BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 711 (Rendon) - Hunting: nonlead ammunition. Amended: June 12, 2013 Policy Vote: NR&W 7-2 Urgency: No Mandate: Yes (see staff comments) Hearing Date: June 24, 2013 Consultant: Marie Liu This bill may meet the criteria for referral to the Suspense File. Bill Summary: AB 711 would require the use of nonlead ammunition when hunting all wildlife in the state. Fiscal Impact: Ongoing costs of $45,000 from the Fish and Game Preservation Fund (special) for the Fish and Game Commission (commission) to update regulations annually on the list of certified ammunition and related education materials. Likely minor impacts to enforcement costs. Increased cost pressures for program to supply hunters with nonlead ammunition at a no or reduced costs Unknown revenues losses to the Fish and Game Preservation Fund from reduced hunting license sales. Unknown sales tax impacts to the General Fund from ammunition sales. Background: Existing federal regulations prohibit the use of lead shells for waterfowl hunting. The Ridley-Tree Condor Preservation Act (act), requires the use of nonlead centerfire rifle and pistol ammunition when taking big game or coyotes in specified deer hunting zones in the California condor range. The commission is required to certify nonlead ammunition in its regulations and to update the list of certified ammunition annually. The act also requires the commission, to the extent funding is available, to establish a process that will provide hunters with nonlead ammunition at no or reduced cost. At this time, no such process has been adopted, nor has funding been made available for this purpose. AB 711 (Rendon) PageA Proposed Law: This bill would expand the requirement to use nonleaded ammunition to all hunting within the state. The commission would be required to develop regulations by July 1, 2015 that phase in this requirement completely by January 1, 2018. This requirement would not apply to government officials when carrying out their mandatory statutory duties. Related Legislation: AB 821 (Nava) Chapter 520/2007 established the Ridley-Tree Condor Preservation Act. Staff Comments: The commission under existing law is already required to certify nonleaded centerfire rifle and pistol ammunition and to update its regulations accordingly annually. This bill would expand the types of nonleaded ammunition that the commission must consider for certification at a cost of up to $45,000 annually. This amount includes the costs to notify hunting license holders and provide public education regarding the regulation. Wardens are enforcing the existing nonleaded ammunition requirements with visual inspections of ammunition and have technology to detect lead in certain types of ammunition. This bill is unlikely to pose additional enforcement costs as the wardens can expand this current enforcement process to all areas of the state. DFW notes that enforcement of the existing law and this bill could be enhanced, increasing the confiscation of bullets and increasing requests for ballistic analysis by the Department of Justice. Staff believes such increased enforcement is unlikely and is not required or implied by the bill. Existing law directs DFW to offer reduced or no cost nonleaded ammunition to hunters, provided there is funding available, presumably to offset the difference in cost of leaded and nonleaded ammunition when AB 821 was passed. As no funding has ever been provided, no such program exists. However, should it ever be enacted, this bill would add additional cost pressures to the program since hunters statewide would be interested in receiving reduced cost nonleaded ammunition instead of just those who hunt in the condor range or those who hunt waterfowl. The cost pressure on this program is unknown as there are no parameters for the program. There is the potential for this bill to impact the sale of AB 711 (Rendon) PageB hunting licenses. Since the passage of the Condor Protection Act, the sales of deer tags in California have not declined. However, staff notes that the demand for deer tags and hunting licenses are impacted by a myriad of factors, so that the lack of significant change in deer tags is not necessarily an indicator of the impact of the Condor Protection Act on license sales. Should there be a decline in hunting licenses purchased, the state would lose the revenue from the hunting license fee and may potentially receive less federal funds under the Pittman-Robertson Act, which distributes funds among the states based on the number of licenses sold. The state receives approximately $10-11 million in hunting license revenue annually. The likely impact of this bill on hunting licenses is unknown. Sales tax revenue potentially can be affected by this bill to the extent that nonleaded ammunition is priced differently than leaded ammunition and to the extent that nonleaded ammunition is available for sale in the state. An article in the journal Ambio<1> did a comparison of ammunition prices available at Cabela's Inc. Website on July 25, 2012. A comparison of prices on one given day was chosen as prices can change based on market forces, volatile global metal prices, and changes in consumer preference. The author found that the price differences between nonleaded and lead-core ammunition was inconsistent across all brands of ammunition. However, for the most commonly used cartridges for hunting deer, elk, moose, and bears in North America (7mm Remington, 0.30-06, .300 Winchester, .375 H & H, and .416 Rigby) the ammunition costs were identical. It is unknown how ammunition sales may be affected by this bill, but staff believes that the findings of the Ambio article suggest that the likely impact is minimal. For reference purposes, every 10% reduction in annual ammunition sales, annual sales tax revenue could decline by approximately $3.6 million General Fund (based on a General Fund rate of 3.9375%). In regards to the availability of nonleaded ammunition, opponents contend that nonleaded ammunition could be banned by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) as armor piercing ammunition. The ATF regulations on armor piercing ammunition ban the use of certain metals in ammunition. However the regulations also specify that it is not intended to --------------------------- <1> Thomas, V. G. January 4, 2012. Lead-Free Hunting Rifle Ammunition: Product Availability, Price, Effectiveness, and Role in Global Wildlife Conservation. Ambio. AB 711 (Rendon) PageC impact ammunition used primarily for sporting purposes, such as hunting. At this time, the ATF has not granted any waivers for nonleaded ammunition designed for hunting that use banned metals despite multiple active waiver requests from the manufactures. However, the supporters of the bill have also noted that the ATF has not taken enforcement actions against the sale of existing nonleaded ammunition. Staff also confirmed the availability of four calibers of nonleaded ammunition that are certified by DFW in a phone call with one manufacturer. Staff notes that there is widespread limited availability of ammunition currently due to issues outside this bill. If ATF waivers are not issued and ATF begins to take enforcement action against the sale of some nonleaded ammunition, there could be a dramatic reduction in ammunition sales and hunting license sales. The likelihood of this scenario is uncertain although staff believes it is likely that ATF will not take any actions in the near future on waivers or enforcement. This bill creates a local mandate because it creates a new crime or infraction. However, this is not a reimbursable state mandate.