BILL NUMBER: AB 3042 CHAPTERED 09/27/02 CHAPTER 966 FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2002 APPROVED BY GOVERNOR SEPTEMBER 26, 2002 PASSED THE ASSEMBLY AUGUST 30, 2002 PASSED THE SENATE AUGUST 29, 2002 AMENDED IN SENATE AUGUST 27, 2002 AMENDED IN SENATE JUNE 24, 2002 AMENDED IN SENATE JUNE 18, 2002 INTRODUCED BY Committee on Natural Resources (Wayne (Chair), Hollingsworth (Vice Chair), Dickerson, Harman, Jackson, Keeley, Lowenthal, Migden, and Pavley) MARCH 13, 2002 An act to amend Section 66907.7 of the Government Code, and to add and repeal Article 1.5 (commencing with Section 5019.10) of Chapter 1 of Division 5 of the Public Resources Code, relating to natural resources, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 3042, Wayne. Natural resources: California Tahoe Conservancy: Parks Project Revolving Fund: expenditures. (1) Existing law establishes the California Tahoe Conservancy as a state agency within the Resources Agency and authorizes the conservancy to select and acquire real property or interests therein in the name of and on behalf of the state for the purposes of protecting the natural environment, providing public access or public recreational facilities, preserving wildlife habitat areas, or providing access to or management of acquired lands. The conservancy is authorized to award grants to local public agencies, state agencies, federal agencies, and nonprofit organizations for these purposes. This bill would additionally authorize the conservancy to award grants to federally recognized Indian tribes and the Tahoe transportation district, as specified. (2) Existing law vests with the Department of Parks and Recreation control of the state park system, and provides funds for the support and administration of the department, and specified park construction development, repair, and improvement projects. This bill would establish the Parks Project Revolving Fund in the State Treasury, and would require, upon the approval of the Department of Finance, except as provided, the transfer to, or deposit in, the fund of all money appropriated, contributed, or made available from any source, including sources other than state appropriations, for expenditure on work within the powers and duties of the department with respect to the construction, alteration, repair, and improvement of state park facilities, as specified. The bill would make money transferred from state sources for major construction available without regard to fiscal years and irrespective of specified limitations for encumbrance, thereby, making an appropriation. These provisions would become inoperative on a date that is 3 years after the date that Section 5018.1 of the Public Resources Code is repealed, and would be repealed on the following January 1. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 66907.7 of the Government Code is amended to read: 66907.7. (a) The conservancy may award grants to local public agencies, state agencies, federal agencies, federally recognized Indian tribes, the Tahoe transportation district established under Section 66801, and nonprofit organizations, for the purposes of this title. (b) Grants to nonprofit organizations for the acquisition of real property or interests therein shall be subject to all of the following conditions: (1) The purchase price of any interest in land acquired by the nonprofit organization may not exceed fair market value as established by an appraisal approved by the conservancy. (2) The conservancy approves the terms under which the interest in land is acquired. (3) The interest in land acquired pursuant to a grant from the conservancy may not be used as security for any debt to be incurred by the nonprofit organization unless the conservancy approves the transaction. (4) The transfer of land acquired pursuant to a grant shall be subject to the approval of the conservancy and the execution of an agreement between the conservancy and the transferee sufficient to protect the interest of the people of California. (5) The state shall have a right of entry and power of termination in and over all interests in real property acquired with state funds, which may be exercised if any essential term or condition of the grant is violated. (6) If the existence of the nonprofit organization is terminated for any reason, title to all interest in real property acquired with state funds shall immediately vest in the state, except that, prior to that termination, another public agency or nonprofit organization may receive title to all or a portion of that interest in real property, by recording its acceptance of title, together with the conservancy's approval, in writing. (c) Any deed or other instrument of conveyance whereby real property is being acquired by a nonprofit organization pursuant to this section shall be recorded and shall set forth the executory interest or right of entry on the part of the state. SEC. 2. Article 1.5 (commencing with Section 5019.10) is added to Chapter 1 of Division 5 of the Public Resources Code, to read: Article 1.5. The Parks Project Revolving Fund 5019.10. (a) The Parks Project Revolving Fund is hereby established in the State Treasury. Except as otherwise specified in this section, upon approval of the Department of Finance there shall be transferred to, or deposited in, the fund all money appropriated, contributed, or made available from any source, including sources other than state appropriations, for expenditure on work within the powers and duties of the department with respect to the construction, alteration, repair, and improvement of state park facilities, including, but not limited to, services, new construction, major construction and equipment, minor construction, maintenance, improvements, and equipment, and other building and improvement projects for which an appropriation is made or, as to funds from sources other than state appropriations, as may be authorized by written agreement between the contributor or contributors of funds and the department and approved by the Department of Finance. (b) Money from state sources transferred to, or deposited in, the fund for major construction shall be limited to the amount necessary based on receipt of competitive bids. Money transferred for this purpose shall be upon the approval of the Department of Finance. Any amount available, in the state appropriation, which is in excess of the amount necessary based on receipt of competitive bids, shall be immediately transferred to the credit of the fund from which the appropriation was made. Money in the fund also may be expended, upon approval of the Department of Finance, to finance the cost of a construction project within the powers and duties of the department for which the federal government will contribute a partial cost thereof, if written evidence has been received from a federal agency indicating that that money has been appropriated by Congress and the federal government, and that the federal government will pay to the state the amount specified upon the completion of construction of the project. The director may approve plans, specifications and estimates of cost, and advertise for and receive bids on, those projects in anticipation of the receipt of the written evidence. Money transferred or deposited for the purposes of this subdivision is available for expenditure by the department for the purposes for which appropriated, contributed, or made available, without regard to fiscal years and irrespective of the provisions of Section 13340 of the Government Code. (c) As used in this article, "fund" means the Parks Project Revolving Fund. 5019.11. The department shall file against the fund all claims covering expenditures incurred in connection with services, new construction, major construction and equipment, minor construction, maintenance, improvements, and equipment, and other building and improvement projects, and the Controller shall draw his or her warrant therefor against that fund. 5019.12. The department shall keep a record of all expenditures chargeable against each specific portion of the fund. Any unencumbered balance in any portion of the fund, either within three months after completion of the project for which the portion was transferred or within three years from the time the portion was transferred or deposited therein, whichever is earlier, shall be withdrawn from the revolving fund and transferred to the credit of the fund from which the appropriation was made. As to funds from other than state appropriations, they shall be paid out or refunded as provided in the agreement relating to the contributions. The Department of Finance may approve an extension of the time of withdrawal. For the purpose of this section an estimate, prepared by the department upon receipt of bids, of the amount required for supervision, engineering, and other items, if any, necessary for the completion of a project, on which a construction contract has been awarded, shall be deemed a valid encumbrance and shall be included with any other valid encumbrances in determining the amount of an unencumbered balance. 5019.13. At any time the department, without furnishing a voucher or itemized statement, may withdraw from the Parks Project Revolving Fund a sum not to exceed five hundred thousand dollars ($500,000). Any sum withdrawn pursuant to this section shall be used as a revolving fund where payments of compensation earned or cash advances are necessary with respect to the construction, alteration, repair, or improvement of state buildings. 5019.14. The department shall annually submit to the Department of Finance a report that reconciles, by project, all of the following: (a) Amounts transferred to the revolving fund. (b) Amounts expended from the revolving fund. (c) In cases of project savings or completion, or both, unexpended amounts withdrawn from the fund and transferred to the credit of the fund, paid out, or refunded, as provided in Section 5019.12. 5019.15. This article shall become inoperative on a date that is three years after the date that Section 5018.1 is repealed, and, as of January 1 immediately following that inoperative date, is repealed, unless a later enacted statute that is enacted before that January 1 deletes or extends the dates on which it becomes inoperative and is repealed.