BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2105
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2105 (Frazier) - As Amended:  April 2, 2014 

          Policy Committee:                              Water, Parks and  
          Wildlife     Vote:                            13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows a nonprofit organization designated by the  
          Department of Fish and Wildlife (DFW) to retain five percent  
          proceeds plus any applicable credit card fees from the sale of  
          big game mammal hunting tags auctioned or sold on behalf of DFW  
          for fundraising purposes.  This bill also modifies the fees for  
          Nelson bighorn ram hunting tags.  Specifically, this bill:

          1)Authorizes a nonprofit organization designated by DFW to  
            assist in the sale of deer, elk, antelope, or bighorn sheep  
            fundraising tags on behalf of DFW to retain 5% of the amount  
            of the sale price of the tag, plus any applicable credit card  
            fees, as a reasonable vendor fee.

          2)Requires that the fee for a tag to take a Nelson bighorn ram  
            tag shall be $400 for a resident of the state, adjusted  
            annually to reflect changes in the Implicit Price Deflator.   
            Requires the Fish and Game Commission (FGC) by July 1, 2015 to  
            fix the fee for a nonresident tag, by regulation, at not less  
            than $1,500, which would also be adjusted annually to reflect  
            changes in the Implicit Price Deflator.
            
          3)Makes various legislative findings and declarations.  

          FISCAL EFFECT  

          1)Minor revenue decreases in the $30,000 (Big Game Management  
            Account) range for the nonprofit vendor fees.  Revenue  
            generated from big-game license tags for fundraising averages  
            about $330,000 per year.  The resulting revenue loss estimate  
            is based on the 5% sales price retention and 2.5% credit card  








                                                                  AB 2105
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            transaction fee.

          2)Minor revenue increases of less than $2,000 (Big Game  
            Management Account) initially from increases in the Nelson big  
            horn ram hunting tags increasing in subsequent years due to  
            annual price adjustments. 

           COMMENTS  

           1)Purpose.   According to the author, the partnership between DFW  
            and nonprofit organizations is vital for the sale of  
            fundraising tags.  Nonprofit organizations are able to reach  
            target communities to market the tag and sell it at a maximum  
            price. This bill allows nonprofits to be compensated.   
           
            California's Nelson bighorn ram tag for residents and  
            nonresidents is statutorily capped at $500.  The Department  
            currently charges $383 for resident fees and $500 for  
            nonresident fees with an additional $7.50 administrative  
            surcharge for both.  In 2013, only 20 tags were offered for  
            public draw and one was offered for fundraising purposes.   
            According to the author, the applications for Nelson bighorn  
            ram tags exceeded 13,000 last year, up from less than 5,000 15  
            years ago.  Despite the demand increase, the fee has remained  
            the same.

           2)Background.   DFW sells tags, stamps and licenses for the  
            hunting of antelope, elk, deer, wild pigs, bear and Nelson  
            bighorn ram.  Proceeds from the fees are deposited in the Big  
            Game Management Account for use by the department to benefit  
            the game species.  With the exception of the Nelson bighorn  
            ram, bighorn sheep are fully protected and hunting is  
            prohibited.

            DFW determines how many tags will be offered to the public  
            each year for public draw and fundraising purposes, but is  
            prevented from offering more than 15 % of Nelson bighorn tags  
            for fundraising.

            Each fall, DFW requests proposals from interested conservation  
            organizations and finalizes agreements for these organizations  
            to sell the tags.  Auction proceeds are expended on management  
            programs for big game species.

           3)Auction fee is not based on the cost of the fundraiser.   This  








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            bill allows a nonprofit organization to retain 5% of auction  
            proceeds regardless of the cost of holding the fundraiser.    
            The last known auction for the Nelson bighorn ram tag raised  
            $170,000.  Under the provisions of this bill, the nonprofit  
            would retain $8,500 plus credit card charges, if any.  This  
            same 5% would be available to a nonprofit that hosted a gala  
            dinner and a nonprofit that hosted an internet action.   

           

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081