BILL ANALYSIS                                                                                                                                                                                                              1






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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 904                    HEARING DATE: March 23, 2010   

          AUTHOR: Hollingsworth              URGENCY: No  
          VERSION: As Introduced             CONSULTANT: Bill Craven
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Hunting: commercial hunting clubs.  
          
          BACKGROUND AND EXISTING LAW
          SB 904 would revisit the law pertaining to commercial hunting  
          clubs and the license fees paid by these entities to the  
          Department of Fish and Game (DFG). 

          Historically, the fee for commercial hunting club licenses was  
          $165 annually. In 2006, SB 1200 (Hollingsworth) was chaptered  
          and it authorized landowners who established commercial hunting  
          clubs on multiple parcels to submit one application for the  
          aggregated properties, although a separate fee would be assessed  
          for each club.  (It should be noted that Senator Hollingsworth  
          objected to the provision about separate fees that was added in  
          the Assembly.) That bill also exempted from the fee those  
          landowners who lease their lands to a club but who do not  
          participate in the club's operation. 

          In 2009, AB 1423 (Berryhill, Tom) was chaptered. It  
          substantially revised the commercial hunting club license fees  
          by establishing a graduated license fee based on the number of  
          properties used by the club. The fee schedule requires payment  
          of $200 for one property, $500 for two to five properties,  
          $1,000 for six to ten properties, and $2,000 for 11 or more  
          properties. AB 1423 defined property for these purposes as a  
          number of contiguous parcels held by an owner or combination of  
          owners and held out for a common purpose. AB 1423 added   
          exceptions to the commercial hunting club license, including  
          exemptions for lands enrolled in  conservation programs, and  
          clubs at which entrance fees are less than $200 per person and  
          whose total receipts are less than $2,000 per year.
                                                                      








          PROPOSED LAW
          This bill would eliminate the classification and license of  
          $2000 for 11 or more properties. Instead, it would create a new  
          classification for all clubs that operate 6 or more properties  
          and establish a fee for this classification of $1000. In other  
          words, the maximum fee for a commercial hunting license would be  
          $1000. 

          The bill would also prohibit the application of Sec. 713 of the  
          Fish and Game Code, a provision that applies an annual inflation  
          adjustment to many fees at the Department of Fish and Game. 

          ARGUMENTS IN SUPPORT
          The California Outdoor Heritage Alliance, a coalition of hunting  
          and fishing organizations, is in support. It states that SB 1200  
          created an unintended consequence by subjecting several hunting  
          clubs to fees amounting to several thousand dollars. COHA also  
          contends that the reduction in the maximum fee is "in line with"  
          DFG enforcement costs. 

          ARGUMENTS IN OPPOSITION
          None received 

          COMMENTS 
          1. The author does not believe that commercial hunting clubs  
          that aggregate more than 11 properties should be subject to a  
          fee double that of those who aggregate 6-10 properties. 

          Information provided by DFG notes that in 2009, it issued 72  
          licenses. It believes that 1000-1500 clubs should be licensed  
          but are not. For the last 3 years, DFG has been warning clubs  
          that they need to comply with the new fee structure established  
          in state law. 

          The department estimates that 10-20 clubs should pay $2000 fees.  
          It estimates that 20-30 clubs should pay $1000. 

          If one assumes the mid-points of both those ranges, this bill  
          would diminish fees paid to the department by approximately  
          $10,000 year without taking into account its enforcement and  
          education responsibilities or other changes in the law that  
          became effective last year. 

          As a result of the new fee structure in AB 1423, fees on single  
          properties were reduced from approximately $360 to $200 per  
                                                                      







          year. Fees on multiple properties were also reduced to what is  
          reflected in the current fee structure which eliminated separate  
          fees on all individual hunting clubs. Many large commercial  
          hunting clubs are highly successful, profitable business  
          ventures. The Committee may want to consider whether it thinks a  
          $2000 fee should be reduced in half. 

          2. The author also believes that the inflationary adjustment for  
          these fees should be eliminated in order to "simplify and  
          streamline" these fees. 

          The Committee should be aware that in recent years considerable  
          effort has been expended to avoid the need for legislation to  
          adjust DFG fees for increased costs. The inflation adjustment  
          provision has been used in several instances in legislation  
          approved by the Committee. 

          SUPPORT
          California Outdoor Heritage Alliance 
          California Sportsmen's Lobby
          Outdoor Sportsmen's Coalition of California
          Safari Club International

          OPPOSITION
          None Received