BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 904
                                                                  Page  1

          Date of Hearing:   June 29, 2010
                                   (FOR VOTE ONLY)
                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                            Jared William Huffman, Chair
                 SB 904 (Hollingsworth) - As Amended:  April 6, 2010

           SENATE VOTE  :   34-0
           
          SUBJECT  :   Commercial Hunt Clubs

           SUMMARY  :   Reduces the license fee for commercial hunt clubs  
          with more than 11 properties.  Specifically,  this bill  :

          1)Reduces the license fee for a commercial hunt club with more  
            than 11 properties from $2,000 to $1,000, making the $1,000  
            fee applicable to any club with 6 or more properties. 

           EXISTING LAW  :

          1)Authorizes the Department of Fish and Game (DFG) to issue a  
            commercial hunting club license to any person upon submission  
            of a completed application and payment of a fee as follows:

               a)     For one property, $200
               b)     For 2 to 5 properties, $500
               c)     For 6 to 10 properties, $1,000
               d)     For 11 or more properties, $2,000

          2)Requires the fees for commercial hunt clubs to be adjusted  
            annually for inflation.

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee analysis, reduced annual fee revenue to DFG of $10,000  
          to $20,000 per year, potentially offset by increased fee  
          revenues from additional compliance if currently unlicensed  
          clubs are licensed.

           COMMENTS  :   Prior legislation enacted in 2006 (SB 1200  
          (Hollingsworth), Chapter 396, Statutes of 2006) authorized  
          commercial hunt club operators to file a single consolidated  
          license application for multiple properties and required a  
          separate fee to be paid for each property.  Legislation enacted  
          in 2009 (AB 1423 (T.Berryhill), Chapter 394, Statutes of 2009)  
          established a tiered license fee structure, based on the number  
          of properties covered under each license.  AB 1423 also added  








                                                                  SB 904
                                                                  Page  2

          exemptions to the commercial hunting club license requirement,  
          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.

          This bill eliminates the top tier which currently requires  
          payment of a fee of $2,000 for applications covering more than  
          11 properties, and instead requires payment of a $1,000 fee for  
          any license application covering 6 or more properties.  DFG  
          estimates there are approximately 10 to 20 licensed commercial  
          hunt clubs statewide that would be subject to the lower fee.   
          According to DFG, 73 commercial hunt clubs were licensed in  
          2009.  DFG also estimates there are hundreds of unlicensed hunt  
          clubs operating in the state that have not complied with the  
          licensure requirement.  DFG has been issuing warnings to clubs  
          that they need to comply but has not yet taken enforcement  
          actions against any of the unlicensed clubs.

           Arguments in Support  :  The California Outdoor Heritage Alliance  
          states that prior legislation created an unintended consequence  
          by subjecting several hunting clubs to fees amounting to several  
          thousand dollars. They also contend that the reduction in the  
          maximum fee is in line with DFG enforcement costs, a contention  
          DFG disagrees with.

           Arguments in Opposition  :  The Department of Fish and Game  
          opposes this bill and believes that concerns regarding the  
          hunting club program were addressed with passage of AB 1423  
          (T.Berryhill) in 2009.  With regard to the fee schedule, DFG  
          asserts that the fees now in statute are fair, and that single  
          property owners or lessees are now paying less than they were in  
          2009.  The 2009 fee for a hunt club license was $354 and is $210  
          in 2010.  Larger landowners and lessees are also paying less  
          than in the past, since they previously had to pay a separate  
          fee for each property owned or leased for hunting.  For example,  
          under the prior scheme an owner or lessee that owned or leased  
          12 properties would have been required to pay $4,248, but under  
          the law as enacted last year that payment is reduced to $2,000.   
          This bill would result in a loss of revenue to DFG which would  
          lower the amount of resources available to DFG to enforce the  
          laws governing the clubs.

          Since this committee just last year passed legislation which  
          lowered commercial hunting club license fees, and since this  








                                                                  SB 904
                                                                  Page  3

          bill would reduce revenues available to DFG for enforcement, at  
          a time when the department is already facing funding shortfalls,  
          the committee may wish to consider whether further reduction in  
          the licensing fees is justified at this time.   

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Outdoor Heritage Alliance
          California Rifle and Pistol Association 
          California Sportsmen's Lobby
          National Rifle Association
          Outdoor Sportsmen's Coalition of California
          Safari Club International
           
            Opposition 
           
          Department of Fish and Game

           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096