BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1972 (Chau) - Veterans: state park passes ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 27, 2016 |Policy Vote: N.R. & W. 8 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1972 strikes the current restriction limiting eligibility to receive a free park pass, known as the Distinguished Veteran Pass (pass), to veterans of a war who meet specified criteria, thus extending eligibility for the pass to any veteran who has a 50 percent or greater service-connected disability. Fiscal Impact: Unknown, but significant revenue loss, likely in the low millions annually, to the California Department of Parks and Recreation (CDPR). (See staff comments) Background: California State Parks. The California State Park system consists of 280 state parks, state natural reserves, state historic monuments, state beaches, and other units representing the state's diverse natural, cultural, recreational and historic resources. The units are managed by the CDPR. AB 1972 (Chau) Page 1 of ? Free and Reduced Licenses. Under existing law, CDPR is required to issue several free and reduced fee licenses to eligible individuals. These include the following: The Disabled Discount Pass is available to persons with permanent disabilities, as specified. This lifetime pass requires a one-time fee of $3.50, and entitles its bearer to a 50 percent discount for vehicle day use, family camping, and boat use fees. The Golden Bear Pass is available to individuals receiving Supplemental Security Income, any person receiving aid under the applicable aid codes in the CalWORKS Program, or any person 62 years of age or older with income limitations. This reduced-fee ($5) pass permits free entry into most California State Parks where vehicle day use fees are collected. The Distinguished Veteran Pass is available to honorably discharged war-time veterans, as defined, who are residents of California and submit proof that they have a 50% or greater service-connected disability, were a prisoner of war, or received a Medal of Honor. The free park pass entitles the holder to use all the basic facilities, including day use, camping and boating, at no charge. CDPR is also authorized to provide free or reduced-fee day use access to state parks on Memorial Day or Veterans Day to veterans and active duty or reserve military personnel for the United States Armed Forces or the National Guard. Veterans Passes. CDPR has issued a total of 39,047 Distinguished Veterans passes since they were created in statute in 1979. While applications may fluctuate significantly throughout the history of the pass, absent any significant expansion of the eligible population, the number of passes issued has increased significantly (on average 19 percent per year). AB 1972 (Chau) Page 2 of ? Peace v. wartime. The State uses federal classification of peace and wartimes. Under current law, US Veteran's Affairs recognizes the following wartime periods to determine eligibility for VA Pension benefits: Mexican Border Period (May 9, 1916 - April 5, 1917 for Veterans who served in Mexico, on its borders, or adjacent waters) World War I (April 6, 1917 - November 11, 1918) World War II (December 7, 1941 - December 31, 1946) Korean conflict (June 27, 1950 - January 31, 1955) Vietnam era (February 28, 1961 - May 7, 1975 for Veterans who served in the Republic of Vietnam during that period; otherwise August 5, 1964 - May 7, 1975) Gulf War (August 2, 1990 - through a future date to be set by law or Presidential Proclamation) Proposed Law: This bill: 1.Strikes the current restriction limiting eligibility to receive a Distinguished Veteran Pass to veterans of a war who have a 50 percent or greater service-connected disability. 2.Clarifies the definitions of "disability", "prisoner of war", and "veteran". 3.States legislative intent to consider alternative sources of funding for the Distinguished Veteran Pass if CDPR determines that revenue losses are significant. 4.Requires the CDPR, on or before January 1, 2019, to report the revenue losses associated with the issuance of free veterans passes in its proposed budget. Related Legislation:1) AB 1844 (Gallagher) requires the California Department of Fish and Wildlife to provide reduced-fee lifetime hunting and sport fishing licenses and cards to all Veterans of the Armed Services. AB 1844 is also pending in Senate Appropriations committee. Staff Comments: According to the Department of Veterans Affairs, as of 2014 there were 331,645 Veterans in California receiving AB 1972 (Chau) Page 3 of ? monthly disability compensation. Nationally, it is estimated that about 18% of all service-disabled Veterans are peace time Veterans. Assuming this percentage is similar at the state level and Veterans receiving compensation have at least a 50% disability, this bill would increase eligibility by about 60,000 Veterans. If half of the newly eligible Veterans obtain a pass and average usage remains the same, this would increase CDPR costs an additional $1.7 million. There are approximately 39,000 existing Distinguished Veteran pass holders. CDPR costs from online reservations for calendar year 2015 were approximately $2 million. This includes about $200,000 in camping and cancellation fees CDPR covers if the pass holder does not show for a reservation. This does not include walk-ins who are not captured separately from paying visitors, or lost revenue that would be earned if any of the Distinguished Veteran's passholders were required to purchase one of the existing day use parks passes (ranging from $50 to $195 annually) or pay daily use fees (generally $10). As of June 2016, there are approximately 39,000 existing Distinguished Veteran pass holders. CDPR costs resulting from these passes for online reservations in 2015 equaled approximately $2 million (on average $59 per person). This excludes walk-ins who are not captured separately from paying visitors, and revenue losses resulting from eligible veterans not being required to purchase on of CDPR's existing day use passes (valued at up to $195 per year). CDPR also estimates an approximate cost of $15.66 per person in administrative costs, making per person cost total about $74. If 6,000 (10 percent of the newly eligible population) participates in the program, CDPR's costs would equal $447,960 annually. Staff notes that's approximately 12 percent of the eligible population currently has a pass, and that, absent a significant increase in the eligible populations the issuance of Distinguished Veterans passes has increased by approximately 12 percent each year. This bill provides unique benefits to one population over others that might be equally deserving of these benefits. This disparate treatment creates pressure to provide similar benefits AB 1972 (Chau) Page 4 of ? to additional populations to resolve the disparity. It may also create pressure to expand the benefits offered to this population. As such, staff notes that this bill may result in significant cost pressures on state resources in addition to the costs outlined in the fiscal impact statement. -- END --