BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 594
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          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  








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            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  








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          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."  









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           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