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 6332 NOTE PREPARED: Dec 8, 2023 BILL NUMBER: SB 66 BILL AMENDED: SUBJECT: Various Firearms Matters. FIRST AUTHOR: Sen. Hunley BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill has the following provisions: A. It requires a person wishing to sell, trade, or transfer (transfer) a firearm to another person to transact the transfer through a dealer and provide the dealer with certain information. B. It specifies the background checks that a dealer must complete prior to the transaction. It permits a dealer to refuse to transact a firearm transfer. It requires a dealer to abort the transaction in other instances. It specifies requirements for a dealer who refuses to transact or aborts a firearm transfer. It makes a dealer immune from civil liability and damages in certain instances. C. It makes the offenses of firearm transfer fraud and the unlawful transfer of a firearm Level 6 felonies. It enhances both offenses in particular instances. It specifies exceptions and defenses. D. It requires a retail dealer to display a sign with language stating that failing to secure a firearm against unauthorized access poses a safety risk to children. E. It prohibits a licensed importer, licensed manufacturer, licensed dealer, or licensed collector from selling or delivering a: (1) firearm that is not a handgun to a person who is less than 21 years of age; or (2) semiautomatic assault weapon. It defines terms. Effective Date: July 1, 2024. Explanation of State Expenditures: New Felonies for Firearm Transfer Fraud and the Unlawful Transfer of a Firearm – This bill creates new felonies to regulate the transfer of firearms. Any increase in DOC’s offender population is expected to be minor. First, it makes it a Level 6 felony to make a materially false statement to a firearms dealer when completing SB 66 1 a transaction, firearm transfer fraud, and a Level 5 felony if the person has a prior unrelated conviction. It also makes a dealer transacting a sale without contacting NICS (National Instant Criminal Background Check System maintained by the Federal Bureau of Investigation) and without receiving authorization from NICS, unlawful transfer of a firearm, a Level 6 felony and a Level 5 felony for subsequent violations. A Level 5 felony is punishable by a prison term ranging from 1 to 6 years, with an advisory sentence of 3 years and a Level 6 felony is punishable by a prison term ranging from six to 30 months, with an advisory sentence of one year. The sentence depends on mitigating and aggravating circumstances. The average expenditure to house an adult offender was $28,110 annually, or $76.96 daily, in FY 2023. (This does not include the cost of new construction.) If offenders can be housed in existing facilities with no additional staff, the marginal cost for medical care, food, and clothing is approximately $4,456 annually, or $12.21 daily, per prisoner. These marginal cost estimates are based on contractual agreements with food and medical vendors and projections based on prior years for clothing and hygiene. The entire sentences of Level 5 and 6 felonies may be suspended and the person placed on either probation or community corrections. If no time is suspended, the offender can receive good time credit of 25% and educational credit time. After adjusting for credit time, the offender can be released from prison and placed on parole. Additional Information – As of October, 2023 ISP reports that there were 1,128 active firearms dealers in Indiana. Explanation of State Revenues: New Infractions – A retail dealer would be required to conspicuously post a sign in the dealer’s business warning about access to firearms by children. The first violation would be a Class C infraction and the subsequent violations would be Class A infractions. If additional court cases occur and infraction judgments and court fees are collected, revenue to the state General Fund may increase. The maximum judgment for a Class C infraction is $500 and the maximum judgment for a Class A infraction is $10,000 The total court fee revenue per case would range between $85.50 and $103. The amount of court fees deposited will vary depending on whether the case is filed in a court of record or a municipal court. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. New Felonies – If additional court cases occur and fines are collected, revenue to both the Common School Fund and the state General Fund would increase. The maximum fine for a felony is $10,000. Criminal fines are deposited in the Common School Fund. The total fee revenue per case would range between $113 and $135. The amount of court fees deposited will vary depending on whether the case is filed in a court of record or a municipal court. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. Sales Ban - The bill would reduce sales tax revenue by an indeterminable amount beginning in FY 2025. The provision does not prohibit ownership of semiautomatic assault weapons but does prohibit the sale or delivery of the items within Indiana. People wishing to purchase semiautomatic assault weapons would have to buy them out of state and remit the appropriate amount of use tax. [Sales Tax revenue is deposited in the General Fund (99.838%), Commuter Rail Service Fund (0.131%), and Industrial Rail Service Fund (0.031%).] SB 66 2 Explanation of Local Expenditures: New Felonies – If more defendants are detained in county jails prior to their court hearings, local expenditures for jail operations may increase. The average cost per day is approximately $64.53 based on the per diem payments reported by U.S. Marshals to house federal prisoners in 11 county jails across Indiana during CY 2021. Explanation of Local Revenues: New Infractions – If additional court actions occur and a judgement is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the county will receive $33.90 and qualifying municipalities will receive a share of $2.10. If the case is filed in a municipal court, the county receives $20, and the municipality will receive $33.50. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. New Felonies – If additional court actions occur and a guilty verdict is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. State Agencies Affected: Department of Correction. Local Agencies Affected: Trial courts, local law enforcement agencies. Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual; Department of Correction; U.S. Department of Justice Marshals Service; Indiana State Police Fiscal Analyst: Mark Goodpaster, 317-232-9852. SB 66 3