BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 42
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 42 (Huffman)
          As Amended  August 30, 2011
          Majority vote
           
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          |ASSEMBLY:  |75-1 |(May 19, 2011)  |SENATE: |33-2 |(August 31,    |
          |           |     |                |        |     |2011)          |
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           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 








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            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, 








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          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 










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