LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6238 NOTE PREPARED: Jan 29, 2024
BILL NUMBER: HB 1143 BILL AMENDED:
SUBJECT: Disposal of Firearms via Trade for New Equipment.
FIRST AUTHOR: Rep. Lucas BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
A. It permits a law enforcement agency to dispose of certain confiscated firearms by trade with a
licensed firearms dealer, a licensed firearm manufacturer, or another law enforcement agency in
exchange for new firearms and other law enforcement equipment.
B. It sets forth the recording and reporting requirements for the trade of firearms by a law enforcement
agency.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Confiscated Firearm Trade: A state law enforcement agency could
save on costs of purchasing firearms or law enforcement equipment through trading the confiscated firearms.
However, any savings from trading firearms rather than purchasing firearms is likely to be minimal.
Record of Trade: The law enforcement agency would need to maintain a record of each trade including the
confiscated firearm, the person receiving the firearm, and the law enforcement equipment being received.
The bill’s requirements would increase the workload and expenditures of a law enforcement agency to
develop an administrative method to take and maintain the record of trade. This added workload would likely
be minimal.
Explanation of State Revenues:
HB 1143 1 Explanation of Local Expenditures: Confiscated Firearm Trade: A local law enforcement agency could
save on costs of purchasing firearms or law enforcement equipment through trading the confiscated firearms.
However, the savings on cost is likely to be minimal.
Record of Trade: The local law enforcement agency would need to maintain record of the trade including
the confiscated firearm, the person receiving the firearm, and the law enforcement equipment being received.
The bill’s requirements would increase the workload and expenditures of a local law enforcement agency
to develop an administrative method to take and maintain the record of trade. This increase would likely be
minimal.
Additional Information – Under current law, after 180 days after law enforcement agencies seize firearms
with reasonable attempts to locate rightful owner have failed or the rightful owner was convicted of an
offense related to the misuse of a firearm, they must either (1) sell the firearms to the general public or to
licensed firearms dealers; (2) sell or transfer the firearms to another law enforcement agency; (3) release the
firearms to the State Police laboratory or another forensic laboratory; or (4) destroy the firearms. This bill
only applies to firearms that are not required to be registered in the National Firearms Registration and
Transfer Record.
As an illustration of the possible numbers of firearms that might be able to be traded for new equipment,
OFMA found reports from both federal and state sources.
The Bureau of Alcohol, Tobacco, Firearms and Explosives reports on the firearms recovered and traced in
Indiana between CY 2019 and 2022.
CY 2018CY 2019CY 2020CY 2021CY 2022
8,493 8,539 9,087 10,349 11,320
The Indiana Prosecuting Attorneys Council publishes an annual forfeiture report. In this report, IPAC reports
the number of firearms which are reported to be forfeited by fiscal year.
FY 2019FY 2020FY 2021FY 2022FY 2023
12 12 20 13 92
Explanation of Local Revenues:
State Agencies Affected: State law enforcement agencies.
Local Agencies Affected: Local law enforcement agencies.
Information Sources: Forfeiture Reports, Indiana Prosecuting Attorneys Council
https://iga.in.gov/publications/agency/reports/ipac
Firearms Trace Data for Indiana; The Bureau of Alcohol, Tobacco, Firearms and Explosives
https://www.atf.gov/resource-center/firearms-trace-data-indiana-2022
Fiscal Analyst: Mark Goodpaster, 317-232-9852.
HB 1143 2