State of Michigan

DEPARTMENT OF NATURAL RESOURCES

Lansing

JENNIFER M. GRANHOLM

governor

REBECCA  A. HUMPHRIES

director

 


 

 

BILL ANALYSIS

 

BILL NUMBER:

House Bill 4563, AS INTRODUCED

TOPIC:

Require waiver of state recreational and license fees for certain veterans

SPONSOR:

Representative Goeff Hansen

CO-SPONSORS:

None

COMMITTEE:

Tourism, Outdoor Recreation and Natural Resources

Analysis Done:

April 3, 2009

POSITION

The Department of Natural Resources (Department) is opposed to this legislation.

PROBLEM/BACKGROUND

Currently, disabled veterans entitled to receive benefits at the 100 percent rate, who are not legally blind, may purchase hunting and fishing licenses at the discounted senior rate (60 percent).  They currently do not receive a discount for entry to state parks or for camping in state parks or state forests.  Former prisoners of war (POW) do not receive any type of discount, unless they qualify for the disabled veteran discount.

DESCRIPTION OF BILL

House Bill 4563 would amend the Natural Resources and Environmental Protection Act (NREPA) to allow resident veterans who were permanently and totally disabled as a result of military service and entitled to veterans’ benefits at the 100 percent rate, for a disability other than blindness, or a resident who has been a POW, to obtain any hunting and fishing license under Part 435 of NREPA free of charge.  In addition, the Department would be required to waive the fees for camping in state forests and state parks and entry to state parks for these veterans.

Under Section 43546 of NREPA, the Department would be reimbursed for each free hunting or fishing license equivalent to the cost of a full price license through a General Fund appropriation.

SUMMARY OF ARGUMENTS

Pro

Disabled veterans and former POWs have paid a high price for serving their country and should receive this small measure of compensation.

Con

Revenue would be slightly decreased by allowing selected veterans reduced fees for hunting and fishing, and free access to camping and state parks.  Most of these activities are funded exclusively with user fees and any decrease in revenue may result in less services being provided.

The Department is required to certify annually, to the United States Fish and Wildlife Service, the number of hunting and fishing licenses sold that resulted in net revenue greater than $1 to the Department.  This number is used in determining the amount of the federal apportionment awarded to the state under the Dingell-Johnson and Pittman-Robertson programs.  The free licenses would not be included in the certified number, so the federal apportionment would be reduced.

Discussions with Veterans Administration officials reveal that the current number of eligible Michigan veterans (disabled and POW) is unknown.  Additionally, there is no verification process currently in place to determine actual eligibility.

The Department may demand proof of eligibility for these free licenses and permits, but it is unclear how the Department would be able to determine the eligibility for on-line purchases or for making camping reservations through the Central Reservation System (CRS).

Camping in state forests is based on the honor system with customers depositing their correct fees in an unmanned receptacle.  Verification of eligibility would become an enforcement issue, along with payment compliance of ineligible users.

This bill provides General Fund reimbursement to the Department for the free hunting and fishing licenses, as well as a continuation of reimbursement for the senior license discount.  In FY 2002, Executive Order 2001-9 removed the funding for this reimbursement from the Department’s budget.  Since this funding has yet to be reinstated in the Department’s budget, it is highly unlikely that reimbursement for the free licenses would occur.

FISCAL/ECONOMIC IMPACT

Are there revenue or budgetary implications in the bill to the --

(a)     Department

Budgetary:

There may be a cost to re-program the Retail Sales System (RSS) and CRS systems to accommodate these changes.

Revenue:   

A slight negative revenue impact would occur to the extent that qualifying disabled veterans or former POWs that currently purchase hunting and fishing licenses, state park motor vehicle permits, or camp in state parks or state forests at full price, choose to take advantage of this benefit.  Current full price hunting and fishing fees are $15 in most cases or $6 at the senior rate.  State park motor vehicle permits for residents are $24 for an annual permit and $6 for a daily permit.  Seniors may purchase an annual permit for $6.  Camping fees range from approximately $10 to $33 per night.

 

Also, federal revenue would be lost.  In order for the state to receive federal Pittman-Robertson and Dingell-Johnson funding, net revenue of at least $1 must be received for each hunting and fishing license.  Based on FY 2008-09 reimbursement rates, the state would not be eligible to receive $14.42 per hunting license and $11.38 per fishing license for these free licenses.

Comments:

None

(b)     State

Budgetary:

None

Revenue:   

This bill would reduce revenue to self-supporting state agency programs.

Comments:

None

(c)     Local Government

Comments:

None

OTHER STATE DEPARTMENTS

Military and Veterans Affairs may have an interest in the bill.

ANY OTHER PERTINENT INFORMATION

None

ADMINISTRATIVE RULES IMPACT

Rules can be promulgated to provide for administration of the act.

 

 

_______________________________

Rebecca  A. Humphries

Director

 

_______________________________

Date

BSS/WLD/PRD/FMFM