BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 594| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: CONTINUED AB 594 Page 2 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 CONTINUED AB 594 Page 3 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 CONTINUED AB 594 Page 4 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 CONTINUED AB 594 Page 5 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 CONTINUED AB 594 Page 6 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 **** END **** CONTINUED AB 594 Page 7 CONTINUED