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: August 30, 2013                     Consultant:  
          Marie Liu     
          
          SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          

          Bill Summary: AB 711 would require the use of nonlead ammunition  
          when hunting all wildlife in the state. 

          Fiscal Impact (as proposed to be amended): 
              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

          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.

          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.









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          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  
          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  









          AB 711 (Rendon)
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          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  
          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  


          ---------------------------
          <1> Thomas, V. G. January 4, 2012. Lead-Free Hunting Rifle  
          Ammunition: Product Availability, Price, Effectiveness, and Role  
          in Global Wildlife Conservation. Ambio. 








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          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.

          Proposed Author Amendments: Amend to delay the implementation  
          date to 2019, to preserve the existing ban on the use of leaded  
          ammunition in the California condor range, and to require the  
          temporary suspension of the leaded ammunition prohibition for a  
          specific hunting season and caliber upon a finding by the  
          director of DFW that nonleaded ammunition of that caliber is not  
          commercially available from any manufacturer because of federal  
          prohibitions related to armor-piercing ammunition.