LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 7, 1997
         
         
      TO: Honorable Pete Patterson, Chair            IN RE:  House Bill No. 2396
          Committee on Agriculture & Livestock                              By: Finnell
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2396 ( Relating 
to the prevention of horse theft.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2396-As Introduced
         

Implementing the provisions of the bill would result in a 
net impact of $0 to General Revenue Related Funds through the 
biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.

         
 
Fiscal Analysis
 
The bill would require the Agricultural Extension Service to 
develop an ongoing training program for horse owners to promote 
the prevention of horse theft.  Each county Extension Service 
office would be required to notify horse owners of the training 
program.  State, county, or local law enforcement agencies who 
investigate horse thefts would be required to provide similar 
training to its employees.  

Horse owners would be allowed 
to mark or brand their horses with identification and to record 
the identification with the appropriate county clerk.  Slaughterhouses 
would be required to keep certain records with regard to slaughtered 
horses.  

The bill would require a fee to be paid for each 
horse purchased for slaughter by the slaughterer.  TSCRA would 
be authorized to inspect slaughterhouses regarding the identification 
of horses sold for slaughter and exported as meat.    
 
Methodolgy
 
The bill would require the slaughterer to pay $2 to the Agricultural 
Extension Service and $3 to the Texas and Southwestern Cattle 
Raisers Association (TSCRA) for each horse slaughtered.   This 
estimate assumes that fees paid to the Extension Service would 
be deposited in local funds outside the State Treasury.  It 
is further assumed that fee revenue would be sufficient for 
the Extension Service to recover all costs to develop curriculum, 
produce videos, and pay for travel printing and supplies.   


According to the Extension Service, between 55,000 and 70,000 
horses are slaughtered annually.  Assuming 70,000 horses are 
slaughtered next year the Extension Service would receive $140,000 
in local funds under the bill.  The TSCRA would receive $210,000 
under the bill.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable           Probable Revenue   
            Savings/(Cost)     Gain/(Loss) from                                                           
            from Higher        Higher Education                                                           
            Education Funds    Funds - Outside                                                            
            - Outside Treasury Treasury                                                                   
            OUTSIDE            OUTSIDE                                                                     
       1998        ($140,000)          $140,000                                                      
       1998         (140,000)           140,000                                                      
       2000         (140,000)           140,000                                                      
       2001         (140,000)           140,000                                                      
       2002         (140,000)           140,000                                                      
 


 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998                   $0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   407   Commission on Law Enforcement Officer Standards and Education
                                         555   Texas Agricultural Extension Service
                                         
                      LBB Staff:   JK ,BB ,JH