BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1589
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1589 (Huffman, et al.)
          As Amended  August 29, 2012
          Majority vote
           
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          |ASSEMBLY:  |78-0 |(May 30, 2012)  |SENATE: |22-12|(August 29,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    W., P. & W,  

           SUMMARY  :  Enacts the California State Park Stewardship Act of 
          2012 which, among other things, requires the Department of Parks 
          and Recreation (DPR) to develop a prioritized action plan to 
          increase revenues and collection of existing fees at state parks 
          and allows an individual to apply all or a portion of their 
          state income tax refund to purchase a state park access pass.

           The Senate amendments  :

          1)Delete provisions creating a State Park Enterprise Fund and 
            appropriating $10 million in state bond funds to the fund.

          2)Delete provisions authorizing a state park environmental 
            license plate, proceeds from the sales of which would be 
            dedicated to support of state parks.

          3)Delete provisions amending the criteria and process DPR must 
            follow for any proposed park closures, and placing a cap on 
            the number of state parks that may be closed without 
            legislative approval.

          4)Modify the legislative findings and declarations to state 
            legislative policy regarding the formation of a master plan 
            for state parks that would, among other things, ensure the 
            long-term adequate funding and maintenance of state parks, and 
            ensure accurate and transparent accounting and disclosure of 
            all state special funds available for support of state parks.

          5)Clarify with regard to nonprofit operating agreements that any 
            revenues raised in a park subject to a nonprofit operating 
            agreement in excess of the funds needed for the care, 
            maintenance, operation, administration, improvement, or 
            development of that park may be dedicated to another state 








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            park, consistent with existing contracts.

          6)Clarify provisions authorizing individuals to direct a portion 
            of their income tax refund to purchase an annual state park 
            access pass and clarifying the placement of the park access 
            option on the tax form.

          7)Clarify that a qualified nonprofit that has entered into an 
            operating agreement with the state for operation of a state 
            park unit is an agent of the state, and that the property 
            remains the property of the state and therefore exempt from 
            taxation.

          8)Remove the urgency clause.




           EXISTING LAW  :

          1)Establishes the California State Park system and vests DPR 
            with control of the state park system and responsibility for 
            administering, protecting, developing and interpreting state 
            parks for the use and enjoyment of the public.  Requires DPR 
            to protect the state park system from damage and to preserve 
            the peace therein.

          2)Authorizes DPR to enter into agreements with private entities 
            to assist DPR in securing long-term private funding sources 
            for units of the state park system, and to ensure that the 
            parks are preserved and open to the public for their use and 
            enjoyment.  DPR's authority includes but is not limited to 
            securing donations, memberships, corporate and individual 
            sponsorships, and marketing and licensing agreements.

          3)Authorizes DPR to collect fees, rents and other returns for 
            the use of state parks with amounts to be determined by DPR.

          4)Authorizes DPR to enter into operating agreements with 
            qualified nonprofit entities that will enable DPR to keep 
            parks open that would otherwise be subject to closure.

          5)Requires DPR to achieve required budget reductions by closing, 
            partially closing, and reducing services at selected units of 
            the state park system based on specified factors.








                                                                  AB 1589
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           AS PASSED BY THE ASSEMBLY  , this bill created the California 
          State Park Stewardship Act of 2012 which, among other things, 
          stated legislative findings regarding the importance of state 
          parks and of providing for their long-term sustainable funding; 
          called for the formation of a state compact on state parks; 
          required DPR to develop a prioritized action plan to increase 
          revenues and collection of fees at state parks; created a state 
          park enterprise fund and appropriated $10 million in state bond 
          funds to the fund; authorized taxpayers to voluntarily direct a 
          portion of their tax refund to purchase a state park annual 
          access pass; authorized issuance of a state park environmental 
          license plate; modified the process and criteria DPR is required 
          to follow for any proposed park closures; and, placed a cap on 
          the number of park closures allowed without legislative 
          approval.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee:

          1)One-time costs to the Department of Parks and Recreation 
            prepare a report on revenue generation possibilities. The 
            Department has hired a consultant to conduct a study on 
            similar topics at 50 state parks, at a cost of about $200,000. 
            The Department indicates that expanding that study or 
            contracting for an additional study will result in costs up to 
            $800,000 (California State Park Enterprise Fund).

          2)One-time costs to the Franchise Tax Board of about $50,000 
            (General Fund) to modify tax forms and computer systems to 
            allow taxpayers to donate to state parks when they pay their 
            state income taxes.

          3)Ongoing loss of tax revenue to the state in the tens of 
            thousands of dollars, based on the Franchise Tax Board's 
            experiences with other similar programs to allow tax-free 
            donations to state programs (General Fund).

          4)Unknown revenues to the State Park System from donations 
            through the tax system (California State Park Enterprise 
            Fund).  Because this is a new program, the Department does not 
            have an estimate of the potential revenues the program may 
            generate.  It is important to note that the bill requires the 
            Department to provide an annual day use parks pass to 
            taxpayers that donate an amount in excess of the cost of such 








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            a pass (currently priced at $195). To some extent, people who 
            would otherwise have purchased an annual pass may do so 
            through the tax system, in which case donations received by 
            the Department will be offset by reduced fee revenues.

           COMMENTS  :  Several provisions of this bill that were contained 
          in the Assembly approved version, namely, creation of the State 
          Park Enterprise Fund, appropriation of $10 million in bond funds 
          to the Enterprise Fund, and creation of a state park 
          environmental license plate, were deleted from this bill in the 
          Senate because substantially similar provisions were enacted 
          into law through the budget and resources budget trailer bills 
          passed earlier this year.  Other provisions regarding the 
          criteria and process DPR must follow before implementing any 
          park closures were incorporated into SB 974 (Evans), which was 
          held in the Assembly Appropriations Committee on suspense.  The 
          cap on park closures included in the Assembly approved version 
          of this bill was also deleted, but a two-year moratorium on park 
          closures is now included in AB 1478 (Blumenfield), another 
          resources budget trailer bill that is currently under 
          consideration in the Legislature.  Modifications to the 
          provisions of this bill allowing taxpayers to direct all or a 
          portion of their tax refund toward purchase of a state park 
          annual access pass were modified to clarify placement of the 
          park contribution option on the tax form and reduce the 
          Franchise Tax Board's administrative implementation costs.  
          Finally, a provision was added to clarify that qualified 
          nonprofit organizations that enter into agreements to operate 
          state parks that were otherwise at risk of closure are serving 
          as an agent of the state and the property remains state property 
          which is exempt from taxation.       


           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916) 
          319-2096


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