NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Leavell

 

DATE TYPED:

03/05/03

 

HB

 

 

SHORT TITLE:

Governor’s Deer Enhancement Permits

 

SB

560/aSFl #1

 

 

ANALYST:

Valenzuela

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$0.1

See Narrative

 

 

Recurring

Game Protection Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

$0.1

See Narrative

$0.1

Recurring

Game Protection Fund

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

Department of Game and Fish

 

SUMMARY

 

     Synopsis of Senate Floor Amendment

 

The Senate Floor #1 amendment to Senate Bill 560 changes the name of the permits from the Governor’s Deer Enhancement Permit to the Lieutenant Governor’s Deer Enhancement Permit.

 

     Synopsis of Bill

 

Senate Bill 560 would authorize the State Game Commission to sale two deer licenses, one through auction (highest bidder) and the other through lottery (raffle), and use the revenue to complete deer restoration or management projects.  The bill provides that the auction or lottery be conducted by DGF or by an incorporated nonprofit organization dedicated to conservation of wildlife. The revenue would be deposited into the Game Protection Fund.

 

     Significant Issues

 

The big game enhancement fund exists in statute for elk and bighorn sheep, in similar manner as that proposed in this bill. The auction and raffles have been very successful in generating additional revenue for these enhancement projects.

 

The bighorn sheep permits serve as an example.  For the past three years, these licenses have been highly sought after, as measured by the prices paid in auction and lottery. For 2000, the auction permit brought in $85,000 while the lottery was sold for $40,000.  For 2001, the auction permit brought in $75,000 while the lottery was sold for $45,000.  For 2002, the auction permit brought in $157,500 while the lottery was sold for $75,000.

 

FISCAL IMPLICATIONS

 

Senate Bill 560 appropriates revenue generated from the auction and lottery to DGF. DGF approximates the annual at $35.0. This estimate is based on the following assumptions:

 

1.   Amounts that elk and bighorn sheep enhancement permits have brought in recent years

2.   Comparative abundance of trophy class deer vs. elk and bighorn sheep in the state

3.   Availability of deer permits in NM and other states

4.   Anticipated desire of hunters for special Governor’s deer permits.

 

ADMINISTRATIVE IMPLICATIONS

 

The administrative impact is minimal on the department. DGF, in the past, has contracted out the function of auction and lottery sale to an incorporated nonprofit, who is paid through a 10 percent commission on the sales.

 

MFV/prr