BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                        AB 594|
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                                       CONSENT


          Bill No:  AB 594
          Author:   Assembly Water, Parks and Wildlife Committee
          Amended:  8/14/13 in Senate
          Vote:     27 - Urgency

           
           SENATE NATURAL RESOURCES AND WATER COMMITTEE  :  9-0, 6/25/13
          AYES:  Pavley, Cannella, Evans, Fuller, Hueso, Jackson, Lara,  
            Monning, Wolk
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  77-0, 5/29/13 - See last page for vote


           SUBJECT  :    State parks:  operating agreements:  park closures

           SOURCE  :     Author


           DIGEST  :    This bill makes technical and clarifying changes to  
          AB 1478 (Blumenfield, Chapter 530, Statutes of 2012) following  
          revelations of fiscal mismanagement by Department of Parks and  
          Recreation (DPR).  Clarification is needed regarding DPR's  
          authority to enter into operating agreements with nonprofit  
          organizations during the time period of the current moratorium  
          on state park closures.  This bill modifies existing law  
          relating to the process required for any future proposed park  
          closures.

           ANALYSIS  :    

          Existing law: 
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          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,  
             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 (SPRI  
             Subaccount) within the State Parks and Recreation Fund (SPRF)  
             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.

          7. Requires the DPR to develop a revenue generation program as  
             an essential component of a long-term sustainable park  
             funding strategy.  Requires the incremental revenue generated  
             by the revenue generation program to be deposited into the  
             SPRF and transferred to the California State Park Enterprise  
             Fund (SPEF), as provided, once revenue targets have been met  
             and the excess revenue is identified. 

          8. Requires the DPR to allocate 50% of the total amount of  

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             revenues deposited into the SPEF, generated by a park  
             district to that district if the amount of revenues generated  
             exceeds the targeted revenue amount prescribed in the revenue  
             generation program and requires the department to use 50% of  
             the funds deposited into the SPEF for specific purposes.

          This bill: 

           1. Clarifies that the two-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.  

           3. Requires that the rate of visitation be measured not only  
             based on the raw number of visitations to the park unit, but  
             also the extent to which the total capacity of the park unit  
             is used.  It adds to the criteria to be considered prior to  
             closure factors of fire risk, any disproportionate impact of  
             one region compared to another, and any reduction in  
             facilities within state parks that may comply with the  
             Americans with Disabilities Act of 1990.  Eliminates  
             proximity to other closed park units as a factor for closure,  
             and adds additional factors for consideration, including the  
             extent to which closure of a unit would increase public  
             safety hazards or impair the state's ability to protect  
             iconic natural and historical resources.

           4. Requires the State Parks and Recreation Commission to hold a  
             public hearing on any park unit closures that are proposed by  
             the DPR on or after July 1, 2014.

           5. 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  

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             are explored. 

           6. 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.

           7. Requires that the incremental revenue generated by the  
             program that is to be deposited into the SPRF.  Revenue as  
             identified as being in excess of the revenue targets to be  
             transferred to the SPRI Subaccount, rather than the SPEF, and  
             retains the same requirements for the allocation to a  
             district and use of the revenues, as described. 

           8. Requires the DPR to report to the Legislature, commencing on  
             July 1, 2014, and annually on or before each July 1  
             thereafter, on the revenue distributed to each district.

           Comments
           
          In 2011, DPR proposed to close 70 state parks as a result of  
          budget reductions.  The Legislature responded by enacting AB 42  
          (Huffman, Chapter 450, Statutes of 2011) 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 parks  
          from closing.  In July 2012 it was revealed that DPR had failed  
          to disclose a $20 million reserve in the SPRF to the Legislature  
          and the Department of Finance.  After that disclosure, the  
          Legislature enacted AB 1478 which, among other things, placed a  
          two-year moratorium on all state park closures.  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 for the full operation of a state park  
          while the moratorium was in effect.  Partial closures were not  
          affected. 

          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  

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          purpose of the moratorium.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/16/13)

          Anza-Borrego Foundation
          Benicia State Parks Association
          Bidwell Mansion Community Project
          Blue Wind Adobe Trust
          Calaveras Big Trees Association
          California League of Park Associations
          California Parks and Recreation Society
          California State Parks Foundation
          Central Coast State Parks Association
          Chino Hills State Park Interpretive Association
          Coastside State Parks Association
          Cuyamaca Rancho state Park Interpretive
          Freinds4Picacho
          Friends of Channel Coast State Park
          Friends of China Camp
          Friends of Lake Folsom and Natoma
          Friends of Palomar Mountain State Park
          Friends of Pio Pico
          LandPaths
          Los Encinos Docent Association
          Mendocino Area Parks Association
          Mojave River Natural History Association
          Mountain Parks Foundation
          Plumas Eureka State Park
          Point Cabrillo Light Keepers Association
          Red Rock Canyon Interpretive Association
          Save Saddleback Fund
          Sea and Desert Interpretative Association
          Sempervirens Fund
          South Yuba River Citizen's League
          South Yuba River Park Association
          Stewards of the Coast and Redwoods
          The Trust for Public Land
          Valley of the Moon Natural History Association

           ARGUMENTS IN SUPPORT  :    A coalition of parks advocates,  
          nonprofit partners of parks, and conservation groups expressed  

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          its support for this bill because of the importance in  
          clarifying that the state should be able to continue to work  
          with these groups even for parks not faced with closure.  Such  
          an interpretation has been offered by some and by changing the  
          language in AB 1478, that interpretation would be repudiated. 

          Older law also directed DPR to consider closures to adjust to  
          budget shortfalls.  A new approach, codified in 2012, instead  
          suggests that DPR focus on efficiencies, revenue generation, and  
          service reductions prior to instituting closures.  This bill  
          also requires a public hearing before closure. 

          A recent amendment added an urgency clause to enable DPR to  
          enter into agreements to implement last year's provisions  
          without delay.  DPR is currently negotiating agreements with  
          four non-profits.  Another recent amendment restored language  
          authorizing DPR to consider cost efficiencies in evaluating  
          proposed park closures.

           ASSEMBLY FLOOR  :  77-0, 5/29/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,  
            Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,  
            Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,  
            Jones, Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,  
            Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,  
            V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,  
            Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,  
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Holden, Linder, Vacancy


          RM:k  8/21/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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