BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 580                    HEARING DATE: March 22, 2011  

          AUTHOR: Wolk                       URGENCY: No  
          VERSION: As Introduced             CONSULTANT: Marie Liu  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: State Parks: acquired land: limits on disposition or 
          use.  
          
          BACKGROUND AND EXISTING LAW
          The Public Park Preservation Act, commencing with Section 5400 
          of the Public Resources Code (PRC) prohibits a public entity 
          from acquiring any park for non-park purposes unless there is 
          sufficient compensation or replacement parkland given in 
          exchange. Compensation must be based on the cost of acquiring 
          and developing substitute park land of comparable size and 
          characteristics. Replacement parkland must also be of comparable 
          characteristics and size and the location must also allow for 
          use by the same persons who frequented the original park.

          Existing law also establishes the State Park and Recreation 
          Commission (Commission), consisting of nine members appointed by 
          the Governor, subject to Senate confirmation. Under PRC §539, 
          the Commission is responsible for establishing general policies 
          to guide the Department of Parks and Recreation (DPR) in the 
          administration, protection, and development of the state park 
          system. More specifically, the Commission is responsible for 
          approving the classification of and general plans for individual 
          state park units.

          PROPOSED LAW
          This bill would prohibit state park lands from being disposed of 
          or used for other purposes incompatible with park purposes 
          unless suitable substitute land, as determined by the 
          Commission, is received in exchange. Specifically, this bill 
          would:
           Require the Commission to certify that the substitute park 
            land meets all of the following:
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               o      Has equal values, including environmental as the 
                 original park;
               o      Has the same or greater fair market value, as 
                 established in an approved appraisal;
               o      Is located in an area that would allow for use by 
                 generally the same persons as the original park; and
               o      Provides reasonably equivalent public access and 
                 recreational, natural, historic, and cultural value.
           Allow the Commission to approve a combination of substitute 
            park lands and monetary compensation if:
               o      Appropriate substitute lands are provided to the 
                 greatest extent possible; and 
               o      The monetary compensation is equal or greater to the 
                 value of the land not otherwise substituted and that 
                 compensation is sufficient to allow DPR to acquire other 
                 park lands of equal acreage to the original park.
           Prohibit the Commission from considering substitute park 
            offers unless the Commission determines that there is no other 
            practical alternative to park land disposal or an incompatible 
            use of park land.
           Apply to lands acquired for the state park system with public 
            funds or through receipt of gifts of bequests for the purpose 
            of expanding or maintaining the state park system.
           Explicitly not apply to any existing uses of state park lands 
            that have been authorized in writing on or before January 1, 
            2012.

          ARGUMENTS IN SUPPORT
          The author states, "Existing law does not provide a clear, 
          unambiguous policy for protecting state parks. Senate Bill 580 
          enacts commonsense protection for state parks that simply 
          indicates that land use as state parks cannot be used for 
          non-park purposes without Commission review of alternatives and 
          substitution of lands of equal value."

          The State Parks Foundation, the sponsor of this bill, states in 
          support, "The goal of SB 580 is to protect the investment that 
          Californians have made in the state park system. Especially in 
          these times, when our state parks are being proposed for drastic 
          program cuts and massive closures, it is important to safeguard 
          this multi-million dollar public asset?Increasingly, state parks 
          are looked at as the path of least resistance for placing 
          infrastructure and other development projects. These proposals 
          have significant impacts to sensitive natural, cultural and 
          historic resources in the state park system. Adverse outcomes 
          that arise from improper use of our state's public lands include 
          loss of recreational opportunities, loss of wildlife habitat and 
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          corridors, degradation of watersheds and diminished water 
          quality, loss of park acreage and more."

          ARGUMENTS IN OPPOSITION
          The American Council of Engineering Companies of California, the 
          California Chamber of Commerce, and the California Business 
          Properties Association, in a joint letter, state in opposition 
          to the bill, "This measure is intended to stop necessary 
          infrastructure projects, whether they be utility, water or 
          transportation improvements, from occurring within, or near, 
          state park boundaries." More specifically, the joint opposition 
          letter expresses concern that this bill:
           Violates existing contracts by abrogating existing contracts 
            that the state has with property owners for concessions, 
            access road easements, utility easements, etc;
           Discourages future expansions of the State Park system through 
            voluntary arrangements with property owners and other public 
            agencies who need to retain easements for non-park uses;
           Applies to park lands that DPR does not necessarily own in fee 
            title;
           Reduces the ability to site new infrastructure which may 
            especially affect AB 320 goals and "in-state" renewable 
            portfolio standards by creating a barrier to electrical 
            generation and transmission improvements;
           Creates a barrier for State Parks to use park lands for 
            revenue generating purposes; and
           Subjects the state to litigation over the Commission's 
            certification of substitute land.

          COMMENTS 
           Many park units face potential conflicting uses of the park:  On 
          August 5, 2008, this committee held a joint oversight hearing 
          with the Assembly Committee on Water, Parks and Wildlife on the 
          state of the park system, including an overview of conflicting 
          uses in and adjacent to state parks. The committee heard 
          testimony regarding a proposed toll road through San Onofre 
          State Beach, a proposed powerline through Anza-Borrego Desert 
          State Park, and a large dairy that was proposed near Allensworth 
          State Historic Park. In 2007, the State Parks Foundation 
          conducted a survey of threats to state parks and found 122 
          threats to 73 parks. 

          Under existing law, the Commission would probably have to 
          address the impact of such non-park uses in a formal manner 
          through a general plan amendment approval, presuming that the 
          non-park use would alter the park unit's general plan. However, 
          the Commission currently has no authority to require any park 
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          mitigations, nor does the Commission have any statutory guidance 
          on mitigating non-park impacts with substitute park land or 
          monetary compensation. This bill would give the Commission that 
          authority and guidance.

           Requirements are consistent with the Preservation of Public 
          Parks Act:  This bill establishes requirements that are similar 
          to the Preservation of Public Parks Act, which also requires 
          substitute park land or sufficient monetary compensation when a 
          public entity is acquiring public park land for non-park 
          purposes. However, there has been some question as to whether 
          this law applies to state parks, or just to city and county 
          parks. 

          Similar replacement requirements exist for park lands acquired 
          or developed with bond dollars (including Proposition 84 of 
          2006, Proposition 12 of 2000, and Proposition 70 of 1988) and 
          federal Land and Water Conservation Act funds.
           
          How should fair market value be determined?  This bill requires 
          that fair market value of the park land be determined by an 
          "approved" appraisal. However, it is unclear who is responsible 
          for approving the appraisal. The author may wish to instead 
          require that the fair market value be based on an appraisal 
          conducted by a qualified appraiser. This requirement would be 
          consistent with the statutes governing the state acquisition of 
          conservation land in §5096.511 et seq. (See amendment 1)

           Previous legislation  : This bill is identical to the last version 
          of SB 679 (Wolk, 2009). SB 679 was passed by both houses of the 
          Legislature, but ultimately was vetoed by Governor 
          Schwarzenegger. 

           Clarification amendments  : The author may wish to make several 
          clarification amendments to the criteria for substitute park 
          lands. (See amendments 2 and 3). 

          SUGGESTED AMENDMENTS 

               AMENDMENT 1
               On page 2, line 17, delete "an approved appraisal" and 
          insert "an appraisal conducted by a qualified member of the 
          Appraisal Institute who is licensed pursuant to Part 3 
          (commencing with Section 11300) of Division 4 of the Business 
          and Professions Code."

               On page 3, line 6, delete "an approved appraisal" and 
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          insert "an appraisal conducted by a qualified member of the 
          Appraisal Institute who is licensed pursuant to Part 3 
          (commencing with Section 11300) of Division 4 of the Business 
          and Professions Code."

               AMENDMENT 2  
               On page 2, line 10, delete "all" and insert "any"

               AMENDMENT 3 
               On page 2, on line 14, delete "environmental value" and 
               insert "environmental, natural, cultural, historic value"

               On page 2, beginning on line 22, delete "or has reasonably 
               equivalent natural, cultural, or historical significance."


          SUPPORT
          California State Parks Foundation
          Central Coast Natural History Association
          Chino Hills State Park Interpretive Association
          Mendocino Area Parks Association
          Stewards of the Coast and Redwoods
          California League of Park Associations
          Friends of Pio Pico, Inc.
          Mt. Tamalpais Interpretive Association

          OPPOSITION
          American Council of Engineering Companies of California
          California Chamber of Commerce
          California Business Properties Association

















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