BILL ANALYSIS Ó AB 1589 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1589 (Huffman, et al.) As Amended August 29, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |78-0 |(May 30, 2012) |SENATE: |22-12|(August 29, | | | | | | |2012) | ----------------------------------------------------------------- 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 AB 1589 Page 2 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 Page 3 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 AB 1589 Page 4 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 FN: 0005800