BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 2105                   HEARING DATE: June 10, 2014  
          AUTHOR: Frazier                    URGENCY: No  
          VERSION: April 2, 2014             CONSULTANT: Toni Lee 
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Big game mammals: bighorn sheep.
          
          BACKGROUND AND EXISTING LAW
          Existing law defines "taking" as hunting, pursuing, catching,  
          capturing, killing, or attempting to accomplish those actions  
          (Fish and Game Code (FGC) §86). The taking or possessing of  
          fully protected mammals or parts thereof is prohibited (FGC  
          §4700). While the list of fully protected mammals generally  
          includes bighorn sheep (Ovis canadensis), the Nelson (also  
          referred to as the desert bighorn) subspecies (Ovis canadensis  
          nelsoni) may be taken under specified circumstances (FGC  
          §4902(b), Ch. 745, Stats. 1986). 

          California is home to two distinct subspecies of bighorn sheep:  
          the Sierra Nevada (Ovis canadensis sierrae) and the Nelson.  
          Nelson bighorns are charismatic mammalian megafauna found in the  
          dry desert mountains of southeastern California. Due to  
          conservation measures initiated in the 1960s, total Nelson  
          bighorn populations doubled to about 4,000 individuals by 1993  
          (the historical number of bighorn sheep is unknown). Conversely,  
          the peninsular population of Nelson bighorns has experienced  
          declines. Because peninsular Nelson and Sierra Nevada bighorns  
          are protected under both the federal and state Endangered  
          Species Acts, only a certain portion of the Nelson subspecies is  
          available for taking. 

          Exiting law grants the Department of Fish and Wildlife (DFW)  
          authority to issue for a fee a certain number of tags specified  
          by the California Fish and Game Commission (CFGC) that serve as  
          a license to take a game animal including pronghorn antelope  
          (FGC §331 et seq.), elk (FGC §332 et seq.), mule deer (FGC §4330  
          et seq.), and Nelson bighorn sheep (FGC §4902 et seq.). DFW and  
          CFGC are required to analyze all fees for tags every five years  
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          and recommend to the Legislature adjustments to reflect  
          inflation (FGC §713). Fees are deposited into the Big Game  
          Management Account (BGMA) within the Fish and Game Preservation  
          Fund (FGPF), unless otherwise provided. 

          The process for obtaining a big game tag differs depending on  
          the species and type of tag. An individual may acquire up to two  
          deer tags per year through outright purchase or through entering  
          drawings for special tags. Antelope, elk, and bighorn sheep tags  
          are primarily allocated via a drawing system and purchased for a  
          set amount. In addition, CFGC must direct DFW to annually  
          reserve a specified amount of deer, antelope, elk, and bighorn  
          sheep game tags for fundraising auctions that are often executed  
          through nonprofit conservation groups supporting the interests  
          of hunters. Statute limits the number of available auction tags  
          for antelope, elk, deer, and bighorn sheep to a maximum of 1% of  
          total available tags, 3, 10, and 3 tags respectively. The actual  
          number issued depends on conservation status of each species.  
          Each fall, DFW requests proposals from interested conservation  
          nonprofit organizations to auction these tags. Auction tags are  
          not subject to fee limits and have typically sold for around  
          $50,000-100,000 per bighorn sheep tag or $5,000-20,000 for other  
          tags. During the most recent auction period, a coveted bighorn  
          tag sold for $170,000. 

          License fees available from non-government agents include a 5%  
          license agent handing fee levied on the base fee. In addition,  
          license fees also include a 3% nonrefundable application fee  
          ($7.50 maximum per item) on the base fee. 2014 base tag prices  
          are: 
           ------------------------------------------------------------------ 
          |   Animal   |         Resident         |       Nonresident        |
          |------------+--------------------------+--------------------------|
          |  Antelope  |         $136.75          |         $424.00          |
          |------------+--------------------------+--------------------------|
          |    Elk     |         $411.50          |        $1,272.50         |
          |------------+--------------------------+--------------------------|
          |    Deer    |   $24 (first), $31.25    | $248.50 (first), $248.50 |
          |            |         (second)         |         (second)         |
          |------------+--------------------------+--------------------------|
          |  Bighorn   |         $388.00          |$500                      |
          |   Sheep    |                          |                          |
           ------------------------------------------------------------------ 
          With the exception of bighorn sheep tag fees, all of the above  
          values are adjusted for inflation. In other states, prices for  
          resident and nonresident bighorn sheep tags range from $30-$513  
          and $507.50-$3,180, respectively. 
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          The total number of tags purchased for 2013 are: 
           ------------------------------------------------------------------ 
          |   Animal   |         Resident         |       Nonresident        |
          |------------+--------------------------+--------------------------|
          |  Antelope  |           199            |            0             |
          |------------+--------------------------+--------------------------|
          |    Elk     |           410            |            4             |
          |------------+--------------------------+--------------------------|
          |    Deer    | 143,697 (first), 40,172  | 946 (first), 56 (second) |
          |            |         (second)         |                          |
          |------------+--------------------------+--------------------------|
          |  Bighorn   |            18            |4                         |
          |   Sheep    |                          |                          |
           ------------------------------------------------------------------ 

          Although populations of antelope, elk, and deer have somewhat  
          increased since the Gold Rush (1848-1855), current numbers are  
          far lower than historical values. For example, deer populations  
          peaked in the 1960s at 700,000-1,000,000 individuals and have  
          since slowly declined. DFW scientists attribute this trend to  
          long-term habitat degradation.

          In 2012, SB 1166 (Berryhill) contained nearly identical language  
          allowing nonprofits to recoup their costs or up to 10% of the  
          sale price. DFW opposed this legislation due to concerns that  
          federal entities might see this retention as a diversion of  
          funds, placing $10 million in federal funding in jeopardy. The  
          bill was amended against the wishes of the author to change the  
          vendor fee to a flat 2% in the Assembly Appropriations  
          Committee.

          PROPOSED LAW
          This bill:
          1.Makes various legislative findings and declarations related to  
            wildlife-dependent recreation.
          2.Authorizes a nonprofit organization selling fundraising tags  
            designated by DFW to assist in the sale of big game auction  
            tags to retain 5% of the sale price of each tag and applicable  
            credit card fees as a reasonable vendor fee. 
          3.Requires the nonprofit organization to send DFW within 30 days  
            of the tag sale date:
                 A check for 95% of the total auction sale price
                 An itemized receipt showing the tag sale price and the  
               5% reduction and credit card fees retained as a vendor fee
          1.Sets the fee for a Nelson bighorn ram tag at $400 for  
            residents and $1,500 for nonresidents, adjusted annually to  
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            reflect changes in the Implicit Price Deflator. 

          ARGUMENTS IN SUPPORT
          The California Chapter of the Wild Sheep Foundation (CA WSF)  
          state that the price of a non-resident sheep tag has been set in  
          statute at $500 and has not been allowed to increase with  
          inflation or demand since 1986. This bill would "bring the cost  
          of a non-resident sheep tag current with inflation, in-line with  
          the cost of similar non-resident sheep tags in other states, and  
          allow it to adjust annually with inflation and demand." In  
          addition, CA WSF asserts that DFW looks to hunting-related  
          nonprofit conservation organizations to partner in the sale of  
          tags within the community having the greatest interest to  
          generate the absolute highest return. Rising costs of this  
          partnership are an increasing disincentive for these nonprofits  
          to partner with DFW. 

          The California Sportsman's Lobby, Outdoor Sportsmen's Coalition  
          of California, and Safari Club International (SCI) argue that  
          allowing a non-profit organization selling a deer, elk,  
          antelope, or bighorn sheep fundraising tag to keep 5% of the  
          sales price as a vendor fee, plus credit card costs, is  
          "appropriate." They contend that, "the ability to recover tag  
          sales overhead costs will encourage more qualified SCI chapters  
          to participate in this fundraising program for the department  
          and to expend a maximum effort to realize the most revenue  
          possible." 

          ARGUMENTS IN OPPOSITION
          The Public Interest Coalition argues that this bill will wrongly  
          reduce California government's revenue streams with sales  
          commissions and fees. If private vendors sell tags, then  
          commissions and applicable credit card fees must be added to the  
          final cost to ensure no net loss in fees to the state. The  
          coalition also questions the findings and declarations, stating  
          that they rely on a suspect survey that was coordinated by the  
          U.S. Fish and Wildlife Service, but was requested by the  
          Association of Fish and Wildlife Agencies, rendering the results  
          biased. In addition, they note that the percentage of  
          Californians purchasing hunting licenses and tags is less than  
          1%. 

          COMMENTS 
          1.The 5% vendor fee is unrelated to the cost of the auction.  
            Because tags are often auctioned at events serving multiple  
            purposes, the financial impact on nonprofit organizations  
            remains unclear. The Assembly Appropriations Committee  
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            analysis of SB 1166 from 2012 notes that non-profit vendors  
            were willingly selling the tags, often at events requiring an  
            admission fee. A system wherein DFW reimburses non-profits for  
            their actual expenses may be more prudent, but practically  
            difficult.

          2.It is not clear whether the 5% vendor fee would be calculated  
            before or after deducting any credit card fees. An amendment  
            is needed to specify that credit card fees will be deducted  
            from the sale price before calculating the 5% vendor fee. 

          3.In an opposition letter to SB 1166 from 2012, DFW recommended  
            reducing the 10% vendor fee to 5%. Allowing nonprofits to  
            retain credit card fees would potentially increase this  
            percentage above 5%. For example, assuming the current 1.51%  
            Visa processing fee plus a base of $0.10 applies, the recent  
            $170,000 bighorn sheep tag sale would allow the nonprofit  
            organization to retain about $2,600 in credit card fees plus  
            about $8,400 in vendor fees (assuming credit card fees are  
            deducted before calculating the vendor fee). 

          4.As of 2012, Alaska, Colorado, Idaho, Montana, Nebraska, New  
            Mexico, Oregon, Texas, Utah, Washington, Wyoming, numerous  
            Native American Nations, and several areas in Canada and  
            Mexico allow nonprofits to retain 5-25% of the tag sale price.  
            States that do not allow nonprofits to retain any portion of  
            big game animal fundraising auction proceeds include Arizona,  
            Nevada, and New Mexico. 

          5.Several of the legislative findings require amendments to  
            improve accuracy and formatting. For example, the legislative  
            finding in Section 1(b)(3) of the bill erroneously states that  
            wildlife viewers spent $45.7 billion dollars in 2011 (the  
            actual amount was $55 billion). 

          6.This bill requires nonprofits to send money to DFW,  
            specifically by check. The reasoning behind this specificity  
            is unclear and the committee may wish to delete this  
            requirement. 

          7.Currently, Alaska allows nonprofits to retain 10% of an  
            auction game tag as a vendor fee. HB 161, a 2013 bill that  
            would have increased this value to 100%, but was amended down  
            to 30%, has already passed through the Alaskan legislature and  
            is awaiting approval from the governor. The sponsors of that  
            bill argue that increasing the vendor fee is necessary to  
            encourage nonprofits to participate in the auction process.  
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            Should interested parties continue to advocate for  
            increasingly high vendor fee percentages, the legislature may  
            choose to reevaluate the benefits of the fundraising game tag  
            auction.

          8.California's pronghorn antelope historically exceeded 500,000  
            individuals and ranged throughout the Central Valley. Today  
            4,000 individuals these animals remain and are found in the  
            northeastern corner of the state. California's three elk  
            subspecies historically occupied much of the central and  
            northern parts of the state with populations of tule elk  
            estimated at 500,000 individuals. Due to the expansion of  
            settlements, the Roosevelt and Rocky Mountain elk range has  
            diminished to the northern areas of the state (estimates of  
            6,500 and 1,500-2,000 individuals, respectively), while the  
            tule elk is now isolated within small pockets in the Coast  
            Mountain Ranges with 4,000 individuals statewide. 

          SUGGESTED AMENDMENTS

          AMENDMENT 1
          In the legislative findings, delete paragraphs 5, 6, 7, 8, and  
          17 and make minor changes to paragraphs 3, 4, 10, 11, 13, 14,  
          15, and 19 to improve the accuracy of these statements. 

          AMENDMENT 2
          In the legislative findings beginning with paragraph 4, change  
          all paragraphs to subsections. 

          AMENDMENT 3
          In FGC §3953(b) strike out the phrase "a check for," delete all  
          text after "sale price of the tag," and insert, "less any  
          applicable credit card fees with an itemized receipt showing the  
          sale price and the 5-percent reduction and any reimbursement for  
          credit card fees retained by the nonprofit organization as a  
          vendor's fee."
          
          SUPPORT
          California Chapter of the Wild Sheep Foundation (Sponsor)
          Black Brant Group
          California Deer Association
          California Sportsman's Lobby
          California Waterfowl Association
          Gaines & Associates
          Mule Deer Foundation
          Outdoor Sportsmen's Coalition of California
          Safari Club International
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          OPPOSITION
          Public Interest Coalition












































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