BILL ANALYSIS Ó AB 1478 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1478 (Blumenfield) As Amended August 24, 2012 Majority vote. Budget Bill Appropriation Takes Effect Immediately ----------------------------------------------------------------- |ASSEMBLY: | |(March 22, |SENATE: |25-12|(August 30, | | | |2012) | | |2012) | ----------------------------------------------------------------- (vote not relevant) Original Committee Reference: BUDGET SUMMARY : Contains necessary changes to implement the Budget Act of 2012 relating to State Park and Recreation. The Senate amendments delete the Assembly version of this bill, and instead: 1)Prohibit Department of Parks and Recreation (DPR) from closing or proposing the closure of a state park in the 2012-13 and 2013-14 fiscal years. 2)Provide a one-time appropriation of $10 million from revenues generated by the DPR to be allocated to match contributions from donors and local partner agreements for the 2012-13 and 2013-14 fiscal years. 3)Provide a one-time appropriation of $10 million to parks that remain at-risk of closure in order to maintain a two-year moratorium on park closures. 4)Provide a one-time appropriation of $500,000 to ensure that all ongoing internal and external investigations into the DPR are fully funded. 5)Provide a $10 million one-time appropriation of bond funds for capital improvements projects to prevent full or partial park closures. 6)Establish criteria for membership positions on the State Parks and Recreation Commission including requirements for cultural and park management experience. Require the appointment of two ex-officio legislative members by the Speaker of the Assembly and Senate Rules committee, respectively. Allows the commission a more AB 1478 Page 2 direct oversight role of the DPR, particularly over the department's deferred maintenance backlog. 7)Appropriate $240,000 from existing funds to allow the State Park and Recreation Commission to evaluate the department's deferred maintenance obligations, hold public hearings on the subject, provide advice to the department on budgetary matters, and to conduct workshops. 8)Clarify funds appropriated to the California State Park Enterprise Fund, established to enable the DPR to set revenue targets and goals, are transferred appropriately from the State Parks and Recreation Fund. Provides for annual accounting and reporting. 9)Contain an appropriation allowing this bill to take effect immediately upon enactment. AS PASSED BY THE ASSEMBLY , this bill expressed the intent of the Legislature to enact statutory changes relating to the Budget Act of 2012. COMMENTS : The Administration announced in May 2011 its intent to close 70 state parks, which the DPR indicated was necessary due to budget cuts. Since that time, due to the efforts of nonprofit organizations and private donors, the DPR announced earlier this summer that 69 of the 70 parks would be able to avoid closure at least temporarily as a result of donations, operating agreements and concession contracts. In July of this year, it was revealed that the DPR had an additional $20 million in previously undisclosed funds in the State Park Recreation Fund (SPRF). Funds in the SPRF consist of fees paid by park users, income from concessionaires, and other park generated revenues received by the department for support of state parks. Shortly after this discovery, the Governor's Office asked the Attorney General to conduct an audit of the department focusing on the discrepancies in the SPRF. The Governor's Office has also asked the Department of Finance's Office of State Audits and Evaluations to audit the DPR. Additionally, the Joint Legislative Audit Committee ordered the Bureau of State Audits to review and evaluate the long-term misreported surplus. According to the author of this bill, "the discovery of the existence of these previously undisclosed funds at a time when the DPR was proposing to close parks due to budget shortfalls generated AB 1478 Page 3 considerable dismay and outrage, particularly among park supporters who have made substantial private contributions or entered into operating agreements to help keep parks open." This bill seeks to bolster the generosity of these nonprofit groups and donors by directing that this $20 million in one-time park monies be used to provide grants in the form of matching funds for contributions to at risk parks. This bill also increases the oversight role of the State Park and Recreation Commission, and places a two-year moratorium on park closures. Finally, it makes some clarifying changes to the State Park Enterprise Fund created through budget trailer bill language earlier this year, to ensure that the revenues generated are appropriately deposited to the Fund. Analysis Prepared by : Gabrielle Meindl / BUDGET / (916) 319-2099 FN: 0005849