FISCAL NOTE
Date Requested: February 06, 2020
Time Requested: 02:02 PM |
| Agency: |
Natural Resources, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3164 |
Introduced |
HB2151 |
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|---|
| CBD Subject: |
|
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FUND(S):
3200, 8707
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to require that all licenses and permits be valid for one year starting the month in which the license was purchased, as opposed to starting with the date of purchase and lasting through the end of the calendar year. This would have a permanent negative effect on licensing revenues as ranging from $650,000, to $1.9 million, over the first three years of implementation. In addition, it will require an additional investment in the first year in the amount of $100,000 to change the current electronic licensing system and to retrain license agents which sell licenses in stores across the State.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
100,000 |
0 |
| Personal Services |
0 |
25,000 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
75,000 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-1,300,000 |
-1,300,000 |
Explanation of above estimates (including long-range effect):
The loss in annual revenue over the first three years of implementation is based on a 2015 study by the State of California that surveyed states that had switched to 365-day license (valid from date of purchase) and found a 10% to 30% loss in sales in the 3-years following conversion. Based on the Division of Natural Resource’s 2018 license sales, this would result in an estimated decrease of $1.4 million to $4.2 million over the first three years. In addition, there will be a further decrease in resulting matching federal funds over the same three-year period ranging from $183,000 to $550,000 for a total estimated annual loss of $650,000 to $1.9 million. Once the costs of modifying the electronic license system, $75,000, and retraining license agents, $25,000, are included, the first year estimated costs would be $750,000 to $2,050,000. For this fiscal note we are using the average reduction of 20%, or $1,300,000.
The result would be significant decrease in the level of service within the Division of Natural Resources, including Law Enforcement, Wildlife Resources Section and Administration. We would anticipate the need to leave three Natural Resources Police Officer positions vacant at the 10% reduction, and 9 Natural Resources Police Officer positions at the 30% reduction in license funds.
Memorandum
This bill has defects in its language as to the length of time the license would be valid.
As written the license does not become valid till the last day of the month the license is purchased.
Having expiration dates at the end of the month could cause confusion for license holders and potentially result in greater hunting and fishing violations.
The Division of Natural Resources is currently conducting a survey of existing license buyers and we are asking these buyers to indicate their preferred license period and the options to answer will be “January 1 – December 31, April 1 – March 31, July 1 – June 30, or 365-days from date of purchase”.
For additional information concerning this fiscal note, please contact: Zack Brown at
Zack.J.Brown@wv.gov or 304-558-2771.
Person submitting Fiscal Note: Amanda Morris
Email Address: amanda.l.morris@wv.gov