FISCAL NOTE

Date Requested: February 18, 2020
Time Requested: 10:47 AM
Agency: Natural Resources, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
1381 Amendment HB4070
CBD Subject: Counties


FUND(S):

3200, 8707, 0265

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 compensate certain counties for the loss of tax base from state ownership of certain lands by requiring the Division of Natural Resources to compensate for land it administers at a rate of two dollars or three dollars per acre depending on type of land. It is estimated that the bill as amended will cost the Division of Natural Resources at least $287,430 in the first year and will increase as land purchased for additional Wildlife Management Areas (public hunting and fishing areas) is acquired. In addition, the bill will likely cause the state to be determined ineligible to participate in the Wildlife and Sportfish Restoration Programs by the United States Fish and Wildlife Service. This would result in the loss of an estimated $10.6 million annually in federal funding to the Wildlife Resources and Law Enforcement Sections. In order to avoid being declared ineligible for these federal programs, all state owned and managed lands, not just Division of Natural Resources lands, may need to be subjected to the terms of this bill.



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 0 287,430 318,912
Personal Services 0 0 0
Current Expenses 0 287,430 318,912
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -10,600,000 -10,600,000


Explanation of above estimates (including long-range effect):


Current Expenses increases are calculated by multiplying the total acreage in qualifying counties by the $3 fee. 95,810 qualifying acres X $3 =$287,430.00 Estimated Total Revenues decrease due to becoming ineligible for participation in Wildlife and Sportfish Restoration Programs. Fiscal Year 2019 federal apportionment for these programs was $10,602,226, so $10.6 million was utilized for estimated future revenue loss. Current Expenses increases in future fiscal years due to planned land acquisition which would make an additional 10,494 acres qualify for payment under the bill. Current Expenses may increase further in future years if additional land is acquired.



Memorandum


The definition of “Acquired natural resources land” and “Wildlife management land” conflict. For the purposes of this fiscal note, all lands currently owned and administered by the Division of Natural Resources were classified as “Acquired natural resources land”. The loss of $10.8 to $10.9 million annually to the agency would create the need for dramatic reorganization and catastrophic reductions in services to the citizens of West Virginia. The loss of funds includes approximately $1.2 million for Hunter Education which would result in the virtual elimination of this program and include a reduction in force of at least 7 Natural Resources Police Officers and 1 clerical position. 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