10 Year Analysis Complete for Engrossed Second Substitute House Bill 1163.PL - UPDATE

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UPDATE: The 10 year analysis for E2SHB 1163.PL, titled AN ACT Relating to enhancing requirements relating to the purchase, transfer, and possession of firearms by requiring a permit to purchase firearms, specifying requirements and standards for firearms safety training programs and issuance of concealed pistol licenses, specifying circumstances where a firearm transfer may be delayed, requiring recordkeeping for all firearm transfers, and establishing reporting requirements regarding permits to purchase firearms and concealed pistol licenses, has been completed. 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		Fingerprint Background Check Fee	General Fund	Permit to Purchase Firearm Fee	Total
2026		$0	$0	$0	$0
2027		$759,000	$0	$2,970,000	$3,729,000
2028		$4,600,000	$0	$18,000,000	$22,600,000
2029		$2,300,000	$9,200,000	($200,000)	$11,300,000
2030		$2,300,000	$0	$9,000,000	$11,300,000
2031		$2,300,000	$0	$9,000,000	$11,300,000
2032		$2,300,000	$0	$9,000,000	$11,300,000
2033		$4,600,000	$0	$18,000,000	$22,600,000
2034		$2,300,000	$0	$9,000,000	$11,300,000
2035		$2,300,000	$0	$9,000,000	$11,300,000
Total:		$23,759,000	$9,200,000	$83,770,000	$116,729,000

Washington State Patrol:

Projected cash receipts are indeterminate as we are unable to determine how many permit applications might be submitted annually.

Section 5 requires the account to provide reimbursement of the amount appropriated for the initial establishment of the program by June 30, 2029. We assume there will be an $9.2M transfer from the General Fund - State into the 24T Firearms Background Check System Account to cover the initial startup costs before 24T revenue is generated.

The current version of the proposed legislation delays implementation by 6 months from previous versions. This allows for a lower fee while still projecting the account will have sufficient resources to reimburse the initial appropriation. In order to reimburse $9.2M by June 30, 2029 the fee would need to be adjusted to $90. To reflect the reimbursement to General Fund - State, we reduced 24T revenue in the cash receipts table by the $9.2M in FY29.

For illustrative purposes, we assume a $90 fee per application. For FY27, WSP assumes 33,000 permit applications resulting in cash receipts of $2.97M. For FY28, WSP assumes 200,000 permit applications resulting in cash receipts of $18M and for FY29, WSP assumes 100,000 permit applications resulting in cash receipts of $9M. Our assumption, starting in FY28 which is the first full year of operations, is permit applications will have a 5-year cycle based on renewal requirements. The 5-year renewal cycle will result in 200,000 applications in the first year and 100,000 applications in years 2-5. Bringing the total number of checks in a 5-year period to 600,000 and cash receipts of $54M. 

Section 2(11)(b)(ii) states that an applicant for an original permit must also pay the fingerprint processing fee under RCW 43.43.742. Section 2(8)(b) requires the fingerprint-based background check to be run through the federal database. 

Assuming electronic submissions, the WSP will charge $33.00 for background checks, of which $12.00 is the FBI fee ($10.00 passed to the FBI and $2.00 retained by the WSP).  The balance of the fee ($21.00) is WSPs fee, leaving total revenue to WSP, $2 + $21 = $23 per background check.

The estimated annual revenue for the Fingerprint Identification Account in FY 2027 is 33,000 x $23 = $759,000. The assumed revenue in FY28 is 200,000 x $23 = $4.6M. The assumed revenue in FY29 is 100,000 x $23 = $2.3M. Using the same methodology above, the 5-year renewal cycle starting in FY28 will result in 200,000 applications in the first year, and 100,000 applications in years 2-5. Bringing the total number of checks in a 5-year period to 600,000 and cash receipts of $13.8M.

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

Washington State Patrol
Department of Commerce

This engrossed bill is proposed by the House of Representatives.

The second substitute bill was proposed by:



The original bill sponsors and contact information are:

Representative Liz Berry, Prime Sponsor
Democrat
(360) 786-7860
Liz.Berry@leg.wa.gov

Representative Jamila Taylor
Democrat
(360) 786-7898
Jamila.Taylor@leg.wa.gov

Representative Darya Farivar
Democrat
(360) 786-7818
Darya.Farivar@leg.wa.gov

Representative Amy Walen
Democrat
(360) 786-7848
amy.walen@leg.wa.gov

Representative Gerry Pollet
Democrat
(360) 786-7886
gerry.pollet@leg.wa.gov

Senator Emily Alvarado
Democrat
(360) 786-7667
Emily.Alvarado@leg.wa.gov

Representative Sharlett Mena
Democrat
(360) 786-7996
sharlett.mena@leg.wa.gov

Representative Davina Duerr
Democrat
(360) 786-7928
davina.duerr@leg.wa.gov

Representative Julia Reed
Democrat
(360) 786-7814
Julia.Reed@leg.wa.gov

Representative Cindy Ryu
Democrat
(360) 786-7880
cindy.ryu@leg.wa.gov

Representative Lisa Parshley
Democrat
(360) 786-7992
Lisa.Parshley@leg.wa.gov

Representative Alex Ramel
Democrat
(360) 786-7970
alex.ramel@leg.wa.gov

Representative Joe Fitzgibbon
Democrat
(360) 786-7952
joe.fitzgibbon@leg.wa.gov

Representative Lisa Callan
Democrat
(360) 786-7876
lisa.callan@leg.wa.gov

Representative Nicole Macri
Democrat
(360) 786-7826
nicole.macri@leg.wa.gov

Representative Julio Cortes
Democrat
(360) 786-7840
Julio.Cortes@leg.wa.gov

Representative Edwin Obras
Democrat
(360) 786-7834
Edwin.Obras@leg.wa.gov

Representative Beth Doglio
Democrat
(360) 786-7940
beth.doglio@leg.wa.gov

Representative Mia Gregerson
Democrat
(360) 786-7868
mia.gregerson@leg.wa.gov

Representative Tarra Simmons
Democrat
(360) 786-7934
Tarra.Simmons@leg.wa.gov

Representative Strom Peterson
Democrat
(360) 786-7950
strom.peterson@leg.wa.gov

Representative Chipalo Street
Democrat
(360) 786-7838
Chipalo.Street@leg.wa.gov

Representative Roger Goodman
Democrat
(360) 786-7878
roger.goodman@leg.wa.gov

Representative Sharon Wylie
Democrat
(360) 786-7924
sharon.wylie@leg.wa.gov

Representative Jake Fey
Democrat
(360) 786-7974
jake.fey@leg.wa.gov

Representative Shelley Kloba
Democrat
(360) 786-7900
shelley.kloba@leg.wa.gov

Representative April Berg
Democrat
(360) 786-7892
April.Berg@leg.wa.gov

Representative Lauren Davis
Democrat
(360) 786-7910
lauren.davis@leg.wa.gov

Representative Mary Fosse
Democrat
(360) 786-7864
Mary.Fosse@leg.wa.gov

Representative Osman Salahuddin
Democrat
(360) 786-7936
Osman.Salahuddin@leg.wa.gov

Representative Natasha Hill
Democrat
(360) 786-7888
Natasha.Hill@leg.wa.gov

Representative Steve Tharinger
Democrat
(360) 786-7904
steve.tharinger@leg.wa.gov




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

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