Presenter: Gene McCarty
Commission Agenda Item No. 9
Super-Combination License Rules
Stamp Revenue Allocation
I. Executive Summary: This item presents the recommended adoption of a proposed rule that defines the methodology used to calculate the proportional allocation of stamp revenue from the sale of the super-combination hunting and fishing license package.
II. Discussion: An audit finding by the State Auditor's Office in April of 2006 recommended that the department define the methodology used to allocate revenue from the sale of super-combination hunting and fishing licenses to dedicated stamp funds. Accordingly, staff was authorized at the April 2006 meeting of the Finance Committee to publish a proposed rule in the Texas Register for public comment. The proposed rule (located at Exhibit A) appeared in the July 21, 2006, issue of the Texas Register (31 TexReg 5760). A summary of public comment will be presented at the time of the meeting.
III. Recommendation: Staff recommends that the Texas Parks and Wildlife Commission adopt the following motion:
"The Texas Parks and Wildlife Commission adopts new §53.130, concerning License Revenue Allocation, with changes as necessary to the proposed text as published in the July 21, 2006, issue of the Texas Register (31 TexReg 5760)."
Attachments – 1
- Exhibit A – Super-Combination License Revenue Allocation Rules
Commission Agenda Item No. 9
Super-Combination License Revenue Allocation Rules
The Texas Parks and Wildlife Department (the department) proposes new §53.130, concerning Super-combination License Revenue Allocation. The proposed new rule would establish a methodology for determining the allocation of revenues from the sale of stamp endorsements (stamps) that are part of the super-combination hunting and fishing license package and the senior super-combination hunting and fishing license package.
Under Parks and Wildlife Code, Chapter 43, no person may fish in saltwater without having purchased a saltwater fishing stamp, no person may fish in public freshwater without having purchased a freshwater fishing stamp, no person may hunt a migratory game bird without having purchased a migratory game bird stamp, no person may hunt an upland game bird without having purchased an upland game bird stamp, and no person may hunt deer, turkey, or javelina during an archery-only season without having purchased an archery stamp.
Under Parks and Wildlife Code, §11.302, all revenue received from the sale of all types of hunting licenses, fishing licenses, and stamps must be placed in the Game, Fish, and Water Safety Account. Parks and Wildlife Code, Chapter 43, further specifies how the department deposits and spends the proceeds from the sale of each type of stamp. Under §43.405, the net receipts from the sale of saltwater fishing stamps shall be spent for coastal fisheries enforcement and management. Under §43.656, the net proceeds from the sale of the migratory game bird stamp may be used only for the management of and research concerning migratory game birds; the acquisition, lease, or development of migratory game bird habitats; contracts, donations, and grants; and only in a manner that addresses the needs of migratory birds in this state. Under §43.658, the net proceeds from the sale of the upland game bird stamp may be used only for the management of and research concerning upland game birds; the acquisition, lease, or development of upland game bird habitats; contracts, donations, and grants; and only in a manner that addresses the needs of upland game birds in this state. Under §43.805, the net receipts from freshwater fishing stamp sales may be spent only for the repair, maintenance, renovation, or replacement of freshwater fish hatcheries in this state; the purchase of game fish that are stocked into the public water of this state; or the restoration, enhancement, or management of freshwater fish habitats. The net proceeds from the archery stamp must be deposited in the Game, Fish, and Water Safety Account and may be spent for any purpose authorized for that account. As a result, the net proceeds from the sale of each stamp, except for the archery stamp, are to be used in a way that is directly related to the type of stamp sold.
Prior to 1995, stamps had to be purchased separately from hunting and fishing licenses, making it an easy matter for the department to determine from direct sales how much revenue should be placed in each stamp fund. When stamps are sold separately, the amount of net proceeds placed in each stamp fund is a function of the price of the stamp and the popularity of the stamp. In 1996 the department created the super-combination hunting and fishing license as an option for customers to obtain the hunting license, the fishing license, and all required stamps in one package. Under Parks and Wildlife Code, Chapter 50, all combination licenses must be sold at less than the combined cost of the individual licenses, permits, or stamps included in the package. The super-combination license package is very popular, but because it is required by statute to be discounted, the department must allocate revenue to respective stamp accounts according to a formula.
For purposes of discussion, all figures provided are based on the current prices of the super-combination license package and the licenses and stamps contained in that package, but the proposed formula would be the same for the senior super-combination package. The undiscounted value of all items contained in a super-combination license package is $82: hunting license ($23), fishing license ($23), saltwater stamp ($10), freshwater stamp ($5), upland game bird stamp ($7), migratory game bird stamp ($7), and archery stamp ($7). The sale price of the super-combination license package is $64, or approximately 78% of the face value of the licenses and stamps contained in the package.
Under the proposed new rule, the discount for each of the two licenses in the super combination package (i.e. a hunting license and a fishing license), for purposes of determining the eventual allocation of stamp revenue, would be established at 10%. Therefore the allocation of stamp revenue would be $20.70 for each stamp, using current prices ($23 X .90). Thus, for each super-combination license package sold, the department would deposit $41.40 ($20.70 X 2) in the Game, Fish, and Water Safety Account as revenue from the sale of hunting and fishing licenses. The remaining revenue ($22.60) then would be divided and allocated among the stamp accounts within the Game, Fish, and Water Safety Account by means of a formula. In an effort to ensure that net proceeds placed in each stamp account continues to be a function of the price of the stamp and the popularity of each stamp, the formula would use the price of each stamp and the number of persons believed to be engaging in the activity for which the stamp is required to develop a weighted utilization factor for each stamp, which then would be used to calculate the relationship of each stamp’s weighted utilization factor to total stamp weighted utilization. This value would represent a relative utilization for each stamp, which would then be multiplied by the stamp revenue ($22.60) to yield the amount to be allocated to each stamp account, less a proportional amount representing any commission or collection cost. The department would determine the utilization of each stamp by means of an annual survey of the hunting and fishing habits of super-combination license users.
2. Fiscal Note.
Gene McCarty, Deputy Executive Director for Administration has determined that for each of the first five years that the repeals as proposed are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the proposed rule, as the rule does not affect revenues or expenses for any unit of government.
3. Public Benefit/Cost Note.
Gene McCarty, Deputy Executive Director for Administration also has determined that for each of the first five years the rule is in effect:
(A) The public benefit anticipated as a result of enforcing or administering the rule as proposed will be the proper allocation of revenue from the sale of super-combination hunting and fishing license packages to individual stamp accounts.
(B) There will be no adverse economic effect on small businesses, microbusinesses, or persons required to comply with the rule as proposed, as the rule affects only the department.
(C) The department has not drafted a local employment impact statement under the Administrative Procedures Act, §2001.022, as the agency has determined that the rule as proposed will not impact local economies.
(D) The department has determined that there will not be a taking of private real property, as defined by Government Code, Chapter 2007, as a result of the proposed rule.
(E) The department has determined that Government Code, §2001.0225 (Regulatory Analysis of Major Environmental Rules) does not apply to the proposed rule.
4. Request for Public Comment.
Comments on the proposed rule may be submitted to Gene McCarty, Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas, 78744; (512) 389-4651 (e-mail: firstname.lastname@example.org).
5. Statutory Authority.
The new rule is proposed under Parks and Wildlife Code, §50.002, which authorizes the commission to establish fees for combination licenses.
The proposed new rule affects Parks and Wildlife Code, Chapter 50.
§53.130. Super-Combination License Revenue Allocation.
(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Gross fishing license receipts—the gross receipts received from the sale of the fishing license included within a super-combination package and shall equal 90 percent of the original price of the fishing license in the package.
(2) Gross hunting license receipts—the gross receipts received from the sale of the hunting license included within a super-combination package and shall equal 90 percent of the original price of the hunting license in the package.
(3) Gross license receipts—the aggregate of the gross hunting license receipts and the gross fishing license receipts.
(4) Gross receipts—the total amount received from the sale of a super-combination license package before any commission or any other collection cost is deducted.
(5) Gross stamp receipts—the gross receipts from the sale of stamps included in the super combination license package.
(6) License—the hunting license and fishing license included in the super-combination license package.
(7) Net receipts of each license or stamp included in the super-combination license package—the gross fishing license receipts or gross hunting license receipts or gross stamp receipts, less any commission and/or other collection cost allocated to that license or stamp.
(8) Original price—the price of a license or stamp if sold separately rather than as part of a package.
(9) Purchaser utilization—the use of a stamp included in the super-combination license package by the purchaser of a super-combination license package.
(10) Stamp—any stamp included in the super-combination license package.
(11) Super-combination license package (package)—those licenses and stamps listed in §53.3(7) and (8) of this title (relating to Combination Hunting and Fishing License Packages).
(b) The amount of gross stamp receipts shall equal the difference between gross receipts and gross license receipts.
(c) Gross stamp receipts shall be allocated to each stamp in the package by means of a relative weighting calculated by using both the original price of the stamp and purchaser utilization as established by annual survey.
(d) Any commission and any other collection cost related to the sale of a package shall be allocated to each license and stamp included in the package in a manner proportional to the gross receipts of that item relative to the total gross receipts of the package.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency’s authority to adopt.
Issued in Austin, Texas, on