LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 14, 2001 TO: Honorable Bob Turner, Chair, House Committee on Public Safety FROM: John Keel, Director, Legislative Budget Board IN RE: HB1122 by Turner, Bob (relating to allowing the Department of Public Safety to sell certain confiscated firearms.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1122, Committee Report 1st House, Substituted: negative impact * * of $(123,986) through the biennium ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(123,986) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Revenue Probable Probable * * Year Gain/(Loss) from New Savings/(Cost) from Savings/(Cost) from * * General Revenue New General Revenue General Revenue Fund * * Dedicated Law Dedicated Law 0001 * * Enforcement Safety Enforcement Safety * * Account Account * * 2002 $1,683,000 $(1,683,000) $(123,986) * * 2003 1,683,000 (1,683,000) 0 * * 2004 1,683,000 (1,683,000) 0 * * 2005 1,683,000 (1,683,000) 0 * * 2006 1,683,000 (1,683,000) 0 * ************************************************************************** Technology Impact The Department of Public Safety (DPS) estimates that 528 contract programming hours at $120/hours for a cost of $63,360 would be needed to design the database that would keep track of the forfeited weapons. Computer hardware and software would be $34,591 for new DPS employees in fiscal year 2002 only. Fiscal Analysis This bill would require certain weapons be forfeited to the state. Certain law enforcement agencies holding a court-ordered forfeited weapon would be required to transfer the weapon to DPS within 90 or 180 days of the order depending on the size of the municipality. DPS would assess the value of the forfeited weapon. Those deemed without value would be destroyed within 120 days of receipt. All other weapons would be sold at public sale or designated for use by a law enforcement agency and transferred to that agency. This bill would create the Law Enforcement Safety Account as a General Revenue Dedicated account. This account would receive revenue generated from the public weapon sales, less twenty percent that DPS could retain for administrative purposes. The Legislature could appropriate money in the new account to the CJD; and the CJD would be authorized to provide, from such appropriations, grants to participating law enforcement agencies for the purpose of purchasing safety equipment. This bill would take effect September 1, 2001, and it only would apply to weapons forfeited on or after that date. Methodology DPS estimates that 75 percent of an estimated 33,000 weapons forfeited annually to law enforcement agencies and forwarded to the state will be subject to public sale. DPS estimates that these 24,750 weapons would have an average value of $85 generating $2,103,750 a year in revenue. Twenty percent or $420,750 would be retained by DPS to administer the program while the remaining $1,683,000 would be deposited into the Law Enforcement Safety Account of General Revenue. It is estimated that 5 employees would be necessary to administer the program at DPS. Salaries for these employees is estimated at $140,692 in fiscal year 2002 and fiscal year 2003. Operating expenses for the employees would average $5,250 each fiscal year. Equipment for the employees outside of computer equipment would cost $39,571 in fiscal year 2002 and $4,654 each year thereafter. Sale of the forfeited weapons would require an auctioneer whose fee typically is 6.25% of the total sale. It is assumed that half of the $2,103,750 would be generated through the use of an auctioneer resulting in an annual fee of $131,484. There would be several one-time costs that would occur exclusively in fiscal year 2002. Contract programming would cost $63,360 while computer hardware and software for the new employees would be $34,591 in fiscal year 2002 only. Employee training would cost $26,000, ten 1600 pound secure gun vaults would cost $3,400 apiece, and a secure commercial vehicle to transport the weapons to auction would cost $30,000. Finally, employee benefits are expected to be $39,788 each fiscal year. There would be a cost to the General Revenue Fund of $123,986 primarily due to the one-time expenses listed above. However, beginning in fiscal year 2003, the $420,750 estimated to be retained by the agency covers all costs of the program. It is estimated that there would be no significant impact to the CJD . The fiscal note assumes that the revenues deposited to the Law Enforcement Safety Account would be appropriated to the CJD for grant-making purposes. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 405 Texas Department of Public Safety, 301 Office of the Governor, 304 Comptroller of Public Accounts LBB Staff: JK, JC, JN, DG