BILL ANALYSIS Ó AB 42 Page 1 ASSEMBLY THIRD READING AB 42 (Huffman) As Amended May 16, 2011 Majority vote WATER, PARKS & WILDLIFE 13-0 APPROPRIATIONS 16-0 ----------------------------------------------------------------- |Ayes:|Huffman, Halderman, Bill |Ayes:|Fuentes, Harkey, | | |Berryhill, Blumenfield, | |Blumenfield, Bradford, | | |Campos, Fong, Gatto, | |Charles Calderon, Campos, | | |Roger Hernández, Hueso, | |Davis, Gatto, Hall, Hill, | | |Jones, Lara, Olsen, | |Lara, Mitchell, Nielsen, | | |Yamada | |Norby, Solorio, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes the Department of Parks and Recreation (DPR) to enter into contracts with qualified nonprofit organizations to assist with operation of state parks. Specifically, this bill: 1)States legislative findings regarding the benefits and fiscal challenges facing California's state park system, the need for stable, reliable and adequate funding to support state parks, the importance of efforts to continue public access to state parks, and the benefits nonprofit partners can provide to assist the state in that effort. 2)Authorizes DPR to enter into an operating agreement for the development, improvement, restoration, care, maintenance, administration or operation of a state park unit, or portion of a unit, with a qualified nonprofit organization that is a 501(c)(3) organization and has as its principal purpose and activity to provide visitor services in state parks, facilitate public access, improve park facilities, provide interpretive and educational services, or provide direct protection or stewardship of natural, cultural or historical lands or resources. 3)Authorizes DPR to enter into an operating agreement with a nonprofit for the entirety of a state park unit only to the AB 42 Page 2 extent the agreement would enable DPR to avoid closure of a unit or units of the state park system that may otherwise be subject to closure. 4)Limits to 20 the number of state parks for which DPR may enter into an agreement for the operation of an entire state park unit. 5)Requires an operating agreement for a park unit to honor existing concession agreements for that park unit. 6)Requires that the operating agreement specify the duties the nonprofit shall be responsible for carrying out relative to management and protection of natural, historical and cultural resources, and to identify those management duties that shall continue to be conducted by DPR. Requires scientific, architectural and engineering functions that require special expertise or professional training to be conducted by or under the supervision of qualified persons with applicable expertise or training and subject to oversight by DPR. 7)Clarifies that this bill does not supersede the requirements of existing law regarding protection of natural, scenic, cultural and ecological resources. 8)Requires any nonprofit who enters an operating agreement with DPR to submit an annual written report that would be publicly available providing a full accounting of all revenues and expenditures. 9)Requires that all revenues received from a state park unit shall be expended only for the care, maintenance, operation, administration, improvement or development of the unit. 10)Authorizes nonprofit organizations to contribute additional in-kind services and funds for the care, maintenance, operation, administration, improvement or development of the park. 11)Requires DPR to provide a biennial report to the Legislature on the status of any operating agreements it has entered. AB 42 Page 3 12)Includes a sunset clause providing that this section shall remain in effect only until January 1, 2019. EXISTING LAW : 1)Authorizes DPR to enter into operating agreements with local government entities for the operation of a state park unit. 2)Authorizes DPR to enter into contracts with for-profit companies for concession services in state parks. 3)Authorizes DPR to enter into cooperative agreements with nonprofit organizations to provide educational and interpretive services in state parks. 4)Authorizes DPR to enter into an operating agreement with a qualified nonprofit organization for the development, improvement, restoration, care, maintenance, administration, and control of El Presidio de Santa Barbara State Historic Park and Marconi Conference Center. FISCAL EFFECT : According to the Assembly Appropriations Committee, unknown General Fund (GF) savings to operate state park units. The authority provided by this bill is discretionary. Presumably, DPR will not enter into agreements with nonprofits for the operation of state park units unless the cost to do so would be no more than equal to the cost to DPR to operate the park units itself. COMMENTS : California's state park system is the largest in the nation and includes 278 state parks covering over 1.5 million acres of lands managed by the DPR for their natural, cultural and historical values for present and future Californians. Over the past several years, the General Fund budget for state parks has decreased while user fees have increased. Today the park system has a deferred maintenance backlog of over $1 billion. Last year as a result of budget reductions, hours of operation at many parks were reduced, and a number of campgrounds, visitor centers and other public services were closed. In November 2010, Proposition 21, a statewide ballot initiative which would have provided ongoing dedicated funding for state parks through a vehicle license surcharge failed passage. This year the AB 42 Page 4 Governor has proposed, and the legislative Budget Conference Committee approved, an $11 million reduction in GF support to DPR in the proposed 2011-12 Budget. The Governor is also proposing an additional $11 million reduction in 2012-13, for an ongoing annual GF budget reduction to DPR of $22 million. These cuts are anticipated to necessitate the closure of a number of state parks throughout the system. The author and sponsor of this bill assert that while the search for stable funding continues, it is critical that creative opportunities for public/private partnerships be explored and encouraged in order to minimize the impacts to state parks and, where possible, maintain public access to park resources. Public/private partnerships are one tool which may help the state to keep a few of the parks open that could otherwise be subject to closure. Currently, there are 86 nonprofit cooperating associations that provide varying levels of support for individual state park units. Cooperating associations are non-profit charitable 501 (c) 3 organizations dedicated to enhancing educational and interpretive programs in California State Parks. The associations assist with educational activities, provide trained docents for fieldtrips, raise funds for state parks, and volunteer in a variety of other ways to support the operation of state parks. Some qualified nonprofit organizations could provide greater assistance to DPR with the operations of a state park unit if DPR had authority to enter into negotiated agreements with nonprofits for that purpose. Such agreements could potentially enable DPR to keep open a park that would otherwise be subject to closure. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096 FN: 0000621