BILL ANALYSIS Ó AB 1844 Page 1 Date of Hearing: March 29, 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 1844 (Gallagher) - As Amended March 10, 2016 SUBJECT: Hunting and fishing licenses: reduced license fees: Veterans SUMMARY: Requires the Department of Fish and Wildlife (DFW) to reduce the fee for a hunting license, sport fishing license, and lifetime licenses, sold to a Veteran of the United States Armed Forces. Specifically, this bill: 1)Requires DFW to reduce the fee required to obtain a lifetime sportsman's license, an annual or lifetime hunting license, or an annual or lifetime sport fishing license, by 25%, for any resident of the state who is a Veteran of the United States Armed Forces and who was honorably discharged. 2)Prohibits the Fish and Game Commission (FGC) from increasing license fees for non-veterans to make up the loss of revenue to DFW from the Veteran discount. 3)Requires DFW to reduce the fee required to obtain any sport fishing report card, validation, or other entitlement required in addition to a sport fishing license by 25% for any resident of the state who is a Veteran of the United States Armed AB 1844 Page 2 Forces and was honorably discharged, and by 50% for a Veteran who has a 50% or greater service-connected disability. Prohibits FGC from increasing the fee required to obtain a sport fishing report card, validation, or other entitlement for nonveterans to make up the loss of revenue to DFW from the Veteran discount. EXISTING LAW: 1)Requires an annual hunting license to be issued to any resident of the state age 18 years or older upon payment of a base fee of $31.25, to persons under age 18 years upon payment of a base fee of $8.25, and to nonresident adults upon payment of a base fee of $108.50. The base fees are applicable to the 2004 license year and are adjusted annually based on changes in the Implicit Price Deflator. With annual adjustments, the current fee levels for annual hunting licenses for 2015 are: $47.01 for an adult resident hunting license, $12.45 for a junior hunting license, and $163.65 for a nonresident hunting license. 2)Requires a sport fishing license to be issued to a resident, 16 years of age or older, for a base fee of $31.25, and to a nonresident for a base fee of $84. The base fees apply to the 2004 license year. With annual adjustments, the current license fee for a resident adult sport fishing license in 2015 is $47.01, and for nonresidents is $126.36. 3)Authorizes a disabled Veteran or recovering service member to purchase a reduced-fee hunting license, or a reduced-fee sport fishing license, for a base fee of $4.00, which with annual adjustments is currently $6.95. Defines a disabled Veteran as a person having a 50% or greater service-connected disability and an honorable discharge from military service. A recovering service member is a member of the military, AB 1844 Page 3 including a member of the National Guard or a Reserve, who is undergoing medical treatment, recuperation, or therapy and is in an outpatient status while recovering from a serious injury or illness related to the member's military service. 4)Requires a lifetime hunting license or lifetime sport fishing license to be issued upon payment of a base fee that ranges from $365 to $600, depending on the age of the applicant. The base fee is applicable to the 2004 license year. Current lifetime hunting and sport fishing license fees after annual adjustments range from $517 to $844.50, depending on age. Additional lifetime packages are also available for bird hunting, big game hunting and additional fishing privileges. 5)Requires that the first $20 of fees collected from initial sales of lifetime hunting and fishing licenses be deposited in the Fish and Game Preservation Fund, and the balance deposited in the Lifetime License Trust Account, with the principal subject to investment. Authorizes the money in the Trust Account to be invested through the Surplus Money Investment Fund of the State, and for the interest to accrue to the Trust Fund. Further requires that DFW transfer $29.25 from the Lifetime License Trust Account to the Fish and Game Preservation Fund upon issuance of each annual renewal of a lifetime hunting or fishing license. 6)Requires the Fish and Game Commission (FGC) to adjust the amount of all of the above fees as necessary to fully recover, but not exceed, all reasonable administrative and implementation costs of the DFW and FGC relating to those licenses. 7)Makes reduced-fee sport fishing licenses available to low income seniors for $6.95, and for free to low income Native Americans and persons who are blind, developmentally disabled, AB 1844 Page 4 or mobility impaired. Also makes free motor vehicle hunting licenses available to any mobility impaired disabled hunter who must use a motor vehicle to pursue game, and is either permanently or fully confined to a wheel chair, is an amputee, or depends on the aid of a walker or crutches to walk. 8)Requires the purchase of certain sport fishing report cards, validations, or entitlements, in addition to a sport fishing license, to fish for certain species of fish or in certain locations. Examples of sport fishing report cards include a sport fishing ocean enhancement stamp, a steelhead trout report card, a second rod sport fishing validation, and a salmon punch card. FISCAL EFFECT: Unknown loss of revenues to DFW from discount sales of hunting and fishing licenses to Veterans. COMMENTS: This bill would require the DFW to issue reduced-fee hunting and fishing licenses, and other sport fishing report cards required to fish in addition to a sport fishing license, to Veterans of the United States Armed Forces. 1)Author's Statement: The current discounted fee for hunting and fishing licenses in California only applies to disabled or recovering Veterans. The author of this bill seeks to give Veterans more access to outdoor recreation opportunities in California by providing discounted hunting and fishing license fees to all Veterans, and to additionally provide discounts to Veterans for sport fishing report cards that are required to take specific fish or to fish in certain areas, in addition to a sport fishing license. The author intends with this bill to give more access to AB 1844 Page 5 California Veterans and anticipates that increasing access will expand participation in hunting and fishing by Veterans, their families, and friends. This expanded participation should introduce more people to sport fishing and hunting and could lead to increased sales of licenses in future years. The author acknowledges that one concern with this bill may be its potential fiscal effects on the DFW. However, the author asserts that the decrease in revenue from Veterans' purchases of discounted fishing and hunting licenses should be made up through an increased sales volume. 2)Background: The DFW reports that in 2015, California issued approximately 14,174 disabled Veteran sport fishing licenses, which are issued on a calendar year basis. For the 2014/15 hunting license year, approximately 3,500 disabled Veteran hunting licenses were issued. Hunting licenses are issued on a fiscal year basis, from July through June. DFW also indicates that fewer than 50 recovering service member licenses have been issued each year since that program began in 2013. According to the Department of Veteran Affairs, there are approximately 1.8 million Veterans living in California, with 331,645 receiving monthly disability compensation as of 2014. This bill if enacted would therefore increase from approximately 331,600 to 1.8 million the number of individuals who would be eligible to purchase a reduced-fee hunting or sport fishing license. DFW Revenue Impacts: This bill prohibits the FGC from increasing the fees for hunting and fishing licenses and sport fishing report cards sold to nonveterans in order to recoup the loss of revenue from increased sales of discounted licenses to Veterans. According to DFW, 17.1% percent of DFW's total budget comes from sales of sport fishing and hunting licenses. If the availability of discounted licenses to Veterans results in a loss of revenue to DFW that is not made up through increased license sales, as the author hopes will be the case, DFW could face a deficit in the Fish and Game Preservation Fund without a means of recouping it. This could AB 1844 Page 6 lead to a structural imbalance in the fund, unless that imbalance is made up through increased appropriations to DFW from other funding sources. This bill, by offering discounted lifetime licenses to an expanded pool of applicants could also lead to a deficit in the Lifetime License Trust Account if fees collected for lifetime fishing or hunting licenses are insufficient to cover the costs of those licenses. National Security Providers: Benefits for Veterans such as reduced-fee hunting and sport fishing licenses, or state park day use passes, have traditionally been extended in this state to Veterans with disabilities. This bill would expand such benefits to all Veterans of the Armed Services. In today's complex and interconnected world, the universe of individuals who provide national security services has arguably expanded to include other service professions. In addition to the armed services, there are other forms of public service that also put the service providers potentially in harm's way. Extending reduced-fee benefits to all Veterans could raise policy questions as to why such benefits shouldn't also be extended to individuals who serve their country or community in other ways, including but not necessarily limited to, fire fighters, peace officers, National Security Administration officers, ambulance drivers, and other first responders. Where to draw the line in determining who is deserving of such benefits also raises fiscal challenges regarding how to fund such state services. 3)Double-Referral: If this bill is approved by this committee it is double-referred to and will be heard next in the Assembly Committee on Veterans Affairs. 4)Prior and Related Legislation: SB 1287 (Harman), Chapter 409, Statutes of 2012, and SB 1288 (Harman), Chapter 410, Statutes of 2012, required DFW to offer reduced fee sport fishing and hunting licenses to military personnel who are recovering service members. AB 1844 Page 7 AB 1387 (Runner) of 2007 would have required reduced fee hunting and fishing licenses and free state park passes to be made available to members of the California National Guard. AB 1387 was held in the Assembly Appropriations Committee. AB 1527 (Committee on Water, Parks & Wildlife), Chapter 154, Statutes of 2015, made technical changes to clarify the documentation that is sufficient to demonstrate eligibility for a disabled Veterans reduced-fee hunting license. AB 1972 (Chau) would extend eligibility for the state's existing Distinguished Veteran State Park day use pass, which currently is available to Veterans with disabilities who served during war time, to also include Veterans with a service-connected disability who served during peace time. AB 1972 is also pending in this committee. SB 1081 (Morell) which is currently pending in the Senate Natural Resources and Water Committee would require the DFW to provide free hunting licenses to disabled Veterans and recovering service members. 5)Support Arguments: The California Sport Fishing League is sponsoring this bill to make fishing and hunting more accessible to California Veterans. They assert that California is the most expensive state in the Nation to fish, making the need for this bill timely. According to a study developed by the League, fishing license sales have decreased by over 50% since 1980, and the League believes that the high cost of fishing licenses is a barrier to participation. The League considers this bill as a first step to reforming the state's costly and antiquated fishing license program. Most importantly, the League is sponsoring this bill to reward American Veterans who have defended our freedom with honor, AB 1844 Page 8 and to assist them with rehabilitation by providing access to recreation for them and their families. 6)Opposition Arguments: No formal opposition was received, however, since this bill would significantly expand the pool of individuals eligible for a reduced-fee hunting or fishing license, and prohibits the DFW from increasing license fees for nonveterans in order to recoup the loss of revenue, this bill could result in a significant loss of licensing fee revenue to DFW, and a structural imbalance in the Fish and Game Preservation Fund, if the revenue loss is not recouped by some other means. REGISTERED SUPPORT / OPPOSITION: Support California Sport Fishing League (Sponsor) California Waterfowl Association Opposition None on file. AB 1844 Page 9 Analysis Prepared by:Diane Colborn / W., P., & W. / (916) 319-2096