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CBO H.R. 2811 Cost Estimate

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Posted by: jeffb at Wed Jan 27 10:52:15 2010   [ Email Message ] [ Show All Posts by jeffb ]  
   

CONGRESSIONAL BUDGET OFFICE

COST ESTIMATE

October 9, 2009

H.R. 2811



A bill to amend title 18, United States Code, to include constrictor snakes of the species Python genera as an injurious animal As ordered reported by the House Committee on the Judiciary on July 29, 2009



CBO estimates that implementing H.R. 2811 would have no significant cost to the federal government. Enacting the bill could affect direct spending and revenues, but CBO estimates that any such effects would not be significant.



H.R. 2811 would make it a federal crime to import or ship certain snakes into the United States. Because the bill would establish a new offense, the government would be able to pursue cases that it otherwise would not be able to prosecute. We expect that H.R. 2811 would apply to a relatively small number of offenders, so any increase in costs for law enforcement, court proceedings, or prison operations would not be significant. Any such costs would be subject to the availability of appropriated funds.



Because those prosecuted and convicted under H.R. 2811 could be subject to criminal fines, the federal government might collect additional fines if the legislation is enacted. Criminal fines are recorded as revenues, deposited in the Crime Victims Fund, and later spent. CBO expects that any additional revenues and direct spending would not be significant because of the small number of cases likely to be affected.



Under H.R. 2811, entities such as zoos would need permits to import or transport the affected species of snakes. Based on information provided by the U.S. Fish and Wildlife Service (USFWS), which issues permits for such activities, CBO estimates that enacting the bill could result in an increase in offsetting collections (for permits) and associated spending. We estimate that such increases would be minimal, however, and would offset each other in most years, resulting in no significant net cost.



By prohibiting the importation and interstate transport of certain snakes without a permit, the bill would impose intergovernmental and private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA).



The cost to public and private entities eligible for permits, such as zoos or research centers, would be the expense of obtaining those permits. (USFWS regulations prohibit the agency from charging permit fees to state, local, or tribal entities. Fees for private entities would be $25 or $100 depending on the activity being authorized.) The cost of the mandate to those ineligible for a permit, including private importers, breeders, retailers, shippers, and owners of those snakes, would be the forgone net income from no longer being able to sell or transport the animals across state lines. (According to the USFWS, exportation of the animals would be allowed only from coastal or border states.)



Based on information about the cost of permits from the USFWS, and information gathered from industry professionals about the value of shipments, sales, and imports of snakes, CBO estimates that the costs of the mandates would fall below the annual thresholds established in UMRA for intergovernmental and private-sector mandates ($69 million and $139 million in 2009, respectively, adjusted annually for inflation).



The CBO staff contacts for this estimate are Mark Grabowicz (for costs to the federal justice system), Deborah Reis (for USFWS), Melissa Merrell (for the impact on state, local, and tribal governments), and Marin Randall (for the impact on the private sector). The estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis.


   

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