FISCAL NOTE

Date Requested: January 26, 2016
Time Requested: 11:07 AM
Agency: Natural Resources, Division of
CBD Number: Version: Bill Number: Resolution Number:
1834 Introduced HB4203
CBD Subject: Agriculture


FUND(S):

3200

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of this bill is to provide a hunting license exemption for certain nonresident landowners and their spouses and children residing with the nonresident landowner: provided, that the nonresident’s home state allows the same privileges for nonresidents. The Division of Natural Resources estimates about 947 nonresidents would be exempted from purchasing nonresident hunting licenses. Only two of the surrounding states (Ohio and Virginia) allow reciprocal exemptions from nonresident hunters. At current fees and purchase rates, each licensed nonresident hunter currently contributes $170.12 annually to the hunting and fishing license fund. The fiscal impact of providing free hunting license privileges to these 947 nonresident landowners would be to decrease the hunting and fishing revenue to the agency’s Wildlife and Law Enforcement programs by an estimated $161,104 annually. Because the license-exempt status of these individuals would make them immune to inflation-indexed annual fee increases, the projected revenue losses to the State would increase in future years at a rate even greater than the inflation rate. The loss of these individuals as paid licenseholders would also reduce the State’s ability to capture federal aid revenue by an additional $17,046 annually, resulting in an estimated total revenue loss of $178,150 annually. 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 those programs, including those who are not paid licenseholders. 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 license, thus increasing the financial responsibility on paid licenseholders for providing agency services to all. Finally, any reduction in paid licenseholders hurts the agency’s ability to secure federal aid revenues that are used to help keep license fees low for everyone. More free 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.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -89,075 -178,150


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


Non-Resident Data Sources Licensed nonresident hunters = 26,642. Source: 2014 License Sales Avg license revenue per nonresident hunter = $170.12. Source: 2014 License Sales. Federal aid loss per hunter = $18. States offering reciprocal license benefits = Ohio and Virginia. Source: State Hunting and Fishing License Web Page Explanations of above estimates: Est number of Ohio landowners who would take advantage of this benefit= 26,642x.213x.09 = 511. Assume 21.3% of non-residents are Ohio residents and 9% WV landowners. Est number of Virginia landowners who would take advantage of this benefit =26,642x.182*.09=436. Assume 18.2% of non-residents are Virginia residents and 9% WV landowners. Est number of non-resident landowners who would take advantage of this benefit = 511 + 436 = 947. Est annual license revenue loss per 947 non-resident exemptions = 947x$170.12=$161,104. Est annual federal aid revenue loss per 947 non-resident exemptions = 947*$18 = $17,046. Est total annual license and federal aid revenue loss = $161,104 + $17,046 = $178,150.



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 those programs, including those who are not paid licenseholders. 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 license, thus increasing the financial responsibility on paid licenseholders for providing agency services to all. Finally, any reduction in paid licenseholders hurts the agency’s ability to secure federal aid revenues that are used to help keep license fees low for everyone. More free 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.



    Person submitting Fiscal Note: RANDY TUCKER
    Email Address: RANDY.L.TUCKER@WV.GOV