BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 594 (Committee on Water, Parks, and Wildlife) - State parks: operating agreements: park closures. Amended: July 1, 2013 Policy Vote: NR&W 9-0 Urgency: Yes Mandate: No Hearing Date: August 12, 2013 Consultant: Marie Liu This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 594 would add to information that must be considered should a state park be closed and makes a number of clarifying and technical changes regarding park operations. Fiscal Impact: One-time minimum costs, likely in the hundreds of thousands of dollars, from the State Parks and Recreation Fund (General Fund) for the additional analysis necessary to close a park unit. Background: DPR is required to achieve budget reductions through park closures, partial closures and service reductions at park units based on specified factors such as minimal impacts on park visitation, physical ability to close a park, and applicable deed restrictions. However, no closures may occur in FY 2012-13 or 2013-14. DPR is authorized to enter into operating agreements with qualified nonprofit entities that will enable DPR to keep parks open that would otherwise be subject to closure. The State Parks Revenue Incentives Subaccount within the State Park and Recreation Fund is continuously appropriated to DPR until June 30, 2016 to create incentives for revenue generating projects in state parks. At least fifty percent of any new revenues raised are required to be expended in the park district in which the revenues were earned. Proposed Law: This bill would delete the requirement for DPR to close, partially close, and reduce services in order to achieve budget reductions. However, should DPR elect to close a park AB 594 (Committee on Water, Parks and Wildlife) Page 1 unit on or after July 1, 2014, it must document and publically disclose the methodology and rational used to select park units proposed for closure. This bill would add to the factors that must be used to park units to be closed to include the extent to which the park unit closure would impact local and regional economies, the extent to which the closure would limit the number of parks that are compliant with the Americans with Disabilities Act (ADA), the extent which the closure would increase fire risk and other public safety hazards. Furthermore, the Parks and Recreation Commission (commission) would be required to hold a public hearing on closures proposed after July 1, 2014 before final closure decisions are made. This bill would also make a number of clarifying including that the two-year moratorium on state park closures does not limit DPR's ability to enter into operating agreements with qualified nonprofit organizations for the purpose of operating a state park and that the State Parks Revenue Incentives Subaccount may be spent on capital outlay projects. Related Legislation: SB 974 (Evans, 2012) would have required DPR to document how decisions were made if a state park was to be closed and would have required an analysis of multiple factors regarding impacts of state park closures. SB 974 was held on the Assembly Appropriation's suspense file. AB 1478 (Blumenfield) Chapter 530/2012 established the t2-year moratorium and the State Parks Revenue Incentives Subaccount. AB 107 (Budget) Chapter 134/2011 required DPR to establish budgetary savings through park closures and specified the factors which must be used in selecting units for closure. Staff Comments: This bill would add to the list of required factors that must be considered when selecting park units for closure, should any closures be necessary. The additional factors are essentially identical to the factors that were proposed to be added in SB 974 (Evans, 2012). Staff estimates that that the additional factors to be considered under this bill and the associated public meetings would likely result in a minimum of several thousand dollars in staff workload per park. Costs could be higher if DPR finds it necessary to contract out some of the analysis, particularly analyzing the economic impact to the local and regional community. Given that the State Park AB 594 (Committee on Water, Parks and Wildlife) Page 2 system has over 270 parks, this bill would likely add hundreds of thousands of dollars in analysis should DPR propose that a park unit be closed.