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

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        |ASSEMBLY:  |     |(March 22,      |SENATE: |25-12|(August 30,    |
        |           |     |2012)           |        |     |2012)          |
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                  (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
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          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
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        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


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