LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 18, 2011 TO: Honorable Craig Estes, Chair, Senate Committee on Agriculture & Rural Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB550 by Dutton (Relating to an exemption to the requirement for a fishing license for residents of a certain age.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB550, As Engrossed: an impact of $0 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Parks and Wildlife Code to provide that general fishing license fees for residents aged 75 or older be waived. The bill would take immediate effect with a two-thirds vote of all members. Otherwise, the bill would take effect September 1, 2011. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 $0 2013 $0 2014 $0 2015 $0 2016 $0 All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGame,Fish,Water Safety Ac9 2012 ($356,400) 2013 ($423,760) 2014 ($503,851) 2015 ($599,078) 2016 ($712,304) Fiscal Analysis The Texas Parks and Wildlife Department estimates a revenue loss of $356,400 in fiscal year 2012, $423,760 in fiscal year 2013, $503,850 in fiscal year 2014, $599,078 in fiscal year 2015 and $712,304 in fiscal year 2016 in the General Revenue-Dedicated Game, Fish and Water Safety Account No. 9 would result from passage of this legislation. This analysis is based upon licenses and stamps purchased by residents 75 years or older in fiscal year 2010 and takes into account any additional revenue loss that may occur in future years due to the aging of the population, which results in an increase number of seniors who would have license fees waived. Methodology The following analysis is based upon the assumption that the number of licenses purchased by residents aged 75 and over remains at fiscal year 2010 levels. Revenue Loss Daily Fishing Licenses: The per license fee and number of resident senior fishing license holders in fiscal year 2010 are as follows: Senior One Day All water Fishing: $11 @ 374 = $4,114 Senior Two Day All water Fishing: $22 @ 19 = 418 $4,565 Retail business (license agents such as Wal-Mart) charge a fee of approximately 4% per license; resulting in a net revenue loss to TPWD of $4,565*96%= $4,382 General Fishing Licenses:The per license fee and number of resident senior fishing license holders in fiscal year 2010 are as follows: Senior Resident Freshwater Fishing: $12 @ 8,252 = $99,024 Senior Resident Saltwater Fishing: $17 @ 2,013 = 34,221 Senior Resident All water Fishing: $22 @ 3,357 = 73,854 $207,099 This would result in a net of license agent fee revenue loss of $207,099*96%=$198,815. Combo Hunting and Fishing Licenses: The per license fee and number of resident senior fishing license holders in fiscal year 2010 is as follows: Senior Combo Hunting and Freshwater Fishing: $16 @ 3,365 = $53,840 Senior Combo Hunting and Saltwater Fishing: $21 @ 167 = 3,507 Senior Combo Hunting and All water Fishing: $26 @ 674 = 17,524 $74,871 This would result in a net of license agent fee revenue loss of $74,871*96%= $71,876. Super Combo Hunting and Fishing Licenses: The Super Combo includes a resident hunting license, a resident fishing license and all hunting and fishing stamps (archery, upland, migratory hunting; freshwater and saltwater fishing stamps) The per license fee and number of resident senior fishing license holders in fiscal year 2010 is as follows: Senior Super Combo Package: $32 @ 6,735 = $215,520. This would result in a net of license agent fee revenue loss of $215,520*96%= $206,899. Revenue Gain General Hunting License ($7 per license): Assuming those seniors who purchased Combo and Super-Combo licenses (hunting and fishing) would still desire to hunt, TPWD would recognize a revenue gain. Senior Hunting License: (3,365+167+674+6,735) = 10,941 @ $7 = $76,587. This would result in a net of license agent fee revenue gain of $76,587*96%=$73,524. Hunting Stamps ($7 per stamp): Assuming those seniors who purchased the Super Combo Package would still desire to hunt the game requiring hunting stamps, TPWD would recognize a revenue gain. Through surveys TPWD asks Super Combo holders which "activities" (stamps) they used. This averages out to approximately 1.15 stamps per user. Hunting Stamps (in lieu of Super Combo): 6,735*1.15=7,745@ $7 = $54,217. This would result in a net of license agent fee revenue gain of $54,217*96%= $52,048. Summary: In total, the estimated net revenue loss per fiscal year to the General Revenue-Dedicated Game, Fish and Water Safety Account No. 9 is as follows: Daily Fishing: ($4,382) General Fishing: ($198,815) Combo: ($71,876) Super Combo: ($206,899) General Hunting: $73,524Hunting Stamps: $52,048Total: ($356,400) Growth Factor: The population of Texas is aging, resulting in an increasing population of seniors who would have their fishing license fee waived. In recent years, TPWD reports it has experienced a strong growth of seniors (75 and over) purchasing fishing licenses. Using the conservative growth rate of 18.90%, experienced from FY2009 to FY2010, this analysis applies this growth rate (compounding) each year in fiscal years 2013-2016. FY 2013, $356,400*1.189=$423,760; FY 2014, $423,760*1.189=$503,851; FY 2015, $503,851*1.189=$599,078; FY 2016, $599,079*1.189=$712,304.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
May 18, 2011
TO: Honorable Craig Estes, Chair, Senate Committee on Agriculture & Rural Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB550 by Dutton (Relating to an exemption to the requirement for a fishing license for residents of a certain age.), As Engrossed
TO: Honorable Craig Estes, Chair, Senate Committee on Agriculture & Rural Affairs
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB550 by Dutton (Relating to an exemption to the requirement for a fishing license for residents of a certain age.), As Engrossed
Honorable Craig Estes, Chair, Senate Committee on Agriculture & Rural Affairs
Honorable Craig Estes, Chair, Senate Committee on Agriculture & Rural Affairs
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB550 by Dutton (Relating to an exemption to the requirement for a fishing license for residents of a certain age.), As Engrossed
HB550 by Dutton (Relating to an exemption to the requirement for a fishing license for residents of a certain age.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB550, As Engrossed: an impact of $0 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB550, As Engrossed: an impact of $0 through the biennium ending August 31, 2013.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would amend the Parks and Wildlife Code to provide that general fishing license fees for residents aged 75 or older be waived. The bill would take immediate effect with a two-thirds vote of all members. Otherwise, the bill would take effect September 1, 2011.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 $0 2013 $0 2014 $0 2015 $0 2016 $0
2012 $0
2013 $0
2014 $0
2015 $0
2016 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGame,Fish,Water Safety Ac9 2012 ($356,400) 2013 ($423,760) 2014 ($503,851) 2015 ($599,078) 2016 ($712,304)
Fiscal Year Probable Revenue (Loss) fromGame,Fish,Water Safety Ac9 2012 ($356,400) 2013 ($423,760) 2014 ($503,851) 2015 ($599,078) 2016 ($712,304)
2012 ($356,400)
2013 ($423,760)
2014 ($503,851)
2015 ($599,078)
2016 ($712,304)
Fiscal Analysis
The Texas Parks and Wildlife Department estimates a revenue loss of $356,400 in fiscal year 2012, $423,760 in fiscal year 2013, $503,850 in fiscal year 2014, $599,078 in fiscal year 2015 and $712,304 in fiscal year 2016 in the General Revenue-Dedicated Game, Fish and Water Safety Account No. 9 would result from passage of this legislation. This analysis is based upon licenses and stamps purchased by residents 75 years or older in fiscal year 2010 and takes into account any additional revenue loss that may occur in future years due to the aging of the population, which results in an increase number of seniors who would have license fees waived.
Methodology
The following analysis is based upon the assumption that the number of licenses purchased by residents aged 75 and over remains at fiscal year 2010 levels. Revenue Loss Daily Fishing Licenses: The per license fee and number of resident senior fishing license holders in fiscal year 2010 are as follows: Senior One Day All water Fishing: $11 @ 374 = $4,114 Senior Two Day All water Fishing: $22 @ 19 = 418 $4,565 Retail business (license agents such as Wal-Mart) charge a fee of approximately 4% per license; resulting in a net revenue loss to TPWD of $4,565*96%= $4,382 General Fishing Licenses:The per license fee and number of resident senior fishing license holders in fiscal year 2010 are as follows: Senior Resident Freshwater Fishing: $12 @ 8,252 = $99,024 Senior Resident Saltwater Fishing: $17 @ 2,013 = 34,221 Senior Resident All water Fishing: $22 @ 3,357 = 73,854 $207,099 This would result in a net of license agent fee revenue loss of $207,099*96%=$198,815. Combo Hunting and Fishing Licenses: The per license fee and number of resident senior fishing license holders in fiscal year 2010 is as follows: Senior Combo Hunting and Freshwater Fishing: $16 @ 3,365 = $53,840 Senior Combo Hunting and Saltwater Fishing: $21 @ 167 = 3,507 Senior Combo Hunting and All water Fishing: $26 @ 674 = 17,524 $74,871 This would result in a net of license agent fee revenue loss of $74,871*96%= $71,876. Super Combo Hunting and Fishing Licenses: The Super Combo includes a resident hunting license, a resident fishing license and all hunting and fishing stamps (archery, upland, migratory hunting; freshwater and saltwater fishing stamps) The per license fee and number of resident senior fishing license holders in fiscal year 2010 is as follows: Senior Super Combo Package: $32 @ 6,735 = $215,520. This would result in a net of license agent fee revenue loss of $215,520*96%= $206,899. Revenue Gain General Hunting License ($7 per license): Assuming those seniors who purchased Combo and Super-Combo licenses (hunting and fishing) would still desire to hunt, TPWD would recognize a revenue gain. Senior Hunting License: (3,365+167+674+6,735) = 10,941 @ $7 = $76,587. This would result in a net of license agent fee revenue gain of $76,587*96%=$73,524. Hunting Stamps ($7 per stamp): Assuming those seniors who purchased the Super Combo Package would still desire to hunt the game requiring hunting stamps, TPWD would recognize a revenue gain. Through surveys TPWD asks Super Combo holders which "activities" (stamps) they used. This averages out to approximately 1.15 stamps per user. Hunting Stamps (in lieu of Super Combo): 6,735*1.15=7,745@ $7 = $54,217. This would result in a net of license agent fee revenue gain of $54,217*96%= $52,048. Summary: In total, the estimated net revenue loss per fiscal year to the General Revenue-Dedicated Game, Fish and Water Safety Account No. 9 is as follows: Daily Fishing: ($4,382) General Fishing: ($198,815) Combo: ($71,876) Super Combo: ($206,899) General Hunting: $73,524Hunting Stamps: $52,048Total: ($356,400) Growth Factor: The population of Texas is aging, resulting in an increasing population of seniors who would have their fishing license fee waived. In recent years, TPWD reports it has experienced a strong growth of seniors (75 and over) purchasing fishing licenses. Using the conservative growth rate of 18.90%, experienced from FY2009 to FY2010, this analysis applies this growth rate (compounding) each year in fiscal years 2013-2016. FY 2013, $356,400*1.189=$423,760; FY 2014, $423,760*1.189=$503,851; FY 2015, $503,851*1.189=$599,078; FY 2016, $599,079*1.189=$712,304.
The following analysis is based upon the assumption that the number of licenses purchased by residents aged 75 and over remains at fiscal year 2010 levels.
Revenue Loss
Daily Fishing Licenses:
The per license fee and number of resident senior fishing license holders in fiscal year 2010 are as follows:
Senior One Day All water Fishing: $11 @ 374 = $4,114
Senior Two Day All water Fishing: $22 @ 19 = 418
$4,565
Retail business (license agents such as Wal-Mart) charge a fee of approximately 4% per license; resulting in a net revenue loss to TPWD of $4,565*96%= $4,382
General Fishing Licenses:The per license fee and number of resident senior fishing license holders in fiscal year 2010 are as follows:
Senior Resident Freshwater Fishing: $12 @ 8,252 = $99,024
Senior Resident Saltwater Fishing: $17 @ 2,013 = 34,221
Senior Resident All water Fishing: $22 @ 3,357 = 73,854
$207,099
This would result in a net of license agent fee revenue loss of $207,099*96%=$198,815.
Combo Hunting and Fishing Licenses:
The per license fee and number of resident senior fishing license holders in fiscal year 2010 is as follows:
Senior Combo Hunting and Freshwater Fishing: $16 @ 3,365 = $53,840
Senior Combo Hunting and Saltwater Fishing: $21 @ 167 = 3,507
Senior Combo Hunting and All water Fishing: $26 @ 674 = 17,524
$74,871
This would result in a net of license agent fee revenue loss of $74,871*96%= $71,876.
Super Combo Hunting and Fishing Licenses:
The Super Combo includes a resident hunting license, a resident fishing license and all hunting and fishing stamps (archery, upland, migratory hunting; freshwater and saltwater fishing stamps)
The per license fee and number of resident senior fishing license holders in fiscal year 2010 is as follows:
Senior Super Combo Package: $32 @ 6,735 = $215,520.
This would result in a net of license agent fee revenue loss of $215,520*96%= $206,899.
Revenue Gain
General Hunting License ($7 per license):
Assuming those seniors who purchased Combo and Super-Combo licenses (hunting and fishing) would still desire to hunt, TPWD would recognize a revenue gain.
Senior Hunting License: (3,365+167+674+6,735) = 10,941 @ $7 = $76,587.
This would result in a net of license agent fee revenue gain of $76,587*96%=$73,524.
Hunting Stamps ($7 per stamp):
Assuming those seniors who purchased the Super Combo Package would still desire to hunt the game requiring hunting stamps, TPWD would recognize a revenue gain. Through surveys TPWD asks Super Combo holders which "activities" (stamps) they used. This averages out to approximately 1.15 stamps per user.
Hunting Stamps (in lieu of Super Combo): 6,735*1.15=7,745@ $7 = $54,217.
This would result in a net of license agent fee revenue gain of $54,217*96%= $52,048.
Summary:
In total, the estimated net revenue loss per fiscal year to the General Revenue-Dedicated Game, Fish and Water Safety Account No. 9 is as follows:
Daily Fishing: ($4,382) General Fishing: ($198,815) Combo: ($71,876) Super Combo: ($206,899) General Hunting: $73,524Hunting Stamps: $52,048Total: ($356,400)
Growth Factor: The population of Texas is aging, resulting in an increasing population of seniors who would have their fishing license fee waived. In recent years, TPWD reports it has experienced a strong growth of seniors (75 and over) purchasing fishing licenses. Using the conservative growth rate of 18.90%, experienced from FY2009 to FY2010, this analysis applies this growth rate (compounding) each year in fiscal years 2013-2016. FY 2013, $356,400*1.189=$423,760; FY 2014, $423,760*1.189=$503,851; FY 2015, $503,851*1.189=$599,078; FY 2016, $599,079*1.189=$712,304.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 802 Parks and Wildlife Department
802 Parks and Wildlife Department
LBB Staff: JOB, SZ, ZS, TB, KM
JOB, SZ, ZS, TB, KM