BILL ANALYSIS Ó AB 42 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 42 (Huffman) As Amended August 30, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |75-1 |(May 19, 2011) |SENATE: |33-2 |(August 31, | | | | | | |2011) | ----------------------------------------------------------------- Original Committee Reference: W., P. & W. SUMMARY : Authorizes the Department of Parks & Recreation (DPR) to enter into operating agreements with qualified nonprofit organizations to operate a state park unit. The Senate amendments : 1)Require the annual report that the nonprofit group is required to provide to DPR to be posted on DPR's and the nonprofit organization's Internet Web sites. 2)Require the operating agreement to delineate all core park operations. 3)Require DPR to notify legislative policy and budget committees of their intent to enter into an operating agreement with a nonprofit organization. 4)Require a qualified nonprofit organization, as a condition of eligibility, to be in compliance with the Supervision of Trustees and Fundraisers for Charitable Purposes Act. 5)Prohibit General Fund (GF) monies from being provided to a nonprofit organization to subsidize operation or maintenance of a state park unit the full operation of which is being turned over to the nonprofit organization. Clarify that this restriction does not apply to or preclude DPR from entering into agreements with nonprofit organizations to operate a portion of a state park unit, or from entering into comanagement agreements that involve the sharing of operational and financial responsibilities for the park unit and have the effect of reducing state costs. Further clarify that this provision does not apply to park entrance fees, concession revenues, or other revenues generated within a AB 42 Page 2 state park. 6)Add legislative findings and declarations that for effective protection of natural, cultural and historic resources in state parks, and to facilitate public access to state parks, new partnerships, including intergovernmental partnerships, partnerships with local governments, and involvement from local, community and regional groups should be encouraged in order to protect state parks. 7)Add coauthors. 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. AS PASSED BY THE ASSEMBLY , this bill authorized DPR to enter into operating agreements with qualified nonprofit organizations to operate a state park unit. DPR would be authorized to enter into an operating agreement with a nonprofit for the entirety of a state park unit only to the 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. The number of state parks for which DPR may enter into an agreement for the operation of an entire state park unit would be limited to 20 state park units. The operating agreement would be required to 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. DPR would be required to report to the Legislature biennially, AB 42 Page 3 and to notify the legislator in whose district the park is located of its intent to enter an operating agreement with a nonprofit. The nonprofit would also be required to submit an annual report to DPR. FISCAL EFFECT : According to the Senate Appropriations Committee, up to $500,000 in fiscal year 2011-12 for DPR to develop operating agreements (special funds, State Park & Recreation Fund), potentially offset by unknown cost savings from entering into operating agreements. According to the Assembly Appropriations Committee analysis, unknown GF savings to operate state park units. The authority provided by the 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 : The Senate amendments are consistent with the Assembly action, adding specificity to reporting and operating agreement requirements, and additional eligibility requirements for nonprofit organizations. Earlier this year the Governor proposed, and the Legislature approved, an $11 million reduction in GF support to DPR in the 2011-12 budget. The Governor has also proposed an additional $11 million reduction in 2012-13, for an ongoing proposed annual GF budget reduction to DPR of $22 million. As a result of the budget reductions, the Administration announced its intent to close 70 of California's 278 state parks. 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 open a few of the parks that would otherwise be subject to closure. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096 FN: 0002414 AB 42 Page 4