BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1972 (Chau) - Veterans:  state park passes
          
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          |Version: May 27, 2016           |Policy Vote: N.R. & W. 8 - 0    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Narisha Bonakdar    |
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          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.








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          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).










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          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  








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          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  








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          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.  





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