BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1081 (Morrell) - Hunting and sport fishing: free and reduced license fees: veterans ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 28, 2016 |Policy Vote: N.R. & W. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: April 11, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1081 would require the Department of Fish and Wildlife (DFW) to issue free or reduced-cost hunting and sport fishing licenses, as well as other hunting and fishing tags, validations, report cards, and other entitlements, to veterans of the US Armed Forces, as specified. Fiscal Impact: Estimated annual loss of approximately $3 million (Fish and Game Preservation Fund) related to provisions that provide free or reduced-cost hunting and sport fishing licenses to honorably discharged veterans, disabled veterans, and SB 1081 (Morrell) Page 1 of ? recovering service members. (see staff comments) Estimated annual revenue losses of approximately $500,000 (various special funds) related to provisions that provide free or reduced-cost hunting and fishing tags, validations, report cards, and other entitlements. (see staff comments) DFW administrative costs of approximately $226,000 in first year costs and approximately $385,000 in second year costs (Fish and Game Preservation Fund) for additional staff time necessary to verify veteran status. Ongoing costs are not expected to be significant since veteran status verification will only be necessary for the initial licensure period. Background: Under current law, DFW is responsible for managing hunting and sport fishing within the state. Current law requires DFW to issue hunting licenses to take birds or mammals and a sport fishing license to take fish, mollusks, crustaceans, invertebrates, reptiles, or amphibians in the state. In many cases, the license is the minimum level of certification a hunter or angler needs to take an animal, but additional tags, stamps, validations, and report cards are required for certain big game, birds, and aquatic animal species from specified areas. Currently, annual hunting and sport fishing licenses each cost $47.01 for California residents, and nonresidents pay a fee of $163.65 for a hunting license and $126.36 for a sport fishing license. Under existing law, reduced fees for sport fishing licenses are provided to low income senior citizens, disabled veterans and recovering service members, as specified. The cost for a reduced-fee hunting or sport fishing license is currently $6.95. In addition, free sport fishing licenses are provided to low income Native Americans as well as to individuals who are blind, developmentally disabled, or mobility impaired. Hunting licenses are provided free-of-charge for specified mobility impaired individuals. Hunting tags are issued for big game animals, including bear, elk, deer, antelope, bighorn sheep, and wild pigs. Tags are also issued for bobcats. Since demand for big game hunting tags exceeds the number of animals that can be killed sustainably each year, most hunting tags are given out through a drawing. Applying for an animal-specific tag drawing costs between $5.97 SB 1081 (Morrell) Page 2 of ? and $38.62. The tags themselves cost between $22.42 and $445.35. Furthermore, taking ducks and some upland game birds requires a separate validation ($20.52 and $9.46, respectively). In addition to a sport fishing license, CDFW requires a report card for certain aquatic animals including abalone, sturgeon, North Coast salmon, steelhead, and spiny lobster. Report cards range from $6.22 to $22.42. Fishing with a second rod and fishing in certain ocean waters require a validation ($14.61 and $5.14, respectively). Disabled veterans and recovering service members who qualify for a reduced fee hunting or sport fishing license must pay the full price of any tags, validations, report cards, and other entitlements. Current law requires DFW to annually adjust the fees it charges for any license, tag, permit, stamp, and other entitlements by specified inflation factors. Proposed Law: SB 1081 would require DFW to issue free or reduced-cost hunting and sport fishing licenses, as well as other specified entitlements, to veterans of the US Armed Forces. Specifically, this bill would provide for the following: For all resident and nonresident honorably discharged veterans, this bill would: o Establish a flat fee of $5.00 for a hunting or sport fishing license, and specify that this fee is not subject to annual inflationary adjustments in current law. o Reduce the fee by 50 percent for a hunting tag, hunting tag drawing application, validation, sport fishing report card, stamp or other entitlement required in addition to a valid hunting or sport fishing license. For all resident and nonresident disabled veterans or recovering service members, this bill would: o Provide hunting and sport fishing license free-of-charge. o Provide free-of-charge a hunting tag, hunting tag drawing application, validation, sport fishing report card or other entitlement required in addition SB 1081 (Morrell) Page 3 of ? to a valid hunting license or sport fishing license. In addition, this bill would prohibit DFW from raising the fees on all other hunters or anglers in order to recover the cost of the benefits provided pursuant to this bill. Related Legislation: AB 1844 (Gallagher), currently pending in the Assembly Committee on Veterans Affairs, would require DFW to reduce the fees for hunting and sport fishing licenses, lifetime licenses, and any sport fishing report card, validation, or other entitlement required in addition to a sport fishing license, by 25% for California residents who are honorably-discharged veterans. The bill would also require DFW to reduce the fees for any sport fishing report card, validation, or other entitlement required in addition to a sport fishing license by 50% for disabled veterans, as specified. Staff Comments: The DFW reports that in 2015, California issued approximately 14,174 disabled veteran sport fishing licenses, which are issued on a calendar year basis. For hunting licenses, which are issued on a fiscal year basis, DFW indicates that, approximately 3,500 disabled veteran hunting licenses were issued in 2014-15. DFW also indicates that fewer than 50 recovering service member licenses have been issued each year since that program began in 2013. According to the Department of Veteran Affairs, there are approximately 1.8 million veterans living in California, with 331,645 receiving monthly disability compensation as of 2014. Veterans currently represent approximately 6.19 percent of California's adult population. This bill would allow disabled veterans and recovering service members to apply for hunting and fishing licenses, as well as any associated tags, stamps, validations, report cards, and other entitlements, free of charge. Currently this population can acquire hunting and fishing licenses for a reduced fee of $6.95, but applicants must still pay full price for any associated tags, stamps, validations, report cards, and entitlements. Based upon recent data on the number of hunting and fishing licenses issued to disabled veterans, DFW anticipates that provisions of the bill that provide enhanced benefits to disabled veterans and recovering service members would be approximately $288,000. SB 1081 (Morrell) Page 4 of ? SB 1081 would also reduce the fees that resident and nonresident honorably-discharged veterans pay for hunting and fishing licenses to a flat fee of $5, and reduce the fees for any associated tags, stamps, validations, report cards, and other entitlements by 50 percent. As noted in the background above, residents currently pay $47.01 for annual hunting and sport fishing licenses and nonresidents pay fees of $126.36 and $163.65 for fishing and hunting licenses, respectively. Using the assumption that the proportion of veterans in the adult population is the same as the proportion of veterans who purchase hunting and fishing licenses, DFW estimates that reducing licensing fees to a flat rate of $5 would result in a reduction of approximately $2.4 million in sport fishing license and $497,000 in hunting license revenues. In addition, reducing the fees for hunting and fishing tags, stamps, validations, report cards, and other entitlements by 50 percent would result in an estimated annual reductions of fishing related entitlement revenues by approximately $178,000, and hunting related entitlement revenues by approximately $167,000, respectively. The actual fiscal impacts are not quantifiable, particularly relative to provisions of the bill that provide new benefits to honorably-discharged veterans, since directly-applicable data is unavailable and behavior is difficult to predict. For instance, the author and proponents are hopeful that the bill will encourage more veterans, as well as their families and friends, to participate in hunting and fishing, which would increase sales of licenses and other entitlements, to the extent those individuals are not currently hunting or fishing in California. While increased sales may partially mitigate revenue losses, they unlikely to fully offset fiscal impacts. With respect to sport fishing licenses issued to honorably-discharged veterans, for example, DFW would need to issue over 51,000 new full-fee licenses to offset the anticipated $2.4 million in revenue losses. The above estimates also cannot account for instances in which veterans who may currently purchase short-term one- or two-day resident or ten-day nonresident licenses (at a cost of $15.12, $23.50, and $47.01, respectively) opt to purchase the annual $5 license, which would exacerbate losses. In addition, the conditions surrounding big game hunting tag demand and the lottery system make those revenue impacts impossible to quantify. SB 1081 (Morrell) Page 5 of ? SB 1081 prohibits the DFW from increasing the fees for hunting and fishing licenses tags, validations, report cards, and other entitlements sold to nonveterans to offset any revenue losses resulting from the sales of free and discounted licenses and entitlements to veterans. The bill also prohibits DFW from adjusting the flat fees charged to veterans to account for inflation. According to DFW, 17.1% percent of the department's total budget comes from sales of sport fishing and hunting licenses. Any reductions in Fish and Game Preservation Fund revenues will put negative pressure on the department's operating funds, and may create cost pressure to transfer funds from other sources. -- END --