Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR

Silva

DATE TYPED

2/2/2004

HB

417

 

SHORT TITLE

Nonresident and Temporary Game and Fish Licenses

SB

 

 

 

ANALYST

Aguilar

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

$450.0

$1,500.0

Recurring

Game Protection Fund

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

Relates to SB2

 

SOURCES OF INFORMATION

Report of the Legislative Finance Committee to the Forty-Sixth Legislature, Second Session, January 2004 for Fiscal Year 2004 – 2005, pp. 377 – 381.

 

Responses Received From

Department of Game and Fish

Taxation and Revenue Department

 

SUMMARY

 

Synopsis of Bill

 

House Bill 417 raises license fees for certain non-resident and temporary hunting and fishing licenses. 

 

The effective date of the provisions of this act is April 1, 2005.

 

Significant Issues

 

The Department of Game and Fish generates the majority of its revenue through the sale of hunting and fishing licenses, with fees fixed by statute.  Inflation and appropriations for non-recurring projects have caused overall expenditures to surpass revenues, reducing cash balances in the fund.  This has produced a situation where increasing revenue has become a priority.  Increasing license fees is one way the department has identified to generate additional revenue.

 

In recent years, the game protection fund has provided opportunities for the department to complete several projects, such as the construction of its headquarters building, construction of fish hatcheries and the purchase of Eagle Nest Lake.  Current estimates show that the fund is declining to a critical level.  Revenues to the department are off from October through March requiring a minimum cash balance of $6 million.  Department estimates indicate the fund may fall below this threshold by the end of FY06.

 

            Source:  New Mexico Department of Game and Fish                            

 

The license fees amended in this bill are sold during the hunting and fishing license year that runs from April 1st to March 31st.  To allow for production of printed materials and updates to computer systems as well as proper notification to the public, the effective date of this legislation is April 1, 2005.

 

FISCAL IMPLICATIONS

 

The department reports that at current sales levels, the changes proposed in this bill will generate an additional $1.5 million in annual license revenue. This will allow the agency to continue operating at current levels until fiscal year 2007.  Without the proposed increase, current cash balances will only sustain the agency’s operations through fiscal year 2006.

 

OTHER SUBSTANTIVE ISSUES

 

The agency notes that the additional revenue generated by this license fee adjustment will forestall the need for an overall increase in fees for both residents and nonresidents, but will not eliminate the need to make adjustments to the agency’s fee structure in the future.

 

PA/yr