Colorado Legislative Council Staff
STATE
REVISED FISCAL NOTE
TABOR Refund Impact
(Replaces Fiscal Note dated February 4, 1998)
No State General Fund Impact
Cash Fund Revenue and Expenditure Impact
Drafting Number: Prime Sponsor(s): |
LLS 98-243 Rep. Entz Sen. Bishop |
Date: Bill Status: Fiscal Analyst: |
March 10, 1998 House Appropriations Steve Tammeus (866-2756) |
TITLE: CONCERNING LICENSES ISSUED BY THE DIVISION OF WILDLIFE, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.
Summary of Legislation
STATE FISCAL IMPACT SUMMARY |
FY 1998/99 |
FY 1999/2000 |
State Revenues Wildlife Cash Fund Search and Rescue Cash Fund Sheep and Goat Cash Fund Exempt Wildlife Management Public Education Cash Fund |
$500 42,000 9,500 538,500 |
$4,961,065* 18,000 9,500 $1,260,000 |
State Expenditures Wildlife Cash Fund Wildlife Management Public Education Cash Fund |
$319,558 538,500 |
$1,166,679 1,260,000 |
FTE Position Change |
5.6 FTE |
21.5 FTE |
Local Government Impact — None |
*This amount includes a hunting license fee revenue increase of $4,970,785 over the total forecasted license revenue for FY 1997-98. Refer to the discussion of deer and elk hunting licenses in the “State Revenue” section of this fiscal note for further explanation.
This bill, as amended by the House Agriculture Committee (House Journal, February 16, 1998, pages 581-589), requires the Wildlife Commission under the Department of Natural Resources to establish a Local Big Game Management Advisory Committee for each geographical area assigned to the area wildlife manager. The bill specifies the membership and the terms of the members of the advisory committees. The bill authorizes the advisory committees to advise and make recommendations to the wildlife manager, to resolve disputes between landowners and the Division of Wildlife (DOW), and to appeal big game decisions to the commission under certain conditions. The advisory committees are to be formed during FY 1999-2000 and are to be repealed effective July 1, 2005, subject to legislative sunset review of advisory committees.
The amended bill repeals the Search and Rescue surcharge of 25 cents assessed on each hunting and fishing license, but retains that surcharge on hiking certificates. The bill requires each person who purchases a hunting or fishing license to purchase one Rescue and Education Stamp for a fee of $2.00. Forty cents from the sale of each stamp is to be credited to the Search and Rescue Fund. The bill requires the division to allocate the remaining proceeds to the Wildlife Cash Fund to support the administrative costs related to the Rescue and Education stamp, and to the Wildlife Management Public Education Cash Fund. Each stamp is valid only during the year of purchase.
The amended bill creates the Wildlife Management Public Education Cash Fund consisting of moneys appropriated by the General Assembly from moneys collected from the sales of Rescue and Education Stamps, and any donations to the Wildlife Management Public Education Council. Moneys in the fund are to be used by the council in carrying out its duties and the administrative expenses of the division with respect to Rescue and Education Stamps. All investment earnings of the fund are to be credited to the fund, and all unexpended moneys in the fund shall revert to the Wildlife Cash Fund at the end of each fiscal year.
The amended bill requires the Director of the Division of Wildlife to appoint a nine member Wildlife Management Public Education Council. The responsibilities of the council include:
• oversee the implementation of a comprehensive public information program;
• prepare an operational plan for each following fiscal year;
• expend moneys from the fund in accordance with the operational plan;
• certify that payments from the Wildlife Management Public Education Cash Fund are consistent with operational plans; and
• prepare an annual report describing the cash fund expenditures and accomplishments of the council.
The provisions establishing the council would be repealed effective July 1, 2005, subject to legislative sunset review.
The amended bill authorizes the DOW to increase the deer hunting license fee for a resident from $20 to $30, and for a nonresident from $150 to $250. The bill authorizes the division to increase the elk hunting license fee for a resident from $30 to $45, and for a non-resident from $250 to $450. The bill establishes a Rescue and Education Stamp fee of $2.00.
The bill revises the provisions regarding landowner preference for the hunting licence program by:
• establishing certain conditions for eligibility;
• increasing the number of licenses that may be made available up to 50 percent of the number of licenses established for each game management area;
• prescribing the allocation of deer, elk, and antelope licenses based upon either the amount of land owned by the landowner in the management unit or the amount of the landowner’s support contributed to wildlife in the management unit;
• requiring the commission to issue rules for the administration of landowner preferences by December 1, 1998;
• requiring the commission to reevaluate the program if all deer or elk licenses are limited and issued by drawing only; and
• requiring the commission to demonstrate that the utilization of quotas by management units is not feasible if the commission proposes to increase the number of limited units for deer or elk.
The amended bill authorizes the division to issue up to two male deer licenses through competitive auction or raffle. The proceeds from the raffle are to be used for special projects for those species. The amended bill authorizes the commission to allocate licenses to youth and disabled hunters, and to establish a hunting license with a fee discount of 50 percent for disabled hunters.
The provisions regarding the hunting license fee increases for deer and elk will become effective on July 1, 1999. The remaining provisions will become effective on July 1, 1998.
This bill affects state revenue and expenditures. Therefore, the bill is assessed as having a state fiscal impact.
State Revenues
The following paragraphs explain how the amended bill will affect state revenue.
Deer and elk hunting license fees. The provisions regarding the changes in the fee amounts for deer and elk hunting licenses will affect state revenue to the Wildlife Cash Fund starting in FY 1999-2000. Those revenue impacts are based upon the following assumptions:
• that the Division of Wildlife is currently forecasting a net revenue of $41,469,874 for FY 1997-98 from the sales of 397,917 deer and elk hunting licenses
• that deer licenses will continue to be sold over-the-counter in FY 1998-99 and FY 1999-2000;
• that either-sex elk licenses will be issued in selected areas during the 1998 hunting season only;
• agent commission structures will remain unchanged;
• revenue estimates are based on net price minus agent commissions;
• that the new fees structure will be in effect January 1999 and will affect license revenue beginning in FY 1999-2000;
• due to license price sensitivity, the number of licenses sold during FY 1999-2000 will be reduced as follows:
- resident deer licenses by 8 percent;
- non-resident deer licenses by 40 percent;
- resident elk licenses by 7 percent; and
- non-resident elk licenses by 42 percent.
Table 1 provides a summary of the estimated number of hunting licenses to be sold based upon the assumptions above.
Table - 1 LicenseType |
FY 1997-98 Forecasted |
FY 1998-99 Forecasted |
FY 1999-00 Forecasted, based upon current fee |
FY 1999-00 Forecasted, adjusted for price sensitivity |
Deer License |
|
|
|
|
Resident |
91,439 |
90,000 |
87,300 |
80,316 |
Nonresident |
70,876 |
72,900 |
73,000 |
43,800 |
Elk License |
|
|
|
|
Resident |
129,215 |
132,000 |
133,320 |
123,988 |
Nonresident |
106,387 |
109,400 |
112,135 |
65,038 |
Total |
397,917 |
404,300 |
405,755 |
313,142 |
Pursuant to Section 2-2-322, C.R.S., which requires legislative service agency review of legislative measures which include the creation or increase of any fee collected by a state agency, the following fee analysis is provided. The revenue shown in Table 2 is deposited to the Wildlife Cash Fund.
Table 2 - Fee Analysis |
FY 1998-99 Licenses |
FY 1998-99 Current Fee |
FY 1998-99 Revenue |
FY 1999-00 Licenses |
FY 1999-00 Proposed Fee |
FY 1999-00 Revenue |
Deer |
|
|
|
|
|
|
Resident |
90,000 |
$20 |
$1,800,000 |
80,316 |
$30 |
$2,409,480 |
Nonresident |
72,900 |
$150 |
10,935,000 |
43,800 |
$250 |
10,950,000 |
Elk |
|
|
|
|
|
|
Resident |
132,000 |
$30 |
3,960,000 |
123,988 |
$45 |
5,579,460 |
Nonresident |
109,400 |
$250 |
27,350,000 |
65,038 |
$450 |
29,267,100 |
Subtotal |
404,300 |
|
$44,045,000 |
313,142 |
|
$48,206,040 |
Agent |
|
|
($1,667,801) |
|
|
($1,765,381) |
Total |
|
|
$42,377,199 |
|
|
$46,440,659 |
The data in Table 2 would indicate that the hunting license fees, as provided by this bill, will increase Wildlife Cash Fund revenue for FY 1999-00 by $4,970,785 over the net revenue forecasted for FY 1997-98.
NOTE: Extraneous to the provisions of this bill, the Wildlife Commission is currently planning to discontinue over-the-counter deer licenses after 1998. Therefore, beginning in 1999, all deer licenses will be limited. The division estimates that resident deer license sales will be reduced by 20 percent and non-resident deer license sales will be reduced by 50 percent for FY 1999-2000 rather than the reductions as shown above due to price sensitivity alone. As a result, based upon the provisions of this bill and the discontinuation of over-the-counter deer license sales after 1998, the net deer and elk hunting license revenue for FY 1999-2000 is estimated by the division to be $44,770,600. This amount is an increase of $3,300,726 over the net revenue forecasted for FY 1997-98.
Search and Rescue surcharge revenue. The amended bill repeals the Search and Rescue surcharge of 25 cents assessed on each hunting and fishing license, but retains that surcharge on hiking certificates to be deposited in the Search and Rescue Fund. The bill requires each person who purchases a hunting or fishing license to purchase one Rescue and Education Stamp for a fee of $2.00. Of that amount, 40 cents is to be credited to the Search and Rescue Fund. The resulting revenue impact is based upon the following:
• that the Rescue and Education Stamp will be effective January 1, 1999 for a half-year impact on FY 1998-99;
• that the division currently collects 25 cents per every hunting and fishing license, parks permit, and hiking permit for a total Search and Rescue surcharge revenue of $360,000 for FY 1997-98; and
• that of that amount, Search and Rescue surcharge revenue at 25 cents per hunting and fishing license will be approximately $320,000 for FY 1997-98.
The total revised Search and Rescue Fund revenue from the sales of Rescue and Education Stamps, parks permits, and hiking permits is estimated to be $402,000 (an increase of $42,000) for FY 1998-99 and $378,000 (an increase of $18,000) for FY 1999-2000.
Rescue and Education Stamp revenue. The bill requires each person who purchases a hunting or fishing license to purchase one Rescue and Education Stamp for a fee of $2.00. Forty cents (Search and Rescue surcharge) from the sale of each stamp is to be credited to the Search and Rescue Fund. The bill requires the division to allocate the remaining proceeds to the Wildlife Cash Fund to support the administrative costs related to the Rescue and Education stamp, and to the Wildlife Management Public Education Cash Fund. Each stamp is valid only during the year of purchase. The resulting revenue impact is based upon the following:
• that the Rescue and Education Stamp will be effective January 1, 1999 for a half-year impact on FY 1998-99;
• that agent commissions will be 10 cents per stamp; and
• that the division will sell approximately 359,000 stamps for a gross revenue of $682,100 in FY 1998-99 and 840,000 stamps for a gross revenue of $1,596,000 in FY 1999-2000.
Of these gross revenue amounts and after deduction of the Search and Rescue surcharge, the remaining proceeds to be allocated to the Wildlife Cash Fund and the Wildlife Management Public Education Cash Fund are estimated to be $538,500 for FY 1998-99 and $1,260,000 for FY 1999-2000.
Auction revenue. The bill authorizes the DOW to auction two male deer licenses. The division believes each license will generate revenue in the amount of $5,000 for a total of $10,000 for FY 1998-99 and FY 1999-2000. Of this amount, $9,500 would be credited to the Sheep and Goat Cash Fund Exempt as donations, and $500 would be credited to the Wildlife Cash Fund as license revenue.
Mobility-impaired hunting license revenue. The bill authorizes the Wildlife Commission to establish a special licensing program for mobility-impaired hunters. These licenses are to be obtained at division offices for 50 percent less than the regular applicable price. The resulting impact on Wildlife Cash Fund revenue is based upon the following assumptions:
• that the provisions of this bill will be effective for the fall 1999 hunting season;
• that the regular hunting license prices are: resident deer, $20; resident elk, $30; non-resident deer, $150; and non-resident elk, $250;
• that 400 resident deer licenses, 600 resident elk licenses, 20 non-resident deer licenses, and 20 non-resident elk licenses would be sold to mobility impaired hunters at the regular prices; and
• that 468 resident deer licenses, 720 resident elk licenses, 44 non-resident deer licenses, and 40 non-resident elk licenses will be sold to mobility impaired hunters at the reduced prices.
Pursuant to Section 2-2-322, C.R.S., which requires legislative service agency review of legislative measures which include the creation or increase of any fee collected by a state agency, Table 3 provides a summary of the resulting reduction in revenue to the Wildlife Cash Fund for FY 1999-2000.
Table 3 - Hunting License Fees for Mobility Impaired Wildlife Cash Fund |
||||
Hunting License |
Current Fee |
Proposed Fee |
# of Licenses |
FY 1999-2000 Fee Impact |
Resident Deer |
$20 |
|
-400 |
($8,000) |
Resident Elk |
$30 |
|
-600 |
($18,000) |
Non-resident Deer |
$150 |
|
-20 |
($3,000) |
Non-resident Elk |
$250 |
|
-20 |
($5,000) |
Resident Deer |
|
$10 |
468 |
$4,680 |
Resident Elk |
|
$15 |
720 |
$10,800 |
Non-resident Deer |
|
$75 |
44 |
$3,300 |
Non-resident Elk |
|
$125 |
40 |
$5,000 |
TOTAL |
($10,220) |
Revenue summary. Table 4 provides a summary of the revenue impact of the amended bill.
Table 4 - Revenue Summary |
State Fund |
FY 1998-99 |
FY 1999-2000 |
Deer and elk hunting license |
Wildlife Cash Fund |
0 |
$4,970,785 |
Search and Rescue surcharge |
Search and Rescue Fund |
$42,000 |
$18,000 |
Rescue and Education Stamp |
Wildlife Cash Fund and Wildlife Management Public Education Cash Fund |
$538,500 |
$1,260,000 |
Deer license auction |
Sheep and Goat Cash Fund Exempt |
$9,500 |
$9,500 |
Deer license auction |
Wildlife Cash Fund |
$500 |
$500 |
Mobility-impaired license |
Wildlife Cash Fund |
0 |
($10,220) |
Total Revenue Impact |
|
$590,500 |
$6,269,005 |
TABOR Refund Impact
Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.
State Expenditures
The following paragraphs explain how this amended bill will affect state expenditures.
Local Big Game Management Advisory Committee (BGMAC). This amended bill creates an advisory committee for each of the 18 Division of Wildlife’s geographical areas. The advisory committees are to be formed during FY 1999-2000 and are to be repealed effective July 1, 2005, subject to legislative sunset review of advisory committees. The annual Wildlife Cash Fund expenditures starting in FY 1999-2000 are based upon the following assumptions:
• each committee will be comprised of 10 members;
• each committee will conduct 12 meetings per year;
• all 180 committee members will be reimbursed for travel expenses; and
• that each committee will annually require 1,632 hours (0.8 FTE) of division technical and administrative staff assistance.
Table 5 - Local Big Game Management Advisory Committee Wildlife Cash Fund Expenditures |
||
|
FY 1998-99 |
FY 1999-2000 |
Personal Services Wildlife Mgr III (grade 91, step 1) PERA/Medicare Total |
0 |
14.4 FTE - $516,845 66,931 $583,776 |
Vehicle Lease - 14.0 units at $405 per month and 12,000 miles at $0.13 per mile |
0 |
89,880 |
Operating and Travel Expenses |
0 |
45,920 |
Furniture, Computer, Phone |
0 |
63,000 |
Total Expenses |
0 |
14.4 FTE - $782,576 |
Landowner preference program. The provisions of this amended bill will require the Division of Wildlife to develop and administer a new landowner preference program. This new program will affect Wildlife Cash Fund expenditures based upon the following assumptions:
• that the Wildlife Commission will issue rules and an administrative process by December 1, 1998;
• that the division will start program development in January 1999 and complete the program development by January 2000;
• that the division will commence program administration in January 2000;
• that the program will be effective for the fall hunting season of 2000;
• game habitat in each of the 175 game management units (GMU) in the state for deer, elk, and antelope will be classified and used as the base for determining landowner contributions;
• that division staff will require approximately 18 months to classify habitat in these GMUs and evaluate landowner contributions;
• that division staff will serve as a hearing officer for landowner appeals, assist with regulation development, develop and maintain landowner preference databases, evaluate applications, and assist the public in all GMUs;
• that the division will evaluate 6,000 landowner registration responses annually;
• that agents will sell 15,000 licenses annually under the voucher system;
• that the Colorado Outdoor Recreation Information System (CORIS) will be modified to capture and evaluate landowner information, data on private and public lands, and habitat classification; and
• CORIS will be further modified to fully automate the license allocation and drawing process.
Table 6 provides a summary of the Division of Wildlife expenditures for FY 1998-99 and FY 1999-2000 to support the provisions of this bill.
Table 6 - Landowner Preference Wildlife Cash Fund Expenditures |
|||
|
FY 1998-99 |
FY 1999-2000 |
FY 2000-01 |
Personal Services Wildlife Mgr III (grade 91, step 1) Wildlife Mgr V (grade 105, step 1) Admin Asst II (grade 68, step 1) Subtotal PERA/Medicare Total |
3.6 FTE - $129,211 0.5 FTE - 25,254 1.5 FTE - 30,816 $185,281 23,994 $209,275 |
5.1 FTE - $183,049 0.5 FTE - 25,254 1.5 FTE - 30,816 $239,124 30,967 $270,091 |
3.0 FTE - $107,676 13,944 $121,620 |
Operating/Travel Expenses |
15,510 |
31,020 |
9,124 |
Vehicle Leases/Mileage |
12,840 |
12,840 |
19,260 |
Forms, Licenses, Applications |
18,188 |
18,187 |
0 |
CORIS Programming and Setup |
39,665 |
39,665 |
0 |
CORIS Equipment Upgrades |
0 |
12,300 |
0 |
Office Furniture/Computers |
24,080 |
0 |
0 |
Total Expenses |
5.6 FTE - $319,558 |
7.1 FTE - $384,103 |
3.0 FTE - $150,004 |
Wildlife Management Public Education Council. The provisions of this amended bill will require the Division of Wildlife to establish the Wildlife Management Public Education Council. This new program will affect Wildlife Management Public Education Cash Fund expenditures based upon the following assumptions:
• that the Rescue and Education Stamp will be effective January 1, 1999 for a half-year impact on FY 1998-99;
• that the stamp will be valid for a calendar year and not a one-year period of time;
• the division will contract services to design and print the stamps;
• the council will be formed after January 1, 1999 and will conduct monthly meetings; and
• the council will contract services to conduct public relations and educational programs.
Table 7 provides a summary of the Wildlife Management Public Education Cash Fund expenditures for FY 1998-99 and FY 1999-2000 to support the provisions of this bill.
Table 7 - Wildlife Management Public Education Council Wildlife Management Public Education Cash Fund Expenditures |
||
|
FY 1998-99 |
FY 1999-2000 |
Design and Print Rescue and Education Stamps |
$321,000* |
$309,000* |
Stamp Distribution and Administration |
163,592 |
209,340 |
Contracted Administrative Support |
10,500 |
$21,000 |
Develop RFP for Public Services |
25,000 |
0 |
Council Meeting/Operating Expenses |
18,408 |
36,816 |
Contracted Public Information and Educational Services |
0 |
683,844 |
Total Expenses |
$538,500 |
$1,260,000 |
*These amount would initially be loaned by the Wildlife Cash Fund to the council during FY 1998-99 and FY 1999-2000 to support the cost of designing and printing the stamps. These amounts would be repaid by the council as sufficient revenue is generated through the sale of Rescue and Education Stamps
Expenditure summary. Table 8 provides a summary of the expenditure impact of the amended bill.
Table 8 - Expenditure Summary |
State Fund |
FY 1998-99 |
FY 1999-2000 |
BGMAC |
Wildlife Cash Fund |
0 |
14.4 FTE - $782,576 |
Landowner Preference |
Wildlife Cash Fund |
5.6 FTE - 319,558 |
7.1 FTE - 384,103 |
Education Council |
Public Education Cash Fund |
538,500 |
1,260,000 |
Revenue Impact |
|
5.6 FTE - $858,058 |
21.5 FTE - $2,426,679 |
Spending Authority
This fiscal note would imply the Department of Natural Resources, Division of Wildlife, would require a Wildlife Cash Fund spending authority increase of 5.6 FTE and $319,558, and a Wildlife Management Public Education Cash Fund appropriation of $538,500 for FY 1998-99.
Departments Contacted
Natural Resources