BILL ANALYSIS                                                                                                                                                                                                    Ó



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          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 








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            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.









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          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 








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          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


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