BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1995 (Gaines)
          
          Hearing Date:  06/28/2008           Amended: 06/15/2010
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 7-0














































          AB 1995 (Gaines), Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 1995 requires the Department of Fish and Game  
          to sell replacements for lost stamps or endorsements purchased  
          through the Automated License Data System for $3.00 per stamp or  
          endorsement.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Revenue losses         Up to $50 per year               Special  
          *                                             
          * Fish and Game Preservation Fund.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          Under current law, individuals must possess a hunting or fishing  
          license to take fish or game in the state. In addition to the  
          base fishing or hunting license, current law often required  
          hunters or anglers to purchase an additional stamp which allows  
          him or her to take certain species. Hunting licenses cost  
          between $6.25 and $137.75. Fishing licenses cost between $6.25  
          and $106.50. Stamps range in price from $2.50 to $17.25. For  
          example, a California resident who wishes to hunt for ducks must  
          purchase a Resident Hunting license ($39.25) and a Duck Stamp  
          ($17.25).

          If a person loses his hunting or fishing license, the Department  
          allows him to purchase a replacement license at a reduced cost  
          ($8.75), provided the person shows proof of the original  
          purchase or signs an affidavit attesting to the original  
          purchase. However, the Department does not sell replacement  
          stamps. Thus, a person who has lost a hunting or fishing license  
          must purchase new stamps at full cost.

          Currently, the Department sells licenses and endorsements  
          directly to the public or through licenses agents (e.g. sporting  
          goods stores), using a paper based system. For several years,  
          the Department has been developing the Automated License Data  
          System, which will use specially designed kiosks to issue  
          licenses and endorsements, and retain information on the  
          licenses and endorsements a hunter or angler has purchased.  







          AB 1995 (Gaines), Page 2


          ("Endorsement" is the Department's term for a stamp that is  
          issued through the Automated License Data System and would be  
          printed directly onto the license.)

          AB 1995 provides that if a hunter or angler loses a license  
          purchased through the Automated License Data System, any  
          replacement stamps or endorsements can be purchased for $3.00  
          (to be indexed for inflation).

          By requiring the Department to sell replacement stamps and  
          endorsements for $3.00, the bill will reduce revenues (since  
          $3.00 is generally less than the cost of a stamp or  
          endorsement). Under the current paper-based system of issuing  
          licenses, the Department does not track how many stamps or  
          endorsements have been sold as replacements. Based on the number  
          of replacement licenses sold in 2009, staff estimates that the  
          Department generated about $70,000 in revenues from the sale of  
          stamps purchased to replace previously purchased stamps.  
          Reducing the cost of these replacement stamps and endorsements  
          will likely cause revenue losses of up to $50,000 per year.

          Staff notes, however, that the implementation of the Automated  
          License Data System should reduce the Department's  
          administrative costs to issue licenses, stamps, and  
          endorsements, including replacements. Thus the administrative  
          burden to the Department to issue a replacement stamp or  
          endorsement should be considerably less.