FISCAL NOTE
Date Requested: January 21, 2020 Time Requested: 12:35 PM |
Agency: |
Natural Resources, WV Division of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1739 |
Introduced |
SB537 |
|
CBD Subject: |
Natural Resources |
---|
|
FUND(S):
Wildlife License Fund & Federal Funds
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 purpose of this bill is to provide a hunting, trapping, and fishing license exemption for nonresident landowners or their children or parents residing with the nonresident landowner on their land in West Virginia. The Division of Natural Resources estimates 5,418 nonresidents would be exempted from purchasing nonresident hunting licenses. Providing these free hunting license privileges would decrease the hunting and fishing revenue by an estimated $943,629 annually.
The loss of these individuals as paid license holders would also reduce the State’s ability to capture federal aid revenue by an additional $97,516 annually, resulting in an estimated total revenue loss of $1,046,145 annually.
License revenue and federal aid provide the bulk of the operating and capital improvements revenue for the agency’s wildlife management and law enforcement programs. The anticipated reduction in revenue will result in the need to reduce the number of Natural Resource Police Officers by at least five full time officers.
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 |
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 |
-1,041,145 |
-1,041,145 |
Explanation of above estimates (including long-range effect):
Non-Resident Data
Nonresident license holders 57,649 2018 Class CSLE License Sales
Nonresident hunters 25,798 2018 License Sales (sum of Class AAH + Class AAHJ + Class E licenses)
Est. Non-Residents Hunting on their own land 21.0% 5,418 2016 Deer Hunter Survey of Non-Resident Deer Hunters, DNR
Class E revenue loss 100.0% $119.00 $644,692.02
Class CS/LE loss 100.0% $13.00 $70,428.54
Class NN loss 56.0% $27.00 $81,913.81
Class RRG loss 16.8% $43.00 $39,136.60
Class RRB loss 8.9% $37.00 $17,840.09
Class RRM loss 0.6% $37.00 $1,202.70
Class UU loss 29.1% $32.00 $50,448.50
Class VV loss 5.7% $32.00 $9,881.67
Class WW loss 16.2% $32.00 $28,084.73
Est. Total license revenue loss $943,628.67
Federal aid loss $18.00 $97,516.44
Total loss $1,041,145.11
Non-Resident Data Sources
Nonresident hunters = 25,798. Source: 2018 License Sales (sum of Class AAH + Class AAHJ + Class E licenses)
Hunt their own land only= 25,798X.21=05,418. Source: 2016 Deer Hunter Survey of Non-Resident Deer Hunters, DNR unpublished
Estimated number of non-resident individuals eligible for this exemption=5,418 5,418
Est. license revenue loss for eligible non-resident sportsman=$943,629 $943,629
Est. annual federal aid revenue per licensed non-resident hunter=$18.00 18
Est. annual federal aid revenue loss from 5,418 non-resident exemptions=5,418X$18.00=$97,516 $97,516
Est. revenue loss from 5,418 non-resident exemptions=943,629+$97,516=$1,041,145 $1,041,145
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 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.
For additional questions, please contact Zack Brown at Zack.J.Brown@wv.gov or 1-304-558-2771.
Person submitting Fiscal Note: Amanda Morris
Email Address: amanda.l.morris@wv.gov