Supplement: WV HB4386 | 2022 | Regular Session | Natural Resources, WV Division of
For additional supplements on West Virginia HB4386 please see the Bill Drafting List
Bill Title: Expand the scope of hunting, fishing, and trapping benefits provided to former members of the United States Armed forces
Status: 2022-02-16 - To House Finance [HB4386 Detail]
Download: West_Virginia-2022-HB4386-Natural_Resources_WV_Division_of.html
The purpose of this bill is to allow all resident West Virginia honorably discharged armed forces veterans a 75 % discount off the purchase of licensure for lifetime hunting and fishing privileges. While it is unknown which option for lifetime licensure would be chosen, for the purposes of the calculations herein, it is assumed that eligible veterans would take advantage of the Class AB-L license (resident lifetime hunting, trapping, and fishing privileges). There are an estimated 130,536 resident West Virginia armed forces veterans. An estimated 13,067 of these individuals would be eligible for and may likely take advantage of this benefit. The fiscal impact of providing a 75% reduced lifetime hunting and fishing license (assuming the individuals chose the Class AB-L license, regularly priced at $805) would equate to a loss of $603.75 per product sold. This totals to $7,889,201.25 in the first year. Because these individuals and future veteran members of the Armed Forces may also take advantage of the discount, losses to West Virginia DNR could equate to an additional $102,033.75 in lost license sales revenue per year after year 1. In addition, WVDNR would lose the interest gained off this principle. The first-year loss is estimated at $575,911 based on the 20 year average rate of return of 7.3%. Interest losses would continue to increase each year as more veterans took advantage of the discount.
Estimated number of Veterans in West Virginia = 130,536 Estimated number of WV Veterans honorably discharged (130,536 X 91%) = 118,788 Est. WV participation rate in hunting and/or fishing = 22% Est. # of licensable veterans who hunt and/or fish = 118,788 X 22% = 26,133 Est. number of eligible veterans who would purchase product = 50% of 26,133 = 13,067 Est. lifetime license revenue lost per licensed sportsman = $603.75 (Class AB-L price of $805 reduced by 75%) Loss of revenue from a 75% discount of an AB-L license ($805 X -0.75) = -$603.75 Est. first-year annual license revenue loss from 13,067 discounts = 13,067 X -$603.75 = -$7,889,201 Est. number of new resident armed forces veterans in West Virginia = 1,524 Est. eligible new resident veterans who would purchase product annually = (22% of 1524) X 50% = 169 Est. recurring annual losses per eligible veteran purchasing product = $603.75 X169 = $102,033. Est. recurring Interest lost on first year principle = $7,889,201 X 0.073 = $575,911
Person submitting Fiscal Note: Amanda Morris
Email Address: amanda.l.morris@wv.gov
Bill Title: Expand the scope of hunting, fishing, and trapping benefits provided to former members of the United States Armed forces
Status: 2022-02-16 - To House Finance [HB4386 Detail]
Download: West_Virginia-2022-HB4386-Natural_Resources_WV_Division_of.html
FISCAL NOTE
| Date Requested: January 25, 2022 Time Requested: 04:09 PM |
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FUND(S):
3200, 8707Sources of Revenue:
Special FundLegislation creates:
Decreases Existing RevenueFiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to allow all resident West Virginia honorably discharged armed forces veterans a 75 % discount off the purchase of licensure for lifetime hunting and fishing privileges. While it is unknown which option for lifetime licensure would be chosen, for the purposes of the calculations herein, it is assumed that eligible veterans would take advantage of the Class AB-L license (resident lifetime hunting, trapping, and fishing privileges). There are an estimated 130,536 resident West Virginia armed forces veterans. An estimated 13,067 of these individuals would be eligible for and may likely take advantage of this benefit. The fiscal impact of providing a 75% reduced lifetime hunting and fishing license (assuming the individuals chose the Class AB-L license, regularly priced at $805) would equate to a loss of $603.75 per product sold. This totals to $7,889,201.25 in the first year. Because these individuals and future veteran members of the Armed Forces may also take advantage of the discount, losses to West Virginia DNR could equate to an additional $102,033.75 in lost license sales revenue per year after year 1. In addition, WVDNR would lose the interest gained off this principle. The first-year loss is estimated at $575,911 based on the 20 year average rate of return of 7.3%. Interest losses would continue to increase each year as more veterans took advantage of the discount.
Fiscal Note Detail
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2022 Increase/Decrease (use"-") |
2023 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 | -7,889,201 | -677,944 |
Explanation of above estimates (including long-range effect):
Estimated number of Veterans in West Virginia = 130,536 Estimated number of WV Veterans honorably discharged (130,536 X 91%) = 118,788 Est. WV participation rate in hunting and/or fishing = 22% Est. # of licensable veterans who hunt and/or fish = 118,788 X 22% = 26,133 Est. number of eligible veterans who would purchase product = 50% of 26,133 = 13,067 Est. lifetime license revenue lost per licensed sportsman = $603.75 (Class AB-L price of $805 reduced by 75%) Loss of revenue from a 75% discount of an AB-L license ($805 X -0.75) = -$603.75 Est. first-year annual license revenue loss from 13,067 discounts = 13,067 X -$603.75 = -$7,889,201 Est. number of new resident armed forces veterans in West Virginia = 1,524 Est. eligible new resident veterans who would purchase product annually = (22% of 1524) X 50% = 169 Est. recurring annual losses per eligible veteran purchasing product = $603.75 X169 = $102,033. Est. recurring Interest lost on first year principle = $7,889,201 X 0.073 = $575,911
Memorandum
Person submitting Fiscal Note: Amanda Morris
Email Address: amanda.l.morris@wv.gov
