WSP assumes the costs for completing this workload will either come from revenue associated with performing other transactions or from other state funding.

This legislation establishes a centralized single point of contact background check system for firearms sales or transfers.

Section 1 requires the WSP to establish a firearms background check unit to serve as a centralized single point of contact for dealers to conduct background checks for firearms sales or transfers. The WSP also must establish an automated firearms background check system to conduct background checks. This section describes the processes and systems to be used for conducting background checks.

Firearm dealers must charge a background check fee in the amount determined by the WSP and remit the proceeds from the fee to the WSP on a monthly basis. The legislation also creates a State Firearms Background Check System Account. The background check fee may not exceed $18.00. In addition, the background check fee does not apply to any background check conducted in connection with a pawnbroker's receipt of a pawned firearm or the redemption of a pawned firearm.

The WSP's anticipated cash receipts are based on data from the Office of Financial Management (OFM) feasibility study of a single point-of-contact firearm background check system. The feasibility study projected 600,000 annual background checks with a break even fee of $18.63. Since the bill limits the background fee to $18.00, the cash receipts are based on an $18.00 fee. Reducing the projected annual background checks by 24,128 (average annual background checks for pawnbroker transactions excluded from the fee) results in 575,872 background checks at $18.00 for a total $10,365,696 annually.

For the purposes of this fiscal note, we assume conducting background checks starting on January 1, 2023. As a result, the FY 2023 cash receipts are based on 287,936 background checks, or $5,182,848.

After the implementation planning phase is complete, we anticipate we will have better projections for a go live date and cash receipts.

Ten-year projection prepared in consultation with the following agencies:

The following legislators voted yea:

Senator Steve Conway
Democrat
(360) 786-7656
Steve.Conway@leg.wa.gov

Senator Karen Keiser
Democrat
(360) 786-7664
Karen.Keiser@leg.wa.gov

Senator Sam Hunt
Democrat
(360) 786-7642
Sam.Hunt@leg.wa.gov

Senator Jeannie Darneille
Democrat
(360) 786-7652
DARNEILL_JE@leg.wa.gov

Senator John McCoy
Democrat
(360) 786-7674
John.McCoy@leg.wa.gov

Senator Bob Hasegawa
Democrat
(360) 786-7616
Bob.Hasegawa@leg.wa.gov

Senator Dean Takko
Democrat
(360) 786-7636
Dean.Takko@leg.wa.gov

Senator Christine Rolfes
Democrat
(360) 786-7644
Christine.Rolfes@leg.wa.gov

Senator Jamie Pedersen
Democrat
(360) 786-7628
Jamie.Pedersen@leg.wa.gov

Senator Kevin Van De Wege
Democrat
(360) 786-7646
Kevin.VanDeWege@leg.wa.gov

Senator Steve Hobbs
Democrat
(360) 786-7686
Steve.Hobbs@leg.wa.gov

Senator Marko Liias
Democrat
(360) 786-7640
Marko.Liias@leg.wa.gov

Senator Reuven Carlyle
Democrat
(360) 786-7670
Reuven.Carlyle@leg.wa.gov

Senator Derek Stanford
Democrat
(360) 786-7600
Derek.Stanford@leg.wa.gov

Senator Andy Billig
Democrat
(360) 786-7604
Andy.Billig@leg.wa.gov

Senator David Frockt
Democrat
(360) 786-7690
David.Frockt@leg.wa.gov

Senator Steve O'Ban
Republican
(360) 786-7654
Steve.OBan@leg.wa.gov

Senator Mark Mullet
Democrat
(360) 786-7608
Mark.Mullet@leg.wa.gov

Senator Annette Cleveland
Democrat
(360) 786-7696
Annette.Cleveland@leg.wa.gov

Senator Patty Kuderer
Democrat
(360) 786-7694
Patty.Kuderer@leg.wa.gov

Senator Lisa Wellman
Democrat
(360) 786-7641
Lisa.Wellman@leg.wa.gov

Senator Rebecca Saldaña
Democrat
(360) 786-7688
Rebecca.Saldana@leg.wa.gov

Senator Manka Dhingra
Democrat
(360) 786-7672
Manka.Dhingra@leg.wa.gov

Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov

Senator Joe Nguyen
Democrat
(360) 786-7667
NGUYEN_JO@leg.wa.gov

Senator Jesse Salomon
Democrat
(360) 786-7662
SALOMON_JE@leg.wa.gov

Senator Claire Wilson
Democrat
(360) 786-7658
WILSON_CL@leg.wa.gov

Senator Emily Randall
Democrat
(360) 786-7650
RANDALL_EM@leg.wa.gov

Senator Liz Lovelett
Democrat
(360) 786-7678
Liz.Lovelett@leg.wa.gov

The following legislators voted nay:

Senator Mike Padden
Republican
(360) 786-7606
Mike.Padden@leg.wa.gov

Senator Tim Sheldon
Democrat
(360) 786-7668
Timothy.Sheldon@leg.wa.gov

Senator Mark Schoesler
Republican
(360) 786-7620
Mark.Schoesler@leg.wa.gov

Senator Maureen Walsh
Republican
(360) 786-7630
Maureen.Walsh@leg.wa.gov

Senator Jim Honeyford
Republican
(360) 786-7684
Jim.Honeyford@leg.wa.gov

Senator Brad Hawkins
Republican
(360) 786-7622
Brad.Hawkins@leg.wa.gov

Senator Doug Ericksen
Republican
(360) 786-7682
Doug.Ericksen@leg.wa.gov

Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov

Senator Hans Zeiger
Republican
(360) 786-7648
Hans.Zeiger@leg.wa.gov

Senator Shelly Short
Republican
(360) 786-7612
Shelly.Short@leg.wa.gov

Senator Judy Warnick
Republican
(360) 786-7624
Judith.Warnick@leg.wa.gov

Senator Curtis King
Republican
(360) 786-7626
Curtis.King@leg.wa.gov

Senator Randi Becker
Republican
(360) 786-7602
Randi.Becker@leg.wa.gov

Senator Ann Rivers
Republican
(360) 786-7634
Ann.Rivers@leg.wa.gov

Senator Jeff Holy
Republican
(360) 786-7610
Jeff.Holy@leg.wa.gov

Senator John Braun
Republican
(360) 786-7638
John.Braun@leg.wa.gov

Senator Sharon Brown
Republican
(360) 786-7614
Sharon.Brown@leg.wa.gov

Senator Lynda Wilson
Republican
(360) 786-7632
Lynda.Wilson@leg.wa.gov

Senator Keith Wagoner
Republican
(360) 786-7676
Keith.Wagoner@leg.wa.gov

Senator Ron Muzzall
Republican
(360) 786-7618
MUZZALL_RO@leg.wa.gov

Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp

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