The Legislative Budget Board (LBB) does not anticipate a significant fiscal impact on the state government as a result of SB 1362. The bill primarily restricts the enforcement of Extreme Risk Protective Orders (ERPOs) and prohibits state and local entities from accepting federal grants specifically designated for ERPO-related initiatives.

One notable potential financial consequence is the loss of federal grant funding. In fiscal year 2024, Texas received $26.8 million in federal funds from the Edward Byrne Justice Assistance Grant Program and the Byrne State Crisis Intervention Program. While these funds are not currently required to be used for ERPO-related activities, should the federal government mandate such a requirement in the future, Texas would have to forfeit this funding under SB 1362. However, at present, Texas utilizes these funds for a broad range of criminal justice programs, meaning the loss would depend on future federal policy changes rather than immediate enforcement.

Regarding state correctional resources, the bill establishes a state jail felony for individuals who attempt to enforce or serve an ERPO unless explicitly authorized by Texas law. However, the LBB assumes that the number of such offenses will be low, and therefore, any additional burden on correctional facilities will be minimal.

For local governments, any fiscal impact would be contingent on the number of offenses committed and the associated court costs for prosecution, supervision, or confinement. The Comptroller of Public Accounts was unable to estimate the total amount of federal funding that local entities might lose due to the bill's restrictions on accepting ERPO-related federal grants.

The Anti-Red Flag Act (SB 1362) is a strong reaffirmation of constitutional rights, particularly those protected under the Second Amendment and due process provisions. The bill prohibits the enforcement, service, or recognition of Extreme Risk Protective Orders (ERPOs) in Texas, ensuring that no state or local agency can implement these firearm restrictions unless explicitly authorized under Texas law. Additionally, SB 1362 prohibits Texas from accepting federal grants intended for ERPO enforcement and creates a state jail felony offense for any official attempting to enforce such orders.

From a liberty-focused policy perspective, SB 1362 is a strong protection of individual rights and limited government. It prevents firearm confiscation without a criminal conviction, reinforcing private property rights and due process protections. The bill aligns with the Republican and Libertarian Party platforms, both of which oppose red flag laws as unconstitutional infringements on gun rights and due process​. However, it conflicts with the Texas Democratic Party's position, which supports ERPOs as a tool for reducing gun violence.

Texas Policy Research recommends that lawmakers vote YES on SB 1362. It upholds individual liberty, private property rights, and limited government, making it a principled rejection of ERPOs in Texas.

• HB 162 (Same As)