LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

March 16, 2009

TO:	Honorable Mark Homer, Chair, House Committee on Culture, Recreation & Tourism
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB918 by Dutton (Relating to general fishing license fees for residents 65 years old or over.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB918, As Introduced: an impact of $0 through the biennium ending August 31, 2011.

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 65 or older be waived. The bill would take immediate effect with two-thirds the vote of all members. Otherwise, the bill would take effect September 1, 2009.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010	$0
2011	$0
2012	$0
2013	$0
2014	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue (Loss) from Game,Fish,Water Safety Ac 9
2010	($1,897,463)
2011	($1,897,463)
2012	($1,897,463)
2013	($1,897,463)
2014	($1,897,463)

Fiscal Analysis

The Texas Parks and Wildlife Department would recognize a net loss of revenue of an estimated $1,897,463 per fiscal year in the General Revenue-Dedicated Game, Fish and Water Safety Account No. 9. This analysis is based upon licenses purchased by residents 65 years old or over in fiscal year 2008 and does not take into account any additional revenue loss that may occur in future years due to the aging of the population, which would result in an increasing number of seniors who would have license fees waived.

Methodology

The following analysis is based upon the assumption the numbers of licenses purchased by residents aged 65 and over remains at fiscal year 2008 levels.

General Fishing Licenses:
The per license fee and number of resident senior fishing license holders in fiscal year 2008 are as follows:

Senior Freshwater Fishing: $11 @ 47,643 = $524,073
Senior Saltwater Fishing: $16 @ 11, 914 = $190,624
Senior All water Fishing: $21 @ 22,182 = $465,822

Retail businesses (license agents) charge a fee of approximately 4 percent per license; resulting in a net loss to TPWD of $1,133,298 in general fishing license revenue.

In addition, in fiscal year 2008 there were approximately 145 single day licenses sold to seniors at $10 per license resulting in a net loss of $1,392 after the agent fee deduction of 4 percent.

Combo Hunting and Fishing Licenses:

The fiscal year 2008 distribution for "combo" hunting and fishing licenses are as follows:

Senior General Hunting & Freshwater Fishing: $15 @ 15,920 = $238,800
Senior General Hunting & Saltwater Fishing: $20 @ 688 = $13,760
Senior General Hunting and All water Fishing: $25 @ 3,439 = $85,975

This results in a net loss of revenue of $209,523 after taking the 4 percent agent fee into account and assuming that those seniors who purchased the combo (hunting and fishing) license would still desire to purchase hunting licenses (Senior General Hunting License $6 @ 20,047 = $120,282 multiplied by 96 percent = $115,471).

Super Combo Hunting and Fishing Licenses:

The “Super Combo” includes a Resident Hunting License, a Resident Fishing License and all five state stamp endorsements (archery, freshwater fishing, saltwater fishing with a red drum tag, upland game bird, and migratory game bird).

Senior Super Combo $30 @ 40,021 = $1,200,630

TPWD surveys Super Combo holders on which "activities" they used. During fiscal year 2008, 48 percent of holders responded to using the fishing "portion" of the combo license. This would result in a net loss of revenue to TPWD of: $1,200,630 multiplied by 48 percent multiplied by 96 percent (to take into account the 4 percent agent fee) for a net loss of $553,250.

Summary:

In total, the estimated revenue loss per fiscal year to the General Revenue-Dedicated Game, Fish and Water Safety Account No. 9 is as follows:

General Fishing: $1,133,298
Single Day: $ 1,392
Combo: $209,523
Super Combo: $553,250

Total: $1,897,463

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

802 Parks and Wildlife Department

LBB Staff:

JOB, WK, ZS, TB