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 the bill is to allow nonresident landowners and their resident children to hunt and fish without a license on their own property in West Virginia. The Division of Natural Resources estimates that somewhat less than 5 percent of all licensed nonresident hunters, or about 1,300 individuals, would hunt or fish exclusively on their own land in West Virginia if they could do so for free. At current fees and purchase rates, each licensed nonresident hunter currently contributes $173.58 annually to the hunting and fishing license fund. The fiscal impact of providing free hunting and fishing privileges to these 1,300 nonresident landowners would be to decrease hunting and fishing license revenue to the agency’s Wildlife and Law Enforcement programs by an estimated $225,654 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 $15,600 annually, resulting in an estimated total revenue loss of $241,254 annually. Cognizant of such impacts, only one of the five surrounding states allows nonresident landowners to hunt on their own property without a license. The four other states require the nonresident landowner to purchase a nonresident license, as is the case in West Virginia. 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
Effect of Proposal	2013 Increase/Decrease (use"-")	2014 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	-120,627	-241,254

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

Annual License Revenue Loss Estimate 1,300 nonresident licensed landowner hunters X $173.58 license revenue/hunter = $225,654 Annual Federal Aid Revenue Loss Estimate 1,300 nonresident licensed landowner hunters X $12 federal revenue/licensed hunter = $15,600 Total Annual Revenue Loss Estimate $225,654 + $15,600 = $241,254

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: Steve Brown
Email Address: Walter.S.Brown@wv.gov