BILL ANALYSIS Ó AB 64 Page 1 Date of Hearing: April 5, 2011 ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE Jared Huffman, Chair AB 64 (Jeffries) - As Introduced: December 9, 2010 SUBJECT : State Parks: California Citrus State Historic Park: Operating Agreement SUMMARY : Requires the Department of Parks & Recreation (DPR) to enter into an operating agreement with the City of Riverside for the California Citrus State Historic Park. Specifically, this bill : 1)States legislative findings and declarations regarding the California Citrus State Historic Park located in the City of Riverside, and the City's desire to enter into a 25-year operating agreement for the park. 2)Mandates DPR enter into an operating agreement with the City of Riverside for development, improvement, restoration, care, maintenance, administration, and control of the California Citrus State Historic Park. 3)Requires the operating agreement to include all of the following: a) Grant control of the park to the city for payment of $1 per year, for an initial term of 25 years, with automatic renewal after each 25 year period unless DPR or the city gives 6 months prior notice of a decision not to renew. b) Imposition on the city of full and complete responsibility for all costs of maintenance. c) A requirement for the city, DPR and the California Citrus State Historic Park Nonprofit Management Corporation to collaborate on programming at the park. d) A requirement that the city obtain DPR's approval before making a capital improvement to or change in the physical space of the park that is inconsistent with the park general plan. AB 64 Page 2 e) Reciprocal indemnifications. f) A requirement that the park continue to be designated and promoted as a unit within the state park system. g) A requirement that the city not charge a fee for general admission to the park. 4)Requires that, notwithstanding the operating agreement, the park would continue to be eligible for grants or funding for which the park was eligible prior to the agreement when it was operated by the state. 5)Requires the city and DPR to consider the impact on park vendors of a proposed closure or a proposed alteration in the operating agreement. 6)States that the operating agreement does not affect the classification of the park as a unit of the state park system, and that signs for the park shall continue to reflect the state park nature of the park. EXISTING LAW: 1)Gives DPR control of the state park system. Requires DPR to prepare general plans for operation of state park units, and to submit the plans to the State Park and Recreation Commission for approval. Requires DPR to administer, protect, develop and interpret properties under its jurisdiction for the use and enjoyment of the public. 2)Requires the State Park and Recreation Commission to classify units of the state park system and to approve general plans for state park units. 3)Authorizes DPR to enter into operating agreements with local governments and other public agencies for operation of state parks. 4)Authorizes DPR to enter into an operating agreement with a qualified nonprofit organization for the California Citrus State Historic Park, consistent with the general plan for the park and at no cost to the state, for purposes of managing agricultural production, leasing groves, and selling fruit, AB 64 Page 3 with proceeds to be used for the park, and to accept donations. FISCAL EFFECT : Unknown COMMENTS : This bill would legislatively mandate that DPR enter into a 25 year operating agreement with the City of Riverside to operate and manage a state park. The findings in this bill include concerns that the California Citrus State Historic Park is anticipated to be on a list of proposed state park closures, and indicate that the City of Riverside is willing to assume responsibility for operation of the park to prevent a closure. The author and sponsor also assert that they have made numerous unsuccessful offers over the past few years to enter into an operating agreement with DPR but that those offers were rejected by the previous administration. They indicate they have been in contact with the new administration and are hopeful of being able to successfully negotiate an operating agreement outside of the legislative process, but until a decision is made urge that this bill move forward. The sponsors also assert that with the failure of Proposition 21 last November, and another round of budget cuts looming, the time to enter into operating agreements with willing and capable partners has come. In light of the budget action reducing DPR's budget by $22 million, it is anticipated that DPR will be required to close a significant number of state parks and the Legislature has been anticipating, but has not yet received, a list of the specific parks slated for closure this year. Existing law already authorizes DPR to enter into operating agreements with local governments and other public entities for the care, maintenance and administration of state park lands for the purpose of the state park system. DPR currently has in effect over 20 operating agreements with local governments to manage state parks. However, this bill represents a significant departure from existing practice, by mandating that DPR must enter into operating agreements with a particular entity. The Legislature in the past has generally not mandated with whom or under what specific terms DPR must contract. In general, the Legislature establishes policy and the executive branch administers those policies. However, it is also a new situation for the state to be facing the imminent threat of a large number of state park closures, and this situation has prompted renewed interest in the merits of expanding partnerships to assist the AB 64 Page 4 state in operating state park units. The Legislature has delegated to DPR control over the state park system, and has established a process for classification and management of state park units. In several cases, the Legislature has approved and encouraged public private partnerships to assist DPR in the management of state park resources. For instance, the law allows DPR to enter into concession contracts with private entities, to enter into agreements with non-profit cooperatives, and to negotiate operating agreements with local governments and other public entities. In a number of specific instances, the Legislature has authorized DPR to enter into operating agreements for other state parks, such as El Presidio de Santa Barbara State Historic Park and Marconi Conference Center, but such grants of authority have been permissive. Related Legislation : AB 2660 (Jeffries), legislation substantially similar to this bill, was introduced by Assembly Member Jeffries in 2010 but was not heard in committee. Assembly Member Jeffries also introduced AB 135 in 2009 which was held in the Senate Natural Resources and Water Committee. AB 135 would have required DPR to enter into an operating agreement with the City of Riverside, but for a period of 40 years. As an alternative approach to this bill, which focuses on a single park, and in light of the fact that multiple parks across the state are facing potential closure, the Legislature may wish to consider a declaration of legislative intent that DPR be encouraged to negotiate operating agreements with any local government that has the interest and capacity to assist the state in operating a state park that would otherwise be subject to closure. REGISTERED SUPPORT / OPPOSITION : Support City of Riverside Opposition None on file. AB 64 Page 5 Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096