FISCAL NOTE
Date Requested: January 09, 2019
Time Requested: 05:38 PM |
| Agency: |
Natural Resources, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1131 |
Introduced |
HB2150 |
|
|---|
| CBD Subject: |
Licenses, Natural Resources, Parks and Recreation, Tourism |
|---|
|
FUND(S):
3200
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to allow nonresidents who were born in West Virginia to purchase nonresident hunting and fishing licenses at a 50% discount to standard fees for nonresident sportsmen. If the bill were to become law, an estimated 12,769 currently licensed individuals could take advantage of this discount. At current license fees, each nonresident license holder contributes an average of $105.66 to the hunting and fishing license fund. The fiscal impact of providing discounted hunting and fishing privileges to these 12,769 individuals would be to decrease hunting and fishing license revenue to the Division of Natural Resources’ Wildlife and Law Enforcement programs by an estimated $674,586 annually. In the future, that loss could increase by an estimated $251,735 each year as a result of normal out-migration of West Virginia natives that hunt and fish. Finally, passage of the bill would require the Division to validate each buyer’s birth certificate and maintain those records for future purchases thus increasing the Division’s operating costs by an estimated $127,690 annually. Additionally, an estimated programming cost of $30,000 will be required to the existing electronic licensing system to accommodate the record keeping functions.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
157,690 |
127,690 |
| Personal Services |
0 |
117,690 |
117,690 |
| Current Expenses |
0 |
10,000 |
10,000 |
| Repairs and Alterations |
0 |
30,000 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-674,586 |
-926,321 |
Explanation of above estimates (including long-range effect):
Estimated number of individuals who would take advantage of this benefit=12,769
Est. annual license revenue per licensed nonresident sportsman=$105.66
Est. annual license revenue loss from 50% discount=12,769 X $105.66 X 50% = $674,586
Est. annual out-migration of native-born sportsmen= 4,765
Est. annual revenue loss from 4,765 out-migrating, native-born sportsmen=4,765 X $105.66 X 50% = $251,735
$127,690 cost increase for birth-certificate validation and record-keeping
Memorandum
License revenue and federal aid provide the bulk of the operating and capital improvements revenue for the agency’s wildlife and law enforcement programs. By law, all hunters and anglers in West Virginia must be served by the agency’s wildlife and law enforcement programs, including those who are not fully paid license holders. Currently, the agency estimates that 43 percent of all hunters and anglers do not purchase a hunting or fishing license, thus placing the total financial responsibility for supporting wildlife and law enforcement programs on those who do purchase licenses. This bill would increase the number of sportsmen who will not purchase a full-fee license, thus increasing the financial responsibility on fully-paid license holders for providing agency services to all. More free or discounted hunting and fishing license privileges for some must inevitably result in higher license fees for others, thereby reducing participation and economic impact from sportsman expenditures in the state.
For additional information concerning this fiscal note, please contact
Randy Tucker
randy.l.tucker@wv.gov
Person submitting Fiscal Note: Jennifer Snow
Email Address: jennifer.l.snow@wv.gov