LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 6975 NOTE PREPARED: Jan 1, 2025 BILL NUMBER: SB 247 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: Dealer Transaction Requirements: This bill 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. Dealer Background Checks: It also specifies the background checks that a dealer must complete prior to the transaction and permits a dealer to refuse to transact a firearm transfer. The bill requires a dealer to abort the transaction in other instances and specifies requirements for a dealer who refuses to transact or aborts a firearm transfer. The bill also makes a dealer immune from civil liability and damages in certain instances. Firearm Transaction Fraud: This bill makes the offenses of firearm transfer fraud and the unlawful transfer of a firearm Level 6 felonies and enhances both offenses in particular instances and specifies exceptions and a defense. Children and Gun-Safety: It also 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. Banned Firearm Sales: The bill 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 also defines terms. Effective Date: July 1, 2025. Explanation of State Expenditures: Dealer Background Checks: This bill requires firearm dealers to perform a background check through the National Instant Criminal Background Check System for the purpose of completing a firearm transaction. A dealer who refuses to do so commits a Level 6 felony, and a Level 5 felony if it is a repeated offense. Firearm Transaction Fraud: This bill makes giving a false statement to a dealer for the purpose of completing a firearm transaction a Level 6 felony, and a Level 5 felony if it is a repeated offense. SB 247 1 A Level 6 felony is punishable by a prison term ranging from 6 to 30 months, with an advisory sentence of 1 year. A Level 5 felony is punishable by a prison term ranging from 1 to 6 years, with an advisory sentence of 3 years. The sentence depends on mitigating and aggravating circumstances. Assuming offenders can be housed in existing facilities with no additional staff, the marginal cost for medical care, food, and clothing is approximately $4,719 annually, or $12.93 daily, per prisoner. However, any additional expenditures are likely to be small. Explanation of State Revenues: Children and Gun-Safety: This bill makes a firearm dealer refusing to display the required sign a Class C infraction. It becomes a Class A infraction if the dealer has a prior, unrelated violation. 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 judgement for a Class A infraction is $10,000. These funds would be deposited in the state General Fund. 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. Dealer Background Checks & Firearm Transaction Fraud: If additional court cases occur and fines are collected, revenue to both the Common School Fund (from criminal fines) and the state General Fund (from court fees) would increase. The maximum fine for a Level 6 and Level 5 felony is $10,000. The total fee revenue per case would range between $113 and $138. 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. Explanation of Local Expenditures: Dealer Background Checks & Firearm Transaction Fraud: If more defendants are detained in county jails prior to their court hearings, local expenditures for jail operations may increase. However, any additional expenditures would likely be small. Explanation of Local Revenues: If additional court actions occur and a judgement is entered, more revenue will be collected by certain local units. Children and Gun-Safety: 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. Dealer Background Checks & Firearm Transaction Fraud: 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. Fiscal Analyst: Abdulrahman Abdulkadri, 317-232-9852. SB 247 2