BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 42 (Huffman)
Hearing Date: 07/11/2011 Amended: 06/21/2011
Consultant: Brendan McCarthy Policy Vote: NR&W 9-0
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BILL SUMMARY: AB 42 authorizes the Department of Parks and
Recreation to enter into operating agreements with non-profit
entities to manage state parks or portions of state parks.
Operating agreements for the management of entire state parks
would be limited to 20 in total and could only occur if the
operating agreement prevents the closure of a park.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Development of operating Up to $500 Special
*
agreements
Cost savings from entering Unknown Special
*
into operating agreements
* State Parks and Recreation Fund.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Under current law, the Department of Parks and Recreation is
authorized to enter into operating agreements with public
agencies (including federal agencies and local governments) for
the operation and maintenance of state parks. Existing law
limits the uses of revenues generated from such parks. In
addition, the Department has entered into agreements with
non-profit organizations for the operation of five state parks,
in each case with specific statutory authority. The Department
is also authorized to enter into concession agreements with
for-profit companies for the provision of services within state
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parks. Concession agreements are subject to legislative approval
in most cases.
AB 42 authorizes the Department to enter into operating
agreements with non-profit organizations for the operation and
maintenance or a park unit or a portion of a park unit. If the
operating agreement provides for operation of an entire park
unit, the Department may only enter into such an agreement
provided that the operating agreement will eliminate the need to
close the park unit, due to budget reductions. In addition, the
Department is limited to entering into a total of 20 operating
agreements for the operation of entire park units.
The bill requires that revenues generated at a park, under an
operating agreement, be used for the operation, maintenance, and
improvement of the specific park unit. In addition, the bill
imposes public meeting and legislative notification requirements
on those operating agreements.
The provisions of the bill sunset on January 1, 2019.
The Department is likely to experience administrative costs to
negotiate and oversee operating agreements, particularly for
parks that will be operated in their entirety by a non-profit
organization. Staff estimates that the costs to the Department
to negotiate such agreements could be up to $500,000.
On the other hand, the closure of a significant number of parks
is likely to impose costs on the Department, such as additional
law enforcement patrols and other actions designed to keep
members of the public out of closed parks. To the extent this
bill reduces the need for those activities, there will likely be
some savings to the Department. To date, the Department has not
quantified the costs to close a significant number of state
parks, so the size of any costs savings is unknown.
Staff recommends the bill be amended to specify that the state
will not provide General Fund monies to non-profit organizations
to subsidize the operation of parks that are currently scheduled
for closure.
AB 42 (Huffman)
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