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