FISCAL NOTE

Date Requested: February 14, 2017
Time Requested: 01:41 PM
Agency: Natural Resources, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
2282 Introduced HB2441
CBD Subject: Military and Veterans, Natural Resources


FUND(S):

3200

Sources of Revenue:

Special Fund,Other Fund 8707

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 allow any resident West Virginia honorably discharged from the Armed Forces of the United States of America to hunt, trap or fish without obtaining hunting and/or fishing license. The House Veteran’s Affairs and Homeland Security committee requested a revision of the fiscal note that included only the benefit of a base license with none of the associated stamps and privileges included, and to account for veteran age. Based on the most recent data provided by the West Virginia Department of Veterans Assistance, we estimate that 27,500 veterans under 65 years of age, and 4,450 veterans over 65 years of age would take advantage of this benefit. At current license fees, $35 for each veteran under 65 and a one-time fee of $25 for each veteran over 65 would no longer be paid to the hunting and fishing license fund. The fiscal impact of providing free hunting and fishing privileges to these 32,450 individuals would be to decrease hunting and fishing license revenue by $1,086,250 million the first year, and $962,500 annually afterward. The loss of these individuals as paid license holders would also reduce the State’s ability to capture federal aid revenue by an additional $315,00 annually, resulting in an estimated total revenue loss of $1,401,250 in year one, and $1,277,500 annually thereafter. In order to process the expected increase in applications for exemption it is anticipated that at least 1 full time staff would need to be hired, and a new card printer acquired.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 35,700 32,200
Personal Services 0 32,200 32,200
Current Expenses 0 0 0
Repairs and Alterations 0 3,500 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -1,401,250 -1,277,500


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


Number of Veterans in West Virginia not covered under current legislation= 170,000 Estimated number of veterans over 65 years of age =45,000, Estimated veterans who turned 65 after 2012= 22,500 Estimated participation rate in hunting and/or fishing=22% Estimated number of licensable veterans under 65 years old who hunt and/or fish=125,000 X 22%= 27,500 Estimated number of licensable veterans over 65 years old who hunt and/or fish = 22,500 X 22%= 4,950 License revenue per sportsman package (class X) = $35.00 License revenue per Senior License (class XS) = $25.00 Estimated annual license revenue loss from 27,500 exemptions=27,500 X $35.00= $965,500 Estimated annual license revenue loss from 4,950 Senior License exemptions=4,950 X $25.00= $123,750 Estimated annual federal aid revenue per licensed hunter=$18.00 Estimated WV participation rate in hunting= 14% Estimated of veteran hunters=125,000 X 14%= 17,500 Estimated annual federal aid revenue loss from 17,500 exemptions=22,330 X $18= $315,000 $32,200 cost increase results from hiring 1 new customer service representatives at $23,000 plus benefits in order to process validation, license issuance and record-keeping. $3,500 is the cost of a new card printer. First year total = $965,500 + 123,750 + 315,000 = $1,401,250 Subsequent year total =$965,000 + $315,000 = $1,277,500



Memorandum


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 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 license, thus increasing the financial responsibility on paid license holders for providing agency services to all. Finally, any reduction in paid license holders 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. The anticipated loss to our Law Enforcement Section of $385,000 annually could result in an anticipated reduction in force of 9 Natural Resources Police Officers.



    Person submitting Fiscal Note: Zack Brown
    Email Address: zack.j.brown@wv.gov