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
          
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          |Version: March 28, 2016         |Policy Vote: N.R. & W. 9 - 0    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 11, 2016    |Consultant: Mark McKenzie       |
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          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  








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            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  







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          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  







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                    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.







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          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.







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          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.


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