BILL NUMBER: AB 1478	CHAPTERED
	BILL TEXT

	CHAPTER  530
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2012
	PASSED THE SENATE  AUGUST 30, 2012
	PASSED THE ASSEMBLY  AUGUST 30, 2012
	AMENDED IN SENATE  AUGUST 24, 2012
	AMENDED IN SENATE  AUGUST 21, 2012
	AMENDED IN SENATE  JUNE 26, 2012
	AMENDED IN SENATE  JUNE 25, 2012

INTRODUCED BY   Assembly Member Blumenfield
   (Coauthors: Assembly Members Gordon and Huffman)
   (Coauthors: Senators Evans, Leno, Pavley, and Simitian)

                        JANUARY 10, 2012

   An act to amend Sections 530 and 5010.7 of, and to add Sections
535.5, 541.5, and 541.6 to, the Public Resources Code, relating to
public resources, and making an appropriation therefor, to take
effect immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1478, Blumenfield. State Parks: finances.
   (1) Existing law establishes, in the Department of Parks and
Recreation, the State Park and Recreation Commission consisting of 9
members appointed by the Governor, subject to confirmation by the
Senate. Existing law requires the commission, among other things, to
establish general policies for the guidance of the Director of Parks
and Recreation in the administration, protection, and development of
the state park system.
   This bill would establish qualification criteria for the members
of the commission, including requiring one member to have
demonstrated expertise in cultural or historical resources
management. The bill would require the Speaker of the Assembly and
the Senate Committee on Rules to each appoint one ex officio
legislative member. The bill would require the commission to evaluate
and assess the department's deferred obligations. The bill would
also authorize the commission to, among other things, conduct an
annual workshop to review the department's annual operating budget
and proposed capital improvement projects. The bill would appropriate
$120,000 annually in the 2012-13 and 2013-14 fiscal years from the
State Parks and Recreation Fund to the commission to perform these
activities. The bill would appropriate $20,500,000 from the State
Parks and Recreation Fund to the department for expenditure as
specified. The bill would prohibit the department from closing or
proposing the closure of a state park in the 2012-13 and 2013-14
fiscal years. The bill would also appropriate $10,000,000 from the
Safe Drinking Water, Water Quality and Water Supply, Flood Control,
River and Coastal Protection Bond Act of 2006, to be expended as
specified, including for purposes of capital outlay and support for
capital outlay projects of a state park.
   (2) Existing law requires the department to develop a revenue
generation program as an essential component of a long-term
sustainable park funding strategy. Existing law requires all revenues
generated by the program to be deposited into the California State
Park Enterprise Fund, as provided, and spent in a specified way,
including allocating 40% of the total amount of revenues generated by
a park district to that district, as specified. Existing law
requires the department to provide an annual accounting to the
Department of Finance and relevant legislative committees of the use
of funds from a revolving loan program established by the department.
Existing law requires the department to rank proposals and awards
for loans based on specified criteria.
   This bill would require the program revenue to be available for
encumbrance and expenditure until June 30, 2014, and for liquidation
until June 30, 2016. The bill would require the incremental revenue
generated by the program to be deposited into the State Parks and
Recreation Fund, and revenue identified as being in excess of revenue
targets established by the department shall be transferred to the
California State Park Enterprise Fund, as provided. Among other
things, this bill would require that 50% of the total amount of
revenues deposited into the California State Park Enterprise Fund
generated by a park district be allocated to that district, as
specified. This bill would require the department to provide the
annual accounting to the Department of Finance and the relevant
legislative committees of the use of the revolving loan funds in
accordance with the purpose outlined in specified voter-approved bond
acts. This bill would include capacity of a project to improve
services, park experiences, or both, for park visitors as one of the
criteria for ranking a proposal or award of a loan.
   (3) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares the following:
   (a) The failure of the Department of Parks and Recreation to
accurately account for its revenues and its failure to disclose
balances in special funds has had numerous negative consequences. It
has undermined public confidence in the department, it has threatened
relationships with donors, local governments, and nonprofits that
entered or are considering entering into agreements with the
department to help keep parks open during this time of decreased
General Fund support for the department, and it could make it more
difficult to enter into revenue generation activities that depend on
increased public support and visitation at California's state parks.
   (b) It is the intent of the Legislature to ensure that the
appropriate recommendations from all internal and independent audits
and investigations are implemented in order to help restore public
confidence in the department.
   (c) It is further the intent of the Legislature to acknowledge
that, despite the failure to disclose balances in special funds, the
department is embarking on a new revenue generation program to help
alleviate its decreased General Fund support. To that end, the
revenues that were collected by the department but which were not
disclosed should be used exclusively to help keep parks open and,
where appropriate and necessary, to match moneys from third-party
donors and partners that entered into agreements with the department
to help keep one or more state parks open. These funds should be used
to help establish a sustainable, long-term funding strategy. A
preference for such funds should be established at parks where donors
have contributed nonstate financial resources.
   (d) The department has demonstrated that greater public and
legislative oversight is necessary. Adjusting the membership of the
State Park and Recreation Commission to provide opportunities for
experienced and professional experts from qualified organizations
with expertise and interest in improving the management and
programming within the department is essential. It is equally
important to add ex officio legislative members to the commission.
   (e) It is further the intent of the Legislature to encourage
formation of a multidisciplinary advisory council, including, but not
limited to, members of the public, persons with park management
expertise, representatives of nonprofit park organizations, and
representatives of the private philanthropic community, to conduct an
independent assessment and make recommendations to the Legislature
and the Governor on future management, planning, and funding
proposals that will ensure the long-term sustainability of the state
park system.
   (f) It is further the intent of the Legislature that any funding
in excess of current fund balances reported in the Governor's Budget
within the Off-Highway Vehicle Trust Fund shall be spent according to
current law.
  SEC. 2.  Section 530 of the Public Resources Code is amended to
read:
   530.  (a) There is in the department the State Park and Recreation
Commission. The members shall be selected as follows:
   (1) Nine members, as follows, shall be appointed by the Governor,
subject to confirmation by the Senate.
   (A) Three members shall represent the public.
   (B) One member shall have demonstrated expertise in cultural or
historic resources management.
   (C) One member shall have background as a parks professional with
experience in local, regional, or national parks or may be a retired
state parks employee from the department.
   (D) One member shall represent nonprofit or other organizations
with statewide policy expertise with the state park system or in
operating one or more state parks through operating agreements or
other arrangements.
   (E) One member shall represent a statewide conservation
organization with expertise in the administration or programs of the
department.
   (F) One member shall have a background in the recreational
industry.
   (G) One member shall represent a local business community that has
significant and beneficial relationships with one or more state
parks.
   (2) The Speaker of the Assembly and the Senate Committee on Rules
shall each appoint one ex officio legislative member.
   (b) As appointments are made to the commission after the effective
date of the act that amended this section during the 2011-12 Regular
Session, the Governor shall ensure that appointments are made in
conformance with this section.
   (c) If a reference is made to the State Park Commission or
Recreation Commission pertaining to a duty, power, purpose,
responsibility, or jurisdiction of the State Park Commission or the
Recreation Commission, it shall be deemed to be a reference to and to
mean the State Park and Recreation Commission.
   (d) The commission chair may appoint committees composed of
commission members and the duties of the committees shall include,
but not be limited to, those duties set forth in Sections 539 and
540. Findings and recommendations of the committees shall be
presented to the commission for consideration and action.
  SEC. 3.  Section 535.5 is added to the Public Resources Code, to
read:
   535.5.  (a) The commission shall evaluate and assess the
department's deferred maintenance obligations. After public notice
and at a public hearing, following a presentation by the relevant
district superintendent, it may consider the nature and extent, and
establish the relative priority, of prospective deferred maintenance
projects of the department.
   (b) The commission may provide advice to the Governor, the
Legislature, and the department on policies, projects, and other
matters pertaining to parks, recreation, and public access affecting
the state park system.
   (c) The commission may conduct an annual workshop or series of
workshops to review the department's annual operating budget and
proposed capital improvement projects.
   (d) The commission may make recommendations to improve visitor
services and visitor satisfaction in parks, assess the progress and
challenges with regard to the protection of natural, cultural, and
historical resources within the state park system, and enhance
revenue opportunities across the state park system.
   (e) The commission may assist in promoting the state park system
and parks and recreational facilities and programs.
   (f) The sum of one hundred twenty thousands dollars ($120,000)
annually in the 2012-13 and 2013-14 fiscal years is hereby
appropriated from the State Parks and Recreation Fund to the State
Park and Recreation Commission for the purpose of funding those
activities authorized under this section.
  SEC. 4.  Section 541.5 is added to the Public Resources Code, to
read:
   541.5.  (a) The department shall not close, or propose to close, a
state park in the 2012-13 or 2013-14 fiscal year. The commission and
the department shall recommend all necessary steps to establish a
sustainable funding strategy for the department to the Legislature on
or before January 1, 2015.
   (b) There is hereby appropriated twenty million five hundred
thousand dollars ($20,500,000) to the department from the State Parks
and Recreation Fund, which shall be available for encumbrance for
the 2012-13 and 2013-14 fiscal years, to be expended as follows:
   (1) Ten million dollars ($10,000,000) shall be available to
provide for matching funds pursuant to subdivision (c).
   (2) Ten million dollars ($10,000,000) shall be available for the
department to direct funds to parks that remain at risk of closure or
that will keep parks open during the 2012-13 and 2013-14 fiscal
years. Priority may be given to parks subject to a donor or operating
agreement or other contractual arrangement with the department.
   (3) Up to five hundred thousand dollars ($500,000) shall be
available for the department to pay for ongoing audits and
investigations as directed by the Joint Legislative Audit Committee,
the office of the Attorney General, the Department of Finance, or
other state agency.
   (c) The department shall match on a dollar-for-dollar basis all
financial contributions contributed by a donor pursuant to an
agreement for the 2012-13 fiscal year for which the department
received funds as of July 31, 2013, and for agreements entered into
in the 2013-14 fiscal year. These matching funds shall be used
exclusively in the park unit subject to those agreements.
   (d) The department shall notify the Joint Legislative Budget
Committee in writing not less than 30 days prior to the expenditure
of funds under this section of the funding that shall be expended,
the manner of the expenditure, and the recipient of the expenditure.
  SEC. 5.  Section 541.6 is added to the Public Resources Code, to
read:
   541.6.  (a) There is hereby appropriated ten million dollars
($10,000,000) from the Safe Drinking Water, Water Quality and Water
Supply, Flood Control, River and Coastal Protection Bond Act of 2006
(Division 43 (commencing with Section 75001)) to be expended as
follows:
   (1) The amount appropriated in this item is available for
expenditures for capital outlay and support for capital outlay
projects of a state park.
   (2) No commitment of funds from this item shall be authorized
prior to 30 days after the Department of Parks and Recreation
notifies the Joint Legislative Budget Committee and the Department of
Finance of the projects to be funded from this section. No funds
shall be expended for capital outlay projects without prior approval
of the State Public Works Board.
   (3) The amount appropriated in this section shall be available for
expenditure until June 30, 2015.
  SEC. 6.  Section 5010.7 of the Public Resources Code is amended to
read:
   5010.7.  (a) The department shall develop a revenue generation
program as an essential component of a long-term sustainable park
funding strategy. On or before October 1, 2012, the department shall
assign a two-year revenue generation target to each district under
the control of the department. The revenue target may be amended
annually for subsequent years, beginning in the 2015-16 fiscal year.
The department shall develop guidelines for districts to report the
use of funds generated by the revenue generation program, and shall
post information and copies of the reports on its Internet Web site.
   (b) The California State Park Enterprise Fund is hereby created in
the State Treasury as a working capital fund, and the revenue shall
be available to the department upon appropriation by the Legislature,
for the expenditures for the purposes specified in this section and
shall be available for encumbrance and expenditure until June 30,
2014, and for liquidation until June 30, 2016.
   (c) The incremental revenue generated by the revenue generation
program developed pursuant to subdivision (a) shall be deposited into
the State Parks and Recreation Fund. Revenue identified as being in
excess of the revenue targets shall be transferred to the California
State Park Enterprise Fund on or before June 1, annually.
   (d) Moneys appropriated to the department pursuant to subdivision
(b) and Section 5010.6 shall be expended as follows:
   (1) (A) The department shall allocate 50 percent of the total
amount of revenues deposited into the California State Park
Enterprise Fund pursuant to subdivision (c), generated by a park
district to that district if the amount of revenues generated exceeds
the targeted revenue amount prescribed in the revenue generation
program. The revenues to be allocated to a park district that fails
to achieve the revenue target shall remain in the fund.
   (B) With the approval of the director, each district shall use the
funds it receives from the department from the revenue generation
program to improve the parks in that district through revenue
generation programs and projects and other activities that will
assist in the district's revenue generation activities, and the
programs, projects, and other activities shall be consistent with the
mission and purpose of each unit and with the plan developed for the
unit pursuant to subdivision (a) of Section 5002.2.
   (2) The department shall use 50 percent of the funds deposited
into the California State Park Enterprise Fund pursuant to
subdivision (c) for the following purposes:
   (A) To fund the capital costs of construction and installation of
new revenue and fee collection equipment and technologies and other
physical upgrades to existing state park system lands and facilities.

   (B) For costs of restoration, rehabilitation, and improvement of
the state park system and its natural, historical, and
visitor-serving resources that enhance visitation and are designed to
create opportunities to increase revenues.
   (C) For costs to the department to implement the action plan
required to be developed by the department pursuant to Section
5019.92 of the Public Resources Code.
   (D) To establish a revolving loan program pursuant to subdivision
(e).
   (e) (1) The department shall establish a revolving loan program
and prepare guidelines establishing a process for those districts
that receive moneys under paragraph (1) of subdivision (d) to apply
for funds that exceed the amount of funds provided to the districts
pursuant to paragraph (1) of subdivision (d). It is the intent of the
Legislature that the revolving loan program fund only those projects
that will contribute to the success of the department's revenue
generation program and the continual growth of the fund over time.
Districts may apply for funds for capital projects, personnel, and
operations that are consistent with this subdivision, including the
costs of preparing an application. The department shall provide an
annual accounting to the Department of Finance and the relevant
legislative committees of the use of those funds in accordance with
the purposes outlined in Proposition 40 (the California Clean Water,
Clean Air, Safe Neighborhood Parks, and Coastal Protection Bond Act
of 2002 (Chapter 1.696 (commencing with Section 5096.600) of Division
5) and Proposition 84 (the Safe Drinking Water, Water Quality and
Supply, Flood Control, River and Coastal Protection Bond Act of 2006
(Division 43 (commencing with Section 75001)), voter-approved bond
acts.
   (2) The guidelines prepared pursuant to paragraph (1) shall
require that applications for funding include all of the following:
   (A) A clear description of the proposed use of funds, including
maps and other drawings, as applicable.
   (B) A market analysis demonstrating demand for the project or
service.
   (C) The projected lifespan of the project, which must be at least
20 years for a proposed capital project.
   (D) A projection of revenues, including the specific assumptions
for annual income, fees, occupancy rates, pricing, and other relevant
criteria upon which the projection is based.
   (E) A projection of costs, including, but not limited to, design,
planning, construction, operation, staff, maintenance, marketing, and
information technology.
   (F) The timeframe for implementation, including all necessary
reviews and permitting.
   (G) The projected net return on investment of the life of the
project.
   (H) Provisions providing for mandatory reporting on the project by
districts to the department.
   (f) The department shall rank all of the proposals and award loans
for projects or other activities to districts based on the following
criteria, as well as other considerations that the department
considers relevant:
   (1) Return on investment.
   (2) Length of time for implementation.
   (3) Length of time for the project debt to be retired.
   (4) Percentage of total project costs paid by the district or by a
source of matching funds.
   (5) Annual operating costs.
   (6) Capacity of project to improve services or park experiences,
or both, for park visitors.
   (g) The funds generated by the revenue generation program shall
not be used by the department to expand the park system, unless there
is significant revenue generation potential from such an expansion.
   (h) Notwithstanding Section 5009, moneys received by the
department from private contributions and other public funding
sources may also be deposited into the California State Park
Enterprise Fund for use for the purposes of subdivision (c) and
subdivision (d).
   (i) The department shall provide all relevant information on its
Internet Web site concerning how the working capital funds are spent,
including the guidelines and the department's ranking criteria for
each funded loan agreement.
   (j) A project agreement shall be negotiated between the department
and a park unit and the total amount of requested project costs
shall be allocated to the district as soon as is feasible when the
agreement is finalized.
   (k) The department may recoup its costs for implementing and
administering the working capital from the fund.
  SEC. 7.  This act is a bill providing for appropriations related to
the Budget Bill within the meaning of subdivision (e) of Section 12
of Article IV of the California Constitution, has been identified as
related to the budget in the Budget Bill, and shall take effect
immediately.