Sources of Revenue:

Special Fund

Legislation creates:

A New Program

Fiscal Note Summary

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

The purpose of this bill is to create a life-time hunting license for nonresidents who are sixty-five years or older and who own real property in the state. The bill grants the Director of the Division of Natural Resources rule-making authority to establish a fee for the license. Because (1) no fee is proposed in the bill and (2) there are no available data to estimate the number of nonresidents who are sixty-five years of age or older and who own real property in the state, it is not possible to provide a detailed estimate of the fiscal impact that this measure will have on the costs and revenues of state government. However, as a general statement of the fiscal impact of the bill, it can be said that if the fee for the proposed license were to be established at a revenue-neutral level, a fee of approximately eight times the annual license fee would be required, i.e., for the $119 annual nonresident hunting license, the required lifetime license fee would be approximately $950. If the fee were set at a lesser amount, operating revenues for the Division of Natural Resources’ wildlife and law enforcement programs would be reduced.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2011 Increase/Decrease (use"-")	2012 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	0	0

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

Because (1) no fee is proposed in the bill and (2) there are no available data to estimate the number of nonresidents who are sixty-five years of age or older and who own real property in the state, it is not possible to provide a detailed estimate of the fiscal impact that this measure will have on the costs and revenues of state government. However, as a general statement of the fiscal impact of the bill, it can be said that if the fee for the proposed license were to be established at a revenue-neutral level, a fee of approximately eight times the annual license fee would be required, i.e., for the $119 annual nonresident hunting license, the required lifetime license fee would be approximately $950. This fee estimate is based upon the following assumptions: 1. 10 years of active participation by the license buyer 2. An estimated 5% rate of annual investment return on the lifetime license fee 3. Total depletion of the fee principal at the end of ten years

Memorandum

The bill specifies that the proposed lifetime license would remain valid for the purchaser for as long as he/she owns real property in the state. Enforcement of this provision would be difficult for the WVDNR. The agency does not have adequate staff to independently validate this provision at county courthouses. Even if the licenseholder were required to annually submit property tax receipts to the agency, the additional cross-referencing with license records and potential enforcement actions would add to the agency’s staffing requirements and administrative costs. Additionally, if the licenseholder were to dispose of property and subsequently acquire additional property, there would be issues relating to invalidating and then re-validating the lifetime license. Finally, implementation of a lifetime license that includes depletion of the principal, a feature that would be required if the fee is to be both minimized and revenue-neutral, may require additional code changes.

Person submitting Fiscal Note: Steve Brown
Email Address: Walter.S.Brown@wv.gov