BILL ANALYSIS Ó AB 594 Page 1 Date of Hearing: April 16, 2013 ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE Anthony Rendon, Chair AB 594 (Committee on Water, Parks & Wildlife) - As Amended: April 10, 2013 SUBJECT : State Parks SUMMARY : Clarifies the Department of Parks & Recreation's (DPR's) authority to enter into operating agreements with nonprofit organizations during the time period of the current moratorium on state park closures, and modifies existing law relating to the process required for any future proposed park closures. Specifically, this bill : 1)Clarifies that the 2-year moratorium on state park closures enacted in 2012 does not limit or affect DPR's authority to enter into operating agreements with qualified nonprofit organizations for the purpose of operating a state park. 2)Requires DPR, in the event any parks are proposed for closure in the future, to document and publicly disclose the methodology, rationale and scoring system used to evaluate and select parks for proposed closure, and modifies the criteria DPR must consider. Requires the State Park & Recreation Commission to hold a public hearing on any proposed park closures. 3)Clarifies legislative intent that DPR achieve any required budget reductions by implementing efficiencies and increasing revenue collections, and that full park closures be considered only as a last option after other feasible alternatives, including but not limited to, operating agreements with qualified nonprofits and local governments are explored. 4)Clarifies that funds in a subaccount continuously appropriated in last year's budget to provide incentives for revenue generation in park districts may be used for capital outlay projects. EXISTING LAW : 1)Establishes the California State Park system and vests DPR with control of the state park system and responsibility for AB 594 Page 2 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, but places a two-year moratorium on park closures for the 2012-13 and 2013-14 fiscal years. 6)Creates the State Parks Revenue Incentives Subaccount within the State Park and Recreation Fund and provides that funds in the subaccount are continuously appropriated to DPR until June 30, 2016 to create incentives for revenue generating projects in state parks. FISCAL EFFECT : Unknown COMMENTS : This bill clarifies and modifies certain provisions of law enacted last year relating to state park management, and updates other existing provisions consistent with those changes. In 2011 DPR proposed to close 70 state parks as a result of budget reductions. The Legislature then enacted AB 42 (Huffman), which authorized DPR to enter into operating agreements with nonprofit organizations in order to keep some of the parks open to the public. A number of nonprofit groups, local governments and other donors contributed funds to DPR and entered into operating agreements to keep the parks from closing. Several additional operating agreements are still AB 594 Page 3 under negotiation as of the time of this writing. After it was revealed in July 2012 that DPR had hidden $20 million in the State Parks & Recreation Fund from the Legislature and the Department of Finance, the Legislature enacted AB 1478 (Blumenfield) which, among other things, placed a two-year moratorium on all park closures. Since AB 42 authorized DPR to enter into agreements with nonprofits for the full operation of a state park if it was threatened with closure, the enactment of the moratorium under AB 1478 created a potential legal ambiguity as to whether DPR still had the authority to enter into operating agreements while the moratorium was in effect. (Partial closures were not affected.) This bill clarifies that the existence of the moratorium is not intended by the Legislature to limit or affect DPR's authority to enter into agreements for the full operation of a State park. The Legislature's intent in authorizing DPR to enter into nonprofit operating agreements was to give DPR additional tools to avoid park closure. Facilitating such collaborative partnerships is a key strategy in enabling DPR to keep the parks open and accessible to the public. The operating agreements allow DPR to avoid closing state parks, which is also the purpose of the moratorium. This bill also modifies and updates existing law relating to proposed park closures, which was enacted prior to the revelation of the hidden funds last year, and prior to other budgetary and policy actions taken by the Legislature in 2012 to provide DPR with additional funding flexibility, including promoting revenue generating and entrepreneurial activities at the district level. This bill requires that such strategies as improved efficiencies, increased revenue generating activities, and partnerships be explored first before park closures are considered. It also requires DPR in the event any park closures are proposed in the future to document and publicly disclose the methodology used in selecting parks for closure, and requires that a public hearing be held by the State Park & Recreation Commission. These changes appear to be consistent with the approach taken by the new management at DPR which has publicly stated that "If a future budget situation should require a reduction plan, we will develop a new plan in an open and transparent fashion. The 70-park closure plan is not our plan for moving forward." AB 594 Page 4 REGISTERED SUPPORT / OPPOSITION : Support Blue Wing Adobe Trust California State Park Foundation (sponsor) County of Sonoma Opposition None on file. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096