BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 904|
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                                 THIRD READING


          Bill No:  SB 904
          Author:   Hollingsworth (R)
          Amended:  4/6/10
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  9-0, 3/23/10
          AYES:  Pavley, Cogdill, Hollingsworth, Huff, Kehoe,  
            Lowenthal, Padilla, Simitian, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 4/26/10
          AYES:  Kehoe, Cox, Alquist, Corbett, Denham, Leno, Price,  
            Wolk, Yee
          NO VOTE RECORDED:  Walters, Wyland


           SUBJECT  :    Hunting:  commercial hunting clubs

           SOURCE :     Author


           DIGEST  :    This bill eliminates the classification and  
          license of $2000 for 11 more hunting clubs and properties,  
          and increases new classification for all clubs that operate  
          six or more properties and establish a fee for this  
          classification of $1000.  This bill also prohibits the  
          application of Section 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.

           ANALYSIS  :    

           Existing law  
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          1.Provides that a person in possession or control of  
            property on or with respect to which a fee for the  
            privilege of taking birds or mammals is imposed or  
            collected, or on or with respect to which a fee for any  
            type of entry or use permit that includes the privilege  
            of taking birds or mammals on the property is imposed or  
            collected, is maintaining a commercial hunting club if  
            birds or mammals are taken on the property, and requires  
            a person to procure a "commercial hunting club license"  
            from the Department of Fish and Game (DFG) before birds  
            or mammals are taken.

          2.Authorizes the DFG to issue a license to any person upon  
            submission of a completed application and payment of a  
            fee, in accordance with a fee schedule based on the  
            number of properties used by the club, including a $1,000  
            fee for six to ten, inclusive, properties and a $2,000  
            fee for 11 or more properties.

          This bill eliminates the classification and license of  
          $2000 for 11 more hunting clubs and properties, and  
          increases new classification for all clubs that operate six  
          or more properties and establish a fee for this  
          classification of $1000.  This bill also prohibits the  
          application of Section 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.

           Background
           
          Historically, the fee for commercial hunting club licenses  
          was $165 annually.  SB 1200 (Hollingsworth), Chapter 394,  
          Statutes of 2006 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. 

          AB 1423 (Berryhill, Tom), Chapter 394, Statutes of 2009  







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          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee analysis,  
          because the new tiered fee structure has not been in effect  
          for a full year, the Department of Fish and Game (DFG) does  
          not have data on the number of licensed commercial hunting  
          clubs that fall into each of the fee tiers.  DFG estimates  
          that the number of licensed clubs in the top tier (eleven  
          or more properties) is likely between 10 and 20 statewide.   
          By reducing the fee for these clubs, the bill will reduce  
          fee revenues from $10,000 to $20,000 per year.

          In addition to the licensed commercial hunting clubs in the  
          state, there are a large number of hunting clubs that do  
          not comply with the state's licensing requirements.  In  
          2009, there were 73 licensed clubs, whereas the Department  
          estimates that there are as many as 1,000 commercial  
          hunting clubs in the state.

          By reducing the top tier fee, this bill will also  
          potentially reduce fees paid by unlicensed commercial  
          hunting clubs, should DFG increase its enforcement efforts  
          to improve compliance with the law.  The extent of this  
          impact is very uncertain, given that the total number of  
          clubs is not known, nor is the proportion of those  
          unlicensed clubs that would be subject to the top tier fee.  
          Assuming that there are about 1,000 clubs in the state and  
          that the top tier clubs make up 15 percent to 30 percent of  
          the total number of clubs, potential revenue losses could  







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          be between $125,000 and $250,000 per year.  However, the  
          proposed reduction in fees could potentially encourage some  
          unlicensed club operators to apply for a license,  
          offsetting revenue losses. The extent of this offsetting  
          revenue impact is unknown.

           SUPPORT  :   (Verified  4/27/10)

          California Outdoor Heritage Alliance 
          California Rifle and Pistol Association
          California Sportsmen's Lobby
          Mutual Rifle Association
          Outdoor Sportsmen's Coalition of California
          Safari Club International

           ARGUMENTS IN SUPPORT  :    The California Outdoor Heritage  
          Alliance (COHA), 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.


          CTW:DLW:do  4/27/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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