State of Michigan

DEPARTMENT OF NATURAL RESOURCES

Lansing

JENNIFER M. GRANHOLM

governor

REBECCA  A. HUMPHRIES

director

 


 

 

BILL ANALYSIS

 

 

BILL NUMBER:

House Bill 5189 (As Introduced)

TOPIC:

Waiver of state recreation fees for certain veterans

SPONSOR:

Representative McDowell

CO-SPONSORS:

Representatives Meadows, Stahl, Donigan, Corriveau, Byrum, Lahti, Lindberg, Hood, Valentine, Garfield, Spade, Brown, Espinoza, Meisner, Polidori, Hansen, Ball, Mayes, Pastor, Young, Angerer, Ebli, Bennett, Vagnozzi, Clack, Sheltrown, Brandenburg and Gillard

COMMITTEE:

Military and Veterans Affairs and Homeland Security

Analysis Done:

October 2, 2007

POSITION

The Department of Natural Resources (Department) is opposed to the enactment of House Bill 5189.

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 of 60 percent.  They do not currently receive a discount for entry to state parks or for camping in state forests or state parks.

DESCRIPTION OF BILL

The bill 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 prisoner of war, to obtain free of charge, any hunting and fishing license under Part 435 of NREPA.  In addition, the Department would be required to waive the fees for entry and camping in state parks and for state forest camping for these veterans.   

SUMMARY OF ARGUMENTS

Pro

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

Con

Revenue to the Department would be decreased by allowing selected veterans free access to hunting, fishing, camping, and state parks.  Most of these activities are funded almost exclusively by user fees, and any decrease in revenue may result in service reductions impacting all users.  Subsidizing a certain segment of society for altruistic reasons is a noble action.  However, if such a subsidy is proposed, there must also be a funding mechanism to accompany the proposal.  Reductions to the revenue streams of the Park Improvement Fund, the Game and Fish Protection Fund, and the Forest Recreation Fund negatively impacts all users, since it is the users who will be subsidizing this program through increased fees.  A more balanced approach to funding this program, along with any other similar "special" consideration for a target group, would be to provide for a funding source that is diversified beyond the user community.

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 to the Department.  This number is used in determining the amount of the federal apportionment awarded to the state under the Dingell Johnson - Pittman Robertson programs.  The free licenses would not be included in that 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 in order 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 eligibility for on-line purchases or for making camping reservations through the Central Reservation System.

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

FISCAL/ECONOMIC IMPACT

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

(a)     Department

Budgetary:

N/A

Revenue:   

A negative revenue impact would occur to the extent that qualifying disabled veterans or former prisoners of war currently purchase hunting and fishing licenses, parks motor vehicle permits, or camp in state parks or state forests and pay for the privilege of participating in those activities.  Current full price hunting and fishing fees are $15 in most cases, $6 at the senior citizens rate, which these veterans would be eligible to pay.  Parks motor vehicle permits are $24 for an annual pass and $6 for a daily pass, and camping fees primarily range from $10 to $33 per night.  The extent of the revenue impact is unknown since the number of people who would qualify for and take advantage of this benefit is unknown.

In addition, federal revenue would be lost.  In Fiscal Year 2004-2005, certified hunting and fishing licenses generated $8.50 and $10 respectively per license.  The free licenses would not qualify for the federal apportionment.

Comments:

N/A

(b)     State

Budgetary:

N/A

Revenue:   

Overall decline in revenues generated for self-supporting state agency programs.

Comments:

N/A

(c)     Local Government

Comments:

N/A

OTHER STATE DEPARTMENTS

None

ANY OTHER PERTINENT INFORMATION

This bill is virtually identical to HB 4303 introduced on February 20, 2007.

ADMINISTRATIVE RULES IMPACT

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

 

 

_______________________________

Rebecca  A. Humphries

Director

 

_______________________________

Date

PRD/FMFM/LED